Month: May 2018

Sparks fly and machines whir as workers busily prepare thousands of steel pipes that will become part of a vast undersea pipeline bringing gas from Russia to Germany’s northeastern Baltic coast. The Nord Stream 2 project will double the amount of natural gas Russia can funnel directly to the heart of Europe from newly tapped reserves in Siberia, intentionally skirting Eastern European nations like Poland and Ukraine. It also promises much-needed jobs in this poor German backwater, some three hours’ drive north of Berlin. The United States and some other German allies have bristled at the project, warning that it could give Moscow greater leverage over Western Europe. Energy-poor Germany already relies heavily on Russian gas and so far Chancellor Angela Merkel has deftly kept the new $11 billion pipeline off the table while imposing sanctions against Russia for its actions in Ukraine. But as plans become closer to reality, the pressure has increased on her, and last month after meetings with Ukrainian President Petro Poroshenko she acknowledged that Nord Stream 2 was more than just a business project, saying that “political factors have to be taken into account.” With Merkel heading to Sochi on Friday for talks with Russian President Vladimir Putin, a senior U.S. diplomat warned that proceeding with the project could result in sanctions for those involved. “We would be delighted if the project did not take place,” U.S. Deputy Assistant Secretary Sandra Oudkirk, an energy policy expert in the State Department, told reporters in Berlin on …

Iranian state TV is reporting that the country has signed an agreement with a British consortium to develop an oil field, just as another major company, France’s Total, says it will withdraw from Iran because of the renewed U.S. sanctions. The new agreement is the first between Iran and a company from a key Western ally of the United States since Washington last week announced it will pull out of the landmark 2015 nuclear deal between Iran and Western powers. The U.S. said it was reinstalling sanctions against Iran. Managing Director of Pergas International Consortium Colin Rowley, and Bijan Alipour, managing director of National Iranian South Oil Co., signed a preliminary deed on the partnership in the presence of British Ambassador Rob Macaire in Tehran on Wednesday night. The project, if the agreement turns into a contract, will require more than $1 billion to produce 200,000 barrels of crude oil per day during the next decade in the 55-year old Karanj oil field. The oil field is located in the country’s oil-rich province and currently produces 120,000 barrels of crude per day. The U.S. sanctions aim to limit companies from any country from dealing with Iran by prohibiting them from using American banks in their operations. Pergas seems to do little business in the U.S., potentially giving it more freedom to operate in Iran. Its move contrasts with the decision by French oil and gas producer Total to not continue a multi-billion dollar project in Iran unless it is granted …

The European Union has called on U.S. President Donald Trump’s administration to stop threatening it with tariffs on steel and aluminum, saying Thursday it is prepared to discuss trade — but not at gun-point.   In March, Trump slapped tariffs of 25 percent on steel imports and 10 percent on imported aluminum, but granted the 28 EU countries a temporary exemption until June 1. He also temporarily exempted big steel producers Canada and Mexico, provided they agree to renegotiate a North American trade deal to his satisfaction.   “It’s Europe’s economic sovereignty, and what we are demanding is that we are exempted without conditions or time limits,” French President Emmanuel Macron said in Bulgaria, where EU leaders have gathered for a summit with Balkans countries.   Convinced that the U.S. move breaks global trade rules, the EU has drawn up a list of “rebalancing” duties worth some 2.8 billion euros ($3.4 billion) to impose on U.S. products if it is not permanently exempt. It has vowed not to negotiate under threat.   “I don’t think we have to consider this or that, when it contravenes the laws of international trade,” Macron said.   But he added: “We can improve things, in a peaceful setting.”   German Chancellor Angela Merkel echoed his remarks.   “We have a common position: we want an unlimited exemption, but are then prepared to talk about how we can reciprocally reduce barriers for trade,” she told reporters in the Bulgarian capital Sofia.   Should the exemptions be …

Olivia Rubio does the hard, tedious work of extracting crab meat on Hooper’s Island on Maryland’s Eastern Shore. Hooper’s Island is part of chain of three sparsely populated islands in the Chesapeake Bay. After crossing a single bridge, the main road winds through picturesque watermen’s villages and unpopulated areas. Hooper’s is a center for seafood catching and processing. Rubio has been coming for 15 years from Mexico to work in one of the island’s crab houses on an H2-B visa — a guest worker program that has been a continual issue in the crab industry for business owners in the Maryland Eastern Shore. “We have the opportunity to come here to work and support our family, help our children move forward, and support our parents. It’s good. We have work. So, we’re grateful,” Rubio said. As a temporary guest worker, Rubio can live and work in the U.S. during the warmer months and then return to her home country in the winter. Though glad to receive the visa, Rubio wonders about next year; the Trump administration, citing higher demand this year, awarded the visas by lottery, instead of first-come, first-served. “I hope there are visas to be able to come back and do the work again,” she said. Rubio’s employer, GW Hall & Son Seafood, needed 40 visas but only got enough for 30 guest workers. “I don’t know what we would do or the whole area would do without them. I mean from the stores to… I don’t even …

President Mauricio Macri said Wednesday that Argentina’s currency crisis is over, speaking as the country’s currency rebounded somewhat and prices for its stocks and bonds rose.   Macri announced last week that Argentina was seeking a financing deal with the International Monetary Fund following a sharp drop in the peso. The decision brought back haunting memories for Argentines who blame the IMF for introducing policies that led to the country’s 2001 economic implosion.   Argentina was forced to impose interest rate hikes and to tighten the fiscal deficit target to try to halt the devaluation of its currency, which has lost about 25 percent of its value in recent weeks.   The peso hit a new all-time low of 25.30 to the U.S. dollar Monday. But it rose at 24.8 per dollar Wednesday and Argentine stocks and bonds rose.   Macri said his government thinks it has “overcome” the turbulence over the currency. He also said he will demand “an intelligent” deal with the IMF.   “It’s important to recognize the moment of nervousness and anguish lived by a sector of the population,” Macri told reporters at the presidential palace.   “There was fear and anguish. Today, we have a different climate, but we must take a balance of what happened.”   The economic turbulence highlighted the frailty of Argentina’s economy despite austerity measures imposed by Macri, a conservative who has vowed to boost growth and curb Argentina’s high inflation.   Macri’s government has requested a “high-access stand-by arrangement” from …

Amsterdam unveiled far-reaching plans Wednesday to rein in tourism, reflecting the dissatisfaction of many residents who feel the city’s historic center has been overrun. The leading Green-Left and other parties negotiating a new municipal government after March elections vowed to return “Balance to the City,” in a document of that name seen by Reuters. “The positive sides of tourism such as employment and city revenues are being more and more overshadowed by the negative consequences,” including trash and noise pollution, the document said. Changes the document outlines include curtailing “amusement transportation” such as multiperson “beer bikes”; cracking down on alcohol use in boats on the canals; further restricting Airbnb and other home rentals; and a large tax hike. The plans announced Wednesday also include creating an inventory of all commercial beds in the city to try to cap various sectors, such as those on cruise ships and in hotels. “I’m very happy that the city is now finally taking action, because residents have been asking for it for a very long time,” said Bert Nap of neighborhood organization d’Oude Binnenstad, in the historic center. “What I’m worried about is that this package of measures is so drastic that there will be a lot of lawsuits and political resistance, which will cost a lot of time.” He said the city was suffering from too many visitors in general, which had the effect of changing the character of the center into one big tourist attraction. He also said some unruly, drunken tourists were making the city center an unattractive place for local residents. Edgy lure With a population of around 800,000, the city expects 18 million tourists …

The United States is pushing for a deal in negotiations on a revised North American Free Trade Agreement (NAFTA), the White House said Wednesday, but Canadian and Mexican officials were not due in Washington for talks before a Thursday deadline. President Donald Trump is committed to getting a better agreement with Canada and Mexico, press secretary Sarah Sanders told Fox News. “We still want to see something happen and we’re going to continue in those conversations. They’re ongoing now and we’re pushing forward and hopeful that we can get something done soon,” Sanders said. On Tuesday, Mexico’s economy minister said he saw diminishing chances for a new NAFTA agreement before a Thursday deadline to present a deal that could be signed by the U.S. Congress. Neither the Mexican minister, Ildefonso Guajardo, nor Canadian Foreign Affairs Minister Chrystia Freeland had plans to travel to Washington on Wednesday, their representatives said. U.S. House Speaker Paul Ryan has said that the Republican-controlled Congress would need to be notified of a new deal by Thursday to give lawmakers a chance to approve it before a newly elected Congress takes over in January. Sanders did not address the timeline. “We’ve got to get a deal that works for everybody, but most importantly this president is going to make sure that we get a deal that works for America,” she said. “He’s not going to stop until he gets it.” Ryan said Congress cannot begin working on the negotiating law known as “fast track” without a …

Venezuelan authorities said they were reactivating a Kellogg Co plant under worker control Wednesday, a day after the U.S. multinational food producer pulled out of the crisis-hit country. Kellogg joined a host of other multinationals in exiting Venezuela and later confirmed President Nicolas Maduro’s leftist government had taken over its manufacturing plant. On Wednesday, Aragua state Governor Marco Torres slammed Kellogg and guaranteed food production would continue. “With no notification, this U.S.-based multinational decided to close its doors, leaving 570 workers hanging,” said Torres at the plant, in Maracay. “Yet, we’re here — in less than 24 hours.” Millions in Venezuela suffer food and medicine shortages amid hyperinflation. Maduro blames Venezuela’s crisis on an “economic war” that he says is being waged by Washington, greedy businessmen and coup-mongers. He is expected to win Sunday’s presidential election, described by the opposition as a sham. Clorox, Kimberly-Clark, General Mills, General Motors and Harvest Natural Resources are the most recent big names to pull out of Venezuela in the face of economic conditions. Opposition critics scoffed that the government would quickly plunder the Kellogg plant and ruin its business. …

Major global brands Nike, H&M, Burberry and Gap have signed on to an initiative that aims to improve the industry’s record on sustainability after a study found less than 1 percent of clothing is recycled. The Ellen MacArthur Foundation, set up by the record-breaking sailor, announced on Wednesday that the brands were joining its Make Fashion Circular scheme to reduce global waste from fashion by recycling raw materials and products. The head of the Make Fashion Circular initiative, Francois Souchet, said the aim was to create a “unstoppable momentum” toward an economy in which clothes are never seen as waste. “Over the past 15 years clothing production has doubled, while the amount of time we wear those clothes before throwing them away — usually to be landfilled or incinerated — has fallen dramatically,” Souchet told the Thomson Reuters Foundation. “We can change this ever faster model into one in which clothes are never seen as waste, through better design and new leasing and resale business models,” he said in an email. ‘Incredibly wasteful’ industry The four brands will join British designer Stella McCartney, who last year became the first to sign up to the initiative, which aims to eliminate waste and pollution and ensure products and materials are reused. At the time McCartney, a longtime advocate of sustainable fashion, said her industry was “incredibly wasteful and harmful to the environment,” urging other brands to join. In a report published in November, the foundation exposed the scale of waste and pollution in the fashion industry, revealing that less than 1 percent of clothing is recycled. Half a million metric tons of plastic …

Most U.S. insurance companies have not adapted their strategies to address the dangers of climate change, making them likely to raise rates or deny coverage in high-risk areas, said a study released Tuesday. With predictions of an above-average Atlantic hurricane season approaching, thousands of people could be unable to afford insurance protection or lose it altogether, said the Canadian research study published in the British Journal of Management. Scientific consensus holds that climate change increases the intensity and frequency of extreme weather, from hurricanes to flooding. Last year, three record hurricanes struck the Gulf of Mexico and the Caribbean, causing billions of dollars’ worth of damage. Yet insurance and reinsurance companies overwhelmingly continue to treat storms as “anomalous rather than correlated to climate change,” the study said. “Insurers that ignore climate change will not put away enough money to cover their claims. To recoup those losses, they’ll have to raise rates or pull coverage from high-risk areas,” said lead author Jason Thistlethwaite, an assistant professor of environment and business at the University of Waterloo. They will face whopping payouts associated with disasters, he said. So long, coverage “When this shift happens, thousands of people will lose coverage or it will be unaffordable,” he said. Insured losses hit an all-time high between 2004 and 2014, according to a 2015 analysis by reinsurer Swiss Re. Insurance companies use reinsurance to minimize their risk.  But in 2015, only 3 percent out of a sample of 178 U.S. property insurers and reinsurers were taking …

Mexico’s central bank said Tuesday that it was creating a cybersecurity unit, following a hack on a domestic payments system at the end of April that affected Mexican banks. The central bank said in a notice in the government’s daily gazette that the new unit would design and issue guidelines on information security for the country’s banks, which are supervised by the central bank. Central bank Governor Alejandro Diaz de Leon Carrillo said Monday that the country had seen an unprecedented attack on payment system connections and that he hoped that measures being taken would stop future incidents. The attack on Mexican banks is similar to one of the biggest-ever known cyber heists, when thieves stole $81 million from Bangladesh’s central bank in 2016, said Fermin Gonzalez, head of forensic services at PricewaterhouseCoopers in Mexico. “Perhaps, some financial institutions perceived the attacks in Bangladesh as something very distant,” he said, adding that some Mexican banks may not have invested in sufficient security measures. “But criminals look for vulnerability and once they see it they are going to exploit it.” The central bank has not identified which banks were hit by the cyberattack or detailed how much thieves were able to wire out to bogus accounts in other banks. A source close to the government’s investigation said more than 300 million had been siphoned out of banks, but it was not clear how much had subsequently been taken out in cash withdrawals. Bank Grupo Financiero Banorte said Tuesday it does not expect …

U.S. lawmakers on Tuesday rejected any plan by President Donald Trump to ease restrictions on China’s ZTE Corp, calling the telecommunications firm a security threat and vowing not to abandon legislation clamping down on the company. Trump on Monday had defended his decision to revisit penalties on ZTE for flouting U.S. sanctions on trade with Iran, in part by saying it was reflective of the larger trade deal the United States is negotiating with China. “I hope the administration does not move forward on this supposed deal I keep reading about,” Republican Senator Marco Rubio said. Bilateral talks between the world’s two biggest economies resume in Washington this week. The Wall Street Journal has reported Beijing would back away from threats to slap tariffs on U.S. farm goods in exchange for easing the ban on selling components to ZTE. “They are basically conducting an all-out assault to steal what we’ve already developed and use it as the baseline for their development so they can supplant us as the leader in the most important technologies of the 21st century,” Rubio said at a Foreign Relations Committee hearing on Asia policy. Trump had taken to Twitter on Sunday with a pledge to help the company, which has suspended its main operations, because the penalties had cost too many jobs in China. It was a departure for a president who often touts “America First” policies. The Commerce Department in April found ZTE had violated a 2017 settlement created after the company violated sanctions …

Mexico’s economy minister said that he saw diminishing chances for a new North American Free Trade Agreement ahead of a Thursday deadline to present a deal that could be signed by the current U.S. Congress. U.S. House Speaker Paul Ryan has said that the Republican-controlled Congress would need to be notified of a new NAFTA deal by Thursday to give lawmakers a chance of approving it before a newly elected Congress takes over in January. “It is not easy. We do not think we will have it by Thursday,” Mexican Economy Minister Ildefonso Guajardo told broadcaster Televisa on Tuesday. But Canadian Prime Minister Justin Trudeau struck a more upbeat tone, telling reporters in Calgary a few hours later, “There is very much an eminently achievable outcome … and we are very close.” “We are going to continue to remain optimistic,” said Trudeau. He met with U.S. President Donald Trump on Monday and discussed the possibility of bringing NAFTA talks to a “prompt conclusion.” Negotiators from the United States, Mexico and Canada have been in intense talks since last month to try to reach a deal before U.S. congressional elections in November. Mexico’s presidential vote on July 1 also complicates the process. “We will keep negotiating, and in the moment that we have a good negotiation, we can close the deal … independent of which Congress (the current or new) that will vote on it,” said Guajardo. Mexico’s peso sank to its weakest level in over a year on Tuesday, and …