Ford to Close Oldest Brazil Plant, Exit South America Truck Business

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Ford Motor Co. said on Tuesday it will close its oldest factory in Brazil and exit its heavy commercial truck business in South America, a move that could cost more than 2,700 jobs as part of a restructuring meant to end losses around the world.

Ford previously said the global reorganization, to impact thousands of jobs and possible plant closures in Europe, would result in $11 billion in charges.

Following that announcement, analysts and investors had expected a similar restructuring in South America. Ford Chief Executive Jim Hackett said last month that investors would not have to wait long for the South American reorganization plan.

The factory slated for closure is in Sao Bernardo do Campo, an industrial suburb of Sao Paulo that has operated since 1967.

It first produced a number of auto models before being switched predominantly to trucks in 2001. It makes the F-4000 and F-350 trucks, as well as the Fiesta small car, a sales laggard.

The factory closure may mean Ford is refocusing on the core of its car business in Latin America’s largest economy, based in a much newer factory in the northeastern state of Bahia. But the job cuts in Brazil’s industrial heartland represent a psychological blow for the new administration of far-right President Jair Bolsonaro, which is battling an unemployment rate above 11 percent.

Ford’s latest cuts come as investors watch for signs of progress on the company’s alliance with Volkswagen AG, which already encompasses commercial vans and pickup trucks but may soon expand into electric and self-driving cars. The two automakers have also pledged to work together on other projects, which could include combining capacity in regions like South America.

Ford shares closed up 3.4 percent at $8.83 in New York.

“You can’t cost cut your way to prosperity in the long term,” said David Kudla, who heads Michigan-based Mainstay Capital Management, a firm that previously owned Ford stock. “We want to hear about the future, what you’re doing for mobility services and autonomous vehicles.”

The closure is also a blow to the industrial outskirts of Sao Paulo, where Brazil’s automotive industry was born and which long drove its industrial growth. It is also where imprisoned former President Luiz Inacio Lula da Silva came to fame as a union leader who organized massive strikes that helped harken the end of the military dictatorship.

The union in Sao Bernardo did not have an immediate comment.

But Sao Bernardo Mayor Orlando Morando complained angrily that Ford gave no warning and failed to discuss the closure with the workers.

“The 2,800 families directly affected and another 2,000 indirectly affected deserved a chance to react. This is an act of cowardice,” Morando’s office said in a statement.

A Ford spokesman declined to provide a precise figure for job cuts but acknowledged there would be “a significant impact” and said the automaker would work with unions and other affected parties on “next steps.”

Ford South America President Lyle Watters said on Tuesday the automaker remains “committed” to South America, a region where it is not currently profitable.

Slow Growth

Sales of Ford cars and light trucks grew by 10 percent between 2017 and 2018 in Brazil, lagging a 15 percent post-recession increase for the industry as a whole.

In the trucks business, it ranked fourth, with sales less than half those of Mercedes Benz and Volkswagen.

Ford said in October it would stop building its Focus compact cars in Argentina in May 2019 as part of efforts to end its losses in the region.

Kleiton Da Silva, an employee and union representative in Ford’s surviving Bahia plant, said the carmaker was in talks to cut 650 of its workforce there, which the automaker has said totals 4,604.

The No. 2 U.S. automaker expects to record pre-tax special charges of about $460 million, with most of that recorded this year, it said in the statement.

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Is High Finance Growing a Social Conscience?

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Financiers who turnaround companies by injecting them with capital are increasingly considering the environmental and social impact of their investments, according to a survey published Tuesday by consulting firm PwC.

The survey found a growing cohort of these financiers, called private equity firms, have embraced this ethical investment strategy, known as responsible investing or environmental, social and governance (ESG) investing.

For a long time, responsible investing was a niche strategy within finance. But increasingly, investors are waking up to the fact that they can do good as well as achieving financial returns.

PwC polled 162 finance companies from 35 countries, including 145 private equity companies, for its fourth Private Equity Responsible Investment Survey.

It found 91 percent of respondents have adopted or are developing responsible investment policies, up from 80 percent in 2013.

Meanwhile, 35 percent of the firms polled have formed in-house teams to ensure their investments are responsible.

“This is really showing they are taking responsible investment seriously and it is becoming more mainstream,” Phil Case, a director at PwC and co-author of the report, told Reuters.

Development goals

The survey also showed a growing awareness among financiers of the United Nation’s Sustainable Development Goals (SDGs), a series of targets to combat global problems, such as poverty, hunger, gender inequality and climate change.

According to the survey, 67 percent of respondents selected development goals to tackle that are relevant for the businesses they invest in. In 2016 — the year after the SDGs launched — just 38 percent did this.

“What we are seeing in the market, including private equity, is more and more firms hang their sustainability strategies — or ESG strategies — around the SDGs, so they are being seen as a very useful framework,” said Case.

However, he warned that there is scope for financiers to exaggerate their allegiance to the development goals.

“Not all firms are taking the SDGs as seriously as others,” he said.

Human rights, climate change

The survey showed that human rights and climate change were also high on the agenda for the private equity community.

It found 76 percent of respondents said they were concerned about human rights issues, such as poor labor practices within supply chains.

Meanwhile, 83 percent are concerned about the impact climate change could have on the businesses they invest in.

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US Automakers to Trump: Don’t Slap Tariffs on Imported Cars

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America’s auto industry is bracing for a potential escalation in President Donald Trump’s tariff war with the world, one that could weaken the global auto industry and economy, inflate car prices and trigger a backlash in Congress.

Late Sunday, the Commerce Department sent the White House a report on the results of an investigation Trump had ordered of whether imported vehicles and parts pose a threat to U.S. national security. Commerce hasn’t made its recommendations public, and the White House has so far declined to comment. If Commerce did find that auto imports imperil national security, Trump would have 90 days to decide whether to impose those import taxes.

Trump has repeatedly invoked his duty as president to safeguard national security in justifying previous rounds of tariffs. An obscure provision in trade law authorizes a president to impose unlimited tariffs on particular imports if his Commerce Department concludes that those imports threaten America’s national security.

Whatever Commerce has concluded in this case, Trump has made clear his enthusiasm for tariffs in general and for auto tariffs in particular. Some analysts say they think Commerce has likely endorsed the tariffs, not least because the president has conveyed his preference for them.

‘Tariff Man’

Among Commerce’s recommendations “will certainly be tariffs because, hey, he’s a Tariff Man,” said William Reinsch, a former U.S. trade official and now a senior adviser at the Center for Strategic and International Studies, referring to a nickname that Trump gave himself.

Industry officials took part in a conference call Tuesday to discuss the possible steps Trump could take. They include tariffs of up to 25 percent on imported parts only; on assembled vehicles only; or on both vehicles and parts — including those from Mexico and Canada. The last option would be an especially unusual one given that the United States, Mexico and Canada reached a new North American trade deal late last year, and the legislatures of all three nations must still ratify it.

In public hearings last year, the idea of imposing import taxes on autos drew almost no support. Even U.S. automakers, which ostensibly would benefit from a tax on their foreign competitors, opposed the potential tariffs. Among other concerns, the automakers worry about retaliatory tariffs that the affected nations would impose on U.S. vehicles. Many U.S. automakers also depend on imported parts that would be subject to Trump’s tariffs and would become more expensive.

A similar Commerce investigation last year resulted in the Trump administration imposing taxes on imported steel and aluminum in the name of national security. The administration has adopted an extraordinarily broad view of national security to include just about anything that might affect the economy.

In addition to steel and aluminum, Trump has imposed tariffs on dishwashers, solar panels and hundreds of Chinese products. Targeting autos would further raise the stakes. The United States imported $340 billion in cars, trucks and auto parts in 2017.

‘Economic fallout’

If the administration imposed 25 percent tariffs on imported parts and vehicles including those from Canada and Mexico, the price of imported vehicles would jump more than 17 percent, or an average of around $5,000 each, according to estimates by IHS Markit. Even the prices of vehicles made in the U.S. would rise by about 5 percent, or $1,800, because all of them use some imported parts.

Luxury brands would absorb the sharpest increase: $5,800 on average, IHS concluded. Mass-market vehicle prices would rise an average of $3,300.

If the tariffs were fully assessed, IHS predicts that price increases would cause U.S. auto sales to fall by an average of 1.8 million vehicles a year through 2026. Auto industry officials say that if sales fall, there almost certainly will be U.S. layoffs. Dealers who sell German and some Japanese brands would be hurt the most by the tariffs.

“The economic fallout would be significant, with auto tariffs hurting the global economy by distorting prices and creating inefficiencies, and the impact would reverberate across global supply chains,” Moody’s Investors Service said in a report. “The already weakening pace of global expansion would magnify global growth pressures, causing a broader hit to business and consumer confidence amid tightening financial conditions.”

Congress could resist the auto tariffs. Sens. Pat Toomey, R-Penn., and Mark Warner, D-Va., have introduced legislation to reassert congressional control over trade. Their bill would give Congress 60 days to approve any tariffs imposed on national security grounds. It would also shift responsibility for such investigations away from Commerce to the Pentagon.

Some analysts say they suspect that Trump intends to use the tariffs as leverage to pressure Japan and Europe to limit their auto exports to the United States and to prod Japanese and European automakers to build more vehicles at their U.S. plants.

Reinsch notes that Trump’s top trade negotiator, Robert Lighthizer, worked in the Reagan administration, which coerced Japan into accepting “voluntary” limits on its auto exports.

“This is the way Lighthizer thinks,” Reinsch said.

Even if the tariff threat resulted in negotiations, Europe and Japan would have demands of their own. A likely one: Compelling the U.S. to drop its longstanding 25 percent tax on imported light trucks.

Trump is “pursuing something that, as near as I can tell, the domestic [auto] industry doesn’t want,” Reinsch said. “Once he pursues it, he is going to be under pressure to give up the one thing the auto industry really does want” — the U.S. tariff on imported light trucks.

‘Cloud of uncertainty’

For now, many in the industry are upset that the Commerce Department report remains secret, feeding uncertainty.

“The 137,000 people who work for Toyota across America deserve to know whether they are considered a national security threat,” Toyota said in a statement Tuesday. “And the American consumer needs to know whether the cost of every vehicle sold in the U.S. may increase.”

The American International Automobile Dealers Association this week called the Commerce Department’s investigation “bogus.”

“Now, dealerships must continue to operate under a cloud of uncertainty, not knowing if at any moment their products will be slapped with 25 percent tariffs, raising vehicle and repair costs by thousands of dollars and slashing sales,” the association’s CEO, Cody Lusk, said in a statement.

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Future Styles: Could Virtual Clothes Reduce Damage of Fast Fashion?

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Striking a pose in the mirror, Swedish model and stylist Lisa Anckarman shows off a new jacket with a difference on Instagram – though it fits her perfectly in the photo, it’s a virtual design that does not exist in real life.

She is among a number of trendsetters embracing cutting-edge technology that offers the opportunity to sate appetites for fast fashion while dramatically slashing the emissions, pollution and labor abuses linked to the garment industry.

“I really liked the idea and the aspect that it’s good for the environment,” Anckarman told the Thomson Reuters Foundation as she discussed her virtual styling. Actually I think it maybe looked too good because people didn’t really get that it was digital.”

“People were asking me ‘Where did you buy this?’ and I was saying, ‘It’s digital’, and they were like, ‘No, at what shop did you buy it?'”

Fashion is one of the world’s most damaging industries – it is responsible for about 10 percent of all greenhouse gas emissions, sucks up scarce water and creates vast amounts of pollution and waste.

But the desire for the latest look is only increasing. Global fashion sales grew by about 4.5 percent to $1.7 trillion in 2018, found analysts at McKinsey and Company, who said social media is bringing trends to consumers at an ever swifter pace.

Some businesses are now looking to meet the demand for new styles through digital designs, with Scandinavian fashion firm Carlings convincing its customers to pay real cash for virtual clothes that are digitally “fitted” onto users’ photographs.

“It was kind of scary (launching it) but the response was so overwhelming that we were convinced we were on to something,” said Ronny Mikalsen, the firm’s brand director.

The first Carlings designs, costing between 10 euros ($11) and 30 euros, sold out and a second digital collection is due to be released in spring 2019.

High fashion, low emissions

Digital clothes create far lower emissions than physical clothes as they cut out the long, labor-intensive process of sourcing materials, producing fabrics, making garments and shipping them worldwide.

While virtual styles may still be niche, experts say they are set to grow as technology seeps into more aspects of human lives.

Younger generations in particular are keen to curate their online personas as much as their real-life image, said Matthew Drinkwater, the head of the Fashion Innovation Agency based at the London College of Fashion.

On Instagram you have to ask “how much of that is a real person and how much is an enhanced version or a way they wish to portray themselves?” he said.

The increasing use of filters on social media that can add cute dog ears or a flower crown on top of a photo or edit video in real time to make people vomit rainbows shows how people are already using digital effects to play with their image, he said.

“In a very simple sense people are beginning to enhance or alter the way that they look,” he said. “You can begin to see a drift towards this merging of physical and digital.”

Shopping habits are already changing to meet the demands of online images: nearly one in 10 people have bought clothes to wear once, with the aim of sharing their outfit on social media, according to a survey of 2,000 Britons by finance firm Barclaycard last summer.

“If you get caught wearing the same clothes too many times it’s seen as a bad thing,” said Morten Grubak from the Virtue creative agency, who came up with the Carlings campaign.

“One of the worst things you can write under images is ‘Not again’, making the hint they have posted that outfit before.”

‘Physics-defying’ outfits

Some involved in virtual fashion said they had set out to offer a new solution to the industry’s climate damage and waste rather than trying to persuade consumers to buy less.

“Right now (environmental campaigns) are always about, like, how much water did we save producing these jeans and people don’t care about that,” said Grubak.

“Instead of getting angry with people doing fashion on Instagram, how can we innovatively solve that problem by adding a new platform?”

Other companies said they had taken a deliberate decision to avoid the traditional fashion market entirely.

“We’ve made a very clear point of never wanting to be a physical fashion brand,” said Kerry Murphy of Dutch digital fashion house The Fabricant, which creates only virtual designs.

“We believe the world does not need more clothing. It’s an incredibly wasteful and polluting industry. That’s why we very consciously said we want to re-imagine fashion.”

Digital design also opens up new possibilities to play with fashion, from using fabrics like rubber which would be relatively uncomfortable in real life through to dabbling in exotic skins or even physics-defying fantasies.

“Clothing will definitely have a different meaning because it does not have the same functionality as physical clothing,” Murphy said.

“People can wear fire or they wear rain or they can be a dinosaur, so the possibilities are limitless.”

Those involved in the digital design industry said it will not offer a complete solution to fashion’s emissions and waste problems, but it can help by encouraging people to update their existing wardrobes with virtual flourishes.

And as technology advances, virtual fashion could sashay into the mainstream, said Drinkwater.

Within a decade, people could regularly wear high-tech glasses that can apply digital effects over what the wearer sees in real life, he predicted, meaning virtual clothes will no longer be restricted to a computer or phone screen.

“Could you imagine a point where your existing clothes could be constantly updated through digital design? Could we be downloading content that could portray ourselves differently? Would that stop us from simply buying more product?” he asked. “That potential is really quite exciting.”

($1 = 0.8834 euros)

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Twitter Tightens EU Political Ad Rules Ahead of Election

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Twitter said Tuesday it is tightening up rules for European Union political ads ahead of bloc-wide elections this spring, following similar moves by fellow tech giants Facebook and Google.

The social media company said it is extending restrictions already in place for federal elections in the United States.

Under the new rules, which will also apply in Australia and India, political advertisers will need to be certified.

It’s also taking steps to increase transparency. Ads, in the form of “promoted tweets,” from the past seven days will be stored in a publicly accessible database showing how much was spent, how many times it was seen and the demographics of the people who saw it.

Facebook and Google have put in similar systems ahead of the EU vote in May, as the U.S. tech companies respond to criticism they didn’t do enough to prevent misuse of their platforms by malicious actors trying to sway previous elections around the world.

“This is part of our overall goal to protect the health of the public conversation on our service and to provide meaningful context around all political entities who use our advertising products,” the company said in a blog post .

Hundreds of millions of people are set to vote for more than 700 European Union parliamentary lawmakers.

Political advertisers can start applying now for certification under Twitter’s stricter ad rules, which take effect March 11, by providing more information such as photo ID or a company identification number.

Twitter defines political ads as those bought by a party or candidate or that advocate for or against a candidate or party.

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Artists Create Contemporary Take on Ancient Art Form

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Levitating objects and plastic boxes may not seem to have anything to do with landscape painting, but they are the contemporary take on an ancient Chinese art style called “shan shui hua” or mountain water painting.

Dating back more than 1,000 years, this style of landscape painting, which uses brush and ink, has evolved over time. The art form is evolving once again in an exhibit called “Lightscapes: Re-envisioning the Shanshuihua” at the Chinese American Museum in Los Angeles.

The goal of Nick Dong and Chi-Tsung Wu, the two artists in the exhibit, is to connect the new, digital generation to this traditional type of art and to capture its essence in a new way through modern technology. 

The exhibit forces the viewer to slow down and experience a different world. That’s one of the objectives of the ancient masters of Chinese shan shui paintings.

Escape from reality

“Actually, it was for all these artists to create a world which they want to hide, avoid, escape from reality. So, they create a mountain (and) imagine they could live there,” said Dong, an artist born in Taiwan who now lives in Northern California.

Trained in both Chinese and Western art styles, Dong and Wu use experimental materials and light in the various art pieces in the exhibit. 

In a contemporary approach to what’s real and what is not, one installation involves a slowly moving light directed at clear plastic boxes attached to a wall.

“If we see this through the light, through the different perspective, we could see there’s another world behind that,” Wu said about his installation called Crystal City.

That other world Wu referenced are shadows that look more real and solid than the actual plastic boxes. Wu said the art installation is symbolic of the modern digital age.

“We spend most of our time in our daily life, no matter to work or to our social life or our entertainment, all on this cyberspace,” he said.

That space is an escape for many people similar to the landscape paintings.

Philosophy and the spiritual

To capture the philosophical elements of the landscape painting, magnets are used to levitate objects to show that there is a force between everything in nature.

Another art piece in the exhibit is a take on one’s relationship with the universe. To view Dong’s representation of heaven, one has to step into a room filled with mirrors from ceiling to floor. There is a stool in the middle of the room.

“We’re all searching. We’re all longing for growth, become better and, ultimately, good enough to go to heaven. So, in my mind, heaven is a place of selfless, so eventually once you’ve entered the installation, at first you’ll see a lot of your reflection. But once you sit down, you trigger the mechanism of the room. The mirror actually starts to reflect, and you yourself will disappear within the space. You vanish. All you have is this empty, wide-open space. For me, it’s the ultimate evolution,” Dong explained.

The art pieces in the exhibit are ways the artists hope the modern-day viewer will be able to experience what the ancient artists of the landscape paintings were trying to achieve. 

“They (ancient scholars) were able to say, ‘We’re seeking a spiritual outlet. We’re seeking a way to refine the spirit and refine the soul.’ This work, today, it’s hard to have that experience with the traditional artwork because they’re such a contained device. You see them in a museum under glass, and they’re hard to approach,” said Justin Hoover curator of the Chinese American Museum, Los Angeles.

Contemporary artists hope their use of lighting and experimental materials will make an ancient art form more tangible and real in the 21st century.

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Cheap and Green: Pyongyang Upgrades Its Mass Transit System

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Pyongyang is upgrading its overcrowded mass transit system with brand new subway cars, trams and buses in a campaign meant to show leader Kim Jong Un is raising the country’s standard of living. 

 The long-overdue improvements, while still modest, are a welcome change for the North Korean capital’s roughly 3 million residents, who have few options to get to work or school each day. 

First came new, high-tech subway cars and electric trolleybuses — each announced by the media with photos of Kim personally conducting the final inspection tours. Now, officials say three new electric trams are running daily routes across Pyongyang. 

Transport officials say the capacity of the new trams is about 300, sitting and standing. Passengers must buy tickets in shops beforehand and put them in a ticket box when they get on. The flat fare is a dirt cheap 5 won (US$ .0006) for any tram, trolleybus, subway or regular bus ride on the public transport system. The Pyongyang Metro has a ticket-card system and the Public Transportation Bureau is considering introducing something similar on the roads as well. 

Private cars are rare

Privately owned cars are scarce in Pyongyang. Taxis are increasingly common but costly for most people. Factory or official-use vehicles are an alternative, when available, as are bicycles. Motorized bikes imported from China are popular, while scooters and motorcycles are rare.

The subway, with elaborate stations inspired by those in Soviet Moscow and dug deep enough to survive a nuclear attack, runs at three- to five-minute intervals, depending on the hour. Officials say it transports about 400,000 passengers on weekdays. But its two lines, with 17 stations, operate only on the western side of the Taedong River, which runs through the center of the city.

“The subway is very important transportation for our people,” subway guide Kim Yong Ryon said in a recent interview with The AP. “There are plans to build train stations on the east side of the river, but nothing has started yet.”

The lack of passenger cars on Pyongyang’s roads has benefits. Traffic jams are uncommon and, compared to Beijing or Seoul, the city has refreshingly clean, crisp air. Electric trams, which run on rails, and electric trolleybuses, which have wheels, are relatively green transport options. 

Crowded and slow

But mass transit in Pyongyang can be slow and uncomfortable. 

The tram system, in particular, is among the most crowded in the world. 

Swarms of commuters cramming into trams are a common sight during the morning rush hour, which is from about 6:00 to 8:30. Getting across town can take about an hour.

Pyongyang’s tram system has four lines. In typical North Korean fashion, one is devoted to taking passengers to and from the mausoleum where the bodies of national founder Kim Il Sung and his son, Kim Jong Il, lie in state.

The city’s red-and-white trams look familiar to many eastern Europeans. In 2008, the North bought 20 used trams made by the Tatra company, which produced hundreds of them when Prague was still the capital of socialist Czechoslovakia.

North Korea squeezes every last inch out of its fleet. 

Red stars are awarded for every 50,000 kilometers (31,000 miles) driven without an accident, and it’s not unusual to see trams with long lines of red stars stenciled across their sides. One seen in operation in Pyongyang last month had 12 — that’s 600,000 kilometers (372,800 miles), or the equivalent of about 15 trips around the Earth’s circumference.

The numbers work

Impossible as that might seem, the math works.

Ri Jae Hong, a representative of the Capital Public Transportation Bureau, told an AP television news crew the main tram route, from Pyongyang Station in the central part of town to the Mangyongdae district, is 21 kilometers from end to end. He said a tram might do the full route there and back on average six times a day. 

By that reckoning, it would take just over 198 days of actual driving to win that first red star. 

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Brazil’s Bolsonaro Fires Senior Minister, Investor Sentiment Sours

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Brazilian President Jair Bolsonaro on Monday fired one of his most senior aides and cabinet members, Gustavo Bebianno, amid a scandal involving campaign financing for some of his party’s congressional candidates.

Bebianno was secretary general of the president’s office.

His departure punctuated Bolsonaro’s first cabinet crisis since he took office on Jan. 1 and has cast a shadow over the young government’s plans.

Brazilian markets fell on Monday as investors feared that the brewing scandal could hurt Bolsonaro’s ability to pass a pension overhaul seen as key to fiscal and economic recovery.

In a short video clip released late on Monday, Bolsonaro said he took the decision to dismiss Bebianno due to “differences of opinion on important issues,” although he did not elaborate.

Bebianno, who helped coordinate government affairs and was acting president of Bolsonaro’s right-wing Social Liberal Party for the election campaign last year, denies any wrongdoing.

Analysts at Eurasia Group said in a note on Monday, before Bebianno was dismissed, that the scandal is unlikely to dent Bolsonaro’s approval ratings. Despite the dubious optics, the president can claim to be taking a tough stand against an aide accused of illicit activity.

But the timing could not be worse. Days before unveiling its landmark pension reform proposal, the government is mired in scandal, even if it is one that probably will not have much lasting impact on the administration or pension reform.

“It is indicative, however, of a political team in disarray,” they wrote, adding that everything points to “an end result that will probably lead to the approval of a less ambitious version of the government’s proposal for pension reform.”

The scandal is denting investor sentiment, which had brightened last week after early details of Bolsonaro’s social security reform proposals were released. The full package will be presented to senior lawmakers on Wednesday.

Brazil’s Bovespa stock market fell 1 percent on Monday, the dollar rose almost 1 percent to 3.7350 reais and January 2020 interest rates rose two basis points to 6.39 percent.

Last week, the Bovespa rose 2.3 percent, within touching distance of its record-high 98,588. Interest rates fell 15 basis points, the biggest weekly drop in two months, and the real also rose.

The Bebianno scandal got personal after one of Bolsonaro’s sons branded him a liar on Twitter, putting pressure on the president to dismiss him just weeks into his term.

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Tycoons Tell Mexico’s President That Unions ‘Extorting’ Businesses

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A group representing some of Mexico’s biggest companies told left-wing President Andres Manuel Lopez Obrador on Monday that politicians should resist “extortion” by labor unions after strikes and blockades in recent weeks.

Alejandro Ramirez, president of the Mexican Business Council, said strikes at factories in the northern state of Tamaulipas and blockades of railways by a teachers union had caused more than a billion dollars in losses and could cause businesses to close.

Critics of Obrador

Members of the group, including Mexico’s second-richest man, German Larrea, who controls mining and transport conglomerate Grupo Mexico, were critics of Lopez Obrador before his July 1 election, warning voters should be wary of populism.

“In labor matters, we look favorably on Mexicans starting a new era of union freedom that will allow the end of old protectionist practices for a few unions and companies,” said Ramirez, chief executive of cinema chain Cineopolis.

“Freedom of association and respect of the rule of law should be the axis of this new labor reform. For that reason, we make a respectful call to lawmakers of all parties that it doesn’t just guarantee union freedom but also avoids union extortion.”

Lower prices on services

Since taking office, Lopez Obrador and members of the ruling party have sought regulation in areas ranging from banking and pensions to mining to make services cheaper for consumers.

The former Mexico City mayor wants to encourage investment to drive growth, but some worry regulation will be heavy handed and unpredictable.

MORENA, the party created by Lopez Obrador, is planning a reform to make it easier for workers to form independent unions.

Traditionally, unions have allied with the former party of power, the Institutional Revolutionary Party.

Lopez Obrador brought veteran union leader Napoleon Gomez into his party as a senator. Gomez has a history of conflict with Grupo Mexico, including strikes.

Gomez last week founded a federation called the International Workers Confederation.

First meeting since election

Monday’s event was the first time the group met with Lopez Obrador since he took office in December. Earlier in the day, he met the Council for Investment Promotion, Job Creation and Growth, a body he created to advise on economic policy.

Labor strikes in January at manufacturers in the Mexican city of Matamoros on the U.S. border cost about $50 million a day in unfulfilled international contracts.

Teachers from the National Committee of Education Workers blocked railroad tracks for weeks in January to protest labor demands.

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Amazon Aims to Cut Its Carbon Footprint

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Amazon, which ships millions of packages a year to shopper’s doorsteps, says it wants to be greener.

The online retail giant announced plans Monday to make half of all its shipments carbon-neutral by 2030.

To reach that goal, the online retail giant says it will use more renewable energy like solar power; have more packages delivered in electric vans; and push suppliers to remake their packaging.

McDonald’s, Coca-Cola and other big companies that generate lots of waste have announced similar initiatives, hoping to appeal to customers concerned about the environment.

Amazon is calling its program “Shipment Zero,” and plans to publicly publish its carbon footprint for the first time later this year.

Seattle-based Amazon said it spent the past two years mapping its carbon footprint and figuring out ways to reduce carbon use across the company.

“It won’t be easy to achieve this goal, but it’s worth being focused and stubborn on this vision and we’re committed to seeing it through,” said Dave Clark, Amazon’s senior vice president of worldwide operations.

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