Federal Reserve Chairman Jerome Powell, pledging to “strike a balance” between the risk of an overheating economy and the need to keep growth on track, told U.S. lawmakers on Tuesday that the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending.

Fed policymakers anticipate three rate increases this year, and Powell gave no indication in prepared remarks to the House Financial Services Committee that the pace needs to quicken even as the “tailwinds” of government stimulus and a stronger world economy propel the U.S. recovery.

“The [Federal Open Market Committee] will continue to strike a balance between avoiding an overheating economy and bringing … price inflation to 2 percent on a sustained basis,” Powell said in prepared remarks for his first monetary policy testimony to Congress as Fed chief.

“Some of the headwinds the U.S. economy faced in previous years have turned into tailwinds,” Powell said, noting recent fiscal policy shifts and the global economic recovery. Still, “inflation remains below our 2 percent longer-run objective. In the (FOMC‘s) view, further gradual rate increases in the federal funds rate will best promote attainment of both of our objectives.”

The testimony sent Powell’s first signal as Fed chief that the massive tax overhaul and government spending plan launched by the Trump administration will not prompt any immediate shift to a faster pace of rate increases. “Gradual” has been the operative word since the Fed began raising rates under Powell’s predecessor, Janet Yellen, in late 2015.

The Fed is expected to approve its first rate increase of 2018 at the next policy meeting in March, when it will also provide fresh economic projections and Powell will hold his first press conference.

“This is a continuation of where this Fed was under Chair Yellen,” said Robert Albertson, principal and chief strategist at Sandler O‘Neill & Partners in New York.

“They are normalizing, they are not tightening … The surprises, if we are going to see them, are going to be after more data comes out in the next month or two,” and accounts for things like the tax cuts and whether business investment spending continues higher, he said.

Market reaction was muted. U.S. stocks were trading slightly lower while the dollar .DXY was stronger against a basket of currencies. Prices of U.S. Treasuries were mixed.

Valuation pressures

Powell’s appearance before the House panel is his first as Fed chief. He used his prepared remarks to strike notes likely to be welcomed by the Republican majority on the panel – including promises of “transparency” and a nod to the monetary policy rules some of them favor.

“I am committed to clearly explaining what we are doing and why we are doing it,” Powell said.

But in his remarks and in a monetary policy report issued to Congress by the Fed last week he also stuck close to a safe script, mentioning none of the new initiatives that some of his colleagues have pushed for, such as a review of the Fed’s system for managing inflation.

That report acknowledged “valuation pressures” in parts of the economy, and noted the recent return of volatility in stock markets.

Though rising long-term interest rates and recent equity market volatility have tightened financial conditions, Powell said, “we do not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation.”

Rather, “the robust job market should continue to support growth in household incomes and consumer spending, solid economic growth among our trading partners should lead to further gains in U.S. exports, and upbeat business sentiment and strong sales growth will likely continue to boost business investment,” he said.
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From: MeNeedIt

Just as “Black Panther” is setting records at the box office, a new study finds that diverse audiences are driving most of the biggest blockbusters and many of the most-watched hits on television.

UCLA’s Bunche Center released its fifth annual study on diversity in the entertainment industry Tuesday, unveiling an analysis of the top 200 theatrical film releases of 2016 and 1,251 broadcast, cable and digital platform TV shows from the 2015-2016 season. Among its results: minorities accounted for the majority of ticket buyers for five of the top 10 films at the global box office, and half of ticket buyers for two more of the top 10.

“There has been some progress, undeniably. Things are not what they were five years ago,” said Darnell Hunt, director of the center, which focuses on African American studies, at the University of California, Los Angeles. “People are actually talking about diversity today as a bottom-line imperative as opposed to just the right thing to do. We’ve amassed enough evidence now that diversity does, in fact, sell.”

Minorities make up nearly 40 percent of the U.S. population, but Hispanic and African-American moviegoers over-index among moviegoers. According to the Motion Picture Association of America, Latinos make up 18 percent of the U.S. population but account for 23 percent of frequent moviegoers. Though African Americans are 12 percent of the population, they make up 15 percent of frequent moviegoers.

UCLA found that films with casts that were 21 to 30 percent minority regularly performed better at the box office than films with the most racially and ethnically homogenous casts.

Hunt believes that the wealth of data, as well as box-office successes like “Black Panther,” have made obvious the financial benefits of films that better reflect the racial makeup of the American population.

“I think the industry has finally gotten the memo, at least on the screen in most cases, if not behind the camera,” said Hunt. “That’s where there are the most missed opportunities.”

The report, titled “Five Years of Progress and Missed Opportunities,” covers a period of some historic high points for Hollywood, including the release of the best picture-winning “Moonlight,” along with fellow Oscar nominees “Hidden Figures” and “Fences.”

But researchers found the overall statistical portrait of the industry didn’t support much improvement in diversity from 2015 to 2016.

“With each milestone achievement, we chip away at some of the myths about what’s possible and what’s not,” said Hunt. “Every time a film like this does really well, every time we see a TV show like ‘Empire,’ it makes it harder for them to make the argument that you can’t have a viable film with a lead of color. Or you can’t have a universally appealing show with a predominantly minority cast. It’s just not true anymore because the mainstream, itself, is diverse.”

Some of the largest disparities for minorities detailed by the UCLA report were in roles like film writers (8.1 percent of 2016’s top films) and creators of broadcast scripted shows (7.1 percent). Hunt blamed the lag behind the camera on, among other factors, executive ranks that are still overwhelmingly male.

“It’s a white-male controlled industry and it hasn’t yet figured out how to incorporate other decision-makers of color and women into the process. So you have these momentary exceptions to the rule,” said Hunt, pointing to “Black Panther,” which has grossed $700 million worldwide in two weeks of release.

Such films, he said, show the considerable economic sense of making movies and television series that don’t ignore nearly half of their potential audience.

“It’s business 101,” Hunt said.
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From: MeNeedIt

U.S. President Donald Trump will meet with senators and Cabinet officials on Tuesday to discuss ways to lower the cost of the nation’s biofuels policy to oil refiners, according to sources familiar with the matter.

The meeting reflects rising concern in the White House over the current state of the U.S. Renewable Fuel Standard, a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel, after a Pennsylvania refiner blamed the regulation for its recent bankruptcy.

The meeting will include Republican Senators Ted Cruz of Texas, Pat Toomey of Pennsylvania, Chuck Grassley and Joni Ernst of corn state Iowa, along with Environmental Protection Agency Administrator Scott Pruitt, Agriculture Secretary Sonny Perdue, and Energy Secretary Rick Perry, according to the sources.

The meeting will also include White House legislative director Marc Short, who will seek to ensure any agreement can be achieved through executive orders and regulatory actions defensible in court, the sources said.

Representatives for those officials, and the White House, declined to comment.

U.S. farm groups urged Trump in a letter on Monday not to weaken the RFS, calling it a critical engine of rural jobs. “Any action that seeks to weaken the RFS for the benefit of a handful of refiners will, by extension, be borne on the backs of our farmers,” according to the letter.

Under the RFS, refiners must earn or purchase biofuel blending credits called RINs to prove to the federal government that enough biofuels are being blended into their gasoline and diesel to comply with the policy.

As biofuels volumes quotas have increased over the years, however, so have prices for the credits – meaning refiners that buy them instead of acquire them by blending fuels themselves are facing rising costs.

Oil refiner Philadelphia Energy Solutions (PES), which employs more than 1,000 people in a key electoral state, declared bankruptcy last month and blamed the regulation for its demise. Reuters reported other factors may also have played a role in the company’s bankruptcy, including the withdrawal of more than $590 million in dividend-style payments from the company by its investor owners.

Two of the sources familiar with the agenda of the Tuesday meeting said at least four options aimed at reducing the cost of RINs to refiners like PES will be considered — though they noted the effort would be constrained by political and legal realities that have derailed previous reform efforts.

Prices of RINs tumbled by nearly 20 percent in the past week on expectations of a regulatory tweak.

One idea would be to count U.S. ethanol exports toward annual biofuels volumes mandates that are currently focused purely on domestic usage, an idea the sources said had been studied by Agriculture Secretary Perdue who now favors it.

Another idea would be to place a cap on the price of a RIN.

Senator Cruz late last year suggested capping RIN prices at 10 cents each, far below the current value of over 60 cents, in a move that was roundly rejected by biofuels advocates.

The meeting will also consider measures to remove speculation from the RIN market, potentially by limiting RIN transactions to those directly involved in generating and consuming them: blenders and refiners, the sources said.

Any plan would also likely include a concession to the ethanol industry, they said, such as a waiver to allow gasoline containing 15 percent ethanol to be sold year round. Sales of high-ethanol blends are currently restricted in the summer due to concerns over smog.

The meeting could also look at solutions focused more directly on refiner PES — like waiving its current RIN obligation valued at about $350 million, the sources said. But any such move would likely draw a backlash from other refiners who have no hope of receiving such a waiver.

 
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From: MeNeedIt

Only days after the spectacular liftoff of what is currently the heaviest space rocket, the privately-built Falcon Heavy, NASA announced the next launch will carry a specially built atomic clock. The new device, much smaller and sturdier than earth-bound atomic clocks, will help future astronauts navigate in deep space. VOA’s George Putic reports.
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From: MeNeedIt

The governor of Sao Paulo and likely centrist presidential candidate Geraldo Alckmin said on Monday that he would privatize Brazil’s state-run oil company Petroleo Brasileiro SA if he wins the elections in October.

Alckmin, who has single digit support in opinion polls, said during a television interview with Band TV that he favored private ownership of Petrobras, as Brazil’s biggest company is known, as long as the sale was conducted within a strict regulatory framework.

Once a taboo issue in Brazilian politics because of national sovereignty concerns, the privatization of Petrobras is set to become a campaign issue this year as Brazil struggles to bring an unsustainable budget deficit under control.

Brazil’s left fiercely rejects the sale of Petrobras, but the leftist leader leading early opinion polls, former President Luiz Inacio Lula da Silva, will likely be barred from running because of a corruption conviction and there are no obvious politicians who can fill his shoes.

It is not clear where the far right candidate Jair Bolsonaro, who is currently second in opinion polls, stands on relinquishing state control of Petrobras.

But his economic policy advisor Paulo Guedes told Valor newspaper in an interview published on Monday that he favored selling all state companies to raise 700 billion reais that would help pay off one fifth of Brazil’s public debt.
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From: MeNeedIt

British singer-songwriter Ed Sheeran was named the world’s best-selling artist of 2017 on Monday, thanks to his album “Divide” and singles “Shape of You” and “Perfect.”

The International Federation of the Phonographic Industry (IFPI) said that “Divide,” which was released in March 2017, went multi-platinum in 36 nations.

Sheeran’s pop ballad “Shape of You” was also the best-selling single globally of 2017 and has been certified as multi-platinum in 32 nations, the organization said.

The IFPI said it was the first time that a recording artist has had both the best-selling album and single of the year.

Sheeran, 27, first found success in England in 2009 and 2010 by self-releasing his music online.

“Ed is truly an incredible songwriter, vocalist and performer, whose ability to tell stories and make people feel is what stands him out from the crowd,”  Max Lousada, chief executive of recorded music for Sheeran’s Warner Music Group record label, said in a statement on Monday.

Sheeran, known for his ginger hair and shy demeanor, delighted fans last month by announcing his engagement to his childhood friend Cherry Seaborn, who he has known since he was 11 years old.

Canadian rapper Drake and his album “More Life” was named the second biggest seller globally for 2017 and the IFPI said Taylor Swift’s “Reputation” was third, despite being released only in November 2017.
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From: MeNeedIt

The Trump Organization said Monday it has made good on the president’s promise to donate profits from foreign government spending at its hotels to the U.S. Treasury, but neither the company nor the government disclosed the amount or how it was calculated.

Watchdog groups seized on the lack of detail as another example of the secrecy surrounding President Donald Trump’s pledges to separate his administration from his business empire.

“There is no independent oversight or accountability. We’re being asked to take their word for it,” said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington. “Most importantly, even if they had given every dime they made from foreign governments to the Treasury, the taking of those payments would still be a problem under the Constitution.”

Trump Organization Executive Vice President and Chief Compliance Counsel George Sorial said in a statement to The Associated Press that the donation was made on Feb. 22 and includes profits from Jan. 20 through Dec. 31, 2017. The company declined to provide a sum or breakdown of the amounts by country.

Sorial said the profits were calculated using “our policy and the Uniform System of Accounts for the Lodging Industry” but did not elaborate. The U.S. Treasury did not respond to repeated requests for comment.

Watchdog group Public Citizen questioned the spirit of the pledge in a letter to the Trump Organization earlier this month since the methodology used for donations would seemingly not require any donation from unprofitable properties receiving foreign government revenue.

Robert Weissman, president of Public Citizen, said that the lack of disclosure was unsurprising given that the Trump’s family businesses have “a penchant for secrecy and a readiness to violate their promises.”

“Did they pay with Monopoly money? If the Trump Organization won’t say how much they paid, let alone how they calculated it at each property, why in the world should we believe they actually have delivered on their promise?” Weissman said.

Ethics experts had already found problems with the pledge Trump made at a news conference held days before his inauguration because it didn’t include all his properties, such as his resorts, and left it up to Trump to define “profit.” The pledge was supposedly made to ameliorate the worry that Trump was violating the Constitution’s emoluments clause, which bans the president’s acceptance of foreign gifts and money without Congress’ permission.

Several lawsuits have challenged Trump’s ties to his business ventures and his refusal to divest from them. The suits allege that foreign governments’ use of Trump’s hotels and other properties violates the emoluments clause.

Trump’s attorneys have challenged the premise that a hotel room is an “emolument” but announced the pledge to “do more than what the Constitution requires” by donating foreign profits at the news conference. Later, questions emerged about exactly what this would entail.

An eight-page pamphlet provided by the Trump Organization to the House Oversight Committee in May said that the company planned to send the Treasury only profits obviously tied to foreign governments, and not ask guests questions about the source of their money because that would “impede upon personal privacy and diminish the guest experience of our brand.”

“It’s bad that Trump won’t divest himself and establish a truly blind trust, and it’s worse that he won’t be transparent,” said Rep. Elijah Cummings, D-Maryland, ranking member on the House Oversight Committee. He called the Republicans refusal to do oversight, such as subpoena documents, that would shed light on Trump’s conflicts of interest “unconscionable.”
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From: MeNeedIt

A freak warming around the North Pole is sending a blast of Arctic cold over Europe in a sign of “wacky” weather that may happen more often with man-made global warming, scientists said on Monday.

On the northern tip of Greenland, the Cape Morris Jesup meteorological site has had a record-smashing 61 hours of temperatures above freezing so far in 2018, linked to a rare retreat of sea ice in the Arctic winter darkness.

“It’s never been this extreme,” said Ruth Mottram, a climate scientist at the Danish Meteorological Institute (DMI). Warmth was coming into the Arctic both up from the Atlantic and through the Bering Strait, driving and cold air south.

Around the entire Arctic region, temperatures are now about 20C (36°F) above normal, at minus eight degrees Celsius (17.6°F), according to DMI calculations.

To the south, a rare snow storm hit Rome on Monday and some Brussels mayors planned to detain homeless overnight if they refused shelter with temperatures set to fall as low as minus 10 Celsius (14 Fahrenheit) in the coming week.

Hit by easterly winds from Siberia, cities from Warsaw to Oslo were colder than minus 8C.

As long ago as 1973, a study suggested that an ice-free Arctic Ocean could make regions further south colder. That “warm Arctic, cold continent” (WAC#C) pattern is sometimes dubbed “wacc-y” or “wacky” among climate scientists.

“Wacky weather continues with scary strength and persistence,” tweeted Professor Lars Kaleschke, a professor at the University of Hamburg.

“The question is whether this weather will happen more often. This is just one event so it’s hard to make a causal relationship,” he told Reuters.

Sea ice shrinking 

Scientists say a long-term shrinking of sea ice on the Arctic Ocean, linked to global warming, exposes warmer water below that releases more heat into the atmosphere. That in turn may be disrupting the high altitude jet stream.

“The jet stream becomes wavier, meaning that colder air can penetrate further south and warmer air further north,” said Nalan Koc, research director of the Norwegian Polar Institute.

Arctic Ocean sea ice is at a record low for late February at 14.1 million square kilometres (5.4 million), according to the U.S. National Snow and Ice Data Center. That is about a million less than normal, or roughly the size of Egypt.

Erik Solheim, head of the U.N. Environment, said the rare weather fits a wider pattern driven by a build-up of greenhouse gases, mainly from burning fossil fuels from cars, factories and power plants.

“What we once considered to be anomalies are becoming the new normal. Our climate is changing right in front of our eyes, and we’ve only got a short amount of time to stop this from getting significantly worse,” he told Reuters.

Under the 2015 Paris climate agreement, almost 200 nations agreed to limit a rise in temperatures to “well below” 2 degrees Celsius (3.5 Fahrenheit) above preindustrial times, while pursuing efforts to limit it to 1.5C (2.7F).

Polar vortex

“The risk of an ice-free Arctic in summer is about 50 percent or higher” with warming of between 1.5 and 2.0 degrees, according to a leaked draft of a scientific report by a United Nations panel of scientists, obtained by Reuters.

The World Meteorological Organization said the chill in Europe was caused by a “Sudden Stratospheric Warming” above the North Pole that led to a split in the polar vortex, a cold area of air above the Arctic that spilled cold south.

A big problem in figuring out whether the Arctic warmth is driven by human activities or natural variations is a lack of measuring stations. There are no thermometers at the North Pole and satellite measurements go back only to the late 1970s.

On the Norwegian archipelago of Svalbard, temperatures were just above freezing, with rain, and about 13.4C (24F) above the long-term average on Sunday.

“There have also been recent winters with similar deviations,” said Rasmus Benestad, senior scientist at the Norwegian Meteorological Institute.

U.S. President Donald Trump, who plans to quit the Paris Agreement, has often expressed doubts about mainstream global warming science during cold spells, such as at New Year in the eastern United States.

And Mottram at DMI said Europe’s winters had become less severe. “It’s not actually that cold. Its just our perceptions have shifted from a normal winter.”

 
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From: MeNeedIt

Greece entered a last round of reform talks with creditors Monday, just five months before the country’s massive rescue program ends — and with the government and central bank publicly disagreeing on how to finance the nation after the bailout.

Government officials said the talks with representatives of Greece’s European partners and the International Monetary Fund in Athens would cover privatizations and energy.

But the negotiations were upstaged by a continued spat between Greece’s central bank governor, Yannis Stournaras, and the government over financing policies after the bailout runs out in August. The country will then have to raise money from international investors in bond markets — at a much higher rate than bailout creditors charge.

Stournaras repeated his argument that the government should consider setting up a precautionary credit line from the bailout rescuers that would secure the country — and its banks — cheap funding if needed, particularly as the country’s bonds are still rated well below investment grade. The finance ministry countered that this would create market jitters as to Greece’s ability to finance itself.

“Regardless of intentions, (Stournaras’) position … creates objective doubts regarding the prospects of the Greek economy, increases uncertainty and impedes Greece’s smooth exit from the bailout,” said Franciscos Koutentakis, the ministry’s general secretary for fiscal policy.

Greece signed the first of its three multi-billion euro bailouts in 2010, after it admitted its budget deficit was much higher than initially reported and investors stopped buying Greek bonds.

To secure the funds that kept it solvent, the country has slashed spending and public sector incomes, hiked taxes and extensively reformed its economy.

But the measures worsened a recession that wiped out more than a quarter of the economy and sent unemployment spiraling up by 16 percentage points between 2008 and 2016. The third bailout runs out in August.

Over the past eight months, the country has raised money from bond markets on three occasions through issues that were amply oversubscribed but offered high interest rates to attract investors.

Stournaras argued Monday that the possibility of an official credit line, to be used if needed, “should not be dramatized” as it would lower borrowing costs and “offer security as to state and bank access to financing after the end of the bailout.”

He also warned that the economy would remain under supervision from its European creditors until 75 percent of its debts have been repaid. Presenting the Bank of Greece’s annual report for 2017, Stournaras said economic growth is expected to accelerate to 2.4 percent this year, mostly on the wings of higher tourism receipts and exports.

Also Monday, some 2,000 municipal employees marched through central Athens to protest planned changes in school policy that unions say would threaten jobs in municipally-run kindergartens. Minor scuffles with police broke out outside parliament, but no arrests or injuries were reported.
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From: MeNeedIt

The Weinstein Company’s board of directors says the company is expected to file for bankruptcy protection after last-ditch talks to sell its assets collapsed.

Now-disgraced movie mogul Harvey Weinstein co-founded the company in 2005. He was fired last October after being accused of sexual assault and harassment by dozens of women. Weinstein Co. has been searching for a financial savior ever since. Weinstein has denied all allegations.

The Los Angeles Times reports the board said Sunday night it has no choice but to pursue bankruptcy.

The decision came after the board was unable to revive a deal to sell the struggling studio for about $500 million to an investor group.

As part of the pact, the bidders had promised to raise at least $40 million for a fund to compensate Weinstein’s accusers.
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From: MeNeedIt

A new super-material — stronger, lighter and cheaper than steel — has emerged from scientists’ labs. It’s not a high-tech nano-polymer or some new alloy. It’s wood. VOA’s Steve Baragona has more.
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From: MeNeedIt

Around the world, one in three people suffer from something known as “hidden hunger.” Their bellies may be full, but the food they are eating is not nutritious. A San Francisco food technology firm is working in Liberia to see if it can make a popular Liberian dish more nutritious. Michelle Quinn reports.
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From: MeNeedIt