Business News – Federal News Network https://federalnewsnetwork.com Helping feds meet their mission. Wed, 06 Jul 2022 09:30:36 +0000 en-US hourly 1 https://federalnewsnetwork.com/wp-content/uploads/2017/12/cropped-icon-512x512-1-60x60.png Business News – Federal News Network https://federalnewsnetwork.com 32 32 Timeline of crises that have rocked UK’s Boris Johnson https://federalnewsnetwork.com/government-news/2022/07/timeline-of-crises-that-have-rocked-uks-boris-johnson/ https://federalnewsnetwork.com/government-news/2022/07/timeline-of-crises-that-have-rocked-uks-boris-johnson/#respond Wed, 06 Jul 2022 09:26:07 +0000 https://federalnewsnetwork.com/?p=4136868 LONDON (AP) — British Prime Minister Boris Johnson has been dealt a major blow with the resignation of two of his most senior Cabinet ministers, who said they had lost confidence in Johnson’s leadership.

The departures of Treasury chief Rishi Sunak and Health Secretary Sajid Javid came after months of turmoil for Johnson, who has fought off one scandal after another.

Here is a timeline of recent key events that have rocked Johnson and his government:

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Nov. 3-4, 2021: Johnson’s government orders Conservative lawmakers to support a change in ethics rules to delay the suspension of Owen Paterson, a Johnson supporter who had been censured for breaching lobbying rules. The measure passes. A day later, facing an angry backlash from lawmakers of all parties, Johnson reverses course and allows lawmakers to vote on Paterson’s suspension. Paterson resigns.

Nov. 30, 2021: British media begin reporting allegations that government officials attended parties in government offices during November and December 2020 in violation of COVID-19 lockdown rules. The scandal grows over the coming weeks, ultimately including reports of more than a dozen parties. Johnson maintains that there were no parties and no rules were broken, but opposition leaders criticize the government for breaking the law as people across the country made sacrifices to combat the pandemic.

Dec. 8, 2021: Johnson authorizes investigation into the scandal, dubbed “Partygate.” Pressure initially builds for a leadership challenge, but fizzles.

Jan. 2022: Johnson’s longtime aide, Munira Mirza, quits Downing Street. Three other top aides resign soon after.

March 23, 2022: The government announces a mid-year spending plan that’s criticized for doing too little to help people struggling with the soaring cost of living. Treasury chief Rishi Sunak refuses to delay a planned income tax increase or impose a windfall profits tax on oil and gas companies benefiting from rising energy prices.

April 9, 2022: Johnson meets Ukrainian President Volodymyr Zelenskyy in Kyiv, pledging a new package of military and economic support. The move helps bolster Johnson and his supporters, who argue that the government should not focus on domestic political squabbles.

April 12, 2022: Johnson is fined 50 pounds ($63) for attending one of the lockdown parties. Opposition parties characterize him as the first U.K. prime minister in history who has been shown to have broken the law while in office. Johnson apologizes but insists he didn’t know he was breaking the rules.

May 22, 2022: Findings of the “Partygate” investigation are published, detailing 16 gatherings at Johnson’s home and office and other government offices between May 2020 and April 2021. The report details instances of excessive drinking among some of Johnson’s staff, at a time when millions of people were unable to see friends and family.

May 26, 2022: The government reverses course on its tax decision on oil and gas companies and announces plans for a 25% windfall profits levy.

June 6, 2022: Johnson wins a vote of no confidence, with Conservative lawmakers voting by 211 to 148 to back him. But the scale of the revolt — some 41% voted against him — shakes his grip on power.

June 15, 2022: Christopher Geidt quits as ethics adviser to Johnson, accusing the Conservative government of planning to flout conduct rules.

June 24, 2022: Johnson’s Conservatives lose two former strongholds to opposition parties in special elections.

June 29, 2022: Parliament’s cross-party Privileges Committee issues a call for evidence for a probe into whether Johnson misled Parliament over lockdown parties.

June 30, 2022: Chris Pincher resigns as the Conservative deputy chief whip after allegedly assaulting two fellow guests at a private members’ club in London. Previous sexual misconduct allegations emerge about Pincher. Questions swirl about whether Johnson knew about the claims when Pincher was given the job.

July 5, 2022: Johnson apologizes for his handling of the Pincher scandal and says he had forgotten about being told of the allegations. Two of Johnson’s most senior Cabinet ministers, Treasury chief Rishi Sunak and Health Secretary Sajid Javid, quit the government.

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OPEC secretary-general has died, Nigerian officials say https://federalnewsnetwork.com/world-news/2022/07/opec-secretary-general-is-dead-nigerian-officials-announce/ https://federalnewsnetwork.com/world-news/2022/07/opec-secretary-general-is-dead-nigerian-officials-announce/#respond Wed, 06 Jul 2022 09:11:55 +0000 https://federalnewsnetwork.com/?p=4136781 ABUJA, Nigeria (AP) — The Secretary-General of the Organization of Petroleum Exporting Countries has died, Nigerian authorities announced Wednesday, just one day after he’d met with Nigeria’s president in the capital, Abuja, and defended the energy industry at an oil conference.

Mohammad Barkindo, 63, died late Tuesday in Abuja, a spokesman for Nigeria’s petroleum ministry told The Associated Press. The reason for his death was not immediately known. The Vienna-based oil cartel, known as OPEC, did not immediately comment.

His death came as a surprise to industry insiders. His second term as head of OPEC was set to end in three weeks on July 31. He’d held the post for six years since 2016.

Barkindo’s death was described in a tweet by the managing director of the Nigerian National Petroleum Company, Mele Kyari, as “a great loss to his immediate family, the NNPC, our country Nigeria, the OPEC and the global energy community.”

Barkindo led the crude oil bloc through some of its most turbulent times in recent memory, including during the COVID-19 pandemic when oil prices plummeted due to declining demand. He helped guide the group, working to keep the positions of its members unified.

OPEC’s 13 member-states have 1.24 billion proven crude oil reserves among them, or 80% of the world’s share. Of the world’s total crude oil production, OPEC producers’ share is just under 38%.

His role representing OPEC took on even greater significance in past years amid a global effort to tackle climate change. Barkindo used his platform to advocate in favor of a bigger role for the energy industry in conversations about the energy transition, positioning himself firmly on the side of oil producers who say more investments in oil and gas are needed until the world is able to run on alternative forms of energy.

“Our industry is now facing huge challenges along multiple fronts and these threaten our investment potential now and in the longer term. To put it bluntly, the oil and gas industry is under siege,” he said shortly before his death at an energy conference in Nigeria.

Scientists and authors of U.N.-backed studies say the world needs to cut by more than half its production of coal, oil and gas in the coming decade to maintain a chance of keeping global warming from reaching dangerous levels. To do this, they say investments in oil and gas must stop and be rerouted to cleaner forms of energy.

Barkindo’s legacy, however, is perhaps most tied to his final years steering OPEC as the group entered into an agreement known as OPEC+ with major non-OPEC producer, Russia. That agreement, spearheaded by Saudi Arabia and Russia, helped steady oil markets as the world emerges from the pandemic, though it has come under criticism amid current high oil prices and as the U.S. and other Western nations try to squeeze Russia’s economy over the war in Ukrain e. Brent crude has soared past $100 a barrel this year.

OPEC member-states accounted for around 48% of all world crude oil exports last year. Saudi Arabia is by far the biggest exporter of crude within OPEC, with 6.23 million barrels per day of crude exports last year. Non-OPEC producer, Russia, exported 4.5 million barrels of crude last year.

Born in Nigeria’s eastern city of Yola, Barkindo began his career with the Nigerian Mining Corporation in 1982 before holding multiple roles over more than two decades at the Nigerian National Petroleum Corporation, including as its CEO. He also served as deputy managing director of Nigerian Liquified Natural Gas.

He also led Nigeria’s technical delegation to the U.N. climate change negotiations for years and served several terms as vice president of the United Nations Climate Change Conference of the Parties.

He attended university in Nigeria before earning a post-graduate degree in petroleum economics from Oxford University in the U.K. and an MBA from Washington University in the U.S.

In his meeting in Abuja on Tuesday, Nigerian President Muhammadu Buhari told Barkindo: “Welcome back home!” according to an OPEC readout of the meeting. Nigeria has been a member of OPEC for 50 years. Buhari also congratulated him on his tenure at OPEC.

Barkindo was set to join the Atlantic Council as a distinguished fellow next month, after finishing his term at OPEC. He was a frequent speaker at the Atlantic Council’s global energy forum.

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Batrawy reported from Dubai, United Arab Emirates.

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EU parliament set for knife-edge vote on green investments https://federalnewsnetwork.com/world-news/2022/07/eu-parliament-set-for-cliff-edge-vote-on-green-investments/ https://federalnewsnetwork.com/world-news/2022/07/eu-parliament-set-for-cliff-edge-vote-on-green-investments/#respond Wed, 06 Jul 2022 08:40:45 +0000 https://federalnewsnetwork.com/?p=4136790 BRUSSELS (AP) — European lawmakers will decide Wednesday whether fossil gas and nuclear energies can be included in the EU’s list of sustainable activities, in a cliff-edge vote targeting climate change but heavily influenced by the war in Ukraine.

The executive Commission of the 27-nation bloc wants nuclear energy and natural gas in its green finance plans for building a climate-friendly future, believing that will speed the phasing-out of more polluting fuels like oil and coal.

But this has divided the 27 member countries and even the parliament’s political groups, while environmentalists claim it amounts to “greenwashing.”

Protests that had started on Tuesday continued Wednesday outside the EU legislature in Strasbourg, France, as lawmakers debated the issue. A vote was planned around midday (1000GMT). Two parliamentary committees objected to the measure last month, but legislators said Wednesday’s vote was too close to call.

If an absolute majority — or 353 — of the EU lawmakers vote against the Commission’s regulation on the so-called taxonomy, it will need to be withdrawn or amended.

The green labeling system from the European Commission, the EU’s executive arm, defines what qualifies as an investment in sustainable energy. Under certain conditions, gas and nuclear energy could be part of the mix, making it easier for private investors to inject money into both.

One argument for rejecting the proposal is that it would boost Russian gas sales at a time when it is invading neighboring Ukraine, but the Commission said it had received a letter from the Ukrainian government backing its stance.

European Commissioner Mairead McGuinness quoted from the letter from Ukraine’s energy minister Tuesday: “I strongly believe that the inclusion of gas and nuclear in the taxonomy is an important element of the energy security in Europe, especially with a view to replacing Russian gas.”

“I don’t think we should second-guess this letter,” McGuinness said.

The commission believes that including nuclear and gas as transitional energy sources that would be phased out later does not amount to a free pass, as conditions would still have to be met.

With the EU aiming to reach climate neutrality by 2050 and to cut greenhouse gas emissions by at least 55% by 2030, it says the classification system is crucial to direct investments into sustainable energy. It estimates that about 350 billion euros of investment per year will be needed to meet the 2030 targets.

The 27-nation bloc is trying to wean itself off its dependency on Russian fossil fuels, and member countries have already agreed to ban 90% of Russian oil by year-end. Before the war in Ukraine, it relied on Russia for 25% of its oil and 40% of its natural gas.

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EU chief warns of danger of complete cut-off of Russian gas https://federalnewsnetwork.com/world-news/2022/07/eu-chief-warns-of-danger-of-complete-cut-off-of-russian-gas/ https://federalnewsnetwork.com/world-news/2022/07/eu-chief-warns-of-danger-of-complete-cut-off-of-russian-gas/#respond Wed, 06 Jul 2022 08:36:46 +0000 https://federalnewsnetwork.com/?p=4136788 BRUSSELS (AP) — European Commission chief Ursula von der Leyen said Wednesday that the 27-nation European Union needs to make emergency plans to prepare for a complete cut-off of Russian gas in the wake of the Kremlin’s war in Ukraine.

The EU has already imposed sanctions on Russia, including on some energy supplies, and is gearing away from Kremlin-controlled deliveries. But the head of the EU’s executive branch said the bloc needed to be ready for shock disruptions coming from Moscow.

“We also need to prepare now for further disruption of gas supply and even a complete cut-off of Russian gas supply,” von der Leyen told the EU legislature in Strasbourg, France.

She said a dozen members have already been hit by reductions or full cuts in gas supplies as the political standoff with Moscow over the Ukraine invasion intensifies.

“It is obvious: Putin continues to use energy as a weapon. This is why the Commission is working on a European emergency plan,” she said. “We need to make sure that in case of full disruption, the gas flows towards where it is most needed. We have to provide for European solidarity.”

European Union countries already agreed last month that all natural gas storage in the 27-nation bloc should be topped up to at least 80% capacity for next winter to avoid shortages during the cold season. The new regulation also says underground gas storage on EU soil will need to be filled to 90% capacity before the 2023-24 winter.

The war in Ukraine has prompted the 27-nation bloc to rethink its energy policies and sever ties with Russian fossil fuels. Member countries have agreed to ban 90% of Russian oil by year-end in addition to a ban on imports of Russian coal that will start in August.

The EU has not included gas — a fuel used to power factories and generate electricity — in its own sanctions for fear of seriously harming the European economy. Before the war in Ukraine, it relied on Russia for 25% of its oil and 40% of its natural gas.

To slash its use of Russian energy, the European Commission has been diversifying suppliers.

“And our efforts are already making a big difference,” von der Leyen said. “Since March, global LNG exports to Europe have risen by 75% compared to 2021. LNG exports from the U.S. to Europe have nearly tripled.”

In the meantime, the average monthly import of Russian pipeline gas is declining by 33% compared with last year, von der Leyen said as she called for a speedy transition toward renewable sources of energy.

“Some say, in the new security environment after Russia’s aggression, we have to slow down the green transition. This transition would come at the ‘the cost of basic security’, they say. The opposite is true. If we all do nothing but compete about limited fossil fuels, the prices will further explode and fill Putin’s war chest,” she said. “Renewables are home-grown. They give us independence from Russian fossil fuels. They are more cost-efficient. And they are cleaner.”

The EU Council agreed last month to raise the share of renewables in the bloc’s energy mix to at least 40% by 2030 — up from the previous target of 32%. In addition, a 9% energy consumption reduction target for 2030 will become binding on all EU member states for the first time.

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5 killed as Russia pounds eastern Ukraine region of Donetsk https://federalnewsnetwork.com/world-news/2022/07/5-killed-as-russia-pounds-eastern-ukraine-region-of-donetsk/ https://federalnewsnetwork.com/world-news/2022/07/5-killed-as-russia-pounds-eastern-ukraine-region-of-donetsk/#respond Wed, 06 Jul 2022 08:19:13 +0000 https://federalnewsnetwork.com/?p=4136825 KRAMATORSK, Ukraine (AP) — A Ukrainian official says Russian shelling has killed five civilians over the past 24 hours and wounded 21 more in the eastern Donetsk province, where Russia has stepped up its offensive in recent days.

Donetsk governor Pavlo Kyrylenko said in a Telegram post on Wednesday morning that two people were killed in Avdiivka, one in Sloviansk, one in Krasnohorivka, and one in Kurakhove.

“Every crime will be punished,” he wrote.

Kyrylenko on Tuesday urged the province’s more than 350,000 residents to flee, saying that getting people out of Donetsk is necessary to save lives and enable the Ukrainian army better to defend towns from the Russian advance.

Donetsk is part of the Donbas, a mostly Russian-speaking industrial area where Ukraine’s most experienced soldiers are concentrated.

Pro-Russian separatists have fought Ukrainian forces and controlled much of the Donbas for eight years. Before the invasion this year, Russian President Vladimir Putin recognized the independence of the two self-proclaimed separatist republics in the region. He also sought to portray the tactics of Ukrainian forces and the government as akin to Nazi Germany’s, claims for which no evidence has emerged.

Russian forces also hit Kharkiv, Ukraine’s second largest city further to the north, with missile strikes overnight, the governor of Kharkiv region Oleh Syniehubov said on Telegram on Wednesday.

Three districts of the city were targeted, Syniehubov said, and a university building was destroyed, as well as one administrative building. Three people, including a toddler, sustained injuries, according to the governor.

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Follow AP’s coverage of the Russia-Ukraine war at https://apnews.com/hub/russia-ukraine

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Economists: Current measures won’t meet German energy goals https://federalnewsnetwork.com/business-news/2022/07/economists-current-measures-wont-meet-german-energy-goals/ https://federalnewsnetwork.com/business-news/2022/07/economists-current-measures-wont-meet-german-energy-goals/#respond Wed, 06 Jul 2022 08:01:28 +0000 https://federalnewsnetwork.com/?p=4136816 BERLIN (AP) — Germany won’t achieve its targets for phasing out fossil fuels and ramping up renewable energy by 2030 with the measures currently in place, according to a think tank report released Wednesday.

The respected German Institute for Economic Research, or DIW, examined the goals that Chancellor Olaf Scholz’s government set itself since coming to power last year following an election campaign in which combating climate change was one of the biggest issues.

Their economists calculated that the current roll-out of electric vehicles, solar and wind energy won’t be fast enough to reach those targets.

The government’s goal of putting 15 million electric cars on the road by 2030 would require 130,000 such vehicles to be registered every month — up from 30,000 at present. The speed at which solar panels are installed would need to triple compared with the rate seen in the past year, while the erection of wind turbines needs to quadruple, the report found.

“If the government doesn’t want to fall behind on achieving its goals then it needs to implement concrete and far-reaching steps soon,” said Wolf-Peter Schill, an energy economist at the Berlin-based DIW.

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Israeli army kills Palestinian in West Bank arrest raid https://federalnewsnetwork.com/business-news/2022/07/israeli-army-kills-palestinian-in-west-bank-arrest-raid/ https://federalnewsnetwork.com/business-news/2022/07/israeli-army-kills-palestinian-in-west-bank-arrest-raid/#respond Wed, 06 Jul 2022 07:59:11 +0000 https://federalnewsnetwork.com/?p=4136819 JERUSALEM (AP) — The Israeli military said it shot and killed a Palestinian man during an arrest raid near the city of Jenin in the occupied West Bank on Wednesday.

The army said that during one of a series of raids carried out across the Palestinian territory, its troops fired at a suspect who attempted to escape arrest in the village of Jaba.

“The force gave medical treatment to the suspect, but later pronounced him dead,” the army said. It said the incident was under investigation.

The statement said the army was there to arrest suspects involved in terror operations without elaborating.

The Palestinian Health Ministry issued a statement saying it received confirmation of the death of Rafiq Riyad Ghannam from the agency that coordinates affairs with Israel. Wafa, the official Palestinian news agency, said the 20-year-old man was severely wounded during clashes in the village.

Ghannam was the second Palestinian from Jaba killed in recent days. On Sunday the Palestinian Foreign Ministry said 19-year-old Kamel Abdallah Alwaneh died a day after he was shot by Israeli troops. The army said soldiers came under attack “during routine security activity near the town of Jaba” and shot a man suspected of throwing a firebomb.

The Israeli military has carried out near-daily raids in Palestinian towns and villages in the West Bank following a series of deadly attacks by Palestinians earlier this year that killed 19 Israelis, with several of the attackers coming from the Jenin area.

Dozens of Palestinians have been killed in these Israeli army raids. Most of the dead were alleged to have opened fire on Israeli forces or hurled stones or firebombs at them. The dead also include at least two apparent passersby.

Israel captured the West Bank in the 1967 Mideast war and the Palestinians seek it as the heartland of a future state. Israel considers the West Bank as the biblical and historical heartland of the Jewish people.

Almost half a million Israeli settlers live in dozens of West Bank settlements scattered across the territory, alongside around 3 million Palestinians who live under Israeli military rule.

The Palestinians and much of the international community consider Israel’s West Bank settlements a violation of international law and an obstacle to a peaceful resolution of the decades-long conflict.

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UK’s Johnson vows to stay in office after top ministers quit https://federalnewsnetwork.com/world-news/2022/07/uks-johnson-vows-to-stay-in-office-after-top-ministers-quit/ https://federalnewsnetwork.com/world-news/2022/07/uks-johnson-vows-to-stay-in-office-after-top-ministers-quit/#respond Wed, 06 Jul 2022 07:48:10 +0000 https://federalnewsnetwork.com/?p=4136794 LONDON (AP) — A defiant British Prime Minister Boris Johnson was battling to stay in power on Wednesday after his government was rocked by the resignation of two top ministers, who said they could no longer serve under his scandal-tarred leadership.

His first challenge is getting through Wednesday, where he faces tough questions at the weekly Prime Minister’s Questions session in Parliament, and a long-scheduled grilling by a committee of senior lawmakers.

Months of discontent over Johnson’s judgment and ethics within the governing Conservative Party erupted with the resignations of Treasury chief Rishi Sunak and Health Secretary Sajid Javid within minutes of each other on Tuesday evening. In a scathing resignation letter, Sunak said “the public rightly expect government to be conducted properly, competently and seriously. … I believe these standards are worth fighting for and that is why I am resigning.”

Javid said the party needed “humility, grip and a new direction” but “it is clear this situation will not change under your leadership.”

Johnson quickly replaced the two ministers, promoting Nadhim Zahawi from the education department to the Treasury and installing his chief of staff, Steve Barclay, as health secretary.

But a string of resignations late Tuesday from more junior ministers — from both the liberal and right-wing branches of the Conservative Party — showed that danger to Johnson was far from over.

In the past few months, Johnson has been fined by police and slammed by an investigator’s report over lockdown-breaching parties in government during the pandemic; survived a no-confidence vote by his party in which 41% of Conservative lawmakers voted to oust him; and has seen formerly loyal lieutenants urge him to resign.

Through it all, he has vowed to carry on governing — even suggesting he wanted to stay in office until the 2030s.

The final straw for Sunak and Javid was the prime minister’s shifting explanations about his handling of a sexual misconduct scandal.

The latest scandal began last week when lawmaker Chris Pincher resigned as Conservative deputy chief whip amid complaints that he groped two men at a private club. That triggered a series of reports about past allegations leveled against Pincher and questions about why Johnson promoted him to a senior job enforcing party discipline.

Johnson’s office initially said he wasn’t aware of the previous accusations when he promoted Pincher in February. By Monday, a spokesman said Johnson knew of allegations that were “either resolved or did not progress to a formal complaint.”

When a former top civil servant in the Foreign Office said Johnson had been briefed about an allegation against Pincher in 2019, Johnson’s office changed its story again, saying the prime minister had forgotten that Pincher was the subject of an official complaint.

It was all too much for ministers who have been sent onto radio and TV to defend the government’s position, only to find the position changing by the hour.

Bim Afolami, who quit as Conservative Party vice-chairman on Tuesday, said he had been willing to give Johnson the benefit of the doubt, “but I think that in the last few weeks we’ve seen that things haven’t improved. They’ve got a lot worse.”

“I think the behavior of Downing Street over the Chris Pincher affair was really appalling. And I, personally, just couldn’t think I could defend that sort of behavior any longer,” he told the BBC.

Johnson’s opponents in the party hope more Cabinet ministers will follow Sunak and Javid, though for now other top officials — including Foreign Secretary Liz Truss, Defense Secretary Ben Wallace and Home Secretary Priti Patel — are staying put.

Opponents are also trying to force another no-confidence vote over the prime minister. The existing rules require 12 months between such votes, but the rules are made by a powerful party committee — and elections for its executive are due in the next few weeks.

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Follow all of AP’s coverage of Prime Minister Boris Johnson at https://apnews.com/hub/boris-johnson

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The next frontier for drones: letting them fly out of sight https://federalnewsnetwork.com/business-news/2022/07/the-next-frontier-for-drones-letting-them-fly-out-of-sight/ https://federalnewsnetwork.com/business-news/2022/07/the-next-frontier-for-drones-letting-them-fly-out-of-sight/#respond Wed, 06 Jul 2022 07:01:38 +0000 https://federalnewsnetwork.com/?p=4136732 REMINGTON, Va. (AP) — For years, there’s been a cardinal rule for flying civilian drones: Keep them within your line of sight. Not just because it’s a good idea — it’s also the law.

But some drones have recently gotten permission to soar out of their pilots’ sight. They can now inspect high-voltage power lines across the forested Great Dismal Swamp in Virginia. They’re tracking endangered sea turtles off Florida’s coast and monitoring seaports in the Netherlands and railroads from New Jersey to the rural West.

Aviation authorities in the U.S. and elsewhere are preparing to relax some of the safeguards they imposed to regulate a boom in off-the-shelf consumer drones over the past decade. Businesses want simpler rules that could open your neighborhood’s skies to new commercial applications of these low-flying machines, although privacy advocates and some airplane and balloon pilots remain wary.

For now, a small but growing group of power companies, railways and delivery services like Amazon are leading the way with special permission to fly drones “beyond visual line of sight.” As of early July, the U.S. Federal Aviation Administration had approved 230 such waivers — one of them to Virginia-based Dominion Energy for inspecting its network of power plants and transmission lines.

“This is the first step of what everybody’s expecting with drones,” said Adam Lee, Dominion’s chief security officer. “The first time in our nation’s history where we’ve now moved out into what I think everyone’s expecting is coming.”

That expectation — of small drones with little human oversight delivering packages, assessing home insurance claims or buzzing around on nighttime security patrols — has driven the FAA’s work this year to craft new safety guidelines meant to further integrate drones into the national airspace.

The FAA said it is still reviewing how it will roll out routine operations enabling some drones to fly beyond visual line of sight, although it it has signaled that the permissions will be reserved for commercial applications, not hobbyists.

“Our ultimate goal is you shouldn’t need a waiver for this process at all. It becomes an accepted practice,” said Adam Bry, CEO of California drone-maker Skydio, which is supplying its drones to Dominion, railroad company BNSF and other customers with permission to fly beyond line of sight.

“The more autonomous the drones become, the more they can just be instantly available anywhere they could possibly be useful,” Bry said.

Part of that involves deciding how much to trust that drones won’t crash into people or other aircraft when their operators aren’t looking. Other new rules will require drones to carry remote identification — like an electronic license plate — to track their whereabouts. And in the aftermath of Russia’s war in Ukraine — where both sides have used small consumer drones to target attacks — the White House has been pushing a parallel effort to counter the potential malicious use of drones in the U.S.

At a gas-fired plant in Remington, Virginia, which helps power some of Washington’s suburbs, a reporter with The Associated Press watched in June as Dominion Energy drone pilots briefly lost visual line of sight of their inspection drone as it flew around the backside of a large fuel tank and the top of a smoke stack.

That wouldn’t have been legally possible without Dominion’s recently approved FAA waiver. And it wouldn’t have been technically possible without advancements in collision-avoidance technology that are enabling drones to fly closer to buildings.

Previously, “you would have to erect scaffolding or have people go in with a bucket truck,” said Nate Robie, who directs the drone program at Dominion. “Now you can go in on a 20-minute flight.”

Not everyone is enthused about the pending rules. Pilots of hot air balloons and other lightweight aircraft warn that crashes will follow if the FAA allows largely autonomous delivery drones the right of way at low altitudes.

“These drones cannot see where they are flying and are blind to us,” said a June call to action from the Balloon Federation of America.

Broader concerns come from civil liberties groups that say protecting people’s privacy should be a bigger priority.

“There is a greater chance that you’ll have drones flying over your house or your backyard as these beyond-visual-line-of-sight drone operations increase,” said Jeramie Scott, a senior counsel at the Electronic Privacy Information Center who sat on the FAA’s advisory group working to craft new drone rules. “It’ll be much harder to know who to complain to.”

EPIC and other groups dissented from the advisory group’s early recommendations and are calling for stronger privacy and transparency requirements — such as an app that could help people identify the drones above them and what data they are collecting.

“If you want to fly beyond visual line of sight, especially if you are commercial, the public has a right to know what you’re flying, what data you are collecting,” said Andrés Arrieta, director of consumer privacy engineering at the Electronic Frontier Foundation. “It seems like such a low bar.”

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O’Brien reported from Providence, Rhode Island.

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Asian benchmarks mostly lower after tepid Wall St session https://federalnewsnetwork.com/government-news/2022/07/asian-benchmarks-mostly-lower-after-tepid-wall-st-session/ https://federalnewsnetwork.com/government-news/2022/07/asian-benchmarks-mostly-lower-after-tepid-wall-st-session/#respond Wed, 06 Jul 2022 06:33:07 +0000 https://federalnewsnetwork.com/?p=4136708 TOKYO (AP) — Asian shares were mostly lower Wednesday after tepid trading on Wall Street amid worries about a global recession.

Major benchmarks fell across Asia. Oil prices recouped some lost ground. Analysts said markets were focusing on a variety of risks, including inflation, oil prices, moves by the U.S. Federal Reserve and other central banks on interest rates, political developments in Britain and worries over COVID-19.

But the basic mood appeared to be wait-and-see.

Wall Street had a weak opening after markets were closed Monday for the Independence Day holiday. The price of U.S. crude oil sank $8.93, eventually settling below $100 a barrel for the first time since early May.

On Wednesday, U.S. benchmark crude oil was up 42 cents at $99.92 per barrel. Brent crude, the international standard, gained 97 cents to $103.74 per barrel.

Market volatility reflects growing worries among investors that economies are slowing under the weight of surging inflation and sharply higher interest rates, pressures that could tip them into recession.

“Although China has had another wave of COVID, nothing new or market-related seemed to justify the severity of the move,” said Stephen Innes, managing partner at SPI Asset Management about the oil prices.

Japan’s benchmark Nikkei 225 lost 1.1% in afternoon trading to 26,134.71. Australia’s S&P/ASX 200 slipped 0.5% to 6,594.50. South Korea’s Kospi shed 1.9% to 2,297.02. Hong Kong’s Hang Seng dropped 2.4% to 21,333.26 while the Shanghai Composite slid 1.9% to 3,337.88.

Japan has parliamentary elections this coming weekend, but the expected outcome is for more stability. Prime Minister Fumio Kishida appears headed to victory amid a heavily divided and discredited opposition, polls show, despite the ruling party’s stumbling over curbing coronavirus infections, the economy and various scandals.

Stock indexes ended with meager gains on Wall Street with a late-afternoon rally led by technology companies.

The S&P 500 rose 0.2% to 3,831.39. The Nasdaq climbed 1.7% to 3,831.39. The Dow Jones Industrial Average remained in the red, losing 0.4% to 30,967.82. Small-company stocks bounced back after a downbeat start. The Russell 2000 gained 0.8% to 1,741.33.

In Britain, the FTSE 100 dropped 2.9% after two of British Prime Minister Boris Johnson’s most senior Cabinet ministers quit, saying they had lost confidence in Johnson’s leadership amid shifting explanations about his handling of a sexual misconduct scandal

Energy, industrials, health care and most of the 11 sectors in the S&P 500 ended in the red, despite the late rally in technology stocks, communication firms and retailers and other companies that rely on direct consumer spending.

Stocks have not bounced back from a slump that pulled the S&P 500 into a bear market last month, meaning an extended decline of 20% or more from a recent peak. The market’s performance in the first half of 2022 was the worst since the first six months of 1970.

Inflation has been squeezing businesses and consumers, tightening its grip after Russia invaded Ukraine in February. The invasion sent oil prices higher globally and sent gasoline prices in the U.S. to record highs. Consumers struggling with higher prices on everything from food to clothing are cutting back on spending.

Lockdowns in China from rising COVID-19 cases have also made supply chain problems worse.

Wall Street has been closely watching the latest economic updates for more clues on how inflation is impacting the economy and whether that could shift the Fed’s position on rate hikes. Wall Street will get a closer look at the employment market on Friday when the the government releases employment data for June.

Investors are also looking ahead to the next round of corporate earnings. Several big companies recently warned that their financial results are being squeezed by inflation, including spice and seasonings maker McCormick.

In currency trading, the U.S. dollar edged down to 135.12 Japanese yen from 135.84 yen. The euro cost $1.0260, inching down from $1.0266.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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Parade shooting suspect bought 5 weapons despite threats https://federalnewsnetwork.com/business-news/2022/07/july-4-parade-shooting-leaves-6-dead-30-hurt-man-detained/ https://federalnewsnetwork.com/business-news/2022/07/july-4-parade-shooting-leaves-6-dead-30-hurt-man-detained/#respond Wed, 06 Jul 2022 05:42:34 +0000 https://federalnewsnetwork.com/?p=4134908 HIGHLAND PARK, Ill. (AP) — A man charged Tuesday with seven counts of murder after firing off more than 70 rounds at an Independence Day parade in suburban Chicago legally bought five weapons, including the high-powered rifle used in the shooting, despite authorities being called to his home twice in 2019 for threats of violence and suicide, police said.

Lake County State’s Attorney Eric Rinehart said the suspect, if convicted of the first-degree murder charges, would receive a mandatory life sentence without the possibility of parole. He promised that dozens more charges would be sought.

A spokesman for the Lake County Major Crime Task Force said the suspected shooter, who was arrested late Monday, used a rifle “similar to an AR-15″ to spray more than 70 rounds from atop a commercial building into a crowd that had gathered for the parade in Highland Park, an affluent community of about 30,000 on the Lake Michigan shore.

A seventh victim died of their injuries Tuesday. More than three dozen other people were wounded in the attack, which Task force spokesman Christopher Covelli said the suspect had planned for several weeks.

The assault happened less than three years after police went to the suspect’s home following a call from a family member who said he was threatening “to kill everyone” there. Covelli said police confiscated 16 knives, a dagger and a sword, but said there was no sign he had any guns at the time, in September 2019.

Police in April 2019 also responded to a reported suicide attempt by the suspect, Covelli said.

The suspect legally purchased the rifle used in the attack in Illinois within the past year, Covelli said. In all, police said, he purchased five firearms, which were recovered by officers at his father’s home.

The revelation about his gun purchases is just the latest example of y oung men who were able to obtain guns and carry out massacres in recent months despite glaring warning signs about their mental health and inclination to violence.

Illinois state police, who issue gun owners’ licenses, said the gunman applied for a license in December 2019, when he was 19. His father sponsored his application.

At the time “there was insufficient basis to establish a clear and present danger” and deny the application, state police said in a statement.

Investigators who have interrogated the suspect and reviewed his social media posts have not determined a motive or found any indication that he targeted victims by race, religion or other protected status, Covelli said.

Earlier in the day, FBI agents peeked into trash cans and under picnic blankets as they searched for more evidence at the scene. The shots were initially mistaken for fireworks before hundreds of revelers fled in terror.

A day later, baby strollers, lawn chairs and other items left behind by panicked parade goers remained inside a wide police perimeter. Outside the police tape, some residents drove up to collect blankets and chairs they abandoned.

David Shapiro, 47, said the gunfire quickly turned the parade into “chaos.”

“People didn’t know right away where the gunfire was coming from, whether the gunman was in front or behind you chasing you,” he said Tuesday as he retrieved a stroller and lawn chairs.

The gunman initially evaded capture by dressing as a woman and blending into the fleeing crowd, Covelli said.

The shooting was just the latest to shatter the rituals of American life. Schools, churches, grocery stores and now community parades have all become killing grounds in recent months. This time, the bloodshed came as the nation tried to celebrate its founding and the bonds that still hold it together.

A police officer pulled over 21-year-old Robert E. Crimo III north of the shooting scene several hours after police released his photo and warned that he was likely armed and dangerous, Highland Park Police Chief Lou Jogmen said.

His father, Bob, a longtime deli owner, ran for mayor in 2019. The candidate who won that race, current Highland Park Mayor Nancy Rotering, said she knew Crimo as a boy in Cub Scouts.

“And it’s one of those things where you step back and you say, ‘What happened?” Rotering told NBC’s “Today” show. “How did somebody become this angry, this hateful, to then take it out on innocent people who literally were just having a family day out?”

Crimo’s attorney, Thomas A. Durkin, a prominent Chicago-based lawyer, said he intends to enter a not guilty plea to all charges.

Asked about his client’s emotional state, Durkin said he has spoken to Crimo only once — for 10 minutes by phone. He declined to comment further.

Steve Greenberg, the lawyer for the parents, told The Associated Press Tuesday evening the parents aren’t concerned about being charged with anything related to their son’s case.

“There is zero chance they will be charged with anything criminal,” he said. “They didn’t do anything wrong. They are as stunned and shocked as anyone.”

The shooting occurred at a spot on the parade route where many residents had staked out prime viewing points early in the day.

Among them was Nicolas Toledo, who was visiting his family in Illinois from Mexico, and Jacki Sundheim, a lifelong congregant and staff member at nearby North Shore Congregation Israel. The Lake County coroner released the names of four other victims.

Nine people, ranging from 14 to 70, remained hospitalized Tuesday, hospital officials said.

Since the start of the year, the U.S. has seen 15 shootings where four or more people were killed, including the one in Highland Park, according to The Associated Press/USA TODAY/Northeastern University mass killing database.

Scores of smaller-scale shootings in nearby Chicago also left eight people dead and 60 others wounded over the July 4 weekend.

In 2013, Highland Park officials approved a ban on semi-automatic weapons and large-capacity ammunition magazines. A local doctor and the Illinois State Rifle Association quickly challenged the liberal suburb’s stance. The legal fight ended at the U.S. Supreme Court’s doorstep in 2015 when justices declined to hear the case and let the suburb’s restrictions remain in place.

Under Illinois law, gun purchases can be denied to people convicted of felonies, addicted to narcotics or those who are termed “mental defectives” and capable of harming themselves or others. That might have stopped a suicidal Crimo from getting a weapon.

But under the law, just who is a “mental defective” must be decided by “a court, board, commission or other legal authority.”

The state has a so-called red flag law designed to stop dangerous people before they kill, but it requires family members, relatives, roommates or police to ask a judge to order guns seized.

Crimo, who goes by the name Bobby, was an aspiring rapper with the stage name Awake the Rapper, posting on social media dozens videos and songs, some ominous and violent.

In one animated video since taken down by YouTube, Crimo raps about armies “walking in darkness” as a drawing appears of a man pointing a rifle, a body on the ground and another figure with hands up in the distance.

Federal agents were reviewing Crimo’s online profiles, and a preliminary examination of his internet history indicated that he had researched mass killings and had downloaded multiple photos depicting violent acts, including a beheading, a law enforcement official said.

The official could not discuss details of the investigation publicly and spoke to The Associated Press on condition of anonymity.

Vice President Kamala Harris, who had been in Chicago to address the National Education Association’s annual meeting Tuesday, visited the site of the shooting to offer condolences to first responders and local officials.

“The whole nation should understand and have a level of empathy, to understand that this can happen anywhere, in any peace loving community,” Harris said in brief comments to reporters in Highland Park. “And we should stand together and speak out about why it’s got to stop.”

Shapiro, the Highland Park resident who fled the parade with his family, said his 4-year-old son woke up screaming later that night.

“He is too young to understand what happened,” Shapiro said. “But he knows something bad happened.”

___

Foody reported from Chicago. Groves reported from Sioux Falls, South Dakota. Associated Press writers Don Babwin in Chicago, Mike Householder in Highland Park, Bernard Condon and Mike Balsamo in New York, Aamer Madhani in Washington, Jim Mustian in New Orleans, Barbara Ortutay in San Francisco and researcher Rhonda Shafner also contributed.

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This story has been corrected to show Shapiro’s son was 4.

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Alvarez makes big throw, hits 25th homer, Astros top Royals https://federalnewsnetwork.com/sports-news/2022/07/alvarez-makes-big-throw-hits-25th-homer-astros-top-royals/ https://federalnewsnetwork.com/sports-news/2022/07/alvarez-makes-big-throw-hits-25th-homer-astros-top-royals/#respond Wed, 06 Jul 2022 04:31:52 +0000 https://federalnewsnetwork.com/?p=4136483 HOUSTON (AP) — Long established as a star at the plate, Yordan Alvarez has been showing flashes of brilliance on defense this season, too.

Alvarez threw out Hunter Dozier at the plate from just short of the warning track in left field to preserve a two-run, eighth-inning lead, then hit his 25th homer as the Houston Astros beat the Kansas City Royals 9-7 on Tuesday night.

The Astros also got homers from Jeremy Peña, Alex Bregman and Aledmys Díaz as they extended their winning streak to a major league-best eight games.

Houston trailed 4-3 entering the fifth inning before Peña homered off Zack Greinke (2-5) to tie it. Bregman’s two-run shot later in the fifth put the Astros ahead 6-4.

The eighth belonged to Alvarez.

Bryan Abreu’s bases-loaded walk of Michael A. Taylor got the Royals within two. Phil Maton took over and Nicky Lopez hit a deep flyball that Alvarez caught and fired on the fly to catcher Martin Maldonado, who tagged out Dozier for an inning-ending double play.

“When the ball was hit, I just focused and thought I’d have a chance at home if I made a pretty good throw,” Alvarez said through a translator. “That was where my focus was, just to make a good, strong throw there.”

After playing primarily at designated hitter in his first three major league seasons, Alvarez has been splitting time between DH and left field this year.

“It all goes back to work,” manager Dusty Baker said. “And he’s worked on it. He’s worked on his defense a lot.”

With two outs in the bottom of the eighth, Alvarez homered to left-center off Jackson Kowar to make it 9-6. Chants of “M-V-P” rained down on the slugger as he rounded the bases.

“It felt exciting that the fan base was calling for that,” he said. “It definitely felt good.”

His 25 homers are tied with Philadelphia’s Kyle Schwarber for second in the majors, four behind the Yankees’ Aaron Judge.

Alvarez was asked if he enjoyed his big defensive play or his homer more.

“I think the thing that is the most fun is today is it’s my mom’s birthday,” he said. “At first, when I threw out the runner, I said: ‘Oh wow.’ Then I hit the home run and I said: ‘Oh wow, (what) a good gift (for her).’”

Luis Garcia (7-5) allowed eight hits and five runs in 6 1/3 innings for his fourth straight win. Rafael Montero allowed a run on a groundout in the ninth before striking out the next two batters for his sixth save.

Greinke tied a season high by allowing 10 hits with six runs in five innings in his first start against Houston since signing with the Royals in the offseason. The veteran spent 2 1/2 seasons with the Astros, going to the World Series in 2019 and last year.

“Stuff felt pretty sharp but I made a lot of mistakes and didn’t really make a lot of quality strikes,” Greinke said. “I think … they had 10 hits or something and at least like eight of them were mistakes.”

The Astros played a video honoring Greinke’s time in Houston while he warmed up and capped it by playing John Anderson’s “Seminole Wind,” which was his warmup music. He received a warm ovation and waved to the crowd from the bullpen.

“Yeah, that was good,” Greinke said. “The Diamondbacks decided to show them hitting some home runs off me and then did a tribute, so it was nicer to do it before the game. Kind of a nice way of doing it.”

MJ Melendez hit a solo homer off Garcia in the second and Bobby Witt Jr. connected off him for a two-run shot in the third. It was the third home run of the series for Melendez, who went deep twice in the series opener on Monday.

Díaz hit a two-run homer in the seventh off Kowar.

TRAINER’S ROOM

Royals: Witt left the game after fouling a ball off his hand in the ninth inning. Manager Mike Matheny said X-rays were negative but his hand was swollen after the game. … LHP Daniel Lynch (left index finger blister) is scheduled to make his first rehabilitation start for Triple-A Omaha Wednesday.

Astros: RHP Lance McCullers Jr., who has been out all season with a forearm injury, threw another live batting practice session Tuesday. He threw about 30 pitches and Baker said he will do that a couple more times before moving to simulated games.

CLIMBING THE CHARTS

Baker tied Walter Alston for ninth all-time among managers with 2,040 career wins.

UP NEXT

Houston’s Cristian Javier (6-3, 2.58 ERA), who has struck out 27 batters combined in his last two starts, opposes Brad Keller (3-9, 4.24) when the four-game series continues Wednesday night.

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More AP MLB: https://apnews.com/hub/mlb and https://twitter.com/AP_Sports

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Asian benchmarks mostly lower after tepid Wall St session https://federalnewsnetwork.com/government-news/2022/07/global-shares-mixed-as-inflation-energy-weigh-on-growth/ https://federalnewsnetwork.com/government-news/2022/07/global-shares-mixed-as-inflation-energy-weigh-on-growth/#respond Wed, 06 Jul 2022 04:29:01 +0000 https://federalnewsnetwork.com/?p=4134893 TOKYO (AP) — Asian shares were mostly lower Wednesday after tepid trading on Wall Street amid worries about a global recession.

Major benchmarks fell across Asia. Oil prices recouped some lost ground after plunging on Monday. Analysts said markets were focusing on a variety of risks, including inflation, oil prices, moves by the U.S. Federal Reserve and other central banks on interest rates, political developments in Britain and worries over COVID-19.

But the basic mood appeared to be wait-and-see.

Wall Street had a weak opening after markets were closed Monday for the Independence Day holiday. The price of U.S. crude oil sank $8.93, eventually settling below $100 a barrel for the first time since early May.

Early Wednesday, U.S. benchmark crude oil was up 60 cents at $100.10 per barrel. Brent crude, the international standard, gained $1.24 to $104.01 per barrel.

Market volatility reflects growing worries among investors that economies are slowing under the weight of surging inflation and sharply higher interest rates, pressures that could tip them into recession.

“Although China has had another wave of COVID, nothing new or market-related seemed to justify the severity of the move,” said Stephen Innes, managing partner at SPI Asset Management about the oil prices.

Japan’s benchmark Nikkei 225 lost 1.3% in morning trading to 26,078.66. Australia’s S&P/ASX 200 slipped 0.6% to 6,592.80. South Korea’s Kospi shed nearly 1% to 2,318.56. Hong Kong’s Hang Seng dropped 1.4% to 21,543.39 while the Shanghai Composite slid 1.3% to 3,358.53.

Japan has parliamentary elections this coming weekend, but the expected outcome is for more stability. Prime Minister Fumio Kishida appears headed to victory amid a heavily divided and discredited opposition, polls show, despite the ruling party’s stumbling over curbing coronavirus infections, the economy and various scandals.

Stock indexes ended with meager gains on Wall Street with a late-afternoon rally led by technology companies.

The S&P 500 rose 0.2% to 3,831.39. The Nasdaq climbed 1.7% to 3,831.39. The Dow Jones Industrial Average remained in the red, losing 0.4% to 30,967.82. Small-company stocks bounced back after a downbeat start. The Russell 2000 gained 0.8% to 1,741.33.

In Britain, the FTSE 100 dropped 2.9% after two of British Prime Minister Boris Johnson’s most senior Cabinet ministers quit, saying they had lost confidence in Johnson’s leadership amid shifting explanations about his handling of a sexual misconduct scandal

Energy, industrials, health care and most of the 11 sectors in the S&P 500 ended in the red, despite the late rally in technology stocks, communication firms and retailers and other companies that rely on direct consumer spending.

“The market is really taking the growth slowdown as the primary driver today,” said Paul Kim, CEO of Simplified Asset Management. “So you’re seeing a modest sell-off in risk assets, but a significant sell-off in oil, energy, commodities tied to growth, as well as a a modest drop in yields.”

Stocks remain in a slump that pulled the S&P 500 into a bear market last month, meaning an extended decline of 20% or more from a recent peak. The market’s performance in the first half of 2022 was the worst since the first six months of 1970.

Inflation has been squeezing businesses and consumers, tightening its grip after Russia invaded Ukraine in February. The invasion sent oil prices higher globally and sent gasoline prices in the U.S. to record highs. Consumers struggling with higher prices on everything from food to clothing are cutting back on spending.

Lockdowns in China from rising COVID-19 cases have also made supply chain problems worse.

Wall Street has been closely watching the latest economic updates for more clues on how inflation is impacting the economy and whether that could shift the Fed’s position on rate hikes. Wall Street will get a closer look at the employment market on Friday when the the government releases employment data for June.

Investors are also looking ahead to the next round of corporate earnings. Several big companies recently warned that their financial results are being squeezed by inflation, including spice and seasonings maker McCormick.

In currency trading, the U.S. dollar edged down to 135.22 Japanese yen from 135.84 yen. The euro cost $1.0259, inching down from $1.0266.

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AP Business Writers Damian J. Troise and Alex Veiga contributed.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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Sri Lanka’s crisis rings alarm for other troubled economies https://federalnewsnetwork.com/world-news/2022/07/sri-lankas-crisis-rings-alarm-for-other-troubled-economies/ https://federalnewsnetwork.com/world-news/2022/07/sri-lankas-crisis-rings-alarm-for-other-troubled-economies/#respond Wed, 06 Jul 2022 04:21:51 +0000 https://federalnewsnetwork.com/?p=4136548 BANGKOK (AP) — Sri Lanka is desperate for help with weathering its worst crisis in recent memory. Its schools are closed for lack of fuel to get kids and teachers to classrooms. Its effort to arrange a bailout from the International Monetary Fund has been hindered by the severity of its financial crisis, its prime minister says.

But it’s not the only economy that’s in serious trouble as prices of food, fuel and other staples have soared with the war in Ukraine. Alarm bells are ringing for many economies around the world, from Laos and Pakistan to Venezuela and Guinea.

Some 1.6 billion people in 94 countries face at least one dimension of the crisis in food, energy and financial systems, and about 1.2 billion of them live in “perfect-storm” countries, severely vulnerable to a cost-of-living crisis plus other longer-term strains, according to a report last month by the Global Crisis Response Group of the United Nations Secretary-General.

The exact causes for their woes vary, but all share rising risks from surging costs for food and fuel, driven higher by Russia’s war on Ukraine, which hit just as disruptions to tourism and other business activity from the coronavirus pandemic were fading. As a result, the World Bank estimates that per capita incomes in developing economies will be 5% below pre-pandemic levels this year.

The economic strains are fueling protests in many countries, as meanwhile, short-term, higher interest borrowing to help finance pandemic relief packages has heaped more debt on countries already struggling to meet repayment obligations. More than half of the world’s poorest countries are in debt distress or at high risk of it, according to the U.N.

Some of the worst crises are in countries already devastated by corruption, civil war, coups or other calamities. They muddle along, but with an undue burden of suffering.

Here’s a look at a few of the economies that are in dire straits or at greatest risk.

AFGHANISTAN

Afghanistan has been reeling from a dire economic crisis since the Taliban took control as the U.S. and its NATO allies withdrew their forces last year. Foreign aid — long a mainstay — stopped practically overnight and governments piled on sanctions, halted bank transfers and paralyzed trade, refusing to recognize the Taliban government. The Biden administration froze $7 billion in Afghanistan’s foreign currency reserves held in the United States. About half the country’s 39 million people face life-threatening levels of food insecurity and most civil servants, including doctors, nurses and teachers, have been unpaid for months. A recent earthquake killed more than 1,000 people, adding to those miseries.

ARGENTINA

About four of every 10 Argentines are poor and its central bank is running perilously low on foreign reserves as its currency weakens. Inflation is forecast to exceed 70% this year. Millions of Argentines survive largely thanks to soup kitchens and state welfare programs, many of which are funneled through politically powerful social movements linked to the ruling party. A recent deal with the IMF to restructure $44 billion in debt faces questions over concessions that critics say will hinder a recovery.

EGYPT

Egypt’s inflation rate surged to almost 15% in April, causing privation especially for the nearly one-third of its 103 million people living in poverty. They were already suffering from an ambitious reform program that includes painful austerity measures like floating the national currency and slashing subsidies for fuel, water and electricity. The central bank raised interest rates to curb inflation and devalued the currency, adding to difficulties in repaying Egypt’s sizable foreign debt. Egypt’s net foreign reserves have fallen. Its neighbors Saudi Arabia, Qatar and the United Arab Emirates have pledged $22 billion in deposits and direct investments as assistance.

LAOS

Tiny, landlocked Laos was one of the fastest growing economies until the pandemic hit. Its debt levels have surged and like Sri Lanka, it is in talks with creditors on how to repay billions of dollars worth of loans. That’s an urgent issue given the country’s weak government finances. Its foreign reserves are equal to less than two months of imports, the World Bank says. A 30% depreciation in the Lao currency, the kip, has worsened those woes. Rising prices and job losses due to the pandemic threaten to worsen poverty.

LEBANON

Lebanon shares with Sri Lanka a toxic combination of currency collapse, shortages, punishing levels of inflation and growing hunger, snaking queues for gas and a decimated middle class. It, too, endured a long civil war, its recovery hampered by government dysfunction and terror attacks.

Proposed taxes in late 2019 ignited longstanding anger against the ruling class and months of protests. The currency began to sink and Lebanon defaulted on paying back worth about $90 billion at the time, or 170% of GDP — one of the highest in the world. In June 2021, with the currency having lost nearly 90% of its value, the World Bank said the crisis ranked as one of the worst the world has seen in more than 150 years.

MYANMAR

The pandemic and political instability have buffeted Myanmar’s economy, especially after the army seized power in February 2021 from the elected government of Aung San Suu Kyi. That brought Western sanctions targeting commercial holdings controlled by the army, which dominate the economy. The economy contracted by 18% last year and is forecast to barely grow in 2022. More than 700,000 people have fled or been forced from their homes by armed conflicts and political violence. The situation is so uncertain, a recent global economic update from the World Bank excluded forecasts for Myanmar for 2022-2024.

PAKISTAN

Like Sri Lanka, Pakistan has been in urgent talks with the IMF, hoping to revive a $6 billion bailout package that was put on hold after Prime Minister Imran Khan’s government was ousted in April. Soaring crude oil prices pushed up fuel prices which in turn raised other costs, pushing inflation to over 21%. A government minister’s appeal to cut back on tea drinking to reduce the $600 million bill for imported tea angered many Pakistanis. Pakistan’s currency, the rupee, has fallen about 30% against the U.S. dollar in the past year. To gain the IMF’s support, Prime Minister Shahbaz Sharif has raised fuel prices, abolished fuel subsidies and imposed a new, 10% “super tax” on major industries to help repair the country’s tattered finances. As of late March, Pakistan’s foreign exchange reserves had fallen to $13.5 billion, equivalent to just two months of imports. “Macroeconomic risks are strongly tilted to the downside,” the World Bank warned in its latest assessment.

TURKEY

Worsening government finances and a growing trade and capital account deficit have compounded Turkey’s troubles with high and rising debt, inflation — at over 60% —and high unemployment. The Central Bank resorted to using foreign reserves to fend off a currency crisis, after the beleaguered lira fell to all-time lows against the U.S. dollar euro in late 2021. Tax cuts and fuel subsidies to cushion the blow from inflation have weakened government finances. Families are struggling to buy food and other goods, while Turkey’s foreign debt is about 54% of its GDP, an unsustainable level given the high level of government debt.

ZIMBABWE

Inflation in Zimbabwe has surged to more than 130%, raising fears the country could return to the hyperinflation of 2008 that reached 500 billion percent and heaping problems on its already fragile economy. Zimbabwe struggles to generate an adequate inflow of greenbacks needed for its largely dollarized local economy, which has been battered by years of de-industrialization, corruption, low investment, low exports and high debt. Inflation has left Zimbabweans distrustful of the currency, adding to demand for U.S. dollars. And many skip meals as they struggle to make ends meet.

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Associated Press writers Munir Ahmed in Islamabad, Pakistan and Krishan Francis in Colombo, Sri Lanka, contributed to this report.

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G-20 meeting may lead to wider divisions over war in Ukraine https://federalnewsnetwork.com/government-news/2022/07/g-20-meeting-may-lead-to-wider-divisions-over-war-in-ukraine/ https://federalnewsnetwork.com/government-news/2022/07/g-20-meeting-may-lead-to-wider-divisions-over-war-in-ukraine/#respond Wed, 06 Jul 2022 04:14:15 +0000 https://federalnewsnetwork.com/?p=4136530 WASHINGTON (AP) — Foreign ministers from the world’s largest nations are looking to address the war in Ukraine and its impact on global energy and food security when they meet in Indonesia this week. Yet instead of providing unity, the talks may well exacerbate existing divides over the Ukraine conflict.

U.S. Secretary of State Antony Blinken, Russian Foreign Minister Sergey Lavrov and Chinese Foreign Minister Wang Yi are set to attend the Group of 20 meeting in the Indonesian resort of Bali, which will set the stage for a summit of G-20 leaders at the same venue in November.

It will mark the first time Blinken and Lavrov have been in the same room, let alone the same city, since January. There’s no indication the two will meet separately, but even without a one-on-one with Lavrov, Blinken could find himself in some difficult discussions.

The State Department announced Tuesday that Blinken will hold separate talks with Wang at a time when already extremely tense U.S.-China relations have been worsened by Beijing’s friendly ties with Moscow.

And, unlike in recent leader-level meetings with NATO partners and other like-minded partners, Blinken will find himself among diplomats from countries wary of the U.S. approach to Ukraine and concerned about its impact on them.

U.S. officials say that aside from Wang, Blinken will have bilateral talks in Bali with counterparts from countries that have not seen eye to eye with the West on the Russian invasion, notably India, which has increased purchases of Russian oil even as the U.S. and Europe have tried to choke off that revenue stream for Moscow.

In announcing that Blinken would meet with Wang in Bali, the State Department had little to say about the possibility of him seeing Lavrov, whom the U.S. has shunned since the Ukraine invasion in February.

The department said there would not be a formal meeting between Blinken and Lavrov, whom U.S. officials accuse of a lack of seriousness before, during and after the invasion of Ukraine.

“We would like to see the Russians be serious about diplomacy,” State Department spokesman Ned Price said. “We have not seen that yet. We would like to have the Russians give us a reason to meet on a bilateral basis with them, with Foreign Minister Lavrov, but the only thing we have seen emanate from Moscow is more brutality and aggression against the people and country of Ukraine.”

The Biden administration maintains there can be no “business as usual” with Moscow as long as the war continues. But neither Price nor other U.S. officials could rule out the possibility of a chance Blinken-Lavrov encounter in Bali, which would be their first since they last met in Geneva in January. Price declined to discuss what he called the “choreography” of the G-20.

Like almost all recent international diplomatic gatherings, the Bali meeting will be overshadowed by Ukraine. But unlike the Western-dominated G-7 and NATO summits held in Europe last week, the G-20 will have a different flavor.

China and many other participants, including India, South Africa and Brazil, have resisted signing onto U.S. and European full-throated opposition to Russia’s invasion. Some have outright refused Western entreaties to join condemnations of the conflict, which the U.S. and its allies see as an attack on the international rules-based order that has prevailed since the end of World War II.

Thus, there may be difficulty in achieving a G-20 consensus on efforts to mitigate the food and energy impacts of the Ukraine conflict, particularly with China and Russia in the room. That will not stop the U.S. from trying, according to American officials.

They want to see the G-20 put its weight behind a U.N.-backed initiative to free up some 20 million tons of Ukrainian grain for export mainly to the Middle East, Africa and Asia.

”We would like the G-20 to hold Russia accountable and insist that it support this initiative,” said Ramin Toloui, the assistant secretary of state for Economic and Business Affairs.

While a variety of nations, including G-20 host Indonesia, are pushing for Russia to ease its blockade in the Black Sea to allow grain to enter the global market, they remain wary of antagonizing Moscow and its friends in Beijing.

And that divergence has set the stage for a potentially contentious preparatory meeting ahead of November’s G-20 summit amid questions about whether Russian President Vladimir Putin will attend.

The U.S. has made clear it does not believe Putin should attend but has urged Indonesia to invite Ukrainian President Volodymr Zelenskyy should the Russian leader participate.

In the meantime, the U.S. and China are separately at severe odds over numerous issues ranging from trade and human rights to Taiwan and disputes in the South China Sea.

Blinken’s meeting with Wang was announced after China’s trade envoy with Washington expressed concern about U.S. tariffs on Chinese imports in a call with with U.S. Treasury Secretary Janet Yellen. Neither side gave any indication that progress has been made on the matter and U.S. officials downplayed the chances for any breakthroughs in the short term.

In his meeting with Wang, U.S. officials said Blinken would instead be pressing to keep lines of communications open and creating “guardrails” to guide the world’s two largest economies as they navigate increasingly complex and potentially explosive matters.

“It’s absolutely critical that we have open lines of communication with our Chinese counterparts, particularly at the senior level … to ensure that we prevent any miscalculation that could lead inadvertently to conflict and confrontation,” said Daniel Kritenbrink, the top U.S. diplomat for Asia.

From Bali, Blinken will travel to Bangkok, Thailand, to make up for a trip to the Thai capital that he was forced to cancel late last year due to COVID-19. In addition to Thai officials, Blinken will meet with refugees who have fled ongoing political violence and repression in Myanmar since a coup toppled a civilian government in February 2021.

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