If you buy a “Swiss-made” watch thinking it’s almost entirely produced in Switzerland, you might be mistaken.

The manufacture of components including dials, sapphire glass and cases is flourishing in China, Thailand and Mauritius and many of these end up in watches designated as “Swiss-made.”

Stricter rules came into force this year for watches bearing the coveted label on their dial and for which consumers are prepared to pay a premium.

The key requirement is that 60 percent of the manufacturing costs occur in Switzerland, up from a previous 50 percent threshold that applied only to the movement – the core mechanism.

The new rules were meant to make the label more credible in the eyes of consumers and to shield the industry from Asian competition.

But the change has made it difficult for the makers of cheaper Swiss watches to cut costs and weather a harsh industry downturn. And at the same time it has left the makers of more expensive brands enough leeway to shift a chunk of component supplies to Asia to protect their profit margins.

“Since the Swiss-made rules were tightened, we have fewer orders, not more,” said Alain Marietta of dialmaker Metalem, based in Swiss watchmaking hub Le Locle. “Some customers ask us to produce half of the components in China so we can be cheaper.”

He said he was concerned about losing customers but had stuck to his principles. “We want to offer a real Swiss made in Switzerland, otherwise for the people working in the watch industry here, it’ll mean slow death.”

Cost pressures

Affordable brands struggle to make money in Switzerland, where labor costs are high, margins are low and intense foreign competition, including from smartwatches, means they can’t raise prices.

Citychamp’s Rotary brand, which had used the label for decades, offers no “Swiss-made” pieces in its latest collections, saying the new rules made it hard to deliver value and quality.

Swatch Group, whose watches span all price points and which has extensive production facilities in Switzerland, said it was benefiting from the new rules it advocated. Chief Executive Nick Hayek said in a recent newspaper interview the group might soon be without competition in affordable “Swiss-made” watches.

Mondaine Group’s Ronnie Bernheim said the group’s brands, which include popular Swiss railways watch Mondaine, had also abandoned some models that would not have met the new criteria.

National Watch Federation (FH) statistics show the value of exported watches with a retail price of up to 600 Swiss francs ($610), fell by more than 11 percent in the first 10 months of 2017, versus an overall rise of 2.4 percent for all price tags.

Watches account for roughly 10 percent of overall Swiss exports and almost 57,000 people work in the industry.

Specialist companies have sprung up that offer brands the optimum product mix that will qualify for the “Swiss-made” tag.

EOS Watch Development, for example, promises on its website to deliver “Swiss-made” products that will help customers save money by combining Swiss and Far East suppliers.

Tough at the top

At the top end of the market where timepieces sell for thousands of francs, a severe downturn in demand translated into sharply lower profits in recent years.

Profitability at luxury group Richemont and more diversified Swatch Group is recovering now, helped by improving sales, but a tight focus on costs remains vital.

“Some brands in the high end would up to now never have considered buying components abroad for ethical reasons, but also because their excessive retail prices and resulting margin levels allowed it,” said a Swiss dialmaker who asked to remain anonymous.

“The slowing demand forced almost all brands to reposition their products and they benefit from the new law, which is very explicit, to improve their margins by partly sourcing abroad.”

He said his own dial company was mainly producing in Mauritius, where salaries are much lower, but a technical bureau performing some operations in Switzerland meant the dials qualified as “Swiss-made.”

Several sources said almost all watch case makers now imported sapphire glass from Asia. Luxury watchmakers generally keep their suppliers secret, but recently there have been some initiatives denouncing this lack of transparency.

Francois Aubry, a supplier turned watchmaker, recently launched a timepiece with “99.99 percent Swiss production,” publishing the list of all its suppliers, while the Swiss CODE41 watch project raised 543,000 francs on crowdfunding platform Kickstarter with a concept of total transparency on the mostly

Chinese origin of its components.

Industry body FH said it was its task to intervene if “Swiss-made” rules were not respected. It has decided to set up a task force to make sure everybody plays by the new rules, especially once a transition period expires at the end of 2018.

However, some watchmakers have already lost patience with the system.

High-end brand H.Moser & Cie this year dumped the “Swiss-made” label while declaring its own watches over 95 percent Swiss. It denounced the official rules as “too lenient, providing no guarantee, creating confusion and encouraging abuses.”

 
…

Chinese exports to Cuba have plunged this year in the latest sign of a worsening in the Communist-run island’s financial situation, which began in 2015 with the economic crisis in its top trading partner Venezuela.

Chinese exports to Cuba slumped 29.8 percent to $1 billion from January through October compared with the same period last year, according to Chinese customs.

Chinese exports peaked at a record $1.9 billion in 2015, nearly 60 percent above the annual average of the previous decade. They slipped slightly last year to $1.8 billion.

China sends a broad array of supplies to Cuba, from machinery and transportation equipment to raw materials, chemicals and food.

The Chinese commercial office in Havana said the decline was due to Cuba’s payment problems. China ranked as Cuba’s first trading partner in terms of goods in 2016, followed by Venezuela.

The economic crisis in Venezuela, lower revenue from commodity and related exports, the devastation wrought by Hurricane Irma and the Trump administration’s tightening of business and travel restrictions have left Cuba without cash to pay some suppliers and investment partners.

Western diplomats and businessmen estimate Cuban state-run banks, which must pay suppliers, have fallen behind by anywhere from $800 million to well over a billion dollars since 2015.

“China’s exports to Cuba are experiencing difficult times and the pressure continues for many businessmen due to the economic difficulties this Caribbean nation is going through,” Hong Xiao, economic and commercial counselor at the Chinese embassy, told Chinese business representatives attending a Havana trade fair last month, according to news agency Xinhua.

Cuba’s trade in goods last year was $12.6 billion, compared with $15 billion in 2015, more than 80 percent imports.

The cash crunch and lower oil supplies from Venezuela have forced the government to slash imports and reduce the use of fuel and electricity, helping tip its economy into recession in 2016 for the first time in nearly a quarter century.

The island’s economy relies on imports to fuel economic activity, so a drop in Chinese exports does not bode well.

“The fall in imports from China is a pattern more or less across the board and in part reflects the government’s efforts to balance revenues and pay debt,” said former Cuban central bank economist Pavel Vidal, now a professor at Universidad Javeriana Cali in Colombia.

“That means less consumer goods and supplies for the productive sector, which effects growth,” said Vidal, who expects little if any growth this year despite increased government spending and foreign investment.

The government had hoped for a 2 percent increase in the gross domestic product after last year’s contraction of 0.9 percent.
…

The government of Brazil’s President Michel Temer is far from assembling the coalition needed to pass a landmark pension reform, but potential supporters of the measure are now more organized, a key legislator said on Monday.

“We’re still enormously far (from having the needed votes), but we have a party leader committed, a party president committed, one party that’s set to commit,” Brazil’s lower house speaker, Rodrigo Maia, told journalists after an event in Rio de Janeiro.

Pension reform is the cornerstone policy in President Temer’s efforts to bring Brazil’s deficit under control. But the measure is widely unpopular with Brazilians, who are accustomed to a relatively expansive welfare net.

In order to curry support from Congress, Temer and his allies watered down their original proposal in November, requiring fewer years of contributions by private sector workers to receive a pension.

According to several government sources, Temer’s allies have grown more optimistic in the last week about the reform’s chances.

However, speed is essential for the bill’s passage. A congressional recess begins on Dec. 22, and lawmaking thereafter will be hampered by politics, as lawmakers ramp up their campaigns for 2018 elections.
…

The high-profile attendance of the leaders of Apple and Google at a Chinese conference promoting Beijing’s vision of a censored internet highlights the dilemma for Western tech companies trying to expand in an increasingly lucrative but restricted market.

The event in Wuzhen, a historic canal town outside Shanghai, marked the first time chiefs of two of the world’s biggest tech companies have attended the annual state-run World Internet Conference.

Apple CEO Tim Cook told the gathering as the conference opened Sunday that his company was proud to work with Chinese partners to build a “common future in cyberspace.”

His and Google CEO Sundar Pichai’s presence along with other business leaders, diplomats and other experts, some analysts say, helped bestow credibility on Beijing’s preferred version of an internet sharply at odds with Silicon Valley’s dedication to unfettered access.

Chinese President Xi Jinping vowed, in remarks to the conference conveyed by an official, that “China’s door to the world will never close, but will only open wider.”

As in previous years, organizers allowed attendees unrestricted access to the internet, contrary to official policy under which internet users face extensive monitoring and censorship and are blocked from accessing many overseas sites by the so-called Great Firewall of China.

Since Xi came to power in 2013, he has tightened controls and further stifled free expression, activists say.

Beijing’s restraints also extend to Western companies like Google, Twitter and Facebook, which have largely been shut out from the market, leaving it to homegrown internet giants like Tencent.

Apple has a large production base in China, which is one of its biggest markets, though domestic smartphone makers are catching up.

It has been criticized by some app developers for complying with Chinese censorship demands. In July, companies that let people get around the government’s internet filters – known as virtual private network providers – said their programs had been removed from Apple’s app store in China. One such company, ExpressVPN, said Apple was “aiding China’s censorship effort.”

Apple said that China began requiring this year that developers of virtual-private networks have a government license. The California-based tech giant said it had removed apps “in China that do not meet the new regulations.” Two Apple spokeswomen couldn’t be reached by phone for comment.

“The problem is that these companies are between a rock and a hard place,” said Rogier Creemers, a China researcher at Leiden University who attended the conference. They covet China’s huge market but if they do make it in, as in Apple’s case, local law “requires things that Western observers generally are uncomfortable with,” he said.

Cook’s speech drew a big crowd. He said the company supports more than 5 million jobs in China, including 1.8 million software developers who have earned more than 112 billion yuan ($17 billion).

It’s Apple’s responsibility to ensure that “technology is infused with humanity,” he said, avoiding mention of any sensitive topics.

Google shut the Chinese version of its search engine in 2010 over censorship concerns. Pichai has talked about wanting to re-enter China, and he told a panel discussion in Wuzhen that small and mid-sized Chinese businesses use Google services to get their products to other countries, according to a report in the South China Morning Post. A Google spokesman declined to comment.

The tech giants may have chosen to appear at the conference because the current political climate in the United States encourages a pragmatic approach in pursuing business regardless of other concerns, said Jonathan Sullivan, director of the University of Nottingham’s China Policy Institute.

“There has never been a time when an American company is less likely to be called out by the White House for pursuing a business-first approach,” said Sullivan.
…

A committee exploring the effects of recreational marijuana on Nevada’s gambling industry is wrestling with how the state’s casinos might deal with the pot business while not running afoul of federal law.

Lured by a potential economic impact in the tens of millions of dollars, Gov. Brian Sandoval’s Gaming Policy Committee is trying to figure out how casinos can host conventions and trade shows on marijuana.

The 12-member committee ended its meeting Wednesday without a formal decision on the matter, but Sandoval said he hopes to have committee recommendations for possible regulations by February.

The Nevada Gaming Commission has discouraged licensees in the past from becoming involved with the marijuana business, fearing legal backlash. Committee members have also voiced opposition to the idea of allowing marijuana use at resorts.

However, events like MJBizCon, a conference on various aspects of the marijuana growing industry, have drawn the attention of the gambling industry because of their strong turnout.

Cassandra Farrington, who started the conference, told the committee that the event brought about 18,000 people to the Las Vegas Convention Center last month and it’s only expected to grow. She noted that marijuana products are not allowed on the show floor, and people who violate that ruled are expelled.

Trade shows like Farrington’s conference can generate millions of dollars in tax revenue, said Deonne Contine, the director of the Nevada Department of Taxation. Contine told the committee that a show with about 15,000 people can produce a $28.2 million economic impact on the city.

Attorney Brian Barnes said any marijuana business in gambling facilities could be considered racketeering or money laundering under federal regulations.

“Marijuana business is illegal under virtually every aspect of federal law,” Barnes said.
…

Liz Whitehurst dabbled in several careers before she ended up on a Maryland farm, crating fistfuls of fresh-cut arugula in the November chill.

The hours were better at her nonprofit jobs. So were the benefits. But two years ago, Whitehurst, 32 — who graduated from a liberal arts college and grew up in the Chicago suburbs — abandoned Washington for a three-acre plot in Upper Marlboro, Maryland.

She joined a growing movement of highly educated, ex-urban, first-time farmers who are capitalizing on booming consumer demand for local and sustainable foods and who, experts say, could have a broad impact on the food system.

For only the second time in the last century, the number of farmers under 35 years old is increasing, according to the U.S. Department of Agriculture’s latest Census of Agriculture. Sixty-nine percent of the surveyed young farmers had college degrees — significantly higher than the general population.

This new generation can’t hope to replace the numbers that farming is losing to age. But it is already contributing to the growth of the local-food movement and could help preserve the place of midsize farms in the rural landscape.

“We’re going to see a sea change in American agriculture as the next generation gets on the land,” said Kathleen Merrigan, the head of the Food Institute at George Washington University and a deputy secretary at the Department of Agriculture under President Barack Obama. “The only question is whether they’ll get on the land, given the challenges.”

The number of farmers aged 25 to 34 grew 2.2 percent between 2007 and 2012, according to the 2014 USDA census, a period when other groups of farmers — save the oldest — shrank by double digits. In some states, such as California, Nebraska and South Dakota, the number of beginning farmers has grown by 20 percent or more.

New to farming

A survey that the National Young Farmers Coalition, an advocacy group, conducted with Merrigan’s help shows that the majority of young farmers did not grow up in agricultural families.

They are also far more likely than the general farming population to grow organically, limit pesticide and fertilizer use, diversify their crops or animals, and be deeply involved in their local food systems via community-supported agriculture (CSA) programs and farmers markets.

Today’s young farmers also tend to operate small farms of less than 50 acres, though that number increases with each successive year of experience.

Whitehurst took over her farm, Owl’s Nest, from a retiring farmer in 2015.

The farm sits at the end of a gravel road, a series of vegetable fields unfurling from a steep hill capped by her tiny white house. Like the farmer who worked this land before her, she leases the house and the fields from a neighboring couple in their 70s.

She grows organically certified peppers, cabbages, tomatoes and salad greens from baby kale to arugula, rotating her fields to enrich the soil and planting cover crops in the off-season.

On Tuesdays, Thursdays and Fridays, she and two longtime friends from Washington wake up in semidarkness to harvest by hand, kneeling in the mud to cut handfuls of greens before the sun can wilt them. All three young women, who also live on the farm, make their living off the produce Whitehurst sells, whether to restaurants, through CSA shares or at a D.C. farmers market.

Finances can be tight. The women admit they’ve given up higher standards of living to farm.

“I wanted to have a positive impact, and that just felt very distant in my other jobs out of college,” Whitehurst said. “In farming, on the other hand, you make a difference. Your impact is immediate.”

Larger impact

That impact could grow as young farmers scale up and become a larger part of the commercial food system, Merrigan said.

Already, several national grocery chains, including Walmart and SuperValu, have built out local-food-buying programs, according to AT Kearney, a management consulting firm.

Young farmers are also creating their own “food hubs,” allowing them to store, process and market food collectively, and supply grocery and restaurant chains at a price competitive with national suppliers.

That’s strengthening the local and organic food movement, experts say.

“I get calls all the time from farmers — some of the largest farmers in the country — asking me when the local and organic fads will be over,” said Eve Turow Paul, a consultant who advises farms and food companies on millennial preferences. “It’s my pleasure to tell them: Look at this generation. Get on board or go out of business.”

There are also hopes that the influx of young farmers could provide some counter to the aging of American agriculture.

The age of the average American farmer has crept toward 60 over several decades, risking the security of midsize family farms where children aren’t interested in succeeding their parents.

Between 1992 and 2012, the country lost more than 250,000 midsize and small commercial farms, according to the USDA. During that same period, more than 35,000 very large farms started up, and the large farms already in existence consolidated their acreage.

Midsize farms are critical to rural economies, generating jobs, spending and tax revenue. And while they’re large enough to supply mainstream markets, they’re also small enough to respond to environmental changes and consumer demand.

If today’s young farmers can continue to grow their operations, said Shoshanah Inwood, a rural sociologist at Ohio State University, they could bolster these sorts of farms — and in the process prevent the land from falling into the hands of large-scale industrial operations or residential developers.

“Multigenerational family farms are shrinking. And big farms are getting bigger,” Inwood said. “For the resiliency of the food system and of rural communities, we need more agriculture of the middle.”

Numbers are still small

It’s too early to say whether young farmers will effect that sort of change.

The number of young farmers entering the field is not nearly large enough to replace the number exiting, according to the USDA: Between 2007 and 2012, agriculture gained 2,384 farmers between ages 25 and 34 — and lost nearly 100,000 between 45 and 54.

And young farmers face formidable challenges to starting and scaling their businesses. The costs of farmland and farm equipment are prohibitive. Young farmers are frequently dependent on government programs, including child-care subsidies and public health insurance, to cover basic needs.

And student loan debt — which 46 percent of young farmers consider a “challenge,” according to the National Young Farmers Coalition — can strain already tight finances and disqualify them from receiving other forms of credit.

But Lindsey Lusher Shute, the executive director of the coalition, said she has seen the first wave of back-to-the-landers grow up in the eight years since she co-founded the advocacy group. And she suggested that new policy initiatives, including student loan forgiveness and farm transition programs, could further help them.

“Young farmers tend to start small and sell to direct markets, because that’s a viable way for them to get into farming,” Lusher Shute said. “But many are shifting gears as they get into it — getting bigger or moving into wholesale.”

Just last year, Whitehurst was approached by an online grocery service that wanted to buy her vegetables. Because While Owl’s Nest produces too little to supply such a large buyer on its own, the service planned to buy produce from multiple small, local farmers.

Whitehurst ultimately turned the deal down, however. Among other things, she feared that she could not afford to sell her vegetables at the lower price point the service wanted.

“For now, I’m focused on getting better, not bigger,” she said. “But in a few years, who knows? Ask me again then.”
…

The city of Zibo, China’s ceramics capital, is undergoing environmental shock therapy to clear its filthy skies and transform its economy — and not everyone is happy.

Much of Zibo’s sprawling industrial district has become a ghost town of shuttered factories, empty showrooms and abandoned restaurants after a cleanup campaign that began last year intensified this winter. Dozens of chimneys stand inactive.

“There used to be a lot of workers here, but now they are demolishing the entire place,” said a caretaker who gave his surname as Wei, pointing at the deserted warehouse of an abandoned factory he was guarding. “We have no idea what they will build here — that’s the boss’s decision.”

Zibo, home to 4.5 million people about 260 miles south of Beijing in Shandong province, is one of 28 northern Chinese cities targeted in an unprecedented six-month anti-pollution blitz as China scrambles to meet air quality targets.

The city is also at the heart of a wider, long-term government effort to upgrade China’s heavy industrial economy.

Once responsible for about a quarter of China’s ceramic output, mainly floor and wall tiles, Zibo has slashed capacity by 70 percent and shut more than 150 companies and 250 production lines as part of a ruthless war on pollution.

Surviving plants have rushed to comply with tough new standards, but business is still threatened by constant production suspensions ordered by the government, as well as natural gas shortages this winter as northern cities switch to the fuel from coal.

“It is a brave step that China is taking, but they have to take it,” said Alex Koszo, the founder of Vecor, a Hong Kong-based company that has built a joint-venture plant in Zibo to manufacture environmentally friendly tiles from fly ash.

“They have the will, the money, and access to technology, so I think we are looking at a very different Zibo, and a very different Shandong, in five to 10 years.”

The local environmental bureau declined to be interviewed, telling Reuters that cleanup efforts were “still at an early stage” — but changes are already conspicuous.

With old factories marked for demolition, new apartment blocks, shopping complexes and roads are being built. The city registered growth of 7.8 percent in the first three-quarters of this year, driven by the service sector, according to the local government. Displaced workers have shifted to construction sites and other industries like textiles, residents said.

Zibo has also established a “greentech” incubator in the old district and opened a new high-tech industrial park in order to attract companies and encourage innovation in ceramics.

But some local businessmen accuse Beijing of running roughshod over local industry and paying too little heed to circumstances on the ground, with one boss accusing inspectors of behaving like “imperial envoys.”

“There is a ring of 28 cities, and pollution only needs to appear in Beijing — even just medium-level pollution — and all our factories have to shut,” said the owner of a large local factory who declined to be named, fearing repercussions. “It doesn’t matter whether you meet the standards or not, you have to shut.”

Upgrades

Over the past decade, Zibo’s ceramics makers took advantage of closures elsewhere to drive up output and seize market share in China. Zibo’s tiles were used throughout China and exported around the world. In recent years, however, the industry was weighed down by poor quality and chronic overcapacity that eroded prices and exposed the sector to European Union anti-dumping measures.

Beijing’s war on pollution served as an opportunity to tackle those problems. Now, the mainstay of the local economy is a shadow of its former self.

With annual production capacity slashed to 246 million square meters, compared with 827 million square meters before the campaign began, the government hopes surviving manufacturers can upgrade and compete with higher-end producers.

“I think the steps the government is taking now will push the costs up, and therefore the price of the goods will be up and the quality will meet international standards,” said Koszo.

But the local factory owner said the campaign has inflicted long-term damage, eroding cost advantages and driving customers away.

“If Zibo was the only place producing tiles in the whole country, then it wouldn’t be a problem. But this is an unfair policy. They are closing us but not others,” he said.

Stop-start production

Environmental officials deny the pollution crackdown or the heightened vigilance of inspectors will cause deep harm to China’s economy, saying any losses would be compensated by the long-term benefits of clean investment.

But in Zibo, even environmentally compliant manufacturers are losing customers. The factory owner said he has lost 80 percent of domestic clients and half his overseas ones, with many frustrated by the stop-start nature of production.

Zibo’s ceramics companies are not only hit by emergency closures aimed at curbing smog. A year ago, they were ordered to switch from coal to gas, but suppliers are giving priority to residential winter heating.

“People are losing patience and manufacturing is shifting to the south,” said Bryan Vadas, director at the Tile Agencies Group in Australia, which used to source products for export from Zibo but has now started buying elsewhere.

Environment Minister Li Ganjie said this year that China would not adopt an “indiscriminate one-size-fits-all approach,” adding that companies have plenty of leeway to clean up and survive.

“Only enterprises that have no clear survival value, pollute heavily and have no hope of being rectified will be shut down,” Li said.

But local enterprises have struggled to cope with repeated policy changes, with industry entry requirements adjusted four times in less than two years, the local factory owner said.

“I have worked hard to build up this business,” he said.

“Personally, I just think the government should tell us directly that they don’t want us to stay in operation. There’s no need for them to torture me.”
…

Airlines canceled more flights leaving the Indonesian island of Bali on Saturday, citing forecasts of deteriorating flying conditions because of a risk of volcanic ash from the erupting Mount Agung volcano.

A Bali airport spokesman said the airport was operating normally, but airlines such as Jetstar and Virgin Australia had opted to cancel some flights.

“Bali flying conditions expected to be clear throughout the day, but forecast for tonight has deteriorated so several flights have been canceled,” Australian budget airline Jetstar said on its Twitter account Saturday.

Thousands stranded

The erupting volcano had closed the airport for much of this week, stranding thousands of visitors from Australia, China and other countries, before the winds changed and flights resumed. 

Twenty flights were canceled Friday evening because of concerns over ash. Some airlines, including Malaysia’s AirAsia, have said they would only operate out of Bali during the day, because the ash could impair visibility at night and wind conditions in the area were unpredictable.

Airlines avoid flying through volcanic ash because it can damage aircraft engines, clogging fuel and cooling systems, hampering pilot visibility and even causing engine failure.

There are also concerns over changing weather conditions with a tropical cyclone south of Java island affecting weather and wind in the area, including for Bali, the Indonesian Meteorological, Climatological and Geophysics agency said.

Consulates offer aid

Several foreign consulates have set up booths in the international departures area to assist stranded passengers.

Subrata Sarkar, India’s vice consul in Bali, told Reuters at the airport’s international departure area that they had helped around 500 passengers so far this week.

“We have advised citizens the volcano may erupt. We never say ‘please don’t come.’ But we have issued travel advisories. If it’s urgent business, then OK, but if it’s only tourism, then plans should be reconsidered,” Sarkar said.
…

President Donald Trump’s administration announced Friday that it won’t require mining companies to prove they have the financial wherewithal to clean up their pollution, despite an industry legacy of abandoned mines that have fouled waterways across the U.S.

The move came after mining groups and Western-state Republicans pushed back against a proposal under former President Barack Obama to make companies set aside money for future cleanup costs.

U.S. Environmental Protection Agency Administrator Scott Pruitt said modern mining practices and state and federal rules already in place adequately address the risks from mines that are still operating.

Requiring more from mining companies was unnecessary, Pruitt said, and “would impose an undue burden on this important sector of the American economy and rural America, where most of these jobs are based.”

The U.S. mining industry has a long history of abandoning contaminated sites and leaving taxpayers to foot the bill for cleanups. Thousands of shuttered mines leak contaminated water into rivers, streams and other waterways, including hundreds of cases in which the EPA has intervened, sometimes at huge expense.

The EPA spent $1.1 billion on cleanup work at abandoned hard-rock mining and processing sites across the U.S. from 2010 to 2014.

Since 1980, at least 52 mines and mine processing sites using modern techniques had spills or other releases of pollution, according to documents released by the EPA last year.

In 2015, an EPA cleanup team accidentally triggered a 3-million gallon spill of contaminated water from Colorado’s inactive Gold King mine, tainting rivers in three states with heavy metals including arsenic and lead.

The Obama-era rule was issued last December under court order after environmental groups sued the government to enforce a long-ignored provision in the 1980 federal Superfund law.

“It’s galling to see the Trump administration side with industry polluters over the America taxpayer,” said Bonnie Gestring with Earthworks, one of the plaintiffs in the case.

“We’ll see them back in court,” she added.

The proposal applied to hard-rock mining, which includes precious metals, copper, iron, lead and other ores. Coal mines already were required to provide assurances that they’ll pay for cleanups under a 1977 federal law

Hard-rock mining companies would have faced a combined $7.1 billion financial obligation under the dropped rule, costing them up to $171 million annually to set aside sufficient funds to pay for future cleanups, according to an EPA analysis.

The mining industry and members of Congress from Western states welcomed Friday’s announcement.

National Mining Association President Hal Quinn said the Obama proposal resulted from environmentalists using litigation to force the government into what he said was an unnecessary rule.

“Today’s action shows that reason can prevail,” Quinn said.

Hard-rock mines in the U.S. produced about $26.6 billion worth of metals in 2015, according to the association. Of those mines, the EPA had said 221 would be subject to the dropped rule.
…

Republicans pushed a nearly $1.5 trillion tax bill through the Senate early Saturday after burst of eleventh-hour horse trading, as a party starved all year for a major legislative triumph took a giant step toward giving President Donald Trump one of his top priorities by Christmas.

“Big bills are rarely popular. You remember how unpopular Obamacare was when it passed?” Senate Majority Leader Mitch McConnell, R-Ky., said in an interview, shrugging off polls showing scant public enthusiasm for the measure. He said the legislation would prove to be “just what the country needs to get growing again.”

Trump hailed the bill’s passage on Twitter, thanking McConnell and Senate Finance Committee Chairman Orrin Hatch, R-Utah. “Look forward to signing a final bill before Christmas!” the president wrote.

Senate approval came on a 51-49 roll call with Sen. Bob Corker, R-Tenn., the only lawmaker to cross party lines. The measure focuses its tax reductions on businesses and higher-earning individuals, gives more modest breaks to others and offers the boldest rewrite of the nation’s tax system since 1986.

​Corker balks at debt increase

Republicans touted the package as one that would benefit people of all incomes and ignite the economy. Even an official projection of a $1 trillion, 10-year flood of deeper budget deficits couldn’t dissuade GOP senators from rallying behind the bill.

“Obviously I’m kind of a dinosaur on the fiscal issues,” said Corker, who battled to keep the bill from worsening the government’s accumulated $20 trillion in IOUs.

The Republican-led House approved a similar bill last month in what has been a stunningly swift trip through Congress for complex legislation that impacts the breadth of American society. The two chambers will now try crafting a compromise to send Trump.

After spending the year’s first nine months futilely trying to repeal President Barack Obama’s health care law, GOP leaders were determined to move the measure rapidly before opposition Democrats and lobbying groups could blow it up. The party views passage as crucial to retaining its House and Senate majorities in next year’s elections.

​Democrats deride gift to wealthy

Democrats derided the bill as a GOP gift to its wealthy and business backers at the expense of lower-earning people. They contrasted the bill’s permanent reduction in corporate income tax rates from 35 percent to 20 percent to smaller individual tax breaks that would end in 2026.

Congress’ nonpartisan Joint Committee on Taxation has said the bill’s reductions for many families would be modest and said by 2027, families earning under $75,000 would on average face higher, not lower, taxes.

The bill is “removed from the reality of what the American people need,” said Senate Minority Leader Chuck Schumer, D-N.Y. He criticized Republicans for releasing a revised, 479-page bill that no one can absorb shortly before the final vote, saying, “The Senate is descending to a new low of chicanery.”

“You really don’t read this kind of legislation,” Sen. Ron Johnson, R-Wis., told home-state reporters, asked why the Senate was approving a bill some senators hadn’t read. He said lawmakers needed to study it and get feedback from affected groups.

Democrats took to the Senate floor and social media to mock one page that included changes scrawled in barely legible handwriting. Later, they won enough GOP support to kill a provision by Sen. Pat Toomey, R-Pa., that would have bestowed a tax break on conservative Hillsdale College in Michigan.

​Tax panel: $1 trillion added to debt

The bill hit rough waters after the Joint Taxation panel concluded it would worsen federal shortfalls by $1 trillion over a decade, even when factoring in economic growth that lower taxes would stimulate. Trump administration officials and many Republicans have insisted the bill would pay for itself by stimulating the economy. But the sour projections stiffened resistance from some deficit-averse Republicans.

But after bargaining that stretched into Friday, GOP leaders nailed down the support they needed in a chamber they control 52-48. Facing unyielding Democratic opposition, Republicans could lose no more than two GOP senators and prevail with a tie-breaking vote from Vice President Mike Pence, but ended up not needing it.

Leaders’ changes included helping millions of companies whose owners pay individual, not corporate, taxes on their profits by allowing deductions of 23 percent, up from 17.4 percent. That helped win over Wisconsin’s Johnson and Steve Daines of Montana.

People would be allowed to deduct up to $10,000 in property taxes, a demand of Sen. Susan Collins of Maine. That matched a House provision that chamber’s leaders included to keep some GOP votes from high-tax states like New York, New Jersey and California.

The changes added nearly $300 billion to the tax bill’s costs. To pay for that, leaders reduced the number of high-earners who must pay the alternative minimum tax, rather than completely erasing it. They also increased a one-time tax on profits U.S.-based corporations are holding overseas and would require firms to keep paying the business version of the alternative minimum tax.

Deal on DACA?

Sen. Jeff Flake, R-Ariz., who like Corker had been a holdout and has sharply attacked Trump’s capabilities as president, voted for the bill. He said he’d received commitments from party leaders and the administration “to work with me” to restore protections, dismantled by Trump, for young immigrants who arrived in the U.S. illegally as children. That seemed short of a pledge to actually revive the safeguards.

The Senate bill would drop the highest personal income tax rate from 39.6 percent to 38.5 percent. The estate tax levied on a few thousand of the nation’s largest inheritances would be narrowed to affect even fewer.

Deductions for state and local income taxes, moving expenses and other items would vanish, the standard deduction, used by most Americans, would nearly double to $12,000 for individuals and $24,000 for couples, and the per-child tax credit would grow.

The bill would abolish the “Obamacare” requirement that most people buy health coverage or face tax penalties. Industry experts say that would weaken the law by easing pressure on healthier people to buy coverage, and the nonpartisan Congressional Budget Office has said the move would push premiums higher and leave 13 million additional people uninsured.

Drilling would be allowed in the Arctic National Wildlife Refuge. Another provision, knocked out because it violated Senate budget rules, would have explicitly let parents buy tax-advantaged 529 college savings accounts for fetuses, a step they can already take but which anti-abortion forces wanted to inscribe into law. There were also breaks for the wine, beer and spirits industries, Alaska Natives and aircraft management firms.
…

Despite criticism from Washington over Cambodia’s crackdown on the opposition and accusations that the U.S. helped plot Prime Minister Hun Sen’s downfall, U.S. Ambassador William Heidt has said that America’s support for Cambodia’s economy will not be negatively impacted.

Heidt told VOA’s Khmer service on Wednesday that the embassy’s mission to strengthen the bilateral relationship with Cambodia remained of paramount importance.

“For me, the key next step is helping to connect Cambodia’s technology sector with the big American technology companies, which are investing throughout Southeast Asia, mostly in Singapore and Ho Chi Minh City,” he said.

“I think Cambodia is developing fast in technology, but it has not yet broken out of Cambodia, gotten a hook in with the regional technology network. And, that’s what I am going to do next and I hope to do that in the first half of next year,” he added.

Economic growth

The United States is focused on promoting Cambodian economic growth to connect U.S. investors with Cambodian technology companies, Heidt said.

The U.S. Embassy and Cambodian government have been at odds over accusations that Washington conspired with the opposition Cambodia National Rescue Party (CNRP) to overthrow Hun Sen in a so-called “color revolution” — a reference to attempts by pro-democracy movements to overthrow autocratic regimes in parts of the former Soviet Union, the Balkans and the Middle East.

The U.S. Embassy has denied allegations of interference.

Heidt said the allegations were categorically false.

“I don’t spend a ton of time on this issue because there’s really no more for us to say. And, I mean, nobody, nobody believes this in America. Nobody in our government, nobody in our society,” he said. “We, on the American side, feel very strongly that we have been a great partner for Cambodia. We really helped Cambodia to develop in many ways and we want to keep doing that.”

Hun Sen, one of China’s closest regional allies, is a former Khmer Rouge officer who has ruled the southeast Asian country for more than three decades. He has intensified his rhetoric against the United States amid a crackdown on opponents and the media before next year’s general election.

Earlier this month, Cambodia banned the opposition party after arresting its leader, Kem Sokha, and charging him with treason in September.

Heidt said he felt a deep regret at the government’s decision to move to dissolve the CNRP, which has led the White House to reconsider its foreign relations with Cambodia. He said the Trump administration was reassessing Cambodia’s eligibility for preferential trade agreements.

“Since I came here, let’s be honest, the Cambodian government has taken a lot of steps against the government of the United States,” he said. “They cut our military exercises, they threw [a] detachment out of the country, they made all of those accusations against us related to the political situation.

“I feel like there has never been an honest desire by the Khmer government to have a good relationship with the United States,” Heidt added.

Some changes needed

Phay Siphan, government spokesman, said Phnom Penh did not desire to sour the relationship with the United States, but added that there were “some little activities” that needed to end in order for relations to improve, including suggesting Cambodia was “pro-China.”

Hun Sen is in China — Cambodia’s biggest donor and lender — this week for a Communist Party conference in Beijing, where he will meet Chinese President Xi Jinping.

Actions seen as anti-U.S. have included Hun Sen’s request that the U.S. forgive a $505 million debt for food and agricultural goods. Cambodia’s Lon Nol government borrowed the money in the 1970s, during its civil war with the Khmer Rouge. China wrote off debts incurred in the 1970s by the Khmer Rouge regime about 15 years ago.

In January, Phnom Penh suspended joint military exercises with the U.S., citing the local June elections as the cause, while rejecting suggestions that its decision was related to military and financial ties with China.

Most recently, after the U.S. announced on November 17 that it was ending funding for the upcoming election, the pro-government Fresh News website reported that Hun Sen said in a speech to garment workers that he welcomed the cut in U.S. aid, and urged Washington to cut all assistance.
…

Egyptian billionaire businessman Naguib Sawiris condemned on Friday a crackdown on graft in Saudi Arabia, saying the purge had undermined the rule of law in the Kingdom and would deter investment.

In unusually outspoken comments, Sawiris, a well-known business figure in North Africa and the Middle East, also accused Qatar of destabilizing the region, and said there were only a handful of Arab nations that were safe to invest in.

Saudi security forces rounded up dozens of members of the country’s political and business elite last month on the orders of Crown Prince Mohammed bin Salman in what was billed as a war on rampant corruption.

Sawiris, whose family’s Orascom businesses have interests ranging from construction to telecommunications, said influential figures should stand up to the Crown Prince, whom he referred to as “this young man”.

“We need to tell him ‘no’. There is the rule of law and order. You have a transparent process. Where is the court? What is the evidence? Who is the judge?” he told a conference in Rome, questioning the Crown Prince’s motives.

“Are you not part of this? Where did you get your money? Didn’t you do this? What is the system?” he said.

Prince Mohammed has said Saudi Arabia needs to modernize and has warned that without reform, the economy will sink into a crisis that could fan unrest. Critics say his purge is aimed at shoring up his own power base, which the Saudi government denies.

Sawiris said “everyone with a conscience” should speak out, but added that many were too frightened to do so.

“Everyone is scared because they have interests there, they have the oil, they have the money. But you need to have a conscience. When I say this, I know I am done-for in Saudi Arabia. No more business (there). Ok, I don’t care.”

A monthly Reuters poll published on Thursday showed Middle East fund managers had become more positive towards Saudi Arabian equities after an initial market sell-off following the launch of the anti-graft drive.

But Sawiris, who is not known to have major investments in Saudi Arabia, predicted business leaders would steer clear of the country in future.

“I think after what happened in Saudi Arabia, no one will invest there,” he said.

Sawiris also took aim at Iran, accusing the country of interfering in the affairs of its neighbors. He likewise denounced Qatar, saying it was funding terror groups.

“Why don’t they take care of the prosperity of their own people instead of financing crazy clergymen who push young men to go and kill?” he said.

A group of Arab nations led by Saudi Arabia and Egypt cut ties with Qatar in June, accusing it of fomenting instability. Qatar, a tiny Gulf state, has denied supporting militants.

Asked where was safe to invest in the Arab world, Sawiris mentioned Egypt, Morocco, Tunisia, Jordan and Sudan, but jokingly dismissed Lebanon.

“The problem with Lebanon is they are all sharks and they leave nothing to anyone. Only a crazy person would invest in Lebanon,” he said.

 
…

The United States has formally told the World Trade Organization (WTO) that it opposes granting China market economy status, a position that if upheld would allow Washington to maintain high anti-dumping duties on Chinese goods.

The statement of opposition, made public on Thursday, was submitted as a third-party brief in support of the European Union in a dispute with China that could have major repercussions for the trade body’s future.

China is fighting the EU for recognition as a market economy, a designation that would lead to dramatically lower anti-dumping duties on Chinese goods by prohibiting the use of third-country price comparisons.

The U.S. and EU argue that the state’s pervasive role in the Chinese economy, including rampant granting of subsidies, mean that domestic prices are deeply distorted and not market-determined.

A victory for China before the WTO would weaken many countries’ trade defenses against a flood of cheap Chinese goods, putting the viability of more western industries at risk.

U.S. Trade Representative Robert Lighthizer told Congress in June that the case was “the most serious litigation we have at the WTO right now” and a decision in China’s favor “would be cataclysmic for the WTO.”

Lighthizer has repeatedly expressed frustration with the WTO’s dispute settlement body and has called for major changes at the organization.

The USTR brief, which follows a Commerce Department finding in October that China fails the tests for a market economy, argues that China should not automatically be granted market economy by virtue of the expiration of its 2001 accession protocol last year.

“The evidence is overwhelming that WTO members have not surrendered their longstanding rights … to reject prices or costs that are not determined under market economy conditions in determining price comparability for purposes of anti-dumping comparisons,” the brief concludes.

The move comes as trade tensions between Washington and Beijing are increasing as the Trump administration prepares several possible major trade actions, including broad tariffs or quotas on steel and aluminum and an investigation into Chinese intellectual property misappropriation.

Chinese Foreign Ministry spokesman Geng Shuang told a regular news briefing on Friday that some countries were trying to “skirt their responsibility” under WTO rules.

“We again urge relevant countries to strictly honor their commitment to international principles and laws, and fulfill their agreed upon international pacts,” Geng said.

The Commerce Department on Tuesday launched the first government-initiated anti-dumping and anti-subsidy investigations in decades on Chinese aluminum sheet imports.

U.S. officials say that 16 years of WTO membership has failed to end China’s market-distorting state practices.

“We are concerned that China’s economic liberalization seems to have slowed or reversed, with the role of the state increasing” David Malpass, U.S. Treasury undersecretary for international affairs, told an event in New York on Thursday.

“State-owned enterprises have not faced hard budget constraints and China’s industrial policy has become more and more problematic for foreign firms. Huge exports credits are flowing in non-economic ways that distort markets,” Malpass said.

The brief submitted to the WTO also argues that China should be treated the same way as communist eastern European countries, including Poland, Romania and Hungary were when they joined the WTO’s predecessor organization, the General Agreement on Tariffs and Trade, in the late 1960s and early 1970s.

A senior U.S. official said those countries eventually earned market economy status as evidence of state subsidies and state distortions waned. He added that going forward, WTO members wishing to use third-country price comparisons against Chinese imports would need to keep presenting evidence of economic distortions.

 
…

The 2017 Atlantic hurricane season has finally ended

In all, 17 named storms swept across the Atlantic this year and 10 rose to hurricane status. But the season will be remembered for the deadly trio — Harvey, Irma and Maria — that brought death and destruction to Caribbean nations and the southern U.S.

This was the first year on record in which the continental United States was hit by two Category 4 hurricanes, Harvey and Irma.

Harvey made landfall in South Texas on August 25, leading to days of downpours that dumped an unprecedented 152 centimeters (60 inches) of rain. It was the greatest rainfall amount recorded from a single storm in U.S. history.

Harvey also damaged or destroyed about 200,000 homes as the storm system flooded much of Houston and smaller coastal communities.

Then, on September 11 came Irma — the strongest storm on record in the Atlantic, outside the Gulf of Mexico and the Caribbean Sea. With maximum winds of nearly 300 kilometers an hour, Irma destroyed the Caribbean island of Barbuda, shredded vast sections of the Virgin Islands and knocked out power in much of Florida.

September also saw the arrival of Hurricanes Jose, Katia and Lee, before Category 4 Hurricane Maria slammed into Puerto Rico on September 20.

It was the U.S. territory’s strongest hurricane landfall since 1928. With sustained winds of 250 kilometers per hour, Maria knocked out power across the island, causing the biggest blackout in U.S. history. The island is still struggling to restore power as millions remain without electricity two months later.

Bloomberg News reports the 2017 hurricane season was the most expensive on record, with an estimated $202.6 billion in damage. The National Oceanic and Atmospheric Administration is expected to release the official damage tally early next year.
…

Germany, Europe’s most robust economy, said Thursday that its unemployment rate fell to 5.3 percent in November, the lowest figure since West and East Germany were unified in 1990.

Even as Chancellor Angela Merkel and other Berlin politicians struggle to form a coalition government, the German economy remains strong, with a months-long dip in the country’s jobless rate and solid demand for German products from other countries.

The German report came as Eurostat, the statistics agency for the European Union, said the jobless rate for the 19-nation eurozone bloc that uses the euro currency dropped to 8.8 percent in October. It was the lowest figure since January 2009, when Europe and countries across the world were in the midst of a steep recession.

The German and European jobless rates trail those in the United States, the world’s largest economy, where unemployment has dropped to 4.1 percent, a 17-year low. But the U.S. and European numbers point to steady improvement that had been slow to emerge after the devastating job losses and high unemployment seven to nine years ago.

Eurostat said more than 14 million people remained out of work, but that was 1.5 million fewer than a year ago. In Spain, the jobless rate has been cut from about 25 percent to 16.7 percent.

European Central Bank President Mario Draghi said that while wages still are not increasing much, they could rise in the coming months as the continent’s economy continues to rebound.

Patrick Chovanex, chief strategist at New York-based Silvercrest Asset Management, told VOA the U.S. is in the eighth year of its recovery.

“It’s a recovery that has kind of waxed and waned,” he said. “One of the things that has been happening over the past couple years is that different parts of the economy were waxing and waning out of sequence with one another. So housing would be strong while manufacturing would be weak, and then vice versa. Every so often they happen to coincide.

“Right now we’re seeing a pattern of several elements of the economy being strong at once. Hopefully, that will continue.”
…

OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signalling it could exit the deal earlier if the market overheats.

Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn’t flip into a deficit too soon, prices don’t rally too fast and rival U.S. shale firms don’t boost output further.

The producers’ current deal, under which they are cutting supply by about 1.8 million barrels per day (bpd) in an effort to boost oil prices, expires in March.

Two OPEC delegates told Reuters the group had agreed to extend the cuts by nine months until the end of 2018, as largely anticipated by the market.

OPEC also decided to cap the output of Nigeria at around 1.8 million bpd but had yet to agree a cap for Libya. Both countries have been previously exempt from cuts due to unrest and lower-than-normal production.

The Organization of the Petroleum Exporting Countries has yet to meet with non-OPEC producers led by Russia, with the meeting scheduled to begin after 1500 GMT.

Before the earlier, OPEC-only meeting started at the group’s headquarters in Vienna on Thursday, Saudi Energy Minister Khalid al-Falih said it was premature to talk about exiting the cuts at least for a couple of quarters and added that the group would examine progress at its next meeting in June.

“When we get to an exit, we are going to do it very gradually… to make sure we don’t shock the market,” he said.

The Iraqi, Iranian and Angolan oil ministers also said a review of the deal was possible in June in case the market became too tight.

International benchmark Brent crude rose more than 1 percent on Thursday to trade near $64 per barrel.

Capping Nigeria, Libya

With oil prices rising above $60, Russia has expressed concerns that such an extension could prompt a spike in crude production in the United States, which is not participating in the deal.

Russia needs much lower oil prices to balance its budget than OPEC’s leader Saudi Arabia, which is preparing a stock market listing for national energy champion Aramco next year and would hence benefit from pricier crude.

“Prices will be well supported in December with a large global stock draw. The market could surprise to the upside with even $70 per barrel for Brent not out of the question if there is an unexpected interruption in supply,” said Gary Ross, a veteran OPEC watcher and founder of Pira consultancy.

The production cuts have been in place since the start of 2017 and helped halve an excess of global oil stocks although those remain at 140 million barrels above the five-year average, according to OPEC.

Russia has signaled it wants to understand better how producers will exit from the cuts as it needs to provide guidance to its private and state energy companies.

“It is important… to work out a strategy which we will follow from April 2018,” Russian Energy Minister Alexander Novak said on Wednesday.
…

Mexican Economy Minister Ildefonso Guajardo said Wednesday that Trump administration demands for a U.S.-specific automotive content requirement in NAFTA were “not viable,” and he declined to specify when Mexico would formally respond.

At a news conference following a series of meetings with senior U.S. trade officials and lawmakers in Washington, Guajardo said that Mexico was still trying to understand the U.S. proposals that would require 50 percent of vehicles’ value content to be produced in the United States as part of updated North American Free Trade Agreement rules.

“I was clear that the domestic content [requirement] is something that is not viable at this point,” Guajardo said.

He added that Mexico would eventually make a counterproposal on automotive rules of origin, but declined to specify the timing of that response.

His visit was partly aimed at bolstering support in Congress for NAFTA at a time when tax legislation is consuming lawmakers’ attention and U.S. Trade Representative Robert Lighthizer is growing frustrated with the slow pace of NAFTA talks.

U.S. President Donald Trump has repeatedly threatened to scrap the trade agreement if it cannot be renegotiated to shrink U.S. trade deficits and return manufacturing jobs to the United States.

House Speaker Paul Ryan said after meeting with Guajardo earlier  Wednesday that congressional Republicans “are determined” to strengthen trade ties with Mexico.

“I expect the administration will continue to work with us to modernize NAFTA and bolster our robust relationship with such an important ally,” Ryan said in a statement.

US waiting on counterproposals

After the last NAFTA negotiating round ended last week, Lighthizer complained that Mexico and Canada had not offered counterproposals to its demands on autos and other major areas aimed at “rebalancing” the trade pact.

The United States also is seeking to lift the regional value content requirement for NAFTA-produced cars and trucks to 85 percent from 62.5 percent. Guajardo said that once Mexico has a firm understanding of the U.S. autos proposal, it can work with its own stakeholders to see what adjustments could be made to regional content for autos.

But he said that the U.S. demand to move to 85 percent regional content within three years was “entirely unrealistic.”

Guajardo said he discussed with Lighthizer on Tuesday how to move the talks toward consideration of potential “rebalancing” outcomes. But first, he said, Mexico needed to be clear with its American and Canadian counterparts about unacceptable proposals and its priorities for keeping the pact beneficial to all parties.

“We have to start a process of looking at what’s next after we complete the modernization effort,” he added.

On dispute settlement, Guajardo said that Mexico would be willing to consider some adjustments to the investor-state dispute settlement system, after the United States proposed making the use of such arbitration panels optional.

“We can explore the opt-in, as long as we can define our own opt-in,” Guajardo said of the dispute settlement proposal, adding that otherwise, Mexico is “not interested.”

At a more limited round of NAFTA talks in mid-December in Washington, Guajardo said it would be important to agree on key issues in order to close some NAFTA chapters, such as those on food safety, telecommunications, regulatory practices and digital commerce.
…

Opposition has grown among Americans to a Republican tax plan before the U.S. Congress, with 49 percent of people who were aware of the measure saying they opposed it, up from 41 percent in October, according to a Reuters/Ipsos poll released on Wednesday.

Congressional Republicans are trying to rush their tax legislation to a vote on the Senate floor before the end of the week. President Donald Trump strongly backs the bill and wants to sign it into law before the end of the year.

In addition to the 49 percent who said they opposed the Republican tax bill, 29 percent said they supported it and 22 percent said they “don’t know,” according to the Reuters/Ipsos opinion poll of 1,257 adults conducted from Thursday to Monday.

When asked “who stands to benefit most” from the plan, more than half of all American adults surveyed selected either the wealthy or large U.S. corporations. Fourteen percent chose “all Americans,” 6 percent picked the middle class and 2 percent chose lower-income Americans.

The tax bill being crafted in the Senate would slash the corporate tax rate, eliminate some taxes paid only by rich Americans and offer a mixed bag or temporary tax cuts for other individuals and families.

As congressional discussion on the bill has unfolded, public opposition to it has risen, on average, following Trump’s unveiling of a nine-page “framework” on September 27 that started the debate in earnest, Reuters/Ipsos polling showed.

On October 24, for example, among adults who said they had heard of the “tax reform plan recently proposed by congressional Republicans,” 41 percent said they opposed it, while 31 percent said they “don’t know” and just 28 percent said they supported it.

Trump and his fellow Republicans are determined to make a tax code overhaul their first major legislative win since taking control of the White House and Congress in January.

The House of Representatives on November 16 approved its own tax bill. The Senate is expected to decide on Wednesday whether to begin debating its proposal, as the measure moves toward a decisive floor vote later this week.

The two chambers would need to reconcile differences between their plans before legislation could be sent to the White House for Trump’s signature.

In the November 23-27 poll, 59 percent of Republicans supported the tax bill, 26 percent said they did not know and 15 percent opposed it. Among Democrats, 82 percent opposed it, 11 percent said they did not know and 8 percent supported it.

 
…

Colombia’s palm oil industry and big businesses have pledged to eliminate deforestation from their supply chains as the country battles to reverse the growing destruction of its tropical rainforests.

The commitment signed this week makes Colombia the first country in the world to launch its own chapter of the Tropical Forest Alliance 2020, a global effort by governments, companies and nongovernmental organizations.

The TFA 2020 Colombia Alliance aims to help businesses shift to deforestation-free supply chains by sharing best practices, monitoring forest clearance and training small farmers in sustainable agricultural methods.

It also aims to promote development of certified sustainable products from beef to palm oil for consumers to buy in local supermarkets.

Rainforests in Colombia, Latin America’s largest palm oil producer, are coming under increasing pressure, and deforestation is rampant.

Deforestation in the country’s Amazon region rose 23 percent and across the country rose by 44 percent from 2015 to 2016, said Vidar Helgesen, Norway’s environment minister.

Norway is one of four main donor countries, along with the United Kingdom, Germany and the Netherlands, backing the TFA 2020, an initiative hosted by the World Economic Forum.

“These numbers have been higher than what we expected and that’s why it is important to intensify efforts,” he told the Thomson Reuters Foundation.

Getting the private sector to commit to deforestation-free supply chains is a “critical part of the puzzle” to protect forests, he said.

First such cooperation

“This is the first time in Colombia we see the government and the private sector joining forces like this,” he said.

“My hope and belief is that this partnership will find ways of ensuring that it is not only an agreement on paper but something that will happen in practical terms.”

Protecting forests helps cut carbon emissions, a key driver of climate change. When forests are degraded or destroyed, the carbon stored in the trees is released into the atmosphere.

Colombia is home to a swath of rainforest roughly the size of Germany and England combined and has declared a goal of zero net deforestation by 2020 and halting the loss of all natural forest by 2030.

Its rainforests have been increasingly threatened since a 2016 peace deal to end its decades-long civil war opened up former conflict areas to business, agriculture and development, Helgesen said.

Trees also are being cleared for cattle ranching, illegal mining and growing coca — the raw ingredient for cocaine.

Signing up with the Alliance are about 25 palm oil producers and buyers, Colombia’s Federation of Oil Palm Growers and Alqueria S.A., its third-largest dairy company. Also signing up are retail giant Grupo Exito and international companies operating in Colombia such as consumer goods company Unilever.

“The launch of the TFA 2020 Colombia Alliance is important as a strengthening mechanism for joint action in Colombia to reach our deforestation goals,” said Mariana Villamizar, a spokeswoman for Grupo Exito.

Producers and buyers from the beef, dairy and timber sectors are expected to join the partnership soon.

Each company will set targets to achieve zero deforestation across their often complex supply chains, and the government and NGOs will help monitor deforestation.
…

This week, more than 1,000 entrepreneurs, business executives and government officials are in Hyderabad India to discuss ways to empower people to start businesses and build networks. The focus of the 8th annual Global Entrepreneurship Summit is women, who still lag behind men when it comes to founding businesses and getting funding. Michelle Quinn reports from Hyderabad.
…

U.S. ethanol producers, looking to relieve a growing domestic glut, are hunting for new international fuel markets to replace China and Brazil after trade disputes slashed exports to those top buyers.

Without new markets, U.S. producers may have to pare output after spending hundreds of millions of dollars on biofuel production plants in recent years. Currently, the most promising potential destinations for U.S. fuel exports appear to be Mexico and India, industry executives said.

China and Brazil accounted for 41 percent of the 1.17 billion gallons the United States exported last year. Shipments to the two shriveled in September, making U.S. exports for that month the smallest in more than a year.

“There are only so many times you can replace your top market,” said Tom Sleight, president of the U.S. Grains Council, which officials said has been calling on potential buyers in Kenya, Ghana and Nigeria.

China’s demand plummeted by more than 100 million gallons this year after it removed a preferential tariff rate. Brazil’s imports tumbled after it put a quota on imports in September to protect its domestic producers.

Selling points

To drum up new customers, Illinois-based ethanol producer Marquis Energy has sent executives to India, China, Thailand and the Philippines, promoting the corn-based fuel additive as a smog- and oil-import fighter.

“I’ve had a lot of people over there almost nonstop over the last three months,” the company’s chief executive, Mark Marquis, said of the hunt for buyers in Asia. Archer Daniels Midland Co and Flint Hills Resources also have stepped up efforts to sell into Mexico, traders said.

U.S. ethanol prices have slid to nearly a two-year low as daily domestic production last week hit a record 45.1 million gallons, making the search for new export markets more urgent.

Output this year could reach about 16 billion gallons, nearly triple that of 2007.

U.S. exports fell since hitting 2.5 million gallons per day in the first eight months this year. Shipments to Brazil sank to 19 million gallons in September, the smallest monthly volume in more than a year. Exports to China through September were just 60,880 gallons, a precipitous drop from 198 million gallons a year earlier, according to U.S. Department of Agriculture data.

The marketing effort could pay off in Mexico, whose energy regulatory commission (CRE) is to vote soon to ease the flow of fuel imports through state-run Pemex facilities to several Mexican states bordering the United States.

If approved, significant new volumes of gasoline blended with 10 percent ethanol could begin flowing in 2018 into Chihuahua, Coahuila, Nuevo Leon and Tamaulipas states, CRE Commissioner Luis Guillermo Pineda told Reuters.

“The largest supplier is logically the United States, but it can be from anywhere,” Pineda said of the ethanol blend.

Import prediction

Ray Young, ADM’s finance chief, last month told analysts Mexico could be importing 200 million gallons annually by 2019.

U.S. ethanol exports to Mexico last year totaled about 30 million gallons.

U.S. inventories reached 920 million gallons in the week ended November 17, up 16 percent from a year earlier, the U.S. Energy Information Administration said. Ethanol futures have fallen to $1.36 per gallon on the Chicago Board of Trade, down 20 percent from their 2017 high in April.

U.S. producers are pitching China and India on ethanol’s smog-fighting potential. This month, United Airlines canceled flights to India’s capital, New Delhi, citing heavy smog as a public health emergency. China ordered Beijing and more than two dozen other cities to start meeting limits on airborne pollution starting this month.

Ted McKinney, a USDA official interviewed during a biofuel-promotion trip to India, expressed optimism that country could import much more U.S. ethanol for cars and trucks. But others were not so sure.

India’s government wants to promote biofuel production using its own agricultural waste, said Jai Asundi, research coordinator at a Bengaluru-based think tank, the Center for Study of Science, Technology and Policy.

“There is a potential for producing ethanol from locally available sources without depending on imports,” Asundi said.
…

Eni US could begin work on oil exploration in federal waters off Alaska as soon as next month after the Trump administration on Tuesday approved permits for leases the company has held for a decade, the Interior Department said.

The department’s Bureau of Safety and Environmental Enforcement, issued Eni US, a unit of Italy’s Eni, a permit to explore for oil from an artificial island in the Beaufort Sea. Eni is the first company allowed to explore for oil in federal waters off Alaska since 2015.

The approval is part of the Trump administration’s policy to maximize output of fossil fuels for domestic use and for exporting.

Scott Angelle, the BSEE director, said developing Arctic resources responsibly is a “critical component to achieving American energy dominance.”

Environmentalists say exploring for oil in the Arctic is dangerous.

“The Trump administration is risking a major oil spill by letting this foreign corporation drill in the unforgiving waters off Alaska,” said Kristen Monsell, the legal director for oceans at the Center for Biological Diversity nonprofit group.

Eni wants to drill into the Beaufort from the island using extended wells more than 6 miles (10 km) long. Eni US did not immediately respond to a request for comment about when it would start drilling.

In April President Donald Trump signed a so-called America-First Offshore Energy Strategy executive order to extend offshore drilling to areas in the Arctic and other places that have been off limits.

Eni’s leases, which were set to expire by the end of the year, were outside of an area protected by former President Barack Obama weeks before he left office. The company’s plan to move ahead with risky and expensive drilling in the Arctic comes despite years of low oil prices and plentiful sources of crude in the continental United States.

Royal Dutch Shell Plc quit its exploration quest offshore of Alaska in 2015 after a ship it had leased suffered a gash in mostly uncharted waters and environmentalists discovered an existing law that limited the company’s ability to drill.

Republicans are eager to drill elsewhere in Alaska. A tax bill passed by the Senate budget committee Tuesday contained a provision to open drilling in a portion of Alaska’s Arctic National Wildlife Refuge. Conservationists say the refuge is one of the planet’s last paradises.

The bill, which Republicans hope to pass in the full Senate this week, faces an uncertain future.
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Chobani, the company that helped kick-start the Greek yogurt craze, is shrinking those words on its label as it may expand beyond that food in an increasingly crowded yogurt market.

The new look, which will show up in supermarkets this week, removes “Greek Yogurt” from underneath the Chobani name. The yogurt inside will stay the same. Its packaging will be more muted than the current bright white, use a new font and style, and feature watercolor paintings of fruits rather than photographs of strawberries and peaches.

“What this new identity enables us to do is start to seed, if you will, us going into other areas beyond yogurt,” says Peter McGuinness, Chobani’s chief marketing officer. But he wouldn’t say what new foods or products it might make, or when it would happen.

Chobani has grown quickly since its yogurt was first sold at supermarkets 10 years ago. Older food companies scrambled to catch up and offer their own versions of Greek yogurt, but last year Chobani overtook General Mills Inc.’s Yoplait as the best-selling yogurt brand in the U.S., according to market research firm Euromonitor.

McGuinness says the new, thicker font makes Chobani easier to spot in the overcrowded yogurt aisle, and the off-white containers differentiate it from its rivals.

Its Smooth Yogurt, which it launched earlier this year as a less-tart alternative to Greek yogurt, gets a more colorful container and shrinks the Chobani name. A similar treatment was given to Chobani Flip, which has yogurt in one container and mix-ins such as chocolate or dried cranberries in the other. Flip, which was launched nearly four years ago, is on track to become a $1 billion business in about two years, says McGuinness. It gets people to eat yogurt beyond breakfast, he says, and brings people to the brand who may not like yogurt.

He declined to say how much the redesign would cost, but anywhere the logo appears is being updated. “This is a big investment,” he says.
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The coal industry and environmentalists squared off Tuesday at a public hearing over the Trump administration’s planned repeal of an Obama-era plan to limit planet-warming carbon emissions.

The Environmental Protection Agency was holding the only scheduled hearing on the reversal in Charleston, West Virginia, capital of a state heavily dependent on coal mining. The hearing was expected to last two days.

The Clean Power Plan sought to ratchet down use of the dirtiest fossil fuel but never took effect because of lawsuits filed by coal companies and conservative-leaning states. Coal-fired power plants are a major source of the carbon emissions driving climate change.

Among those testifying was Bob Murray, chief executive Murray Energy Corp. He derided the Obama plan as an illegal power grab that has cost coal miners their livelihoods.

“The Clean Power Plan would devastate coal-fired electricity generation in America,” said Murray, whose company employs 5,200 miners and has 14 active coal mines. “This would impose massive costs on the power sector and on American consumers.”

Under the Obama administration, EPA held four multiday public hearings — in Washington, Atlanta, Pittsburgh and Denver — to collect feedback before issuing the Clean Power Plan in 2015. About two dozen conservative-leaning states and a battery of fossil-fuel companies immediately sued, successfully preventing the carbon reduction plan from taking effect before the election of Donald Trump, who as a candidate pledged to repeal it.

To head EPA, Trump appointed Scott Pruitt, a former Oklahoma attorney general who was among those who fought the Clean Power Plan in court. Pruitt has made a priority the delay and reversal of recent environmental regulations negatively impacting the profits of coal and petrochemical companies.

Though Trump, Pruitt and others have blamed environmental regulations for the loss of coal-mining jobs, the accelerating shift of electric utilities using cheaper and cleaner-burning natural gas is a primary culprit.

Pruitt has also sought to cast doubt on the consensus of climate scientists that the continued burning of fossil fuels is the main driver of global warming. Scientists say climate change has already triggered rising seas and more extreme weather, including killer heat waves, worsened droughts and torrential rains.

Pruitt did not attend Tuesday’s public hearing, which was presided over by three EPA employees.

The Sierra Club’s climate-policy director, Liz Perera, told them that the proposed repeal ignores scientific reality.

“This is about the kind of world that we want to leave for our children,” she said.
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Jerome Powell says that if confirmed as the next chairman of the Federal Reserve, he expects the Fed to continue raising interest rates gradually to support its twin goals of maximum employment and stable prices.

Under his leadership, Powell also says, the Fed would consider ways to ease the regulatory burdens on banks while preserving the key reforms Congress passed to try to prevent another financial crisis.

Powell’s comments came in written testimony prepared for his confirmation hearing Tuesday before the Senate Banking Committee.

A member of the Fed’s board since 2012, Powell was nominated by President Donald Trump to succeed Janet Yellen after her four-year term as chair ends in February. Trump decided against offering Yellen a second term.

In his remarks released Monday, Powell sought to send the reassuring message that he would represent a figure of stability and continuity at the nation’s central bank while remaining open to making certain changes as appropriate.

On banking regulations, Powell said in his testimony, “We will continue to consider appropriate ways to ease regulatory burdens while preserving core reforms … so that banks can provide the credit to families and businesses necessary to sustain a prosperous economy.”

Among those reforms, Powell mentioned the stricter standards for capital and liquidity that banks must maintain under the Dodd-Frank financial reform law and the annual “stress tests” that the biggest banks must undergo to show they could withstand a severe downturn.

‘Gradual’ is key

Regarding interest rates, Powell said, “We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink.” The Fed has begun gradually shrinking its balance sheet, which swelled after the financial crisis from bond purchases it made to help reduce long-term borrowing rates.

The Yellen Fed has raised rates four times starting in December 2015, including two rate hikes this year. Economists expect a third rate hike to occur in December, and they’re projecting at least three additional rate increases in 2018.

Powell cautioned that while Fed officials want to make the path of interest rate policy as predictable as possible, “the future cannot be known with certainty.” For that reason, he said, it’s important for the Fed to retain the flexibility it needs to adjust its policies in response to economic developments.

In deciding not to offer Yellen another four years as chair, Trump made her the only Fed leader in nearly four decades not to be offered a second term.

Yellen, a Democrat who was nominated by President Barack Obama and became the first woman to lead the Fed, announced last week that she would step down from the Fed board once Powell is confirmed to succeed her as chair. Yellen could have remained on the board even after Powell became chair.

Yellen will leave the Fed in February after a tenure characterized by a cautious stance toward rate hikes, relative transparency about the Fed’s expectations and projections and support for the stricter bank rules that were enacted after the 2008 financial crisis.

A centrist

In his five years as a member of the Fed’s seven-member board of governors, Powell has built a reputation as a centrist. He never dissented from the policies advocated by Yellen or her predecessor, Ben Bernanke.

In his own remarks on rate policies, Powell has so far stuck close to the Yellen line. In a speech in June, he said that while low unemployment argued for raising rates, weak inflation suggested that the Fed should move cautiously in doing so. That wary approach reflected Yellen’s own warnings about the need to raise rates only incrementally, depending on the latest economic data.

Powell’s actions on the Dodd-Frank Act, the law enacted to tighten banking regulations after the 2008 crisis, may turn out to be the area where he will differ most from his predecessor. Yellen rejected arguments that the tighter regulations had hurt economic growth by making banks less likely to lend. Powell, for his part, has suggested that in some areas, the Dodd-Frank restrictions might have gone too far.

In a congressional appearance in June, Powell said that the “core reforms” should be retained but that in some respects there was a need to “go back and clean up our work.” He indicated that two areas where loosening the rules might be considered were in easing regulations on smaller banks and revising the “Volcker rule” curbs on investment trades by big banks.

 
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In the United States, it’s Cyber Monday, a day when holiday shoppers could set a new spending record for online purchases from work, home or anywhere with their cellphones.

With rising wages in the U.S., low unemployment and strong consumer confidence, research firm Adobe Analytics predicted shoppers could spend $6.6 billion on Monday, more than a 16 percent jump over last year’s record-setting total.

Online shopping has been increasing steadily in the U.S. for years as many consumers stay away from traditional brick-and-mortar stores in favor of the convenience of shopping from laptop computers, hand-held devices or, to the dismay of their employers, workplace computers.

Black Friday

Black Friday, the day after last week’s Thanksgiving holiday in the U.S., is traditionally the biggest holiday shopping day of the year, coming a few weeks ahead of gift-giving at Christmas and Hanukkah. Equity firm Consumer Growth Partners estimated Friday’s sales, both in stores and online, at about $33 billion, a 4.8 percent advance over 2016.

Even as shoppers, lured by discounted prices, thronged to stores on Friday to buy the latest tech gadgets, toys and clothing, retailers reported that overall, the number of shoppers in their stores dipped a bit, an indication that many buyers were instead shopping online.

The National Retail Federation is predicting that U.S. consumer spending in November and December could climb 4 percent over a year ago to $682 billion, which would make this the strongest holiday shopping season since 2014.

Competition

Two of the biggest online retailers in the U.S., Amazon.com and Wal-Mart Stores, are about even in offering the lowest prices on a large array of consumer items, a Reuters survey showed. A year ago, products bought through Amazon were typically 3 percent cheaper, but the news agency said its survey showed that Wal-Mart has now narrowed the gap to three-tenths of 1 percent.

The boost in consumer spending, which accounts for 70 percent of the U.S. economy, the world’s largest, is buoyed by a falling jobless rate. The unemployment rate was 4.1 percent in October, the lowest level in 17 years, and employers hired another 261,000 workers.

 
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Startup founders, investors and tech leaders from around the world are heading to Hyderabad, India for the 8th annual Global Entrepreneurship Summit, co-hosted by the U.S. and Indian governments.

Ivanka Trump, adviser to U.S. President Donald Trump and his daughter, will join host Prime Minister Narendra Modi in kicking off the three-day event, which will focus on women in business. More than 1,500 participants from 150 countries are expected at the event, which runs from November 28 through 30.

It had not been clear whether the Trump administration would continue the annual summit that was launched at the White House by the Obama administration in 2010. Trump has focused on domestic growth and U.S. job creation with an “America first” message.

But in June, Prime Minister Modi, while visiting the White House, announced that the two countries would co-host the summit.

America first, global partners

The gathering comes as the U.S. and India appear to be working to strengthen ties.

Having an “America first” economic policy is “not exclusive of collaboration, partnership and strong economic security and social relationships around the world,” said a senior administration official, speaking anonymously.

The summit is “a testament to the strong friendship between our two people and the growing economic and security partnership between our two nations,” said Ivanka Trump during a news conference this week.

Participants at this year’s summit will represent four industry sectors — energy and infrastructure, health care and life sciences, financial technology and digital economy, and media and entertainment.

Women in majority

In a first for the event, women will represent 52 percent of the attendees. Ten countries, including Afghanistan and Saudi Arabia, are sending all female delegations.

In advance of the summit, the Indian state of Telangana, where Hyderabad is located, has been working to clean up the city, and there have been reports of beggars being relocated.

“We know that the Indian government is really firmly committed to raising individuals out of poverty and to create economic opportunity for its large and diverse population and we think they are making great progress,” said another U.S. official.
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After offering online deals for days, retailers are rolling out even more promotions for Cyber Monday, hoping to keep people buying stuff on their smartphones or computers.

Shoppers are expected to spend $6.6 billion on Cyber Monday, up more than 16 percent from a year ago, according to Adobe Analytics, the research arm of software maker Adobe. And more people will be picking up their phones to shop: Web traffic from smartphones and tablets is expected to top desktop computers for the first time this year, Adobe said.

At the MacArthur Center shopping mall in Norfolk, Virginia, on Sunday, Kathy Lewis was there not to shop but to get her nails done. Her plan is to make her big purchases on Cyber Monday, including the newest model Nerf gun for her boyfriend’s nephew. Lewis said she gave up years ago on waiting in line at Toys “R” Us.

“It’s so hard to get in and out of there to me,” said Lewis, adding, “If you look online, you get the same price you get on Black Friday.”

Lewis did brave a very crowded Best Buy on Friday in search of a 32-inch television for another of her boyfriend’s relatives. But after checking the price, she’s holding off for Monday. Her plan is to scan the websites of Toys `R’ Us and Best Buy and then Amazon before making her final decision.

As part of their Cyber Monday deals, Target and Toys “R” Us are offering 15 percent off most items on their sites. Walmart.com has tripled the amount of items available for sale from last year. And Amazon – which Bain & Co. says is expected to capture 50 percent of all online sales growth – will offer similar deals on its gadgets as it did on Black Friday, but offer new deals on Lego sets and Hasbro games.

The shift to online shopping has been noticeable at some stores since the holiday shopping season kicked off. At a Toys “R” Us in Toledo, Ohio, on Friday morning, the parking lot was about half full. Melissa Wetzel, who said she would also do some shopping online, said her Black Friday in-store shopping runs had been relaxing since she didn’t have to fight the crowds.

“It’s been pretty easy,” she said. “I guess most are shopping online.”
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The driest Thanksgiving weekend in five years may have helped holiday shopping, despite an overall decline in foot traffic. But some shoppers just took notes in the hopes of finding an even better deal online.

That’s a consequence of Amazon continuing to squeeze prices, exacerbating the “showrooming” practice of people getting ideas at brick-and-mortar stores, then buying online.

Heather Just and husband Dominic of Rockford, Illinois, brought their twin 11-year-old boys and 13-year-old son to the giant Water Tower Place on Chicago’s Magnificent Mile on Saturday to see “what their eyes get big about.”

The excursion was more recon mission than shopping spree. “We’re watching, we’re watching,” she told her sons, who focused their attention on a Nintendo Switch portable game console.

Amaz-ing prices

Amazon continues to beat prices at other retailers in many cases, according to marketing technology company Boomerang Commerce.

For example, it pointed out that Amazon cut prices on Beats Solo 3 wireless headphones. The Associated Press found them on Amazon selling for $200, $10 below BestBuy.com, and $40 below the Black Friday deal at Target.

But Walmart isn’t far behind in high-tech price matching. Following its purchase of Jet.com last year for $3.3 billion, the company can now quickly ratchet prices down on popular items using machine-learning algorithms, while maintaining profit margins on lesser-trafficked items.

The technology has set up Walmart and Amazon for a “clash of the titans” in online sales where consumer perceptions of prices are formed, according to Boomerang’s vice president of marketing, Gary Liu.

“You can’t compete in the same way you did before,” Liu said.

Online supplements offline

Steve Hagan, a general contractor from Richmond, Kentucky, said his 9-year-old son, Luke, and 8-year-old daughter, Lauren, used their own money and gift cards to buy toys on a Chicago shopping trip from the Star Wars and Bitty Baby brands. But he was keeping track of where Santa could digitally fill in the blanks.

“That baby doll may need some accessories and I had to ask Luke which Star Wars character he was getting and which one he already has,” said Hagan, adding that he’ll shop online later. “I’m taking notes.”

Lisa Stripling, of South Bend, Indiana, said her goal was to see what her 3 1/2-year-old grandson Max liked and buy it online.

“I used to do most of my shopping in stores and now it’s 75 percent online and 25 percent in the stores,” she said.

Weather cooperating

Rainfall from Thanksgiving through the weekend was the lowest since 2013, and snowfall was the lowest in over 20 years, boosting foot traffic to malls and restaurants, according to weather analytics firm Planalytics.

Cold, dry conditions in the populous northeast bolstered the holiday shopping spirit, because it “drives more people to apparel” as they bundle up, according to Planalytics president Scott Bernhardt.

Nationally, it was the warmest Black Friday weekend since 2001.

Despite the favorable conditions, foot traffic to stores nationwide for the Thanksgiving Day through Saturday fell 3.1 percent from a year ago, according to store visitation tracker RetailNext Inc. It partly blamed the creep of sales events into the first week of November for the decline, though foot traffic has fallen four years in a row.

Strong results

Daniel Ives, head of technology research for GBH Insights, said Amazon was posting stronger-than-expected sales, and at this pace, it could beat fourth-quarter sales estimates by 5 percent.

Jon Abt, co-president of Glenview, Illinois-based Abt Electronics, said sales from Friday through Sunday were up about 14 percent from a year ago, driven by higher-priced TVs from LG and Sony, video game consoles such as Sony’s PS4 and Microsoft’s Xbox One S and smart speakers from Amazon, Google and Sonos.

A few management decisions have kept the 81-year-old single-location retailer thriving: Abt shuns doorbuster specials with limited-supply items that can run out and disappoint shoppers. It also has resisted the creep of sales starting earlier and earlier (the store is closed Thanksgiving Day).

And Abt says the store has more than 100 terminals to let people price-shop as much as they like, which the store will match.

“We invite people to use the internet if they want to,” Abt said. “If they’re not going to do it in here, they’re doing it at home.”

 
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Wildfires that swept through Northern California in early October killed 42 people, destroyed hundreds of homes, and caused an estimated $6 billion in damage to the region. The fires have also frozen an income stream the region relies on: tourism. VOA’s Kevin Enochs reports.
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