Day: September 20, 2017

Fed Keeps US Rates Steady, to Start Portfolio Drawdown in October

The U.S. Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite a recent bout of low inflation.

The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities acquired in the years after the 2008 financial crisis.

New economic projections released after the Fed’s two-day policy meeting showed 11 of 16 officials see the “appropriate” level for the federal funds rate, the central bank’s benchmark interest rate, to be in a range between 1.25 percent and 1.50 percent by the end of 2017, or 0.25 percentage points above the current level.

U.S. bond yields rose, pushing up the U.S. dollar after the Fed’s decision, but U.S. benchmark stock indexes were little changed.

U.S. benchmark 10-year Treasury note yields rose as far as 2.29 percent, the highest since August 8, a move which helped push bank stock prices higher also.

“The Fed took another step on its path of beautiful normalization, announcing that the gradual balance sheet reduction will start next month and limiting revisions to both projections and policy guidance,” said Mohamed El-Erian, Chief Economic Adviser at Allianz, in California.

In its policy statement, the Fed cited low unemployment, growth in business investment, and an economic expansion that has been moderate but durable this year as justifying it’s decision. It added that the near-term risks to the economic outlook remained “roughly balanced” but said it was “closely” watching inflation.

Inflation mystery

Fed Chair Janet Yellen said in a press conference after the end of the meeting that the fall in inflation this year remained a mystery, adding that the central bank was ready to change the interest rate outlook if needed.

“What we need to figure out is whether the factors that have lowered inflation are likely to prove persistent,” she said. If they do, “it would require an alteration of monetary policy,” Yellen said.

While the interest rate outlook for next year remained largely unchanged in the Fed’s latest projections, with three rises envisioned in 2018, the U.S. central bank did slow the pace of anticipated monetary tightening expected thereafter. It forecasts only two increases in 2019 and one in 2020. It also lowered again its estimated long-term “neutral” interest rate from 3.0 percent to 2.75 percent, reflecting concerns about overall economic vitality.

“The US Federal Reserve has firmly signaled that a December rate rise is still on the table,” said Luke Bartholomew, of Aberdeen Standard Investments Investment Strategist in London.

“Clearly the Fed still believes that lower unemployment will eventually translate into a pick-up in inflation, but if inflation continues to undershoot it is hard to see the Fed following through on a hike,” he said.

Fed bond portfolio to shrink from October

The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities by initially cutting up to $10 billion each month from the amount of maturing securities it reinvests.

That action will start a gradual reversal of the three rounds of quantitative easing, or bond buying, the Fed pursued between 2008 and 2014 to stimulate economic growth after the 2007-2009 financial crisis and recession.

The limit on reinvestment is scheduled to increase by $10 billion every three months to a maximum of $50 billion per month until the central bank’s overall balance sheet falls by perhaps $1 trillion or more in the coming years.

Yellen said it would take a “a material deterioration” in the economy’s performance for the Fed to reverse a schedule that she expects to proceed “gradually and predictably.”

Balancing act

The policy statement and accompanying projections showed the Fed still in the middle of a balancing act between an economic recovery that has kept U.S. unemployment low and is gaining steam globally and a recent worrying drop in U.S. inflation.

Three of the hawkish policymakers appeared to move their expected policy rate down to account for only one more hike by the end of 2017, leaving a core 11 clustered around a likely December increase. The Fed has raised rates twice this year.

The Fed noted that the recent hurricanes in the United States would affect economic activity but are “unlikely to materially alter the course of the national economy over the medium term.”

Forecasts for economic growth and unemployment into 2018 and beyond were largely unchanged. Gross domestic product is now expected to grow at a rate of 2.4 percent this year, 2.1 percent next year and 2.0 percent in 2019.

The unemployment rate is forecast to remain at 4.3 percent this year before falling to 4.1 percent next year and remaining there in 2019.

Inflation is expected to remain under the Fed’s 2 percent target through 2018 before hitting it in 2019. There were no dissents in the Fed’s policy decision.

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Brazil’s Temer Says Government Not Considering Privatizing Petrobras

Brazil’s President Michel Temer said on Wednesday state-run oil company Petroleo Brasileiro, a symbol of national sovereignty, would stay in public hands even as his government makes an aggressive privatization push.

Temer, speaking at a Reuters Newsmaker event in New York, also said that sprawling investigations that have led to corruption charges against scores of powerful figures — including him — show that Brazil’s governmental institutions are independent and working well.

Increase in confidence

The leader of Latin America’s largest nation said the fight against corruption was giving investors more confidence to do business in Brazil and this was being reflected in the nation’s benchmark stock index trading near all-time highs.

“It was an important and daring decision to open Eletrobras capital to private investors,” Temer said, referring to a decision announced last month to sell a controlling stake in Centrais Eletricas Brasileiras SA, Brazil and Latin America’s largest utility.

Inviting outside investment in Brazil is part of business-friendly Temer’s plan to help the country recover from its deepest recession and to provide much-needed funds to bridge its gaping budget deficit.

However, he ruled out a similar step with the state oil company, known as Petrobras, saying it held “a very strong symbolism” of national sovereignty for Brazilians. “Naturally, we are not thinking of privatizing it,” he said.

‘Not worried’

Temer has been charged with graft based on the plea-bargain testimony of the owners of the world’s largest meatpacker, JBS SA. They accused him of taking bribes in return for political favors and of conspiring to buy the silence of a witness who could implicate the leader.

Temer has repeatedly said he is innocent of any wrongdoing.

He said at the Reuters event he was not concerned about being charged with racketeering and obstruction of justice last week.

“These accusations must be investigated, but I am not worried about this in the least,” he said.

Court approves new charges

Shortly after Temer spoke, a majority of the judges on Brazil’s Supreme Court voted to send the new charges against him to the lower house of Congress, which must authorize any trial against a sitting president.

Last month, the chamber blocked an earlier corruption charge against him and Temer and his allies are confident the new ones will also be blocked by the chamber. But they acknowledge that the government’s reform agenda will be delayed while it spends time and energy defending the president.

During the wide-ranging, 45-minute discussion at the headquarters of Reuters, Temer also said that the Mercosur trade bloc of South American nations hopes to reach a trade deal with the European Union by the end of the year.

Openness praised

Investors attending the event praised Temer’s openness about the corruption cases against him and for his determination to pass a pension reform bill, even though the president gave no indication of when that could happen.

The bill is Temer’s main measure to plug the budget deficit that cost Brazil its hard-won investment credit rating grade two years ago. Analysts expect the bill to be watered down to its bare bones to be able to clear Congress this year.

“That’s enough to keep markets satisfied and to fend off a number of downgrades in credit ratings,” said Alejo Czerwonko, emerging markets strategist at UBS AG.

 

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Climate Investment Incubator Branches Out Into Cloud Forests, Cattle Ranches

Latin American cloud forests, energy-saving street lights in Rio de Janeiro and sustainable cattle ranching in the Amazon will get a boost from new financial instruments to channel capital for tackling climate change, their backers said.

The Lab, a network of programs that incubates sustainable finance mechanisms, expects to attract an initial $855 million to six investment vehicles launched in New York on Wednesday, and is hoping to pull more private capital into its projects.

Barbara Buchner, a climate finance expert who directs The Lab, told the Thomson Reuters Foundation mainstream investors have shown growing interest in climate change projects in the past couple of years.

“The next challenge is to get them beyond the markets they’re now comfortable with,” she added, citing potential in land use, agriculture and adapting to climate change impacts.

Various partners

The Lab, set up in 2014, raised $822 million for its earlier initiatives, with around half coming from private investors.

It works with governments, philanthropic foundations, development banks and private sector investors, including asset manager BlackRock Inc. and Deutsche Bank.

The latest projects were required to address climate issues in an innovative way, be commercially viable and not be hamstrung by regulatory hurdles, said Buchner.

The instruments to be rolled out by The Lab include the Cloud Forest Blue Energy Mechanism, which aims to restore 60 million hectares of Latin American cloud forest through a scheme that would improve water security and hydropower profits while helping suck carbon from the atmosphere.

And a private equity fund aims to be the first to invest in climate change adaptation technologies for developing countries.

In Brazil, which has suffered a funding shortfall for green action, the Climate Smart Cattle Ranching scheme is seeking to raise $200 million for projects designed to restore damaged grazing land and reduce deforestation in the Amazon, targeting more than 300,000 hectares in the first five years.

Also in Brazil, the Green Receivables Fund (Green FIDC) will provide lower-cost capital to renewable-energy and energy-efficient projects, including a street-lighting scheme in Rio de Janeiro.

Renewable power

Another Brazilian fund plans to cut agricultural energy costs by up to 20 percent by boosting off-grid renewable power.

“Finance is critical to implementing Brazil’s goals to increase renewable energy [and] energy efficiency, and move toward sustainable land use,” said Jose Antonio Marcondes de Carvalho, a top environment official with Brazil’s Ministry of Foreign Affairs.

The new Lab instruments will help Brazil achieve its climate change and sustainable development goals, he added.

Buchner said The Lab was moving beyond a focus on initiatives that directly cut planet-warming emissions.

“There are some really good projects in other areas that can help address some of the sectors where we really need to scale up,” if the world is to meet its target to keep global warming within 2 degrees Celsius above pre-industrial times, she said.

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Puerto Rican Astronaut Gets Double Dose of Hurricanes

Space station astronaut Joe Acaba is getting a double dose of hurricanes — even in orbit.

 Harvey flooded his home in Houston last month. Now Maria has slammed into Puerto Rico, his family’s homeland.

In an interview with The Associated Press on Wednesday, the first astronaut of Puerto Rican heritage offered words of comfort to family members and everyone else during the wrath of Hurricane Maria.

“My parents were born there, so a lot of relatives, cousins, godparents” are still in Puerto Rico, Acaba said. “I hope everyone’s doing well and that you take care of yourselves.”

Second visit for Acaba

Acaba, a former teacher who arrived at the International Space Station last week, said he had not yet seen the hurricane from space. The storm made landfall at Puerto Rico an hour before the TV interview.

“It’s kind of hard to believe, but you get so busy in the day working so hard that at times you forget to look out the window,” said Acaba, who is on his third spaceflight and his second visit to the space station.

Acaba was in Russia then, getting ready for his launch, when his home flooded in Houston. Friends and colleagues came to his rescue, yanking out walls and drying out his house.

“It was a huge relief to know that there were people at home, taking care of me,” he said.

Left for space station Sept. 12

 

Fellow NASA astronaut Mark Vande Hei’s home in Houston fared much better. It’s tough being in space when you want to help those back home, he said, but all the help to the astronauts’ families from Johnson Space Center colleagues has been “hugely appreciated.”

Acaba, Vande Hei and Russian cosmonaut Alexander Misurkin rocketed from Kazakhstan on Sept. 12. They joined American Randy Bresnik, Italian Paolo Nespoli and Russian Sergey Ryazanskiy already at the orbiting outpost.

Acaba took Puerto Rican flags up with him.

“No Puerto Rican can travel without their Puerto Rican flags, so I have my share of those. And pretty soon, the space station’s going to start looking like Puerto Rico with all the flags,” he said.

Acaba’s parents were from Hatillo, Puerto Rico, and, while young, moved to the U.S. Born and raised in Southern California, Acaba served in the Marine Corps Reserves, volunteered for the Peace Corps in the Dominican Republic and worked as a hydro-geologist before becoming a science and math teacher in Florida.

Joined NASA in 2004

NASA chose Acaba in its first official group of astronaut-educators in 2004 along with Richard Arnold, who will make another trip to the space station in March, a month after Acaba departs. The two will make short video clips and use social media to reach out to youngsters.

“For all of us, it’s a dream come true and we want them to believe the same,” he said. He added: “As much as we can do to help the great teachers out there, we’re going to try to do that.”

Meanwhile, Nespoli, in orbit since July, said he misses sharing pizza with friends. He recently dug out the space station’s espresso machine, an Italian experiment from two years ago. He brought up some coffee capsules to try.

After weeks of instant space coffee, “a really good espresso would make a difference.”

 

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Internet Firms Say Removing Extremist Content Within Hours Is Huge Challenge

Removing extremist content from the internet within a few hours of it appearing poses “an enormous technological and scientific challenge,” Google’s general counsel will say later Wednesday to European leaders who want it taken down quicker.

Kent Walker, general counsel for Alphabet’s Google, will speak on behalf of technology companies Facebook, Microsoft, Twitter and YouTube at an event on the sidelines of the annual gathering of world leaders at the United Nations.

The leaders of France, Britain and Italy want to push social media companies to remove “terrorist content” from the internet within one to two hours of it appearing because they say that is the period when most material is spread.

“We are making significant progress, but removing all of this content within a few hours — or, indeed, stopping it from appearing on the internet in the first place — poses an enormous technological and scientific challenge,” Walker will say in a speech on behalf of the Global Internet Forum to Counter Terrorism, a working group formed by the four companies to combine their efforts to remove extremist content.

Tech firms have come under increasing pressure from governments in the United States and Europe to do more to keep extremist content off their platforms after a spate of militant attacks, and the European Union is mulling legislation on the issue.

“There is no silver bullet when it comes to finding and removing this content, but we’re getting much better,” Walker will say.

“Of course, finding problematic material in the first place often requires not just thousands of human hours but, more fundamentally, continuing advances in engineering and computer science research. The haystacks are unimaginably large and the needles are both very small and constantly changing.”

Walker will say the companies need human reviewers to help distinguish legitimate material such as news coverage from the problematic material and train machine-learning tools against “ever-changing examples.”

The companies last year decided to set up a joint database to share unique digital fingerprints they automatically assign to videos or photos of extremist content, known as “hashes,” to help each other detect and remove similar content.

Facebook used a hash that contained a link to bomb-making instructions to find and remove almost 100 copies of that content.

Twitter said Tuesday that it had removed 299,649 accounts in the first half of this year for the “promotion of terrorism,” while Facebook has ramped up its use of artificial intelligence to map out pages and posts with terrorist material.

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US Advises Banks to Watch for Venezuelan Corruption

The U.S. Treasury is advising banks to be on the lookout for suspicious financial activity involving corrupt Venezuelan officials as the Trump administration tightens its financial noose around President Nicolas Maduro’s embattled socialist government.

Wednesday’s advisory by the Financial Crimes Enforcement Network asks banks to keep watch for Venezuelan government contracts, wire transfers from shell companies, and real estate purchases in south Florida and Houston by senior Venezuelan officials, their families or associates. It said the advisory arose out of concern expressed by financial institutions that transactions involving state-owned enterprises were being used to launder kickbacks and bribes.

U.S. officials fear that endemic corruption will take an additional toll on Venezuelans already struggling with triple-digit inflation and widespread shortages amid a tense political standoff aggravated by Maduro’s decision to rewrite the constitution in the face of months of deadly protests.

Last month, the Trump administration slapped sanctions on Venezuela for Maduro’s decision to go forward with his plans to consolidate power. The actions ban investors from buying the nation’s debt and prevents U.S.-based Citgo, a subsidiary of the state-owned oil company, from sending badly needed dollar dividends back to Venezuela.

“Not all transactions involving Venezuela involve corruption, but, particularly now, during a period of turmoil in that country, financial institutions need to continue their vigilance to help identify and stop the flow of corrupt proceeds and guard against money laundering and other illicit financial activity,” said acting FinCEN Director Jamal El-Hindi.

‘Blockade’

Maduro has accused the U.S. of trying to impose a financial “blockade” on Venezuela after the opposition-led protests failed to oust him from power. Even before the recent round of sanctions, many Wall Street banks like Citibank and Credit Suisse that used to collect large fees serving Venezuela’s financial needs stopped doing business with the government, fearing legal action or damage to their reputations.

Wednesday’s action lists several red flags to assist banks in identifying suspected schemes. They include any transactions involving government contracts payable directly to personal accounts, hard-to-identify trading companies or products charged at substantially higher prices than market rates.

It also warns about real estate purchases — primarily in south Florida and the Houston area — involving current or former Venezuelan government officials, family members or associates that are not commensurate with their official salaries.

The U.S. over the past year has sanctioned dozens of Venezuelan officials, including Maduro himself, for a variety of alleged offenses including drug trafficking and human rights abuses. Among the state-owned enterprises referenced in recent sanctions are the nation’s electricity and telephone companies as well as the foreign trade bank and foreign currency exchange commission that provides U.S. dollars to select businesses and individuals at a highly favorable exchange rate that most Venezuelans can’t access due to strict currency controls

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Lillian Ross, Longtime New Yorker Writer, Dead at 99

Lillian Ross, the ever-watchful New Yorker reporter whose close, narrative style defined a memorable and influential 70-year career, including a revealing portrait of Ernest Hemingway, a classic Hollywood expose and a confession to an adulterous affair, has died at age 99.

Ross died early Wednesday at Lenox Hill Hospital after suffering a stroke, New Yorker articles editor Susan Morrison said Wednesday.

In an email statement to The Associated Press, New Yorker editor David Remnick called Ross a groundbreaking writer.

“Lillian would knock my block off for saying so, she’d find it pretentious, but she really was a pioneer, both as a woman writing at The New Yorker and as a truly innovative artist, someone who helped change and shape non-fiction writing in English,” Remnick said in a statement.

Hundreds of Ross’ “Talk of the Town” dispatches appeared in The New Yorker, starting in the 1940s when she wrote about Harry Truman’s years as a haberdasher, and continuing well into the 21st century, whether covering a book party at the Friars Club, or sitting with the daughters of Richard Rodgers and Oscar Hammerstein II as they watched a Broadway revival of “South Pacific.”

After the death of J.D. Salinger in 2010, Ross wrote a piece about her friendship with the reclusive novelist and former New Yorker contributor.

 

Her methods were as crystallized and instinctive as her writing. She hated tape recorders (”fast, easy and lazy”), trusted first impressions and believed in the “mystical force” that “makes the work seem delightfully easy and natural and supremely enjoyable.”

 

“It’s sort of like having sex,” she once wrote.

 

Ross’ approach, later made famous by the “New Journalists” of the 1960s, used dialogue, scene structure and other techniques associated with fiction writers. She regarded herself as a short story writer who worked with facts, or even as a director, trying to “build scenes into little story-films.” In 1999, her 1964 collection of articles, “Reporting,” was selected by a panel of experts as one of the 100 best examples of American journalism in the 20th century. The group, assembled by New York University, ranked it No. 66.

 

“She is the mistress of selective listening and viewing, of capturing the one moment that entirely illumines the scene, of fastening on the one quote that Tells All,” novelist Irving Wallace wrote in a 1966 New York Times review of her work.

 

Short and curly-haired, unimposing and patient, Ross tried her best to let the stories speak for themselves, but at times the writer interrupted.

 

In the late 1940s, Hemingway came to New York for shopping and socializing and Ross joined him as he drank champagne with Marlene Dietrich, bought a winter coat and visited the Metropolitan Museum of Art, flask in hand. She presented the author as a volatile bulk of bluster and insecurity, speaking in telegraphic shorthand (”You want to go with me to buy coat?”) and even punching himself in the stomach to prove his muscle.

Ross was friendly with Hemingway — she liked most of her subjects — but her article was criticized, and welcomed, as humanizing a legend. “Lillian Ross wrote a profile of me which I read, in proof, with some horror,” Hemingway later recalled. “But since she was a friend of mine and I knew that she was not writing in malice she had a right to make me seem that way if she wished.”

 

Not long after, Ross went to Hollywood to report on director John Huston as he worked on an adaptation of Stephen Crane’s Civil War novel “The Red Badge of Courage.” She soon realized that the movie was more interesting than any one person: She was witness to a disaster. Ross’ reports in The New Yorker, released in 1952 as the book “Picture,” were an unprecedented chronicle of studio meddling as MGM took control of the film and hacked it to 70 minutes.

 

Praised by Hemingway among others, “Picture” was a direct influence on such future Hollywood authors as John Gregory Dunne (”Studio”) and anticipated the nonfiction novel that Truman Capote perfected a decade later with “In Cold Blood.” Huston’s daughter, actress Anjelica Huston, became a lifelong friend.

“My parents loved and respected her, and trusted her. She was, they would say, different from other reporters,” Huston wrote in the foreword to the book’s 50th anniversary edition.

Deeply private even around her New Yorker colleagues, Ross did step out in 1998 when she published “Here But Not Here,” a surprising and explicit memoir of her long-rumored, 40-year liaison with New Yorker editor William Shawn, a mating of secret souls allegedly consummated in a bedroom once used by Dietrich as a clothes closet.

 

“We were drawn to each other from the first by all the elusive forces that people have been trying to pin down from the beginning of time,” Ross wrote.

 

William Shawn had died six years earlier, but his widow was still alive when the book was published, leading New York Times writer (and former New Yorker deputy editor) Charles McGrath to call it “a cruel betrayal of the Shawns’ much-valued privacy — a tactless example of the current avidity for tell-all confessions.”

 

While involved with Shawn, Ross adopted a son, Erik, who in later years would accompany his mother on assignments. Her New Yorker work was compiled in several books, most recently “Reporting Always.”

 

She was born in Syracuse, New York, and was always more comfortable as an observer and played hooky just to hang around professional newspaper offices. She graduated from Hunter College, worked at the liberal New York City daily PM, then was hired by The New Yorker in the mid-1940s, when the magazine was looking for women writers because so many men were serving in World War II.

 

“We have sent her on stories ranging from in subject matter from politics to uplift brassieres, and she’s done splendidly by both,” PM editor Peggy Wright Weidman wrote to Shawn. “Another baffler is that she likes to work and does so, at any hour of the day, night, or weekend, with concentration and no nonsense.”

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EU, Canada Launch Free Trade Agreement While Britain Eyes Own Deal

The European Union and Canada will begin cutting import duties from Thursday on thousands of products and services in a reminder to Britain of the work it will take to replace the trade alliances it will give up when it leaves the EU.

The Comprehensive Economic and Trade Agreement (CETA) will provisionally enter force on Thursday, eight years after negotiations begun. It will be the EU’s first major trade deal since it began implementing its South Korea agreement in 2011.

The Canada agreement is the EU’s first trade pact with a G7 country, marking a success after its credibility took a beating from Britain’s 2016 vote to leave the block.

It has since struck a deal with Japan and hopes for further agreements with Mexico and the Mercosur countries of South America by the end of this year.

May, Trudeau agree

British Conservatives in the European Parliament said on Wednesday that the EU-Canada deal would bring 1.3 billion pounds ($1.76 billion) in benefits to Britain and said they hoped CETA’s benefits for Britain would continue after Brexit.

“I believe CETA will become the gold standard of agreements and one we can tailor to suit the priorities of the British and Canadian economies post-Brexit,” lawmaker Emma McClarkin said in a statement.

British Prime Minister Theresa May said in Ottawa on Monday that she and Canada’s Justin Trudeau had agreed that CETA should be “swiftly transitioned” into a new U.K.-Canada deal after Brexit.

How fast that transition occurs will depend on how much post-Brexit Britain wants to tailor the deal, perhaps by including closer convergence on financial services, rather than largely copying what is in place.

Duties, quotas to change

CETA will abolish some 98 percent of customs duties, open up public tenders to companies and allow the EU to export more cheese and wine and Canada more pork and beef in quotas that expand over the next six years.

The 1,598-page CETA text is full of negotiated details, including the right of European companies to ship up to 537,000 knitted jerseys to Canada and Canadian companies’ ability to send up to 196,000 square meters of carpet to Europe.

Britain and Canada will still have to create their own free trade agreement, which took five years to negotiate.

 

 

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Denmark Launches Global Alliance for Action on Climate Change

A U.S.-based global alliance to speed up efforts to tackle climate change was set to be launched Wednesday.

Formalized two days after the United States confirmed its plans to quit the landmark Paris climate agreement of 2015, the initiative aims to create a forum for sharing knowledge and technology among governments, businesses and community leaders.

Those joining the New York launch and supporting Partnering for Green Growth and the Global Goals 2030 (P4G) include China, Indonesia and C40, a global network of more than 90 large cities, representing a quarter of the global economy, taking action to address climate change. Twelve of the cities are in the U.S.

“We have all realized that the [U.S.] president is not, after all, almighty. And we see a long list of states, like California and Texas,  wanting to do something different on the climate issue,” Danish Prime Minister Lars Lokke Rasmussen told the Berlingske newspaper. Rasmussen’s nation is serving as the inaugural host country of the initiative.

U.S. President Donald Trump’s top economic adviser told a U.N. meeting on Monday that he stood by his intention to abandon the Paris pact unless there was a renegotiation more favorable to the United States, a step for which other countries have little appetite.

P4G will have its international base in Washington beginning in  January and hold its first summit in Copenhagen next November.

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Review: Apple Watch Goes Solo, But Don’t Dump Your Phone Yet

A chief gripe with Apple Watch is that it requires you to keep an iPhone with you for most tasks. The inclusion of GPS last year helped on runs and bike rides, but you’re still missing calls and messages without the phone nearby.

A new model with its own cellular-network connection is Apple’s next step toward an untethered world. Now you can make and receive calls and messages on the watch while leaving your phone at home.

But the watch still needs regular contact with an iPhone, and for most tasks, the phone needs to be on and connected, even if it’s nowhere nearby. So, you can’t get away with ditching the iPhone altogether. (Android users have their own wristwear options, including Samsung Gear and Android Wear watches, some of which can already manage their own network connections.)

The new Apple Watch Series 3, distinguished by a red crown, comes out Friday starting at about $400. You can forgo cellular, and the red crown, for $70 less. Or get a first-generation model, without GPS, for about $250.

Where it helps

You might not want to bring your phone on a short jog; the watch can still keep you in touch. Or you can leave the phone home while walking the dog or performing a quick errand.

You need a data add-on from the same wireless provider as your phone. It typically costs $5 or $10 a month and uses the phone’s data allotment.

While the watch technically has its own phone number, the major carriers have worked out number syncing. Calls to your phone will go to the watch, and calls from the watch will appear on caller ID with your regular number. Same goes for texts and iMessage chats.

Calls use the watch’s speaker and microphone, or wireless earphones. Colleagues say call quality was fine. It came in handy for sneaking in runs during conference calls (though if you’re my boss, just kidding! Now, about that raise …).

Phone calls and iMessage chats work on the watch even if your phone is off, as do turn-by-turn maps and queries to the Siri voice assistant. For texts, the phone needs to be on — somewhere. With the phone on, you can perform a variety of other tasks, including checking weather apps, Yelp recommendations and notifications that go to the phone.

Coming soon: the ability to stream Apple Music, even with the phone off. Unfortunately, this doesn’t apply to rival music services or Apple’s podcast app.

Limitations

Because the watch screen is small, many apps offer only a sliver of information and refer you back to the phone to view more. That was little more than an annoyance when the phone was in the same room. If you’ve left the phone behind, though, you’ll be left hanging.

You can also run into trouble while roaming, particularly internationally. For one thing, engineers weren’t able to squeeze in support for cellular frequencies around the world. And outside the U.S., only a handful of carriers are supporting the cellular watch. In any case, don’t forget to switch to airplane mode on flights.

Cellular data also drains the battery quicker. Apple’s promised 18 hours of battery life includes about four hours of such use. An hour of phone calls over LTE will drain the battery completely.

I got dropped from two conference calls because the battery was low to begin with. Plan ahead. A spare watch charger at your desk helps for those days you’re dumb enough to leave your phone on the kitchen counter.

Embracing the tether

It can be handy to untether the watch at times, but it’s not always necessary. Even when tied to the phone, Series 3 offers improvement such as tracking elevation, so you get credit for climbing stairs or jogging up a hill. And you can now hear Siri responses on the watch speaker, something enabled by the new version’s faster processor.

Software update

For owners of past models, a software update out this week, watchOS 4, will bring easier access to music playback controls when exercising — just swipe left. There are more prompts when reaching or nearing daily goals, and options for multiple sports in a single workout.

A new heart rate app now shows heart rate at rest and averages when walking or recovering from exercise. These can help you gauge your overall fitness.

And if your heart rate is high without any signs of exercise, you’ll get an alert. You enable this when you first open the heart rate app. It can signal health problems, though Apple is stopping short of telling you to see a doctor or visit the emergency room, as the watch isn’t marketed — or certified — as a medical device.

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Native American Journalists Debate Future of Media in Indian Country

The collapse of a prominent Native American media network has triggered debate over how Native media can best serve the interests of communities across Indian Country and counter stereotypes and misinformation in the mainstream press.

Native American journalism dates back to the Cherokee Phoenix, founded in 1828 to advocate against the U.S. government policy of assimilation and forced removal. Many newspapers have since come and gone, victims of high costs and low revenue.

The most recent casualty was Indian Country Today Media Network (ICTMN), whose publisher, Ray Halbritter of the Oneida Indian Nation, this month announced that after 36 years in business, the network would take a break to explore “alternative business models.”

The news disappointed many, who surmised that the venture was too costly to support.

“This is a really tough environment for anyone that’s in the advertising side, and Indian Country Today was selling advertising,” said independent journalist and blogger Mark Trahant.

Others suggest ICTMN failed because it lost touch with the audience it intended to serve.

Humble beginnings

ICTMN began as the Lakota Times, founded in 1981 by Oglala Lakota journalist and editor Tim Giago, serving South Dakota’s Pine Ridge Indian Reservation. A weekly community newspaper, independently owned, it gradually expanded its coverage to national issues and was renamed Indian Country Today.

New York State’s Oneida Nation, a tribe which has profited through the gaming industry, bought the paper in 1998. They later renamed it ICTMN and moved operations to New York City. In 2013, they ended the print edition and shifted online. Last April, ICTMN launched a glossy, bimonthly magazine, Indian Country, at considerable expense.

“One of the things I think they forgot was all these folks here in Pine Ridge, Rosebud, Cheyenne River, Crow Creek or Standing Rock reservations,” said Giago, now publisher of Native Sun News Today. “They live way out in the middle of nowhere. A lot of them don’t have money to buy computers, least of all to hook up to the internet.”

Giago and others have also criticized ICTMN for hiring non-Native American writers and editors.

“Most of the other Native publications over the past couple of generations were written and edited by people who were deeply involved in their respective communities,” said Mohawk journalist Doug George-Kanentiio, vice president of the Hiawatha Institute for Indigenous Knowledge and a former editor of the now-defunct newspaper Akwesasne Notes.

He also questioned whether a network owned and funded by a tribal government could guarantee editorial independence.

“Whoever is writing the checks by and large determines the content,” he said.

‘Crabs in a bucket’

ICTMN op/ed editor Raymond Cook bristles at the criticisms.

“People always poke at success,” he said, citing the analogy of crabs in a bucket, “where one crab is trying to get out of the bucket, and then the others pull him down.”

First, he explained why ICTMN shut down.

“The state of New York recently handed out several gaming licenses, and now these non-tribal entities are trying to creep into the casino market,” he said. “So, the Oneida had to readjust its revenue projections. And reluctantly, with tears in their eyes, they put us on hiatus.”

He denies ICTMN lost touch with tribes.

“New York City has a larger Native American population than any other U.S. city,” he said. “So we never moved out of Indian Country. If we had stayed in South Dakota, we’d still be waiting for internet connection.”

He defends ICTMN for hiring non-native writers, whom he calls ‘indigenous identifiers,’ as well as targeting non-Native audiences.

“’Cause we can’t talk to ourselves only,” he said.

The paper regularly interviewed prominent U.S. politicians, including President Barack Obama.

“We not only educated our readers on the views of these politicians on Indian-focused issues, but we also helped ensure that Native America was on the radar of many of the top power brokers in our country and beyond,” said ICTMN’s Washington bureau chief Rob Capriccioso, a member of the Sault Tribe of Chippewa Indians.

Looking forward

At their recent annual meeting, members of the Native American Journalists Association discussed setting up a national Native American wire service to serve both tribal and mainstream media.

“Instead of trying to create a new vehicle, we’d just create a new driver,” journalist Trahant said.

In the meantime, ICTMN’s Cook said his network is looking for a qualified party to take over operations, something that would require an annual investment of $2.5 million to $3 million until 2021.

“Basically, we’d sell it to them for $10, and they can take over operations, as long as they can guarantee our journalistic standards,” he said. “It could be a tribe, a business, a government — anything, as long as it’s based in Indian Country and it’s run by Natives.”

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Security Firm Links Iranian Hackers to Malware Attacks

A private U.S.-based security firm is linking an Iranian government-sponsored hacking group to cyber-attacks targeted at organizations across the world.

The security firm FireEye said Wednesday the Iranian hackers used malware to attack aerospace and petrochemical firms in the United States, Saudi Arabia and South Korea.

The hacking group, dubbed APT33 (advanced persistent threat) by the FireEye researchers, used phishing emails and fake domain names to gain access to computer systems of the targeted companies.

The report suggests the hackers target the companies in an effort to “enhance Iran’s domestic aviation capabilities or to support Iran’s military and strategic decision making vis-a-vis Saudi Arabia.”

“We believe the targeting of the Saudi organization may have been an attempt to gain insight into regional rivals, while the targeting of South Korean companies may be due to South Korea’s recent partnerships with Iran’s petrochemical industry as well as South Korea’s relationships with Saudi petrochemical companies,” the report reads.

The FireEye report says the hackers retained access to the companies’ computers for between four and six months at a time, during which the hackers were able to steal data and drop off malware that could potentially be used to destroy the infected computers.

It is difficult to accurately attribute cyber-attacks, but FireEye says it linked the hackers to Iran in part by tracking an online handle, “xman_1365_x,” that was accidentally left in the malware coding.

The report also notes references to the Farsi language in the malware code and that the hackers’ workdays appear to correspond with the Iranian time zone, and the Saturday to Wednesday workweek used in the country.

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Clinton Book Has Sold More Than 300,000 Copies

Hillary Clinton’s What Happened had a big debut.

Clinton’s book about her stunning loss in 2016 to Donald Trump sold more than 300,000 copies in the combined formats of hardcover, e-book and audio, Simon & Schuster told The Associated Press on Wednesday.

The book’s hardcover sales of 168,000 was the highest opening for any nonfiction release in five years, according to NPD BookScan, which tracks around 85 percent of retail print sales. Mark Owen’s No Easy Day, a 2012 memoir about the killing of Osama bin Laden, sold more than 250,000 copies in its first week.

Sales for What Happened far exceeded the first week numbers of more than 100,000 copies for Clinton’s book about her years as secretary of state, Hard Choices, which came out in 2014 as she was preparing to launch her run for president.

What Happened has been at or near the top of the Amazon.com best-seller list since its publication Sept. 12 despite a suspicious early wave of negative reader reviews (later pulled by Amazon), likely posted by commentators who had not yet read the book.

“The remarkable response to What Happened indicates that, notwithstanding all that has been written and discussed over the last year, there is clearly an overwhelming desire among readers to learn about and experience, from Hillary Clinton’s singular perspective, the historic events of the 2016 election,” Simon & Schuster CEO Carolyn Reidy said in a statement. “In its candor and immediacy, What Happened is satisfying that demand.”

Clinton’s all-time opening was for her memoir, Living History, a 2003 release that included her first extended comments on the affair between her husband, President Bill Clinton, and White House intern Monica Lewinsky. Living History sold more than 600,000 copies in its first week and came out before the fall of the Borders superstore chain and struggles of Barnes & Noble weakened the hardcover market.

Clinton had promised to let her “guard down” for her first book to come out when she was neither in government nor seeking office.

Responses to What Happened, as with so much of Clinton’s political career, have varied widely. What Happened has been called everything from boring and self-serving to revelatory and poignant.

According to Simon & Schuster, the book set a company record for weekly digital audio sales and sold more e-book editions in a single week than any nonfiction release from the publisher since Walter Isaacson’s biography of Steve Jobs in 2011.

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Boxer Jake LaMotta, Immortalized in ‘Raging Bull,’ Dies at 95

Jake LaMotta, the former middleweight champion whose life in and out of the ring was depicted in the film “Raging Bull,” for which Robert De Niro won an Academy Award, has died, his fiancee said Wednesday. He was 95.

 

LaMotta died Tuesday at a Miami-area hospital from complications of pneumonia, according to fiancee Denise Baker.

 

“Rest in Peace, Champ,” De Niro said in a statement.

 

The Bronx Bull, as he was known in his fighting days, compiled an 83-19-4 record with 30 knockouts, in a career that began in 1941 and ended in 1954.

 

LaMotta fought the great Sugar Ray Robinson six times, handing Robinson the first defeat of his career and losing the middleweight title to him in a storied match.

 

In the fight before he lost the title, LaMotta saved the championship in movie-script fashion against Laurent Dauthuille. Trailing badly on all three scorecards, LaMotta knocked out the challenger with 13 seconds left in the fight.

 

LaMotta threw a fight against Billy Fox, which he admitted in testimony before the Kefauver Committee, a U.S. Senate committee investigating organized crime in 1960.

 

“I purposely lost a fight to Billy Fox because they promised me that I would get a shot to fight for the title if I did,” LaMotta said in 1970 interview printed in Peter Heller’s 1973 book “In This Corner: 40 World Champions Tell Their Stories.”

LaMotta was “stopped” by Fox in the fourth round on November 14, 1947, in Madison Square Garden. He didn’t get a title shot until 10 fights later.

 

On June 16, 1949, in Detroit, he became middleweight champion when the Frenchman Marcel Cerdan couldn’t continue after the 10th round.

 

Of the claim that Cerdan had to quit because of a shoulder injury, LaMotta said in 1970: “Something’s bound to happen to you in a tough fight, cut eye, broken nose or broken hand or something like that. So you could make excuses out of anything, you know, but you got to keep on going if you’re a champ or you’re a contender.”

 

Renowned for his strong chin, and the punishment he could take, and dish out, LaMotta was knocked down only once – in a 1952 loss to light-heavyweight Danny Nardico – in his 106 fights.

 

LaMotta’s first defense was supposed to be a rematch with Cerdan, but the Frenchman was killed when a plane en route to the United States crashed in the Azores in 1949.

 

So in his first defense, LaMotta outpointed Tiberio Mitri on July 12, 1950, in New York, then on September 13, he rallied to knock out Dauthuille at Detroit.

LaMotta’s title reign ended on February 14, 1951, when Robinson stopped him in the 13th round in Chicago. In a fight that became known as the St. Valentine’s Day Massacre, LaMotta gave as good as he got in the early rounds, then took tremendous punishment. He would not go down.

 

In their second match, on February 5, 1943, in New York, LaMotta won a 10-round decision, giving Robinson his first defeat in the 41st fight of his illustrious career.

 

LaMotta was born July 10, 1922, on New York City’s Lower East Side but was raised in the Bronx. After retiring from boxing in 1954, he owned a nightclub for a time in Miami, then dabbled in show business and commercials. He also made personal appearances and for a while in the 1970s he was a host at a topless nightclub in New York.

 

The 1980 film “Raging Bull,” based on LaMotta’s memoir written 10 years earlier, was nominated for eight Academy Awards. Though director Martin Scorsese was passed over, De Niro, who gained 50 pounds to portray the older, heavier LaMotta, won the best actor award.

 

In 1998, LaMotta, who had four daughters, lost both of his sons. Jake LaMotta Jr., 51, died from cancer in February. Joe LaMotta, 49, was killed in plane crash off Nova Scotia in September.

 

A funeral in Miami and a memorial service in New York City are being planned, Baker said.

 

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Alexa, What Do You See? Amazon Said to Be Working on Glasses

Amazon is attempting to develop glasses that pair with Alexa and would allow users to access the voice-activated assistant outside the home, according to a newspaper report.

The Financial Times, citing anonymous sources, says the glasses could be released before the end of the year.

 

Amazon.com Inc., based in Seattle, did not immediately respond to a request for comment Wednesday.

 

Wearable technology, glasses specifically, is already in limited use. Snapchat sells $130 glasses that take a short video and post it on the social media app. And Alphabet Inc. sells Google Glass to employers, so that doctors or factory workers can search information or talk to co-workers hands free.  

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Drones May Soon Deliver Life Saving Defibrillators to Rural Areas

A cardiac arrest happens when the heart stops beating regularly, due to mixed up electrical signals. According to the American Heart Association, when cardiac arrest occurs, every minute that passes before help arrives lowers a person’s chance of surviving by seven to 10 percent. However, as we hear from VOA’s Kevin Enochs, in a crisis when every minute counts, drones may be able to quickly get help to people who live in rural areas.

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