Secretary of State Mike Pompeo told visiting NATO foreign ministers Thursday that the 29 country alliance must alter its approach to developing threats, singling out Russian aggression and China’s “strategic competition.” Pompeo cautioned his NATO allies that there is a risk the U.S. will not be able to share information in the same way it could if there were not Chinese network supplier systems operating inside of their networks. VOA’s diplomatic correspondent Cindy Saine reports.
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The U.S. president and the vice premier of China confirmed on Thursday that while significant progress has been made, there is no new trade agreement yet between the world’s two largest economies. 

“We’re certainly getting a lot closer,” Trump said sitting at his desk in the Oval Office with Chinese Vice Premier Liu He alongside him.

Announcement of a deal could come in “the next four weeks, maybe less, maybe more” and at that time, something “monumental could be announced,” he said, adding, “We are rounding the turn. We’ve made a lot of progress.” 

Liu, speaking in English, praised the direct guidance of Trump and Chinese President Xi Jinping, adding: “Hopefully, we’ll get a good result.”  

Trump said if a deal can be reached, then he will hold a summit with Xi.

“If we have a deal, there will be a summit,” he said. “I look forward to seeing President Xi. It’ll be here.” 

Intellectual property protection, as well as certain tariffs remain under discussion, Trump confirmed.  

“Some of the toughest things have been agreed to,” he added. 

Asked to make a comment by the president about the status of the negotiations, U.S. Trade Representative Robert Lighthizer was more cautious, replying, “We’ve made a lot of headway. We’re working very hard,” but “there are still some major, major issues left.” 

Responding to questions from reporters, Trump said, “We’ve never done a deal like this with China,” predicting the agreement could be “the granddaddy of them all” and “a tremendous thing for the world.”

He also described it as potentially “epic” and “historic.” 

The two countries had originally hoped to reach an agreement by March 1, but negotiations have extended well beyond that date.

“The relationship with China is very strong, probably the strongest it’s ever been,” Trump declared. 

Liu had met Wednesday in Washington with Lighthizer and Treasury Secretary Steven Mnuchin.

​

For months, the economic superpowers have engaged in a reciprocal tariff war, with both countries imposing levies on hundreds of billions of dollars’ worth of each other’s exports, which could be eased or ended with a deal. 

Officials familiar with their negotiations say an agreement could give Beijing until 2025 to meet its commitment on U.S. commodity purchases and allow U.S. companies to wholly own businesses in China.

“Nobody thought these talks would be easy, but as they enter these final stages, we’re encouraged by the continued progress towards detailed text on both structural and enforcement issues,” said Linda Dempsey, National Association of Manufacturers vice president of International Economic Affairs, following Thursday’s Trump-Liu meeting.

“Manufacturers in the United States have long been harmed by China’s unfair trade practices. That is why we believe negotiations must result in an innovative, enforceable bilateral trade agreement that levels the playing field for manufacturers in the United States,” Dempsey added.

Trump’s meeting with Liu came just days after a Chinese woman, Yujing Zhang, was arrested trying to enter the U.S. president’s Atlantic oceanfront retreat in Florida, and detained after she entered the compound claiming she was there for what turned out to be a non-existent event.

She was charged with illegal entering and lying to U.S. agents. The U.S. Secret Service, which protects Trump and his family, said she was carrying four cellphones, a laptop computer, an external hard drive, thumb drive containing computer malware and two Chinese passports.
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U.S. lawmakers of both parties say hurdles remain for approving a new trade pact between the United States, Canada and Mexico, rejecting President Donald Trump’s call for prompt votes on a replacement for the North American Free Trade Agreement, NAFTA.

Last year, the administration made good on one of Trump’s main campaign promises – negotiating a replacement for NAFTA, which went into effect in 1994, with a new trade accord, the United States-Mexico-Canada Agreement, or USMCA.

Democratic House Speaker Nancy Pelosi of California made headlines Tuesday demanding changes to the pact to strengthen enforcement provisions and announcing the chamber will not vote on the accord until Mexico approves and implements tougher labor standards.

“No enforcement, no treaty,” Pelosi said at a Politico event, adding, “It’s a big issue, how workers are treated in Mexico.”

Senate Democrats echoed the speaker.

“There’s still work to do [on the USMCA]“ Maryland Sen. Chris Van Hollen told VOA. “I agree with Speaker Pelosi that Mexico needs to fully enact the labor rights reform measures. There are also a number of issues on the environmental front, and we need to make sure we have an effective enforcement mechanism.”

“We’re waiting to see whether or not the proposal will have a lot more fortified enforcement provisions, that’s my top concern,” Democratic Sen. Bob Casey of Pennsylvania said. “That’s always been a major concern of trade agreements generally. That’s why I have always been an aggressive skeptic, and I remain so.”

Democrats are not alone in expressing reservations. Forty-six House Republicans wrote a letter to the White House opposing language in the USMCA proposed by Canada to protect the rights of LGBT sexual minorities.

“A trade agreement is no place for the adoption of social policy,” conservative Freedom Caucus members said in the letter.

Devil in the details

Florida Republican Sen. Marco Rubio said he, like all lawmakers, needs time to assess the USMCA’s impact on economic sectors in his state.

“Trade deals are generally difficult to get votes on because, the bigger they are, the likelier there are individual industries affected by some detail of the deal – Florida included, with our vegetable growers [who complete with Mexico],” Rubio said.

To go into effect, the USMCA would have to be approved by legislatures in the United States, Mexico and Canada. Some on Capitol Hill railed against any delay.

“It would be a killer, a big mistake” the Senate’s number two Republican, John Thune of agriculture-rich South Dakota, told VOA. “That’s a very carefully negotiated agreement we got signed, sealed and delivered. Now it’s just a function of signing off on it. And we just need to get it done.”

Thune added, “Any attempt to go back and rewrite it is a non-starter.”

Thune’s impatience matches that of the White House, which is pressing Congress to act on the USMCA as soon as next month to get the vote out of the way before the 2020 U.S. election cycle fully heats up, at which point trade votes could be even more dicey.

Administration officials have sought to reassure wavering lawmakers that their concerns can be addressed in side agreements with Canada and Mexico, rather than reopening negotiations on the pact itself.

Pelosi rejected such assurances.

“We’re saying that enforcement has to be in the treaty,” the House speaker said. “[I]f you don’t have enforcement, you ain’t got nothing.”

Enforcement is key

American business and labor groups are weighing in, as well.

“This agreement right now, for it to be voted on, would be premature,” Richard Trumka, president of America’s largest labor federation, the AFL-CIO, told Bloomberg TV. “The Mexican government has to change their [labor] laws, then they have to start effectively enforcing them, and then they have to demonstrate that they have the resources necessary to enforce those laws, because if you can’t enforce a trade agreement, it’s useless.”

The U.S. Farm Bureau, by contrast, urged swift implementation of the USMCA.

“Farmers know a good deal when we see one,” Farm Bureau president Zippy Duvall wrote in a statement. “Without USMCA, our most critical markets hang in the balance. Both Canada and Mexico have already signed another deal that does not include the United States.”

The USMCA would replace NAFTA, a pact implemented under the Clinton administration in the 1990s. NAFTA has been credited with vastly expanding trade in North America, but also blamed for accelerating the pace of manufacturing job losses in the United States.

Trump repeatedly blasted NAFTA as a disastrous trade deal for America during his successful 2016 campaign — a view Pelosi and other Democrats have echoed.

“I, myself, voted for NAFTA the first time,” the speaker said at the Politico forum. “I do think I was burned by it. I don’t think it lived up [to its promises].”

 
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Joyce Huang contributed to this report.

BEIJING – An online campaign protesting the long hours Chinese high-tech employees work has gone viral on the Internet in China. At the same time, it is putting an uncomfortable light on the labor practices of China’s biggest high-tech firms.

The campaign known as 996.icu may have been small when it started on Microsoft’s code sharing website Github.com, but now, it is the second highest bookmarked project on the open source collaborative site. It has also spread quickly on Weibo, China’s version of Twitter, where it is a hotly discussed topic. One posting alone had more than half a million views.

Chinese programmers came up with the ironic name 996.icu to draw attention to a work schedule reality and problem. The name is a pithy way of saying if you work the 9 a.m. to 9 p.m. six-day-a-week work schedule, you’ll end up in the intensive care unit of a hospital.

And while the campaign takes aim at some of China’s biggest tech firms and includes a blacklist that details labor practices, organizers have been careful in their approach to addressing the problem.

“This is not a political movement,” the campaign said, in a bullet point outline of its principles and purposes. “We firmly uphold the labor law and require employers to respect the legitimate rights and interests of their employees.”

Beyond guidelines

China’s labor law states that employers can request employees to work overtime for an hour or even three hours a day, but no more than 36 hours of overtime in total over a month’s period.

Clearly, 72 hours a week, goes far beyond that guideline. Labor activists and lawyers, note however, that companies have many ways of getting around the law.

 

According to 996.icu, the 72-hour work week schedule has long been practiced in “secret,” but recently more companies have been openly discussing the arrangement.

The campaign notes that in March, e-commerce company J.D. Com said it had begun adopting 996 or 995 work schedules for some departments. Other companies made similar pledges at the beginning of the year.

 

Commenting on its 996 work schedule, J.D. Com said that it was not a mandatory policy, but that all of its employees should be fully committed (to their work).

Tougher times

Tech companies have always pushed their employees very hard and that has been a problem for many years, said Geoffrey Crothall, of the Hong Kong-based China Labour Bulletin.

What’s interesting about the anti-996 pushback is that wages in the tech sector were always much higher than anywhere else, he said.

“But now people are being laid off, people are not getting the same kind of bonuses, they are not getting the same pay increases that they are used to and so people are saying I am not getting paid as much, why should I work as hard,” Crothall said.

How big the movement’s impact will be remains to be seen. Crothall said it is still too early to say whether the campaign will be a game changer or short-term phenomenon.

Game changer?

The key goal of the anti-996 campaign is to get employers to buy into the movement by attaching an Anti-996 license to software to show their support for labor standards. A push that reportedly is already gaining some traction.

Going forward, getting the campaign to move from online to offline will be a big challenge.

 

It is also unclear how long the debate online will be allowed to continue in China’s tightly controlled cyberspace. Already, internet users have reported that some Chinese-made browsers are blocking access to the 996.icu page on Github.

 

A post on Zhihu.com, a Chinese question and answer website that asked what the electronics chain Suning’s view was on the debate was shut down. Earlier posts remain, but a message at the top of the discussion page reads: “this question has been closed for infringing on company rights.”

Chinese state media seemed to voice support for the concerns of young high-tech workers and long work hours.

An editorial in the state-run China Youth Daily newspaper portrayed young tech workers as being besieged by the 996-work week. The piece argued that it was time for labor regulators to get more actively involved. It also noted that the 996-work week was not just a problem facing high-tech employees, but something workers in other sectors face as well.

 
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Britain’s government redoubled its efforts Thursday to win over the main opposition party in a last-gasp bid to avoid a chaotic exit from the European Union next week.

The latest round of talks came after lawmakers tried to safeguard against a doomsday ending to the 46-year partnership by fast-tracking a bill Wednesday night seeking to delay Brexit.

May is racing against the clock in a desperate search for votes that could push her ill-loved divorce deal with the other 27 EU leaders through parliament on the fourth attempt.

May’s spokesman said there would be “intensive discussions over the course of today”, noting the “urgency” of the situation.

Britain’s latest deadline is April 12 and resistance to May’s plan remains passionately strong.

But increasingly weary EU leaders — tired of Britain’s political drama and eager to focus on Europe’s own problems — want to see either a done deal or a new way forward from May before they all meet in Brussels on Wednesday.

Her European counterparts will decide whether to grant May’s request to push back Brexit until May 22 — the day before nations begin electing a new European Parliament.

One alternative is to force her to accept a much longer extension that could give Britain time to rethink Brexit and possibly reverse its decision to leave.

The other is to let Britain go without a deal on April 12 in the hope that the economic disruption is short-lived and worth the price of eliminating long-term Brexit uncertainties.

‘Sense of resignation’

May dramatically ended her courtship of her own party’s holdouts and resistant Northern Irish allies by turning to the main opposition Labour Party this week.

The premier met Labour leader Jeremy Corbyn on Wednesday for a reported 100 minutes of talks both sides described as “cordial” but inconclusive.

The EU’s chief Brexit negotiator Michel Barnier on Thursday welcomed the cross-party effort to resolved the deadlock.

“It’s time for decisions,” he tweeted.

But May’s decision to hear out Corbyn’s demands for a closer post-Brexit alliance with the bloc that includes membership in its customs union has enraged Britain’s right-wing and seen two junior ministers resign.

One senior minister said May had no other choice.

“It’s very simple — there’s nowhere else to go,” the unnamed cabinet minister told the news website Politico.

“There’s a sense of resignation about her that ‘we get this through and I take the flak’.”

Pro-European members of May’s team also insisted that it was time to compromise on long-standing political beliefs for the benefit of safe resolution of Britain’s biggest crisis in decades.

“Both parties have to give something up,” finance minister Philip Hammond told ITV.

“There is going to be pain on both sides.”

Competing visions

May and Corbyn have competing visions of Britain’s place in Europe and neither has shown much willingness to compromise in the past.

Corbyn said late Wednesday that he did not see “as much change as I expected” from May.

The Times newspaper quoted an unnamed government source as saying that May’s office thought it more likely than not that the negotiations would fail.

May has resisted the customs union idea because it bars Britain from striking its own independent trade agreements with nations such as China and the United States.

And Corbyn is under pressure from Labour’s pro-EU wing to push for a second referendum that would pit May’s final deal against the option of staying in the bloc.

Corbyn has shied away from backing another vote due in part to his own sceptical view of Brussels.

The Labour-backing Mirror newspaper said May and Corbyn would let their teams negotiate Thursday before deciding on whether to meet again face to face Friday.

 

 

 

 
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White House adviser Ivanka Trump is planning a trip to Africa to promote a global women’s initiative she’s leading.  

  

President Donald Trump’s daughter will visit Ethiopia and Ivory Coast over four days this month. The White House said Wednesday that her schedule includes a women’s economic empowerment summit in Ivory Coast as well as site visits and meetings with political leaders, executives and female entrepreneurs in both countries. 

 

Accompanying her will be Mark Green, administrator of the U.S. Agency for International Development. On parts of the trip, they will be joined David Bohigian, acting president of the Overseas Private Investment Corp., and Kristalina Georgieva, interim president of the World Bank Group. 

 

OPIC provides loans, loan guarantees and political risk insurance, funding projects that stretch across continents and industries. 

 

It will be Ivanka Trump’s first visit to Africa since the White House undertook the Women’s Global Development and Prosperity Initiative in February. In a statement to The Associated Press, she said she was “excited to travel to Africa” to advance the effort. 

Multi-agency effort

 

The initiative involves the State Department, the National Security Council and other U.S. agencies. It aims to coordinate current programs and develop new ones to assist women in job training, financial support, legal or regulatory reforms and other areas.  

  

Ivanka Trump says the goal is to economically empower 50 million women in developing countries by 2025.  

  

Money for the effort will come through USAID, which initially set up a $50 million fund using dollars already budgeted. The president’s 2020 budget proposal requests $100 million for the initiative, which will also be supported by programs across the government as well as private investment. The White House spending plan would cut overall funding for diplomacy and development.  

  

Ivanka Trump has made women’s economic empowerment a centerpiece of her White House portfolio. She has made a number of international trips, with a focus on these issues, including to Japan and India. Her travel to Africa follows a five-day tour that first lady Melania Trump made there last year, with a focus on child welfare.  

  

Like the first lady, Ivanka Trump’s efforts could be complicated by the president, who was criticized last year after his private comments about “s—hole countries” in Africa and other regions were leaked to journalists.
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White House adviser Ivanka Trump is planning a trip to Africa to promote a global women’s initiative she’s leading.  

  

President Donald Trump’s daughter will visit Ethiopia and Ivory Coast over four days this month. The White House said Wednesday that her schedule includes a women’s economic empowerment summit in Ivory Coast as well as site visits and meetings with political leaders, executives and female entrepreneurs in both countries. 

 

Accompanying her will be Mark Green, administrator of the U.S. Agency for International Development. On parts of the trip, they will be joined David Bohigian, acting president of the Overseas Private Investment Corp., and Kristalina Georgieva, interim president of the World Bank Group. 

 

OPIC provides loans, loan guarantees and political risk insurance, funding projects that stretch across continents and industries. 

 

It will be Ivanka Trump’s first visit to Africa since the White House undertook the Women’s Global Development and Prosperity Initiative in February. In a statement to The Associated Press, she said she was “excited to travel to Africa” to advance the effort. 

Multi-agency effort

 

The initiative involves the State Department, the National Security Council and other U.S. agencies. It aims to coordinate current programs and develop new ones to assist women in job training, financial support, legal or regulatory reforms and other areas.  

  

Ivanka Trump says the goal is to economically empower 50 million women in developing countries by 2025.  

  

Money for the effort will come through USAID, which initially set up a $50 million fund using dollars already budgeted. The president’s 2020 budget proposal requests $100 million for the initiative, which will also be supported by programs across the government as well as private investment. The White House spending plan would cut overall funding for diplomacy and development.  

  

Ivanka Trump has made women’s economic empowerment a centerpiece of her White House portfolio. She has made a number of international trips, with a focus on these issues, including to Japan and India. Her travel to Africa follows a five-day tour that first lady Melania Trump made there last year, with a focus on child welfare.  

  

Like the first lady, Ivanka Trump’s efforts could be complicated by the president, who was criticized last year after his private comments about “s—hole countries” in Africa and other regions were leaked to journalists.
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U.S. President Donald Trump met NATO Secretary General Jens Stoltenberg at the White House Tuesday, where he took credit for increased burden sharing in collective defense spending. As White House Correspondent Patsy Widakuswara reports, the North Atlantic Treaty Organization is commemorating its 70th birthday in Washington with less pomp than usual, out of concerns for further verbal attacks from an American president who has repeatedly criticized the trans-Atlantic military alliance.
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U.S. President Donald Trump met NATO Secretary General Jens Stoltenberg at the White House Tuesday, where he took credit for increased burden sharing in collective defense spending. As White House Correspondent Patsy Widakuswara reports, the North Atlantic Treaty Organization is commemorating its 70th birthday in Washington with less pomp than usual, out of concerns for further verbal attacks from an American president who has repeatedly criticized the trans-Atlantic military alliance.
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The United States will not send high-level officials to attend China’s second Belt and Road summit in Beijing this month, a spokesperson for the U.S. State Department said on Tuesday, citing concerns about financing practices for the project.

China’s top diplomat, Yang Jiechi, said on Saturday that almost 40 foreign leaders would take part in the summit due to be held in Beijing in late April. He rejected criticisms of the project as “prejudiced.”

The first summit for the project, which envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond with massive infrastructure spending, was held in 2017 and was attended by Matt Pottinger, the senior White House official for Asia.

There are no such plans this year.

“We will not send high-level officials from the United States,” a spokesperson for the U.S. State Department said in answer to a question from Reuters.

“We will continue to raise concerns about opaque financing practices, poor governance, and disregard for internationally accepted norms and standards, which undermine many of the standards and principles that we rely upon to promote sustainable, inclusive development, and to maintain stability and a rules-based order.

“We have repeatedly called on China to address these concerns,” the official added.

Chinese President Xi Jinping’s Belt and Road Initiative has proven controversial in many Western capitals, particularly Washington, which views it as a means to spread Chinese influence abroad and saddle countries with unsustainable debt through non-transparent projects.

On Saturday, Yang called such criticisms “prejudiced,” saying China has never forced debt upon participants and the project was to promote joint development.

On Saturday, he did not name the 40 leaders he said would attend, but some of China’s closest allies have already confirmed they will be there, including Russian President Vladimir Putin, Pakistani Prime Minister Imran Khan, Philippines President Rodrigo Duterte and Cambodian Prime Minister Hun Sen.

​The United States has been particularly critical of Italy’s decision to sign up to the plan this month, during a visit by Xi to Rome, the first for a G7 nation.

Washington sees China as major strategic rival and the Trump administration has engaged Beijing in a tit-for-tat tariff war. 

The world’s two biggest economies have levied tariffs on hundreds of billions of dollars’ worth of bilateral trade since July 2018, raising costs, disrupting supply chains and roiling global markets.

White House economic adviser Larry Kudlow on Tuesday said the countries “expect to make more headway” in trade talks this week, while the top U.S. business lobbying group said differences over an enforcement mechanism and the removal of U.S. tariffs were still obstacles to a deal.
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The United States will not send high-level officials to attend China’s second Belt and Road summit in Beijing this month, a spokesperson for the U.S. State Department said on Tuesday, citing concerns about financing practices for the project.

China’s top diplomat, Yang Jiechi, said on Saturday that almost 40 foreign leaders would take part in the summit due to be held in Beijing in late April. He rejected criticisms of the project as “prejudiced.”

The first summit for the project, which envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond with massive infrastructure spending, was held in 2017 and was attended by Matt Pottinger, the senior White House official for Asia.

There are no such plans this year.

“We will not send high-level officials from the United States,” a spokesperson for the U.S. State Department said in answer to a question from Reuters.

“We will continue to raise concerns about opaque financing practices, poor governance, and disregard for internationally accepted norms and standards, which undermine many of the standards and principles that we rely upon to promote sustainable, inclusive development, and to maintain stability and a rules-based order.

“We have repeatedly called on China to address these concerns,” the official added.

Chinese President Xi Jinping’s Belt and Road Initiative has proven controversial in many Western capitals, particularly Washington, which views it as a means to spread Chinese influence abroad and saddle countries with unsustainable debt through non-transparent projects.

On Saturday, Yang called such criticisms “prejudiced,” saying China has never forced debt upon participants and the project was to promote joint development.

On Saturday, he did not name the 40 leaders he said would attend, but some of China’s closest allies have already confirmed they will be there, including Russian President Vladimir Putin, Pakistani Prime Minister Imran Khan, Philippines President Rodrigo Duterte and Cambodian Prime Minister Hun Sen.

​The United States has been particularly critical of Italy’s decision to sign up to the plan this month, during a visit by Xi to Rome, the first for a G7 nation.

Washington sees China as major strategic rival and the Trump administration has engaged Beijing in a tit-for-tat tariff war. 

The world’s two biggest economies have levied tariffs on hundreds of billions of dollars’ worth of bilateral trade since July 2018, raising costs, disrupting supply chains and roiling global markets.

White House economic adviser Larry Kudlow on Tuesday said the countries “expect to make more headway” in trade talks this week, while the top U.S. business lobbying group said differences over an enforcement mechanism and the removal of U.S. tariffs were still obstacles to a deal.
…

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Trade tensions between China and the United States are putting a drag on economies in the region, with growth likely to continue to slow in the coming two years, the Asian Development Bank says in a report released Wednesday.

 

The Manila, Philippines-based regional lender’s latest economic outlook forecasts that growth in developing Asia will slow slightly to 5.7 percent this year and 5.6 percent in 2020. In 2017 growth was at 6.2 percent.

 

“The main risk to the outlook is still the ongoing trade conflict, as heightened trade policy uncertainty can negatively affect investment and manufacturing activity,” it said. “A sharper slowdown in the advanced economies or the PRC (People’s Republic of China) is another risk.”

 

The annual update comes as China and the U.S. prepare for another round of talks, this week in Washington, aimed at resolving their dispute over China’s industrial policies and acquisition of technology.

 

After the dispute escalated in mid-2018, with both sides imposing billions of dollars’ worth of tariffs on each other’s products, world trade weakened, contracting nearly 2 percent in January from a year earlier, the report shows.

 

It said the solid growth momentum in the first nine months of the year began to fade in the last quarter. Growth in industrial production also showed signs of weakness, the ADB report said.

 

This is an added burden as the business cycle for major economies heads into a “negative trend,” said the ADB’s chief economist, Yasuyuki Sawada.

 

“This global business cycle seems to create some impact on Asian economies,” he said in an interview. “It’s not only trade tensions.”

 

Other reports show similar sluggishness in the region, which remains the main driver for world economic growth.

 

The latest set of purchasing manager indexes showed slight improvements in exports in March from January-February for Indonesia, Vietnam, Thailand and Taiwan as well as China.

 

“But other data suggest that growth in China could well weaken again in the near term,” Capital Economics said in a report. “As such, we think it is too soon to predict a turn in fortunes for the region’s manufacturing sectors.”

 

The Asian Development Bank forecasts that growth in major economies will slip to 1.9 percent in 2019 and 1.6 percent in 2020 from 2.2 percent last year. The U.S. economy is forecast to expand at a 2.4 percent annual rate this year, slowing from 2.9 percent in 2018, and to decelerate to 1.9 percent growth in 2020. Japan’s growth will remain flat at 0.8 percent this year, it estimates, and fall to 0.6 percent next year.

 

The bank expects growth in the area using the euro to fall to 1.5 percent in 2019 and 2020 from 1.8 percent in 2018.

 

On the positive side, inflation should remain manageable and domestic demand in many economies in Southeast and South Asia is vibrant, the Asian Development Bank said.

 

That’s less true of East Asia, where consumers have grown more cautious about spending: auto sales in China, for example, have plunged in recent months in one of the biggest reversals of sentiment.

 

Developing countries in Asia are seeing an uptick in investment from many parts of the world, especially China, it noted. China’s foreign direct investment in new projects such as renewable energy, textile factories and property in the region nearly tripled, while investment by the U.S. jumped by nearly three-quarters.

 

While much of the ADB’s report focused on trade and investment, the bank urged governments across the region to devote more resources to cultivating resilience and taking measures to help prevent or mitigate natural disasters.

 

The report noted that 84 percent of the 206 million people affected by natural disasters each year in 2000-2018 lived in developing Asian economies. More than half of the 60,000 deaths from such catastrophes each year were in this region, which suffers a large share of extreme weather events and earthquakes.

 

The report says that a large share of the $1.7 trillion in annual investments in infrastructure needed over the coming decade should go to reducing risks from such disasters.

 

One area of concern is insurance.

 

“Almost all direct damage is not covered by insurance,” Sawada said.

 

Another area that could yield strong results is in weather forecasting and warnings in the Asia-Pacific, home to four of every five people affected by storms and other disasters.

 

While earthquakes and tsunamis are virtually impossible to predict, when it comes to extreme weather, “there is room for constructing mechanisms and building up early warning systems,” Sawada said. “There is huge potential.”
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Trade tensions between China and the United States are putting a drag on economies in the region, with growth likely to continue to slow in the coming two years, the Asian Development Bank says in a report released Wednesday.

 

The Manila, Philippines-based regional lender’s latest economic outlook forecasts that growth in developing Asia will slow slightly to 5.7 percent this year and 5.6 percent in 2020. In 2017 growth was at 6.2 percent.

 

“The main risk to the outlook is still the ongoing trade conflict, as heightened trade policy uncertainty can negatively affect investment and manufacturing activity,” it said. “A sharper slowdown in the advanced economies or the PRC (People’s Republic of China) is another risk.”

 

The annual update comes as China and the U.S. prepare for another round of talks, this week in Washington, aimed at resolving their dispute over China’s industrial policies and acquisition of technology.

 

After the dispute escalated in mid-2018, with both sides imposing billions of dollars’ worth of tariffs on each other’s products, world trade weakened, contracting nearly 2 percent in January from a year earlier, the report shows.

 

It said the solid growth momentum in the first nine months of the year began to fade in the last quarter. Growth in industrial production also showed signs of weakness, the ADB report said.

 

This is an added burden as the business cycle for major economies heads into a “negative trend,” said the ADB’s chief economist, Yasuyuki Sawada.

 

“This global business cycle seems to create some impact on Asian economies,” he said in an interview. “It’s not only trade tensions.”

 

Other reports show similar sluggishness in the region, which remains the main driver for world economic growth.

 

The latest set of purchasing manager indexes showed slight improvements in exports in March from January-February for Indonesia, Vietnam, Thailand and Taiwan as well as China.

 

“But other data suggest that growth in China could well weaken again in the near term,” Capital Economics said in a report. “As such, we think it is too soon to predict a turn in fortunes for the region’s manufacturing sectors.”

 

The Asian Development Bank forecasts that growth in major economies will slip to 1.9 percent in 2019 and 1.6 percent in 2020 from 2.2 percent last year. The U.S. economy is forecast to expand at a 2.4 percent annual rate this year, slowing from 2.9 percent in 2018, and to decelerate to 1.9 percent growth in 2020. Japan’s growth will remain flat at 0.8 percent this year, it estimates, and fall to 0.6 percent next year.

 

The bank expects growth in the area using the euro to fall to 1.5 percent in 2019 and 2020 from 1.8 percent in 2018.

 

On the positive side, inflation should remain manageable and domestic demand in many economies in Southeast and South Asia is vibrant, the Asian Development Bank said.

 

That’s less true of East Asia, where consumers have grown more cautious about spending: auto sales in China, for example, have plunged in recent months in one of the biggest reversals of sentiment.

 

Developing countries in Asia are seeing an uptick in investment from many parts of the world, especially China, it noted. China’s foreign direct investment in new projects such as renewable energy, textile factories and property in the region nearly tripled, while investment by the U.S. jumped by nearly three-quarters.

 

While much of the ADB’s report focused on trade and investment, the bank urged governments across the region to devote more resources to cultivating resilience and taking measures to help prevent or mitigate natural disasters.

 

The report noted that 84 percent of the 206 million people affected by natural disasters each year in 2000-2018 lived in developing Asian economies. More than half of the 60,000 deaths from such catastrophes each year were in this region, which suffers a large share of extreme weather events and earthquakes.

 

The report says that a large share of the $1.7 trillion in annual investments in infrastructure needed over the coming decade should go to reducing risks from such disasters.

 

One area of concern is insurance.

 

“Almost all direct damage is not covered by insurance,” Sawada said.

 

Another area that could yield strong results is in weather forecasting and warnings in the Asia-Pacific, home to four of every five people affected by storms and other disasters.

 

While earthquakes and tsunamis are virtually impossible to predict, when it comes to extreme weather, “there is room for constructing mechanisms and building up early warning systems,” Sawada said. “There is huge potential.”
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Royal Dutch Shell on Tuesday became the first major oil and gas company to announce plans to leave a leading U.S. refining lobby due to disagreement on climate policies, citing its support for the goals of the Paris climate agreement.

In its first review of its association with 19 key industry groups, Shell said it had found “material misalignment” over climate policy with the American Fuel & Petrochemical Manufacturers (AFPM) and would quit the body in 2020.

The review is part of Shell’s drive to increase transparency and show investors it is in line with the 2015 Paris climate agreement’s goals to limit global warming by reducing carbon emissions to a net zero by the end of the century.

It is the latest sign of how investor pressure on oil companies, particularly in Europe, is leading to changes in their behavior around climate. Last year, Shell caved in to investor pressure over climate change, setting out plans to introduce industry-leading carbon emissions targets linked to executive pay.

Its chief executive, Ben van Beurden, has since repeatedly urged oil and gas producers to take action over climate and pollution, staking out a more radical position than the heads of other major oil companies.

“AFPM has not stated support for the goal of the Paris Agreement. Shell supports the goal of the Paris Agreement,” the Anglo-Dutch company said in its decision.

“The need for urgent action in response to climate change has become ever more obvious since the signing of the Paris Agreement in 2015. As a result, society’s expectations in this area have changed, and Shell’s views have also evolved,” van Beurden said in the report.

The company has disagreed with AFPM on a number of issues for some time, according to two lobbying sources. Shell said it also disagreed with AFPM’s opposition to a price on carbon and action on low-carbon technologies.

Shell and AFPM have also been at odds in recent months over regulation over the use of renewable fuels. While Shell and other large refiners invested in cleaner fuel technology, AFPM has fought hard against standards requiring refiners to blend or subsidize the blending of biofuels into the gasoline pool – saying it hurts independent refiners.

Shell and rivals Exxon and BP have in recent years left the American Legislative Exchange Council, a conservative political group, over its stance on climate change.

AFPM Chief Executive Chet Thompson thanked Shell for its “longstanding collaboration.”

“We will also continue working on behalf of the refining and petrochemical industries to advance policies that ensure reliable and affordable access to fuels and petrochemicals, while being responsible stewards of the environment,” Thompson said in a statement.

AFPM counts around 300 U.S. and international members including Exxon Mobil, Chevron, BP and Total SA that operate 110 refineries and 229 petrochemical plants, according to its 2018 annual report.

French oil major Total said in a statement to Reuters that consensus required by organizations such as AFPM does not always reflect its position, and that it regularly monitors the relevance of its participation.

“In this case, Total takes a pro-active approach in order to convince its peers, particularly on climate issues. In case of differing points of view, Total publicly defends its position, and is ready to reconsider its participation in case of disagreement,” the company said.

Total said it was fully aware of climate issues, has publicly recognised them and takes them into its strategy.

Shell’s review was welcomed by Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, which invests in Shell and led discussions with the company over its climate policy.

“This is an industry first,” Matthews said. “With this review Shell have set the benchmark for best practice on corporate climate lobbying not just within oil and gas but across all industries. The challenge now is for others to follow suit.”

Walk Away

Shell also found “some” misalignment with nine other trade associations, including the American Petroleum Institute, the oil and gas industry’s main lobby.

Shell said that while it had some climate-related differences with the API, it welcomed the lobby’s advocacy on a range of state and federal issues such as trade and transport, as well as the API’s efforts to reduce methane emissions.

Shell said it will continue to engage with the API and other groups over climate policies and monitor their alignment.

Shell last month urged President Donald Trump’s administration to tighten restrictions on emissions of methane, a potent greenhouse gas, instead of weakening them as planned.
…

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Royal Dutch Shell on Tuesday became the first major oil and gas company to announce plans to leave a leading U.S. refining lobby due to disagreement on climate policies, citing its support for the goals of the Paris climate agreement.

In its first review of its association with 19 key industry groups, Shell said it had found “material misalignment” over climate policy with the American Fuel & Petrochemical Manufacturers (AFPM) and would quit the body in 2020.

The review is part of Shell’s drive to increase transparency and show investors it is in line with the 2015 Paris climate agreement’s goals to limit global warming by reducing carbon emissions to a net zero by the end of the century.

It is the latest sign of how investor pressure on oil companies, particularly in Europe, is leading to changes in their behavior around climate. Last year, Shell caved in to investor pressure over climate change, setting out plans to introduce industry-leading carbon emissions targets linked to executive pay.

Its chief executive, Ben van Beurden, has since repeatedly urged oil and gas producers to take action over climate and pollution, staking out a more radical position than the heads of other major oil companies.

“AFPM has not stated support for the goal of the Paris Agreement. Shell supports the goal of the Paris Agreement,” the Anglo-Dutch company said in its decision.

“The need for urgent action in response to climate change has become ever more obvious since the signing of the Paris Agreement in 2015. As a result, society’s expectations in this area have changed, and Shell’s views have also evolved,” van Beurden said in the report.

The company has disagreed with AFPM on a number of issues for some time, according to two lobbying sources. Shell said it also disagreed with AFPM’s opposition to a price on carbon and action on low-carbon technologies.

Shell and AFPM have also been at odds in recent months over regulation over the use of renewable fuels. While Shell and other large refiners invested in cleaner fuel technology, AFPM has fought hard against standards requiring refiners to blend or subsidize the blending of biofuels into the gasoline pool – saying it hurts independent refiners.

Shell and rivals Exxon and BP have in recent years left the American Legislative Exchange Council, a conservative political group, over its stance on climate change.

AFPM Chief Executive Chet Thompson thanked Shell for its “longstanding collaboration.”

“We will also continue working on behalf of the refining and petrochemical industries to advance policies that ensure reliable and affordable access to fuels and petrochemicals, while being responsible stewards of the environment,” Thompson said in a statement.

AFPM counts around 300 U.S. and international members including Exxon Mobil, Chevron, BP and Total SA that operate 110 refineries and 229 petrochemical plants, according to its 2018 annual report.

French oil major Total said in a statement to Reuters that consensus required by organizations such as AFPM does not always reflect its position, and that it regularly monitors the relevance of its participation.

“In this case, Total takes a pro-active approach in order to convince its peers, particularly on climate issues. In case of differing points of view, Total publicly defends its position, and is ready to reconsider its participation in case of disagreement,” the company said.

Total said it was fully aware of climate issues, has publicly recognised them and takes them into its strategy.

Shell’s review was welcomed by Adam Matthews, director of ethics and engagement for the Church of England Pensions Board, which invests in Shell and led discussions with the company over its climate policy.

“This is an industry first,” Matthews said. “With this review Shell have set the benchmark for best practice on corporate climate lobbying not just within oil and gas but across all industries. The challenge now is for others to follow suit.”

Walk Away

Shell also found “some” misalignment with nine other trade associations, including the American Petroleum Institute, the oil and gas industry’s main lobby.

Shell said that while it had some climate-related differences with the API, it welcomed the lobby’s advocacy on a range of state and federal issues such as trade and transport, as well as the API’s efforts to reduce methane emissions.

Shell said it will continue to engage with the API and other groups over climate policies and monitor their alignment.

Shell last month urged President Donald Trump’s administration to tighten restrictions on emissions of methane, a potent greenhouse gas, instead of weakening them as planned.
…

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As movie theater owners converge on Las Vegas for their annual convention, one topic that keeps coming up is how they contend with a company that has resisted their traditional business model: Netflix.

The world’s most successful streaming service sends some movies to theaters but has insisted on making them available on Netflix at the same time, or just a few weeks later. That has upset big movie chains, which refuse to show Netflix films and want a longer “window” of time to play films exclusively.

The issue of how Netflix fits into, or threatens, the theater business dominated a press conference on Tuesday at CinemaCon, the theater industry trade show.

“All of your questions from the first 17 minutes or whatever are about Netflix,” grumbled John Fithian, president and chief executive of the National Association of Theatre Owners.

He insisted that Netflix and theaters can happily co-exist, citing data that showed the biggest consumers of streaming video visit theaters more often. He also said Netflix had helped revive interest in documentaries, which had helped draw people to theaters to see them.

Earlier, Fithian told a crowd in a Caesars Palace theater that films reached their full potential only with a “robust theatrical release.” He spoke just after “Crazy Rich Asians” director Jon M. Chu said his film would not have had as big an impact if it had debuted on a streaming service.

Some members of the Academy of Motion Picture Arts & Sciences, the group that hands out the Oscars, have been debating whether films must play in theaters for a specific length of time to compete for the awards, which could exclude Netflix or force the company to agree to longer exclusive theatrical runs.

Department of Justice Weighs In

Hollywood publication Variety reported on Tuesday that the Department of Justice had weighed in on the issue.

Antitrust chief Makan Delrahim sent a letter to the academy warning that any changes that limited eligibility for the industry’s highest honors “may raise antitrust concerns,” according to Variety.

An academy spokesperson confirmed it had received the letter and said any rule changes would be considered at an April 23 meeting. A source close to Netflix said the company was not involved with or aware of the Justice Department’s letter.

Netflix is a member of the Motion Picture Association of America, the trade association for Walt Disney Co., AT&T’s Warner Bros. and other movie studios.

“We are all stronger advocates for creativity and the entertainment business when we are working together … all of us,” MPAA CEO Charles Rivkin said on the CinemaCon stage.

Both Rivkin and Fithian noted that box office receipts hit a record $11.9 billion in the United States and Canada in 2018 even as Netflix released dozens of original movies.

Mitch Neuhauser, managing director of CinemaCon, also was asked to address the issue when he wandered into a work room for reporters.

“Streaming is not a problem!” he exclaimed, noting that there are limits to how much people can stand to stay at home with all of the modern conveniences including grocery delivery. “We’ve got to get out of the house. We are talking about becoming a society of hermits!”
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Three of the eight countries to which Washington granted waivers to import Iranian oil have now cut their shipments from Iran to zero, a U.S. special representative said on Tuesday.

While the United States has set a target of driving Iranian oil exports to zero, it granted temporary import waivers to China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea.

“In November, we granted eight oil waivers to avoid a spike in the price of oil. I can confirm today three of those importers are now at zero,” Brian Hook, the envoy on Iran, told reporters.

Hook did not identify the three countries.

“There are better market conditions for us to accelerate our path to zero. We are not looking to grant any waivers or exceptions to our sanctions regime,” Hook said.

A senior Trump administration official told reporters on Monday that the U.S. government was considering additional sanctions against Iran that would target areas of its economy that have not been hit before.

The administration aimed to follow through with new sanctions around the anniversary of U.S. President Donald Trump’s announcement last May withdrawing the United States from a 2015 nuclear deal between Iran and several world powers, the official said.

The accord sought to prevent Iran from developing a nuclear bomb in return for the removal of sanctions that had crippled its economy. Trump ordered U.S. sanctions to be reimposed on Iran.
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Three of the eight countries to which Washington granted waivers to import Iranian oil have now cut their shipments from Iran to zero, a U.S. special representative said on Tuesday.

While the United States has set a target of driving Iranian oil exports to zero, it granted temporary import waivers to China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea.

“In November, we granted eight oil waivers to avoid a spike in the price of oil. I can confirm today three of those importers are now at zero,” Brian Hook, the envoy on Iran, told reporters.

Hook did not identify the three countries.

“There are better market conditions for us to accelerate our path to zero. We are not looking to grant any waivers or exceptions to our sanctions regime,” Hook said.

A senior Trump administration official told reporters on Monday that the U.S. government was considering additional sanctions against Iran that would target areas of its economy that have not been hit before.

The administration aimed to follow through with new sanctions around the anniversary of U.S. President Donald Trump’s announcement last May withdrawing the United States from a 2015 nuclear deal between Iran and several world powers, the official said.

The accord sought to prevent Iran from developing a nuclear bomb in return for the removal of sanctions that had crippled its economy. Trump ordered U.S. sanctions to be reimposed on Iran.
…

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Vice President Mike Pence said on Tuesday the United States would continue to pressure Venezuela’s oil industry and those who support it with economic sanctions, citing world oil prices as low enough to allow for the measures.

Oil prices hit their highest point since November on Tuesday, with Brent crude approaching $70 a barrel, based in part on fears that U.S. sanctions against OPEC members Iran and Venezuela would result in a cut to global supplies.

“We recognize the importance of energy to the United States,” Pence told reporters. “But the price of oil around the world has been quite low for some time, quite competitive for some time, and we’re just going to continue to stand firm and bring even more pressure on this regime,” he said.

A White House official said while oil prices have crept up from historic lows recently, prices are still under last year’s highs.

Pence’s comments stood in contrast to concerns that President Donald Trump has voiced about oil prices. As recently as last week, Trump called for the Organization of the Petroleum Exporting Countries to boost production, saying on Twitter that the price of oil was “getting too high.”

Pence, who is helping lead the White House campaign to dislodge Venezuelan President Nicolas Maduro from power, made his remarks in a meeting with family members of six executives jailed in Venezuela since 2017. The executives worked for Citgo Petroleum, the U.S. refinery division of Venezuelan state oil firm PDVSA.

The United States and most other Western countries have backed Venezuelan opposition leader Juan Guaido, who declared himself interim president in January, arguing that Maduro’s 2018 reelection was illegitimate. Maduro has called Guaido a puppet of the United States.

The United States slapped stiff sanctions on PDVSA in January, aimed at cutting Maduro’s government off from oil revenues.

Trump is considering expanding the measures with sanctions on foreign companies that do business with Venezuela, his national security adviser John Bolton said on Friday.

“We’re going to continue to bring pressure on the oil industry. We’re going to continue to bring pressure on countries in this hemisphere who are supporting the dictatorship in Venezuela,” Pence said.

Pence also said the Trump administration was considering new measures to punish Cuba, which has close ties with Maduro.

“We’re looking at strong action against Cuba which continues to provide personnel and support for the dictatorship in Venezuela,” he said.

‘Worried for Their Life’

Pence expressed sympathy to the family members of the six Citgo executives – five U.S. citizens and one legal permanent resident – who were arrested in Caracas during corporate meetings and accused of embezzlement and money laundering.

Pence said the men had been “illegally detained” and that 16 court hearings had been canceled as the men languished in basement cells without enough food or medical treatment. He said the Trump administration was working for the prisoners’ release.

“We are just worried for their life and we just want them home as soon as possible,” said Carlos Anez, who told Pence his father had worked for Citgo for more than 20 years before he was detained.
…

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Vice President Mike Pence said on Tuesday the United States would continue to pressure Venezuela’s oil industry and those who support it with economic sanctions, citing world oil prices as low enough to allow for the measures.

Oil prices hit their highest point since November on Tuesday, with Brent crude approaching $70 a barrel, based in part on fears that U.S. sanctions against OPEC members Iran and Venezuela would result in a cut to global supplies.

“We recognize the importance of energy to the United States,” Pence told reporters. “But the price of oil around the world has been quite low for some time, quite competitive for some time, and we’re just going to continue to stand firm and bring even more pressure on this regime,” he said.

A White House official said while oil prices have crept up from historic lows recently, prices are still under last year’s highs.

Pence’s comments stood in contrast to concerns that President Donald Trump has voiced about oil prices. As recently as last week, Trump called for the Organization of the Petroleum Exporting Countries to boost production, saying on Twitter that the price of oil was “getting too high.”

Pence, who is helping lead the White House campaign to dislodge Venezuelan President Nicolas Maduro from power, made his remarks in a meeting with family members of six executives jailed in Venezuela since 2017. The executives worked for Citgo Petroleum, the U.S. refinery division of Venezuelan state oil firm PDVSA.

The United States and most other Western countries have backed Venezuelan opposition leader Juan Guaido, who declared himself interim president in January, arguing that Maduro’s 2018 reelection was illegitimate. Maduro has called Guaido a puppet of the United States.

The United States slapped stiff sanctions on PDVSA in January, aimed at cutting Maduro’s government off from oil revenues.

Trump is considering expanding the measures with sanctions on foreign companies that do business with Venezuela, his national security adviser John Bolton said on Friday.

“We’re going to continue to bring pressure on the oil industry. We’re going to continue to bring pressure on countries in this hemisphere who are supporting the dictatorship in Venezuela,” Pence said.

Pence also said the Trump administration was considering new measures to punish Cuba, which has close ties with Maduro.

“We’re looking at strong action against Cuba which continues to provide personnel and support for the dictatorship in Venezuela,” he said.

‘Worried for Their Life’

Pence expressed sympathy to the family members of the six Citgo executives – five U.S. citizens and one legal permanent resident – who were arrested in Caracas during corporate meetings and accused of embezzlement and money laundering.

Pence said the men had been “illegally detained” and that 16 court hearings had been canceled as the men languished in basement cells without enough food or medical treatment. He said the Trump administration was working for the prisoners’ release.

“We are just worried for their life and we just want them home as soon as possible,” said Carlos Anez, who told Pence his father had worked for Citgo for more than 20 years before he was detained.
…

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Senior Brazilian officials charged with steering pension reform through Congress presented a united front on Tuesday, insisting on an end to the political finger-pointing in recent weeks that threw the government’s signature reform bill into doubt.

Brazilian stocks hit a nearly three-month low last week on growing signs of political infighting and skepticism that President Jair Bolsonaro was fully committed to the political consensus-building needed to get lawmakers to pass his pension reform bill.

But the message on Tuesday from Vice President Hamilton Mourao, Labor and Pensions Secretary Rogerio Marinho and the government’s leader in the lower house, Vitor Hugo, was that the government is listening and willing to work with Congress.

“We have high expectations that parliament will approve pension reform in the coming months, and then it’s onto tax reform,” Mourao said at an event in Rio de Janeiro.

Vitor Hugo said “a page had been turned” from the tension of last week, adding that Bolsonaro and his top ministers are getting more involved in the negotiations with lawmakers to build the political support needed to get passage approved.

Still, Brazil’s benchmark Bovespa stock index slipped nearly 1%  on Tuesday tracking losses.

The government’s plan targets over 1 trillion reais ($260 billion) in savings over the next decade from a radical overhaul of the social security system. Economists insist this is needed to shore up the public finances, revive the economy and boost investor confidence in Brazil.

But the proposal is likely to be watered down as lawmakers extract concessions and exemptions. Military personnel have already secured pay raises that almost fully make up for losses from later retirement ages and more required contributions.

Marinho said that the government continues to analyze benefits for rural and disabled Brazilians, two points that have provoked the strongest opposition in Congress.

A lawmaker survey run by transparency group Atlas Politico on Tuesday showed that the government currently has the support of 171 of the 308 lawmakers needed for the bill’s passage in the lower house, which would send the proposal to the Senate.
…

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Senior Brazilian officials charged with steering pension reform through Congress presented a united front on Tuesday, insisting on an end to the political finger-pointing in recent weeks that threw the government’s signature reform bill into doubt.

Brazilian stocks hit a nearly three-month low last week on growing signs of political infighting and skepticism that President Jair Bolsonaro was fully committed to the political consensus-building needed to get lawmakers to pass his pension reform bill.

But the message on Tuesday from Vice President Hamilton Mourao, Labor and Pensions Secretary Rogerio Marinho and the government’s leader in the lower house, Vitor Hugo, was that the government is listening and willing to work with Congress.

“We have high expectations that parliament will approve pension reform in the coming months, and then it’s onto tax reform,” Mourao said at an event in Rio de Janeiro.

Vitor Hugo said “a page had been turned” from the tension of last week, adding that Bolsonaro and his top ministers are getting more involved in the negotiations with lawmakers to build the political support needed to get passage approved.

Still, Brazil’s benchmark Bovespa stock index slipped nearly 1%  on Tuesday tracking losses.

The government’s plan targets over 1 trillion reais ($260 billion) in savings over the next decade from a radical overhaul of the social security system. Economists insist this is needed to shore up the public finances, revive the economy and boost investor confidence in Brazil.

But the proposal is likely to be watered down as lawmakers extract concessions and exemptions. Military personnel have already secured pay raises that almost fully make up for losses from later retirement ages and more required contributions.

Marinho said that the government continues to analyze benefits for rural and disabled Brazilians, two points that have provoked the strongest opposition in Congress.

A lawmaker survey run by transparency group Atlas Politico on Tuesday showed that the government currently has the support of 171 of the 308 lawmakers needed for the bill’s passage in the lower house, which would send the proposal to the Senate.
…

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