Cobiz

US Welcomes Sudan Power-sharing Deal as ‘Important Step Forward’

The United States on Saturday welcomed a provisional agreement forged by Sudan’s ruling military council and a coalition of opposition and protest groups to share power for three years as an “important step forward.”

The U.S. State Department said in statement that special envoy for Sudan Donald Booth will return to the region soon. The agreement brokered by the African Union and Ethiopia Union, announced on Friday, is due to be finalized on Monday.

“The agreement between the Forces for Freedom and Change and the Transitional Military Council to establish a sovereign council is an important step forward,” the State Department said. “We look forward to immediate resumption of access to the internet, establishment of the new legislature, accountability for the violent suppression of peaceful protests, and progress toward free and fair elections.”

The deal revived hopes for a peaceful transition of power in a country plagued by internal conflicts and years of economic crisis that helped to trigger the overthrow of Omar al-Bashir in April.

Relations between the military council that took over from Bashir and the Forces for Freedom and Change alliance broke down when security forces killed dozens of people as they cleared a
sit-in on June 3. But after huge protests against the military on Sunday, African mediators brokered a return to direct talks.

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Iraq Celebrates Babylon Becoming a UNESCO World Heritage Site

Iraq is celebrating the UNESCO World Heritage Committee’s decision to name the historic city of Babylon a World Heritage Site in a vote in Azerbaijan.

Friday’s vote comes after Iraq bid for years for Babylon to be added to the list of World Heritage Sites.

The city on the Euphrates River is about 85 kilometers (55 miles) south of Baghdad.

The 4,300-year-old Babylon, now mainly an archaeological ruin and two important museums, is where dynasties have risen and have fallen since the earliest days of settled human civilization.

Parliament speaker Mohammed al-Halbousi and Minister of Culture Abdul-Amir al-Hamadani congratulated the Iraqi people on the announcement.

The vote comes years after the Islamic State group damaged another Iraq World Heritage site in the country’s north, the ancient city of Hatra.
 

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Another Coal Company Bankruptcy Leaves 1,700 Workers Facing Layoffs   

The U.S. coal industry sank deeper this week as the nation’s sixth-largest coal company declared bankruptcy.

Though the Trump administration has taken measures aimed at supporting coal, six of the 10 largest coal companies have gone bankrupt since 2014.

Blackjewel LLC’s Chapter 11 filing comes just weeks after the No. 3 producer, Cloud Peak Energy, declared bankruptcy. 

The coal industry has been pummeled as electric utilities switch from coal-fired power to cleaner, cheaper natural gas and renewable energy. 

It is good news for the climate and public health. Burning coal produces more greenhouse gas emissions and other pollutants than other fuels. 

But the trend has been devastating for the coal industry and its employees. 

Blackjewel, a subsidiary of Revelation Energy, employed about 1,700 workers in four states, including Kentucky, Virginia, West Virginia and Wyoming, according to court filings. 

FILE – A farmer plants corn against a backdrop of wind turbines, June 8, 2019, in a field near Vesper, Kan.

Gas, wind, solar

In bankruptcy filings, Blackjewel blamed a “combination of an abundant, cheap and reliable alternative fuel in the form of natural gas, increased usage of renewable sources of energy,” plus stricter environmental regulations, for the coal industry’s decline. 

Coal consumption is at its lowest point in four decades. 

The dramatic rise of natural gas in the United States has undercut the economics of coal-fired power. The United States has been the world’s leading natural gas producer since 2009. 

Meanwhile, this April marked the first time coal-fired electricity generation slipped behind renewable sources,  including wind, solar and hydropower, in monthly totals.  Those figures fluctuate seasonally, but they highlight the rise of renewables and coal’s descent.

While several companies have emerged from insolvency, “You can’t say the coal industry fixed itself with bankruptcies,” said analyst Karl Cates at the Institute for Energy Economics and Financial Analysis. “It bought itself some more time. But it continues to be a sector in decline.”

FILE – Trump supporter John Berta of Oceana, W.Va., a retired coal miner, waves to the crowd at a rally with President Donald Trump, Aug. 21, 2018, at the Civic Center in Charleston W.Va.

Trump support

The Environmental Protection Agency issued a rule last month that might prolong the life of some coal-fired power plants. 

The Affordable Clean Energy rule targets greenhouse gas emissions in the electric power sector. By focusing on power plant efficiency, the EPA says, the rule will reduce emissions up to 35 percent by 2030. 

It replaces the Obama administration’s more stringent Clean Power Plan that was expected to force many coal-fired plants to close. 

Critics note that if plants do stay open longer because of the rule, they will produce more greenhouse gases, even if they are more efficient. 

Given market forces and industry trends, however, it’s not clear how many plants would avoid shutdown under the new rule.

Some coal backers are pursuing technology to capture carbon dioxide from smokestacks and bury it underground or use it to produce products. 

FILE – Sen. Shelly Moore Capito, R-W.Va., with Senate Majority Leader Mitch McConnell of Kentucky, right, and Senate Majority Whip John Cornyn of Texas, speaks to reporters on Capitol Hill in Washington, March 17, 2015.

While carbon capture, utilization and storage technology exists, it currently costs too much to make economic sense on a large scale. 

Congress has recently passed bipartisan legislation aimed at making it viable. 

“Carbon capture technologies are essential to reducing emissions while protecting jobs,” said Sen. Shelley Moore Capito, a Republican from the coal state of West Virginia and one of the bill’s lead sponsors. 

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African Migrants in Record Numbers Head for US via Latin America

Marilyne Tatang, 23, crossed nine borders in two months to reach Mexico from the West African nation of Cameroon, fleeing political violence after police torched her house, she said.

She plans soon to take a bus north for four days and then cross a 10th border, into the United States. She is not alone, a record number of fellow Africans are flying to South America and then traversing thousands of miles of highway and a treacherous tropical rainforest to reach the United States.

Tatang, who is eight months pregnant, took a raft across a river into Mexico on June 8, a day after Mexico struck a deal with U.S. President Donald Trump to do more to control the biggest flows of migrants heading north to the U.S. border in more than a decade.

Trump threats encourage migrants

The migrants vying for entry at the U.S. southern border are mainly Central Americans. But growing numbers from a handful of African countries are joining them, prompting calls from Trump and Mexico for other countries in Latin America to do their part to slow the overall flood of migrants.

As more Africans learn from relatives and friends who have made the trip that crossing Latin America to the United States is tough but not impossible, more are making the journey, and in turn are helping others follow in their footsteps, migration experts say.

Trump’s threats to clamp down on migrants have ricocheted around the globe, paradoxically spurring some to exploit what they see as a narrowing window of opportunity, said Michelle Mittelstadt, communications director for the Migration Policy Institute, a Washington-based think tank.

“This message is being heard not just in Central America, but in other parts of the world,” she said.

Record breaking numbers from Africa

Data from Mexico’s interior ministry suggests that migration from Africa this year will break records.

The number of Africans registered by Mexican authorities tripled in the first four months of 2019 compared with the same period a year ago, reaching about 1,900 people, mostly from Cameroon and the Democratic Republic of the Congo (DRC), which remains deeply unstable years after the end of a bloody regional conflict with its neighbors that led to the deaths of millions of people.

‘They would have killed me’

Tatang, a grade school teacher, said she left northwest Cameroon because of worsening violence in the English-speaking region, where separatists are battling the mostly French-speaking government for autonomy.

“It was so bad that they burned the house where I was living … they would have killed me,” she said, referring to government forces who tried to capture her.

At first, Tatang planned only to cross the border into Nigeria. Then she heard that some people had made it to the United States.

“Someone would say, ‘You can do this,’” she said. “So I asked if it was possible for someone like me too, because I’m pregnant. They said, ‘Do this, do that.’“

Tatang begged her family for money for the journey, which she said so far has cost $5,000.

Epic journey

She said her route began with a flight to Ecuador, where Cameroonians don’t need visas. Tatang went by bus and on foot through Colombia, Panama, Costa Rica, Nicaragua, Honduras and Guatemala until reaching Mexico.

She was still deciding what to do once she got to Mexico’s northern border city of Tijuana, she said, cradling her belly while seated on a concrete bench outside migration offices in the southern Mexican city of Tapachula.

“I will just ask,” she said. “I can’t say, ‘When I get there, I will do this.’ I don’t know. I’ve never been there.”

FILE – A migrant from Cameroon holds his baby while trying to enter the Siglo XXI immigrant detention center to request humanitarian visas, issued by the Mexican government, to continue to the U.S., in Tapachula, Mexico, July 5, 2019.

Reuters spoke recently with five migrants in Tapachula who were from Cameroon, DRC and Angola. Several said they traveled to Brazil as a jumping-off point.

They were a small sampling of the hundreds of people, including Haitians, Cubans, Indians and Bangladeshis, clustered outside migration offices.

Political volatility in Cameroon and the DRC in recent years has displaced hundreds of thousands of people.

People from the DRC made up the third largest group of new refugees globally last year with about 123,000 people, according to the U.N. Refugee Agency, while Cameroon’s internally displaced population grew by 447,000 people.

The number of undocumented African migrants found by authorities in Mexico quadrupled compared with five years ago, reaching nearly 3,000 people in 2018.

Most obtain a visa that allows them free passage through Mexico for 20 days, after which they cross into the United States and ask for asylum.

More families coming, too

Few choose to seek asylum in Mexico, in part because they don’t speak Spanish. Tatang said the language barrier was especially frustrating because she speaks only English, making communication difficult both with Mexican migration officials and even other Africans, such as migrants from DRC who speak primarily French.

Those who reach the United States often send advice back home, helping make the journey easier for others, said Florence Kim, spokeswoman for the International Organization for Migration in West and Central Africa.

Like their Central American migrant counterparts, some Africans are also showing up with families hoping for easier entries than as individuals, said Mittelstadt of the Migration Policy Institute.

U.S. data shows a huge spike in the number of families from countries other than Mexico, El Salvador, Guatemala and Honduras at the U.S. southern border. Between last October and May 16,000 members of families were registered, up from 1,000 for the whole of 2018, according to an analysis by the MPI.

Regional approach

The grueling Latin America trek forces migrants to spend at least a week trudging across swampland and hiking through mountainous rainforests in the lawless Darien Gap that is the only link between Panama and Colombia.

Still, the route has a key advantage: Countries in the region typically do not deport migrants from other continents partly because of the steep costs and lack of repatriation agreements with their home countries.

That relaxed attitude could change, however.

Under a deal struck with United States last month, Mexico may start a process later this month to become a safe third country, making asylum-seekers apply for refuge in Mexico and not the United States.

To lessen the load on Mexico, Mexico and the United States plan to put pressure on Central American nations to do more to prevent asylum-seekers, including African migrants, from moving north.

For the moment, however, more Africans can be expected to attempt the journey, said IOM’s Kim.

“They want to do something with their life. They feel they lack a future in their country,” she said.

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West Virginia Coal Billionaire Cline Killed in Helicopter Crash

Coal tycoon Chris Cline, who worked his way out of West Virginia’s underground mines to amass a fortune and become a major Republican donor, has died in a helicopter crash outside a string of islands he owned in the Bahamas.  
  
Cline and his daughter Kameron, 22, were on board the aircraft with five others when it went down Thursday, a spokesman for his attorney Brian Glasser said Friday.  
  
The death of the 60-year-old magnate led to eulogies from industry leaders, government officials and academics, who described Cline as a visionary who was generous with his $1.8 billion fortune. 
 
“He was a very farsighted entrepreneur,” said Bill Raney, president of the West Virginia Coal Association. “Chris was just one of those folks who had the Midas touch.”  
  
Raney said Cline began toiling in the mines of southern West Virginia at a young age, rising through the ranks of his father’s company quickly with a reserved demeanor and savvy business moves.  
  
He formed his own energy development business, the Cline Group, which grew into one of the country’s top coal producers.  

Investment switch
  
When he thought mining in the Appalachian region was drying up, he started buying reserves in the Illinois Basin in what turned out to be a smart investment in high-sulfur coal, according to the website of Missouri-based Foresight Energy, a company he formed. 
  
Cline sold most of his interest in Foresight for $1.4 billion and then dropped $150 million into a metallurgical coal mine in Nova Scotia, according to a 2017 Forbes article titled “Chris Cline Could Be The Last Coal Tycoon Standing.”  
  
The piece captured his opulence: A mansion in West Virginia with a man-made lake big enough to ski on and a pasture that included a while stallion stud name Fabio. A gun collection so deep that federal officials would take stock once a month. A 200-foot (61-meter) yacht called Mine Games. 
 
His deep pockets eventually opened to politics: He donated heavily to President Donald Trump and other Republicans. Cline gave the president’s inaugural committee $1 million in 2017 and shared thousands more with conservative groups as well as committees representing GOP figures such as Senate Majority Leader Mitch McConnell and Florida Sen. Marco Rubio, according to federal records. 
 
He also gave to academia, bestowing at least $8.5 million on Marshall University in West Virginia. 
 
“Our hearts are heavy,” said Marshall University President Jerome A. Gilbert. “Chris’s generosity to our research and athletics programs has made a mark on Marshall University and our students for many years to come.” 
 

In this photo released by the Bahamas ZNS Network, employees oversee the arrival of the bodies of four women and three men, including billionaire coal entrepreneur Chris Cline and his daughter, at the airport in Nassau, Bahamas, July 5, 2019.

Authorities began searching for the helicopter after police received a report from Florida that Cline’s aircraft failed to arrive in Fort Lauderdale as expected on Thursday, Bahamas Police Supt. Shanta Knowles told The Associated Press. 
  
The bodies of the four women and three men were recovered Thursday and taken to the Bahamian capital of Nassau to be officially identified, said Delvin Major, chief investigator for the Bahamas’ Air Accident Investigation Department. The Augusta AW139 helicopter was still in the water on Friday, and based on preliminary information, she did not believe there had been a distress call before the helicopter went down. The cause of the crash is still undetermined, officials said.  
  
A Royal Bahamas Police Force statement said authorities and locals found the site 2 miles (3 kilometers) off Big Grand Cay, a group of private islands Cline bought in 2014 for less than the $11.5 million asking price.  
  
Bahamas real estate agent John Christie, who sold the land, said Big Grand Cay was developed by the late Robert Abplanalp, inventor of the modern aerosol spray valve and a friend of President Richard Nixon. The property became known as an escape for Nixon in the 1970s.  
  
Big Grand Cay comprises about 213 acres (86 hectares) distributed over about half a dozen narrow islands. At the time of its sale, the property’s mansion sat on a bluff overlooking the ocean and had five bedrooms and four bathrooms.  

Governor mourns
  
West Virginia Gov. Jim Justice mourned Cline’s loss, first in a tweet he sent out Thursday in which he noted that his and Cline’s families had been very close for years.  
  
“Today we lost a WV superstar and I lost a very close friend,” Justice wrote in the tweet. “Chris Cline built an empire and on every occasion was always there to give. What a wonderful, loving, and giving man.”  
  
Cline, in his Forbes profile, defended coal and waved off some of the scientific evidence of climate change when he wasn’t posing for photos in front of tall pyramids of the black stuff.  
  
“People deserve the cheapest energy they can get,” he said. “Tell the poor in India and China that they don’t deserve to have reliable, affordable electricity.”  
  
And to that effect, he also spoke about solar panels, wind turbines and Tesla batteries on Big Grand Cay, saying “Where it makes sense, I’m absolutely for it.” 

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California Towns Survey Quake Damage as Shocks Persist

Communities in the Mojave Desert tallied damage and made emergency repairs to cracked roads and broken pipes Friday as aftershocks from Southern California’s largest earthquake in 20 years kept rumbling. 
 
The small town of Ridgecrest, close to the epicenter, assessed damage after several fires and multiple injuries that were blamed on the magnitude 6.4 quake. A shelter drew 28 people overnight, but not all of them slept inside amid the shaking. 
 
“Some people slept outside in tents because they were so nervous,” said Marium Mohiuddin of the American Red Cross. 
 
Damage appeared limited to desert areas, although the quake was felt widely, including in the Los Angeles region 150 miles (240 kilometers) away. The largest aftershock thus far — magnitude 5.4 — was also felt in L.A. before dawn Friday. 
 
Hospital closed 

Ridgecrest Regional Hospital remained closed as state inspectors assessed it, spokeswoman Jayde Glenn said. The hospital’s own review found no structural damage, but there were cracks in walls, broken water pipes and water damage. 
 
The hospital was prepared to help women in labor and to give triage care to emergency patients, Fifteen patients were evacuated to other hospitals after the quake, Glenn said. 
 

Workers repair lines that were broken during a powerful earthquake that struck Southern California, near the epicenter, northeast of the city of Ridgecrest, July 5, 2019.

The quake did not appear to have caused major damage to roads and bridges in the area, but it did open three cracks across a short stretch of State Route 178 near the tiny town of Trona, said Christine Knadler, spokeswoman for the California Department of Transportation’s District Nine. 
 
Those cracks were temporarily sealed, but engineers were investigating whether the two-lane highway was damaged beneath the cracks, Knadler said. Bridges in the area were also being checked. 
 
The Ridgecrest library was closed as volunteers and staff picked up hundreds of books that fell off shelves. The building’s cinderblock walls also had some cracks, said Charissa Wagner, library branch supervisor. 
 
Wagner was at her home in the city of 29,000 people when a small foreshock hit, followed by the large one, putting her and her 11-year-old daughter on edge. 
 
“The little one was like, ‘Oh, what just happened?’ The big one came later and that was scarier,” she said. 
 
Naval air station OK so far 

The nearby Naval Air Weapons Station China Lake said in a statement late Thursday that no injuries were reported and so far all buildings had been found to be intact, but assessments continued across its vast acreage. Its workforce was ordered to not report on Friday. 
 

The ruins of a house that burned after a powerful earthquake struck Southern California are seen in the city of Ridgecrest, July 5, 2019.

The earthquake knocked over a boulder that sat atop one of the rock spires at the Trona Pinnacles outside Ridgecrest, a collection of towering rock formations that has been featured in commercials and films, said Martha Maciel, a Bureau of Land Management spokeswoman in California. 
 
Meanwhile, Los Angeles revealed plans to lower slightly the threshold for public alerts from its earthquake early warning app. But officials said the change was in the works before the quake, which gave scientists at the California Institute of Technology’s seismology lab 48 seconds of warning but did not trigger a public notification. 
 
“Our goal is to alert people who might experience potentially damaging shaking, not just feel the shaking,” said Robert de Groot, a spokesman for the U.S. Geological Survey’s ShakeAlert system, which is being developed for California, Oregon and Washington. 
 
The West Coast ShakeAlert system has provided non-public earthquake notifications daily to many test users, including emergency agencies, industries, transportation systems and schools. 
 
Late last year, Los Angeles released a mobile app intended to provide ShakeAlert warnings for users within Los Angeles County. 
 
The trigger threshold for L.A.’s app required a magnitude 5 or greater and an estimate of level 4 on the separate Modified Mercali Intensity scale, the level at which there is potentially damaging shaking. 
 
Although Thursday’s quake was well above magnitude 5, the expected shaking for the Los Angeles area was level 3, de Groot said. 
 
A revision of the magnitude threshold down to 4.5 was already underway, but the shaking intensity level will remain at 4. The rationale is to avoid numerous ShakeAlerts for small earthquakes that do not affect people. 
 
“If people get saturated with these messages, it’s going to make people not care as much,” he said. 

Monitoring network 
 
Construction of a network of seismic-monitoring stations for the West Coast is just over half complete, with most of the coverage in Southern California, the San Francisco Bay area and the Seattle-Tacoma area. Eventually, the system will send out alerts over the same system used for Amber Alerts to defined areas that are expected to be affected by a quake, de Groot said. 
 
California is partnering with the federal government to build the statewide earthquake warning system, with the goal of turning it on by June 2021. The state has already spent at least $25 million building it, including installing hundreds of seismic stations throughout the state. 
 
This year, Democratic Gov. Gavin Newsom said the state needed $16.3 million to finish the project, which included money for stations to monitor seismic activity, plus nearly $7 million for “outreach and education.” The state Legislature approved the funding last month, and Newsom signed it into law. 

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A Celebration of Independence, in Trump Fashion

America’s annual Independence Day is celebrated a bit differently in Washington, D.C., this year, with a display of military might and a speech about patriotism by U.S. President Donald Trump. The event draws Trump supporters, as well as protesters who accuse the president of politicizing a nonpartisan holiday and wasting taxpayer money. White House Correspondent Patsy Widakuswara has the story.

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German Fire Exercise Aims to Prevent Notre Dame Tragedy

A single cigarette may have started the April fire that destroyed much of Notre Dame Cathedral in Paris.  Flames tore through the global tourist destination as firefighters struggled to find and extinguish their source.  German authorities want to make sure what happened in France, doesn’t happen there.  Arash Arabasadi has more.

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https://www.voltron.voanews.com/node/3941531/edit?destination=/admin/content%3Ftype%3Dvideo_episode#edit-group-teaser-contentAntarctic Sea Ice Plunges from Record High to Record Lows

The amount of sea ice around Antarctica has plunged from a record high to a record low in just three years, according to a new report released this week by the U.S. space agency NASA. Faith Lapidus reports scientists are not sure why.

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Magnitude 6.4 Earthquake Shakes Southern California

A magnitude 6.4 earthquake rocked southern California Thursday morning, centered near the desert community of Ridgecrest, 180 kilometers northeast of Los Angeles. As Mike O’Sullivan reports, some people suffered minor injuries, and aftershocks continue to shake the region.

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Sudan Military, Opposition Agree to Share Power

Sudan’s ruling military council and a coalition of opposition and protest groups reached an agreement to share power during a transition period leading to elections, setting off street celebrations by thousands of people.

The two sides, which have held talks in Khartoum for the past two days, agreed to “establish a sovereign council by rotation between the military and civilians for a period of three years or slightly more,” African Union mediator Mohamed Hassan Lebatt said at a news conference.

They also agreed to form an independent technocratic government and to launch a transparent, independent investigation into violent events in recent weeks.

The two sides agreed to postpone the establishment of a legislative council. They had previously agreed that the Forces for Freedom and Change (FFC) coalition would take two-thirds of a legislative council’s seats before security forces crushed a sit-in protest June 3, killing dozens, and talks collapsed.

Joy in the streets

The streets of Omdurman, Khartoum’s twin city across the Nile River, erupted in celebration when the news broke, a Reuters witness said. Thousands of people of all ages took to the streets, chanting “Civilian! Civilian! Civilian!”

Young men banged drums, people honked their car horns, and women carrying Sudanese flags ululated in jubilation.

“This agreement opens the way for the formation of the institutions of the transitional authority, and we hope that this is the beginning of a new era,” said Omar al-Degair, a leader of the FFC.

Sudanese Gen. Mohammed Hamdan Dagalo, the deputy head of the military council, speaks during a rally to support the new military council that assumed power in Sudan after the overthrow of President Omar al-Bashir, in Khartoum, Sudan, June 16, 2019.

“We would like to reassure all political forces, armed movements and all those who participated in the change from young men and women — that this agreement will be comprehensive and will not exclude anyone,” said General Mohamed Hamdan Dagalo, deputy head of the Transitional Military Council.

“We thank the African and Ethiopian mediators for their efforts and patience. We also thank our brothers in the Forces for Freedom and Change for the good spirit,” said Dagalo, who heads the Rapid Support Forces accused by the FFC of crushing the sit-in.

Talks resumed

The AU and Ethiopia made intensive efforts to bring the generals and the protesters back to the negotiating table.

Negotiations resumed earlier this week, following massive protests last weekend in which tens of thousands of demonstrators flooded the streets of Sudan’s main cities in the biggest numbers since the razing of the protesters’ sit-in camp. At least 11 people were killed in clashes with security forces, according to protest organizers.

The U.N. High Commissioner for Human Rights Michelle Bachelet on Wednesday had called on Sudanese authorities to lift restrictions on the internet and properly investigate all acts of violence and allegations of excessive use of force.

More than 250 people have been killed since an uprising erupted against al-Bashir in December, according to protest organizers. The military overthrew the longtime ruler in April, but protesters remained in the streets, fearing the generals intended to cling to power or preserve some form of authoritarian rule.

The Associated Press contributed to this report.

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Vietnam Asks Firms to Use Local Materials as US Threatens Tariffs

Vietnamese manufacturers should use domestically-sourced raw materials to avoid incurring U.S. tariffs, Vietnam’s foreign ministry said on Thursday, days after Washington said it would impose large duties on some steel products shipped through the Southeast Asian country.

The U.S. Commerce Department said on Tuesday it would slap tariffs of up to 456% on certain steel produced in South Korea or Taiwan which are then shipped to Vietnam for minor processing and finally exported to the United States.

“The Ministry of Industry and Trade has warned local companies about possible moves by importing countries, including the United States, to apply stricter requirements in trade protection cases,” Foreign Ministry spokeswoman Le Thi Thu Hang said at a routine news conference in Hanoi.

Vietnamese companies should consider business strategies that include switching to domestic materials, she said.

Hang said Vietnam will continue to work with the United States in its efforts to crack down on goods of foreign origin illegally relabeled “Made in Vietnam” by exporters seeking to dodge tariffs.

Vietnam has been touted as one of the largest beneficiaries of the ongoing trade war between the United States and China, but recent comments from U.S. President Donald Trump have led some to believe that Vietnam may be the next target of U.S. tariffs.

Last month, Trump said Hanoi treated the United States “even worse” than China, amid the ongoing trade spat between Washington and Beijing.

Vietnam responded by saying it was committed to free and fair trade with the United States.

Vietnam’s largest export market is the United States, with which it has a rapidly growing trade surplus, which widened to $17 billion in the first five months of this year from $12.9
billion in the same period last year.
 

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Warning Light Flashing for Slovakia’s Auto Industry

When David landed an assembly line job at Volkswagen’s Bratislava factory, his colleagues congratulated him on securing a well-paid position he could ride to retirement.

Two years later, he is among the 3,000 workers being laid off at the plant that produces the Volkswagen Touareg and Porsche Cayenne in a round of job cuts that has sent shockwaves through Slovakia, the world’s biggest car producer per capita.

“All my colleagues were saying there’s nothing to worry about, if I get used to the work load and work pace, the salary will gradually increase and I will have a stable job until retirement,” said David, who declined to give his last name.

“And suddenly I get a call from human resources and learn that I’m being let go.”

The job losses at the factory, Slovakia’s largest private sector employer, underline the challenges the country faces to keep the engine revving in an industry that accounts for about 12% of annual economic output and more than one in ten jobs.

Competition from lower-cost southeastern European markets, a shift to electric vehicles and global trade tensions are among the headwinds buffetting the small central European nation as automakers mull where to launch future production lines.

Volkswagen itself is looking at building a new plant in eastern Europe, with trade publications citing Bulgaria, Serbia and Turkey as the most likely locations.

While David found a job at another carmaker, the layoffs at the Bratislava plant, which also makes the Audi Q7 and Q8 models, have put the government on alert.

“To use a car metaphor, we see a warning light, we don’t need to take the car for a general repair yet,” economy minister Peter Ziga told Reuters.

“We have 300,000 people working in the car sector (directly and indirectly). Should anything happen to them it would be serious.”

The uncertainty has spurred unions, which have previously pushed for big wage increases, to change tack.

“At the moment, we do not focus on salaries, the priority is job stability,” Volkswagen union chief Zoroslav Smolinsky told Reuters. “We need to wait out the worse times and wait for the better times.”

COMPETITIVE EDGE

Seeking to bolster an auto industry that accounts for 44% of industrial output and 40% of exports, the government has approved subsidies to boost the sale of electric cars and announced tax breaks of up to 200% of the amount invested in research and development.

But at the same time, moves to raise the minimum wage and increase bonuses for night shifts introduced last year are making Slovakia less competitive, said Jan Pribula, secretary general of the Slovak Automotive Industry Association.

“This is the time when companies are deciding who gets new models in seven years,” said Pribula, whose group represents Slovakia’s four carmakers – Volkswagen, PSA Group, Kia Motors and Jaguar Land Rover – along with suppliers, research institutes and importers.

“It is important to send a signal that we are responsible because now we are gradually losing a competitive edge.”

Slovakia is not the only central European country facing such challenges. Fellow European Union members the Czech Republic, home to Volkswagen’s Skoda brand, and Hungary, where both BMW and Daimler have plants, rely heavily on investment from foreign automakers.

A brewing global trade war is a particular concern for such countries, given their high reliance on foreign trade, European Central Bank President Mario Draghi said earlier this month.

Deloitte Chief Economist David Marek has said a 25% tariff on U.S. imports of cars from Europe would cut the revenue of the Czech auto industry by 12 billion crowns ($532 million) a year.

Poland, the region’s biggest economy, is betting on electric vehicles, setting a target of having 1 million such cars and vans on the road by 2025 and highlighting a battle for investment as the auto industry embraces new technologies.

At the same time, faltering global growth has led some carmakers to put expansion plans on hold, such as Daimler’s announcement in May to postpone an increase in capacity at its Kecskemet compact-car plant in Hungary.

“It has been taken for granted that plants like Bratislava would just carry on and produce the next generation model,” Carol Thomas, an auto analyst at LMC Automotive, told Reuters.

“But we can’t just assume that anymore. Plants will not only have to fight for new models, they will also face greater competition to retain new generations of models they already produce.”

So far this year, Volkswagen has scaled back production lines in Bratislava and returned workers borrowed from Hungary’s Audi plant in 2016.

“This is the key year that will decide the future of the Slovak factory,” VW Slovak Chief Executive Oliver Grunberg said, adding a decision was expected by the end of the year.

“Improvements in Slovakia’s business environment would help increase attractiveness of Bratislava’s plant.”

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India Plans $330B Renewables Push by 2030 Without Hurting Coal

India said on Thursday it needs $330 billion in investments over the next decade to power its renewable energy dream, but coal would remain central to its electricity generation.

The energy guzzling country wants to raise its renewable energy capacity to 500 Gigawatts (GW), or 40% of total capacity, by 2030. Renewables currently account for 22% of India’s total installed capacity of about 357 GW.

“Additional investments in renewable plants up to year 2022 would be about $80 billion at today’s prices and an investment of around $250 billion would be required for the period 2023-2030,” according to the government’s economic survey presented to parliament on Thursday.

India wants to have 175 GW of renewable-based installed power capacity by 2022.

 The investment estimate reflects the magnitude of financial challenges facing one of the world’s most important growth markets for renewable energy, with government data indicating a growth slowdown in private and capital investments in the year ended March 2019.

India, which receives twice as much sunshine as European countries, wants to make solar a cornerstone of its renewable expansion, but also wants to make use of its cheap and abundant coal reserves, the fifth-largest in the world.

  The annual economic survey warned India against abruptly halting coal-based utilities, citing risks to its banking sector and the stability of the electricity grid.

“It may not be advisable to effect a sudden abandonment of coal based power plants without complete utilization of their useful lifetimes as it would lead to stranding of assets that can have further adverse impact on the banking sector,” the survey said.

Thermal power plants account for 80% of all industrial emissions of particulate matter, sulfur and nitrous oxides in India. India, one of the world’s largest coal producers and greenhouse gas emitters, estimates coal to be its energy mainstay for at least the next three decades. The country’s coal use rose 9.1% to nearly a billion tons in 2018-19.

The survey said it would be difficult for a growing economy like India to migrate to renewable power supply unless “sufficient technological breakthrough in energy storage happens in the near future”.

Environmentalists worry that India’s rising use of coal at a time when many Western nations are rejecting the dirty fossil fuel will hamper the global fight against climate change, despite the country’s commitment to renewable energy.

 

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Malaysian ex-PM Stepson to be Charged With Money Laundering

Malaysia’s anti-graft agency said Thursday it has detained Riza Aziz, the stepson of former Prime Minister Najib Razak and a Hollywood film producer, and will charge him with money laundering.

Anti-Corruption Commission chief Latheefa Koya said Riza was picked up Thursday but has been released on bail.

“He has to appear before the court tomorrow to face charges under AMLA,” she said, referring to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. She declined to give details.

Riza was quizzed last July by the agency over alleged theft and money laundering at the 1MDB state investment fund.

U.S. investigators say Riza’s company, Red Granite Pictures Inc., used money stolen from 1MDB to finance Hollywood films including the Martin Scorsese-directed “The Wolf of Wall Street.” Red Granite has paid the U.S. government $60 million to settle claims it benefited from the 1MDB scandal.

Alleged corruption at the 1MDB fund helped bring on the unexpected defeat of Najib’s coalition in May 9 polls last year. The new government reopened investigations that were stifled while Najib was in office.

Najib is currently on trial for alleged criminal breach of trust, abuse of power and money laundering linked to 1MDB. He denies the charges. His wife, Rosmah Mansor, also has pleaded not guilty to money laundering and tax evasion related to 1MDB but her trial date has not been set.

Najib’s daughter, Nooryana Najwa, slammed the legal action against her brother.

“Despite the settlement in the U.S. and the fact that alleged wrongdoings occurred entirely outside of Malaysia, the MACC decides to press charges after a whole year of leaving this case in cold storage. He is not a criminal,” she wrote on Instagram, accompanied by a picture of her with Riza taken earlier Thursday before his arrest.

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US Deports 37 Cambodian Refugees After Criminal Convictions

Thirty-seven Cambodian deported by the United States arrived in Phnom Penh on Thursday, 32 of them refugees who fled during the rule of the genocidal Khmer Rouge in the 1970s or war that followed their ouster, an aid group said.

Thousands of Cambodian refugees started new lives in the United States after fleeing the Khmer Rouge’s 1975-1979 reign of terror, in which up to 2 million people are believed to have been killed or died of overwork and starvation, and subsequent chaos.

Some of them, after spending most of their lives in the United States, are sent back to a homeland they hardly know after running afoul of U.S. law.

“They — their families, actually — fled the terrors of the Khmer Rouge era and post — Khmer Rouge chaos. Many were born in Thai refugee camps,” said Bill Herod, spokesman for the Khmer Vulnerability Aid Organization (KVAO), a group that helps Cambodian deportees adjust after being sent back from the United States.

Cambodian Prime Minister Hun Sen has in the past criticized the United States over the deportations and accused it of breaking up the families of those forced to leave.

Thirty-five of the 37 deportees were convicted criminals who were sent back to Cambodia via a U.S. Immigration and Customs Enforcement (ICE) flight from Dallas, ICE said in a statement on
its website.

ICE said it had increased the number of Cambodian immigrants it had deported from 2017 to 2018 by 279%. There are still about 1,900 Cambodians in the United States who are subject to deportation, of which 1,400 are convicted criminals, according to ICE.

“All of them have served time in prison for felony convictions. Some come directly from prison, but most completed their sentences long ago and were living freely at the time they were detained for deportation,” Herod said of the deportees who arrived on Thursday.

U.S. President Donald Trump’s administration has already deported thousands of people from Vietnam and Cambodia with criminal records as part of broader attempts to limit immigration to the United States.

The United States has been seeking to send thousands of immigrants from Vietnam back to the communist-ruled country despite a bilateral agreement that should protect most from deportation.

Trump has made illegal immigration a centerpiece of his administration and is highlighting the issue as he aims for re-election in 2020.

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White House Blasts Seattle Judge’s Ruling on Asylum-Seekers

The White House is blasting a Seattle judge’s ruling that says the Trump administration can’t indefinitely lock up migrants who are seeking asylum without giving them a chance to be released on bond.

U.S. District Judge Marsha Pechman on Tuesday blocked a new administration policy saying that asylum-seekers will no longer get bond hearings but instead must remain in custody as they pursue their claims. 
 
She said it’s unconstitutional for the government to detain people without demonstrating it’s necessary.

White House press secretary Stephanie Grisham issued a statement Wednesday calling the ruling “at war with the rule of law.” She says it “only incentivizes smugglers and traffickers.”

American Civil Liberties Union lawyer Michael Tan says the ruling “upholds the law against this administration’s ongoing attempts to violate it.”
 

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Ben Gurion Incident Exposes West’s Vulnerability to GPS Disruption 

This story originated in VOA’s Ukrainian service.

A spate of GPS disruptions at Tel Aviv’s Ben Gurion Airport has confirmed what several prominent tech analysts have long feared: that Western nations, and the U.S. in particular, are unusually vulnerable to foreign meddling with location-based technology. 
 
Most location-based software programs, such as the U.S.’s Global Positioning System (GPS), the European Union’s Galileo, China’s BeiDou and Russia’s Glonass, depend on the Global Navigation Satellite System (GNSS), the vast network of international satellites orbiting the Earth. 
 
The technology plays an integral part in our everyday lives, affecting such things as personal phone use, car navigation, international shipping, air travel, power grids, financial markets, and law enforcement and emergency response services. It’s also vital to military operations. 
 
So it is no surprise that authorities were alarmed last week when several aircraft flying near Ben Gurion reported disruption to their satellite navigation systems. Officials said they thought the disruptions were caused by signals emanating from Syria, where Russian forces are involved in that nation’s long-running civil war. 
 

FILE – A U.S. soldier in Kuwait holds a GPS navigation device.

Russian diplomats ridiculed the claim, but it was not the first time their country has been singled out. A report issued in March by the Washington-based Center for Advanced Defense Studies (C4ADS) charged that Russia has been hacking non-Russian navigation systems on an extraordinary scale. 
 
Since February 2016, C4ADS analysts reported, Russian intelligence had meddled with GPS equipment aboard 1,311 civilian ships. The report said 9,883 hacking incidents were reported or detected by maritime vessels or aircraft in 2017, with most of the incidents involving planes and ships near the Black Sea, Russia and Syria. 
 
Beyond pinpointing geographic coordinates, GNSS is also used for precision timing, a feature that can also be hacked and manipulated. Various cybersecurity and automotive trade journals reported in March that an unknown entity hacked the GPS systems in a range of high-end cars featured at the annual Geneva Motor Show, programming the cars to report a location of Buckingham, England, in the year 2036. 
 
How it works 
 
GPS spoofing is an attack in which a radio transmitter located near the target is used to send out false GPS signals. Using tools that are cheap and easily accessible online, the attacker can transmit inaccurate coordinates or no data at all. 
 
Russia has been known to protectively scramble radio signal devices near sensitive state facilities or along routes traveled by VIPs. For example, multiple ships reported phony geographic coordinates in the Kerch Strait on the day that Russian President Vladimir Putin drove a truck across a newly completed bridge to Russian-annexed Crimea. 
 
But some analysts say the scale of recent disruptions indicates that Russia is taking its coordinates-spoofing game to another level, methodically calculating the damage it can inflict on unprotected systems in case of conflict. 

FILE – A Ukrainian sailor, right, is escorted by a Russian FSB officer to a courtroom in Simferopol, Crimea, Nov. 27, 2018. Russians captured Ukrainian seamen and their vessels two days earlier as they were about to transit the Kerch Strait.

“A ship that has falsified information navigating through the Kerch Strait, for instance, would be at a much greater risk of colliding with another ship or of potentially violating some sort of territorial water regime,” said Thomas Ewing, C4ADS chief analyst, referring to a Nov. 25 incident in which Russia seized three Ukrainian navy vessels near the Kerch Strait and detained their crews. 
 
Ewing also said evidence of spoofed coordinates had been recorded by U.S. forces in Syria, suggesting that Russia may be hacking satellite networks as part of its electronic warfare campaigns. There have also been reports of Russian spoofing of GPS signals during the Russian military training exercise Zapad in 2017 and NATO’s Trident Juncture in 2018. 
 
“Our report details a number of Russian assets that are designed to interfere with GNSS as part of a general electronic warfare capability,” Ewing told VOA.  
 
Some analysts have questioned why Russian intelligence would meddle with commercial airliners servicing Tel Aviv, the most populous city in a country with which the Kremlin seeks friendly relations.
 
Others, however, say formal attribution to a malign state actor is beside the point. 
 
“The basic danger is that when your positioning, navigation or timing information is falsified, you could make a decision based on information that doesn’t correspond to reality,” said Ewing, explaining that spoofed coordinates could easily spark an international dispute. 
 
Dana Goward, president of the U.S. Resilient Navigation and Timing Foundation, said the U.S. remains particularly vulnerable. 
 
Because American engineers designed GPS to be used by everyone, its signal characteristics are routinely published and easily accessible. That makes them easier to imitate than signals relayed by mainly ground-based positioning systems in China and Russia. 
 
America’s ‘gift to the world’ 
 
“I think that European countries and the United States are especially vulnerable because Russia, China, Saudi Arabia and South Korea have alternate navigation systems that transmit from the ground,” Goward told VOA’s Ukrainian service. He said those systems “have very high power and are very difficult to disrupt. So those countries are not nearly as dependent upon satellite navigation as Europe and the United States.”  
 
Asked about the erroneous coordinates reported by vessels in the Kerch Strait and along the Syrian coast, Goward said he thought Russia was using the vulnerabilities of the technology to demonstrate its power. 
 

FILE – A GPS station is seen in the Inyo Mountains of California. (S. Lawrence/UNAVCO)

“America likes to think of GPS as its gift to the world,” he said. “But by doing this, Russia is saying to the whole world that ‘we can take that away from you with a flip of a switch, so America’s gift is not so great.’ So they’re certainly using it as an instrument of strategic state power as well.” 
 
To protect itself, Goward said, the United States should increase its protection of GPS frequencies, use only high-quality receivers that can resist jamming and spoofing, and augment the GPSS with a ground-based system that would be harder to disrupt.  
 
The incident in Ben Gurion again attracted attention to the need to create a fully functional backup system for GPS, Goward said. “It is fortunate that aviation has a terrestrial electronic navigation system it can rely upon when GPS is not available,” Goward said. He praised the 2001 U.S. Department of Transportation decision not to give up the terrestrial system completely in favor of the GPS-based one. 
 
U.S. policy has called for maintaining an effective backup system since 2004, but experts say its full implementation is still in the works both in the United States and Europe.  
 
According to the Military Times newspaper, the U.S. Army’s 2nd Cavalry Regiment in Germany will field test jam-resistant positioning, navigation and timing gear in September, including a Selective Availability Anti-Spoofing Module in some vehicles.

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Frenchman Takes Groping Complaint Case to Vatican

One of a half-dozen men who have accused the Vatican’s ambassador to France of groping them said Wednesday he plans to take his legal complaint directly to the Vatican, alleging the Holy See had invoked diplomatic immunity for the high-ranking churchman in a French criminal probe.

Mathieu De La Souchere filed a police report in Paris earlier this year accusing Archbishop Luigi Ventura of touching his buttocks repeatedly during a Jan. 17 reception at Paris City Hall. De La Souchere met with one of Pope Francis’ sex abuse advisers about the allegations Wednesday.

The Paris prosecutor’s office has opened an investigation into alleged sexual aggression. The Vatican said Ventura was cooperating with the investigation. But De La Souchere said the French case was essentially stalled over the immunity question.

“The French government’s request to the Vatican to lift the diplomatic immunity remained unanswered,” he told The Associated Press.

De La Souchere said his lawyer plans to file a complaint with the Vatican City State’s criminal tribunal next week. The tribunal largely follows the Italian penal code and is separate from the Congregation for the Doctrine of the Faith, which handles sex abuse-related crimes under the Catholic Church’s canon law.

“This new judicial step here in the Vatican, we hope, will be one more step toward the trial that we all the victims in France are waiting for,” De La Souchere said after meeting with the Rev. Hans Zollner, a founding member of the Pontifical Commission for the Protection of Minors.

De La Souchere met with Zollner and another man who has accused Ventura. Catholic online site Crux has said as many as a half-dozen men have accused Ventura of unwanted groping over the course of his diplomatic postings, which have included Canada and Chile.

Ventura has repeatedly denied wrongdoing. His French lawyer, Bertrand Ollivier, did not respond to requests for comment Wednesday.

The archbishop’s whereabouts are unknown, but he attended a meeting at the Vatican last month of all the Holy See’s apostolic nuncios, or ambassadors.

Vatican spokesman Alessandro Gisotti said Ventura “has fully and voluntarily cooperated with French judicial authorities who are in charge of his case, and will continue to do so.” He didn’t immediately respond when asked about the status of Ventura’s immunity.

Ventura did agree to investigators’ request to take part in a “confrontation” with his accusers in May, according to French media reports. All accused him of putting his hands on their buttocks, sometimes repeatedly, or making other inappropriate gestures.

Speaking to one alleged victim, identified as Benjamin G., Ventura first claimed he didn’t remember the incidents in question and then said Benjamin misinterpreted his actions, according to French newspaper Le Monde.

The Vatican has previously recalled its diplomats when they get into trouble during overseas postings, as is common for governments with diplomats serving abroad.

In the most high-profile case, the Vatican recalled its ambassador to the Dominican Republic and prepared to put him on trial in the city state’s criminal tribunal for allegedly sexually abusing young boys. But he died before trial started.

More recently, the Vatican convicted a diplomat from its U.S. embassy for possession and distribution of child pornography and sentenced him to five years in prison.

The Vatican also invoked immunity during the recently-concluded trial in France that convicted French Cardinal Philippe Barbarin of failing to report an admitted pedophile to police. Also accused in the case was a Vatican official, Cardinal Luis Ladaria, who now heads the Vatican office in charge of handling sex abuse cases.

The Vatican invoked Ladaria’s immunity as a public official of a foreign sovereign — the Holy See — and he was not prosecuted. Barbarin enjoyed no such immunity as the archbishop of Lyon and was convicted and given a six-month suspended sentence.

Francis recently named a temporary administrator to run the Lyon archdiocese after Barbarin stepped aside pending his appeal.

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Scientists Sound Alarm After 6 Rare Whale Deaths in One Month

Scientists, government officials and conservationists are calling for a swift response to protect North Atlantic right whales after a half-dozen died in the past month.

All six of the dead endangered species have been found in the Gulf of St. Lawrence off Canada. At least three appear to have died after being hit by ships.

There are only a little more than 400 of the endangered species left. 
 
The deaths have led scientists to sound the alarm about a potentially catastrophic loss to the population.

Some say the whales are traveling in different areas than usual because of food availability. That change has apparently brought whales outside of protected zones and left them vulnerable.
 

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 Trump Claims Census Question on Citizenship Still Alive 

U.S. President Donald Trump contended Wednesday that the government will still try to ask a question about citizenship in the once-a-decade census in 2020, a day after top officials announced they had given up on including the citizenship question following a Supreme Court ruling on the matter last week.

“The News Reports about the Department of Commerce dropping its quest to put the Citizenship Question on the Census is incorrect or, to state it differently, FAKE!” Trump claimed on Twitter. “We are absolutely moving forward, as we must, because of the importance of the answer to this question.”

The News Reports about the Department of Commerce dropping its quest to put the Citizenship Question on the Census is incorrect or, to state it differently, FAKE! We are absolutely moving forward, as we must, because of the importance of the answer to this question.

— Donald J. Trump (@realDonaldTrump) July 3, 2019

 

But his comment sowed confusion about the inclusion of the question, coming after both the Department of Justice and the Commerce Department said they had abandoned the effort for the census that starts April 1. The government has said it already has started printing the questionnaires this week in order to have them all ready for use in nine months.

US commerce secretary Wilbur Ross speaks at the 11th Trade Winds Business Forum and Mission hosted by the US Department of Commerce, in New Delhi, India, May 7, 2019.

Commerce Secretary Wilbur Ross said, “I respect the Supreme Court but strongly disagree with its ruling regarding my decision to reinstate a citizenship question on the 2020 Census,” for the first time since 1950. “The Census Bureau has started the process of printing the decennial questionnaires without the question. My focus, and that of the Bureau and the entire Department, is to conduct a complete and accurate census.”

Supreme Court Chief Justice John Roberts answers questions during an appearance at Belmont University, Feb. 6, 2019, in Nashville, Tenn.

In a 5-4 decision, Chief Justice John Roberts joined the court’s four liberal justices in ruling that the reasoning the Trump administration offered for including the citizenship question — that the information was needed to protect minority voting rights — was “contrived” and did not meet the standards for a clear explanation of why it should be asked.

Government officials offered no explanation of why they were dropping their effort to include the question, but were confronting weeks and maybe months of new challenges to the question. The census is important because it determines how many seats in the House of Representatives each state is allotted and how $800 billion in federal aid is disbursed.

Trump’s Democratic opponents have claimed that including the question is a Republican ploy to scare immigrants in to not participating in the census out of fear that immigration officials might target them for deportation when they determine that they are in the country illegally. An undercount in Democrat-leaning areas with large immigrant and Latino populations could reduce congressional representation for such states and cut federal aid.

After the Supreme Court heard arguments on the citizenship question but before it ruled, documents emerged from the files of a deceased Republican election districting expert showing that the citizenship question was aimed at helping Republicans gain an electoral edge over Democrats.  

Although the citizenship question has not been asked in 70 years, Trump tweeted that it was”A very sad time for America when the Supreme Court of the United States won’t allow a question of ‘Is this person a Citizen of the United States?’ to be asked on the #2020 Census!” 

When the high court issued its ruling, Trump called it “totally ridiculous.”

 

 

 

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Tesla Delivers Record Number of Electric Cars in Quarter

Tesla set a record for quarterly vehicle deliveries in a triumphant response to months of questions about demand for its luxury electric cars, sending shares up 7% after hours Tuesday.

Tesla did not comment on profit — which is still elusive — but the robust deliveries could help jumpstart investor sentiment on Tesla, which has been challenged in recent months.

Before Tuesday’s after-hours spike, Tesla shares were down about a third from the beginning of the year.

Brushing aside concerns about demand that have dogged the company all year, Tesla said orders during the second quarter exceeded deliveries, despite buyers getting a smaller tax credit.

A $7,500 U.S. federal tax credit was cut in half at the end of last year, fell to $1,875 on Monday and expires at the end of the year.

“We believe we are well positioned to continue growing total production and deliveries in Q3,” the company said in a statement.

Tesla delivered 77,550 Model 3s in the quarter, the company’s latest sedan and linchpin of the company’s growth strategy. That compared with analysts’ average estimate of 73,144, according to IBES data from Refinitiv.

Deliveries of all models rose 51% from the first quarter to 95,200 vehicles, including 17,650 Model S and X. Analysts on average were expecting total deliveries of 89,084.

FILE – Tesla CEO Elon Musk speaks before unveiling the Model Y at the company’s design studio in Hawthorne, California, March 14, 2019.

Chief Executive Officer Elon Musk has repeatedly said Tesla could deliver a record number of cars in the second quarter, beating the 90,700 it sent to customers in the final quarter of last year.

Wall Street ‘skeptical’

Tuesday’s numbers helped take the sting off a difficult first quarter, in which deliveries plunged and the company lost $702 million.

That fraught quarter — hurt by logistics issues at Tesla’s international ports and a drop-off in U.S. orders after the tax credit was halved — spurred worries that Tesla may have tapped a limited market for electric cars at premium prices.

Despite the positive second-quarter delivery numbers, Wedbush analyst Dan Ives cautioned that “the Street remains skeptical.”

Demand and profitability will remain the two main drivers to buoy Tesla shares in coming quarters, Ives told Reuters, signaling that Tesla’s challenges are far from over.

Garrett Nelson of CFRA Research noted that second-quarter deliveries were likely artificially boosted by customers pulling forward their vehicle purchases before the July 1 tax credit cut, warning that could result in a “significant retracement” in deliveries in the third quarter.

Tesla did not repeat its prior forecast that it would post a second-quarter loss but return to profit in the third quarter.

Delivery challenge

A big challenge for Tesla has been how to deliver its vehicles efficiently and swiftly to customers around the world.

An improved system for logistics helped in the second quarter, Tesla said, without providing more detail.

In prior quarters, Tesla has diverted employees from all parts of the company to help with deliveries in an all-hands-on-deck effort to meet delivery goals. That has proved to be an expensive and inefficient way to meet targets, which reduces potential profit margins on each vehicle.

The delivery numbers included 10,600 vehicles that had been in transit at the end of the first quarter.

The company has pledged to deliver 360,000 to 400,000 vehicles in 2019, a goal many analysts predict will be difficult to meet.

Overall, total production rose 13% to 87,048 vehicles compared with the first quarter. The company churned out 72,531 Model 3s in the second quarter, up from a total of 62,950 Model 3s in the preceding quarter.

Tesla said that going forward, it would no longer disclose how many vehicles were in transit at the end of each quarter due to production changes that made the number less relevant. At the end of the second quarter, over 7,400 vehicles were in transit.
 

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