Somalia to Get First Direct World Bank Grants in Decades

Somalia’s finance minister says World Bank grants to the government are a sign the country has “trustable leadership” again after decades of chaos and corruption.

The World Bank said Tuesday it will provide $80 million in grants to Somalia’s federal government, the bank’s first direct grants to a Somali central authority in 27 years.

In an interview with VOA’s Somali service, Finance Minister Abdirahman Duale Beileh said the grants are “proof of Somalia’s merit.”

Beileh said $60 million will be used to increase the capacity of Somalia’s financial institutions, and $20 million will go toward education and energy projects to build the country’s resilience.

He said the grants show that international financial agencies have faith the government is capable of fighting against corruption.

“The work we have done and the trustworthiness we have earned brought us here,” he said. 

The World Bank cut ties with Somalia in 1991, following the collapse of the Mohamed Siad Barre government and the start of a long civil war.

Beileh said that in recent years, Somalia’s government has made tangible improvement in management of the economy and its institutions.

However, the latest global index of Transparency International put Somalia as the world’s most corrupt country.

Somali President Mohamed Abdullahi Mohammed, also known as Farmajo, took power last year in an election by parliament that observers said was characterized by bribes and vote-buying.

Beileh acknowledged the government’s fight against corruption is “far from over.”

“There is a perception that Somalia cannot be trusted because of its corruption history. Most of that is not perception,” he said.

He added: “We are proud that we made progress to at least a transparent level that both the World Bank and the IMF can notice.”

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Fed Lifts Rates for Third Time in ’18; One More Expected

The Federal Reserve on Wednesday raised a key interest rate for the third time this year in response to a strong U.S. economy and signaled that it expected to maintain a pace of gradual rate hikes.

The Fed lifted its short-term rate — a benchmark for many consumer and business loans — by a quarter-point to a range of 2 percent to 2.25 percent. It was the eighth hike since late 2015.

The central bank stuck with its previous forecast for a fourth rate increase before year’s end and for three more hikes in 2019.

The Fed dropped phrasing it had used for years that characterized its rate policy as “accommodative” by favoring low rates. In dropping that language, the central bank may be signaling its resolve to keep raising rates.

Many analysts think the economy could weaken next year, in part from the effects of the trade conflicts President Donald Trump has pursued with China, Canada, Europe and other trading partners. The tariffs and countertariffs that have been imposed on imports and exports are having the effect of raising prices for some goods and supplies and potentially slowing growth.

Compounding the effects of the tariffs, other factors could slow growth next year. The benefits of tax cuts that took effect this year, along with increased government spending, for example, are widely expected to fade.

Still, some analysts hold to a more optimistic scenario. They think momentum already built up from the government’s economic stimulus will keep strengthening the job market and lowering unemployment — at 3.9 percent, already near a 50-year low. A tight employment market, in this scenario, will accelerate wages and inflation and prod the Fed to keep tightening credit to ensure that the economy doesn’t overheat.

Full-year growth

The U.S. economy, as measured by the gross domestic product, is expected to grow 3 percent for 2018 as a whole. That would mark the strongest full-year gain in 13 years. For the first nine years of the economic expansion, annual GDP growth averaged only around 2.2 percent.

The robust job market has helped make consumers, the main drivers of growth, more confident than they’ve been in nearly 18 years. Business investment is up. Americans are spending freely on cars, clothes and restaurant meals.

All the good news has helped fuel a stock market rally. Household wealth is up, too. It reached a record in the April-June quarter, although the gain is concentrated largely among the most affluent.

Many economists worry, though, that Trump’s combative trade policies could slow the economy. Trump insists that the tariffs he is imposing on Chinese imports, for which Beijing has retaliated, are needed to force China to halt unfair trading practices. But concern is growing that China won’t change its practices, the higher tariffs on U.S. and Chinese goods will become permanent, and both economies — the world’s two largest — will suffer.

Fed Chairman Jerome Powell has so far been circumspect in reflecting on Trump’s trade war. Powell has suggested that while higher tariffs are generally harmful, they could serve a healthy purpose if they eventually force Beijing to liberalize its trade practices.

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World Economy Remains on Shaky Ground

The U.N. Conference on Trade and Development warns the world economy remains fragile, one decade after the collapse of the U.S. financial titan Lehman Brothers triggered a global economic crisis.

In its report Trade and Development Report 2018: Power, Platforms and the Free Trade Delusion, UNCTAD says the world economy once again is under stress. It views trade wars and escalating tariffs as symptoms of a growing economic malaise. It warns the world economy is walking a tightrope between debt-fueled growth and financial instability.

Lead author of the report Richard Kozul-Wright says many of the underlying problems that caused the 2008 financial crisis have not been addressed. He says footloose capital, precarious jobs, persistent inequality and rising debt remain problematic.

“We see growing asset bubbles and emerging crises everywhere,” he said. “Profits have been on an all-time high and real investment in the economy has not picked up. What we know from history is that debt-fueled booms always end badly. We do not know how. We do not know when, but if history is any guide the excessive reliance on debt in the current global economy will not end well for many economies.”

Kozul-Wright says trade wars, in many ways, are a reflection of lack of trust across the political system. He blames much of the tensions and problems seen in the global trading system on hyper globalization, which has not resulted in a win-win world.

The report finds global trade continues to be dominated by big firms. It says more than 50 percent of world trade is run through the top one percent of each country’s exporting firms.

 

 

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University of Minnesota Awarding Honorary Degree to Prince

 The University of Minnesota will award the late rock star Prince an honorary degree to recognize his influence on music and his role in shaping his hometown of Minneapolis.

 

University President Eric Kaler and Regent Darrin Rosha will present the school’s highest honor, the Doctorate of Humane Letters, to Prince’s sister, Tyka Nelson, in a ceremony on campus Wednesday evening. The university had been preparing to present it to Prince himself before he died of an accidental painkiller overdose in 2016.

 

Students from the university’s School of Music will be joined by guest artists Kirk Johnson, Jellybean Johnson, St. Paul Peterson, Cameron Kinghorn and a surprise guest in paying tribute to Prince by performing music associated with his career.

 

While the event is free, it’s already booked to capacity.

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Will Smith Marks 50th Birthday with Leap Near Grand Canyon

Like a scene out of a high-octane action movie that he would star in, Will Smith celebrated his 50th birthday Tuesday by successfully bungee jumping from a helicopter near the Grand Canyon.

 

Cameras, which captured the stunt for a livestream on YouTube, showed the actor hooked to a harness and bungee cords dangling over a gorge in northeastern Arizona.

 

“This is some of the most beautiful stuff I’ve ever seen in my life,” Smith said while still swinging over the chasm.

 

He described the experience as going “from pure terror to absolute bliss.”

 

The entire event had the feel of a polished episode of reality TV. Camera crews showed Smith, wife Jada Pinkett Smith and his three children being greeted by dozens of relatives and friends on a platform. His “Fresh Prince of Bel-Air” co-star, Alfonso Ribeiro, served as a host interviewing Smith and others before and after.

 

The stunt was billed as a leap “in the heart of the Grand Canyon.” But the jump was outside Grand Canyon National Park on the Navajo Nation. The tribe’s reservation borders the east rim of the national park.

 

A Navajo medicine man gave Smith a blessing and thanked him for coming to the reservation.

 

Smith said the bungee jump was a challenge from Yes Theory, a YouTube channel that makes videos of people doing activities outside of their comfort zone. But the event also raised money for charity through an online lottery for a chance to watch the jump in person. The proceeds will benefit access to education for children in struggling countries.

 

 

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Bill Cosby, Now Inmate NN7687, Placed in Single Cell

Bill Cosby spent his first night in prison alone, in a single cell near the infirmary, as he began his three-to-10-year sentence for sexual assault.

Corrections officials announced Wednesday that Cosby – now known as Inmate No. NN7687 – will serve his sentence at SCI Phoenix, a new state prison about 20 miles from the gated estate where a jury concluded he drugged and molested a woman in 2004. The $400 million lockup opened two months ago and can hold 3,830 inmates.

Cosby will meet with prison medical staff, psychologists and others as the staff assesses his needs. Under prison policy, the 81-year-old comedian will be allowed phone calls and visits and will get a chance to exercise.

The prison’s long-term goal is to place Cosby in the general population, officials said.

“We are taking all of the necessary precautions to ensure Mr. Cosby’s safety and general welfare in our institution,” Corrections Secretary John Wetzel said in a statement.

As Cosby began adjusting to life behind bars, his family and publicists vowed he’ll appeal his conviction on three felony sexual assault counts after the first celebrity trial of the (hash)MeToo era.

Calling Cosby “one of the greatest civil rights leaders in the United States for over the past 50 years,” spokesman Andrew Wyatt on Tuesday decried the trial as the “most sexist and racist” in the country’s history.

The judge, prosecutor and jury saw it differently.

“No one is above the law. And no one should be treated disproportionately because of who they are, where they live, or even their wealth, celebrity or philanthropy,” Montgomery County Judge Steven O’Neill said in sentencing Cosby to an above-average sentence.

Cosby’s defense team has raised the racial issue before, in 2016, before quickly scrapping it.

“We prosecute where the evidence takes us and that was done in this case,” District Attorney Kevin Steele said Tuesday.

After his first trial ended in a hung jury, Cosby was convicted in April of drugging and sexually assaulting Temple University women’s basketball administrator Andrea Constand. He has faced a barrage of similar accusations from more than 60 women over the past five decades, but Constand’s case is the only one that went to trial.

In a statement submitted to the court, Constand, 45, said the assault and Cosby’s subsequent attacks on her character had crushed her spirit, adding: “We may never know the full extent of his double life as a sexual predator, but his decades-long reign of terror as a serial rapist is over.”

Prosecutor Kristen Feden said Constand told her she was happy with the sentence.

“I always look for my strength in the victims, and Andrea Constand was amazing,” Feden said on NBC’s “Today” show Wednesday. “Her courage and her strength was enough for me to say, ‘Let’s keep going.'”

Women’s advocates hailed Cosby’s sentence as a landmark (hash)MeToo moment.

“Bill Cosby seeing the inside of a prison cell sends a strong message that predators – no matter who they are, from Hollywood to Wall Street to the Supreme Court – can no longer be protected at the expense of victims,” said Sonia Ossorio, president of the National Organization for Women of New York.

Cosby’s lawyers asked that he be allowed to remain free on bail while he appeals his conviction, but the judge ordered him locked up immediately, saying that “he could quite possibly be a danger to the community.”

Cosby – who is legally blind and uses a cane – removed his watch, tie and jacket and walked out in a white dress shirt and red suspenders, his hands cuffed in front of him.

Cosby must serve the minimum of three years before becoming eligible for parole.

Cosby’s punishment, which also included a $25,000 fine, came at the end of a two-day hearing at which the judge declared him a “sexually violent predator” – a designation that subjects him to monthly counseling for the rest of his life and requires that neighbors and schools be notified of his whereabouts. A psychologist for the state testified that Cosby appears to have a mental disorder characterized by an uncontrollable urge to have sex with women without their consent.

Constand testified that Cosby gave her what she thought were herbal pills to ease stress, then penetrated her with his fingers as she lay immobilized on a couch. Cosby claimed the encounter was consensual, and his lawyers branded her a “con artist” who framed the comedian to get a big payday – a $3.4 million settlement she received over a decade ago.

The AP does not typically identify people who say they are victims of sexual assault unless they come forward publicly, which Constand and other accusers have done.

Five other accusers took the stand at the trial as part of an effort by prosecutors to portray Cosby – once known as America’s Dad for his role on the top-rated “Cosby Show” in the 1980s – as a serial predator.

Constand went to police a year after waking up in a fog at Cosby’s estate, her clothes askew, only to have the district attorney pass on the case. Another DA reopened the file a decade later and charged the TV star after stand-up comic Hannibal Buress’ riff about Cosby’s being a rapist prompted other women to come forward, and after a federal judge, acting on a request from The Associated Press, unsealed some of Cosby’s startling, decade-old testimony in Constand’s related civil suit.

In his testimony, Cosby described sexual encounters with a string of actresses, models and other young women and talked about obtaining quaaludes to give to those he wanted to sleep with.

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Senate Panel Opens Hearing on Crafting US Privacy Law

The Trump administration is hoping Congress can come up with a new set of national rules governing how companies can use consumers’ data that finds a balance between “privacy and prosperity.”

But it will be tricky to reconcile the concerns of privacy advocates who want people to have more control over the usage of their personal data — where they’ve been, what they view, who their friends are —and the powerful companies that mine it for profit.

Senior executives from AT&T, Amazon, Apple, Google, Twitter and Charter Communications are scheduled to testify at the hearing, amid increasing anxiety over safeguarding consumers’ data online and recent scandals that have stoked outrage among users and politicians.

Sen. John Thune, a South Dakota Republican who heads the Senate Commerce Committee, opened Wednesday’s hearing by saying there’s a strong desire by both Republicans and Democrats for a new data privacy law.

But the approach being pondered by policymakers and pushed by the internet industry leans toward a relatively light government touch. That’s in contrast to stricter EU rules that took effect in May.

An early move in President Donald Trump’s tenure set the tone on data privacy. He signed a bill into law in April 2017 that allows internet providers to sell information about their customers’ browsing habits. The legislation scrapped Obama-era online privacy rules aimed at giving consumers more control over how broadband companies like AT&T, Comcast and Verizon share that information.

Allie Bohm, policy counsel at the consumer group Public Knowledge, says examples abound of companies not only using the data to market products but also to profile consumers and restrict who sees their offerings: African Americans not getting access to ads for housing, minorities and older people excluded from seeing job postings.

The companies “aren’t going to tell that story” to the Senate panel, she said. “These companies make their money off consumer data.”

What is needed, privacy advocates maintain, is legislation to govern the entire “life cycle” of consumers’ data: how it’s collected, used, kept, shared and sold.

Meanwhile, regulators elsewhere have started to act.

The 28-nation European Union put in strict new rules this spring that require companies to justify why they’re collecting and using personal data gleaned from phones, apps and visited websites. Companies also must give EU users the ability to access and delete data, and to object to data use under one of the claimed reasons.

A similar law in California will compel companies to tell customers upon request what personal data they’ve collected, why it was collected and what types of third parties have received it. Companies will be able to offer discounts to customers who allow their data to be sold and to charge those who opt out a reasonable amount, based on how much the company makes selling the information.

Andrew DeVore, Amazon’s vice president and associate general counsel, told the Senate panel Wednesday that it should consider the “possible unintended consequences” of California’s approach. For instance, he says the state law defines personal information too broadly such that it could include all data.

The California law doesn’t take effect until 2020 and applies only to California consumers, but it could have fallout effects on other states. And it’s strong enough to have rattled Big Tech, which is seeking a federal data-privacy law that would be more lenient toward the industry.

“A national privacy framework should be consistent throughout all states, pre-empting state consumer-privacy and data security laws,” the Internet Association said in a recent statement . The group represents about 40 big internet and tech companies, spanning Airbnb and Amazon to Zillow. “A strong national baseline creates clear rules for companies.”

The Trump White House said this summer that the administration is working on it, meeting with companies and other interested parties. Thune’s pronouncement and one from a White House official stress that a balance should be struck in any new legislation — between government supervision and technological advancement.

The goal is a policy “that is the appropriate balance between privacy and prosperity,” White House spokeswoman Lindsay Walters said. “We look forward to working with Congress on a legislative solution.”

 

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Asian Lender Says Trade Wars, Debt Adding to Financial Risks

Trade conflicts, rising debt and the potential impact from rising interest rates in the U.S. will likely dampen growth in the coming year, the Asian Development Bank said Wednesday in an update of its regional economic outlook report. 

The Manila, Philippines-based regional lender said Wednesday that it expects economic growth to remain at a robust 6.0 percent in 2018 but to slip to 5.8 percent next year. 

It cited looming financial and trade shocks as the biggest sources of potential trouble. If the U.S. economy shows signs of overheating, interest rate hikes by the Federal Reserve could disrupt currency markets and other capital flows, leading to problems with bad loans. 

Overly high housing prices also are risks for China, Hong Kong, Malaysia and South Korea, it said. 

But it said the bigger threat comes from potential damage to supply chains caused by trade conflicts, especially between the U.S. and China. 

President Donald Trump pushed ahead Monday with higher tariffs on $200 billion of Chinese imports.

In a conflict stemming from U.S. complaints Beijing steals or pressures foreign companies to hand over technology, Trump went ahead Monday with a tax hike on $200 billion of Chinese imports. Beijing retaliated by imposing penalties on $60 billion of U.S. goods.

That move will likely shave 0.5 percentage points off of China’s growth and 0.1 percentage points off of growth in the U.S., the report said. 

It said further expansion would cause still more pain across the region, though while the U.S. trade deficit with China might shrink, the deficit with Asia overall would not decline so much because other countries would likely exporting more to make up the difference. 

China and the United States had earlier imposed 25 percent tariffs on $50 billion of each other’s goods. Combined, the tariffs now cover nearly half the goods and services China sells America and nearly 60 percent of what the United States sells China. 

“Prolonged trade conflict can damage confidence and deter investment,” the ADB report said. It said the impact would be large both regional and globally, especially if it expands to include autos and auto trade. 

“Estimates of impacts do not fully capture possible disruption to production units as overseas business networks are severed and investment plans are cancelled amid a reallocation of global production,” it said.

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Irishman Donates World’s Largest Model Aircraft Collection

When Irishman Michael Kelly was a boy, he loved nothing more than gazing at planes taking off and landing at his nearest airport.

Now 67, after more than half a century building what he believes is the world’s largest private collection of model aircraft, he has donated the lot to Shannon Airport, where his lifelong passion for aviation began.

“I always used to love the noise of the aircraft going over my house in Limerick city and I was very curious,” Kelly said after cutting the ribbon on the airport’s new aviation gallery which now houses his collection in rows of display cases.

“When I made my first holy communion I asked my mum and dad to take me to Shannon airport. So I got to see the beautiful aircraft and from that day on I was hooked.”

While he would have loved the opportunity to have become a pilot, sourcing rare model aircraft still took the Limerick man around the world. None of his 2,300 planes were produced in Ireland.

A friend said Kelly has spent 10,000 euros ($12,000) a year amassing the record haul.

The collector’s favorite? A Boeing KC Tanker, one of only 10 made around the world.

Living alone in his renovated farmhouse, Kelly said there were exhibitors on the other side of the world “that would do anything” to have the collection. Instead, he donated it closer to home.

“I think it’s testament to the work he’s done over the last 60 years and we are delighted that he has entrusted us to look after it for the next 100-years plus,” said Niall Maloney, operations director at Shannon Airport.

($1 = 0.8499 euros)

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In ‘Free Solo,’ Love Proves A Steeper Challenge for Honnold Than El Cap

The important thing to rock climber Alex Honnold is that the movie screen be big. IMAX, whatever. But big.

It’s shortly before the Toronto International Film Festival premiere of Free Solo, the documentary that chronicles Honnold’s legendary, ropeless ascent up Yosemite’s El Capitan, a 3,000-foot wall of sheer granite and possibly the world’s most fabled rock face. Honnold has just come from free soloing — climbing without safety gear — a 69-story luxury apartment building in Jersey City, New Jersey.

From a hotel window he scans the Toronto skyline but doesn’t see anything much appealing. “It has to be inspiring aesthetically,” he says.

Honnold, 33, is widely acknowledged as the greatest free-solo climber in the world. And in a sport that demands absolute perfection from its strivers — death is the only alternative — Honnold’s feat on El Cap is his masterpiece. An almost unfathomable climbing achievement, the four-hour climb is still spoken of in hushed reverence. The New York Times called it “one of the greatest athletic feats of any kind, ever.”

But whether scaling El Cap was Honnold’s greatest challenge is an open question. Jimmy Chin and Elizabeth Chai Vasarhelyi’s Free Solo, in theaters Friday, not only chronicles Honnold’s famed ascent, and the months of preparation and anguish leading up to it, but also an arguably steeper challenge for the 33-year-old Honnold: moving out of his van and maintaining a long-term relationship.

“Anybody, if you took two years of their life, you would see some growth, hopefully,” Honnold says. “But it’s easy to see growth when you’re starting at zero.”

After settling whether Free Solo would screen on IMAX (it wouldn’t), Honnold was joined by Sanni McCandless, his girlfriend of several years. Just as Chin and Vasarhelyi, the filmmaking couple of the celebrated Meru, were beginning their film three years ago, McCandless slipped Honnold her number at a book signing. The exceptionally dedicated but goofy and boyish Honnold (in the film, he sums up the fearsome specter of El Cap with the phase “I mean, dude”) is at first almost comically inept at making room for someone else in his life.

“When we started he was online dating, or on-phone dating, on his book tour. And then he met her. We were not expecting that,” says Vasarhelyi.

‘Extremely painful’

The two make an appealing and revealing match. McCandless, articulate and assertive, pushes back against the less mature, bluntly honest Honnold, long a bachelor adventurer. Vasarhelyi shakes her head. “It’s painful at times,” she says, smiling. “Extremely painful.”

Case in point: When Honnold, shortly after meeting Sanni, is shown saying that she will come and go like previous girlfriends. Later, they buy a place in Las Vegas and are seen refrigerator shopping.

“How do you feel about that line, Sanni?” Honnold asks.

“How do YOU feel about that line?” she retorts. 

“That’s just one of many lines in the film I’m slightly horrified to hear back,” says Honnold. “That’s kind of the nature of two years of filming. They just have so much material of me saying terrible things.”

What makes Free Solo so fascinating is how these developments influence Honnold just as he preparing to take his biggest risk as a climber. Just the slightest distractions can be potentially lethal for a free soloist, making both the onset of love and the presence of film cameras unpredictable factors in a zero-sum game.

“Soloing always come from some kind of particular mental space. And it has taken some effort to cultivate the right space for a relationship, the right space to still climb at a high level and just try to balance it,” says Honnold.

‘Glorious’ climb

The high stakes also transferred to the film crew. Chin, himself an expert climber, estimates that he and the team of veteran climbers spent more than 30 days rigging and shooting on El Cap. The danger is very real. Many renowned solo climbers have died; just in June, two experienced climbers, Jason Wells and Tim Klein, fell to their death while “simul-climbing” El Cap with ropes.

“You’re a pro, but when you have that much exposure and you’re moving that much equipment and you’re filming on top of it and thinking about your friend, it’s a tremendous amount of physical and mental exertion,” says Chin. “The crew was tortured by the idea that maybe you’ll be filming your friend’s death.”

Vasarhelyi says the tension was highest when Honnold made his first, aborted soloing attempt of El Cap despite a recent injury. She felt he wasn’t prepared.

“But I don’t think our role as filmmakers was to tell him not do it,” she says. “And that’s weird, right? Especially when there’s a life on the line.”

McCandless has also had to come to terms with Honnold’s obsessive pursuits.  

“I don’t think I ever wished that he wouldn’t do it. I wanted him to not want it, but I never wanted him to not to do it,” she says. “Knowing that he does want it, you realize he’s going to be so bummed if he never brings it to fruition.”

Free Solo in some ways demystifies soloing which, to some, can sound like lunacy. Honnold’s preparation is extreme. He doesn’t go until he’s thoroughly mapped out every foot hold of a climb. Also worth noting: A brain scan revealed that Honnold barely registers fear.

“It’s a crazy-seeming thing. I get that,” he says. “I just think: Why does anybody seek out anything challenging? Humans do so many interesting and difficult things.”

Honnold calls his El Cap solo the best climbing experience of his life. “Glorious,” he says. For all their months of anxiety, witnessing the climb left the filmmakers mesmerized.

 “I remember standing in the meadow being totally terrified, trying to get myself under control,” says Vasarhelyi. “Then there was a certain moment where I was like: This is absolutely beautiful. It’s exquisite.”

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Shape-Changing Materials to Enter Everyday Life

Many materials change shape when exposed to heat, electricity or some other kind of energy. That change is usually random, but scientists are now learning how to direct that energy to turn the material into a predetermined shape. VOA’s George Putic visited a lab at Carnegie Mellon University in Pittsburgh that experiments with morphing materials.

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Brazil’s Jobs Crisis Lingers, Posing Challenge for Next President

After losing his job with a foreign food company in March, Alexander Costa surveyed Brazil’s anemic labor market and decided to start selling cheap lunches by the beach in Rio de Janeiro to try and provide for his young family.

“I could have stayed home, looking for work, sending out resumes, with few jobs and things very hard,” Costa said. “But I didn’t stand still. I decided to create something different … to reinvent myself.”

Many other Brazilians have also had to reinvent themselves in recent years, as Latin America’s largest economy struggles to overcome a jobs crisis more than a year after officially exiting recession.

Nearly 13 million people – or more than the entire population of Greece – are out of a job, with the unemployment rate hovering between 12 percent to 14 percent since 2016. As a result, unemployment is among voters’ top concerns ahead of next month’s election.

The desperate search for work amid a string of political graft scandals and rising violence has soured the mood, polarizing debate and distracting from the country’s underlying fiscal challenges.

But only by lowering the unemployment rate will Brazil achieve the rise in household spending it needs to maintain sustained growth, said Marcos Casarin, the head of Latin America macro research at Oxford Economics.

“The only way to have a prolonged recovery in economic activity is if unemployment starts to fall in a substantial way,” he said.

However, it could take several years to get the rate below 10 percent, he said, adding: “I’m not very optimistic.”

Divisive Figures

With no presidential candidate likely to win a majority in the first-round vote on Oct. 7, it looks increasingly likely voters will face a choice between two candidates in the Oct. 28 run-off: far-right Jair Bolsonaro and leftist Fernando Haddad of the Workers Party.

Both are divisive figures — rejected by nearly half the electorate — making it likely that either one will face an uphill battle to pass ambitious economic reforms that foreign investors have long called for.

Bolsonaro has vowed to erase Brazil’s primary budget deficit by 2020 through controversial privatizations and spending cuts.

Haddad has proposed broadening the central bank’s mandate to include unemployment, while boosting government-led investments, revoking a spending ceiling and scuttling privatizations.

Both Bolsonaro and Haddad are pitching their proposals as ways to tackle the unemployment crisis, which has pushed many into the informal sector, sapping tax income and leaving workers without paid holidays, salary raises and other benefits.

Outgoing President Michel Temer last year passed an overhaul of the country’s labor laws, which was intended to make the job market more flexible and which the government said would help create new jobs, an effect that as yet has failed to materialize.

Bolsonaro supports Temer’s labor reform and wants to further cut work regulations to boost jobs. Haddad has suggested putting the labor reform, which was opposed by unions, to a referendum, while also advocating a short-term stimulus program.

Costa, however, was unwilling to wait and see what Brazil’s next president comes up with.

His meals-on-wheels business started slowly, selling 13-reais ($3) lunches from the back of his car in Rio’s wealthy Barra da Tijuca neighborhood. But business took off when he joined forces with his friend, Stefan Weiss, whose white BMW provides a ritzier shop window from which they now sell roughly 200 hot meals each day.

“At the moment, Brazil faces a big problem in relation to the economy and the lack of jobs,” said Weiss, who works on an offshore oil platform but sells meals on days off to earn extra cash. “The people who lost their jobs are trying to find new ways to establish themselves in the market.”

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Into the Fold? What’s Next for Instagram as Founders Leave

When Kevin Systrom and Mike Krieger sold Instagram to Facebook in 2012, the photo-sharing startup’s fiercely loyal fans worried about what would happen to their beloved app under the social media giant’s wings. 

None of their worst fears materialized. But now that its founders have announced they are leaving in a swirl of well wishes and vague explanations, some of the same worries are bubbling up again — and then some. Will Instagram disappear? Get cluttered with ads and status updates? Suck up personal data for advertising the way its parent does? Lose its cool? 

Worst of all: Will it just become another Facebook?

“It”s probably a bigger challenge (for Facebook) than most people realize,” said Omar Akhtar, an analyst at the technology research firm Altimeter. “Instagram is the only platform that is growing. And a lot of people didn’t necessarily make the connection between Instagram and Facebook.”

Instagram had just 31 million users when Facebook snapped it up for $1 billion; now it has a billion. It had no ads back then; it now features both display and video ads, although they’re still restrained compared to Facebook. But that could quickly change. Facebook’s growth has started to slow, and Wall Street has been pushing the company to find new ways to increase revenue.

Instagram has been a primary focus of those efforts.

Facebook has been elevating Instagram’s profile in its financial discussions. In July, it unveiled a new metric for analysts, touting that 2.5 billion people use at least one of its apps — Facebook, Instagram, WhatsApp or Messenger — each month. While not particularly revealing, the measurement underscores the growing importance Facebook places on those secondary apps. 

Facebook doesn’t disclose how much money Instagram pulls in, though Wedbush analyst Michael Pachter estimates it’ll be around $6 billion this year, or just over 10 percent of Facebook’s expected overall revenue of about $55.7 billion. 

Facebook CEO Mark Zuckerberg has long seen Instagram’s promise. At the time, it was by far Facebook’s largest acquisition (although it was dwarfed by the $19 billion Zuckerberg paid for WhatsApp two years later). And it was the first startup allowed to operate mostly independently. 

That has paid off big time. Not only did Instagram reach 1 billion users faster than its parent company, it also succeeded in cloning a popular Snapchat feature, dealing a serious blow to that social network upstart and succeeding where Facebook’s own attempts had repeatedly failed. Instagram also pioneered a long-form video feature to challenge YouTube, another big Facebook rival.

Recently, Instagram has been on a roll. In June, Systrom traveled to New York to mark the opening of its new office there, complete with a gelato bar and plans to hire hundreds of engineers. Only a month earlier, Instagram had moved into sparkly new offices in San Francisco. In a July earnings call, Zuckerberg touted Instagram’s success as a function of its integration with Facebook, claiming that it used parent-company infrastructure to grow “more than twice as quickly as it would have on its own.”

But Instagram has also been a case study in how to run a subsidiary independently — especially when its parent is mired in user-privacy problems and concerns about election interference, fake news and misinformation. And especially when its parent has long stopped being cool, what with everyone and their grandma now on it.

Instagram’s simple design — just a collection of photos and videos of sunsets, faraway vacations, intimate breakfasts and baby close-ups — has allowed it to remain a favorite long after it became part of Facebook. If people go to Twitter to bicker over current events and to Facebook to see what old classmates are up to, Instagram is where they go to relax, scroll and feast their eyes.

So, will that change?

“I don’t think Zuckerberg is dumb,” Akhtar said. “He knows that a large part of Instagram’s popularity is that it’s separate from Facebook.”

As such, he thinks Facebook would be wise to reassure users that what they love about Instagram isn’t going to change — that they are not going to be forced to integrate with Facebook. “That’ll go a long way,” he said. 

Internally, the challenge is a bit more complicated. While Systrom and Krieger didn’t say why they’re leaving, their decision echoes the recent departure of WhatsApp’s co-founder and CEO Jan Koum, who resigned in April. Koum had signaled years earlier that he would take a stand if Facebook’s push to increase profits risked compromising core elements of the WhatsApp messaging service, such as its dedication to user privacy. When Facebook started pushing harder for more revenue and more integration with WhatsApp, Koum pulled the ripcord.

One sign that additional integration may be in Instagram’s future: Zuckerberg in May sent longtime Facebook executive Adam Mosseri to run Instagram’s product operation. Mosseri replaced longtime Instagrammer Kevin Weil, who was shuffled back to the Facebook mothership. 

That likely didn’t sit well with Instagram’s founders, Akhtar and other analysts said. Now that they’re gone as well, Mosseri is the most obvious candidate to head Instagram. 

“Kevin Systrom loyalists are probably going to leave,” Akhtar said. 

Which means Facebook may soon have a new challenge on its hands: Figuring out how to keep Instagram growing if it loses the coolness factor that has bolstered it for so long.

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Global $500M Data Drive Aims to Boost Harvests, End Hunger

A $500 million data drive aims to improve the harvests of hundreds of millions of farmers worldwide as rising hunger levels threaten a global goal to end hunger by 2030, organizations involved in the initiative said Tuesday.

Developing countries and donors launched the “50 X 2030” scheme on the sidelines of the U.N. General Assembly, seeking funding to gather farming data through surveys in 50 nations across Africa, Asia and Latin America over the next 12 years.

Basic statistics, such as what farmers are planting, their yields and access to finance, are often lacking, incomplete or unreliable, making it difficult for governments and donors to know where or how to invest their cash, the United Nations said.

“Each year, governments, businesses and the private sector invest hundreds of billions of dollars in agriculture and design policies without this critical information,” said Emily Hogue, a U.N. Food and Agriculture Organization senior adviser. “This could cause losses in agricultural productivity and income and could also lead to continuing hunger and poverty.”

The push for better data was announced weeks after new U.N. figures showed world hunger has risen for three years running, with 821 million people — one in nine — going hungry in 2017.

Eliminating hunger is one of the 17 U.N. sustainable development goals ( agreed upon by world leaders in 2015.

The initiative aims to increase the coverage and frequency of agricultural surveys so that governments have the information needed to plan and implement the right policies, experts said.

In sub-Saharan Africa, where at least one in four people is estimated to have suffered from chronic hunger in 2017, only two out of 44 nations have high-quality agriculture data, according to the Global Partnership for Sustainable Development Data.

For example, agriculture experts puzzled for years over why milk production was stagnant in an area of East Africa with an abundance of grazing land and rising consumer demand. A detailed survey conducted in 2014 discovered that a lack of basic livestock services, including veterinary care, was hampering production, which rose after the needs were addressed.

“Better data means governments can get the right support to farmers at the right time to increase production and improve their lives,” Claire Melamed, head of the Global Partnership — a network of 300 partners — told the Thomson Reuters Foundation. “It’s a long-term investment.”

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Cosby Gets Up to 10 Years in Prison for Sex Assault

His Hollywood career and good-guy image in ruins, an 81-year-old Bill Cosby was sentenced Tuesday to three to 10 years behind bars for drugging and sexually assaulting a woman, becoming the first celebrity of the #MeToo era to be sent to prison.

 

The punishment all but completed the dizzying, late-in-life fall from grace for the comedian, former TV star and breaker of racial barriers.

 

“It is time for justice. Mr. Cosby, this has all circled back to you. The time has come,” Montgomery County Judge Steven O’Neill said. He quoted from victim Andrea Constand’s own statement to the court, in which she said Cosby took her “beautiful, young spirit and crushed it.”

 

Cosby declined the opportunity to speak before the sentence came down, and afterward he sat smiling, laughing and chatting with defense team. His wife of 54 years, Camille, was not in court. Constand smiled broadly upon hearing the punishment and was hugged by others in the courtroom.

 

Cosby’s lawyers asked that he be allowed to remain free on bail while he appeals his conviction, but the judge appeared incredulous over the request and turned it down, saying that even considering Cosby’s age and blindness, “he could quite possibly be a danger to the community.”

 

Cosby was also fined $25,000.

 

Former model Janice Dickinson, who was among the 60 or so women who have come forward to accuse Cosby of drugging and violating them over the past five decades, looked at Cosby and said: “Here’s the last laugh pal.”

 

The punishment came at the end of a two-day hearing at which the judge declared Cosby a  “sexually violent predator” — a modern-day scarlet letter that subjects him to monthly counseling for the rest of his life and requires that neighbors and schools be notified of his whereabouts.

 

The comic once known as America’s Dad for his role on the top-rated “Cosby Show” in the 1980s was convicted in April of violating Constand, Temple University women’s basketball administrator, at his suburban Philadelphia estate in 2004. It was the first celebrity trial of the #MeToo era.

 

Cosby faced a sentence of anywhere from probation to 10 years in prison. His lawyers asked for house arrest, saying Cosby — who is legally blind — is too old and vulnerable to do time in prison. Prosecutors asked for five to 10 years behind bars, saying he could still pose a threat to women.

 

Montgomery County District Attorney Kevin Steele rejected the notion that Cosby’s age and infirmity entitle him to mercy. “He was good at hiding this for a long time. Good at suppressing this for a long time. So it’s taken a long time to get there,” Steele said.

 

The sentencing came as another extraordinary #MeToo drama unfolded on Capitol Hill, where Supreme Court nominee Brett Kavanaugh stands accused of sexual misconduct more than three decades ago.

 

The Cosby case “really raised awareness of the pervasiveness of … sexual misconduct against subordinates and against women of relatively less power,” said Daniel Filler, dean of Drexel University’s law school. “For jurors, I think it’s inherently changed the credibility of the accusers.”

 

The judge ruled on Cosby’s “sexually violent predator” status after a psychologist for the state testified that the entertainer appears to have a mental disorder that gives him an uncontrollable urge to have sex with women without their consent. When the ruling came down, a woman in the courtroom shot her fist into the air and whispered, “Yessss!”

 

In a statement submitted to the court and released Tuesday, Constand, 45, said that she has had to cope with years of anxiety and self-doubt. She said she now lives alone with her two dogs and has trouble trusting people.

 

“When the sexual assault happened, I was a young woman brimming with confidence and looking forward to a future bright with possibilities,” she wrote in her five-page statement. “Now, almost 15 years later, I’m a middle-aged woman who’s been stuck in a holding pattern for most of her adult life, unable to heal fully or to move forward.”

 

She also wrote of Cosby: “We may never know the full extent of his double life as a sexual predator, but his decades-long reign of terror as a serial rapist is over.”

 

The AP does not typically identify people who say they are victims of sexual assault unless they come forward publicly, which Constand and other accusers have done.

 

Constand went to police a year after waking up in a fog at Cosby’s gated estate, her clothes askew, only to have the district attorney pass on the case.

 

Another district attorney reopened the file a decade later and charged the TV star after stand-up comic Hannibal Buress’ riff about Cosby being a rapist prompted more accusers to come forward and after a federal judge, acting on a request from The Associated Press, unsealed some of Cosby’s startling, decade-old testimony in Constand’s related civil suit.

 

In his testimony, Cosby described sexual encounters with a string of actresses, models and other young women and talked about obtaining quaaludes to give to those he wanted to sleep with.

 

Cosby’s first trial in 2017 ended with a hung jury. He was convicted at a retrial that opened months after the #MeToo movement had taken down such figures as Hollywood studio boss Harvey Weinstein, NBC’s Matt Lauer, actor Kevin Spacey and Sen. Al Franken.

 

Constand said Cosby gave her what she thought were herbal pills to ease stress, then penetrated her with his fingers as she lay immobilized on a couch. Cosby claimed the encounter was consensual, and his lawyers branded her a “con artist” who framed the comedian to get a big payday — a $3.4 million settlement she received over a decade ago.

 

Five other accusers took the stand at the trial as part of an effort by prosecutors to portray him as a predator.

 

Cosby, whose estimated fortune once topped $400 million, broke barriers in the 1960s as the first black actor to star in a network show, “I Spy.” He went on to superstardom as wise and understanding Dr. Cliff Huxtable on “The Cosby Show,” a sitcom that showed America a new kind of black TV family: a warm and loving household led by two professionals, one a lawyer, the other a doctor.

 

He also found success with his Saturday morning cartoon “Fat Albert,” appeared in commercials for Jello-O pudding and became a public moralist, lecturing the black community about young people stealing things and wearing baggy pants. He won a Presidential Medal of Freedom and countless Emmys, Golden Globes and Grammy awards.

 

As the allegations mounted, his career all but collapsed, “Cosby Show” reruns were taken off the air, and one college after another stripped him of his honorary degrees.

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Archaeologists Discover ‘Massive’ Ancient Building in Egypt

Egypt says archaeologists have discovered a “massive” ancient building in the town of Mit Rahina, 20 kilometers, or 12 miles, south of Cairo.

The Antiquities Ministry says Tuesday archaeologists also uncovered an attached building that includes a large Roman bath and a chamber likely for religious rituals.

Mostafa Waziri, secretary general of the Supreme Council of Antiquities, says the building is likely part of the residential block of the area, which was the ancient Egyptian capital of Memphis.

Memphis, founded around 3,100 B.C., was home to Menes, the king who united Upper and Lower Egypt.

Egypt hopes such discoveries will spur tourism, partially driven by antiquities sightseeing, which was hit hard by political turmoil following the 2011 uprising.

 

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For Bill Cosby and Chief Accuser, a Day of Reckoning Arrives

Bill Cosby faces a good chance of being sent to prison Tuesday, when a judge is expected to sentence the TV star who was convicted of drugging and sexually assaulting a woman in 2004.

 

Cosby, 81, will have the opportunity to speak in court before he is sentenced.

 

The once-beloved actor and comedian, dubbed “America’s Dad” for his role as Dr. Cliff Huxtable on the top-ranked, 1980s-era “Cosby Show,” faces anything from probation to 10 years in prison for drugging and molesting Andrea Constand, a Temple University basketball administrator, at his estate near Philadelphia. She went to police a year later, only to have a prosecutor turn down the case.

In the years since Constand first went to police in 2005, more than 60 women have accused Cosby of sexual misconduct, though none of those claims have led to criminal charges.

 

Cosby is the first celebrity of the (hash)MeToo era to go on trial, and the first to be convicted.

 

It’s a reckoning that accusers and prosecutors say has been decades in the making.

 

“The victims cannot be un-raped. Unfortunately, all we can do is hold the perpetrator accountable,” said Gianna Constand, the trial victim’s mother, who testified Monday that her daughter’s buoyant personality was forever changed after the attack.

 

The hearing is set to conclude Tuesday after testimony from a defense psychologist who believes Cosby is no longer a danger, given his age, and should not be branded a “sexually violent predator.”

 

Defense lawyer Joseph Green Jr. urged the judge ignore the protests and activism surrounding the case, and send Cosby home on house arrest.

 

“The suggestion that Mr. Cosby is dangerous is not supported by anything other than the frenzy,” Green said, as demonstrators gathered outside the suburban Philadelphia courthouse.

 

Being labeled a sexually violent predator would make him subject to mandatory lifetime counseling and community notification of his whereabouts.

 

On Monday, Kristen Dudley, a psychologist for the state of Pennsylvania, testified that Cosby fits the criteria for a sexually violent predator, showing signs of a mental disorder that involves an uncontrollable urge to have nonconsensual sex with young women.

 

Montgomery County District Attorney Kevin Steele said Cosby would no doubt commit similar crimes if given the chance, warning that the former TV star seemingly gets a sexual thrill out of slipping women drugs and assaulting them.

 

“To say that he’s too old to do that — to say that he should get a pass, because it’s taken this long to catch up to what he’s done?” Steele said, his voice rising. “What they’re asking for is a `get out of jail free’ card.”

 

Cosby, he said, has shown repeatedly that he feels no remorse over his actions. And he said the sentence should send a message to others.

 

“Despite bullying tactics, despite PR teams and other folks trying to change the optics, as one lawyer for the defense put it, the bottom line is that nobody’s above the law. Nobody,” the district attorney said.

 

He urged a five- to 10-year prison sentence .

 

After testifying for several hours at two trials, the first of which ended in a hung jury, Constand spoke in court Monday for just two minutes.

 

“The jury heard me. Mr. Cosby heard me. Now all I am asking for is justice as the court sees fit,” said Andrea Constand, who submitted a much longer victim-impact statement that wasn’t read in court.

 

The AP does not typically identify people who say they are victims of sexual assault unless they come forward publicly, which Constand and other accusers have done.

 

Cosby’s side didn’t call any character witnesses, and his wife of 54 years, Camille, was not in court.

 

Cosby became the first black actor to star in a prime-time TV show, “I Spy,” in 1965. He remained a Hollywood A-lister for much of the next half-century.

 

Monday’s proceedings took place as another extraordinary (hash)MeToo drama continued to unfold on Capitol Hill, where Supreme Court nominee Brett Kavanaugh faces allegations of sexual misconduct from more than three decades ago.

 

 

 

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Justice Dept to Discuss Consumer Protection at Social Media Meeting

The U.S. Justice Department said on Monday it will hold a “listening session” with officials from more than a dozen states on Tuesday to discuss consumer protection and the technology industry, an agency official said.

The meeting, first announced on Sept. 5, was called by Attorney General Jeff Sessions to discuss whether social media companies have intentionally stifled “the free exchange of ideas.” It followed criticisms by President Donald Trump of social media outlets, alleging unfair treatment of conservatives.

Sessions will meet with attorneys general or representatives from California, Louisiana, Missouri, Nebraska, and Texas, among others, said the official, who declined to be named.

Discussions are expected to focus on companies like Facebook, Twitter and Google owner Alphabet, which have been accused by some conservatives of seeking to exclude their ideas.

The companies have denied any bias.

As of Monday, two people familiar with the planning said that they had not yet seen an agenda for the meeting. Last Friday, a person familiar with the discussions said the Justice Department was considering delaying the meeting.

The Justice Department had previously said it had invited a bipartisan group of 24 state attorneys general to attend the Sept. 25 meeting.

Texas Attorney General Ken Paxton has said that he worries about suppression of conservative ideas on Facebook, Twitter and other social media.

A spokeswoman for Attorney General Xavier Becerra from California, home to much of the tech industry, said that he looked forward to a “thoughtful” meeting.

Representative Greg Walden, chair of the House of Representatives Energy and Commerce Committee, said in a hearing this month that Twitter had made “mistakes” that, he said, minimized Republicans’ presence on its site, a practice conservatives have labeled “shadow banning.”

Twitter Chief Executive Jack Dorsey responded at the hearing that some platform’s algorithms had been changed to fix the issue.

Some of the state officials attending the meeting or sending representatives have also expressed concern about how Google uses consumer data.

Mississippi Attorney General Jim Hood filed a lawsuit against Google in January 2017, accusing the company of misusing data collected from public school students who use the company’s software. That lawsuit is pending.

Missouri Attorney General Josh Hawley, meanwhile, opened an investigation in November 2017 into whether Google’s data collection practices violate consumer protection laws. Hawley is also probing whether Google violated antitrust law by manipulating search results to favor its own products.

Google said at the time of the probe being opened that it had “strong privacy protections in place for our users and continue to operate in a highly competitive and dynamic environment.”

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European Union Sets Up Payment System with Iran to Maintain Trade

The five remaining parties to the Iran nuclear deal have agreed to establish a special payment system to allow companies to continue doing business with the regime, bypassing new sanctions imposed by the United States.

Envoys from Britain, France, Germany, Russia, China and Iran issued a statement late Monday from the United Nations announcing the creation of a “Special Purpose Vehicle” that will be established in the European Union. The parties said the new mechanism was created to facilitate payments related to Iranian exports, including oil. 

Federica Mogherini, EU’s foreign policy chief, told reporters after the deal was announced that the SPV gives EU member states “a legal entity to facilitate legitimate financial transactions with Iran…and allow European companies to continue to trade with Iran in accordance to European Union law and could be open to other partners in the world.”

Mogherini said the financial agreement is also aimed at preserving the agreement reached in 2015 with Iran to scale back its nuclear program in exchange for relief from strict economic sanctions. The deal was reached under then-President Barack Obama, but Obama’s successor, Donald Trump, pulled out of the accord in May of this year, saying it didn’t address Tehran’s ballistic missile program or its influence in the Middle East.

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Instagram Co-founders Resign from Social Media Company

The co-founders of Instagram are resigning their positions with the social media company.

 

Chief Executive Kevin Systrom said in a statement late Monday that he and Mike Krieger plan to leave the company in the next few weeks.

 

Krieger is chief technical officer. They founded the photo-sharing app in 2010 and sold it to Facebook in 2012 for about $1 billion.

 

There was no immediate word on why they chose to leave the company but Systrom says they plan to take time off to explore their creativity again.

Representatives for Instagram and Facebook didn’t immediately respond to after-hours messages from The Associated Press.

 

Instagram has seen explosive growth since its founding, with an estimated 1 billion monthly users and 2 million advertisers.

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