Economy & business
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Treasury Chief to Congress: Raise Debt Limit Before August

Treasury Secretary Steven Mnuchin told lawmakers on Wednesday that they should vote to increase the government’s borrowing authority — and avert a disastrous economic default — before their August recess.

Within hours, the conservative House Freedom Caucus said it would oppose such a vote unless certain conditions are met.

The timeline is earlier than previous estimates. It had been expected that Congress wouldn’t have to act on the politically painful measure until sometime this fall, but tax revenues are coming in lower than previously estimated.

Mnuchin also urged the House Ways and Means Committee to pass the debt limit legislation as a bill without controversial additions, such as spending cuts sought by conservatives, that could complicate its approval.

“We can all discuss how we cut spending in the future and how we deal with the budget going forward but it is absolutely critical … that we keep the credit of the United States as the most critical issue,” Mnuchin said.

Pelosi favors debt limit increase

Democrats, including House Minority Leader Nancy Pelosi of California, have promised to support a debt limit increase provided it’s not weighed down by GOP policy changes. But such a vote is sure to be painful for conservative Republicans who opposed hiking the debt limit, presently set at almost $20 trillion.

In a statement, the Freedom Caucus said it would oppose a “clean raising of the debt ceiling,” and “we demand that any increase of the debt ceiling be paired with policy that addresses Washington’s unsustainable spending by cutting where necessary, capping where able, and working to balance in the near future.”

 

The Freedom Caucus counts several dozen conservatives who wield considerable clout in the House.

 

‘Extraordinary measures’ 

White House budget director Mick Mulvaney told a separate House panel that the reason for the new deadline is that “receipts currently are coming a little bit slower than expected.”

 

Mnuchin said in a letter to lawmakers in March that that he has started employing bookkeeping measures to avoid breaching the debt limit.

Those maneuvers, set out in law, are deemed “extraordinary measures,” but in reality they have been employed numerous times by Mnuchin’s predecessors to buy time until Congress could pass the legislation needed to raise the borrowing limit.

The Congressional Budget Office has estimated that the bookkeeping maneuvers Mnuchin can use will be exhausted by sometime in the fall.

Mnuchin has urged lawmakers to move quickly to remove investor doubt about any potential default. Lawmakers had been expected to wait until September or later to act.

 

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Arts & Entertainment
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Ariana Grande Suspends World Tour, Cancels Some Euro Stops

Ariana Grande suspended her Dangerous Woman world tour and canceled several European shows Wednesday due to the deadly bombing at her concert in Manchester, England.

Shows Thursday and Friday in London were canceled, along with concerts through June 5 in Belgium, Poland, Germany and Switzerland. Refunds will be granted, the pop star’s managers said in a statement. The tour was suspended to “further assess the situation and pay our proper respects” to the 22 dead and dozens injured in Monday’s suicide attack in the northern England town.

Grande’s tour is to pick up June 7 in Paris, followed by several more countries in Europe before moving on to Latin America, Asia and elsewhere.

“We ask at this time that we all continue to support the city of Manchester and all those families affected by this cowardice and senseless act of violence. Our way of life has once again been threatened but we will overcome this together,” the statement said.

Grande, who reportedly is in Boca Raton, Florida, with her family, has kept a low profile since the blast. An 8-year-old girl was among the dead. Grande took to Twitter afterward to say she was “broken” and “i don’t have words.”

The tour also features rapper BIA, whose real name is Bianca Landrau, and singer Victoria Monet.

Some bands — including Blondie and Take That — canceled shows after the blast, but representatives for several music acts — including Celine Dion, Shawn Mendes, Guns N’ Roses and Phil Collins — said they will honor their European dates this summer.

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Arts & Entertainment
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Messi Loses Supreme Court Appeal of Tax-fraud Conviction

Professional soccer player Lionel Messi has lost his Supreme Court appeal of a tax-fraud conviction in Spain.

The court confirmed the 21-month prison sentence handed to Messi for defrauding tax authorities of 4.1 million euros ($4.6 million) in 2007-09. He is not expected to go to prison because sentences of less than two years for first offenses are usually suspended in Spain.

The court maintained the 2 million-euro ($2.24 million) fine handed to the Argentina player in last year’s trial.

Messi’s father, Jorge Horacio Messi, also was convicted of tax fraud, but the court reduced his sentence from 21 months to 15 months because he cooperated by returning the defrauded money to the tax authorities. He also is not expected to face prison time.

FC Barcelona, the club for which Messi plays, said it was fully behind the player and his family.

“The club reiterates, once again, its full support for Leo Messi, his father Jorge Messi, and his family,” Barcelona spokesman Josep Vives said in a statement. “Barcelona President Josep Maria Bartomeu contacted the player’s family to communicate this support. The family was very grateful, not only for today’s gesture, but also for the support the player and his family have received from the club throughout this process. The club will continue to stand with Leo Messi, his father and his family.”

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Science & Health
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New WHO Chief Stresses Health as Human Right

Tedros Adhanom Ghebreyesus, the World Health Organization’s newly elected director-general, says health as a human right is at the core of his vision for the organization he soon will lead.

The former Ethiopian health and foreign minister is the first African chosen to head the organization, which was created 69 years ago.  

After a long, bruising campaign that began in 2015, Tedros beat out two other contenders, David Nabarro of Britain and Pakistani physician Sania Nishtar, for the post by winning 133 of the votes cast by 185 WHO member states.

“The outcome of the voting was very, very clear,” said Tedros.  “Having confidence from the majority of member states gives me legitimacy to really implement the vision that I have already outlined.”

Tedros’ goals

That vision included five promises, which Tedros made to the World Health Assembly during a final campaign pitch preceding Tuesday’s secret ballot vote.

He said that he would “work tirelessly” to fulfill the WHO promise of universal coverage and would ensure “a robust response for emergencies to come.”

He promised to strengthen the frontlines of health, transform the World Health Organization into a world class force and lastly “place accountability, transparency and continuous improvement at the heart of WHOs culture.”

At a news conference in Geneva, he said the concept of health as a human right would be at the heart of whatever he did.

“Half of our population does not have access to health care,” he said.  That, he said, could and should be remedied through universal health care coverage, which would address the issue of health as a human right and act as a spur to development.  

“All roads should lead to universal health coverage and it should be the center of gravity of our movement,” he said.  

Tedros begins his five-year term as director-general on July 1, succeeding Margaret Chan, who has headed the WHO for the past 10 years.  

The newly elected director general said he wants to reform and transform the World Health Organization into a better, more responsive agency.    

As Ethiopia’s minister of health, Tedros led a comprehensive reform of the country’s health system, including the expansion of the country’s health infrastructure and health insurance coverage.

Resources a constant priority

As WHO leader, Tedros said one of his first orders of business would be to strengthen the organization’s ability to respond swiftly and effectively to emergencies because “epidemics can strike at any time” and the WHO must be prepared.

“The campaign has ended, as you know, officially, but I think the work begins actually now.  I know it is very difficult.  It is going to be tough,” he said.  

One of the major difficulties is that of money.  Reform, tackling emerging and ancient diseases take a lot of money, something the World Health Organization, which reportedly is struggling to close a $2.2 billion gap, does not have.

The problem is likely to be made even worse given the Trump administration announced budget cuts to global health programs, including a 32 percent cut to USAID (U.S. Agency for International Development) and between 20 percent and 30 percent cuts for scientific research institutes.

The United States is the biggest WHO donor.  U.S. President Donald Trump has suggested funding cuts to the organization might be in the offing.

Tedros observed that it is the poor that are the most affected by big financial cuts.

“I hope this will be understood before finalizing the proposal.  I believe this will be taken into consideration,” he said.

He can take heart in that a congratulatory statement on his election from Tim Price, U.S. Health and Human Services Secretary did not threaten any funding cuts.  Instead, he told Tedros the United States looked forward to working with him on changing the World Health Organization for the better.

“The United States is committed to helping advance reforms and cultivating greater global health security,” he said.

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Silicon Valley & Technology
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Instagram, Snapchat Rated ‘Worst’ Platforms for Young People

Instagram and Snapchat are the worst social media platform for young people’s mental health, and YouTube is the most positive, a new study suggests.

The ranking comes in a report from the British Royal Society for Public Health, which ranked the sites’ impact on young people.

“Social media has been described as more addictive than cigarettes and alcohol, and is now so entrenched in the lives of young people that it is no longer possible to ignore it when talking about young people’s mental health issues,” said Shirley Cramer, the chief executive of the RSPH.

“It’s interesting to see Instagram and Snapchat ranking as the worst for mental health and well being, both platforms are very image-focused and it appears they may be driving feelings of inadequacy and anxiety in young people.”

For the study, researchers surveyed about 1,500 young people age 14 to 24 from Britain, asking them to score the impact social media sites had on 14 “health and well-being” issues. Those include anxiety, depression, quality of sleep, body image, loneliness and real-world friendships and connections.

According the RSPH, YouTube was the most positive, followed by Twitter, Facebook, Snapchat and Instagram.

“Social media has dramatically shifted how we socialize, communicate, and form relationships with each other,” said Laci Green, a professional health YouTuber with 1.5 million subscribers. “Its impact cannot be understated.”

She added that since Instagram and Facebook “present highly curated versions of the people we know and the world around us, it is easy for our perspective of reality to become distorted.”

To combat the negative influence of social media, the researchers recommend adding pop ups that warn users of heavy usage, which was supported by 71 percent of the people surveyed.

Another recommendation is for social media companies that can tell from a user’s post that they’re in distress could discretely point them toward help. That was supported by 80 percent of those surveyed. Finally, nearly 70 percent said social media sites should note when a photo has been manipulated.

“As the evidence grows that there may be potential harms from heavy use of social media, and as we upgrade the status of mental health within society, it is important that we have checks and balances in place to make social media less of a wild west when it comes to young people’s mental health and well being,” said Cramer. “We want to promote and encourage the many positive aspects of networking platforms and avoid a situation that leads to social media psychosis which may blight the lives of our young people.”

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Silicon Valley & Technology
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Amazon Founder Gives $1 Million to Support Press Freedom

Amazon founder Jeff Bezos has promised to donate $1 million to support press freedom, the Reporters Committee for Freedom of the Press announced Tuesday.

“This generous gift will help us continue to grow, to offer our legal and educational support to many more news organizations, and to expand our services to independent journalists, nonprofit newsrooms and documentary filmmakers,” Reporters Committee Chairman David Boardman said. “We’ll also be better positioned to help local newsrooms, the places hit hardest by the disruption in the news industry and whose survival is every bit as crucial to American democracy as those entities headquartered in Washington and New York.”

The gift from Bezos, who also owns The Washington Post newspaper, is the largest the organization has ever received.

The Reporters Committee also announced that it will support First Look Media and help administer its Media Press Freedom Defense Fund of up to $6 million. First Look Media was established by eBay founder Pierre Omidyar.

Bezos and Omidyar have cited a need for efforts to support an independent press.

Last month, Omidyar’s philanthropy, the Omidyar Network, promised $100 million over the next three years to support journalism and fight fake news.

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Economy & business
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Moody’s Cuts China Credit Rating One Notch

Moody’s Investors Service downgraded China’s credit rating Wednesday – from Aa3 (Double A-3) to A1 – saying it expects China’s economy to erode in coming years as growth slows and its debt burden continues to rise. The downgrade comes as the government faces new financial challenges after years of credit-fueled stimulus.

Craig Erlam, senior market analyst at foreign exchange firm Oanda, said the credit downgrade comes as no surprise. “Because talk of Chinese debt and concerns about the size of Chinese debt has been going on for the last few years.  They seem to be very reliant on these high levels of growth, which has been slowing,” according to Erlam.

China’s economy, the second largest in the world, grew 6.7 percent in 2016, down from 6.9 percent the previous year, the slowest pace since 1990. Erlam says the next few years could be challenging.

“They’ve [the Chinese government] talked about wanting to move away from an investment and export-led economy and focus more on domestic consumption and look at a more sustainable model. But, as we’ve seen over the last couple of years, as soon as it runs into any difficulties – it seems to revert back to where it was a couple of years ago and start spending more money on infrastructure.”

Moody’s expects the government’s direct debt burden to rise to 40 percent of GDP by 2018 and closer to 45 percent by the end of the decade. That’s still well below the 60 percent debt to GDP warning line for the European Union.

China’s Finance Ministry said the downgrade overestimates the risks of rising debt and claims it was based on “inappropriate methodology.” The downgrade is likely to increase the cost of borrowing, but analysts say the one-notch downgrade remains comfortably within the investment grade rating range.

Triple A is the highest rating for creditworthiness, followed by Double A, then Single A. C represents the weakest creditworthiness and means default is imminent.  

China’s Shanghai Composite Index fell more than 1 percent after the credit downgrade while the value of the yuan slipped briefly 0.1 percent against the U.S. dollar.

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Arts & Entertainment
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Serena Williams Accepts a New Challenge – in Silicon Valley

Tennis star Serena Williams has 39 Grand Slam titles, four Olympic medals, major endorsement deals and her own line of clothing and accessories. Now she is embarking on a new mission: She says she wants to help tech companies diversify their workforces and solve one of the industry’s most vexing problems.

Williams, 35, will get her chance as she joins a Silicon Valley boardroom. Online poll-taking service SurveyMonkey announced Williams’ appointment to its board on Wednesday, along with Intuit CEO Brad Smith.

“I feel like diversity is something I speak to,” Williams said in an interview with The Associated Press. “Change is always happening; change is always building. What is important to me is to be at the forefront of the change and to make it easier for the next person that comes behind me.”

Williams didn’t offer specifics about her goals as a corporate director. She implied that her very presence can help push the company — and, by extension, the industry as a whole — in a more diverse direction.

Individual board members don’t usually exert great influence over the companies they oversee, although they are often compensated handsomely in cash and stock for their part-time work. SurveyMonkey, a private company, didn’t say how much Williams will be compensated.

Valley diversity

Silicon Valley’s lack of diversity has become a recurring source of embarrassment in a region that has long sought to position itself as an egalitarian place that doesn’t favor one gender, ethnicity or race over another. Yet that philosophy hasn’t been reflected in high-tech workforces , despite the efforts of companies such as Google, Apple and Facebook to fix the problem.

Williams has been hanging around Silicon Valley more frequently now that she is engaged to high-tech entrepreneur, Alexis Ohanian, the co-founder of the online forum Reddit. Like many other African-Americans, she says she’s disappointed that the vast majority of high-paying technology jobs are filled by white and Asian men.

At SurveyMonkey, which employs about 650 workers, only 27 percent of technology jobs are filled by women. Just 14 percent of its total payroll consists of African-Americans, Latinos or people identifying themselves with at least two races, according to numbers the company provided to the AP.

What she can do

Williams’ appointment is part of the solution, according to SurveyMonkey CEO Zander Lurie. “My focus is to bring in change agents around the table who can open our eyes,” he said.

Diversity advocates say women and minorities add value to corporate boards — as well as companies’ executive ranks — by offering new perspectives and advocating for a broader range of a company’s stakeholders, whether that’s customers, shareholders or employees.

In a report on France’s quota requirements for corporate boards, the business research group Conference Board found that the real value of adding women came from the fact that they were more likely to be outsiders. They were more likely to be foreigners, have expertise in more diverse business issues than men and more likely to have risen through the ranks outside traditional networks, such as elite universities. This, in itself, can “substantively” improve the collective decision-making of a board, according to the report.

Stepping stone

Racism is something Williams confronted and overcame at an early age when she began playing a predominantly white sport. She grew up to become the top-ranked female tennis player in the world.

Diversifying Silicon Valley isn’t the only item on Williams’ agenda. Like a lot of rich athletes, she is interested in becoming more involved in the business opportunities amid the high-tech boom in Silicon Valley. She says she is already exploring other opportunities in the area, but isn’t ready to provide details yet.

Her connection to SurveyMonkey came through her friendship with Sheryl Sandberg, Facebook’s chief operating officer and another member of SurveyMonkey’s board. Sandberg’s husband, Dave Goldberg, was SurveyMonkey’s CEO before he died in 2015 while the couple was vacationing in Mexico.

“I have been really interested in getting involved in Silicon Valley for years, so I have been kind of in the wading waters,” Williams said. “Now, I am jumping into the deep end of the pool. When I do something, I go all out.”

 

 

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Silicon Valley & Technology
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More Robots to Take Over Humans’ Jobs

According to a recent analysis, in about 15 years, depending on the country, up to 38 percent of jobs performed by humans may be turned over to robots. Experts who gathered last week at a robotic expo in Paris say we have to prepare for the new reality if we want to avoid disruptive social changes. VOA’s George Putic reports.

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Silicon Valley & Technology
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E-vision Glasses Enhance Vision for the Legally Blind

There are an estimated 39 million blind people in the world. Another 200 million, people like Julissa Marquez, are visually impaired. A knife attack left her with a less than 10 percent chance of having useful vision. But some new technology has literally opened her eyes. VOA’s Kevin Enochs reports.

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