Day: April 26, 2019

Uber’s Stock Offering Terms Temper Expectations

Uber Technologies Inc., the world’s largest ride-hailing company, plans an initial public offering that values the company lower than the startup’s insiders had hoped, between $80.5 billion and $91.5 billion. 

The valuation, outlined in a regulatory filing Friday, is less than the $120 billion that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in a private fundraising round in 2018. 

This reflects the poor stock performance of its smaller rival Lyft Inc. following its IPO last month. Lyft shares ended trading Thursday down more than 20 percent from their IPO price, amid investor skepticism over its path to 

profitability. 

Lyft completed its IPO at a valuation of $24.3 billion, which corresponded to around 11 times its 2018 revenue. By comparison, the top end of Uber’s valuation target is around eight times revenue last year. 

“We believe that recent price reductions for both Uber and Lyft may be indicative of investor hesitance to invest in highly capital-intensive, deeply unprofitable and untested business models at this late stage of the economic cycle,” PitchBook analyst Asad Hussain said. 

In the filing, Uber set a target price range of $44 to $50 per share for its IPO. The company will sell 180 million shares in the offering to raise up to $9 billion, with a further 27 million sold by existing investors for as much as $1.35 billion. 

Reuters reported this month that the combined value of Uber shares sold in the IPO would be around $10 billion. 

The Uber IPO would rank as the largest in the United States since that of Chinese e-commerce giant Alibaba Group Holding Ltd. in 2014. 

Road show

The updated public filing comes as Uber begins its 10-day investor road show, in which management will pitch Uber to public markets investors. 

Uber executives kicked off the IPO road show in New York on Friday. They will host an investor presentation in London on Monday, before returning to the United States for visits to New York a second time, Boston, San Francisco and the Midwest. 

Uber expects to price the IPO on May 9 and then begin trading on the New York Stock Exchange the following day, people familiar with the matter have said. 

Of the stock being sold in the IPO by existing Uber investors, 6.86 million shares are from Uber co-founders Travis Kalanick and Garrett Camp, meaning the two men could jointly pocket $343 million if the IPO prices at the top end of its current range. 

Uber will face a host of questions from investors, including when it will turn a profit, how it will navigate the transition to autonomous vehicles, and whether its business model can support higher driver costs from minimum wage rules. 

Underscoring the company’s ability to generate revenue but also the scale of its losses, Uber reported in the filing a net loss attributable to the company for the first quarter of 2019 of around $1 billion on sales of roughly $3 billion. 

“When it comes to Uber, we believe there are still questions over the current car-sharing model, the economics of which are not immediately or obviously attractive for sustainable, long-term investment,” Mark Hargraves, head of Framlington Global Equities, wrote in a note. 

Uber also said PayPal had agreed to purchase $500 million of stock in a private placement at the price the IPO eventually settles at. The two companies also said they were extending an existing partnership to “explore future commercial payment collaborations.” 

This is similar to when Comcast Corp.’s NBCUniversal invested $500 million in Snapchat owner Snap Inc., around the time of the latter’s IPO in 2017. 

Conservative valuation

Two other IPOs this month, those of online scrapbook company Pinterest Inc. and video conferencing company Zoom Video Communications Inc., have performed much better than Lyft. 

Uber, however, has chosen to still value itself conservatively. One advantage Uber will likely seek to emphasize to investors is that it is the largest player in many of the markets in which it does business, and the fact that it operates 

around the world. 

Analysts consider building scale crucial for Uber’s business model to become profitable. 

Unlike Lyft, Uber also has a restaurant delivery business, Uber Eats, which generated $1.5 billion in revenue last year and competes with the likes of Grubhub Inc. and DoorDash.

During Uber’s IPO road show, Chief Executive Dara Khosrowshahi will be also tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years. 

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas. 

The Uber IPO is being led by Morgan Stanley, Goldman Sachs & Co. and Bank of America Merrill Lynch. 

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Foxconn Jobs, Tax Credits Could Be Renegotiated in Wisconsin 

Wisconsin Gov. Tony Evers and Foxconn Technology Group officials are talking about making changes to the contract signed in 2017 that was based on constructing a larger display screen manufacturing facility than is now proposed. 

 

But neither side is giving details. So how might the deal be changed? And what’s at stake for each side? 

 

Here are five areas to watch as talks continue, based on interviews with people familiar with the Foxconn deal and others like it: 

 

Jobs: It makes sense that Foxconn would want to open up the deal because it appears unlikely to meet the original jobs targets, said Bob O’Brien, president of U.S.-based Display Supply Chain Consultants, which tracks the global flat-panel industry. 

 

Foxconn already came up well short of its first-year target of 260 jobs, costing it $9.5 million in tax credits. This year’s jobs goal has doubled to 520, and the 2020 goal — when Foxconn says production will begin — is nearly 2,000 jobs. 

 

Starting in 2027, it must have at least 10,400 workers to qualify. 

 

It makes sense that Foxconn would want to renegotiate to lower the threshold to qualify, O’Brien said. 

 

The current contract awards Foxconn up to $1.5 billion in tax credits if it hires 13,000 people by 2023 making an average salary of $53,875.  

  

Alan Yeung, Foxconn’s leader for strategy in the U.S., this week suggested there’s no way to predict whether Foxconn will meet the jobs target. 

 

“Who has the crystal ball to predict if 13,000 jobs will be created by the year 2032? Esp in April `19,” he tweeted. Yeung later told reporters Foxconn remained committed to hiring 13,000 people. 

 

“We’re not changing the deal … especially the 13,000 jobs,” he said.    

​Size of factory: Foxconn could get another $1.35 billion in tax credits if it spends $9 billion on capital investments, primarily building construction and the purchasing of machinery and equipment.  

  

The original contract has Foxconn building what’s called a Generation 10.5 facility. But Foxconn now plans to build a Generation 6 plant, which will make smaller display screens for cellphones and other devices. 

 

Opponents have said that wording referring to a Generation 10.5 plant puts the entire contract in jeopardy if Foxconn builds a different-sized factory. 

 

But Evers, in an interview, discounted that concern. 

 

“I think that we’re past that point and I don’t think anybody would have ever called them out and say we’re going to negate this deal because of that,” Evers said. 

 

Level of credits: While Foxconn may want to  lower minimum job-creation numbers to get credits, the state may want to make the benefits less generous. 

 

The credits for job creation and capital investment are much richer than for most economic development projects, a point that critics repeatedly point to as a fault with the contract.  

  

Foxconn is currently eligible for a 15% capital investment credit for expenditures on land and buildings, more than the typical 10%. It’s eligible for a 17% credit on wages, more than double the usual 7%.  

  

Wisconsin went with the larger incentive payments because of the enormous promised scale of the project, which was projected to have massive ripple effects across the state’s economy. President Donald Trump heralded it as the “eighth wonder of the world” and said it was a sign of a resurgence in American manufacturing. 

 

But with the scale of the project reduced, and hiring numbers in question, there will be pressure on the state to lower its commitment. 

 

Changes in leadership: The project has been in flux almost from the moment it began. The election of Foxconn critic Evers as governor, followed by the announcement earlier this month that Foxconn CEO Terry Gou plans to run for president of Taiwan, has added uncertainty. 

 

Gou was personally involved in the Wisconsin deal, traveling to the state multiple times to negotiate with then-Gov. Scott Walker and his administration and meet with Trump.  

  

There are more changes to come. In September, Evers will be able to appoint a new leader to the Wisconsin Economic Development Corp., which wrote the contract.  

  

New requirements: Renegotiating the contract would give Evers a chance to insert new environmental safeguards, but those would come at a cost that Foxconn would surely want to mitigate elsewhere. Evers could also attempt to put in place new requirements forcing Foxconn to do business with Wisconsin companies and hire workers from the state. The state may also want to include protections for local communities, which have already spent about $190 million on the project, O’Brien said. 

 

To me it's a partnership and we're going to be working together to solve it,'' Evers said.I suppose at some point in time we might not agree and then it becomes somewhat of a negotiation. But I truly believe that the changes that are made will be reasonable to all sides. Of course, you go in knowing it might not be.”

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Trump Urges Americans to Get Vaccinated Amid Measles Outbreak

President Donald Trump urged Americans Friday to get vaccinated against measles, amid an outbreak of the highly contagious virus in the U.S. that has forced two U.S. universities to quarantine hundreds of students, faculty members and other employees.

Trump told reporters at the White House citizens “must get their shots” to protect themselves against the virus that was deemed eradicated in the U.S. nearly 20 years ago.

There were nearly 700 cases in 22 states, the Centers for Disease Control (CDC) reported Wednesday, the highest level in 25 years. The CDC partially attributed the surge to misinformation about the safety of the measles vaccine.

The beginning of the outbreak has been traced to Orthodox Jews who contracted the disease while traveling overseas. The cases have been concentrated in a small number of states, including New York, New Jersey, Michigan and Washington.

Cases also have been confirmed in California, where public health officials ordered dozens of people to be quarantined Tuesday at the University of California at Los Angeles and California State University, Los Angeles following an exposure to the virus earlier this month. Los Angeles County public health officials said some people may have to be quarantined up to one week until proof of immunity is established.

The CDC recommends vaccinations for everyone over a year old, except those who contracted measles as children and have since become immune.

The vaccine, which first became available in the 1960s, is considered safe and effective by most public health experts.

 

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Day 2 at New Orleans Jazz Fest: Sunshine and Santana

Sunshine and Santana: Both will be welcome sights on the second day of the New Orleans Jazz & Heritage Festival.

There have been some disappointments in the run-up to the 50th annual Jazz Fest. Both the Rolling Stones and Fleetwood Mac had to cancel for health reasons. Storms then delayed Thursday’s opening, though not for long: By closing time, fans were two-stepping in the mud and a huge crowd was on hand for Earth, Wind & Fire. 

 

Among them was Zack Buda, 25, of Manhattan who came to New Orleans with his parents, Scott and Hillary Buda, and their friends, Amy and Jamie Bernstein of Brooklyn. 

 

“They’re exposing me to the music of their time,” said Buda, who used binoculars for a better view of the stage.

Friday’s forecast called for warm, dry weather for the dozens of acts playing on 10 stages, with Santana closing out a main stage in the evening. 

 

Other highlights include high school choirs raising spirits in the Gospel Tent, Grammy winner Terence Blanchard at the WWNO Jazz Tent and home-grown R&B artist P.J. Morton, known for his solo work and his keyboarding with Maroon 5.

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‘Avengers: Endgame’ Sets Opening Night Record in US, Canada

Marvel Studios superhero spectacle “Avengers: Endgame” hauled in a record $60 million at U.S. and Canadian box offices during its Thursday night debut,

distributor Walt Disney Co said.

Global ticket sales for the film about Iron Man, Hulk and other popular characters reached $305 million for the first two days, Disney said.

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US Social Media Firms Scramble to Fight Fake News

As Notre Dame Cathedral burned, a posting on Facebook circulated – a grainy video of what appeared to be a man in traditional Muslim garb up in the cathedral.

Fact-checkers worldwide jumped into action and pointed out the video and postings were fake and the posts never went viral.

But this week, the Sri Lanka government temporarily shut down Facebook and other sites to stop the spread of misinformation in the wake of the Easter Sunday bombings in the country that killed more than 250 people. Last year, misinformation on Facebook was blamed for contributing to riots in the country.

Facebook, Twitter, YouTube and others are increasingly being held responsible for the content on their sites as the world tries to grapple in real time with events as they unfold. From lawmakers to the public, there has been a rising cry for the sites to do more to combat misinformation particularly if it targets certain groups.

Shift in sense of responsibility

For years, some critics of social media companies, such as Twitter, YouTube and Facebook, have accused them of having done the minimum to monitor and stamp out misinformation on their platforms. After all, the internet platforms are generally not legally responsible for the content there, thanks to a 1996 U.S. federal law that says they are not publishers. This law has been held up as a key protection for free expression online.

And, that legal protection has been key to the internet firms’ explosive growth. But there is a growing consensus that companies are ethically responsible for misleading content, particularly if the content has an audience and is being used to target certain groups.

Tuning into dog whistles

At a recent House Judiciary Committee hearing on white supremacy and hate crimes, Congresswoman Sylvia Garcia, a Texas Democrat, questioned representatives from Facebook and Google about their policies.

“What have you done to ensure that all your folks out there globally know the dog whistles, know the keywords, the phrasing, the things that people respond to, so we can be more responsive and be proactive in blocking some of this language?” Garcia asked.

Each company takes a different approach.

Facebook, which perhaps has had the most public reckoning over fake news, won’t say it’s a media company. But it has taken partial responsibility about the content on its site, said Daniel Funke, a reporter at the International Fact-Checking Network at the Poynter Institute.

The social networking giant uses a combination of technology and humans to address false posts and messages that appear to target groups. It is collaborating with outside fact-checkers to weed out objectionable content, and has hired thousands to grapple with content issues on its site.

Swamp of misinformation

Twitter has targeted bots, automatic accounts that spread falsehoods. But fake news often is born on Twitter and jumps to Facebook.

“They’ve done literally nothing to fight misinformation,” Funke said.

YouTube, owned by Google, has altered its algorithms to make it harder to find problematic videos, or embed code to make sure relevant factual content comes up higher in the search. YouTube is “such a swamp of misinformation just because there is so much there, and it lives on beyond the moment,” Funke said.

Other platforms of concern are Instagram and WhatsApp, both owned by Facebook.

 

Some say what the internet companies have done so far is not enough.

“To use a metaphor that’s often used in boxing, truth is against the ropes. It is getting pummeled,” said Sam Wineburg, an education professor at Stanford University.

What’s needed, he said, is for the companies to take full responsibility: “This is a mess we’ve created and we are going to devote resources that will lower the profits to shareholders, because it will require a deeper investment in our own company.”

Fact-checking and artificial intelligence

One of the fact-checking organizations that Facebook works with is FactCheck.org. It receives misinformation posts from Facebook and others. Its reporters check out the stories then report on their own site whether the information is true or false. That information goes back to Facebook as well.

 

Facebook is “then able to create a database now of bad actors, and they can start taking action against them,” said Eugene Kiely, director of FactCheck.org. Facebook has said it will make it harder to find posts by people or groups that continually post misinformation.

The groups will see less financial incentives, Kiely points out. “They’ll get less clicks and less advertising.”

 

Funke predicts companies will use technology to semi-automate fact-checking, making it better, faster and able to match the scale of misinformation.

That will cost money of course.

It also could slow the internet companies’ growth.

Does being more responsible mean making less money? Social media companies are likely to find out.

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US Social Media Companies Pressed to Better Police Content

Social media companies such as Twitter, YouTube and Facebook are not legally responsible for the content that users upload to their sites. That legal protection has been key to their explosive growth, but there is a growing consensus that companies must do more to root out misleading content. Michelle Quinn reports, the companies may be taking action in the hope of avoiding stricter government regulation.

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‘Avengers: Endgame,’ the Anatomy of an Ultra Blockbuster

“Avengers: Endgame” marks the culmination of Marvel’s superhero universe since its first “Iron Man” film in 2008. Critics have hailed the three-hour movie as a super spectacle and a befitting ending, harkening back to the beginnings of the Avengers franchise. VOA’s Penelope Poulou spoke with critics and industry insiders about the significance of the film, about its franchise and the future of the Marvel Cinematic Universe.

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World Free of Malaria, HIV, Cancer Possible with Vaccines

This year, during World Immunization Week, the World Health Organization launched the world’s first malaria vaccine. Scientists are also testing a vaccine for HIV, and they are working on vaccines against cancer.

“Vaccines are one of the greatest inventions of humankind,” said Dr. Peter Hotez, a professor at the Baylor College of Medicine.

Global vaccination programs have ended smallpox, and they are closing in on polio, a disease that used to paralyze 350,000 people each year. Because of a global immunization program, that number now stands at 20.

Pakistan and Afghanistan are the last remaining countries where the polio virus is still spreading.

Break the chains

Diseases like smallpox, polio and measles can only be transmitted from one person to another. Dr. Walter Orenstein from the Emory Vaccine Center says that’s why they can be wiped off the face of the earth.

“If you can break the chains of human to human transmission, you can eradicate the disease,” he said. “That’s how smallpox was eradicated.”

 

WATCH: Vaccines Could Make World Free of Malaria, HIV, Cancer

Malaria vaccine

Most of the diseases that can be prevented through vaccines are caused by viruses — think measles, mumps or chickenpox. But the most exciting news during World Immunization Week is about a vaccine against the parasite that causes malaria.

Dr. Pedro Alonso of the World Health Organization said Malawi, Ghana and Kenya will begin giving malaria vaccines to children in the coming weeks.

“This is the first vaccine against the human malaria parasite. Parasites are really complex organisms, much more so than a virus or a bacteria. And that’s why it has taken 30 years to develop this first vaccine,” he said.

Cancer and HIV

Vaccines can already protect against two types of cancer: cervical and oral cancers caused by the human papilloma virus and liver cancer caused by the hepatitis B virus. Now scientists are working to develop vaccines against breast cancer and other deadly cancers.

And then there’s HIV. HIV vaccine trials are going on in South Africa, and research is being done to develop an antibody-based HIV vaccine.

Dr. Carl Dieffenbach is a specialist in HIV at the National Institutes of Health. He says anti-AIDS drugs have already made a huge difference in controlling the epidemic.

“We put a vaccine on top of that, too, it’s not just stopping the epidemic. It’s ending the epidemic,” he said.

A world free from these diseases will be a world where more people can raise healthy children, earn a living and get out of poverty. It would be a world where not only people, but countries could prosper.

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Vaccines Could Make a World Free of Malaria, HIV, Cancer Possible

This year, during World Immunization Week, the World Health Organization launched the world’s first malaria vaccine. Scientists are also testing a vaccine for HIV, and they are working on vaccines against cancer. VOA’s Carol Pearson has more.

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John Havlicek, Boston Celtics Great, Dies at 79

John Havlicek, the Boston Celtics great whose steal of Hal Green’s inbounds pass in the final seconds of the 1965 Eastern Conference final against the Philadelphia 76ers remains one of the most famous plays in NBA history, has died. He was 79.

The Celtics said the Hall of Famer died Thursday in Jupiter, Florida. The cause of death wasn’t immediately available. The Boston Globe said he had Parkinson’s disease. 

Gravel-voiced Johnny Most’s radio call of the 1965 steal – “Havlicek stole the ball! Havlicek stole the ball!” – helped make the play one of the most enduring moments in NBA history.

“John Havlicek is one of the most accomplished players in Boston Celtics history, and the face of many of the franchise’s signature moments,” the Celtics said in a statement. “He was a champion in every sense, and as we join his family, friends, and fans in mourning his loss, we are thankful for all the joy and inspiration he brought to us.”

Nicknamed “Hondo” for his resemblance to John Wayne, Havlicek was drafted in the first round in 1962 out of Ohio State by a Celtics team stocked with stars Bill Russell, Bob Cousy, K.C. Jones, Sam Jones, Tom Sanders, Tom Heinsohn and Frank Ramsey.

Boston won NBA championships in his first six years with the team.

Then, as the veteran players gradually moved on, Havlicek became the team’s elder statesman and moved up to become a starter. The team won championships in 1973-74 and 1975-76 with Havlicek leading teams that included Dave Cowens and Jo Jo White. 

Havlicek went on to win eight NBA championships and an NBA Finals MVP award, setting Celtics career records for points and games. He was named one of the 50 Greatest Players in NBA History and enshrined in the Naismith Memorial Basketball Hall of Fame in 1984. At Ohio State, he helped lead the Buckeyes to the 1960 national championship.

As much as his deadly jump shot or his heroics in Boston’s triple-overtime NBA finals victory over Phoenix in 1976, Havlicek was known for his durability. He played at least 81 games in each of his 15 seasons with the Celtics and he didn’t just play: He was on the run constantly and was perpetually in motion. 

In his NBA career he scored 26,395 points in 1,270 games. He seldom rested. 

“The Boston Celtics are not a team, they are a way of life,” Red Auerbach once said. And no one personified the Celtic way more than Havlicek. 

His No.17 was raised to the rafters in old Boston Garden and now resides in TD Garden, retired soon after he retired in 1978. 

Born April 8, 1940, in Martins Ferry, Ohio, Havlicek became a standout athlete at Bridgeport High School in a small coal-mining town of 2,500 near Wheeling, West Virginia. 

The 6-foot-5 Havlicek was also an outstanding football and baseball player in high school and was given a tryout by the Cleveland Browns after graduating from college. 

As a sophomore at Ohio State, he scored 12.2 points a game as the Buckeyes won the national championship, beating California 75-55 in the final. His junior and senior years, Ohio State again won the Big Ten titles and made it to the NCAA title game but lost to Cincinnati each time. During Havlicek’s three years at Ohio State, the Buckeyes went 78-6, dominating most games unlike any team up to that time. 

All five starters from Ohio State’s title team in 1960 – which included Jerry Lucas and future Celtic teammate Larry Siegfried – played in the NBA. Backup Bob Knight went to a Hall of Fame coaching career.

Havlicek remained in Boston after his retirement, managing investments. He later split time between New England and Florida. He occasionally returned to Ohio State for reunions of the championship team and Celtics events. His Ohio State number was retired during ceremonies in the 2004-2005 season. 

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China Plastic Waste Ban Throws Global Recycling into Chaos

From grubby packaging engulfing small Southeast Asian communities to waste piling up in plants from the US to Australia, China’s ban on accepting the world’s used plastic has plunged global recycling into turmoil.

For many years, China received the bulk of scrap plastic from around the world, processing much of it into a higher quality material that could be used by manufacturers.

But at the start of 2018, it closed its doors to almost all foreign plastic waste, as well as many other recyclables, in a push to protect the local environment and air quality, leaving developed nations struggling to find places to send their waste.

“It was like an earthquake,” Arnaud Brunet, director general of Brussels-based industry group The Bureau of International Recycling, told AFP.

“China was the biggest market for recyclables. It created a major shock in the global market.”

Instead, plastic is being redirected in huge quantities to Southeast Asia, where Chinese recyclers have shifted en masse. 

With a large Chinese-speaking minority, Malaysia was a top choice for Chinese recyclers looking to relocate, and official data showed plastic imports tripled from 2016 levels to 870,000 tonnes last year.

In the small town of Jenjarom, not far from Kuala Lumpur, plastic processing plants suddenly appeared in large numbers, pumping out noxious fumes day and night.

Huge mounds of plastic waste, dumped in the open, piled up as recyclers struggled to cope with the influx of packaging from everyday goods, such as foods and laundry detergents, from as far afield as Germany, the United States, and Brazil.

Residents soon noticed the acrid stench over the town — the kind of odor that is usual in processing plastic, but environmental campaigners believe some of the fumes also come from the incineration of plastic waste that was too low quality to recycle.

“People were attacked by toxic fumes, waking them up at night. Many were coughing a lot,” local resident, Pua Lay Peng, told AFP. 

“I could not sleep, I could not rest, I always felt fatigued,” the 47-year-old added.

Toxic fumes

Pua and other community members began investigating and by mid-2018 had located about 40 suspected processing plants, many of which appeared to be operating secretly and without proper permits.

Initial complaints to authorities went nowhere but they kept up pressure, and eventually the government took action. Authorities started closing down illegal factories in Jenjarom, and announced a nationwide temporary freeze on plastic import permits.

Thirty-three factories were closed down, although activists believe many have quietly moved elsewhere in the country. Residents say air quality has improved but some plastic dumps remain.

In Australia, Europe and the US, many of those collecting plastic and other recyclables were left scrambling to find new places to send it. 

They face higher costs to get it processed by recyclers at home and in some cases have resorted to sending it to landfill sites as the scrap has piled up too quickly.

“Twelve months on, we are still feeling the effects but we have not moved to the solutions yet,” said Garth Lamb, president of industry body Waste Management and Resource Recovery Association of Australia.

Some have been quicker to adapt to the new environment, such as some local authority-run centers that collect recyclables in Adelaide, southern Australia.

The centers used to send nearly everything — ranging from plastic to paper and glass — to China but now 80 percent is processed by local companies, with most of the rest shipped to India.

“We moved quickly and looked to domestic markets,” Adam Faulkner, chief executive of the Northern Adelaide Waste Management Authority, told AFP. 

“We’ve found that by supporting local manufacturers, we’ve been able to get back to pre-China ban prices,” he added.

Consume less, produce less 

In mainland China, imports of plastic waste have dropped from 600,000 tonnes per month in 2016 to about 30,000 a month in 2018, according to data cited by a new report from Greenpeace and environmental NGO Global Alliance for Incinerator Alternatives.

Once bustling centers of recycling have been abandoned as firms shifted to Southeast Asia. 

On a visit to the southern town of Xingtan last year, Chen Liwen, founder of environmental NGO China Zero Waste Alliance, found the once-booming recycling industry had disappeared.

“The plastic recyclers were gone — there were ‘for rent’ signs plastered on factory doors and even recruitment signs calling for experienced recyclers to move to Vietnam,” she told AFP.

Southeast Asian nations affected early by the China ban — as well as Malaysia, Thailand and Vietnam were hit hard — have taken steps to limit plastic imports, but the waste has simply been redirected to other countries without restrictions, such as Indonesia and Turkey, according to the Greenpeace report.

With only an estimated nine percent of plastics ever produced recycled, campaigners say the only long-term solution to the plastic waste crisis is for companies to make less and consumers to use less. 

Greenpeace campaigner Kate Lin said: “The only solution to plastic pollution is producing less plastic.”

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UN: Humans Put 1 Million Species at Risk of Extinction

Up to 1 million species face extinction because of human influence, according to a draft U.N. report obtained by AFP that painstakingly catalogues how humanity has undermined the natural resources upon which its very survival depends.

The accelerating loss of clean air, drinkable water, CO2-absorbing forests, pollinating insects, protein-rich fish and storm-blocking mangroves — to name but a few of the dwindling services rendered by nature — poses no less of a threat than climate change, says the report, set to be unveiled May 6.

Indeed, biodiversity loss and global warming are closely linked, according to the 44-page Summary for Policy Makers, which distills a 1,800-page U.N. assessment of scientific literature on the state of nature.

Delegates from 130 nations meeting in Paris from April 29 will vet the executive summary line-by-line. Wording may change, but figures lifted from the underlying report cannot be altered.

“We need to recognize that climate change and loss of nature are equally important, not just for the environment, but as development and economic issues as well,” Robert Watson, chair of the U.N.-mandated body that compiled the report, told AFP, without divulging its findings.

“The way we produce our food and energy is undermining the regulating services that we get from nature,” he said, adding that only “transformative change” can stem the damage.

Deforestation and agriculture, including livestock production, account for about a quarter of greenhouse gas emissions, and have wreaked havoc on natural ecosystems as well.

​‘Mass extinction event’

The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) report warns of “an imminent rapid acceleration in the global rate of species extinction.”

The pace of loss “is already tens to hundreds of times higher than it has been, on average, over the last 10 million years,” it notes.

“Half-a-million to a million species are projected to be threatened with extinction, many within decades,” it continues.

Many experts think a so-called “mass extinction event” — only the sixth in the last half-billion years — is already under way.

The most recent saw the end of the Cretaceous period some 66 million years ago, when a 10-kilometerwide asteroid strike wiped out most life forms.

Scientists estimate that Earth is today home to about 8 million distinct species, a majority of them insects.

A quarter of catalogued animal and plant species are being crowded, eaten or poisoned out of existence.

The drop in sheer numbers is even more dramatic, with wild mammal biomass — their collective weight — down by 82 percent.

Humans and livestock account for more than 95 percent of mammal biomass.

​Population growth

“If we’re going to have a sustainable planet that provides services to communities around the world, we need to change this trajectory in the next 10 years, just as we need to do that with climate,” noted WWF chief scientist Rebecca Shaw, formerly a member of the U.N. scientific bodies for both climate and biodiversity.

The direct causes of species loss, in order of importance, are shrinking habitat and land-use change, hunting for food or illicit trade in body parts, climate change, pollution, and alien species such as rats, mosquitoes and snakes that hitch rides on ships or planes, the report finds.

“There are also two big indirect drivers of biodiversity loss and climate change: the number of people in the world and their growing ability to consume,” Watson said.

Once seen as primarily a future threat to animal and plant life, the disruptive impact of global warming has accelerated.

Shifts in the distribution of species, for example, will likely double if average temperature go up a notch from 1.5 degrees Celsius (2.7 Fahrenheit) to 2C.

So far, the global thermometer has risen 1C compared with mid-19th century levels.

The 2015 Paris Agreement enjoins nations to cap the rise to “well below” 2C. But a landmark U.N. climate report in October said that would still be enough to boost the intensity and frequency of deadly heat waves, droughts, floods and storms.

Global inequity

Other findings in the report include:

Three-quarters of land surfaces, 40 percent of the marine environment, and 50 percent of inland waterways across the globe have been “severely altered.”
Many of the areas where Nature’s contribution to human wellbeing will be most severely compromised are home to indigenous peoples and the world’s poorest communities that are also vulnerable to climate change.
More than 2 billion people rely on wood fuel for energy, 4 billion rely on natural medicines, and more than 75 percent of global food crops require animal pollination.
Nearly half of land and marine ecosystems have been profoundly compromised by human interference in the last 50 years.
Subsidies to fisheries, industrial agriculture, livestock raising, forestry, mining and the production of biofuel or fossil fuel energy encourage waste, inefficiency and overconsumption.

The report cautioned against climate change solutions that may inadvertently harm nature.

The use, for example, of biofuels combined with “carbon capture and storage” — the sequestration of CO2 released when biofuels are burned — is widely seen as key in the transition to green energy on a global scale.

But the land needed to grow all those biofuel crops may wind up cutting into food production, the expansion of protected areas or reforestation efforts.

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Amazon Aims to Bring One-day Delivery to Prime Members Around Globe

Amazon.com Inc plans to deliver packages to members of its loyalty club Prime in just one day, instead of two days, part of a spending ramp-up that might curb future profits after a blockbuster first quarter.

Shares rose as much as 2% in after-hours trade on Thursday on the faster shipping announcement for customers around the globe and as Amazon’s first-quarter profit trounced estimates thanks to soaring demand for its cloud and ad services. Amazon will spend $800 million in the second quarter on the goal.

 The announcement adds pressure to rivals Walmart Inc and others already racing to keep pace with the speed and benefits of Amazon’s Prime program.

Amazon’s first-quarter net income more than doubled to $3.6 billion, while analysts were only expecting $2.4 billion, according to IBES data from Refinitiv.

Second-quarter operating income will be as much as $3.6 billion, but analysts had been expecting $4.2 billion, according to FactSet.

 Chief Financial Officer Brian Olsavsky said Amazon was still reaping rewards from prior years of hiring and investments in warehouses and other infrastructure.

“We’re banking the efficiencies of prior investments, continued into Q1,” he said on a call with reporters. “There’ll be times when we have to invest ahead to build out warehouse capacity, but right now we are on a nice path where we are getting the most out of the capacity we have.”

Olsavsky also said earlier that the company would spend more later this year to roll out more benefits to international Prime members.

Investments mean lower profits

The news marks a familiar refrain for the world’s largest online retailer. For years, Amazon has made expensive bets on new technology and programs, like its $13.7 billion purchase of Whole Foods Market in 2017 to become a player in the U.S. grocery business.

 Amazon’s investments had long meant lower profit. However, its steady, often successful marches into new industries have been lucrative to shareholders, including its founder Jeff Bezos, who had become the richest man in the world.

 The luster of these bets still shined brightly on Thursday. The company’s loyal customer base has drawn merchants to sell and increasingly advertise through its site in exchange for fees, helping Amazon transform from a largely low-margin retail business to a more and more lucrative marketplace.

Revenue from seller services jumped 20% to $11.1 billion in the first quarter, while ad and other sales surged 34%  to $2.7 billion, the company said.

Meanwhile, Amazon’s cloud unit kept growing as more enterprises moved data and computing operations to the technology company’s servers. Sales for Amazon Web Services (AWS) rose 41% to $7.7 billion in the first quarter.

More hiring, spending to come

Some analysts noted that these growth figures, while impressive, were lower than what Amazon had posted in prior quarters.

“Amazon delivered slower growth in all key segments,“ (AWS, advertising and e-commerce) “but margins skyrocketed, seemingly driven by less aggressive investment,” said Atlantic Equities analyst James Cordwell.

Amazon suggested that spending indeed was on the way, and with that smaller growth in profit.

‘Lord of the Rings’ prequel

The company has been building warehouses around the world to ensure its edge in delivering goods to customers the fastest. It is spending more on video, from live sports to a planned prequel series to “The Lord of the Rings,” to draw more people to log on to its website, watch, and while they are there, buy socks. Hiring will pick up from the 12 percent increase Amazon posted in the past 12 months, Olsavsky said.

And the company is delving into even less familiar terrain.

It recently announced investments in self-driving and electric car companies, teasing how it thinks these high-tech, capital-intensive businesses could pay dividends potentially in the form of autonomous deliveries in the long run. Amazon has not described in detail its thinking behind the bets.

In China, where the company had long struggled to compete with Alibaba Group Holding Ltd, Amazon said this month it would close warehouses and its domestic marketplace in July. There were silver linings for investors, however.

Amazon’s Olsavsky said the company saw no material impact in India from actions the company took to comply with new regulations there affecting foreign investment in the e-commerce sector, something Amazon had voiced concern about in the past.

Prime signups on rise in India

Prime member signups in India, one of Amazon’s most important growth markets, continue to be rising the fastest in the company’s history.

Bezos, who many regard as a management guru, also settled his closely watched divorce such that he will retain full voting control of his family’s stock, sparing Amazon a boardroom battle. However, his fortune, which has been the largest of any married couple in the world, will be divided.

The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts’ average estimate of $62.37 billion, according to IBES data from Refinitiv.

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