Stocks rose in major markets around the world Friday on bets of progress in trade talks between China and the United States, while crude futures hit their highest level in more than three months supported by ongoing supply cuts. 

U.S. President Donald Trump said Friday that there was a very good chance the United States would strike a deal with China to end their trade war and that he was inclined to extend his March 1 deadline to reach an agreement. 

U.S. and Chinese negotiators meeting in Washington made progress and will extend this week’s round of negotiations by two days, he said.  

Main stock indexes on Wall Street rose as the optimistic trade talk more than offset signs of slower growth in both U.S. earnings and the economy, with the S&P 500 posting a fourth consecutive week of gains. 

The Dow Jones industrial average rose 181.18 points, or 0.7 percent, to 26,031.81; the S&P 500 gained 17.79 points, or 0.64 percent, to 2,792.67; and the Nasdaq Composite added 67.84 points, or 0.91 percent, to 7,527.55. The Dow rose for the ninth consecutive week.

Overnight, shares in Asia were buoyed by a late rally in Chinese shares, with the main blue-chip index rising more than 2 percent to a near seven-month high. 

Emerging market stocks rose 0.73 percent after touching the highest level since August. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.7 percent higher, while Japan’s Nikkei lost 0.18 percent. 

Trade talks and a growing number of policy U-turns by global central banks have propped up equities in recent weeks, although this week saw the first outflows from emerging market debt and equity funds since October 2018, Bank of America Merrill Lynch strategists said, citing EPFR data. 

Crude rising 

Oil prices touched their highest level in more than three months, supported by OPEC supply cuts as well as the trade developments. New record U.S. oil supply, however, limited gains in post-settle trade. 

U.S. crude rose 0.37 percent to $57.17 per barrel and Brent was last at $67.00, down 0.1 percent on the day. 

In currencies, the U.S. dollar was little changed against a basket of peers. The dollar index fell 0.05 percent, with the euro down 0.03 percent to $1.1331. The Japanese yen strengthened 0.03 percent versus the greenback at 110.68 per dollar. Sterling was last trading at $1.3053, up 0.03 percent on the day. 

The Australian dollar recovered a day after falling more than 1 percent after Reuters reported the Chinese port of Dalian had barred imports of Australian coal indefinitely. China said Friday that imports would continue, but customs has stepped up checks on foreign cargoes. 

Separate comments by Reserve Bank of Australia Gov. Philip Lowe that a rate increase may be appropriate next year also helped to boost the Aussie dollar. 

The Aussie dollar recently gained 0.56 percent versus the greenback at 0.7128. 

Despite gains on risky assets, safe-haven U.S. Treasuries also gained in price. Benchmark 10-year notes last rose 10/32 in price to yield 2.6536 percent, from 2.688 percent late on Thursday. 

The 30-year bond last rose 18/32 in price to yield 3.0159 percent, from 3.045 percent late Thursday. 

Spot gold added 0.4 percent to $1,328.20 an ounce. U.S. gold futures gained 0.21 percent to $1,330.60 an ounce. 

Copper rose 1.52 percent to $6,477.00 a metric ton. 
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The Trump administration is denying and delaying more skilled-worker visa petitions than at any time since at least 2015, in keeping with its promise to increase scrutiny of foreign workers, according to data the government released on Friday.

U.S. officials say they have made reforms that prioritize American workers, cut down on fraud and streamline the immigration process. But lawyers who help employers apply for the visas say the agency is rejecting legitimate applications and tying up requests in bureaucratic red tape.

The data provided by U.S. Citizenship and Immigration Services (USCIS), the agency that adjudicates the visas, extends to the 2015 fiscal year, encompassing the last two years of the Obama administration and the first two years of the Trump administration.

New policies for H-1B visas

Republican President Donald Trump campaigned in 2016 on restricting immigration, and early in his presidency issued an executive order directing the Department of Homeland Security, which oversees USCIS, to tighten its policies on H-1B visas. The visas are intended for foreign workers who generally have bachelor’s degrees or higher to work in the United States, often in the technology, healthcare and education sectors.

In the 2018 fiscal year, which ended on Sept. 30, the government issued “initial denials” to over 61,000 H-1B applications. In that time, the government issued decisions on over 396,000 applications.

That is more than double the number of such denials over the prior year, even as the total number of applications the government completed dropped by about 2 percent between 2017 and 2018.

And denials look set to increase even further this year. In the first quarter of the 2019 fiscal year, the government issued initial denials to nearly 25,000 H-1B applications, a 50 percent increase over the same period last year.

Approval rate drops

The majority of petitions are still being approved, but the approval rate is dropping. In 2015, the approval rate was 96 percent, compared with 85 percent last year.

“USCIS has made a series of reforms designed to protect U.S. workers, increase our confidence in the eligibility of those who receive benefits, cut down on frivolous petitions, and improve the integrity and efficiency of the immigration petition process,” said Jessica Collins, a USCIS spokeswoman.

The government data also show that the administration is issuing far more “requests for evidence” in response to H-1B applications. Such requests, or RFEs as they are known, often challenge the basis of the original petitions and require employers and attorneys to submit additional paperwork.

Receiving an RFE from the government can add several months and thousands of dollars in legal fees to the cost of applying for a visa, attorneys say.

Screening questioned

The number of completed H-1B petitions that drew an RFE reached over 150,000 last year, compared with 86,000 in 2017, a 75 percent increase.

Ron Hira, a professor at Howard University and critic of the H-1B program, said the data suggests USCIS is giving employers a fair opportunity to justify their petitions through the RFE process.

“It also makes one question whether the Obama administration was doing an adequate job in ensuring the integrity and accountability of the H-1B program,” Hira wrote in an email. He also noted that large tech companies, such as Microsoft Corp, Amazon, Alphabet Inc’s Google and Facebook Inc, enjoyed H-1B approval rates last year of 98 percent or 99 percent, according to USCIS, while firms that have been criticized for using H-1B workers to replace Americans saw their petitions approved at far lower rates.

But immigration attorneys say many of the denials and RFEs are violating the laws and regulations governing the program. Some companies are successfully challenging the denials in federal court. Entegris Professional Solutions, a Minnesota company, sued USCIS in December over the rejection of an H-1B application for one of its employees.

This month, USCIS reopened the case and granted the petition, said Matthew Webster, one of Entegris’ attorneys on the case.
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U.S. President Donald Trump will meet with China’s vice premier at the White House Friday as part of an ongoing effort to defuse the trade dispute between the world’s two largest economies.

Representatives from both countries have engaged in talks in Washington this week under a cloud of uncertainty created by Trump’s threat to more than double tariffs on $200 billion worth of Chinese goods on March 1.

Trump will meet with Vice Premier Liu He, China’s top trade negotiator. Chinese President Xi Jinping has designated Liu as a “special envoy,” granting him the authority to negotiate directly with the U.S.

The U.S. is calling on China to make structural changes on key issues such as stopping the theft of American technology and reining in improper subsidies and other advantages provided to state-owned companies.

The Reuters news agency reported that negotiators from both sides were trying to finalize details of six broad agreements covering the most difficult issues, including those involving technology theft and corporate subsidies.

Additional tariffs Trump has threatened to impose could take effect if a trade deal is not reached before the beginning of March. Trump has signaled, however, he could extend the deadline, saying March 1 is not a “magical date.”

The two countries imposed more than $360 billion in tariffs in two-way trade last year, after Trump triggered the trade dispute over complaints of unfair trade practices. The tariffs have weighed heavily on both countries’ manufacturing sectors and raised concern they could exacerbate the global economic slowdown.

Charles Boustany of the U.S.-based National Bureau of Asian Research co-authored a newly-released report that includes recommendations of how to manage the trade impasse.

“We don’t believe the [Trump] administration has set the stage properly to get China to change,” Boustany told VOA. “It’s truly a test if China will change with these broad structural issues. So, we don’t think the deal they come up with is truly enforceable at this stage.”

Boustany said the U.S. must solicit the help of allies to build more pressure on China, adding maintaining U.S. efforts will not “be enough unilaterally.”

Reuters also reported the U.S. Chamber of Commerce, the nation’s largest business lobbying group, urged negotiators Friday to reach an agreement as soon as possible, although it expects talks to continue past the March 1 deadline.

“To us, the date is not magical. What’s important is to get a comprehensible sustainable agreement,” chamber executive Myron Brilliant said on a conference call with reporters.

Brilliant said the trade dispute between the two superpowers has increased business costs, which will continue to mount as long as tariffs are in effect. 

VOA’s Mandarin Service contributed to this report.

 

 
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Analysts say a $15.4 billion write-down for food giant Kraft Heinz reflects changing consumer taste for fresh food products over processed ones.

The company said Thursday the decrease in value of some of its major brands resulted in a net loss of $12.6 billion.

Kraft Heinz also announced Thursday the Securities and Exchange Commission had subpoenaed it late last year because of its procurement procedures.

At the end of the business day Thursday, the company saw its stock drop about 20 percent.

“We expect to take a step backwards in 2019,” Chief Financial Officer David Knopf said in a post earnings conference call. He promised “consistent profit growth” for 2020.

Kraft Heinz is the home of such iconic brands as Velveeta Cheese, Heinz ketchup brands, Oscar Mayer hotdogs and Cheez Whiz.
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From homeowners facing higher flood insurance premiums to investors putting money into coal-fired power plants, financial risks related to climate change are growing, analysts say. 

But working out how a switch to lower-carbon train travel could affect an airline or what an insurance firm should do to weather more flood claims is neither clear nor simple, they say. 

Help may be at hand, however, from guides published Friday to assess financial risks from the physical threats of climate change, as well as the risks and opportunities of a global transition away from fossil fuels. 

“What is the exposure financial institutions have to natural catastrophes? I don’t think that question traditionally has been asked,” said Greg Lowe, global head of resilience and sustainability for Aon, a London-based insurance and risk firm. 

Traditional ideas may fall short

For disasters, “there’s always been an assumption we have insurance for that,” said Lowe, whose firm contributed to the reports by ClimateWise, an initiative of the University of Cambridge Institute for Sustainability Leadership that aims to better disclose and respond to climate-related insurance risks. 

With those risks growing — particularly as heat-trapping emissions continue to rise — traditional methods of dealing with them may not be enough as the world tracks toward 2 degrees Celsius or more of global warming, the twin reports warn. 

“If indeed people think we’re headed on that path [past 2 C], it’s going to be a hugely difficult task for the financial system to manage,” Lowe predicted. 

Over the next 30 years, the risks from heat waves, storm surges and floods will increase substantially because of warming already underway, the physical threats report noted. 

In Britain, that could lead to higher flood insurance premiums and people more often made homeless by floods, as well as greater investment by cities and towns in flood defenses. 

That homeowners understand changing flood risks and will respond adequately to them “is probably a generous assumption,” Lowe said. 

But even for those who do grasp the shift, simply boosting insurance coverage is unlikely to be an answer, he said. 

“I don’t think buying more insurance is a politically or financially sustainable thing to do,” he said. “Even with insurance, this is still a tremendous hardship on people if they are out of their homes.” 

Who foots the bill?

Rather, there should be honest discussions about who foots the bill for the growing risk and damage, he said. 

“Someone is going to pay for this. How that gets distributed through the financial system is the question,” he added. 

The new reports aim to demonstrate that it is possible to start taking a more precise look at the risks and their financial impacts, and to give experts tools to do that, said Bronwyn Claire, senior program manager for ClimateWise. 

For instance, they could explore how changes in transport demand between trains and planes, or a carbon tax that is influencing fuel prices, might affect an airport in Germany. 

The guides could also help investors spot opportunities, she added. 
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A Nike Inc sneaker worn by a college basketball superstar split in half less than a minute into a highly anticipated game between Duke University and North Carolina, prompting an outcry on social media as the company sought to figure out what caused the problem.

Zion Williamson, a 6-foot-7-inch freshman forward for the Duke Blue Devils who is anticipated to be the top 2019 NBA Draft pick, suffered a mild sprain to his right knee because of the incident Wednesday night, according to his coach Mike Krzyzewski.

The official Duke Basketball Twitter handle (@DukeMBB) tweeted Thursday evening that Zion was “progressing as expected, and his status is day-to-day.”

A closeup video replay showed Williamson slipping and crumpling to the ground, clutching his knee in pain. His left shoe is seen split in half, with part of the sole ripped off the base of the sneaker.

Williamson did not return to play in the match-up, which ended with No. 1-ranked Duke losing 72-88 to the No. 8-ranked Tar Heels team.

Reaction from Nike

“We are obviously concerned and want to wish Zion a speedy recovery,” Nike said in a statement. “The quality and performance of our products are of utmost importance. While this is an isolated occurrence, we are working to identify the issue.”

Shares of the sportswear maker closed down 1 percent Thursday, a day after the incident, wiping off some $1.46 billion from Nike’s market capitalization since Wednesday’s close.

Oppenheimer analyst Brian Nagel said in a note that he was optimistic “any lasting damage to the company and its shares will prove minimal.”

Williamson was wearing the Nike PG 2.5 basketball shoe when he was injured, Nike confirmed to Reuters in an email. The line of sneakers, launched in summer of 2018, sells for $95-$105 on Nike’s website.

The shoe received mixed reviews and a rating of 4 out of 5 stars on Nike.com as of Thursday.

Nike is Duke’s exclusive supplier of uniforms, shoes and apparel under a 12-year contract that was extended in 2015 and has had an exclusive deal with the private university since 1992, ESPN reported.

Nike’s latest quarterly results showed signs of a rebound as it speeds up new product launches and expands partnerships with online retailers. The Beaverton, Oregon-based company has forecast sales growth for 2019 approaching low double-digits.

Williamson, who averaged 21.6 points a game, has been tipped as the “next Lebron James” and is expected to be selected first in the NBA Draft this June.

Krzyzewski said it was unclear how long Williamson would be out because of the injury.

Reaction from celebrities

Former President Barack Obama, director Spike Lee and star NFL running back Todd Gurley attended Wednesday’s game at Cameron Indoor Stadium, the home court of the Blue Devils.

A video from the match posted on Twitter showed Obama sitting courtside, expressing shock and mouthing the words, “his shoe broke!”

The incident lit up social media, with celebrities and some of basketball’s biggest stars expressing shock and dismay.

“Hope young fella is ok!” tweeted LeBron James (@KingJames) on Wednesday. “Literally blew thru his,” he added, using a shoe emoji.

“Again let’s remember all the money that went into this game…. and these players get none of it,” Donovan Mitchell (@spidadmitchell), a former first-round NBA draft pick and current guard for the Utah Jazz, tweeted Wednesday. “And now Zion gets hurt… something has to change.”

Nike’s social media sentiment dropped following the malfunction, according to social media analytics firm Zoomph. With 1.6 billion impressions and a reach of 170 million users, people were twice as likely to express negative sentiment about the athletic apparel maker, Zoomph data showed.

This is not the first time Nike has faced controversy over the craftsmanship of its sportswear. In 2017, the company faced a backlash when several NBA jerseys worn by basketball stars, including James, ripped apart.
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As China and the United States resume high-level talks in Washington Thursday, there are signs that the two may be closing in on a deal.

Reuters news agency is reporting that top trade officials from both sides are trying to hammer out the details of six broad agreements aimed at resolving the most difficult issues from forced technology transfers, to state subsidies and cyber theft.

Earlier this week, President Donald Trump said there is no “magical date” for reaching a trade deal, a comment some felt suggests that the March 1 deadline, which could trigger a steep hike in tariffs from both countries, could be postponed if progress is being made.

Meanwhile, a senior Communist party adviser, speaking at a forum organized by the Hong Kong-based South China Morning Post, predicted Washington and Beijing would reach a trade deal in early March . He also said that Meng Wanzhou, chief financial officer of Chinese tech giant Huawei, is likely to be released by April or May.

Speaking on the sidelines of a conference hosted by the newspaper, Xie Maosong, an adjunct professor at the Central Party School, said he was confident that is what would happen because of what he called the countermeasures China had taken.

Those “countermeasures” include Bejing’s detention and charging of two Canadian citizens — Michael Kovrig and Michael Spavor — for endangering state security.

Meng is currently on bail in Canada awaiting possible extradition to the United States.

According to a Reuters report on Thursday, U.S. and Chinese negotiators are working on six broader agreements as well as a 10-item list of shorter-term measures.

Analysts tell VOA, that while it appears a more comprehensive deal is coming together, the details of any agreement will be key in determining whether it is a success or just an opportunity to kick long-standing issues down the road.

Christopher Balding, an economist and associate professor at Fulbright University Vietnam, said deals like the one China and the United States are working on take time.

There will be a lot of paperwork and time spent making sure individual agreements for industries are worked out, he said.

“The other issue that is going to be the real hang up, and this is going to be the real hang up for Beijing, is that there is some type of verification mechanism,” Balding said. “It’s not just the agreement, but what comes after the agreement.”

William Choong, a senior fellow with the International Institute for Strategic Studies in Singapore, said while they are two entirely different issues, the way President Trump is handling China is similar to how he is working with North Korea.

Choong said much like the meeting between Kim Jong Un and Trump in Singapore led to a North Korea deal 1.0, next week we’re going to get a 2.0 deal with North Korea in Vietnam.

The trade deal that is coming up is similar, he said.

“It will not be the all and end all. We are going to see more iterations along the road,” Choong said. “Whatever agreement they settle on, that the Americans and Chinese agree on, will be enough to let go of some of the steam, some of the pressure that has built up.”

That will give Trump a chance to kick the March 1 deadline further down the road, he added.

Chinese state media reports on Thursday were upbeat about the meetings.

An editorial in the China Daily, entitled “Decisive Talks Must be Forward Thinking,” said, “both sides should cherish the narrowing of their differences that has been achieved, as it has involved more than just picking off low-hanging fruit.”

Calling President Trump’s suggestion that the deadline could be delayed a “conciliatory signal,” the paper also added that it would be “naïve to think that such a Gordian knot of differing goals and ambitions will be simple to unravel, especially as the discussions are now about the most divisive and touch-a-nerve issues.”

It also said Washington needs to be realistic about what China can and cannot do. What that actually entails will only be clearer when the complete agreement is released.

“China more than anything wants this to go away because it is hindering a lot of their confidence building measures and investment decisions, that’s what they are really hoping to get out of it [a deal],” Balding said.

Choong agrees, noting that what Beijing wants is to get Trump off its back. But, he added, how China could change course enough on issues such as forced technology transfers is unclear.

“I do not know how the Chinese are going to put something that is significant enough in the agreement to actually placate the Americans,” Choong said. The Chinese, he said, are looking for a way to play Trump, much like North Korea has done.

“If Trump gets enough on paper that looks satisfactory, he can go away to the Twitter-verse and say look I’ve got this big deal with the Chinese.”

 

 
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