Day: September 7, 2018

Trump Threatens to Tax Virtually All Chinese Imports to US

U.S. President Donald Trump is threatening to impose tariffs on another $267 billion worth Chinese imports, which would cover virtually all the goods China imports to the United States.

The potential tariffs would come on top of punitive levies on $50 billion in Chinese goods already in place, as well as tariffs on another $200 billion worth of goods that Trump says “could take place very soon.”

He told reporters traveling with him to Fargo, North Dakota, on Friday that “behind that, there’s another $267 billion ready to go on short notice if I want.”

“That changes the equation,” he added.

Such a move would subject virtually all U.S. imports from China to new duties.

The president’s comments came one day after a public comment period ended on his proposal to add duties on $200 billion worth of Chinese imports. White House economic adviser Larry Kudlow said Friday that the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The U.S. trade representative’s office received nearly 6,000 comments during seven days of public hearings on the proposal.

The Trump administration has argued that tariffs on Chinese goods will force China to trade on more favorable terms with the United States. It has demanded that China better protect American intellectual property, including ending the practice of cybertheft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

China has retaliated against the U.S. tariffs on $50 billion in Chinese imports with import taxes on an equal amount of U.S. goods. It has also threatened to retaliate against any new tariffs. However, China’s imports from the United States are worth $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.

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Aretha Franklin Dresses, Hats to Go Up for Auction

More than 30 dresses and accessories worn on stage by Aretha Franklin are going up for auction.

The Queen of Soul died at age 76 in Detroit on August 16.

Julien’s Auctions says the items include a red sequined dress Franklin wore at Radio City Music Hall in 1991, a knit jacket she appeared in with President Bill Clinton at the National Medal of Arts ceremony in 1999 and a denim jacket given to crew members of “The Blues Brothers.”

The items will go on display between November 5 and November 9 at the Hard Rock Cafe in New York.

The auction will take place in person and online on November 10 as part of a two-day Icons & Idols: Rock-N-Roll at the Hard Rock.

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Zimbabwe’s Capital on Alert Over Cholera Outbreak

Lizzy Maupa uses a bucket to transfer water she used to bathe from her tub to her toilet. 

She has a four-week-old baby and a three-year-old child, but the city water supply has not been working for a month, says Maupa.  

 

So she collects water from a nearby river, which she boils to drink. Maupa is being extra careful after Zimbabwe’s Ministry of Health on Thursday announced an outbreak of cholera in their part of the city. 

 

“I have heard about it. I heard on the news last night,” she says. “So I am trying to be hygienic so that I can take care of the little ones. It has been difficult. I have too many water demands.”

Zimbabwe’s outgoing Health Minister David Parirenyatwa told reporters late Thursday approximately 40 people were being treated for cholera and five had already died from diarrhea and vomiting, typical symptoms of the water-borne disease. 

 

During a visit to a temporary cholera treatment camp in Harare, he warned people to wash their hands and drink only clean water.

“It is usually a problem of contaminated water. These people were drinking water from, we suspect from one or two boreholes that our team has gone to take samples from,” he explained. “If they are contaminated, they will be decommissioned for now. Those that we have here are getting much, much better. As usual prevention, prevention, prevention is key otherwise we will have an outbreak throughout the country.”

A 2008 cholera outbreak in Zimbabwe lasted over a year and killed about 5,000 people.  

 

It was stopped only after international groups like USAID donated drugs and water treatment chemicals.

The head of Zimbabwe Doctors for Human Rights Calvin Fambirai warns the country must improve basic sanitation to prevent further outbreaks.  

“The conditions that necessitate the spread of cholera and typhoid in Zimbabwe haven’t changed,” he warned. “They are becoming worse by the day. The first problem we face is authorities haven’t been giving resources necessary for the improvement of service delivery in the country to make sure that these archaic diseases do not continue to break out.”

Poor hygiene, water quality and waste disposal in densely populated areas remain unsolved, notes Fambirai.  

 

Residents often go for weeks without running water or waste collection.  

 

Health Minister Parirenyatwa said the sanitation situation would improve  a promise that many have heard before.  

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Modest Premium Hikes Expected as ‘Obamacare’ Stabilizes

Millions of people covered under the Affordable Care Act will see only modest premium increases next year, and some will get price cuts. That’s the conclusion from an exclusive analysis of the besieged but resilient program, which still sparks deep divisions heading into this year’s midterm elections.

The Associated Press and the consulting firm Avalere Health crunched available state data and found that “Obamacare’s” health insurance marketplaces seem to be stabilizing after two years of sharp premium hikes. And the exodus of insurers from the program has halted, even reversed somewhat, with more consumer choices for 2019.

The analysis found a 3.6 percent average increase in proposed or approved premiums across 47 states and Washington, D.C., for next year. This year the average increase nationally was about 30 percent. The average total premium for an individual covered under the health law is now close to $600 a month before subsidies.

For next year, premiums are expected either to drop or increase by less than 10 percent in 41 states with about 9 million customers. Eleven of those states are expected to see a drop in average premiums. In six other states, plus Washington, D.C., premiums are projected to rise between 10 percent and 18 percent.

Insurers also are starting to come back. Nineteen states will either see new insurers enter or current ones expand into more areas. There are no bare counties lacking a willing insurer.

Even so, Chris Sloan, an Avalere director, says, “This is still a market that’s unaffordable for many people who aren’t eligible for subsidies.”

Nearly nine in 10 ACA customers get government subsidies based on income, shielding most from premium increases. But people with higher incomes, who don’t qualify for financial aid, have dropped out in droves.

It’s too early to say if the ACA’s turnabout will be fleeting or a more permanent shift. Either way, next year’s numbers are at odds with the political rhetoric around the ACA, still heated even after President Donald Trump and congressional Republicans failed to repeal the law last year.

Trump regularly calls “Obamacare” a “disaster” and time again has declared it “dead.” The GOP tax-cut bill repealed the ACA requirement that Americans have health insurance or risk fines, effective next year. But other key elements remain, including subsidies and protection for people with pre-existing conditions. Democrats, meanwhile, accuse Trump of “sabotage,” driving up premiums and threatening coverage.

The moderating market trend “takes the issue away from Republican candidates” in the midterm elections, said Mark Hall, a health law and policy expert at Wake Forest University in North Carolina. “Part of the mess is now their fault, and the facts really don’t support the narrative that things are getting worse.”

Market stability also appears to undercut Democrats’ charge that Trump is undermining the program. But Democrats disagree, saying the ACA is in danger while Republicans control Washington, and that premiums would have been even lower but for the administration’s hostility.

“Voters won’t think that the Trump threat to the ACA has passed at all, unless Democrats get at least the House in 2018,” said Bill Carrick, a strategist for Sen. Dianne Feinstein, D-Calif., whose re-election ads emphasize her support for the health law.

As if seconding Democrats’ argument, the Trump administration has said it won’t defend the ACA’s protections for pre-existing conditions in a federal case in Texas that could go to the Supreme Court. A new Kaiser Family Foundation poll found that Americans regardless of partisan identification said those protections should remain the law of the land.

In solidly Republican Arkansas, Democratic state legislator and cancer survivor Clarke Tucker is using the ACA in his campaign to try to flip a U.S. House seat from red to blue. Tucker, 37, says part of what made him want to run is the House vote to repeal the ACA last year and images of Trump and GOP lawmakers celebrating at the White House.

Business analysts say the relatively good news for 2019 is partly the result of previous premium increases, which allowed insurers to return to profitability after losing hundreds of millions of dollars.

“They can price better, and they can manage this population better, which is why they can actually make some money,” said Deep Banerjee of Standard & Poor’s.

Repeal of the ACA’s requirement to carry insurance doesn’t seem to have had a major impact yet, but Banerjee said there’s “a cloud of uncertainty” around the Trump administration’s potential policy shifts. Yet some administration actions have also helped settle the markets, such as continuing a premium stabilization program.

April Box of Spokane Valley, Washington, lives in a state where premiums could rise substantially since insurers have proposed an 18 percent increase. In states expecting double-digit increases, the reasons reflect local market conditions. Proposed increases may ultimately get revised downward.

Box is self-employed as a personal advocate helping patients navigate the health care system. She has an ACA plan, but even with a subsidy her premiums are expensive and a high deductible means she’s essentially covered only for catastrophic illness.

“I’m choosing not to go to the doctor, and I’m saying to myself I’m not sick enough to go to the doctors,” Box said. “We need to figure out how to make it better and lower the price.”

Now in her 50s, Box was born with dislocated hips. She worries she could be uninsurable if insurers are allowed to go back to denying coverage for pre-existing conditions. She might need another hip surgery.

“It needs to be a level playing field for everybody,” said Box. “We need to have universal coverage – that is really the only answer.”

Tennessee is a prime example of the ACA’s flipped fortunes.

Last year, the state struggled to secure at least one insurer in every county. But approved rates for 2019 reflect an 11 percent average decrease. Two new insurers – Bright Health and Celtic_ have entered its marketplace, and two others – Cigna and Oscar – will expand into new counties.

Tennessee Republican Sen. Lamar Alexander called that a “welcome step,” but argued rates could have been even lower if congressional Democrats had supported a market stabilization bill. Democrats blame Republicans for the failure.

To calculate premium changes, Avalere and The Associated Press used proposed overall individual marketplace rate filings for 34 states and D.C., and final rates for 13 states that have already approved them. Data was not available for Massachusetts, Maryland and Alabama. The average rate change calculations include both on-exchange and off-exchange plans that comply with ACA requirements. The government isn’t expected to release final national figures until later this fall.

 

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US Adds Strong 201K Jobs; Unemployment Stays at 3.9 Percent

Hiring picked up in August as U.S. employers added a strong 201,000 jobs, a sign of confidence that consumers and businesses will keep spending despite the Trump administration’s conflicts with U.S. trading partners.

The Labor Department said Friday the unemployment rate remained 3.9 percent, near an 18-year low. 

Americans’ paychecks grew at a faster pace in August. Average hourly wages rose last month and are now 2.9 percent higher than they were a year earlier, the fastest year-over-year gain in eight years. Still, after adjusting for inflation, pay has been flat for the past year.

The economy is expanding steadily, fueled by tax cuts, confident consumers, greater business investment in equipment and more government spending. Growth reached 4.2 percent at an annual rate in the April-June quarter, the fastest pace in four years.

Most analysts have forecast that the economy will expand at an annual pace of at least 3 percent in the current July-September quarter. For the full year, the economy is on track to grow 3 percent for the first time since 2005. 

Consumer confidence rose in August to its highest level in nearly 18 years. Most Americans feel that jobs are widely available and expect the economy to remain healthy in the coming months, according to the Conference Board’s consumer confidence survey.

The buoyant mood is lifting spending on everything from cars to restaurant meals to clothes. Consumers’ enthusiasm is even boosting such brick-and-mortar store chains as Target, Walmart and Best Buy, which have posted strong sales gains despite intensifying competition from online retailers.

In August, factories expanded at their quickest pace in 14 years, according to a survey of purchasing managers. A manufacturing index compiled by a trade group reached its highest point since 2004. Measures of new orders and production surged, and factories added jobs at a faster pace than in July.

Not all the economic news has been positive. Higher mortgage rates and years of rapid price increases are slowing the housing market. Sales of existing homes dropped in July for a fourth straight month.

And wages are still rising only modestly, even after more than nine years of economic expansion and an ultra-low unemployment rate.

Many economists also worry President Donald Trump will soon follow through on a threat to impose tariffs of up to 25 percent on $200 billion of imports from China. That would be in addition to $50 billion in duties already imposed. That move could shave as much as a quarter-point off growth over the next year, Mark Zandi, chief economist at Moody’s Analytics, has estimated. 

For now, there’s little sign that companies are worried enough about a trade war to slow hiring. Businesses are increasingly reluctant to even lay off workers, in part because it would be difficult to replace them at a time when qualified job applicants have become harder to find.

On Thursday, the government said the number of people seeking unemployment benefits — a proxy for layoffs — amounted to just 203,000 last week, the fewest total in 49 years.

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First Human Study of Gene Editing Shows Promise

Early, partial results from a historic gene editing study in human patients that was released earlier this week give encouraging signs that the treatment may be safe and having at least some of its hoped-for effect, but it is too soon to know whether it ultimately will succeed. Faith Lapidus reports.

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Scouting Mission Begins for Proposed Rio Grande Trail

Hikers have embarked on a 500-mile (805-kilometer) expedition that will traverse New Mexico. The mission: Chart out the best route and identify what challenges might lie ahead as the state moves closer to establishing the Rio Grande Trail.

Following in the footsteps of other states, New Mexico is looking to capitalize on its vistas, mild weather and culture with the creation of a long-distance trail along one of North America’s longest rivers.

The Rio Grande stretches down the middle of the state, from the southern end of the Rocky Mountains near the Colorado state line to the bustling desert region where New Mexico and Texas intersect with the U.S.-Mexico border.

Supporters say that with its diverse scenery, the Rio Grande Trail has the potential to make the list of the country’s more famous long-distance routes, including the Appalachian Trail that runs from Georgia to Maine and the Continental Divide Trail that crosses a handful of Western states. Neighboring Colorado and Arizona have their own namesake trails and there are several others that are designed as national scenic trails.

Outdoor recreation in New Mexico alone is already a multibillion-dollar industry and the benefits of the Rio Grande Trail could be profound, said Jeff Steinborn, a New Mexico state senator who pushed legislation in 2015 to create the commission charged with establishing the trail.

“We can’t even begin to appreciate all the opportunities that it will unfold for our citizens, for economic development and for frontier communities,” he said.

Appalachian study

In the East, more than 3 million people visit some part of the Appalachian Trail annually. The trail’s advocacy group is working on a study to better determine the spending that results from those visits and the branding campaigns that go along with such long-distance trail systems.

Jordan Bowman, a spokesman for the Appalachian Trail Conservancy, said it’s all tied to the draw of experiencing the American backcountry.

“It’s whatever adventure you want to make out of it,” he said. “So people can find a nice smooth section if they just need to get out for an afternoon or it can be a monthslong adventure where you walk out with a beard and this incredible story of how you survived a blizzard or whatever the case may be.”

In New Mexico, the Rio Grande Trail Commission last week approved an official logo, and a master plan is in the works.

While the official alignment has yet to be decided, this month’s expedition by volunteers with the Southern New Mexico Trail Alliance is aimed at scouting proposed segments and gathering as much data about water sources, camping spots, supply stops and not-to-be-missed scenery that could be incorporated.

“A lot of those little details we can’t pick up until we’re actually there on the ground walking it,” said Peter Livingstone with the alliance.

He has traveled more than 120 miles (190 kilometers) in five days. He expects the whole trip to take about a month.

A small solar panel sits on the top of his backpack, charging a collection of GPS and satellite communication devices that are tracking the journey.

Just in case

“I have a map and compass if all that fancy stuff fails,” Livingstone said.

The expedition so far has taken him along the volcanic ridge that makes up the Rio Grande Gorge near Taos. To the west, there are numerous homes dubbed earthships built out of recycled materials. Wheeler Peak — the highest in New Mexico — is visible to the east.

Livingstone also talked about petroglyphs, adobe churches, driving rain, hail and being greeted by locals with beans, rice and tacos.

“Life is a wonderful adventure, or it is nothing,” he said in a recent post.

The trek will end near Mount Cristo Rey, where the faithful make a religious pilgrimage each year. Steinborn plans to join the hikers there.

Close to 50 miles (80 kilometers) or more of trail already have been designated and there are another 100 miles (160 kilometers) or so being planned with the federal government and conservancy districts in the Middle Rio Grande, Steinborn said.

“There’s work to be done, but what an incredible start. It’s coming to life in front of our eyes,” he said. 

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US, UK Step Up Cooperation Against Female Genital Mutilation

Authorities in the U.S. and Britain are stepping up cooperation to tackle female genital mutilation, staging joint operations at airports in London, New York and elsewhere to raise awareness of an issue that affects millions of girls and women worldwide.

Police and border security agencies on both sides of the Atlantic have signed a new agreement to share intelligence about when and where victims may be taken for the procedure, known as FGM, and help identify perpetrators. 

In the past week, officials also targeted travel hubs including Heathrow, JKF airport and Eurostar stations, approaching people traveling from countries where the practice is common and encouraging them to report any concerns.

The mutilation of girls’ external genitals for non-medical reasons is practiced across Africa, the Middle East and Asia. It also affects immigrant communities in Europe and the U.S.

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