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Archives for August 2017

‘Young Sheldon’ Reinvents ‘The Big Bang Theory’ Formula. Will It Work?

Well, for “Young Sheldon,” plenty.

For the first time, Mr. Lorre is abandoning the formula that has made him one of the most successful producers in the business for the last couple of decades. He’s not using a studio audience. He’s relying on a single camera instead of the multicamera format that’s done him well. He’s also using a voice-over narration, from Mr. Parsons (a first). And he’s working with a child actor in the show’s starring role (another first).

“Young Sheldon” is so different from “Big Bang,” the show’s producers have taken to comparing it to “The Wonder Years” more often than the show it’s spun off from. And with a show that looks and sounds so different, are producers risking alienating the millions of viewers that made “Big Bang” a hit?

As Mr. Lorre put it in a recent interview here on the show’s set: “It’s got to hold its own. It’s got to live or die on its own merits.”

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Jim Parsons in the long-running CBS hit “The Big Bang Theory.” Credit Monty Brinton/CBS

On Sept. 25, “Young Sheldon” will debut with a special premiere episode, and then follow “Big Bang” on Thursday nights starting in November.

Plenty is riding on its success. CBS executives have tried to use the huge audience that “Big Bang” draws to roll out new comedies for some time but to decidedly mixed results. (Remember “The Great Indoors,” which followed “Big Bang” on Thursdays this past season? That’s fine; few do.)

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Even so, the prospect of a “Big Bang” spinoff has executives extremely hopeful.

“It was the quickest pitch and the quickest yes in the history of television,” said Leslie Moonves, the chief executive of CBS. “Chuck said, ‘Sheldon, East Texas, 9 years old.’ I said, ‘Done!’”

The series zooms back 28 years to find Sheldon as a wide-eyed, brilliant and slightly irritating kid (played by Iain Armitage from HBO’s “Big Little Lies”), living outside Houston with his parents, older brother and twin sister. In the premiere, family friction is a theme, as is Sheldon’s intelligence and sheer naïveté. Sheldon enters high school years ahead of schedule and is under the severely misguided impression that is this will be a haven of higher learning.

young Sheldon Official Trailer Video by The Big Bang Theory Planet

When a bow-tied Sheldon arrives for his first day of school, and sees a sea of sleeveless shirts, tattoos and punk haircuts, he sums it up this way: “Oh dear.”

One thing that’s missing from every scene, however, is the roar of approval from a studio audience.

“When I first heard it, I was like, ‘Oh no! Why!’” said Mr. Parsons, who is an executive producer of the show. “I just thought, ‘But y’all are so gifted at that multicam format.”

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From left, Johnny Galecki, Jim Parsons and Simon Helberg on “The Big Bang Theory.” Credit Michael Yarish/Warner Bros.

Mr. Lorre did not initially intend to drop a studio audience, but producers ultimately concluded that putting several children in front of an audience numbering in the hundreds would put too much pressure on them.

The loss of the audience, and dropping from four cameras to one, also allowed for the show to stand out from the brightly lit “Big Bang” — and fit in with other contemporary comedies like “Veep” and “Master of None.”

But the switch has required an immediate crash course for Mr. Lorre and his fellow producers.

“Take the dinner scene from the pilot,” Mr. Lorre said on the set here, referring to a scene that takes a couple of minutes. “We could have shot two episodes of ‘Big Bang’ in the time to do the dinner scene. It took six hours. You’re getting every possible shot — reaction shots — and different performances. You’re getting all these options, so in editing you have choices.”

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Sitting a few feet away, the “Young Sheldon” co-creator (and “Big Bang” executive producer) Steven Molaro chimed in, “This is apparently common knowledge.”

“It’s new to us!” said Mr. Lorre.

But some things — like ending a scene with a zinger — don’t change. A few minutes later, filming resumed on the cold open of the fourth episode. In it, Sheldon starts choking on a piece of sausage, with his parents bumbling around trying to help him. There were multiple shots to take: Sheldon’s sister looking on with some concern, Sheldon witnessing his brother, unbothered, licking some jelly off a knife before putting it back in the jar.

By time the sausage is dislodged, Sheldon, fresh off his near death experience, deadpans, “You have to throw away that jelly.”

The joke worked fine, but this was the kicker before a commercial break. It needed more of a flourish. Mr. Lorre walked over to his director and said that Mr. Armitage should inhale deeply after saying “have to” and “throw away.” Sheldon was just choking, after all, and slowing the line down might work a wee bit better.

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From left foreground, on the “Young Sheldon” set: Iain Armitage; Jim Parsons, executive producer and narrator; Steven Molaro, executive producer and co-creator; and Chuck Lorre, executive producer and co-creator. Credit Michael Yarish/CBS

“Two inhales and three beats, right?” Mr. Lorre said. “Three beats. Maybe it’ll be funny. Let’s see.”

After a couple of takes, and a chorus of laughter from the crew, Mr. Lorre looked satisfied.

As Mr. Parsons put it, “They’re really good at writing rhythms, and Chuck’s a master at knowing when to end a scene when a scene’s not ending right.”

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Though Mr. Lorre has long held a distaste for spinoffs — “Why cannibalize a show?” he said — he reconsidered when he got an email from Mr. Parsons last year.

Mr. Parsons, who had just started his own production company, was interested in developing a show inspired by his nephew, a gifted brainiac. Mr. Parsons was well aware that his idea seemed Sheldon-like, so he felt compelled to run it by Mr. Lorre, who he assumed would never do such a thing.

“Part of my hesitation in writing Chuck was I thought I was going to look like an idiot because who in their right mind hasn’t thought of this already?” he said.

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No one had.

“I just thought it seemed like a perfect idea,” Mr. Lorre said. “We’ve already done a lot of the heavy lifting. We knew about his family, we knew about his twin sister, his older brother, his meemaw and his relationship with his mother.” (Meemaw, for the uninitiated, is what Sheldon calls his grandmother — Annie Potts plays her in “Young Sheldon.”)

Mr. Moonves signed off immediately, and they went to work to find the young actor who could play him. They purposefully wrote a long, difficult monologue and that’s when they stumbled upon a video from Mr. Armitage.

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Iain Armitage and Shailene Woodley in “Big Little Lies.” Credit Hilary Bronwyn Gayle/HBO

“I have a pretty good memory so I could do most of it easily,” Mr. Armitage, 9, said. “Well not easily, you can’t memorize a three-page dialogue easily. More like, we did it and we did it and we did it to the point where it seemed natural.”

“Eventually, bazinga!” he added, referring to one of Sheldon Cooper’s trademark lines.

Still, there was another issue. In the wrong hands, Sheldon, socially maladroit as they come, could register as grating.

“Jim Parsons has a magical ability to be abrasive and annoying and still be loved for it,” Mr. Molaro said. “But when we’re doing it with a 9 year old it can come off as precocious and bratty and less appealing.”

That’s when, at the suggestion of Jon Favreau (“The Jungle Book,” “Iron Man”), who directed the pilot, they brought in a voice-over narration — it would relieve the pressure on Mr. Armitage to deliver all the withering jokes. And it brought Mr. Parsons directly into the show.

“I know how hard it will be to end this job of playing this character, and this is going to be a nice way for me to deal with it,” Mr. Parsons said. “Hopefully it won’t feel as much deathlike when that day comes.”

(“Big Bang,” it should be said, has already been renewed through 2019.)

But one of the more surprising subplots is why exactly Mr. Lorre is seeking a new challenge in his career by shedding much of what has made him successful. He’s become fabulously rich from “Big Bang” (and so have a lot of other people, including the studio, Warner Bros., as well as Mr. Parsons and the lead cast members, who make more than a reported $20 million a year).

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In between takes, Mr. Lorre considered the question of why, after years of mastery with the multicam, he took the gamble.

“Either way there’s a risk,” he said. “Cannibalizing a show that’s been remarkable for us and the other one — creating something that’s entirely different — is a different kind of risk, but it just feels like the right thing to do.’

“At this time in my life, to do something that I don’t know how to do and never done?” he continued. “That’s a reason to get up in the morning.”

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Article source: https://www.nytimes.com/2017/08/31/arts/television/young-sheldon-the-big-bang-theory-spinoff-cbs.html?partner=rss&emc=rss

Trump in Missouri Lays Groundwork for Tax Overhaul but Offers No Details

“Lower taxes on American business means higher wages for American workers,” he added.

Many economists believe it is not that simple. They argue that large corporate tax cuts would do relatively little — particularly in the near term — to boost wages or create jobs. Instead, they would boost corporate profits and benefit the wealthiest Americans who own the most corporate stock. There is little evidence that large tax cuts will prompt American corporations to invest more; they are already sitting on nearly $2 trillion in cash.

And with the economy growing at 3 percent — Mr. Trump exulted over the figure during his speech on Wednesday, saying, “I happen to be one who thinks it can go much higher” — the Federal Reserve has warned that it would move to curb faster growth for fear of inflation.

“Corporate profits are at record highs,” said Michael Linden, a fellow at the Roosevelt Institute. “Corporations are sitting on a vast amount of capital. Reducing their tax burden would have absolutely no effect on workers.”

Business groups eager to see substantial tax cuts argued the opposite.

“A reform package that lowers tax rates and encourages investment will enable and encourage more people to start businesses,” Karen Kerrigan, the president of the Small Business and Entrepreneurship Council, said in a statement. “Of course, if small-business owners can keep more of their hard-earned capital, they will reinvest those resources back into their employees and enterprises.”

That is a minority view among economists, but one that has been gaining ground.

For many years, experts agreed that corporate taxes did not affect wages. American companies were stuck in the United States, so they had no leverage to lower workers’ wages. Instead, taxes reduced profits.

The rise of globalization changed that calculus — particularly in industries like manufacturing, where it is relatively easy to move jobs overseas. The conventional estimate now is that workers bear about a quarter of the burden of taxation, but some estimates are much higher.

“If a firm faces a higher tax rate, you’re not going to pass that off to shareholders or consumers because you’re competing in a global marketplace,” said Aparna Mathur, a resident scholar at the American Enterprise Institute, a conservative research organization. “So it’s labor that bears the brunt.”

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It follows that when taxes are reduced, labor gets some of the benefit.

Mr. Trump called on Republicans and Democrats on Wednesday to come together to support the effort. He then singled out Senator Claire McCaskill, Missouri’s Democratic senator, who faces re-election next year, for a pointed threat.

“She must do this for you,” the president said of delivering on his tax-cut promises. “And if she doesn’t do it for you, you have to vote her out office.”

Beyond the politics, Mr. Trump made plain the broad outlines of his vision for overhauling the tax code: a combination of deep cuts for businesses large and small as well as for investors and the wealthiest, along with reductions for middle-class people, only partly paid for by eliminating some deductions and boosting economic growth. He spoke of a “business” tax cut rather than strictly a corporate one, a nod to his proposal to allow small businesses and large partnerships to take advantage of the same rate as corporations, a costly change.

In 2012, the neighboring state of Kansas slashed its taxation of business income, prompting a stampede by wealthy Kansans — including the head football coach at the University of Kansas — to turn themselves into businesses for tax purposes.

Democrats seized on the disconnect between Mr. Trump’s tax-cutting message and the large reductions for businesses and high earners that he has championed.

“If the president wants to use populism to sell his tax plan, he ought to consider actually putting his money where his mouth is and putting forward a plan that puts the middle class, not the top 1 percent, first,” Senator Chuck Schumer of New York, the Democratic leader, said in a conference call organized by progressive groups that are planning an intensive advertising and advocacy campaign to oppose Mr. Trump’s tax-cutting initiative.

Mr. Trump portrayed his plan as an evenhanded approach that would help both businesses and working people, suggesting that his call for scrapping deductions would harm wealthy people such as himself.

“I’m speaking against myself when I do this, I have to tell you,” remarked Mr. Trump.

Mr. Trump has not released his tax returns, making it impossible to assess the personal effect of his proposals. But independent analyses of the broad outlines have concluded that wealthy taxpayers would get most of the benefits. One proposal, the elimination of estate taxation, would benefit only the wealthy.

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Private negotiations among Gary D. Cohn, Mr. Trump’s top economic adviser; Steven Mnuchin, the Treasury secretary; and Republican congressional leaders and tax writers have yet to yield a proposal embraced by the White House and Republican lawmakers.

Mr. Trump may be forced to temper his ambitions. . Administration officials are now discussing a plan that would cut the 35 percent corporate tax rate to 20 to 25 percent, substantially higher than the 15 percent the president called for in April.

In his speech, Mr. Trump hinted at the challenge of securing a cut of the scale he wants, saying, “Ideally — and I say this for our secretary of the Treasury — we would like to bring our business tax rate down to 15 percent.”

Administration officials are also weighing leaving the top individual tax rate, which they wanted to lower to 35 percent, at its current 39.6 percent level.

The timetable has slipped considerably, as well. Mr. Mnuchin noted last week that his goal to produce a tax proposal by August never materialized.

In laying out what he called his principles for a tax overhaul, Mr. Trump made no mention of insisting that cuts be offset by corresponding increases to avoid adding to the deficit, essentially acknowledging publicly what his aides have privately for weeks: that he is willing to accept a plan that adds to the deficit, which had long been considered anathema to many conservative Republicans.

If Mr. Trump lacked specifics for his plan, the White House made sure he would not lack for cheerleaders. In the hours after he spoke, several members of his cabinet, including some who have little to do with his economic agenda, issued statements praising the president’s effort. Among them were Rex W. Tillerson, the secretary of state, and Ryan Zinke, the secretary of the interior, who said it would allow families to better afford vacations to national parks.

But many Republicans, even those broadly supportive of Mr. Trump’s plans, have scaled back their ambitions, conceding that the calendar makes a full-scale tax rewrite unlikely and resolving instead to push through the largest tax cut possible by New Year’s.

“It’s important to get this done this year,” said Senator Roy Blunt, Republican of Missouri, “and at some point, we’ll have to make the decision, ‘O.K., how much of the tax-code fight can we get into and still have the kinds of reduction in rates and achievable results that mean more American jobs and better American jobs?’”

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Article source: https://www.nytimes.com/2017/08/30/us/politics/trump-missouri-tax-plan.html?partner=rss&emc=rss

U.N. Human Rights Chief Condemns Trump’s Attacks on Media

“Is it not ‘dangerous’ for the media,” she continued, “to create false narratives and overzealous attacks against the president that the American people chose to be their leader? The president is focused on growing our economy, creating jobs, securing our border and protecting Americans. Since those are also the priorities of most Americans, hopefully the media will make covering them theirs.”

In an attempt to deflect criticism that he had stoked racial divisions by failing to unequivocally condemn the actions of neo-Nazis and white supremacists in Charlottesville as racist, Mr. Trump had accused the news media of giving a platform to hate groups.

He singled out by name The New York Times, CNN and The Washington Post.

Mr. al-Hussein said that the violence in Charlottesville was “an abomination.” The Nazi salutes, the display of swastikas and the anti-Semitic chants had no place in the United States or anywhere else, he said.

“To call these news organizations fake does tremendous damage,” Mr. al-Hussein added. “I believe it could amount to incitement. At an enormous rally, referring to journalists as very, very bad people — you don’t have to stretch the imagination to see then what could happen to journalists.”

Mr. Trump’s relationship with the news media has veered from lobbing labels like “dishonest” and “enemy of the people” at certain companies to agreeing to cordial sit-downs with those very outlets, like a wide-ranging interview with Times reporters in July.

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President Trump speaking in Phoenix last week. Credit Tom Brenner/The New York Times

He was criticized for retweeting a short video meme showing him wrestling with and punching a figure whose head had been replaced by the logo of CNN, a network he has called “garbage journalism.”

But the president has shown a strong preference for programs on the Rupert Murdoch-owned Fox network, like Sean Hannity’s program and “Fox Friends.”

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Before the presidential election, Mr. al-Hussein had warned that Mr. Trump could be a danger to international stability, but on Wednesday, at a news conference to discuss Venezuela, the human rights chief focused mainly on more recent domestic events.

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Mr. al-Hussein said the president’s demonization of the news media was “poisonous because it has consequences elsewhere.” If a journalist were to be harmed, he asked, “does the president not bear responsibility for this, for having fanned this?”

Countries that did not recognize the essential role of the news media could be inspired if journalists in the United States were attacked, he said. He noted that Cambodia’s government, for example, had withdrawn licenses from the news media and it had cited Mr. Trump as an inspiration for doing so.

Mr. al-Hussein also condemned the president’s comments regarding Muslims, minorities and transgender people as “grossly irresponsible.”

“It emboldens those who think similarly to sharpen their assaults on these communities,” he said.

The number of anti-Semitic attacks in the United States in the first three months of this year was 86 percent higher than in the same period last year, he said, citing figures from the Anti-Defamation League.

Mr. al-Hussein compared Mr. Trump to a bus driver “careening down a mountain path.” From a human rights perspective, he said, “it seems to be reckless driving.”

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Article source: https://www.nytimes.com/2017/08/30/world/europe/trump-press-united-nations.html?partner=rss&emc=rss

Six-Second Commercials Are Coming to N.F.L. Games on Fox

“So, for example, if a pitching coach comes to the mound just to have a conversation and you know that conversation is going to last 30 seconds, is a six-second unit in there going to add to the experience and then be able to decrease the amount of ad inventory somewhere else?” Mr. Shanks said.

The effort underscores the new strategies that broadcasters are deploying to keep the attention of consumers who often clutch a smartphone or tablet — or both — while watching their shows, or avoid ads entirely through Netflix. It’s a major shift from the typical spots that TV networks sell and will put a new burden on marketers to not only attract viewers’ attention but also pitch a product in less time than it takes to read this sentence out loud.

On network television, the trend has been toward shorter commercials: In the first half of this year, 36 percent of national TV ads were 15 seconds long while 49 percent lasted 30 seconds, Nielsen data shows. In 2014, 29 percent of ads were 15-second spots, while 61 percent were 30 seconds long.

Part of the network’s pitch with the Teen Choice Awards was the messaging around the shorter commercials, such as telling viewers that their programming would return in less than 30 seconds, then airing several of the short ads. That improved the odds people would stay in their seats while fostering some good will with a quicker interruption.

Video

What a 6-Second Ad Looks Like

Fox first tested six-second TV commercials with its broadcast of the Teen Choice Awards in mid-August. This video clip shows one example of the ads in action during an extra-short commercial break.

Publish Date August 30, 2017. .

That rationale helped Fox charge roughly as much for the six-second spots on the show as it did for 15-second ads, according to people familiar with the negotiations, and reduced the program’s overall commercial time.

Similarly, Fox has been able to maintain the premium for the six-second ads it is selling now by pointing to lucrative placements, like just before kickoff for an N.F.L. game, the people said. While the ads are being sold as part of broader packages, a six-second spot could cost, at the high end, around $200,000, they said.

Six seconds has become something of a magic number for video ads online. Fox Networks Group said in June that it would follow YouTube’s endorsement of that length and introduce six-second ads to shows on its digital platforms and then eventually on TV. YouTube has championed the format since last year as optimal for brands.

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“It’s a long enough amount of time to actually tell a story, whether it’s to convey an emotion or deliver a product message or a piece of news, and yet short enough that the consumer is not irritated by being forced to watch an ad,” said Tara Walpert Levy, vice president of agency and media solutions at YouTube and Google.

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Separately, Facebook said recently that people scrolling through its News Feed on their mobile devices watched video ads for 5.7 seconds on average once they automatically played. (Often, that’s without sound.)

Bringing that format to TV requires some rethinking for advertisers. The effort is being led by Joe Marchese, who was named head of ad sales for Fox Networks Group in May and previously co-founded a digital ad technology firm that was acquired by 21st Century Fox.

Mr. Marchese is aware of the challenges but unperturbed. “The brands and agencies that are able to buy these new models, not stuck in legacy-only buying structures, will be the ones that get to take advantage,” he said in an email.

Dave Penski, who oversees media investments as chief executive of Publicis Media Exchange Americas, said that while six-second ads might not work for brands aiming to sell complicated products, he anticipated interest from large sports advertisers that want to reinforce longer messages or simply remind consumers about already recognizable goods.

“It’s an innovation that’s more cross-screen than others because there’s already, certainly in the digital world, a huge amount of six-second advertising that’s going on out there,” he said.

Mr. Shanks said early examples would come from “the bigger marketers who have a variety of messages throughout the game.’’ The ads are unrelated to statements from the N.F.L. this year about improving commercial interruptions.

Dave Campanelli, who oversees video investments at Horizon Media, an ad-buying firm, said he would explore Fox Sports’s six-second TV ads but was skeptical that the unit would become a new standard, partly because of the constraints around crafting messages of that length.

He agreed, though, that broadcasters needed to find more ways to shorten commercial breaks and the number of brands featured there.

“With so many different ways to record and fast-forward, or look at your phone during the commercial break and not pay attention, or just change the channel, that’s hurt commercial retention and hurt commercial viewership,” he said. “Playing with pods and commercialization will definitely change over time and become a bigger piece of what we do.”

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Article source: https://www.nytimes.com/2017/08/30/business/media/nfl-six-second-commercials.html?partner=rss&emc=rss

Top Fox TV Executive Exiting, and May Join AMC

Fox tapped a new president of entertainment on Wednesday, as it continued to try to find a solution for its struggling programming slate. And the move may have opened the door for AMC to claim a new programming chief of its own.

David Madden, the outgoing president, will be replaced by Michael Thorn, a development executive at Fox’s in-house TV studio, the network said. Mr. Thorn will effectively be the new No. 2 at Fox, reporting to Dana Walden and Gary Newman, the co-chief executives of the Fox Television Group.

His work will be cut out for him. Though the network airs “Empire,” which still has strong, if flagging, ratings, it has been in a prolonged slump. Earlier this year, Lachlan Murdoch, the executive chairman of 21st Century Fox, told investors that the network’s performance had been “frustrating for us all.”

Other than “Empire,” the network has no big hits, and there is heavy skepticism that its slate of new shows in the fall will produce one.

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David Madden was in discussions to take a position at AMC after leaving Fox, where he was the network’s president of entertainment. Credit Ilya S. Savenok/Getty Images

One of Fox’s issues is that its TV studio has produced a number of hits for other networks — including FX’s “American Crime Story” (a corporate cousin) and NBC’s “This is Us” — but none for Fox since “Empire” debuted two and a half years ago.

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Mr. Thorn helped oversee the development of both “Empire” and “This is Us,” and other shows like ABC’s “Speechless” and “Fresh Off the Boat.”

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Article source: https://www.nytimes.com/2017/08/30/business/media/fox-television-david-madden-amc.html?partner=rss&emc=rss

Tokyo & Washington to limit North Korean access to oil

© Jim Watson‘Talking is not the answer’ for North Korea, Trump tweets

Along with South Korea, the countries have agreed it is time to put more pressure on North Korea, according to Nikkei.

On Tuesday, Japan’s UN Ambassador Koro Bessho urged for additional sanctions against Pyongyang.

When asked by reporters about the possibility of an oil embargo, Bessho suggested that was an option.

China has opposed the embargo, saying it can worsen the lives of ordinary North Korean citizens.

On Tuesday, North Korea launched an intermediate-range Hwasong-12 ballistic missile which passed through Japan’s northern airspace. This was the fifth time North Korean missiles have flown over Japan.

Pyongyang hinted the next missile could hit the US Pacific territory of Guam.

China supplies most of North Korea’s crude, although Beijing no longer reports its oil shipments to the isolated country. According to South Korean data, China supplies about 500,000 tons of crude oil annually. China also exports over 200,000 tons of oil products, according to United Nations data.

In June, Reuters reported Chinese national oil corporation CNPC significantly cut fuel sales to North Korea. According to the agency, the decision was made more for business reasons rather than political. CNPC demands upfront payments, and North Korea has failed to pay recently.

FILE PHOTO:  South Korea's Hyunmoo Missile II © ReutersTit for tat: Seoul unveils missiles that may counter North Korea (VIDEO)

North Korea has some limited crude oil exploration, according to the Energy Information Administration, but doesn’t produce petroleum.

During the country’s industrial peak in the 1970s and 1980s, it imported oil from China and the Soviet Union at below-market prices.

However, the deals ended after the Cold War, and North Korea’s oil consumption dropped from 76,000 barrels per day in 1991 to an estimated 15,000 in 2016, the EIA reports.

China has also slashed coal imports from North Korea. Shipments of coal slumped by 75 percent in the first half of the year. Coal sales are the biggest source of foreign currency for Pyongyang.

However, China-North Korea trade surged 10 percent to $2.6 billion in the first half of the year, angering US President Donald Trump.

Beijing said the surge was mainly due to an increase in textile exports and no international sanctions were broken.

Article source: https://www.rt.com/business/401457-us-japan-north-korea-oil/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Indonesia wrests control of huge copper mine from American firm

The US holding will reportedly be reduced to 49 percent from the current 90 percent with date of transfer to be negotiated.

An oil refinery of Essar Oil, which runs India's second biggest private sector refinery, is pictured in Vadinar in the western state of Gujarat, India © Amit DaveRosneft enters India’s energy market acquiring Essar Oil for $13bn

The world’s biggest publicly listed copper miner also agreed to build a smelter in Indonesia within five years, according to Energy Minister Ignasius Jonan.

Grasberg is the world’s largest gold mine and the third largest copper mine in the Indonesian province of Papua. The US company along with its local unit have been conducting mining and exploration activities in the area for almost 30 years.

On Tuesday, the shares of Freeport closed over two percent lower at $15.21.

The latest decision, which leaves Freeport operating the mine, is seen as a complete victory for Indonesia’s President Joko Widodo. The company will reportedly be allowed to mine until 2041 under a special license.

“The result of this negotiation is in accordance with the instructions of President Joko Widodo to prioritize the national interest, the interests of the people of Papua, the sovereignty of the state in the management of natural resources, and keep the investment climate conducive,” the ministry said.

READ MORE: Rosatom plans to sell 49% stake in $22bn Turkish nuclear power plant

The company’s work in the country has been strongly opposed by Indonesians, with locals in the Papua staging violent protests against foreigners mining the country’s mineral resources.

Article source: https://www.rt.com/business/401449-indonesia-wrests-control-of-huge/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

U.S. Economy Grew 3% in 2nd Quarter, Fastest Pace in 2 Years

Most economists are expecting the economy to expand at a rate of roughly 3 percent in the second half of 2017. That pace should be strong enough to keep job growth and wages on track for further gains, while keeping the threat of inflation modest for now.

Besides wild cards like Hurricane Harvey’s impact on a broad swath of the Gulf Coast, and political uncertainty about issues like tax reform and a possible increase in infrastructure spending, traders are also keeping an eye on the Federal Reserve.

Most experts believe the central bank will raise rates just once more this year, but a faster economy or an increase in wages or inflation could prompt policy makers to move more quickly to tighten monetary policy and shrink the Fed’s balance sheet in 2018.

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Shoppers in New York. Economic growth in the last quarter was marked by strong consumer spending. Credit Justin Lane/European Pressphoto Agency

The acceleration in spending also suggests that a so-called Trump Bump — improved sentiment among consumers and more optimism among business leaders — may be translating into concrete actions like homeowners buying new appliances and companies investing in new software or equipment.

“The consumer is in the driver’s seat in terms of economic growth,” said Scott Anderson, chief economist at Bank of the West in San Francisco. “It puts us on a stronger path going into the third quarter, although Hurricane Harvey introduces some uncertainty.”

Mr. Anderson expects growth in the range of 3 to 3.5 percent in the current quarter, but he said the hurricane could shave as much as 0.3 percentage points off that figure. A hit like that would mostly be reversed in the year’s final quarter as rebuilding efforts kicked in, he added.

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It will take more than one quarter’s data for the White House or congressional Republicans to be able to claim credit for lifting the economy’s growth trajectory. Under President Barack Obama in 2013 and 2014, quarterly growth occasionally exceeded 3 percent. But, in contrast to what happened during recoveries in the 1990s and mid-2000s, annual growth never passed that threshold.

If the economy were to sustain the current pace of expansion, it would be a significant uptick from the 2 percent annual growth rate that has mostly prevailed since the recovery began.

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While a difference of a single percentage point may not sound like much, the stakes are huge in a $19 trillion economy. The acceleration could also help lift wage growth, which has been frustratingly slow for years despite steady hiring, a surging stock market and rising home prices.

Private-sector estimates of third-quarter growth have also inched higher lately. Macroeconomic Advisers now forecasts a 3.4 percent expansion rate for the current quarter, up from the 2.9 percent figure it forecast earlier this month.

Increases in consumer spending and business investment powered nearly all of the revision issued on Wednesday. Factors like net exports and residential investment barely changed, while government spending added only 0.1 percentage point.

The Commerce Department offers three estimates of growth as more data becomes available, with the final figure for second-quarter economic activity to be released on Sept. 28.

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Article source: https://www.nytimes.com/2017/08/30/business/economy/gdp.html?partner=rss&emc=rss

Texas shale hit hard by Hurricane Harvey

As has already been widely noted, Hurricane Harvey has knocked out major refineries along the Gulf Coast. Goldman Sachs said in a research note that an estimated 3 million barrels per day of refining capacity was offline, as of Monday. On Tuesday, ExxonMobil began winding down some operations at its Beaumont, TX refinery as the storm headed east towards eastern Texas and Louisiana. The outage at the 362,000 bpd facility would add to the region’s woes. Also, the US’ largest refinery, Motiva’s Port Arthur facility, which produces over 600,000 bpd, has already curtailed its operations and was considering deeper reductions at the time of this writing.

© Joe Raedle / Getty Images / AFPWhy oil prices keep falling with US refineries knocked out by storm

Obviously, the outage of such a large volume of refining capacity is sending gasoline prices sharply up. But the effect on crude oil is the opposite – refinery outages mean a steep drop in demand. WTI is down nearly 5 percent since last week.

All of the damage from the hurricane not only means that refineries will be purchasing a lot less crude, but the millions of people along the Gulf Coast will also be consuming a lot less gasoline. That could blunt the impact in the refined products market, but it represents a double whammy for crude oil – less refining runs and demand destruction on the consumer end.

To make matters worse, some midstream operations are also affected. The closure of some key pipelines could halt shipments from Texas oil fields. That alone could disrupt operations at Gulf Coast refineries. For example, Reuters reported that Motiva was weighing cuts at its refinery not only because of the risk of floods, but also because it was having trouble obtaining enough crudefrom all the service interruptions elsewhere. Also, Marathon Petroleum Corp. said it could shut down its 451,000 bpd refinery in Texas City because of a shortage of oil, Bloomberg reports.

Ultimately, that could cause a huge problem upstream. “If there’s no place for it to go, you can’t keep jamming more crude into the line,” Libby Toudouze, a partner at Cushing Asset Management, told Bloomberg in a telephone interview.

An oil tank damaged by Hurricane Harvey near Seadrift, Texas, August 26, 2017 © Rick WilkingHurricane damage shuts down major US oil refineries

“While it is premature to speculate on the ultimate impact to our production, we anticipate volumes will be restrained until Gulf Coast and Houston refineries are back online,” Gordon Pennoyer, a spokesman for Chesapeake Energy Corp., told Bloomberg.

As a result, the oil will be backed up in the shale fields of the Eagle Ford and even the Permian. That could force production cutbacks if there is no place to store the crude.

A lot of Eagle Ford producers were cutting back anyway as the storm hit, but the refinery and pipeline outages could hit the sector as a whole.

“Given the enormous level of rainfall along the Texas Gulf Coast the past 3-4 days, we expect most operators in this area will experience near-term field level and/or takeaway issues,” Capital One Securities wrote in a research note on Monday.

The WSJ, citing industry analysts, says as much as 400,000 to 500,000 bpd of Eagle Ford shale production could be offline, although some think the figure is much higher. Worse, once offline, shale wells could lose pressure, meaning that when brought back online, they could be less productive.

To recap, the problems for Texas shale drillers are multiple: refineries aren’t buying their crude, pipelines are shipping their crude, and regional consumers aren’t burning their crude. Plus the hurricane is forcing them to shut down wells, which could inflict permanent damage. Needless to say, Eagle Ford shale drillers are being hit hard. The share price of Carrizo Oil Gas, an Eagle Ford-focused shale driller, has plunged by as much as 15 percent over the past week. And it isn’t alone. A lot of other shale EPs in South Texas are also seeing similar declines in their share prices, as CNBC notes.

© NASAHarvey makes 3rd landfall, strikes Louisiana coast for 1st time (PHOTO, VIDEOS)

The refinery outages could rise as the hurricane swings towards Louisiana. According to Tudor Pickering Holt Co., as much as 30 percent of the nation’s refining capacity could be knocked offline if Louisiana facilities are forced to close, up from 15 percent over the weekend.

“This is a significant headwind for WTI,” Helima Croft of RBC Capital Markets told CNBC.

“Undoubtedly, to have this much crude backing up, right before maintenance season, right before an SPR release, I mean, that is not good in any way for WTI.” It could ensure WTI doesn’t move back to $50 for the foreseeable future.

In a global context, however, the impact will be more muted on crude markets. Amrita Sen of Energy Aspects says global demand growth “is absolutely soaring right now,” which should ultimately push prices up. However, the disruptions in the U.S. Gulf Coast could lead to a much wider disparity between Brent and WTI, a gap that is now approaching $6 per barrel.

A lot of these effects could dissipate if the outages are short-lived, but if the disruptions persist, the effects will grow much worse.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/401428-texas-shale-hit-harvey/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Gold price spikes over North Korea tensions

North Korean leader Kim Jong Un inspects a long and medium-range ballistic rocket launch drill in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 30, 2017. © KCNAPyongyang calls latest medium-range missile test a ‘prelude to containing Guam’

Gold was trading at $1,311.34 per troy ounce on Wednesday, managing to breach the psychological $1,300 level for the first time since September 2016.

“The markets really fear uncertainty of any kind, and this adds uncertainties,” George Gero, managing director at RBC Capital Markets told the Wall Street Journal.

Tensions between the US and North Korea have supported gold in recent weeks. The price rose almost one percent on Tuesday morning after the missile launch and uncertainty on how Washington may respond. President Trump said “all options are on the table” to deal with the threat.

An earlier threat by Pyongyang to fire a missile over Japan toward the US territory of Guam prompted President Trump to warn he would retaliate with “fire and fury.” Trump said force was an option to prevent Kim Jong-Un from gaining an intercontinental missile that could deliver a nuclear weapon to the US.

A weaker dollar also supported gold prices, as it becomes cheaper to foreign buyers when the US currency falls.

Meanwhile, analysts and investors are waiting to see if gold could stay above $1,300 if the tension between the US and North Korea subsides.

“I think we’re going to stay above $1,300, but we’re going to have more volatility as headline traders keep an eye on central banks,” said Gero.

“Assuming things don’t escalate from here, and we hope that they don’t, we wouldn’t be surprised to see gold give a few dollars up in the coming hours or days,” Jordan Eliseo, Sydney-based chief economist at Australian Bullion told Fortune.

Investors will watch to gauge whether bullion can remain above the $1,300 level and that “number, instead of being something of a ceiling, can become something of a floor,” he added.

Article source: https://www.rt.com/business/401419-gold-gains-north-korea/?utm_source=rss&utm_medium=rss&utm_campaign=RSS