Month: October 2018

Why America Stopped Shopping at Sears

In the late 1960s, while fledgling new retailers Walmart, Kohl’s, Kmart and Target were hard at work establishing a foothold in the hearts, minds and wallets of the American consumer, the nation’s dominant retailer was busy building the world’s tallest building.

In pouring its funds and focus into Chicago’s Sears Tower, America’s original super-store may have unwittingly become the architect of its own long, slow and painful demise.

“Walmart, the strongest of all those four, wasn’t anywhere near where Sears was for a couple of decades,” says James Schrager, professor of entrepreneurship and strategy at the University of Chicago’s Booth School of Business. “So, if Sears was on top of things, even in the early 80s, they could have been Target or a better version of Kmart, they could have been any of that. But they sat on their hands and built their tower in 1969 instead.”

It’s been a precipitous fall for the one-time retail powerhouse, which this week filed for bankruptcy after years of losses.

Established 123 years ago, Sears was literally the place where America shopped, as its tagline boasted.

Sears had everything from clothing and toys, to tools and appliances. It even sold housing kits. Thousands of Sears homes still stand across America today. For decades, American families eagerly awaited the delivery of the retailer’s several-inches thick mail order catalogues.

The secret to Sears’ success was being able to stay ahead of the market, according to Schrager.

From small stores in small towns, to big stores in downtowns in the 1920s; to a thriving catalogue business for smaller outposts, the main way America shopped right through to the 1950s and 60s; and then the switch to anchor stores in shopping malls through the late 1970s, Sears was always on the move, changing with the times.

But then the retailer seemed to stop evolving.

While the Walmarts and Targets of the world recognized the value of moving away from shopping centers and opening massive spaces in strip malls where customers could park right in front of the store, Sears stayed at the mall.

The competition also developed individual identities and expertise. Target became known for its upscale, fashion-oriented approach, Walmart for superior logistics in smaller towns, and Kohl’s had fashion-only soft goods, says Schrager.

Meanwhile, Sears seemed to lose its focus.

“Sears slowly lost track of its retail business by being fascinated with other things,” Schrager says. “In 1969, they began to build the tallest building in the world, that took a lot of time away from the business. They bought a stock brokerage company, which they had no business doing. They bought a real estate company, which they had no business doing. They developed a wonderful credit card called Discover, which has nothing to do with retailing.”

And along the way, the type of people at the top, the people making the business decisions, changed.

“Merchants are the lifeline of the business and Sears allowed them to wither,” Schrager says. “How do we know that? Because, after a while, Sears wasn’t getting a merchant to run the business. They were getting a financier or a marketer or someone other than a dirty-fingernails merchant who spent their life trying to beat the merchant down the street.”

Edward Lampert, Sears’ most recent CEO and majority shareholder, is a hedge fund billionaire. He took over in 2013 and expressed hopes of turning the company around.

Although Sears just filed for bankruptcy protection this week, Schrager believes the final death blow for the retailer occurred back in the early 1990s.

That’s when previous company executives decided to sell off the profitable parts of the business, while keeping the failing stores. In 1993, Sears shed the Discover credit card, its real estate company Coldwell Banker, and its Dean Witter Reynolds stock brokerage. Allstate, its insurance company, followed in 1995.

“There’s nothing left. Retail walks by you,” Schrager says. “You can’t stand still, and Sears has been standing still since 1969. That’s a very long time. The world has evolved two of three times since then…it’s over.”

While one-time competitors like Walmart, Target and Kohl’s continue to change and thrive, Kmart, which is now operated by Sears Holdings, is also in financial trouble because, Schrager says, it too failed to change with the times.

As for the one-time king of the pack, the next time consumers get excited about buying something at Sears could be when the bankruptcy court rules that the place where America once shopped must itself now be broken apart and sold off for the best possible price.

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US Again Declines to Label China a Currency Manipulator 

The Trump administration has again declined to label China a currency manipulator, but says it is keeping China and five other nations on a watch list.

“Of particular concern are China’s lack of currency transparency and the recent weakness in its currency,” U.S. Treasury Secretary Steven Mnuchin said in his biannual report to Congress.

“Those pose major challenges to achieving fairer and more balanced trade and we will continue to monitor and review China’s currency practices, including thorough ongoing discussions with the People’s Bank of China,” he said.

Mnuchin said China — along with Germany, India, Japan, South Korea and Switzerland — would be placed on a list of countries whose currency practices require what the report calls “close attention.”

Governments manipulate currency by keeping the exchange rates artificially low to make its goods and services cheaper on the world market. 

But that puts trading partners and others at a disadvantage. President Donald Trump promised throughout the campaign to label China a currency manipulator once he got into office, but so far he has declined to do so.

Instead, Trump has imposed tariffs on billions of dollars’ worth of Chinese imports to address what he says are unfair trade practices and the trade deficit.

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Magnets Might Become Miracle Cure for Pain

The traditional way for doctors to treat certain illnesses has been to prescribe medications. But as technology advances, researchers are working on new ways of treating symptoms that do not require drugs. One promising possibility: using tiny magnetic particles to treat pain. VOA’s Elizabeth Lee visited one lab at the University of California, Los Angeles, to find out how they work.

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Jubilant Customers Light Up as Marijuana Sales Begin in Canada

Jubilant customers stood in long lines for hours then lit up and celebrated on sidewalks Wednesday as Canada became the world’s largest legal marijuana marketplace.

In Toronto, people smoked joints as soon as they rolled out of bed in a big “wake and bake” celebration. In Alberta, a government website that sells pot crashed when too many people tried to place orders.

And in Montreal, Graeme Campbell welcomed the day he could easily buy all the pot he wanted. 

“It’s hard to find people to sell to me because I look like a cop,” the clean-cut, 43-year-old computer programmer said outside a newly opened pot store.

He and his friend Alex Lacrosse were smoking a joint when two police officers walked by. “I passed you a joint right in front of them and they didn’t even bat an eye,” Lacrosse told his friend.

Festivities erupted throughout the nation as Canada became the largest country on the planet with legal marijuana sales. At least 111 pot shops were expected to open Wednesday across the nation of 37 million people, with many more to come, according to an Associated Press survey of the provinces. Uruguay was the first country to legalize marijuana.

Ian Power was first in line at a store in St. John’s, but didn’t plan to smoke the one gram he bought after midnight.

“I am going to frame it and hang it on my wall,” the 46-year-old Power said. “I’m going to save it forever.”

Tom Clarke, an illegal pot dealer for three decades, opened a pot store in Portugal Cove, Newfoundland, and made his first sale to his dad. He was cheered by the crowd waiting in line.

“This is awesome. I’ve been waiting my whole life for this,” Clarke said. “I am so happy to be living in Canada right now instead of south of the border.”

Promise of pardons

The start of legal sales wasn’t the only good news for pot aficionados: Canada said it intends to pardon everyone with convictions for possessing up to 30 grams of marijuana, the newly legal threshold.

“I don’t need to be a criminal anymore, and that’s a great feeling,” Canadian singer Ashley MacIsaac said outside a government-run shop in Nova Scotia. “And my new dealer is the prime minister!”

Medical marijuana has been legal since 2001 in Canada, and Prime Minister Justin Trudeau’s government has spent the past two years working toward legalizing recreational pot to better reflect society’s changing opinion about marijuana and bring black-market operators into a regulated system.

Corey Stone and a friend got to one of the 12 stores that opened in Quebec at 3:45 a.m. to be among the first to buy pot. Hundreds later lined up.

“It’s a once-in-a-lifetime thing — you’re never ever going to be one of the first people able to buy legal recreational cannabis in Canada ever again,” said Stone, a 32-year restaurant and bar manager.

Shop in stores, online

The stores have a sterile look, like a modern clinic, with a security desk to check identification. The products are displayed in plastic or cardboard packages behind counters. Buyers can’t touch or smell the products before they buy. A small team of employees answer questions but don’t make recommendations.

“It’s a candy store, I like the experience,” said Vincent Desjardins, a 20-year-old-student who plans to apply for a job at the Montreal shop.

Canadians can also order marijuana products through websites run by provinces or private retailers and have it delivered to their home by mail.

At 12:07 a.m., the Alberta Liquor and Gaming Commission tweeted: “You like us! Our website is experiencing some heavy traffic. We are working hard to get it up and running.”

Alberta and Quebec have set the minimum age for purchase at 18, while other provinces have made it 19.

No stores will open in Ontario, which includes Toronto. The nation’s most populous province is working on its regulations and doesn’t expect stores to operate until spring.

A patchwork of regulations has spread in Canada as each province takes its own approach within the framework established by the federal government. Some provinces have government-run stores, others allow private retailers, and some have both.

Canada’s national approach allows unfettered banking for the pot industry, inter-province shipments of cannabis and billions of dollars in investment — a sharp contrast with prohibitions in the United States, where nine states have legalized recreational sales of pot and more than 30 have approved medical marijuana.

Bruce Linton, CEO of marijuana producer and retailer Canopy Growth, claims he made the first sale in Canada — less than a second after midnight in Newfoundland.

“It was extremely emotional,” he said. “Several people who work for us have been working on this for their entire adult life and several of them were in tears.”

Linton is proud that Canada is now at the forefront of the burgeoning industry.

“The last time Canada was this far ahead in anything, Alexander Graham Bell made a phone call,” said Linton, whose company recently received an investment of $4 billion from Constellation Brands, whose holdings include Corona beer and Robert Mondavi wines.

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WHO: Ebola in DRC Is Not a Global Health Emergency

An emergency committee convened by the World Health Organization has decided that the Ebola outbreak in eastern Democratic Republic of the Congo does not constitute a public health emergency of international concern.

The WHO said Wednesday that 216 cases of Ebola and 139 deaths had been reported, and its International Health Regulations Emergency Committee said the outbreak was a matter of serious concern, especially since it is occurring in an area of conflict in eastern DRC. It said this posed problems for health workers who need to move around freely and track people who are infected with the virus and need treatment.

But the committee said that one reason it did not regard the outbreak as a global threat was that the virus had not spread into neighboring countries.

Committee Chairman Robert Steffan said the international response to the outbreak had been very good. He said WHO and other agencies had achieved quite a lot since the outbreak was declared Aug. 1. In fact, he said the disease was being brought under control in North Kivu province.

The disease is flaring up in another province, and the response is being concentrated in this area, he said, “so we do have some optimism that this outbreak, just like the one in May, will be brought under control within reasonable time.”

Steffan said the committee agreed that declaring an international emergency at this time would hinder efforts to contain the Ebola virus. He said a declaration would have implications for travel and trade, making it difficult for needed experts and supplies to access the affected areas.

However, as a precaution, WHO recommended exit screenings, including at airports, ports and land crossings. But it noted that entry screenings, particularly in distant airports, would have no public health benefit and would be costly.

WHO advised DRC’s nine neighboring countries that they were at high risk of having the disease spread into their territories, and it said it was supporting them with equipment and personnel. It said these preparedness activities were expensive and would require substantial financial support from the international community.

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Tesla Secures Land in Shanghai for First Factory Outside US

Electric auto brand Tesla Inc. said it signed an agreement Wednesday to secure land in Shanghai for its first factory outside the United States, pushing ahead with development despite mounting U.S.-Chinese trade tensions.

Tesla, based on Palo Alto, California, announced plans for the Shanghai factory in July after the Chinese government said it would end restrictions on full foreign ownership of electric vehicle makers to speed up industry development.

Those plans have gone ahead despite tariff hikes by Washington and Beijing on billions of dollars of each other’s goods in a dispute over Chinese technology policy. U.S. imports targeted by Beijing’s penalties include electric cars.

China is the biggest global electric vehicle market and Tesla’s second-largest after the United States.

Tesla joins global automakers including General Motors Co., Volkswagen AG and Nissan Motor Corp. that are pouring billions of dollars into manufacturing electric vehicles in China.

Local production would eliminate risks from tariffs and other import controls. It would help Tesla develop parts suppliers to support after service and make its vehicles more appealing to mainstream Chinese buyers.

Tesla said it signed a “land transfer agreement” on a 210-acre (84-hectare) site in the Lingang district in southeastern Shanghai.

That is “an important milestone for what will be our next advanced, sustainably developed manufacturing site,” Tesla’s vice president of worldwide sales, Robin Ren, said in a statement.

Shanghai is a center of China’s auto industry and home to state-owned Shanghai Automotive Industries Corp., the main local manufacturer for GM and VW.

Tesla said earlier that production in Shanghai would begin two to three years after construction of the factory begins and eventually increase to 500,000 vehicles annually.

Tesla has yet to give a price tag but the Shanghai government said it would be the biggest foreign investment there to date. The company said in its second-quarter investor letter that construction is expected to begin within the next few quarters, with significant investment coming next year. Much of the cost will be funded with “local debt” the letter said.

Tesla’s $5 billion Nevada battery factory was financed with help from a $1.6 billion investment by battery maker Panasonic Corp.

Analysts expect Tesla to report a loss of about $200 million for the three months ending Sept. 30 following the previous quarter’s $742.7 million loss. Its CEO Elon Musk said in a Sept. 30 letter to U.S. securities regulators that the company is “very close to achieving profitability.”

Tesla’s estimated sales in China of under 15,000 vehicles in 2017 gave it a market share of less than 3 percent.

The company faces competition from Chinese brands including BYD Auto and BAIC Group that already sell tens of thousands of hybrid and pure-electric sedans and SUVs annually.

Until now, foreign automakers that wanted to manufacture in China were required to work through state-owned partners. Foreign brands balked at bringing electric vehicle technology into China to avoid having to share it with potential future competitors.

The first of the new electric models being developed by global automakers to hit the market, Nissan’s Sylphy Zero Emission, began rolling off a production line in southern China in August.

Lower-priced electric models from GM, Volkswagen and other global brands are due to hit the market starting this year, well before Tesla is up and running in Shanghai.

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Twitter Releases Tweets Showing Russian, Iranian Attempts to Influence US Politics

On Wednesday, Twitter released a collection of more than 10 million tweets related to thousands of accounts affiliated with Russia’s Internet Research Agency propaganda organization, as well as hundreds more troll accounts, including many based in Iran.

The data, analyzed and released in a report by The Atlantic Council’s Digital Forensic Research Lab, are made up of 3,841 accounts affiliated with the Russia-based Internet Research Agency, 770 other accounts potentially based in Iran as well as 10 million tweets and more than 2 million images, videos and other media.

Russian trolls targeting U.S. politics took on personas from both the left and the right. Their primary goal appears to have been to sow discord, rather than promote any particular side, presumably with a goal of weakening the United States, the report said.

DFRlab says the Russian trolls were often effective, drawing tens of thousands of retweets on certain posts including from celebrity commentators like conservative Ann Coulter.

​Some of the tweets posted:

“Judgement Day is here. Please vote #TrumpPence16 to save our great nation from destruction! #draintheswamp #TrumpForPresident,” said a fake Election Day tweet in 2016.

“Daily reminder: Trump still hasn’t imposed sanctions on Russia that were passed 4,193 in the House and 982 in the Senate. Shouldn’t that be grounds for impeachment?” said another tweet in March of this year.

Multiple goals

The Russian operation had multiple goals, including interfering in the U.S. presidential election, polarizing online communities, and weakening trust in American institutions, according to the DFRLab.

“The thing to understand is that the Russians were equal opportunity partisans,” Graham Brookie, one of the researchers behind the analysis, told VOA News. “There was a very specific focus on specific ideological communities and specific demographics.”

Following an initial push to prevent Hillary Clinton from being elected in 2016, the analysis identified a “second wave” of fake accounts, many of which were focused on infiltrating anti-Trump groups, especially those identified with the “Resistance” movement, exploiting sensitive issues such as race relations and gun violence. These often achieved greater impact than their conservative counterparts.

“Don’t ever tell me kneeling for the flag is disrespectful to our troops when Trump calls a sitting Senator “Pocahontas” in front of Native American war heroes,” tweeted an account posing as an African-American woman named “Luisa Haynes” under the handle @wokeluisa in November 2017. The tweet garnered more than 32,000 retweets and over 89,000 likes.

“They tried to inflame everybody, regardless of race, creed, politics or sexual orientation,” the Lab noted in its analysis. “On many occasions, they pushed both sides of divisive issues.”

Iran trolling

Iran’s trolling was primarily focused on promoting its own interests, including attacking regional rivals like Israel and Saudi Arabia.

However, Iran’s trolling was less effective than the Russian posts, with most tweets getting limited responses.

This was partially because of posting styles that were less inflammatory, according to the report.

“Few of the accounts showed distinctive personalities: They largely shared online articles,” according to the report. “As such, they were a poor fit for Twitter, where personal comment tends to resonate more strongly than website shares.” Generally, many troll posts were ineffective, and “their operations were washed away in the firehose of Twitter.”

All of the accounts linked to the massive trove of tweets released by Twitter have been suspended or deleted, and the analysis notes that overall activity from suspected Russian trolls fell this year after Twitter clampdowns in September and June 2017.

But, that does not mean political trolls do not still pose a threat.

“Identifying future foreign influence operations, and reducing their impact, will demand awareness and resilience from the activist communities targeted, not just the platforms and the open source community,” according to the report.

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Many CEOs Pull Out of Saudi Investment Conference

Western corporate chiefs are continuing to pull out of an investment conference in Saudi Arabia next week, distancing themselves from questions about Riyadh’s involvement in the disappearance and alleged killing of a U.S.-based Saudi journalist in Turkey.

At first, many of the business leaders reserved judgment on what happened to the missing journalist, Jamal Khashoggi. But as reports from Turkey have mounted alleging that Saudi agents tortured, killed and dismembered Khashoggi two weeks ago inside the country’s consulate in Istanbul, the chief executives have announced in recent days they will not be attending the three-day Future Investment Initiative conference in Riyadh starting Tuesday.

Saudi Arabia has denied killing Khashoggi, a critic of the country’s de facto leader, Crown Prince Mohammed bin Salman, in columns he wrote for The Washington Post. It says it will disclose the results of its investigation into his disappearance.

The conference is being organized by Saudi Arabia’s mammoth sovereign wealth fund and was being billed as a showcase for economic reforms advanced by the crown prince as he attempts to diversify the kingdom’s economy, for decades focused on its role as the world’s leading oil exporter. The gathering had been dubbed “Davos in the Desert,” after the annual meeting of world economic leaders in Switzerland.

JP Morgan chief executive Jamie Dimon and the heads of two top U.S. investment firms — BlackRock and Blackstone — have dropped out of the conference. Top executives at the Ford auto manufacturing company and the MasterCard credit company have said they won’t be going, while the Google internet search engine company said Tuesday that the head of its cloud computing business also would not be at the event.

The chiefs of European bankers BNP Paribas, Credit Suisse, HSBC, Standard Chartered and Societe Generale also rescinded acceptances to the conference.

U.S. President Donald Trump, who says Saudi Arabia should not be judged guilty in the incident while its investigation is being conducted, said Treasury Secretary Steven Mnuchin will decide by Friday whether to attend.

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UN Report: Reproductive Rights Influence Family Size

Family size is closely linked to reproductive rights, according to the State of World Population 2018 report.

The U.N. report says people in developed countries tend to have lower fertility rates because of greater access to family planning services, modern contraceptives and age-appropriate sex education.

The director of the U.N. Population Fund office in Geneva, Monica Ferro, says in places where reproductive rights are constrained, either due to lack of resources or government mandates, people have a limited ability to choose the size of their families.

“Many sub-Saharan African countries, for example, have fertility rates of four or more births per woman,” Ferro said. “At the other end of the spectrum, you have some eastern Asian and European countries with fewer than two births per women. In both cases, individuals face obstacles to the full realization of their reproductive rights.” 

The world population is expected to increase by 2.5 billion by 2050, to nearly 10 billion people, with sub-Saharan Africa expected to contribute more than half of that growth. 

Women in Africa must overcome many legal and social barriers to achieve control of their fertility, Ferro said.

“Women may not have the access to medical services,” she told VOA. “They may not have the access to child care. They may not have access to all the institutional and social support that comes with being ready or being able to plan your fertility.” 

To make freedom of choice a reality, the report urges countries to offer universal access to quality reproductive health care, including modern contraceptives and better education.

It also advocates for a change in men’s attitudes toward a woman’s right to choose the number, timing and spacing of children.

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Modified Cotton Could Be Human Food Source After US Green Light

U.S. regulators have cleared the way for farmers to grow a cotton plant genetically modified to make the cottonseed edible for people, a protein-packed potential new food source that could be especially useful in cotton-growing countries beset with malnutrition.

The U.S. Department of Agriculture Animal and Plant Health Inspection Service on Tuesday lifted the regulatory prohibition on cultivation by farmers of the cotton plant, which was developed by Texas A&M University scientists. The plant’s cottonseed cannot be used as food for people or as animal feed yet in the United States because it lacks Food and Drug Administration approval.

Cotton is widely grown around the world, with its fiber used to make textiles and the cottonseed used among other things to feed animals such as cattle and sheep that have multiple stomach chambers. Ordinary cottonseed is unfit for humans and many animals to eat because it contains high levels of gossypol, a toxic chemical.

With financial help from a cotton industry group, scientists led by Texas A&M AgriLife Research plant biotechnologist Keerti Rathore used so-called RNAi, or RNA interference, technology to “silence” a gene, virtually eliminating gossypol from the cottonseed. They left gossypol at natural levels in the rest of the plant because it guards against insects and disease.

“To me, personally, it tastes somewhat like chickpea and it could easily be used to make a tasty hummus,” Rathore said of gossypol-free cottonseed.

After cottonseed oil, which can be used for cooking, is extracted, the remaining high-protein meal from the new cotton plant can find many uses, Rathore said.

It can be turned into flour for use in breads, tortillas and other baked goods and used in protein bars, while whole cottonseed kernels, roasted and salted, can be consumed as a snack or to create a peanut butter type of paste, Rathore added.

If all of the cottonseed currently produced worldwide were used for human nutrition, it could meet the daily protein requirements of about 575 million people, Rathore said.

Other countries would have to give regulatory approval for the new cotton plant to be grown, though U.S. regulatory action often is taken into consideration.

The new cottonseed’s biggest commercial use may be as feed for poultry, swine and farmed aquatic species like fish and shrimp, Rathore said.

Many of the world’s roughly 80 cotton-producing countries, especially in Asia and Africa, have populations that face malnutrition that could be addressed with the new plant, Rathore added.

 

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US Mega Millions Lottery Jackpot Swells to $868 Million

The U.S. Mega Millions lottery jackpot swelled to $868 million, the second largest in U.S. history, after no winning ticket emerged in Tuesday night’s drawing.

The Mega Millions jackpot rose from $667 million after no one had the six numbers drawn Tuesday, extending a winless streak for the top prize that has lasted since July. The next drawing is Friday night.

The lottery prize is the largest ever for Mega Millions and the country’s second highest on record, trailing a $1.586 billion Powerball jackpot paid out in 2016.

Lottery tickets are sold in kiosks, supermarkets and gas stations in 44 U.S. states, the District of Columbia and the Virgin Islands.

The immediate cash value of the Mega Millions prize is $494.5 million. Otherwise $868 million is paid out over 29 years.

The Mega Millions jackpot has grown with each of the 24 semi-weekly drawings that failed to produce a top winner since July 24, when an 11-member office pool in Santa Clara County, California, hit a $543 million jackpot.

The odds of hitting the jackpot by matching all six numbers correctly are 1-in-302.6 million, but the odds of turning a Mega Millions ticket into a winner of any kind, including a $2 prize simply for matching the “Mega ball,” are a more down-to-earth 1-in-24.

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Hackers Accused of Ties to Russia Hit 3 E. European Companies: Cybersecurity Firm

Hackers have infected three energy and transport companies in Ukraine and Poland with sophisticated new malware and may be planning destructive cyber attacks, a software security firm said on Wednesday.

A report by researchers at Slovakia-based ESET did not attribute the hacking activity, recorded between 2015 and mid-2018, to any specific country but blamed it on a group that has been accused by Britain of having links to Russian military intelligence.

The report is the latest to raise suspicions in the West about Russia’s GRU spy agency, accused by London of conducting a “reckless campaign” of global cyber attacks and trying to kill a former Russian spy in England. Moscow denies the charges.

Investigators at ESET said the group responsible for a series of earlier attacks against the Ukrainian energy sector, which used malicious software known as BlackEnergy, had now developed and used a new malware suite called GreyEnergy.

ESET has helped investigate a series of high-profile cyber attacks on Ukraine in recent years, including those on the Ukrainian energy grid which led to power outages in late 2015.

Kiev has accused Moscow of orchestrating those attacks, while U.S. cybersecurity firm FireEye says a group known as Sandworm is thought to be responsible. Britain’s GCHQ spy agency said this month that BlackEnergy Actors and Sandworm are both names associated with the GRU.

“The important thing is that they are still active,” ESET researcher Robert Lipovsky told Reuters. “This shows that this very dangerous and persistent ‘threat actor’ is still active.”

Kremlin spokesman Dmitry Peskov said there was no evidence to support the allegations against the GRU and that Russia does not use cyber attacks against other countries.

“These are just more accusations. We are tired of denying them, because no one is listening,” he said.

After infection via emails laced with malicious weblinks or documents – a tactic known as “spear phishing” – or by compromising servers exposed to the internet, GreyEnergy allowed the attackers to map out their victim’s networks and gather confidential information such as passwords and login credentials, ESET said.

Lipovsky said his team then saw the hackers seek out critical parts of the companies’ systems, including computers which ran industrial control processes.

“It is my understanding that this was the reconnaissance and espionage phase, potentially leading up to cyber sabotage,” he said.

Global hacking campaign

The ESET report did not name the three companies infected in Ukraine and Poland, and Reuters was unable to identify them.

Ukraine’s Cyber Police confirmed the attacks on two Ukrainian companies but declined to give any further details. Polish authorities did not respond to requests for comment.

Ben Read, a senior manager on FireEye’s espionage analysis team, said his own work corroborated ESET’s report and that the Sandworm group was probably responsible.

The activity “is similar to the group we track as Sandworm,” he said. “And activity that we attribute to Sandworm has been named by the U.S. Department of Justice as being the GRU.”

Western countries including Britain and the United States issued a coordinated denunciation of Russia as a “pariah state” this month for what they described as a global hacking campaign run by the GRU.

GRU hackers have targeted institutions ranging from sports anti-doping bodies to a nuclear power company and the world chemical weapons watchdog, they said, as well as releasing the devastating “NotPetya” cyber worm which caused billions of dollars of damage worldwide in 2017.

The GRU, now formally known in Russia by a shorter acronym GU, is also accused by Britain of carrying out a nerve agent attack in England on former GRU officer Sergei Skripal. Moscow’s relations with the West have hit a post-Cold War low over Russia’s role in the conflicts in Ukraine and Syria.

Lipovsky and fellow ESET researcher Anton Cherepanov said the BlackEnergy attackers’ decision to upgrade to the new GreyEnergy malware may have been motivated by a need to cover their tracks and deflect attention from their activities.

The power outages triggered by the BlackEnergy attacks in Ukraine in December 2015 drew international attention and are recognised as the first blackout caused by a cyber attack.

“Threat actors need to switch up their arsenal from time to time,” Lipovsky said.

 

 

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Colorful Costumes and Strong Drum Beats Bring West African Dances to Baltimore

In West Africa, as in other parts of the continent, dancing is an important part of traditions. An ocean away, in Baltimore Maryland, a multi-generational family has made performing those dances part of their tradition. 

All In the Family

The Von Hendricks founded an African dance company six years ago. They named it “Keur Khaleyi”, which means the House of Children in Wolof, a language in Senegal.

The company originally featured sisters Jihan and Ayana dancing, and their brother, Shakai, on the drum. Soon, they were joined by two members of a second generation, and later, a sister-in-law. The family performs dances from Senegal, Mali and Guinea, although that is not part of their heritage.

“My granddad was German and my grandma was Jamaican,” Jihan, who also serves as the company’s art director, says.

It all started when Jihan’s parents enrolled her in an African dance school, where she picked up moves and got her siblings interested. Over the years, the West African culture became part of their identity.

“That’s why my heart really is with Senegal because those were the dances I learned,” Jihan says. “They all have different meanings, children play dance, dances done the night before the bride gets married, harvesting dances. So, these dances all have meanings.” 

Her brother Shakai’s heart is also with Senegal. He loves African drumming. “Ever since I saw it when I was 10, I was hooked,” he recalls. “(It’s) like the sound of the drum had just caught my attention. I was like ‘Wow I need to get into that.’ It took about a year for my Mom to find a company. It became something I do every day. ”

Performing together strengthens family ties and sparks creativity.

“You’re bouncing off your each other’s energy,” he adds. “It’s really good. It just made us tighter and tighter. It made it an unbreakable bond between us. It’s great. Our parents knew what they were doing. They put us into this at a young age to keep us together.”

“My happy place”

Thirteen-year old Diallo, one of the second-generation company members, dances and plays the drum. She started dancing when she was 18 months old. She says it helped her develop social skills and make friends. She likes everything about performing: the lively music, the costumes and the sense of achievement it gives her.

“Costumes are very comfortable,” she says. “They’re very bright and pretty. I really like it and I love dancing. It made me who I am. I grew up with it. It’s my happy place. I get to express my emotions when I’m dancing.”

Her mother, Jihan, says integrating younger members of the family into the company comes naturally, as they are exposed to dancing and drumming since early childhood. “We take them to conferences,” she says. “We have workshops, we bring in master dancers and drummers. So, they’re always exposed to it.”

Dance as Medicine

The Von Hendricks dance in local and national festivals, and recently started a school to teach the moves to others. Offering classes brings dancing to a larger family, the Baltimore community. 

Seventy-one-year old hair stylist, Shakoorah El Sharief is one of the students. She learned many other African dances in the past, but says she likes West African dances best. “I love everything about it. I love the drumming. I love moving with the music, it energizes me. It’s so healing. It’s very healing to the mind, the body and the soul, everything. It’s like my medicine.”

The Von Hendricks’ dream is to teach more members of their community about West African dances, and expose the youngest members of the family to their dancing and drumming traditions. That promises to keep the family dancing for many generations to come.

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Shanghai Airport Automates Check-in with Facial Recognition

It’s now possible to check in automatically at Shanghai’s Hongqiao airport using facial recognition technology, part of an ambitious rollout of facial recognition systems in China that has raised privacy concerns as Beijing pushes to become a global leader in the field. 

Shanghai Hongqiao International Airport unveiled self-service kiosks for flight and baggage check-in, security clearance and boarding powered by facial recognition technology, according to the Civil Aviation Administration of China.

Similar efforts are under way at airports in Beijing and Nanyang city, in central China’s Henan province.

Many airports in China already use facial recognition to help speed security checks, but Shanghai’s system, which debuted Monday, is being billed as the first to be fully automated.

“It is the first time in China to achieve self-service for the whole check-in process,” said Zhang Zheng, general manager of the ground services department for Spring Airlines, the first airline to adopt the system at Hongqiao airport. Currently, only Chinese identity card holders can use the technology.

Spring Airlines said Tuesday that passengers had embraced automated check-in, with 87 percent of 5,017 people who took Spring flights on Monday using the self-service kiosks, which can cut down check-in times to less than a minute and a half.

Across greater China, facial recognition is finding its way into daily life. Mainland police have used facial recognition systems to identify people of interest in crowds and nab jaywalkers, and are working to develop an integrated national system of surveillance camera data.

Chinese media are filled with reports of ever-expanding applications: A KFC outlet in Hangzhou, near Shanghai, where it’s possible to pay using facial recognition technology; a school that uses facial recognition cameras to monitor students’ reactions in class; and hundreds of ATMs in Macau equipped with facial recognition devices to curb money laundering.

But increased convenience may come at a cost in a country with few rules on how the government can use biometric data.

“Authorities are using biometric and artificial intelligence to record and track people for social control purposes,” said Maya Wang, senior China researcher for Human Rights Watch. “We are concerned about the increasing integration and use of facial recognition technologies throughout the country because it provides more and more data points for the authorities to track people.”

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Mystery Illness Causing Paralysis in Children Baffles Doctors

Federal and state health officials are baffled by a mysterious and rare illness that seems to target children, causing paralysis.

As of Tuesday, 62 cases of what doctors are calling acute flaccid myelitis have been confirmed in 22 states. Sixty-five suspected cases are being investigated.

“There is a lot we don’t know about AFM and I am frustrated that despite all of our efforts, we haven’t been able to identify the cause of this mystery illness,” Nancy Messonnier, a top official at the Centers for Disease Control, said Tuesday.

What is known about the illness is that more than 90 percent of the confirmed cases are in children 18 years old or younger. The average age of patients is 4.

Victims generally suffer from muscle weakness and some paralysis of the face, neck, back, arms and legs. The paralysis sets in about a week after the children have come down with fever and respiratory illness.

There is no specific treatment, and most of the victims recover. But the long-term effects are still unknown.

Messonnier called it a “pretty dramatic disease.”

Health experts have ruled out some causes, including poliovirus and West Nile virus.

But what is particularly confounding doctors is that the number of cases spikes only every other year — with larger numbers in 2014, 2016 and this year — and fewer cases in 2015 and 2017.

Parents are urged to have their children take basic precautions, such as washing hands and using insect spray to ward off mosquito bites. Doctors are also urging that vaccines be kept up to date.

Any child experiencing weakness or loss of muscle tone in the arms and legs should be examined immediately. 

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Uber Driver Charged with Kidnapping New York Woman

An Uber driver in New York City kidnapped a woman who fell asleep in his vehicle, groped her in the back seat and then left her on the side of a highway in Connecticut, federal authorities said Tuesday.

Harbir Parmar, 24, of Queens was charged in U.S. District Court with kidnapping. It wasn’t immediately clear whether he had an attorney.

The FBI said in court papers that Parmar picked the woman up in Manhattan at 11:30 p.m. on Feb. 21 for a trip to her home in White Plains, New York, about an hour away. The woman fell asleep, authorities said, and Parmar changed her destination to an address in Boston, Massachusetts.

The woman woke up to find the driver “with his hand under her shirt touching the top of her breast,” according to a criminal complaint unsealed Tuesday.

The woman reached for her phone, the complaint said, but Parmar took it from her and continued driving. She asked the driver to take her to the police station but the Parmar refused, the complaint said.

Parmar eventually left the woman on the side of Interstate 95 in Branford, Connecticut, about an hour’s drive east of her home. The complaint said the woman memorized Parmar’s license plate and called a cab from a nearby convenience store.

The woman later learned that Uber had charged her more than $1,000 for a trip from New York to Massachusetts.

Federal authorities and New York police condemned Parmar’s behavior as reprehensible.

“No one — man or woman — should fear such an attack when they simply hire a car service,” U.S. Attorney Geoffrey Berman said in a statement.

Uber said it blocked Parmar from using the app when the alleged kidnapping occurred.

“What’s been reported is horrible and something no person should go through. As soon as we became aware, we immediately removed this individual’s access to the platform. We have fully cooperated with law enforcement and will continue to support their investigation,” the company said in a statement.

The company’s CEO, Dara Khosrowshahi, said over the summer that he hoped to make Uber the “safest transportation platform on the planet,” after enduring years of criticism that it wasn’t doing enough to screen drivers. That included adding a new feature to the app that is supposed to alert both passengers and drivers if a car makes an unplanned stop.

The state of Colorado fined Uber $8.9 million last year for allowing people with criminal records to work as drivers. New York City requires ride-hailing service drivers to go through a licensing process similar to the one it has for traditional limo and car service drivers.

Federal authorities also charged Parmar with wire fraud, accusing him of overcharging Uber riders by inputting false information about their destinations.

The complaint said he also reported “false information” about cleaning fees that he charged to Uber riders on at least three occasions, including the woman he allegedly groped and left on the side of the road.

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US to Open Trade Talks With Britain, EU, Japan

The White House has announced plans to negotiate separate trade deals with Britain, the European Union and Japan.

“We are committed to concluding these negotiations with timely and substantive results for American workers, farmers, ranchers and businesses,” U.S. Trade Representative Robert Lighthizer said Tuesday.

He added that the White House wanted to “address both tariff and non-tariff barriers and to achieve fairer and more balanced trade.”

As required by law, Lighthizer sent three separate letters to Congress announcing the intention to open trade talks.

He wrote that the negotiations with Britain would begin “as soon as it’s ready” after Britain’s expected exit from the European Union on March 29.

Lighthizer called the economic partnership between the U.S. and EU the “largest and most complex”in the world, noting the U.S. has a $151 billion trade deficit with the EU

Writing about Japan, Lighthizer said it is “an important but still often underperforming market for U.S. exporters of goods,” noting that Washington also has a large trade deficit with Tokyo.

The top Democrat on the Senate Finance Committee, Oregon’s Ron Wyden, cautioned the administration against making what he called “quick, partial deals.” 

“The administration must take the time to tackle trade barriers comprehensively, including using this opportunity to set a high bar in areas like labor rights, environmental protection and digital trade,” he said.

President Donald Trump imposed tariffs on European steel and aluminum exports earlier this year and has threatened more tariffs on cars as a reaction to what he said were unfair deals that put the U.S. at a disadvantage.

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Earnings Reports Send US Stocks Higher

Major U.S. stock markets made strong gains Tuesday as strong earnings reports encouraged investors.

The Dow Jones industrial average gained 547.87 points, or 2.2 percent, to close at 25,798.42. The Standard & Poor’s 500 rose 59.13 points, or 2.2 percent, to 2,809.92 with all 11 sectors finishing higher. The Nasdaq composite, home to many tech stocks, jumped 214.75 points, or 2.9 percent, to 7,645.49.

New U.S. economic data showing gains in job openings and industrial production also helped buoy prices.

Tuesday’s Dow gain marked a sharp turnaround from some recent trading sessions, when worries about rising interest rates sent stock market indexes down steeply.

Those concerns also pushed down the value of European stocks, but the major indexes in France, Germany and Britain also posted gains Tuesday. 

 

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Cosmonaut Describes Aborted Soyuz Launch

Russian cosmonaut Aleksey Ovchinin says the force he felt during a Soyuz emergency landing last week was like having a concrete block on his chest.

Ovchinin and U.S. astronaut Nick Hague spoke separately Tuesday about their frightening experience when an unknown mishap caused their Russian Soyuz to abort its mission 60 kilometers (37 miles) above Kazakhstan.

The spacecraft was on its way to the International Space Station when the emergency lights flashed in the cabin just minutes into the flight.

“There was no time to be nervous because we had to work,” Ovchinin told Russian television. “We had to go through the steps that the crew has to take and prepare for emergency landing … so that the crew is still functioning after landing.”

Ovchinin recalled being violently shaken from side by side as the crew cabin separated from the rocket, followed by a force seven times stronger then gravity as the cabin plunged through the atmosphere, followed by the shock of the parachutes yanking open.

Back home in Houston, Hague told the Associated Press, “We knew that if we wanted to be successful, we needed to stay calm and we needed to execute the procedures in front of us smoothly and efficiently as we could.”

Hague said he and Ovchinin were hanging upside down when the cabin landed back on Earth. They shook hands and cracked jokes.

Neither man was hurt, and an investigation is under way to find out why the rocket failed.

Hague said he is disappointed to be back home instead of walking in space, but he’s happy to be reunited with his wife and their two young sons, and is ready to fly again as soon as NASA gives him the word.

“What can you do? Sometimes you don’t get a vote,” Hague told the Associated Press. “You just try to celebrate the little gifts that you get, like walking the boys to school this morning.”

This was the first aborted Soyuz launch in more than 30 years.

The Russian spacecraft has been the only way to send replacement crews to the International Space Station since NASA retired the space shuttle fleet in 2011.

Two private U.S. companies — Boeing and SpaceX — are working on a new generation of shuttles.

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America’s Favorite Pastime Won’t Surprise You

You could say baseball has struck out as America’s favorite pastime, because Americans would apparently rather watch TV than head to the ballpark.

Most Americans prefer to fill their spare time watching television than doing just about anything else, according to U.S. Bureau of Labor Statistics (BLS).

Nearly 80 percent of people living in the United States are watching TV on any given day. Television viewing swallows up more than half of all the time Americans spend on sports and leisure activities, according to data from the BLS’s American Time Use Survey.

From 2013 to 2017, people 15 and older spent about 2 hours and 46 minutes a day watching TV — 55.2 percent of their total spare time — when they could have been doing pretty much anything else they wanted.

That TV time includes watching recorded TV shows, live programming, DVDs, and streaming content on TVs, computers, and portable devices. It does not include time spent watching a film in a movie theater.

Men watch about a half-hour more TV than women each day.

Older people and the unemployed watch the most TV, while parents with small children watch the least. Older people and the unemployed spent the most time watching TV. Americans over the age of 65 are the nation’s biggest couch potatoes. They spend the most time — 4 and a half hours per day — in front of the tube.

TV watching also varies by geography. Residents in the American South are among the nation’s most ardent TV viewers. People living in several of the Rocky Mountain states and in the Northeast tend to watch the least.

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Keur Khaleyi Brings Traditional Senegalese Dance to Baltimore

In West Africa, like in other parts of the continent, dancing is an important part of the daily life and traditions. And in Baltimore Maryland, a multi-generational family is performing Senegalese and other West African dances. The Von Hendricks dance in local and national festivals. They recently started a school to teach the moves to others. Faith Lapidus narrates for VOA’s Faiza Elmasry.

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Anna Burns Wins Booker Prize with Troubles Tale ‘Milkman’

Anna Burns won the prestigious Man Booker Prize for fiction Tuesday with Milkman, a vibrant, violent story about men, women, conflict and power set during Northern Ireland’s years of Catholic-Protestant violence.

Burns is the first writer from Northern Ireland to win the 50,000-pound ($66,000) prize, which is open to English-language authors from around the world. She received her trophy from Camilla, Duchess of Cornwall, during a black-tie ceremony at London’s medieval Guildhall.

Milkman is narrated by a young woman dealing with an older man who uses family ties, social pressure and political loyalties as weapons of sexual coercion and harassment. It is set in the 1970s, but was published amid the global eruption of sexual misconduct allegations that sparked the #MeToo movement.

“I think this novel will help people to think about MeToo, and I like novels that help people think about current movements and challenges,” said philosopher Kwame Anthony Appiah, who chaired the judging panel. “But we think it’ll last — it’s not just about something that’s going on in this moment.

“I think it’s a very powerful novel about the damage and danger of rumor,” he added.

Burns beat five other novelists, including the bookies’ favorites: American writer Richard Powers’ tree-centric eco-epic The Overstory and Canadian novelist Esi Edugyan’s Washington Black, the story of a slave who escapes from a sugar plantation in a hot-air balloon.

The other finalists were U.S. novelist Rachel Kushner’s The Mars Room, set in a women’s prison; Robin Robertson’s The Long Take, a verse novel about a traumatized D-Day veteran; and 27-year-old British author Daisy Johnson’s Greek tragedy-inspired family saga Everything Under.

Founded in 1969, the Man Booker Prize was originally open to British, Irish and Commonwealth writers. Americans have been eligible since 2014, and there have been two American winners — Paul Beatty’s The Sellout in 2016 and George Saunders’ Lincoln in the Bardo in 2017.

A third consecutive American victor would have revived fears among some U.K. writers and publishers that the prize is becoming too U.S.-centric. But Appiah said neither the nationality nor the gender of the authors was a factor in the judges’ deliberations.

“If we had been drifting towards thinking that one of the men on the list was the best one, I wouldn’t have said ‘No, guys, we’re going to get in trouble for this’ — any more than if we’d been drifting towards an American,” he said. “We picked the one … most deserving of the prize.”

The Man Booker is always subject to intense speculation and lively betting, and has a reputation for transforming writers’ careers. Previous winners include Salman Rushdie, Ian McEwan, Arundhati Roy and Hilary Mantel.

It’s likely to bring a big boost to Burns, who is 56 years old and has published two previous novels, but is hardly a household name.

Milkman appears on the printed page as a continuous torrent with few paragraph marks, which has led some to label it experimental and challenging. But Appiah said the vivid, distinctive Belfast language in Burns’ book was “really worth savoring.”

“If you’re having difficulty, try reading it out loud,” he said. “The pleasure of it really has to do with the way that it sounds.

“It’s challenging in the way a walk up (mount) Snowdon is challenging. It’s definitely worth it, because the view is terrific when you get to the top.”

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