Month: June 2017

General Electric says Jeff Immelt is stepping down as CEO and John Flannery, president and CEO of the conglomerate’s health care unit, will take over the post in August.   The 61-year-old Immelt will stay on as chairman until his retirement from the position at the end of the year, with the 55-year-old Flannery stepping into the role after that.   Immelt has been at the helm of the conglomerate for 16 years, overseeing a transformation that included selling many of the company’s units. Over that time, General Electric sold its insurance, credit card, plastics and security divisions.   It also invested more heavily in new technologies, including a recent $1.65 billion acquisition of LM Wind Power, a Denmark-based manufacturer of rotor blades for wind turbines.   Flannery is a longtime General Electric executive, starting his career at GE Capital in 1987. He became president and CEO of the company’s equity unit in 2002 and eventually joined the health care unit in 2014, focusing on advanced technologies.   In addition, Chief Financial Officer Jeff Bornstein was named vice chair and Kieran Murphy was named president and CEO of GE Healthcare to succeed Flannery.   GE said Monday that the moves were part of its succession plan.   Shares of General Electric Co. climbed more than 3 percent in premarket trading. They are down about 7.6 percent over the last 12 months.     …

They were no common protests. As angry farmers dumped milk and vegetables on the streets in India’s western Maharashtra state and six farmers were killed by police in Madhya Pradesh state when they blocked roads and burnt vehicles, the spotlight has turned on growing rural distress in the country. The protests flared unexpectedly when bumper harvests following a good monsoon were supposed to augur well for rural prosperity. But the opposite has happened: a price crash due to the crop glut not just wiped away any prospect of a profit but left farmers struggling to pay back loans which they often raise to buy seeds, fertilizers and other inputs to plant crops. Low crop prices The violence witnessed last week was a rare eruption of anger in the rural community in a country whose economy is the world’s fastest-growing, but where tens of millions of farmers are coping with stagnating incomes as they struggle to make a living off small land holdings. Experts say decades of neglect in crucial infrastructure in the farm sector has left behind India’s countryside. With no easy access to markets close to villages and few storage facilities, farmers say they are at the mercy of traders and middlemen who often do not give them a fair price for their produce. “The farmer does not have the right to set the price. It is the middlemen who set the price. They buy my produce for Rs 10 per kilo and sell it for Rs. 20 or …

The board of Uber was meeting Sunday to consider placing the CEO of the ride-hailing company on leave, according The New York Times and other news outlets.   The Times reported that three people with knowledge of the matter have confirmed that Uber’s board was meeting to consider recommendations from a law firm hired to review Uber’s corporate culture and that the board may decide to put CEO Travis Kalanick on temporary leave.   The newspaper said its sources requested anonymity because they were not authorized to speak for Uber.   Uber Technologies Inc. has been rocked by accusations that its management has fostered a workplace environment where harassment, discrimination and bullying are left unchecked.   Uber spokesman Matt Kallman said that he wasn’t sure the company would make a statement after the meeting.   Reuters and the tech blog Recode reported the board meeting earlier. The Wall Street Journal also was citing unnamed sources about the meeting.   Uber has hired the law firm of former Attorney General Eric Holder to review policies and recommend changes. A report by his firm, Covington & Burling, was expected to be made public soon.   Uber announced last week that it fired 20 employees for harassment problems.   Under CEO Kalanick, Uber has shaken up the taxi industry in hundreds of cities and turned the San Francisco-based company into the world’s most valuable startup. Uber’s valuation has climbed to nearly $70 billion.   Management style at issue But Kalanick has acknowledged his …

U.S. Commerce Secretary Wilbur Ross is likely to impose a new sugar trade deal with Mexico even if final revisions to it fail to win support from the U.S. industry, trade lawyers and experts say. After announcing a deal this week that would dramatically cut the amount of refined sugar that Mexico ships to the United States, officials from the two countries are working with their industries on final language that would govern its operation. At issue is a new right of first refusal granted to Mexico to supply all U.S. sugar needs not met by domestic suppliers or other foreign quota holders. A coalition of American sugar cane and beet farmers and a major refiner want a more explicit guarantee that the U.S. Department of Agriculture, not Mexican producers, will dictate what type of sugar fills that gap. They are worried that a flood of refined sugar will pour in, rather than the raw sugar needed to keep U.S. mills running. Sugar, lumber issues The final sticking point stands in the way of resolving a years-long dispute over Mexican access to the highly regulated U.S. sugar market, which is protected by a complex web of subsidies and rationed quotas for foreign producers. The sugar industry is known for its sway in Washington. But its point of view on Mexican imports is not shared by sugar users such as confectioners and soda makers. The Trump administration wants to clear away the sugar dispute and a lumber trade row with Canada …

French cosmetics and luxury goods group L’Oreal has started exclusive talks to sell The Body Shop business to Brazilian makeup company Natura Cosmeticos in a possible 1 billion euros ($1.1 billion) deal. Earlier this year, L’Oreal had announced it was reviewing its strategy for The Body Shop, which it bought for 652 million pounds in 2006, and the sale of the business had attracted a wide range of bidders. L’Oreal said on Friday it had received a firm offer from Natura Cosmeticos, and the proposed deal put an enterprise value (equity plus debt) of 1 billion euros on the four-decades-old beauty brand — an innovator in the mass marketing of cosmetics made without animal testing and with natural ingredients. Founded in 1976 by British entrepreneur Anita Roddick, The Body Shop was a pioneer in its field but had since fallen victim to increased competition from newcomers offering similar products based on natural ingredients with no animal testing. L’Oreal shares were up 0.7 percent in late session trading, as investors welcomed progress toward a deal and the price tag. “It’s a good move, given that The Body Shop had been one of the least profitable parts of the L’Oreal business,” said Roche Brune Asset Management fund manager Gregoire Laverne. Keren Finance fund manager Gregory Moore said the price tag had pleased L’Oreal investors, since earlier reports had stated it could be sold for around 800 million euros. “The stock has reacted well to the news, because there were some people who …

Thanks to an explosion of bike share apps and providers, China is rediscovering its love of bicycles. In cities across the country and in the capital of Beijing, a colorful bike-share revolution is taking over on the streets, helping ease traffic snarls and keeping the air cleaner. It is also creating some problems. China used to be called the “kingdom of bicycles,” and though cars have taken over in a major way, the growing popularity of bike-share apps seems to indicate two-wheelers are making a come back. ​Color revolution For drab and dusty Beijing, the bike-share color revolution of yellows, oranges and blues is a welcome sight. People of all ages are enjoying the convenience the bikes provide, which combines cell phone technology, and GPS tracking in some cases, to help users find a ride. Traveling by car across the sprawling, densely populated city is often a nightmare. Even distances of a few kilometers can take up to an hour when traffic is snarling. Cheng Li, a bike-share user, said he has been driving his car less and using the metro more since he started using the service about six months ago. “After I get off the metro, I usually have to walk another kilometer or two, so I’ll grab a bike share and go. It’s less stressful,” Cheng said. For many, the convenience of cycling is its biggest attraction. Beijing’s city government has long had a bike-share program in place, but many of its bike-share stations were inconveniently located. …

Ivanka Trump’s fashion brand sought to distance itself from a Chinese manufacturer that has come under scrutiny after activists investigating labor conditions there were detained, saying the company last made its products three months ago. In a statement released Wednesday, the brand’s president, Abigail Klem, said Ivanka Trump shoes, which are made by licensing partner Mark Fisher, have not been produced since March at the Huajian Group factory where alleged labor abuses occurred. She added “our licensee works with many footwear production factories and all factories are required to operate within strict social compliance regulations.” But it is unclear whether that was really the end of the relationship. Undercover workers   China Labor Watch, a New York nonprofit, began scrutinizing Ivanka Trump supply chains more than a year ago, according to Li Qiang, the group’s executive director. Three China Labor Watch investigators went into Huajian Group factories undercover posing as workers in March, April and May of this year and found Ivanka Trump merchandise inside, Li said.   He said the investigators also found evidence of planned production, namely an April production schedule indicating pending orders for nearly 1,000 pairs of Ivanka Trump shoes due by the end of last month.   Now all three men are in jail, accused of using illegal recording devices to disrupt Huajian’s business. The U.S. State Department and Amnesty International have spoken out against the arrests. So far, Ivanka Trump and her brand have not. Two days off a month?   China Labor Watch …

Days before the first supertanker carrying 140,000 tons of Chinese-bound crude oil arrived in Myanmar’s Kyauk Pyu port, local officials confiscated Nyein Aye’s fishing nets. The 36-year-old fisherman was among hundreds banned from fishing a stretch of water near the entry point for a pipeline that pumps oil 770 kilometers (480 miles) across Myanmar to southwest China and forms a crucial part of Beijing’s “Belt and Road” project to deepen its economic links with Asia and beyond. “How can we make a living if we’re not allowed to catch fish?” said Nyein Aye, who bought a bigger boat just four months ago but now says his income has dropped by two-thirds because of a decreased catch resulting from restrictions on when and where he can fish. Last month he joined more than 100 people in a protest demanding compensation from pipeline operator Petrochina. The pipeline is part of the nearly $10 billion Kyauk Pyu Special Economic Zone, a scheme at the heart of fast-warming Myanmar-China relations. Its success is crucial for the Southeast Asian nation’s leader, Aung San Suu Kyi. Embattled Suu Kyi needs a big economic win to stem criticism that her first year in office has seen little progress on reform. China’s support is also key to stabilizing their shared border, where a spike in fighting with ethnic armed groups threatens the peace process Suu Kyi says is her top priority. China’s state-run CITIC Group, the main developer of the Kyauk Pyu Special Economic Zone, says it will …

Big automakers are rushing to launch self-driving cars as early as 2021, but the industry’s major players are moving slowly when it comes to widespread deployment of a less expensive crash prevention technology that regulators say could prevent thousands of deaths and injuries every year. Nissan said on Thursday it would make automatic braking systems standard on an estimated 1 million 2018 model cars and light trucks sold in the United States,  compact sport utility vehicles, the Altima sedan, Murano and Pathfinder SUVs, Leaf electric car, Maxima sedan and Sentra small car. Nissan sold about 1.6 million vehicles in the United States last year. Rival Toyota has said it will make automatic emergency braking standard on nearly all its U.S. models by the end of this year. No rush Overall, however, most automakers are not rushing to make automatic brake systems part of the base cost of mainstream vehicles sold in the competitive U.S. market. The industry has come under pressure from regulators, lawmakers and safety advocates to adopt the technology, which can slow or stop a vehicle even if the driver fails to act. So far, only about 17 percent of models tested by the Insurance Institute for Highway Safety offered standard collision-avoiding braking. Many of the models with standard collision-avoiding brake systems are luxury vehicles made by European or Japanese manufacturers. The systems require more sensors and software than conventional brakes, and automakers said they need time to engineer the systems into vehicles as part of more comprehensive …

The Republican-led House approved sweeping legislation Thursday to undo much of former President Barack Obama’s landmark banking law created after the 2008 economic crisis that caused millions of Americans to lose their jobs and homes. The largely party-line vote was 233-186, as Republicans argued the rules designed to prevent another meltdown were making it harder for community banks to lend and hampered the economy. “Our community banks are in trouble,” said Speaker Paul Ryan, a Wisconsin Republican. “They are being crushed by the costly rules imposed on them by the Dodd-Frank Act. This law may have had good intentions, but its consequences have been dire for Main Street.” House passage was widely expected, but the Republican overhaul of the 2010 Dodd-Frank law is unlikely to clear the Senate in its current form. Senators have said they’ll spend the next few months trying to find common ground on legislation to boost the economy. President Donald Trump had said he wanted to do “a big number” on Dodd-Frank, and the House vote marked progress toward that goal. The GOP-led overhaul of Dodd-Frank was crafted by Representative Jeb Hensarling of Texas, chairman of the House Financial Services Committee. A trade-off The bill targets the heart of the law’s restrictions on banks by offering a trade-off: Banks could qualify for most of the regulatory relief in the bill as long as they meet a strict requirement for building capital to cover unexpected big losses. Democrats overwhelmingly opposed the Republican bill, saying the Dodd-Frank law …

Native American activists from the Standing Rock Sioux Tribe, in the U.S. state of North Dakota, have gone global with their fight to stop fossil fuel corporations from possibly fouling water sources by transporting oil on indigenous lands. Peaceful protests that began April 1, 2016, to try to stop construction of the Dakota Access pipeline largely died down in February when the main protest camp was cleared. Oil drilling began on June 1. While they may have lost this battle, the activists say the war is far from over. They say the fight for indigenous rights continues to be waged on many fronts nationally, and moves to expand it globally already have begun. Dallas-based Energy Transfer Partners, the Dakota Access pipeline developer, disputes the tribes’ claims and says the $3.8 billion, 1,885-kilometer pipeline is safe. Rachel Heaton, a member of the Muckleshoot Tribe and an indigenous leader among Dakota Access pipeline opponents in Seattle, is one of four “water protectors” touring various countries and cities in Europe to try to drum up support for their cause. She said Native Americans plan to hit corporations and banks where it hurts most — in their wallets. Credit Suisse targeted “We are going around and sharing our stories as well as talking to the banks here in Europe that are invested in the fossil fuel projects on our lands,” she said. “We are here to ask the banks to divest from the fossil fuel projects as they are contributing to the genocide of …

The European Union must compromise if it wants to reach a trade accord with South American trade bloc Mercosur, German Chancellor Angela Merkel told a news conference on Thursday after a meeting with Argentine President Mauricio Macri. Merkel said German agriculture had its own interests, but Germany supported Argentina’s push to reach a trade deal with the EU quickly. She said “great progress” had already been made. “Negotiating a free trade agreement is always a difficult matter. And Germany is not always an easy partner,” Merkel told reporters. “If there is a will to sign such an agreement … then we must also make compromises.” Merkel said such compromises would have to be carefully negotiated and would likely be painful for both sides. “There is certainly still work to do, but I am convinced that we should take on this task,” she said. Argentine Foreign Minister Susana Malcorra and EU ambassador to Brazil João Cravinho on Monday proposed a 2017 target for reaching a trade agreement. Malcorra said the retreat of the United States from trade talks had opened a window for the European Union to become a strong player in multilateral, region-to-region accords. Mercosur, which also includes Uruguay and Paraguay, began negotiations with the European Union in 1999, broke them off in 2004 and resumed talks again in 2010. Macri told reporters that Mercosur was committed to a deal regardless of political turmoil in Brazil, and said he thought protectionism in Europe was a bigger hurdle to be overcome. …