Month: March 2018

The European Union’s foreign policy chief says the EU will extend a 1 billion-euro ($1.2 billion) loan to struggling Ukraine.   Federica Mogherini, who was visiting the capital Kyiv on Monday, told reporters the loan should “support Ukraine’s economic stability and structural reforms.”   Ukraine is trying to improve its economy after years of inefficiency and corruption under the previous president, Viktor Yanukovych, and has been hit hard by the separatist conflict in the east.   While confirming the EU’s support for the Ukrainian government, Mogherini also signaled Europe’s growing wariness over the slow pace of much-touted reforms. She called on Kiev to set up an anti-corruption court as promised.   She also urged the government to comply with 2015 peace accords that called for a truce between government forces and Russia-backed separatists.       …

Tunisian women have demonstrated to demand equal inheritance rights, amid national debate over the issue that has reverberated around the Muslim world. Under a heavy police presence, they marched to parliament Saturday in Tunis to demand a law guaranteeing equal inheritance for daughters and sons. The current system based on Islamic Shariah law generally grants daughters only half the inheritance given to sons. The marchers insisted that Tunisian society has evolved and can remain devoutly Muslim while modernizing its laws. The protest was linked to recent events around the world for International Women’s Day. Two women held a counter-protest, saying such a law threatens society. Tunisia’s president prompted widespread anger when he proposed changes to inheritance laws last year. A special commission studying new rules will present conclusions in June. …

A new Polish law banning almost all trade on Sundays has taken effect, with large supermarkets and most other retailers closed for the first time since liberal shopping laws were introduced in the 1990s after communism’s collapse. The change is stirring up a range of emotions in a country where many feel workers are exploited under the liberal regulations of the past years and want workers to have a day of rest. But many Poles experience consumer freedom as one of the most tangible benefits of the free market era and resent the new limit.   In Hungary, another ex-communist country, a ban on Sunday trade imposed in 2015 was so unpopular that authorities repealed it the next year. But elsewhere in Europe, including Germany and Austria, people have long been accustomed to the day of commercial rest and appreciate the push it gives them to escape the compulsion to shop for quality time with family and friends. The law was introduced by a leading trade union, Solidarity, which has argued that employees should have the chance to rest and spend time with their families. It found the support of the conservative and pro-Catholic ruling party, Law and Justice, whose lawmakers passed the legislation. The influential Catholic church, to which more than 90 percent of Poles belong, has also welcomed the change. Among the Poles who see it as a good step toward returning a frazzled and overworked society to a more a more traditional lifestyle is 76-year-old Barbara Olszewska, …

Labor strikes. Nationwide protests. Bank failures. In recent months, Iran has been beset by economic problems despite the promises surrounding the 2015 nuclear deal it struck with world powers. Its clerically overseen government is starting to take notice. Politicians now offer the idea of possible government referendums or early elections. Even Supreme Leader Ayatollah Ali Khamenei acknowledged the depths of the problems ahead of the 40th anniversary of Iran’s Islamic Revolution. “Progress has been made in various sectors in the real sense of the word; however, we admit that in the area of ‘justice’ we are lagging behind,” Khamenei said in February, according to an official transcript. “We should apologize to Allah the Exalted and to our dear people.” Whether change can come, however, is in question. ​An economy run by the state Iran today largely remains a state-run economy. It has tried to privatize some of its industries, but critics say they have been handed over to a wealthy elite that looted them and ran them into the ground. One major strike now grips the Iran National Steel Industrial Group in Ahvaz, in the country’s southwest, where hundreds of workers say they haven’t been paid in three months. Authorities say some demonstrators have been arrested during the strike. More than 3.2 million Iranians are jobless, government spokesman Mohammad-Bagher Nobakht has said. The unemployment rate is more than 11 percent. Banks remain hobbled by billions of dollars in bad loans, some from the era of nuclear sanctions and others tainted …

China said Sunday it does not intend to ignite a trade war with the U.S. because the move would be disastrous for the entire world. “There are no winners in a trade war,” Minister of Commerce Zhong Shan said on the sidelines of China’s annual parliamentary session. “China does not wish to fight a trade war, nor will China initiate a trade war, but we can handle any challenge and will resolutely defend the interests of our country and our people,” Zhong said. President Donald Trump signed proclamations Thursday imposing a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, with the new taxes set to go into effect this month. ​US, Japan, EU talk Trade representatives for Japan and the European Union met with the U.S. trade representative Saturday in an effort to avoid a trade war over Trump’s new tariffs on aluminum and steel. At the meeting in Brussels, U.S. Trade Representative Robert Lighthizer, EU Trade Commissioner Cecilia Malmstrom and Japanese counterpart Hiroshige Seko discussed the tariffs as part of a trilateral effort to combat unfair trade practices. The EU said in a statement that both Brussels and Tokyo had serious concerns about the U.S. tariffs. Both powers, two of the biggest trade partners with the United States, have asked for exemptions from the tariffs. After the meeting, Malmstrom tweeted, “No immediate clarity on the exact U.S. procedure for exemption … so discussions will continue next week.” “I firmly and clearly expressed my …

Trade representatives for Japan and the European Union met with the U.S. trade representative Saturday in an effort to avoid a trade war over President Donald Trump’s new tariffs on aluminum and steel. At the meeting in Brussels, U.S. Trade Representative Robert Lighthizer, EU Trade Commissioner Cecilia Malmstrom and Japanese counterpart Hiroshige Seko discussed the tariffs as part of a trilateral effort to combat unfair trade practices. The EU said in a statement that both Brussels and Tokyo had serious concerns about the U.S. tariffs. Both powers, two of the biggest trade partners with the United States, have asked for exemptions from the tariffs. After the meeting, Malmstrom tweeted, “No immediate clarity on the exact U.S. procedure for exemption … so discussions will continue next week.” Seko said at a news conference following the meeting, “I firmly and clearly expressed my view that this is regrettable. … I explained that this could have a bad effect on the entire multilateral trading system.”  Saturday afternoon, Trump accused the EU of treating “the U.S. very badly on trade.” He said if they dropped their “horrific barriers & tariffs on U.S. products … we will likewise drop ours.” If they don’t, he warned, the United States will tax European cars and other products. On Friday, the European Union said it was not clear whether the bloc would be exempt from Trump’s steel and aluminum tariffs. Malmstrom said Friday in Brussels, “We hope that we can get confirmation that the EU is excluded from this.” Trump …

Several Asian nations that are major trading partners with the U.S. reacted strongly Friday to a U.S. decision to impose tariffs on metal imports, raising concerns of global trade conflicts. China, a key target of U.S. trade concerns, said it was “resolutely opposed” to the U.S. tariff decision, with Japan warning of the impact on bilateral ties. South Korea said it may file a complaint to the international trade dispute body, the World Trade Organization (WTO). South Korea is the third-largest steel exporter to the U.S. after Canada and Brazil. Several Southeast Asian nations say they fear a wave of import dumping of steel and aluminum products. U.S. President Donald Trump, turning aside warnings from economists and members within the Republican Party, signed an order Thursday for new tariffs of 25 percent on steel and 10 percent on aluminum imports to the U.S., saying the measures were necessary to protect U.S. industry. Trump has exempted key exporters of steel and aluminum, Canada and Mexico, while negotiating changes to the North American Free Trade Agreement (NAFTA), and other countries such as Australia also may be spared. The U.S. is the world’s largest importer of steel, totaling 35 million tons of raw material in 2017, with South Korea, Japan, China and India accounting for 6.6 million tons. Global reaction Thai economist Wisarn Pupphavesa, a senior adviser to the Thai economic think tank, the Thailand Development Research Institute (TDRI), called the tariff aiming to protect U.S. industry a “very bad situation.” “The U.S. …

China is gearing up to retaliate in response to stiff U.S. tariffs on steel and aluminum as Chinese industry associations urge authorities to take “resolute measures.” Retaliation from Beijing could contribute to a possible trade war between the world’s two biggest economies, analysts said. China’s Ministry of Commerce has pledged to “firmly defend its legitimate rights and interests” and called for an end to the measures as quickly as possible. In a statement posted on the website of the China Iron and Steel Association, the group appealed to the government in Beijing “to take resolute measures against imports of some U.S. products, including stainless steel, galvanized sheet, seamless pipe, coal, agriculture products and electronic products.” While the possibility of retaliating over steel and hitting agricultural imports and other sectors has been mentioned previously, it was the first time that coal has been drawn into the brewing spat. China’s increased imports of coal over the past year have given the U.S. industry a needed boost. The group also said U.S. President Donald Trump’s decision to impose 25 percent tariffs on steel would impact the global industry and be met with opposition from more countries. The U.S. has already taken other actions impacting Chinese exports of aluminum, solar panels and washing machines in recent months. The Trump administration has asked China to reduce the trade deficit by $100 billion and threatened several actions to force Beijing to listen. In 2017, the trade gap between the two countries stood at $375 billion; but, …

Young people around the United States are creating virtual businesses that produce simulated products, which are marketed and sold for virtual money. Thirteen hundred students recently showcased their ventures, ranging from telecom firms to gourmet food providers, in Pasadena, California. At what looked like a corporate trade show, students from Miguel Contreras Business and Tourism School in Los Angeles solicited customers for their tour company. Teacher Darrell Iki helped the students launch Big City Tours, which exists only in the classroom and online. The company stages virtual tours to different parts of Los Angeles, highlighting the city’s ethnic heritage, fashion or high-end shopping. A related virtual company sells travel gear. Students from Century High School in Santa Ana, California, sell a hypothetical translation device geared toward travelers.  It all starts with a business plan, according to Iki, as students are named to executive positions and learn to “work together, having a common goal in a potentially successful business.” The students quickly realized that business is complicated, according to the head of the nonprofit group that works with schools around the country to impart skills through simulations. Thirteen thousand students go through the program each year. “They’re running meetings, they’re networking, they’re meeting with professionals, they’re working with mentors,” said Nick Chapman of Virtual Enterprises International. The students showcase their companies at competitions, like this one in California. Similar virtual business programs exist in schools in 40 countries. One student entrepreneur said he now understands the pressure of running a company, …

U.S. employers went on a hiring binge in February, adding 313,000 jobs, the most in any month since July 2016, and drawing hundreds of thousands of people into the job market. The Labor Department said wage gains, meanwhile, fell from January to 2.6 percent year-over-year. Strong hourly wage growth had spooked markets last month because it raised the specter of inflation. But January’s figure was revised one-tenth of a point lower to 2.8 percent. The influx of new workers kept the unemployment rate unchanged at 4.1 percent. The surge of job gains may reflect, in part, confidence among some businesses that the Trump administration’s tax cuts will accelerate growth. Consumers are also benefiting from higher after-tax income, which grew last month at the fastest pace in a year, aided by the tax cuts. In the meantime, economists are calculating how the Trump administration’s decision Friday to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum might affect the job market. The Trade Partnership, a consulting firm, estimates that the tariffs will eliminate roughly 145,000 jobs. Steel and aluminum producers would hire more people. But the gains would be more than offset, the firm calculates, by sharp losses among companies that use the metals, such as automakers, packaged food companies and those that make industrial machinery. During 2017, the stock market, as measured by the S&P 500 index, surged 19 percent, partly on anticipation of corporate and individual tax cuts. Yet barely a month after …

Has President Donald Trump’s romance with the Goldman Sachs crowd gone cold? Top economic adviser Gary Cohn is only the latest Goldman figure to head for the White House exits, suggesting the influence of the oh-so-establishment banking powerhouse has been overwhelmed by the more nationalistic voices in the West Wing. Cohn, Goldman’s former president, announced his resignation this week after an unsuccessful effort to block Trump from imposing sweeping new tariffs on steel and aluminum imports. Trump threw Cohn a laurel on the way out, saying, “He may be a globalist, but I still like him.” But there was plenty of skepticism about Trump’s relationship with the big-name bank from the start. “I think we all knew this was coming to an end someday,” said Barry Bennett, a former Trump campaign aide. It’s not that Trump’s views have changed, Bennett added, but that “people gave up trying to change him.” Cohn is the fourth high-profile Goldman alumni to leave the administration. He was preceded earlier this year by Dina Powell, former deputy national security adviser, who is returning to Goldman. In August, onetime chief strategist Steve Bannon said farewell. And in July, after just 11 days as communications director, Anthony Scaramucci was out the door. That leaves Treasury Secretary Steven Mnuchin as the last Goldman veteran holding a top administration job. Of course, handing big jobs to Goldman alumni is an Oval Office tradition. The influential bank has produced Treasury secretaries, White House chiefs of staff and top economic advisers …

Students around the United States are creating virtual businesses that produce simulated products, which are marketed and sold for virtual money. Mike O’Sullivan reports that hundreds of student entrepreneurs came to Pasadena, California, to promote the virtual companies they have created. …