U.S. sanctions on the finance boss of Venezuela’s oil company PDVSA have led to some exports to the United States being blocked as banks and investment funds refuse to provide letters of credit to potential buyers, three financial sources said.

U.S. businesses are barred from dealing with a sanctioned person or company and one of the sources said the sanctions on PDVSA’s Finance Vice President Simon Zerpa were deterring some businesses from investments with the company as so many of its transactions are linked to the finance department he leads.

A Venezuelan oil shipment to the United States was blocked this month as lenders refused to provide letters of credit to PDVSA customers, the sources said.

Letters of credit, issued by banks, guarantee to a seller that a buyer will pay a specified amount on time when a shipment is accepted. Without a letter of credit, shipments cannot be delivered and the shipper does not get paid. Blocking letters of credit for PDVSA oil chokes off cash that is desperately needed in the OPEC nation.

Petróleos de Venezuela, S.A., commonly known as PDVSA, is the financial motor of President Nicolas Maduro’s leftist government, and it is operating within one of the deepest economic recessions Venezuela has ever experienced and widespread political unrest.

In one instance, U.S. refiner PBF Energy was unable to get a letter of credit for a Venezuelan crude cargo to be received at a U.S. port.

The Suezmax tanker Karvounis has been anchored in the U.S. Gulf for more than a month. It partially discharged its cargo on Aug. 23 in New Orleans, according to Thomson Reuters vessel tracking data. A trader close to the deal said PBF Energy ultimately agreed to a prepayment, removing the need for a credit letter. It was unclear what would happen with the rest of the cargo.

Some U.S. customers can import without a letter of credit if they pay up front.

In July, the United States imposed sanctions on 13 senior Venezuelan officials, including the head of Venezuela’s army, the national police chief, the director of elections, and Zerpa.

At the time, a U.S. official warned that the administration of U.S. President Donald Trump was readying tougher measures that could be part of a “steady drumbeat” of responses to the Venezuelan crisis.

The most serious potential future step would be financial sanctions that would halt dollar payments for the country’ oil, starving the government of hard currency, or a total ban on oil imports to the United States, Venezuela’s biggest customer.

This month the United States imposed its first economic sanctions on Venezuela, banning debt trades for government-issued bonds and bonds issued by PDVSA. 

The problem could spread to more cargoes if banks refuse to extend credit to companies that have a commercial relationship with PDVSA, the sources said.

The sources said foreign oil companies funding projects in Venezuela and financial entities negotiating with PDVSA were avoiding signing agreements that could involve Zerpa.

Major oil company China National Petroleum Corporation (CNPC) has pulled back from funding some operations at its joint venture in Venezuela, a source at PDVSA said.

Neither PDVSA nor the Information Ministry responded to requests for comment. Zerpa was not immediately available to comment.

“PDVSA will face additional trouble just by keeping a sanctioned individual as CFO,” said Jorge Piedrahita, chief executive of broker-dealer Gear Capital Partners, who has been involved with Venezuelan debt for many years.

“Even the Russians and China’s Development Bank should be worried about signing something with him as they can be subject to collateral damage from sanctions just by association.”

A close Maduro ally, Zerpa, 34, rose to prominence by leading the bilateral Venezuela-China fund through which Caracas borrows from Beijing and repays loans in oil and fuel. Venezuela has borrowed over $60 billion from China, earning Zerpa the nickname “Zerpa the Chinese.”

Two additional financial sources said having Zerpa as the company’s head of finance had made it impossible for U.S. entities to assist PDVSA in debt refinancing, even before the U.S. economic sanctions.

Even basic activities, such as a conference call with bondholders, are now essentially unthinkable, the sources said.

Sanctions against Zerpa are having a knock-on effect on Wall Street, affecting imports of food and medicine to Venezuela made through funds headed by Zerpa, according to Delcy Rodriguez, president of Maduro’s new legislative assembly.

“This wasn’t done to affect Venezuelan officials but rather the entire population,” Rodriguez said on Monday.

Zerpa has held several high-profile posts including heading Venezuela’s state economic development bank Bandes and off-budget investment fund Fonden.

Opposition lawmakers have said he is an example of how the late Hugo Chavez’s “21st century socialism” has allowed unprepared political figures to wield power over financial deals.

“I have a negative opinion of him because of the way he handled the Chinese fund,” said opposition lawmaker Angel Alvarado, describing Zerpa as Maduro’s “finance tsar.”

U.S. pressure could force PDVSA to remove Zerpa from his post, at least on paper. However, PDVSA has had issues in the past that have led investors to tread cautiously with Venezuela.

“In part, the sanctions codify an already existing situation in which PDVSA and the Republic have little to no access to international financial markets due to the combination of political risk, unsustainable policies, concerns about legality

of new issues and reputational risk from providing funds to the Venezuelan government,” investment firm Torino Capital wrote in a report to clients after Friday’s sanctions.
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From: MeNeedIt

U.S. President Donald Trump is traveling to the state of Missouri to try to build support for his goal of reforming the country’s tax code.

Administration officials say the president will focus on explaining the need for tax reform, but not the specifics of a plan to do so, during a speech Wednesday in the city of Springfield.  They say he will promote tax cuts as a way to help American workers.

Trump has in the past proposed cutting the corporate tax rate from 35 percent to 15 percent.

The U.S. tax code has not undergone a significant overhaul since 1986.

Trump’s Republican Party controls both houses of the U.S. Congress, but failed in its earlier efforts to overhaul another major program as leaders were unable to get enough votes to change the health care system.
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From: MeNeedIt

Israeli scientists have developed a peptide that could be used in antimicrobial medicines which could help treat infections in a post-antibiotic era.  Faith Lapidus reports.
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From: MeNeedIt

Forests in the northeastern United States and southern Canada could be ravaged by tree-killing beetles in coming decades as a warming climate expands the pest’s habitat, a study has found.

Over the next 60 years, southern pine beetles could infest forests in new areas of the United States and Canada, disrupting industries and ecosystems alike, it said.

Warmer winter nights allow spread

The red-brown insects, the size of a grain of rice, known to feast on pine-tree bark, has typically only thrived in the hotter climate of Central America and the southeastern United States.

But in recent years warmer than usual winter nights have allowed it to survive the cold months and spread as far north as the U.S. state of New York. The coldest winter night has warmed by 6 to 7 degrees Fahrenheit (3 to 4 degrees Celsius) over the past 50 years in various parts of the United States, the study’s authors said.

Using computer-based climate models, they predicted the beetles should gradually march north along the Atlantic coast, infesting forests including in the U.S. states of Maine and Ohio all the way to Canada’s Nova Scotia.

Pest moves fast

By 2080, the pest should proliferate to red — and jack-pine forests in a 270,000 square miles (700,000 square km) area of the United States and Canada — roughly the size of Afghanistan, the researchers wrote in Nature Climate Change.

That would not only upend ecosystems, but also disrupt several key industries “in already struggling rural areas,” said lead author Corey Lesk, a researcher at Columbia University in New York.

“Residents of these regions could see a direct hit to their pocketbooks,” he told the Thomson Reuters Foundation on Tuesday in a phone interview.

Infestations costly to timber industry

Where the southern pine beetle has struck in the past, timber industries have been hard hit.

Infestations of pine beetles have cost an estimated $100 million a year in timber losses from 1990 to 2004 in the southeastern United States, according to the U.S. Forest Service.

Thousands of adult beetles can kill a tree in two to four months as the insects carve S-shaped tunnels under the bark, depriving their host of needed nutrients.

The tourism industry would also likely suffer, said Lesk, with the potential destruction of iconic forests including the Pine Barrens of New Jersey and Long Island.

Europe faces same problem

In Europe, previous research has shown that bark beetles have similarly been chewing through pine and spruce trees in forests from the Swiss Alps to Belarus alongside temperature increases.

Land managers have found the best way to fight off bark beetles has been thinning high-density forests and cutting out infested trees, though with limited success, the researchers said.

“The key question is whether those strategies would be able to keep up with rapid advance of the pest into regions with little or no experience managing it,” Lesk said.

 
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From: MeNeedIt

The U.S. space agency’s Cassini spacecraft will end its 13-year mission to Saturn in mid-September by transmitting data until the final moment before it plunges into the ringed planet’s atmosphere, officials said Tuesday.

Cassini, the first spacecraft to orbit Saturn, will make the last of 22 farewell dives between the planet’s rings and surface on Sept. 15. The spacecraft will then burn up as it heads straight into the gas giant’s crushing atmosphere.

Cassini’s final dive will end a mission that provided groundbreaking discoveries that included seasonal changes on Saturn, the moon Titan’s resemblance to a primordial Earth, and a global ocean on the moon Enceladus with ice plumes spouting from its surface.

“The mission has been insanely, wildly, beautifully successful, and it’s coming to an end in about two weeks,” Curt Niebur, Cassini program scientist, said on a telephone conference call with reporters from NASA’s Jet Propulsion Laboratory in California.

Cassini’s final photo as it heads into Saturn’s atmosphere will likely be of propellers, or gaps in the rings caused by moonlets, said project scientist Linda Spilker.

The spacecraft will provide near real-time data on the atmosphere until it loses contact with Earth at 4:54 a.m. PDT (1154 GMT) on Sept. 15, the National Aeronautics and Space Administration said.

Spilker said Cassini’s latest data on the rings had shown they had a lighter mass than forecast. That suggests they are younger than expected, at about 120 million years, and thus were created after the birth of the solar system, she said.

During its final orbits between the atmosphere and the rings, Cassini also studied Saturn’s atmosphere and took measurements to determine the size of the planet’s rocky core.

Cassini has been probing Saturn, the sixth planet from the sun, and its entourage of 62 known moons since July 2004. It has provided enough data for almost 4,000 scientific papers.

Since the craft is running low on fuel, NASA is crashing it into Saturn to avoid any chance Cassini could someday collide with Titan, Enceladus or any other moon that has the potential to support indigenous microbial life.

By destroying the spacecraft, NASA will ensure that any hitchhiking Earth microbes still alive on Cassini will not contaminate the moons for future study.
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From: MeNeedIt

The Middle East and North Africa region loses about $21 billion each year because of an inadequate supply of water and sanitation, the World Bank said Tuesday, warning that urgent action is needed to prevent ripple effects on stability and growth.

Poor management of water resources and sanitation in the world’s most water-scarce region costs about 1 percent of its annual gross domestic product, with conflict-hit states losing as much as 2 to 4 percent each year, the bank said in a report issued at the World Water Week conference in Stockholm, Sweden.

Deaths due to unsafe water and sanitation in some parts of the region, particularly countries affected by conflict, are higher than the global average, it added.

“As the current conflict and migration crisis unfolding in the Middle East and North Africa shows, failure to address water challenges can have severe impacts on people’s well-being and political stability,” the report said.

Peril in Yemen

In Yemen, which is reeling from more than two years of conflict, water supply networks serving its largest cities are at risk of collapse due to war-inflicted damage and disrepair, and about 15 million people have been cut off from regular access to water and sanitation, the U.N. children’s agency (UNICEF) said in a separate statement Tuesday.

In Syria, where the conflict is well into its seventh year, water has frequently been used as “a weapon of war,” with pumps deliberately destroyed and water sources contaminated, and about 15 million people are in need of safe water, including an estimated 6.4 million children, UNICEF said.

Overall, 183 million people lack access to basic drinking water in countries affected by conflict, violence and instability around the world, it added.

Better management

With the urban population in the Middle East and North Africa expected to double by 2050 to nearly 400 million, a combination of policy, technology and water management tools should be used to improve the water situation, the World Bank report said.

“Water productivity — in other words, how much return you get for every drop of water used — in the Middle East in general is the lowest on average in the world,” said Anders Jägerskog, a specialist in water resources management at the World Bank and one of the report’s authors.

Middle Eastern and North African countries are using far more water than can be replenished, said the report.

To reverse the trend, technology and innovation are “essential but not enough,” Jägerskog told the Thomson Reuters Foundation. Water governance — in particular, water tariffs and subsidies — must also be addressed, he said.

The region has the world’s lowest water tariffs and spends the highest proportion of GDP on public water subsidies. Such policies lead to excessive use of already scarce water supplies and are not sustainable, said Jägerskog.

Untreated wastewater

Another challenge is that more than half of the wastewater collected in the region is fed back into the environment untreated.

“Along with better water management, there is room for increasing the supply through nonconventional methods such as desalination and recycling,” Guangzhe Chen, senior director of the World Bank’s global water practice, said in a statement.

Improved water management could bring considerable financial returns, the report noted.

Governments could gain $10 billion annually by improving the storage and delivery of irrigation water to users, while increasing agricultural production by up to 8 percent, the report said.

Egypt, Syria and Iran — which have the largest proportion of irrigated land in the region — are the countries that could benefit most.
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From: MeNeedIt

A United Nations human rights panel called on the Russian Federation on Monday to step up prosecutions of racist attacks by ultra-nationalists and neo-Nazis and of hate speech by politicians.

Russian authorities must intensify measures to “vigorously combat racist behavior in sports, particularly in football, and ensure that sports regulatory bodies investigate manifestations of racism, xenophobia and intolerance,” the U.N. Committee against Racial Discrimination (CERD) said.

Fines or administrative sanctions should be imposed for such cases. The panel, referring to “the upcoming (2018) World Cup, expresses its concern that racist displays remain deeply entrenched among football fans, especially against persons belonging to ethnic minorities and people of African descent.”

Russia has pledged to crack down on racism and fan violence as it faces increased scrutiny before hosting the World Cup finals next summer. Russian Premier League champions Spartak Moscow and rivals Dynamo Moscow were each fined 250,000 rubles ($4,250) over fans’ racist behavior, the Russian Football Union (RFU) said last month.

The 18 independent experts, who reviewed Russia’s record and those of seven other countries at a session that ended on Friday, issued their findings on Monday.

Igor Barinov, head of the Federal Agency for Ethnic Affairs of the Russian Federation, told the panel on Aug. 4 that Moscow had taken measures against the propagation of racist ideas.

Russia consistently combats the glorification of Nazism — made a crime in 2014 — the propaganda of Nazi ideas and attempts at racial hatred or discrimination, he said. In 2016, officials had identified 1,450 extremist crimes, 993 had been sent to court and 934 people were found guilty, he said.

The U.N. panel said violent racist attacks had decreased in recent years, but added: “Violent racist attacks undertaken by groups such as neo-Nazi groups and Cossack patrols, targeting particularly people from Central Asia and the Caucasus and persons belonging to ethnic minorities including migrants, the Roma and people of African descent, remain a pressing problem.”

It called for an end to “de facto racial profiling by the police,” decrying arbitrary identity checks and “unnecessary arrests.”

“Racist hate speech is still used by officials and politicians, especially during election campaigns, and remains unpunished,” it said, recommending investigations.

Russia still lacks anti-discrimination legislation and the definition of extremist activity in its federal law “remains vague and broad,” it said.

Regarding Crimea, seized by Russia from Ukraine in 2014, the panel voiced concern at the fate of Crimean Tatar representative institutions, such as the outlawing of the Mejlis, the Crimean Tatar’s semi-official legislature, the closure of several media outlets, and “allegations of disappearances, criminal and administrative prosecutions, mass raids, and interrogations.”

 
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From: MeNeedIt

Peru expects a “very ambitious” free trade deal with Australia that covers goods, services and investments to be implemented as early as next year, Peru’s deputy trade minister said on Monday.

The two countries resumed free trade talks in Australia on Monday following a first round of negotiations in July in which “a lot of progress was made,” said Deputy Trade Minister Edgar Vasquez.

“This is going to be an agreement that we should be able to implement as soon as possible, starting in 2018,” Vasquez said by telephone in Lima. “That’s what we’d like to happen and what we think is viable.”

Peru and Australia are important global producers of minerals and their bilateral trade is relatively small.

Forging a free trade deal so quickly would mark one of the first steps toward reducing trade barriers in the Pacific region after U.S. President Donald Trump withdrew the United States from the 12-nation Trans-Pacific Partnership (TPP) trade agreement, which Australia and Peru had signed onto.

The remaining signatories to the TPP are in Australia this week discussing ways to salvage the deal. The 11 countries, which include Japan, Canada and Mexico, have a combined gross domestic product of $12.4 trillion.

Vasquez said the experience of negotiating the TPP had put Peru and Australia on solid footing for quickly hashing out a bilateral agreement.

“We also both have very open economies, so we’re really going to see a broad inclusion of sectors that will benefit from it – goods as well as services and investments,” Vasquez said.

Peru’s trade ministry said last month that rules of origin, migration and e-commerce were also under discussion and that Peru was eager to increase agricultural exports to Australia while spurring trade of mining and other professional services.

Australian trade officials were not immediately available for comment.

Peru’s exports to Australia amounted to $260 million last year, according to Peru’s trade ministry.
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From: MeNeedIt

Mexico’s President Enrique Pena Nieto will travel to China next week to discuss trade and investment, as Mexico looks for ways to decrease its dependence on NAFTA, especially trade with neighboring United States.

He will hold a bilateral meeting with China’s President Xi Jinping and participate in a summit of the BRICS nations, a grouping that includes Brazil, Russia, India, China and South Africa, on Sept. 4 and 5, Mexico’s Foreign Ministry said in a statement.

Pena Nieto’s visit comes as U.S., Mexican and Canadian negotiators meet Sept. 1 to 5 in Mexico City for a round of talks to revamp the 23-year-old North American Free Trade Agreement (NAFTA).

Mexico is trying to increase trade with Latin America and Asia, and on Monday took part in the first of three days of talks in Australia aimed at reviving the Trans-Pacific Partnership trade agreement, disrupted by the withdrawal of the United States.

On Sunday, U.S. President Donald Trump renewed his threat to scrap NAFTA, which he has cast as killing jobs and exacerbating the U.S. deficit, and ripped into trading partners Canada and Mexico.

Pena Nieto is scheduled to participate in a dialogue on emerging markets and a BRICS business forum, “where over 800 business leaders are expected to discuss opportunities for investment, trade, connectivity, financial cooperation, development and the blue economy, or sustainable use of marine resources,” said the ministry.

On Sept. 6, Pena Nieto will visit the offices of Alibaba Group Holding Ltd, China’s top e-commerce firm and one of Asia’s most valuable companies.

Mexico’s government is working to get Mexican products and services, especially from small- and medium-sized firms, onto Alibaba’s platform.
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From: MeNeedIt

Country music star Chris Young is donating $100,000 for disaster relief efforts in Texas.

Nashville-based Monarch Publicity says in a news release that Young lived in Arlington, Texas, before signing with RCA records and has family and close friends in Hurricane Harvey’s path.

Young says in the statement that communities in Texas “are going to be dealing with so much damage and loss of life for a long time to come.”

Young’s donation through his foundation will benefit the Red Cross and other disaster relief groups.  He says during tough times, “you turn to your friends to help those in need and that’s exactly what I’m doing.” He asked others to join his fundraising effort.

Young is a native of Murfreesboro, about 25 miles southeast of Nashville.
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From: MeNeedIt

Massive flooding caused by Tropical Storm Harvey along Texas’ refinery-rich coast could have long-standing and far-reaching consequences for the state’s oil and gas industry and the larger U.S. economy. The storm’s remnants left much of Houston underwater on Sunday, and the National Weather Service says it’s not over yet: Some parts of Houston and its suburbs could end up with as much as 50 inches (1.3 meters) of rain.

With the heavy precipitation expected to last for days, it’s still unclear how bad the damage will be, but there is already evidence of widespread losses. Key oil and gas facilities along the Texas Gulf Coast have temporarily shut down, and flooding in the Houston and Beaumont areas could seriously pinch gasoline supplies. Companies operating in the Gulf of Mexico have evacuated drilling platforms and rigs, crimping the flow of oil and gas.

Experts believe gasoline prices could increase as much as 25 cents a gallon.

Harvey’s toll on air travel in the U.S. is set to extend into Monday, with the tracking service FlightAware.com reporting that more than 1,400 flights already have been canceled. That’s in addition to more than 2,000 canceled over the weekend.

Economy watchers were looking to oil futures markets Sunday night and stock trading in the U.S. Monday morning for further indications of fallout.

Here’s what was known as of Sunday night:

Refineries

Nearly a third of U.S. refining capacity sits in low-lying areas along the coast from Corpus Christi, Texas, to Lake Charles, Louisiana. Beyond the shutdown of refineries at risk of a direct strike from high winds, there’s the threat of flooding and potential power outages for gasoline supplies.

Refinery outages continued to spread Sunday, with about 2.2 million barrels per day of refining capacity down or being brought down, according to analysts at S&P Global.

Valero Energy Corp., whose two big Corpus Christi refineries escaped damage, said it was working with federal and Texas agencies and its business partners to determine what infrastructure was needed to resume refinery operations.

Even before Harvey hit, the prospect of supply disruptions sent gasoline futures to $1.74 a gallon, their highest level since April, before they retreated to around $1.67 by Friday afternoon. At the pump, experts see gasoline increasing 10 cents to 25 cents a gallon.

Given the strictures faced by the refineries, “This is the dominoes starting to fall,” Patrick DeHaan, senior petroleum analyst for Gas Buddy, said Sunday. “This is sort of slowly turning out to be the worst-case scenario.”

Oil and gas

Companies have evacuated workers from oil platforms in the Gulf of Mexico. The U.S. Bureau of Safety and Environmental Enforcement said Sunday that workers had been removed from 105 of the 737 manned platforms used to pump oil and gas from beneath the Gulf.

The agency estimated that platforms accounting for about 22 percent of oil production and 26 percent of natural gas output in the Gulf had been shut down.

“After the storm has passed, facilities will be inspected,” the agency said in a news release. “Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line.”

Shipping

The shipping industry also is expected to be disrupted by the worst hurricane to hit the Texas coast in more than 50 years. Shipping terminals along the Texas coast shut down as the storm approached. Port operations in Corpus Christi and Galveston closed, and the port of Houston said container terminals and general cargo facilities closed around midday Friday. Rates increased for carrying freight between the Gulf and the U.S. East Coast.

Travel

More than 1,400 flight cancellations are reported for Monday, according to FlightAware.

Houston’s two airports were closed to all flights except those connected to relief efforts. Houston Bush Intercontinental Airport was not expected to reopen Monday until noon at the earliest. Houston International Airport was scheduled to remain closed until Wednesday morning.

Airlines were offering customers the chance to reschedule trips that would take them to Houston, San Antonio or Austin from Friday through the weekend.

Utilities

                   Researchers at Texas A&M University estimated that the storm would knock out power for at least 1.25 million people in Texas. They said the hardest-hit areas will include Corpus Christi, which is on the coast, and San Antonio, which is about 140 miles (225 kilometers) inland.

Insurance

A firm that does forecasts for insurance companies expects wind-damage claims in the low billions of dollars, and possibly reaching as high as $6 billion.

Risk Management Solutions Inc. said storm surges and inland flooding could be an even bigger source of losses. If the firm is correct, that would put homeowners and the government-backed National Flood Insurance Program at risk.

The flood program is run by the Federal Emergency Management Agency, which owes the Treasury about $23 billion in funds borrowed to cover the cost of past disasters, according to a recent report by the U.S. Government Accountability Office.

Homeowner policies offered by insurance companies typically don’t cover flood damage, yet a relatively small percentage of homeowners have flood insurance through the federal program.

Property data firm CoreLogic estimated that insured losses for home and commercial properties, as of Friday, would be $1 billion to $2 billion from wind and storm-surge damage.

 
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From: MeNeedIt

Expedia CEO Dara Khosrowshahi has been named Uber’s top executive, taking the difficult job of mending the dysfunctional ride-hailing giant and turning it from money-losing behemoth to a profitable company.

Uber’s fractured eight-member board voted to hire Khosrowshahi late Sunday, capping three days of meetings and the withdrawal of once-top candidate Jeffery Immelt, former CEO and still chairman of General Electric, two people briefed on the decision said. They didn’t want to be identified because the decision had not been officially announced as of Sunday night.

Khosrowshahi has been CEO of Expedia since August of 2015. The online booking site is one of the largest travel agencies in the world.

Self-driving cars

He’ll replace ousted CEO Travis Kalanick and faces the difficult task of changing Uber’s culture that has included sexual harassment and allegations of deceit and corporate espionage. Uber also is losing millions every quarter as it continues to expand and invest in self-driving cars.

The company currently is being run by a 14-person group of managers and is without multiple top executive positions that will be filled by Khosrowshahi.

Khosrowshahi has served as a member of Expedia’s board since it was spun off from IAC/InterActiveCorp. two years ago. An engineer who trained at Brown University, Khosrowshahi helped to expand IAC’s travel brands which were combined into Expedia, the company’s website says. He also serves on the boards of Fanatics Inc. and The New York Times Co.

Many problems to solve

He immediately will face troubles on many fronts, including having to deal with multiple board factions that had once pushed Immelt and Hewlett Packard Enterprise CEO Meg Whitman. Several factions of the board are suing each other.

Whitman, an investor in Uber, denied multiple times publicly that she was interested in the job. Although she spoke to some board members remotely Friday night, they could not guarantee an end to their infighting or that Kalanick would not become board chairman, said another person with knowledge of the board discussions. That person also didn’t want to be identified because board discussions are supposed to be private.

Khosrowshahi also must bring together a messy culture that an outside law firm found was rampant with sexual harassment and bullying of employees. He also must deal with driver discontent, although Uber already has started to fix that by allowing riders to tip drivers through its app.
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From: MeNeedIt