Ira Gerhart finally found a place last year to fulfill his yearslong dream of opening a brewery: a 1923 Presbyterian church. It was cheap, charming and just blocks from downtown Youngstown.

But soon after Gerhart announced his plans, residents and a minister at a Baptist church just a block away complained about alcohol being served in the former house of worship.

“I get it, you know, just the idea of putting a bar in God’s house,” Gerhart said. “If we didn’t choose to do this, most likely, it’d fall down or get torn down. I told them we’re not going to be a rowdy college bar.”

With stained glass, brick walls and large sanctuaries ideal for holding vats and lots of drinkers, churches renovated into breweries attract beer lovers but can grate on the spiritual sensibilities of clergy and worshippers.

At least 10 new breweries have opened in old churches across the country since 2011, and at least four more are slated to open in the next year. The trend started after the 2007 recession as churches merged or closed because of dwindling membership. Sex abuse settlements by the Roman Catholic Church starting in the mid-2000s were not a factor because those payments were largely covered by insurers, according to Terrence Donilon, spokesman for the archdiocese of Boston.

Gerhart’s is scheduled to open this month after winning over skeptics like the Baptist minister and obtaining a liquor license.

“We don’t want (churches) to become a liquor store,” said Michael Schafer, spokesman for the Archdiocese of Cincinnati, which has imposed restrictions on turning closed churches into beer halls. “We don’t think that’s appropriate for a house of worship.”

At the Church Brew Works in Pittsburgh, an early church-turned-brewery that opened in 1996, patrons slide into booths crafted from pews. Towering steel and copper vats sit on the church’s former altar. Yellow flags line the sanctuary emblazoned with the brewery’s motto: “ON THE EIGHTH DAY. MAN CREATED BEER.”

Owner Sean Casey bought the former church because it was cheap and reminded him of beer halls he used to frequent in Munich. Aficionados cite its rustic decor as a major draw.

“It’s got that `wow’ factor,” said Jesse Anderson-Lehnan, 27. “But it still feels like a normal place, it doesn’t feel weird to come and sit at the bar and talk for a few hours.”

When St. John the Baptist Church was desanctified and sold to Casey, Roman Catholics in the diocese voiced their opposition, leading to the deed restrictions to stop other closed churches from becoming bars and clubs.

While the Diocese of Cincinnati also has imposed such restrictions, it’s unclear how much company it and Youngstown have. Limits also exist in the Diocese of Altoona-Johnstown, Pennsylvania, while the Boston archdiocese says it solicits proposals from potential buyers and screens them to make sure they’re in line with Catholic values.

Churches are uniquely difficult to renovate, preservationists say. Large stained windows and cavernous sanctuaries are tough to partition into condominiums. Historic landmark protections can bar new owners from knocking down some churches, leading them to sit empty and decay.

But the same vaulted ceilings that keep housing developers away from churches also lend them an old-world air hard to replicate elsewhere, making former houses of worship particularly suitable as dignified beer halls.

There, even clergy members sometimes aren’t so opposed to quaffing a pint. Some are regulars at the Church Brew Works, Casey said, where they can order Pipe Organ pale ale or Pious Monk dark lager.

Cincinnati’s Taft’s Ale House kicked off its grand opening in the 167-year-old St. Paul’s Evangelical Protestant Church with a “blessing of the beers.” A television report at the time shows the Rev. John Kroeger, a Catholic priest, giving the blessing.

“God of all creation, you gift us with friends, and food and drink,” he said, eyes cast upward. “Bless these kegs, and every keg that will be brewed here. Bless all those freshened here, and all those gathered in the days, and months, and years to come!”
…

Home to half the world’s Mountain gorilla and 50 percent of world bird species, conservation tourism marketing remains a challenge for Uganda.  In a first ever conservation Finance Giants Forum, Uganda also known as the Pearl of Africa, Friday, got an opportunity to market its beauty in a bid to lure more investors and tourists into the country.

Uganda held the first ever Conservation and Tourism Investment Forum Friday, gathering senior business figures from around the world.  

Emphasis was put on new marketing strategies, particularly the need for private sector investment to compliment traditional sources of conservation capital.

The government’s intention was to show investors that Uganda is open for responsible investment in the conservation sector and for conservation organizations to take note of the opportunity to co-manage protected areas with the government.  

Stephen Asiimwe is the Chief Executive Director Uganda Tourism Board.

“Because we’ve got forests, we’ve got Rift Valley, we’ve got the Mountains, we’ve got the national parks, we’ve got places near falls, we’ve got places near rivers, lakes,” said Asiimwe. “So basically, we are selling locations, which offer the customer at the end of the day a fantastic experience that gives them a sense of saying, I want to stay here.”

The investors made it clear what they needed from the government. Max Graham, founder of the elephant conservation group Space for Giants, one of the organizers of the conference, says Uganda has great conservation and tourism potential – but needs investment.

“It’s the opportunity for the first time really to have a very willing partner in government to create the right environment,” said Graham. “Political security, you know, security generally, great apes, and the opportunity to create a unique circuit and then finally a willing partner in government to help make the transaction simple. So, currently across most of Uganda’s protected areas, they are under-resourced. They don’t have the investment to maintain the roads. They don’t have the investment, and this is critical, to protect their wild life populations.”

Reassurance is what they got from President Yoweri Museveni.

“We have been able to establish a strong security system, a strong army which has been able to defeat terrorism,” he said. Then we had some strong anti-poaching measures, that’s how the elephant population came up. Then we have been able to work on some roads, like for instance Murchison Falls and now we have done one for Kibaale Forest Reserve. We are working on the roads to Karamoja, eventually to Kidepo, even towards Bwindi.”

In 2016 Uganda received one million three hundred tourists accounting for 1.3 billion dollars with hope of growing tourism figures to four million by 2020.

 
…

Two back-to-back hurricanes in the continental U.S. displaced more workers than first thought resulting in a net loss of 33 thousand jobs in September. But the job losses seem to have had little effect on the national unemployment rate, which fell to 4.2 percent the lowest since 2001. Mil Arcega has more.
…

Venezuelans already struggling to find food, medicine and other basic necessities have a new shortage to worry about: cash.

Troubling shortfalls of Venezuelan bolivars are forcing many in this distressed South American nation to form long lines outside banks several times a week to withdraw what little cash is available. Others are resorting to bartering goods and services to skirt cash transactions.

“As if we didn’t have enough problems already,” said Roberto Granadillo, 37, a watchmaker. “Now we can’t even find bills.”

Venezuelan President Nicolas Maduro blames the cash crunch on mafias moving bills overseas in an attempt to derail the nation’s economy, though he’s presented only scant evidence to back the claim.

What is certain is that the country’s triple-digit inflation continues to skyrocket, meaning Venezuelans must find larger quantities of the scarce bills to purchase even relatively inexpensive items like bread or a cup of coffee — or turn to electronic transfers from their bank accounts.

The Venezuelan government released new, higher denomination bills in values of 500, 5,000 and 20,000 bolivars earlier this year after the currency meltdown left the country’s then-largest note worth around 2 U.S. cents on the black market.

But now even the freshly minted bills, printed in rainbow hues and imported in part from the United States, are quickly dwindling in value. In January, one U.S. dollar was worth 4,578 bolivars on Venezuela’s pervasive black market; by October a U.S. dollar got you 29,170 bolivars, according to DolarToday, a website critical of the government that tracks the black market rate.

Analysts project Venezuela’s inflation could surpass 1,000 percent this year and many Venezuelans worry recently announced sanctions by the Trump administration prohibiting U.S. banks from issuing new credit to the Venezuelan government or its state oil company will deepen the economic crisis. In September, Venezuelan authorities enacted stricter banking and business regulations in an attempt to stem the tide of bolivar bills. Officials are also considering printing bills in even higher values.

The cash shortage is already being felt in the daily lives of Venezuelans like Granadillo, who said his weekly income has slipped more than 50 percent as customers use the bills they are able to obtain to purchase food instead of comparative luxuries like a watch repair.

Instead of cash, he has recently begun accepting a new form a payment: A kilo (2.2 pounds) of ham, chicken or beef in exchange for a newly ticking watch.

“You have to find a way to eat,” Granadillo said.

At the start of 2017, a 20,000 bolivar bill — the equivalent of about $6 and the largest denomination of Venezuelan currency — could easily purchase five basic food products: rice, coffee, corn flour, sugar and pasta. Now Jose Guerra, president of the opposition-controlled National Assembly’s Finance Commission, estimates that a 20,000-bolivar note only has the purchasing power to obtain just one of those and half a standard-sized portion of another. He said the bolivar’s value has crashed 75 percent between January and August, and that banks are limiting the amount of cash they let customers withdraw because the Central Bank is not providing enough bills.

“You need a lot more bills,” Guerra said. “And they aren’t there.”

The escalating cash crunch comes on the heels of four months of political upheaval that left at least 120 people dead in near-daily protests decrying Maduro’s rule. In early August, a new, all-powerful constitutional assembly was installed following a vote boycotted by the opposition. One of the new assembly’s first acts was to declare itself superior to all other branches of government, making the nation’s already weakened legislature an essentially powerless institution.

Jose Gil, director of Venezuelan polling firm Datanalisis, said the cash shortfall carries a “very high price” for Maduro’s government but the opposition has not been able to capitalize on the discontent.

Venezuela’s Central Bank injected 849 million bills in varying denominations into the nation’s economy up until August, three times the amount released over the same time period in 2016 — yet still not enough to keep up with inflation. It’s not uncommon to see Venezuelans paying for goods with large wads of cash, and authorities have opened investigations into citizens caught hoarding substantial amounts, even if they add up to relatively small dollar values.

In one high-profile probe, prosecutors last month seized 200 million bolivars — the equivalent of about $8,000 at the black market rate — from activist Lilian Tintori, the wife of Leopoldo Lopez, the country’s most prominent political prisoner. The cash was found in steel-clad wooden boxes in the back of her car. Tintori claimed the investigation was part of a pattern of persecution against her family and that the cash was needed to pay for emergencies including the hospitalization of her 100-year-old grandmother.

Venezuelan Banking Superintendent Antonio Morales recently told Union Radio that bolivar notes leaving banking institutions are not being returned, as typically happens when cash shifts from customers to commercial businesses and back to banks. He said investigators have uncovered evidence that contraband networks are moving paper cash out of Venezuela and into Colombia. Officials recently detained 121 people allegedly involved in currency crimes, though no details on the charges were released.

Morales also blamed some local businesses for hoarding cash.

Meanwhile, Venezuelans like Maria Castillo, who works in the kitchen at a public hospital, are struggling to purchase food to sustain their families with the little cash they are able to obtain. The 70-year-old recently waited in an hour-long line at her bank to take out the maximum allowed: 10,000 bolivars — the equivalent of $3.

A day later, she was back in line at the bank.

“I could only buy a package of rice,” Castillo said. “Now I’m waiting in line again for the same amount.”
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The U.S. Chamber of Commerce warned on Friday that the Trump administration was making “highly dangerous demands” in the North American Free Trade Agreement modernization talks that could erode U.S. business support and torpedo the negotiations.

John Murphy, the chamber’s senior vice president for international policy, said the largest U.S. business lobby was urging the administration to drop some of its more controversial NAFTA proposals, including raising rules of origin thresholds.

“We’re increasingly concerned about the state of play in negotiations,” Murphy told reporters.

​Fourth round of talks

U.S., Canadian and Mexican negotiators are preparing for a fourth round of talks to update the 23-year-old trade pact next week in a Washington suburb, Oct. 11-15.

U.S. companies large and small were worried about a proposal by U.S. Trade Representative Robert Lighthizer to add a five-year termination clause to NAFTA, Murphy said. 

He said there was also concern about Lighthizer’s proposal to reduce Canadian and Mexican companies’ access to U.S. public procurement contracts, and to include a U.S.-specific content requirement for autos and auto parts.

“We see these proposals as highly dangerous, and even one of them could be significant enough to move the business and agriculture community to oppose an agreement that included them,” Murphy said.

He also voiced similar concerns about U.S. proposals for revamping dispute settlement mechanisms and trade protections for seasonal U.S. produce.

Some U.S. lawmakers and congressional staff are also growing increasingly concerned that the talks can reach a successful conclusion. 

House Ways and Means Committee Chairman Kevin Brady, a pro-trade Republican, has invited Canadian Prime Minister Justin Trudeau to speak to the tax- and trade-focused panel Wednesday as negotiators return to the table, a committee spokeswoman said.

​Auto content

Inside U.S. Trade, a trade publication, stirred concerns among auto industry groups by quoting unnamed sources as saying that the Trump administration was also moving forward with a bid to increase North American content requirements for autos to 85 percent from the current 62.5 percent, with a new 50 percent U.S. content requirement.

U.S. Trade Representative spokeswoman Emily Davis declined to comment on the report, but said President Donald Trump had been clear about the need to shake up the agreement governing one of the world’s biggest trade blocs.

“NAFTA has been a disaster for many Americans, and achieving his objectives requires substantial change,” she said. “These changes of course will be opposed by entrenched Washington lobbyists and trade associations.”

Officials from auto industry trade groups said they had not seen a rules of origin proposal with such stringent targets.

“Forcing unrealistic rules of origin on businesses would leave the U.S. unable to compete by increasing the cost of manufacturing and raising prices for consumers,” said Cindy Sebrell, a spokeswoman for the Motor Equipment Manufacturers Association, which represents auto parts manufacturers.

Karen Antebi, the trade counselor at Mexico’s embassy in Washington, told a forum on Friday that while there were rumors of a 50 U.S. percent content demand for autos, formal texts had not been proposed on rules of origin.

“Mexico has been firm and consistent that country specific rules of origin within the NAFTA would be unacceptable,” she said.
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Robert L. McKay, who designed the first Taco Bell restaurant and with founder Glenn Bell turned it from a quirky food stand into a fast-food empire, has died. He was 86.

His son, Rob McKay, said McKay died last week of cancer.

Bell opened his first Taco Bell in Downey, California, in 1962, selling hard-shell tacos and other Mexican-inspired fast food.

McKay was an architect and designed the Spanish-style arched and tiled building that became the chain’s signature look.

McKay eventually became president of Taco Bell, which had 900 restaurants when it was sold to PepsiCo in 1978.

He went on to finance other businesses that invested in technology, consumer products, real estate and banking.
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French carmaker Renault said Friday that half of its models will be electric or hybrid by 2022 and it’s investing heavily in “robo-vehicles” with increasing degrees of autonomy.

A strategic plan released Friday aims to boost Renault annual revenues to 70 billion euros ($82.2 billion) by 2022 from 51 billion euros last year, in part through an effort to double sales outside its traditional markets in Europe — especially Russia and China.

The plans reflect the vision laid out last month by the Renault Nissan Mitsubishi alliance, the world’s No. 1 carmaker by sales. Many of Renault’s new aims depend on saving money through sharing platforms and development with Nissan and Mitsubishi.

CEO Carlos Ghosn said Renault is aiming to sell more than 5 million vehicles annually by 2022 from 3.2 million last year. The plan relies in part on boosting low-cost car production in emerging markets, notably with the Dacia Logan and Kwid mini-SUV.

As regulators crack down on emissions from combustion engines and as drivers seek cars that can do more by themselves, Ghosn wants to position Renault as a major player in mass-market electric and driverless cars.

“We are confident we can turn upcoming … challenges into significant business opportunities for Renault,” he said.

The company pledged to offer eight purely electric vehicle models and 12 hybrid models by 2022, compared with its 19 diesel or gasoline models sold worldwide, Ghosn said.

The world’s major carmakers are rethinking their strategies to profit from pivotal changes in the industry: autonomous cars, connected cars that share data, car-sharing where you don’t own a vehicle but order one by app, and low-emissions vehicles demanded by the European Union to fight climate change and by China, where many cities are fighting rampant pollution.

Investing in electric vehicles has hurt profitability in the past, but Ghosn says that should change as they grow in scale. He said electric cars “are turning into a significant contributor to our performance while other automakers are just starting the journey.”

Ghosn said Renault would retrain 13,000 people over the next five years to adapt to changing markets.

Renault is aiming to produce 2 million cars per year outside Europe compared with 750,000 cars in 2016, with a heavy push in Russia as its economy picks up.

Asked about challenges to Renault’s activity in Iran amid the possibility that the U.S. could reintroduce sanctions, Ghosn said: “Obviously if it becomes impossible to deal with Iran we will put a plan together for the suspension of our business there, but that’s not at all to say that we will leave Iran.”

Renault was active in Iran before the West imposed sanctions over its nuclear program and was among the first major companies to relaunch its Iranian business when the sanctions were lifted after the 2015 accord to curb Iran’s nuclear activities.

Ghosn insisted that Iran’s market has major potential. “If we can’t work there immediately, then we will work there in 1 year, 2 years, 3 years because I don’t think that this is a situation that can last forever.”
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The U.S. economy lost 33,000 jobs in September, reflecting the impact of hurricanes hitting the states of Florida and Texas, as well as other areas.

Friday’s report from the Labor Department also said the unemployment rate fell slightly to 4.2 percent, the lowest jobless figure since 2001.

Economists said many of those lost jobs were in Florida’s restaurants and bars, where storm damage, blackouts and closed airports hurt business. It is the first time in seven years the U.S. economy has had a net loss of jobs. Until September, the economy had been adding an average of more than 170,000 jobs each month this year.

The head of Randstad Sourceright, a firm that tracks global workforce trends, says the need to rebuild parts of Texas, Florida and Puerto Rico already is creating jobs in construction and other trades. Rebecca Henderson says she expects to see demand for more temporary jobs in the coming months.

While there was a net loss of jobs in the overall economy, the construction industry added 8,000 jobs in September, according to the Associated General Contractors. Construction firms continued to complain about a tight labor market and shortage of workers with key skills.  

American Enterprise Institute scholar Aparna Mathur says the impact of the hurricanes will probably pass in a few months, and notes improvements in the jobless rate, number of involuntary part-time employees, wages and other areas. IHS Markit economist Ben Herzon says the U.S. economy was benefiting from “solid momentum” before the hurricanes. 

At the same time, government data show 6.8 million Americans are out of work, which is a decline of more than 300,000 people over the past year. Another 5.1 million want full-time work, but can find only part-time employment.
…

Microsoft said Thursday that it would team up with communities in six states to invest in technology and related jobs in rural and smaller metropolitan areas.

Company President Brad Smith launched the TechSpark program Thursday in Fargo, a metropolitan area of more than 200,000 people that includes a Microsoft campus with about 1,500 employees. Smith said the six communities are different by design and not all have a Microsoft presence.

Smith says TechSpark is a multiyear, multimillion-dollar investment to help teach computer science to students, expand rural broadband, and help create and fill jobs, among other things. The other programs will be in Texas, Virginia, Washington, Wisconsin and Wyoming.

“This is really a blueprint for private-public partnerships,” said North Dakota Governor Doug Burgum, himself a former Microsoft executive.

Microsoft announced in July that it hoped to extend broadband services to rural America. The company said then that it would partner with rural telecommunications providers in 12 states with a goal of getting 2 million rural Americans high-speed internet over the next five years.

Microsoft planned to use “white space” technology, tapping buffer zones separating individual television channels in airwaves that could be cheaper than existing methods such as laying fiber-optic cable. The company had originally envisioned using it in the developing world, but shifted focus to the U.S. this summer.

Being ‘more present’

“We are a very diverse country,” Smith said. “It’s important for us to learn more about how digital technology is changing in all different parts of the country. So we are working to be more present in more places.”

Smith said there are 23.4 million Americans living in rural communities who don’t have broadband coverage and the TechSpark program is going to focus on bringing coverage to these six regions.

“The good news in North Dakota … is that it is in one of the strongest positions nationally in terms of the reach of broadband coverage,” he said. “But it still doesn’t reach everyone everywhere.”

Microsoft officials say there are nearly 500,000 unfilled computing jobs in the U.S. and that number is expected to triple by the end of next year. North Dakota currently has more than 13,000 job openings, many in computer software and engineering.

“The private sector doesn’t post a job unless they think they can make more money with the job filled than unfilled,” Burgum said. “So when we’re filling those jobs, we’re actually helping those companies become more profitable, which should help create more jobs. There’s no chicken-or-the-egg thing here.”

Microsoft on Thursday also selected Appleton, Wisconsin, as one of the six sites. The other communities will be announced later.

Smith said the success of the program would be measured first by how it provided digital skills to students and then by the job creation, economic growth and “making a difference in the lives of real people.”
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Oil and natural gas operators began evacuating staff and halting production at U.S. Gulf of Mexico platforms Thursday ahead of Tropical Storm Nate, the second storm in as many months to rattle the Gulf Coast energy corridor.

Nate, which has killed at least 10 people in Costa Rica and Nicaragua and caused intense rainfall, is forecast to scrape past Honduras and Mexico, enter the Gulf and strengthen into a hurricane before making landfall during the weekend in Louisiana, near several major refineries.

That path takes it through an area populated by offshore oil and natural gas platforms, which pump more than 1.6 million barrels of crude per day (bpd), about 17 percent of U.S. output, according to government data.

Oil, gas production curtailed

As of Thursday, about 14.6 percent of U.S. Gulf oil production, or 254,607 bpd, was offline, the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) said. About 6.4 percent of natural gas output in the area also was shut.

Forecasts for Nate have shifted in the past 24 hours. The National Hurricane Center (NHC) had forecast Wednesday that the storm would make landfall in the Florida panhandle.

BP Plc and Chevron Corp were shutting production at all Gulf platforms, while Royal Dutch Shell Plc and Anadarko Petroleum Corp suspended some production and some drilling activity in the Gulf.

Exxon Mobil Corp, Statoil and other producers have withdrawn personnel from their platforms.

Marathon Oil Corp and ConocoPhillips said they were monitoring Nate’s path but have taken no action yet.

Hangover from Harvey

Nate, the 14th named storm of the Atlantic hurricane season, comes less than two months after Hurricane Harvey tore through the Gulf, denting more than a quarter of oil production there, according to government data.

Several Texas ports have been unable to allow large tankers to return after Harvey as they wait for dredging of channels.

Some large tankers have been rerouted to Louisiana ports, some of which are now in Nate’s projected path.

The Louisiana Offshore Oil Port (LOOP), an offshore gathering hub for production platforms and crude imports from tankers, has not suspended operations and vessel activity around it continues as normal, officials said.

All Louisiana ports were open Thursday as authorities and the U.S. Coast Guard monitor the storm, according to the Port Association of Louisiana.

Refiners preparing

Refiners in Louisiana also have been scrambling ahead of Nate.

Shell was cutting back production Thursday at its 225,800-bpd Norco refinery, and Phillips 66 was considering temporarily shutting the 247,000-bpd Alliance refinery or placing it on standby, according to sources.

At least three other refineries were preparing to continue operation through Nate, sources familiar with plant operations said Thursday. PBF Energy Inc’s Chalmette, Louisiana, refinery planned to remain in operation, sources said.

PBF declined to discuss operations at the Chalmette refinery. A Shell spokesman was not available to comment.

Chevron said its Pascagoula, Mississippi, refinery was monitoring the storm’s progress. Exxon said the same about its refinery and chemical plant in Baton Rouge, Louisiana.

Marathon Petroleum Corp declined to discuss operations at the company’s Garyville, Louisiana, refinery.
…

Transgender people are no longer protected by federal civil rights laws banning workplace discrimination, Attorney General Jeff Sessions said Thursday.

In a memo to federal prosecutors, Sessions wrote that it is a matter of “law, not policy,” that the 1964 Civil Rights Act does not extend to gender identity. The act outlaws discrimination based on race, color, religion, sex or national origin.

The Obama administration ruled that the word “sex” applies to gender identity under civil rights laws.

But Sessions wrote Thursday that the word “sex” applies only to “biologically male or female” persons. He said U.S. attorneys should stay neutral in federal civil rights cases involving workplace discrimination.

But Sessions said this did not open the door to discrimination.

“The Justice Department must and will continue to affirm the dignity of all people, including transgender individuals,” he said.

Civil rights activists called Sessions’ decision another example of Trump administration indifference toward lesbian, gay, bisexual and transgender rights.

“Today marks another low point for the Department of Justice, which has been cruelly consistent in its hostility towards the LGBT community and in particular its inability to treat transgender people with basic dignity and respect,” James Esseks of the American Civil Liberties Union said.

The Trump White House has also proposed banning transgenders from serving in the U.S. military and overturned Obama administration guidance allowing students to use public school restrooms that correspond with their gender identity.
…

At 52 years old, with two grown children, Newton Gunathileka thought he should be working less by this point. Instead he has never worked so hard — and earned so little.

Gunathileka, from the Sri Lankan village of Periyakulam, in the North Western Puttalam District, is among hundreds of thousands of rural Sri Lankans who have borne the brunt of the worst drought in four decades.

He has not seen any substantial rains on his farm in at least a year and has lost two harvests, resulting in a loss of more than 200,000 Sri Lankan rupees ($1,325) — and growing debts. He has now abandoned his two acres of rice paddy land and spends his time looking, mainly unsuccessfully, for other work in 40 degree Celsius heat.

“There is no work. Everyone, big or small, has lost out to the drought,” he said.

According to data released in September by the United Nations, there are hundreds of thousands of households like Gunathileka’s facing serious food security issues in Sri Lanka.

With rice production for 2017 expected to be the lowest in a decade, “over 300,000 households (around 1.2 million people) are estimated to be food insecure, with many households limiting their food intake and in some cases eating just one meal a day,” the United Nations update said.

The worst affected areas are the North Western, North Central, Northern and South Eastern Provinces that rely heavily on agriculture. The U.N. Office in Colombo said that affected households were in some cases limiting their food intake, which was hampering people’s day-to-day lives.

Eating their seed

Gunathileka, who hails from the North Western Province, said his family was now eating some of the rice that he had put away to use as seed for the next growing season.

“For the next month or two we are okay with rice, but we have been limiting eating meat, eggs and vegetables we buy from outside. The other big problem I have is my children’s higher education. If we can’t get a harvest at least by the end of the year both of them will have to work,” he said.

His daughter is taking a course in secretarial work while the son is getting ready to sit university entrance exams. The family now survives on about Rs 800 ($5) or less a day, and both Gunathileka and his wife earn cash doing whatever work they can find.

The U.N report also said that household debt was rising due to the drought. A World Food Program survey released in August said that debts of surveyed families had risen by 50 percent in the last year.

“Households reported that the amount of money owed in formal loans has not increased, indicating that families are turning to informal lenders for credit,” the WFP survey said.

Gunathileka said that he was thinking of using the deeds to his paddy rice land as collateral and seeking a small loan from local money lenders.

“The banks will not lend because I can’t show any income. [But] if I don’t get to pay back the money lenders, I lose my land,” he said.

Rain and aid

Government officials said they anticipated the island had weathered the worst of the drought, and rains expected in late October would bring more relief.

Recent rains have dropped the overall number of people affected by drought from 2.2 million a month ago to 1.7 million now, said G.L. Senadeera, director general of the government Disaster Management Center.

He said the government planned to distribute relief food packs worth Rs 5000 ($34) to about 200,000 drought-hit families and provide compensation up to Rs 8500 ($56) per acre for harvest losses this year.

The government’s drought relief efforts, which began in August and were accelerated in September, officials say, are expected to cost about Rs 2.5 billion (about $16 million), according to the Treasury department.

The World Food Programme said in its August report that of 81,000 families surveyed in the 10 worst-hit districts, only 22 percent had access to government relief by early August.

For now, Gunathileka and his wife look up to the sky each time they step out looking for work.

“All we see are clear skies. All we want to see are dark clouds over the horizon,” he said.
…

Ford Motor Co.’s new CEO plans to cut $14 billion in costs, drop some car models and focus the company’s resources on trucks, SUVs and electric vehicles as part of a renewed effort to win over skeptical investors.

Jim Hackett, who became Ford’s CEO in May, met with around 100 investors Tuesday in New York to lay out his plans for the future. He said getting the company lean and flexible will help it handle the changes the auto industry is facing, from car-sharing to self-driving vehicles, to the shift to electric cars.

“I feel a real sense of urgency for what we’re doing here,” Hackett said.

Hackett and his executive team spent the summer reevaluating Ford’s operations after former CEO Mark Fields was ousted in May. Hackett traveled to Russia and Turkey and visited North American plants and Ford’s Silicon Valley research center as part of his review.

He said he was impressed by the talent at Ford, but wants to update factories and speed product development and decision-making. One of his first moves was to pare down the number of people reporting to him. Hackett has eight direct reports, compared to 18 for Fields.

Ford told investors it expects to reduce material costs by $10 billion by 2022 through new deals with suppliers and simpler designs. The company plans to share more parts between vehicles and reduce the options available for configuring a car. For example, customers can now order a Ford Fusion sedan in 35,000 possible combinations. Ford is reducing that to 96.

Ford also says it will cut $4 billion in engineering costs through 2022 by making fewer prototypes and reducing product-development time.

It plans to cut one-third of its engine development costs and redeploy them to electric and hybrid vehicles. Ford plans to introduce 13 new electrics and hybrids over the next five years, including a small electric SUV coming in 2020.

The company plans to reallocate $7 billion from cars to SUVs and trucks. Global demand for those vehicles is rising, and they are critical to Ford’s bottom line. Jim Farley, head of Ford’s global markets, said Ford plans more off-road SUVs like the upcoming Bronco for North America and more low-end small SUVs and seven-passenger SUVs for China.

The automaker plans to cut some cars from its lineup, but didn’t name them Tuesday. Farley said Ford will still offer small cars, like the Focus, but will stick to more expensive — and more profitable — versions.

Smarter vehicles

Ford emphasized that it’s open to new partnerships, such as its recent agreement with Indian automaker Mahindra Group to cooperate on mobility, electric cars and other projects. It is also working with ride-hailing company Lyft on self-driving technology and with China’s Zotye Automobile Co. about an electric car partnership.

The company says its vehicles will get smarter, with 90 percent of its global vehicles getting modem connectivity by 2020. That will allow things like software updates or apps that help drivers find parking. Ford can differentiate itself by offering, say, connected commercial vans that help small businesses keep track of their deliveries.

Marcy Klevorn, Ford’s head of mobility, said Ford launched a medical van service eight weeks ago that can pick up wheelchair-bound patients and take them to the doctor. The service uses Ford-developed software for scheduling appointments, and it will help the company figure out ways that consumers will eventually use self-driving vehicles.

“We have created a box of assets that we can pull out and use for various things,” Klevorn said.

Share price

Ford stuck to its previous guidance for 2017 on Tuesday. The company expects adjusted earnings of $1.65 to $1.85 for the full year. Ford earned $1.76 per share 2016.

Hackett, the former CEO of office furniture company Steelcase Inc., joined Ford’s board in 2013. He briefly led Ford’s mobility unit before being tapped as CEO.

Ford hired Hackett, in part, to turn around its share price, which has languished for the last two years even as rival General Motors Co. saw its shares rise to their highest level in seven years. Ford sunk below Tesla Inc. in market value earlier this year, even though it earned $4.6 billion in 2016 and Tesla has never made a full-year profit.

Ford’s shares rose 2 percent to close at $12.34 Tuesday before Hackett’s presentation. It’s not yet clear if his pitch will improve investors’ confidence.

“Straddling the now and the future will be tricky, especially in terms of profitability,” said Michelle Krebs, an executive analyst for the car-buying site Autotrader.com.

Investors have been critical of Ford for waiting too long to bring a long-range electric vehicle to market, as GM did with the Chevrolet Bolt. They also struggled to understand Ford’s plans to compete on autonomous cars.

“In the past few years, Ford simply hasn’t had a compelling narrative that investors could latch onto,” Barclay’s analyst Brian Johnson wrote in a recent note to investors.
…

North Korea’s U.N. ambassador accused the United States on Tuesday of imposing “an economic blockade” on his country and deploying nuclear assets on the Korean Peninsula aimed at toppling leader Kim Jong Un.

Ja Song Nam said the U.S. push for countries to implement what he called “illegal and unjustifiable” U.N. sanctions on North Korea is part of America’s “frantic attempt to completely block our peaceful economy for people’s everyday lives and humanitarian cooperation.”

“The U.S. is clinging to unprecedented nuclear threats and blackmail, economic sanctions and blockade to deny our rights to existence and development, but they only result in our sharper vigilance and greater courage,” he told the General Assembly committee that deals with economic and financial issues.

The U.N. Security Council has imposed its toughest sanctions ever on North Korea in response to its continuing nuclear weapons and ballistic missile tests, with the aim of pressuring Kim’s government into returning to negotiations on denuclearizing the Korean Peninsula.

The measures include a ban on countries importing North Korean coal, iron ore and textiles and new limits on its crucial oil and petroleum product imports. But the economic pressure has had no visible impact on Kim’s government, which appears to be accelerating toward what it says is its goal: putting the entire United States within range of its nuclear weapons.

A week ago, North Korean Foreign Minister Ri Yong Ho told reporters that U.S. President Donald Trump had “declared the war on our country” by tweeting that North Korea’s leadership “won’t be around much longer.” Hours later, the White House pushed back, saying: “We have not declared war on North Korea.”

No regime change

The Trump administration, referring to the tweet, stressed that the U.S. was not seeking to overthrow North Korea’s government. U.S. Cabinet officials, particularly Secretary of State Rex Tillerson, have insisted that the U.S.-led campaign of diplomatic and economic pressure on North Korea is focused on eliminating its nuclear weapons program, not its totalitarian government.

North Korea’s ambassador told the assembly committee that “our people will continue to uphold the line of simultaneous development of the state nuclear force and the economy.”

Ja said the country is committed to implementing U.N. goals to end poverty and preserve the environment by 2030 and said Trump’s announced intention to withdraw the U.S. from the 2015 Paris climate change agreement “illustrates the negative stand of the U.S. towards the sustainable development goals.”

To achieve these goals, Ja said, “we should immediately obliterate the high-handed measures of the U.S., including the sanctions imposed on the developing countries.”

And clearly aiming at the United States and other economic powers, he said the “monopolistic position” of countries that control the monetary and trade system should be destroyed at the same time.
…

The recovery of eastern Caribbean islands hardest hit by recent hurricanes, including Dominica, Barbuda, Turks and Caicos, the British Virgin Islands and Anguilla, could cost up to $1 billion, a senior U.N. official said Tuesday.

“It’s going to be a large-scale rebuilding effort that will take time,” said Stephen O’Malley, the U.N. resident coordinator for Barbados and the Organization of Eastern Caribbean States, “and it will be important to do that right.”

He told U.N. correspondents in a phone briefing from Dominica that “we don’t have exact figures yet,” but for the worst-affected islands the recovery bill will be “half a billion to a billion dollars.”

O’Malley said the United Nations, World Bank and Antigua government have conducted a post-disaster needs assessment for Barbuda, whose 1,800 residents were evacuated to Antigua before Hurricane Irma damaged 95 percent of its structures on Sept. 14. And he said a similar assessment will be done in Dominca, which was ravaged on Sept. 18 by Hurricane Maria, a Category 5 storm, probably in about three weeks.

“They want to build back better and they take that very, very seriously — to make sure that that can be done,” O’Malley said.

Making plans for future

Dominica’s Prime Minister Roosevelt Skerrit said he wants to have the world’s first “climate-resilient nation.”

He made an impassioned case for the world to do more to help vulnerable countries cope with the effects of global warming and urged the U.N. General Assembly 10 days ago to “let these extraordinary events elicit extraordinary efforts to rebuild nations sustainably.”

O’Malley said the effects of climate change are evident in the Caribbean, where the sea is heating up.

“The fact that the Caribbean Sea heats up, it intensifies the strengths of hurricanes; it doesn’t necessarily make them more frequent but it intensifies” the storm, he said.

O’Malley said the challenge for the islands in rebuilding is: “How do you protect yourself against that? How do you ensure that you have a resilient state and a resilient economy if you know that the risk factors are going to be elevating in this next period of time?”

Immediate disaster relief critical

As for immediate disaster relief following Hurricanes Irma and Maria, he said, regional efforts and military assistance from outside the region have been critical.

He singled out the Caribbean Disaster and Emergency Management Agency which sent a ship from Barbados to Dominica with initial aid workers the day after Hurricane Maria devastated the island.

When he landed at the airport in Dominica on Tuesday, he said there were policemen from St. Kitts, soldiers from Jamaica and Trinidad and Tobago securing the airport and other sites.

“That has helped the government set itself back up — that regional solidarity,” O’Malley said.

Some ‘green’ returning to Dominica

He said Dominica has also benefited from timely military support, especially helicopters and water desalination plants on naval vessels that produced water that could be taken inland and distributed.

He singled out military help to Dominica from Venezuela, United States, United Kingdom, Canada, France and the Netherlands.

Compared with the situation a week ago, O’Malley said he could already see some green returning to the almost totally brown island, streets were clear, roads were opening up, power and water supplies were being restored and the port was open. Now, he said, power and water need to be restored to everyone on Dominica and the economy needs to start operating quickly.

 
…

The European Union insisted Tuesday that Brexit negotiations with Britain will not move on to the question of future relations until enough progress has been made on divorce issues, such as how much the country’s exit bill should be.

Britain desperately wants talks to move on to future trade and security arrangements but EU Commission President Jean-Claude Juncker said that more needs to be done on the withdrawal issues first.

Juncker told the European Parliament that “we have not made the sufficient progress needed” and the legislators backed him, approving a resolution underscoring the same point with a vote of 557 to 92 with 29 abstentions. It further underscored the unity of the 27 EU nations as they face off with Britain in the talks.

The EU wants London to commit to guaranteeing the rights of EU citizens already in Britain, making sure border posts do not reappear between the U.K.’s Northern Ireland and Ireland itself and pay up for everything it had agreed to while it was a member.

Juncker said “the taxpayers in the EU 27 should not pay for the British decision” to leave, while the bloc’s chief negotiator, Michel Barnier, said “serious differences remain” on how many bills the U.K. still has to settle. Estimates vary widely from 20 billion euros ($27 billion) to over three times that amount.

“Serious rifts remain, especially on the financial settlement,” Barnier said. “We will not pay at 27 what has been decided at 28, it is simple as that.”

The parliamentary resolution called for postponing any move to widen the talks with Britain unless “a major breakthrough” takes place during the fifth round of negotiations in Brussels next week.

Observers said decisive progress was highly unlikely. Tuesday’s moves further dampened hopes that the EU leaders might give the green light to an expansion in the talks at a summit on Oct 19-20.

Many lawmakers were also dismissive of Britain’s Conservative government, which is widely seen as insecure and bumbling.

The head of the biggest party group in the European Parliament called for the sacking of British Foreign Secretary Boris Johnson for stoking confusion over the Brexit talks.

The European People’s Party chairman, Manfred Weber, appealed to Prime Minister Theresa May: “Please sack Johnson, because we need a clear answer who is responsible for the British position.”

Weber turned Henry Kissinger’s famous observation about the many leaders in the EU onto Britain: “Who shall I call in London? Who speaks for the government? Theresa May, Boris Johnson, or even (Brexit negotiator) David Davis?”

Others are speculating that Britain might actually be stalling to make sure that the member states that trade heavily with the U.K. would buckle and concede at the last moment, sowing discord among the 27.

EPP member Tom Vandenkendelaere said the strong backing of the resolution proved differently. “If the Brits they can play their old divide-and-rule game, they’d better think again,” he said.
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After several years of struggling to make a living doing odd jobs in and around his village, 26-year-old Pushkar Singh came to New Delhi from the northern Uttarakhand state three months ago to hunt for a job.

The high school dropout is willing to do anything — cook, work as a security guard, a peon in an office. But not only has he failed to secure a job, he has not even got an interview so far.

“It’s a huge worry, not having work,” said a despondent Singh as he wondered how long he can continue staying with his relatives.

The hopes of young people like Singh had been fueled by Prime Minister Narendra Modi’s promise of creating millions of jobs for the country’s huge young population when he took power in 2014. Optimism rose after India won the tag of the world’s fastest growing economy. 

But the Indian economy has hit a sharp slowdown, leaving tens of thousands of people struggling to find work in mega cities like New Delhi, which are magnets for migrant labor.

The economy clocked a growth rate of 5.7 percent in the April to June quarter, its most sluggish pace in three years.

The bleak number has set alarm bells ringing and raised fears that India could struggle to return to a high growth path.

“It is a cause for concern, the economy has slowed down much more than most had expected,” said D.K. Joshi, Chief Economist at rating agency Crisil in Mumbai.

Reasons for the slowdown

The slowdown has prompted critics to accuse Modi’s government of economic mismanagement.

Most attention has turned to two major measures that have disrupted the economy in the last year. Critics have slammed the government for imposing a currency change last November to flush out illegal cash, saying it slowed down businesses amid massive currency shortages and gave an unnecessary shock to a cash dependent economy.

In July, India implemented a long overdue and widely welcomed tax reform — a goods and services tax (GST) meant to clean up a complex tax regime and make it easier to do business.

But many worry that faulty implementation and multiple tax rates have created confusion for businesses struggling with the new system.

Economists point out that the currency change and GST, coming within months of each other, have made the slowdown sharper and deeper for virtually all sectors of the economy, which had already started losing pace last year.

The impact is evident in the markets of the Indian capital, which are usually the most crowded at this time of the year. It is India’s main festive season, when consumer spending hits a high. But shop owners are disappointed because customers are not opening their wallets easily.

A usually buzzing upmarket area in New Delhi wears a deserted look. Manu Talwar, the owner of a shop selling high-end mobile phones, has been struggling to make a sale in a country counted as the world’s fastest growing smart phone market, where a new device is coveted by an aspirational generation. 

“You can see the market, it does not look like Diwali, the market is so down. Mobiles, accessories, people were crazy about it. As of now, iPhone 8 has launched, but there is no market,” said Talwar.

The government says it is looking for ways to rev up the economy — according to reports, it is considering spending billions of dollars to give investment a push.

Prime Minister Modi, seen as a business-friendly, reformist leader, recently announced the formation of a five-member panel to advise him on economic issues.

At the heart of the challenge is the need for jobs in a country where about 10 million enter the workforce every year. Modi had hoped to give manufacturing a push to create jobs for low-skill labor, but a flagship “Make in India’ program he launched to woo foreign investors has yet to show significant results. And a slowing economy means that jobs are even being lost in several sectors.

“To think of an overall manufacturing push of the kind China gave, or many East Asian economies that we observed in those economies, that does not seem to be a reality in India. There is a lot of ground to cover to reach that level,” said economist Joshi.

Officials are striking an optimistic note, calling the slowdown transitory, but economists warn recovery will be gradual.

That means Pushkar Singh’s hunt for a job and shop owner Manu Talwar’s hopes of the market picking up may not happen anytime soon.
…

With more and more consumers shopping online, do brick-and-mortar stores stand a chance? At a pop-up shop in New York City, the future of retail is about embracing digital trends rather than resisting them. VOA reporter Tina Trinh explains.
…

Even though gasoline-powered SUVs are what people are buying now, General Motors is betting that electric vehicles will be all the rage in the not-to-distant future.

The Detroit automaker is promising two new EVs on Chevrolet Bolt underpinnings in the next 1 ½ years and more than 20 electric or hydrogen fuel cell vehicles by 2023. The company sees its entire model lineup running on electricity in the future, whether the source is a big battery or a tank full of hydrogen.

“We are far along in our plan to lead the way into that future world,” product development chief Mark Reuss said Monday at a news conference at the GM technical center north of Detroit.

The event was billed as a “sneak peak” into GM’s electric future. The company also pledged to start producing hydrogen fuel cell vehicles for commercial or military use in 2020. And it promised an increase in the number of electric fast-charging stations in the U.S., which now total 1,100 from companies and governments, taking a shot at electric competitor Tesla Inc. by saying the system would not be “walled off” from electric vehicles made by other manufacturers.

Tesla has 951 fast-charging stations globally that can only be used by Tesla owners.

The hastily called event was short on specifics, and it came just a day before the CEO of Ford Motor Co., GM’s prime competitor, was to announce its business plan that likely will include electric and autonomous vehicles as priorities.

The two new GM electrics in the immediate future likely will be SUVs or a sportier car designed to compete with Tesla’s upcoming Model 3 sedan, Reuss said. The Model 3, which is now in the early stages of production, will go hood-to-hood with the Bolt, starting around $35,000 (excluding a $7,500 federal tax credit) with a range of over 200 miles. The Bolt starts at $37,495 excluding the credit.

Behind Reuss and other executives were nine vehicles covered with tarps that the company said were among the 20 to be unveiled by 2023. GM pulled away the tarps on three of them, clay models of low-slung Buick and Cadillac SUVs and a futuristic version of the Bolt that looked like half of an airport control tower glued to the top of a car body. The rest remained covered.

The company wouldn’t allow photographs of the vehicles, and it wouldn’t say if any of the vehicles it showed were the ones coming in the next 18 months.

Reuss said the new vehicles that aren’t built on the Bolt platform will have GM’s next-generation electric architecture, which he said will be more efficient with longer range than the Bolt’s 238 miles. Through August, GM has sold 11,670 Bolts, which is less than 1 percent of GM’s total U.S. sales so far this year.

Reuss promised that the new vehicles will be profitable as people become more accustomed to the advancing technology. “We can’t just flip a switch and make the world go all-electric,” he said.
…

U.S. factory activity surged to a more than 13-year high in September amid strong gains in new orders and raw material prices, pointing to underlying strength in the economy even as Hurricanes Harvey and Irma are expected to dent growth in the third quarter.

The economic outlook was also bolstered by other data on Monday showing a rebound in construction spending in August. The acceleration in manufacturing activity and the accompanying increase in prices could harden expectations that the Federal Reserve will raise interest rates in December.

The Institute for Supply Management (ISM) said its index of national factory activity surged to a reading of 60.8 last month, the highest reading since May 2004, from 58.8 in August.

A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12 percent of the U.S. economy. The ISM said Harvey and Irma had caused supply chain and pricing issues in the chemical products sector. There were also concerns about the disruptive impact of the storms in the food, beverage and tobacco products industries.

The hurricanes are expected to chop off as much as six-tenths of a percentage point from gross domestic product growth in the third quarter. Harvey, which pummeled Texas at the end of August, has undercut consumer spending and weighed on industrial production, homebuilding and home sales.

Further weakness is likely after Irma struck Florida in early September, causing widespread power cuts. Manufacturing outside the areas affected by the hurricanes remained strong in September. The ISM survey’s production sub-index rose 1.2 points to a reading of 62.2 in September.

A gauge of new orders jumped to 64.6 in September from 60.3 in August. Factories reported paying more for raw materials, with the survey’s prices paid index surging 9.5 point to 71.5, the highest reading since May 2011.

The dollar rose against the euro after the data. Prices for U.S. Treasuries were trading higher as were stocks on Wall Street.

Construction spending rises

In separate report Monday, the Commerce Department said construction spending rose 0.5 percent to $1.21 trillion. July’s construction outlays were revised sharply down to show a 1.2 percent plunge instead of the previously reported 0.6 percent drop. Construction spending increased 2.5 percent on a year-on-year basis.

The government said Harvey and Irma did not appear to have impacted the construction spending data as the responses from the Texas and Florida areas affected by the storms were “not significantly lower than normal.”

In August, spending on private residential projects increased 0.4 percent, rising for a fourth straight month.

Spending on nonresidential structures increased 0.5 percent, snapping two straight monthly declines.

In the wake of Harvey and Irma, nonresidential construction spending could fall in September. According to the Commerce Department, Texas and Florida accounted for 22 percent of U.S. private nonresidential construction spending in 2016.

Investment in nonresidential structures such as oil and gas wells has been slowing as the boost from recovering oil prices fizzles. Private construction projects spending increased 0.4 percent in August.

Outlays on public construction projects rebounded 0.7 percent in August after slumping 3.3 percent in July. Spending on state and local government construction projects increased 1.1 percent in August. Gains in September are likely to be curbed by the hurricanes.

Texas and Florida accounted for 15 percent of U.S. state-and-locally owned construction spending in 2016, according to the Commerce Department.

Federal government construction spending tumbled 4.7 percent to its lowest level since April 2007.
…

The U.S. Supreme Court on Monday refused to consider a bid by Samsung Electronics Co Ltd. to force customers who have filed proposed class-action lawsuits against the company to arbitrate their claims instead of bringing them to court.

The justices left intact a lower court’s ruling that purchasers of certain Galaxy smartphones made by the South Korean electronics company were not bound by a warranty provision that compelled arbitration of customer complaints.

Warranties with arbitration clauses have become common in consumer electronics and other industries. Courts and regulatory agencies increasingly are scrutinizing arbitration agreements that seek to limit options for resolution of future disputes.

The Samsung case involves two smartphone buyers from California who separately filed proposed class-action lawsuits in 2014 over concerns about the products’ performance and resale value.

Neither Daniel Norcia, who owned an Galaxy S4 device, nor Hoai Dang, who owned an SIII, saw the arbitration provisions when they bought the phone because the language was placed deep inside the warranty booklet and not mentioned on the box, according to their legal papers.

The agreement states that all disputes must be resolved through arbitration, and specifically rules out class actions.

Samsung tried to force the customers to arbitrate their claims, but a unanimous three-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco denied the request in January. The court said Samsung did not provide proper notice of the arbitration provision and neither customer had expressly consented to be bound by it.

Appealing to the Supreme Court, Samsung noted that the 9th Circuit decided that the warranty was valid except for the arbitration provision. Samsung argued that the 9th Circuit ruling violated a U.S. law called the Federal Arbitration Act that requires arbitration agreements to be treated equally with other contracts.
…

Casinos in the world’s biggest casino hub of Macau extended a 14-month winning streak in September with revenue up 16.1 percent, priming for a bumper national holiday week, which is expected to see strong visitor traffic in the southern Chinese territory.

Macau, a former Portuguese colony and now special administrative region, is the only place in the country where casino gambling is legal.

Government data Sunday showed monthly gambling revenue was 21.4 billion patacas ($2.66 billion) in September, within analyst expectations of growth between 11-17 percent.

Two typhoons

September saw the tail end impact from two typhoons in August, which caused massive destruction and unprecedented flooding.

Many casinos shut down for several days and had problems accessing fresh water and power, but big resorts on Macau’s Las Vegas style Cotai strip were left relatively unscathed.

Macau’s government this week will release a 15-year plan to boost tourism with key objectives including rebranding Macau into a multiday destination and managing local tourism capacity.

Typically during national holidays, Macau’s tiny peninsula and adjoining islands are inundated with swarms of visitors putting pressure on creaking infrastructure and transport. 

Casino executives have said that hotels are fully booked for the official holiday period, Oct. 1-8.
…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Pirates to Payers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“Men used to leave work to pick up the kids. The whole country was paralyzed,” she said. “It’s a restructuring of how we think, how we operate, how we move.”
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Equifax Inc promised to make it easier for consumers to control access to their credit records in the wake of the company’s massive breach after the top U.S. consumer financial watchdog called on the industry to introduce such a system.

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

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

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

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

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

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

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

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

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

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

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

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

Experian did not respond to requests for comment.
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Saudi Arabia’s decision to lift its ban on women driving cars may help to restore sales growth in an auto market dented by the economic fallout from weak oil prices, handing an opportunity to importers of luxury cars and sport utility vehicles.

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

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

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

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

Market had shrunk

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

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

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

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

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

Entire market likely to benefit

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

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

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

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