Day: February 24, 2018

French Farmers Heckle Macron at Agricultural Fair

President Emmanuel Macron on Saturday faced heckles and whistles from French farmers angry with reforms to their sector, as he arrived for France’s annual agricultural fair.

For over 12 hours, Macron listened and responded to critics’ rebukes and questions — only to return home to the Elysee Palace with an adopted hen.

“I saw people 500 meters away, whistling at me,” Macron said, referring to a group of cereal growers protesting against a planned European Union free-trade pact with a South American bloc, and against the clampdown on weedkiller glyphosate.

“I broke with the plan and with the rules and headed straight to them, and they stopped whistling,” he told reporters.

“No one will be left without a solution,” he said.

Macron was seeking to appease farmers who believe they have no alternative to the widely used herbicide, which environmental activists say probably causes cancer.

Mercosur warning

He also wanted to calm fears after France’s biggest farm union warned Friday that more than 20,000 farms could go bankrupt if the deal with the Mercosur trade bloc (Brazil, which is the world’s top exporter of beef, plus Argentina, Uruguay and Paraguay) goes ahead.

Meanwhile, Macron was under pressure over a plan to allow the wolf population in the French countryside to grow, if only marginally.

“If you want me to commit to reinforce the means of protection … I will do that,” he responded.

And he called on farmers to accept a decision on minimum price rules for European farmers, “or else the market will decide for us.”

But it wasn’t all jeers and snarls for Macron at the fair.

He left the fairground with a red hen in his arms, a gift from a poultry farm owner.

“I’ll take it. We’ll just have to find a way to protect it from the dog,” he said, referring to his Labrador, Nemo.

It was a far cry from last year, when, as a presidential candidate not yet in office, Macron was hit on the head by an egg launched by a protester.

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Investor Warren Buffett: Good Deals Hard to Find on Wall Street

Investor Warren Buffett says Wall Street’s lust for deals has prompted CEOs to act like oversexed teenagers and overpay for acquisitions, so it has been hard to find deals for Berkshire Hathaway.

In his annual letter to shareholders Saturday, Buffett mixed investment advice with details of how Berkshire’s many businesses performed. Buffett blamed his recent acquisition drought on ambitious CEOs who have been encouraged to take on debt to finance pricey deals.

“If Wall Street analysts or board members urge that brand of CEO to consider possible acquisitions, it’s a bit like telling your ripening teenager to be sure to have a normal sex life,” Buffett said.

Berkshire is also facing more competition for acquisitions from private equity firms and other companies such as privately held Koch Industries.

Sticking with guideline

Buffett is sitting on $116 billion of cash and bonds because he’s struggled to find acquisitions at sensible prices. And Buffett is unwilling to load up on debt to finance deals at current prices.

“We will stick with our simple guideline: The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own,” Buffett wrote.

He said the conglomerate recorded a $29 billion paper gain because of the tax reforms Congress passed late last year. That helped it generate $44.9 billion profit last year, up from $24.1 billion the previous year.

Investors left wanting

Buffett’s letter is always well-read in the business world because of his remarkable track record over more than five decades and his talent for explaining complicated subjects in plain language. But this year’s letter left some investors wanting more because he didn’t say much about Berkshire’s succession plan, some noteworthy investment moves or the company’s new partnership with Amazon and JP Morgan Chase to reduce health care costs.

Edward Jones analyst Jim Shanahan said he expected Buffett to devote more of the letter to explaining his decision to promote and name the top two candidates to eventually succeed him as Berkshire’s CEO. Buffett briefly mentioned that move in two paragraphs at the very end of his letter.

That surprised John Fox, chief investment officer at FAM Funds, which holds Berkshire stock.

“He didn’t say a lot about succession. I was expecting more,” Fox said.

Greg Abel and Ajit Jain joined Berkshire’s board in January and took on additional responsibilities. Jain will now oversee all of the conglomerate’s insurance businesses while Abel will oversee all of the conglomerate’s non-insurance business operations.

Bet pays off for charity

Buffett, 87, has long had a succession plan in place for Berkshire to ensure the future of the conglomerate he built even though he has no plans to retire. Until January, he kept the names of Berkshire’s internal CEO candidates secret although investors who follow Berkshire had long included Jain and Abel on their short lists.

Shanahan said it also would have been nice to read Buffett’s thoughts on why he is selling off Berkshire’s IBM investment but maintaining big stakes in Wells Fargo and US Bancorp.

But Buffett did offer some sage investment advice based on his victory in a 10-year bet he made with a group of hedge funds. The S&P 500 index fund Buffett backed generated an 8.5 percent average annual gain and easily outpaced the hedge funds. One of Buffett’s favorite charities, Girls Inc. of Omaha, received $2.2 million as a result of the bet.

Buffett said it’s important for people to invest money regularly regardless of the market’s ups and downs, but watch out for investment fees, which will eat away at returns.

Succeeding in the stock market requires the discipline to act sensibly when markets do crazy things. Buffett said investors need “an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period — or even to look foolish — is also essential.”

Buffett said investors shouldn’t assume that bonds are less risky than stocks. At times, bonds are riskier than stocks.

Berkshire owns more than 90 subsidiaries, including clothing, furniture and jewelry firms. It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

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Australia Failing to Curb Corruption, Global Survey Finds

Australia appears to be failing in its efforts to crack down on bribery, according to the latest survey conducted by Transparency International, a non-governmental organization based in Germany.

The group said developed countries – including Australia – appeared to be lagging in their efforts to combat corruption in the public sector.  It pointed to an inadequate regulation of foreign political donations in Australia, conflicts of interest in planning approvals, revolving doors and improper industry lobbying in large-scale mining projects.  

While Australia’s ranking is unchanged – it remains ranked 13th out of 180 countries – its corruption score has slipped eight points since the index started in its current form in 2012.

Concern about Australia’s ranking comes as debate continues about the need for a nationwide anti-corruption body similar to the Independent Commission Against Corruption in the state of New South Wales.  It was set up in 1989 and has scored many notable victories, including the jailing of corrupt state politicians.

Professor A.J. Brown, who leads a project called “Strengthening Australia’s National Integrity System” for Transparency International, says much more work needs to be done.

“We do not have a federal anti-corruption body amongst other things, so it is also about the fact that our track record in terms of government commitment to controlling foreign bribery or money laundering and some of the things that the private sector is also involved in internationally is not that strong.  We are moving but we have been moving very slow and very late, and not very comprehensively,” Brown said.

This year, New Zealand and Denmark were ranked highest in the Transparency International survey, the U.S. is ranked 16th, while South Sudan and Somalia were the lowest-ranked nations. The best performing region was Western Europe, while the most corrupt regions were Sub-Saharan Africa, followed by Eastern Europe and Central Asia.

The survey found that more than 6 billion people live in countries that are corrupt. Transparency International said most countries failed to protect the independence of the media, which plays a crucial role in preventing corruption.

 

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More US Companies End Marketing Programs With National Rifle Association

Three more companies say they have ended marketing programs with the National Rifle Association (NRA), as gun control advocates stepped up pressure on firms to cut ties to the gun industry following last week’s school shooting in Florida.

Activists have posted petitions online, identifying businesses that offer discounts to NRA members, in a push to pressure the companies to cut ties to the gun rights organization.

Corporations that ended their discount programs with NRA members on Friday included insurance company MetLife, car rental company Hertz, and Symantec Corp., the software company that makes Norton Antivirus technology.

The move comes after several other companies cut their ties to the NRA earlier this week, including car rental company Enterprise, First National Bank of Omaha, Wyndham Hotels and Best Western hotels.

The NRA is one of the country’s most powerful lobbying groups for gun rights and claims 5 million members.

Florida shooting renews debate

Last week’s shooting at a Florida high school that left 17 people dead has renewed the national debate about gun control.

Gun control activists have been mounting a campaign on Twitter, including using the hashtag #BoycottNRA as well as using social media to pressure streaming platforms, including Amazon, to drop the online video channel NRATV, which features gun-friendly programming produced by the NRA.

On Thursday, NRA Executive Vice President Wayne LaPierre told the Conservative Political Action Conference (CPAC) that those advocating for stricter gun control are exploiting the Florida shooting.

Receiving a rousing reception, LaPierre said, “There is no greater personal individual freedom than the right to keep and bear arms, the right to protect yourself and the right to survive.”

Arming teachers

On Friday, President Donald Trump reiterated to CPAC for the third time this week the need to arm teachers with concealed weapons to prevent more shootings in U.S. schools.

“It’s time to make our schools a much harder target for attackers. We don’t want them in our schools,” Trump said.

Trump has also proposed raising the age to buy assault-style rifles from 18 to 21, which is opposed by the NRA.

In his speech to CPAC, Trump indicated he does not intend to battle the powerful organization.

“They’re friends of mine,” Trump said of the NRA, which gave more than $11 million to his presidential campaign in 2016 and spent nearly $20 million attacking his Democratic Party general election challenger, Hillary Clinton.

The mass shooting in Florida on Feb. 14 has sparked a wave of rallies in Florida, Washington and in other areas of the United States in an attempt to force local and national leaders to take action to prevent such attacks.

 

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Unlocking Secrets of a Sharp Mind at Old Age

There is no clear and easy way to tell when a person’s thinking process has peaked, but most scientists agree that intelligence starts slowly deteriorating somewhere around age 70. However, some individuals’ minds stay sharp well beyond that age and researchers would like to know why. VOA’s George Putic reports.

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Wine Tied to Healthier Arteries for Some Diabetics

Some diabetics with plaque buildup in their arteries might have less debris in these blood vessels after adding wine to their diets, a recent study suggests.

For the study, researchers examined data on 224 people with type 2 diabetes who normally didn’t drink alcohol, but were randomly assigned to follow a Mediterranean diet and drink approximately one glass of red wine, white wine or water for daily. Among the subset of 174 people with ultrasound images of their arteries, 45 percent had detectable plaque at the start of the study.

Two years later, researchers didn’t see any significant increase in plaque for any of the participants with ultrasounds, regardless of whether they drank wine or water.

However, among the people who started out with the most plaque in their arteries, there was a small but statistically meaningful reduction in these deposits by the end of the study, researchers report in the European Journal of Clinical Nutrition.

“Among patients with well-controlled diabetes and a low risk for alcohol abuse, initiating moderate alcohol consumption in the context of a healthy diet is apparently safe and may modestly reduce cardiometabolic risk,” said lead study author Rachel Golan, a public health researcher at Ben-Gurion University of the Negev in Beer Sheva, Israel.

“Our study is not a call for all patients with type 2 diabetes to start drinking,” Golan said by email.

Cardio-metabolic risk factors can increase the chances of having diabetes, heart disease or a stroke. In addition to plaque in the arteries, other risk factors include high blood pressure, elevated blood sugar, high cholesterol, smoking and having poor diet and exercise habits.

Previous research

Some previous research has linked drinking moderate amounts of wine or other alcohol to a lower risk of cardiovascular disease in otherwise healthy people as well as diabetics.

In the current study, all of the participants had the most common form of the disease, known as type 2 diabetes, which is linked to obesity and aging and occurs when the body can no longer produce or use the hormone insulin to convert sugars in the blood into energy.

Participants were part of a larger study looking at people with cardiovascular disease and diabetes.

They were typically in their late 50s or early 60s and most of them were overweight or obese. Roughly 65 to 70 percent of them took medications to lower cholesterol or other blood fats and the majority of them also took diabetes drugs to control blood sugar.

Mediterranean diet

Patients were told to follow a Mediterranean diet, which typically includes lots of fruits, vegetables, whole grains, legumes and olive oil. This diet also tends to favor lean sources of protein like chicken or fish over red meat, which contains more saturated fat.

Participants were provided with wine or mineral water throughout the study period along with a 150-milliliter (5.07-ounce) glass to measure their daily dose of their assigned beverage, which was consumed with dinner.

Some previous research has linked a Mediterranean diet to weight loss and a reduced risk of heart disease and some cancers as well as better management of blood sugar in people with diabetes.

One limitation of the current study is the potential for the apparent beneficial effect of the wine to have been at least partially caused by the Mediterranean diet.

Another drawback is that researchers only had ultrasound images of plaque buildup for a small proportion of patients, and the two-year follow up period might not be long enough to detect meaningful differences in plaque accumulation.

There is a risk

Alcohol may help, but it also isn’t risk free, noted Dr. Gregory Marcus, a researcher at the University of California, San Francisco, who wasn’t involved in the study. It can increase the risk of heart rhythm problems, which can cause stroke, Marcus said by email.

Even though alcohol might help reduce the risk of cardiovascular disease in some circumstances, there isn’t enough evidence yet to suggest that people who avoid alcohol should start drinking, Marcus said.

“I would certainly recommend against starting to drink alcohol in the hopes of obtaining beneficial health effects among anyone that currently abstains,” Marcus said. “And among those who drink, these sorts of positive results should never be used to consume more alcohol, particularly beyond drinking in moderation.”

 

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AP Fact Check: Toughest Sanctions on North Korea Ever? Not Likely

The heaviest, the largest, the most impactful —  those were the superlatives the Trump administration used to describe its latest sanctions against North Korea.

But were the Treasury Department designations of more than 50 companies and ships accused of illicit trading with the pariah nation really the toughest action yet by the U.S. and the wider world?

Probably not.

Here’s a look at how President Donald Trump and a top lieutenant described Friday’s sanctions to punish the North for its development of nuclear weapons and ballistic missiles — and how they stack up against past economic restrictions that have been piled on Kim Jong Un’s government in response to its illegal weapons tests.

Treasury Secretary Steven Mnuchin: “The Treasury Department is announcing the largest set of sanctions ever imposed in connection with North Korea.”

Trump: “I do want to say, because people have asked, North Korea — we imposed today the heaviest sanctions ever imposed on a country before.”

As for Trump’s blanket assertion, in sheer dollar terms, the U.S. has actually imposed much costlier restrictions on countries such as Iran, a far richer economy than North Korea’s. Washington and its allies cut off tens of billions of dollars’ worth of Iranian oil exports and shut the country’s central bank out of the international financial system, among other steps, before eliminating those restrictions under a 2015 nuclear deal.

Correct on number

In terms of the number of entities targeted Friday, Mnuchin is probably correct about the history of sanctions on North Korea.

The department blacklisted “one individual, 27 entities and 28 vessels” located, registered or flagged in North Korea, China, Singapore, Taiwan, Hong Kong, Marshall Islands, Tanzania, Panama and Comoros. That appeared to be the most companies or individuals designated by the U.S. at a single time. According to Mnuchin, there are now more than 450 U.S. sanctions against North Korea, about half of them levied in the last year.

But in purely economic terms, both Mnuchin and Trump are well wide of the mark.

The latest designations are primarily intended to crack down on North Korea’s evasion of wider-ranging sanctions adopted by the U.N. Security Council and the United States that are more economically significant.

Over the past year, the council has adopted three sets of sanctions banning North Korean exports of coal, iron ore, textiles, seafood products and other goods. If those measures are properly implemented, that would reduce the North’s export revenues by 90 percent from 2016 levels, or by $2.3 billion annually. Those sanctions are also heavily restricting North Korean fuel supplies. They capped refined oil imports at 500,000 barrels a year. That’s a reduction from the 4.5 million barrels North Korea imported in 2016.

It’s because of those draconian restrictions that North Korea wants to conduct trade on the quiet with “ship-to-ship” transfers that the U.S. is determined to stop. With Friday’s measures, Mnuchin said, the U.S. has gone after “virtually all their ships that they’re using at this moment.”

That’s certainly a significant increase in pressure on North Korea as its foreign trade diminishes. But the Treasury Department did not give an overall figure for how much revenue the North would be deprived of because of the latest actions, other than to say that nine of the newly blacklisted foreign vessels “are capable of carrying over $5.5 million worth of coal at a time.”

‘Underwhelming’ in scope

The conservative-leaning Heritage Foundation did not think much of the new steps.

“As impressive as the list is in length, it is underwhelming in its scope and fails to live up to the hype,” it said. “Like his predecessors, President Trump remains reluctant to go after Chinese financial entities aiding North Korea’s prohibited nuclear and missile programs.”

China is said to account for about 90 percent of North Korea’s external trade and be its main access point to the international financial system. Past U.S. sanctions that have targeted Chinese companies have probably had a much bigger impact on North Korea’s revenue streams.

In November, the Treasury Department blacklisted three Chinese companies that it said had “cumulatively exported approximately $650 million worth of goods to North Korea and cumulatively imported more than $100 million worth of goods from North Korea.”

An even bigger Chinese trading partner of the North was blacklisted in September 2016: Dandong Hongxiang Industrial Development Co. According to a report by the U.S.-based research group C4AD and South Korea’s Asan Institute for Policy Studies, Hongxiang carried out imports and exports worth a total of $532 million in 2011-15. It had also supplied aluminum oxide and other materials that can be used in processing nuclear bomb fuel.

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US Gymnasts Tell AP Sport Rife With Verbal, Emotional Abuse

They were little girls with dreams of Olympic gold when they started in gymnastics. Now they’re women with lifelong injuries, suffocating anxiety and debilitating eating disorders. 

They are the other victims of USA Gymnastics. 

Thirteen former U.S. gymnasts and three coaches interviewed by The Associated Press described a win-at-all-cost culture rife with verbal and emotional abuse in which girls were forced to train on broken bones and other injuries. That culture was tacitly endorsed by the sport’s governing body and institutionalized by Bela and Martha Karolyi, the husband-and-wife duo who coached America’s top female gymnasts for three decades.

The gymnasts agreed to speak to AP, some for the first time, after the recent courtroom revelations about USA Gymnastics’ former team doctor, Larry Nassar, who recently was sentenced to decades in prison for sexually assaulting young athletes for years under the guise of medical treatment.

The Karolyis’ oppressive style created a toxic environment in which a predator like Nassar was able to thrive, according to witness statements in Nassar’s criminal case and a lawsuit against USA Gymnastics, the Karolyis and others. Girls were afraid to challenge authority, Nassar was able to prey on vulnerable girls and, at the same time, he didn’t challenge the couple’s harsh training methods.

“He was their little puppet,” Jeanette Antolin, a former member of the U.S. national team who trained with the Karolyis, said. “He let us train on injuries. They got what they wanted. He got what he wanted.”

Young girls were virtually starved, constantly body shamed and forced to train with broken bones or other injuries, according to interviews and the lawsuit. Their meager diets and extreme training often delayed puberty, which some coaches believed was such a detriment that they ridiculed girls who started their menstrual cycles.

USA Gymnastics declined to answer questions for this story, and the Karolyis didn’t reply to requests for comment. The Karolyis’ Houston attorney, Gary Jewell, said the Karolyis didn’t abuse anyone.

Some female gymnasts in the U.S. were subjected to abusive training methods before the Karolyis defected from their native Romania in 1981. But other coaches and former gymnasts say the Karolyis’ early successes — starting with Romania’s Nadia Comaneci becoming the first woman gymnast awarded a perfect score in competition — validated the cutthroat attitudes that fostered widespread mistreatment of American athletes at the highest levels of women’s gymnastics.

The Karolyis, who helped USA Gymnastics win 41 Olympic medals, including 13 gold over three decades, trained hundreds of gymnasts at their complex in rural Huntsville, Texas, known as “the ranch.” They selected gymnasts for the national team and earned millions from USA Gymnastics. 

A congressional committee investigating the gymnastics scandal said in Feb. 8 letters to the Karolyis, USA Gymnastics and the U.S. Olympic Committee that they were all “at the center of many of these failures” that allowed Nassar’s sexual abuse to persist for more than two decades.

It’s unclear what the Karolyis knew about Nassar’s sexual abuse and whether they took any action to stop it.

Martha Karolyi, in a deposition given last year as part of the lawsuit against the Karolyis and numerous others, acknowledged that “in or around June 2015” she received a phone call from the then-head of the national gymnastics organization, Steve Penny, informing her that the organization had received a complaint that Nassar had “molested a national team gymnast at the ranch.”

The deposition was included in a Feb. 14 letter to two U.S. senators from John Manly, an attorney representing Nassar victims in a lawsuit that seeks monetary damages and court oversight of USA Gymnastics.

Manly cited the deposition in accusing the sport’s governing body of lying to Congress. 

In a timeline submitted to a congressional committee investigating the scandal, the organization said it was told in mid-June of an athlete “uncomfortable” with Nassar’s treatment, but that it was not until late July 2015 that it decided to notify law enforcement “with concerns of potential sexual misconduct.”

Penny, the former USA Gymnastics chief, said in a statement that Martha Karolyi was mistaken about the timing of his call.

Texas has one of the strongest child abuse reporting laws in the nation, requiring anyone who has reason to believe abuse has occurred to immediately alert authorities. Failure to do so is a misdemeanor punishable by jail time and a fine.

In the deposition, Martha Karolyi said she did not discuss what she learned about Nassar with anyone but her husband, her lawyers and the USA Gymnastics official who called her. 

Jewell, the Karolyis’ attorney, said the couple didn’t know about any sexual assault complaints involving Nassar until Martha Karolyi was contacted by a USA Gymnastics official in the summer of 2015.

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