Black Friday and Thanksgiving online sales in the United States surged to record highs as shoppers bagged deep discounts and bought more on their mobile devices, heralding a promising start to the key holiday season, according to retail analytics firms.

U.S. retailers raked in a record $7.9 billion in online sales on Black Friday and Thanksgiving, up 17.9 percent from a year ago, according to Adobe Analytics, which measures transactions at the largest 100 U.S. web retailers, Saturday.

Adobe said Cyber Monday is expected to drive $6.6 billion in internet sales, which would make it the largest U.S. online shopping day in history.

Traditional retailers prepared

In the run-up to the holiday weekend, traditional retailers invested heavily in improving their websites and bulking up delivery options, pre-empting a decline in visits to brick-and-mortar stores. Several chains tightened store inventories as well, to ward off any post-holiday liquidation that would weigh on profits.

TVs, laptops, toys and gaming consoles — particularly the PlayStation 4 — were among the most heavily discounted and the biggest sellers, according to retail analysts and consultants.

Commerce marketing firm Criteo said 40 percent of Black Friday online purchases were made on mobile phones, up from 29 percent last year.

No brick-and-mortar data yet

No brick-and-mortar sales data for Thanksgiving or Black Friday was immediately available, but Reuters reporters and industry analysts noted anecdotal signs of muted activity — fewer cars in mall parking lots, shoppers leaving stores without purchases in hand.

Stores offered heavy discounts, creative gimmicks and free gifts to draw bargain hunters out of their homes, but some shoppers said they were just browsing the merchandise, reserving their cash for internet purchases. There was little evidence of the delirious shopper frenzy customary of Black Fridays from past years.

Store traffic bucks predictions

However, retail research firm ShopperTrak said store traffic fell less than 1 percent on Black Friday, bucking industry predictions of a sharper decline.

“There has been a significant amount of debate surrounding the shifting importance of brick-and-mortar retail,” Brian Field, ShopperTrak’s senior director of advisory services, said.

“The fact that shopper visits remained intact on Black Friday illustrates that physical retail is still highly relevant and when done right, it is profitable.”

The National Retail Federation (NRF), which had predicted strong holiday sales helped by rising consumer confidence, said Friday that fair weather across much of the nation had also helped draw shoppers into stores.

The NRF, whose overall industry sales data is closely watched each year, is scheduled to release Thanksgiving, Black Friday and Cyber Monday sales numbers Tuesday.

U.S. consumer confidence has been strengthening over this past year, thanks to a labor market that is churning out jobs, rising home prices and stock markets that are hovering at record highs.
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Who’s the boss? That’s the awkward question after the departing head of a government agency charged with looking after consumer rights appointed a deputy to temporarily fill his spot. The White House then named its own interim leader.

One job, two people — and two very different views on how to do it.

The first pick is expected to continue the aggressive policing of banks and other lenders that have angered Republicans. The second, President Donald Trump’s choice, has called the agency a “joke,” an example of bureaucracy run amok, and is expected to dismantle much of what the agency has done.

So come Monday, who will be leading the Consumer Financial Protection Bureau?

​Both say law on their side

Senior Trump administration officials said Saturday that the law was on their side and they expect no trouble when Trump’s pick for temporary director of the CFPB shows up for work. Departing director Richard Cordray, an Obama appointee long criticized by Congressional Republicans as overzealous, had cited a different rule in saying the law was on his side.

In tendering his resignation Friday, Cordray elevated Leandra English, who was the agency’s chief of staff, into the deputy director position. Citing the Dodd-Frank Act that created the CFPB, he said English, an ally of his, would become acting director upon his departure.

Corday’s move was widely seen as an attempt to stop Trump from shaping the agency in the months ahead.

The White House cites the Federal Vacancies Reform Act of 1998. Administration officials on Saturday acknowledged that some other laws appear to clash with Vacancies Act, but said that in this case the president’s authority takes precedence.

Important, though temporary, job

Who prevails in the legal wrangling is seen as important even though this involves just a temporary posting. Getting a permanent replacement approved by the Senate could take months.

The president’s pick for temporary appointee, Mick Mulvaney, had been widely anticipated. Mulvaney, currently director of the Office of Management and Budget, has been an outspoken critic of the agency and is expected to pull back on many of Cordray’s actions in the six years since he was appointed.

Trump announced he was picking Mulvaney within a few hours of Cordray’s announcement Friday.

“The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick,” Trump tweeted Saturday from his private Mar-a-Lago club in Palm Beach, Florida, where he is spending a long Thanksgiving weekend. “Financial Institutions have been devastated and unable to properly serve the public. We will bring it back to life!”

The administration officials, speaking on condition of anonymity to discuss the White House’s thinking, called Trump’s appointment of an acting director a “routine move.” They said the Justice Department’s Office of Legal Counsel has already approved Trump’s appointment of Mulvaney and will issue a written legal opinion soon.

The clashing appointments raise the question: What happens when the two new heads show up and try to sit at the same desk and give orders?

One of the administration officials said Mulvaney was expected to start working Monday and that English was expected to also show up — but as deputy director.

Leandra English

English is a trusted lieutenant of Cordray’s who has helped investigate and punish financial companies in ways that many Republicans, Mulvaney in particular, think go too far. In his announcement Friday, Cordray highlighted English’s “in-depth” knowledge of the agency’s operations and its staff. Before joining the CFPB, English served at the Office of Management and Budget and Office of Personnel Management.

“Leandra is a seasoned professional who has spent her career of public service focused on promoting smooth and efficient operations,” Cordray said in the statement.

Mick Mulvaney

Mulvaney was a South Carolina representative to the House before becoming head of the budget office. A founder of the hard-right House Freedom Caucus, he was elected in 2010 as part of a tea party wave that brought many critics of the U.S. budget deficit to office. He has taken a hard line on federal spending matters, routinely voting against increasing the government’s borrowing cap and pressing for major cuts to benefit programs as the path to balancing the budget.

He also has been unsparing in his criticism of the CFPB. In a widely quoted comment, he once blasted the agency as “joke,” saying its lack of oversight by Congress and its far-reaching regulations had gone too far.

“The place is a wonderful example of how a bureaucracy will function if it has no accountability to anybody,” he told the Credit Union Times in 2014. “It turns up being a joke in a sick, sad kind of way.”

Congress weighs in

U.S. Rep. Jeb Hensarling, chairman of the powerful House Financial Services Committee and a longtime critic of Cordray, said Mulvaney would “fight not only to protect consumers from force, fraud, and deception but will protect them from government interference with competitive, innovative markets and help preserve their fundamental economic opportunities and liberties.”

Democrats have seized upon Mulvaney’s words in criticizing his appointment to the agency.

U.S. Rep. Maxine Waters of California, the top Democrat on the Financial Services Committee, issued a statement Saturday calling Mulvaney “unacceptable” to lead the CFPB because of his “noxious” views toward its mission to protect consumers.

“He was also the original co-sponsor of a bill to completely eliminate the Consumer Bureau,” she wrote, “and supported other legislation to harmfully roll back Wall Street reform.”
…

The director of the Consumer Financial Protection Bureau resigned Friday and named his own successor, leading to an open conflict with President Donald Trump, who announced a different person as acting head of the agency later in the day.

That means there are now effectively two acting directors of the CFPB, when there should only be one.

Typically an acting director position would be filled according to the Federal Vacancies Reform Act of 1998. But Richard Cordray, along with his resignation, elevated Leandra English, who was the agency’s chief of staff, into the deputy director position.

Under the Dodd-Frank Act that created the CFPB, English would become acting director. Cordray, an Obama appointee, specifically cited the law when he moved English, a longtime CFPB employee and ally of his, into that position.

​Trump appoints CFPB critic

Within a few hours, President Donald Trump announced his own acting director of the agency, Mick Mulvaney, who is currently director of the Office of Management and Budget. Mulvaney had widely been expected to be Trump’s temporary pick for the bureau until a permanent one could be found.

Mulvaney is a long-time critic of the CFPB, and has wanted the agency’s authority significantly curtailed. So the difference between English and Mulvaney running the agency would be significant.

Senate confirmation needed

The person nominated to be director of the CFPB requires confirmation by the Senate, and it could be many weeks or months before the person would be able to step into the role permanently. Cordray’s move was aimed at allowing his favored successor to keep running the agency for as long as possible before a Trump appointee is confirmed by the Senate.

Cordray had announced earlier this month that he would resign by the end of this month. There is wide speculation that Cordray, a Democrat, is resigning in order to run for governor in his home state of Ohio.

What CFPB does

The CFPB was created as part of the laws passed following the 2008 financial crisis and subsequent recession. The agency was given a broad mandate to be a watchdog for consumers when they deal with banks and credit card, student loan and mortgage companies, as well as debt collectors and payday lenders. Nearly every American who deals with banks or a credit card company or has a mortgage has been affected by new rules the agency put in place.

Cordray used that mandate aggressively as its first director, which often made him a target for the banking industry’s Washington lobbyists and congressional Republicans who believed Cordray was overreaching in his role, calling the CFPB a “rogue agency.”

As director, he also was able to extract billions of dollars in settlements from banks, debt collectors and other financial services companies for wrongdoing. When Wells Fargo was found to have opened millions of phony accounts for its customers, the CFPB fined the bank $100 million, the agency’s largest penalty to date.
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Overhauling welfare was one of the defining goals of Bill Clinton’s presidency, starting with a campaign promise to “end welfare as we know it,” continuing with a bitter policy fight and producing change that remains hotly debated 20 years later.

Now, President Donald Trump wants to put his stamp on the welfare system, apparently in favor of a more restrictive policy. He says “people are taking advantage of the system.”

Trump, who has been signaling interest in the issue for some time, said this past week that he wants to tackle the issue after the tax overhaul he is seeking by the end of the year. He said changes were “desperately needed in our country” and that his administration would soon offer plans.

​Work on new policy begins

For now, the president has not offered details. Spokeswoman Sarah Huckabee Sanders said more specifics were likely early next year. But the groundwork has begun at the White House and Trump has made his interest known to Republican lawmakers.

Paul Winfree, director of budget policy and deputy director of Trump’s Domestic Policy Council, told a recent gathering at the conservative Heritage Foundation that he and another staffer had been charged with “working on a major welfare reform proposal.” He said they have drafted an executive order on the topic that would outline administration principles and direct agencies to come up with recommendations.

“The president really wants to lead on this,” Winfree said. “He has delivered that message loud and clear to us. We’ve opened conversations with leadership in Congress to let them know that that is the direction we are heading.”

Trump said in October that welfare was “becoming a very, very big subject, and people are taking advantage of the system.”

​Clinton’s campaign promise

Clinton ran in 1992 on a promise to change the system but struggled to get consensus on a bill, with Democrats divided and Republicans pushing aggressive changes. Four years later, he signed a law that replaced a federal entitlement with grants to the states, placed a time limit on how long families could get aid and required recipients to go to work eventually.

It has drawn criticism from some liberal quarters ever since. During her presidential campaign last year, Democrat Hillary Clinton faced activists who argued that the law fought for by her husband punished poor people.

No evidence of fraud

Kathryn Edin, a professor at Johns Hopkins University who has been studying welfare since the 1990s, said the law’s legacy has been to limit the cash assistance available to the very poor and has never become a “springboard to work.” She questioned what kinds of changes could be made, arguing that welfare benefits are minimal in many states and there is little evidence of fraud in other anti-poverty programs.

Still, Edin said that welfare has “never been popular even from its inception. It doesn’t sit well with Americans in general.”

Robert Rector, a senior research fellow at Heritage, said he would like to see more work requirements for a range of anti-poverty programs and stronger marriage incentives, as well as strategies to improve results for social programs and to limit waste. He said while the administration could make some adjustments through executive order, legislation would be required for any major change.

“This is a good system,” he said. “We just need to make this system better.”

Administration officials have suggested they are eyeing anti-poverty programs. Trump’s initial 2018 budget proposal, outlined in March, sought to sharply reduce spending for Medicaid, food stamps and student loan subsidies, among other programs.

Budget director Mick Mulvaney said this year, “If you are on food stamps and you are able-bodied, we need you to go to work.”
…

Retailers worked hard to attract shoppers to stores on Black Friday, offering in-person deals meant to counter the ease of shopping online.

A better economy helped, to be sure, but stores have also tried to improve the store experience and offer better service. They’ve also made a big push toward offering store pickup for online orders.

But online leader Amazon is still the first and only stop for many shoppers. So stores are getting creative with the deals.

Victor Moore said he arrived about two hours ahead of Best Buy’s 8 a.m. opening in Nashville and scored one of the about 14 “doorbuster” deals on a 55-inch Toshiba smart TV for $280, a $220 savings. Moore said he’s done some online shopping, but the allure of in-store-only deals drew him out from behind the computer.

“This is the first successful doorbuster that I’ve ever been a part of,” Moore said. “I’ve been in lines before, but never actually got the items that I was waiting for.”

Annette Peluffo usually avoids Black Friday and buys online. But a $250 gift card reward for buying an iPhone 8 plus at a Target store in Miami was hard to resist. She plans to use the money to buy toys for her nephews and nieces in the coming weeks. “I just came here for the iPhone. I am not going to any other store,” she said.

Not just one day

Still, Black Friday isn’t what it used to be. It has morphed from a single day when people got up early to score doorbusters into a whole month of deals. That has thinned out the crowds. And brick-and-mortar stores face plenty of challenges.

With the jobless rate at a 17-year-low of 4.1 percent and consumer confidence stronger than a year ago, analysts project healthy sales increases for November and December. The National Retail Federation trade group expects sales for that period to at least match last year’s rise of 3.6 percent and estimates online spending and other nonstore sales will rise 11 to 15 percent.

But analysts at management consultancy Bain & Company say Amazon is expected to take half of the holiday season’s sales growth.

Amazon said Friday that Thanksgiving continued to be one of its busiest shopping days, with orders through its app up over 50 percent from a year ago. Overall, online sales on Black Friday rose 18.4 percent to $640 million, from a year ago, as of Friday morning, said Adobe Analytics. Thanksgiving generated a total of $2.87 billion in online spending, up 18.3 percent from a year ago, the data firm said.

About 69 percent of Americans, or 164 million people, intend to shop at some point during the five-day period from Thanksgiving to Cyber Monday, according to a survey released by the NRF. It expected Black Friday to remain the busiest day, with about 115 million people planning to shop then.

“The consumer still likes to go to the stores,” said Charles O’Shea, Moody’s lead retail analyst. “I’ve seen a lot of traffic. Yes, there’s going to be a lot of online shopping. But I think the brick-and-mortar stores have done a nice job so far in attracting shoppers.”

That’s true of Karre Wagner, 20, a University of Minnesota student from St. Paul who was shopping at Mall of America in Bloomington with her boyfriend. She bought a Blu-ray player at the mall’s Best Buy store. She says she started holiday shopping on Black Friday, but she likes to go to the mall to shop.

Hands-on experience

“I like to see what I’m buying. I like to touch it, feel it, know exactly what I’m getting, and part of it is the experience,” she said. “I mean, sitting online is fine, but there’s just something about starting the holiday season with Black Friday.”

The shift to online buying is a major factor as industry analysts watch how the nation’s malls fare this holiday shopping season. The Mall of America in Minnesota says that 2,500 people were in line at the 5 a.m. opening Friday, in line with a year ago. Shoppers started queuing up as early as 5:45 p.m. on Thanksgiving. Jill Renslow, Mall of America’s executive vice president of business development, said stores like Nordstrom, Macy’s and Best Buy were crowded. She said the items that caught shoppers’ attention included voice-activated devices like Amazon Echo, nostalgic toys, clothing and shoes.

Macy’s CEO Jeff Gennette said customer counts were higher and business was better in the North and Northeast, even with fewer promotions from a year ago.

But much depends on whether people are buying or just looking, and if they’re buying things that aren’t on sale as well.

Chuck Boyd said he and his son arrived at 4 a.m. to be among the first five or six in line at Best Buy in Nashville to get one each of about 14 “doorbuster” deals. He said he prefers online shopping, but his son wanted a TV for his apartment at school, so Boyd came along to get one, too.

“I’d much rather do online,” Boyd said. “But this was the deal you could only do in the store.”
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Workers at a half dozen Amazon distribution centers in Germany and one in Italy walked off the job Friday, in a protest timed to coincide with Black Friday to demand better wages from the American online giant.

In Germany, Ver.di union spokesman Thomas Voss said some 2,500 workers were on strike at Amazon facilities in Bad Hersfeld, Leipzig, Rheinberg, Werne, Graben and Koblenz. In a warehouse near Piacenza, in northern Italy, some workers walked off the job to demand “dignified salaries.”

The German union has been leading a push since 2013 for higher pay for some 12,000 workers in Germany, arguing Amazon employees receive lower wages than others in retail and mail-order jobs. Amazon says its distribution warehouses in Germany are logistics centers and employees earn relatively high wages for that industry.

The strikes in Germany are expected to end Saturday.

The Italian action, a one-day strike, was hailed by one of the nation’s umbrella union leaders, the UIL’s Carmelo Barbagallo, as having “enormous symbolic value because it’s clear that progress, innovation and modernity can’t come at the expense and the interests of workers.”

The chief of the CISL umbrella labor syndicate, Annamaria Furlan, called on Amazon to work with unions for “proper industrial relations, employment stability and dignified salaries.”

The Italian strike was called for permanent workers. The unions advised workers who are on short-term, work-on-demand contracts to stay on the job, so they wouldn’t risk losing future gigs.

Amazon says it has created 2,000 full-time jobs in Italy, where unemployment remains stubbornly high.
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Black Friday, the day after Thanksgiving, traditionally has started the holiday shopping season in the United States. It refers to the day when retailers hope to turn a profit — go from “being in the red,” or being in debt, to being “in the black,” or making money.

Many stores opened in the early hours of Friday morning to lure shoppers with big bargains. Some stores even opened on Thanksgiving Day to get a head start on the season.

Black Friday is usually the busiest shopping day of the year in the U.S. 

WATCH: US Retailers Look to Profitable Black Friday Weekend

The National Retail Federation estimates that 69 percent of Americans, or 164 million, people will take advantage of the deals retailers offer on a vast variety of goods in stores and online.

A recent study said Amazon is the top destination for people beginning their holiday shopping.

“I buy pretty much what I can on Amazon,” Lam Huynh told the Associated Press news agency.

Analysts say online giant Amazon is expected to capture half of the holiday season’s sales growth.
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Giant robots and futuristic cyberpunk castles rise out of lush mountain slopes on the outskirts of Guiyang, the capital of one of China’s poorest provinces.

Welcome to China’s first virtual reality theme park, which aims to ride a boom in demand for virtual entertainment that is set to propel tenfold growth in the country’s virtual reality market, to hit almost $8.5 billion by 2020.

The 330-acre (134-hectare) park in southwestern Guizhou province promises 35 virtual reality attractions, from shoot-’em-up games and virtual roller coasters to tours with interstellar aliens of the region’s most scenic spots.

“After our attraction opens, it will change the entire tourism structure of Guizhou province as well as China’s southwest,” Chief Executive Chen Jianli told Reuters.

“This is an innovative attraction, because it’s just different,” he said in an interview at the park, part of which is scheduled to open next February.

New growth engines

The $1.5 billion Oriental Science Fiction Valley park is part of China’s thrust to develop new drivers of growth centered on trends such as gaming, sports and cutting-edge technology, to cut reliance on traditional industries.

In the push to become a center of innovative tech, Guizhou is luring firms such as Apple Inc., which has sited its China data center there, while the world’s largest radio telescope is in nearby Pingtang county.

The park says it is the world’s first of its kind, although virtual reality-based attractions from the United States to Japan already draw interest from consumers and video gamers seeking a more immersive experience.

The Guiyang park will offer tourists bungee jumps from a huge Transformer-like robot, as well as a studio devoted to producing virtual reality movies. Most rides will use VR goggles and motion simulators to thrill users.

“You feel like you’re really there,” said Qu Zhongjie, the park’s manager of rides. “That’s our main feature.”

China’s virtual reality market is expected to grow tenfold to 55.6 billion yuan ($8.4 billion) by the end of the decade, state-backed think tank CCID has said.

Farmers in the nearby village of Zhangtianshui said they were concerned about pollution from big developments, but looked forward to the economic benefits a new theme park would bring.

Most were less sure about virtual battles or alien invasions, though.

“There are lots of good things that come out of these projects,” one farmer, Liu Guangjun, told Reuters. “As for the virtual reality, I don’t really understand it.”
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Fur trappers are asking a federal judge to throw out a lawsuit from wildlife advocates who want to block the export of bobcat pelts from the United States.

Attorneys for trapping organizations said in recent court filings that the lawsuit against the U.S. Fish and Wildlife Service infringes on the authority of state and tribal governments to manage their wildlife.

The plaintiffs in the case allege the government’s export program doesn’t protect against the accidental trapping of imperiled species such as Canada lynx.

More than 30,000 bobcat pelts were exported in 2015, the most recent year for which data was available, according to wildlife officials. The pelts typically are used to make fur garments and accessories. Russia, China, Canada and Greece are top destinations, according to a trapping industry representative and government reports.

Federal officials in February concluded trapping bobcats and other animals did not have a significant impact on lynx populations.

The Fish and Wildlife Service regulates trade in animal and plant parts according to the Convention on International Trade in Endangered Species, or CITES, which the U.S. ratified in 1975.

The advocates’ lawsuit would “do away with the CITES export program,” according to attorneys for the Fur Information Council of America, Montana Trappers Association and National Trappers Association.

“They are seeking to interfere with the way the States and Tribes manage their wildlife, by forcing them to limit, if not eliminate, the harvesting of the Furbearers and at the very least restrict the means by which trapping is conducted,” attorneys Ira Kasdan and Gary Leistico wrote in their motion to dismiss the case.

Bobcats are not considered an endangered species. But the international trade in their pelts is regulated because they are “look-alikes” for other wildlife populations that are protected under U.S. law.

Critics of the government export program argue the government review completed in February did not look closely enough at how many lynx trappers inadvertently catch in traps set for bobcats or other furbearing species.

Pete Frost, an attorney for the plaintiffs, said the fur industry’s move to throw out the case “seeks to deprive citizens of their right to court review of the federal pelt export program.”

Between 2.3 million and 3.6 million bobcats lived in the U.S., with populations that were stable or increasing in at least 40 states, according to a 2010 study from researchers at Cornell University and the University of Montana.

 
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The Federal Communications Commission formally released a draft of its plan to kill net-neutrality rules, which equalized access to the internet and prevented broadband providers from favoring their own apps and services.

Now the question is: What comes next?

‘Radical departure’

The FCC’s move will allow companies like Comcast, AT&T and Verizon to charge internet companies for speedier access to consumers and to block outside services they don’t like. The change also axes a host of consumer protections, including privacy requirements and rules barring unfair practices that gave consumers an avenue to pursue complaints about price gouging.

FCC Chairman Ajit Pai says his plan eliminates unnecessary regulation. But many worry that his proposal will stifle small tech firms and leave ordinary citizens more at the mercy of cable and wireless companies.

“It would be a radical departure from what previous (FCC) chairs, of both parties, have done,” said Gigi Sohn, a former adviser to Tom Wheeler, the Obama-era FCC chairman who enacted the net neutrality rules now being overturned. “It would leave consumers and competition completely unprotected.”

During the last Republican administration, that of George W. Bush, FCC policy held that people should be able to see what they want on the internet and to use the services they preferred. But attempts to enshrine that net-neutrality principle in regulation never held up in court – at least until Wheeler pushed through the current rules now slated for termination.

Pai’s proposals stand a good chance of enactment at the next FCC meeting in December. But there will be lawsuits to challenge them.

More details

The formal proposal reveals more details of the plan than were in the FCC’s Tuesday press release. For instance, if companies like Comcast, AT&T and Verizon decide to block a particular app, throttle data speeds for a rival service or offer faster speeds to companies who pay for it, they merely need to disclose their policies for doing so.

The FCC also says it will pre-empt state rules on privacy and net neutrality that contradict its approach. Verizon has noted that New York has several privacy bills pending, and that the California legislature has suggested coming up with its own version of net neutrality rules should the federal versions perish.

The plan would leave complaints about deceptive behavior and monitor privacy to the Federal Trade Commission, which already regulates privacy for internet companies like Google and Facebook.

Best behavior

Broadband providers are promising to be on their best behavior. Comcast said it doesn’t and won’t block, throttle or discriminate against lawful content. AT&T said that “all major ISPs have publicly committed to preserving an open internet” and that any ISP “foolish” enough to manipulate what’s available online for customers will be “quickly and decisively called out.” Verizon said that “users should be able to access the internet when, where, and how they choose.”

Some critics don’t put much weight on those promises, noting that many providers have previously used their networks to disadvantage rivals. For example, the Associated Press in 2007 found Comcast was blocking some file-sharing. AT&T blocked Skype and other internet calling services on its network on the iPhone until 2009.

But others suggest fear of a public uproar will help restrain egregious practices such as blocking and throttling. “I’m not sure there’s any benefit to them doing that,” said Sohn. “It’s just going to get people angry at them for no good reason. They don’t monetize that.”

Fast lanes, slow lanes

Sohn, however, suggests there’s reason to worry about more subtle forms of discrimination, such as “paid prioritization.” That’s a term for internet “fast lanes,” where companies that can afford it would pay AT&T, Verizon and Comcast for faster or better access to consumers.

That would leave startups and institutions that aren’t flush with cash, like libraries or schools, relegated to slower service, said Corynne McSherry, legal director at the Electronic Frontier Foundation, a digital-rights group. In turn, startups would find it harder to attract investors, Sohn said.

Michael Cheah, general counsel of the video startup Vimeo, said broadband companies will try to lay groundwork for a two-tiered internet – one where cash-strapped companies and services are relegated to the slow lane. To stay competitive, small companies would need to pony up for fast lanes if they could – but those costs would ultimately find their way to consumers.

The view is different at the Information Technology and Innovation Foundation, a Washington, D.C., think tank funded by Google and other established tech companies. Doug Brake, a telecom policy analyst at the foundation, said there’s little chance broadband companies will engage in “shenanigans,” given how unpopular they already are with the public.

Brake likewise played down the threat of internet fast lanes, arguing that they’ll only be useful in limited situations such as high-quality teleconferencing. Like the FCC, he argued that antitrust law can serve to deter “potentially anticompetitive” behavior by internet providers.
…

Toys and TVs at J.C. Penney, Barbies at Best Buy, kitchen appliances like wine refrigerators at B.J.’s. As the holiday shopping season officially kicks off Thursday, shoppers may find some surprises at their favorite stores.

Even as retailers are counting on a lift from a better economy, they’re looking beyond economic data and mapping out ways to pick up sales from other retailers as Amazon expands its reach. That can mean opening earlier than rivals on the holidays or even jumping into new product categories. The fight for market share comes as analysts at Bain say Amazon is expected to take half of the holiday season’s sales growth. And Amazon is the top destination for people to begin holiday shopping, according to a September study by market research firm NPD Group.

“The retailers are in survival mode. It’s about stealing each other’s market share,” said Marshal Cohen, chief industry analyst at NPD. “Amazon is the Grinch. They’re stealing the growth.”

WATCH: Black Friday shoppers

​With the jobless rate at a 17-year-low of 4.1 percent and consumer confidence stronger than a year ago, analysts project healthy sales increases for November and December. The National Retail Federation trade group expects sales for that period to at least match last year’s rise of 3.6 percent and estimates online spending and other non-store sales will rise 11 percent to 15 percent.

Amazon is expected to be a big beneficiary as it cements loyalty among its Prime members and moves into new services and private-label merchandise. The company has introduced more than 20 such brands in the past two years in clothing, electronics, groceries and more, says Bain.

That leaves stores looking at rivals to see where they can pick up sales. There are extra dollars up for grabs this year, after thousands of store locations have closed and several retailers including Gymboree and Toys R Us filed for bankruptcy protection.

Jordan Ascencio, who has sons aged 1, 7, and 8, plans to bypass Toys R Us on Black Friday after being turned off by what she says are dirty stores and skimpy supplies. The latest problem: Her online order was canceled following a large-scale coupon glitch.

“I am not a fan anymore,” said the resident of Sapulpa, Oklahoma. Instead, she plans to buy toys at J.C. Penney and Target.

And with Gymboree shuttering a quarter of its stores, Ascencio is buying more of her children’s clothing at Target, which has launched a number of new private label brands.

Target CEO Brian Cornell recently highlighted that up to $60 billion in consumer spending will be up for the taking in the next few years, and said the chain has been picking up market share in such areas as clothing.

A weekend of shopping

The Thanksgiving weekend, when stores go all-out to attract shoppers, can be an indication of how well they’ll do through the season. About 69 percent of Americans, or 164 million people, intend to shop at some point during the five-day period from Thanksgiving to Cyber Monday, according to a survey released by the National Retail Federation. It expects Black Friday to remain the busiest day, with about 115 million people planning to shop then.

Stores like Macy’s, Target and Kohl’s are set to open Thursday evening as they try to woo early shoppers. Walmart starts deals in its stores at 6 p.m. J.C. Penney is opening its doors at 2 p.m., an hour earlier than last year and at least three hours ahead of its department store rivals.

Some retailers are using the weekend to test new product areas before committing to them year-round: Penney says it will have TVs and consumer electronics like game consoles as doorbusters for Thanksgiving and Black Friday only. Penney has also added year-round toy shops and increased its selection of work pants as an apparent move to grab market share from Sears, after last year going back to selling major appliances.

Penney’s Senior Vice President James Starke called these moves “market share plays.”

Both Walmart and Target have been expanding their exclusive toys offerings. Walmart is throwing parties in its stores including ones where kids can play with new toys. Best Buy created its first toy booklet for the holidays. And in its Black Friday ad, the chain features Barbies among smart TVs and other electronics.

Chris Baldwin, CEO of BJ’s Wholesale Club, says it is offering more toys and clothes. In clothing, it’s been able to offer key national brands in areas like casual athletic wear amid rampant store closures. And he says clothing sales are up by at least 10 percent as people don’t go to the mall as much.

“There’s no question that consumer spending has started to tick up and confidence is a little bit better, which is terrific, but we are also seeing some benefit from other retailers,” he said.
…

When Gonzalo Perez bought the Castlewood Restaurant last December, it was one of the few outposts among the nearby corn and soybean fields hungry farmers could depend as a place to dine out.

It could become much more than that for Perez.

“It’s my lottery ticket,” he told VOA.

That’s because one of the largest economic development projects in the United States is moving in… right next door.

Taiwanese company Foxconn plans to build a massive flat screen manufacturing and technology facility in nearby Mount Pleasant, employing thousands of workers when completed.

It’s only a few kilometers away from Perez’s restaurant, and he hopes to start cashing in… soon.

“I hope I get a lot of business from construction people in the beginning,” he told VOA from the dining room of another restaurant he owns in a neighboring town which could also benefit from the economic boom the project could bring to the entire region.

WATCH: Foxconn deal

​ “You are going to probably bring a lot of hotels to the area, bring a lot of chain restaurants to the area. This is a big industry,” Perez explained.

“As they build this facility they are going to require 10,000 construction employees, plus around another 6,000 indirect employees,” says Mark Hogan, Secretary and CEO of the Wisconsin Economic Development Corporation, or WEDC. 

“When this ecosystem is up and running in the state of Wisconsin it will be an additional 13,000 employees to the state, and another upwards of 20,000 indirect or induced jobs.”

Hogan’s WEDC is one of the chief institutions in the state that worked on the deal to attract Foxconn to Wisconsin.

“We passed special legislation which really created a pathway for the company to be successful in the state. And that had to do with environmental regulations. It had to do with incentives. It had to do with a lot of different things that just kind of cleared a pathway. All things that every other company in the state would have to comply with, but we wanted to create a faster lane for the company to be able to operate under.”

In the package offered to Foxconn is approximately $3 billion dollars in tax incentives if the company invests around $10 billion dollars in its facility and workforce. But those incentives meant to entice the company were also a concern among its critics.

“This is the largest in U.S. history, and it was somewhat surprising because Wisconsin does not generally play this game,” says Steven Deller, Professor of Applied Economics and an Economic Development Specialist with the University of Wisconsin, Madison.

 Deller says one of his concerns, not just as an academic but also as a taxpayer, is the potential for the state to actually owe money to Foxconn.

“But there is the Wisconsin Agricultural and Manufacturing Tax Credit,” he explained to VOA. “The way that the taxpayers may be on the hook for paying some money, if Foxconn is not paying taxes, and they have a tax credit, that means the state is paying Foxconn. So a lot of it is going to hinge on how big that facility becomes. Right not its starting at 3,000 – it could go up to 13,000. We have no idea how big it will actually become.”

For Gonzalo Perez, who came to the U.S. from Mexico 30 years ago and worked his way up from being a laborer in restaurants to now owning two of them, his biggest concern isn’t the size of the plant’s workforce or the tax incentives … it’s the potential increase in the number of his customers.

Right now he says about 200 people visit his restaurant on a good day.

“I hope to triple that,” he says.

He may not have to wait long to see an uptick in business. 

Groundbreaking on the new facility is planned for 2018, and as many as 1000 Foxconn employees could be working in the state later that year. 
…

The $10 billion-dollar deal to bring a Taiwanese-based electronics manufacturer to Wisconsin is raising questions from critics despite the promise that the investment could provide tens of thousands of new American jobs and other long term benefits. The deal’s critics say Wisconsin taxpayers could lose money in what is the largest U.S. state tax incentive package ever offered to a foreign company. VOA’s Kane Farabaugh has more from Racine, Wisconsin.
…

Babies are much more likely to die in their first few weeks of life if their mothers live close to the site of an oil spill, according to new research. Scientists studied data on infant mortality and oil spills in Nigeria’s Niger delta region – and describe their results as ‘shocking’. Henry Ridgwell reports.
…

The fashion and textile industry could generate nearly half a million jobs in sub-Saharan Africa over the next decade. That’s according to the African Development Bank, which launched its “Fashionomics” initiative in 2015 to revitalize the industry. However, designers in the region still struggle to grow their businesses. Lenny Ruvaga reports for VOA from Nairobi.
…

Iraq and General Electric have signed a deal to develop Iraq’s power infrastructure, which would help bring much-needed electricity to areas facing significant shortages across the country.

GE says in a statement released Wednesday that the more than $400 million contract will help building 14 electric substations and supply critical equipment such as transformers, circuit breakers and other outdoor equipment to revamp existing substations.

GE says the substations will hook up power plants in the provinces of Ninevah, Salahuddin, Anbar, Baghdad, Karbala, Qadissiyah and Basra to the national grid.

It says GE will also help Iraq’s Ministry of Electricity secure funding through various financial institutions.

Despite billions of dollars spent since the 2003 U.S.-led invasion, many Iraqi cities and towns are still experiencing severe power cuts and rolling blackouts.
…

Venezuelan authorities arrested the acting president of Citgo, the U.S. subsidiary of state-owned Petroleos de Venezuela SA (PDVSA), along with five other senior executives Tuesday for alleged corruption.

Attorney General Tarek William Saab told a press conference that interim president Jose Pereira and other managers allegedly arranged contracts that put Citgo at a disadvantage. The company operates refineries in Illinois, Texas and Louisiana with a capacity of 749,000 barrels per day.

“They did it with total discretion, without even coordinating with the competent authorities,” Saab said. “This is corruption, corruption of the most rotten kind.”

The six were accused of misappropriation of public funds, association to commit crimes and legitimation of capital, among other crimes.

The other five detainees were identified as Tomeu Vadell, vice president of Refining Operations; Alirio Zambrano, vice president and general manager of the Corpus Christi Refinery; Jorge Toledo, Vice President of Supply and Marketing; Gustavo Cardenas, Vice President of Strategic Relations with Shareholders and Government, and Jose Luis Zambrano; Vice President of Shared Services.

Last month, a senior executive of PDVSA and a dozen officials were arrested for alleged embezzlement.

But members of the Venezuelan opposition argue that recent investigations do not demonstrate a genuine intention of the government to eradicate corruption, but only reflect internal struggles of PDVSA.

VOA Latin America contributed to this report.
…

The U.S. Justice Department is suing to stop AT&T’s multi-billion dollar bid to take over another communications giant, Time Warner, calling it illegal and likening it to extortion.

“The $108 billion acquisition would substantially lessen competition, resulting in higher prices and less innovation for millions of Americans,” a Justice Department statement said Monday.

“The combined company would use its control over Time Warner’s valuable and highly popular networks to hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute those networks.”

CNN, HBO top Time Warner products

Time Warner’s products include CNN, HBO, TNT, The Cartoon Network, and Cinemax — these networks broadcast highly popular newscasts, movies, comedy and drama series, and sports.

AT&T and its subsidiary DirectTV distribute these programs, as well as others, thorough cable and satellite.

The Justice Department decries the possibility of AT&T not just controlling television productions, but also the means of bringing them into people’s homes.

In its lawsuit, it threw AT&T’s words right back at the communications giant, noting that AT&T recognizes that distributors with control over the shows “have the incentive and ability to use … that control as a weapon to hinder competition.”

It also cited a DirectTV statement saying distributors can withhold programs from their rivals and “use such threats to demand higher prices and more favorable terms.”

Assured transaction would be approved

AT&T’s CEO Randall Stephenson told reporters the Justice Department’s lawsuit “stretches the reach of anti-trust law to the breaking point.”

He said the “best legal minds in the country” assured AT&T that the transaction would be approved and said the government is discarding decades of legal precedent.

AT&T and Time Warner are not direct competitors, and AT&T says government regulators have routinely approved such mergers.

President Donald Trump has made no secret of his contempt for one of Time Warner’s crown jewels — CNN, the Cable News Network — because of his perception of CNN being a liberal biased provider of “fake news,” including direct attacks against his administration.

Trump vowed during last year’s presidential campaign to block the merger.

Stephenson called the matter “the elephant in the room,” saying he said he “frankly does not know” if the White House disdain for CNN is at the heart of the Justice Department lawsuit.

But he said a proposal that Time Warner sell-off CNN as part of a settlement with the Trump Justice Department would be a “non-starter.”
…

U.S. stocks are higher Monday as technology and industrial companies, banks and retailers all make modest gains. Drugmakers and other health care companies are trading lower. Companies that make opioid pain medications are down sharply after the government released a much higher estimate of the costs of the ongoing addiction crisis.

Keeping score

The Standard & Poor’s 500 index picked up 5 points, or 0.2 percent, to 2,584 as of 2:15 p.m. Eastern time. The Dow Jones industrial average gained 94 points, or 0.4 percent, to 23,452. The Nasdaq composite advanced 7 points, or 0.1 percent, to 6,789. The Russell 2000 index of smaller-company stocks edged up 6 points, or 0.4 percent, to 1,499.

Tech tie-up

Chipmaker Marvell Technology Group said it will buy competitor Cavium for $6 billion in the latest deal in the semiconductor industry. Cavium climbed $7.48, or 9.9 percent, to $83.31 and it is up 22 percent over the last two weeks on reports Marvell would make a bid. Marvell rose $1.02, or 5 percent, to $21.31.

Other technology companies climbed as well. IBM added $2.01, or 1.3 percent, to $150.98 and Applied Materials picked up $1.12, or 2 percent, to $57.61. Cisco Systems gained 55 cents, or 1.5 percent, to $36.45.

Retail rising again

Retailers continued to move higher. They climbed last week following solid quarterly reports from Wal-Mart, Gap and Ross Stores. That’s given investors hope that shoppers are ready to spend more money. Home improvement retailer Home Depot rose $2.68, or 1.6 percent, to $170.42 and clothing company PVH rose $2.90, or 2.2 percent, to $136.02. Sporting goods retailer Hibbett Sports, after a 15-percent surge Friday, added $1.85, or 10.8 percent, to $18.95.

General electric slide

Industrial companies rose, as 3M gained $2.56, or 1.1 percent, to $231.92 and Boeing added $2.39 to $264.65.

General Electric missed out on those gains as investors continued to wonder about the company’s direction. On Sunday, the Wall Street Journal said that directors with energy and financial backgrounds, as well as GE’s two longest-tenured directors, are likely to leave the board as it shifts its focus away from those industries. The company said earlier this month that it will reduce the number of directors to 12 from the current 18.

GE lost 24 cents, or 1.3 percent, to $17.97.

Drugmaker downturn

A White House group said the opioid drug epidemic cost the U.S. $504 billion in 2016, far larger than other recent estimates, and companies that make those pain medications traded sharply lower.

Last year a separate estimate said the crisis cost the country $78.5 billion in 2013, including lost productivity and health care and criminal justice spending. The Council of Economic Advisers said the new figure reflects the worsening crisis and that earlier figures didn’t calculate deaths or include the use of illegal drugs.

Teva Pharmaceutical Industries fell 77 cents, or 5.6 percent, to $13.07 and Allergan gave up $3.78, or 2.2 percent, to $171.10. Endo International lost 26 cents, or 3.5 percent, to $7.28. Insys Therapeutics shed 20 cents, or 3.6 percent, to $6.18. Executives including Insys’ founder and its former CEO have been charged with offering kickbacks to doctors to get them to prescribe its fentanyl spray Subsys. Its stock traded above $40 in mid-2015.

Merck-y future?

Merck stumbled after Genentech, a unit of Swiss drugmaker Roche, reported positive results from a study of its drug Tecentriq as a primary treatment for lung cancer. Genentech said patients who were given Tecentriq as part of their treatment regimen were less likely to die or see their cancer get worse.

The results could affect sales of Merck’s drug Keytruda and Bristol-Myers Squibb’s Opdivo. Merck fell $1.10, or 2 percent, to $54.10 and Bristol-Myers Squibb lost 66 cents, or 1.1 percent, to $60.63.

Energy

Benchmark U.S. crude fell 50 cents to $56.05 a barrel in New York. Brent crude, which is used to price international oils, dropped 67 cents, or 1.1 percent, to $62.05 a barrel in London.

Currencies

The dollar rose to 112.64 yen from 112.13 yen late Friday. The euro slipped to $1.1737 from $1.1796 after a group of German political parties couldn’t agree to form a government, which might mean new elections are on the way. A weaker euro is good for companies that export a lot of products, and the German DAX was up 0.7 percent while France’s CAC 40 rose 0.5 percent. The FTSE 100 in Britain added 0.2 percent. In Japan, the Nikkei 225 index lost 0.6 percent and South Korea’s Kospi shed 0.3 percent. Hong Kong’s Hang Seng index added 0.2 percent.

Bonds

Bond prices edged lower. The yield on the 10-year Treasury note rose to 2.37 percent from 2.35 percent.

Metals

Gold slumped $21.20, or 1.6 percent, to $1,275.30 an ounce. Silver sank 53 cents, or 3.1 percent, to $16.84 an ounce. Copper gained 3 cents to $3.09 a pound.
…

Fed Chair Janet Yellen says she will leave the U.S. central bank’s board when her successor is sworn in early next year.

Jerome Powell was chosen by President Donald Trump to head the Federal Reserve when Yellen’s term expires. Powell must be confirmed by the U.S. Senate before he can take office, but analysts say his approach to managing interest rates is similar to Yellen’s. She is credited with managing the economy in ways that boosted recovery from the 2007 recession and cut unemployment in half.

In her resignation letter to Trump, Yellen said she is “gratified that the financial system is much stronger than a decade ago.” She also noted “substantial improvement in the economy since the crisis.”

Yellen is the first woman to lead the Fed, and was a member of its board of governors before taking the leadership role. Her term on the board does not officially expire until 2024, and she could have stayed on if she wished to do so.

Candidate Trump criticized Yellen during his campaign, but praised her work after he became president.

Yellen has served as vice chair of the Fed, president of the Federal Reserve Bank of San Francisco, and head of President Bill Clinton’s Council of Economic Advisers. She has researched and taught economics at the University of California at Berkeley.
…

Opioid drug abuse, which has ravaged parts of the United States in recent years, cost the economy as much as $504 billion in 2015, White House economists said in a report made public on Sunday.

The White House Council of Economic Advisers (CEA) said the toll from the opioid crisis represented 2.8 percent of gross domestic product that year.

President Donald Trump last month declared the opioid crisis a public health emergency. While Republican lawmakers said that was an important step in fighting opioid abuse, some critics, including Democrats, said the move was meaningless without additional funding.

The report could be used by the Trump White House to urge Republicans in Congress – who historically have opposed increasing government spending – to provide more funding for fighting the opioid crisis by arguing that the economic losses far outweigh the cost of additional government funding.

Using a combination of statistical models, the CEA said the lost economic output stemming from 33,000 opioid-related deaths in 2015 could be between $221 billion and $431 billion, depending on the methodology used.

In addition, the report looked at the cost of non-fatal opioid usage, estimating a total of $72 billion for 2.4 million people with opioid addictions in 2015. Those costs included medical treatment, criminal justice system expenses and the decreased economic productivity of addicts.

The CEA said its estimate was larger than those of some prior studies because it took a broad look at the value of lives lost to overdoses. The CEA also said its methodology incorporated an adjustment to reflect the fact that opioids were underreported on death certificates.

“The crisis has worsened, especially in terms of overdose deaths which have doubled in the past ten years,” the CEA said.

“While previous studies have focused exclusively on prescription opioids, we consider illicit opioids including heroin as well.”

Opioids, primarily prescription painkillers, heroin and fentanyl, are fueling the drug overdoses. More than 100 Americans die daily from related overdoses, according to the U.S. Centers for Disease Control and Prevention.
…

Talks to update the North American Free Trade Agreement appeared to be in danger of grinding toward a stalemate amid complaints of U.S. negotiators’ inflexibility, people familiar with the process said on Sunday.

The United States, Canada and Mexico are holding the fifth of seven planned rounds of talks to modernize NAFTA, which U.S. President Donald Trump blames for job losses and big trade deficits for his country.

Time is running short to reach a deal before the March 2018 start of Mexico’s presidential elections, and lack of progress in the current round could put the schedule at risk.

“The talks are really not going anywhere,” Jerry Dias, president of Unifor, the largest Canadian private-sector union, told reporters after meeting with Canada’s chief negotiator on Sunday. “As long as the United States is taking the position they are, this is a colossal waste of time,” said Dias, who is advising the government and regularly meets the Canadian team.

Hanging over the negotiations is the very real threat that Trump could make good on a threat to scrap NAFTA.

Canada and Mexico object to a number of demands the U.S. side unveiled during the fourth round last month, including for a five-year sunset clause that would force frequent renegotiation of the trade pact, far more stringent automotive content rules and radical changes to dispute settlement mechanisms.

Calls for greater US flexibility

“Our internal view as of this morning is that if any progress is to be made, the United States needs to show some flexibility and a willingness to do a deal,” said a Canadian source with knowledge of the talks.

“We are seeing no signs of flexibility now,” added the source, who requested anonymity given the sensitivity of the situation. However, a NAFTA country official familiar with the talks said Canada had not yet submitted any counterproposals to the U.S. demands.

Dias said the United States was showing some signs of flexibility over its sunset clause proposal after Mexican officials floated a plan for a “rigorous evaluation” of the trade pact, but without an automatic expiration.

U.S. negotiating objectives that were updated on Friday appeared to accommodate the Mexican proposal, saying the revised NAFTA should “provide a mechanism for ensuring that the Parties assess the benefits of the Agreement on a periodic basis.”

Canada and Mexico are also unhappy about U.S. demands that half the content of North American-built autos come from the United States, coupled with a much higher 85 percent North American content threshold. Officials are due to discuss the issue from Sunday through the end of the fifth round on Tuesday, Flavio Volpe, president of the Canada’s Automotive Parts Manufacturers’ Association, said there was little chance of making substantial progress on autos in Mexico City, as the U.S. demands were still not fully understood.

“I don’t expect a heavy negotiation here,” he said in an interview on the sidelines of the talks.
…

Britain will submit its proposals on how to settle its financial obligations to the European Union before an EU Council meeting next month, finance minister Philip Hammond said on Sunday.

British Prime Minister Theresa May was told on Friday that there was more work to be done to unlock Brexit talks, as the European Union repeated an early December deadline for her to move on the divorce bill.

“We will make our proposals to the European Union in time for the council,” Hammond told the BBC.

Last week, May met fellow leaders on the sidelines of an EU summit in Gothenburg, Sweden, to try to break the deadlock over how much Britain will pay on leaving the bloc in 16 months.

She signaled again that she would increase an initial offer that is estimated at some 20 billion euros ($24 billion), about a third of what Brussels wants.
…

Brexit is still well over year away but two European cities on Monday will already be celebrating Britain’s departure from the European Union.

Two major EU agencies now in London — the European Medicines Agency and the European Banking Authority — must move to a new EU city because Britain is leaving the bloc. The two prizes are being hotly fought over by most of the EU’s other 27 nations.

Despite all the rigid rules and conditions the bloc imposed to try to make it a fair, objective decision, the process has turned into a deeply political beauty contest — part Olympic host city bidding, part Eurovision Song Contest.

It will culminate in a secret vote Monday at EU headquarters in Brussels that some say could be tainted by vote trading.

The move involves tens of millions in annual funding, about 1,000 top jobs with many more indirectly linked, prestige around the world and plenty of bragging rights for whichever leader can bring home the agencies.

“I will throw my full weight behind this,” French President Emmanuel Macron said when he visited Lille, which is seeking to host the EMA once Britain leaves in the EU in March 2019. “Now is the final rush.”

At an EU summit Friday in Goteborg, Sweden, leaders were lobbying each other to get support for their bids.

The EMA is responsible for the scientific evaluation, supervision and safety monitoring of medicines in the EU. It has around 890 staff and hosts more than 500 scientific meetings every year, attracting about 36,000 experts.

The EBA, which has around 180 staff, monitors the regulation and supervision of Europe’s banking sector.

With bids coming in from everywhere — from the newest member states to the EU’s founding nations — who gets what agency will also give an indication of EU’s future outlook.

The EU was created as club of six founding nations some 60 years ago, so it’s logical that a great many key EU institutions are still in nations like Germany, France and Belgium. But as the bloc kept expanded east and south into the 21st century, these new member states see a prime opportunity now to claim one of these cherished EU headquarters, which cover everything from food safety to judicial cooperation to fisheries policy.

Romania and Bulgaria were the last to join the EU in 2007 and have no headquarters. Both now want the EMA — as does the tiny island nation of Malta.

“We deserve this. Because as we all know, Romania is an EU member with rights and obligations equal with all the rest of the member states,” said Rodica Nassar of Romania’s Healthcare Ministry.

But personnel at the EMA and EBA are highly skilled professionals, and many could be reluctant to move their careers and families from London to less prestigious locations.

“You have to imagine, for example, for the banking authority, which relies on basically 200 very high-level experts in banking regulatory matters to move to another place,” said Karel Lannoo of the CEPS think tank. “First of all, to motivate these people to move elsewhere. And then if you don’t manage to motivate these people, to find competent experts in another city.”

As the vote nears, Milan and Bratislava are the favorites to win the EMA, with Frankfurt, and perhaps Dublin, leading the way for the EBA.

 
…

When it comes to cars, generally there are three options, there is gas, a gas-battery hybrid, or a full electric car. But for a fourth option, some car companies are banking on hydrogen as the fuel of the future. VOA’s Kevin Enochs reports.
…

When the heaviest rain of tropical storm Harvey had passed, Kathryn Clark’s west Houston neighborhood had escaped the worst. Then the dams were opened — a decision by the U.S. Army Corps of Engineers to prevent upstream flooding and potential dam failures by releasing water into Buffalo Bayou, just a few hundred feet from the end of Clark’s street.

When she and her husband returned to survey the damage later that week, they entered their two-story home by kayak in roughly three feet of water. In the kitchen, a snake slithered past.

Nothing like that had happened in the nearly 11 years the Clarks have lived there; it got Kathryn thinking about their long-term plans, including whether to rebuild.

“What if they decide to open the dams again?” she asked. “But if you don’t rebuild, you just walk away, and that is a big loss.”

The Clarks ultimately opted to reconstruct, a process that will take another half-year before they can move back in. Elsewhere in the city, the waiting will be longer.

​A sprawling concrete jungle

In early November, Texas Governor Greg Abbott told reporters that Texas will need more than $61 billion in federal aid, to help fund a reconstruction plan that he said would curtail damage from future coastal storms. However, he added, there will be more requests: “This is not a closed book.”

Hurricane Harvey, the costliest storm in U.S. history, will affect Houston for months, and years. Apart from tens of thousands of ongoing home rebuilding projects, civil construction is in the evaluation phase.

“With Katrina, it actually took them 12 years before FEMA [Federal Emergency Management Agency] made their final payment to the city of New Orleans,” said Jeff Nielsen, executive vice president of the Houston Contractors Association. “That’s how long it takes to really test and figure out where all the repairs and where all the damage occurred.”

Houston covers a landmass of 1,600 square kilometers, compared to New Orleans’ 900, and is much more densely populated. The impermeable concrete jungle experienced major runoff during the storm, and that translates to high civil construction costs in roads, bridges, water, sewage and utility lines that are difficult to determine.

WATCH: Post-Harvey Houston: Years Until Recovery, Unknown Costs

Nielsen explains to VOA the immensity of the task. 

“You may be driving down the road one day and, all of a sudden — boom — there is a 10-foot sinkhole underneath the road because there is a water line or a sewer line or a storm sewer line that runs underneath that road.

“There is no way to tell that that’s happening without going through and testing each and every line,” Nielsen said.

​Waiting, waiting

Rob Hellyer, owner of Premier Remodeling & Construction, says Houston has seen an uptick in inquiries for both flood and nonflood-related projects — good for business, but a challenge for clients.

“A lot of those people come to the realization that ‘If we want to get our project done in the next two or three years, we better get somebody lined up quick,’” Hellyer told VOA.

But industrywide, much of the workforce is dealing with flooding issues of their own, while simultaneously attempting to earn a living.

“It really has disbursed that labor pool that we have been using for all these years,” Hellyer said.

Labor shortages in construction-related jobs have long been a challenge despite competitive wages, according to Nielsen, who describes his field — civil construction — as less-than-glamorous.

“Outside, it’s hot. What could be more fun than pouring hot asphalt on a road?” he asked.

Networking barriers

With construction costs up and waiting periods long, the hands-on rebuilding effort is typically attractive for some lower-wage immigrant communities.

Among the city’s sizable Vietnamese population, though, that’s not exactly the case, said Jannette Diep, executive director of Boat People SOS Houston office (BPSOS), a community organization serving the area’s diaspora population.

“[Vietnamese construction workers] face not only a language barrier but that networking piece, because they’re not intertwined with a lot of the rules and regulations,” Diep said. “‘Well, how do I do the bid; what’s the process?’”

Overwhelmed with paperwork and often discouraged by limited communication skills in English, Diep says many within the industry opt to work only from within their own communities, despite more widespread opportunities across Greater Houston.

The same barriers apply to the Asian diaspora’s individual post-recovery efforts. BPSOS-Houston, according to Diep, remains focused on short-term needs — food, clothing, cleaning supplies — and expects the longer-term recovery to take two to three years, particularly in lower-income neighborhoods.

Love thy neighbor

Loc Ngo, a mother of seven and grandmother from Vietnam, has lived in Houston for 40 years, but speaks little English. In Fatima Village, a tightly knit single-street community of mobile homes — comprising 33 Vietnamese families — she hardly has to.

“They came to fix the home and it cost $11,000, but they’re not finished yet,” she explained, through her son’s translation. “The washer, dryer and refrigerator — I still haven’t bought them yet, and two beds!”

Across the street, the three-generation Le family levels heaps of dirt across a barren lot that’s lined by spare pipes and cinderblocks. They plan to install a new mobile home.

At the front end of the road is the village’s single-story church, baby blue and white, like the sky — the site of services, weddings, funerals and community gatherings.

Victor Ngo, a hardwood floor installer, typically organizes church events. But for now, his attention is turned to completing reconstruction of the altar and securing donations to replace 30 ruined benches.

“At first I had to spend two months to fix up my house, and now I finished my house, and I [have started] to fix up this church,” Ngo said. “So basically, I don’t go out there to work and make money. Not yet.”

In the village, made up largely of elders, Ngo stresses the importance of staying close to home to help with rebuilding, translation, and paperwork, at least for a while longer.

“We stick together as a community to survive,” he said.
…

Pro-trade Republicans in the U.S. Congress are growing worried that U.S. President Donald Trump may try to quit the NAFTA free trade deal entirely rather than negotiate a compromise that preserves its core benefits.

As a fifth round of talks to modernize the North American Free Trade Agreement kicked off in Mexico on Friday, several Republicans interviewed by Reuters expressed concerns that tough U.S. demands, including a five-year sunset clause and a U.S.-specific content rule, will sink the talks and lead to the deal’s collapse.

Business groups have warned of dire economic consequences, including millions of jobs lost as Mexican and Canadian tariffs snap back to their early 1990s levels.

“I think the administration is playing a pretty dangerous game with this sunset provision,” said Representative Charlie Dent, a moderate Republican from eastern Pennsylvania.

He said putting NAFTA under threat of extinction every five years would make it difficult for companies in his district, ranging from chocolate giant Hershey Co to small family owned manufacturing firms, to invest in supply chains and manage global operations.

Hershey operates candy plants in Monterrey and Guadalajara, Mexico.

Lawmakers’ letter

Nearly 75 House of Representatives members signed a letter this week opposing U.S. proposals on automotive rules of origin, which would require 50 percent U.S. content in NAFTA-built vehicles and 85 percent regional content.

They warned that this would “eliminate the competitive advantages” that NAFTA brings to U.S. automakers or lead to a collapse of the trade pact.

Representative Pete Sessions, a Texas Republican who has long been a supporter of free trade deals, said he disagreed with the Trump approach of “trying to beat someone” in the NAFTA talks. Texas is the largest U.S. exporting state with nearly half of its $231 billion in exports last year headed to Mexico and Canada, according to Commerce Department data.

“We need to offer Mexico a fair deal. If we want them to take our cattle, we need to take their avocados,” Sessions said.

Still, congressional apprehension about Trump’s stance is far from unanimous. The signers were largely Republicans, with no Democrats from auto-intensive states such as Michigan and Ohio signing.

Democratic support

Some pro-labor Democrats have actually expressed support for U.S. Trade Representative Robert Lighthizer’s tough approach.

“Some of those demands are in tune,” said Representative Bill Pascrell of New Jersey, the top Democrat on the House Ways and Means trade subcommittee.

“We don’t want to blow it up, Republicans don’t want to blow it up. But we want substantial changes in the labor, the environmental, the currency, on how you come to an agreement when there’s a dispute, and on problems of origin.”

Farm state Republicans are especially concerned that a collapse of NAFTA would lead to the loss of crucial export markets in Mexico and Canada for corn, beef and other products.

Senator Chuck Grassley of Iowa said Lighthizer in a recent meeting agreed that a withdrawal from NAFTA would be hard on U.S. agriculture, which has largely benefited from the trade pact.

U.S. agricultural exports to Canada and Mexico quintupled to about $41 billion in 2016 from about $9 billion in 1993, the year before NAFTA went into effect, according to U.S. Commerce Department data.

Grassley said, however, that Lighthizer’s approach was “taking everybody to the brink on these talks.”

Other Republicans are taking a wait-and-see approach to the talks.

Representative Frank Lucas of Oklahoma said he was willing to give Trump “the benefit of the doubt” on NAFTA talks, adding that farmers and ranchers in his rural district were strong Trump supporters in the 2016 election.

“The president’s a practical fellow. When push comes to shove, he understands the base,” Lucas said.
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The head of Canada’s biggest private-sector union headed to Mexico’s Senate on Friday, promising to fight at the NAFTA trade pact talks for improved Mexican wages and free collective bargaining as a way of benefiting workers across North America.

The issue of tougher labor standards has emerged as a key sticking point in the talks to update the North American Free Trade Agreement, and has brought disparate groups of workers from across the region closer to U.S. populists.

“There will not be an agreement” until the Mexican team agrees to free collective bargaining, the elimination of so-called yellow unions that are dominated by employers, and fair wages for Mexican workers, Unifor President Jerry Dias said.

The event held in a side chamber of the Senate was organized by the umbrella organization Better Without Free Trade Agreements, which represents dozens of social organizations and unions.

Dias argued that low wages have not only hurt Mexican workers but have also prompted manufacturing jobs in Canada and the United States to leave for Mexico.

By including much tougher labor standards in an updated NAFTA, the issue could be dealt with head on, he said. “When you start talking about low wages, we can deal with that under the dispute mechanism as an unfair subsidy.”

The fifth round of talks NAFTA is being held in the upscale Camino Real hotel in Mexico City.

“What Mexico offers in this negotiation and to the rest of the world is cheap labor. That’s what Mexico puts on the table and how it presents itself as an attractive place for investments,” Senator Mario Delgado of the leftist Party of the Democratic Revolution told Reuters.

“It is a shame and it is unsustainable for Mexico. … Our salary policy is putting at risk the existence of the treaty,” said Delgado.

Mexican business leaders argue that integrating Mexico into North American supply chains has made the entire region more competitive. Recent studies have shown, however, that wages in Mexico have experienced significant downward pressure.

Given Mexico’s higher inflation rates, wages are now lower there in real terms than when NAFTA took effect, according to a report published in August by credit rating agency Moody’s.

While formally employed workers earn significantly more, the statutory minimum wage is a mere 80 pesos ($4.23) a day.
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The Trump administration on Friday revised its negotiating objectives for revamping the North American Free Trade Agreement, largely to reflect the demands it has made in NAFTA talks on agriculture, intellectual property and investment.

The revised objectives are now in line with U.S. proposals to eliminate Canada’s import tariffs on dairy, poultry and egg products and to allow more protections for seasonal U.S. produce that is sensitive to imports from Mexico.

The U.S. Trade Representative’s office said it is keeping in place most of its NAFTA objectives, first published in July, including a first-ever goal of reducing U.S. trade deficits.

USTR Robert Lighthizer said that the revisions are aimed at keeping Americans informed about what the Trump administration is seeking in a revised NAFTA.

“If we are able to achieve these objectives, we will both modernize and rebalance NAFTA to better serve the interests of our workers, farmers, ranchers and businesses,” Lighthizer said in a statement.

The new objectives on investment and intellectual property rights add considerable detail, partly aimed at reflecting existing demands and partly aimed at setting precedents for future trade agreements.

On investment, the objectives now seek to provide “meaningful procedures for resolving investment disputes, while ensuring the protection of U.S. sovereignty and the maintenance of strong U.S. domestic industries.”

U.S. negotiators are seeking to allow countries to “opt in” to an investor-state dispute settlement mechanism and to eliminate panels that arbitrate anti-dumping disputes between NAFTA countries.

But the new objectives for NAFTA investment rules also seek to prohibit forced technology transfers and technology localization, a goal that seems more aimed at addressing U.S. complaints about Chinese investment practices.

On intellectual property, the new objectives specify that the USTR will seek U.S. equivalent standards on trademarks, patents, copyrights with some appropriate exceptions, undisclosed test or other data and trade secrets.

The wording on rules of origin goals was also slightly revised to conform with the U.S. demand that NAFTA-built cars and trucks contain 50 percent U.S.-specific content.

 
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It’s been more than two months since Hurricane Harvey destroyed or damaged tens of thousands of homes across Houston and east Texas, and cleanup is expected to last 20 months, overtaking Hurricane Katrina as the most expensive rebuilding effort in U.S. history. Undocumented workers are part of the daunting task of reconstructing America’s fourth-largest city. VOA’s Ramon Taylor reports they are doing so despite multiple risks.
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