Archives for April 2017

Miguel Arias Canete, Europe’s commissioner for climate action and energy, came to the Islamic Republic for a two day visit to meet with senior Iranian officials, including the country’s atomic chief, vice-president, and ministers of oil and energy. He brought along representatives of some 50 companies and business associations from EU countries. The businessmen are attending a clean energy forum where some 40 Iranian companies are represented. The commissioner’s program also includes a climate change conference.

Iran to finalize gas development deal with Total

This is the latest in a series of high-profile contacts between Iran and the EU, where leaders appear concerned with the hardline rhetoric coming from Washington. US President Donald Trump has accused Tehran of “violating the spirit” of the 2015 nuclear deal, which lifted economic sanctions from Iran in exchange for it restraining its nuclear program.

The nuclear sanctions had hurt the Iranian economy, but also affected the country’s European oil customers. The deal has allowed for a rapid re-establishment of business ties.

“After the nuclear deal came into effect, trade between the EU and Iran has risen by 79 percent, exports from Iran to the EU have jumped by 450 percent, and the two sides have established a dynamic energy partnership,” Canete told the business forum.

“Now we want to take this success story one step further. The energy sector will feature prominently in our future relations and we are committed to fully tap into its economic and social potential while contributing to achieve our climate commitments,” he said.

On meeting Ali Akbar Salehi, the head of the Atomic Energy Organization of Iran, the EU commissioner reiterated Brussels’ support for the nuclear deal, while confirming that Tehran is in full compliance with its terms.

The two officials discussed a €5 million investment program, under which the EU would help Iran boost nuclear safety. Last week Tehran and the European Commission inked an agreement on creating a center dedicated to the issue in Iran. The EU will later help conduct a stress test of the Russian-built Bushehr nuclear power plant as part of the deal.

Russia to build 2 nuclear power plants in Iran

Two weeks ago, Tehran hosted another high-profile delegation from the EU headed by foreign policy chief Federica Mogherini, which included half a dozen European commissioners, Canete among them.

The EU is making an effort to boost the position of Iranian President Hassan Rouhani, according to Reuters. Hardliners in Tehran have criticized the moderate politician, who was Iran’s driving force behind the nuclear deal, saying the agreement should have delivered more significant economic relief, with the Trump administration’s accusations currently playing in their favor.

The deal did manage to bring some international businesses to Iran, including aircraft producers Airbus and Boeing, carmakers Peugeot–Citroen and Renault, and engineering giant Siemens. However, the country remains largely insulated from the international financial system, which depends much more on Washington’s regulatory decisions and control.

The US has criticized Iran on a number of issues, including its missile development program and support for the Syrian government. Washington also alleges that Tehran is funding terrorist groups. The bellicose rhetoric has some EU officials worrying that the breakthrough nuclear deal may fall victim to the bickering.

“We disagree that we have to address these issues by ditching the (nuclear) deal,” one EU diplomat told Reuters. “This will only empower those (in Iran) with a more confrontational stance – bring out the worst in the system,” they said.

“The Europeans want to at least create the optical impression they are politically invested in this deal working,” said Ellie Geranmayeh of the European Council on Foreign Relations, adding “even if from a commercial perspective, companies are essentially on hold.”

Rouhani is running for reelection on May 19, with the EU reportedly pressuring the US to delay a bill currently floating around on the Capitol Hill that would slap more sanctions in Iran.

Article source: https://www.rt.com/business/386654-iran-eu-energy-nuclear/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The country’s GDP increased at a mere 0.7 percent annual rate, down from 2.1 percent and 3.5 percent in the second half of 2016. Analysts surveyed by Reuters expected growth of 1.2 percent last quarter.

Trump’s budget cuts could ‘eviscerate’ USAID

The decline in growth is due to the smallest increase in consumer spending since the end of 2009, which broadly mirrors fewer car sales. Consumer spending grew only 0.3 percent, reflecting a steep drop from the 3.5 percent gain at the end of 2016.

However, a decline in consumption spending is unlikely to take hold. In the winter, Americans spent less on home heating fuel, clothes and gasoline due to unseasonably warm weather in February.

At the same time, household finances are currently on the up, boosted by stock market gains, gradually rising wages as well as a strong labor market.

Cuts in government spending also had an impact on economic growth. Government spending dropped at a 1.7 percent rate as defense outlays declined by 4 percent, the biggest drop since the fourth quarter of 2014.

Moreover, businesses scaled back on inventory production not to get stuck with lots of unsold goods on warehouse shelves. Companies accumulated stock at a rate of $10.3 billion, down from $49.6 billion in the previous quarter.

Investments in home building rose by 13.7 percent from January to March, marking the construction sector as a major driver for the US economy.

Spending on mining exploration, wells, and drilling rigs swelled at a record pace of 449 percent after growing 23.7 percent in the fourth quarter of 2016.

READ MORE: Trump tax plan slashes taxes for ‘some’ businesses and wealthy estates

Spending on nonresidential structures accelerated by 22.1 percent in the first quarter after declining by 1.9 percent in the previous quarter.

Exports increased 5.8 percent, outpacing the 4.1 percent rate increase in imports, leaving a smaller trade deficit that reportedly had a neutral impact on GDP growth.

Article source: https://www.rt.com/business/386485-us-growth-slow-consumer-spendings/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Obama bans offshore drilling in America’s Arctic Atlantic

“This order will cement our nation’s position as a global energy leader and foster energy security for the benefit of American people, without removing any of the stringent environmental safeguards that are currently in place,” Interior Secretary Ryan Zinke told reporters at a White House briefing.

The Interior Department oversees 1.7 billion acres of the outer continental shelf, which contains an estimated 90 billion barrels of undiscovered oil and 327 trillion cubic feet of undiscovered natural gas.

About 94 percent of that outer continental shelf is off-limits to drilling as a result of Barack Obama’s ban last year. He blocked the sale of new offshore drilling rights to preserve coral reefs, marine sanctuaries, and walrus feeding grounds. Some criticized the move as limiting future oil and gas leasing in US waters and American crude production.

Zinke said on Thursday environmental protection would not be compromised as the administration looks for opportunities to develop energy offshore. He added current restrictions would probably stay in place for two years.

However, environmental groups had vowed to fight the order even before its details were released.

Opening new areas to offshore oil and gas drilling would lock the US “into decades of harmful pollution, devastating spills like the Deepwater Horizon tragedy, and a fossil fuel economy with no future,” Diana Best of Greenpeace was cited as saying by Associated Press.

“Scientific consensus is that the vast majority of known fossil fuel reserves – including the oil and gas off US coasts- must remain undeveloped if we are to avoid the worst effects of climate change,” she added.

The executive order “is actually worse than we thought for marine wildlife, commercial seafood and tourism industry, and sanctuaries!” said Chip Weiskotten with the Wildlife Conservation Society. “It basically appears to REQUIRE any potential sanctuary to be explored for oil and gas! Not to mention ramping up seismic testing is terrible for endangered North Atlantic right whale.”

Article source: https://www.rt.com/business/386483-trump-plans-drilling-arctic/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

AI is the “singular thing that will be larger than all of human tech revolutions added together, including electricity, the industrial revolution, the internet, mobile internet – because AI is pervasive,” the technologist said at the Global Mobile Internet Conference in Beijing as quoted by CNBC.

According to Lee, AI represents the decision engine that would replace people. The tech expert stressed that its capabilities far exceed those of humanity.

The corporations, which Sinovation Ventures has invested in, can accomplish feats such as recognizing three million faces simultaneously or dispersing loans in eight seconds.

“These are things that are superhuman, and we think this will be in every industry, will probably replace 50 percent of human jobs, create an huge amount of wealth for mankind and wipe out poverty,” Lee said.

The technologist does not see machines taking the place of humans in the world as they grow more intelligent.

“Touching one’s heart with your heart is something that machines, I believe, will never be good at,” he said.

Lee stressed that service jobs should be considered “first-class” employment.

According to the expert, traditional institutions like banks, insurance firms, and hospitals are moving too slow, while all of this change is happening.

“Because AI is about taking data into insight and decision, so I anticipate the internet sector, entrepreneurial sector, to continue to grow and in many cases displace and even wipe out traditional companies in China,” said Lee.

Article source: https://www.rt.com/business/386452-ae-replace-half-jobs-technologist/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The local data center opened by Google will hold information such as YouTube videos for streaming rather than having to connect through the long submarine cable that links the country to the internet.

The move provides Cubans with an opportunity to access the web through the nearest Google server in their country.

“I think this will be very noticeable for Cubans. The internet in Cuba will still be a painfully slow process. This is just another somewhat rare step forward. For Google services, which will be hosted in the country, it will be a milestone,” said Doug Madory, director of internet analysis at the global internet monitoring company Dyn.

Even with the changing political landscape and more openness in Cuba, the country still has the lowest level of internet connectivity in the western hemisphere.

Most people can only log on to the internet through 240 public access Wi-Fi hotspots dotted around the country. An hour of internet time costs around $1.50. That is almost unaffordable for the majority of Cubans, whose average salary is about $25 per month.

The Cuban government’s monopoly telecom Etecsa has recently started a pilot program providing internet connections to 2,000 homes. However, as soon as the pilot is over, Cubans will have to pay $15 for 30 hours of internet at a slow speed of 128 kilobytes per second.

Google admits the move to localize the servers will not have any visible impact on the situation with no increase in internet access for an average Cuban.

“Cubans who already have access to the internet and want to use our services can expect to see an improvement in terms of quality of service and reduced latency for cached content,” Google executives wrote in a blog shortly after the deal between Havana and the tech giant was signed.

Article source: https://www.rt.com/business/386352-google-hosts-content-cuba-internet/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The primary boost to the results came from the robust performance of the South Korean company’s chip business.

Samsung heads for best quarterly profit in over 3 yrs, up 48%

Samsung’s operating profit jumped 48 percent to 9.9 trillion won ($8.73 billion) matching the company’s earlier guidance. Revenue grew two percent to 50.5 trillion won ($45.53 billion).

Asia’s most valuable company by market capitalization said that expects a further increase in memory chip orders and growth in earnings from the phone business.

Samsung has refused to adopt a holding company structure, rejecting calls from US activist hedge fund Elliott Management to split itself in two, but accepted part of the fund’s proposals.

“Samsung concluded the risks and the challenging environment surrounding a change in the corporate structure would not be beneficial for enhancing shareholder value and sustaining long-term business growth,” the company statement reads.

The South Korean multinational also announced a share buyback worth 2.3 trillion won ($2.03 billion).

Pre-orders for the Galaxy S8 smartphone launched earlier this month managed to beat analysts’ expectations. That raises hopes the corporation could make up for the misstep and the mammoth recall of the fire-prone Galaxy Note 7s last year.

Last October, Samsung ended the troubled smartphone following the recall of 2.5 million handsets. The firm’s mobile branch reported a smaller operating profit of 2.07 trillion won ($1.83 billion), down from 3.89 trillion won ($3.43 billion) a year earlier.

“Looking ahead to the second quarter, the company expects to achieve growth on the back of continued robust memory performance together with improved earnings from the mobile business following the global rollout of the Galaxy S8 and S8+,” Samsung said in a statement.

Despite the solid earnings, the company remains involved in a scandal, with chief Jay Y. Lee currently on trial for alleged participation in a corruption case that brought down South Korean President Park Geun-hye. Lee denies the charges that include bribery and embezzlement.

Article source: https://www.rt.com/business/386324-samsung-biggest-quarterly-earnings-chips/?utm_source=rss&utm_medium=rss&utm_campaign=RSS