The Standard & Poor’s rating agency cut China’s credit rating Thursday due to its rising debts, highlighting challenges faced by Communist leaders as they cope with slowing economic growth.

The downgrade added to mounting warnings about the dangers of increasing Chinese debt, which has fueled fears of a banking crisis or a drag on economic growth. Moody’s Investors Service cut its own rating for China in May.

S&P lowered its rating on China’s sovereign debt by one notch from AA- to A+, still among its highest ratings. The agency had given a warning sign of a possible downgrade in March 2016 when it changed China’s outlook to negative.

“A prolonged period of strong credit growth has increased China’s economic and financial risks,” S&P said in a statement. “Although this credit growth had contributed to strong real GDP growth and higher asset prices, we believe it has also diminished financial stability to some extent.”

The ratings cut, announced after Chinese financial markets closed for the day, could raise Beijing’s borrowing costs slightly, but the more significant impact is on investor sentiment.

Phone calls to the Chinese Finance Ministry were not answered. After the Moody’s downgrade in May, the ministry said the agency had used improper methods and misunderstood China’s economic difficulties and financial strength.

Communist leaders have cited reducing financial risk as a priority this year. They have launched initiatives to reduce debts owed by state companies, including by allowing banks to accept stock as repayment on loans. But private sector analysts say they are moving too slowly.

Beijing relied on repeated infusions of credit to prop up growth after the 2008 global crisis.

That helped propel total nongovernment debt to the equivalent of 257 percent of annual economic output by the end of last year, according to the Bank for International Settlements. That is unusually high for a developing country and up from 143 percent in 2008.

Chinese economic growth fell from 14.2 percent in 2007 to 6.7 percent last year, though that still was among the world’s strongest.

The government is trying to make the economy more productive by giving market forces a bigger role. It is trying to shrink bloated industries such as steel and cement in which supply exceeds demand, which has depressed prices and led to financial losses.

Beijing is trying to steer the economy to slower, more sustainable growth based on domestic consumption instead of investment and exports. But growth has dipped faster than planners wanted, raising the risk of politically dangerous job losses. Beijing has responded by flooding the economy with credit.

Official efforts to rein in debt “could stabilize the trend of financial risk in the medium term,” S&P said. “However, we foresee that credit growth in the next two to three years will remain at levels that will increase financial risks gradually.”

S&P kept its outlook for China stable. It said that reflected expectations the country will “maintain robust economic performance over the next three to four years.”

“We may raise our ratings on China if credit growth slows significantly and is sustained well below the current rates while maintaining real GDP growth at healthy levels,” S&P said. “A downgrade could ensue if we see a higher likelihood that China will ease its efforts to stem growing financial risk and allow credit growth to accelerate to support economic growth.”

 
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From: MeNeedIt

On the sidelines of the United Nations General Assembly in New York on Wednesday, business and political leaders around the world met to urge cooperation on such issues as trade, investment and international technology to help boost globalization. Without integration between nations, such issues as the environment, economic development and the well-being of societies suffer. VOA’s Daniel Schearf reports from New York.
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From: MeNeedIt

A chief gripe with Apple Watch is that it requires you to keep an iPhone with you for most tasks. The inclusion of GPS last year helped on runs and bike rides, but you’re still missing calls and messages without the phone nearby.

A new model with its own cellular-network connection is Apple’s next step toward an untethered world. Now you can make and receive calls and messages on the watch while leaving your phone at home.

But the watch still needs regular contact with an iPhone, and for most tasks, the phone needs to be on and connected, even if it’s nowhere nearby. So, you can’t get away with ditching the iPhone altogether. (Android users have their own wristwear options, including Samsung Gear and Android Wear watches, some of which can already manage their own network connections.)

The new Apple Watch Series 3, distinguished by a red crown, comes out Friday starting at about $400. You can forgo cellular, and the red crown, for $70 less. Or get a first-generation model, without GPS, for about $250.

Where it helps

You might not want to bring your phone on a short jog; the watch can still keep you in touch. Or you can leave the phone home while walking the dog or performing a quick errand.

You need a data add-on from the same wireless provider as your phone. It typically costs $5 or $10 a month and uses the phone’s data allotment.

While the watch technically has its own phone number, the major carriers have worked out number syncing. Calls to your phone will go to the watch, and calls from the watch will appear on caller ID with your regular number. Same goes for texts and iMessage chats.

Calls use the watch’s speaker and microphone, or wireless earphones. Colleagues say call quality was fine. It came in handy for sneaking in runs during conference calls (though if you’re my boss, just kidding! Now, about that raise …).

Phone calls and iMessage chats work on the watch even if your phone is off, as do turn-by-turn maps and queries to the Siri voice assistant. For texts, the phone needs to be on — somewhere. With the phone on, you can perform a variety of other tasks, including checking weather apps, Yelp recommendations and notifications that go to the phone.

Coming soon: the ability to stream Apple Music, even with the phone off. Unfortunately, this doesn’t apply to rival music services or Apple’s podcast app.

Limitations

Because the watch screen is small, many apps offer only a sliver of information and refer you back to the phone to view more. That was little more than an annoyance when the phone was in the same room. If you’ve left the phone behind, though, you’ll be left hanging.

You can also run into trouble while roaming, particularly internationally. For one thing, engineers weren’t able to squeeze in support for cellular frequencies around the world. And outside the U.S., only a handful of carriers are supporting the cellular watch. In any case, don’t forget to switch to airplane mode on flights.

Cellular data also drains the battery quicker. Apple’s promised 18 hours of battery life includes about four hours of such use. An hour of phone calls over LTE will drain the battery completely.

I got dropped from two conference calls because the battery was low to begin with. Plan ahead. A spare watch charger at your desk helps for those days you’re dumb enough to leave your phone on the kitchen counter.

Embracing the tether

It can be handy to untether the watch at times, but it’s not always necessary. Even when tied to the phone, Series 3 offers improvement such as tracking elevation, so you get credit for climbing stairs or jogging up a hill. And you can now hear Siri responses on the watch speaker, something enabled by the new version’s faster processor.

Software update

For owners of past models, a software update out this week, watchOS 4, will bring easier access to music playback controls when exercising — just swipe left. There are more prompts when reaching or nearing daily goals, and options for multiple sports in a single workout.

A new heart rate app now shows heart rate at rest and averages when walking or recovering from exercise. These can help you gauge your overall fitness.

And if your heart rate is high without any signs of exercise, you’ll get an alert. You enable this when you first open the heart rate app. It can signal health problems, though Apple is stopping short of telling you to see a doctor or visit the emergency room, as the watch isn’t marketed — or certified — as a medical device.
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From: MeNeedIt

The collapse of a prominent Native American media network has triggered debate over how Native media can best serve the interests of communities across Indian Country and counter stereotypes and misinformation in the mainstream press.

Native American journalism dates back to the Cherokee Phoenix, founded in 1828 to advocate against the U.S. government policy of assimilation and forced removal. Many newspapers have since come and gone, victims of high costs and low revenue.

The most recent casualty was Indian Country Today Media Network (ICTMN), whose publisher, Ray Halbritter of the Oneida Indian Nation, this month announced that after 36 years in business, the network would take a break to explore “alternative business models.”

The news disappointed many, who surmised that the venture was too costly to support.

“This is a really tough environment for anyone that’s in the advertising side, and Indian Country Today was selling advertising,” said independent journalist and blogger Mark Trahant.

Others suggest ICTMN failed because it lost touch with the audience it intended to serve.

Humble beginnings

ICTMN began as the Lakota Times, founded in 1981 by Oglala Lakota journalist and editor Tim Giago, serving South Dakota’s Pine Ridge Indian Reservation. A weekly community newspaper, independently owned, it gradually expanded its coverage to national issues and was renamed Indian Country Today.

New York State’s Oneida Nation, a tribe which has profited through the gaming industry, bought the paper in 1998. They later renamed it ICTMN and moved operations to New York City. In 2013, they ended the print edition and shifted online. Last April, ICTMN launched a glossy, bimonthly magazine, Indian Country, at considerable expense.

“One of the things I think they forgot was all these folks here in Pine Ridge, Rosebud, Cheyenne River, Crow Creek or Standing Rock reservations,” said Giago, now publisher of Native Sun News Today. “They live way out in the middle of nowhere. A lot of them don’t have money to buy computers, least of all to hook up to the internet.”

Giago and others have also criticized ICTMN for hiring non-Native American writers and editors.

“Most of the other Native publications over the past couple of generations were written and edited by people who were deeply involved in their respective communities,” said Mohawk journalist Doug George-Kanentiio, vice president of the Hiawatha Institute for Indigenous Knowledge and a former editor of the now-defunct newspaper Akwesasne Notes.

He also questioned whether a network owned and funded by a tribal government could guarantee editorial independence.

“Whoever is writing the checks by and large determines the content,” he said.

‘Crabs in a bucket’

ICTMN op/ed editor Raymond Cook bristles at the criticisms.

“People always poke at success,” he said, citing the analogy of crabs in a bucket, “where one crab is trying to get out of the bucket, and then the others pull him down.”

First, he explained why ICTMN shut down.

“The state of New York recently handed out several gaming licenses, and now these non-tribal entities are trying to creep into the casino market,” he said. “So, the Oneida had to readjust its revenue projections. And reluctantly, with tears in their eyes, they put us on hiatus.”

He denies ICTMN lost touch with tribes.

“New York City has a larger Native American population than any other U.S. city,” he said. “So we never moved out of Indian Country. If we had stayed in South Dakota, we’d still be waiting for internet connection.”

He defends ICTMN for hiring non-native writers, whom he calls ‘indigenous identifiers,’ as well as targeting non-Native audiences.

“’Cause we can’t talk to ourselves only,” he said.

The paper regularly interviewed prominent U.S. politicians, including President Barack Obama.

“We not only educated our readers on the views of these politicians on Indian-focused issues, but we also helped ensure that Native America was on the radar of many of the top power brokers in our country and beyond,” said ICTMN’s Washington bureau chief Rob Capriccioso, a member of the Sault Tribe of Chippewa Indians.

Looking forward

At their recent annual meeting, members of the Native American Journalists Association discussed setting up a national Native American wire service to serve both tribal and mainstream media.

“Instead of trying to create a new vehicle, we’d just create a new driver,” journalist Trahant said.

In the meantime, ICTMN’s Cook said his network is looking for a qualified party to take over operations, something that would require an annual investment of $2.5 million to $3 million until 2021.

“Basically, we’d sell it to them for $10, and they can take over operations, as long as they can guarantee our journalistic standards,” he said. “It could be a tribe, a business, a government — anything, as long as it’s based in Indian Country and it’s run by Natives.”
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From: MeNeedIt

A private U.S.-based security firm is linking an Iranian government-sponsored hacking group to cyber-attacks targeted at organizations across the world.

The security firm FireEye said Wednesday the Iranian hackers used malware to attack aerospace and petrochemical firms in the United States, Saudi Arabia and South Korea.

The hacking group, dubbed APT33 (advanced persistent threat) by the FireEye researchers, used phishing emails and fake domain names to gain access to computer systems of the targeted companies.

The report suggests the hackers target the companies in an effort to “enhance Iran’s domestic aviation capabilities or to support Iran’s military and strategic decision making vis-a-vis Saudi Arabia.”

“We believe the targeting of the Saudi organization may have been an attempt to gain insight into regional rivals, while the targeting of South Korean companies may be due to South Korea’s recent partnerships with Iran’s petrochemical industry as well as South Korea’s relationships with Saudi petrochemical companies,” the report reads.

The FireEye report says the hackers retained access to the companies’ computers for between four and six months at a time, during which the hackers were able to steal data and drop off malware that could potentially be used to destroy the infected computers.

It is difficult to accurately attribute cyber-attacks, but FireEye says it linked the hackers to Iran in part by tracking an online handle, “xman_1365_x,” that was accidentally left in the malware coding.

The report also notes references to the Farsi language in the malware code and that the hackers’ workdays appear to correspond with the Iranian time zone, and the Saturday to Wednesday workweek used in the country.
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From: MeNeedIt

After a troubled youth himself, Phillip Cohen made it a practice to hire people at his woodworking business who have also struggled with addiction and mental health issues. But when an employee died from a drug overdose, he adopted a zero-tolerance policy.

“I think I have saved lives,” says the owner of Cohen Architectural Woodworking in St. James, Missouri — an area hit very hard by the nation’s growing opioid epidemic. Opioids range from prescription pain medicine like oxycodone to illegal drugs like heroin.

Cohen still hires former drug addicts, felons and people who have been traumatized in life. One person, now a top employee, was hired right after he finished drug rehabilitation. Another used to sell illegal drugs. Still, Cohen says, if a worker fails a periodic random drug or alcohol test, “we’ll fire them on the spot.”

The epidemic of drug use — a report from the surgeon general last year said that 20 million Americans have a substance use disorder — is forcing many small business owners to think about what they would do if they suspect an employee is abusing drugs or alcohol.

Between 1999 and 2015 the number of overdose deaths from opioids and heroin quadrupled, the National Institute on Drug Abuse says. The government also reported more than 15 million adults with what’s called alcohol use disorder in 2015.

Over 70 percent of employers with 50 or more workers have been affected by prescription drugs, according to a survey released this year by the National Safety Council. But more than 80 percent don’t have a comprehensive drug-free workplace policy.

Although Cohen understood the dangers of drugs and knew that some staffers had a history of substance abuse, he wasn’t prepared when a worker overdosed in 2010, three days after the staffer attended a leadership conference.

“I didn’t care what people did at first,” says Cohen, whose workers use saws and other potentially dangerous machinery to create reception desks, cabinets and furniture for businesses, schools and health care facilities. But the devastating death of an employee prompted him to hire an attorney to write a tough drug policy that workers must read and sign.

“You have to draw the line somewhere,” says Cohen, who also brings in counselors and people who run support groups to help staffers who are struggling with personal problems.

Many small business owners don’t think ahead and create a written policy on alcohol and substance abuse, says employment law attorney Shira Forman. That forces them to be reactive, trying to figure out what to do when presented with an employee who shows up drunk, high or hung over, whose work is suffering or who causes an accident.

“It’s often not something that an employer knows how to deal with until they’re confronted with a scenario,” says Forman, who works at Sheppard, Mullin, Richter & Hampton in New York.

Having a policy in place doesn’t make it easier for a boss to confront a staffer they believe to have a drug or alcohol problem. It’s hard on an emotional level, especially if the employee denies there’s an issue and gets angry. But there can also be legal questions that must be considered before an owner broaches the topic.

While a staffer’s behavior might seem to point to a substance abuse problem, it’s often not a clear-cut situation, says Michael Schmidt, an employment law attorney with Cozen O’Connor in New York. An employee may have a prescription for opioids, and therefore be protected by federal, state or local laws. A staffer might have shaking hands, a sign of possible alcohol withdrawal but also a symptom of anxiety or a condition like Parkinson’s disease.

Even when it’s clear that the problem is due to drugs or alcohol, many owners seek help from a lawyer or HR professional. David Grant was taken by surprise when an employee at his public relations company told him that a co-worker had gotten drunk at a lunch with a client.

Grant turned to his human resources provider and a consultant on dealing with alcoholics.

“It was a world I don’t know anything about,” says Grant, whose eponymous company is based in New York. “I was aware of how litigious everyone is, so I did it by the book.”

Grant’s HR provider had created a substance abuse policy that he followed. He told the staffer she had a choice: go into rehabilitation treatment for a month or be fired. She chose treatment, which Grant paid for. He also warned she’d be dismissed if it happened again. And it did; a few weeks after she returned to work she was again drunk at a client lunch.

“I fired her instantly,” Grant says. He had to follow some painful advice from his consultants: “You can’t back off. You can’t be a nice guy.”

At Abbey Research, a market research firm based in Philadelphia, the substance abuse policy calls for employees to be suspended if they fail a random drug test or tell management they have a drug problem.

Their jobs will be held until they pass a drug test, since the company wants to give people a second chance, says Kristen Donnelly, who is in charge of human resources. But if they fail a second time, they’ll be fired.

The company, which seeks to help people who are struggling economically and personally, is located in a neighborhood where drug use has taken a toll. Two staffers have been suspended and then fired for drug use in the 18 months since Donnelly has headed HR.

But even afterward, the company has helped them find resources aimed at getting them back on their feet. “First and foremost they’re human beings, and they’re human beings with a disease,” Donnelly says.
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From: MeNeedIt

Michael Phelps wondered if watching others compete at the world championships would pique his desire for another comeback.

Nope.

Phelps said Tuesday he has “no desire” to return to competitive swimming, but he is eager to stay involved with the sport and cheer on those who follow in his enormous wake.

In an interview with The Associated Press while promoting a healthy pet food campaign, Phelps said he is excited about having his second child and building a life beyond swimming.

“For me, it’s about being happy where I am and happy where my family is,” Phelps said. “We have more goals we want to accomplish outside the sport.”

It was around this time four years ago when Phelps got serious about ending his first retirement, but he now seems content with his decision to step away again after the Rio Olympics.

His wife, Nicole, is about four months pregnant. The couple already have a 16-month-old son, Boomer.

“I’ve got no desire — no desire — to come back,” the 32-year-old Phelps said flatly.

Phelps has attended a handful of swimming meets since the Rio Games, where the winningest athlete in Olympic history added to his already massive career haul by claiming five gold medals plus a silver. A few months ago, he conceded to the AP that he wasn’t sure how he would feel about a possible comeback after watching the worlds in Budapest, Hungary.

“We’ll see if I get that itch,” he said in April.

Turns out, it had no impact.

Phelps said the second-biggest meet after the Olympics “truly didn’t kick anything off or spike any more interest in coming out of retirement again.”

He is excited to follow the development of his heir apparent, Caeleb Dressel, who emerged as the sport’s newest star by winning seven gold medals at Budapest.

The 21-year-old Floridian joined Phelps and Mark Spitz as the only swimmers to accomplish that feat at a major international meet.

“I’m happy Caeleb decided to go off this year instead of last year,” quipped Phelps, who won 23 golds and 28 medals overall in his Olympic career. “I’m kind of happy to see him swimming so well when I’m not there.”

While he still travels extensively for his many sponsors, Phelps said he’s much more involved in his wife’s second pregnancy than he was before Boomer’s birth, when he was consumed by full-scale training for the Olympics.

“It’s definitely different going through it again,” he said.

Boomer, meanwhile, is a chip off the old block.

“He skipped the walking part and went right to running,” Phelps said, chuckling. “He just scoots around the house. It’s funny when we get him in the pool. He basically just splashes around the whole time. He’s literally nonstop. As soon as he wakes up from a nap or his night’s sleep, he’s just go, go, go. There’s no time for slow moving in our family. He likes to go fast. I guess that’s a good thing.”

Boomer is even starting to show some good form in the pool. His mom and Phelps’ longtime coach, Bob Bowman, have detected a bit of the stroke that was his father’s strongest.

“Nicole and Bob both say he’s got a good butterfly technique that he’s working on,” Phelps said. “I guess he’s seen his dad doing it a couple of times and kind of picks it up. He’s also now in a stage where it’s like all five senses are coming together. He feels everything, recognizes everything. It’s really fun to watch, as a dad, just watching these transitions in his life.”

In his latest business endeavor, Phelps is spearheading a marketing campaign for Nulo Pet Food, which he describes as a healthy alternative for dogs and cats. He’s an investor in the company and accompanied in ads by his French bulldogs, Juno and Legend.

“Our bodies are like a high-performance car. You have to make sure you’re putting the correct fuel in your body,” Phelps said. “We obviously treat our pets like human beings. I’d like my animals to be fed in the right way, with good nutrition and healthy foods. If we can do that with a company that’s putting good, natural ingredients into a pet food, it makes sense for me with what I’m doing in my own life. It’s something that goes hand in hand.”

With Dressel and Katie Ledecky now leading the American team, the U.S. is expected to remain the world’s dominant swimming country heading into the 2020 Tokyo Olympics.

Even without Phelps.

“It’s time to kind of move on,” he said, “and watch other people come into their own.”
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From: MeNeedIt

Actress Jamie Lee Curtis will reprise her role as the resilient protagonist in 2018’s Halloween, Universal Pictures says, 40 years after she made her movie debut in the original horror movie of the same name and became Hollywood’s “scream queen.”

The studio said Friday that Curtis, 58, will again play Laurie Strode, the baby sitter who faced the deadly masked serial killer Michael Myers in John Carpenter’s 1978 horror Halloween. The 2018 film will see Curtis’ Strode face “her final confrontation” with Myers, Comcast Corp.-owned Universal said.

Carpenter will return to executive produce and consult on the new film.

Halloween has become one of Hollywood’s most famous slasher film franchises, with nine sequels and reboots over the years, the last being Rob Zombie’s 2009 Halloween II.

Curtis’ last appearance in the franchise was in 2002’s Halloween: Resurrection, in which her character was killed.

Universal said the 2018 film “carves a new path from the events in the landmark 1978 film,” suggesting that it will ignore the events in the 2002 film.
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From: MeNeedIt

Employing an array of giant telescopes positioned in the New Mexico desert, astronomers have started a massive surveying project aimed at producing the most detailed view ever made of such a large portion of space using radio waves emitted from throughout the Milky Way and beyond.

The National Radio Astronomy Observatory announced the project this week, saying the Very Large Array will make three scans of the sky that’s visible from the scrubland of the San Augustin Plains. It is one of the best spots on the planet to scan space, with 80 percent of the Earth’s sky visible from the location.

The array works like a camera. But instead of collecting light waves to make images, the telescopes that look like big satellite dishes receive radio waves emitted by cosmic explosions and other interstellar phenomenon.

Astronomers expect the images gathered by the array will allow them to detect in finer detail gamma ray bursts, supernovas and other cosmic events that visible-light telescopes cannot see due to dust present throughout the universe. For example, the array can peer through the thick clouds of dust and gas where stars are born.

Scientists involved in the project say the results will provide valuable information for astrophysics researchers.

“In addition to what we think [the survey] will discover, we undoubtedly will be surprised by discoveries we aren’t anticipating now,” project director Claire Chandler said in a statement. “That is the lesson of scientific history and perhaps the most exciting part of a project like this.”

The survey is possible because of a major technological upgrade at the Very Large Array, which was initially conceived in the 1960s and built in the 1970s. The antennas relied on their original electronics and processing systems for years until a recent overhaul made the system capable of producing much higher resolution images.

The work done at the Very Large Array is similar to that of the Hubble Space Telescope — making high-quality images so scientists can better study objects in the universe and the physics of how they work.

Research efforts elsewhere search the galaxy for signals or evidence of extraterrestrials, but the New Mexico operation would almost certainly get involved if signals are received, said Very Large Array spokesman Dave Finley.

“I do think when the time comes that they find a signal that they think is the real thing, the first phone call they will make will be to us. They’ll want an image of that region,” Finley said.

Astronomers using the array also expect to see more examples of powerful jets of superfast particles propelled by the energy of massive black holes at the center of galaxies. This could help in understanding how galaxies grow over time.

The National Radio Astronomy Observatory in 2013 invited astronomers from around the world to submit ideas and suggestions for the survey. Based on the recommendations, scientists and engineers designed the survey and ran a test in 2016. Approval for the full survey was granted this year.

The survey will involve about 5,500 hours of observing time. Data from the three separate scans will be combined to produce the radio images.

The scanning began Sept. 7 and the raw data will be available to researchers as quickly as the observations are made.

The seven-year project will not come at an additional financial cost because the array already has a $15 million annual budget for making observations 24 hours a day for various scientific requests. More of that time will now be dedicated to the project.
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From: MeNeedIt

Two of Italy’s biggest coffee houses are reinforcing their brands with flagship cafes in Milan near the spot where U.S. rival Starbucks is set to begin operations next year.

Lavazza opens its first flagship cafe in the coffee-obsessed city on Tuesday, not far from the renovated 19th century palazzo where Starbucks will open its first Italian store, a ‘Reserve Roasteries’ outlet offering specialty blends and fine food.

Another top Italian brand, illycaffe, opened its own luxury cafe close to the Starbucks site in May, in a cozy courtyard in Milan’s most fashionable street.

Lavazza, which is opening near the city’s famous La Scala opera house, and illycaffe both deny their moves are a response to a global rival’s impending arrival, a first step in what may become a 200-store expansion.

Industry experts suspect it is no coincidence.

“Lavazza and illycaffe are the purists of coffee, they want to show they are there when Starbucks arrives,” says Jean-Paul Gaillard, who ran Nespresso for 10 years before founding the Ethical Coffee Company, a Swiss firm selling coffee pods.

Milan’s battle of the coffee palaces reflects global competition among major brands to capture a growing market for people who are prepared to pay a premium for quality espresso coffees in upmarket boutique cafes.

Nestle last week bought California-based Blue Bottle Coffee, one of the top boutique U.S. chains whose single-origin and cold-brewed coffees have proven popular with hipsters and have made inroads into the Starbucks franchise.

JAB Holdings, the investment vehicle of Germany’s Reimann family, has also been buying up independent start-ups selling premium brews around the world, from Europe to the Americas.

Starbucks Chief Executive Howard Schultz hopes his company’s arrival in Milan, which he calls the home of the “perfect espresso”, and the inspiration for his Starbucks vision, will show discerning Italian coffee-lovers that “we got it right.”

“We are happy to hear about Lavazza’s growth,” said a Starbucks spokesman when asked to comment on Lavazza’s opening.

The U.S. chain will open its 2,400-square-meter cafe in late 2018, seeking to attract tourists, young Italians and the business crowd. If the Milan experiment succeeds, Starbucks and its local partner, Antonio Percassi, could open more than 200 stores in Italy over six years, according to Percassi.

Some analysts are skeptical that Starbucks can crack a market where espresso typically sells for just one euro ($1.20), a fraction of the price of a Starbucks coffee.

But the local brands are also gambling Italians will spend much more than one euro for a restaurant-style experience: illycaffe charges around three times that for coffee brought to the table.

Nestle, JAB Holdings and Starbucks are the three largest players in the global coffee market, followed by several mid-tier players including Lavazza and illycaffe.

“As the biggest get bigger, mid-tier companies are in a position where they must either expand or risk being left behind or swallowed up by their massive rivals,” said Matthew Barry, an analyst at market research firm Euromonitor International.

Lavazza’s chief executive and some of its family owners will cut a ribbon to launch their cafe, where customers can sip a blend of coffee specifically crafted for the store, taste gourmet food and buy single-origin coffees.

“The opening of the new flagship store has nothing to do with Starbucks,” a Lavazza spokeswoman said, adding that it was solely aimed at giving people an exclusive Lavazza experience.

The group is primarily a roaster and supplier to independent cafes and restaurants rather than a retailer and its new store is a way of boosting brand visibility on the high street.

Lavazza went on an acquisition spree three years ago, buying up three coffee suppliers in Europe and Canada, boosting sales to nearly 2 billion euros last year. It has overtaken Starbucks in supermarket sales, Euromonitor International says.

Illycaffe sells its coffee both through independent cafes and 230 mono-brand stores, some of them directly owned, in 43 countries, and says it wants to develop the network further, though not via major acquisitions.

“The new store wants to be a landmark for the global nomad in search for the real Italian lifestyle experience,” illycaffe said, without commenting on the arrival of Starbucks.

Milanese coffee society is divided on whether Starbucks can make its name at the high-end of Italian market, the world’s fourth-largest coffee consumer.

“I am curious about Starbucks, I will give it a try when it arrives in Milan,” office worker Giuseppe Gaggiano, 55, said at a small, upmarket independent cafe close to the Starbucks site.

However, another customer there, Alberto Paparusso, 31, said he wouldn’t abandon his usual cafe: “I don’t like Starbucks coffee. It’s not worth going there.”

($1 = 0.8371 euros)
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From: MeNeedIt

Mexico’s economy minister said on Monday a successful retool of the North American Free Trade Agreement (NAFTA) would hinge on two or three complex areas that he called “elephants in the room,” just days before the next round of treaty talks in Canada.

Speaking at an event in Mexico City, Ildefonso Guajardo said four chapters in the agreement could be renegotiated in the third round of talks, due to take place Sept. 23-27 in Ottawa.

The areas cover smaller companies, transparency and food safety.

The “elephants,” such as the U.S. trade deficit with Mexico and rules of origin, will determine the success of the trade treaty’s renegotiation, he said. Rules of origin specify the percentage of components in a product that must be from the three NAFTA nations for it to qualify as duty free.

“This challenge of resolving two or three un-traditional topics at the trade negotiation tables is what is going to determine if, at the end of the day, we’re going to have an agreement or not,” Guajardo said in a Forbes Mexico talk.

In addition, Guajardo added that as many as 13 other chapters would also be tough to negotiate.

Asked by journalists if Mexico would accept national content rules that would require a portion of products to be made in the United States, the minister said the topic had yet to reach the negotiating table.

“We would analyze it, but I believe as of today there is no trade agreement that contains this type of clause,” he said.

Guajardo reiterated that Mexico was ready to modernize the agreement, which U.S. President Donald Trump has threatened to scrap, and to find solutions with the United States and Canada.
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From: MeNeedIt

The WTO dispute settlement system is “deficient” and has often ruled in favor of free trade that overlooks details of a trade agreement, U.S. trade envoy Robert Lighthizer said on Monday.

Speaking at the Center for Strategic and International Studies, Lighthizer, a trade lawyer, made clear that the administration was poised to push for major changes to the global trade system during upcoming meetings of the Geneva-based trade body. WTO member countries will meet in Buenos Aires on Dec 10.

U.S. President Donald Trump called the World Trade Organization a “disaster” during his presidential campaign and his administration has sought to unilaterally go after countries like China that it thinks is breaking trade rules.

“There are a number of issues on which there is pretty broad agreement that the WTO dispute settlement understanding is deficient,” said Lighthizer, highlighting problems with WTO staffing and transparency.

“The United States sees numerous examples where the dispute settlement process over the years has really diminished what we’ve bargained for or imposed obligations that we do not believe we agree to,” he said.

He added: “There have been a lot of cases in the trade remedies laws where in my opinion the decisions are really indefensible.”

Since its launch in 1995 the WTO has become the main venue for resolving trade disputes between countries. The Trump administration has begun to launch trade investigations under statutes seldom used in the WTO era, including a “Section 301” probe of China’s intellectual property practices.

Lighthizer did not threaten a U.S. withdrawal from the WTO, but emphasized his own dissatisfaction with some of its rulings.

In a letter in March, the Trump administration made clear that U.S. law supersedes WTO rules — a view that could be invoked should Congress adopt policies that are later challenged by other member countries as violating WTO rules.

“We’ve had tax laws struck down, we’ve had other provisions where the WTO has taken…the decision they were going to strike down something they thought shouldn’t happen, rather than

looking at the agreement as a contract,” he said.

Lighthizer emphasized that the Trump administration was reviewing all trade agreements and would seek to renegotiate those that did not benefit U.S. workers and businesses.

“I believe, and I think the president believes, that we must be proactive,” he said, “We must demand reciprocity in home and international markets. So expect change, expect new approaches and expect action.”
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From: MeNeedIt