Chileans Lose Faith as Vatican Revisits Sex Abuse Charges

To understand why Chile, one of Latin America’s most socially conservative nations, is losing faith in the Roman Catholic Church, visit Providencia, a middle-class area of Santiago coming to terms with a decades-old clergy sex abuse scandal.

Providencia is home to El Bosque, the former parish of priest Fernando Karadima, who was found guilty in a Vatican investigation in 2011 of abusing teenage boys over many years, spurring a chain of events leading to this week’s visit by a Vatican investigator.

A Chilean judge in the same year determined the Vatican’s canonical sentence was valid, but Karadima was not prosecuted by the civil justice system because the statute of limitations had expired.

So many Chileans were shocked in 2015 when Pope Francis appointed as a bishop a clergyman accused of covering up for Karadima, and defended that choice in a visit to Chile last month.

​Socially conservative

Chile remains largely conservative on social issues. It only legalized divorce in 2004, making it one of the last countries in the world to do so. Chile’s ban on abortion, one of the strictest in the world, was lifted in 2017 for special circumstances only. Same-sex marriage remains illegal.

Yet El Bosque, like many other Chilean parishes, no longer has the large crowds attending Mass that it did in the 1970s and 1980s, when Karadima was a pillar of the Providencia community.

“Karadima did a lot of damage to the Catholic Church,” said Ximena Jara Novoa, 65, a hairdresser who lives in a neighboring community but has worked in Providencia for 45 years. She once counted Karadima’s mother and sister as clients.

“If I had been from this neighborhood, I would not let my son go to church anymore,” she said in an interview.

​Empty pews, less trust

A poll by Santiago-based think tank Latinobarometro in January 2017 showed the number of Chileans calling themselves Catholics had fallen to 45 percent, from 74 percent in 1995.

In the same survey, Pope Francis, who hails from neighboring Argentina and is the first Latin American pontiff, was ranked by Chileans asked to evaluate him at 5.3 on a scale of zero to 10, compared to a 6.8 average in Latin America.

The pope surprised many Chileans last month by defending the appointment of Bishop Juan Barros, who considered Karadima his mentor and is accused by several men of covering up sexual abuse of minors committed by the priest.

Barros, of the southern diocese of Osorno, has said he was unaware of any wrongdoing by Karadima.

Just before leaving Chile, the pope testily told a Chilean reporter: “The day I see proof against Bishop Barros, then I will talk. There is not a single piece of evidence against him.

“It is all slander. Is that clear?”

The comments were widely criticized and just days after his return to Rome, Francis made a remarkable U-turn and ordered a Vatican investigation into the accusations.

Challenging the church

Residents of Providencia, once dotted with mansions belonging to the most powerful families in Santiago but now home to largely upscale high-rise apartments, said the abuse of children by the charismatic Karadima was an open secret as far back as the 1970s.

“It was always rumored, everything was talked about. People knew,” Novoa said quietly.

But challenging the powerful church in the once predominately Catholic society was not previously accepted.

That is changing.

The Vatican special envoy sent by the pope is scheduled to hear testimony from more than 20 sex abuse victims before he leaves Santiago.

Archbishop Charles Scicluna, the Vatican’s most experienced sex abuse investigator, also spent four hours in New York speaking to Juan Carlos Cruz, one of Karadima’s most vocal accusers.

On Thursday, a group of people who say they were sexually abused by members of the Marist Brothers congregation in Santiago asked Vatican officials to investigate their cases, too.

The Vatican’s defense of Barros has been compounded by the perceived lack of punishment of Karadima.

Miguel Angel Lopez, a professor at the University of Chile who grew up in Providencia and met Karadima several times when the priest visited his Catholic school, said the legal loophole that allowed the clergyman to escape punishment had infuriated Chileans.

“The fact that Karadima didn’t go to jail is one of the reasons people don’t trust the church much,” Lopez said. “They were very angry.”

French Farmers Heckle Macron at Agricultural Fair

President Emmanuel Macron on Saturday faced heckles and whistles from French farmers angry with reforms to their sector, as he arrived for France’s annual agricultural fair.

For over 12 hours, Macron listened and responded to critics’ rebukes and questions — only to return home to the Elysee Palace with an adopted hen.

“I saw people 500 meters away, whistling at me,” Macron said, referring to a group of cereal growers protesting against a planned European Union free-trade pact with a South American bloc, and against the clampdown on weedkiller glyphosate.

“I broke with the plan and with the rules and headed straight to them, and they stopped whistling,” he told reporters.

“No one will be left without a solution,” he said.

Macron was seeking to appease farmers who believe they have no alternative to the widely used herbicide, which environmental activists say probably causes cancer.

Mercosur warning

He also wanted to calm fears after France’s biggest farm union warned Friday that more than 20,000 farms could go bankrupt if the deal with the Mercosur trade bloc (Brazil, which is the world’s top exporter of beef, plus Argentina, Uruguay and Paraguay) goes ahead.

Meanwhile, Macron was under pressure over a plan to allow the wolf population in the French countryside to grow, if only marginally.

“If you want me to commit to reinforce the means of protection … I will do that,” he responded.

And he called on farmers to accept a decision on minimum price rules for European farmers, “or else the market will decide for us.”

But it wasn’t all jeers and snarls for Macron at the fair.

He left the fairground with a red hen in his arms, a gift from a poultry farm owner.

“I’ll take it. We’ll just have to find a way to protect it from the dog,” he said, referring to his Labrador, Nemo.

It was a far cry from last year, when, as a presidential candidate not yet in office, Macron was hit on the head by an egg launched by a protester.

Juncker Heads to Western Balkans to Discuss EU Strategy

European Commission President Jean-Claude Juncker is embarking on a Western Balkan tour to promote the EU’s new strategy for the region.

Juncker’s tour to the six Balkan countries that remain outside the European Union starts in Macedonia, where he will hold talks with Prime Minister Zoran Zaev on Sunday.

Earlier this month, the European Commission unveiled its new strategy to integrate Albania, Bosnia-Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia.

Among the six countries, the commission considers Serbia and Montenegro as current front-runners toward accession and the new strategy says they could be allowed in by 2025 if they meet all the conditions.

Juncker has warned that this was an “indicative date; an encouragement so that the parties concerned work hard to follow that path.” 

“The EU door is open to further accessions when, and only when, the individual countries have met the criteria,” the EU road map said.

It insisted that the six countries still have many obstacles to overcome before joining the bloc, including regarding corruption, the rule of law, and relations with their neighbors.

EU member states Croatia and Slovenia are still locked in a border dispute stemming from the breakup of Yugoslavia in the 1990s.

Macedonia and EU-member Greece are engaged in UN-mediated talks to resolve a 27-year-old dispute over the name of the former Yugoslav republic.

The EU-sponsored dialogue between Belgrade and Pristina has produced agreements in areas such as freedom of movement, justice, and the status of the Serbian minority in Kosovo — as well as enabling Serbia to start EU accession talks and Brussels to sign an Association Agreement with Kosovo.

Juncker’ strip to the Western Balkans comes after Russian Foreign Minister Sergei Lavrov traveled to Belgrade this week for a two-day visit aimed at bolstering longstanding ties with Serbia.

During the visit, Lavrov welcomed Serbia’s drive to join the EU, but also vowed that Moscow would remain engaged with the Balkan country no matter what happens.

“We always wanted partners to have a free choice and develop their political ties,” Lavrov said at a news conference with President Aleksandar Vucic, who is leading Serbia through a delicate balancing act.

Although Serbia is seeking to join the EU, it continues to nurture close ties with Moscow and has said it will not join the EU’s economic sanctions against Russia over its aggression in Ukraine.

US Men Win First Olympic Gold Medal in Curling

The American men have won the Olympic gold medal in curling in a decisive upset of Sweden.

 

John Shuster skipped the United States to a 10-7 victory Saturday for the second curling medal in U.S. history. Shuster was part of the other one, too, as the lead thrower on Pete Fenson’s bronze-medal team at the 2006 Turin Games.

 

The Americans received a good luck call from Mr. T before the match. The King of Sweden was there, as was U.S. presidential daughter Ivanka Trump.

They saw Shuster convert a double-takeout for a five-ender in the eighth — an exceedingly rare score that made it 10-5 and essentially clinched the win.

Sweden retained the last-rock advantage known as the hammer for the ninth end, and scored two. 

But that gave the hammer to the Americans for the 10th and final end. Shuster played it safe, throwing away one stone intentionally to keep the target area clear and avoid the traffic that can lead to big scores. The remaining rocks were used to methodically pick off Sweden’s until there weren’t enough left to catch up. 

With two stones apiece left, Swedish skip Niklas Edin pushed off with a spin and a smile, and then conceded defeat. (Although Sweden had two stones in the house, the end does not count in the score).

Sweden is the reigning world champion silver medalist and finished first in pool play with a 7-2 record. The Americans barely squeaked into the playoffs with a 5-4 record after losing four of their first six games to move to the brink of elimination. 

But Shuster, American curling’s only four-time Olympian, guided his team to three straight victories to advance to the playoffs and then a semifinal win over three-time defending gold medalist Canada. No U.S. curling team, men’s or women’s, had ever beaten Canada at the Olympics.

This year’s team — Shuster, Tyler George, Matt Hamilton, John Landsteiner and alternate Joe Polo — did it twice in one week.

 

Sweden took the silver medal. Switzerland beat Canada in the third-place game on Friday for bronze. 

More US Companies End Marketing Programs With National Rifle Association

Three more companies say they have ended marketing programs with the National Rifle Association (NRA), as gun control advocates stepped up pressure on firms to cut ties to the gun industry following last week’s school shooting in Florida.

Activists have posted petitions online, identifying businesses that offer discounts to NRA members, in a push to pressure the companies to cut ties to the gun rights organization.

Corporations that ended their discount programs with NRA members on Friday included insurance company MetLife, car rental company Hertz, and Symantec Corp., the software company that makes Norton Antivirus technology.

The move comes after several other companies cut their ties to the NRA earlier this week, including car rental company Enterprise, First National Bank of Omaha, Wyndham Hotels and Best Western hotels.

The NRA is one of the country’s most powerful lobbying groups for gun rights and claims 5 million members.

Florida shooting renews debate

Last week’s shooting at a Florida high school that left 17 people dead has renewed the national debate about gun control.

Gun control activists have been mounting a campaign on Twitter, including using the hashtag #BoycottNRA as well as using social media to pressure streaming platforms, including Amazon, to drop the online video channel NRATV, which features gun-friendly programming produced by the NRA.

On Thursday, NRA Executive Vice President Wayne LaPierre told the Conservative Political Action Conference (CPAC) that those advocating for stricter gun control are exploiting the Florida shooting.

Receiving a rousing reception, LaPierre said, “There is no greater personal individual freedom than the right to keep and bear arms, the right to protect yourself and the right to survive.”

Arming teachers

On Friday, President Donald Trump reiterated to CPAC for the third time this week the need to arm teachers with concealed weapons to prevent more shootings in U.S. schools.

“It’s time to make our schools a much harder target for attackers. We don’t want them in our schools,” Trump said.

Trump has also proposed raising the age to buy assault-style rifles from 18 to 21, which is opposed by the NRA.

In his speech to CPAC, Trump indicated he does not intend to battle the powerful organization.

“They’re friends of mine,” Trump said of the NRA, which gave more than $11 million to his presidential campaign in 2016 and spent nearly $20 million attacking his Democratic Party general election challenger, Hillary Clinton.

The mass shooting in Florida on Feb. 14 has sparked a wave of rallies in Florida, Washington and in other areas of the United States in an attempt to force local and national leaders to take action to prevent such attacks.

 

EU Top Diplomat: Donors Raised $510 Million for G5 Sahel Force

As Europe seeks to stop migrants and militants reaching its shores, EU’s Foreign Policy Chief Federica Mogherini said Friday that international donors have raised more than $500 million for a multinational military force in West Africa’s Sahel region. VOA’s Mariama Diallo reports.

AP Fact Check: Toughest Sanctions on North Korea Ever? Not Likely

The heaviest, the largest, the most impactful —  those were the superlatives the Trump administration used to describe its latest sanctions against North Korea.

But were the Treasury Department designations of more than 50 companies and ships accused of illicit trading with the pariah nation really the toughest action yet by the U.S. and the wider world?

Probably not.

Here’s a look at how President Donald Trump and a top lieutenant described Friday’s sanctions to punish the North for its development of nuclear weapons and ballistic missiles — and how they stack up against past economic restrictions that have been piled on Kim Jong Un’s government in response to its illegal weapons tests.

Treasury Secretary Steven Mnuchin: “The Treasury Department is announcing the largest set of sanctions ever imposed in connection with North Korea.”

Trump: “I do want to say, because people have asked, North Korea — we imposed today the heaviest sanctions ever imposed on a country before.”

As for Trump’s blanket assertion, in sheer dollar terms, the U.S. has actually imposed much costlier restrictions on countries such as Iran, a far richer economy than North Korea’s. Washington and its allies cut off tens of billions of dollars’ worth of Iranian oil exports and shut the country’s central bank out of the international financial system, among other steps, before eliminating those restrictions under a 2015 nuclear deal.

Correct on number

In terms of the number of entities targeted Friday, Mnuchin is probably correct about the history of sanctions on North Korea.

The department blacklisted “one individual, 27 entities and 28 vessels” located, registered or flagged in North Korea, China, Singapore, Taiwan, Hong Kong, Marshall Islands, Tanzania, Panama and Comoros. That appeared to be the most companies or individuals designated by the U.S. at a single time. According to Mnuchin, there are now more than 450 U.S. sanctions against North Korea, about half of them levied in the last year.

But in purely economic terms, both Mnuchin and Trump are well wide of the mark.

The latest designations are primarily intended to crack down on North Korea’s evasion of wider-ranging sanctions adopted by the U.N. Security Council and the United States that are more economically significant.

Over the past year, the council has adopted three sets of sanctions banning North Korean exports of coal, iron ore, textiles, seafood products and other goods. If those measures are properly implemented, that would reduce the North’s export revenues by 90 percent from 2016 levels, or by $2.3 billion annually. Those sanctions are also heavily restricting North Korean fuel supplies. They capped refined oil imports at 500,000 barrels a year. That’s a reduction from the 4.5 million barrels North Korea imported in 2016.

It’s because of those draconian restrictions that North Korea wants to conduct trade on the quiet with “ship-to-ship” transfers that the U.S. is determined to stop. With Friday’s measures, Mnuchin said, the U.S. has gone after “virtually all their ships that they’re using at this moment.”

That’s certainly a significant increase in pressure on North Korea as its foreign trade diminishes. But the Treasury Department did not give an overall figure for how much revenue the North would be deprived of because of the latest actions, other than to say that nine of the newly blacklisted foreign vessels “are capable of carrying over $5.5 million worth of coal at a time.”

‘Underwhelming’ in scope

The conservative-leaning Heritage Foundation did not think much of the new steps.

“As impressive as the list is in length, it is underwhelming in its scope and fails to live up to the hype,” it said. “Like his predecessors, President Trump remains reluctant to go after Chinese financial entities aiding North Korea’s prohibited nuclear and missile programs.”

China is said to account for about 90 percent of North Korea’s external trade and be its main access point to the international financial system. Past U.S. sanctions that have targeted Chinese companies have probably had a much bigger impact on North Korea’s revenue streams.

In November, the Treasury Department blacklisted three Chinese companies that it said had “cumulatively exported approximately $650 million worth of goods to North Korea and cumulatively imported more than $100 million worth of goods from North Korea.”

An even bigger Chinese trading partner of the North was blacklisted in September 2016: Dandong Hongxiang Industrial Development Co. According to a report by the U.S.-based research group C4AD and South Korea’s Asan Institute for Policy Studies, Hongxiang carried out imports and exports worth a total of $532 million in 2011-15. It had also supplied aluminum oxide and other materials that can be used in processing nuclear bomb fuel.

With Rates Still Low, Fed Officials Fret Over Next US Recession

Federal Reserve policymakers fretted on Friday that they could face the next U.S. recession with virtually the same arsenal of policies used in the last downturn and, with interest rates still relatively low, those will not pack the same punch.

In the midst of an unprecedented leadership transition, Fed officials are publicly debating whether to scrap their approach to inflation targeting, how much of its bond portfolio to retain, and how much longer they can raise interest rates in the face of an unexpectedly large boost from tax cuts and government spending.

After years of near-zero rates and $3.5 trillion in bond purchases all meant to stimulate the economy in the wake of the 2007-09 recession, the Fed has gradually tightened policy since late 2015. Its key rate is now in the range of 1.25 to 1.5 percent, and while the Fed plans to hike three more times this

year it has also forecast that it is about halfway to its goal.

That could leave little room to provide stimulus when the world’s largest economy, which is heating up, eventually turns around.

“We would be better off, rather than thinking about what we would do next time when we hit zero, making sure that we don’t get back there. We just don’t want to be there,” Boston Fed President Eric Rosengren told a conference of economists and the majority of his colleagues at the central bank.

Rosengren, one of only a few sitting policymakers who also served during the last downturn, said the expanding U.S. deficits could further erode the government’s ability to help curb any future recession. “With the deficits we are running up, it’s not likely [fiscal policy] will be helpful in the next

recession either,” he said.

Since mid-December, the Republican-controlled Congress and U.S. President Donald Trump aggressively cut taxes and boosted spending limits, two fiscal moves that are expected to push the annual budget deficit above $1 trillion next year and expand the $20 trillion national debt.

Overheating

That stimulus, combined with synchronized global growth, signs of U.S. inflation perking up, and unemployment near a 17-year low could set the stage for overheating that ends one of the longest economic expansions ever.

“We want more shock absorbers out there and really … the main shock absorber is the ability to reduce the fed funds rate, which means that you want to get to a higher inflation rate so that the pre-shock fed funds rate is 4 and not 2,” said Paul Krugman, the Nobel Prize-winning economist and professor at City University of New York.

In a speech to the conference hosted by the University of Chicago Booth School of Business, Krugman said every recession since 1982 has been caused by “private sector over-reach” and not Fed tightening, as in decades past.

The conference’s main research paper argued the central bank should focus on cutting rates in the next recession and avoid relying on asset purchases that are less effective in stimulating investment and growth than previously thought.

In October the Fed began trimming some of its assets and it has yet to decide how far it will go. William Dudley, president of the New York Fed, told the conference that, to be sure, the ability to again purchase bonds if and when rates hit zero “seems like a good tool to have.”

The Fed’s approach to any economic slowdown would likely be to cut rates, pledge further stimulus, and only then buy bonds.

Rosengren and others dismissed the possibility of adopting negative interest rates, as some other central banks have done.

Yet five years of below-target inflation, combined with an aging population and slowdown in labor force growth, has sparked a debate over ditching a long-standing 2 percent price target.

Some see this month’s succession of Fed Chair Janet Yellen by Jerome Powell as ideal timing to consider new frameworks that could help drive inflation, and rates, higher. Cleveland Fed President Loretta Mester, whom the White House is considering for Fed vice chair, told the conference the central bank could begin to reassess the framework later this year, though she added that the threshold for change should be high.

EU Leaders Draw Up Battle Lines for Post-Brexit Budget

European Union leaders staked out opening positions Friday for a battle over EU budgets that many conceded they are unlikely to resolve before Britain leaves next year, blowing a hole in Brussels’ finances.

At a summit to launch discussion on the size and shape of a seven-year budget package to run from 2021, ex-communist states urged wealthier neighbors to plug a nearly 10 percent annual revenue gap being left by Britain, while the Dutch led a group of small, rich countries refusing to chip in any more to the EU.

Germany and France, the biggest economies and the bloc’s driving duo as Britain prepares to leave in March 2019, renewed offers to increase their own contributions, though both set out conditions for that, including new priorities and less waste.

Underlining that a divide between east and west runs deeper than money, French President Emmanuel Macron criticized what he said were poor countries abusing EU funds designed to narrow the gap in living standards after the Cold War to shore up their own popularity while ignoring EU values on civil rights or to undercut Western economies by slashing tax and labor rules.

Noting the history of EU “cohesion” and other funding for poor regions as a tool of economic “convergence,” Macron told reporters: “I will reject a European budget which is used to finance divergence, on tax, on labor or on values.”

Poland and Hungary, heavyweights among the ex-communist states which joined the EU this century, are run by right-wing governments at daggers drawn with Brussels over their efforts to influence courts, media and other independent institutions.

The European Commission, the executive which will propose a detailed budget in May, has said it will aim to satisfy calls for “conditionality” that will link getting some EU funding to meeting treaty commitments on democratic standards such as properly functioning courts able to settle economic disputes.

But its president, Jean-Claude Juncker, warned on Friday against deepening “the rift between east and west” and some in the poorer nations see complaints about authoritarian tendencies as a convenient excuse to avoid paying in more to Brussels.

At around 140 billion euros ($170 billion) a year, the EU budget represents about 1 percent of economic output in the bloc or some 2 percent of public spending, but for all that it remains one of the bloodiest subjects of debate for members.

Focus on payments

The Commission has suggested that the next package should be increased by about 10 percent, but there was little sign Friday that the governments with cash are willing to pay that.

“When the UK leaves the EU, then that part of the budget should drop out,” said Dutch Prime Minister Mark Rutte, who leads a group of hawks including Sweden, Denmark and Austria.

“In any case, we do not want our contribution to rise and we want modernization,” he added, saying that meant reconsidering the EU’s major spending on agriculture and regional cohesion in order to do more in defense, research and controlling migration.

On the other side, Czech Prime Minister Andrej Babis said his priorities were “sufficient financing of cohesion policy” a good deal for businesses from the EU’s agricultural subsidies.

German Chancellor Angela Merkel said there had been broad agreement that new priorities such as in defense, migration and research should get new funding and she called for a “debureaucratization” of traditional EU spending programs.

Summit chair Donald Tusk praised the 27 leaders — Prime Minister Theresa May was not invited as Britain will have left before the new budget round starts — for approaching the issue “with open minds, rather than red lines.” But despite them all wanting to speed up the process, a deal this year was unlikely.

Quick deal unlikely

Although all agree it would be good to avoid a repeat of the 11th-hour wrangling ahead of the 2014-20 package, many sounded doubtful of a quick deal even early next year.

“It could go on for ages,” Rutte said. He added that it would be “nice” to finish by the May 2019 EU election: “But that’s very tight.”

Among the touchiest subjects will be accounting for the mass arrival of asylum-seekers in recent years. Aggrieved that some eastern states refuse to take in mainly Muslim migrants, some in the west have suggested penalizing them via the EU budget.

Merkel has proposed that regions which are taking in and trying to integrate refugees should have that rewarded in the allocation of EU funding — a less obviously penal approach but one which she had to defend on Friday against criticism in the east. It was not meant as a threat, the chancellor insisted.

In other business at a summit which reached no formal legal conclusions, leaders broadly agreed on some issues relating to next year’s elections to the European Parliament and to the accompanying appointment of a new Commission for five years.

They pushed back against efforts, notably from lawmakers, to limit their choice of nominee to succeed Juncker to a candidate who leads one of the pan-EU parties in the May 2019 vote. They approved Parliament’s plan to reallocate some British seats and to cut others altogether and also, barring Hungary, agreed to a Macron proposal to launch “consultations” with their citizens this year on what they want from the EU.

Is Turkey Using Infrastructure Projects to Stifle European Criticism?

When the first jet airplane lands Monday at Istanbul’s newest airport, it will mark a milestone in what analysts see as a Turkish drive to accomplish with contracting dollars what it has not been able to achieve with traditional diplomacy.

Long frustrated in its bid to join the European Union, analysts say President Recep Tayyip Erdogan has increasingly stressed trade and investment initiatives during his travels to European capitals, making his country second only to China in large-scale construction projects while muting the criticisms of Turkey’s human rights record that have blocked accession to the E.U.

Istanbul’s third airport, when it officially opens in late October, will be able to handle up to 200 million passengers a year, outstripping most other global transport hubs and establishing Turkey as a crucial gateway linking Europe and Asia.

European investment has been key to many of Turkey’s mega-projects, such as the airport and a multi-billion-dollar wind turbine farm announced this week, and Erdogan is aggressively looking for more.

“Our bilateral trade volume with Italy amounted to nearly $20 billion last year,” he declared ahead of a scheduled visit to meet the pope at the Vatican earlier this month. “However, our potential is much higher than that. We aim to increase our bilateral trade volume to $30 billion in 2020.”

Italian companies have benefited from a number of Turkey’s initiatives, winning several lucrative defense and construction contracts including for one of the world’s tallest and widest suspension spans, Istanbul’s Yavuz Sultan Selim Bridge, which was completed in 2016.

The deals have been a boon for European companies during a period of austerity across the continent. Analysts say this point has not been lost on Turkey and that it increasingly sees such partnerships as useful tools in its efforts to quiet criticism over human rights and its military incursion into neighboring Syria.

“Ankara is buying anybody and everybody with these infrastructure projects and everybody is happy with it,” said political scientist Cengiz Aktar.

“The Europeans get what they really want; they want to continue trade with Turkey,” he said. “And to get the juicy infrastructural projects — they are very happy with this. This is why they keep appeasing Turkey. And all these laments about what is happening to the rule of law in Turkey, this is just crocodile tears.”

Competition for those contracts in Europe is fierce, according to analysts.

“These mega projects, construction infrastructure, tunnels etc., are incredibly lucrative,” said political analyst Atilla Yesilada of Global Source Partners.

“The loans taken out by the building consortium are given treasury guarantees,” he said. “The cost is lower than a typical market loan. There is a revenue guarantee in dollar terms, so whether the project is profitable, does not make a difference – the government makes up the difference. It’s like a treasure room, there is no way you can lose money on these.”

Arms deal with Britain

Separately, Britain and Turkey have struck up a deep trade relationship, largely based on weapons sales, with Britain’s BAE developing a military stealth jet for the Turkish armed forces. At the same time, London has voiced little criticism of Turkey over that country’s human rights record or military operations in Syria.

On Wednesday, the deputy chair of Turkey’s ruling AK Party, Mehdi Eker, spoke at a meeting in the British parliament and voiced appreciation for Britain’s stance on Turkey’s ongoing military offensive in Syria against a Kurdish militia.

“New realism”

Ankara has already coined the phrase “new realism” to define its diplomatic strategy with European countries. Analysts suggest Turkish foreign policy is increasingly sidelining its relations with the European Union and instead focusing on bilateral relations with individual European countries, shaped by pragmatism.

“Relations seem to be based on the idea, ‘let’s put our problems aside, not dwell on them, agree to disagree or whatever,'” said political columnist Semih Idiz of the Al Monitor website. “But there are practical issues that have to be addressed.”

“For all the bad vibes at the moment, there are construction and strategic arms deals being signed between Turkey and France and Italy,” he said. “And after, the post-Brexit situation will undoubtedly speed up Turkish-British relations, not only because Turkey needs good allies in Europe, but because Britain needs the alternative markets and alternative partners.”

Idiz went on to say there are “a lot of areas for Turkish diplomacy to move in” as he referred Britain’s pending exit from the European Union.

Critics are increasingly citing the adage, “He who pays the piper calls the tune,” in describing Europe’s relations with Turkey. They say as long as Ankara has the money to dish out lucrative and seemingly endless contracts to European companies, then its “new realism” foreign policy with Europe seems set to continue.

Construction Begins on Afghanistan Section of International Gas Pipeline

Leaders of Afghanistan, Turkmenistan, Pakistan and its arch rival India jointly inaugurated construction work Friday on the Afghan section of a long-delayed multibillion-dollar gas pipeline connecting the four nations, raising hopes for regional cooperation and peace.

A ceremony took place in the ancient Afghan city of Herat, attended by President Ashraf Ghani, his Turkmen counterpart, Gurbanguly Berdymukhamedov, Pakistani Prime Minister Shahid Khaqan Abbasi and Indian External Affairs Minister M.J. Akbar.

The long-awaited 1,814 kilometer pipeline, known as TAPI, will transport natural gas from the world’s fourth-largest reserves in Turkmenistan through Afghanistan to growing economies of Pakistan and India, which are facing energy shortages.

TAPI was originally conceived in the 1990s, but differences over terms and conditions, unending Afghan hostilities and regional rivalries are blamed for delays. Turkmenistan took the initiative in December 2015 and has since constructed its portion of the pipeline up to the Afghan border.

President Ghani, while addressing Friday’s ceremony, vowed Afghanistan believes in connectivity and will “not spare any efforts” to implement the project to connect South Asia with Central Asia after a century of separation.

“This is the beginning of confidence in Afghanistan, confidence on national unity and harmony of the state and the people of Afghanistan,” noted Ghani.

Pakistani Prime Minister Abbasi reiterated his country’s commitment to peace and stability in Afghanistan.

“We are turning, by the grace of God, TAPI into a reality. It will provide shared regional prosperity … and it will provide peace dividends,” said Abbasi, whose country is accused of covertly supporting the Afghan Taliban, charges Islamabad denies as baseless.

“I want to tell my Afghan brothers and sisters that your success is our success, your development is our development and peace in Afghanistan means peace in Pakistan,” Abbasi emphasized.

He termed TAPI critical for Pakistan’s energy needs, saying it will provide about 10 percent of his country’s total energy consumption.

Expected cost

Officials say the project, estimated to cost up to $10 billion, will carry 33 billion cubic meters of natural gas annually for 30 years and is extendable.

The final cost, however, is anticipated to be much higher because of an accompanying power transmission pipeline and the fiber optic cable to be laid from Turkmenistan to Pakistan.

Afghanistan will buy about five billion cubic meters of gas once the project is completed. Kabul also will earn up to $500 million in transit fees from the project, which Afghans expect will create about 25,000 jobs in their war-shattered nation.

The Afghan section of the pipeline will run through five provinces in the south and southwest, including Herat, Farah, NImruz, and Helmand, before entering the southern Pakistan city of Quetta.

Security concerns

Taliban insurgents control or contest much of the Afghan territory along the TAPI route, raising security concerns for the pipeline.

In a statement issued Friday, though, the insurgent group dismissed those concerns and pledged to protect the pipeline, reminding skeptics the TAPI was initially negotiated and brought to Afghanistan when the Taliban was ruling the country.

The insurgency, which currently controls or influences about 44 percent of Afghan territory, blamed the 2001 U.S.-led invasion of the country for the delay in TAPI’s implementation.

Groundbreaking for the Afghan section took place at a time when Pakistan’s relations with India have deteriorated and both countries are locked in daily border skirmishes in Kashmir.

TAPI is dubbed by some as a “peace pipeline,” citing the potential the project has to promote regional economic and security cooperation. But analysts remain skeptical about future progress in the wake of Islamabad’s prevailing tensions with Kabul and New Delhi.

Second Russian Athlete Tests Positive for Doping at Olympics

A second Russian athlete has failed a doping test at the Pyeongchang Games, a day before the International Olympic Committee’s executive board is to decide whether to reinstate the country for Sunday’s closing ceremony.

 

Russian Bobsled Federation president Alexander Zubkov told The Associated Press on Friday that a drug-test sample that pilot Nadezhda Sergeeva gave on Sunday was positive.

 

The Russian delegation at the Pyeongchang Olympics said in a statement that the substance found was trimetazdine, a medication used for angina sufferers that is listed by the World Anti-Doping Agency as a banned substance affecting the metabolism.

 

“She confirms she took no such medication and the team confirms she was not issued any medication,” said Zubkov, a former bobsledder who himself was stripped of two Olympic gold medals for the Russian doping scheme at the 2014 Sochi Games. “Federation representatives at the Olympics” are starting to prepare a defense, he said.

 

Zubkov also said a sample she had given five days earlier was negative.

 

“I can tell you that on the 13th it was clean, but on the 18th it gave a positive result for the heart medication,” he said.

 

The IOC said later Friday it had been informed of the positive test by the Russian delegation.

 

Sergeeva’s crew finished 12th in the women’s bobsled competition on Wednesday, after she had given the sample that later came back positive.

 

The Russian team was barred from the Olympics in December for doping at the Sochi Games, but the IOC invited 168 athletes from the country to compete under the Olympic flag. The IOC set out the criteria for Russia to be reinstated, and the latest doping cases are a setback.

 

“This won’t win us any extra credit,” Russian delegation leader Stanislav Pozdnyakov said in comments reported by Russian media. “Unfortunately this case speaks to negligence by the athlete. She has let us down.”

 

A group of influential anti-doping organizations has called on the IOC not to reinstate Russia in time for the closing ceremony.

 

The Institute of National Anti-Doping Organizations says the IOC “can’t merely ‘wish away’ the most significant fraud in the history of sport,” adding that “by failing to impose a meaningful sanction on the ROC (Russian Olympic Committee), the IOC would be culpable in this effort to defraud clean athletes of the world.”

 

Earlier this month, Sergeeva told the AP that competitors from other countries had warmed to her after she passed IOC vetting for Pyeongchang, which included an examination of her drug-testing history.

 

“I don’t know why, but they’ve started talking to us more than ever before. I feel it. Maybe it’s a sign to them that we’re clean,” Sergeeva said. “There’s a lot of people coming up and saying, ‘We’re happy you’re here.’”

 

At the time, she was training in a T-shirt with the words “I Don’t Do Doping.” Sergeeva used to compete in track and field as a heptathlete before switching sports in 2010.

 

It is the fourth doping case of the games. Russian curler Alexander Krushelnitsky was stripped of his bronze medal Thursday after testing positive for the banned substance meldonium. Slovenian hockey player Ziga Jeglic and Japanese speedskater Kei Saito also left the games after testing positive.

Trimetazidine, the substance found in Sergeeva’s sample, has been detected in previous doping cases. Chinese swimmer Sun Yang, an Olympic gold medalist, was banned for three months in 2014 by his country’s sports authorities after testing positive for the substance.

 

Sun said he had been prescribed the drug for a medical condition and hadn’t known it was banned. The perceived leniency of that three-month ban led to Sun receiving criticism from swimmers from other countries at the 2016 Olympics in Rio de Janeiro, where he won another gold medal.

 

Russia’s bobsled program has been in the spotlight for drug use for several years.

 

Zubkov and four other bobsledders were disqualified from the 2014 Sochi Games for doping, though four other bobsledders have been reinstated. Another gold medalist, Dmitry Trunenkov, was banned last year for failing a doping test.

 

‘Sooner, Faster, Now’ — the Companies Surfing the E-Commerce Wave

Amazon’s assault on the retail industry has brought misery to traditional retailers without a strong web presence.

Less well noticed is the patchwork of European companies that are turning the e-commerce revolution to their advantage, supplying online giants with everything from forklift trucks and storage space to cardboard boxes and automated warehouses.

Mainly bricks-and-mortar retailers such as Debenhams, H&M, and Marks & Spencer have faced a torrid few years as stretched consumers increasingly look online for bargains.

Online retail sales are growing at double-digit percentage rates in every western European country, according to consultancy the Centre for Retail Research.

In Britain, a fifth of transactions are now conducted online, a five-fold increase over the last decade.

The world’s dominant online retailer Amazon, whose shares have soared 73 percent in the last year, is outside the remit of most European investors because it is U.S. listed, so they have had to look for other ways of buying into the trend.

One is investing in companies that have benefited from the rise of e-commerce.

On February 16, warehouse owner Segro’s shares hit a decade-high after it said space-hungry clients, many in online retail and logistics, continued to buy up storage.

“There is a bull market in impatience,” said Gary Paulin, head of global equities at broker Northern Trust. “Consumers want things sooner, faster, now.”

He advises clients to buy shares in Kion, a German forklift truck-maker that is automating warehouses for online retailers, speeding up deliveries in the process.

He also flagged a turnaround at online supermarket Ocado. The company has long been targeted by short-sellers betting its share price will fall, but recently it has signed tie-ups with food retailers Casino and Sobeys, and its shares have more-than-doubled since November.

Martin Todd, a fund manager at Hermes Investment Management, owns shares in Kion as well as DS Smith, a cardboard-box maker which supplies Amazon as well as a number of other online retailers.

DS Smith is developing technology to custom-make boxes for Amazon that will help reduce large gaps in packages that increase freight costs.

“You might think it is a pretty unsexy business … [but] it is getting more high tech in what is traditionally a very low tech industry,” Todd said.

The company recently entered Britain’s blue-chip FTSE 100 index for the first time.

Buying some stocks exposed to online retail does not come cheap. Ocado shares are currently trading at more than 800 times forecast earnings, according to Eikon data.

John Bennett, head of European equities at Janus Henderson Investors, said while traditional retailers were “absolutely dying,” stocks such as Kion were too expensive for him to own.

“It became a very popular name, and I tend to shy away [from widely-owned companies],” he said. “I am far too curmudgeonly on the multiples you pay.”

Reporting by Alasdair Pal.

US Embassy in Montenegro Reopens After Bomb Incident

The U.S. embassy in the Montenegrin capital of Podgorica has reopened a day after an ex-Yugoslav soldier hurled a hand grenade into the compound and then killed himself with another one.

 

The embassy said Friday on Twitter it’s “open for business as usual following yesterday’s incident.”

The blast around midnight Wednesday created a crater in the embassy’s yard but injured no one. Police are investigating possible motives and whether the attacker acted alone.

 

The suspect has been identified as Dalibor Jaukovic, who served in the Yugoslav military during the 1999 NATO bombing of Serbia. He was reportedly opposed to Montenegro’s membership in NATO.

 

Montenegro and Serbia were part of Yugoslavia during the NATO bombing. Montenegro split from Serbia in 2006 and joined NATO last year.

 

Report: Trump, Officials to Discuss Changes to Biofuels Policy

U.S. President Donald Trump has called a meeting early next week with key senators and Cabinet officials to discuss potential changes to biofuels policy, which is coming under increasing pressure after a Pennsylvania refiner blamed the regulation for its bankruptcy, according to four sources familiar with the matter.

The meeting comes as the oil industry and corn lobby clash over the future of the Renewable Fuel Standard (RFS), a decade-old regulation that requires refiners to cover the cost of mixing biofuels such as corn-based ethanol into their fuel.

Trump’s engagement reflects the high political stakes of protecting jobs in a key electoral state. Oil refiner Philadelphia Energy Solutions (PES), which employs more than 1,000 people in Philadelphia, declared bankruptcy last month and blamed the regulation for its demise.

Oil, farm state senators

The meeting, scheduled for Tuesday, will include Republican Senators Ted Cruz of Texas, Chuck Grassley and Joni Ernst of Iowa, along with Environmental Protection Agency Administrator Scott Pruitt, Agriculture Secretary Sonny Perdue, and potentially Energy Secretary Rick Perry, according to the four sources, who asked not to be named because they were not authorized to speak publicly on the matter.

One source said the meeting would focus on short-term solutions to help PES continue operating. PES is asking a bankruptcy judge to shed roughly $350 million of its current RFS compliance costs, owed to the EPA which administers the program, as part of its restructuring package.

The other sources said the meeting will consider whether to cap prices for biofuel credits, let higher-ethanol blends be sold all year, and efforts to get speculators out of the market.

Officials at the EPA, Agriculture Department, and Energy Department declined to comment. A White House official, Kelly Love, said she had no announcement on the matter at this time.

The offices of Cruz, Ernst and Grassley did not immediately return requests for comment.

The sources said the options moving forward would be constrained by political and legal realities that have derailed previous efforts at reform.

The Trump administration has considered changes to the RFS sought by refiners this year, including reducing the amount of biofuels required to be blended annually under the regulation or shifting the responsibility for blending to supply terminals, only to retreat in the face of opposition from corn-state lawmakers.

​Narrow options, broad resistance

The EPA is expected to weigh in officially in the coming weeks on request by PES to the bankruptcy judge to be released from its compliance obligations. But any such move would likely draw a backlash from other U.S. refiners, who have no hope of receiving a waiver.

Under the RFS, refiners must earn or purchase blending credits called RINs to prove they are complying with the regulation. As biofuels volume quotas have increased, so have prices for the credits, meaning refiners that invested in blending facilities have benefited while those that have not, such as PES, have had to pay up.

PES said its RFS compliance costs exceeded its payroll last year, and ranked only behind the cost of purchasing crude oil.

Other issues may have contributed to PES’ financial difficulties. Reuters reported that PES’ investor backers withdrew from the company more than $594 million in a series of dividend-style distributions since 2012, even as regional refining economics slumped.

Regulators and lawmakers have been considering how to cut the cost of the RFS to the oil industry.

In recent months, for example, the EPA has contemplated expanding its use of an exemption available to small refineries, a move that would likely push down RIN prices, but which both the oil and corn industries have said would be unfair.

Cruz last year proposed limiting the price of RINs to 10 cents, a fraction of their current value — an idea that was roundly rejected by the ethanol industry as a disincentive for new ethanol blending infrastructure investment.

Senator John Cornyn, also a Texas Republican, is preparing draft legislation to overhaul the RFS in Congress that would include the creation of a new specialized RIN credit intended to push down prices, but it too faces resistance from both the corn and oil lobbies.

Saudis Promised Double the Fun in Drive to Lure Back Tourist Dollars

Saudi Arabia will stage more than 5,000 shows, festivals and concerts in 2018, double the number of last year, as it tries to shake off its conservative image in a drive to keep tourist dollars at home and lure in visitors.

The state wants to capture up to a quarter of the $20 billion currently spent overseas every year by Saudis seeking entertainment, lifting a ban on cinemas and putting on shows by Western artists.

U.S. rapper Nelly performed in Jeddah in December, albeit to a men-only crowd, and Greek musician Yanni played to a mixed-gender audience.

The gradual relaxing of gender segregation risks causing a backlash from religious conservatives, but public objections to a wider program of reforms have been more muted in recent months after several critics were arrested.

At an event to launch the 2018 entertainment calendar, Ahmed al-Khatib, chairman of the state-run General Entertainment Authority (GEA), said infrastructure investments over the next decade would reach 240 billion riyals ($64 billion), including an opera house to be completed around 2022.

That will contribute 18 billion riyals to annual GDP and generate 224,000 new jobs by 2030, the GEA said.

“The bridge is starting to reverse,” Khatib said, referring to the causeway linking Saudi Arabia with more liberal Bahrain where many Saudis flock for weekend getaways.

“And I promise you that we will reverse this migration, and people from Dubai, Kuwait and Bahrain will come to Saudi.”

However, on Thursday night, the Minister of Culture and Information said Khatib’s opera plans were an infringement of the role of the General Authority for Culture, a separate government body, the Saudi Press Agency said.

Economic hopes

The entertainment plans are largely motivated by economics, part of a reform program to diversify the economy away from oil and create jobs for young Saudis.

The Vision 2030 plan aims to increase household spending on cultural and entertainment events inside the kingdom to 6 percent by 2030 from 2.9 percent.

“We are bringing the most exciting and famous events to Saudi Arabia this year,” Khatib told Reuters in an interview, adding that state-sponsored entertainment events would be staged in 56 cities.

“We are creating new local events with local content,” he said. “Almost 80 percent of the calendar [events] are for families.”

Saudi Arabia lifted a 35-year ban on cinemas late last year, with plans for regional and global chains to open more than 300 movie theaters by 2030. The first cinemas are expected to start showing films in March.

Last year, the country announced plans to develop resorts on some 50 islands off the Red Sea coast and an entertainment city south of Riyadh featuring golf courses, car racing tracks and a Six Flags theme park.

Troubled Latvian Bank Faces ECB Deadline to Avoid Closure

The European Central Bank has set a deadline of Friday for Latvia’s third-largest bank to plug a financing hole, the country’s finance minister said, as the Baltic state faced its worst financial difficulties in almost a decade.

Earlier, ABLV said it had asked for a 480 million euro ($591 million) emergency loan from the country’s central bank as part of efforts to reopen for business after being forced to halt all payments in the face of money laundering accusations.

The request for credit comes amid frantic efforts by ABLV’s management to keep the bank afloat after U.S. authorities singled it out for money laundering and moved to block it from doing financial deals in dollars.

ABLV has denied any such wrongdoing. “We want to give an opportunity … for the bank to ensure its short-term liquidity, so that it can continue operating,” the Baltic state’s finance minister, Dana Reizniece-Ozola, told a news website, Delfi.lv.

The ECB has imposed a moratorium stopping savers withdrawing their funds or making payments. It declined to comment about the deadline.

In an interview with Reuters, a senior ABLV executive appealed for the group to be spared closure.

“We believe that the bank has a future, on the basis of a substantially reduced business,” Vadims Reinfelds, deputy chief executive, said.

“What we are looking for here is a medium term or even longer term solution. If that is not possible, then resolution is the alternative,” he said, referring to a possible winding down. “The business can be restructured without resolution,” Reinfelds said, adding the bank was solvent.

He warned the bank was “systemic” — a reference to its significance for the financial system and an indication that its problems could spill over to affect others.

The finance minister, however, played down such concerns.

The crisis at ABLV comes alongside a separate police investigation into whether the head of Latvia’s central bank took a bribe of more than 100,000 euros.

Ilmars Rimsevics has dismissed the allegations and said he is the victim of a smear campaign, while the Ministry of Defense has suggested that disinformation may be to blame.

The ministry did not say who was behind this but drew parallels with campaigns before the U.S. elections in 2016. Russia has denied it was behind those campaigns and says it does not meddle in elections in the West.

The episode has cast a shadow over Latvia, which belongs to the euro zone and whose top officials hold influential posts both at the European Commission and European Central Bank.

Experts have said the events raise questions about the ECB, which is responsible for supervision of ABLV and other banks around the euro zone. The ECB has said it is not its responsibility to police money laundering.

Latvia was one of the hardest hit countries in the global financial crisis, falling into recession as the government sought an international bailout, nationalized Parex Bank and made spending cuts amid a wave of emigration.

($1 = 0.8141 euros)

Reporting by John O’Donnell and Gederts Gelzis.

Turkey Condemns Dutch Parliament Recognition of 1915 Armenian Massacre As Genocide

Turkey’s foreign ministry on Thursday condemned the Dutch parliament’s approval of a motion recognizing as genocide the massacre of as many as 1.5 million Armenians in 1915.

The ministry said in a written statement that the decision was not legally binding or valid, and noted that the Dutch government had said it would not become the official policy of the Netherlands.

 

Primitive Art: Neanderthals Were Europe’s First Painters

The world’s oldest known cave paintings were made by Neanderthals, not modern humans, suggesting our extinct cousins were far from being uncultured brutes.

A high-tech analysis of cave art at three Spanish sites, published on Thursday, dates the paintings to at least 64,800 years ago, or 20,000 years before modern humans arrived in Europe from Africa.

That makes the cave art much older than previously thought and provides the strongest evidence yet that Neanderthals had the cognitive capacity to understand symbolic representation, a central pillar of human culture.

“What we’ve got here is a smoking gun that really overturns the notion that Neanderthals were knuckle-dragging cavemen,” said Alistair Pike, professor of archaeological sciences at the University of Southampton, who co-led the study.

“Painting is something that has always been seen as a very human activity, so if Neanderthals are doing it they are being just like us,” he told Reuters.

While some archaeologists already viewed Neanderthals as more sophisticated than their commonplace caricature, the evidence until now has been inconclusive. With the data from the three Spanish cave sites described in the journal Science, Pike and colleagues believe they finally have rock-solid proof.

The early cave art at La Pasiega, Maltravieso and Ardales includes lines, dots, discs and hand stencils — and creating them would have involved specific skills, such as mixing pigments and selecting appropriate display locations.

The Neanderthals living in the same land that would one day give birth to Diego Velazquez and Pablo Picasso also needed the intellectual ability to think symbolically, like modern humans.

Scientists used a precise dating system based on the radioactive decay of uranium isotopes into thorium to assess the age of the paintings. This involved scraping a few milligrams of calcium carbonate deposit from the paintings for analysis.

A second related study published in Science Advances found that dyed and decorated marine shells from a different Spanish cave also dated back to pre-human times.

Taken together, the researchers said their work suggested that Neanderthals were “cognitively indistinguishable” from early modern humans.

Joao Zilhao of the University of Barcelona said the new findings meant the search for the origins of human cognition needed to go back to the common ancestor of both Neanderthals and modern humans more than 500,000 years ago.

Neanderthals died out about 40,000 years ago, soon after direct ancestors arrived in Europe. It is unclear what killed them off, although theories include an inability to adapt to climate change and increased competition from modern humans.

If they were still alive today, Pike believes they could well have gone on develop complex art and technology.

“If they had been given the time, the resources and the population, then they might have ended up in some version of the world we live in today.”

Man Throws Grenade at US Embassy in Montenegro, Kills Self

Montenegro says an attacker threw a grenade at the U.S. Embassy in the capital of the Balkan state then killed himself with another explosive device.

The area was sealed off by police, and the embassy warned Americans to avoid the area because of “an active security situation.”

Montenegro’s government said the unknown assailant hurled the grenade into the embassy compound around midnight (1100 GMT) and then killed himself with another explosive device. No one else was hurt and there was no major damage.

Montenegro borders the Adriatic Sea in southeastern Europe and its capital is Podgorica. It joined NATO last year.

The U.S. established diplomatic ties with the tiny Balkan state in 2006 after it split from much larger Serbia.

US Companies Urged to Issue ‘Clearer’ Cyber Risk Disclosures

The U.S. Securities and Exchange Commission on Wednesday updated guidance to public companies on how and when they should disclose cybersecurity risks and breaches, including potential weaknesses that have not yet been targeted by hackers.

The guidance also said company executives must not trade in a firm’s securities while possessing nonpublic information on cybersecurity attacks. The SEC encouraged companies to consider adopting specific policies restricting executive trading in shares while a hack is being investigated and before it is disclosed.

The SEC, in unanimously approving the additional guidance, said it would promote “clearer and more robust disclosure” by companies facing cybersecurity issues, according to SEC Chairman Jay Clayton, a Republican.

Democrats on the commission reluctantly supported the guidance, describing it as a paltry step taken in the wake of a raft of high-profile hacks at major companies that exposed millions of Americans’ personal information. They called for much more rigorous rule-making to police disclosure around cybersecurity issues, or requiring certain cybersecurity policies at public companies.

Commissioner Robert Jackson said the new document “essentially reiterates years-old staff-level views on this issue,” and pointed to analysis from the White House Council of Economic Advisers that finds companies frequently under-report cybersecurity events to investors.

The SEC first issued guidance in 2011 on cybersecurity disclosures.

“It may provide investors a false sense of comfort that we, at the Commission, have done something more than we have,” Commissioner Kara Stein, another Democrat, said in a statement. Significant breaches have included those at Equifax Inc. consumer credit reporting agency, and at the SEC itself.

The agency announced in September its corporate filing system, known as EDGAR, was breached by hackers in 2016 and may have been used for insider trading. The matter is under review.

The new guidance will mean that corporations disclose more information about cyberattacks and risks and take steps to ensure no insider trading can occur around those events, said several attorneys who advise businesses on the subject.

“This essentially creates a mandatory new disclosure category — cybersecurity risks and incidents,” said Spencer Feldman, an attorney with Olshan Frome Wolosky LLP.

Craig A. Newman, a partner with Patterson Belknap Webb & Tyler LLP, said the SEC guidance “makes clear that it doesn’t want a repeat of the Equifax situation.”

Ford US Chief Leaves After Probe into Inappropriate Behavior

Ford Motor Co. said Wednesday that Raj Nair, its president for North America, was leaving the company immediately after an internal investigation found his behavior was “inconsistent with the company’s code of conduct.”

Ford did not give any details on what that behavior entailed. His departure comes after several high-profile business leaders have quit or been fired following accusations of sexual misconduct.

“We made this decision after a thorough review and careful consideration,” said Ford Chief Executive Jim Hackett in a statement. “Ford is deeply committed to providing and nurturing a safe and respectful culture and we expect our leaders to fully uphold these values.”

Nair apologized, without elaborating.

“I sincerely regret that there have been instances where I have not exhibited leadership behaviors consistent with the principles that the Company and I have always espoused,” Nair said in Ford’s statement.

A spokesman for No. 2 U.S. automaker said the company would not comment on the nature of Nair’s behavior beyond what was in its official statement.

Nair was appointed to his current position last May when Hackett became CEO. Nair previously served as Ford’s chief technical officer.

Explosive Device Kills 2 French Soldiers in Mali

Two members of a French counterterrorism force in Mali were killed Wednesday when an improvised explosive device hit their armored vehicle in a border region with Niger, authorities said.

French President Emmanuel Macron’s office said a soldier and an officer were killed in the explosion. A statement by Defense Minister Florence Parly said those killed were part of a “vast operation” patrolling the border region with Niger. It did not specify the locality.

The minister identified the victims as Emilien Mougin and Timothee Dernoncourt, from an armored regiment based in Valence but members of Operation Barkhane, an anti-terrorism force operating in the Sahel region of west Africa.

Islamic extremists and traffickers frequently cross or hide out in border regions between Mali and Niger and between Mali and Burkina Faso. It was not known who planted the explosive device.

Operation Barkhane, the 4,000-strong counterterrorism force started in 2014, is meant to fight extremist groups in the west African Sahel region, which also includes Niger, Burkina Faso, Chad and Mauritania. About 1,000 French soldiers are in Mali. The Barkhane troops are backed by fighter planes, drones and helicopters. Barkhane replaced the troops of a 2013 intervention in Mali to rout an al-Qaida affiliate in the north. Surviving fighters spread out across the region.

Macron praised the “courage” of the French soldiers and their determination to continue their mission, “which allows them to strike serious blows against the enemy.”

Protests in Greece Swell Against Property Auctions

Greece’s powerful Communist Party has vowed to step up protests against online auctions of homes with defaulted mortgages, putting more pressure on the government which has promised bailout creditors it will speed up the auction process.

More than 2,000 protesters from the party’s labor union took part in a rally in central Athens against the auctions which restarted Wednesday, following months of delays.

Until now, protests against the auctions at courthouses and the offices of notary publics have been led by smaller left-wing groups.

European Union institutions participating in Greece’s bailout are pressing Athens to ensure that auctions proceed.

This week, due to the postponed auctions, creditors delayed paying out a rescue loan installment to the government worth 5.7 billion euros ($7.1 billion).

Oxfam Investigates New Claims Of Sexual Misconduct

British aid agency Oxfam says it is investigating dozens of new allegations of sexual misconduct. It follows revelations last week that some Oxfam staff in Haiti paid sex workers in the aftermath of the 2010 earthquake. As Henry Ridgwell reports from London, the scandal looks set to mark a watershed moment for the aid sector.

S. Korea’s Cryptocurrency Industry Welcomes Regulator’s Dramatic Change of Heart

South Korea’s cryptocurrency industry is anticipating much better times as the market regulator changes tack from its tough stance on the virtual coin trade, promising instead to help promote blockchain technology.

The regulator said Tuesday that it hopes to see South Korea — which has become a hub for cryptocurrency trade — normalize the virtual coin business in a self-regulatory environment.

“The whole world is now framing the outline [for cryptocurrency] and therefore [the government] should rather work more on normalization than increasing regulation,” Choe Heung-sik, chief of South Korea’s Finance Supervisory Service (FSS), told reporters.

FSS has been leading the government’s regulation of cryptocurrency trading as part of a task force.

Cryptocurrency operators have drawn a new optimism from Choe’s comments, seeing them clearly indicating the government’s cooperation in their plans for self-regulation.

“Though the government and the industry have not yet reached a full agreement, the fact that the regulator himself made clear the government’s stance on cooperation is a positive sign for the markets,” said Kim Haw-joon of the Korea Blockchain Association.

Wednesday’s news is a stark reversal of the justice minister’s warnings in January that the government was considering shutting down local cryptocurrency exchanges, throwing the market into turmoil.

Instead, South Korea banned the use of anonymous bank accounts for virtual coin trading as of January 30 to stop cryptocurrencies being used in money laundering and other crimes.

Bitcoin, the world’s most heavily traded cryptocurrency, is now changing hands at a three-week high of $11,086 on the Luxembourg-based Biststamp exchange after falling as low as $5,920.72 in early February.

South Korean electronics giant Samsung has already started production of cryptocurrency mining technologies, local media reported in January.

S. Korea Signs Free Trade Deals With 5 Central America Countries

South Korea said on Wednesday it is signing free trade agreements with five Central American nations aimed at boosting market access for the Korean auto sector and electronics makers.

Trade minister Kim Hyun-chong will meet representatives from Costa Rica, El Salvador, Honduras, Nicaragua and Panama in Seoul on Wednesday to sign five separate bilateral pacts which will eliminate duties on about 95 percent of traded goods and services, Korea’s trade ministry said in an e-mailed statement.

The agreements are subject to parliamentary approval in each country, and is likely to take effect at different times depending on the ratification process.

The five trade pacts open South Korea to key Central American countries after its deals with the U.S., the European Union and China helped boost exports.

“The South Korea-Central America free trade deals will enable the countries to build a more comprehensive, strategic partnerships going forward,” Kim said.

The ministry expects the five deals to accelerate South Korea’s economic growth by an overall 0.02 percent in the next 10 years, by boosting exports of cars, steel, cosmetics products, and auto components.

Venezuela: Launch of ‘Petro’ Cryptocurrency Raised $735 Million

President Nicolas Maduro said Tuesday that Venezuela had received $735 million in the first day of a pre-sale of the country’s “petro” cryptocurrency, aimed at pulling the country out of an economic tailspin.

Maduro is hoping the petro will allow the ailing OPEC member to skirt U.S. sanctions as the bolivar currency plunges to record lows and it struggles with hyperinflation and a collapsing socialist economy.

Blockchain experts have warned the petro is unlikely to attract significant investment. Opposition leaders have said the sale constitutes an illegal debt issuance that circumvents Venezuela’s majority-opposition legislature, and the U.S. Treasury Department has warned it may violate sanctions levied last year.

Maduro did not give details about the initial investors and there was no evidence presented for his figure. He added that tourism, some gasoline sales and some oil transactions could be made in petro.

“Today, a cryptocurrency is being born that can take on Superman,” said Maduro, using the comic character to refer to the United States, as he was flanked by mining rigs in a state television address.

The official website for the petro on Tuesday published a guide to setting up a virtual wallet to hold the cryptocurrency.

The cryptocurrency goes public next month.

Venezuelan Cryptocurrency Superintendent Carlos Vargas last week said the government was expecting to draw investors in Turkey, Qatar, the United States and Europe.

The value of the entire petro issuance of 100 million tokens would be just over $6 billion, according to details given by Maduro in recent months, though no new price information was provided Tuesday.

The tokens will each be valued at and backed by a barrel of Venezuelan crude oil, Maduro has said.

Advisers working for the government have in the past recommended that 38.4 percent of the petros should be sold in a private auction at a discount of 60 percent.

Maduro says his government is the victim of an “economic war” led by opposition politicians with the help of the government of U.S. President Donald Trump.

Sanctions levied last year by Washington block U.S. banks and investors from acquiring newly issued Venezuelan debt, effectively preventing the nation from borrowing abroad to bring in new hard currency or refinance existing debt.

The petro will not be a token on the Ethereum network, as was previously disclosed in a whitepaper provided by the government.

Macron to Propose Tighter Asylum Rules in Test of Parliamentary Majority

Emmanuel Macron’s government will on Wednesday propose toughening France’s immigration and asylum laws amid strident criticism from human rights groups, in a move that will test the unity of his left-and-right majority.

The bill will double to 90 days the time for which illegal migrants can be detained and shorten deadlines to apply for asylum, and it will make the illegal crossing of borders an offense punishable by one year in jail and fines.

The government says it wants to be both firm and fair on immigration, and the bill will also make it easier for minors to get asylum and will aim to cut by half the time it takes for authorities to process any asylum request.

But while Macron’s parliamentary majority, a mix of lawmakers who have their roots both in right-wing and left-wing parties, has so far been very united, the government’s migration plans have triggered disquiet in its ranks.

Mathieu Orphelin, a lawmaker from Macron’s Republic on the Move party, on Tuesday said increasing the detention time from 45 days to 90 days was problematic, adding that he intended to table amendments to modify the bill.

Another lawmaker from Macron’s party, Sonia Krimi, has accused the government of “playing with people’s fears” with its migration reform. “All foreigners in France are not terrorists. All foreigners do not cheat with social welfare,” she told Interior Minister Gerard Collomb in parliament in December.

Macron is accustomed to glowing international tributes as a breath of fresh air since his election in May last year on promises of a break with government framed by left-vs.-right politics.

But the migration bill has concentrated criticism at home.

The prominent left-wing magazine l’Obs in January featured a black-and-white photo of his face, wrapped in barbed wire, on its cover, above the words: “Welcome to the country of human rights.”

This bill “represents a vertiginous drop of refugees’ and migrants’ rights in France,” said Jean-Claude Mas of the Cimade charity, which helps migrants and asylum seekers.

It might, however, prove popular with voters. A BVA opinion poll this month showed that 63 percent of French voters think there are too many immigrants in France.

The number of people filing asylum requests in France hit a record in 2017, topping 100,000. That is still well below the 186,000 arrivals of asylum seekers registered that same year in Germany.

Polish Minister Backs Idea to Create ‘Polocaust’ Museum

Polish Deputy Culture Minister Jaroslaw Sellin on Tuesday backed a call for building a “Polokaust” museum to commemorate Poles killed by the Nazis during World War II.

This month Poland sparked international criticism, including from Israel and the United States, when it approved a law that imposes jail terms for suggesting the country was complicit in the Holocaust.

Some three million Jews who lived in pre-war Poland were murdered by the Nazis during their occupation of the country.

They accounted for about half of all Jews killed in the Holocaust.

Poland’s nationalist ruling party says the new law is needed to ensure that Poles are also recognized as victims, not perpetrators, of Nazi aggression. It notes that the Nazis also viewed Slavs as racially inferior and that many Poles were killed or forced into slave labor during the German occupation.

“I think the story of how the fate of Poles during World War II looked like … deserves to be told and shown in this way [in a museum] …,” Sellin was quoted by state media as saying.

“It is enough to read official German documents from these times or Hitler’s book to know that after the Jews, whom he wanted to completely erase from Europe …, the next [target] was generally Slavic people, especially Poles.”

Sellin was responding to a suggestion made by Marek Kochan, a writer and academic, in Polish daily Rzeczpospolita for what he called a “Polokaust” museum. It was unclear from Sellin’s comments whether the museum would be built.

Disturbing revelations

Many Poles believe their nation behaved honorably for the most part during the Holocaust. But research published since 1989 has sparked a painful debate about responsibility and reconciliation.

A 2000-2004 inquiry by Poland’s state Institute of National Remembrance (IPN) found that on July 10, 1941, Nazi occupiers and local inhabitants colluded in a massacre of at least 340 Jews at Jedwabne. Some victims were burned alive after being locked inside a barn.

The revelation disturbed the Poles’ belief that, with a few exceptions, they conducted themselves honorably during a vicious war in which a fifth of the nation perished. Some Poles still refuse to acknowledge the IPN’s findings.

Anti-Semitism was common in Poland in the run-up to World War II. After the war, a pogrom in the town of Kielce and a bout of anti-Semitism in 1968 sponsored by the communist authorities forced many survivors who had stayed in Poland to flee.