Category - Business

Jobs Report Disappoints, Participation Rate Falls to Lowest Since 1977

Bloomberg Business, By Sho Chandra, July 2

The U.S. labor market took one step forward and one back in June as job creation advanced while wages stagnated and the size of the labor force receded.

The addition of 223,000 jobs followed a 254,000 increase in the prior month that was less than previously estimated, a Labor Department report showed Thursday in Washington. The jobless rate fell to a seven-year low of 5.3 percent as more people left the workforce.

The figures indicate corporate managers are confident they can temper hiring and meet demand against a backdrop of stronger consumer spending and feeble overseas markets. At the same time, more moderate job gains may still be enough to reduce the unemployment rate, consistent with the Federal Reserve’s perceived timetable to raise borrowing costs by year-end.

“One month’s low number wouldn’t shake our optimism,” Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said before the report. “The job market still has a ways to go but we’re making progress.”

Africa creates TFTA – Cape to Cairo free-trade zone

BBC, June 10

Africa’s largest free-trade zone is to be created, covering 26 countries in an area from Cape Town in the south to Cairo in the north.

The deal, signed in Egypt, is intended to ease the movement of goods across member countries which represent more than half the continent’s GDP.

Since the end of colonial rule, governments have been discussing ways to boost intra-African trade.

[…]

Three existing trade blocs – the Southern African Development Community (Sadc); the East African Community (EAC) and the Common Market for Eastern and Southern Africa (Comesa) – are to to be united into a single new zone.

The pact – known as the The Tripartite Free Trade Area (TFTA) – will then be officially unveiled at the upcoming summit of the African Union this weekend in South Africa.

Why Is The U.S. Desperate To OK Slavery In Malaysia?

Huffington Post, By Akbar Shahid Ahmed, Ryan Grim & Laura Barron-Lopez, May 26

Washington – On Friday night, in an impressive display of dysfunction, the U.S. Senate approved a controversial trade bill with a provision that the White House, Senate leadership and the author of the language himself wanted taken out.

The provision, which bars countries that engage in slavery from being part of major trade deals with the U.S., was written by Sen. Bob Menendez (D-N.J.). At the insistence of the White House, Menendez agreed to modify his language to say that as long as a country is taking “concrete” steps toward reducing human trafficking and forced labor, it can be part of a trade deal. Under the original language, the country that would be excluded from the pending Trans-Pacific Partnership pact is Malaysia.

But because the Senate is the Senate, it was unable to swap out the original language for the modification. (The chamber needed unanimous consent to make the legislative move, and an unknown senator or senators objected.) So the trade promotion authority bill that passed Friday includes the strong anti-slavery language, which the House will now work to take out to ensure that Malaysia (and, potentially, other countries in the future) can be part of the deal.

Observers are left with a deeper question: Why, in the year 2015, is the White House teaming up with Republican leaders essentially to defend the practice of slavery?

[…]

But Malaysia also borders what is effectively China’s jugular vein: the Strait of Malacca.

Via Naked Capitalism: America’s First Black President Throwing Slaves Under the Bus on TPP

We Can’t Let John Deere Destroy the Very Idea of Ownership

Wired, By Kyle Wiens, April 21

It’s official: John Deere and General Motors want to eviscerate the notion of ownership. Sure, we pay for their vehicles. But we don’t own them. Not according to their corporate lawyers, anyway.

In a particularly spectacular display of corporate delusion, John Deere—the world’s largest agricultural machinery maker —told the Copyright Office that farmers don’t own their tractors. Because computer code snakes through the DNA of modern tractors, farmers receive “an implied license for the life of the vehicle to operate the vehicle.”

It’s John Deere’s tractor, folks. You’re just driving it.

Several manufacturers recently submitted similar comments to the Copyright Office under an inquiry into the Digital Millennium Copyright Act. DMCA is a vast 1998 copyright law that (among other things) governs the blurry line between software and hardware. The Copyright Office, after reading the comments and holding a hearing, will decide in July which high-tech devices we can modify, hack, and repair—and decide whether John Deere’s twisted vision of ownership will become a reality.

[…]

General Motors told the Copyright Office that proponents of copyright reform mistakenly “conflate ownership of a vehicle with ownership of the underlying computer software in a vehicle.” But I’d bet most Americans make the same conflation—and Joe Sixpack might be surprised to learn GM owns a giant chunk of the Chevy sitting in his driveway.

The Trans-Pacific Partnership: Toward Absolutist Capitalism

Naked Capitalism, By Lambert Strether, April 20

There are many excellent arguments against the Trans-Pacific Partnership (TPP), two of which — local zoning over-rides, and loss of national sovereignty — I’ll briefly review as stepping stones to the main topic of the post: Absolutist Capitalism, for which I make two claims:

1) The TPP implies a form of absolute rule, a tyranny as James Madison would have understood the term, and

2) The TPP enshrines capitalization as a principle of jurisprudence.

Zoning over-rides and lost of national sovereignty may seem controversial to the political class, but these two last points may seem controversial even to NC readers. However, I hope to show both points follow easily from the arguments with which we are already familiar. Both flow from the Investor-State Dispute Settlement (ISDS) mechanism, of which I will now give two examples. more

MoJo Explicator: Here’s What You Need to Know About the Trade Deal Dividing the Left

Thousands in Germany protest against Europe-U.S. trade deal

Reuters, By Noah Barkin, April 18

Berlin – Thousands of people marched in Berlin, Munich and other German cities on Saturday in protest against a planned free trade deal between Europe and the United States that they fear will erode food, labor and environmental standards.

Opposition to the Transatlantic Trade and Investment Partnership (TTIP) is particularly high in Germany, in part due to rising anti-American sentiment linked to revelations of U.S. spying and fears of digital domination by firms like Google.

A recent YouGov poll showed that 43 percent of Germans believe TTIP would be bad for the country, compared to 26 percent who see it as positive.

The level of resistance has taken Chancellor Angela Merkel’s government and German industry by surprise, and they are now scrambling to reverse the tide and save a deal which proponents say could add $100 billion in annual economic output on both sides of the Atlantic.

Sputnik News: Some 22,000 Participated in Anti-TTIP Protests Across Austria – Organizers

Leading House Democrat Will Oppose TPP Fast Track

The Nation, By George Zornick, April 14

As legislation to fast-track congressional approval of the Trans-Pacific Partnership gets ready to finally make its debut in Congress this week, a top Democratic member of the House announced he would oppose the bill.

Representative Chris Van Hollen, the ranking member of the House Budget Committee, wrote in a letter to Representative Sandy Levin, the ranking member of the House Ways & Means Committee, that he would oppose fast-track authority, also known as Trade Promotion Authority or TPA. The letter was obtained by The Nation and its authenticity was confirmed by an aide to Van Hollen.

Van Hollen opposed a previous iteration of fast-track legislation last year, as did most other top Democrats, including Minority Leader Nancy Pelosi. But so far, many of those Democrats (including Van Hollen) had not yet announced a position on the new TPA legislation being hammered out by Senators Ron Wyden, Orrin Hatch, and Representative Paul Ryan. (Levin opted out of those talks, and believes Congress should see at least the outline of a trade deal before taking up legislation to fast-track its approval.) Pelosi still remains publicly undecided.

If Van Hollen—a visible member of the Democratic caucus and ranking member of a major committee—ultimately supported the Wyden-Hatch-Ryan bill, it would have been a signal that House Democrats were ready to go along with the Obama administration’s trade agenda. But in his letter, Van Hollen wrote “it is clear that many [of my concerns] will not be included in a revised TPA.”

Hullabaloo: “Fast Track” For TPP To Be Introduced This Week
Down With Tyranny!: A Vote in April on Fast Track & TPP?

The Obama Arms Bazaar

Counterpunch, By William D. Hartung, April 3-5

With the end of the Obama presidency just around the corner, discussions of his administration’s foreign policy legacy are already well under way. But one central element of that policy has received little attention: the Obama administration’s dramatic acceleration of U.S. weapons exports.

The numbers are astonishing. In President Obama’s first five years in office, new agreements under the Pentagon’s Foreign Military Sales (FMS) program—the largest channel for U.S. arms exports—totaled over $169 billion. After adjusting for inflation, the volume of major deals concluded by the Obama administration in its first five years exceeds the amount approved by the Bush administration in its full eight years in office by nearly $30 billion. That also means that the Obama administration has approved more arms sales than any U.S. administration since World War II.
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Shell Will Buy BG Group for $70 Billion in Cash and Shares

Bloomberg Business, By Joe Carroll, Javier Blas, & Rakteem Katakey, April 8

Royal Dutch Shell Plc agreed to buy BG Group Plc for about 47 billion pounds ($70 billion) in cash and shares, the oil and gas industry’s biggest deal in at least a decade.

The acquisition is the most significant response yet to the slump in oil prices and could set in motion a series of mergers as the largest energy companies look to cut costs and restore profits.

[…]

The merged company, led by Shell Chief Executive Officer Ben van Beurden, will boast a market value twice the size of BP Plc and surpass Chevron Corp. Shell, struggling to rebound from its worst production performance in 17 years, will swell its oil and natural gas reserves by 28 percent with the combination and inherit a management team that carved out a unique niche in liquefied natural gas, or LNG.

Shell, which helped pioneer the process of liquefying gas for shipment aboard tankers decades ago, and rivals such as Chevron are betting LNG will play an increasing role in emerging economies seeking alternatives to dirtier energy sources such as coal.

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The Deadly Global War for Sand

Wired, By Vince Beiser, March 26

The killers rolled slowly down the narrow alley, three men jammed onto a single motorcycle. It was a little after 11 am on July 31, 2013, the sun beating down on the low, modest residential buildings lining a back street in the Indian farming village of Raipur. Faint smells of cooking spices, dust, and sewage seasoned the air. The men stopped the bike in front of the orange door of a two-story brick-and-plaster house. Two of them dismounted, eased open the unlocked door, and slipped into the darkened bedroom on the other side. White kerchiefs covered their lower faces. One of them carried a pistol.

Inside the bedroom Paleram Chauhan, a 52-year-old farmer, was napping after an early lunch. In the next room, his wife and daughter-in-law were cleaning up while Paleram’s son played with his own 3-year-old boy.

Gunshots thundered through the house. Preeti Chauhan, Paleram’s daughter-in-law, rushed into Paleram’s room, her husband, Ravindra, right behind her. Through the open door, they saw the killers jump back on their bike and roar away.
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