Technology Shapes Insurance Companies’ Response to Wildfires

As wildfires raged this month in California, insurance claims experts at Travelers sat in a command center 3,000 miles (4,828 kilometers) away in Connecticut, monitoring screens showing satellite images, photos from airplane flyovers and social media posts describing what was happening on the ground.

Real-time data and technology that were unavailable to property-casualty companies even a few years ago have shaped the industry’s response to the Camp Fire, which has burned nearly 240 square miles (622 square kilometers) in northern California and the 151-square-mile (391-square-kilometer) Woolsey Fire in the Los Angeles area.

By overlaying the data on maps marking its customers’ locations, the company can quickly identify those who are likely to have been affected, said Jim Wucherpfennig, Travelers vice president of claims.

“That allows us to deploy people and resources where they are needed most,” he said.

The same data also can be used to determine risk and pricing for insurance in any given area, said Peter Kochenburger, the deputy director of the University of Connecticut’s insurance law center. Insurers, for example, can use the telemetry to identify local vegetation, wind patterns and fire history. In some cases, it can determine that the owner of one home is more likely to suffer damage than the owner of a neighboring home, he said.

“Does it seem intrusive? It can be,” he said. “They have a lot more information on all of us, on our properties than they had two, five, 10 years ago. That’s a major issue and that’s something regulators are going to have to talk about.”

During the wildfires, Travelers said the information has been used to expedite claims, even in areas that are still inaccessible to inspectors.

Workers were able to see what roads were open and map out spots in Chico and Thousand Oaks to park the RVs that serve as mobile claim centers, the company said. The tools also indicated where customers who evacuated were going to be, Wucherpfennig said.

The glassed-in Travelers National Catastrophe Center is located in Windsor, Connecticut. Modeled after military war rooms, it includes a conference table behind 19 high-definition screens, which display maps, graphs, television images and social media sites, all providing real-time data on the fires.

In some cases, even before adjusters arrive on scene, claims experts can assess damage from the fires and cut checks by using before-and-after images taken by drones, aircraft or satellites as well as videos or photos uploaded by customers from their phones. Employees have tools and smart phone apps that can convert those photos into instant measurements, to help quantify the damage.

“We’re able to virtually interact with customers much more easily than we could even in the recent past,” Wucherpfennig said. “We’re also able to monitor all forms of social media in real time. That helps us create an event footprint, which helps us understand how the event is tracking and what type of damages we’re seeing.”

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Nissan Board Fires Jailed Chairman Ghosn

Once-admired auto executive Carlos Ghosn’s fall from grace deepened Thursday when directors of Nissan Motor Co. voted unanimously to fire the recently jailed businessman from his post as board chairman.

Dismissed along with Ghosn was another director, Greg Kelly, whom the board accused of working with Ghosn to understate their incomes on formal declarations and use company assets for personal purposes.

An internal investigation presented to the board found that Kelly had “been determined to be the mastermind of this matter, together with” Ghosn, the company said in a statement.  The board also said that Nissan’s longstanding partnership with the French automaker Renault “remains unchanged.”

While he has been fired as chairman, the company said, it will require a vote of shareholders to remove Ghosn from the board altogether.

The financial world was stunned on Monday when it was announced that Ghosn had been detained by Japanese authorities on suspicion of having failed to report millions of dollars in income.  He could face up to 10 years in prison.

Ghosn also served as board chairman of Renault and another Japanese automaker, Mitsubishi.  The news of his arrest drove down share prices in all three.

Nissan said this week that its internal probe of Ghosn and Kelly was prompted by a report from a whistleblower. It said the investigation showed Ghosn had underreported his income to the Tokyo Stock Exchange by more than $40 million over five years.

The Brazilian-born Ghosn, who is of Lebanese descent and a French citizen, was the rare foreign top executive in Japan.

Ghosn was sent to Nissan in the late 1990s by Renault SA of France, after it bought a controlling stake of Nissan. He is credited with rescuing Nissan from the brink of bankruptcy.

In 2016, Ghosn also took control of Mitsubishi, after Nissan bought a one-third stake in the company, following Mitsubishi’s mileage-cheating scandal.

Together, the three automakers comprise the biggest global car-making alliance, manufacturing one of every nine cars sold around the world.  The three companies employ more than 470,000 people in nearly 200 countries.

Before Ghosn’s arrest, Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm, said his detention would “rock the Renault-Nissan-Mitsubishi alliance as he is the keystone of the alliance.”

(VOA’s Ken Bredemeier and Fern Robinson contributed to this story.)

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Balloons, Blankets at Frigid Macy’s Thanksgiving Day Parade

Bystanders are refusing to let cold temperatures put a damper on watching Macy’s Thanksgiving Day Parade, breaking out the blankets and sleeping bags to watch the giant balloons go by.

Tony Stout camped out with his extended family since 2 a.m. to make sure they got a good view of his son, who would be in the parade with The Ohio State University marching band. They traveled from Columbus, Ohio, for the parade.

“Ohhh, I’m freezing and numb, but excited,” he said.

Forecasters say it could be the coldest Thanksgiving in well over a century on Thursday, with the National Weather Service projecting temperatures in the low 20s (-4 to -7 Celsius) and sustained winds of up to 20 mph (32 kph) with gusts to 30 mph (48 kph), just inside the safe zone for the balloons to fly.

City officials said the 16 giant character balloons such as SpongeBob and Charlie Brown could fly safely, although their height would be adjusted if necessary.

Diana Ross, John Legend, Martina McBride and the Muppets from “Sesame Street” are slated to perform in the frigid cold.

Thursday has the potential to be New York City’s coldest Thanksgiving since 1901, when the temperature only got as high as 26 degrees (-3.3 Celsius). The coldest on record was in 1871, when the warmest it got was 22 degrees (-5.5 Celsius).

The Macy’s parade didn’t start until 1924.

New York City has issued an extreme cold weather alert and is urging anyone going outside to wear hats, scarves, gloves and layered clothing and to keep their fingertips, earlobes, and noses covered to prevent frostbite.

Police Commissioner James O’Neill said thousands of officers will be stationed along the parade route. They include counterterrorism teams with long guns, plainclothes officers mixed in with the crowd and a new squad of K-9 teams that can sniff out explosives from a few hundred feet away.

The parade runs 46 blocks from the west side of Central Park to Macy’s flagship store in midtown Manhattan.

The parade features about 8,000 marchers, including high school bands from across the country, and two-dozen floats culminating with the arrival of Santa Claus. The performances will be shown on the NBC telecast, which starts at 9 a.m. EST.

Ross, 74, will perform a song from her new Christmas album and will be joined on her float by her some of her family members, including daughter Tracee Ellis Ross, a star of ABC’s “Black-ish,” and actor son Evan Ross.

Others in the lineup include Bad Bunny, Kane Brown and Ella Mai, Pentatonix, Rita Ora, Sugarland, Anika Noni Rose, Barenaked Ladies, Leona Lewis, Fifth Harmony’s Ally Brooke, Bazzi, Ashley Tisdale and Carly Pearce.

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Lebanon’s Economy Faces Stark Choice: Reform or Collapse

Lebanon is marking 75 years of independence with a military parade Thursday in Beirut, but many anxious Lebanese feel they have little to celebrate: the country’s corruption-plagued economy is dangerously close to collapse and political bickering over shares in a new Cabinet is threatening to scuttle pledges worth $11 billion by international donors.

The World Bank issued a stark warning last week, with one official saying that unless a government is formed soon to carry out badly needed reforms, “the Lebanon we know will fizzle away.”

It’s been more than six months since Lebanon held its first national elections in nine years but the prime minister-designate, Saad Hariri, still hasn’t formed a government to undertake the reforms necessary to unlock the donors’ funds.

 

The vote, in which the Shi’ite militant Hezbollah group and its allies made significant gains, did little to pull Lebanon out of a political impasse. Anger against politicians’ apparent indifference, worsening public services and distress over down-spiraling finances and gloomy predictions are building up.

 

Last Friday, heavy rains caused Beirut’s sewage system to burst, turning the city’s famous Mediterranean coastal avenue into a river of filthy, foul-smelling black water that engulfed motorists along the otherwise scenic route. On the same day, the military had closed a main artery for drills ahead of the Independence Day parade, paralyzing traffic for hours. Flights from Beirut’s international airport were missed and a woman reportedly went into labor on the road. The army later apologized.

 

Despite a population of over 4.5 million that is among the most educated in the region, Lebanon still has a primitive infrastructure, widespread electricity and water cuts and a longstanding waste crisis that over the past few years saw trash piling in the streets for weeks at a time.

 

“There is no independence [to celebrate] because corruption is eating us up,” said Mohammed al-Rayyes, a shop owner in Beirut’s Hamra district. “The coming days are going to be very difficult.”

 

The tiny Arab country has coped with multiple political and security crises over the past decades and also suffered from the seven-year civil war in neighboring Syria, a conflict that has occasionally spilled over the border and brought more than 1 million refugees into Lebanon, putting even more pressure on its dysfunctional infrastructure.

 

A soaring debt of $84 billion and unemployment believed to be around 36 percent are compounding concerns that the country will finally cave in.

 

“It is a shame because so much time is being wasted,” Ferid Belhaj, the World Bank’s vice president for the Middle East and North Africa, said during a meeting with a group of journalists last week.

 

For years, he said, Lebanese officials have been promising to work on solving the electricity crisis, which costs the country about $2 billion a year and has been the main factor in accumulating Lebanon’s debt.       

 

Of immediate concern is the future of $11 billion in loans and grants pledged by international donors at a meeting in Paris in April, which Lebanon risks losing if no Cabinet is in place soon to unlock the funds and approve reforms that were set as conditions by the donors and which have been delayed for years. In April, Hariri pledged to reduce the budget deficit by 5 percent over the next five years.

 

The crisis has prompted some Lebanese to change their deposits from the local currency, which has been pegged to the U.S. dollars since 1997, to U.S. dollars for fear the Lebanese pound might collapse. Riad Salameh, the Central Bank governor, has been repeatedly reassuring the markets, saying the local currency is stable.

 

Mohamad Shukeir, head of the Chambers of Commerce, Industry and Agriculture, told the local MTV station that 2,200 businesses closed doors so far this year.

 

Aftershocks of rising tension between the United States and Iran are also felt in Beirut, with Tehran ally Hezbollah being blamed by opponents for preventing Western-backed Hariri from forming a national unity government.

 

Hezbollah has demanded that six Sunni lawmakers allied with the Shiite group and opposed to Hariri be included in his Cabinet — something that Hariri, the country’s top Sunni Muslim leader, categorically rejects.

 

Despite the dangers, political bickering is not likely to end soon and the debt is mounting.

 

 “The level of debt that we have in Lebanon requires us to act very quickly,” said economist Kamel Wazne.  “Any delay will expose us to financial collapse.”

 

Belhaj of the World Bank said that reforms would act as a buffer to the crisis. But in their absence, “the crisis can be very nasty.”

 

“If we don’t go about these reforms fast, the Lebanon that we know will fizzle away,” he said.

  

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Diana Ross to Headline Frigid Macy’s Thanksgiving Parade

Diana Ross might be singing “Stop! In The Name of Gloves” by the time she’s done performing at New York City’s super chilly Macy’s Thanksgiving Day Parade, which forecasters say could be the coldest ever.

 

John Legend, Martina McBride and the Muppets from “Sesame Street” are also slated to perform in the frigid cold. Windy conditions are also expected and officials will be monitoring wind to see if giant character balloons such as SpongeBob and Charlie Brown can fly safely.

Police say they’re ready to order the 16 helium-filled balloons to a lower altitude or removed entirely if sustained winds exceed 23 mph (37 kph) and gusts exceed 34 mph (54.7 kph). There have been mishaps and injuries in the past when gusts blew them off course.

 

The National Weather Service is projecting temperatures in the low 20s (-3.9 to -6.7 Celsius) and sustained winds of up to 20 mph (32.2 kph) with gusts to 30 mph (48.3 kph), just inside the safe zone for the balloons to fly.

Thursday has the potential to be New York City’s coldest Thanksgiving since 1901, when the temperature only got as high as 26 degrees (-3.33 Celsius). The coldest on record was in 1871, when the warmest it got was 22 degrees (-5.5 Celsius).

 

The Macy’s parade didn’t start until 1924.

 

New York City has issued an extreme cold weather alert and is urging anyone going outside to wear hats, scarves, gloves and layered clothing and to keep their fingertips, earlobes, and noses covered to prevent frostbite.

Police Commissioner James O’Neill said thousands of officers will be stationed along the parade route. They include counterterrorism teams with long guns, plainclothes officers mixed in with the crowd and a new squad of K-9 teams that can sniff out explosives from a few hundred feet away.

 

The parade runs 46 blocks from the west side of Central Park to Macy’s flagship store in midtown Manhattan.

 

The parade features about 8,000 marchers, including high school bands from across the country, and two-dozen floats culminating with the arrival of Santa Claus. The performances will be shown on the NBC telecast, which starts at 9 a.m. EST.

 

Ross, 74, will perform a song from her new Christmas album and will be joined on her float by her some of her family members, including daughter Tracee Ellis Ross, a star of ABC’s “Black-ish,” and actor son Evan Ross.

 

Others in the lineup include Bad Bunny, Kane Brown and Ella Mai, Pentatonix, Rita Ora, Sugarland, Anika Noni Rose, Barenaked Ladies, Leona Lewis, Fifth Harmony’s Ally Brooke, Bazzi, Ashley Tisdale and Carly Pearce.

 

 

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A Holiday Miracle? Stores Try to Cut Down on Long Lines

Retailers will once again offer big deals and early hours to lure shoppers into their stores for the start of the holiday season. But they’ll also try to get shoppers out of their stores faster than ever by minimizing the thing they hate most: long lines.

Walmart, Target and other large retailers are sending workers throughout their stores to check out customers with mobile devices. And at Macy’s, shoppers can scan and pay for items on their own smartphones.

Retailers hope the changes will make in-store shopping less of a hassle. Long lines can irritate shoppers, who may leave the store empty handed and spend their money elsewhere, or go online.

“I’m all about quick and convenient,” says Carolyn Sarpy, who paid for a toy basketball hoop on a mobile device issued to a worker at a Walmart store in Houston. Sarpy says she “will turn around and walk out” of a store if she sees long lines.

Walmart says workers will stand in the busiest sections of stores, ready to swipe customer credit cards when they are ready to pay. To make them easier to find, workers wear yellow sashes that say, “Check out with me.”

The world’s largest retailer first tested the service in the spring at more than 350 stores in its lawn and garden centers. It fared well, Walmart says, and expanded the program for the holiday season.

Retailers are trying to catch up to technology giants. Apple, for example, has let those buying iPhones, laptops and other gadgets in its stores to pay on mobile devices issued to workers. And Amazon has been rolling out cashier-less convenience stores in San Francisco, Chicago and Seattle.

Barbara Kahn, a marketing professor at the Wharton School at the University of Pennsylvania, says shoppers know the technology is out there for faster shopping. “That makes them even more impatient,” she says.

The true test of their success will be whether retailers can handle the big crowds who are expected to turn out for Black Friday weekend. The day after Thanksgiving is expected to be the busiest shopping day this year, according to retail analytics company ShopperTrak. The Saturday after Thanksgiving also ranks in the top 10.

“The biggest pain point on Black Friday is standing in line,” says Jason Goldberg, senior vice president of commerce and content practice at consulting group SapientRazorfish.

J.C. Penney, which has been offering mobile checkout for years, says it sent an additional 6,000 mobile devices to stores this year so workers can check shoppers out quicker, like when lines get long on Black Friday. Other stores are testing it for the first time: Kohl’s says iPad-wielding workers will roam 160 of its more than 1,100 stores.

Macy’s, which announced its program in May, says customers need to use its mobile app to scan price tags and pay. After that, they have to go to a mobile checkout express line and show the app to a worker, who then removes security tags from clothing.

Target’s mobile checkout program, which is being rolled out to all its 1,800 stores, is similar to Walmart’s. Target says that at its electronics area, where there are usually two cash registers, four workers will be sent with handheld devices to help ring up customers buying TVs, video games and other devices.

“This is about servicing the guest however they want and as quickly as they want,” says John Mulligan, Target’s chief operating officer.

 

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Solar-powered Suitcases Bring Light to Darkened Classrooms

Solar-powered suitcases are bringing light to darkened classrooms and struggling students in rural Kenya. Before solar power, the alternatives were small tin kerosene lamps that are not only expensive to fill but also have caused some health problems. VOA’s Mariama Diallo reports.

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Canada Unveils Investment Tax Break

Canada will allow businesses to write off additional capital investments to make them more competitive at a time when the United States is aggressively cutting taxes, Finance Minister Bill Morneau said Wednesday. 

But Morneau, speaking as he unveiled a budget update that forecast a slightly smaller than predicted deficit for 2018-19, said Ottawa would not be slashing taxes to match aggressive moves by Washington. 

“If we were to do that, it would add tens of billions in new debt,” he told the House of Commons. 

The move could disappoint business groups that said Ottawa needed to do much more to match the U.S. cuts. Morneau acknowledged their concern and said it would be neither rational nor responsible to do nothing. 

The federal government will allow businesses to immediately write off for tax purposes the full cost of machinery and equipment used in the manufacturing and processing of goods. The measure covers purchases made on or after Wednesday and expires in 2027. 

The budget update projected a C$18.1 billion ($13.7 billion) deficit for 2018-19, which was smaller than a revised C$18.8 billion projection made in the February budget. The fiscal year ends on March 31. 

Ottawa is also introducing an accelerated capital cost allowance for all businesses and allowing some clean energy equipment to be eligible for an immediate write-off. 

The combined effect of the measures means the average overall tax rate in Canada on new business investment will fall to 13.8 percent from 17.0 percent, the lowest level in the Group of Seven large industrialized nations.

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German Car Bosses Reportedly Invited to White House to Discuss Tariffs 

The Trump administration has invited the heads of Volkswagen, BMW and Daimler to the White House to discuss U.S. tariffs on carmakers, the Handelsblatt newspaper reported on Wednesday.

Citing industry and diplomatic sources, the paper said the meeting could possibly take place as soon as next week, depending on circumstances. Handelsblatt said it was not known whether U.S. President Donald Trump would attend the meeting.

A spokesman for Volkswagen declined to confirm or deny whether the carmaker had received an invitation. Sources close to VW said it had not received an invitation.

 

Daimler and BMW did not immediately respond to requests for comment. The White House did not immediately respond to a request for comment.

Trump has threatened for months to impose tariffs on all European Union-assembled vehicles, a move that could up-end the industry’s business model for selling cars in the United States.

But he has refrained from imposing car tariffs while the United States and European Union launch negotiations to cut other trade barriers.

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Repatriated 6th-Century Mosaic to Help Reconstitute Apse

A rare, 1,500 year-old mosaic depicting St. Mark has joined other repatriated pieces that were looted from the ethnically split Cyprus’ breakaway north, a Cypriot Orthodox Church official said Wednesday.

Together the pieces will create a Swiss government-funded reproduction of an apse that adorned a 6th-century church in the island’s north.

The mosaics were stolen by Turkish art dealer Aydin Dikman from the Church of the Virgin of Kanakaria about four decades ago and sold abroad.

Cyprus’ Byzantine Museum Director Ioannis Eliades said the apse will go on display at the museum until it can return to the Kanakaria church.

“This is a major project that we had envisioned for many years to restore these pieces and now we have the last piece,” Eliades told The Associated Press.

“Especially such a mosaic which dates to the same period as the Ravenna mosaics is of particular importance, of great architectural value and … also has a very high religious value.”

The Kanakaria mosaics are among a few early Christian works that survived the iconoclastic period in the 8th and 9th centuries when most of such works were destroyed.

The St. Mark mosaic returned to Cyprus after Dutch investigator Arthur Brand tracked it down in Monaco and handed it over to authorities at the Cypriot Embassy in the Netherlands last week.

The Cyprus Antiquities Department said that initial information about the mosaic’s whereabouts was provided to Cypriot authorities two years ago by the Greek-American organization AHEPA.

The department said pieces of the mosaics including those of Saints Luke, Bartholomew, Matthew, James, Thaddeus, Thomas and Andrew as well as the upper part of the Virgin Mary and Christ were gradually repatriated since 1983, but more pieces are still missing.

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Trump Thanks Saudis for Tamping Down World Oil Prices

U.S. President Donald Trump on Wednesday thanked Saudi Arabia for tamping down world oil prices, a day after saying the U.S. would not turn its back on Riyadh despite its responsibility for killing a dissident U.S.-based Saudi journalist.

From his retreat along the Atlantic Ocean in Florida, Trump praised the Saudis, second only to the U.S. as an oil producer but the biggest global exporter, for sending enough crude to world markets to keep oil prices in check.

Before leaving Washington for the Thanksgiving holiday, Trump told reporters at the White House that U.S. national security and economic interests outweigh any human rights concerns. He said turning his back on Saudi Arabia, despite the killing of Jamal Khashoggi, “would be a terrible mistake.”

“We’re staying with Saudi Arabia,” Trump announced. He noted the kingdom’s opposition to Iran and its purchases of American military equipment that mean, according to the president, “hundreds of thousands of jobs and billions of dollars of investment.”

Russia and China “are not going to get that gift,” Trump said before adding that oil prices would soar if the U.S.-Saudi relationship is broken up.

Secretary of State Mike Pompeo, in an interview with a Kansas City radio station, defended Trump’s stance favoring Saudi Arabia, while noting that the U.S. had sanctioned 17 Saudis believed involved in the Khashoggi killing.

“We are going to make sure that America always stands for human rights,” Pompeo said.

But the top U.S. diplomat said the protection of Americans was of paramount concern to Trump.

“The Kingdom of Saudi Arabia has been an important national security partner to the United States, pushing back against the murderous regime in Iran that actually presents real risk to the American people, and we are determined to make sure that the relationship between the United States and Saudi Arabia stays strong so that we can protect America,” Pompeo said.

‘Maybe he did, maybe he didn’t’

Asked at the White House about the CIA’s reported conclusion that Saudi Crown Prince Mohammed bin Salman likely knew about or ordered the plot to kill Khashoggi inside Riyadh’s consulate in Istanbul, Trump replied: “Maybe he did, maybe he didn’t.” Of the CIA’s finding, he declared: “They have nothing definitive.”

The president denied his decision to avoid harshly punishing the Saudis for the October 2 killing has anything to do with his personal business interests.

“I don’t make deals with Saudi Arabia. I don’t make money from Saudi Arabia,” Trump said. “Being president has cost me a fortune.”  

Trump said earlier he understands that some lawmakers in Congress want to pursue sanctions against Riyadh for the killing “for political or other reasons” and said, “They are free to do so.”

“I will consider whatever ideas are presented to me, but only if they are consistent with the absolute security and safety of America,” Trump said.

But the leaders of the Senate Foreign Relations Committee, Republican Bob Corker and Democrat Robert Menendez, sent a letter to Trump Tuesday reminding him U.S. law requires him to examine whether the crown prince ordered Khashoggi’s death.

The Global Magnitsky Human Rights Accountability Act requires the president to determine if a foreign official is responsible for a human rights violation.

The act is named for Russian accountant Sergei Magnitsky who was apparently beaten to death in prison in 2009 after accusing Russian officials of tax fraud.

 

“I never thought I’d see the day a White House would moonlight as a public relations firm for the Crown Prince of Saudi Arabia,” Senator Corker tweeted Tuesday. He added that  Congress will consider “all the tools at our disposal” to determine the role of the crown prince in the Khashoggi killing. 

Khashoggi lived in the United States, writing opinion articles for The Washington Post that were critical of the crown prince and Riyadh’s military involvement in Yemen.

His editor at the Post, Karen Attiah, described Trump’s statement as “full of lies and a blatant disregard for his own intelligence agencies. It also shows an unforgivable disregard for the lives of Saudis who dare criticize the regime. This is a new low.”

 

U.S Intelligence Community

.

Veterans of the U.S. Intelligence Community are also expressing their disdain with the president’s stance.

Former CIA Director John Brennan, who has repeatedly clashed with Trump, said on Twitter that Trump “excels in dishonesty” so now it is up to Congress to obtain and declassify the CIA findings on Khashoggi’s death.

“No one in Saudi Arabia — most especially the Crown Prince — should escape accountability for such a heinous act,” Brennan wrote.

Former CIA officer Ned Price wondered Tuesday “how appointed intelligence leaders could continue to serve after this betrayal is beyond me.”

A Saudi prosecutor cleared the crown prince of wrongdoing last week while calling for the death penalty for five of the 11 suspects indicted in the killing.  The prosecutor said a total of 21 people have been detained.

Turkish officials concluded that Khashoggi was tortured and killed and his body dismembered. His remains have not been found.

Foreign Minister Mevlut Cavusoglu said Tuesday Turkey might formally seek a United Nations investigation of the killing if cooperation with Riyadh reaches an impasse.

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Facebook Sued by Russian Firm Linked to Woman Charged by US Government

A Russia-based news company whose accountant was charged by federal prosecutors for attempting to meddle in U.S. elections sued Facebook Inc in a federal court Tuesday, claiming that its Facebook page was improperly removed.

The Federal Agency of News LLC and its sole shareholder, Evgeniy Aubarev, filed the lawsuit against Facebook in federal court in the Northern District of California, seeking damages and an injunction to prevent Facebook from blocking its account.

Facebook deleted the company’s account in April as it purged pages and accounts associated with the St. Petersburg-based Internet Research Agency, which was indicted by Special Counsel Robert Mueller earlier this year for interfering in the 2016 U.S. election.

FAN and Zubarev said they were improperly swept up in Facebook’s purge.

Facebook did not immediately respond to a request for comment on the lawsuit.

“FAN is an independent, authentic and legitimate news agency which publishes reports that are relevant and of interest to the general public,” the company said in the lawsuit.

Peter Carr, a spokesman for Mueller, declined to comment.

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A New Toy Promises To Teach Girls To Code While Playing With Dolls

Technology jobs will experience high growth between now and 2030 but only a fraction of girls are likely to pursue degrees that will help them get those jobs. A new toy called SmartGurlz hopes to help change that. Deana Mitchell joins in on the play time.

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Retail Disappointments, Energy Decline Hit Wall Street

Stocks dropped again Tuesday as losses mounted for the world’s largest technology companies. Retailers also fell, and energy companies plunged with oil prices as the market sank back into the red for the year. 

 

Oil prices tumbled another 6.6 percent as Wall Street reacted to rising oil supplies and concerns that global economic growth will slow down, a worry that’s intensified because of the trade tensions between the U.S. and China. 

 

Technology companies were hit after the Trump administration proposed new national security regulations that could limit exports of high-tech products in fields such as quantum computing, machine learning and artificial intelligence. 

 

Retailers also skidded. Target’s profit disappointed investors as it spends more money to revamp its stores and its website, while Ross Stores, TJX and Kohl’s also fell on disappointing forecasts. 

 

The S&P 500 index lost 48.84 points, or 1.8 percent, to 2,641.89. The Dow Jones industrial average sank 551.80 points, or 2.2 percent, to 24,465.64. 

 

The tech-heavy Nasdaq composite lost 119.65 points, or 1.7 percent, to 6,908.82. The Russell 2000 index of smaller-company stocks shed 27.53 points, or 1.8 percent, to 1,469.01. 

 

The Dow industrials have lost 3.7 percent in the last two days, and the S&P 500 is off 3.4 percent. The Nasdaq is off 4.7 percent. The S&P 500 index has fallen 9.9 percent from the record high it set exactly two months ago. 

 

Investors are measuring several headwinds and increasingly playing it safe. The global economy is showing signs of weakening, with the United States, China and Europe all facing the rising threat of a slowdown, which can hurt demand for commodities such as oil and threaten company profits. Trade tensions between the U.S. and China appear to be getting worse instead of improving, contributing to the sell-off in tech stocks and multinational industrial companies. 

 

For much of this year, investors were hopeful the U.S. and China would easily resolve their differences on trade. That hope has faded in the last two months. While U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet this month at a gathering of the Group of 20 major economies, the proposed limits on tech exports were one more reason to worry. 

 

“A resolution doesn’t seem to be coming in the short term,” said Katie Nixon, the chief investment officer for Northern Trust Wealth Management. “A lot of the companies that are front and center [like] Alphabet, Apple, IBM … could be significantly limited in the way they export their technology.” 

 

Apple fell 4.8 percent to $176.98 and is down 23.7 percent from the peak it reached Oct. 3, though it’s still up almost 5 percent this year. Microsoft lost 2.8 percent to $101.71 and IBM fell 2.6 percent to $117.20. 

 

As the tech giants swoon, investors have lately turned to safer bets such as utilities, real estate companies and makers of household goods. They’ve also sought the safety of U.S. Treasuries. 

 

The price of oil has been falling sharply in recent weeks and is now down 30 percent since Oct. 3. 

 

Saudi Arabia and other countries started producing more oil after the Trump administration announced renewed sanctions on Iran, Nixon noted. The administration granted waivers to several countries that allowed them to continue importing oil from Iran, creating a supply glut that pushed prices dramatically lower. 

 

Nixon said OPEC countries will probably cut back on oil production, but some investors are worried that the buildup in crude stockpiles is a sign the global economy isn’t doing as well as expected. 

 

Earnings from retailers didn’t help investors’ mood. Target plunged 10.5 percent to $69.03 after reporting earnings that missed Wall Street’s estimates because of higher expenses. Ross Stores, TJX and Kohl’s also fell on disappointing forecasts. 

 

Tech stocks were among the biggest losers in Europe, too. Nokia and Ericsson, two top suppliers of telecom networks, each fell about 3 percent. European indexes fell, with Germany’s DAX index dropping 1.6 percent and the French CAC 30 falling 1.2 percent. Britain’s FTSE 100 lost 0.8 percent. 

 

Stocks also declined in Asia. Japan’s Nikkei 225 lost 1.1 percent and Hong Kong’s Hang Seng shed 2 percent. 

 

Benchmark U.S. crude lost 6.6 percent to $53.43 a barrel in New York. Brent crude, used to price international oils, fell 6.4 percent to $62.53 per barrel in London. Oil prices have nosedived since early October. 

 

Wholesale gasoline fell 5.5 percent to $1.50 a gallon and heating oil skidded 4.6 percent to $1.99 a gallon. Natural gas dipped 3.8 percent to $4.52 per 1,000 cubic feet. 

 

Bond prices were steady. The yield on the 10-year Treasury note remained at 3.06 percent. 

 

Gold slipped 0.3 percent to $1,221.20 an ounce. Silver fell 0.9 percent to $14.27 an ounce. Copper slid 1.2 percent to $2.77 a pound. 

 

The dollar fell to 112.40 yen from 112.54 yen. The euro fell to $1.1399 from $1.1453. 

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As Facebook Faces Fire, Heat Turns Up on No. 2 Sandberg

For the past decade, Sheryl Sandberg has been the poised, reliable second-in-command to Facebook CEO Mark Zuckerberg, helping steer Facebook’s rapid growth around the world, while also cultivating her brand in ways that hint at aspirations well beyond the social network.

But with growing criticism over the company’s practices, or lack of oversight, her carefully cultivated brand as an eloquent feminist leader is showing cracks. Questions these days aren’t so much about whether she’ll run for the Senate or even president, but whether she ought to keep her job at Facebook. 

“Her brand was being manicured with the same resources and care as the gardens of Tokyo,” said Scott Galloway, a New York University marketing professor. “And unfortunately a hurricane has come through the garden.”

Facebook has been dealing with hurricanes for the past two years: fake news, elections interference, hate speech, a privacy scandal, the list goes on. The company’s response — namely, Zuckerberg’s and Sandberg’s — has been slow at best, misleading and obfuscating at worst, as The New York Times reported last week. That report, and one from The Wall Street Journal , underscored Sandberg’s influence at the company, even as Zuckerberg has borne much of the criticism and anger. There have been calls for both to be ousted.

But because of the way Facebook is set up, firing Zuckerberg would be all but impossible. He controls the majority of the company’s voting stock, serves as its chairman and has — at least publicly — the support of its board of directors. Essentially, he’d have to fire himself. Firing Sandberg would be the next logical option to hold a high-level executive accountable. Though the chances are slim, the fact that it has even come up shows the extent of Facebook’s — and Sandberg’s — troubles.

 As chief operating officer, Sandberg is in charge of Facebook’s business dealings, including the ads that make up the bulk of the company’s revenue. She steered Facebook from a rising tech startup into a viable global business expected to reap $55 billion in revenue this year. The company is second only to Google in digital advertising.

But she’s also gotten the blame when things go wrong, including Facebook’s failure to spot Russian attempts to influence U.S. elections by buying U.S. political ads — in rubles. Though Sandberg has denied knowing that Facebook hired an opposition research firm to discredit activists, she created a permissive environment through what the Times called an “aggressive lobbying campaign” against critics. Facebook fired the firm, Definers, after the Times report came out.

Facebook declined to comment on Sandberg or make her available for an interview. A representative instead pointed to Zuckerberg’s remarks that overall, “Sheryl is doing great work for the company. She’s been a very important partner to me and continues to be, and will continue to be. She’s leading a lot of the efforts to improve our systems in these areas.”

Sandberg, 49, who was hired away from Google in 2008, has been a crucial “heat shield” for Zuckerberg, as Galloway put it, as lawmakers and the public crank up criticism of the 34-year-old founder. In September, Facebook sent Sandberg to testify before the Senate intelligence committee, eliciting a warmer response than her boss did three months before. 

Sandberg, former chief of staff for treasury secretary Larry Summers, appears more comfortable in Washington meeting rooms than Zuckerberg, who can seem robotic. Her profile is high enough that lawmakers don’t feel stilted when she shows up. She’s written (with help) two books, including 2013’s “Lean In” about women and leadership. Her second book, “Plan B,” is about dealing with loss and grief after her husband died unexpectedly. She was the lone chief operating officer among a who’s who of tech CEOs — including Apple’s Tim Cook and Amazon’s Jeff Bezos — to meet with Donald Trump a month after his election.

“It’s both who she is and how bereft Silicon Valley is of strong, powerful female voices,” crisis management expert Richard Levick said. “She has positioned herself as one of those strong voices with ‘Lean In.’’’

But her high profile also makes her more susceptible to criticism.

The chorus for Sandberg to leave is getting louder. CNBC commentator Jim Cramer predicted Monday that Facebook’s stock would rise if Sandberg leaves or gets fired. NYU’s Galloway believes both Sandberg and Zuckerberg should be fired for allowing Facebook to turn into an entity that harms democracy around the world.

“Every day executives are fired for a fraction of infractions these two have committed,” he said.

Besides elections interference, Zuckerberg and Sandberg have been criticized for their slow response to the Cambridge Analytica scandal, in which the data-mining firm accessed millions of users’ private information without their permission. The pair were silent for days after the news came out.

According to the Journal, Zuckerberg told Sandberg this spring that he blamed her and her teams for the “public fallout” over Cambridge Analytica. Citing unnamed sources, the newspaper said Sandberg at one point wondered if she should be worried about her job (though that appears to no longer be the case, based on Zuckerberg’s public support).

Galloway said it would look bad for Facebook to fire one of the only top female executives in an industry where women “face inordinately high obstacles to get to leadership positions.”

Beyond that, Sandberg has also been a positive force on Facebook. She was hired to be the “adult” in the room and has filled that role well. She moves comfortably outside tech circles and in public speaking, countering Zuckerberg’s shortcomings in that area. 

If anything, Sandberg’s departure from Facebook would likely be on her own terms. While Zuckerberg has spent all of his adult life at Facebook, Sandberg had a career before Facebook and even tech, so it is plausible that she would have a life after Facebook, perhaps back in politics.

But first, she has Facebook’s own troubles to deal with. The task seems daunting because its problems might never go away. But Levick believes she can begin to restore her image by acknowledging her role in causing Facebook’s problems instead of blaming external forces beyond her control: “The knee jerk response ‘poor, poor’ me’ is not the solution.”

 

 

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Boeing Cancels Call to Discuss Issues With Its Newest Plane 

Analysts say Boeing Co. is canceling a conference call that it scheduled to discuss issues around its newest plane, which has come under scrutiny since a deadly crash in Indonesia. 

The company didn’t immediately give an explanation Tuesday. 

CFRA Research analyst Jim Corridore said canceling the call as “a bad look for the company” when it’s facing questions about potential problems with sensors on the 737 MAX. 

U.S. airline pilots say they weren’t told about a new feature that could pitch the nose down automatically if sensors indicate the plane is about to stall. 

On Oct. 29, a Lion Air MAX 8 plunged into the Java Sea, killing all 189 people on board. 

Boeing shares are down about 13 percent since Nov. 9. 

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Thanksgiving Holiday Travel Rush Gets Off to a Good Start

Favorable weather is helping get the Thanksgiving travel rush off to a smooth start.

 

By midday Tuesday, just a few dozen flights had been canceled around the U.S. That’s fewer cancelations than many regular travel days.

 

The AAA auto club predicts that 54.3 million Americans will travel at least 50 miles from home between Wednesday and Sunday, the highest number since 2005 and about a 5 percent increase over last year. AA says 48 million will drive and 4.7 million will fly.

 

Looking at a longer, 12-day period, the airline industry trade group Airlines for America predicts that a record 30.6 million people will fly on U.S. carriers, up from 29 million last year. That’s more than 2.5 million per day.

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Where Did North Korea’s Cyber Army Come From?

North Korean hackers continue to circumvent protections to compromise computer systems around the globe. But how did the reclusive state become so adept at breaking into systems and what role does cryptocurrency play in financing the regime? VOA’s Steve Miller reports from Seoul.

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Nissan Says Chairman Arrested for Financial Misconduct in Japan

Shares in automakers Nissan, Mitsubishi and Renault fell sharply Tuesday after the arrest of executive Carlos Ghosn on allegations of “significant acts” of financial misconduct.

All three firms are considering replacing him as chairman.

Nissan, one of the world’s biggest automakers, said Ghosn falsified reports about his compensation “over many years” and that its internal investigation also found he had used company assets for personal purposes.

Japanese media reported Monday that Ghosn is being questioned by Tokyo prosecutors, suspected of failing to report millions of dollars in income. 

Nissan said that based on a report by a whistleblower, it conducted an internal investigation of Ghosn and Representative Director Greg Kelly and shared its findings with public prosecutors. The company said both men had been arrested.

The automaker said its investigation showed that Ghosn had underreported his income to the Tokyo Stock Exchange by more than $40 million over five years.

The Ashai newspaper reported that prosecutors have raided Nissan’s headquarters in Yokohama. 

The Brazilian-born Ghosn, who is of Lebanese descent and a French citizen, was the rare foreign top executive in Japan.

Ghosn was sent to Nissan in the late 1990s by Renault SA of France, after it bought a controlling stake of Nissan. He is credited with rescuing Nissan from the brink of bankruptcy.

In 2016, Ghosn also took control of Mitsubishi, after Nissan bought a one-third stake in the company, following Mitsubishi’s mileage-cheating scandal. 

Together, the three automakers comprise the biggest global carmaking alliance, manufacturing one of every nine cars sold around the world. The three companies employ more than 470,000 people in nearly 200 countries.

Before Ghosn’s arrest, Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm, said his detention would “rock the Renault-Nissan-Mitsubishi alliance as he is the keystone of the alliance.”

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White House Journalists Invite Historian, Not Comic, to Headline Dinner

Months after comic Michelle Wolf angered Trump administration officials with her blistering routine at the annual White House Correspondents’ Association dinner, the group said on Monday it would feature a historian, not a comedian, at next year’s event.

The WHCA said Ron Chernow, who has written biographies of presidents George Washington and Ulysses Grant and founding father Alexander Hamilton, has been asked to speak on freedom of the press at next year’s black-tie affair in April.

“Freedom of the press is always a timely subject and this seems like the perfect moment to go back to the basics,” Chernow said in a statement released by the WHCA. President Donald Trump has repeatedly derided some media organizations as “fake news” and the “enemy of the people.”

The decision breaks with the association’s long-standing tradition of having a comic roast the president and the press at the dinner, and it drew a sharp response from Wolf.

“The @whca are cowards. The media is complicit. And I couldn’t be prouder,” she said on Twitter.

Presidents traditionally have been given the floor to make their own humorous remarks before the comic speaks. But President Donald Trump, who frequently found himself the target of jokes when he attended before he ran for office, including by then-President Obama, has refused to attend the dinner his first two years in office.

Wolf angered Trump administration officials last April with jokes that many felt were caustic and overly personal, saying of presidential adviser Kellyanne Conway “all she does is lie” and ridiculing press secretary Sarah Sanders’ eye makeup.

It was not the first time comics at the dinner have riled their targets. Stephen Colbert, Wanda Sykes and Seth Meyers have spoken at the dinner and also had their detractors.

But Wolf’s jabs at Trump administration officials prompted the New York Times to question in a headline last April: “Did Michelle Wolf kill the White House Correspondents’ Dinner?”

Although the dinner has become a high-profile event on Washington’s social calendar, it is primarily a fund-raiser to earn money for college journalism scholarships, journalism awards and to pay for other programs sponsored by the WHCA, which represents journalists covering the White House.

“While I have never been mistaken for a stand-up comedian,” Chernow said, “I promise that my history lesson won’t be dry.”

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