Month: April 2019

Cryptocurrency exchanges are growing in the Philippines, despite a downturn last year in the value of the virtual currencies, due to growing popular demand and lenience among regulators. Authorities in the developing Southeast Asian country have permitted at least 29 exchanges of cryptocurrency following three that the central bank said it approved this week, according to domestic media reports.  That count, which is high for Asia, follows a total of 10 exchanges permitted by the central bank. The Cagayan Economic Zone Authority in the archipelago’s far north has issued 19 additional permits, the zone’s website said in October.  These exchanges feed into the development of a fast-growing financial technology, or fintech, sector in the Philippines, said Jonathan Ravelas, chief market strategist with Banco de Oro UniBank in Metro Manila. “Fintech appears to be very advanced in the Philippines,” he said. Consumers, he said, “eventually look at the mobility of having it in mobile wallets, [which] gives them flexibility to use money.” Uses for cryptocurrency Cryptocurrency, most notably its standard bearer Bitcoin, became an investment vehicle in much of the world about a decade ago. But a 70% drop in Bitcoin prices last year weakened enthusiasm for crypto overall.  ​Filipinos generally pick more traditional investments such as equities, Ravelas said, but young companies are eyeing cryptocurrency to raise capital, a process called initial coin offerings. Seven in 10 Filipinos have no bank account, he added, so virtual currency gives those consumers a new option for making payments. That population would be …

In a twist, China has announced that it has persuaded Malaysia to resume a canceled rail project worth $10.7 billion. The sudden about-face by Kuala Lumpur, which had earlier rejected the Chinese-funded project, will be a big boost for China ahead of a Belt and Road Forum in Beijing later this month, say analysts. China is hosting its second annual Belt and Road Forum from April 25 to 27 in Beijing. The event is likely to include the heads of state and governments of 40 different countries and officials from 60 others as Beijing tries to win more support for the trillion-dollar infrastructure and investment plan known as the Belt and Road Initiative, or BRI. In recent months, the initiative has faced tough challenges as Sierra Leone, Bangladesh, Myanmar and Malaysia canceled or reduced the size of previously negotiated deals. Although Malaysia is back on board, it has forced China to accept a 30 percent reduction in the price of the project. The reworked deal with Malaysia highlights how China is trying to face up to widespread criticism about the financing costs of its projects and concerns expressed by experts and government leaders around the world that the projects are nothing but diplomacy debt traps. “I think China is trying to make changes. But it is trying to do too much too quickly and with too much skepticism facing it. No wonder it’s having a torrid time,” said Kerry Brown, director of the Lau China Institute at King’s College London. …

The latest power outage started another tough week for factory owner Antonello Lorusso in the city of Valencia, once Venezuela’s industrial powerhouse. For the past month, unprecedented nationwide blackouts paralyzed the factory and the rest of the country, cutting off power, water and cell service to millions of Venezuelans. Lorusso’s packaging plant, Distribuidora Marina, had already struggled through years of hyperinflation, vanishing client orders, and a flight of employees. Now the situation was worse. For the whole month of March, Lorusso said, his company produced only its single daily capacity: 100 tonnes of packaged sugar and grains. When Reuters visited on April 8, he was using a generator to keep one of his dozen packaging machines working to fulfill the single order he had received. Power had been on for a few hours, but was too weak to run the machines. “There is no information, we don’t know if the blackouts will continue or not,” said Lorusso, who has owned the factory for over 30 years. He said the plant had just a day’s worth of power over the previous week. Power has been intermittent since early March, when the first major blackout plunged Venezuela into a week of darkness. Electricity experts and the opposition have called the government incompetent at maintaining the national grid. President Nicolas Maduro has accused the opposition and the U.S. government of sabotage. Venezuela’s industry has collapsed during six years of recession that have halved the size of the economy. What is left is largely …

Although the skies are gray and the fields are bare, even before the first seed is planted in the fertile soil later this spring, farmer Evan Hultine knows corn is king this year. In fact, corn is the only crop you’ll see in his fields. “No beans this year for us,” Hultine told VOA while working on his planter. “After about three months of the trade war, it was pretty clear that the president had long-terms goals in mind and at the time, my dad and I had talked, and we were way more comfortable with our ability to produce high-yield corn,” he said. Corn and soybeans typically bring in the largest amount of profit for U.S. farmers each year. While many rotate planting the crops season to season as a way to improve the soil, the ongoing U.S. trade dispute with China is affecting routine decisions for farmers as they prepare to head to the fields for spring planting. “It’s definitely influencing the way we do things on the farm,” Hultine said. ​Tumultuous year His decision to avoid soybeans altogether comes after a tumultuous year for the crop’s prices, affected mostly by the trade dispute and resulting tariffs China imposed on the commodity in retaliation to U.S. tariffs on imported Chinese steel and aluminum. “We lost anywhere from about $1.50 to $2 a bushel, depending on the day,” he explained. Fortunately, Hultine was able to sell about 60% of his soybean crop before prices plunged, but the rest had …

Corn and soybeans are the most profitable crops for American farmers each year. While many rotate these two crops season to season, the ongoing trade dispute with China is affecting even routine decisions for farmers as they head to the fields this spring to plant. VOA’s Kane Farabaugh has more from the Midwest state of Illinois. …

Amazon.com Inc Chief Executive Jeff Bezos on Thursday challenged retailers to hike their minimum wages to $16 an hour, prompting a comeback from Walmart Inc which asked its rivals to pay taxes. “Today I challenge our top retail competitors (you know who you are!) to match our employee benefits and our $15 minimum wage,” the billionaire entrepreneur said in a letter to shareholders. “Do it! Better yet, go to $16 and throw the gauntlet back at us.” The online retailer raised its minimum wage to $15 per hour for U.S. employees from November, giving in to critics of poor pay and working conditions at the company. Some critics have said the hike was insufficient and note that Amazon paid zero U.S. federal income tax on more than $11 billion in profits before taxes in 2018, and received a $129 million tax rebate from the federal government. Walmart’s executive vice president of corporate affairs, Dan Bartlett, responded to Bezos by tweeting, “Hey retail competitors out there (you know who you are) how about paying your taxes?” Walmart, which has raised its minimum wage twice since 2015, pays an entry wage of $11 per hour. CEO Doug McMillon has said Walmart’s average U.S. hourly wage is $17.50 including bonuses based on store performance, and excluding health care benefits. The two retailers, which are fierce rivals, rarely go after one another other publicly. Amazon’s wage hike came as U.S. unemployment was at a near two-decade low, with retailers and shippers competing for hundreds …

Walt Disney Co on Thursday said its new family-friendly streaming service will cost $7 monthly or $70 annually with a slate of exclusive TV shows and movies from some of the world’s most popular entertainment franchises in a bid to challenge the digital dominance of Netflix. The ad-free monthly subscription called Disney+ is set to launch on Nov. 12 and in every major global market over time, the company said. In addition to Disney films and TV shows, it will feature programming from the Marvel superhero universe, the “Star Wars” galaxy, “Toy Story” creator Pixar animation and the National Geographic channel. The company said it has struck deals with Roku Inc and Sony Corp to distribute Disney+ on streaming devices and console gaming systems and expects it to be widely available on smart televisions, tablets, and other outlets by launch. Disney kicked off its presentation to Wall Street analysts at its Burbank, California, headquarters on Thursday with a video that demonstrated the breadth of its portfolio, showing clips from dozens of classic TV shows and movies from “Frozen” and “The Lion King” to “Avatar” and “The Sound of Music.” Executives said they see opportunities to take its ESPN+ sport streaming video service to Latin America and are looking into international expansion of its Hulu streaming video business, which offers movies and shows targeted to adults. The entertainment giant is trying to transform itself from a cable television powerhouse into a leader of streaming media. Chief Executive Bob Iger in February …

Uber Technologies Inc. has 91 million users, but growth is slowing and it may never make a profit, the ride-hailing company said Thursday in its initial public offering filing.  The document gave the first comprehensive financial picture of the company, which was started in 2009 after its founders struggled to get a cab on a snowy night.  The filing underscores the rapid growth of Uber’s business in the last three years but also how a string of public scandals and increased competition from rivals have weighed on its plans to attract and retain riders.  $3B loss from operations The disclosure also highlighted how far Uber remains from turning a profit, with the company cautioning it expects operating expenses to “increase significantly in the foreseeable future” and it “may not achieve profitability.” Uber lost $3.03 billion in 2018 from operations, excluding one-off gains.  The S-1 filing with the U.S. Securities and Exchange Commission revealed Uber had 91 million average monthly active users on its platforms, which include ride-hailing and Uber Eats, at the end of 2018. This was up 33.8 percent from 2017, but growth slowed from 51 percent a year earlier.  Uber in 2018 had revenue of $11.3 billion, up around 42 percent over 2017, again below the 106 percent growth in the prior year.  Uber set a placeholder amount of $1 billion but did not specify the size of the IPO. Reuters reported this week that Uber plans to sell around $10 billion worth of stock at a valuation of between $90 billion and $100 billion. Investment bankers had previously told Uber it could be worth as much as $120 …

Hunter-gatherers in the Amazon sought in court on Thursday to stop Ecuador’s government from auctioning their land to oil companies, as tension mounts over the future of the rainforest.  In a lawsuit seen by the Thomson Reuters Foundation — which could set a precedent for other tribes opposed to drilling — the Waorani said the government did not properly consult them in 2012 over plans to auction their land to oil companies.  “We live on these lands and we want to continue to live there in harmony. We will defend them. Our fight is that our rights are respected,” said Nemonte Nenquimo, a leader of the 2,000-strong Waorani.  “Our fight is not just a fight about oil. This is a fight about different ways of living — one that protects life and one that destroys life,” said Nenquimo, from Pastaza province in the eastern Amazon.  Ecuador’s energy and environment ministries, the respondents in the case, and the nation’s hydrocarbons secretary were not immediately available to comment.  When President Lenin Moreno met Waorani leaders last year to hear their concerns, he said it was important to have a dialog and reach a consenus.  Tensions have simmered between indigenous communities and oil companies in Ecuador since Texaco — now Chevron — began operations in the Amazon in the 1960s.     ​Key step Ecuador is pushing to open up more rainforest and develop its oil and gas reserves in the hope of improving its sluggish economy and cutting its high fiscal deficit and foreign debt.  The constitution gives the government the right to develop energy projects and extract minerals on any land, regardless of who owns it, but requires that communities are consulted first and are …

One group in the United States who is not enjoying the low national unemployment rate is 18- to 24-year-old young adults who lack higher education, according to a new report. For them, the unemployment rate is 17 percent, according to recent research by the Brookings Institution. By comparison, the unemployment rate for the general population was 3.8 percent in March. “In theory, the path to employment providing financial security in adulthood is simple: finish high school, enroll in and complete college or training that is affordable and a good fit, gain some work experience along the way, and launch a career,” wrote Brookings’ Martha Ross and Natalie Holmes in their report. “Meet the millions of young adults who are out of work.” The report characterized the younger unemployed as bilingual Karina, 19, who graduated high school recently and is considering continuing her studies; single-mom Monica, 23; Juan, 20, who attends community college and has worked seasonal jobs; 19-year-old Stephanie who left state university after a year because of financial concerns; Matt, 24, who has an associate’s degree but who lost his job at a car dealership when the business closed; and Amy, 22, who has a bachelor’s and volunteers as a tutor. Ross and Holmes described the young unemployed in relation to education: 18 to 21 year olds with a high school diploma or less (37% of total out of work youth) 22 to 24 year olds with a high school diploma or less (25%) 18 to 21 year olds …

U.S. consumer prices increased by the most in 14 months in March, but the underlying inflation trend remained benign amid slowing domestic and global economic growth. The mixed report from the Labor Department on Wednesday was broadly supportive of the Federal Reserve’s decision last month to suspended its three-year campaign to raise interest rates. The U.S. central bank dropped projections for any rate hikes this year after lifting borrowing costs four times in 2018. Minutes of the Fed’s March 19-20 meeting, published on Wednesday, showed most policymakers viewed price pressures as “muted,” but expected inflation to rise to or near the central bank’s 2 percent target. The Fed’s preferred inflation measure, the personal consumption expenditures price index excluding food and energy is currently at 1.8 percent. “For the most part, inflation remains tame,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “The Fed effectively went on vacation and is likely to stay there for quite a few more months.” The Labor Department said its Consumer Price Index rose 0.4 percent, boosted by increases in the costs of food, gasoline and rents. That was the biggest advance since January 2018 and followed a 0.2 percent gain in February. In the 12 months through March, the CPI increased 1.9 percent. The CPI gained 1.5 percent in February, which was the smallest rise since September 2016. Economists polled by Reuters had forecast the CPI climbing 0.3 percent in March and accelerating 1.8 percent year-on-year. Stripping out the volatile food …