Spanish Authorities Blockade Polling Stations, Dismantle Equipment Ahead of Catalonia Referendum

Authorities in Spain have begun sealing off polling stations and confiscating ballots ahead of a planned referendum vote Sunday that possibly could lead to the Catalonian region’s independence.

The Spanish government says there will be no Catalonia independence vote Sunday, even as the regional government continues preparations for the referendum.

Enric Millo, the highest-ranking Spanish security official in the northeastern region, said Saturday police had already blockaded half of the more than 2,300 polling stations designated for the referendum vote.

He said Spanish authorities also had dismantled the technology Catalan officials had planned on using for voting and counting ballots, which he said would make the referendum “absolutely impossible.”

Catalan officials have said they plan to move forward with the vote despite the actions taken by Spain’s central government.

The president of the Catalan National Assembly appealed directly to the “conscience” of police officers deployed to the polling stations while speaking to reporters Saturday.

“I am aware they have a job to do, that they have their orders and have to carry them out. We are aware of that. But we also know that they have feelings, conscience,” he said.

“So tomorrow, when they carry out their orders they will undoubtedly receive, I hope they keep in mind – during the situations they find themselves in — that these could be their children, their mothers or their nephews, members of their family who just want to be able to  express themselves in freedom.”

Spanish Culture Minister Inigo Mendez de Vigo said Friday the independence vote violates Spanish law and the government will not accept the results of the referendum.

“We are open to dialogue within the framework of the law. As you would understand nobody can ask us … to engage in dialogue outside the framework of the law. It’s impossible,” he said. “No European political leader can even consider dealing with an issue that is not in [Spanish] government hands.”

Catalan authorities say they will declare independence from Spain within 48 hours of the vote if residents there choose to secede. The Spanish government has fought the measure and declared the vote illegitimate.

On Friday, Catalan farmers rode tractors through the streets of Barcelona, driving slowly and waving pro-independence flags and banners. The tractors eventually stopped, converging on the regional government building.

At the same time, European Union officials say they will not mediate the dispute between Spain and Catalonia, calling it a matter of Spanish law.

“[It is] a Spanish problem in which we can do little. It’s a problem of respecting Spanish laws that Spaniards have to resolve,” said European Parliament President Antonio Tajani.

European Commission Vice-President Frans Timmermans called on Europeans to respect the constitution and rule of law in their countries. He said people in the EU need to organize themselves “in accordance with the constitution of that member state.”

“That is the rule of law – you abide by the law and the constitution even if you don’t like it,” he said.

Catalan authorities previously had appealed to the EU for help, saying the Spanish government undermined their democratic values.

 

Russian Soldier who Killed 3 Comrades Shot Dead

Officials in far east Russia say a soldier who opened fire at other servicemen during drills has been tracked down and killed.

The military says the soldier, who killed three and wounded two other soldiers, offered resistance to arrest and was shot dead early Saturday following a massive manhunt.

During Friday’s incident, the soldier fired his Kalashnikov rifle at his comrades waiting to have target practice at a base outside the town of Belogorsk near the border with China and then fled.

The city administration in Belogorsk says the soldier came from the province of Dagestan in Russia’s North Caucasus.

Defense Minister Sergei Shoigu has sent a commission to investigate the shooting.

China Manufacturing Expands at Fastest Pace in 5 Years

An official survey released Saturday said that China’s factory activity expanded in September at the fastest pace in five years, as the country’s vital manufacturing sector stepped up production to meet strong demand.

The official manufacturing purchasing managers’ index rose to 52.4 in September, up from 51.7 in the previous month and the highest level since April 2012.

The report by the Federation of Logistics & Purchasing said production, new export orders and overall new orders grew at a faster pace for the month.

“The manufacturing sector continues to maintain a steady development trend and the pace is accelerating,” said Zhao Qinghe, senior statistician at the National Bureau of Statistics, which released the data. Zhao noted that the report found both domestic and global demand have improved.

However, in a separate report, the private Caixin/Markit manufacturing PMI slipped to 51.0 from 51.6, as factories reported that production and new orders expanded at slower rates last month.

Both indexes are based on a 100-point scale with 50 dividing expansion from contraction. But the federation’s report is focused more on large, state-owned enterprises while the Caixin survey is weighted to smaller, private companies.

Another official index covering non-manufacturing activity rebounded after two months of contraction, rising to 55.4 last month from 53.4 in August. That indicates momentum is picking up again in China’s service sector.

The reports come ahead of the ruling Communist Party’s twice-a-decade congress set for next month, where top leaders will be reshuffled and authorities will outline economic policies.

Earlier this month, rating agency Standard & Poor’s downgraded China’s credit rating on government borrowing, citing rising debt levels that raise financial risks and could drag on economic growth.

Untangling US Tax System

Nearly all U.S. taxpayers say American tax law, which runs tens of thousands of pages, is an incredibly complicated, annoying mess. And there is no agreement on how to fix the problem. Republicans recently outlined a new effort they say will be clearer, fairer and helpful to the economy. Critics say the Republican plan would cut taxes for the rich and increase the U.S. debt. VOA’s Jim Randle looks at how the system is supposed to work, and what critics say is wrong.

Kosovo President: US Will Be Directly Involved in Final Kosovo-Serbia Deal

Kosovo’s president, Hashim Thaci, says U.S. Vice President Mike Pence has pledged that the United States will be directly involved in reaching a final agreement to normalize relations between Kosovo and Serbia. 

Thaci told VOA’s Albanian service after meeting with Pence on Friday at the White House that “Pence will be focused and maximally involved” in reaching a deal between the two countries. 

“I believe that this willingness of the U.S. administration and personally of Vice President Pence is a guarantee for the success of this process,” Thaci said. 

He said he is confident the process will “lead Kosovo into a final agreement of normalization and reconciliation of Kosovo-Serbia relations and would open prospects for Kosovo’s integration into the United Nations.”

A White House statement Friday said Pence “expressed appreciation for Thaci’s leadership, along with Serbian President Aleksandar Vucic, to advance the EU-facilitated dialog to normalize relations between Kosovo and Serbia.”

The White House said Pence and Thaci “agreed on the importance of advancing reforms to strengthen the rule of law, fight corruption and boost economic growth” and said Pence reaffirmed the “United States’ support for a sovereign, democratic and prosperous Kosovo.”

The White House also encouraged Kosovo to ratify the border demarcation agreement with neighboring Montenegro “to resolve this long-standing issue.”

Thaci told VOA that Pence called on Kosovo to solve the issues as soon as possible. He said Kosovo has “good neighborly relations with Montenegro” and stressed the importance of such ties.

“No one can support you if you build bad relationships with your neighbors. We have a lot of problems with Serbia. We cannot open other problems with our neighbors that could cost us the integration processes” with the European Union, he said.

Thaci said the issue is in the hands of Kosovo’s parliament.

The border agreement was signed in 2015 but has not had sufficient support in Kosovo’s parliament for ratification.

The European Union insists Kosovo must approve the border demarcation deal before its citizens enjoy visa-free travel within Europe.

Montenegro has recognized Kosovo’s 2008 declaration of independence from Serbia, but Serbia vehemently opposes it.

VOA’s Albanian service contributed to this report.

Russia Charges Opposition Leader for Unsanctioned Protests

Russian police released opposition leader and would-be presidential candidate Alexei Navalny on Friday after several hours in detention.

Police charged Navalny with repeatedly organizing unauthorized rallies, an administrative offense punishable with a fine of up to a 300,000 rubles ($5,200) and compulsory work for up to 200 hours.

“We were finally presented with a charge and released, and the trial will be on October 2 at the Simonovsky Court of Moscow at 15:00 Moscow time,” Navalny’s lawyer, Olga Mikhailova, told Interfax.

Police had stopped Navalny early Friday as he was headed to a campaign rally in the city of Nizhny Novgorod, where at least one other rally leader was also detained — Navalny’s campaign chief, Leonid Volkov. 

“I’m in a police station now and they’re going to accuse me of repeated violation of the procedure for holding a mass event,” Navalny told VOA’s Russian service reporter Danila Galperovich earlier Friday. “It means almost for sure they will arrest me after the court will hear my case. I don’t know when.”

Police in Nizhny Novgorod, about 260 miles (417 kilometers) east of Moscow, had cordoned off the campaign rally site hours before the event was to begin and removed a Navalny campaign tent.

Despite the police actions, hundreds of Navalny’s supporters rallied Friday in the provincial city in protest. Images from social media showed protesters walking on a central street while loud music from an officially sanctioned concert blared nearby. 

Call for reform

Navalny’s detention came as the Council of Europe’s commissioner for human rights issued a memorandum saying Russian authorities should revise the country’s freedom of assembly law, which, he says, has become more restrictive in recent years.

“As a result, the authorities have rejected a high number of requests to hold public assemblies,” said Commissioner Nils Muiznieks in the published memorandum. “Over the past year, there have been many arrests of people participating in protests, even if they did not behave unlawfully, as well as a growing intolerance toward ‘unauthorized’ events involving small numbers of participants and even of single-person demonstrations. 

“This runs counter to Russia’s obligations under the European Convention on Human Rights and it weakens the guarantees contained in its own Constitution concerning the right to freedom of assembly,” Muiznieks said.

Russia is one of 47 member countries in the Council of Europe, the continent’s leading human rights organization, but routinely dismisses its criticism.

‘Trend toward deterioration’

Navalny and his anti-corruption campaign team have been harassed and attacked numerous times by police and Kremlin supporters. In April, a man threw a chemical sanitizer in the Russian opposition leader’s face, causing a chemical burn that required eye surgery and left him partially blind.

Navalny supporter Nikolai Lyaskin was reportedly attacked in Moscow this month with an iron pipe.

In an exclusive interview with VOA reporter Galperovich on September 26, Navalny expressed dismay at the repressive trend.  

“We currently see a trend toward deterioration: At first it was fines, then administrative arrests, and now it is fabrication of criminal charges [and] house arrest,” he said.

Navalny said the trend is reminiscent of how Soviet leader Josef Stalin’s Great Purge began in 1937.

“The capabilities of propaganda are mostly exhausted: You turn on the TV, which from morning until night is talking about beautiful North Korea, awful Ukraine, ‘gay’ Europe, et cetera. It is already impossible there [on TV] to fan the flames higher. Therefore, they are using repression to take people off the streets, to intimidate them,” Navalny said.

Challenging Putin

Navalny plans to challenge Vladimir Putin in Russia’s March presidential election, though Putin has made no official announcement to run in a bid to continue his 17 years as leader.

The Russian opposition leader has been campaigning in cities across the country despite the central election commission declaring him ineligible because of a suspended prison sentence. Navalny’s supporters and numerous independent analysts back up his view that the sentence was politically motivated.

The Council of Europe’s Committee of Ministers on September 21 demanded that Navalny be allowed to take part in the elections and that the fraud case against him and opposition politician Pyotr Ofitserov be re-examined.

In the interview Tuesday with Galperovich, Navalny expressed doubt that Russian authorities would act on the European ministers’ demand.

“I do not think that international structures can affect that much; at least, we have not in recent years seen international structures somehow straightforwardly affecting the internal political situation in Russia,” Navalny said.

But he said the resolution was satisfying nonetheless. “It is probably the best of all possible rulings we could hope for,” he said. “It quite clearly and distinctly shows that, first of all, the ruling of the European Court of Human Rights was not implemented and, secondly, that there is a demand there for my admission to the elections.”

The European Court of Human Rights had demanded Navalny’s 2013 fraud case be retried because it violated the defendant’s right to a fair trial. Russia’s Supreme Court ordered a retrial in July that resulted in the same verdict and a suspended sentence.

Analysts: Russia May Be Helping Catalonia Secessionists

Catalonia’s secessionists, who are trying to organize an independence vote from Spain on Sunday, may be getting aid from Russia as part of the Kremlin’s ongoing strategy to destabilize the European Union, according to European Union analysts.

Spain’s central government has deployed thousands of police to contain expected disorder. They have threatened local officials who support the referendum with stiff fines and jail. Spain’s constitutional court has declared the pending vote illegal.

Despite what some see as a heavy-handed response by Madrid, the United States and most EU governments have backed Spanish Prime Minister Mariano Rajoy in his efforts to keep Spain united.

Russian state media have disseminated reports consistently favorable to Catalan independence in a move some analysts consider to be Moscow’s latest attempt to interfere in Western electoral processes.

The Kremlin has taken no public position on the referendum, calling it an “internal” matter for Spain.

Russia’s use of hacked information and dissemination of “fake news,” however, has been detected in recent Western electoral events,  including the 2016 U.S. elections, Britain’s decision to leave the EU, or Brexit, and the just-concluded German elections.

“It’s not that Russia necessarily wants the independence of Catalonia. What it’s principally seeking is to foment divisions to gradually undermine Europe’s democracy and institutions,” said Brett Schaffer, an analyst of the Alliance to Safeguard Democracy, a project supported by the German Marshall Fund, which monitors pro-Kremlin information networks.

The Russian social media outlet Voice of Europe (@V_of_Europe) has run such headlines as “The EU refuses to intervene in Catalonia even as Spain violates basic human rights,” calling Catalonia’s referendum “a time bomb that threatens to destroy the EU.”

The internationally broadcast Russian Television, or RT, alleged on September 20 that a “state of siege” has been imposed on Catalonia and dubbed cruise liners chartered to house additional police agents being deployed to the Catalonia as “Ships of Repression.”

The Russian digital newspaper Vzglyad borrowed a page from the Western media’s treatment of uprisings against Soviet domination in Eastern Europe during the Cold War, with the September 20 headline “Spain brutally suppresses the Catalan Spring.”

Some editorials and Kremlin-sponsored academics took note of how the U.S. and EU neglected to recognize a Russian-sponsored Crimean referendum approving reunification with Russia and compared that with their current indifference toward the Catalan vote.

Catalan secessionist politician Enric Folch, who is international secretary of the Catalan Solidarity Party for Independence, has said on Russian media that a Catalan state would support Moscow in world forums and recognize the independence of territories of Abkhasia and South Ossetia, which separated from Georgia with Russian support.

Folch was a star participant at a Kremlin-sponsored conference of independence movements in Moscow last year.

David Alendete, an investigative reporter with the newspaper El Pais, said the conference was organized by a Russian lawyer who is defending Russian computer hackers arrested in Spain and is wanted by the FBI in connection with the hacking of Hillary Clinton’s 2016 presidential election campaign in the U.S.

IMF Chief tells Central Bankers to not Dismiss Bitcoin

Christine Lagarde, the head of the International Monetary Fund, has a message for the world’s central bankers: Don’t be Luddites.

Addressing a conference in London on Friday, Lagarde said virtual currencies, which are created and exchanged without the involvement of banks or government, could in time be embraced by countries with unstable currencies or weak domestic institutions.

“In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money,” she said. “The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve.”

The most high-profile of these digital currencies is bitcoin, which like others can be converted to cash when deposited into accounts at prices set in online trading. Its price has been volatile, soaring over recent years but falling sharply earlier this month on reports that China will order all bitcoin exchanges to close and one of the world’s most high-profile investment bankers said bitcoin was a fraud.

For now, Lagarde said, digital currencies are unlikely to replace traditional ones, as they are “too volatile, too risky, too energy intensive and because the underlying technologies are not yet scalable.”

High-profile hacks have also not helped, she noted. One notable failure was that of the Mt. Gox exchange in Japan in February 2014, in which about 850,000 bitcoins were lost, possibly to hackers. Following that, Japan enacted new laws to regulate bitcoins and other cryptocurrencies.

But in time, she argued, technological innovations could address some of the issues that have kept a lid on the appeal of digital currencies.

“Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays, so I think it may not be wise to dismiss virtual currencies,” Lagarde said.

Lagarde’s comments appear at odds with the views of JPMorgan Chase CEO Jamie Dimon, who this month described bitcoin as a fraud and said he’d fire any of his traders if they caught dealing in the digital currency.

In a speech laying out the potential changes wrought by financial innovations, Lagarde also said that over the next generation, “machines will almost certainly play a larger role” in helping policymakers, offering real-time forecasts, spotting bubbles, and uncovering complex financial linkages.

“As one of your fellow Londoners – Mary Poppins – might have said: bring along a pinch of imagination!”

Conservationists Work to Save World’s Rarest Cats

To the untrained eye, the Scottish wildcat looks quite similar to a normal domestic cat. But it is a unique species, and it could become extinct. As VOA’s Kevin Enochs reports, the greatest threat to these cats is other cats.

As Germany Vows to Speed Integration, Refugees Unfazed by Rise of Far Right

The influx of more than a million asylum-seekers into Germany in 2015 is widely seen as driving the upsurge of the anti-immigrant Alternative for Germany or AfD party, which gained 13 percent of the vote in Sunday’s election. The government hopes to stem that rise by integrating the refugees as quickly as possible. Henry Ridgwell visited Berlin and spoke to some of the newcomers about their experience settling in Germany and their feelings over the success of the AfD.

North Korean Workers Overseas Feeling Sanctions’ Squeeze

North Korean overseas workers are feeling the heat as countries are stepping up their efforts to implement U.N. sanctions against their motherland.

On Wednesday, the Polish foreign ministry told VOA’s Korea Service that Poland does not intend to issue new work permits to North Korean workers to comply with the two latest U.N. Security Council resolutions. These measures were passed in response to the Kim Jong Un regime’s long-range intercontinental ballistic missile launches and sixth nuclear test.

“The Ministry of the Family, Labour and Social Policy has sent out a communication to voivodship [provincial] offices asking them to withhold all decisions regarding applications for work permits concerning [North Korean] citizens,” the foreign ministry said in an email to VOA, “until the process of transposition and development of a common position by European Union member states regarding the scope and method of implementing the resolution is completed.”

Fewer North Koreans working in Poland

With not one work visa being issued to a North Korean national in 2016 and 2017, the number of North Koreans employed in Poland stood at about 400 as of January this year, a decline from 550 in July last year, according to the Polish government’s estimates. In 2014, the Polish consul in Pyongyang issued 147 work visas, and in 2015, 129 such visas were issued.

The Polish foreign ministry said Poland, which is one of the European Union countries that hires many North Korean laborers, does not have any systemic measures in place that would prevent citizens of other countries, including North Koreans, from taking up work in the country, imposing a work ban would represent “an unequivocal demonstration of discrimination on the grounds of nationality.”

“In this context, we welcomed Resolution 2371 of 5 August 2017 and 2375 of 11 September 2017, the first to refer to the employment of [North Korean] citizens abroad in so decisive terms,” the ministry said.

Since North Korea has long been accused of using money paid to its overseas workers to finance its weapons programs, the two latest U.N. resolutions for the first time included restrictive measures on North Korean laborers abroad, first banning the hiring of additional North Korean workers, then barring the renewal of their work contracts when they expire.

Residency permits not renewed

Similar action was taken by Kuwaiti authorities, who have stopped issuing entry visas of any kind to North Korean nationals and forbidding them from transferring their residency permits from one company to another, according to the country’s implementation report on U.N. Security Council resolution 2371 submitted to the council in late August.

“Expired residency permits are not renewed, and permit holders are requested to leave the country promptly once the permit has expired,” reads the report.

Also taking heed of the Security Council resolutions on North Korea are Senegal and Qatar. Senegal suspended the issuance of entry and short-stay visas to North Korean workers. Qatar discontinued issuing the approvals of employment requests and the renewal of residence of workers.

Jenny Lee contributed to this report.

Tree-trimming Company Hit With Record Fine for Hiring Undocumented Workers

The government has fined U.S. tree-trimming company a record $95 million for knowingly hiring undocumented immigrants.

U.S. prosecutors said the fine against Philadelphia-based Asplundh Tree Expert Co. was the largest criminal penalty ever imposed in an immigration case.

Prosecutors said company managers deliberately looked the other way while supervisors knowingly hired thousands of undocumented workers between 2010 and 2014.

The prosecutors said this gave Asplundh a large workforce ready to take on emergency weather-related jobs across the country, putting its competitors at an unfair disadvantage.

A federal investigation into Asplundh was opened in 2015 and the company said it had since taken a number of steps to end “the practices of the past.”

“We accept responsibility for the charges as outlined, and we apologize to our customers, associates and all other stakeholders,” company Chairman Scott Asplundh said.

Senegalese Music Start-ups Race to Be West Africa’s Spotify

Senegalese start-ups are testing a fledgling market for online music platforms in French-speaking West Africa, where interest in digital entertainment is growing but a lack of credit cards has prevented big players from making inroads.

Long celebrated in Europe for their contribution to “world” music – with Mali’s Salif Keita, Senegal’s Youssou N’Dour and Benin’s Angelique Kidjo household names in trendy bars – West African musicians have struggled to make money back home, where poverty is widespread and music piracy rampant.

Online music providers such as Apple’s download store iTunes and streaming service Spotify are either unavailable – no one can sign up for Spotify in Africa yet – or require a credit card or bank account, which most West Africans lack.

But smartphone use is surging and entrepreneurs say there is latent demand for platforms tailored to Francophone West Africa, whose Malian “desert blues,” Ivorian “zouglou” and Senegalese “mbalax” cross African borders but are only profitable in Europe, via download and streaming services.

“We started by saying, look, there is a void. Because digital distribution products are made in Europe or the U.S., for Europeans and Americans.” said Moustapha Diop, the founder and CEO of MusikBi, “The Music” in the local Wolof language, a download store launched in 2016.

MusikBi, like its rivals, is small and cash strapped, but with more than 10,000 users, Diop sees potential.

The company received a boost in May when Senegalese-American singer Akon bought 50 percent of it, which Diop says will allow the company to start a new marketing campaign.

MusikBi and rival JokkoText allow users to purchase songs by text message and pay with phone credit, mobile money or cash transfers. Both want to expand throughout West Africa.

Many of the new industry entrants like MusikBi and JokkoText are based in Dakar, which is an emerging tech start-up hub for Francophone West Africa, partly thanks to the fact it has enjoyed relative political and economic stability compared with most of its neighbors.

On the streaming front, Deedo, created by a Senegalese national in France and backed by French bank BPI, will launch in Senegal, Mali, Ivory Coast and France next month, and will offer similar payment options. Senegalese hip-hop group Daara J plans o start a streaming platform next year.

There is scant industry presence elsewhere in the region except in Anglophone Nigeria, Africa’s most populous nation.

Pirates to Payers

Every evening young people jog down Dakar’s streets with headphones in their ears. Most download music illegally online or buy pirated CDs and USB memory sticks in street markets.

Convincing them to pay for content is a challenge, but not an insurmountable one, analysts say.

“Experience shows that people are willing to pay for convenience,” said David Price, director of insight and analysis at London-based industry federation IFPI.

“If you give them something attractive and affordable, they stop pirating,” he said, adding that local platforms have gained followings in Latin America and India.

France’s Deezer has also targeted the region in partnership with mobile operator Tigo, but has not gained a large following. Deedo meanwhile plans to launch a version of its site in Pulaar, one of West Africa’s most widely spoken a languages, founder Awa Girard told Reuters.

Senegalese singer Sahad Sarr told Reuters he had sold some songs on MusikBi and was excited about Deedo, but added: “The culture here is not to buy music online. Change will be slow.”

Most of his listeners on Spotify and other platforms are Senegalese people living in Europe or North America, he said.

At Dakar’s main university, students showed Reuters the many websites they use to download music illegally.

Some said they would pay for a good service, but others were less convinced, like 22-year-old Macodou Loum. “Between two choices, free and not free, we will choose the free one,” he said.

Saudi Women Will Drive, But Not Necessarily Buy New Cars

What’s your dream car to drive? Saudi women are asking that question after the kingdom announced that females would be granted licenses and be allowed to drive for the first time.

An Arabic Twitter hashtag asking women what car they want to drive already had more than 22,000 responses on Thursday. Some users shared images of black matte luxury SUVs. Others teased with images of metallic candy pink-colored cars. A few shared images of cars encrusted with sparkly crystals.

Car makers see an opportunity to rev up sales in Saudi Arabia when the royal decree comes into effect next June. But any gains are likely to be gradual due to a mix of societal and economic factors. Women who need to get around already have cars driven by chauffeurs. And many women haven’t driven in years, meaning the next wave of buyers could be the young.

That didn’t keep Ford and Volkswagen from trying to make the most of the moment. They quickly released ads on Twitter congratulating Saudi women on the right to drive. Saudi Arabia had been the only country in the world to still bar women from getting behind the wheel.

American automaker Ford’s ad showed only the eyes of a woman in a rearview mirror with the words: “Welcome to the driver’s seat .” German automaker Volkwagen’s ad showed two hands on a steering wheel with intricate henna designs on the fingers with the words: “My turn.”

Checking that optimism will be the reality that many women will continue to need the approval of a man to buy a car or take on new responsibilities.

“The family has always operated on the basis of dependency so that’s a big core restructuring of the family unit,” said Madeha Aljroush, who took part in Saudi Arabia’s first campaign to push for the right to drive. In that 1990 protest, 47 women were arrested. They faced stigmatization, lost their jobs and were barred from traveling abroad for a year.

“I had no idea it was going to take like 27 years, but anyway, we need to celebrate,” Aljroush said.

That won’t entail buying a new car, though. She hasn’t driven in nearly 30 years, she says, and her two daughters still need to learn how to operate a vehicle.

Allowing women the right to drive is seen as a major milestone for women’s rights in Saudi Arabia, but also for the Saudi economy. The kingdom’s young and powerful crown prince is behind a wide-reaching plan to transform the country and wean it off its reliance on government spending from oil exports.

Allowing women to drive helps to ensure stronger female participation in the workforce and boosts household incomes. It can also save women the money they now spend on drivers and transportation.

The Saudi government says there are 1.37 million drivers in the country, with the majority from South Asian countries working as drivers for Saudi women. The drivers earn an average monthly salary of around $400, but the costs of having a driver are much higher. Families must also pay for their entry permits, residence permits, accommodation, flight tickets and recruitment.

Rebecca Lindland, an analyst for Cox Automotive in the U.S. who has studied the Saudi Arabian market, said families with the means likely already have enough vehicles because women are already being transported in them, with male drivers. Those women could simply start driving the vehicles they already own.

There are also many Saudi families who do not have the money to buy new cars.

“The idea that 15 million women are going to go out and buy a car is not realistic,” Lindland said. “We may not have incremental sales because those that are already with more freedoms already probably have access to a car.”

The industry consulting firm LMC Automotive sees only a small boost in sales next year due to the royal decree, coinciding with a small recovery in sales from a slump.

The Saudi market peaked at 685,000 new vehicles sold in 2015, falling to under 600,000 in 2016, and is forecast to finish this year at 530,000. LMC had predicted a modest recovery next year based on an improved economy and sees a little added boost from women drivers.

Although Saudi Arabia has a reputation for liking luxury goods, mainstream brands dominate the car market with a 93 percent share of sales, according to LMC. Hyundai was the top passenger car brand with a 28.6 percent share of the market, followed closely by Toyota at 28.4 percent and Kia at 8.3 percent, the company said.

There are also societal factors to consider. Even if the law allows women to drive, many will still need their fathers or husbands to buy a car.

A male guardianship system in Saudi Arabia gives men final say over women’s lives, from their ability to travel abroad to marriage. Women often are asked to have the written permission of man to rent an apartment, buy a car or open a bank account.

“If you don’t have credit, if you don’t have money, your male guardian will be the one to decide whether you buy a car or not,” Lindland said.

While car sales might rise in the long-term, ride hailing apps like Uber and local rival Careem could see revenues decline. Female passengers make up the majority of the country’s ride-hailing customers.

To celebrate Tuesday’s decree, several Saudi women posted images on social media deleting their ride sharing apps.

The two companies, however, have seen strong investments from Saudi Arabia. Last year, the Saudi government’s sovereign wealth fund invested $3.5 billion in Uber. This year, an investment firm chaired by billionaire Saudi Prince Alwaleed bin Talal invested $62 million in Dubai-based Careem.

Aljroush says the right to drive will not immediately change women’s lives, but it will change family dynamics at home and will change the economy.

“Men used to leave work to pick up the kids. The whole country was paralyzed,” she said. “It’s a restructuring of how we think, how we operate, how we move.”

Greece: 25 Migrants Rescued, 1 Child Dies in Boat Accident

More than 20 migrants or refugees were rescued and one child died Thursday on a Greek island after the boat they set sail in overnight from the nearby Turkish coast either capsized or sank, Greek authorities said.

A vessel from the European border agency Frontex patrolling the area initially picked up six people – one man, two women and three children – it spotted in the sea off the small southeastern island of Kastellorizo in the early hours of Thursday, the Greek coast guard said. The six were transported to land immediately because one of the children, a 9-year-old girl, needed medical attention, but she later died, the coast guard said. Another four of the survivors were hospitalized.

Greek authorities launched a search operation with patrol boats and a helicopter, and crews later found and rescued another 20 people – five children, two women and 13 men – who had managed to swim to a rocky coast on the island. One of the group was also hospitalized.

It was unclear what type of vessel the migrants had used and whether it sank or capsized. The coast guard said all on board had been accounted for and there were no missing people reported. Those injured were being transported to a hospital on the island of Rhodes.

Greece was the preferred route for refugees and migrants fleeing war and poverty in their homelands to seek access into the European Union until last year, when an EU-Turkey deal drastically reduced the number of people heading to Greek islands from the Turkish coast.

Despite the deal and the overcrowded conditions in the camps on the Greek islands, hundreds still make the journey every week, using often unseaworthy and overcrowded inflatable dinghies or small wooden boats.

Moldovan Official Says Joining EU is Key Priority

A top Moldovan official says its parliament plans to amend the constitution to explicitly state that joining the European Union is a key goal for the ex-Soviet republic.

 

Moldova, located between Ukraine and Romania, has been divided between moving closer to the EU and returning to the Russian orbit.

 

Parliament speaker Andrian Candu acknowledged that Moldovans lost confidence in pro-European politicians after some of them were accused of involvement in the looting of $1 billion from Moldovan banks in 2014. But he says trust is slowly being restored with a series of anti-corruption measures.

 

The ruling Democratic Party says changing the constitution will clarify Moldova’s future regardless of election results and other developments.

 

Many Moldovans favor closer relations with Russia. Pro-Russian President Igor Dodon was elected last year.

 

 

 

Catalan Official Calls for EU Support Ahead of Referendum

Catalonia’s foreign affairs chief has appealed for support from the European Union before a disputed referendum calling for independence from Spain.

 

Raul Romeva, speaking to journalists Thursday in Brussels, said that EU institutions need to “understand that this is a big issue.” Romeva spoke a day after Catalan regional president Carles Puigdemont accused the EU, in an interview with The Associated Press , of “turning its back” on Catalonia in its conflict with Spain’s central government.

 

Romeva accused the Spanish government of a “brutal crackdown” on Catalan officials to try to prevent Sunday’s referendum, which Spain considers to be illegal, and that it’s “generated an unprecedented level of shock.”

 

He said that he doesn’t expect violence, because “it’s not in the Catalan DNA to use violence to solve political problems.”

 

 

Equifax Apologizes as U.S. Watchdog Calls for More Oversight

Equifax Inc promised to make it easier for consumers to control access to their credit records in the wake of the company’s massive breach after the top U.S. consumer financial watchdog called on the industry to introduce such a system.

Equifax’s interim chief executive officer, Paulino do Rego Barros Jr., vowed to introduce a free service by Jan. 31 that will let consumers control access to their own credit records.

Barros, who was named interim CEO on Tuesday as Richard Smith stepped down from the post amid mounting criticism over the handling of the cyber attack, also apologized for providing inadequate support to consumers seeking information after the breach was disclosed on Sept. 7. He promised to add call-center representatives and bolster a breach-response website.

“I have heard the frustration and fear. I know we have to do a better job of helping you,” Barros said in a statement published in The Wall Street Journal.

Equifax announced the free credit freeze service after the Consumer Financial Protection Bureau’s (CFPB) director, Richard Cordray, told CNBC earlier in the day that the agency would beef up oversight of Equifax and its rivals.

“The old days of just doing what they want and being subject to lawsuits now and then are over,” Cordray said.

He also called for implementing a scheme of preventive credit monitoring.

“They are going to have to accept that. They are going to have to welcome it. They are going to have to be very forthcoming,” Cordray said.

The Equifax hack compromised sensitive data of up to 143 million Americans and prompted investigations by lawmakers and regulators, including the New York Department of Financial Services (DFS), which issued a subpoena to Equifax demanding more information about the breach.

Federal laws give the CFPB the power to supervise and examine large credit-reporting firms to ensure the quality of information they provide. In January, the CFPB fined TransUnion and Equifax $5.5 million in total for deceiving customers about the usefulness and cost of their credit scores.

Cordray called for expanded powers to cover data security to prevent breaches and suggested placing monitors inside credit reporting firms, borrowing a tactic from the regulatory regime for banks.

The CFPB is working with the Federal Trade Commission and New York’s DFS on a new regulatory framework, Cordray said. He also called for Congress to tighten oversight of the industry.

TransUnion said in a statement that it had “long been subject to regulatory oversight from state and federal regulators including the CFPB.”

Experian did not respond to requests for comment.

Carmakers Welcome Arrival of Saudi Women Behind the Wheel

Saudi Arabia’s decision to lift its ban on women driving cars may help to restore sales growth in an auto market dented by the economic fallout from weak oil prices, handing an opportunity to importers of luxury cars and sport utility vehicles.

Carmakers joined governments in welcoming the order by Saudi Arabia’s King Salman that new rules allowing women to drive be drawn up within 30 days and implemented by June 2018, removing a stain on the country’s international image.

“Congratulations to all Saudi women who will now be able to drive,” Nissan said in a Twitter post depicting a license plate bearing the registration “2018 GRL.” BMW, whose X5 SUV is the group’s Middle East top-seller, also saluted the move.

 

WATCH: Activists: Driving Augurs Further Expansion of Saudi Women’s Rights

Midrange brands dominate the Saudi market, with Toyota, Hyundai-Kia and Nissan together commanding a 71 percent share of sales.

Market had shrunk

That market has shrunk by about a quarter from a peak of 858,000 light vehicles in 2015 to an expected 644,000 this year, reflecting the broader economic slowdown. But the rule change adds almost 9 million potential drivers, including 2.7 million resident non-Saudi women, Merrill Lynch has calculated.

“We expect demand to rise again on news that women will be allowed to drive,” said a senior executive at Jeddah-based auto distributor Naghi Motors, whose brand portfolio includes BMW, Mini, Hyundai, Rolls Royce and Jaguar Land Rover models.

The arrival of women drivers could lift Saudi car sales by 15-20 percent annually, leading forecaster LMC Automotive predicts, as the kingdom’s “car density” of 220 vehicles per 1,000 adults rises to about 300 in 2025, closing the gap with the neighboring United Arab Emirates.

A middle- to upper-class Saudi family typically has two vehicles, one driven by the man of the house and a second car in which a full-time chauffeur transports his wife and children.

The rule change could spell bad news for some of the 1.3 million men employed as chauffeurs in the kingdom, including a large share of its migrant workforce, while boosting upscale car sales as households upgrade for their new drivers.

Entire market likely to benefit

“The move to allow women to drive is set to benefit the entire market,” LMC analyst David Oakley said. “But we might expect to see a disproportionately positive impact on super-premium brands.”

Luxury brands including Lamborghini and Bentley are about to launch SUVs, a vehicle category that has proved popular among women and accounts for more than 1 in 5 cars sold in Saudi Arabia.

Welcoming the announcement, British-based Aston Martin said it was well timed for the arrival of the James Bond-associated sports car maker’s DBX model, due in 2019.

“The SUV crossover boom across all segments has been powered by women,” spokesman Simon Sproule said.

Trump: Foreign Country Plans to Build, Expand 5 US Auto Sector Plants

President Donald Trump said on Wednesday a foreign leader told him at the United Nations last week that the country would soon announce plans to build or expand five automobile industry factories in the United States.

“I just left the United Nations last week and I was told by one of the most powerful leaders of the world that they are going to be announcing in the not too distant future five major factories in the United States, between increasing and new, five,” Trump said in a speech on tax reform in Indianapolis.

He added the factories were in the automotive industry.

He did not name the country. The White House did not immediately respond to a request for comment.

Automakers in Japan and Germany have both announced investments in the United States this year, with companies coming under pressure from Trump’s bid to curb imports and hire more workers to build cars and trucks in the country.

Investments to expand U.S. vehicle production capacity also reflect intensified competition for market share in the world’s most profitable vehicle market. In August, Toyota Motor Corp said it would build a $1.6 billion U.S. assembly plant with Mazda Motor Corp.

Toyota also said this week it was investing nearly $375 million in five U.S. manufacturing plants to support U.S. production of hybrid powertrains.

Last week, German automaker Daimler AG said it would spend $1 billion to expand its Mercedes Benz operations near Tuscaloosa, Alabama, to produce batteries and electric sport utility vehicles and create more than 600 jobs.

Rival German luxury automaker BMW AG said in June it would expand its U.S. factory in South Carolina, adding 1,000 jobs. And last month, Volkswagen AG’s brand president Herbert Diess said the company expected to bring electric SUV production to the United States and could add production at its Tennessee plant.

Putin Heads to Turkey as Ties Rapidly Thaw

In a sign of rapidly deepening ties, Turkish President Recep Tayyip Erdogan will welcome his Russian counterpart, Vladimir Putin, to the presidential palace in Ankara Thursday for talks on Syria and a growing range of other issues that are prompting the two to set aside their differences.

A packed agenda is testament to an improved and growing relationship between the two countries. “Talks will focus on the Turkish decision to buy a Russian made S400 anti-missile system, but it’s not limited to that; the future of Syria will be discussed,” said Sinan Ulgen, an analyst at Carnegie Europe in Brussels. “The consequences of the Kurdish regional government independence referendum will be discussed. There are also large projects, one being Russia’s building of Akkuyu nuclear power plants in Turkey,” Ulgen said.   

Turkey last month announced the purchase of the S400 system, raising concerns among the country’s NATO partners. Adding to those concerns is the speed of the courtship. Bilateral relations were in a deep freeze following Turkey’s downing of a Russian bomber that was operating from a Syrian airbase in 2015.

Signals to NATO and Washington

Rapprochement efforts with Moscow coincided with Ankara’s growing disenchantment with some of its Western allies, especially Washington. “Erdogan will want to use Thursday’s meeting (with Putin) to demonstrate, to its partners in the West, that Turkey has the option of becoming more convergent with Russia if the relationship with the West continues to be under duress,” Ulgen said.

Washington’s support of the Syrian Kurdish militia YPG in its fight against Islamic State militants remains a major point of tension with Ankara. The Turkish government considers the Kurdish militia terrorists who are linked to the Kurdistan Workers’ Party, or PKK, a separatist group that has been waging a decades-long war in southeastern Turkey.

The Syrian civil war will be the focus of Thursday’s talks between Putin and Erdogan. While Ankara and Moscow are backing rival sides in the conflict, the two sides are increasingly cooperating. Erdogan and Putin are expected to discuss the enforcement of last month’s three-way deal with Iran to introduce a de-escalation zone in the Syrian Idlib region, the last major center of opposition.

A pragmatic approach

What matters for Turkey is avoiding what Ulgen said could be a nightmare scenario in the region.

“The nightmare scenario is (if) Russia-backed regime forces would attack Idlib. Turkish forces would be faced with a quandary: some of the forces that Turkey backed in the past have now found refuge in Idlib; either Turkey would have to move into Idlib to protect them or open its border to save some of these people,” Ulgen said. “At the same time, Ankara knows full well that most of these people are affiliated with groups of extreme Islam, radical Islam, so Ankara doesn’t want to open its border to these people,”  he said.

Many observers see Moscow as having the upper hand in its relations with Ankara, something that will be put to use as Russia seeks to protect significant commercial interests in the region. They say Putin will want to use his leverage to defuse growing tensions following the Iraqi Kurds’ referendum vote in favor of independence this week. Erdogan has condemned the poll and warned that Turkey may close an oil pipeline that carries Iraqi Kurdish oil to world markets via the Turkish Mediterranean port of Ceyhan.

“Russia has become the No. 1 partner of Iraqi Kurdistan,” said Aydin Selcen, a former senior Turkish diplomat, pointing to lucrative deals between Iraqi Kurds and the Russian state-owned oil firm Rosneft. “Rosneft boss, Mr. Igor Sechin, is one of the closest allies to Putin and the (Iraqi Kurds).”

Analysts said Thursday’s meeting, and the images of two leaders getting along, suit the current agendas of both men. “This is a pragmatic and transactional relationship which we see,” Ulgen said, “but with a political underpinning, where both leaders Putin and Erdogan are almost instrumentalizing this relationship, to demonstrate and to make a point to the West.”

Irma’s Destruction of Trailers Challenges Keys’ Lifestyle

Architect Kobi Karp has a vision for affordable housing in the Florida Keys: residences set at coconut-tree height to keep them dry, atop concrete columns holding them in place.

 

Key West clients sought out his designs before Hurricane Irma struck the island chain this month, and he thinks the two projects will continue despite Irma’s damage and debris. “It’s a more cost-efficient way of life,” the Miami-based architect said.

 

Such modern, planned development hasn’t always appealed to the independent spirits living in the Keys — but Irma may force the laid-back landscape to change.

 

Mobile homes and recreational vehicles didn’t survive the storm’s 130 mph winds and storm surge. The losses hit people crucial to Keys tourism: service industry and blue collar workers priced out of expensive Key West homes or newer structures meeting Florida’s stringent building codes.

Local officials are racing to find those workers housing to keep them in the Keys but still free up hotel rooms by Oct. 20, the opening day of the decadent Fantasy Fest and one of the biggest events on the Key West tourism calendar.

 

The housing crunch affects all sectors of the community: About 50 city employees may need to relocate, Key West city spokeswoman Alyson Crean said. Keys firefighters who lost everything have moved into fire stations or the homes of friends and relatives. On Duval Street, bar and tour company owners said some shell-shocked employees just quit because of the damage.

 

“When housing is eliminated, as it was in this storm, there’s literally no place for these people to move to. There’s no suburbs, there’s no driving for an hour and a half to find someplace to live. That’s just not possible here,” said Ed Swift, president of Key West-based Historic Tours of America, where at least a handful of employees have decided not to rebuild their lives here.

The Keys don’t function like other places: There’s only one narrow road in and out, and the isolation fosters a small-town, mom-and-pop atmosphere that has persevered amid booming numbers of tourists seeking Mardi Gras-style revelry and luxury accommodations.

 

As Key West rents rose over the last 20 years to $2,000 a month or more for two-bedroom units, Swift and other business owners started building housing, including dormitory-style accommodations, to keep local employees. Low-cost trailers and RVs helped fill housing gaps, but there’s already talk about replacing them altogether.

 

That worries people like U.S. Sen. Marco Rubio, R-Fla., who sounded wistful on the Senate floor last week about a paradise potentially lost.

“This storm threatens to fundamentally alter the character of Monroe County if we do not help the Florida Keys, because those trailer parks are on valuable land, and the owners of that land are going to be tempted to build on them — not mobile homes again, but build on them structures designed for visitors or people that can pay more money,” Rubio said. “That means you’re going to lose your housing stock, but it ultimately means you’re going to lose the character of the place.”

 

Irma destroyed or severely damaged up to 15,000 residential units, including vacation homes  amounting to more than a quarter of the 55,000 total homes in the Keys, according to Monroe County estimates.

 

That also includes nearly all the 7,500 mobile homes outside Key West, said Christine Hurley, assistant county administrator.

 

The county has asked the Federal Emergency Management Agency for 7,500 temporary mobile homes, as well as at least 1,700 travel trailers to park outside individual homes being repaired or rebuilt. It could be months before those units reach everyone who needs them, because of low inventory after Hurricane Harvey in Texas and other disasters, county and FEMA officials say.

 

About two dozen families have been approved so far for temporary trailers from vendors, FEMA Federal Coordinating Officer Willie Nunn said in a county statement released Monday.

 

Local officials also have asked FEMA to allow vacation homes typically listed on home-sharing websites to be used as temporary housing, Hurley said. Federal officials also are exploring ways to repair or improve existing multi-family homes for temporary housing.

 

The county also is asking mobile home park owners to allow FEMA to set up temporary housing on their properties, once cleared of debris and reconnected to power and water lines. Those mobiles homes would eventually need permanent replacements. It would be safer to build houses or apartment buildings, but that would change the lifestyle that appeals to many Keys residents, Hurley said.

 

Nine of Hurley’s employees were made homeless by Irma, but even those who faced significant financial challenges before the hurricane are making their way home, she said.

 

“I haven’t heard yet of people that don’t want to come back,” she said.

 

At Sunshine Key RV Resort and Marina on Big Pine Key, Richard Lessig said he wouldn’t mind new neighbors, even in government-issued trailers. He currently doesn’t have any, not since Irma flipped or crushed all the other trailers in the park.

 

Lessig’s own trailer home isn’t quite level, its air conditioning runs off a rumbling generator, and there was still no running water last week.

 

He’s gotten by in the Keys for nine months each year with his benefits and whatever money he makes in seasonal jobs as a boat captain and a magician for children’s birthday parties. He applied for disaster aid, wondering if he would have to spend more time living with his sister in New Jersey than in the Keys. He worried some friends won’t return for the potluck lunches and happy hours that made the park a vibrant community.

 

“Hopefully most of them will come back, but I’m sure there’s some that won’t,” Lessig said. “I figured, worst case, I’d have to borrow money and buy another trailer, because this is where I want to be.”

 

 

Putin: Russia Will Destroy Last of Its Chemical Weapons Today

Russian President Vladimir Putin announced Wednesday that Russia would destroy all its chemical weapons on this day, hailing the move as a “historic event.”

“Today the last chemical ammunition from Russia’s chemical weapon stockpile will be destroyed,” Putin said in a televised address. “This is a huge step toward making the modern world more balanced and safe.”

Noting that Moscow managed to destroy the ammunition three years ahead of schedule, Putin went on to criticize Washington for not following suit.

The U.S. “unfortunately is not carrying out its obligations when it comes to the timeframe of destroying chemical weapons — they pushed back the liquidation timeframe already three times,” Russian news agencies quoted Putin as saying.

Putin said the United States cites a lack of financial resources for pushing back its timeframe.

Russia Jails Crimean Dissident for Speaking out Against Moscow’s Rule

A court on Wednesday found a Crimean dissident opposed to Russia’s annexation of Ukraine’s Crimea guilty of separatism and sentenced him to two years in a prison colony, a punishment supporters said amounted to a death penalty for such an ill man.

Ilmi Umerov was deputy head of the Crimean Tatars’ semi-official Mejlis legislature before it was suspended by Moscow after it took control of the peninsula in 2014, a move condemned by the West and Ukraine.

State prosecutors had accused the 60-year-old of making statements that undermined Russia’s territorial integrity by calling in an interview for an end to Russian control of Crimea.

Umerov, who suffers from Parkinson’s disease and attacks of high blood pressure, said he did oppose Russia’s annexation but that the interview which prosecutors objected to had been badly translated and his words distorted.

His lawyer, Mark Feygin, said on social media that he would appeal Wednesday’s verdict which was delivered by a court in Simferopol, the Crimean capital.

Feygin said he hoped Western countries would put pressure on Russia to try to quash the verdict. “His dispatch to a prison colony would mean his death,” he said of his client.

The Tatars, a mainly Muslim community that makes up about 15 percent of Crimea’s population, have largely opposed Russian rule in the peninsula and say the 2014 annexation was illegal, a view supported by the West.

Moscow says the overwhelming majority of Crimeans voted to join Russia in a proper and fair referendum.

Feygin, Umerov’s lawyer, posted a video on social media in which his client said he still thought Crimea should be returned to Ukraine.

Ahtem Chiygoz, another Crimean Tatar leader, was found guilty of stirring up anti-Russian protests earlier this month and jailed for eight years, a move Ukraine’s president called an act of Russian repression.

A U.N. human rights report said on Monday that Russia had committed grave human rights violations in Crimea, including its imposition of citizenship and by deporting prisoners. Moscow said it deemed those allegations “groundless”.

Bombardier Tariff by US Is ‘Attack’ on Canada, Quebec Premier Says

The 220 percent tariff imposed by the United States on Bombardier Inc’s CSeries jet is an “attack” on Quebec and Canada, the province’s Premier Philippe Couillard said on Wednesday.

“Quebec has been attacked. And Quebec will resist. And Quebec will unite. All together, we will protect our workers. All together, we will be proud of our engineering,” he told reporters at a news conference.

The government of Quebec has taken a $1 billion stake in Bombardier’s CSeries jet. But Couillard said Wednesday the company had received “not a cent” in government subsidies.

The U.S. Commerce Department on Tuesday slapped preliminary anti-subsidy duties on Bombardier’s CSeries jets after rival Boeing Co accused Canada of unfairly subsidizing the aircraft, a move likely to strain trade relations between the neighbors.

US Durable Goods Orders up 1.7 Percent in August

Orders for long-lasting manufactured goods rose a modest 1.7 percent in August, reflecting a rebound in the volatile aircraft sector. A gauge of business investment was up for a second month, providing hope that a revival in manufacturing is gaining strength.

 

Last month’s advance in orders for durable goods followed a 6.8 percent plunge in July, the Labor Department reported Wednesday. Both months were heavily influenced by swings in orders for commercial aircraft, which surged 44.8 percent in August after having plunged 71.1 percent in July.

 

A closely watched category that serves as a proxy for business investment posted a 0.9 percent gain in August after a 1.1 percent increase in July. Economists believe that U.S. factory output should continue rising in coming months, reflecting a rebound in the global economy.

 

Manufacturing has been improving since the middle of 2016, following a two-year slump caused by cutbacks in the energy industry and a strong dollar that made U.S. goods costlier overseas. Prospects are brighter now with the dollar weakening in value this year, which makes U.S. exports more competitive on overseas markets, and a rebound in energy drilling.

 

The overall economy, as measured by the gross domestic product, expanded at a solid 3 percent rate in the April-June quarter after a tepid 1.2 percent gain in the first three months of the year. Analysts believe activity in the current July-September quarter will likely slow a bit, in part because of the devastation caused by hurricanes Harvey and Irma.

 

For August, orders excluding transportation were up 0.2 percent after a stronger 0.8 percent rise in July.

 

Demand for machinery rose 0.3 percent while orders for computers and related products fell 2.3 percent. Orders for autos and auto parts rose 1.5 percent after a 2.1 percent drop in July.

 

 

US Fed Chief Backs Gradual Rise in Rates

Despite concerns about low inflation in the United States, the head of the U.S. central bank says raising interest rates gradually would be the most appropriate policy stance for the Federal Reserve.

“It would be imprudent to keep monetary policy on hold until inflation is back to two percent,” Fed Chair Janet Yellen said Tuesday, while speaking to the National Association for Business Economists (NABE) in Cleveland, Ohio.

Inflation, a sustained increase in the price of goods and services, has remained consistently below the Fed’s target rate of 2 percent. But even with uncertainty about the possible reasons for the low rate of inflation — from misjudging the strength of the labor market to the impact of foreign competition on the global supply chain — Yellen said the Fed “should be wary of moving too gradually.”

The Federal Reserve has kept its benchmark lending rate near record lows since the 2008 financial crisis to stimulate the U.S. economy. It has raised its interest rate three times since last December. The federal funds rate, the interest rate the central bank charges banks on overnight loans, currently sits in a range between one and one-and-one-quarter percent.

Ellen Zentner, chief economist at Morgan Stanley, says her biggest takeaway from the Cleveland speech was Yellen’s confidence that “a strong U.S. labor market would ultimately drive inflation closer to the Fed’s two percent goal over the next few years.”

Equity markets, which have benefited from low borrowing costs, anticipate a fourth rate hike in December, and possibly three more next year. Starting next month, the Fed says it will begin the process of “unwinding,” or selling off, the massive holdings of bonds and securities it has acquired since 2008.

But Yellen’s longer-term goals may be subject to change. Her four-year term as the nation’s top banker ends in February. President Donald Trump has not said whether he plans to re-appoint Yellen or overhaul the central bank’s seven-member board of governors.

Zentner believes there is a 60 percent chance Yellen will be named to serve a second term. “The longer the president waits, the greater the probability that Yellen will be re-appointed,” the bank economist said.  

Yellen spoke in Cleveland as the Conference Board released a survey that showed consumer confidence declined in September. The global business research group reported consumers’ views about the strength of the U.S. labor market have weakened and home sales have dropped to an eight-month low due to Hurricanes Harvey and Irma in the states of Texas and Florida. 

Mexico Tallying Economic Cost of Big Earthquake

Mexican officials are tallying up the economic losses of the magnitude 7.1 earthquake that caused widespread damage in the capital, as the number of buildings that may need to be pulled down or need major repairs rose to 500.

 

The death toll in the quake rose to 333, with 194 of those deaths in Mexico City. Authorities pledged a return to normality, but many streets in the capital were still blocked by construction equipment and recovery teams looking to extract the last remaining bodies from the rubble. Mayor Miguel Angel Mancera said 40 to 50 people are still considered missing.

 

The city government announced a plan of reconstruction loans and aid for apartment dwellers who lost their homes or who may lose them as teetering buildings are pulled down.

 

But for city businesses like the downtown restaurant Guapa Papa, the result is already all too clear.

 

Sitting in the entrance of his restaurant Monday, surrounded by caution tape, Antonio Luna said: “This is a bust. It’s already closed due to structural damage to the building.”

 

He had to let go the three dozen employees at the 1950s-themed restaurant and is just trying to salvage whatever furniture and equipment wasn’t damaged.

 

“In the end the company let everyone go because it couldn’t continue having expenses,” Luna said.

 

Mancera said that the city, in alliance with private developers, would handle repairs on buildings that needed touch-ups or minor structural work to be habitable. He offered low-interest loans to apartment owners whose buildings would have to be demolished and rebuilt.

However, it is unclear to what extent the city can force owners to demolish buildings. Some that were damaged in the 1985 are still standing, in part because court challenges can stretch on for years.

 

Moody’s Investors Service said in a report Monday that the Sept. 19 earthquake that caused damage and deaths in the capital and nearby states “has the potential to be one of Mexico’s costliest natural catastrophes.”

 

Alfredo Coutino, Latin America director for Moody’s Analytics, said they were still collecting data on losses, but a preliminary estimate was that the earthquake could knock 0.1 to 0.3 percentage point off growth in Mexico’s gross domestic product in the third and fourth quarters.

 

For the full year, the impact on gross domestic product should be about 0.1 percentage point. “The impact on the year’s growth will be small, particularly considering that the reconstruction work will compensate for some of the total loss in activity during the fourth quarter,” Coutino said.

 

Money is expected to pour into the economy as Mexico City and the federal government tap their disaster funds. As of June, the city’s disaster fund stood at 9.4 billion pesos (more than $500 million), making it slightly larger than the national fund, according to a Moody’s Investors Services report.

 

Of course, the national fund also has to deal with recovery from the even stronger Sept. 7 quake that has been blamed for nearly 100 deaths, mostly in the southern states of Oaxaca and Chiapas.

 

There will be months of work ahead from demolition to repairs and reconstruction.

 

Mexico City Mayor Miguel Angel Mancera said that 500 “red level” buildings would either have to be demolished or receive major structural reinforcement. An additional 1,300 are reparable, and about 10,000 buildings inspected so far were found to be habitable.

At least 38 buildings, including apartments and office buildings, collapsed during the earthquake.

 

Mexico’s education ministry also has 1.8 million pesos (about $100,000) to spend on school repairs. In Mexico City alone, only 676 of the city’s 9,000 schools had been inspected and cleared to resume classes, Education Secretary Aurelio Nuno said Monday.

 

AIR Worldwide, a Boston-based catastrophe modeling consultant, provided a wide range for industry-insured losses, but noted they would be only a small part of the total economic losses. It put the insured losses at between 13 billion pesos ($725 million) and 36.7 billion pesos ($2 billion).

 

A graceful traffic roundabout encircled by restaurants, cafes and shops is now a sprawling expanse of medical tents, piles of food and other relief supplies, and stacks of building materials. While relief work went on outside Monday, men were busily wrapping furniture in foam and plastic inside the Antiguo Arte Europeo store.

 

Stone panels on the building’s facade appeared cracked or were altogether missing. Saleswoman Luisa Zuniga said the owners were waiting for civil defense inspectors to certify there was no structural damage to the building before reopening to the public.

 

Meanwhile, they were moving furniture that could still be sold to their other branches.

 

“Then we’ll see how long it takes to fix everything,” she said. “It is important to get back to work.”

 

Edgar Novoa, a fitness trainer, went back to his job Monday after working as a volunteer following the earthquake. Around midday, he stopped his bicycle at a cleared foundation where a building of several stories had stood near his home.

 

He knelt and prayed while others left flowers and candles at the site.

 

The government has said that nine foreigners, including five from Taiwan, died in the quake. One of the buildings that collapsed in the quake housed a business listed as Asia Jenny Importaciones, SA de CV. A South Korean man was also confirmed dead.

 

A Panamanian woman died, as did one man from Spain and one from Argentina.

Trump Endorses Spanish Unity Days Before Scheduled Catalan Independence Vote

U.S. President Donald Trump has come out unequivocally in favor of Spanish unity, just days before voters in the Catalan region are slated to vote on independence from Madrid.

At a joint news conference Tuesday with Spanish Prime Minister Mariano Rajoy in a sweltering White House Rose Garden, Trump said he would bet most Catalonians want unity.

“I’m just for a united Spain,” Trump said. “I really think the people of Catalonia would stay with Spain. I think it would be foolish not to.”

Trump’s comments appear to go against official U.S. government policy. State Department spokeswoman Heather Nauert said this month the United States would not take a position on the Catalan vote.

The Catalan government is pushing ahead with preparations for Sunday’s vote, even after the government declared the balloting illegal and Spain’s Constitutional Court suspended the referendum law.

The Spanish leader, speaking after Trump, cautioned Catalan separatists not to push ahead with their independence plans.

“The decision to unilaterally declare independence is not a decision I would make,” Rajoy told reporters. “It’s a decision which will have to be made or not by the Catalan government. I think it would be very wrong.”

The prime minister said holding a referendum next Sunday would be impossible.

“There isn’t an electoral committee, there isn’t a team at the Catalan government organizing the referendum, there aren’t ballots, there aren’t people at the voting stations — so it’s just crazy,” he said.

Rajoy said under those circumstances, the result would not be valid, and would only be a distraction.

“The only thing it’s doing is generating division, tensions, and it’s not contributing in any way to the citizens’ situation,” he said.

Trump said he could not predict whether the referendum would be held, even as he follows developments in the independence-minded province.

“I’ve been watching that unfold. But it’s actually been unfolding for centuries and I think that nobody knows if they’re going to have a vote,” he said.

“I think the president [Rajoy is considered president of the Spanish government] would say they’re not going to have a vote, but I think that the people would be very much opposed to that,” Trump told reporters. “I can say only speaking for myself, I would like to see Spain continue to be united.”

Catalonia divided

Opinion polls suggest that Catalonia’s population of more than 7 million is divided on the independence question. Catalan officials have said they would declare independence within days if voters approve the referendum.

At Tuesday’s news conference, Rajoy, whose country was victimized by an Islamic State-sponsored attack in August that killed 16 people in the Catalan capital, Barcelona, said he and Trump had spent a considerable amount of their meeting talking about terrorism.

“We’ve been hit by jihadi terrorist attacks on our soil,” he told reporters, noting that the two countries cooperate closely on anti-terrorism strategies. “We still need to do a lot in the area of intelligence, we need to improve coordination mechanisms in the area of cybersecurity or preventing recruitment and financing of terrorists.”

Rajoy also expressed support for Trump’s tough response to North Korea’s provocative nuclear missile tests, despite fears in some quarters that it could lead to war.

“No one wishes war anywhere in the world,” Rajoy said. “But it’s true that the recent events in North Korea, with implications in the neighboring countries, very important countries, it means that we all have to be forceful.

“Those of us who defend the values of democracy, freedom and human rights have to let North Korea know that it isn’t going anywhere in that direction,” the Spanish leader said.

Sponges, Urban Forests and Air Corridors: How Nature Can Cool Cities

As China battles the twin challenges of rapid city growth and extreme weather, it is adopting a new tactic: turning its cities into giant sponges.

Thirty pilot cities in the country are trying to trap and hold more water to deal with such problems as flooding, drought, extreme heat and pollution.

The effort, launched by Chinese President Xi Jinping, relies on a range of innovations, such as green roofs on buildings and more urban wetlands. It is already being hailed as a bold step to solve some of the environmental problems plaguing the world’s most populous country.

“It’s a timely reminder that dealing with urban climate challenges requires a holistic approach,” said Sunandan Tiwari, a sustainable urban development expert at ICLEI (Local Governments for Sustainability), a global network of 1,500 cities, towns and regions.

People and water

Like many other large urban areas, Chinese cities are grappling with both rapid urbanization — more than half of the country’s population lives in urban areas — and extreme weather, such as severe floods, water shortages and heat waves.

Both problems can leave more people at risk,but the sponge city effort, launched in 2015, aims to reduce the threats.

The pilot cities have been charged with finding ways to absorb, store, filter and purify rainwater, retain it within their boundaries, and release it for reuse when needed instead of channeling it away through sewers and tunnels.

The cities, including Beijing, Shenzhen and Shanghai, receive funds and practical help to redesign their urban areas in a water-sensitive way, with the aim of turning 80 percent of China’s urban areas into sponges by 2030.

Flood control and water conservation, among other issues, are at the heart of the ambitious push.

But sponge cities have another benefit that looks set to become a major plus as urban areas in China and around the world get hotter: They can reduce the impact of heat waves, which are more pronounced in built-up areas, where concrete and asphalt trap heat.

Trees and other plants absorb water and then release it through evaporation. That creates a cooling effect, in the same way that sweat evaporating from skin cools people.

“Cooling is largely seen as a co-benefit of sponge cities. But with record temperatures in China and many parts of the world, it is becoming a key element in planning for climate-resilient cities,” said Boping Chen, China director at the Hamburg-based World Future Council, a think tank.

Getting hotter

Shanghai, China’s most populous city with 24 million people, baked under a record high temperature of 40.9 degrees Celsius (105 degrees Fahrenheit) last July, even as southern China was hit by torrential rain and floods.

Efforts to build sponge cities aim to deal with both problems, and improve life for city residents.

“It’s not just about limiting the damage of flooding, it’s also about coping with rising temperatures, improving urban biodiversity, better public health and quality of life,” Tiwari, of ICLEI, told the Thomson Reuters Foundation.

Measures taken in sponge cities include covering buildings with green roofs and facades and creating urban wetlands and trenches to filter runoff water that can be used to replenish aquifers, irrigate gardens and urban farms, flush toilets and clean homes.

The government has allocated each pilot city between 400 million yuan and 600 million yuan ($60 million to $90 million) each year for three consecutive years, and cities are encouraged to raise matching funds through public-private partnerships and other financial ventures, according to a 2017 study in the journal Water.

Lingang, in Shanghai’s Pudong district, has invested 800 million yuan in a 79-square-kilometer (30-square-mile) area it hopes will become China’s largest sponge city — one that experts say could be a model for other cities lacking modern water infrastructure.

Lingang aims to cover rooftops with plants, create wetlands for rainwater storage, and create permeable pavements that store runoff water, allowing it to evaporate to moderate temperatures.

Shanghai also announced last year the construction of 400,000 square meters of rooftop gardens, alongside other measures to green the city.

“Many of the sponge cities have done really well, but it is a long-term task that needs to be done in a systematic way,” said the World Future Council’s Chen.

Forest cities

While China faces formidable financial and logistical challenges to creating sponge cities, Italian architect Stefano Boeri has plans to make “forest cities” in the country.

Boeri, who made headlines when he covered two residential tower blocks in Milan with 800 trees, 4,500 shrubs and 15,000 other plants, has won planning approval to build a forest city in Liuzhou in southern China.

Conceived as a green metropolis, the city will house 30,000 people, and all its buildings will be covered entirely with plants and trees, said Boeri, who declined to give a cost estimate for the project.

In total, Liuzhou’s forest city aims to host 40,000 trees and almost 1 million plants from more than 100 species, planted over buildings to improve air quality, decrease temperatures and contribute to biodiversity, Boeri said.

The city is expected to absorb almost 10,000 tons of carbon dioxide — the equivalent emissions of 2,000 passenger cars driven for a year — and 57 tons of pollutants per year. The greenery will also produce 900 tons of oxygen every year, Boeri said.

He is working with botanists and engineers to create a high-nutrient soil mixture able to retain water while still keeping weight to a minimum.

“Bringing forests into the city is one of the most radical and efficient ways to deal with climate change,” Boeri told the Thomson Reuters Foundation.

“We sometimes joke and say we’re building houses for trees,” he said.

To increase energy self-sufficiency, solar panels on the roofs will collect renewable energy to power the buildings, while geothermal energy — heat and cooling drawn from constant temperatures underground — will power air conditioning, adding to the project’s green appeal.

Boeri also aims to build vertical forests, similar to the one in Milan, in Nanjing, Shanghai and Shenzhen in China and in other parts of the world.

Nature at work

While China’s sponge city program is the most ambitious of its kind, urban planners have embraced nature-based solutions to heat and water worries in other parts of the world, too.

The sponge city initiative takes inspiration from the North American concept of low-impact development, sustainable urban drainage systems in Europe and water-sensitive urban design in Australia and New Zealand, all of which mimic nature’s water cycle.

The southern German city of Stuttgart, prone to high summer temperatures and air pollution, also has been a pioneer of using nature to adapt to climate change.

Officials there published a climate adaptation plan in 2012, but planners have been thinking about the valley city’s microclimate as far back as 1938, according to Hans-Wolf Zirkwitz, head of Stuttgart’s Office for Environmental Protection.

“Even before we knew about climate change, our planning has been optimized with regards to the climate and improving air quality, because of our local climate conditions,” Zirkwitz told the Thomson Reuters Foundation in emailed comments.

City officials, for instance, have created green ventilation corridors to enable fresh air to sweep down from the city’s surrounding hills and building regulations that aim to keep these corridors free from new construction.

Thanks to a combination of mandatory building requirements and subsidies, the city of about 600,000 people also is a European green roof pioneer, with more than 60 percent of its area covered by greenery to absorb pollutants and reduce heat.