Climate Change, Steel, Migration Bedevil G20 Communique

Climate change, steel and migration have emerged as sticking points in the final communique that world leaders will issue at the end of the Group of 20 summit in Argentina later this month, an Argentine government official said on Thursday.

Those issues were the “most complicated” areas of discussion, said Argentina’s Pedro Villagra Delgado, the lead organizer, or “sherpa,” for the summit of leaders from key industrialized and developing economies. 

But he told a press briefing he was optimistic these issues would be resolved in time.

The G20 communique is a non-binding agreement on key international policy issues and will be presented at the conclusion of the two-day summit, which begins on Nov. 30.

Climate goals concern United States

Villagra Delgado said the United States was resistant to including language that outlined guidelines for climate goals in the document.

After withdrawing from the Paris Climate Agreement last year, the United States broke with other G20 member countries who have pledged to end coal usage and take steps to reach the goals outlined in the accord.

Villagra Delgado also said China disagreed with the rest of the G20 countries on steel, but did not provide further details over the specifics of their disagreement.

The United States has skirmished with a number of its trading partners — including China — over steel, imposing a 25 percent duty on imports of steel and a tariff of 10 percent on aluminum.

Other countries objected to including language about immigration in the communique, Villagra Delgado said, but would not elaborate on which countries expressed concern.

WTO reform may be on table

Reform of the World Trade Organization (WTO) may also be a topic of discussion at this month’s meeting, Villagra Delgado said, but added that specific issues to be discussed in the G20 sessions were still being worked out.

U.S. President Donald Trump has threatened to pull out of the WTO, while China has claimed the 20-year-old organization’s dispute resolution mechanisms are outdated in the current global economy.

From: MeNeedIt

Climate Change, Steel, Migration Bedevil G20 Communique

Climate change, steel and migration have emerged as sticking points in the final communique that world leaders will issue at the end of the Group of 20 summit in Argentina later this month, an Argentine government official said on Thursday.

Those issues were the “most complicated” areas of discussion, said Argentina’s Pedro Villagra Delgado, the lead organizer, or “sherpa,” for the summit of leaders from key industrialized and developing economies. 

But he told a press briefing he was optimistic these issues would be resolved in time.

The G20 communique is a non-binding agreement on key international policy issues and will be presented at the conclusion of the two-day summit, which begins on Nov. 30.

Climate goals concern United States

Villagra Delgado said the United States was resistant to including language that outlined guidelines for climate goals in the document.

After withdrawing from the Paris Climate Agreement last year, the United States broke with other G20 member countries who have pledged to end coal usage and take steps to reach the goals outlined in the accord.

Villagra Delgado also said China disagreed with the rest of the G20 countries on steel, but did not provide further details over the specifics of their disagreement.

The United States has skirmished with a number of its trading partners — including China — over steel, imposing a 25 percent duty on imports of steel and a tariff of 10 percent on aluminum.

Other countries objected to including language about immigration in the communique, Villagra Delgado said, but would not elaborate on which countries expressed concern.

WTO reform may be on table

Reform of the World Trade Organization (WTO) may also be a topic of discussion at this month’s meeting, Villagra Delgado said, but added that specific issues to be discussed in the G20 sessions were still being worked out.

U.S. President Donald Trump has threatened to pull out of the WTO, while China has claimed the 20-year-old organization’s dispute resolution mechanisms are outdated in the current global economy.

From: MeNeedIt

Ukraine PM Upbeat on IMF Loan Prospects

Ukrainian Prime Minister Volodymyr Groysman expects to get new loans from the International Monetary Fund as early as December, once parliament passes a budget of stability that refrains from making pre-election populist moves, he said Thursday.

Securing IMF assistance will also unlock loans from the World Bank and the European Union. Groysman also said Ukraine was in negotiations with Washington for a new loan guarantee for sovereign debt.

Groysman negotiated a new deal with the IMF last month aimed at keeping finances on an even keel during a choppy election period next year. The new loans are contingent on his steering an IMF-compliant budget through parliament.

“This budget is a budget of stability and continuation of reforms,” Groysman said in an interview with Reuters. “This is fully consistent with our IMF program.”

“Yes. We are counting on a tranche in December,” he added, when asked about when IMF loans were expected, though he did not elaborate on the possible size of the loan.

Ukraine’s government approved a draft budget in September but it will typically undergo a slew of amendments before parliament finally approves it. 

Tax proposal dropped

Groysman said a proposal to change how companies are taxed — on withdrawn capital, rather than profits — had been dropped from the budget because of the IMF’s concerns.

He also said he would not bow to opposition parties’ demands to reverse a recent increase in household gas tariffs, a step that his government reluctantly took to qualify for more IMF assistance.

“Populism led to the weakness of Ukraine,” he said. “This should not be allowed.” 

The IMF and Kyiv’s foreign allies came to Ukraine’s rescue after it plunged into turmoil following Russia’s annexation of Crimea in 2014 and support for separatist rebels occupying the eastern industrial Donbass region. 

The United States has also sold coal to plug a domestic shortage caused by rebels taking control of mines in the east. U.S. Energy Secretary Rick Perry visited Ukraine this week. 

In response to a question about whether Ukraine would continue to buy coal from the United States and potentially also liquefied natural gas, Groysman said that “liquefied gas is very interesting for Ukraine. We talked about the whole spectrum of our cooperation in the energy sector.”

As for coal, he added, “we will buy it from our international partners until we cover the domestic deficit.” 

Washington has also previously issued loan guarantees for Ukrainian debt. Groysman said another such guarantee was “under discussion.” 

From: MeNeedIt

Ukraine PM Upbeat on IMF Loan Prospects

Ukrainian Prime Minister Volodymyr Groysman expects to get new loans from the International Monetary Fund as early as December, once parliament passes a budget of stability that refrains from making pre-election populist moves, he said Thursday.

Securing IMF assistance will also unlock loans from the World Bank and the European Union. Groysman also said Ukraine was in negotiations with Washington for a new loan guarantee for sovereign debt.

Groysman negotiated a new deal with the IMF last month aimed at keeping finances on an even keel during a choppy election period next year. The new loans are contingent on his steering an IMF-compliant budget through parliament.

“This budget is a budget of stability and continuation of reforms,” Groysman said in an interview with Reuters. “This is fully consistent with our IMF program.”

“Yes. We are counting on a tranche in December,” he added, when asked about when IMF loans were expected, though he did not elaborate on the possible size of the loan.

Ukraine’s government approved a draft budget in September but it will typically undergo a slew of amendments before parliament finally approves it. 

Tax proposal dropped

Groysman said a proposal to change how companies are taxed — on withdrawn capital, rather than profits — had been dropped from the budget because of the IMF’s concerns.

He also said he would not bow to opposition parties’ demands to reverse a recent increase in household gas tariffs, a step that his government reluctantly took to qualify for more IMF assistance.

“Populism led to the weakness of Ukraine,” he said. “This should not be allowed.” 

The IMF and Kyiv’s foreign allies came to Ukraine’s rescue after it plunged into turmoil following Russia’s annexation of Crimea in 2014 and support for separatist rebels occupying the eastern industrial Donbass region. 

The United States has also sold coal to plug a domestic shortage caused by rebels taking control of mines in the east. U.S. Energy Secretary Rick Perry visited Ukraine this week. 

In response to a question about whether Ukraine would continue to buy coal from the United States and potentially also liquefied natural gas, Groysman said that “liquefied gas is very interesting for Ukraine. We talked about the whole spectrum of our cooperation in the energy sector.”

As for coal, he added, “we will buy it from our international partners until we cover the domestic deficit.” 

Washington has also previously issued loan guarantees for Ukrainian debt. Groysman said another such guarantee was “under discussion.” 

From: MeNeedIt

Business Bosses Alarmed as Resignations Imperil Brexit Deal

Business leaders expressed growing alarm Thursday as a draft Brexit agreement seen as the only chance of preserving some stability in U.K.-EU trading threatened to unravel, sending stock prices and the pound plunging.

Just 12 hours after British Prime Minister Theresa May announced that her cabinet had agreed to the terms of the draft agreement, Brexit minister Dominic Raab and work and pensions minister Esther McVey quit, saying they could not support it.

Their departures and those of other, junior ministers, revived the specter for business of Britain leaving the European Union without a deal next March, and sent shares in British housebuilders, retailers and banks tumbling.

“The political situation remains uncertain,” German carmaker BMW said in a statement. “We must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent.

“We continue to call on all sides to work toward a final agreement which maintains the truly frictionless trade on which our international production network is based.”

The European Union is Britain’s biggest trading partner, accounting for 44 percent of U.K. exports and 53 percent of imports to the UK.

After 45 years of membership, industries including defense, cars and aerospace have created intricate supply chains that rely on smooth, “just-in-time” delivery of thousands of parts across the sea that divides Britain from the continent.

Business leaders fear that the country could stumble toward a no-deal Brexit where border checks block ports and fracture the supply chains that support the likes of Rolls-Royce and BAE Systems.

Karen Betts, the head of the Scotch Whisky Association, said a no-deal Brexit would cause “considerable difficulties” for the industry and increase cost and complexity. It accounts for around 20 percent of all U.K. food and drink exports.

‘Only deal in town’

A senior executive at one of Britain’s biggest banks said this was the most disastrous government he had ever seen.

“The rest of the world is looking at us and laughing. It is time to have some stability so business can get some certainty. This is what the country needs.”

Industry bosses who had been briefed on the draft agreement by ministers late Wednesday had broadly welcomed it as the best chance of a compromise that would secure a transition period and avert the chaos of no deal at all.

May’s office also released statements from a number of major companies such as Diageo, the London Stock Exchange and Royal Mail welcoming the draft deal.

“Most business people ultimately are pragmatists and this is about playing the cards we have been dealt rather than wishing for a better hand,” Roger Carr, chairman of BAE Systems, told BBC Radio.

Iain Anderson, executive chairman of public affairs firm Cicero, which represents many finance companies, said although most executives did not like May’s deal they realized it was now the only game in town.

“Business is watching with horror the resignations now taking place,” he said. “Yesterday we had a plan and stability and today we do not.

“There is now no time to negotiate another deal. We thought we had stability — now we have instability writ large.”

The U.K. chief of German industrial group Siemens, which employs 15,000 people in the U.K., reiterated his call to get behind the draft agreement even as senior politicians called for May to quit.

“We hope all sides keep calm, look at the facts, and move to support this draft to provide UK business with greater certainty,” Juergen Maier said in an emailed statement.

Even if May survives, her chances of winning a vote in parliament to approve the draft agreement are seen as slim.

Market jitters

Lawmakers across the political spectrum have said May’s deal will leave Britain bound by EU rules without having any say.

Many have argued it will also damage the integrity of the United Kingdom by aligning Northern Ireland with the rest of the EU in order to avoid a hard border with EU-member Ireland.

Many executives spoken to by Reuters were trying to guess what could happen next, either a national election, a second referendum or the extension of the negotiating period.

One senior executive at a FTSE 100 company was still holding out hope, however, that lawmakers would eventually be persuaded to vote for the deal when it comes before parliament before the end of the year.

“We’re going to need the market to throw up and scare them all into voting for it,” he said. The pound was down 1.8 percent against the dollar in early evening trading.

The CEO of French outdoor advertising company JCDecaux, which runs London’s bus-shelter advertising and makes 10 percent of its sales in Britain, called the situation “obviously very serious.”

“Today’s events reinforce the uncertainties in the market,” Jean-Charles Decaux told Reuters in an interview on the sidelines of an industry conference in Barcelona.

Martin Sorrell, ex-CEO and founder of ad agency group WPP and one of Britain’s best-known businessmen, said the country was in a state. “The situation this morning saps the confidence of the city and the country,” he told Reuters.

From: MeNeedIt

Business Bosses Alarmed as Resignations Imperil Brexit Deal

Business leaders expressed growing alarm Thursday as a draft Brexit agreement seen as the only chance of preserving some stability in U.K.-EU trading threatened to unravel, sending stock prices and the pound plunging.

Just 12 hours after British Prime Minister Theresa May announced that her cabinet had agreed to the terms of the draft agreement, Brexit minister Dominic Raab and work and pensions minister Esther McVey quit, saying they could not support it.

Their departures and those of other, junior ministers, revived the specter for business of Britain leaving the European Union without a deal next March, and sent shares in British housebuilders, retailers and banks tumbling.

“The political situation remains uncertain,” German carmaker BMW said in a statement. “We must therefore continue to prepare for the worst-case scenario, which is what a no-deal Brexit would represent.

“We continue to call on all sides to work toward a final agreement which maintains the truly frictionless trade on which our international production network is based.”

The European Union is Britain’s biggest trading partner, accounting for 44 percent of U.K. exports and 53 percent of imports to the UK.

After 45 years of membership, industries including defense, cars and aerospace have created intricate supply chains that rely on smooth, “just-in-time” delivery of thousands of parts across the sea that divides Britain from the continent.

Business leaders fear that the country could stumble toward a no-deal Brexit where border checks block ports and fracture the supply chains that support the likes of Rolls-Royce and BAE Systems.

Karen Betts, the head of the Scotch Whisky Association, said a no-deal Brexit would cause “considerable difficulties” for the industry and increase cost and complexity. It accounts for around 20 percent of all U.K. food and drink exports.

‘Only deal in town’

A senior executive at one of Britain’s biggest banks said this was the most disastrous government he had ever seen.

“The rest of the world is looking at us and laughing. It is time to have some stability so business can get some certainty. This is what the country needs.”

Industry bosses who had been briefed on the draft agreement by ministers late Wednesday had broadly welcomed it as the best chance of a compromise that would secure a transition period and avert the chaos of no deal at all.

May’s office also released statements from a number of major companies such as Diageo, the London Stock Exchange and Royal Mail welcoming the draft deal.

“Most business people ultimately are pragmatists and this is about playing the cards we have been dealt rather than wishing for a better hand,” Roger Carr, chairman of BAE Systems, told BBC Radio.

Iain Anderson, executive chairman of public affairs firm Cicero, which represents many finance companies, said although most executives did not like May’s deal they realized it was now the only game in town.

“Business is watching with horror the resignations now taking place,” he said. “Yesterday we had a plan and stability and today we do not.

“There is now no time to negotiate another deal. We thought we had stability — now we have instability writ large.”

The U.K. chief of German industrial group Siemens, which employs 15,000 people in the U.K., reiterated his call to get behind the draft agreement even as senior politicians called for May to quit.

“We hope all sides keep calm, look at the facts, and move to support this draft to provide UK business with greater certainty,” Juergen Maier said in an emailed statement.

Even if May survives, her chances of winning a vote in parliament to approve the draft agreement are seen as slim.

Market jitters

Lawmakers across the political spectrum have said May’s deal will leave Britain bound by EU rules without having any say.

Many have argued it will also damage the integrity of the United Kingdom by aligning Northern Ireland with the rest of the EU in order to avoid a hard border with EU-member Ireland.

Many executives spoken to by Reuters were trying to guess what could happen next, either a national election, a second referendum or the extension of the negotiating period.

One senior executive at a FTSE 100 company was still holding out hope, however, that lawmakers would eventually be persuaded to vote for the deal when it comes before parliament before the end of the year.

“We’re going to need the market to throw up and scare them all into voting for it,” he said. The pound was down 1.8 percent against the dollar in early evening trading.

The CEO of French outdoor advertising company JCDecaux, which runs London’s bus-shelter advertising and makes 10 percent of its sales in Britain, called the situation “obviously very serious.”

“Today’s events reinforce the uncertainties in the market,” Jean-Charles Decaux told Reuters in an interview on the sidelines of an industry conference in Barcelona.

Martin Sorrell, ex-CEO and founder of ad agency group WPP and one of Britain’s best-known businessmen, said the country was in a state. “The situation this morning saps the confidence of the city and the country,” he told Reuters.

From: MeNeedIt

Argentine Senate Approves Austerity Budget for IMF Deal

Argentine lawmakers approved an austerity budget for 2019 on Thursday, cutting social spending and raising debt payments to meet conditions for expanded financing from the International Monetary Fund.

The budget approved Thursday by the Senate projects a 0.5 percent slide in GDP and a 23 percent inflation rate by the end of 2019, down from an expected 44 percent this year. It was approved earlier by the lower house.

The budget aims to cut the primary deficit before debt payments to zero — down from 2.6 percent of GDP this year.

Critics say it slashes social spending by 35 percent once inflation is accounted for. The expected blow to education, culture and housing outlays prompted street protests in the capital during the debate.

It also calls for a 50 percent increase in debt service payments in peso terms.

The cuts were called for in a $6.3 billion addition to a $50 billion IMF credit line approved in June.

IMF spokesman Gerry Rice told reporters in Washington that passage of the budget law was a “very positive step” that “points to a clear commitment by the Argentine authorities and a broad spectrum of Argentina’s political forces to strength the country’s economic policies.” 

Rice also said that IMF chief Christine Lagarde is likely to meet Argentine President Mauricio Macri during the Nov. 30-Dec. 1 Group of 20 summit of world leaders that will take place in Buenos Aires. 

Senators allied with former leftist President Cristina Fernandez voted against the measure, but it still passed, 45-24.

“What we are going to do with this budget is deepen the suffering of Argentine society, and it will be a useless sacrifice,” Fernandez, now a senator, said. “We all know that the recession is going to deepen.”

Pro-government Sen. Luis Naidenoff called it an “emergency budget” forced by economic problems that include a slumping GDP, high inflation and rising unemployment.

From: MeNeedIt

Argentine Senate Approves Austerity Budget for IMF Deal

Argentine lawmakers approved an austerity budget for 2019 on Thursday, cutting social spending and raising debt payments to meet conditions for expanded financing from the International Monetary Fund.

The budget approved Thursday by the Senate projects a 0.5 percent slide in GDP and a 23 percent inflation rate by the end of 2019, down from an expected 44 percent this year. It was approved earlier by the lower house.

The budget aims to cut the primary deficit before debt payments to zero — down from 2.6 percent of GDP this year.

Critics say it slashes social spending by 35 percent once inflation is accounted for. The expected blow to education, culture and housing outlays prompted street protests in the capital during the debate.

It also calls for a 50 percent increase in debt service payments in peso terms.

The cuts were called for in a $6.3 billion addition to a $50 billion IMF credit line approved in June.

IMF spokesman Gerry Rice told reporters in Washington that passage of the budget law was a “very positive step” that “points to a clear commitment by the Argentine authorities and a broad spectrum of Argentina’s political forces to strength the country’s economic policies.” 

Rice also said that IMF chief Christine Lagarde is likely to meet Argentine President Mauricio Macri during the Nov. 30-Dec. 1 Group of 20 summit of world leaders that will take place in Buenos Aires. 

Senators allied with former leftist President Cristina Fernandez voted against the measure, but it still passed, 45-24.

“What we are going to do with this budget is deepen the suffering of Argentine society, and it will be a useless sacrifice,” Fernandez, now a senator, said. “We all know that the recession is going to deepen.”

Pro-government Sen. Luis Naidenoff called it an “emergency budget” forced by economic problems that include a slumping GDP, high inflation and rising unemployment.

From: MeNeedIt

Flavored E-Cigarettes to Be Banned at US Convenience Stores

The U.S. Food and Drug Administration on Thursday announced sweeping new restrictions on flavored tobacco products, including electronic cigarettes popular among teenagers in an effort to prevent a new generation of nicotine addicts.

The much-anticipated announcement will mean that only tobacco, mint and menthol e-cigarette flavors can be sold at most traditional retail outlets such as convenience stores.

Other fruity- or sweet-flavored varieties can now only be sold at age-restricted stores or through online merchants that use age-verification checks.

The FDA also plans to seek a ban on menthol cigarettes, a longtime goal of public health advocates, as well as flavored cigars.

FDA Commissioner Scott Gottlieb said the moves are meant to prevent young people from continuing to use e-cigarettes, potentially leading to traditional cigarette smoking.

“We won’t let this pool of kids, a pool of future potential smokers, of future disease and death, to continue to build,” he said. “I will not allow a generation of children to become addicted to nicotine through e-cigarettes,” Gottlieb said.

The agency has faced mounting pressure to act on e-cigarettes amid their surging popularity among U.S. teenagers in recent years. One of the most popular devices, made by San Francisco-based Juul Labs Inc, has become a phenomenon at U.S. high schools, where “Juuling” has become synonymous with vaping.

Data released Thursday by the FDA and the U.S. Centers for Disease Control and Prevention showed a 78 percent increase in high school students who reported using e-cigarettes in the last 30 days, compared with the prior year.

More than 3 million high school students, or more than 20 percent of all U.S. high school students, used the product, along with 570,000 middle school students, according to the survey.

Juul and tobacco giant Altria Group Inc had announced measures to pull flavored e-cigarette products from retail outlets, after the FDA threatened in September to ban Juul and other leading e-cigarette products unless their makers took steps to prevent use by minors.

 

From: MeNeedIt

Flavored E-Cigarettes to Be Banned at US Convenience Stores

The U.S. Food and Drug Administration on Thursday announced sweeping new restrictions on flavored tobacco products, including electronic cigarettes popular among teenagers in an effort to prevent a new generation of nicotine addicts.

The much-anticipated announcement will mean that only tobacco, mint and menthol e-cigarette flavors can be sold at most traditional retail outlets such as convenience stores.

Other fruity- or sweet-flavored varieties can now only be sold at age-restricted stores or through online merchants that use age-verification checks.

The FDA also plans to seek a ban on menthol cigarettes, a longtime goal of public health advocates, as well as flavored cigars.

FDA Commissioner Scott Gottlieb said the moves are meant to prevent young people from continuing to use e-cigarettes, potentially leading to traditional cigarette smoking.

“We won’t let this pool of kids, a pool of future potential smokers, of future disease and death, to continue to build,” he said. “I will not allow a generation of children to become addicted to nicotine through e-cigarettes,” Gottlieb said.

The agency has faced mounting pressure to act on e-cigarettes amid their surging popularity among U.S. teenagers in recent years. One of the most popular devices, made by San Francisco-based Juul Labs Inc, has become a phenomenon at U.S. high schools, where “Juuling” has become synonymous with vaping.

Data released Thursday by the FDA and the U.S. Centers for Disease Control and Prevention showed a 78 percent increase in high school students who reported using e-cigarettes in the last 30 days, compared with the prior year.

More than 3 million high school students, or more than 20 percent of all U.S. high school students, used the product, along with 570,000 middle school students, according to the survey.

Juul and tobacco giant Altria Group Inc had announced measures to pull flavored e-cigarette products from retail outlets, after the FDA threatened in September to ban Juul and other leading e-cigarette products unless their makers took steps to prevent use by minors.

 

From: MeNeedIt