Apple hoped to offset slowing demand for iPhones by raising the prices of its most important product, but that strategy seems to have backfired after sales sagged during the holiday shopping season.

Results released Tuesday revealed the magnitude of the iPhone slump – a 15 percent drop in revenue from the previous year. That decline in Apple’s most profitable product caused Apple’s total earnings for the October-December quarter to dip slightly to $20 billion.

Now, CEO Tim Cook is grappling with his toughest challenge since replacing co-founder Steve Jobs 7 years ago. Even as he tries to boost iPhone sales, Cook also must prove that Apple can still thrive even if demand doesn’t rebound. 

It figures to be an uphill battle, given Apple’s stock has lost one-third of its value in less than four months, erasing about $370 billion in shareholder wealth. 

Cook rattled Wall Street in early January by disclosing the company had missed its own revenue projections for the first time in 15 years. The last time that happened, the iPod was just beginning to transform Apple.

​”This is the defining moment for Cook,” said Wedbush Securities analyst Daniel Ives. “He has lost some credibility on Wall Street, so now he will have to do some hand-holding as the company enters this next chapter.” 

The results for the October-December period were slightly above the expectations analysts lowered after Cook’s Jan. 2 warning. Besides the profit decline, Apple’s revenue fell 5 percent from the prior year to $84 billion.

It marked the first time in more than two years that Apple’s quarterly revenue has dropped from the past year. The erosion was caused by the decline of the iPhone, whose sales plunged to $52 billion, down by more than $9 billion from the previous year. 

The past quarter’s letdown intensified the focus on Apple’s forecast for the opening three months of the year as investors try to get a better grasp on iPhone sales until the next models are released in autumn.

Apple predicted its revenue for the January-March period will range from $55 billion to $59 billion. Analysts surveyed by FactSet had been anticipating revenue of about $59 billion.

Investors liked what they read and heard, helping Apple’s stock recoup some of their recent losses. The stock gained nearly 6 percent to $163.50 in extended trading after the report came out.

“We wouldn’t change our position with anyone’s,” Cook reassured analysts during a conference call reviewing the past quarter and the upcoming months.

The company didn’t forecast how many iPhones it will sell, something Apple has done since the product first hit the market in 2007 and transformed society, as well as technology.

Apple is no longer disclosing how many iPhones it shipped after the quarter is completed, a change that Cook announced in November. That unexpected move raised suspicions that Apple was trying to conceal a forthcoming slump in iPhone sales – fears that were realized during the holiday season.

Cook traces most of Apple’s iPhone problems to a weakening economy in China, the company’s second biggest market behind the U.S. The company is also facing tougher competition in China, where homegrown companies such as Huawei and Xiaomi have been winning over consumers in that country with smartphones that have many of the same features as iPhones at lower prices.

Although a trade war started by President Donald Trump last year has hurt China and potentially caused some consumers there to boycott U.S. products, many analysts believe the iPhone’s malaise stems from other issues too.

Among them are higher prices – Apple’s most expensive iPhone now costs $1,350 – for models that aren’t that much better than the previous generation, giving consumers little incentive to stop using the device they already own until it wears out. Apple also gave old iPhones new life last by offering to replace aging batteries for $29, a 70 percent discount.

​”The upgrade cycle has extended, there is no doubt about that,” Cook conceded.

Apple is banking that investors will realize the company can still reap huge profits by selling various services on the 1.4 billion devices running on its software.

That’s one reason why Cook has been touting the robust growth of Apple’s division that collects commissions from paid apps, processes payments, and sells hardware warranty plans and music streaming subscriptions. Apple Music now has more than 50 million subscribers, second to Spotify’s 87 million streaming subscribers through September.

Apple is also preparing to launch a video streaming service to compete against Netflix, though Cook said he wasn’t ready to provide details Tuesday.

The company’s services revenue in the past quarter climbed 19 percent from the prior year to $10.9 billion – more than any other category besides the iPhone.
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The U.S. has imposed sanctions on Venezuela’s state-owned oil company, PdVSA, in an increased effort to pressure Nicolás Maduro to relinquish power to Juan Guaidó, now recognized by the U.S. and a number of other nations as the country’s legitimate president. VOA’s diplomatic correspondent Cindy Saine reports from the State Department.
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Brazil eyes management overhaul for Vale after dam disaster

Brazil’s government weighed pushing for a management overhaul at iron ore miner Vale SA on Monday as grief over the hundreds feared killed by a dam burst turned into anger, with prosecutors, politicians and victims’ families calling for punishment.

By Monday night, firefighters in the state of Minas Gerais had confirmed that 65 people were killed by Friday’s disaster, when a burst tailings dam sent a torrent of sludge into the miner’s offices and the town of Brumadinho.

There were still 279 people unaccounted for, and officials said it was unlikely that any would be found alive.

Brazil’s acting president, Hamilton Mourao, told reporters a government task force on the disaster response is looking at whether it could or should change Vale’s top management.

Public-sector pension funds hold several seats on the board of the mining company, and the government holds a “golden share” giving it power over strategic decisions.

“The question of Vale’s management is being studied by the crisis group,” said Mourao, who is serving as acting president for some 48 hours while President Jair Bolsonaro recovers from surgery. “I’m not sure if the group could make that recommendation.”

Shares of Vale, the world’s largest iron ore and nickel producer, plummeted 24.5 percent on Monday in Sao Paulo, erasing nearly $19 billion in market capitalization. A U.S. law firm filed a shareholder class action lawsuit against the company in New York, seeking to recover investment losses.

Igor Lima, a fund manager at Galt Capital in Rio, said the severe threats from the government and prosecutors drove the shares even lower than many analysts had estimated.

“This reaction has brought quite a lot of uncertainty about the size of the financial punishment Vale will have to handle,” he said.

Senator Renan Calheiros, who is in the thick of a Senate leadership race, on Twitter called for Vale’s top management to be removed urgently “out of respect for the victims … and to avoid any destruction of evidence.”

One of Vale’s lawyers, Sergio Bermudes, told newspaper Folha de S. Paulo that management should not leave the company and said that Calheiros was trying to profit politically from the tragedy.

Vale’s senior executives have apologized for the disaster but have not accepted responsibility, saying the installations met the highest industry standards.

Brazil’s top prosecutor, Raquel Dodge, said the company should be held strongly responsible and criminally prosecuted.

Executives could also be personally held responsible, she said.

Repeated Failures

The disaster at the Corrego do Feijao mine occurred less than four years after a dam collapsed at a nearby mine run by Samarco Mineracao SA, a joint venture by Vale and BHP Billiton, killing 19 and dumping toxic sludge in a major river.

While the 2015 Samarco disaster unleashed about five times more mining waste, Friday’s dam break was far deadlier as the wall of mud hit Vale’s local offices, including a crowded cafeteria, and tore through a populated area downhill.

“The cafeteria was in a risky area,” Renato Simao de Oliveiras, 32, said while searching for his twin brother, a Vale employee, at an emergency response station. “Just to save money, even if it meant losing the little guy. … These businessmen, they only think about themselves.”

As search efforts continued on Monday, firefighters laid down wood planks to cross a sea of sludge that is hundreds of meters wide in places, to reach a bus in search of bodies inside. Villagers discovered the bus as they tried to rescue a nearby cow stuck in the mud.

Longtime resident Ademir Rogerio cried as he surveyed the mud where Vale’s facilities once stood on the edge of town.

“The world is over for us,” he said. “Vale is the top mining company in the world. If this could happen here, imagine what would happen if it were a smaller miner.”

Nestor José de Mury said he lost his nephew and coworkers in the mud. “I’ve never seen anything like it, it killed everyone,” he said.

Vale Chief Financial Officer Luciano Siani told journalists on Monday evening that, despite interrupting operations in Brumadinho, the company would continue royalty payments to the municipality. He said Vale royalties made up about 60 percent of the town’s 140 million reais in revenue last year.

Siani said a donation of 100,000 reais will be made to each family that lost a relative in the disaster and said Vale would step up investments in dam safety.

Safety Debate

The board of Vale, which has raised its dividends over the last year, suspended all shareholder payouts and executive bonuses late on Sunday, as the disaster put its corporate strategy under scrutiny.

Since the disaster, courts have order a freeze on 11.8 billion reais of Vale’s assets to cover damages. State and federal authorities have slapped it with 349 million reais of administrative fines.

German insurer Allianz SE may have to cover some of the costs of the dam collapse, two people familiar with the matter told Reuters.

“I’m not a mining technician. I followed the technicians’ advice and you see what happened. It didn’t work,” Vale CEO Fabio Schvartsman said in a TV interview. “We are 100 percent within all the standards, and that didn’t do it.”

Many wondered if the state of Minas Gerais, named for the mining industry that has shaped its landscape for centuries, should have higher standards.

“There are safe ways of mining,” said Joao Vitor Xavier, head of the mining and energy commission in the state assembly. “It’s just that it diminishes profit margins, so they prefer to do things the cheaper way — and put lives at risk.”

Reaction to the disaster could threaten the plans of Brazil’s newly inaugurated president to relax restrictions on the mining industry, including proposals to open up indigenous reservations and large swaths of the Amazon jungle for mining.

Environment Minister Ricardo Salles said in a TV interview on Monday that Brazil should create new regulation for mining dams, replacing wet tailings dams with dry mining methods.

Mines and Energy Minister Bento Albuquerque proposed in a Sunday newspaper interview that the law be changed to assign responsibility in cases such as Brumadinho to the people responsible for certifying the safety of mining dams.

“Current law does not prevent disasters like the one we saw on Brumadinho,” he said. “The model for verifying the state of mining dams will have to be reconsidered. The model isn’t good.”

($1 = 3.7559 reais)
…

Food shocks, or sudden losses of crops, livestock or fish, due to the combination extreme weather conditions and geopolitical events like war, increased from 1961 to 2013, said researchers at The University of Tasmania in a report released Monday.

Researchers saw a steady increase in shock frequency over each decade with no declines.

The report, published in Nature Sustainability, said that protective measures are needed to avoid future disasters.

The authors studied 226 shocks across 134 countries over the last 53 years and, unlike previous reports, examined the connection between shocks and land-based agriculture and sea-based aquaculture.

“There seems to be this increasing trend in volatility,” said lead author Richard Cottrell, a PhD candidate in quantitative marine science at the University of Tasmania in Australia. “We do need to stop and think about this.”

Extreme weather events are expected to worsen over time because of climate change, the report said, and when countries already struggling to feed their populations experience conflict, the risk of mass-hunger increases.

The researchers found that about one quarter of food resources are accessed through trade, and many countries could not feed their populations without imports, making them particularly vulnerable to food shocks of trading partners.

As the frequency of shocks continues to increase, it leaves what Cottrell called “narrowing windows” between shocks, making it nearly impossible to recover and prepare for the next one.

The report said trade-dependent countries must find ways to store food in preparation for inevitable shocks elsewhere.

Countries must invest in “climate-smart” practices like diversifying plant and animal breeds and varieties and enhance soil quality to speed recovery following floods and droughts, the report said.

“We need to start changing the way we produce food for resiliency,” Cottrell said, adding that he had yet to see much action being taken by wealthy food-producing countries. “Because we are going to see a problem.”

The report was released the same day the United Nations Food and Agriculture Organization reported findings on conflict and hunger.

That report stated that around 56 million people across eight conflict zones are in need of immediate food and livelihood assistance.
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U.S. Treasury Secretary Steven Mnuchin said on Monday the United States expects significant progress this week in trade talks with Chinese Vice Premier Liu He, but the two sides will be tackling “complicated issues”, including how to enforce any deal.

The talks, scheduled for Wednesday and Thursday in Washington, will include a meeting between Liu and U.S. President Donald Trump and take place amid worsening tensions between the world’s two largest economies.

The U.S. Justice Department on Monday unsealed indictments against China’s top telecommunications equipment maker, Huawei Technologies Co., accusing it of bank and wire fraud to evade Iran sanctions and conspiring to steal trade secrets from T-Mobile US Inc.

China, meanwhile, formally challenged U.S. tariffs on Chinese goods in the World Trade Organization’s dispute settlement system, calling the duties a “blatant breach” of Washington’s WTO obligations.

U.S. Commerce Secretary Wilbur Ross insisted at a news conference that the Huawei indictments are “law enforcement actions and are wholly separate from our trade negotiations with China.”

The Huawei indictment came as a Chinese delegation including Liu and Vice Commerce Minister Wang Shouwen was already in Washington preparing for the talks, a person familiar with the discussions said.

Mnuchin, speaking at a White House news conference, said the two sides were trying to tackle “complicated issues,” including a way to verify enforcement of China’s reform progress in any deal with Beijing.

The Treasury chief, who will be among the top U.S. officials at the negotiating table, said Chinese officials had acknowledged the need for such a verification mechanism.

“We want to make sure that when we get a deal, that deal will be enforced,” Mnuchin said. “The details of how we do that are very complicated. That needs to be negotiated. But IP (intellectual property) protection, no more forced joint ventures, and enforcement are three of the most important issues on the agenda.”

Reuters reported earlier this month that U.S. officials were demanding regular reviews of China’s progress on pledged trade reforms, which would maintain the threat of tariffs long term.

Mnuchin added that there had been “significant movement” in the talks so far, and there will be around 30 days for further negotiations after the meetings in Washington on Wednesday and Thursday to reach an agreement before a March 2 deadline for increasing U.S. tariffs on Chinese goods.

Mounting concerns for both countries, including China’s slowing economy and Trump’s need for a political win, could prod both sides towards a “partial, interim deal,” said Eswar Prasad, a Cornell University trade professor and former head of the International Monetary Fund’s China department.

“There remains a vast distance separating the negotiating positions of the two sides, making a comprehensive and durable deal unlikely,” Prasad said.

China is unlikely to give much ground on industrial policy and state support for industries, but it could promise to improve intellectual property protections and enforcement.

However, persuading U.S. negotiators that these can be verified will be a “hard sell,” Prasad added.

The White House said that U.S. Trade Representative Robert Lighthizer would lead the talks for the American side, with participation from Mnuchin, Commerce Secretary Wilbur Ross, White House economic adviser Larry Kudlow and White House trade and manufacturing adviser Peter Navarro.

It said the meetings will take place in the Eisenhower Executive Office Building, part of the White House complex.
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Federal prosecutors on Monday unsealed two separate indictments against China’s Huawei Technologies, it’s chief financial officer and several affiliates for financial fraud and theft of American intellectual property.

In a 13-count indictment unsealed in federal court in Brooklyn, New York, prosecutors charged the Chinese tech giant, its top financial officer, Wanzhou Meng, and two affiliates with violating U.S. sanctions on Iran.

In the second indictment returned in Washington state, prosecutors charged Huawei and its U.S. affiliates with theft of trade secrets, wire fraud and obstruction of justice.

“This indictment shines a bright light on Huawei’s flagrant abuse of the law — especially its efforts to steal valuable intellectual property from T-Mobile to gain unfair advantage in the global marketplace,” said First Assistant U.S. Attorney Annette L. Hayes of the Western District of Washington.

The announcement comes amid trade tensions between Washington and Beijing and stepped up U.S. scrutiny of Chinese economic espionage. In November, the U.S. Justice Department announced an initiative to combat Chinese economic espionage and theft of American intellectual property. 

The new China initiative will be led by John Demers, assistant attorney general for national security, and carried out by a senior FBI official, five U.S. attorneys and several top department officials. Former attorney general Jeff Sessions said at the time that the initiative “will identify priority Chinese trade theft cases, ensure that we have enough resources dedicated to them, and make sure that we bring them to an appropriate conclusion quickly and effectively.”

Tensions between the U.S. and China escalated in December after Canadian authorities arrested Meng, Huawei’s chief financial officer and the daughter of its founder, for extradition to the U.S. Meng remains under house arrest in Canada. The U.S. has until Jan. 30 to file an extradition request with Canadian authorities.
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When Germany signed a deal last month to help Bolivia exploit its huge lithium reserves, it hailed the venture as a deepening of economic ties with the South American country. But it also gives Germany entry into the new “Great Game,” in which big powers like China are jostling across the globe for access to the prized electric battery metal.

The signing of the deal in Berlin on Dec. 12 capped two years of intense lobbying by Germany as it sought to persuade President Evo Morales’ government that a small German family-run company was a better bet than its Chinese rivals, according to Reuters interviews with German and Bolivian officials.

While the substance of the deal has been reported, how China, Bolivia’s biggest non-institutional lender and close ideological ally, lost out to Germany has not.

China has been quietly cornering the global lithium market, making deals in Asia, Chile and Argentina as it seeks to lock in access to a strategic resource that could power the next energy revolution.

China has invested $4.2 billion in South America in the past two years, surpassing the value of similar deals by Japanese and South Korean companies in the same period. Chinese entities now control nearly half of global lithium production and 60 percent of electric battery production capacity.

German officials told Reuters they championed the bid by ACI Systems GmbH because they saw an opportunity to lower Germany’s reliance on Asian battery makers and help its carmakers catch up with Chinese and U.S. rivals in the race to make electric cars.

The German push included a series of visits by German government officials who talked up the benefits of picking a German company. Bolivian officials also toured German battery factories, Bolivia’s deputy minister of High Energy Technologies, Luis Alberto Echazu, told Reuters.

German Economy Minister Peter Altmaier wrote a letter to Morales, an environmental champion, emphasizing Germany’s commitment to environment protection.

The lobbying effort was capped by a call last April between Altmaier and Morales, Bolivian, German and ACI officials said, without offering details of what was discussed.

German diplomats in La Paz also stressed high-level German government backing for the project, potential loan guarantees and the tantalizing prospect of supply agreements with German automakers, ACI and Bolivian officials told Reuters.

ACI’s win means Germany now has a foothold in the final frontier of South America’s so-called Lithium Triangle: the Uyuni salt flat in Bolivia, one of the world’s largest untapped deposits. The triangle comprises lithium deposits in an area that includes parts of Chile, Argentina and Bolivia.

“This partnership secures lithium supplies for us and breaks the Chinese monopoly,” Wolfgang Tiefensee, economy minister of the German state of Thuringia, an automotive manufacturing hub, told Reuters during a visit to the Bolivian capital La Paz in October.

Some risks

The venture in Bolivia is not without risk for ACI.

While Uyuni boasts at least 21 million tons of lithium, Morales has made nationalizing natural resources a key policy plank. Bolivian officials assured ACI that foreign investments in the Uyuni would be guaranteed should anything go awry, CEO Wolfgang Schmutz said in an interview.

In addition, unlike Chile’s sun-drenched Atacama salt flats, snow and rain slow the evaporation process needed to extract lithium from brine in Uyuni, and the landlocked nation will have to use a port in neighboring Chile or Peru to ship the metal out.

ACI, a family-run clean tech and machinery supplier, has no experience producing lithium. The company dismisses concerns from some lithium analysts about its ability to deliver, saying its small size gives it more flexibility to bring partners from different fields into the project.

Schmutz said the company has preliminary lithium supply deals with major German carmakers, but declined to provide details, citing non-disclosure agreements.

None of Germany’s top three carmakers — BMW, VW or Daimler — confirmed any agreement with ACI when contacted by Reuters.

BMW said it was in preliminary talks with ACI but had made no decision. VW said ensuring supplies and stable prices for raw materials was important, but noted lithium production in Bolivia was particularly demanding. Daimler board member Ola Kaellenius said: “If it’s happening, we’re not part of it.”

ACI said the carmakers that it was in talks with would not be able to confirm anything publicly until final deals were made.

The “Great Game” — lithium version

The global battle for control of lithium has been likened to the “Great Game,” the term coined to describe the struggle between Russia and Britain for influence and territory in Central Asia in the 19th century.

The Bolivian project includes plans to build a lithium hydroxide plant and a factory for producing electric car batteries in Bolivia. Once completed, the factory will help to fulfill Morales’ ambition to break with Bolivia’s historic role as a mere exporter of raw materials.

ACI has said it expects the lithium hydroxide plant to have an annual production capacity of 35,000-40,000 tons by the end of 2022, similar in output to plants operated by the world’s top lithium producers. Eighty percent of that would be exported to Germany.

ACI’s willingness to build a battery plant in Bolivia helped to seal the deal, said Echazu, the deputy minister.

The Chinese did not want to build a battery plant in Bolivia because they felt it made no economic sense to ship in materials to make the batteries only to re-import the final product to China, he said.

China’s embassy in La Paz declined to comment on the Uyuni project, but said the potential for future cooperation with Bolivia on lithium was “huge.”

Bolivia’s state-owned lithium producer YLB will own 51 percent of the new joint venture. Control of the project was another key demand of the Bolivians, who have bitter memories of foreign powers meddling in the former Spanish colony to seize its natural resources.

Juan Carlos Montenegro, the head of YLB, said geopolitics was a factor for Bolivia in deciding which companies to work with.

“We don’t want a single country to set the rules, we want balance and other world powers must help create that balance,” he said. “So for Bolivia, it’s important to have not just economic partners for markets, but geopolitical strategic partners.”

He stressed, however, that Bolivia had not been predisposed against China in deciding who had made the best offer.

“China-Bolivia relations are still good. China is present in every country in the world and impossible to avoid,” he said.
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The world of work is going through a major transformation. Technological advances are creating new jobs and at the same time leaving many people behind as their skills are no longer needed. A new study by the International Labor Organization’s Global Commission on the Future of Work addresses the many uncertainties arising from this new reality.

The International Labor Organization agrees artificial intelligence, automation and robotics will lead to job losses, as people’s skills become obsolete. But it says these same technological advances, along with the greening of economies also will create millions of new jobs.

Change is coming

The co-chair of the ILO Global Commission on the Future of Work, South African President Cyril Ramaphosa, says these advances offer many opportunities. But he warns people must harness the new technologies for the world of work and not be allowed to control the future shape of work.

“In the 20th century, we established that labor is not a commodity. In the 21st century, we must also ensure that labor is not a robot. We propose a human in command type of approach ensuring that technology frees workers and improves work rather than reducing their control,” he said.

Ramaphosa says change is inevitable and will happen whether people like it or not.

“We believe that we would rather be ahead of the curve rather than behind it and get the developments that are unfolding to shape us and to lead us. We need to be ahead so that we can shape the type of world of work that we want to see,” he said.

Human-centered conversation

In its study, the 27-member commission has adopted a human-centered approach. At this time of unprecedented change, ILO Director-General Guy Ryder says having people at the heart of this debate is critical for achieving a decent future of work.

“I think people, families, countries around the world are indeed grappling with the challenges and the opportunities of transformative change at work and the ambition of our commission … is, in a very concise and a very clear, and I think above all an action oriented way to try to set out a road map of how we can indeed seize the opportunities and deal satisfactorily with those challenges,” Ryder said.

Ten recommendations

After 15 months of work, the commission has come up with 10 recommendations for attaining decent and sustainable work. They include a call for a universal labor guarantee to protect workers’ rights, an adequate living wage and a safe workplace.

The commission proposes social protection measures from birth to old age. It says technological change must be managed to boost decent work. It says the gender gap should be closed and equality achieved in the workplace.

Ryder says the report puts a heavy emphasis on life-long learning and the renewal of skills throughout one’s working life.

“With the rapidity of change being what it is at work today,” he said, “it is simply not realistic to believe that the skills that we acquire at the beginning of our lives in our education, what we tend to think of as a period of our education will serve us throughout a working life. I mean, the shelf life of skills acquired at the beginning is a lot shorter than working life is going to be.”

Ryder notes the future number of jobs or the future of employment will not be determined alone by the autonomous forward march of technology. He says that will depend on the choices of policymakers.

The commission study indicates it is reasonable to assume that humans and robots will be able to live in harmony with one another — if humans are put in control of the forward application of technology.
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Impatient with the lack of World Trade Organization rules to cover the explosive growth of e-commerce, 76 countries and regions agreed on Friday to start negotiating this year on a set of open and predictable regulations.

The WTO’s 164 members were unable to consolidate some 25 separate e-commerce proposals at the body’s biennial conference at Buenos Aires in December, including a call to set up a central e-commerce negotiating forum.

In a gathering on the sidelines of the World Economic Forum in Davos, ministers from a smaller group of countries including the United States, the European Union and Japan, agreed to work out an agenda for negotiations they hope to kick off this year on setting new e-commerce rules.

“The current WTO rules don’t match the needs of the 21st century. You can tell that from the fact there are no solid rules on e-commerce,” Japan’s trade minister Hiroshige Seko told reporters in Davos.

Asked whether China could join the negotiations, Seko said: “What’s very important is to first set high-standard rules. If China could join, we would welcome that.”

The WTO failed to reach any new agreements at a ministerial conference in December, which ended in discord in the face of stinging U.S. criticism of the group. The stalemate dashed hopes for new deals on regulating the widening presence of e-commerce.

The emergence of the coalition willing to press ahead with new e-commerce rules, despite others’ reservations, reinforces a trend toward the fragmentation of WTO negotiations and away from global “rounds” of talks that have run out of steam.

“We will seek to achieve a high-standard outcome that builds on existing WTO agreements and frameworks with the participation of as many WTO members as possible,” members of the coalition said in a joint statement issued on Friday.

“We continue to encourage all WTO members to participate in order to further enhance the benefits of electronic commerce for businesses, consumers and the global economy.”

E-commerce, which developed largely after the WTO’s creation in 1995, was not part of the Doha round of talks that began in 2001 and eventually collapsed more than a decade later.

Many countries insist that Doha-round development issues must be dealt with before new issues can be tackled. But other countries say the WTO needs to move with the times, and note that 70 regional trade agreements already include provisions or chapters on e-commerce, according to a recent study.

U.S. President Donald Trump’s administration says the WTO is dysfunctional because it has failed to hold China to account for not opening up its economy as envisaged when Beijing joined in 2001.

To force reform at the WTO, Trump’s team has refused to allow new appointments to the Appellate Body, the world’s top trade court, a process which requires consensus among member states. As a result, the court is running out of judges, and will be unable to issue binding rulings in disputes.

 
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A Republican U.S. representative on Thursday introduced White House-drafted legislation that would give President Donald Trump more power to levy tariffs on imported goods in an effort to pressure other countries to lower their duties and other trade barriers.

The measure offered by Representative Sean Duffy, which has been touted by Trump administration officials, has already been declared unacceptable by some Republican senators, including Senate Finance Committee Chairman Chuck Grassley.

Democrats, who control the House of Representatives and its legislative agenda, are unlikely to grant Trump more executive authority, especially as a standoff over the partial government shutdown drags on. A spokesman for House Speaker Nancy Pelosi could not immediately be reached for comment.

The Reciprocal Trade Act, which Trump was expected to highlight in his now-delayed State of the Union address, would give him authority to levy tariffs equal to those of a foreign country on a particular product if that country’s tariffs are determined to be significantly lower than those charged by the United States.

It would also allow Trump to take into account non-tariff barriers when determining such tariffs.

Trump has invoked trade laws passed in the 1960s and 1970s to levy tariffs on steel and aluminum on national security grounds and has applied tariffs on imports from China based on U.S. findings that Beijing is misappropriating U.S. intellectual property through forced technology transfers and other means.

The United States has lower tariffs than many other countries, such as its 2.5 percent levy on imported passenger vehicles compared with the European Union’s 10 percent tariff.

But increasing them and applying them in a country-specific manner would effectively be a violation of the World Trade Organization’s most fundamental rule, that tariffs must be applied globally and cannot be raised unilaterally except in anti-dumping and anti-subsidy cases.

“The goal of the U.S. Reciprocal Trade Act is not to raise America’s tariffs but rather to encourage the rest of the world to lower theirs,” Duffy said in a statement, adding that the authority would be a negotiating tool to pressure other countries to lower their tariffs.
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European Trade Commissioner Cecilia Malmstrom said on Thursday that Europe should be more ambitious on issues such as climate change as a way to unite the bloc around a single vision.

“We need a great debate on the future of Europe,” she said in a wide-ranging debate at the World Economic Forum in Davos on the state of the continent and the rise of populism. Europeans vote for a new European parliament in May, at a time when citizens in many countries are backing populist parties.

Italy’s Foreign Minister Enzo Moavero Milanesi said the European Union had become like an archipelago of separate islands. “There is no real European vision at the moment, such as the vision which moved the founders. We need to find things that mobilize people, that make the heart beat faster, not just the wallet.”

 
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The European Union on Wednesday warned countries running lucrative schemes granting passports and visas to rich foreigners to toughen checks on applicants amid concern they could be flouting security, money laundering and tax laws.

EU countries have welcomed in more than 6,000 new citizens and close to 100,000 new residents through golden passport and visa schemes over the past decade, attracting around 25 billion euros ($28 billion) in foreign direct investment, according to anti-corruption watchdogs Transparency International and Global Witness.

In a first-ever report on the schemes, the EU Commission said that such documents issued in one country can open a back door to citizenship or residency in all 28 states.

Justice Commissioner Vera Jurova said golden visas are the equivalent of “opening the golden gate to Europe for some privileged people.”

“We want more guarantees related to security and anti-money laundering. We expect more transparency,” she told reporters in Brussels.

Bulgaria, Cyprus and Malta offer passports to investors without any real connections to the countries or even the obligation to live there by paying between 800,000 and 2 million euros ($909,000 to $2.3 million).

Twenty EU states offer visas in exchange for investment: Britain, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia and Spain.

 Investment can range from 13,500 euros to over 5 million euros ($15,350 to $5.7 million) in the form of capital and property investments, buying government bonds, one-time payments to the national budget or certain donations to charity.

Cyprus toughened up vetting procedures last year after it was accused of running a “passports-for-cash” scheme. It said passport numbers would be capped at 700 a year.

The Mediterranean island introduced the scheme in the wake of a 2013 financial crisis that brought the country to the brink of bankruptcy and forced it to accept a multibillion-euro rescue program from creditors. One Cyprus lawmaker has estimated that the scheme generated around 4.8 billion euros ($5.4 billion) between 2013 and 2016.

In compiling the report, Commission researchers struggled to obtain clear information about how the schemes are run, the number of applicants and where they come from, as well as how many are granted or refused visas. They noted that EU countries exchange little or no information about the applicants.

But the report did find that the security checks run on applicants are insufficient, and it recommends that EU computer databases like the one controlling Europe’s passport-free travel area be used routinely. Tougher “due diligence” controls are also needed to ensure that money laundering rules are not circumvented, while more monitoring and reporting could help tackle tax evasion.

Migration Commissioner Dimitris Avramopoulos said the Commission “will monitor full compliance with EU law.”

“The work we have done together over the past years in terms of increasing security, strengthening our borders and closing information gaps should not be jeopardized,” he warned.

The Commission proposed setting up a working group with EU member countries to study the schemes by year’s end.

The report angered Cyprus President Nicos Anastasiades, who underlined that, over the past five years, the number of citizenships granted by Cyprus under its scheme amounts to 0.3 percent of the EU’s total.

He said that Cyprus has the toughest citizenship criteria among all 20 countries, “and despite this, Cyprus is being targeted.”

“These double standards must finally come to an end and I want to be strict about this,” Anastasiades said.

Malta welcomed the Commission report, but said it has “reservations on a few issues,” notably that people it accepts under the schemes undergo far more rigorous checks than others granted residency or citizenship. It also underlined that physical presence in Malta is mandatory.

 
…

The hottest job of the future might be app developer. All you have to do is look at what you’re holding in the palm of your hand to figure out why.

“All of us use our cellphones probably more than we should be every day, and that is what is driving the demand for app developers,” said Stacy Rapacon, online editor at personal finance website Kiplinger.com, which has identified the best jobs for the future. “More apps mean more people to develop them.”

The median salary for app developers is $100,000, and the industry is expected to grow by 30 percent over the next decade, according to Kiplinger.

Nurse practitioner is the next best job on Kiplinger’s list. The median income for nurse practitioners is $103,000, and the field is expected to grow 35 percent between now and 2027.

“The field, in general, is booming because of the aging population,” Rapacon said. “Physical therapists, for example, have plenty of patients to work with, especially as people are growing older and health care treatments are improving. Older people who suffer from heart attacks or strokes or other ailments are able to survive those issues and then may need physical therapy or occupational therapy to continue being able to live independently.”

Half of the jobs in the Top 10 — including physician, physician assistant, health services manager and physical therapist — are in the health care field.

That’s likely because, for the first time in history, older people are going to outnumber children in the United States. By 2035, 78 million Americans will be over the age of 65, according to the U.S. Census Bureau.

Other occupations on the Top 10 Best Jobs of the Future list include financial manager; marketing research analyst (beneficiaries of the big-data boom); computer systems manager (most businesses use computers); and information security analyst (company computers need to be protected from hackers and others).

On the opposite end of the spectrum are the professions that are dying. These include watch repairer (fewer people are wearing time pieces); builder of prefab homes (a shrinking segment of the U.S. housing market); and textile machine operator — but there is an alternative for those currently working in manufacturing.

“What’s disappearing are the low-skill jobs,” Rapacon said. “So, if there’s a way you can apply more of a human touch to your work, if there’s a way in manufacturing to learn to manage some of the technology that is being put in place in these production processes, then you can still work in those industries and find opportunities.”

Other worst jobs for the future include fabric mender (replaced by technology); shoe machine operator (replaced by technology); and movie projectionist (fewer theaters and less demand for people to work in them).

Kiplinger used available data to develop its lists of the best and worst jobs of the future. However, the job market is changing rapidly and the available data on new and emerging industries is limited.

It’s always possible that the hottest jobs of the next decade haven’t even been invented.
…

The annual World Economic Forum opened today in Switzerland against a backdrop of anxieties over trade disputes, Brexit and a growth slowdown that some fear could tip the world economy. VOA’s Mariama Diallo reports.
…

Nigeria is to send a bill recommending a national minimum monthly wage rise of 50 percent to 27,000 naira ($88) to lawmakers in the national assembly, the labor minister said on Tuesday.

Cost of living is a major campaign issue ahead of a presidential election on 16 February and unions want the minimum wage to be raised from 18,000 naira.

Inflation stood at a seven-month high of 11.44 percent in December.

Disagreements over the minimum wage saw labor unions striking across Nigeria in September. President Muhammadu Buhari said in January that he would increase the minimum wage, but did not specify by how much.

“The 27,000 naira minimum wage is the benchmark,” Labor Minister Chris Ngige told reporters in Abuja on Tuesday. Ngige said some government workers could receive a higher salary of 30,000 naira a month.

The minister did not say when the bill would be sent to lawmakers. Any change would need to be signed into law by Buhari. ($1 = 306.3000 naira)
…

Brazilian President Jair Bolsonaro will headline the first full day of the World Economic Forum in Davos, Switzerland, with a speech to political and business leaders.

The nationalist leader is attending an event that has long represented business’s interest in increasing ties across borders. But globalism is in retreat as populist leaders around the world put a focus back on nation states, even if that means limiting trade and migration.

After Bolsonaro’s speech on Tuesday, German Chancellor Angela and Japanese Prime Minister Shinzo Abe will address the gathering on Wednesday.

But several key leaders are not attending to handle big issues at home: U.S. President Donald Trump amid the government shutdown, British Prime Minister Theresa May to grapple with Brexit talks, and France’s Emmanuel Macron to face popular protests.

 
…

Economists warn that political uncertainties and trade tensions could undermine global economic growth. Rights groups warn of the dangers of growing economic inequality. About 3,000 political and economic leaders have gathered in the Swiss resort town of Davos to discuss global business and economic trends at an annual economic forum. VOA’s Zlatica Hoke reports.
…

The United Nations is forecasting that the global economy will grow by around 3 percent in 2019 and 2020, but says waning support for multilateralism, escalating trade disputes, increasing debt and rising climate risks are clouding prospects

The United Nations is forecasting that the global economy will grow by around 3 percent in 2019 and 2020, but says waning support for multilateralism, escalating trade disputes, increasing debt and rising climate risks are clouding prospects.

The U.N.’s report on the World Economic Situation and Prospects 2019 also stresses that economic growth is uneven and often doesn’t reach countries that need it most.

Per capital income is expected to stagnate or see only marginal growth this year in parts of Africa, western Asia, Latin America and the Caribbean.

U.N. Secretary-General Antonio Guterres says in the forward of the report launched Monday that while economic indicators remain “largely favorable,” the report “raises concerns over the sustainability of global economic growth in the face of rising financial, social and environmental challenges.”   
…

British Prime Minister Theresa May unveiled her Brexit Plan B on Monday — and it looks a lot like Plan A.

May launched a mission to resuscitate her rejected European Union divorce deal, setting out plans to get it approved by Parliament after securing changes from the EU to a contentious Irish border measure.

May’s opponents expressed incredulity: British lawmakers last week dealt the deal a resounding defeat, and EU leaders insist they won’t renegotiate it.

Opposition leader Jeremy Corbyn of the Labour Party accused May of being in “deep denial” about her doomed deal.

“This really does feel a bit like Groundhog Day,” he said, referring to the 1993 film starring Bill Murray, in which a weatherman is fated to live out the same day over and over again.

Outlining what she plans to do after her EU divorce deal was rejected by Parliament last week, May said that she had heeded lawmakers’ concerns over an insurance policy known as the “backstop” that is intended to guarantee there are no customs checks along the border between EU member Ireland and the U.K.’s Northern Ireland after Brexit.

May told the House of Commons that she would be “talking further this week to colleagues … to consider how we might meet our obligations to the people of Northern Ireland and Ireland in a way that can command the greatest possible support in the House.

“And I will then take the conclusions of those discussions back to the EU.”

The bloc insists that it won’t renegotiate the withdrawal agreement.

“She is wasting time calling for a revision or clarification over the backstop,” said German politician Udo Bullmann, head of the socialist group in the European Parliament.

Amendments

While May stuck doggedly to her deal, she also acknowledged that control over Brexit wasn’t entirely in her hands. She noted that lawmakers will be able to amend her plan when it comes to a vote in the House of Commons on Jan. 29, exactly two months before Britain is due to leave the EU.

Groups of “soft Brexit”-backing lawmakers — who want to keep close economic ties to the bloc — are planning to use amendments to try to rule out a “no-deal” Brexit and make May ease her insistence that leaving the EU means quitting its single market and customs union.

Britain and the EU sealed a divorce deal in November after months of tense negotiations. But the agreement has been rejected by both sides of Britain’s divide over Europe. Brexit-backing lawmakers say it will leave the U.K. tethered to the bloc’s rules and unable to forge an independent trade policy. Pro-Europeans argue it is inferior to the frictionless economic relationship Britain currently enjoys as an EU member.

After her deal was thrown out last week by a crushing 432-202 vote in Parliament, May said she would consult with lawmakers from all parties to find a new way forward.

But Corbyn called the cross-party meetings a “stunt,” and other opposition leaders said the prime minister didn’t seem to be listening.

On Monday, May rejected calls from pro-EU lawmakers to delay Britain’s departure from the bloc or to hold a second referendum on whether to leave.

In a nod to opposition parties’ concerns, she promised to consult lawmakers, trade unionists, business groups and civil society organizations “to try to find the broadest possible consensus” on future ties between Britain and the EU, and said the government wouldn’t water down protections for the environment and workers’ rights after Brexit.

May also said the government had decided to waive a 65 pound ($84) fee for EU citizens in Britain who want to stay permanently after Brexit.

Guy Verhofstadt, the head of the EU Parliament Brexit steering group, welcomed news that the fee was being dropped for 3 million EU nationals, saying it had been a “key demand” for the EU legislature.

Irish border

May’s immediate goal is to win over pro-Brexit Conservatives and her party’s Northern Irish ally, the Democratic Unionist Party. Both groups say they won’t back the deal unless the border backstop is removed.

The backstop proposes to keep the U.K. in a customs union with the EU in order to avoid checks on the Irish border. It is meant as a temporary measure that would last until a permanent solution is found. But pro-Brexit U.K. lawmakers fear Britain could become trapped in it, indefinitely bound by EU trade rules.

Polish Foreign Minister Jacek Czaputowicz broke ranks with EU colleagues Monday by suggesting the problem could be solved by setting a five-year time limit on the backstop.

The idea got a cool reception. Irish Foreign Minister Simon Coveney said that “putting a time-limit on an insurance mechanism, which is what the backstop is, effectively means that it’s not a backstop at all.”

Britain’s political impasse over Brexit is fueling concerns that the country may crash out of the EU on March 29 with no agreement in place to cushion the shock. That could see tariffs imposed on goods moving between Britain and the EU, sparking logjams at ports and shortages of essential supplies.

Threat of ‘no deal’

Carolyn Fairbairn, director-general of the Confederation of British Industry, said Monday was “another bleak day for business.”

“Parliament remains in deadlock while the slope to a cliff edge steepens,” she said.

Several groups of lawmakers are trying to use parliamentary rules and amendments to May’s plan to block the possibility of Britain leaving the EU without a deal.

One of those legislators, Labour’s Yvette Cooper, said May was shirking her responsibility to the country by refusing to take “no deal” off the table.

“I think she knows that she should rule out ‘no deal’ in the national interest because it would be so damaging,” Cooper told the BBC. “She’s refusing to do so, and I think she’s hoping that Parliament will do this for her. That is not leadership.” 
…

China’s 2018 economic growth decelerated to 6.6 percent after activity in the final quarter of the year declined amid a tariff battle with Washington.

Data announced Monday showed economic growth cooled to a post-global crisis quarterly low of 6.4 percent in the three months ending in December from the previous quarter’s 6.5 percent.

Chinese economic growth has been slowing since regulators tightened controls on bank lending in late 2017 to rein in a debt boom.

Growth held up through much of 2018 despite President Donald Trump’s tariff hikes on Chinese goods in a fight over Beijing’s technology ambitions. But exports contracted in December as the penalties began to dampen demand.

Growth in investment, retail sales and other indicators also slowed.
…

The sale of Nile Perch fish maw in Uganda has become a lucrative business, especially for distributors. The fish maw – or dried swim bladder – is used as an aphrodisiac in China. But Ugandan fishermen bringing in the perch say they are being exploited while others are reaping the profits. Halima Athumani reports from Kampala.
…

U.S. President Donald Trump said on Saturday progress is being made toward a trade deal with China and denied that he was considering lifting tariffs on Chinese products.

“Things are going very well with China and with trade,” he told reporters, adding that he had seen some “false reports” indicating that U.S. tariffs on Chinese products would be lifted.

“If we make a deal certainly we would not have sanctions and if we don’t make a deal we will,” Trump said. “We’ve really had a very extraordinary number of meetings and a deal could very

well happen with China. It’s going well. I would say about as well as it could possibly go.”
…

World stock indexes jumped on Friday, with Wall Street posting a fourth straight week of gains, and the dollar had its first positive week since mid-December as optimism increased that an end is in sight to the U.S.-China trade conflict.

Stocks were boosted by a Bloomberg report that said China sought to raise its annual goods imports from the United States by more than $1 trillion in order to reduce its trade surplus to zero by 2024.    

That followed a report on Thursday that U.S. Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports. The Treasury denied Mnuchin had made any such recommendation.

Progress in trade talks

While the equity rally lifted all major sectors, trade-sensitive industrials posted among the biggest S&P 500 sector gains, up 1.9 percent on the day. The Philadelphia SE semiconductor index rose more than 2 percent and Germany’s exporter-heavy DAX was up 2.6 percent.    

“There seems to be some progress going in the trade negotiations,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

While that was the biggest influence, “we’ve still got momentum since the first of the year,” he said. “Some of the money that came out of the market at year-end, whether it was high frequency traders or tax-loss selling, is coming back in.”

Adding to strength in equities and supporting U.S. Treasury yields was data that showed U.S. manufacturing output increased the most in 10 months in December. 

Some strategists said relatively light equity trading volume this week indicated that some investors were still waiting on the sidelines.    

The Dow Jones Industrial Average rose 336.25 points, or 1.38 percent, to 24,706.35, the S&P 500 gained 34.75 points, or 1.32 percent, to 2,670.71 and the Nasdaq Composite added 72.77 points, or 1.03 percent, to 7,157.23.

The S&P 500 registered its biggest four-week percentage gain since October 2011. The index is now 8.9 percent below its Sept. 20 record close after dropping 19.8 percent below that level — near the 20-percent threshold commonly considered to confirm a bear market — on Christmas Eve.

STOXX 600 index is up

The pan-European STOXX 600 index rose 1.80 percent and MSCI’s gauge of stocks across the globe gained 1.23 percent.

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31 for another round of talks aimed at resolving the trade dispute between the world’s two largest economies.

Recent indicators show signs that the Chinese economy is losing momentum.

The trade optimism boosted the dollar against other major currencies.

The dollar index rose 0.31 percent, with the euro down 0.26 percent to $1.1365.

U.S. Treasury yields rose to three-week highs as investors piled back into Wall Street.  

Oil prices jump

Benchmark 10-year notes last fell 12/32 in price to yield 2.7878 percent, compared with 2.747 percent late on Thursday.

Oil prices jumped about 3 percent, rising after OPEC detailed specifics on its production-cut activity to ease global oversupply.   

Brent crude gained $1.52 to settle at $62.70 a barrel, or 2.48 percent higher. U.S. WTI crude futures added $1.73 to settle at $53.80 a barrel, or 3.32 percent up.

 
…

U.S. consumer sentiment tumbled in early January to its lowest level since President Donald Trump was elected more than two years ago as a partial shutdown of the federal government and financial market

volatility stoked fears of a sharp deceleration in economic growth.

The drop in confidence reported by the University of Michigan on Friday was the clearest sign yet that the impasse in Washington over Trump’s demands for $5.7 billion to help build a wall on the U.S. border with Mexico was negatively affecting the economy.

Trump has touted high consumer confidence as an indication of the good job he is doing on the economy. While consumer sentiment remains relatively high, the gathering clouds over the economy could make households

more cautious about spending, leading to slower growth. Consumer spending accounts for more than two-thirds of the U.S. economy.

“This report on consumer sentiment is the first concrete evidence that the economy is going to fall and fall hard if Washington does not end the shutdown,” said Chris Rupkey, chief economist at MUFG in New York. “It is going to be hard to see real GDP growth of more than 1 to 1½ percent in the first quarter if the consumer goes on a buying strike.”

The longest government shutdown in U.S. history has left 800,000 government workers without paychecks. Private contractors working for many government agencies are also without wages.

The University of Michigan said its consumer sentiment index fell 7.7 percent to a reading of 90.7 this month, the lowest reading since October 2016 and the steepest drop since September 2015. Economists had forecast a reading of a 97.0.

The survey’s measure of current economic conditions decreased to 110.0 from a reading of 116.1 in December. Its measure of consumer expectations tumbled to a reading of 78.3, the lowest since October 2016, from 87.0 in late December.

Several factors

The University of Michigan attributed the decline in sentiment to “a host of issues including the partial government shutdown, the impact of tariffs, instabilities in financial markets, the global slowdown, and the lack of clarity about monetary policies.”

It said that half of the survey’s respondents “believed that these events would have a negative impact on Trump’s ability to focus on economic growth.”

Economists estimate the partial shutdown of the government, which started Dec. 22, is subtracting as much as two-tenths of a percentage point from quarterly GDP growth every week.

Other surveys have also shown an ebb in business sentiment.

“Sentiment among both households and businesses has been coming off the sugar highs, which were caused by tax cut hopes at the beginning of the Trump presidency,” said Harm Bandholz, chief U.S. economist at UniCredit in New York.

U.S. financial markets shrugged off the fall in sentiment, with investors focusing on another report Friday that showed manufacturing output had surged by the most in 10 months in December, and on hopes for progress in the U.S.-China trade row.

Stocks on Wall Street rallied, while the dollar rose against a basket of currencies and U.S. Treasury prices fell.

Factory activity

The broad-based jump in manufacturing output in December reported by the Federal Reserve could allay fears of a sharp slowdown in factory activity.

Manufacturing activity, which accounts for about 12 percent of the economy, is slowing as some of the boost to capital spending from last year’s $1.5 trillion tax cut package fades.

In addition, a strong dollar and cooling growth in Europe and China are hurting exports. Lower oil prices are also slowing purchases of equipment for oil and gas well drilling.

Production at factories increased at a 2.3 percent annualized rate in the fourth quarter after expanding at a 3.7 percent pace in the July-September period. It increased 2.4 percent in 2018, the largest gain since 2012, after advancing 1.2 percent in 2017.

“While the manufacturing strength in December is a favorable signal for the economy, we should keep in mind that it came after soft results in earlier months,” said Daniel Silver, an economist at JPMorgan in New York. “A broad range of manufacturing surveys also have been weakening lately, so the strength in the manufacturing output in December may prove to be short-lived.”

Last month, motor vehicle production surged 4.7 percent after gaining 0.2 percent in November. Excluding motor vehicles and parts, manufacturing advanced a solid 0.8 percent last month after gaining 0.1 percent in November.

December’s surge in manufacturing output, together with a rise in mining production, offset a weather-related drop in utilities, leading to a 0.3 percent increase in industrial production. Industrial output rose 0.4 percent in November. It increased at a 3.8 percent rate in the fourth quarter after

notching a 4.7 percent gain in the third quarter.
…

The European Union insisted Friday that agriculture be kept out of the EU-U.S. trade negotiations, despite Washington’s wishes to include the vast sector, and said any overall deal will be limited in scope.

The EU Commission announced its pro posals for a negotiating mandate from the 28 member states and said that the EU negotiations will be “strictly focused on the removal of tariffs on industrial goods, excluding agricultural products.”

EU Trade Chief Cecilia Malmstrom also said that she is preparing a target list of American products it will hit with punitive tariffs if the Trump administration goes through with its threat to impose duties on European auto imports.

Last July, during a period of heightened tensions over trade, U.S. President Donald Trump and EU Commission President Jean-Claude Juncker agreed to start talks meant to achieve “zero tariffs” and “zero subsidies” on non-automotive industrial goods.

With the U.S. criticizing the Europeans for allegedly dragging their feet in the talks, Malmstrom said “the EU is committed to upholding its side of the agreement reached by the two Presidents.”

Any agreement would fall well short of the scope of the free trade deal that had been discussed in recent years — but paused in 2016 after Trump slammed such wide-ranging international deals as unfair to the U.S.

Instead, Malmstrom said, the deal both sides are now looking at could be concluded “quite quickly. We could finalize this and it would be beneficial to all of us.”

 
…

Workers around Tunisia went on strike Thursday to demand higher pay in a standoff with a government struggling to reduce unemployment, poverty and social tensions.

All flights in and out of the North African country’s main airport were cancelled, and schools nationwide were closed. Ports, public transport, hospitals and other public services were also disrupted.

Marathon last-minute negotiations between the government and union umbrella group UGTT failed to avert Thursday’s strike by public sector workers.

Thousands of people gathered at the national union headquarters in Tunis and marched through the capital’s main thoroughfare, carrying signs reading “Get Out!” and “The People Want the Fall of the Regime.” Rallies were also held in other cities.

Addressing the crowd in Tunis, the head of the UGTT, Noureddine Tabboubi, accused the government of “neglecting the workers” as runaway inflation has eroded purchasing power.

The International Monetary Fund has urged public sector salary freezes and other reforms in exchanges for loans to Tunisia’s struggling economy.

The union boss accused the government of being afraid to “move a little finger without the green light” of the IMF. Unions want an end to salary freezes for Tunisia’s 600,000 public sector workers.

President Beji Caid Essebsi has called for calm. Thursday’s strike comes after new tensions erupted last month when a journalist set himself on fire to protest unfulfilled promises of Tunisia’s 2011 Arab Spring revolution.

Similar rallies were held throughout the country, notably in southern provinces where the strike nearly paralyzed public services.

Prime Minister Youssef Chahed warned that the strike would result in a “considerable cost” to an already fragile economy and might push the government to seek further foreign loans with tough conditions.

Speaking on public television Wataniya 1 on Wednesday night, Chahed said, “We did everything possible to avoid the strike in presenting proposals that improve purchasing power while at the same time taking into account the country’s capabilities.”

He invited the unions back to the negotiating table after Thursday’s strike.

 
…

China’s economic czar, Vice Premier Liu He, will travel to the United States later this month for the second round of negotiations aimed at resolving the ongoing trade war between the global economic giants.

Commerce Ministry spokesman Gao Feng told reporters in Beijing Thursday that Liu will visit Washington on January 30-31. He was invited by U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.

U.S. negotiators were optimistic after the first round of talks in Beijing last week that the two sides would be able to resolve tariff disputes that have upset global markets.

The trade talks are the result of an agreement last month between President Trump and Chinese President Xi Jinping to stop the tit-for-tat tariff conflict between the two countries for 90 days starting on New Year’s Day.

The United States has long complained about access to the vast Chinese market and Beijing’s demands U.S. companies reveal their technology advances.

If no deal is reached by March 2, U.S. tariffs on $200 billion Chinese goods will rise from 10 percent to 25 percent.
…

John C. Bogle, who simplified investing for the masses by launching the first index mutual fund and founded Vanguard Group, died Wednesday, the company said. He was 89.

Bogle did not invent the index fund, but he expanded access to no-frills, low-cost investing in 1976 when Vanguard introduced the first index fund for individual investors, rather than institutional clients.

The emergence of funds that passively tracked market indexes, like the Standard & Poor’s 500, enabled investors to avoid the higher fees charged by professional fund managers who frequently fail to beat the market. More often than not, the higher operating expenses that fund managers pass on to their shareholders cancel out any edge they may achieve through expert stock-picking.

Mutual fund industry critic

Bogle and Vanguard shook up the industry further in 1977. The company ended its reliance on outside brokers and instead began directly marketing its funds to investors without charging upfront fees known as sales loads.

Bogle served as Vanguard’s chairman and CEO from its 1974 founding until 1996.

He stepped down as senior chairman in 2000, but remained a critic of the fund industry and Wall Street, writing books, delivering speeches and running the Bogle Financial Markets Research Center.

The advent of index funds accelerated a long-term decline in fund fees and fostered greater competition in the industry. Investors paid 40 percent less in fees for each dollar invested in stock mutual funds during 2017 than they did at the start of the millennium, for example. But Bogle continued to maintain that many funds were overcharging investors, and once called the industry “the poster-boy for one of the most baneful chapters in the modern history of capitalism.”

Bogle also believed that the corporate structure of most fund companies poses an inherent conflict of interest, because a public fund company could put the interests of investors in its stock ahead of those owning shares of its mutual funds. Vanguard has a unique corporate structure in which its mutual funds and fund shareholders are the corporation’s “owners.” Profits are plowed back into the company’s operations, and used to reduce fees.

$5 trillion under management

Vanguard, based in Valley Forge, Pennsylvania, manages $5 trillion globally. It helped usher in a new era of investing, and index funds have increasingly become the default choice for investors. In 2017, investors plugged $691.6 billion into index funds while pulling $7 billion out of actively managed funds, according to Morningstar.

Vanguard offers both index and managed funds, but remains best-known for its index offerings. Vanguard’s original index fund, now known as the Vanguard 500 Index, is no longer the company’s biggest, but remains among the company’s lowest-cost funds.

Bogle spent the first part of his career at Wellington Management Co., a mutual fund company, then based in Philadelphia. He rose through the ranks and, in his mid-30s, was tapped to run Wellington.

He engineered a merger with a boutique firm that was making huge sums, but was ousted after the stock market tanked in the early 1970s, wiping out millions in Wellington’s assets. He said he learned an important lesson in how little money managers really know about predicting the market.

Knack for math

Bogle suffered several heart attacks and underwent a heart transplant in 1996, the year he stepped down as CEO. He reached the mandatory retirement age of 70 for Vanguard directors in 1999 and left as senior chairman the next year.

Vanguard did not provide a cause of death. Philly.com is reporting he died of cancer, citing Bogle’s family.

John Clifton Bogle was born in May 1929 in Montclair, New Jersey, to a well-off family; his grandfather founded a brick company and was co-founder of the American Can Co. in which his father worked.

Bogle attended Manasquan High School in Manasquan, N.J, for a time, then got a scholarship to the prestigious all-boys Blair Academy in Blairstown, New Jersey. It was at Blair that Bogle discovered his knack for math. He graduated from Blair in 1947 and was voted most likely to succeed.

Bogle graduated from Princeton with a degree in economics in 1951. His thesis was on the mutual fund industry, which was then still in its infancy.

Bogle is survived by his wife, Eve, six children, 12 grandchildren and six great-grandchildren.
…

Female employees at Citigroup Inc around the world are paid just 71 percent of what men earn, the giant bank said on Wednesday, declaring its intentions to close its gender pay gap.

A Citigroup shareholder group that sought data on the pay gap said the bank is the first U.S. company to disclose such figures.

The U.S.-based bank employs more than 200,000 people in more than 100 countries, and more than half those employees are female, it said.

Tackling the 29 percent gap means increasing the number of women in senior and higher-paying roles, promoting women to at least 40 percent of assistant vice president through managing director jobs, Citigroup said in a statement.

Citigroup said it disclosed the data in response to a shareholder proposal from Arjuna Capital, an investment management firm.

The bank said its “raw pay gap” showed median pay for females globally was 71 percent of the median for men.

The raw gap measures the difference in median total compensation not adjusted for job function, level and geography.

With those adjustments, women are paid an average of 99 percent of what men are paid, it said.

“We have work to do, but we’re on a path that I’m confident will allow us to make meaningful progress,” Sara Wechter, head of human resources, said in a statement.

In the United States overall, women last year working full-time year-round earned 80 percent of what men earned, according to commonly cited data from the U.S. Census Bureau.

Congress outlawed pay discrimination based on gender in 1963, yet public debate over why wages still lag drastically for women has snowballed in recent years.

Globally, the World Economic Forum reported an economic gap of 58 percent between the sexes for 2016, costing the global economy $1.2 trillion annually.

Last January, Citigroup said it was increasing compensation for women and minorities to bridge pay gaps in the United States, the United Kingdom and Germany, becoming the first big U.S. bank to respond to a shareholder push to analyze and disclose its gender pay gap.

This past year it expanded its pay equity review beyond those three countries to its workforce globally, it said.

 
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The Ports of Los Angeles and Long Beach on Wednesday said they set all-time records for moving cargo in 2018, after U.S. retailers and manufacturers pulled forward imports to avoid higher tariffs on Chinese goods. The Port of Los Angeles, North America’s busiest container port, handled 9.46 million 20-foot equivalent units (TEUs) last year, the most in its 111-year history and 1.2 percent more than in 2017.

The neighboring Port of Long Beach processed more than 8 million TEUs for the first time last year, after container cargo totals jumped 7 percent from 2017.

“This is a rush of cargo based on political trade policy,” said Gene Seroka, executive director for the Port of Los Angeles, where direct trade with China accounted for just over half of the $284 billion in cargo the port handled in 2017. “Many people were fearful that we were going to go from a 10 percent tariff on certain items to 25 percent on January 1,” Seroka said.

The U.S. and China in late November agreed to a 90-day cease-fire in their bitter trade war. Under that deal, the U.S. will keep tariffs on $200 billion worth of Chinese imports at 10 percent.

That news came after many importers sped up orders for everything from apparel to auto parts to avoid the higher tariffs.

The cargo surge at Los Angeles/Long Beach and other major U.S. ports spurred disruptions that are rippling through the supply chain. U.S. warehouses are stuffed to the rafters, forcing some importers to delay port cargo pickups or to park containers in parking lots.

The National Retail Federation and Hackett Associates’ Global Port Tracker expect 2018 imports to jump 5.3 percent to a record 21.6 million TEUs. They also project cooling in the early months of 2019, as imports typically soften due to a post-holiday drop in demand and Lunar New Year factory shutdowns in Asia.

“We’ll see a little bit of a lull during Lunar New Year and thereafter. That in and of itself will allow us to catch up,” Seroka said.
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