She is many things that would seem to irritate President Donald Trump: a liberal Canadian former journalist.

That makes Foreign Minister Chrystia Freeland an unusual choice to lead Canada’s negotiations over a new free trade deal with a surprisingly hostile U.S. administration.

Recruited into politics by Prime Minister Justin Trudeau, Freeland has already clashed with Russia and Saudi Arabia. Those who know her say she’s unlikely to back down in a confrontation with Trump.

“She is everything the Trump administration loathes,” said Sarah Goldfeder, a former official with the U.S. Embassy in Canada.

Freeland, a globalist negotiating with a U.S. administration that believes in economic nationalism and populism, hopes to salvage a free trade deal with Canada’s largest trading partner as talks resumed Wednesday in Washington. The 50-year-old Harvard graduate and Rhodes scholar speaks five languages and has influential friends around the world.

“I have enormous sympathy for her because she is negotiating with an unpredictable, irrational partner,” said CNN host Fareed Zakaria, a friend of Freeland’s for 25 years.

Freeland cut short a trip to Europe last week after Trump reached a deal with Mexico that excluded Canada. Talks with Canada resumed but Trump said he wasn’t willing to make any concessions.

The Trump administration left Canada out of the talks for five weeks not long after the president vowed to make Canada pay after Trudeau said at the G-7 in Quebec he wouldn’t let Canada get pushed around in trade talks. Freeland then poked the U.S. when she received Foreign Policy magazine’s diplomat of the year award in Washington.

“You may feel today that your size allows you to go mano-a-mano with your traditional adversaries and be guaranteed to win,” Freeland said in the June speech. “But if history tells us one thing, it is that no one nation’s pre-eminence is eternal.”

Despite being the chief negotiator with the Trump administration, Freeland has criticized it when few other leaders of Western democracies have.

“She’s an extremely strong-willed and capable young woman, and I think Trump generally has a problem with that,” said Ian Bremmer, a longtime friend and foreign affairs columnist and president of the Eurasia Group. “She’s not going to bat her eyelashes at Trump to get something done. That’s not Chrystia. She doesn’t play games.”

After Freeland and her department tweeted criticism of Saudi Arabia last month for the arrest of social activists in the kingdom, Canada suffered consequences. The Saudis suspended diplomatic relations and canceled new trade with Canada and sold off Canadian assets.

Peter MacKay, a former Canadian foreign minister, said public shaming like that doesn’t work and said some Americans viewed her June speech in Washington as something less than diplomatic.

“It was around that time, within days, that the U.S. threw Canada out of the room,” MacKay said. “There is sometimes concern that she is taking the lead from her prime minister by playing a little bit to a domestic audience.”

Trudeau personally recruited Freeland to join his Liberal Party while it was the third party in Parliament in 2013. Freeland had a senior position at the Reuters news agency but was ready to move on after setbacks in her journalism career, said Martin Wolf, an influential Financial Times columnist and longtime friend.

Freeland previously had risen rapidly at the Financial Times where she became Moscow bureau chief in her mid-20s during the collapse of the Soviet Union.

Freeland also served as deputy editor of the Globe and Mail in Toronto and the Financial Times. She had designs on becoming editor of the Financial Times but left after a clash with the top editor. She was familiar to many TV viewers in the U.S. because of her regular appearances on talk shows like Zakaria’s.

“She was a godsend for us, frankly, because she is so bright and so talented and articulate,” Zakaria said. “She is as about as impressive a person as I have met.”

Freeland, who is of Ukrainian heritage, also wrote a well-received book on Russia and left journalism for politics in 2013 when she won a district in Toronto. She has been a frequent critic of Russian President Vladimir Putin, who banned her from traveling to the country in 2014 in retaliation for Western sanctions against Moscow.

She remains chummy with journalists, even bringing them frozen treats in 90-degree heat last week while they waited outside the U.S. Trade Representative office in Washington.

Bremmer, who met Freeland in Kiev in 1992, good-naturedly chided her for a strange foible: a habit of writing notes on her hands even when she has notepads.

“I have seen in her environments with foreign ministers and heads of state with stuff on her hands,” he said with a laugh.

Throughout her career, Freeland has cultivated an impressive group of friends. Mark Carney, the Bank of England governor, is a godfather to one of her three children. Friends include Larry Summers, the former U.S. treasury secretary, and billionaires George Soros and Stephen Schwarzman, the Blackstone Group chief executive who once led one of Trump’s disbanded business councils.

“I always found her to be extremely smart and easy to talk with,” Schwarzman said. “She accessible and direct and quick. You don’t get to be a Rhodes scholar by accident.”

Summers is a mentor from Harvard.

“Her clarity of thought, straightforwardness and deep sense of principle make her an ideal leader of the international community as it responds to highly problematic American policy,” Summers said in an email.

Bremmer said Freeland has serious globalist credentials, “but right now, momentum is not with that group globally.”

When Trudeau became prime minister in 2015, he named Freeland to his Cabinet. She served as international trade minister and worked on ensuring that a free trade deal with the European Union didn’t unravel. At one point, she left stalled talks near tears after saying it had been impossible to overcome differences. An agreement was reached not long after that, and Freeland received credit.

Now she’s facing her toughest challenge with the North American Free Trade Agreement, since the U.S. represents 75 percent of Canada’s exports.

“Canada is stuck with the United States. That’s Canada’s trade,” Bremmer said. “Canadians are going to have to swallow a fair amount of pride. They are going have to pretend they like this guy a lot more than they obviously do or they risk getting much more economically punished. That’s just the reality.”
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Trump administration officials and Canadian negotiators are resuming talks to try to keep Canada in a North American trade bloc with the United States and Mexico.

“We are looking forward to constructive conversations today,” Canadian Foreign Affairs Minister Chrystia Freeland told reporters as she entered a meeting with U.S. Trade Rep. Robert Lighthizer.

Last week, the United States and Mexico reached a preliminary agreement to replace the 24-year-old North American Free Trade Agreement. But those talks excluded Canada, the third NAFTA country.

 

Freeland flew to Washington last week for four days of negotiations to try to keep Canada within the regional trade bloc. The U.S. and Canada are sparring over issues including U.S. access to Canada’s protected dairy market and American plans to protect some drug companies from generic competition.

 

 
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An international money transfer company has launched an online service for East Africans to send and receive money more easily. Analysts say WorldRemit will lower the cost of transferring money and boost African trade and economies.

Africa has become a thriving market for money transfer companies as its telecommunication facilities improve and its economies grow.

WorldRemit, a British-based money transfer company, recently launched a new digital service in four East African countries. The company facilitates the transfer of at least $1.6 billion to Africa each year.

The co-founder and the head of WorldRemit, Ismail Ahmed, told VOA how money transfers in Africa have changed over the years.

“When we launched our services, 99 percent of remittances were cash both on the sending and receiving side. But today that is changing fast and in the next few years we think as much as 50 to 60 percent of international remittances would move from traditional physical cash, traditional remittances, to digital. And that’s why our services has grown very fast in the last few years,” he said.

Ahmed said that as transactions become digital, the cost of each transfer comes down, and tracking money becomes easier.

“It’s easier for businesses and individuals to move within countries but also across countries. It’s easier to fight financial crime because once the transaction becomes digital, there is an audit trail compared to cash where there is no audit trail,” he said.

Gerrishon Ikiara is an international economic affairs lecturer at the University of Nairobi. He said digital money transfers will boost trade within Africa — but notes that some countries still lack the necessary connections.

“Obviously, the main challenge is the level of infrastructure, because a country without the good infrastructure in terms of electricity and telecommunication infrastructure will make it a bit difficult,” said Ikiara.

The World Bank says $37.8 billion was sent to Africa through remittances in 2017. This year, the amount is expected to be $39 billion.
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First it was Argentina, quickly followed by Turkey. Now anxious investors and policy-makers are watching with alarm the plummeting currencies of several emerging-market economies, most of which have borrowed heavily in dollars.

The nosediving currencies are prompting fears of a repeat of the 1997 Asian financial crash or the “Tequila Effect” of Mexico’s 1994 financial crisis. Or is something even worse coming — a financial contagion to compare with 2008?

Argentina’s peso dropped 29 percent against the U.S. dollar in August, the worst performer among major emerging-market currencies. Turkey’s currency followed closely, with a 25 percent slide.South Africa’s rand saw an almost 10 percent drop. The Indonesian rupiah fell to its weakest level since the 1997 Asian financial crisis, while India’s currency slid into unprecedented territory against the dollar.

September has seen no major uplift in those currencies. The Turkish lira is down 40 percent to the U.S. dollar this year, sparking mounting alarm over the sustainability of the country’s sizable dollar-denominated debts held primarily by its banks and businesses rather than the government.

The foreign exchange markets are jittery with traders watching to see if more countries start joining the troubled list, which would indicate contagion is underway. African countries like Angola, Ghana, Ethiopia, and Mozambique could be vulnerable. And in a worst-case scenario even more developed economies like Chile, Poland and Hungary, which are also shouldering large foreign-currency debts above 50 percent of their GDPs, could be impacted, say some financial analysts.

Corporate debt in emerging and developing economies is significantly larger than it was before the 2008 global financial crisis.The bigger the debt, the harder the fall.

“The risk is increasing in those countries,” Bertrand Delgado, director of global markets for Societe Generale in New York, has warned.

There is general consensus why emerging markets are in turmoil. Three main developments are blamed:

1 – The impact on market sentiment from U.S. President Donald Trump’s tit-for-tat trade war with China and others

2 – Rising U.S. interest rate that has prompted global investors to exit emerging markets to chase yield in dollar investments

3 – The winding down of post-2008 quantitative easing by the U.S. Federal Reserve and the European Central Bank, which has reduced liquidity and the availability of cheap money for governments and businesses in emerging markets to borrow.

A global financial crash?

Marcus Ashworth of Bloomberg cautioned last week the emerging-markets sell-off looks contagious.

“The difficulties for emerging markets have entered a new phase.What were once clearly country-specific crises, well contained within their borders, are bleeding across the world,” he warned.

Ashworth, a columnist and a veteran of the banking industry, most recently as chief markets strategist at Haitong Securities in London, added, “One emerging country’s problems have become other emerging countries’ problems, and it’s hard to see how to break the cycle.”

Other analysts dispute that contagion is underway, saying each of the troubled states have their own idiosyncratic problems and country-specific challenges, although they acknowledge the turmoil could mount with the U.S. Federal Reserve expected to raise interest rates several times this year.

In a note to investors, DBS, a Singapore-based international financial services group, warned the currencies of Argentina and Turkey “have been struggling with rising U.S. rates since the start of the year, due to deficits in their fiscal and current account balances.

“Heightened trade tensions threatening to erupt into a full-blown trade war could prompt, DBS said, disorderly capital outflows leading to “financial instability, especially in countries that have high external debt levels.”

Britain’s The Economist magazine argues the weakness in emerging-market currencies “is not fundamentally contagious” and the fallout can be contained.Western lenders including banks will be impacted, it said, as emerging-market borrowers struggle to repay dollar and other foreign-currency debts now worth more in terms of their own currencies. “But it would not threaten their [Western lenders’] solvency,” it said.

Optimists say for all the wider currency woes and the economic weakness of Argentina and Turkey, many major emerging-market countries are doing well.

India’s GDP was growing at an 8 percent rate ending June. Mexico’s peso is steady and it appears to have concluded trade negotiations with the Trump White House, which markets are viewing favorably.

The optimists say the global scare is being fanned by screaming, doom-laden headlines, pointing out that in 2013, when the U.S. Federal Reserve started to cease Quantitative Easing, Brazil, India, Indonesia, Turkey and South Africa all suffered from currency depreciation, but they soon regained their footing.

The biggest emerging-market risk, though, is that rattled global investors could be so alarmed by currency turmoils that they ignore economic fundamentals and stampede away from emerging-market countries, compounding currency falls, triggering indirect contagion, and adding to debt burdens.
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In the era of superfoods, Maine blueberries aren’t so super.

 

The Maine wild blueberry industry harvests one of the most beloved fruit crops in New England, but it’s locked in a downward skid in a time when other nutrition-packed foods, from acai to quinoa, dominate the conversation about how to eat. And questions linger about when, and if, the berry will be able to make a comeback.

 

The little blueberries are touted by health food bloggers and natural food stores because of their hefty dose of antioxidants. They’re also deeply ingrained in the culture of New England, and they were the inspiration for “Blueberries for Sal,” a beloved 1948 children’s book.​

But the industry that picks and sells them is dealing with a long-term price drop, drought, freezes, diseases and foreign competition, and farmers are looking at a second consecutive year of reduced crop size.

At Beech Hill Blueberry Farm in Rockport, this year’s harvest was off by about 50 percent, said Ian Stewart, who runs the land trust that manages the farm.

 

“Our year was a little underwhelming. There was a lot of drought. There was a freeze at a bad time,” Stewart said. “We’re hoping it’s a blip. We’ll see.”

North America’s wild blueberry industry exists only in Maine and Atlantic Canada, and an oversupply of berries in both places caused prices to harvesters to plummet around 2015. Recent years have brought new challenges, such as particularly bad spells of mummy berry disease, a fungal pathogen, and difficulty in opening up new markets.

 

The blueberries grow wild, as the name implies, in fields called “blueberry barrens” that stretch to the horizon in Maine’s rural Down East region. While the plumper cultivated blueberries harvested in states like New Jersey are planted and grown as crops, harvesters of wild blueberries tend to a naturally occurring fruit and pick it by hand and with machinery.

 

Woes in the industry have caused some growers to scale back operations in Maine. Harvesters collected a little less than 68 million pounds of wild blueberries in the state in 2017, which was the lowest total since 2005 and more than 33 million pounds less than 2016. Last year’s price of 26 cents per pound to farmers was also the lowest since 1985, and was more in line with the kind of prices farmers saw in the early 1970s than in the modern era.

This year’s harvest was mostly wrapped by late August, a little earlier than usual, and members of the industry said they believe it was another year of lower harvest. Exact totals aren’t available yet, but signs point to a crop that’s “similar to last year, or even smaller,” said Nancy McBrady, executive director of the Wild Blueberry Commission of Maine.

The industry has tried to focus on growing the appeal of the health aspects of wild blueberries, which are richer in antioxidants than their cultivated cousins, but it has been a slow climb, McBrady said.

 

“For years, the health message and the taste message of wild blueberries has been successful,” she said. “But it’s frustrating when we find ourselves in periods of oversupply and competition.”

 

Nearly 100 percent of the wild crop is frozen, and the berries are used in frozen and processed foods. Prices to consumers at farm stands and grocery stores have held about steady in the face of falling prices to harvesters.

 

The same berries are harvested in Quebec, New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island, and the weakness of the Canadian dollar has also hurt the U.S. industry because Canadian berries sell for less. Some companies operate on both sides of the border, and an equal exchange rate is better for business.

 

Such financial stress played a role in growers harvesting 5,000 fewer acres in the U.S. last year, said David Yarborough, a horticulture professor at the University of Maine. He said he expects a similar drop this year.

 

Other factors, such as poor pollination last year, have also held the crop back, Yarborough said. He stopped short of describing the industry as in full-blown crisis, but he said some smaller growers are in crisis mode.

The industry at large is hoping it doesn’t suffer too many more down years, said Homer Woodward, vice president of operations for Jasper Wyman & Son, a major industry player.

 

“I think the state of Maine is going to pick less pounds than last year. That’s the product of economic downturn,” said Woodward said. “And mother nature was cruel to us this year.”
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Frustrated Venezuelan drivers faced lengthy lines for gasoline in border states Tuesday as the government struggled to roll out a new payment system that President Nicolas Maduro says will reduce smuggling of heavily subsidized fuel.

Maduro says the payment system will pave the way for charging international prices for fuel, a massive increase given that gas is now almost free, as his government seeks to shore up state coffers amid a hyperinflationary economic meltdown.

Any increase would mark the first time in 20 years that the OPEC member has significantly raised domestic fuel prices, which have been a sensitive issue ever since deadly riots broke out in 1989 in response to austerity measures that included higher gasoline prices.

​Fatherland Card flops

The pilot program that began Tuesday in eight states was supposed to provide service stations with wireless devices that use a state-backed identification document called the Fatherland Card to carry out fuel transactions.

“I see a lot of disorganization because they haven’t started making this work yet,” said Jose Coronel, 26, a civil servant, as he waited in line at a gas station in the border town of Ureña. “I can see that it’s difficult to control smuggling.”

At gas stations along the border with neighboring Colombia, the new machines were either not installed or not functioning properly, according to drivers filling up their tanks and two gas station attendants in two different states.

The new payment system will provide a subsidy to motorists with a Fatherland Card, directly reimbursing them for gasoline purchases, once the domestic fuel price hikes take effect.

Maduro says that will help soften the impact of a steep price increase.

Drivers on the border started lining up as early as Monday afternoon on concerns that the price hikes would be immediate or that stations would run out of fuel.

The Information Ministry did not immediately reply to a request for comment.

​Gas card or surveillance tool

Experts estimate Venezuela, where shortages of food and medicine have fueled hunger, disease and a mass exodus of citizens, loses at least $5 billion per year as a result of not selling gasoline at international prices.

Maduro on Monday said gasoline would rise to international price levels by October, without offering details.

The use of the Fatherland Card has drawn intense criticism from government critics, who say it is a mechanism to gather information about citizens that the ruling Socialist Party can use against adversaries by withholding basic services from them.

The government offers some benefits including subsidized food, access to scarce medicine and cash bonuses to holders of the card. Maduro says it will help combat an “economic war” led by opposition politicians with the help of Washington.

Fuel prices have stayed relatively steady for years even though inflation is projected by the IMF to reach 1,000,000 percent.

Unay Bayona, 24, an independent merchant, said he doubted prices would ever rise enough to match those in Colombia, and that residents would continue to view contraband as an option.

“Smuggling is going to continue because there is no other way to make a living,” Bayona said, at the entrance to a service station in Ureña.
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Argentina will have to wait at least until the second half of September to find out whether the International Monetary Fund will agree to the early release of a credit line under a $50 billion backup financing arrangement approved earlier this year, Economy Minister Nicolas Dujovne said Tuesday.

 

Dujovne declined to say how much money he had requested during a meeting with IMF Managing Director Christine Lagarde.

 

“All this requires a formal procedure so it receives an agreement at the staff level, which could be taken before the board,” Dujovne told reporters after the meeting, adding that he expects the IMF to vote on the request in the second half of the month.

 

Lagarde said they made progress in the meeting.

 

“Our discussions will now continue at a technical level and, as stated before, our common objective is to reach a rapid conclusion to present a proposal to the IMF Executive Board,” she said in a statement.

 

While the meeting between Dujovne and Lagarde was grabbing most of the headlines, the Argentine peso kept losing value. The U.S. dollar closed Tuesday at 39.50 pesos per unit compared to 38 the day before. The peso has devaluated around 53 percent so far this year.

 

Dujovne’s meeting with the IMF’s managing director followed a morning session with U.S. Treasury Secretary Steve Mnuchin.

 

Meanwhile, President Donald Trump spoke with Argentine President Mauricio Macri on Tuesday.

 

A statement from Trump said that “President Macri is doing an excellent job with this very difficult economic and financial situation.”

 

Macri on Monday announced new taxes on exports and the elimination of several ministries.
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A tiny Alaska Native village has experienced a boom in tourism in recent years as polar bears spend more time on land than on diminishing Arctic sea ice.

More than 2,000 people visited the northern Alaska village of Kaktovik on the Beaufort Sea last year to see polar bears in the wild, Alaska’s Energy Desk reported Monday. 

The far north community is located on north shore of Barter Island on the Beaufort Sea coast in an area where rapid global warming has sped up the movement of sea ice, the primary habitat of polar bears. As ice has receded to deep water beyond the continental shelf, more bears are remaining on land to look for food. 

The village had fewer than 50 visitors annually before 2011, said Jennifer Reed of the Arctic National Wildlife Refuge.

“Today we’re talking about hundreds and hundreds of visitors, many from around the world, each year,” Reed said. 

Polar bears have always been a common sight on sea ice near Kaktovik, but residents started noticing a change in the mid-1990s. More bears seemed to stay on land, and researchers began taking note of more female bears making dens in the snow on land instead of on the ice.

U.S. Fish and Wildlife Service biologists began hearing reports of increasing numbers of polar bears in the area in the early 2000s, Reed said. As more attention was given to the plight of polar bears about a decade ago, more tourists stated heading to Kaktovik.

Bears stranded

Most tourists visit in the fall, when bears are forced toward land because sea ice is the farthest away from the shore. Some bears become stranded near Kaktovik until the sea freezes again in October or November.

The fall is also when residents of Kaktovik kill three bowhead whales. Bruce Inglangasak, an Inupiaq subsistence hunter who offers wildlife viewing tours, said residents were unsure how tourists would react to whaling. 

“The community was scared about, you know, activists that were going to try to get us to shut down the whaling — subsistence whaling,” Inglangasak said. “But that’s not true.”

Inglangasak said he’s been offering polar bear tours since 2003 or 2004. Most of his clients are from China and Europe, as well as from the Lower 48 U.S. states, and arrive in Katovik on charter planes from Anchorage and Fairbanks. 

Many tourists stay several days in the village, which has two small hotels, Inglangasak said.
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If you already subscribe to digital services like Netflix to binge on TV shows and Spotify to groove to an endless mix of music, the auto industry might have a deal for you: Subscribe to your next car as well.

Make that cars, plural. Some of these packages — which charge a monthly fee for the bundled use of a car, insurance and maintenance — let you trade in your vehicle on a regular basis, sometimes almost as readily as you can skip to a new tune on Spotify.

These still-developing car subscription programs are gaining traction among motorists who don’t want to be locked into the hassles of car ownership or even multiyear leasing commitments. All they want is a vehicle available whenever they want or need it.

“It feels like Christmas morning every time they bring me a new car,” said Steve Barnes, a video producer who subscribes to a high-end vehicle subscription program offered through Clutch Technologies, a startup operating in the Atlanta area.

Although they’re still in their infancy, car subscriptions are hooking more motorists as both long-established automakers and startups roll out plans.

How it works

Ford, a 115-year-old automaker with a network of more than 3,000 dealers, expanded into car subscriptions about 16 months ago through Canvas, a subsidiary in San Francisco.

Canvas offers a variety of used, once-leased Ford and Lincoln models as subscriptions that cost anywhere from $379 per month (for a Ford Fiesta subcompact) to $1,125 per month (for a Lincoln Navigator luxury SUV).

Those plans, however, impose driving limits of 500 miles a month. Subscribers can pay extra for higher limits — $35 per month for an additional 350 miles, for instance, or $100 per month for unlimited travel. Unused miles in any given month can be rolled over to the next one. If Canvas customers exceed the monthly mileage limits under their plan, they are charged an additional 15 cents per mile for a Ford car and slightly more for a Lincoln vehicle.

So far, Canvas has limited subscriptions to the San Francisco and Los Angeles area. In its first 16 months in California, thousands of subscribers have signed up for its subscription service while collectively driving about 8.5 million miles, according to the company.

“People are generally changing the way they are working, they are changing the way they are living and they are generally changing the way they are consuming things,” Canvas CEO Ned Ryan said. “Subscriptions are going to be a very large and growing share of how people consume automobiles.”

About a third of Canvas customers decided to subscribe to cars after moving or some other major event that left them reluctant to make a bigger commitment to leasing or owning, Ryan said. Others just like the simplicity and convenience offered by a car subscription, he said.

Temporary arrangement

Liz Dreskin of San Rafael, California, signed up for Canvas earlier this year to help her college-age kids get around at home during their summer break. Both are under the company’s 21-year-old age limit, so Dreskin got a vehicle for herself while allowing her children to drive the BMW she already owned.

After starting off with a sports utility vehicle from Canvas, she decided to pay $99 to switch to a 2015 Mustang. Although she plans to suspend her $500 monthly subscription at the end of September, she intends to start it up again when her kids return for the holidays. She’s also recommending the service to a friend whose current car is breaking down.

“I could totally see myself doing this in the future so I don’t have to deal with car insurance and car payments,” said Dreskin, 52.

Luxury automakers such as BMW, Mercedes-Benz, Porsche and General Motors’ Cadillac brand also are offering subscription programs, but those are primarily catering to affluent drivers who want to try out a variety of expensive vehicles.

Barnes, the video producer, signed up with Clutch in 2016 for access to luxury vehicles. The divorced father will get a sports utility vehicle when he has custody of his daughters or a Tesla sports car or something else fun to drive when he’s headed out on the town with his current wife.

He pays about $1,400 per month for his Clutch subscription, substantially more than the roughly $900 per month he used to pay for a lease on a Tahoe and his insurance policy. But he says he can’t imagine ever owning or leasing a car again now that he’s driven dozens of different vehicles that he estimates would have cost him more than $1 million to own.

“I am definitely a ‘tech head’ who had always fantasized about being able to get whatever car you want,” Barnes said. 
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Turkey saw the inflation rate rise to nearly 18 percent in August, a 15-year high fueled by a collapse in the Turkish lira, which fell more than 20 percent over the past few weeks.

The rising inflation and a falling currency are stoking fears Turkey is on the verge of financial and economic crisis.

“It’s the beginning of the slippery slope. It’s going to get worse unless there is a miraculous improvement in the exchange rate,” political analyst Atilla Yesilada of Global Source Partners said. “We’ve reached the stage where there is nothing to anchor price expectations. People simply can’t gauge what prices or wages or costs will be next month.”

“It’s a very dismal set of numbers. The likelihood is headline inflation will reach 20 percent in (the) coming months,” economist Inan Demir of Nomura Securities said. “This is clearly a set of numbers that warrant a monetary response from inflation targeting the central bank.”

The Turkish Central Bank, in a statement on its website, vowed to act, promising to use all tools at its disposal and reshape its monetary policy stance at a Sept. 13 meeting where they will discuss interest rates.

The lira recouped much of its initial heavy losses following the release of the latest inflation figures.

“This (the central bank statement) is seen as a signal for a rate hike in that meeting,” Demir said. “Even though the wording of the statement is very uncertain, the expectation of tightening are curbing lira weakness after bad inflation numbers.”

International criticism

International investors sharply criticized the central bank for failing to aggressively raise interest rates to rein in inflation and defend the currency. Turkish President Recep Tayyip Erdogan’s influence is widely seen as responsible for the failure of the bank to act. Erdogan has repeatedly voiced opposition to raising interest rates.

“There will be a massive sell-off to the point of panic if they don’t raise rates,” Yesilada said. “This time, they have no option, even if they meant something else (in their statement), as everyone interpreted it as rates will be hiked. But there are two questions: by how much, and will it help at all?” he added.

Investors and analyst claim the central bank needs to raise rates by at least 4 percent, while some suggest a 10 percent raise is needed to avoid further drops in the currency, which analysts warned would open the lira to further pressure.

“In such a scenario, Turkish residents would want to hold more FX (foreign exchange) rather than Turkish lira … to protect their savings. That is a big risk to the currency,” Demir said.

Already, 40 percent of individual accounts in banks are in foreign currency.

However, an aggressive increase in rates may not be enough to rein in inflation or defend the lira, analysts warned.

“The concerns are on multiple fronts,” Demir said. 

“What Turkish policy needs to do is straightforward,” he added. “They need to hike rates, tighten fiscal policy (cut government spending) and ease tensions with the United States, removing the threat of further sanctions by releasing (American) pastor (Andrew) Brunson.

“There is a way out of this, but it’s not obvious that the policymakers will take that way,” Demir said.

US trade tariffs 

Last month’s imposition of trade tariffs by U.S. President Donald Trump over the ongoing detention of Brunson was the trigger for the latest rout in the Turkish currency. Brunson is on trial on terrorism charges, a case dismissed by Washington as politically motivated.

Ignoring U.S. pressure, Turkey’s top appeals court judge, Rustu Cirit, on Monday supported Erdogan’s refusal to release Brunson, saying the pastor’s release is a matter only for the courts.

“To use brute force to reverse this fact, which is a basic principle of contemporary democracies and law of nations, would mean weakening human rights, rather than strengthening them,” Cirit said.

Trump is warning of further sanctions against Turkey if Brunson is not released. American regulatory authorities are considering reportedly a multibillion-dollar fine against Turkish state-controlled Halkbank for violations of Iranian sanctions.

Analysts warn the financial implications of an escalation of U.S.-Turkish tensions will continue to undermine confidence in the lira. However, Erdogan continues to take a robust stance against Washington, insisting the Turkish economy remains strong.

“The list of concerns is long, definitely, but the chief concern I have right now is the policymakers. They need to accept first that there is a significant problem that needs to be addressed,” Demir said. “But we heard this morning from finance minister (Berat) Albayrak that short-term fluctuations in inflation are normal. ”

Turkey already seems set to face a severe recession. Similar depreciations of the currency in past decades was accompanied by a double-digit contraction of the economy. 

Analysts warn the stress on the economy will only grow.

“Each day, Ankara lingers or prevaricates the likelihood of a disaster event increases. Right now, the threat is very low, it’s manageable. But as winter approaches, the likelihood increases exponentially,” Yesilada said.
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Yemen’s government says it is giving civil servants and pensioners pay raises, after protests against the country’s woeful economy nearly paralyzed a major port city Sunday.

Officials have not said when the raises would take effect or how much they will be.

Demonstrations against the economy in the port of Aden continued Monday. Many shops were closed, and some people burned tires in the streets.

Some of the marchers demanded to be paid in dollars, accusing senior officials of taking their salaries in the U.S.-based currency while paying the rank-and-file in the increasingly weak Yemeni rial.

The rial has lost more than half its value against the dollar since Iranian-backed Houthi rebels seized the capital of Sanaa in 2014, sending the Western-recognized government into exile in Saudi Arabia.

It has since returned to set up shop in Aden.

Airstrikes

Meanwhile, the Houthis are demanding a war crimes investigation against the Saudi-led coalition after an airstrike last month that killed 40 children.

In an appeal Monday to the International Criminal Court, the Houthis asked the court to look into its “humanitarian conscience.”

A coalition missile struck a market in a Yemeni town near the Saudi border last month, killing 51 people. Among the dead were 40 children on a school bus coming back from a summer camp outing.

The coalition called the airstrike a “mistake.” It promised to hold those behind the attack legally responsible and to compensate the victims.

But the Houithis accuse the Saudis of being both the “judge and the jury” and “making light” of the civilian deaths.

U.N. human rights officials have said they believe both sides in Yemen may be responsible for war crimes.

The Saudi-led airstrikes have compounded the misery in Yemen, which is not only one of the world’s poorest nations, but is also on the edge of famine.

The U.N. has said about 80 percent of Yemeni civilians lack enough food and medical care.

The coalition airstrikes have obliterated entire neighborhoods, including hospitals and schools.
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It’s coal people like miner Steve Knotts, 62, who make West Virginia Trump Country.

So it was no surprise that President Donald Trump picked the state to announce his plan rolling back Obama-era pollution controls on coal-fired power plants.

Trump left one thing out of his remarks, though: northern West Virginia coal country will be ground zero for increased deaths and illnesses from the rollback on regulation of harmful emission from the nation’s coal power plants.

An analysis done by his own Environmental Protection Agency concludes that the plan would lead to a greater number of people here dying prematurely, and suffering health problems that they otherwise would not have, than elsewhere in the country, when compared to health impacts of the Obama plan.

Knotts, a coal miner for 35 years, isn’t fazed when he hears that warning, a couple of days after Trump’s West Virginia rally. He says the last thing people in coal country want is the government slapping down more controls on coal — and the air here in the remote West Virginia mountains seems fine to him.

People here have had it with other people telling us what we need. We know what we need. We need a job,” Knotts said at lunch hour at a Circle K in a tiny town between two coal mines, and 9 miles down the road from a coal power plant, the Grant Town plant.

The sky around Grant Town is bright blue. The mountains are a dazzling green. Paw Paw Creek gurgles past the town.

Clean-air controls since the 1980s largely turned off the columns of black soot that used to rise from coal smokestacks. The regulations slashed the national death rates from coal-fired power plants substantially.

These days pollutants rise from smoke stacks as gases, before solidifying into fine particles — still invisible — small enough to pass through lungs and into bloodstreams.

An EPA analysis says those pollutants would increase under Trump’s plan, when compared to what would happen under the Obama plan. And that, it says, would lead to thousands more heart attacks, asthma problems and other illnesses that would not have occurred.

Nationally, the EPA says, 350 to 1,500 more people would die each year under Trump’s plan. But it’s northern two-thirds of West Virginia and the neighboring part of Pennsylvania that would be hit hardest, by far, according to Trump’s EPA.

Trump’s rollback would kill an extra 1.4 to 2.4 people a year for every 100,000 people in those hardest-hit areas, compared to under the Obama plan, according to the EPA analysis. For West Virginia’s 1.8 million people, that would be equal to at least a couple dozen additional deaths a year.

Trump’s acting EPA administrator, Andrew Wheeler, a former coal lobbyist whose grandfather worked in the coal camps of West Virginia, headed to coal states this week and last to promote Trump’s rollback. The federal government’s retreat on regulating pollution from coal power plants was “good news,” Wheeler told crowds there.

In Washington, EPA spokesman Michael Abboud said Trump’s plan still would result in “dramatic reductions” in emissions, deaths and illness compared to the status quo, instead of to the Obama plan. Obama’s Clean Power Plan targeted climate-changing carbon dioxide, but since coal is the largest source of carbon dioxide from fossil fuels, the Obama plan would have curbed other harmful emissions from the coal-fired power plants as well.

About 160 miles to the south of Grant Town, near the state capital of Charleston, shop owner Doris Keller figures that if Trump thinks something’s for the best, that’s good enough for her.

“I just know this. I like Donald Trump and I think that he’s doing the right thing,” said Keller, who turned out to support Trump Aug. 21 when he promoted his rollback proposal. She lives five miles from the 2,900-megawatt John Amos coal-fired power plant.

“I think he has the best interests of the regular common people at the forefront,” Keller says.

Trump’s Affordable Clean Energy program would dismantle President Barack Obama’s 2015 Clean Power Plan, which has been caught up in court battles without yet being implemented.

The Obama plan targeted climate-changing emissions from power plants, especially coal. It would have increased federal regulation of emissions from the nation’s electrical grid and broadly promoted natural gas, solar power and other cleaner energy.

Trump’s plan would cede much of the federal oversight of existing coal-fired power plants and drop official promotion of cleaner energy. Individual states largely would decide how much to regulate coal power plants in their borders. The plan is open for public review, ahead of any final White House decision.

“I’m getting rid of some of these ridiculous rules and regulations, which are killing our companies … and our jobs,” Trump said at the rally.

There was no mention of the “small increases” in harmful emissions that would result, compared to the Obama plan, or the health risks.

EPA charts put numbers on just how many more people would die each year because of those increased coal emissions.

Abboud and spokeswoman Ashley Bourke of the National Mining Association, which supports Trump’s proposed regulatory rollback on coal emissions, said other federal programs already regulate harmful emissions from coal power plants. Bourke also argued that the health studies the EPA used in its death projections date as far back as the 1970s, when coal plants burned dirtier.

In response, Conrad Schneider of the environmental nonprofit Clean Air Task Force said the EPA’s mortality estimates had taken into account existing regulation of plant emissions.Additionally, health studies used by the EPA looked at specific levels of exposure to pollutants and their impact on human health, so remain constant over time, said Schneider, whose group analyzes the EPA projections.

With competition from natural gas and other cleaner energy helping to kill off more than a third of coal jobs over the last decade, political leaders in coal states are in no position to be the ones charged with enforcing public-health protections on surviving coal-fired power plants, said Vivian Stockman of the Ohio Valley Environmental Coalition.

“Our state is beholden to coal. Our politicians are beholden to coal,” Stockman said outside Trump’s West Virginia rally, where she was protesting. “Meanwhile, our people are being poisoned.”

And when it comes to coal power plants and harm, Schneider said, “when you’re at Grant Town, you’re at Ground Zero.”

Retired coal miner Jim Haley, living 4 miles from the town’s coal-fired power plant, has trouble telling from the smokestack when the plant is even operating.

“They’ve got steam coming out of the chimneys. That’s all they have coming out of it,” Haley said.

Parked near the Grant Town post office, where another resident was rolling down the quiet main street on a tractor, James Perkins listened to word of the EPA’s health warnings. He cast a look into the rear-view mirror into the backseat of his pickup truck, at his 3-year-old grandson, sitting in the back.

“They need to make that safe,” said Perkins, a health-care worker who had opted not to follow his father into the coal mines. “People got little kids.”

 
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President Nicolas Maduro said he is investing part of his personal savings in a gold-backed certificate as part of a much-questioned plan to crush hyperinflation and reactivate Venezuela’s moribund economy.

 

Maduro and First Lady Cilia Flores were the first in line at the central bank in downtown Caracas on Monday as it began selling the certificates.

 

He said he spent 350 bolivars — or about $6 at the recently devalued official exchange rate — acquiring the certificate, which functions like a fixed-term deposit that matures in a year and is supposedly backed by a 1.5 gram piece of gold held with the monetary authority.

 

“If I had a little more savings in bolivars I would have invested more,” Maduro said as cameras were rolling during his televised visit to the central bank. “Cilia had a little more than me, so she bought her certificate for a little ingot of 2.5 grams.”

 

In a country where five-digit inflation has all but destroyed savings it remains unclear how many Venezuelans will take up the government’s offer.

 

A few hours after Maduro left, the central bank’s main atrium — the only place where the certificates are being sold for now — was desolate, with only a handful of prospective buyers inquiring about the documentation required to make a purchase.

 

However, just around the block tensions were running high outside a state-owned bank as elderly pensioners waited in hours-long lines to withdraw the first part of a huge payment increase promised as part of Maduro’s monetary overhaul last month.

 

“This is a joke. How am I going to buy gold when my pension isn’t even enough to live on?” said Juan Vera, 71, sweating in the midday heat after waiting four hours for the bank to open.

 

Many in line, some of whom had arrived before dawn, said they were hoping to withdraw the pension in cash so they could resell the bills for a huge markup to wealthier Venezuelans looking to get their hands on cash that has gone scarce as the economy’s troubles have mounted. But many doubted the bank had enough bills on hand to satisfy the demand.

 

The gold savings plan is part of an economic overhaul slowly taking effect seeking to dismantle decade-old currency and price controls, boost government revenues and jump start private investment in the fast-decaying oil industry — the source of nearly all of Venezuela’s foreign currency earnings.

 

It’s the socialist revolution’s most far-reaching attempt to embrace the free market since Maduro took over as president from the late Hugo Chavez in 2013.

 

But many economists predict it’ll collapse almost immediately, as the government continues to print bolivars with abandon to fund a deficit estimated at over 20 percent of gross domestic product. Moreover, they say the deficit will widen, and inflation accelerate even further, as a result of the government’s decision to raise wages and pensions by over 3,000 percent to the equivalent of around $30 per month.

 

Maduro’s processor Chavez was also a gold bug, once famously repatriating from vaults in Europe the nation’s bullion reserves. But as the economy has spun further out of control Maduro’s cash-strapped government has had to offer up the declining gold reserves in exchange for loans to pay its mounting debts.
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More than $1 billion in fresh aid will likely be pledged at a conference of donors to the drought-plagued region around Lake Chad, U.N. humanitarian chief Mark Lowcock said on Monday.

A famine was averted in the region last year largely thanks to international aid, but millions of people in Nigeria, Niger, Chad and Cameroon were still in dire need of help, Lowcock told reporters on the sidelines of the Berlin conference.

“The crisis is not over. There are still 10 million people who need lifesaving assistance,” he said. “A quarter of the people we are trying to reach are displaced from their homes and the only means of staying alive they have is what is provided by humanitarian organizations.”

Lowcock said last year’s donor conference in Oslo, Norway had raised $672 million in funds for the region, and he expected to double that amount this year, which will allow more work to be done addressing underlying problems in the region.

Detailed pledges were not immediately available. Over 50 delegations are attending the conference.

Germany, a key destination for migrants fleeing Africa and non-permanent member of the U.N. Security Council from 2019, is co-hosting a two-day conference with Norway, Nigeria and the United Nations to drum up support for the region.

Chancellor Angela Merkel’s ruling coalition had vowed to help African nations improve conditions to keep people from embarking on treacherous journeys to try to reach Europe.

German Development Minister Gerd Mueller, just back from a visit to Chad, said 2.4 million people have already fled the region due to climate change and violence blamed on the Boko Haram insurgent movement and Islamic State.

“We need a joint European solution. And the international community must get far more engaged for the overall region to give these people a chance for survival and undercut a breeding ground for terrorism,” Mueller said in a statement.

He said it was vital that donors actually provided the funds they pledged, noting that only third of the needs identified by international organizations had been covered to date.

Achim Steiner, head of the U.N. Development Program, warned that more people could flee the region unless the international community stepped in to provide long-term perspectives for people in the region. 

“We should remember that we made a mistake eight years ago when the Syria crisis began and many people were forced to flee,” he told Reuters in an interview, noting that U.N. agencies were forced in that case to close hospitals and schools and halve food rations due to a shortage of funds.
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The Iranian rial hit a record low against the U.S. dollar on the unofficial market Monday amid a deterioration in the economic situation and the reimposition of sanctions by the United States.

The dollar was being offered for as much as 128,000 rials, according to foreign exchange website Bonbast.com, which tracks the unofficial market.

The currency has been volatile for months because of a weak economy, financial difficulties at local banks, and heavy demand for dollars among Iranians who fear the pullout of Washington from a landmark 2015 nuclear deal and renewed U.S. sanctions could shrink Iran’s exports of oil and other goods.

A set of U.S. sanctions targeting Iran’s oil industry is due to take effect in November.

Last week, Iran’s parliament sacked the minister of economic affairs and finance, the latest in a continuing shakeup of top economic personnel. In early August, Iranian lawmakers voted out the minister of labor; in July, President Hassan Rouhani replaced the head of the central bank.

Protests linked to the tough economic situation in Iran erupted last December, spreading to more than 80 cities and towns and resulting in 25 deaths.

Sporadic protests, led by truck drivers, farmers and merchants in Tehran’s bazaar, have continued since then and have occasionally resulted in violent confrontations with security forces.
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When President Donald Trump pulled the plug on an upcoming trip to North Korea by his secretary of state, he pointed a finger of blame at China and the global superpower’s trade practices.

In his recent trade breakthrough with Mexico, Trump praised the country’s outgoing president for his help on border security and agriculture.

Both developments offered fresh evidence of how Trump has made trade policy the connective tissue that ties together different elements of his “America First” foreign policy and syncs up them with his political strategy for the 2020 presidential election.

Trump’s 2016 triumph was paved in part by his support among blue-collar voters in Midwestern manufacturing states that narrowly supported him over Democrat Hillary Clinton, including Michigan, Wisconsin, Ohio and Pennsylvania.

His aggressive trade tactics, epitomized by tariffs and standoffs with longtime economic partners and allies, are aimed at reversing what he has long viewed as unfair trade deals while maintaining support among largely white, working-class voters who have been hurt by the loss of manufacturing jobs.

“Trump understands that economic policy is foreign policy and vice versa,” said Stephen Moore, a former Trump campaign adviser and visiting fellow at The Heritage Foundation. “The most important element of foreign policy is to not just keep the world safe but to also promote America’s economic interest. That’s what Trump does — this is America First.”

It’s also good politics, in Trump’s view.

“It’s a populist position. But it’s also a popular position with a lot of Americans,” Moore said.

As he puts a high premium on trade gains, Trump is intertwining the issue with a host of top foreign policy concerns.

Trump, asked by reporters last week about North Korea living up to its commitments to denuclearize, said “part of the North Korean problem is caused by our trade disputes with China,” pointing to the U.S. trade imbalance with China.

“We have to straighten out our trade relationship because too much money is being lost by us,” Trump said. “And as you know, China is the route to North Korea.”

Trade has been a common refrain at the president’s rallies, where he has vowed to pursue “fair and reciprocal trade.”

“We don’t want stupid trade like we had for so long,” Trump said during a rally in Duluth, Minnesota, in June.

Trump’s second year as president has been marked by a number of trade disputes with traditional U.S. allies and global rivals alike, an approach cemented by his tweet that “trade wars are good.”

He imposed tariffs on steel and aluminum imports in March, prompting retaliation from the European Union and other American allies. Later in the month, Trump announced tariffs on China to combat what he called the theft of U.S. technology from a wide range of goods and services.

China struck back with its own sanctions on a variety of U.S. products, including Midwest farm-produced soybeans in a way to hit hard against the president’s base of voters. The two sides have clashed during the spring and summer, raising the stakes in their trade fight.

In late July, Trump and European Commission President Jean-Claude Juncker reached a temporary deal at the White House to avert tariffs on automobile imports and a ramping up of their trade dispute — although the threat still remains.

After a breakthrough with Mexico, Trump’s team has been engaged in talks with Canada aimed at creating a new version of the 24-year-old North American Free Trade Agreement.

While previous administrations have often used a carrot-and-stick approach to trade as a way to forge agreements, before Trump’s arrival trade agendas had emphasized multi-lateral and bilateral deals aimed at maintaining U.S. leadership around the world, promoting American values and improving human rights.

This administration, by contrast, “is leveraging foreign policy tools to achieve its trade goals,” said Lori Wallach, director of Public Citizen’s Global Trade Watch.

Critics say Trump’s insistence on trade concessions could hamper his ability to move forward in other areas.

On North Korea, for example, Trump has sought to turn his meeting with Kim Jong Un into a vivid example of how his unconventional style can bring longstanding U.S. adversaries to the bargaining table.

But by raising China’s trade practices as essential to any progress to ensuring North Korea gets rid of its nuclear weapons, Trump runs the risk of getting bogged down in both areas — and having little to show for it.

Mixing foreign policy and trade policy introduces so many variables it’s “virtually impossible to close on a precise policy decision,” said Daniel Ujczo, a trade attorney with Dickinson Wright PLLC in Columbus, Ohio. “You’re constantly chasing after the next issue as opposed to having a very targeted approach to the objective.”
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Tanned and wearing a swimsuit, So Myong Il walks to the barbecue pit and throws on some clams.

 

He obviously loves the beach he’s on as well as the rugged, emerald Chilbo mountains that rise abruptly behind it. He loves them enough to forget, for a moment at least, that he is a senior official sent to deliver an ideology-soaked pitch singing their praises and instead lets the natural beauty surrounding him speak for itself.

 

Comrade So sees great things for North Korean attractions like this.

Hotels, big and small. Tourists from all over the country, maybe the world. “As long as we have the leadership of our respected Marshal,” he says, referring to leader Kim Jong Un, “our future will be bright indeed.”

 

So wouldn’t think of questioning the leader, but there is a hint of apprehension in his voice. And he isn’t alone.

 

North Korea is pushing ahead with a new strategy of economic development and the intensified diplomacy with China, South Korea and the United States that such a move requires. But hopes for a better future are mixed with concern over potential downsides of political or social volatility, and something that’s harder to articulate: a fear of the unknown – even if it appears far more promising than the arduous path the country has been on for decades.

Even before announcing in January that he had sufficiently perfected his nuclear arsenal and could start to focus on other things, Kim has held economic development to be his primary long-term concern.

 

He has allowed markets and entrepreneurialism to flourish and, since succeeding his father as leader seven years ago, has dramatically transformed the skyline of the capital, Pyongyang, with several high-rise districts. The transformation in the east coast city of Wonsan, where Kim has a summer villa, has been almost as spectacular.

 

As Kim prepares for the 70th anniversary of North Korea’s founding on Sept. 9, his ambitious development plan is being implemented, from the small-time renovation of town halls to the almost biblical-scale mobilization of “soldier-builders,” who are working around the clock to turn the remote northern city of Samjiyon into yet another showcase of Pyongyang-style socialism.

 

Economic development – and how U.S. capital and know-how could speed it along – was President Donald Trump’s big carrot when he met with Kim in Singapore three months ago to try to negotiate a denuclearization deal.

 

But Kim’s diplomatic overtures aren’t intended to open the door to American capitalists, a scenario that would make any good party cadre shudder. They are aimed at breaking down support for sanctions and getting the U.S. to step out of the way. Kim’s game is to play China and the U.S. off each other, grab whatever concessions he can along the way and adjust his position as the situation evolves.

 

In the meantime, lest anyone get the wrong idea, the ruling Workers’ Party of Korea has begun churning out paeans to socialism in its daily newspaper along with anti-capitalism, anti-imperialism screeds that underscore North Korea’s official opposition to essentially anything that might be considered the American way of life. Or, as it’s known in the jargon of North Korea’s propaganda machine, “the imperialists’ bourgeois ideological and cultural poisoning.”

---

 

The past few months have been tense in Pyongyang.

 

Restrictions on some of the movements of foreign diplomats have been tightened, for example, and even requests by The Associated Press to interview government officials or to speak with regular citizens have mostly been denied.

 

Uncertain of where it might all end up, state-run media have provided only limited coverage of Kim’s meetings with Trump in June and his multiple summits with Chinese President Xi Jinping and South Korean President Moon Jae-in. Reports have portrayed Kim as the consummate statesman, firmly in charge of a carefully considered strategy to make his country safer and more prosperous.

 

Kim is ardently wooing South Korean investment to help him build the very things Trump was offering: infrastructure, particularly roads and railways, and the development of selected tourism zones. After a high-profile chill last year, he is also actively courting Beijing, which continues to be an essential source of fuel, a key market for North Korea’s coal and other natural resources and a fairly reliable check on U.S. power in the region.

 

Pyongyang’s explanation for the shift in its foreign policy has been consistent: Having successfully built a credible nuclear deterrent to U.S. aggression, Kim is reaching out to Seoul to join hands in a “for Koreans, by Koreans” effort to secure a lasting peace on the Korean Peninsula, unhindered by the meddling of foreign powers.

 

Undoubtedly, images of the leader smiling and shaking hands with Trump, whose face had never been on the front pages of their newspapers before, signaled a major and bewildering change to many North Koreans.

 

But officials have made sure they don’t have much time to ruminate on it.

 

Normal routines of work and study have been put on hold for large segments of the populace who have been mobilized for the development projects. Tens of thousands of people in Pyongyang, meanwhile, have spent the past several months feverishly preparing for mass rallies and mass games to mark the anniversary.

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Mount Chilbo, a collection of rocky peaks and a stretch of largely untouched seashore on the country’s northeastern fringe, is one of North Korea’s most cherished natural wonders.

 

The first hotel for non-Korean visitors opened in the 1980s, followed in 2004 by homestay-style lodgings near the beach, said So, a North Hamgyong Province People’s Committee official. Together they have a capacity of fewer than 100 guests and only operate from April until early November.

 

Many North Koreans bring tents and sleep on the beach.

 

But even in this rustic corner of the country, the pressure to contribute to Kim’s grand development scheme is keenly felt.

 

So said he would soon travel to China to discuss possible areas of cooperation.

 

As an indicator of Kim’s success with Beijing, tourism from China is already on the rise. Pyongyang’s longer-term goal, however, is to tap the South Korean market. The idea is that, if handled properly, South Korean tourism would present a chance to promote the North in a positive light and boost its image within South Korea.

 

That’s a gamble too.

Back in the late 1990s and early 2000s, South Koreans were allowed to visit in a highly regulated and controlled manner, and massive investment from South Korean businesses helped the North fund infrastructure projects in the same Wonsan-Mount Kumgang area that Kim is focusing on now. But it ended badly in 2008 when a South Korean woman who entered a restricted area was shot to death by a North Korean soldier.

 

So said he believes Chilbo, like Kim’s pet projects in Wonsan, could be a big draw for tourists. But he worries about where the money will come from and what might be lost.

 

“Whatever we do, we need to protect the natural beauty of this place,” he said.”I think there will be many changes in the coming years. Plans are being discussed. But nothing is decided.”

 
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The International Organization for Migration reports more than 270 Nigerian migrants who recently returned from Libya have completed a skills training course to help them start their own businesses.

Migrants attending this weeklong event in the Nigerian capital Lagos have shared stories of the business frustrations that drove them to try to go to Europe in search of better economic opportunities.

U.N. migration agency spokesman, Paul Dillon, told VOA the migrants also have shared stories of the abuse and suffering they endured at the hands of smugglers and traffickers in Libya. At the same time, he said returnees enrolled in this business course have spoken of their hopes for the future.

“The goal of these types of initiatives is always to give people options and providing them with business skills training, for example. It certainly does that.Start up a small business at home, get hired on by a local company, build your life back in Nigeria. I think that is the goal and also to encourage formal migration efforts,” he said.

This is the 21st training course since the program was started in April 2017. IOM reports more than 2,000 Nigerian returnees have participated in courses given in Lagos, Edo, Nassarawa, Kano and Kaduna States.

Dillon said many of the returnees have become involved in collective reintegration schemes or community-based projects, such as fruit juice, palm oil and plantain processing factories.

He said training now is focused on creating more sustainable businesses, not just on regular trading, buying and selling. Therefore, he said there is greater concentration on agriculture-related businesses, which are more sustainable and more beneficial to the returnees’ communities.

He said IOM, together with the Ministry of Labor and the Lagos Chamber of Commerce and industry are organizing a job fair at the end of September.This, he said, will give returnees the opportunity to meet leaders in Nigeria’s private sector and to search for jobs to match their skills.
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Investment banks which lost out on big payouts for the work on the shelved listing of oil giant Aramco are lining up for a raft of other projects as Saudi Arabia pursues reforms.

Banks including JPMorgan and Morgan Stanley worked for months to prepare what would have been the biggest ever stock market debut. But the plan to sell 5 percent of the company for a targeted $100 billion was pulled.

The bankers were paid retainer fees but were expecting around $200 million would be shared among all the banks involved when the deal was done.

Now, they are pinning their hopes on other projects from a privatization program that is part of Riyadh’s economic reform plan to loosen its reliance on oil. Without the funds from the Aramco sale, the government is looking to raise money in other ways, creating new opportunities for the banks, bankers say.

Teams from JP Morgan and Morgan Stanley that worked on the IPO, have been shifted to advise on Aramco’ planned acquisition of up to $70 billion in petrochemicals firm Saudi Basic Industries (SABIC), three people familiar with the details of the transaction told Reuters.

HSBC, which was also an adviser on the Aramco IPO, is expected to play a role in putting together the debt to fund that purchase, they said.

One of the sources said the issue could exceed the 2016 sovereign bond issue of $17.5 billion, which was a record for the kingdom. Aramco said earlier this month it was in “very early-stage discussions” with the kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC but has not said how it will finance the deal.

Spokespeople for JP Morgan, Morgan Stanley and HSBC declined to comment on their role in the Sabic deal. None of those banks have confirmed they were involved in the Aramco IPO. Other deals are expected to be forthcoming.

“The PIF[sovereign wealth fund] has had to reconsider its budget in the last three months, after finding out that they wouldn’t be getting $100 billion from the Aramco IPO right away,” said a banker in Saudi Arabia.

“So there’s been a flurry of activity as they look to raise cash in other ways. A lot of these are smaller deals, $1 billion here and there, but all geared toward financing their commitments for big infrastructure projects without slowing down their timelines.”

The banker did not give details of the other deals. PIF officials did not respond to a Reuters request for comment.

After Reuters reported last week that the Aramco deal had been shelved, Energy Minister Khalid al-Falih said the government was committed to conducting the IPO at an unspecified date in the future.

Bankers wary

The bankers are nevertheless wary after the Aramco experience. It highlighted the hurdles of doing business in a country governed by an absolute monarchy where public protest and political parties are banned. It also added to uncertainty after scores of top royals, ministers and businessmen were rounded up in an anti-corruption campaign last November.

The preparation for the listing was launched by Crown Prince Mohammed bin Salman two years ago and some bankers had flown to the kingdom hundreds of times to work in the Dhahran camp, a gated compound for the oil group’s residents.

A different source said Aramco had demanded it deal only with the very top bankers.

Another person familiar with the Aramco deal said he had made more than 20 trips to Dhahran over 18 months but with little to show for it. He said his team would “give the same presentation each time without getting much feedback.”

Bankers also say the fees are modest in comparison to those paid by other countries.

“The deal flow is huge but there’s a worry that the fees coming from these projects are low,” said a Gulf-based banker who spoke on conditions of anonymity.

“Saudi Arabia is lower than Hong Kong and Dubai when it comes to fees,” he said. “It’s all substandard.”

 

Typical fees for banks doing IPOs in more developed markets are around 1 percent of the overall deal while estimates from bankers and analysts for an Aramco IPO was 0.2 percent.

The 35 banks who worked on Chinese internet giant Alibaba’s $21.8 billion float, led by six main underwriters, pocketed an estimated $300 million among them, according to Thomson Reuters data.

‘Plenty of deals’

Still, the rewards from a privatization that analysts expect to generate ($9 billion to $11 billion) by 2020 are too big for bankers to ignore.

HSBC is already advising Saudi International Petrochemical Company on a potential merger with Sahara Petrochemical, which is being advised by Morgan Stanley, according to disclosures from March.

U.S. bank Citigroup obtained a license to conduct capital markets business in Saudi Arabia last year after an absence of almost 13 years.

Moelis is preparing to apply for an advisory license in Saudi Arabia and U.S. boutique investment bank Evercore opened an office in Dubai in 2017.

The government is also trying to make it easier to do deals, changing the law to allow alternatives to traditional debt finance.

“There are plenty of deals to be made from bigger players looking to consolidate their market position and buy out competitors,” said Mohammed Fahmi, the Dubai-based co-Head of EFG Hermes Investment Banking.

“Good stories will continue to see a following.”
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The film industry organization that presents the Academy Awards is also developing young talent through a program called Academy Gold — an internship and mentoring program for students and young professionals from communities currently underrepresented in Hollywood. Some of the participants are either immigrants or children of immigrants who are trying to create an unorthodox career path for themselves. VOA’s Elizabeth Lee reports from Los Angeles.
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Owning your home is the most popular definition of the American Dream. But in today’s economy, more Americans are opting out of buying or renting. Some are choosing to live in housing cooperatives, or “co-living” arrangements, where tenants rent bedrooms and sometimes a bathroom, but share kitchens and other rooms. Tatiana Vorozhko and Dmitriy Savchuk of VOA’s Ukrainian Service visited a co-living house in Brooklyn, N.Y., to find out why some are choosing another version of the American Dream.
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A new U.S. study finds that when temperatures around the world start creeping up, insects that eat crops will not only become hungrier, their numbers will grow. Scientists say this will mean more insect damage to wheat, corn and rice crops, and therefore less food on the dinner table. VOA’s Mariama Diallo reports.
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