Day: November 7, 2018

Tech, Health Care Lead US Stock Surge After Midterms

Stocks rallied Wednesday as investors were relieved to see that the U.S. midterm elections went largely as they expected they would. Big-name technology and consumer and health care companies soared as the S&P 500 index closed at its highest level in four weeks.

Democrats won control of the House of Representatives while Republicans kept a majority in the Senate, as most polls had suggested. It’s not clear how the divided Congress will work with Republican President Donald Trump, but if the possibilities for compromise and big agenda items seem limited, Wall Street is fine with that because it means politics is that much less likely to crowd out the performance of the strong U.S. economy.

“The market likes when what it expects to happen happens,” said JJ Kinahan, chief markets strategist for TD Ameritrade. “We haven’t had that happen in a little while, when you think about major events like Brexit or the presidential election.”

The S&P 500 index climbed 58.44 points, or 2.1 percent, to 2,813.89. The index has risen six out of the last seven days to recover most of the losses it suffered in October.

The Dow Jones Industrial Average rose 545.29 points, or 2.1 percent, o 26,180.30. The Nasdaq composite climbed 194.79 points, or 2.6 percent, to 7,570.75. The Russell 2000 index of smaller-company stocks added 26.06 points, or 1.7 percent, to 1,582.16. Three-fourths of the stocks on the New York Stock Exchange traded higher.

Historically markets have performed well after midterm elections and with split control of Congress.

Stocks are off to a strong start in November, and the S&P 500 is up 3.8 percent so far this month. That follows a swoon in October that knocked the S&P 500 down nearly 7 percent as investors worried about rising interest rates and the U.S.-China trade dispute.

High-growth stocks took an especially brutal beating last month. Quincy Krosby, chief market strategist at Prudential Financial, said it will be worth watching to see if investors are willing to buy those stocks again or if they continue to prefer slower-growing, more “defensive” companies like utilities and household goods makers.

On Wednesday investors bet on growth. Amazon jumped 6.9 percent to $1,755.49 and Microsoft gained 3.9 percent to $111.96, while Google’s parent company, Alphabet, picked up 3.6 percent to $1,108.24.

Steady, “defensive” stocks lagged the rest of the stock market. Those companies, which include utilities and household goods makers, tend to do well when stocks are in turmoil, but they’re less appealing when investors are betting on economic growth.

Industrial companies made strong gains, but they didn’t do as well as the rest of the market. While some investors hope that Trump and Congressional leadership will pass an infrastructure stimulus bill, they’ve had those hopes dashed more than once since he took office.

It’s not clear how the elections will affect the Trump policy Wall Street might be most concerned about: the trade dispute with China. Trump has imposed taxes of up to 25 percent on $250 billion of Chinese imports and threatened additional tariffs on top of those. Beijing has responded with tariffs on $110 billion of American goods.

A primary concern in Asia is the potential for trade tensions to hobble growth for export-reliant economies.

Economists at S&P Global, Oxford Economics and the Bank of America all agreed that government gridlock will likely result from the Democrats winning control of the House. But they don’t think a stalemate will automatically hinder economic growth.

It’s more likely that government will play less of a role in spurring economic growth in 2019 and 2020. As a result, the health of the global economy, interest rates set by the Federal Reserve, and spending by U.S. consumers and companies will have a bigger impact on determining the pace of growth.

The Federal Reserve is also meeting Wednesday and Thursday. It’s not expected to raise interest rates this month, but investors believe it will do so in December.

Banks also didn’t rise as much other stocks. Republicans had discussed a new round of tax cuts if they maintained full control over Congress, which would have expanded the government’s deficits further and required it to issue more debt. Government bond yields spiked overnight after a batch of strong early results for some GOP candidates, but then headed lower as Democrats’ fortunes improved, making a new tax cut package unlikely.

Democrats’ victory in the House also means that Rep. Maxine Waters will likely become chairwoman of the House Financial Services Committee, which oversees the nation’s banking system and its regulators. Waters has called for more regulation of banks, and has been vocal about Trump political appointees moving to roll back regulations on banks and other financial services companies.

The yield on the 10-year Treasury note rose slightly, to 3.22 percent. It spiked as high as 3.25 percent Tuesday night.

The U.S. dollar also weakened. The ICE US dollar index fell 0.2 percent. The U.S. currency fell to 113.34 yen from 113.40 yen, and the euro climbed to $1.1455 from $1.1413.

Major indexes in Europe climbed. The French CAC 40 jumped 1.2 percent, while Britain’s FTSE 100 gained 1.1 percent. The DAX in Germany rose 0.8 percent.

October is historically a rough month for stocks, though markets usually rise after midterm elections regardless of how the political landscape may change because Wall Street is glad to have more certainty.

Democrats’ win in the House means Republicans won’t be able to take another shot at repealing the 2010 Affordable Care Act, which extended health insurance coverage to millions of Americans. Voters in Idaho and Nebraska all voted to expand Medicaid, and the winning gubernatorial candidates in Maine and Kansas also favor expanding Medicaid benefits. Voting on a Medicaid expansion proposition in Utah was too close to call.

Health insurers, hospital operators and Medicaid program operators all jumped. UnitedHealth gained 4.2 percent to $274.63 and hospital company HCA added 4.7 percent to $141.65. Molina, a provider of Medicaid-related services, surged 10.5 percent to $137.32.

Marijuana stocks jumped after Michigan voted to legalize recreational marijuana and Utah and Missouri voters approved medical marijuana measures. The stocks rose even further after the resignation of Attorney General Jeff Sessions, who promoted more aggressive enforcement of those laws. Tilray vaulted 30.6 percent to $139.60 and Canopy Growth rose 8.2 percent to $46.07.

Oil prices continued to fall. U.S. crude lost 0.9 percent to $61.67, and Brent crude, the standard for international oil prices, dipped 0.1 percent to $72.07 a barrel in London.

Wholesale gasoline lost 2.8 percent to $1.65 a gallon and heating oil rose 2.2 percent to $2.24 a gallon. Natural gas was unchanged at $3.56 per 1,000 cubic feet.

Gold rose 0.2 percent to $1,228.70 an ounce. Silver picked up 0.5 percent to $14.57 an ounce. Copper added 0.8 percent to $2.75 a pound.

In Asia, Japan’s benchmark Nikkei 225 fell 0.3 percent while South Korea’s Kospi slipped 0.5 percent. But Hong Kong’s Hang Seng edged 0.1 percent higher.

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Bullied Online? Speak Out, Says Britain’s Princess Beatrice 

Bullied herself online, Britain’s Princess Beatrice is determined to ensure other girls are equipped to deal with internet abuse and get the best from the digital world. 

Beatrice — who as the eldest daughter of Prince Andrew and his former wife, the Duchess of York, is eighth in line to the British throne — said her bullying, about her weight and her appearance, were very public and could not be ignored. 

But she said other girls faced this in private and needed to be encouraged to speak out and to know where to get support, which prompted her to get involved in campaigns against cyber bullying. 

A recent study by the U.S.-based Pew Research Center found about 60 percent of U.S. teens had been bullied or harassed online, with girls more likely to be the targets of online rumor-spreading or nonconsensual explicit messages. 

“You’d like to say don’t pay attention to it … but the best advice is to talk about it,” Beatrice, 30, told the Thomson Reuters Foundation during an interview on Wednesday at the Web Summit, Europe’s largest annual technology conference. 

“Being a young girl, but now being 30 and a woman working full time in technology, I feel very grateful for those experiences. But at that time it was very challenging.” 

Beatrice, who works at the U.S.-based software company Afiniti, co-founded the Big Change Charitable Trust with a group of friends, including two of Richard Branson’s children, in 2010 to support young people who also grew up in the public eye. 

Campaign

She also last year joined the anti-bullying campaign “Be Cool Be Nice” along with other celebrities such as Kendall Jenner and Cara Delevingne, which included a book. 

“There are lots of people who are ready to help and I want to make sure young people feel they have the places to go to talk about it,” said Beatrice, adding that teachers and parents also had a role to play. 

Beatrice said her bullying was so public that she could not hide from it, but her mother, Sarah Ferguson, was a great source of support. 

One of the most public attacks on the princess was at the 2011 wedding of her cousin Prince William when her fascinator sparked a barrage of media attention. A month later she auctioned the hat for charity for 81,000 pounds ($106,500). 

Her mother, who divorced Prince Andrew in 1996, had to get used to unrelenting ribbing by Britain’s royal-obsessed media. 

“She has been through a lot,” said Beatrice, whose younger sister, Eugenie, married at Windsor Castle last month. 

“When you see role models who are continually put in very challenging situations and can support you … [then] some of the tools that I have had from her I would like to share.” 

Beatrice said mobile technology should be a force for good for girls in developed and developing countries, presenting new opportunities in terms of education, careers and health. 

“Social media and the pressures that these young people now face is a new phenomenon … and if I can do more to give young people the tools [to cope], that is my mission,” she said. 

“I would say to young girls: You are not alone. Keep going.” 

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Global Stocks Gain Ground After US Midterm Elections

Global stocks were higher Wednesday after the outcome of the U.S. midterm elections met investors’ expectations.

Despite Democratic gains in the U.S. House of Representatives, few anticipate reversals of President Donald Trump’s tax cuts and the elimination of federal regulations.

Democrats captured more than the 23 seats needed to regain control of the House and Republicans extended their lead in the Senate.

Europe’s FTSE 100 Index moved 1 percent higher, to 7,117, and Asia’s Hang Seng Index climbed more than 3 percent, to 2,6147.

In afternoon trading in the U.S., the Standard and Poor’s 500 Index was nearly 1.5 percent higher, at 2,795, the Dow Jones Industrial Average gained more than 1.5 percent, to 2,629, and the NASDAQ 100 Index jumped more than 2.3 percent, to 7,150.

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FGM Rates Drop for African Girls but Teens Still at Risk 

Female genital mutilation has dropped drastically among African children this century, research shows, but campaigners said Wednesday that teenagers and young women remained at risk of the harmful practice. 

Known as FGM, female genital mutilation is a ritual that usually involves the partial or total removal of the external genitalia, including the clitoris.  

Cutting is a rite of passage in many societies, often with the aim of promoting chastity. It can cause chronic pain, menstrual problems, recurrent urinary tract infections, cysts and infertility. Some girls hemorrhage to death or die from infections. It can also cause fatal childbirth complications in later life. 

Analyzing data spanning more than 20 years, BMJ Global Health said in a study there was a “huge and significant decline” in FGM in children under 14 across Africa. 

East Africa had the biggest fall in its prevalence rates, dropping to 8 percent in 2016 from 71 percent in 1995, according to the BMJ study published Tuesday. 

In north Africa, prevalence rates fell to 14 percent in 2015 from nearly 60 percent in 1990, the report said; west Africa dropped to about 25 percent in 2017, from 74 percent in 1996. 

UNICEF, the U.N. children’s agency, estimates that 200 million women and girls globally have undergone FGM, with the highest prevalence in Africa and parts of the Middle East. 

More to the story 

Campaigners welcomed the drop but said FGM also affects teenagers and young women, demographic groups outside the study. 

“We are pleased to see that the numbers are coming down in a lot of countries,” said Emma Lightowlers, a spokeswoman for campaign group 28TooMany, which does research on FGM in Africa. “But it doesn’t tell the whole story and there are other groups where cutting takes place after the age of 14. It takes place in teenagers, or in fact, even in women in preparation for marriage,” she told the Thomson Reuters Foundation. 

Julia Lalla-Maharajh, founder of the Orchid Project, which campaigns against female genital cutting, agreed. 

“Growing efforts to end the practice are having an impact [but] girls in this group may still be cut when they get older,” she said in an email to the Thomson Reuters Foundation. 

Although girls under 14 are most at risk, research should include those aged 15 to 19, said British-based charity Forward, which supports FGM survivors from African communities. 

“This data should not make us complacent to say that all those girls are risk-free,” said Naana Otoo-Oyortey, head of Forward. “We need to work towards ensuring these girls are supported and protected from FGM.”

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Facebook: More than 100 Accounts Blocked Prior to US Midterms

Facebook says it has blocked more than 100 accounts with potential ties to a so-called Russian “troll farm” that may have sought to interfere with Tuesday’s U.S. midterm elections.

The social media giant said in a statement Wednesday that it had blocked the Facebook and Instagram accounts ahead of the vote. Facebook said it made the move after a tip from law enforcement officials.

Facebook’s head of cybersecurity, Nathaniel Gleicher, said in a statement that the accounts were blocked late Monday over suspicions they were “engaged in coordinated inauthentic behavior, which is banned from our services.” Among those accounts blocked were 85 Instagram accounts and 30 Facebook pages, most of which were in French or Russian languages. The Instagram accounts were mostly English-language, Facebook said.

Investigators say the accounts may be linked to a group known as the Internet Research Agency, which is based in St. Petersburg, Russia. In February, a federal grand jury indicted the group over allegations of interference in the 2016 U.S. presidential election.

Gleicher called the recent discovery “a timely reminder that these bad actors won’t give up — and why it is so important we work with the U.S. government and other technology companies to stay ahead.”

Before Gleicher’s statement, the Internet Research Agency said in a statement that it was responsible for the accounts, although that has not been verified.

In its statement, the organization said, “Citizens of the United States of America! Your intelligence agencies are powerless. Despite all their efforts, we have thousands of accounts registered on Facebook, Twitter, and Reddit spreading political propaganda.” The message was written in capital letters.

The statement also included a list of accounts to which the organization was supposedly attached.

In April, Facebook closed some 270 accounts linked to the Internet Research Agency. Facebook also recently banned 82 accounts linked to Iran, that were posting politically charged memes.

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Russia Says It Thwarted Drone Attacks at World Cup

Attempted drone attacks at this year’s World Cup in Russia were thwarted by government authorities, the head of the host country’s Federal Security Service said Wednesday.

Alexander Bortnikov said his officers “took measures to detect and foil attempts by terrorists to use drones during the preparation and hosting of various major political and sports events, most of all during the soccer World Cup.”

In comments reported by the Tass state news agency, Bortnikov didn’t say who the “terrorists” were or how they were stopped.

Separately, Interior Minister Vladimir Kolokoltsev told the Interfax news agency that seven “nationalist” hooligan gangs were stopped from attacking foreign fans. They had allegedly planned to target supporters from England, Senegal, Argentina and Poland.

Neither Bortnikov nor Kolokoltsev specified any court cases or convictions resulting from their agencies’ actions. In April, Russia said “extremists” and nationalist soccer hooligans had planned to attack World Cup events in the city of Samara but were foiled.

Russia used thousands of police and cutting-edge surveillance technology to guard the World Cup, including facial-recognition cameras, airport-style scanners and obligatory government-issue ID cards for anyone attending a game.

However, four Pussy Riot protesters managed to run onto the field during the final. They each served 15 days in jail for disrupting the event.

One of the protesters, Pyotr Verzilov, fell ill suddenly in September and was taken to Germany for treatment. Friends said he was poisoned, an explanation that German doctors considered “highly plausible,” though they couldn’t say who may have poisoned him or how.

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China Grants 18 Trademarks in 2 Months to Trump, Daughter Ivanka

The Chinese government granted 18 trademarks to companies linked to President Donald Trump and his daughter Ivanka Trump over the last two months, Chinese public records show, raising concerns about conflicts of interest in the White House.

In October, China’s Trademark Office granted provisional approval for 16 trademarks to Ivanka Trump Marks LLC, bringing to 34 the total number of marks China has greenlighted this year, according to the office’s online database. The new approvals cover Ivanka-branded fashion gear including sunglasses, handbags, shoes and jewelry, as well as beauty services and voting machines.

 

The approvals came three months after Ivanka Trump announced she was dissolving her namesake brand to focus on government work.

 

China also granted provisional approval for two “Trump” trademarks to DTTM Operations LLC, headquartered at Trump Tower on Fifth Avenue in New York. They cover branded restaurant, bar and hotel services, as well as clothing and shoes.

 

The marks will be finalized if there is no objection during a 90-day comment period.

 

All the trademarks were applied for in 2016.

 

“These trademarks were sought to broadly protect Ms. Trump’s name, and to prevent others from stealing her name and using it to sell their products,” Peter Mirijanian, a spokesman for Ivanka Trump’s ethics attorney, said in an email. “This is a common trademark practice, which is why the trademark applications were granted.”

 

Both the president and his daughter have substantial intellectual property holdings in China. Critics worry that China, where the courts and bureaucracy are designed to reflect the will of the ruling Communist Party, could exploit those valuable rights for political leverage.

 

There has also been concern that the Trump family’s global intellectual property portfolio lays the groundwork for the president and his daughter, who serves as a White House adviser, to profit from their global brands as soon as they leave office.

 

“Ivanka receives preliminary approval for these new Chinese trademarks while her father continues to wage a trade war with China. Since she has retained her foreign trademarks, the public will continue to have to ask whether President Trump has made foreign policy decisions in the interest of his and his family’s businesses,” wrote Citizens for Responsibility and Ethics in Washington, a government watchdog group that first published the news about Ivanka Trump brand’s new Chinese trademarks.

 

Lawyers for Donald Trump in Beijing declined to comment.

 

Companies register trademarks for a variety of reasons. They can be a sign of corporate ambition, but many companies also file defensively, particularly in China, where trademark squatting is rampant. Trademarks are classified by category and may include items that a brand does not intend to market. Some trademark lawyers also advise clients to register trademarks for merchandise made in China, even if it’s not sold there.

 

China has said it handles all trademark applications equally under the law.

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Facebook, Google Tools Reveal New Political Ad Tactics

Public databases that shine a light on online political ads – launched by Facebook and Google before Tuesday’s U.S. elections – offer the public the first broad view of how quickly the companies yank advertisements that break their rules.

The databases also provided campaigns unprecedented insight into opponents’ online marketing, enabling them to capitalize on weaknesses, political strategists told Reuters.

Facebook and Google, owned by Alphabet, introduced the databases this year to give details on some political ads bought on their services, a response to U.S. prosecutors’ allegations that Russian agents who deceptively interfered in the 2016 election purchased ads from the companies.

Russia denies the charges. American security experts said the Russians changed tactics this year.

Reuters found that Facebook and Google took down 436 ads from May through October related to 34 U.S. House of Representatives contests declared competitive last month by RealClearPolitics, which tracks political opinion polls.

Of the 258 removed ads with start and end dates, ads remained on Google an average of eight days and Facebook 15 days, according to data Reuters collected from the databases.

Based on ranges in the databases, the 436 ads were displayed up to 20.5 million times and cost up to $582,000, amounting to a fraction of the millions of dollars spent online in those races.

Asked for comment, Google said it is committed to bringing greater transparency to political ads. Facebook said the database is a way the company is held accountable, “even if it means our mistakes are on display.”

In some cases, the companies’ automated scans did not identify banned material such as hateful speech or images of poor quality before ads went live.

Ads that are OK when scanned may also become noncompliant if they link to a website that later breaks down.

Google’s database covers $54 million in spending by U.S. campaigns since May and Facebook $354 million, according to their databases.

Facebook’s figure is larger partly because its database includes ads not only from federal races but also for state contests, national issues and get-out-the-vote efforts.

The databases generally do not say why a particular ad was removed, and only Facebook shows copies of yanked ads.

The American Conservative Union political organization, which had 136 ads removed through Sunday on Facebook, said some commercials contained a brief shot of comedian Kathy Griffin holding a decapitated head meant to portray U.S. President Donald Trump.

Removing the bloody image resolved the violation for sensational content, and the organization said it had no qualms about Facebook’s screening.

Some removals were errors. The Environmental Defense Action Fund said Facebook’s automated review wrongly misclassified one of its ads as promoting tobacco.

Ryan Morgan, whose political consulting firm Veracity Media arranged attack ads for a U.S. House race in Iowa, said Google barred those mentioning “white supremacy” until his team could explain the ads advocated against the racist belief.

Five campaign strategists told Reuters they adjusted advertising tactics in recent weeks based on what the databases revealed about opponents’ spending on ads and which genders, age groups and states saw the messages.

Ohio digital consultant Kevin Bingle said his team reviewed opponents on Facebook’s database daily to take advantage of gaps in their strategy.

Morgan said his team tripled its online ad budget to $600,000 for a San Francisco affordable housing tax after Facebook’s database showed the other side’s ads were reaching non-Californians.

That political intelligence “let us know that digital was a place we could run up the score,” he said.

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Challenges Remain One Year After #MeToo

Since the start of the #MeToo Movement in late 2017, the hashtag has been used to demonstrate sexual abuse and harassment in the workplace around the globe. American actor Rose McGowan and South Korean poet Choi Young-me discuss the movement and the challenges that still remain. VOA’s Steve Miller reports from Seoul.

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VR Project Highlights Social Media Policing

Whether it’s Facebook, Instagram or Twitter, social media platforms have become the digital public squares where we convene. Police gather on these sites too, in order to prevent and investigate criminal activity. But the clues found within social media postings aren’t always conclusive. Tina Trinh explains.

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Floating Solar Panels Buoy Access to Clean Energy in Asia

When the worst floods in a century swept through India’s southern Kerala state in August, they killed more than 480 people and left behind more than $5 billion in damage.

But one thing survived unscathed: India’s first floating solar panels, on one of the country’s largest water reservoirs.

As India grapples with wilder weather, surging demand for power and a goal to nearly quintuple the use of solar energy in just four years, “we are very much excited about floating solar,” said Shailesh K. Mishra, director of power systems at the government Solar Energy Corporation of India.

India is planning new large-scale installations of the technology on hydropower reservoirs and other water bodies in Tamil Nadu, Jharkhand and Uttarakhand states, and in the Lakshadweep islands, he told the Thomson Reuters Foundation.

“The cost is coming almost to the same level as ground solar, and then it will go (forward) very fast,” he predicted.

As countries move to swiftly scale up solar power, to meet growing demand for energy and to try to curb climate change, floating solar panels – installed on reservoirs or along coastal areas – are fast gaining popularity, particularly in Asia, experts say.

The panels – now in place from China to the Maldives to Britain – get around some of the biggest problems facing traditional solar farms, particularly a lack of available land, said Oliver Knight, a senior energy specialist with the World Bank.

“The water body is already there – you don’t need to go out and find it,” he said in a telephone interview.

And siting solar arrays on water – most cover up to 10 percent of a reservoir – can cut evaporation as well, a significant benefit in water-short places, Knight said.

Pakistan’s new government, for instance, is talking about using floating solar panels on water reservoirs near Karachi and Hyderabad, both to provide much-needed power and to curb water losses as climate change brings hotter temperatures and more evaporation, he said.

Solar arrays on hydropower dams also can take advantage of existing power transmission lines, and excess solar can be used to pump water, effectively storing it as hydropower potential.

Big Potential

China currently has the most of the 1.1 gigawatts of floating solar generating capacity now installed, according to the World Bank.

But the technology’s potential is much bigger – about 400 gigawatts, or about as much generating capacity as all the solar photovoltaic panels installed in the world through 2017, the bank said.

“If you covered 1 percent of manmade water bodies, you’re already looking at 400 gigawatts,” Knight said. “That’s very significant.”

Growing use of the technology has raised fears that it could block sun into reservoirs, affecting wildlife and ecosystems, or that electrical systems might not stand up to a watery environment – particularly in salty coastal waters.

But backers say that while environmental concerns need to be better studied, the relatively small amount of surface area covered by the panels – at least at the moment – doesn’t appear to create significant problems.

“People worried what will happen to fish, to water quality,” said India’s Mishra. “Now all that attention has gone.”

What may be more challenging is keeping panels working – and free of colonizing sea creatures – in corrosively salty coastal installations, which account for a relatively small percentage of total projects so far, noted Thomas Reindl of the Solar Energy Research Institute of Singapore.

He said he expects the technology will draw more investment “when durability and reliability has been proven in real world installations.”

Currently floating solar arrays cost about 18 percent more than traditional solar photovoltaic arrays, Knight said – but that cost is often offset by other lower costs.

“In many places one has to pay for land, for resettlement of people or preparing and leveling land and building roads,” he said. With floating solar, “you avoid quite a bit of that.”

Solar panels used on water, which cools them, also can produce about 5 percent more electricity, he said.

Mishra said that while, in his view, India has sufficient land for traditional solar installations, much of it is in remote areas inhospitable to agriculture, including deserts.

Putting solar panels on water, by comparison, cuts transmission costs by moving power generation closer to the people who need the energy, he said.

He said India already makes the solar panels it needs, and is now setting up manufacturing for the floats and anchors needed for floating solar systems.

When that capacity is in place, “then the cost will automatically come down,” he predicted.

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Young Women Build Kyrgyzstan’s First Satellite 

Reaching for the stars will no longer be impossible for girls and young women in Kyrgyzstan, who aim to build and launch the country’s first satellite before 2020. 

A dozen budding female scientists have been tinkering with computers, 3-D printers and soldering irons since March to build a CubeSat, which U.S. space agency NASA describes as being the smallest and cheapest satellite used for space exploration. 

“I feel very proud that it’s going to be the first satellite of the country. I’m doing this program because I want to empower other girls,” student Kyzzhibek Batyrkanova, 23, said during a Skype interview from the capital, Bishkek. “Your gender doesn’t have to determine what you have to do in this life.” 

It is a rare path for any Kyrgyz, let alone a woman, given that nearly two-thirds of the people in the mountainous Central Asian country live in rural areas, and the economy relies on farming, according to the United Nations. 

Women make up less than 10 percent of Kyrgyzstan’s graduates in science, technology, engineering, math, construction and manufacturing graduates, the U.N. Development Program says. 

‘Not very common’

“Some girls don’t have the courage to pursue such studies because it’s not very common in our country, and the majority of parents discourage their daughters from pursuing this,” said Alina Anisimova, 19, who is leading the satellite project. 

“I wish that in the future, people will not consider it so surprising to see young women who do welding or who are involved in engineering,” said the computer programmer. 

She is one of the young women, aged 17 to 24, working on the project, which was started by Kloop Media, a local media group, after a chance meeting with senior NASA staff Alexander MacDonald, who suggested the ambitious idea. 

According to Kloop’s crowdfunding page for the project, the construction and launch of Kyrgyzstan’s first CubeSat will cost up to $150,000. The final stages of the build will be made in partnership with a Lithuanian company. 

“[Building a satellite] can serve as a powerful social and political signal,” MacDonald told the Thomson Reuters Foundation. He said it could send important messages about “who is able to participate and build the future.” 

Even though the number of women in STEM has increased in recent years, they still account for only about 30 percent of the world’s researchers, the U.N cultural agency UNESCO says. 

Marriage expected

 

Aidana Aidarbekova, a 19-year-old student participating in the project, said girls and women in her country are expected to marry instead of pursuing careers. 

“There are a lot of people who don’t believe that girls are capable of doing anything else but cleaning and cooking and giving birth to children,” said Aidarbekova. 

Nearly one in 10 girls in Kyrgyzstan is married off before age 18, according to global charity Girls Not Brides, even though bride kidnapping was outlawed in 2013. 

Aidarbekova said she hopes the space project will inspire girls in her country and beyond. 

“We are doing this program because we want to prove that girls can actually do it,” she said. “ … Maybe our project will give hope to girls all around the world.” 

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New Taiwan Performing Arts Center Billed as Largest in World

A sprawling complex of four theaters billed as the biggest performing arts center in the world has opened in southern Taiwan.

 

The National Kaohsiung Center for the Arts houses a 1,981-seat concert hall, a 2,236-seat opera house, a play house and a recital hall under a single roof covering 3.3 hectares (8.2 acres).

 

The opening season offers a range of artistic performances. The debut installation opera “Paradise Interrupted” is an international co-production with New York’s Lincoln Center Festival, the Spoleto Festival USA and the Singapore International Festival of Arts. The Berlin Philharmonic Orchestra under Gustavo Dudamel, who conducts in Taiwan for the first time, will perform in the venue’s vineyard-style concert hall.

 

Performers are seeing the new venue as an opportunity.

 

“Not many people can say that they have performed” at the new venue, said Chloe Young, a member of the Sydney Dance Company. She said it was an honor to be dancing there. “And I think it’s really gonna boost my career, saying I performed in Taiwan, in an amazing theater, amazing facility, and I feel super super lucky.”

The center, which opened last month, was built over eight years at a cost of NT$10.7 billion ($350 million) on the site of a former military barracks in Kaohsiung, a southern city of about 2.8 million people.

 

The design by Dutch architecture firm Mecanoo reflects the port city’s tropical location and maritime links. It includes an undulating white roof and a large public space with hoists and other cargo ship features.

 

“I think what is really unique is this roof, what was inspired by the banyan trees with the crown,” said Francine Houben, the creative director of Mecanoo. “I had to create a really new public space specifically for Taiwan, for Kaohsiung, that catches the wind of the ocean and the ventilation of the tropical space.”

 

The concert hall has the biggest pipe organ in Asia with 9,085 pipes. Built by a German manufacturer, its asymmetric design recalls bamboo.

 

“I have played many organs both in Taiwan and abroad, but this one is the biggest and the best,” said organist Liu Hsin-hung.

 

The center also includes an outdoor amphitheater.

 

He Wen-jhang, a 62-year-old retired physics and chemistry teacher who lives nearby, said he prefers to the art center to another real estate development.

 

“Coming here to exchange views greatly influences citizens’ temperament,” He said. “In the past, people only rushed to factories to make a living. But now, we have a place to relax and chat to each other. This has a big impact on Kaohsiung’s cultural aspect. A positive impact.”

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Michael Douglas Joins Dad Kirk with Star on Hollywood Walk of Fame

Michael Douglas celebrated his 50th year in show business on Tuesday with a star on the Hollywood Walk of Fame near that of his screen legend father, Kirk Douglas, now 101.

Douglas, 74, best known for his Oscar-winning turn as Gordon Gekko in “Wall Street,” was accompanied by his father – star of 1960 gladiator movie “Spartacus” – his actress wife Catherine Zeta-Jones and “The China Syndrome” co-star Jane Fonda.

“When I first heard Michael was getting a star I thought, ‘What took so long?’ Especially because he has always been ahead of his time,” Fonda said at a ceremony marking the occasion.

Douglas has appeared in more than 60 films and television shows, including 1970s police series “The Streets of San Francisco,” psychological thrillers “Fatal Attraction” and “Basic Instinct,” and more recently the Marvel comic book movie “Ant-Man.”

Fonda, daughter of Henry, said she and Douglas both faced the challenge of being born into Hollywood royalty and trying to find their own way in the same world.

“Both of our fathers were movie legends,” she said. “Can you imagine Michael heading out to go to an audition and Spartacus is sitting at the table?”

Douglas is also a film producer, winning an Oscar for the 1975 film “One Flew Over the Cuckoo’s Nest” and producing dozens of independent movies.

“I have been lucky enough to be part of classic Hollywood and new Hollywood,” he said.

He said he was honored to join the more than 2,600 men and women represented on the Walk of Fame: “They are people who passionately cared about what they did and about entertaining people around the world.”

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Ocean Shock: Fish Flee for Cooler Waters, Upending Lives in US South

This is part of “Ocean Shock,” a Reuters series exploring climate change’s impact on sea creatures and the people who depend on them.

Creedence Clearwater Revival’s “Fortunate Son” drifts from Karroll Tillett’s workshop, a wooden shed about half a mile from where he was born.

Tillett, known as “Frog” to everyone here, has lived most of his 75 years on the water, much of it chasing summer flounder. But the chasing got harder and harder, and now he spends his time making nets for other fishermen at his workshop, at the end of a dirt path next to his ex-wife’s house.

The house is on CB Daniels Sr. Road, one of several named after two of the fishing clans that have held sway for decades in this small coastal town. Besides CB Daniels Sr. Road, there’s ER Daniels Road and just plain Daniels Road. In Frog’s family, there’s Tink Tillett Road and Rondal Tillett Road.

Once upon a time, these fishing families were pioneers. In the 1970s and 1980s, they built summer flounder into a major catch for the region. The 15 brothers and sisters of the Daniels clan parlayed the business into a multinational fishing company, and three years ago they sold it to a Canadian outfit for tens of millions of dollars.

But for Frog Tillett and almost everyone else in these parts, there’s not much money to be made fishing offshore here anymore.

Forty years ago, Tillett fished for summer flounder in December and January in waters near Wanchese, then followed the fish north as the weather warmed. In recent years, however, fewer summer flounder have traveled as far south in the winter, and the most productive area has shifted north, closer to Martha’s Vineyard and the southern shore of Long Island.

Reuters has spent more than a year scouring decades of maritime temperature readings, fishery records and other little-used data to create a portrait of the planet’s hidden climate disruption — in the rarely explored depths of the seas that cover more than 70 percent of the Earth’s surface. The reporting has come to a disturbing conclusion: Marine life is facing an epic dislocation.

The U.S. North Atlantic is a prime example. In recent years, at least 85 percent of the nearly 70 federally tracked species there had shifted north or deeper, or both, when compared to the norm over the past half-century, according to the Reuters analysis of U.S. fisheries data. But this great migration is not just off the coast of America. Pushed out of their traditional habitats by the dramatically rising ocean temperatures and other fallout from climate change, summer flounder are part of a global disruption of marine species that threatens livelihoods, cultures and the delicate balance of the oceans themselves.

A mirror image of the flotillas of desperate people trying to escape deadly conflicts, this is a refugee crisis going on beneath the surface of the seas. And much of it has happened in the time it took a child to be born and graduate from high school.

Tillett, threading lead weights onto the bottom of a net, remembers the days of plenty up and down the Atlantic coast, catching summer flounder up north but knowing there were plenty more back home.

“Then, all of a sudden, everything starts moving that way, and nothing is left down here.”

‘There ain’t no flounder around here no more’

Few tourists traveling on Route 64 from the North Carolina mainland to the Hatteras beaches venture into Wanchese.

It isn’t even a town, officially. The U.S. Census Bureau, however, says 1,600 people live here, many of them in one-story cinder-block homes, not the big beach houses on stilts, known euphemistically as cottages, a few miles away.

Most mornings, Danielses and Tilletts and Etheridges, another of the fishing clans, crowd the restaurant down by the marina.

Longtime flounder skipper Steve Daniels pulls up. Steve bought his first trawler in 1978 and started flounder fishing that summer. That was the year Wanchese fishermen decided there was money in the fish. In 1977, they had caught zero pounds. In 1978, they caught 12 million pounds, and in 1979, their catch approached 17 million pounds. And that doesn’t count the millions of pounds they landed during the warmer months in Massachusetts, Rhode Island and New Jersey ports.

Over the years, however, the longer trips north needed to find the fish, among other factors, made the fishing increasingly unprofitable.

“There ain’t no flounder around here no more — they all up there in Rhode Island,” Steve says. “I got the hell out of it three years ago.”

In the early 1990s, summer flounder stocks were on the verge of collapse after being overfished in the 1970s and 1980s, primarily by Wanchese and other North Carolina fishermen.

Today, after years of severe limits on catches, the species is relatively healthy. Unfortunately for Wanchese, it has rebounded in an area well north of where the crews here started fishing for summer flounder.

But that hasn’t made a difference to arcane rules on summer flounder catches.

Nearly a quarter-century ago, when the fishermen of Wanchese were riding high, the U.S. government set quotas for summer flounder. It dictated that about a quarter of all the flounder caught in U.S. waters must be “landed,” or brought to shore, in North Carolina, no matter where they were caught.

Some modest changes being considered for next year could reduce North Carolina’s landings to one-fifth of the national total. But the very makeup of federal fishery-management bodies has stymied greater changes.

Summer flounder is managed by the Mid-Atlantic Fishery Management Council, one of three federally mandated councils that operate along the East Coast. Each council has about 20 members made up of fishermen, scientists, regulators, ecologists and a strong bloc of wholesale fish dealers. The councils’ size and the members’ competing interests make them slow to act. And often, the fishermen and especially the dealers are reluctant to shift an economic benefit from one region to another, as in the case of summer flounder, whose stock has shifted away from mid-Atlantic waters.

Kiley Dancy, a fishery management specialist with the mid-Atlantic council, says there has been much resistance to shifting the landings to states closer to where the fish are now located.

“Many would like for it to stay the same,” she says. The proposed changes, she says, “better reflect the location of the biomass” — that is, the area where the species is most likely to be found.

If adopted, the changes could take effect in late 2019 or early 2020.

In the meantime, summer flounder continue their inexorable move north. Is it, as with so many other species, because of the warming of the water?

“Absolutely. Looking at the data panorama, actually, I think this is fairly well established. I think that any intelligent conversation kind of starts with that just as a matter of fact,” says Joel Fodrie of the Department of Marine Sciences at the University of North Carolina.

Rutgers University fish ecologist Malin Pinsky has been studying how fisheries have shifted around the North Atlantic for the better part of a decade. It was his work, adapting federal trawler sampling dating to 1968, that first identified where the centers of various species were located and illustrated the wholesale shift of species north.

Pinsky is well aware that fish, which can swim wherever they want, live in complex ecosystems, and attributing those shifts simply to climate change would be oversimplifying matters.

Still, he says, his work shows that temperature change is almost certainly the single largest factor. In 2013, he published a research paper that calculated that 40 percent of the northerly shift was attributed to temperature change.

“Actually, that’s impressively high … that something as simple as temperature explained a lot of the pattern, given that there’s fishing, there’s predators, there’s prey, de-oxygenation, pollution and changing currents. There’s so much going on.”

In the case of flounder, the slow rebuilding of the stock has also resulted in a more mature population than the one that existed in the 1980s, according to trawling surveys conducted by the federal government. And older and larger summer flounder tend to live farther north than younger fish, says Fodrie, the UNC professor, who’s been working these waters for the better part of 20 years.

Regulators vs. fishermen

Among the Wanchese breakfast crowd, few names elicit a lengthier string of expletives than Louis Daniel, former executive director of the North Carolina Division of Marine Fisheries. Many fishermen feel he imposed overly strict management of the local catches when he was in charge.

Daniel, unrelated to the Daniels family, knows he is an unpopular man among commercial fishermen. “They think I wanted to put them out of business, that profit should always be put ahead of protecting the resource,” he says.

But, he says, there is little doubt that there are fewer fish in this region than there once were. And some species have clearly been affected by climate change in the region.

Consider striped bass, which he says is a perfect example of how climate change can dislocate fisheries management.

There was a time, not too long ago, when recreational anglers routinely caught striped bass along the beaches in North Carolina. But since the beginning of the century, the number of striped bass has steadily declined.

“North Carolina has not caught any striped bass in five or six years or more,” he says. “There has been nothing on the beach.”

They are, however, routinely found in Canadian waters, which was unheard of a generation ago.

In early 2010, a small population of the fish was still wintering off the Carolina coast. Steve Daniels took his trawler three miles offshore into federal waters. Over a 10-day period, he illegally caught about 12,000 pounds of striped bass, landing the fish here in Wanchese, according to the United States Attorney’s Office.

Last August, Steve pleaded guilty to the charges and agreed to pay $95,000 in restitution. He was sentenced to five years’ probation.

Gambles pay off

Through the years, the families in Wanchese haven’t been afraid to gamble on a hunch.

Mikey Daniels was in high school when a local named Willie Etheridge Jr. decided to make a go at longlining for swordfish.

“That was ’63, ’64,” he says. “We were stacking them up like cordwood. I mean, three or four hundred fish in a stack, and they did it by hand.”

On Dec. 23, 1970, however, the Food and Drug Administration announced that tests showed that swordfish flesh was tainted with extremely high levels of mercury, a toxic metal. And overnight, the swordfish boom went bust.

It took a few years, but Wanchese’s entrepreneurial fishermen got to work on summer flounder. This time it was Mikey’s father, Malcolm Daniels, who took the lead, after struggling for years. At one point, Mikey remembers, his father was so poor there was a collection in town to raise money to help the family.

Eventually, though, his father bought a 65-foot wooden boat that he converted into a trawler that could drag large nets behind it. And before long, he was buying metal shrimp boats from Texas and converting them to trawlers too.

The family also added a trucking company to drive fish to New York and Boston.

“I was 16 years old driving tractor-trailers. My brothers were too,” he says. “We would get to New York, traveling in a group, you know.

The Daniels siblings took over the Wanchese Seafood Company when their father died in 1986. By the time their mother died in 2006, the family had expanded into boats and seafood wholesalers in Virginia, Massachusetts, Alaska and Argentina. When they sold up, they all became millionaires — a rarity in Wanchese.

The Wanchese fishermen fought hard for their place in the flounder business, but they started fading this decade.

In 2013, fishermen from North Carolina accounted for 64 percent of the summer flounder landed in the state, down from 80 percent just a few years earlier.

By 2016, it was less than half. Fishermen from New Jersey and Massachusetts accounted for 35 percent that year, up from nothing a decade earlier.

A winner in New England

On a cold December day hundreds of miles north of Wanchese, snow whips through the New Bedford, Mass., fishing fleet. The wind howls and bangs through the rigging of the boats docked two or three deep along the city’s working piers.

Most of the boats are dark. But the Sao Paulo’s wheelhouse glows orange. Inside, skipper Antonio Borges is preparing to leave as soon as the weather breaks.

The 60-year-old has just returned from 11 days at sea. It could have been a three-day trip if he were allowed to land his catch in Massachusetts, but the law prohibits that.

Instead, he left New Bedford and steamed less than a day before reaching the waters south of Long Island. He dragged his nets in about 50 fathoms of water and filled his hold with summer flounder. Then he turned south for a couple of days to offload some fish in Virginia. Two days after that, he offloaded flounder at the Beaufort, N.C., docks, before turning around and heading home.

A day after tying up in New Bedford, he’s back on the boat getting ready to go to sea.

Borges is fortunate that he can even catch the summer flounder: He bought landing permits from North Carolina and Virginia fishermen. In a perfect world, he says, Massachusetts and other New England and mid-Atlantic states would have a bigger quota.

Still, Borges says he doesn’t mind. He owns a boat large enough to make those trips, even in the foulest of winter weather. And besides, he’s invested in the status quo — he paid for one of those landing permits.

So, even though his time on the seas would be much shorter, he said the distributions of landings shouldn’t change. “It’s not going to happen, and it shouldn’t happen,” he says. “Because the states that we bought the license from, we already knew that we had to go to those states and deliver the fish.”

Traveling the distance from the Northeast to North Carolina benefits fishermen like Borges in bigger boats. At 75 feet and specifically designed for fishing on the high seas, his would loom over many of the flounder trawlers that steamed out of Wanchese in the 1980s.

Plus, he says, the Wanchese fishermen established the business and the North Carolina economy is entitled to benefit from that work, even if it’s no longer feasible for the fishermen to work the waters as much as they once did, he said.

“We go to North Carolina, we bring jobs,” he says. “Wherever we go, we bring business: lumpers to unload the fish, truckers to truck the fish, fuel, food. The economy grows wherever a fishing boat goes. It brings business, and we shouldn’t change that.”

Outside, the snow turns the docks and the decks white. The Portuguese immigrant shrugs.

“Look, it is 21 degrees today. Oh my God, it’s cold. You know what? This harbor used to freeze every single winter. It would freeze for weeks on end.”

Now it doesn’t.

Borges was 18 when his father took delivery of the Sao Paulo in 1977 from a Louisiana shipyard.

Since then, he has married and had two daughters. They married and had three daughters. Now, at the tail end of his career, he reflects on what has changed.

“Forty-two years I have been doing this, 60 years old, and I still love it.”

The most notable change, he says, is that fishermen are no longer the biggest threat to fisheries.

“We were the problem, in the ’70s and ’80s. We grew so much that we became a problem, and if the laws didn’t change, yeah, we were going to catch the last fish, I guarantee you we were.

“But you know what? We’re not the problem now. Climate change is the problem now. It is climate; it is water temperature. There are southern species that are coming north, and the species that were here have moved north.”

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Elton John Remembers Aretha Franklin at His Annual AIDS Gala

Elton John said he stood by the stage and sobbed at his foundation’s gala last year as Aretha Franklin made her final public performance.

“I was shocked to see how thin she was, and she just smiled her sweet smile at me and said, ‘I didn’t want to let you down,”‘ he told The Associated Press on the red carpet Monday night at this year’s party.

John said Franklin “gave us one of the greatest performances of our lifetime.” She died in August at age 76.

From the podium, John also acknowledged Tony Bennett, who was in the audience, as another inspirational singer.

“Artists like that don’t come around that often. They are dying out, and it’s such a shame because there’s no one to replace them,” the 71-year-old John told the crowd.

The gala raised $3.9 million for the Elton John AIDS Foundation, which was launched in 1992.

While the organization has been a leader in the fight against AIDS, the theme of the night at a grand Midtown ballroom was civility toward one another. John said he’s worried about America because “we live in perilous times.” He called on Americans to help all people feel like they belong.

“There should be no difference between the color of your skin, the religion you choose or your political party. We have to come together and embrace each other,” John said.

From the red carpet, John said civility has gone off the rails over the past couple of years. He’s especially disturbed by attacks on the transgender community.

“That doesn’t sit very well with me. Because people should have any right they want. People who want to be transgender should have their own rights,” John said.

David Furnish, John’s husband, drew a similarity to the discrimination in the early day of the AIDS epidemic.

“We like everybody to be treated with kindness and compassion,” he said. “You have to bring everybody along for the ride.”

John’s global humanitarian efforts help raise money for innovative AIDS prevention programs and campaigns to end stigma, as well as providing treatment, care and support services for people living with the disease. He’s proud of the organization’s humble beginnings.

“We started off on the kitchen table in Atlanta, and we’ve grown to where we are today. We’ve raised over $430 million worldwide. We’ve been responsible with matching funds worldwide over a billion dollars. That’s pretty amazing for a small organization like us. And we’ve survived,” John said from the carpet.

“Our motto is, no one gets left behind,” he said. “If you leave people behind, you’re never gonna win.”

The evening was hosted by CBS This Morning co-host Gayle King. Bryan Stevenson, founder and executive director of the Equal Justice Initiative, was the guest speaker. He made a passionate plea to reach out to people in places you have traditionally avoided.

The evening’s honorees included the Ford Foundation’s Darren Walker, Joe McMillan of the real estate investment firm DDG, and philanthropist Patricia Hearst. The granddaughter of publishing magnate William Randolph Hearst, she is known for the events following her 1974 kidnapping by the terrorist group the Symbionese Liberation Army. Hearst spoke briefly on the red carpet.

“This is really the only organization that right now I would do this for. Because I do prefer to just be behind the scenes. This isn’t a big ego moment for me. This is something very special, and that’s why I agreed to be honored,” Hearst said.

The night closed with a performance by Sheryl Crow.

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Brazil Economy Key to Bolsonaro Win, But Will He Deliver?

Key to Jair Bolsonaro’s recent election victory was the support of Brazil’s business community, which coalesced around him because he promised to overhaul Latin America’s largest economy and address its worrying budget deficit. But the president-elect has been stingy with the details, and many wonder if he’ll stick to his recent conversion to market-friendly reforms or if the dormant nationalist in him might reappear.

 

Even if he holds fast to the agenda set forth by his economic guru Paulo Guedes, a University of Chicago-trained economist and the man who convinced many investors to take a chance on Bolsonaro, the former army captain could face fierce opposition in Congress and from labor unions to what will be undoubtedly unpopular measures. His economic agenda will also have to compete for priority with his better-known promises to crack down on crime and corruption, and the latter are much dearer to his heart — and his base.

 

“It’s really unclear what Bolsonaro is when it comes to economic policy,” said Matthew Taylor, an associate professor at American University’s School of International Service. “He himself has admitted to ignorance on the economic front, but he’s also an extraordinary statist and a nationalist.”

 

For years, Bolsonaro, who will be inaugurated Jan. 1, supported heavy involvement of the state in the economy, and he remains an admirer of Brazil’s 1964-1985 military regime, which supported nationalist policies. But during the campaign, he espoused free-market principles.

 

It’s not clear how complete his conversion is. For instance, after Guedes told reporters that he supported privatizing all of Brazil’s dozens of state companies, Bolsonaro walked that back, saying he would sell off many but keep “strategic” ones, including big names like Petrobras and Banco do Brasil.

 

Amid this swirl of doubt, one thing is clear: Brazil must quickly cut its deficit or it risks heading back into crisis. A World Bank analysis concluded last year that Brazil spends more than it can afford and spends poorly.

 

Brazil’s central government deficit was 7 percent of gross domestic product in 2017, according to the Central Bank, and has been above 5 percent in recent years. A large portion is interest payments on debt, but even excluding those, Brazil still had a primary deficit of 1.8 percent of GDP last year — which economists say is unsustainable because it means the already high debt level will continue to grow.

 

The new administration will have only a narrow window to show investors that it’s serious about addressing this problem — by cutting spending or raising taxes — before they will begin to balk, making an adjustment more difficult because it could drive up borrowing costs.

 

Compounding the challenge, Brazil is only just beginning to emerge from a two-year-long recession, and growth remains stagnant. That means it can’t rely on big increases in tax revenues to help it plug the hole — and Bolsonaro has even promised to cut tax rates.

Guedes, who will lead the Economy Ministry, appeared to be sending just that signal hours after Bolsonaro’s victory on Oct. 28. He laid out a three-part plan to reduce Brazil’s public spending by passing a pension reform, privatizing state companies to draw down the debt and enacting other unspecified reforms that will reduce “privileges and waste.”

 

Pension reform will be the linchpin in reducing Brazil’s state spending for two reasons: Brazil’s government spends more on pensions than anything else, and many other parts of the budget can’t be altered because they’re mandated by the constitution.

 

Attempts to reform the pension system will likely face stiff resistance from labor unions and other groups since any measure will force Brazilians to work longer and receive fewer benefits. Bolsonaro, who in 27 years in Congress didn’t show any particular gift for building consensus, will have to build a broad coalition to get a reform through. His Social Liberal Party holds about 10 percent of the seats in next Congress, but so does the Workers’ Party, which is against such a reform and has vowed tough opposition.

President Michel Temer, who is known for his ability to negotiate with Congress, failed at that task. Still, Glauco Legat, the chief analyst at the brokerage Spinelli, points out that Bolsonaro’s decisive win gives him more legitimacy than Temer, who came to power after his predecessor was impeached in controversial proceedings.

 

Any reform will be whittled away at in order to win votes, but Monica de Bolle, director of Latin American Studies at Johns Hopkins University, says she fears Bolsonaro’s proposal will lack ambition right out of the gate since he has indicated he will leave military personnel out of it. That could also mean he will exclude other civil service sectors, which are key to taking a bite out of the problem.

 

“The watering down process is going to take place on the basis of an already diluted reform,” she said.

 

Beyond pension reform, Bolsonaro has promised to reduce the size of the state, including halving the number of ministries, and selling off state companies. Reducing the number of ministries could yield some savings, but other presidents have struggled to do that in more than name. And Bolsonaro has already taken off the table many state companies that would yield the most cash.

 

Instead, economists say that many of the savings lie in eliminating inefficiencies. Guedes didn’t give details, but if he’s serious about reducing waste, there’s plenty of it: The World Bank analysis highlighted Brazil’s high civil service salaries, a constitutional mandate on education spending that often results in spending for spending’s sake, overlapping social welfare programs and a proliferation of small hospitals in the public health system.

 

Despite the challenges, Legat said it’s important to remember that just by virtue of saying he’ll take on Brazil’s thorny issues, Bolsonaro has built momentum, which can have real-world effects.

 

“He brings optimism that’s very important for the economy in this moment,” he said. “This increase in confidence is reflected in real numbers.”

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Pompeo Allows Sanctions Exception for Iran Port Development

The top U.S. diplomat has granted an exception to certain U.S. sanctions that will allow the India-led development of a port in Iran as part of a new transportation corridor designed to boost Afghanistan’s economy, a State Department spokesman said Tuesday.

The exception granted by Secretary of State Mike Pompeo to U.S. sanctions reimposed on Iran on Monday also will permit the construction of a railway line from Chabahar port to Afghanistan, and for shipments to the war-torn country of non-sanctionable goods, like food and medicines, the spokesman said.

In addition, Afghanistan will be allowed to continue importing Iranian petroleum products, the spokesman said.

“These activities are vital for the ongoing support of Afghanistan’s growth and humanitarian relief,” the spokesman said in a statement emailed to Reuters.

The sanctions reimposed on Iran’s oil exports — its main revenue source — and financial sector were triggered by U.S. President Donald Trump’s May 8 decision to abandon the 2015 international deal designed to block Tehran’s development of nuclear weapons.

Trump denounced the deal, which lifted sanctions on Iran in return for limits on its nuclear program. He argued that it would not prevent Tehran from developing weapons and failed to address other activities, such as its ballistic missile program and support for extremist groups.

The sanctions, however, threatened India’s ability to obtain financing for the development of Chabahar, which could potentially open the way for millions of dollars of trade for land-locked Afghanistan and end its dependence on Pakistan’s port of Karachi.

Building Afghanistan’s economy also could reduce Kabul’s dependence on foreign aid and put a major dent in the illicit opium trade, the main revenue source of the Taliban insurgency.

The sanctions exception granted to the Chabahar project aims to further U.S. ties with Afghanistan and India “as we execute a policy of maximum pressure to change the Iranian regime’s destabilizing policies in the region and beyond,” the State Department spokesman said.

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