Canada Political Pressures Force PM’s Hand on US Trade Disputes

Canada escalated a trade dispute with United States by making threats Washington called inappropriate in part because Prime Minister Justin Trudeau is under pressure to secure support in a key region ahead of the country’s 2019 elections.

Washington last month slapped tariffs on timber imports, prompting Trudeau to say he was considering a ban on exports of U.S. coal through Pacific ports.

As well as lumber, the administration of President Donald Trump has targeted Canadian dairy farmers, while Boeing Corp. launched a trade challenge against Montreal-based planemaker Bombardier Inc.

All three are vital to the economy of Quebec, Canada’s second most-populous province. And Quebec is seen as vital to Trudeau’s hopes of maintaining a strong grip on power in a national election set for October 2019.

As contentious talks on renegotiating NAFTA draw closer, Trudeau has little choice but to defend dairy farmers and offer help to the lumber industry, even though that is likely to prompt fresh U.S. challenges.

“Quebec is the key,” said one senior Liberal organizer.

The predominantly French-speaking province holds 78 of the 338 seats in the House of Commons and Liberals acknowledge they need to win extra seats there to offset expected losses elsewhere in 2019.

The challenge is that they captured 40 seats in Quebec in 2015, which was far more than expected.

The Liberals say they can take another 10 to 15 seats, but only if everything goes their way. This means showing support for the dairy industry – and its influential lobby – amid fresh attacks from Washington.

No Choice?

The United States has long complained about Canada’s system of domestic protections for its dairy industry, which bars most imports and keeps prices high. Trump last month branded the industry “a disgrace.”

The system is unpopular in large parts of Canada, where people complain about high prices for milk and cheese. Trudeau, however, has little choice but to defend it.

Leger Marketing pollster Christian Bourque noted there are dairy farms in every part of Quebec.

“If you’re seen as attacking farming and the land, it’s probably easy for the farmers’ union to get Quebeckers onside.

You don’t necessarily want to forget farmers,” he said.

While observers see little risk of Trudeau being defeated outright in 2019, the danger for the Liberals is losing their majority, forcing them to rely on opposition parties to govern.

This would inevitably mean political compromises and a diluted policy agenda.

The Liberals have so far tried to maintain calm as tensions ratchet up, relying on visits from cabinet ministers and to key states to press the message that trade benefits both sides.

Bark vs Bite

The outreach efforts will continue, according to a source familiar with official strategy, adding that Ottawa will show its teeth where necessary.

“Do people honestly expect the Canadian government just to say ‘We accept these lumber duties, we will move on and pay the price?'” asked the source, who requested anonymity given the sensitivity of the situation.

In Washington, White House spokesman Sean Spicer dismissed talk of a trade war.

“That’s why we have dispute settlement mechanisms to do this in a responsible way,” he told reporters on Monday.

In a sign of the mounting pressures on Trudeau over lumber, former Quebec Liberal premier Jean Charest said Ottawa should consider loan guarantees to affected firms.

“It is very black and white now: either the government supports them or they will just close down,” he said in an interview.

Although giving such aid could prompt fresh U.S. challenges, insiders make clear Canada has no option.

Trudeau last week met with Quebec’s timber unions and tweeted “supporting softwood lumber producers in Quebec and across the country is a priority.”

In the short term, he faces few immediate threats. Polls show the Liberals well ahead of the opposition Conservatives and New Democrats, both of which have stand-in leaders and will not choose permanent replacements until later this year.

“He’s had an exceptionally long honeymoon, he’s still having a honeymoon, but that has a lot to do with the absence of opposition,” said pollster Nik Nanos.

Although being seen to openly favor one province or region over another can be politically fatal in Canada, Liberal sensitivity toward Quebec is clear.

When it came time to deciding on aid to Bombardier – which has received billions in subsidies from Ottawa – the Liberals made clear the only question was not if, but how much.

Party operatives also admitted relief once became clear Ottawa would not have to decide before the election on whether to allow TransCanada Corp. to build an oil pipeline across Quebec.

Environmentalists and aboriginal activists had promised protests that Quebec Liberals said they feared could hurt the party’s chances.

What You Need to Know About EB-5 Visas

What is the EB-5 Visa?

The EB-5 program allows entrepreneurs and their families to apply for green cards (permanent residence) if they 1) make the necessary investment in a commercial enterprise in the United States, and 2) plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.

How much is the necessary investment?

$1 million or $500,000 if the money is invested in a high unemployment or rural area, considered a targeted employment area (TEA). The Department of Homeland Security (DHS) says approximately 97 percent of all investments by EB-5 petitioners are made in TEAs at the reduced amount of $500,000.

DHS proposed in January increasing the minimum investment amount required for the EB-5 program from $500,000 to $1.35 million for projects in TEAs; from $1 million to $1.8 million for developments in low-to-average unemployment areas.

What is purpose of program?

Congress created the EB-5 Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Under a program initially enacted as a pilot in 1992, and regularly reauthorized since then, investors also may qualify for EB-5 classification by investing through regional centers designated by U.S. Citizenship and Immigration Services (USCIS).

What are regional centers?

Regional Centers are federally approved third parties that “connect foreign investors with developers in need of funding, and take a commission.” Regional centers are usually private, for-profit businesses that are approved by the USCIS.

What kinds of businesses can I invest in?

EB-5 investors must invest in a “for profit activity formed for the ongoing conduct of lawful business,” which was established after Nov. 29, 1990. If the enterprise was established before that date, it must have been restructured and expanded.

How many EB-5s are available every year?

There is a cap of about 10,000 annually. However, many EB-5 visa holders bring family members with them, and they are included in the count. So, the actual number of visas issued is much lower than that. Before the 2008 recession, DHS says the EB-5 program received fewer than an average 600 EB-5 petitions per year.

Since then, the program has received an average of more than 5,500 petitions per year. Between FY 2014 and FY 2015 alone, more than 25,000 petitions were received. As a result, demand for EB-5 visas by investors has now outpaced the annual supply, resulting in visa backlogs.

Who gets EB-5s?

In 2014, 85 percent of the 10,692 EB-5 visas issued were for Chinese nationals.

What is the future of the EB-5 program?

The EB-5 visa program has just been extended in its current form through September. What happens after that will depend on a review being conducted by the Trump administration and Congress. White House spokesman Sean Spicer says the administration is looking “over the entire visa program, all the various visa programs, and whether or not they are serving the purpose they intended to, whether or not we’re making sure we’re doing what’s in the best interests of the American worker.”

Both parties in Congress have expressed an interest in revising the program.

Austerity Remains a Bitter Pill for Greeks to Swallow

The prospect of an economic doomsday for Greece may have diminished in the past week, but citizen Angelika Dinkel doesn’t much care.

Following months of negotiations, the Greek government last week agreed to further austerity measures in order to access loans from its $94 billion bailout program..

But as she waits in central Athens for a church to open and a hoped-for handout of maybe $5 — or even $10 if she’s lucky —  the 60-year-old’s mind is focused on day-to-day survival.

There may be talk of a light at the end of the tunnel for a country traumatized by seven years of economic turmoil, but on the streets of Athens they seem a world away from everyday reality.

“There’s no reason to pay attention. Things are just getting worse,” says Dinkel, who struggles to scrape together the $50 a month she needs to stay off the streets.  

“No one thought it could be this bad.”

A disconnect

The race is now on for Greek officials rushing to create a bumper package of new legislation agreed to during the negotiations.

These include a cut in taxes, the opening up of energy markets and a further slashing of pensions.

Pending approval from the Greek parliament in the coming days, it is expected the agreement will be ready for the next meeting of eurozone finance ministers on May 22.

There, hopes are that $8 billion in rescue loans will be approved, allowing the country to make a crucial debt repayment in July.

The markets have been largely cheered by the news, while there have been other positive signs too — last month, the country posted its first overall budget surplus in more than two decades.

Yet little of this is being felt on the ground, where poverty and homelessness remain all too prevalent.  

“I don’t think [the latest agreement] will improve the daily lives of people,” claims Aliki Mouriki, a sociologist and senior research fellow at the National Center for Social Research in Athens. “People are seeing further cuts in things like their pensions, so why would they be happy? Some segments of the Greek population and businesses may be happy over [the reforms] as the economic climate has less uncertainty, but this is not reflecting on daily lives.”

Sense of betrayal

The Greek leftist ruling party Syriza and its leader Alexis Tsipras may have emerged with a deal, but the moves have already sparked new protests.

Meanwhile, many consider these latest steps just another act of weakness or betrayal by a party that swept into power on an anti-austerity ticket in 2015.

Though emergency funds from the European Union (EU) and International Monetary Fund (IMF) helped pull Greece back from the brink of collapse in 2010, this is the third such bailout, and many Greeks are of the opinion that the country’s supposed medicine of reforms and austerity is actually proving to be its poison.

Chrysa Lazaridou, who runs a bakery not far from the city’s towering ancient Acropolis, has been keeping an eye on recent developments.

Despite the inclusion of “counter measures” against the austerity — including rent subsidies for low income families — she feels the agreed package represents more of the same when it comes to Greece’s current place in the world.

“I thought [Alexis] Tsipras would be different, but in practice he’s not,” she said.

“All the decisions made here are made outside of Greece in the European Union, while politicians and businessmen will be the ones to profit.”

Vanishing savings

Meanwhile, other signs of progress remain tentative.

Amid the bailouts, reforms and austerity, the unemployment rate has declined from a peak of nearly 28 percent.

However, in recent months it has climbed once again to 23.5 percent — still the highest in Europe — while Friday the European Commission is set to revise its prediction of growth in Greece over 2017 from 2.7 percent to 2 percent.

Panagiotis Lappas, approached by VOA in central Athens, is a banking lawyer who often deals with families overcome by debt — something he sees with increasing regularity.

“Their savings have vanished after seven years,” he explained.

He was circumspect about the latest agreement, stating it was neither “pleasant nor necessary, but maybe now we have no other choice.”

However, in Lappas’ view, the time for austerity is over. More needed to be done, he thought, to stimulate growth and attract investment by lowering business rates.

He also called for debt relief, an issue still at the heart of the debate among creditors regarding Greece, and a pre-condition demanded by the IMF for its participation in this bailout.  

Eyes abroad

Tsipras has talked up the deal as “balanced and sustainable,” but he may find the Greek public even harder to convince than his own party, or those holding the purse strings.

Syriza is badly lagging behind its competitors in the polls, though the true test will come in the country’s elections in 2019.

Meanwhile, for one teenager not yet old enough to vote, the answer may not lie with Tsipras, or any of his political rivals.

Clutching his skateboard in Athens’ Monastiraki neighborhood, 17-year-old Alberto Frangou feels little allegiance to the idea of the EU and is scornful of Greek politicians.  

“I hate them, they’ve not helped us,” he said, telling VOA that he feared entering a job market where youth unemployment was measured at 48 percent in January.

Instead, he is considering another option, one that potentially spells more trouble for Greece in the coming years.

Between 2008 and 2016, around 450,000 mostly young and educated people left the country in search of a better future.

“If things don’t get any better, then I will just have to go elsewhere,” he told VOA.

Czech President Sets Conditions for Firing Finance Minister in Rift with PM

Czech President Milos Zeman on Monday demanded his prime minister terminate the agreement that formed the coalition government if he is to agree to firing the finance minister, deepening a rift between the country’s two leaders.

The European Union member is in political crisis over the future of Finance Minister Andrej Babis, a billionaire businessman who faces questions over past business practices and is the main political rival of Prime Minister Bohuslav Sobotka.

With an election due in October, Sobotka is demanding the president dismiss Babis, but the finance minister, who heads the anti-establishment ANO party, has found an ally in Zeman who has long had poor relations with the prime minister.

Sobotka, who heads the center-left Social Democrats, asked Zeman on Friday to dismiss Babis by May 9, but the president has refused to do so.

“The president stated that the prime minister cannot task the president with setting a date for dismissal,” the presidency said in a statement issued after Zeman met Babis on Monday.

Under the constitution, the president dismisses a minister if requested by the prime minister. Lawyers say the head of state should act promptly and has little wiggle room.

However, on Monday Zeman said Sobotka’s and Babis’s parties were bound by coalition agreement — reached in 2014 to form the cabinet — and that the prime minister must pull out of the deal before requesting Babis’ dismissal against the minister’s will.

“A termination of the coalition agreement would be needed for a valid dismissal,” the statement said.

Such a move could trigger the coalition government’s collapse. Last Friday the prime minister took back a pledge to resign along with his whole government in order to dislodge Babis.

Zeman also wanted to see a nomination for a replacement, the statement added.

Sobotka later urged the Zeman to respect the constitution.

“I would like to call on Mr. President to respect the fundamental law of our country. The coalition agreement has nothing to do with that,” the prime minister said in a statement.

Sobotka has said Babis failed to clear suspicions he dodged taxes by buying tax-free bonds from his conglomerate Agrofert.

Babis says he has not violated any laws.

The EU’s fraud office and Czech police have also been investigating whether Babis manipulated ownership of a conference center to unfairly qualify for EU subsidies meant for small businesses.

Babis has said the prime minister’s actions are politically motivated ahead of parliamentary elections in October. Babis’ ANO party enjoys a more-than 10 point lead over the Social Democrats, according to opinion polls.

World Leaders Congratulate Macron for French Presidential Election Win

World leaders and other political heavyweights have sent congratulatory messages to France’s president-elect, Emmanuel Macron on his victory over Marine Le Pen.

U.S. President Donald Trump tweeted “Congratulations to Emmanuel Macron on his big win today as the next President of France. I look very much forward to working with him!”

Trump had not publicly endorsed either candidate ahead of the election, but let it be known he generally favored Marine Le Pen’s views.

Former U.S. presidential candidate Hillary Clinton, American civil rights leader Jesse Jackson and New York mayor Bill de Blasio, among others, congratulated Macron and the people of France for the presidential election result.

“Your victory is a victory for a strong and united Europe and for French-German friendship,” German Chancellor Angela Merkel’s spokesman said in statement.

Macron spoke with Merkel after his victory was announced, telling her that he would travel to Berlin “very quickly.”

A British spokesman for Prime Minister Theresa May said in a statement that May “warmly congratulates President-elect Macron on his election success. France is one of our closest allies and we look forward to working with the new President on a wide range of shared priorities.”

May also discussed Brexit with Macron, saying “the UK wants a strong partnership with a secure and prosperous EU once we leave,” the spokesman added.

European Union leaders also offered congratulations to Macron: “Happy that the French chose a European future,” European Commission President Jean-Claude Juncker wrote on Twitter.

EU Council President Donald Tusk said the French had chosen “liberty, equality and fraternity” and “said no to the tyranny of fake news”.

Japanese Prime Minister Shinzo Abe said “the victory of President-elect Macron is a symbolic victory against inward-looking and protectionist moves and shows a vote of confidence in the EU.”

Chinese President Xi Jinping said in his message to Macron that China is willing to push partnership with France to a higher level. Xi said their countries share a “responsibility toward peace and development in the world.”

Xi recalled that France was the first Western power to establish diplomatic relations with communist-ruled China in 1964.

Other world leaders from Canada to Latin America to Australia also congratulated Macron on his historic victory.

Macron, the youngest French leader since the Emperor Napoleon, will take office on May 14, 2017.

France Elects Macron, Rejects Le Pen

Voters in France have elected pro-EU centrist Emmanuel Macron as the country’s new president, rejecting the anti-EU, anti-immigrant policies of nationalist Marine Le Pen. Preliminary results released immediately after polls closed Sunday showed Macron won 65 percent support compared to 34.5 percent for Le Pen. VOA Europe correspondent Luis Ramirez reports from Paris.

German President Says Israel Ties Solid Despite Recent Spat

Germany’s president said Sunday that despite recent disagreement the foundation of his country’s relations with Israel remains solid – a reference to a recent diplomatic spat over an Israeli anti-occupation group.

Frank-Walter Steinmeier is in Israel on his first foreign trip outside Europe since he was elected president earlier this year. It comes two weeks after Israeli Prime Minister Benjamin Netanyahu canceled talks with the German foreign minister because the visitor chose to meet Breaking the Silence, a group of former Israeli combat soldiers-turned-whistleblowers who oppose Israel’s rule over the Palestinians.

 

The dispute has cast a shadow over what would otherwise have been a routine visit to Israel by the German president.

 

Netanyahu said after meeting with Steinmeier that Israel has a “unique partnership” with Germany. In an apparent dig at Breaking the Silence, Netanyahu said Israeli troops have “moral standards second to none.”

 

The group says soldiers come forward with their war stories to shine a light on problems either unknown or ignored by the public. But many Israeli leaders have portrayed them as traitors, in part because their reports and lectures are often aimed at foreign audiences.

 

Steinmeier addressed the dispute at a speech in German at the Hebrew University in Jerusalem.

 

He said diverse voices are “the oxygen of democracy” and said he believes “those who raise their voice, who criticize, but also respect the voices of others – they are not traitors of the people, but guardians of the people.”

 

Complex ties

Israel and Germany have had a long, close and complicated relationship. Israel was established in 1948 on the ashes of the Holocaust, in which 6 million Jews were systematically killed by Nazi Germany and its collaborators during World War II. The countries only established diplomatic relations in 1965.

 

Today, Germany is a key Israeli trade partner and ally in Europe, and assumes responsibility for the atrocities committed during the Holocaust.

 

But tensions occasionally flare up over Israeli policies toward the Palestinians. Germany, along with most of the international community, considers Israeli settlements in territory claimed by the Palestinians illegal. Israel says settlements should be resolved along with other core issues in peace talks.

 

Steinmeier said some advised he cancel or postpone his visit over the spat but he decided otherwise “not because I agreed with your prime minister’s cancellation of the meeting with the German foreign minister, but because I believe that I would be amiss if I allowed the relationship between the two nations to get deeper into a dead end, which would harm both sides,” he said.

 

“The relationship between Germany and Israel will always remain unique. We must not forget then when it is difficult and the wind is a bit stormy. Especially in such times, we are called upon to protect this precious heritage,” said Steinmeier.

In Pictures: French Voters Select New President in Key Election

In a race dominated by the issues of jobs, immigration and security, the choice before voters in this second and final round Sunday is stark, with centrist, pro-EU former economy minister, Emmanuel Macron facing nationalist, anti-immigration crusader Marine Le Pen.

50,000 Evacuated in German City after 5 WWII Bombs Uncovered

German authorities are evacuating around 50,000 people from their homes in the northern city of Hannover while five suspected aerial bombs from World War II are made safe for removal.

City officials say two suspected bombs were found at a construction site and three more nearby. Germany was heavily bombed by Allied planes during the war and such finds are common.

 

Leaflets in German, Polish, Turkish, English and Russian were delivered door-to-door to make sure everyone evacuated on Sunday. The city’s museums are open for free and the senior citizen’s agency organized an afternoon Scrabble and card-playing gathering so evacuated residents would have places to go.

Authorities say they hope people will be able to return to their homes by evening.

 

Buffett Talks Wells Fargo, IBM and His Successor at Annual Meeting

Warren Buffett, the chairman of Berkshire Hathaway Inc., Saturday faulted Wells Fargo & Co for failing to stop employees from signing up customers for bogus accounts even after learning it was happening.

Wells Fargo, whose largest shareholder is Berkshire, with a 10 percent stake worth roughly $27 billion, gave employees too much autonomy to engage in “cross-selling” multiple products to meet sales goals, Buffett said.

This “incentivized the wrong type of behavior,” and former Chief Executive John Stumpf, who lost his job over the scandal, was too slow to fix the problem, Buffett said.

Wells Fargo was among many topics discussed at Berkshire’s annual meeting in Omaha, where Buffett, 86, and Vice Chairman Charlie Munger, 93, fielded dozens of questions from shareholders, journalists and analysts.

“If there’s a major problem, the CEO will get wind of it. At that moment, that’s the key to everything. The CEO has to act,” Buffett said. “The main problem was they didn’t act when they learned about it.”

Still, Buffett’s support of current management and board was key to ensuring the re-election of the entire board last month.

Wells Fargo spokesman Mark Folk said “we agree” with Buffett’s comments, and have taken “decisive actions” to fix the problems and “make things right for customers.”

Asked whether Berkshire’s decentralized structure could lead to a similar scandal, Buffett said “as we sit here, somebody is doing something wrong at Berkshire,” whose units employ 367,000 people. But he said Berkshire has an internal hotline to flag possible misbehavior, which gets 4,000 calls a year.

Succession and dividends

The meeting also included discussions about Berkshire’s succession plans, its controversial partnership with Brazilian firm 3G Capital, and whether it will start paying dividends or make an acquisition.

Buffett has said Berkshire could have a new chief executive within 24 hours if he died or could not continue, and that nothing had changed just because he praised fewer managers than usual in his February shareholder letter.

He said it may have been harder to single people out because “we have never had more good managers.”

But he also said it would be a “terrible mistake” if capital allocation were not the “main talent” of his successor.

Buffett did lavish much praise on top insurance executive Ajit Jain, who some investors believe could be that successor, saying “nobody could possibly replace Ajit. You can’t come close.”

On 3G, with which Berkshire controls Kraft Heinz Co and tried to merge it with Unilever NV, Buffett acknowledged a dislike for the cost-cutting for which the Brazilian firm is known.

But, he said, “it is absolutely essential to America that we become more productive,” and 3G was “very good at making a business productive with fewer people.”

Buffett also raised the possibility Berkshire could pay its first dividend since 1967, if “reasonably soon, even while I’m around,” the company had too much cash it could not reasonably deploy.

“It could be repurchases, it could be dividends,” he said.

Berkshire ended March with more than $96 billion of cash and cashlike instruments, and Munger said it could do a “$150 billion” acquisition now if it wanted.

Airlines and IBM

Buffett defended Berkshire’s foray into airlines, where it is a top investor in American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co. and United Continental Holdings Inc.

He had long disdained the industry, which had gone through many bankruptcies, but said he is confident it will not resort to “suicidally competitive” pricing strategies that could spell doom.

Munger added: “You’ve got to remember railroads were a terrible business for decades and decades and decades, and then they got good.” Berkshire bought the BNSF railroad in 2010.

Buffett also admitted he was wrong to think International Business Machines Corp. “would do better” when he started amassing 81 million shares six years ago.

Berkshire recently sold about one-third of those shares even as it built a huge stake in Apple Inc., which Buffett said is more as a “consumer” company that a technology company.

He also addressed criticism that Berkshire discloses too little about businesses such as aircraft parts maker Precision Castparts Corp, which it bought last year for $32.1 billion.

“We want you to understand what you own,” he said, and “there are just a million things that are of minor importance” at Berkshire, whose market value is about $411 billion.

Buffett also noted that Berkshire reported far fewer investment gains in the first quarter, which dragged on results, but said the company now has a slight preference for taking tax losses, which could lose value if Washington lawmakers reduce the 35 percent corporate tax rate.

The annual meeting, expected to draw more than last year’s estimated 37,000 shareholders, is the main event of a weekend of events that Buffett calls “Woodstock for Capitalists.”

Buffett and Munger took questions after the traditional shareholder movie, and after Buffett had roamed a nearby exhibit hall featuring products from Berkshire companies.

He was joined at the traditional newspaper tossing contest by friends including Microsoft Corp co-founder and Berkshire director Bill Gates, and Miami Dolphins defensive tackle Ndamukong Suh.

Hundreds of shareholders lined up early outside downtown Omaha’s CenturyLink Center for the meeting. Several said they got there nearly five hours before doors opened around 6:45 a.m.

“Every year it seems I have to come earlier,” said Chris Tesari, a retired businessman from Pacific Palisades, California who said he arrived at 3:20 a.m. for his 21st meeting. “It’s a pilgrimage.”

Buffett: GOP Health Care Bill a Tax Cut for the Rich

Berkshire Hathaway Inc Chairman Warren Buffett fumed Saturday that health care costs are eating away at the U.S. economy like “tapeworm” and said the Republican approach to overhaul Obamacare is a tax cut for the rich.

The U.S. House of Representatives on Thursday narrowly approved a bill to repeal and replace Obamacare, a victory for Republican President Donald Trump who has called the 2010 law a “disaster.”

Speaking at Berkshire’s annual shareholders’ meeting in Omaha, Buffett said his federal income taxes last year would have gone down 17 percent had the new law been in effect.

“So it is a huge tax cut for guys like me,” he said. “And when there’s a tax cut, either the deficit goes up or they get the taxes from somebody else.”

The Republican bill would repeal most of the taxes that paid for the law formally known as the Affordable Care Act. The party’s leadership has promised that the new American Health Care Act, which faces a likely overhaul and uncertain passage in the Senate, would address growing health care costs.

Buffett said rising health care costs are crippling the competitiveness of U.S. companies abroad.

Unlike in many other countries where much of health care spending is publicly financed, employers provide health insurance coverage for nearly half of Americans and often face skyrocketing rates.

Buffett said health care costs have risen much faster in the United States than in the rest of the world and “will go up a lot more.”

“Medical costs are the tapeworm of American economic competitiveness,” he said. “That is a problem this society is having trouble with and is going to have more trouble with.”

Buffett is a Democrat who vocally supported Hillary Clinton’s unsuccessful bid for the presidency against Trump. The fourth richest man in the world with a net worth totaling $74.3 billion, according to Forbes magazine, Buffett has vowed to donate nearly his entire fortune to charity.

Berkshire Vice Chairman Charlie Munger added that he thinks neither political party “can think rationally” about health care because they “hate each other so much.”

Polls Open in Bitter, Key French Election

Polls have opened in France, culminating a presidential election campaign that many French say is the country’s most acrimonious and contentious in its modern history, one that could decide whether it stays the course of globalization or adopts a new, separate path outside of the European Union.

In a race dominated by the issues of jobs, immigration and security, the choice before voters in this second and final round Sunday is stark, with centrist, pro-EU former economy minister Emmanuel Macron facing nationalist, anti-immigration crusader Marine Le Pen.

Surveys going into Sunday suggested Macron has a substantial lead with 63 percent support against Le Pen’s 37 percent.

Both candidates were mobbed by journalists as they cast their ballots at separate locations. Macron voted in the coastal town of Le Tourquet in northern France alongside his wife, Brigitte Macron. 

Le Pen has cast her ballot in Henin-Beaumont, a small northern town controlled by her National Front party.

Outgoing President Francois Hollande also voted Sunday in his political fiefdom of Tulle in southwestern France.

Le Pen

While Macron is widely favored by pollsters to win the election, it is Le Pen, her anti-EU position and her drive to stop the flow of Muslim immigration to France who is drawing world attention to the race.

“We are being submerged by a flood of immigrants that are sweeping all before them. There are prayers in the street, cafes that ban women, and young women who get threatening looks if they wear a skirt. I will say when I become president that this is not the French way,” Le Pen said at a rally in April. She calls for the expulsion of Islamists, the closure of mosques whose imams preach extremism, cuts in immigration, scrapping the euro, and a referendum on France’s EU membership.

Le Pen’s main reason for opposing the EU is similar to the one cited by British proponents of Brexit: EU’s policies on the freedom of movement mean it is the EU, and not individual countries, that controls borders.

Watch: France Ready for Sunday’s Ballot Box ‘Revolution’

​Macron

Macron has a starkly different view. The former banker has repeatedly said he believes there is no turning back on globalization.

“The free movement of people between European Union countries is now a reality, with undeniable gains in economic matters, but also in culture and education or in daily life for cross-border workers,” Macron said on his campaign website.

Macron is staunchly pro-EU but said he wants reforms to make the grouping more democratic and has warned that continuing business as usual with the EU will trigger a Frexit, or a French exit similar to Britain’s.

Watch: Many French Are Uncertain on Eve of Presidential Vote

Divided country

Macron’s view is held by many urban, largely affluent voters who see their nation as a cosmopolitan experiment that has worked and globalization as not only inevitable, but the key to future economic prosperity.

Le Pen’s message has resonated largely among those who see their future threatened by crony capitalism and a destruction of French native culture. Her strongholds are largely in areas of northeastern France where factory and steel plant closures have killed thousands of jobs, pushing France’s unemployment rate to nearly 10 percent, among the highest in Europe.

France’s deep divisions were clear in a final, vicious debate where the anger, bitterness and personal dislike between the two candidates were on display to 15 million viewers three days before the election.

Name-calling

“The high priestess of fear is sitting in front of me,” Macron said. Le Pen told Macron, “You are the France of submission.”

Turnout is expected to be high Sunday, and security was tightened around the country.

A VOA correspondent, Luis Ramirez, visiting one of Paris’ polling stations in the first hour of voting, reported a long line of people waiting to cast ballots, despite a steady rain.

Officials say, however, voter turnout at midday across the country was a bit lower that at the same time in 2012, standing at just over percent.

Security

The government deployed a security force of 50,000 police officers, soldiers and private security guards to watch polling stations in Paris, Nice and other cities.

France remains under a state of emergency following a string of Islamist extremist attacks that have killed more than 200 people over the past two years.

The Islamic State terrorist group, in its online propaganda magazine, called for election day attacks.

Outgoing President Francois Hollande, meanwhile, has promised to respond to what Macron’s movement, En Marche, said was the hacking of its computers Friday and the leak of thousands of campaign documents that were posted along with fake ones on social media sites.

Entrepreneurs Outside US Can Attract Silicon Valley Backing

The venture fund 500 Startups has been making a splash in Southeast Asia, most recently with Khmerload, a Cambodian entertainment news website modeled after the American media giant Buzzfeed. Binh Tran, a venture partner with the firm, sat down with Sophat Soeung of VOA’s Khmer service to talk about how entrepreneurs in developing countries could attract such investors. Here’s some of his advice for them:

Remember, Silicon Valley investors are a click away

I think first is to understand the whole startup ecosystem. All this information is at your fingertips. The world’s shrunk, and for resourceful entrepreneurs, they have this incredible amount of knowledge that they can tap into, to get themselves familiarized with how to build a company, how to launch it, how to monetize, and also understand investment. All that is available.

Not everyone can be a tech entrepreneur. It’s incredibly hard, but for the ones that are resourceful … the tools are there. And we want to be the ones to provide that dry powder to help you grow. So once you have achieved some progress and some [traction], then come talk to us.

Don’t overthink — there is no ‘right’ sector

I’m pretty sector-agnostic. … If you’re building something that is obscure to me … the fact that you can make a business out of it, you’re making some money out of it, that’s great. And if it’s technology-enabled, it’s done through software, or done through some algorithm that you created, that’s where I think I can help. That’s where I think the opportunities are.

Look for a growing user base

All ecosystems around the world are somewhat new. Even China is a decade or two [old] for venture capital. … If these companies are making money and they’re growing, that’s great. You see companies who have been more focused on revenue early on. So I think Southeast Asia has a lot of opportunity, because you do have that 4 million-new-internet-users-a-month type of growth, but the business models are not quite as risky [as those seen in Silicon Valley].

Pay more attention to operational rather than business risk

I think there’s going to be a small percentage of my portfolio that’s always reserved for the crazy, one-in-a-million-chance ideas. But for the most part, these startups should be solving basic problems. Across many sectors in Southeast Asian countries like Vietnam, businesses have barely adopted Web 1.0 technologies. There’s opportunities for entrepreneurs to solve basic problems such as helping business attract, serve and support customers more efficiently.

So instead of investing in a new, risky, innovative business model as you would in Silicon Valley, the innovation these companies we’re investing into is the way they’re hiring and training employees and how they’ve mastered how to operate within highly regulated environments. These companies also deeply understand their customers’ problems and have demonstrated their ability to market to and sell to locals.

So the innovation we’re seeing is less about business model or technology innovation, but I do hope that changes.

Build your reputation, and be patient

You’ve got to do what you say you’re going to do. This is one of those things where your reputation is so important. … [Also,] realize that it’s going to take a while. It’s not easy. Don’t be caught up in the buzz or the hype — just focus on the fact that this is going to be a long, hard journey. And hopefully that sets up the right expectations.

This report originated on the VOA Khmer service.

New Oyster War: Rich Homeowners vs. Working-class Watermen

Oystermen, pirates and police clashed violently more than a century ago over who could collect the Chesapeake Bay’s tasty and lucrative oysters. As the shellfish makes a comeback, a modern-day oyster war is brewing, this time between wealthy waterfront property owners and working-class fishermen.

Over the past five years, oyster production has doubled on the East Coast, driven by new farming methods, cleaner water and Americans’ growing taste for orders on the half shell. The resurgence has led to unprecedented resistance from coastal Virginians who want to maintain picturesque views from their waterfront homes and has fueled a debate over access to public waterways.

“These people can’t have it all,” said Chris Ludford, an oysterman in Virginia Beach who sells to nearby farm-to-table restaurants.  

 

Ludford said he faces fierce pushback along a Chesapeake Bay tributary from people with “a $2,000 painting in their house of some old bearded oysterman tonging oysters.

 

“But they don’t want to look out their window and see the real thing,” he said.

Views spoiled, privacy lost

 Homeowners say the growing number of oystermen — dressed in waders and often tending cages of shellfish — spoil their views and invade their privacy. Residents also worry about less access to the water and the safety of boaters and swimmers.

 

Low tides often expose oyster cages, usually accompanied by markers or warning signs that protrude from the surface. In some places, cages float.

 

“All of sudden you have people working in your backyard like it was some industrial area,” said John Korte, a retired NASA aerospace engineer in Virginia Beach who’s among residents concerned about oyster farming’s proliferation. “They may be a hundred feet away from someone’s yard.”

 

Ben Stagg, chief engineer at the Virginia Marine Resources Commission, said the state is poised to break its record of leased acreage for oyster growing. But nearly 30 percent of more than 400 new lease applications face opposition, an unprecedented number that’s led to a backlog of leases awaiting approval.

 

 “Occasionally I can resolve those by having the parties get together and adjust the area further offshore,” Stagg said. “But oftentimes, I can’t.”

Oysters make a comeback

There hasn’t been this much interest in oysters in Virginia since the early 1960s. Since then, disease and overfishing took hold and growers started to disappear.

 

Over the last few decades, breeding programs have produced more disease-resistant and faster-growing oysters. The water’s cleaner. American palettes have evolved, increasing demand.  

 

Farming techniques also changed. Traditionally, oysters are grown on the bottom of a calm and salty river or bay, then harvested with tongs or dredges that pull them onto boats.  

 

Now, fishermen are increasingly using cages to grow oysters over a two-to-three year period. The equipment keeps predators away and produces oysters with a more uniform shape and size, which restaurants prefer.

 

 But the cages are often placed in shallower water closer to shore — and people’s homes.  

 

Virginia Beach is perhaps ground zero for today’s oyster war. The state’s largest city sits at the mouth of the Chesapeake Bay. And oysters thrive in the city’s Lynnhaven River, a network of bays and creeks flowing past expensive homes. Lynnhaven oysters are well-known for their salty taste and size.

Solution is not easy to find

A state task force was formed to find compromise. It recommended giving residents more power to block nearby oyster leases. But the idea was rejected by the Virginia Marine Resources Commission, with the majority of commissioners saying state lawmakers should step in.  

 

Proposals in the Statehouse have included raising the cost of an oyster farming lease from $1.50 an acre annually to $5,000. But legislators haven’t found a solution.  

 

Conflicts also have flared up along Maryland’s Patuxent River, the coastal lagoons of Rhode Island and on Martha’s Vineyard in Massachusetts.  

 

In Delaware, a group of people who mostly own vacation homes successfully blocked potential oyster farming along their part of an inland bay.

 

“Oftentimes, affluent and new members of the community have the point of view that they own the water in front of them, which is really not true,” said Bob Rheault, executive director of the East Coast Shellfish Growers Association. “We need to win back our social license to farm.”

 

Rheault said he’s seen these battles “up and down the East Coast” — even before the crop began to double five years ago.

 

 “The industry was there before the waterfront mansions were built,” Rheault added. “But it hasn’t been there for this generation.”

 

Ludford, who also works as a Virginia Beach firefighter, is relatively new to the business. He and other relatives started growing oysters in 2010 after leaving the crab industry.

Is zoning the answer?

On a recent morning, Ludford sorted through cages as he stood in the Lynnhaven River, hundreds of yards from the nearest home.  

 

He dragged cages into view as grass shrimp wriggled on the shells. He and two helpers retrieved more than 500 oysters, which he sold at 75 cents apiece to three restaurants — totaling about $375.

“Really, people haven’t seen an oysterman behind their houses in 50 to 60 years,” Ludford said.

 

Steven Corneliussen, who owns a waterfront home in Poquoson, Virginia, said he’s among a group that successfully protested new leases along his corner of the Chesapeake. He said waterways should be subject to zoning, like land.     

 

“That water out in front of me doesn’t belong to me,” he said. “But it doesn’t belong to them, either.” 

On May Day, Sub-Saharan Workers Still Struggle

Kenyan President Uhuru Kenyatta spoke at the annual May Day celebrations Monday in Nairobi, a day when many countries celebrate workers. But in sub-Saharan Africa, about three-fourths of those laborers work in the informal sector, without contracts or job protections, according to the International Labor Organization.

Kenyatta pledged to tackle high unemployment during his May Day speech.

One hundred meters away, 31-year-old Christine Ndunge continued her work selling sodas and snacks. She has been a street vendor at a public park in central Nairobi for several years. 

“These days getting a job is hard,” she said. “I have decided to employ myself so that I can survive. Like now, it’s a rainy season — there are not enough customers to buy drinks. I motivate myself to continue selling because there is nowhere else I can work.”

In his address Monday, Kenyatta announced that Kenya will be raising its minimum wage by 18 percent.

The crowd cheered, but analysts say policies like raising the minimum wage won’t help a majority of the workforce. 

According to the Kenyan government’s 2017 economic survey, 833,000 jobs were created last year. However, less than 20 percent of those jobs were in the formal sector.  

“There is that disconnect,” said Kwame Owino, CEO of the Institute of Economic Affairs in Kenya. “So on one side, we have unions, which are talking for people who are in the formal sector, raising wages. And when that happens in standard economics, one of the first things that happens is employment shrinks. So when that employment shrinks in the formal sector, most of these people fall back to the informal sector. We are solving the wrong problem.”

He said Kenya and other African countries need to improve conditions for entrepreneurs.

Entrepreneurs in Africa often struggle to raise capital. Owino said what governments can do is create new regulations making it easier for small businesses to get loans. He said policymakers can also streamline the process of registering and running a legal business and make it cheaper.

Josphat Mwendo, a trained mechanic, spent years unsuccessfully looking for a job. Finally, the 32-year-old started fixing cars for money himself. Now, he has three people he pays to help him.

“I don’t feel good because they did not speak about people like us,” he said. “I think it’s good to think about those who have employed themselves too, so that they can know their worth and also feel they are Kenyans like the rest.”

The problem is particularly acute among young people.

A recent study by the Brookings Institution found that Africans between the ages of 15 and 24 are just a third of the continent’s total working-age population, but account for nearly two-thirds of the continent’s unemployed.

Showtime to Air Stone Interviews With Vladimir Putin

Showtime cable network is presenting four hours of director Oliver Stone interviewing Russian President Vladimir Putin on four consecutive nights in June.

The network announced Monday that “The Putin Interviews” will air first on June 12 at 9 p.m. Eastern, with three additional hour-long installments on the following nights. Showtime said Stone interviewed Putin more than a dozen times over the past two years, most recently in February.

 

Showtime is comparing the project to conversations held by British TV host David Frost and former U.S. president Richard Nixon in 1977.

 

Stone had also interviewed Putin for his documentary “Ukraine on Fire,” which was said to take a sympathetic view of Russia’s involvement in the conflict there.

Fed Likely to Leave Rates Alone but Signals More Hikes Coming

With the U.S. economy on solid footing and unemployment at a near-decade low, the Federal Reserve remains in the midst of a campaign to gradually raise interest rates from ultra-lows. But this week, it’s all but sure to take a pause.

The Fed is widely expected to keep its key short-term rate unchanged after having raised it in March for the second time in three months. Most analysts foresee the Fed raising its key rate again at least twice more before year’s end, a testament to the durability of the U.S. economic recovery and a more stable global picture.

 

One reason for the Fed to stand pat this week is that even though the job market has shown steady strength, the economy itself is still growing in fits and starts. On Friday, the government estimated that the economy, as gauged by the gross domestic product, grew at a tepid 0.7 percent annual rate in the January-March quarter. It was the poorest quarterly performance in three years.

 

Though some temporary factors probably held back growth last quarter and may have overstated the weakness, the poor showing underscored that key pockets of the economy — consumer spending and manufacturing, for example — remain sluggish. On Monday, the government said U.S. consumer spending stalled in March for a second straight month. And the Institute for Supply Management reported a drop in factory activity.

 

“Given all the uncertainties they still face and especially with growth coming in so weak, the less the Fed says at this meeting, the better,” said Diane Swonk, chief economist at DS Economics.

 

Most economists have expressed optimism that the economy is strengthening in the current April-June quarter, fueled by job growth, higher consumer confidence and stock-market records. Many think that annualized growth could accelerate to around 3 percent and that the Fed will feel more confident to resume raising rates at its June meeting.

 

“The Fed will probably say in their statement that they expect the economy to rebound in the second quarter,” said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University.

 

It isn’t just the Fed’s short-term rate — a benchmark for other borrowing costs throughout the economy — that will likely occupy attention at this week’s meeting. Officials will also likely discuss how and when to start paring their extraordinary large $4.5 trillion portfolio of Treasurys and mortgage bonds. The Fed amassed its portfolio — commonly called its balance sheet — in the years after the financial crisis erupted in 2008, when it bought long-term bonds to help keep mortgage and other borrowing rates low and support a frail economy. At the time, the Fed had already cut its short-term rate to a record low.

 

The balance sheet is now about five times its size before the financial crisis hit. The Fed stopped buying new bonds in 2014 but has kept its balance sheet high by reinvesting the proceeds of maturing bonds. The Fed’s thinking has been that reducing the balance sheet could send long-term rates up and work against its goals of fortifying the economy.

 

Now, as the Fed becomes more watchful about inflation pressures, the time is nearing when it will need to shrink its balance sheet, a process that could have the effect of raising some borrowing rates, at least modestly. The Fed jolted investors when it released the minutes of its March meeting, which showed that most officials thought that process “would likely be appropriate later this year.” This was sooner than many investors expected.

 

Could the Fed clarify its timetable for paring its balance sheet in the statement it will issue when its policy meeting ends Wednesday? It may decide against doing so, given that this meeting won’t be accompanied by a news conference with Chair Janet Yellen to explain any shifts in the Fed’s policy or thinking.

 

Mark Zandi, chief economist at Moody’s Analytics, said the more likely signal the Fed could send is to reinforce the markets’ view that it intends to raise its short-term rate again next month.

 

“I expect two more rate hikes — one in June and then one in September,” Zandi said. “Then I expect the Fed to begin allowing its balance sheet to run off.”

 

Some Fed officials have suggested that they would prefer not to be raising the short-term rate at the same time that they are beginning to reduce their balance sheet. Giving investors too much to digest at once risks unsettling financial markets. In 2013, the Fed triggered a brief storm in bond markets when then-Chairman Ben Bernanke raised the possibility that the Fed would start tapering its bond purchases later that year, catching investors by surprise.

 

“They learned their lesson with the taper tantrum of 2013 that they need to give the markets plenty of warning of changes in their bond policies,” Sohn said.

 

Some analysts say they think the Fed will reveal nothing this week about its timetable for reducing its balance sheet, in part because the policy committee has yet to reach a consensus on when or how to do so.

 

“I have a feeling we are going to get much less information than we want,” Swonk said. “The Fed wants to move slowly, but they don’t have a consensus yet on how to proceed.”

 

Thousands Take Part in World May Day Protests

Protesters in the United States and around the world have marked International Workers Day, May Day, with rallies and demonstrations that, from France to Turkey, turned violent Monday. VOA Europe Correspondent Luis Ramirez reports.

5 Things to Know as Britain’s Princess Charlotte Turns 2

It’s nearly party time for Britain’s Princess Charlotte, who celebrates her 2nd birthday on Tuesday.

Her parents marked the occasion Monday by distributing a snapshot of Charlotte taken by her mother, the Duchess of Cambridge. Here are five things to know about the family as the landmark nears:

Why haven’t we seen more of Princess Charlotte?

 

Prince William and his wife, Kate, want to protect their daughter’s privacy. It’s not surprising that Kate took the official photo to mark Charlotte’s second birthday on the protected grounds of the family’s country estate. The royal couple has tried to keep Charlotte mostly out of the limelight and away from the paparazzi that often follow senior royals at events in London. An important exception was an official trip to Canada in the fall. William and Kate brought Charlotte and her older brother, Prince George, on the trip and Charlotte even attended a children’s party.

 

What does the photo show? What impact will it have?

 

Don’t be surprised if there’s a run on fluffy yellow cardigans with cute sheep decorations in British stores catering to kids – that’s what Charlotte is wearing in the official photo. It’s possible the outfit was chosen by the clothes-conscious Kate, who snapped the photo. Earlier outfits worn by Prince George in public have become extremely popular with British consumers charmed by the young royals.

 

Charlotte looks very proper and very British, with her hair styled by a clip and her blue-grey eyes looking directly at the camera at the outdoors photo session in April.

 

What is the birthday girl’s full name?

 

She is officially named Charlotte Elizabeth Diana, in tribute to her late grandmother Diana, Princess of Wales, and her great-grandmother, Queen Elizabeth II. She is also known as Princess Charlotte of Cambridge.

 

What’s next for Charlotte and her family ?

 

The family is expected to spend more time in London and less in the countryside as William takes up more royal duties and Prince George, 3, prepares to start school in the fall. Their London base is at Kensington Palace.

 

Will she ever be queen?

 

Charlotte is fourth in line for the throne, behind Prince Charles (her grandfather), Prince William and Prince George.

May Day Marked by Celebrations and Demonstrations

Monday is May Day, known worldwide as the day when workers and activists march in the streets and gather in city centers to honor laborers across the globe. 

The holiday is also known as International Workers Day and as Labor Day. 

Workers and union members in the Philippines celebrated May Day by marching in the streets of Manila, the capital. Workers’ rights groups and unions have also scheduled rallies across Manila. 

Indonesian workers took to the streets of Jakarta Monday. Thousands more workers are expected to join the rally later in the day. 

France’s presidential rivals — centrist front-runner Emanuel Macron and far-right challenger Marine Le Pen — will hold their own dueling rallies Monday. There will also be demonstrations against both candidates. 

In the U.S., May Day’s rallying point has shifted from workers to immigrants.Tens ofthousands of people are expected to mark the day from New York to Los Angeles to protest against President Donald Trump’s focus on boosting deportations.Organizations have called for immigrant strikes in some cities to show Americans what a day without immigrants would look like.

Cuba is facing its first May Day celebration without longtime President Fidel Castro, who died in November.Monday’s observance will also be the last May Day overseen by President Raul Castro, who has promised to step down from office in February. 

Hundreds of thousands of people traditionally celebrate May Day in Havana’s Revolution Square with Cuban flags and portraits of Fidel Castro.

Macron’s Startup-style Campaign Upends French Expectations

Whether or not Emmanuel Macron wins the French presidency in next Sunday’s runoff, he has already accomplished the unthinkable.

 

That’s thanks to an unorthodox, American-style grassroots campaign, which has harvested ideas from the left and the right, tossed them with a dose of startup culture and business school acumen and produced a political phenomenon. Without a party to back him up or any experience stumping for votes, the 39-year-old Macron came out on top of the first round of the French presidential vote, winning over 8 million voters and overturning decades of French political expectations.

An inside look by The Associated Press at Macron’s campaign found a mix of high-tech savvy, political naivete and a jarring disconnect between his multilingual, well-traveled campaign team and a mass of ordinary voters who have never left France and fear being crushed by immigration and job losses.

 

“It’s not a done deal,” campaign spokeswoman Laurence Haim told The AP during a campaign trip Saturday, careful to insist that, despite polls naming Macron the election favorite, risks remain. “We are extremely cautious.”

 

The centrist Macron is facing off against far-right National Front leader Marine Le Pen in the presidential runoff.

 

Detractors dub Macron a bubble that, if elected, would deflate and self-destruct at the first national crisis. Le Pen labels him a puppet of the borderless financial and political elite at a time when many workers feel like globalization roadkill.

 

Le Pen’s campaign is unusual in its own ways. She has broadened her support base far beyond the xenophobic old guard associated with her National Front party when her father Jean-Marie was in charge. Today the people stumping for Le Pen votes at farmers’ markets and university campuses include the children of immigrants, academics, gays and former communists. She is also campaigning in her own name _ not that of her party, a clear bid to distance herself from its past stigma.

 

Macron’s team wants to puncture the heterogeneous image of Le Pen’s campaign, and paints her as a closed-minded nationalist with a dangerous populist vision.

 

“It’s a fight between two different kinds of societies, for France and for Europe,” Haim said. “We are going to show the French people – and hopefully the world – that we are fighting for something bigger than us.”

 

Feeling the ‘Trump effect’

Haim worked 25 years as a journalist in Washington before deciding to join politics in December – out of fear of seeing a French Donald Trump rise to power on a populist wave.

 

“Of course we feel the Trump effect,” Haim said. “The Marine Le Pen people watched very carefully what Donald Trump was doing.”

 

Since Macron won the first-round vote, Haim and other members of his team have been shuttling non-stop around France, from a factory in Macron’s northern hometown of Amiens to the site of a Nazi massacre to a farm in Usseau in central France. His campaign headquarters in southern Paris includes a nap room, though it’s used more for storing spare shoes than rest.

 

Macron’s team starts their day about 7 a.m. and goes until 1 a.m., huddling around laptops in a low-profile office building. A crucial part of the operation is the “riposte desk,” assigned with tracking Macron’s public statements and the social media reaction. For each hostile tweet, Macron’s team tries to counter.

 

National Front activists and their supporters have a head start here – they’ve been using social networks for years to build their following outside France’s traditional media.

Macron’s team is increasingly cautious about language, avoiding English words in public statements or anything that smacks of elitism. That’s especially important because his campaign team is exceptionally international – more than half have lived abroad, unlike most French voters.

 

Le Pen is much better at speaking the language of the people, yet her headquarters is on one of Paris’ most elite streets – the same one as the presidential Elysee Palace. In contrast to Macron’s campaign, she never envisions losing, saying “When I am president,” not

“if.”

 

For both campaigns, security is increasingly important, especially since an Islamic State-claimed attack in Paris earlier this month. With sniffer dogs, patdowns and layers of bodyguards, it’s tougher to enter a campaign event for either candidate now than it was to follow Nicolas Sarkozy’s presidential campaign in 2012 – and he was president at the time.

 

With concerns about Russian meddling a running theme in the French race, three key figures in Macron’s security team are Russian-speakers – his cybersecurity chief, his towering bodyguard and his security strategist.

 

The campaign team also includes a large number of political novices, coming from technical, financial or cultural backgrounds, and their campaign inexperience sometimes shows. Macron is trying to learn from recent electoral blows, such as when Le Pen upstaged him last week at a Whirlpool factory in Amiens that is threatened with closure.

 

Macron “is trying to understand what is happening to French society,” Haim said.

 

On Saturday, Macron snaked slowly through the open-air market of Poitiers, absorbing a string of complaints from farmers about European aid and competition. Macron remained somewhat stiff but patient, listening to lengthy laments then laying out his plans. He made no generous promises but defended his vision of a simplified yet stringent state and a unified Europe.

 

When a baker refused to shake Macron’s hand, he took it in stride, moving on to a flower seller happy to seek his autograph.

 

His staffers buzzed around taking names of his interlocutors, and minutes later in Macron’s convoy afterward, they shared lessons learned on the rough road of political life. They’ve come a long way since a year ago, when Macron launched a vague political movement.

 

“Everybody was telling him it’s going to be impossible, you’re crazy. It could not happen in France,” Haim said. “He looked at them and said, ‘Trust me, I’m going to do it.’”

 

And a year later, thanks in large part to a series of electoral surprises that hurt his rivals, Macron won the first round vote and is now a step away from the French presidency.

Italy’s Renzi Easily Wins Democratic Party Primary

Former premier Matteo Renzi regained the Democratic Party leadership, handily winning a Sunday primary that he hopes will bolster the center-left’s ability to counter growing support for populist politicians in Italy ahead of national elections.

“Forward, together,” Renzi tweeted, invigorated by his comeback after a stinging defeat in a December reforms referendum aimed in part at streamlining the legislative process led him to resign as head of Italy’s government and as leader of his squabbling party.

 

“The alternative to populism isn’t the elite,” Renzi told supports late Sunday after unofficial results indicated he got more than 70 percent of votes cast nationwide. “It’s people who aren’t afraid of democracy.”

 

Some politicians predicted that the primary win would embolden Renzi to maneuver seeking to bring national elections ahead of their spring 2018 due date as part of his effort to rein in increasing popularity for the populist, anti-euro 5-Star Movement.

 

But a top Renzi ally sought to counter that idea.

 

“The government’s horizon is 2018. Starting tomorrow, we’ll work with Premier [Paolo] Gentiloni. Gentiloni’s government is our government,” said Agriculture Minister Maurizio Martina.

 

Renzi’s party is still the main force in Italy’s center-left coalition government, but opinion polls indicate it is no longer the country’ most popular. Overtaking the Democrats in recent soundings was the 5-Star Movement, whose leader, comic Beppe Grillo, wants a crackdown on migrants, rails against European Union-mandated austerity and opposes Italy belonging to the euro single currency group.

 

Throughout the day, some 2 million voters lined up at makeshift gazebos in piazzas and street corners, at ice cream parlors, cafes or local party headquarters around the country to cast ballots for a new head of the splintering Democratic Party, whose rank-and-file range from former Communists to former Christian Democrats.

 

Primary voting was open to anyone 16 years of age of older – the oldest voter was reported to be 105. Holding Democratic Party membership wasn’t a requirement.

 

Trailing far behind in the votes were Justice Minister Andrea Orlando and Puglia region Governor Michele Emiliano.

 

In addition to countering the challenge of 5-Star’s popularity, to regain Italy’s premiership, Renzi will have to contend with malcontents and defectors in his own party. A group of mostly former Communists split from the Democrats and formed a small, new party in resentment over both Renzi’s centrist leanings and his authoritarian style.

 

Renzi’s reputation in politics is one of ruthlessness. In early 2014, he promised then-premier and fellow Democrat Enrico Letta that he wouldn’t undermine the government, only to shortly afterward engineer Letta’s downfall. Renzi then became premier.

 

Italian President Sergio Mattarella recently insisted that electoral laws must be overhauled before new elections. Currently, there is one set of electoral rules for the lower Chamber of Deputies and a completely different one for the Senate, a consequence of the failed reform referendum.

French Forces Kill 20 Militants in Mali

French forces said Sunday they killed more than 20 militants in Mali near the border with Burkina Faso.

French military officials and witnesses say the attack came from the air and on the ground in a forest in the Sahel region.

More than 3,500 French soldiers are spread out across Mali, Burkina Faso, Chad, Mauritania and Niger combating Islamist extremists.

Mali has extended a state of emergency for another six months as it tries to stave off an al-Qaida-linked insurgency in the north, and extremists launching attacks from Burkina Faso in the south.

Merkel’s Conservatives Widen Lead 5 Months Before German Vote

German Chancellor Angela Merkel’s conservative Christian Democrats have opened a seven-point lead over the center-left Social Democrats five months ahead of the Sept. 24 election, according to a poll on Sunday in the Bild am Sonntag newspaper.

The Emnid institute survey found the Christian Democrats and their Christian Social Union allies winning 36 percent of the vote if the election were held on Sunday, unchanged from a similar Emnid poll for Bild am Sonntag taken a week ago.

But the Social Democrats (SPD), led by their chancellor candidate Martin Schulz, continued to slide and lost two percentage points in the week to 29 percent. The CDU/CSU long held a comfortable lead in polls until Schulz was nominated in early 2017 and lifted the SPD to the same levels as the CDU/CSU.

The latest poll, taken just one week before an important state election in Schleswig-Holstein, also showed the CDU/CSU’s preferred coalition partner, the Free Democrats (FDP), rising one point to 6 percent in the last week.

The center-right alliance would still be well short of winning a majority in parliament with 42 percent.

The far-right Alternative for Germany (AfD) would win 9 percent, unchanged over the week. All parties have said they will not join forces with the AfD, making it more difficult to form the next government.

The SPD’s preferred partner, the Greens, rose 1 point to 7 percent in the last week. The far-left Linke party would win an unchanged 9 percent, according to the latest Emnid poll. The so-called “red-red-green” alliance of SPD, Linke and Greens would also fall short of a majority with 45 percent.

The CDU/CSU and SPD currently lead Germany in a grand coalition government. Both parties have said they do not want to continue that arrangement after the Sept. 24 election.

FIFA Official Sheikh Ahmad Resigning Amid Bribery Claims

FIFA Council member Sheikh Ahmad al-Fahad al-Sabah of Kuwait is resigning from his soccer roles under pressure from allegations in an American federal court that he bribed Asian officials.

Sheikh Ahmad said Sunday in a statement he will withdraw from a May 8 election in Bahrain for the FIFA seat representing Asia, which he currently holds.

“I do not want these allegations to create divisions or distract attention from the upcoming AFC [Asian Football Confederation] and FIFA Congresses,” said the Kuwaiti royal, who denies any wrongdoing.

“Therefore, after careful consideration, I have decided it is in the best interests of FIFA and the AFC, for me to withdraw my candidacy for the FIFA Council and resign from my current football positions,” he said.

The long-time Olympic Council of Asia president contacted the ethics panels of FIFA and the IOC after the allegations were made in Brooklyn federal courthouse on Thursday.

FIFA audit committee member Richard Lai, an American citizen from Guam, pleaded guilty to wire fraud conspiracy charges related to taking around $1 million in bribes, including from Kuwaiti officials. The cash was to buy influence and help recruit other Asian soccer officials prepared to take bribes, Lai said in court.

Sheikh Ahmad resigned his candidacy ahead of a FIFA panel deciding whether to remove him on ethical grounds.

The FIFA Review Committee, which rules on the integrity of people seeking senior FIFA positions, has been studying the sheikh’s candidacy since the allegations emerged, The Associated Press reported on Saturday.

The FIFA ethics committee is making a separate assessment of whether to provisionally suspend the sheikh, a long-time leader of Kuwait’s soccer federation who was elected to FIFA’s ruling committee in 2015.

Resigning from his soccer positions does not necessarily put Sheikh Ahmad out of reach of FIFA ethics prosecutors and judges if any action was taken.

In 2012, former FIFA presidential candidate Mohamed bin Hammam of Qatar was banned for life by the ethics committee days after he resigned.

Bin Hammam was also clearly identified in Lai’s court hearing for having paid Lai a total of $100,000 in bribes to support the Qatari’s failed challenge to FIFA’s then-president Sepp Blatter in 2011. Bin Hammam was removed from that election contest in a Caribbean bribery case.

Sheikh Ahmad has also contacted the IOC’s ethics commission about the allegations against him, the IOC said on Saturday.

As president since 2012 of the global group of national Olympic bodies, known as ANOC, Sheikh Ahmad’s support has often been cited as key to winning Olympic election and hosting awards. The sheikh was widely credited for helping Thomas Bach win the IOC presidency in 2013.

Although Sheikh Ahmad was not named in Department of Justice and court documents last week, he has become one of the most significant casualties of the sprawling U.S. federal investigation of bribery and corruption in international soccer revealed two years ago.

The sheikh could be identified in a transcript of Lai’s court hearing which said “co-conspirator [hash]2 was also the president of Olympic Council of Asia.” Sheikh Ahmad has been OCA president since 1991.

Co-conspirator #3 was described as having a “high-ranking” role at OCA, and also linked to the Kuwait soccer federation.

According to the published transcript, Lai claimed he “received at least $770,000 in wire transfers from accounts associated with Co-Conspirator [hash]3 and the OCA between November of 2009 and about the fall of 2014.”

“I understood that the source of this money was ultimately Co-Conspirator #2 and on some occasion Co-Conspirator #3 told me to send him an email saying that I need funds so he could show the email to Co-Conspirator #2,” Lai said in court.

Lai admitted that he agreed to help recruit other Asian officials that voted in FIFA elections who would help Kuwait’s interests.

The Guam soccer federation leader since 2001, Lai pleaded guilty to wire fraud conspiracy charges and failing to disclose foreign bank accounts. He agreed to pay more than $1.1 million in forfeiture and penalties, and will be sentenced at a later date.

The American federal investigation of corruption linked to FIFA has indicted or taken guilty pleas from more than 40 people and marketing agencies linked to soccer in the Americas since 2015.

Lai’s case marked the first major step into Asia, and suggests other soccer officials potentially recruited by the Kuwait faction could be targeted.

The Asian election for FIFA seats on May 8 in Manama, Bahrain, is the same day as a FIFA Council meeting which the sheik will not attend. The FIFA congress is held in the city three days later.

Pope Calls for End to Violence, Respect for Human Rights, in Venezuela

Pope Francis called on Sunday for the respect of human rights and an end to violence in Venezuela, where nearly 30 people were killed in unrest this month.

Francis, speaking to tens of thousands of people in St. Peter’s Square for his weekly address, decried a “grave humanitarian, social , political and economic crisis that is exhausting the population”.

Venezuela’s opposition is demanding elections, autonomy for the legislature where they have a majority, a humanitarian aid channel from abroad to alleviate an economic crisis, and freedom for more than 100 activists jailed by President Nicolas Maduro’s government.

“I make a heartfelt appeal to the government and all components of Venezuelan society to avoid any more forms of violence, respect human rights and seek a negotiated solution …,” he said.

Supporters say Leopoldo Lopez, the jailed head of the hardline opposition Popular Will party, and others are political prisoners whose arrests symbolize Maduro’s lurch into dictatorship.

Maduro says all are behind bars for legitimate crimes, and calls Lopez, 45, a violent hothead intent on promoting a coup.

Vatican-led talks between the government and the opposition have broken down.

Francis told reporters on the plane returning from Cairo on Saturday that “very clear conditions” were necessary for the talks to resume.

Refugees Turn Skills From Home into New Business

Once they acclimate to their new environment, overcoming language, social and cultural barriers, refugees in the U.S. often thrive. Some translate their experiences into assets that are valuable to their new community, as did Parvin and Yadollah Jamalreza. VOA’s June Soh visited their popular tailoring shop in Charlottesville, Virginia.

Growth Slows in April in China’s Manufacturing Sector

Growth in China’s manufacturing sector slowed in April, official data showed Sunday, pointing to an unsteady recovery in the world’s second-largest economy. 

 

The monthly purchasing managers’ index by the Chinese Federation of Logistics and Purchasing fell to 51.2 in April, lower than the 51.8 recorded in March. 

 

The index is based on a 100-point scale on which numbers above 50 indicate expansion.

 

National Bureau of Statistics statistician Zhao Qinghe said in the release that April’s figure was affected by sluggish growth in market demand and supply, and slower expansion in imports and exports.

 

April’s index still represented a ninth consecutive month of expansion. 

 

China saw its slowest growth in nearly three decades in 2016. China’s huge manufacturing sector is seen as an important indicator for the wider Chinese economy. It has cooled gradually over the past six years as Beijing tries to pivot it away from heavy reliance on export-based manufacturing and investment toward consumer spending.

 

The official full-year economic growth target for 2017 is 6.5 percent. 

Turkey Fires Nearly 4,000 from Civil Service, Military, Gendarmerie

Turkey has dismissed nearly 4,000 people from its civil service, military, and gendarmerie, in what appears to be a purge related to last year’s attempted coup.

Turkey announced the move on Saturday, saying in the government’s Official Gazette that those let go include 1,127 employees of the justice ministry, made up of prison guards, academics and religious affairs ministry employees.

It appears to be one of the largest such purges since the coup attempt last July.

Since that time some 120,000 people have been suspended from their jobs in civil service and the private sector, and more than 40,000 people were arrested.

Also Saturday, Turkey announced it has banned television dating programs, and access to the Wikipedia online research tool. Ankara says Wikipedia has suggested Turkey is cooperating with terror groups.

Russians Protest Potential Putin Presidential Bid

The Russian opposition movement founded by exiled Kremlin critic and oligarch Mikhail Khodorkovsky protested President Vladimir Putin in 32 cities Saturday, despite the fact that authorities have banned the movement and declared it illegal, and police have raided its Moscow offices.

The main rally in Moscow had a few hundred protesters gathering in a park before moving to an administrative building nearby, where they submitted a letter urging Putin not to run for a fourth term in 2018.

In St. Petersburg, though, police arrested a few dozen protesters after about 200 of them gathered for an unsanctioned demonstration.

The demonstrations Saturday come on the heels of a large protest in March – the largest unauthorized rally in recent years – that saw more than 1,000 people arrested, including opposition leader Alexei Navalny.

Russian authorities have not simply warned opposition group Open Russia not to conduct any activities, but have blacklisted the group.  

The Russian prosecutor general’s office Wednesday declared Open Russia and two other groups founded by Khodorkovsky to be “undesirable” organizations.  The three organizations are the U.K.-registered Open Russia, the U.S.-based Institute of Modern Russia, and a social movement that also uses the Open Russia name.  

The “undesirable” designation bans them from operating inside Russia, with any violation punishable by fines and jail time.  

Police raided the group’s offices in Moscow Friday, prior to Saturday’s protest.

Maria Galitskaya, a spokeswoman for Open Russia told VOA she thinks the raid was politically motivated.

“One [of the police officers] started breaking open the doors of the rooms and desk drawers, though there was nothing illegitimate in the office,” she said.  “It is difficult to talk about the real reasons of the search but we connect that with tomorrow’s action and think that this is an effort at intimidation.”