Day: January 17, 2019

WSJ: US Treasury Secretary Mnuchin Weighs Lifting Tariffs on China

U.S. Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for Jan. 30, the Wall Street Journal reported Thursday, citing people familiar with the internal deliberations.

But Trade Representative Robert Lighthizer has resisted the idea, and the proposal had not yet been introduced to President Donald Trump, according to the Journal.

U.S. stocks advanced on the news even as a Treasury spokesman working with the administration’s trade team denied the report.

“Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China,” the spokesman said.

“This an ongoing process with the Chinese that is nowhere near completion.”

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31 for the latest round of trade talks aimed at resolving a bitter trade dispute between the world’s two largest economies.

In December, Washington and Beijing agreed to a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods.

Mid-level U.S. and Chinese officials met in Beijing last week to discuss China’s offers to address U.S. complaints about intellectual property theft and increase purchases of U.S. goods and services.

Lighthizer did not see any progress made on structural issues during those talks, Republican U.S. Senator Chuck Grassley said earlier this week.

The Trump administration is scheduled to increase tariffs March 2 on $200 billion worth of Chinese goods to 25 percent from 10 percent.

The timeline is seen as ambitious, but the resumption of face-to-face negotiations has bolstered hopes of a deal.

China has repeatedly played down complaints about intellectual property abuses, and has rejected accusations that foreign companies face forced technology transfers.

Industrial stocks, which have been sensitive to trade developments, jumped 1.4 percent after the Wall Street Journal report.

more

Professor Offers Students Higher Grade for More Sleep

No amount of lecturing seems to persuade students to get more sleep.

But one professor uses bait they can’t resist.

Michael Scullin teaches the science of sleep to psychology students at Baylor University in Waco, Texas.  He lectures about physical and mental health problems caused by a lack of sleep. Those problems include difficulty focusing and controlling one’s emotions, and increased risk of disease.

“When you are at your most sleep deprived is when you are least likely to be able to judge how sleepy you are, and how much that sleepiness is impacting you,” Scullin says.

The U.S. Centers for Disease Control and Prevention advises adults to get at least seven hours of sleep a night to stay healthy, but more and more Americans report getting fewer than six hours of sleep per night.

His students seemed to enjoy the class, Scullin says. But when he asked if they were getting more sleep after what they learned in class, most of them said no.

So Scullin came up with a plan to get his students to sleep more: He offered them extra points on their final exam, the most important test in the class.

The plan worked better than Scullin expected. Students who slept more performed better in two different classes, and Scullin published his findings in two academic publications last November.

​How did the study work?

Scullin started the experiment with his psychology students. He told them that if they agreed to sleep at least eight hours a night for the five nights before the final exam, they would get several extra credit points. But if they agreed to take part in the study and failed to get the required amount of sleep, they would lose points on the exam. The students would wear special devices that recorded their sleep data.

Only eight out of the 18 total students in that first group agreed to take part in the experiment. Yet all the students who took part performed better on the exam than those who did not, even before the extra credit points were added. On average, they earned about five points more on the exam.

Scullin decided to repeat the study with another group of 16 design students. He chose not to punish students who failed to sleep the full eight hours per night, and got the same results.

Daniel Bessesen, as associate director of the Anschutz Health and Wellness Center at the University of Colorado, researches sleep. He says Scullin’s study supports the idea that sleep helps academic performance while students who cram — or stay up the night before the test trying to memorize the material — are likely worse off.

While Scullin’s study fits in with other sleep research, Bessesen says for it to be more scientific, the two groups should have been studying the same subject and taking the same test. In addition, students should have been randomly chosen for sleeping or staying awake.

How to get people to sleep more

Scullin and Bessesen offer some advice on how to get more sleep each night:     

Parents, try to get enough sleep to role model good habits to children. Bessesen notes that some medical school programs require student doctors to sleep more to prevent accidents.
Avoid looking at electronics before you fall asleep.
Don't consume caffeinated drinks less than six hours before you go to sleep.
Try to go to sleep at the same time every night.
If you are lying in bed and cannot calm your mind, get out of bed and spend five to 10 minutes writing down all of your thoughts.
If you wake up in the middle of the night and cannot fall back asleep, do not turn on the lights!  Instead, get out of bed and go into another room. Wait there until you feel tired.

more

Indonesian Presidential Candidates Spar Over Corruption

Indonesian President Joko Widodo has accused his election rival of allowing corrupt candidates on his legislative ticket and failing to include women in senior positions.

Widodo and former General Prabowo Subianto, along with their running mates, faced off Thursday in the first of five debates before the April 17 election. The debate focused on terrorism, human rights, corruption, and law and order.

Opinion polls show Widodo commanding 52 percent to 54 percent popular support and Subianto 30 percent to 35 percent. About 10 percent of voters are undecided and another 15 percent are considered swing voters, meaning the race has the potential to tighten.

Subianto, making his second bid for president after being narrowly defeated by Widodo in 2014, waffled when asked why his party has the highest number of candidates with corruption records.

“Maybe the corruption they did was not huge, maybe he or she just, what I mean is, the theft was indeed wrong, but the most important thing to be eradicated was a corrupter who stole trillions of rupiah (hundreds of millions of dollars) of state money, of people’s money,” he said.

Questioning Subianto’s opening statement of a commitment to empowering women, Widodo said he has nine women in important Cabinet positions but there are few women in the leadership of Subianto’s Gerindra party.

Subianto said his party has many female candidates and criticized the quality of decision making by Widodo’s women ministers.

Widodo, the first Indonesian president from outside the country’s Jakarta elite, has made upgrading Indonesia’s infrastructure the signature policy of his five year-term.

In debating human rights, none of the candidates addressed Subianto’s involvement in human rights abuses during the dictator Suharto’s regime that ended two decades ago.

 

 

more

Tunisia Hit by General Strike, Amid Economic Tensions

Workers around Tunisia went on strike Thursday to demand higher pay in a standoff with a government struggling to reduce unemployment, poverty and social tensions.

All flights in and out of the North African country’s main airport were cancelled, and schools nationwide were closed. Ports, public transport, hospitals and other public services were also disrupted.

 

Marathon last-minute negotiations between the government and union umbrella group UGTT failed to avert Thursday’s strike by public sector workers.

 

Thousands of people gathered at the national union headquarters in Tunis and marched through the capital’s main thoroughfare, carrying signs reading “Get Out!” and “The People Want the Fall of the Regime.” Rallies were also held in other cities.

 

Addressing the crowd in Tunis, the head of the UGTT, Noureddine Tabboubi, accused the government of “neglecting the workers” as runaway inflation has eroded purchasing power.

 

The International Monetary Fund has urged public sector salary freezes and other reforms in exchanges for loans to Tunisia’s struggling economy.

 

The union boss accused the government of being afraid to “move a little finger without the green light” of the IMF. Unions want an end to salary freezes for Tunisia’s 600,000 public sector workers.

 

President Beji Caid Essebsi has called for calm. Thursday’s strike comes after new tensions erupted last month when a journalist set himself on fire to protest unfulfilled promises of Tunisia’s 2011 Arab Spring revolution.

 

Similar rallies were held throughout the country, notably in southern provinces where the strike nearly paralyzed public services.

 

Prime Minister Youssef Chahed warned that the strike would result in a “considerable cost” to an already fragile economy and might push the government to seek further foreign loans with tough conditions.

 

Speaking on public television Wataniya 1 on Wednesday night, Chahed said, “We did everything possible to avoid the strike in presenting proposals that improve purchasing power while at the same time taking into account the country’s capabilities.”

 

He invited the unions back to the negotiating table after Thursday’s strike.

 

 

 

more

Chinese Trade Negotiator to Visit US in Late January

China’s economic czar, Vice Premier Liu He, will travel to the United States later this month for the second round of negotiations aimed at resolving the ongoing trade war between the global economic giants.

Commerce Ministry spokesman Gao Feng told reporters in Beijing Thursday that Liu will visit Washington on January 30-31. He was invited by U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.

U.S. negotiators were optimistic after the first round of talks in Beijing last week that the two sides would be able to resolve tariff disputes that have upset global markets.

The trade talks are the result of an agreement last month between President Trump and Chinese President Xi Jinping to stop the tit-for-tat tariff conflict between the two countries for 90 days starting on New Year’s Day.

The United States has long complained about access to the vast Chinese market and Beijing’s demands U.S. companies reveal their technology advances.

If no deal is reached by March 2, U.S. tariffs on $200 billion Chinese goods will rise from 10 percent to 25 percent.

more

Want to Buy Ethical Food? Scan with Your Phone for Fast Facts

Whether buying a fish fillet at a supermarket or ordering steak in a restaurant, consumers will soon be able to use their phones to check instantly whether their food is green and ethical. Launched by environmental group WWF and investment firm BCG Digital Ventures, OpenSC is a website that harnesses blockchain technology to allow users to scan a QR code on a product or menu that reveals the full history and supply chain before they buy.

“For those catching and producing things in a very unsustainable way, it’s quite easy for them to hide behind the complexity of supply chains,” said Paul Hunyor, Asia region head at BCG Digital Ventures in Sydney.

“There is a lack of carrots for those doing good at the production end because it is very hard for them to make the end consumer aware of all the good work they’re doing,” he told the Thomson Reuters Foundation.

Globally, consumers and retailers are demanding more information about what they procure, buy and eat, to ascertain that its production and transportation does not damage the environment, or use illegal and unethical business practices. In response, large consumer goods companies, restaurants and other businesses are looking at ways to attract more customers by offering sustainable products that are guaranteed as free of deforestation or slave labor, for example.

The OpenSC platform, conceived in 2017 when WWF was piloting a tuna fisheries traceability project in the Pacific Ocean, will initially focus on fish and beef. It plans to expand in the next two years to cover other commodities like palm oil and timber. OpenSC allows consumers to cut through the complexity and lack of transparency in supply chains, said Hunyor. The digital tool will cover environmental, social and human rights, and hopes to attract sustainability bodies and schemes, as well as corporations and major commodities producers, said Dermot O’Gorman, CEO of WWF-Australia.

“There is … growing momentum around the world with corporates who are doing and want to do the right thing because their customers are increasing demand,” he said. Austral Fisheries, which is part of the Maruha Nichiro Group, has committed to implement OpenSC this year across its fleet which catches Patagonian toothfish. Customers and staff of supermarkets and restaurants, as well as wholesalers, can use the tool to access instant information.

For fish, that would include where it was caught, if the area is a verified sustainable fishing zone, and conditions along the supply chain. Fish tracked by OpenSC, set up as a social enterprise, will be served at a dinner for world leaders at the World Economic Forum in Davos next week.

more

John Bogle, Founder of Vanguard, Dies at 89 

John C. Bogle, who simplified investing for the masses by launching the first index mutual fund and founded Vanguard Group, died Wednesday, the company said. He was 89.

Bogle did not invent the index fund, but he expanded access to no-frills, low-cost investing in 1976 when Vanguard introduced the first index fund for individual investors, rather than institutional clients.

The emergence of funds that passively tracked market indexes, like the Standard & Poor’s 500, enabled investors to avoid the higher fees charged by professional fund managers who frequently fail to beat the market. More often than not, the higher operating expenses that fund managers pass on to their shareholders cancel out any edge they may achieve through expert stock-picking.

Mutual fund industry critic

Bogle and Vanguard shook up the industry further in 1977. The company ended its reliance on outside brokers and instead began directly marketing its funds to investors without charging upfront fees known as sales loads.

Bogle served as Vanguard’s chairman and CEO from its 1974 founding until 1996.

He stepped down as senior chairman in 2000, but remained a critic of the fund industry and Wall Street, writing books, delivering speeches and running the Bogle Financial Markets Research Center.

The advent of index funds accelerated a long-term decline in fund fees and fostered greater competition in the industry. Investors paid 40 percent less in fees for each dollar invested in stock mutual funds during 2017 than they did at the start of the millennium, for example. But Bogle continued to maintain that many funds were overcharging investors, and once called the industry “the poster-boy for one of the most baneful chapters in the modern history of capitalism.”

Bogle also believed that the corporate structure of most fund companies poses an inherent conflict of interest, because a public fund company could put the interests of investors in its stock ahead of those owning shares of its mutual funds. Vanguard has a unique corporate structure in which its mutual funds and fund shareholders are the corporation’s “owners.” Profits are plowed back into the company’s operations, and used to reduce fees.

$5 trillion under management

Vanguard, based in Valley Forge, Pennsylvania, manages $5 trillion globally. It helped usher in a new era of investing, and index funds have increasingly become the default choice for investors. In 2017, investors plugged $691.6 billion into index funds while pulling $7 billion out of actively managed funds, according to Morningstar.

Vanguard offers both index and managed funds, but remains best-known for its index offerings. Vanguard’s original index fund, now known as the Vanguard 500 Index, is no longer the company’s biggest, but remains among the company’s lowest-cost funds.

Bogle spent the first part of his career at Wellington Management Co., a mutual fund company, then based in Philadelphia. He rose through the ranks and, in his mid-30s, was tapped to run Wellington.

He engineered a merger with a boutique firm that was making huge sums, but was ousted after the stock market tanked in the early 1970s, wiping out millions in Wellington’s assets. He said he learned an important lesson in how little money managers really know about predicting the market.

Knack for math

Bogle suffered several heart attacks and underwent a heart transplant in 1996, the year he stepped down as CEO. He reached the mandatory retirement age of 70 for Vanguard directors in 1999 and left as senior chairman the next year.

Vanguard did not provide a cause of death. Philly.com is reporting he died of cancer, citing Bogle’s family.

John Clifton Bogle was born in May 1929 in Montclair, New Jersey, to a well-off family; his grandfather founded a brick company and was co-founder of the American Can Co. in which his father worked.

Bogle attended Manasquan High School in Manasquan, N.J, for a time, then got a scholarship to the prestigious all-boys Blair Academy in Blairstown, New Jersey. It was at Blair that Bogle discovered his knack for math. He graduated from Blair in 1947 and was voted most likely to succeed.

Bogle graduated from Princeton with a degree in economics in 1951. His thesis was on the mutual fund industry, which was then still in its infancy.

Bogle is survived by his wife, Eve, six children, 12 grandchildren and six great-grandchildren.

more

Study: Human Diet Causing ‘Catastrophic’ Damage to Planet

The way humanity produces and eats food must radically change to avoid millions of deaths and “catastrophic” damage to the planet, according to a landmark study published Thursday. 

The key to both goals is a dramatic shift in the global diet — roughly half as much sugar and red meat, and twice as many vegetables, fruits and nuts — a consortium of three dozen researchers concluded in The Lancet, a medical journal. 

 

“We are in a catastrophic situation,” co-author Tim Lang, a professor at the University of London and policy lead for the EAT-Lancet Commission that compiled the 50-page study, told AFP. 

 

Currently, nearly a billion people are hungry and another 2 billion are eating too much of the wrong foods, causing epidemics of obesity, heart disease and diabetes.  

Unhealthy diets account for up to 11 million avoidable premature deaths every year, according to the most recent Global Disease Burden report. 

 

At the same time the global food system is the single largest emitter of greenhouse gases, the biggest driver of biodiversity loss, and the main cause of deadly algae blooms along coasts and inland waterways. 

 

Agriculture — which has transformed nearly half the planet’s land surface — also uses up about 70 percent of the global fresh water supply. 

 

“To have any chance of feeding 10 billion people in 2050 within planetary boundaries” — the limits on Earth’s capacity to absorb human activity — “we must adopt a healthy diet, slash food waste and invest in technologies that reduce environmental impacts,” said co-author Johan Rockstrom, director of the Potsdam Institute for Climate Change Impact Research.

“It is doable but it will take nothing less than global agricultural revolution,” he told AFP.  

The main culprit

 

The cornerstone of “the great food transformation” called for in the study is a template human diet of about 2,500 calories per day.

“We are not saying everyone has to eat in the same way,” Lang said by phone. “But broadly — especially in the rich world — it means a reduction of meat and dairy, and a major increase in plant consumption.”

The diet allows for about 7 grams (.25 ounce) of red meat per day, and up to 14. A typical hamburger patty, by comparison, is 125 to 150 grams. 

 

For most rich nations, and many emerging ones such as China and Brazil, this would represent a drastic five- to tenfold reduction.   

 

Beef is the main culprit.  Not only do cattle pass massive quantities of planet-warming methane, huge swaths of carbon-absorbing forests — mostly in Brazil — are cut down every year to make room for them.

“For climate, we know that coal is the low-hanging fruit, the dirtiest of fossil fuels,” said Rockstrom. “On the food side, the equivalent is grain-fed beef.”  

It takes at least 5 kilos of grain to produce a kilo of meat.  

 

And once that steak or lamb chop hits the plate, about 30 percent will wind up in the garbage bin.

Dairy is also limited to about one cup (250 grams) of whole milk — or its equivalent in cheese or yogurt — per day, and only one or two eggs per week. 

At the same time, the diet calls for a more than 100 percent increase in legumes such as peas and lentils, along with vegetables, fruits and nuts. 

 

Grains are considered to be less healthy sources of nutrients. 

 

“We can no longer feed our population a healthy diet while balancing planetary resources,” said Lancet editor-in-chief Richard Horton. “For the first time in 200,000 years of human history, we are severely out of sync with the planet and nature.” 

Pushback

 

The report drew heavy fire from the livestock and dairy industry, and some experts. 

 

“It goes to the extreme to create maximum attention, but we must be more responsible when making serious dietary recommendation,” said Alexander Anton, secretary-general of the European Dairy Association, noting that dairy products are “packed” with nutrients and vitamins. 

 

Christopher Snowdon of the Institute of Economic Affairs in London said the report “reveals the full agenda of nanny-state campaigners.” 

 

“We expected these attacks,” said Lang. “But the same food companies pushing back against these findings realize that they may not have a future if they don’t adapt.

“The question is: Does this come by crisis, or do we start planning for it now?”  

 

Some multinationals responded positively, if cautiously, to the study. 

 

“We need governments to help accelerate the change by aligning national dietary guidelines with healthy and sustainable requirements, and repurposing agricultural subsidies,” the World Business Council for Sustainable Development said in a statement.

more

Giant US Bank Reveals 29 Percent Pay Gap Between Men, Women

Female employees at Citigroup Inc around the world are paid just 71 percent of what men earn, the giant bank said on Wednesday, declaring its intentions to close its gender pay gap.

A Citigroup shareholder group that sought data on the pay gap said the bank is the first U.S. company to disclose such figures.

The U.S.-based bank employs more than 200,000 people in more than 100 countries, and more than half those employees are female, it said.

Tackling the 29 percent gap means increasing the number of women in senior and higher-paying roles, promoting women to at least 40 percent of assistant vice president through managing director jobs, Citigroup said in a statement.

Citigroup said it disclosed the data in response to a shareholder proposal from Arjuna Capital, an investment management firm.

The bank said its “raw pay gap” showed median pay for females globally was 71 percent of the median for men.

The raw gap measures the difference in median total compensation not adjusted for job function, level and geography.

With those adjustments, women are paid an average of 99 percent of what men are paid, it said.

“We have work to do, but we’re on a path that I’m confident will allow us to make meaningful progress,” Sara Wechter, head of human resources, said in a statement.

In the United States overall, women last year working full-time year-round earned 80 percent of what men earned, according to commonly cited data from the U.S. Census Bureau.

Congress outlawed pay discrimination based on gender in 1963, yet public debate over why wages still lag drastically for women has snowballed in recent years.

Globally, the World Economic Forum reported an economic gap of 58 percent between the sexes for 2016, costing the global economy $1.2 trillion annually.

Last January, Citigroup said it was increasing compensation for women and minorities to bridge pay gaps in the United States, the United Kingdom and Germany, becoming the first big U.S. bank to respond to a shareholder push to analyze and disclose its gender pay gap.

This past year it expanded its pay equity review beyond those three countries to its workforce globally, it said.

 

more