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California officials want federal disaster aid for the state’s salmon fishing industry, they said Friday following the closure of recreational and commercial king salmon fishing seasons along much of the West Coast due to near-record low numbers of the iconic fish returning to their spawning grounds.

Dealing a blow to the salmon fishing industry, the Pacific Fishery Management Council unanimously approved the closure Thursday for fall-run chinook fishing from Cape Falcon in northern Oregon to the California-Mexico border. Limited recreational salmon fishing will be allowed off southern Oregon in fall.

Much of the salmon caught off Oregon originate in California’s Klamath and Sacramento rivers. After hatching in freshwater, they spend an average of three years maturing in the Pacific, where many are snagged by commercial fishermen, before migrating back to their spawning grounds, where conditions are more ideal to give birth. After laying eggs, they die.

“The forecasts for chinook returning to California rivers this year are near record lows,” Council Chair Marc Gorelnik said after the vote in a news release. “The poor conditions in the freshwater environment that contributed to these low forecasted returns are unfortunately not something that the council can or has authority to control.”

Decline follows droughts

Biologists say the chinook population has declined dramatically after years of drought. Many in the fishing industry say a rollback of federal protections for endangered salmon under the Trump administration allowed more water to be diverted from the Sacramento River Basin to agriculture, causing even more harm.

“The fact is that just too many salmon eggs and juvenile salmon died in the rivers in 2020 as a direct result of politically driven, short-sighted water management policies, under the prior federal administration, to ‘maximize’ irrigation river water deliveries during a major drought,” said Glen Spain, acting executive director of the Pacific Coast Federation of Fishermen’s Associations. “Unfortunately, this purely politically driven mistake will cost our fishing-dependent coastal communities dearly.”

California fishing industry representatives and elected leaders said federal aid must be released quickly and efforts need to be ramped up to restore salmon habitat in California rivers with better water management and the removal of dams and other barriers.

“We have to make sure that the policies and practices and the rest are not such that they are defying the evolutionary progress of salmon,” U.S. Rep. Nancy Pelosi said Friday, speaking in San Francisco, California, in the rain, surrounded by fishers who spoke of their concerns about making ends meet during the closure.

The Democratic congresswoman, whose district includes the San Francisco Bay area, pledged to push for the Biden administration to act quickly on the state’s request to declare the situation a fishery resource disaster, the first step toward a disaster assistance bill that must be approved by Congress.

In a letter to U.S. Secretary of Commerce Gina Raimondo seeking the declaration, the California governor’s office stated that the projected loss of the 2023 season is more than $45 million — and that does not include the full impact to coastal communities and inland salmon fisheries.

‘A lot of fear and panic’

California’s salmon industry is valued at $1.4 billion in economic activity and 23,000 jobs annually in a normal season and contributes about $700 million to the economy and supports more than 10,000 jobs in Oregon, according to the Golden State Salmon Association.

“There’s a lot of fear and panic all up and down the coast with families trying to figure out how they’re going to pay the bills this year,” said John McManus, the group’s senior policy director.

Experts fear native California salmon are in a spiral toward extinction. Already, California’s spring-run chinook are listed as threatened under the Endangered Species Act, while winter-run chinook are endangered along with the Central California Coast coho salmon, which has been off-limits to California commercial fishers since the 1990s.

Recreational fishing is expected to be allowed in Oregon only for coho salmon during the summer and for chinook after Sept. 1. Salmon season is expected to open as usual north of Cape Falcon, including in the Columbia River and off Washington’s coast.

There’s some hope that the unusually wet winter in California, which has mostly freed the state of drought, will bring relief. An unprecedented series of powerful storms has replenished most of California’s reservoirs, dumping record amounts of rain and snow and busting a severe three-year drought. But too much water running through the rivers could also kill eggs and young hatchlings.
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America’s employers added a solid 236,000 jobs in March, reflecting a resilient labor market and suggesting that the Federal Reserve may see the need to keep raising interest rates in the coming months. 

The unemployment rate fell to 3.5%, not far above the 53-year low of 3.4% set in January. Last month’s job growth was down from February’s sizzling gain of 326,000. 

Friday’s government report suggested that the economy and the job market remain on solid footing despite nine rate hikes imposed over the past year by the Fed. The March jobs gain may lead the Fed to conclude that the pace of hiring is still putting upward pressure on wages and inflation and that further rate hikes are necessary. When the central bank tightens credit, it typically leads to higher rates on mortgages, auto loans, credit card borrowing and many business loans. 

Despite last month’s brisk job growth, the latest economic signs increasingly suggest that an economic slowdown may be upon us. Manufacturing is weakening. America’s trade with the rest of the world is declining. And, though restaurants, retailers and other services companies are still growing, they are doing so more slowly. 

For Fed officials, taming inflation is job one. They were slow to respond after consumer prices started surging in the spring of 2021, concluding that it was only a temporary consequence of supply bottlenecks caused by the economy’s surprisingly explosive rebound from the pandemic recession. 

Only in March 2022 did the Fed begin raising its benchmark rate from near zero. In the past year, though, it has raised rates more aggressively than it had since the 1980s to attack the worst inflation bout since then. 

And as borrowing costs have risen, inflation has steadily eased. The latest year-over-year consumer inflation rate — 6% — is well below the 9.1% rate it reached last June. But it’s still considerably above the Fed’s 2% target. 

Complicating matters is turmoil in the financial system. Two big American banks failed in March, and higher rates and tighter credit conditions could further destabilize banks and depress borrowing and spending by consumers and businesses. 

The Fed is aiming to achieve a so-called soft landing — slowing growth just enough to tame inflation without causing the world’s biggest economy to tumble into recession. Most economists doubt it will work; they expect a recession later this year. 

So far, the economy has proved resilient in the face of ever-higher borrowing costs. America’s gross domestic product — the economy’s total output of goods and services — expanded at a healthy pace in the second half of 2022. Yet recent data suggests that the economy is losing momentum. 

On Monday, the Institute for Supply Management, an association of purchasing managers, reported that U.S. manufacturing activity contracted in March for a fifth straight month. Two days later, the ISM said that growth in services, which accounts for the vast majority of U.S. employment, had slowed sharply last month. 

On Wednesday, the Commerce Department reported that U.S. exports and imports both fell in February in another sign that the global economy is weakening. 

The Labor Department on Thursday said it had adjusted the way it calculates how many Americans are filing for unemployment benefits. The tweak added nearly 100,000 claims to its figures for the past two weeks and might explain why heavy layoffs in the tech industry this year had yet to show up on the unemployment rolls. 

The Labor Department also reported this week that employers posted 9.9 million job openings in February, the fewest since May 2021 but still far higher than anything seen before 2021. 

In its quest for a soft landing, the Fed has expressed hope that employers would ease wage pressures by advertising fewer vacancies rather than by cutting many existing jobs. The Fed also hopes that more Americans will start looking for work, thereby adding to the supply of labor and reducing pressure on employers to raise wages. 
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Nigeria has secured an $800 million relief package from the World Bank to help cushion the impact of a plan to remove in June a long-held fuel subsidy. 

Nigeria’s finance minister, Zainab Ahmed, on Wednesday said the money would be disbursed to 10 million households as cash. She said authorities would also develop a mass transit system to ease the cost of daily commutes. 

Ahmed made the announcement to journalists at the state house after a weekly Cabinet meeting with officials.

She said the money was ready to be disbursed but did not provide details on how much beneficiaries would receive.

“We’re on course,” she told the local station TVC News. “We made that provision to enable us [an] exit fuel subsidy by June 2023. We’ve secured some funding from the World Bank. That is the first tranche of the palliatives that would enable us to give cash transfers to the most vulnerable in our society.”

Ahmed said authorities were also working with the incoming government to deploy non-cash interventions, including a mass transportation system to ease daily commutes for workers.

The ruling party candidate Bola Ahmed Tinubu was declared the winner of February’s presidential election and will be sworn in next month.

It is unclear if the new administration will discontinue the subsidy program. 

The country spends more than $850 million each month on fuel subsidies, according to the Nigerian National Petroleum Company Limited. 

And the past government’s decision to halt the costly venture has sparked mass protests and unrest across the country. 

“How much will each household be getting? Let’s say roughly around 60,000 [naira],” said Emmanuel Afimia, the head of Enermics Consulting Limited, an oil and gas consulting firm. “But then once that is exhausted, what’s next? How do they intend to select the 10 million households? Who’s sure that the10 million households will receive this package? I just don’t believe it.”

Nigeria is one of Africa’s leading producers of crude oil, but Nigeria has been struggling to stem oil theft and revive local refineries.

The Independent Petroleum Marketers Association of Nigeria said this week that Nigeria must commence local refining before removing subsidies to keep costs of petroleum products within reach.

But Afimia said citizens have already gotten used to fuel shortages and price hikes.

“People have bought fuel at ridiculous prices in December and January. So, if [the] subsidy is finally removed by June and then the price goes up, Nigerians may actually frown, but it won’t be as bad.”

Nigeria is reeling from controversial elections and a cash crunch resulting from the country’s currency reform policy that took effect in January.

This week, the World Bank said the incoming government faces weak growth and multiple policy challenges.
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The Biden administration is pressing its case for a new approach to global trade, arguing that America’s traditional reliance on promoting free trade pacts failed to anticipate China’s brass-knuckled brand of capitalism and the possibility a major power like Russia would go to war against one of its trading partners.

In a speech Wednesday at American University, U.S. Trade Representative Katherine Tai called for a strategy of what’s known as “friend-shoring” — building up supply chains among allied countries and reducing dependence on geopolitical rivals such as China. Rising tension with Beijing and supply-chain bottlenecks arising from the COVID-19 pandemic have highlighted the risks of relying too heavily on Chinese suppliers.

“Trade policy cannot solve all the wrongs in the world, but it can help more people both at home and abroad share the benefits of increasing economic growth,” Tai said. “Let us not be content with reruns of the old. Let us write a new script for a brighter tomorrow.”

The rethinking of trade goes beyond the simple issue of lowering tariffs and signing broad pacts. In her speech, Tai noted the elimination of regulatory barriers last year that allowed U.S. farmers to export potatoes to Mexico, ongoing talks to form an Indo-Pacific Economic Framework that could possibly counter China in Asia, and the recent agreement on critical minerals with Japan.

Tai said that the Biden administration settled “long-standing disputes” with the European Union to focus on shared goals such as a 2021 agreement to put tariffs on “dirty” steel and aluminum produced by China, while supporting the mills in Europe and North America.

WTO reform

The administration is also seeking to work with allies to reform the World Trade Organization, the Geneva-based agency that enforces global trade rules. The WTO has been crippled for more than three years: Its top appeals court hasn’t functioned since the United States blocked the appointment of new judges to the panel. The U.S. and others had argued that the WTO was ill-equipped to deal with China’s unconventional blend of capitalism and state control of the economy.

“We did not anticipate that China would end up being so globally dominant in so many ways,” Tai said in an interview Tuesday ahead of her speech.

When China joined the WTO in 2001, many in the U.S. assumed that it would open its economy and even allow for more political freedom. Instead, China ran up huge trade surpluses with the United States as it became a leading center of manufacturing and the world’s second-largest economy. The Chinese government took advantage of its access to the U.S. market while often discriminating against U.S. and other foreign firms. And China has continued to crack down on political dissent.

Russian invasion

For decades after World War II, U.S. trade policy was based partly on the idea that increased global trade would reduce tensions among countries, that nations that did business with each other would not go to war. But Russian President Vladimir “Putin’s decision to invade Ukraine flies in the face of how we thought things would work,” Tai said.

The Biden administration has upset many of its traditional allies, especially in Europe, by keeping some of former President Donald Trump’s protectionist policies and by aggressively promoting Made-in-America manufacturing.

But Tai insisted the United States wanted to work with allies to build a better, fairer world trading system. The problem, she told reporters, is that U.S. allies are only offering criticisms, instead of putting together their own plans to overhaul the trade system

“We’re the only ones who are out there putting forward an affirmative vision,” she said.
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In a grim report issued last week, the World Bank warned of a slow-growth crisis in the global economy that could persist over the coming decade unless governments worldwide adopt what it calls “sustainable, growth-oriented policies.”

The World Bank report says that global growth in gross domestic product between 2022 and 2030 is on track to decline to about 2.2%, down one-third from the rate that applied between 2000 and 2010. Although the growth rate in developing economies will be higher, it will also likely decline by one-third, from 6% to 4%, according to the document titled “Failing Long-Term Growth Prospects.”

The report says that a number of factors are depressing long-term growth prospects, including an aging workforce, slower population growth and lower rates of productivity-enhancing investment. The negative effects are exacerbated by global shocks to the economy, including the lingering effects of the COVID-19 pandemic and the ongoing war in Ukraine.

“A lost decade could be in the making for the global economy,” said Indermit Gill, the World Bank’s chief economist, in a release accompanying the report. “The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times — stubborn poverty, diverging incomes, and climate change. But this decline is reversible. The global economy’s speed limit can be raised — through policies that incentivize work, increase productivity, and accelerate investment.”

Growth strategies

The World Bank report includes specific recommendations that, according to its own estimates, would boost the average predicted global economic growth rate to 2.9% from 2.2% through the remainder of the decade.

The report urges governments worldwide to lower inflation and assure stability in the financial sector. The report also recommends reducing sovereign debt levels, which would free up funds for investment in productivity-enhancing infrastructure.

Recommended infrastructure investments include upgraded transportations systems and environmentally sustainable improvements to agriculture, manufacturing, and land and water management systems.

The report also calls on countries to lower barriers to international trade, focus on ways to globalize service economy growth and increase labor force participation.

Social progress slowed

Macroeconomists generally agree with much of the World Bank’s assessment, saying that concerns about global growth have been on the rise for several years, and warn that the consequences of a sustained decline — especially in emerging economies — might be severe.

Liliana Rojas-Suarez, a senior fellow at the Center for Global Development and director of its Latin American Initiative, told VOA that growth began to slow several years ago in Latin America.

“A period of high growth in Latin America occurred in 2000 to 2014,” she said. “That was a period when commodity prices were very high and the region was really growing. But the important thing is that social indicators improved dramatically. Poverty declined, income inequality improved, food security, educational health — name any indicators, they were all improving.”

Since then, she said, much of that progress has reversed.

“Growth is not the only thing,” she said. “You need many more things to actually improve poverty and inequality, but growth is an important component. After [2014], it stopped, and now the social indicators are reverting.”

Impacts unevenly distributed

In a news briefing last week, Adam Posen, president of the Peterson Institute for International Economics, said the World Bank was correct to warn of a difficult period ahead but that the effects were not likely to be evenly distributed.

“If you look at the last couple years, not only was there surprising resilience in Europe, but a big surprise — a positive surprise — has been the sustained growth in India, Brazil, Mexico, Indonesia, as well as China, once you take out COVID. Indonesia plus India plus Brazil plus Mexico is an awful lot of human beings and an awful lot of global GDP.”

He said that all of those economies had weathered a year of Federal Reserve interest rate hikes without apparent damage to their own domestic currencies, and that most appear well-positioned to continue growing. However, he noted, the same thing cannot be said about many other regions of the globe.

“The World Bank, I think, is right to draw concern to the possibility of a lost decade in sub-Saharan Africa and Central America and South Asia,” Posen said. “An awful lot of human beings are at risk or are facing very grim situations. But from a global GDP outlook, or even a global population outlook, most of the major [emerging markets] along with most of the G20, essentially, are doing pretty well. I think it should be a concern for the poor people of the world but not for the world in general.”

New database

As part of the report, the World Bank announced that it is now using a new public database to assess global GDP growth, with data currently extending from 1981 to 2021. The database, according to the World Bank, is the first to track the way in which temporary economic disruptions, including “recessions and systemic banking crises,” affect economic growth over time.

The latter has particular relevance today, given the recent failures of several U.S. banks and the forced takeover of Swiss financial services giant Credit Suisse by UBS.

“Recessions tend to lower potential growth,” Franziska Ohnsorge, a lead author of the report and manager of the World Bank’s Prospects Group, said in a statement. “Systemic banking crises do greater immediate harm than recessions, but their impact tends to ease over time.”

Rojas-Suarez of the Center for Global Development praised the creation of the new database, saying that it “could be very useful, not only for future research but also for monitoring countries moving forward, and for international comparisons.”
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McDonald’s announced Monday plans to lay off a number of corporate employees and closed U.S. offices through Wednesday as the company prepares to deliver the notifications as part of a larger restructuring plan.

The international fast-food company closed its U.S. offices and some international ones “out of respect,” and to “provide dignity, confidentiality, and comfort to our colleagues,” said an anonymous Reuters source who is familiar with the company and was not authorized to speak to the media.

According to the source, McDonald’s will have more employees beginning new roles or receiving promotions this week than being laid off. The company has more than 150,000 employees globally, with about 70% based outside of the United States.

The layoffs do not include the more than 2 million workers in franchised McDonald’s restaurants around the world.

Several tech-industry companies, including Amazon, Meta, Twitter and Microsoft have announced layoffs in recent months too. McDonald’s competitor Wendy’s also announced restructuring and possible corporate layoffs in January.

At the start of 2023, McDonald’s warned employees that layoffs were coming as it reorganized the company to increase efficiency and set April 3 as the date by which they would share more details with employees. 

“We have a clear opportunity ahead of us to get faster and more effective at solving problems for our customers and people, and to globally scale our successful market innovations at speed,” the company said in a memo to workers, reported by The Associated Press.

The Wall Street Journal reported that McDonald’s declined to comment on how many employees would be affected by the layoffs, but the Reuters source said the number will tally in the hundreds.

Some information from this report came from Reuters and The Associated Press. 
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Major oil-producing countries led by Saudi Arabia said they’re cutting supplies of crude — again. This time, the decision was a surprise and is underlining worries about where the global economy might be headed.

Russia is joining in by extending its own cuts for the rest of the year. In theory, less oil flowing to refineries should mean higher gasoline prices for drivers and could boost the inflation hitting the U.S. and Europe. And that may also help Russia weather Western sanctions over its invasion of Ukraine at the expense of the U.S.

The decision by oil producers, many of them in the OPEC oil cartel, to cut production by more than 1 million barrels a day comes after prices for international benchmark crude slumped amid a slowing global economy that needs less fuel for travel and industry.

It adds to a cut of 2 million barrels per day announced in October. Between the two cuts, that’s about 3% of the world’s oil suppl

Here are key things to know about the cutbacks:

Why are oil producers cutting back?

Saudi Arabia, OPEC’s dominant member, said Sunday that the move is “precautionary” to avoid a deeper slide in oil prices.

Saudi Energy Minister Abdulaziz bin Salman has consistently taken a cautious approach to future demand and favored being proactive in adjusting supply ahead of a possible downturn in oil needs.

That stance seemed to be borne out as oil prices fell from highs of over $120 per barrel last summer to $73 last month. Prices jumped after Sunday’s announcement, with international benchmark Brent crude trading at about $85 on Monday, up 6%.

With fears of a U.S. recession exacerbated by bank collapses, a lack of European economic growth and China’s rebound from COVID-19 taking longer than many expected, oil producers are wary of a sudden collapse in prices like during the pandemic and the global financial crisis in 2008-2009.

Capital markets analyst Mohammed Ali Yasin said most people had been waiting for the June 4 meeting of the OPEC+ alliance of OPEC members and allied producers, most prominently Russia. The decision underlined the urgency felt by producers.

“It was a surprise to all, I think, watchers and the market followers,” he said. “The swiftness of the move, the timing of the move and the size of the move were all significant.”

The aim now is to ward off “a continuous slide of the oil price” to levels below $70 per barrel, which would be “very negative” for producer economies, Yasin said.

Part of the October cut of 2 million barrels per day was on paper only as some OPEC+ countries aren’t able to produce their share. The new cut of 1.15 million barrels per day is distributed among countries that are hitting their quotas — so it amounts to roughly the same size cut as in October.

Governments announced the decision outside the usual OPEC+ framework. The Saudis are taking the lead with 500,000 barrels per day, with the United Arab Emirates, Kuwait, Iraq, Oman, Algeria and Kazakhstan contributing smaller cuts.

Will the production cut make inflation worse?

It certainly could. Analysts say supply and demand are relatively well balanced, which means production cuts could push prices higher in coming months.

The refineries that turn crude into gasoline, diesel and jet fuel are getting ready for their summer production surge to meet the annual increase in travel demand.

In the U.S., gasoline prices are highly dependent on crude, which makes up about half of the price per gallon. Lower oil prices have meant U.S. drivers have seen the average price fall from records of over $5 per gallon in mid-2022 to $3.50 per gallon this week, according to motor club AAA.

The cuts, if fully implemented, “would further tighten an already fundamentally tight oil market,” Jorge Leon, senior vice president at Rystad Energy, said in a research note. The cut could boost oil prices by around $10 per barrel and push international Brent to around $110 per barrel by this summer.

Those higher prices could fuel global inflation in a cycle that forces central banks to keep raising interest rates, which crimp economic growth, he said.

Given the fears about the overall economy, “the market may interpret the cuts as a vote of no confidence in the recovery of oil demand and could even carry a downside price risk — but that will only be for the very short term,” Leon said.

What will this mean for Russia?

Moscow says it will extend a cut of 500,000 barrels per day through the rest of the year. It needs oil revenue to support its economy and state budget hit by wide-ranging sanctions from the U.S., European Union and other allies of Ukraine.

Analysts think, however, that Russia’s cut may simply be putting the best face on reduced demand for its oil. The West shunned Russian barrels even before sanctions were imposed, with Moscow managing to reroute much of its oil to India, China and Turkey.

But the Group of Seven major democracies imposed a price cap of $60 per barrel on Russian shipments, enforced by bans on Western companies that dominate shipping or insurance. Russia is selling oil at a discount, with revenue sagging at the start of this year.

What does the White House say?

White House National Security Council spokesperson Adrienne Watson, said, “We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear.”

She noted, “Prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer” and, “We will continue to work with all producers and consumers to ensure energy markets support economic growth and lower prices for American consumers.”

The initial White House response was milder than in October, when cuts came on the eve of U.S. midterm elections where soaring gas prices were a major issue. President Joe Biden vowed at the time that there would be “consequences,” and Democratic lawmakers called for freezing cooperation with the Saudis.

Caroline Bain, chief commodities economist at Capital Economics, said the cutback shows “the group’s support for Russia and flies in the face of the Biden administration’s efforts to lower oil prices.”
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Beijing is sending conflicting signals to foreign companies by telling those offshore that the country is reopening while arresting employees of foreign companies already operating in China, experts say.

The contradictory messages suggest China is trying to recover economically from three years of COVID-19-related isolation while still exerting control over the business sector. China’s economy grew 3% in 2022, according to official figures, short of Beijing’s 5.5% target. In the decade before the pandemic, China’s economy grew an average 7.7% a year.

“Part of this is because Chinese leaders likely perceive that China’s economy needs a major rebound in investment and consumption,” said Gerard DiPippo, a senior fellow with the Economics Program at the Center for Strategic and International Studies, in an email to VOA Mandarin this week.

“And they really need the private sector to lead that because localities’ fiscal resources are too constrained for another round of state-led stimulus.”

China’s new premier, Li Qiang, said Thursday that China’s economic recovery gained steam in March as he tried to reassure foreign companies that the country is committed to opening to the world.

“No matter how the world situation may evolve, we will stay committed to reform, opening up and innovation-driven development,” Li said. “We welcome countries around the world to share in the opportunities and benefits that come with China’s development.”

His message came days after Chinese Commerce Minister Wang Wentao met executives from 11 multinational corporations including Apple, Nestle and BMW.

The state-affiliated Global Times reported on the meetings on Monday, saying they had “sent a clear signal on China’s unswerving commitment to opening-up, and is testimony to China’s increasing role as a magnet for foreign investors.”

The news outlet compared the “concrete welcoming gesture” to the actions of Washington, “which has spared no effort to suppress Chinese companies in the U.S.”

Members of the U.S. Congress had grilled the CEO of the embattled Chinese-owned app TikTok days earlier.

Although Beijing began sending business-positive signals early in March, China’s draconian “zero-COVID” policy over the past three years had made the huge Chinese market less alluring than it had been for foreign companies, especially start-ups and small businesses.

According to the EU SME Centre, inquiries from small and medium-sized companies interested in entering China fell about 18% last year.

A survey released by the American Chamber of Commerce in China earlier this month shows that for the first time in 25 years, U.S. companies no longer regard China as the primary investment destination it once was.

Last week, Chinese authorities closed the Beijing office of Mintz Group, a U.S. due diligence firm, and detained five Chinese employees on suspicion of illegal business operations. [[ ]] An employee at Japan’s Astellas Pharma was also detained on suspicion of espionage.

On March 17, the Chinese Ministry of Finance imposed a three-month suspension of business on professional services firm Deloitte’s Beijing branch with a fine of $31 million.

Anna Tucker Ashton, director of China corporate affairs at the Eurasia Group, a political risk management company, told VOA Mandarin via email Wednesday, “China’s central government has spent the past few months emphasizing to the foreign business community that it is welcome in China and trying to assuage international business concerns about the operating environment. These high-profile arrests of employees of foreign companies come at an odd time.”

Ashton said the detention of employees of the American and Japanese companies raised concerns about whether geopolitical factors were involved.

“There has been some attention paid to the fact that the Mintz Group is an American due diligence firm. It helps businesses ensure they are in compliance with applicable laws, which undoubtedly include US laws that China’s government views as discriminatory. US companies operating in China have faced growing challenges navigating political and legal contradictions at home and in China, and due diligence firms are on the front lines of some of those conflicts,” she said.

“Japan is a close ally of the U.S. and relations between China and Japan are strained, so the arrest of the Astellas employee has also prompted questions as to whether geopolitics has anything to do with the situation,” she added.

Ashton said that while these incidents on their own may not prove consequential, if they turn out to be part of a bigger trend and more employees of foreign company employees are arrested, businesses may be spooked and stay away.

“Likewise, if Chinese authorities continue to withhold details on the reasons for these recent arrests, that too may have a chilling effect,” she added.

DiPippo said foreign investors and companies were already wary of possible arbitrary regulatory or legal decisions by Chinese authorities, especially with the ups and downs in China’s COVID-19 prevention policies last year.

He added that for China’s top leader, Xi Jinping, economic development is important, but it has taken a back seat to national security and long-term strategy. In a speech earlier this month Xi said, “Security is the foundation of development, and stability is the premise of prosperity.”

For many foreign investors, this means that their needs will be put on the back burner, according to DiPippo, because Xi’s top priority is to speed up indigenous technological self-sufficiency while lowering risks for the financial sector.

“One’s outlook for the business environment is downstream of one’s expectations for China’s broader political trajectory and geopolitical risks,” DiPippo said. “Unfortunately, I do not see many reasons for optimism for the latter.

“Thus, I would expect the environment in China to become increasingly suspicious of foreign — especially American — investors except insofar as those firms are making priority investments or possess valuable technology.”
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The International Monetary Fund has approved a $15.6 billion support package for Ukraine to assist with the conflict-hit country’s economic recovery, the fund said in a statement Friday.

Russia’s invasion has devastated Ukraine’s economy, causing activity to contract by about 30% last year, destroying much of its capital stock and spreading poverty, according to the IMF.

The outbreak of war has rippled through the global economy, fueling global inflation through rising wheat and oil prices.

The invasion has also highlighted Europe’s dependence on Russian natural gas for its energy security. Many countries were forced to seek out alternative sources of energy after the war began.

The two-step program will look to stabilize the country’s economic situation while the war continues, before turning to “more ambitious structural reforms” after the end of hostilities, IMF deputy managing director Gita Gopinath said in a statement.

The 48-month Extended Fund Facility approved by the fund’s board is worth roughly $15.6 billion.

It forms the IMF’s portion of a $115 billion overall support package comprised of debt relief, grants and loans by multilateral and bilateral institutions, the IMF’s Ukraine mission chief Gavin Gray told reporters on Friday.

“The goal of Ukraine’s new IMF-supported program is to provide an anchor for economic policies — policies that will sustain macroeconomic financial stability and support … economic recovery,” he said.

Of the total amount approved by the IMF, $2.7 billion is being made available to Ukraine immediately, with the rest of the funds due to be released over the next four years.

The program also includes additional guarantees from some IMF members in the event that active combat continues beyond its current estimate of mid-2024.

If the conflict were to extend into 2025, it would raise Ukraine’s financial needs from $115 billion to about $140 billion, Gray said.

“This program has been designed in such a way that it would work even if economic circumstances are considerably worse than … the current baseline,” he said.
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More than 700 delegates and 300 companies participated in the third edition of the American Chamber of Commerce summit in the Kenyan capital, Nairobi, organizers said. U.S. government and private sector delegations met with counterparts from Rwanda, Tanzania, Uganda, Ethiopia and Kenya.

Kenya President William Ruto said Thursday that Kenya was open for business, highlighting a deal his government had struck with U.S. biotech company Moderna.

“It is with pleasure that I announced the finalized deal between Moderna and the government of Kenya to build a $500 million dollar MRNA vaccine facility in Nairobi,” he said.

The two-day AmCham business summit, which ended Thursday, gave business leaders a chance to exchange market intelligence and explore areas of opportunity, especially for commercial engagement, said Maxwell Okello, CEO of AmCham Kenya.

He noted that it followed the recent U.S.-Africa Leaders Summit hosted by the White House.

AmCham “does two things: … One: it’s a perfect demonstration of some of the commitments we had from the U.S. … Two: we are very keen in seeing how we can actually advance commercial engagement,” Okello said. “We thought this would be a good platform to create partnerships, bring local companies that could be counterparts to those American companies that are interested in coming into Kenya.”

Scott Eisner, president of the U.S. Chamber’s Africa Business Center, brought a group of over 30 executives. He told VOA they hoped to forge concrete private sector opportunities and joint ventures.

“We have plenty of tech companies with us, but we also have pharmaceuticals, medical devices, technology, satellite companies that are doing mapping of the world, infrastructure developers around Caterpillar, the GEs of the world,” he said. “So we really have arranged for a very strong delegation representing the complexities of the American business community.”

Nzonzi Katana is a process engineer for the Kenyan-based startup Semiconductor Technologies Limited, which had a booth at the exhibition hall. The company manufactures microprocessors, memory chips and sensors.

“We have been able to meet many representatives from many American companies,” Katana said. “I believe there’s one person who might be a potential supplier of our raw material.”

Effects of protests

Kenya is experiencing protests organized by opposition leader Raila Odinga over the high cost of living, and three people have died in clashes with police. How might this affect possible investors?

Whitney Baird, an official in the State Department’s Bureau of Economic and Business Affairs, said Washington keeps U.S. companies informed about each country’s political and security situation.

“The U.S. government produces publications every year like the investment climate statement, country commercial guide, so there is information available to any businesses about what we’ve observed over a year,” Baird said. She said Kenya has a strong democratic tradition, and “we were very pleased with the elections,” but she urged any incoming U.S. business to “engage with our commercial and economic sections at the embassy and get the most up to date information about opportunities and the ongoing situation.”

At the summit, seven African companies in the agriculture sector were awarded grants totaling $5.1 million by the U.S. Agency for International Development through its Prosper Africa and Feed the Future programs.
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Jack Ma, one of China’s most prominent entrepreneurs, returned to China this week after traveling overseas for more than a year, in what is being interpreted as evidence of an improved climate for the nation’s private sector.

He paid a visit Monday to the Yungu School, a private academy in Hangzhou funded by Ma’s Alibaba Group, which includes one of the world’s biggest online commerce companies. There, he talked about “the future of education with the campus directors” and “the challenges and opportunities” that “new technological change brings to education,” according to the school’s WeChat account.

Earlier this month, Chinese leader Xi Jinping said the Chinese Communist Party (CCP) “has always treated private entrepreneurs as its own people,” marking an about-face from suppressing the private economy during the pandemic with tactics that included stopping what was expected to be the $37 billion IPO of Ma’s Ant Group.

China’s economy trended down after COVID-19 was first identified in humans in Wuhan in December 2019. Xi led the crackdown on some of China’s most successful entrepreneurs as he pushed for “common prosperity” — long a CCP catchphrase — as an alternative to increasing inequality.

Some see Ma’s return as a signal of a fundamental change of China policies in the private sector.

An article from Ejam Finance, a Guangzhou-based new media company focusing on financial information, said, “Today, Jack Ma returned to China again! I believe this is also a day when the confidence of private entrepreneurs across the country soars.”

Alibaba’s U.S.-listed shares rose by more than 10% after news broke of Ma’s return. Alibaba Group is planning to split into six units, it said Tuesday, as Beijing said it would ease a regulatory crackdown on private enterprises.

Zongyuan Zoe Liu, fellow for international political economy at the Council on Foreign Relations, told VOA Mandarin, “Ma Yun (Jack Ma) has been the token of Chinese entrepreneurship. His rise and fall (and seemingly rise again) have been closely associated with the Chinese government and government-led investment.”

According to Reuters, China’s new premier, Li Qiang, has been asking Ma to return since late last year, hoping it would boost business confidence among entrepreneurs, which enhanced the theory of Ma’s return being a prophecy of a policy change.

Fraser Howie, a longtime Asia analyst, is not optimistic that Ma’s return will change much.

He told Reuters, “I can see how this sort of signals a relaxation but none of the laws and institutions set up to control the private sector have changed.”

Liu said the most important aspect of Ma’s return is whether it can boost investors’ confidence in China’s economy.

“As long as confidence in the Chinese economy and confidence in the Chinese government’s support for the private sector can be quickly restored, it helps to quell rumors and reduce uncertainties. After all, economic growth is a confidence game,” she said.

She emphasized that confidence in the Chinese economy and expressing support for Ma’s return are two different things.

Hu Ping, a onetime district councilor in Beijing who later edited China Spring and Beijing Spring, both U.S.-based journals focused on Chinese politics, told VOA Mandarin that “the loss of Chinese private entrepreneurs’ confidence in the government is caused by Xi’s suppression policy.”

As long as Xi is in the office and his policies remain unchanged, people’s trust can’t be regained, Hu said.

Yao Wang, a Chinese investment expert who has been engaged in asset management in New York for nearly 30 years, believes that instead of using Ma’s return to boost confidence in private enterprise, Beijing should take some practical actions.

“The best way to show the stability, continuity, predictability, and transparency of policies is to fix it in the form of law,” he said.
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The scope of blame for Silicon Valley Bank’s failure stretches across bank executives, Federal Reserve supervisors and other regulators, the banking system’s top cop on Wednesday told U.S. lawmakers demanding answers for the lender’s swift collapse. 

“I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed,” Michael Barr, Fed Vice Chair for Supervision, told Congress. “So we’re looking at all of that.” 

The failures of SVB, and days later, Signature Bank, set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis.

Depositors tried to pull more than $42 billion in a single day at SVB in early March, surprising regulators and kicking off deposit flight across other regional banks. 

“That’s just an extraordinary scale and speed of a run that I had not ever seen,” Barr said. “I think all of us were caught incredibly off-guard by the massive bank run that occurred when it did.”  

Representatives from both political parties pressed Barr, Martin Gruenberg, head of the Federal Deposit Insurance Corp, and Treasury undersecretary for domestic finance Nellie Liang on why regulators did not act more forcefully, given Fed supervisors had been raising issues with the bank for months.  

“There is still much we need to understand of what you knew when and how you responded,” said Republican Patrick McHenry, chair of the committee. “The bottom line for you as the panel, there’s bipartisan frustration with many of your answers. There’s a question of accountability and appearance of lack of accountability.”  

Barr on Tuesday criticized SVB for going months without a chief risk officer and for how it modeled interest rate risk, but lawmakers said the response wasn’t aggressive enough, with Democrat Juan Vargas saying, “it seems like they blew you guys off and you didn’t do anything.”  

Reports due May 1 

Both the Fed and FDIC are expected to produce reports on the failure of Silicon Valley Bank by May 1. The Fed’s report will concentrate on supervision and regulation while the FDIC report will center around deposit insurance.  

Several lawmakers asked Barr to make available the Fed’s confidential communications on supervision.  

Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable.  

Gruenberg of the FDIC told lawmakers he also became aware of SVB’s stress that Thursday evening.  

All three testifying said that regulators had sufficient tools to deal with the crisis once it happened, but Barr said the Fed could have done better on supervision. 

SVB and Signature became the second- and third-largest bank failures in U.S. history. Investors fled to safe havens like bonds while depositors moved funds to bigger institutions and money market funds. 

Markets have calmed since Swiss regulators engineered the sale of troubled Swiss giant Credit Suisse to rival UBS, and after SVB’s assets were sold to First Citizens BancShares FCNCA.O. However, investors remain wary of more troubles lurking in the financial system. 

Some Democrats have also argued a 2018 bank deregulation law is to blame. That law, mostly backed by Republicans but also some moderate Democrats, relaxed the strictest oversight for firms holding between $100 billion and $250 billion in assets, which included SVB and Signature. 

The White House is readying plans for legislation that would reinstate those regulations on midsize banks, the Washington Post reported on Wednesday, citing two sources familiar with the matter.  
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Poland’s agriculture minister promised financial support from the government and the European Union and easier rules for constructing grain storage as he met Wednesday with farmers angered by falling grain prices.

Farmers in Poland blame the drop in prices on an inflow of huge amounts of Ukrainian grain that was supposed to go to Africa and the Middle East. Bulgarian farmers also staged a border protest Wednesday over the issue.

Poland and other countries in the region have offered to help transit Ukraine grain to third-country markets after Russia blocked traditional routes when it invaded Ukraine 13 months ago. The European Union, which borders Ukraine, has waived customs duties and import quotas to facilitate the transport — also through Romania and Bulgaria — to markets that had counted on the deliveries.

But farmers in transit countries say the promised out-channels are not working as planned. As a result, they argue, the grain stays, flooding their markets and bringing prices down — to their great loss — while fertilizer and energy costs are skyrocketing.

After a round of talks with farmer organizations, Poland’s Agriculture Minister Henryk Kowalczyk said they agreed on more than $277 million in compensation to farmers and traders who suffered financial losses and subsidies for companies transporting the grain to ports, to be shipped out of Poland.

The ministry also agreed to waive permission requirements for building small-sized grain storage facilities. But the farmers are expecting more talks and more support.

In Bulgaria, hundreds of farmers on Wednesday began a three-day blockade of the main checkpoints on the border with Romania to protest tariff-free imports of Ukrainian grain. They say about 40% of their crop from last year remains unsold amid huge supply, and there is no storage room just a few months ahead of the coming harvest.

They displayed banners reading: “Stop the genocide of agriculture” and “We want to be competitive farmers.”

Last week, Brussels offered a total of $61 million in compensation to affected farmers, of which Bulgaria would receive about $18 million and Poland about $32.5 million euros — amounts that protesters and some governments say are insufficient.

Daniela Dimitrova, regional leader of Bulgaria’s grain producers’ union, said Ukrainian imports make Bulgarian farmers noncompetitive.

“We stand in solidarity with Europe and its support for Ukraine, but the European Commission should look at each individual member state and make farmers competitive,” she said.

Prime Minister Mateusz Morawiecki said grain from Ukraine was “destabilizing our market” and steps should be taken to urgently export it while reducing imports from Ukraine. He said the European Commission, the EU’s executive arm, had regulations at its disposal to get the situation under control, as it was having negative effects also on other countries in the region.

“We do not agree for this grain to come to Poland’s and Romania’s markets in huge amounts and destabilize our markets,” Morawiecki told a news conference, while stressing that “transit is most welcome.”

At the start of the talks with farmers and grain exporters, Kowalczyk, the agriculture minister, blamed falling grain prices on a world-wide trend. He said that while more compensation funds could be expected from Brussels the main goal was to increase grain export and free space in silos ahead of this summer’s Polish harvest. He admitted that the original plan to transit grain through Poland did not go exactly as expected.
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Gordon Moore, the Intel Corp. co-founder who set the breakneck pace of progress in the digital age with a simple 1965 prediction of how quickly engineers would boost the capacity of computer chips, has died. He was 94.

Moore died Friday at his home in Hawaii, according to Intel and the Gordon and Betty Moore Foundation.

Moore, who held a Ph.D. in chemistry and physics, made his famous observation — now known as “Moore’s Law” — three years before he helped start Intel in 1968. It appeared among several articles about the future written for the now-defunct Electronics magazine by experts in various fields.

The prediction, which Moore said he plotted out on graph paper based on what had been happening with chips at the time, said the capacity and complexity of integrated circuits would double every year.

Strictly speaking, Moore’s observation referred to the doubling of transistors on a semiconductor. But over the years, it has been applied to hard drives, computer monitors and other electronic devices, holding that roughly every 18 months a new generation of products makes their predecessors obsolete.

It became a standard for the tech industry’s progress and innovation.

“It’s the human spirit. It’s what made Silicon Valley,” Carver Mead, a retired California Institute of Technology computer scientist who coined the term “Moore’s Law” in the early 1970s, said in 2005. “It’s the real thing.”

‘Wisdom, humility and generosity’

Moore later became known for his philanthropy when he and his wife established the Gordon and Betty Moore Foundation, which focuses on environmental conservation, science, patient care and projects in the San Francisco Bay area. It has donated more than $5.1 billion to charitable causes since its founding in 2000.

“Those of us who have met and worked with Gordon will forever be inspired by his wisdom, humility and generosity,” foundation president Harvey Fineberg said in a statement.

Intel Chairman Frank Yeary called Moore a brilliant scientist and a leading American entrepreneur.

“It is impossible to imagine the world we live in today, with computing so essential to our lives, without the contributions of Gordon Moore,” he said.

In his book “Moore’s Law: The Life of Gordon Moore, Silicon Valley’s Quiet Revolutionary,” author David Brock called him “the most important thinker and doer in the story of silicon electronics.”

Helped plant seed for renegade culture

Moore was born in San Francisco on Jan. 3, 1929, and grew up in the tiny nearby coastal town of Pescadero. As a boy, he took a liking to chemistry sets. He attended San Jose State University, then transferred to the University of California, Berkeley, where he graduated with a degree in chemistry.

After getting his Ph.D. from the California Institute of Technology in 1954, he worked briefly as a researcher at Johns Hopkins University.

His entry into microchips began when he went to work for William Shockley, who in 1956 shared the Nobel Prize for physics for his work inventing the transistor. Less than two years later, Moore and seven colleagues left Shockley Semiconductor Laboratory after growing tired of its namesake’s management practices.

The defection by the “traitorous eight,” as the group came to be called, planted the seeds for Silicon Valley’s renegade culture, in which engineers who disagreed with their colleagues didn’t hesitate to become competitors.

The Shockley defectors in 1957 created Fairchild Semiconductor, which became one of the first companies to manufacture the integrated circuit, a refinement of the transistor.

Fairchild supplied the chips that went into the first computers that astronauts used aboard spacecraft.

Called Moore’s Law as ‘a lucky guess’

In 1968, Moore and Robert Noyce, one of the eight engineers who left Shockley, again struck out on their own. With $500,000 of their own money and the backing of venture capitalist Arthur Rock, they founded Intel, a name based on joining the words “integrated” and “electronics.”

Moore became Intel’s chief executive in 1975. His tenure as CEO ended in 1987, thought he remained chairman for another 10 years. He was chairman emeritus from 1997 to 2006.

He received the National Medal of Technology from President George H.W. Bush in 1990 and the Presidential Medal of Freedom from President George W. Bush in 2002.

Despite his wealth and acclaim, Moore remained known for his modesty. In 2005, he referred to Moore’s Law as “a lucky guess that got a lot more publicity than it deserved.”

He is survived by his wife of 50 years, Betty, sons Kenneth and Steven, and four grandchildren.
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From Zimbabwe, where many must work at night because it’s the only time there is power, to Nigeria where collapses of the grid are frequent, the reliable supply of electricity remains elusive across Africa.

The electricity shortages that plague many of Africa’s 54 countries are a serious drain on the continent’s economic growth, energy experts warn.

In recent years South Africa’s power generation has become so inadequate that the continent’s most developed economy must cope with rolling power blackouts of eight to 10 hours per day.

Africa’s sprawling cities have erratic supplies of electricity, but large swaths of the continent’s rural areas have no power at all. In 2021, 43% of Africans — about 600 million people — lacked access to electricity with 590 million of them in sub‐Saharan Africa, according to the International Energy Agency.

Investments of nearly $20 billion are required annually to achieve universal electrification across sub-Saharan Africa, according to World Bank estimates. Of that figure nearly $10 billion is needed annually bring power and keep it on in West and Central Africa.

There are many reasons for Africa’s dire delivery of electricity including ageing infrastructure, lack of government oversight and a shortage of skills to maintain the national grids, according to Andrew Lawrence, an energy expert at the Witwatersrand University Business School in Johannesburg.

A historical problem is that many colonial regimes built electrical systems largely reserved for the minority white population and which excluded large parts of the Black population.

Today many African countries rely on state-owned power utilities.

Much attention has focused in the past two years on the Western-funded “Just Energy Transition,” in which France, Germany, the United Kingdom, the United States and the European Union are offering funds to help poorer countries move from highly polluting coal-fired power generation to renewable, environmentally friendly sources of power. Africa as a region should be among the major beneficiaries in order to expand electricity access on the continent and improve the struggling power grids, said Lawrence.

“The transition should target rural access and place at the forefront the electrification of the continent as a whole. This is something that is technically possible,” he said.

The Western powers vowed to make $8.5 billion available to help South Africa move away from its coal-fired power plants, which produce 80% of the country’s power.

As a result of its dependence upon coal, South Africa is among the top 20 highest emitters of planet-warming greenhouse gases in the world and accounts for nearly a third of all of Africa’s emissions, according to experts.

South Africa’s plan to move away from coal, however, is hampered by its pressing need to produce as much power as possible each day.

The East African nation of Uganda for years has also grappled with power cuts despite massive investment in electricity generation.

Nigeria, Africa’s most populous country, has grappled with an inadequate power supply for many years, generating just 4,000 megawatts though the population of more than 210 million people needs 30,000 megawatts, say experts. The oil-rich but energy-poor West African nation has ramped up investments in the power sector but endemic corruption and mismanagement have resulted in little gains.

In Zimbabwe, electricity shortages that have plagued the country for years have worsened as the state authority that manages Kariba, the country’s biggest dam, has limited power generation due to low water levels.

Successive droughts have reduced Lake Kariba’s level so much that the Kariba South Hydro Power Station, which provides Zimbabwe with about 70% of its electricity, is currently producing just 300 megawatts, far less than its capacity of 1,050 megawatts.

Zimbabwe’s coal-fired power stations that also provide some electricity have become unreliable due to aging infrastructure marked by frequent breakdowns. The country’s solar potential is yet to be fully developed to meaningfully augment supply.

This means that Harare barber Omar Chienda never knows when he’ll have the power needed to run his electric clippers.

“What can we do? We just have to wait until electricity is back but most of the time it comes back at night,” said Chienda, a 39-year-old father of three. “That means I can’t work, my family goes hungry.”

In Nigeria’s capital city of Abuja, restaurant owner Favour Ben, 29, said she spends a large part of her monthly budget on electricity bills and on petrol for her generator, but adds that she gets only an average of seven hours of power daily.

“It has been very difficult, especially after paying your electricity bill and they don’t give you light.” said Ben. “Most times, I prepare customers’ orders but if there is no light (power for a refrigerator), it turns bad the next day (and) I have lost money for that.”

Businesses in Nigeria suffer an annual loss of $29 billion as a result of unreliable electricity, the World Bank said, with providers of essential services often struggling to keep their operations afloat on generators.

As delegates gathered in Cape Town this month to discuss Africa’s energy challenges, there was a resounding sentiment that drawn-out power shortages on the continent had to be addressed urgently. There was some hope that the Western-funded “Just Energy Transition” would create some opportunities, but many remained skeptical.

Among the biggest critics of efforts to have countries like South Africa to transition quickly from the use of coal to cleaner energy is South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe.

He is among those advocating that Africa use all sources available to it to produce adequate power for the continent, including natural gas, solar, wind, hydropower and especially coal.

“Coal will be with us for many years to come. Those who see it as corruption or a road to whatever, they are going to be disappointed for many, many years,” said Mantashe. “Coal is going to outlive many of us.”
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The multi-regulator U.S. Financial Stability Oversight Council (FSOC) agreed Friday that the U.S. banking system remains “sound and resilient” despite stress on some institutions, the U.S. Treasury said in its latest statement to calm jittery markets and bank depositors.

In a readout of a closed meeting chaired by Treasury Secretary Janet Yellen, the department said that FSOC participants heard a presentation on market developments from the staff of the Federal Reserve Bank of New York.

“The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient,” the Treasury said in a statement.

The videoconference meeting came as markets continued to seesaw amid concerns that a two-week-old banking crisis sparked by the failures of Silicon Valley Bank SIVB.O and Signature Bank SBNY.O could worsen, spreading more runs on smaller banks

The body of financial regulators, led by Yellen and including the heads of the Federal Reserve, the Federal Deposit Insurance Corp (FDIC), the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and other regulatory agencies, last met March 12.

That was the same day that the FDIC, Fed and Treasury announced emergency actions to backstop all deposits in the two failed banks and create a new Fed lending facility to boost liquidity for all banks.

Two prominent House of Representatives Republicans demanded Friday that Yellen provide them with additional information about the March 12 meeting, including unredacted minutes, votes, details on timing and bank stress test results.

“The events that have transpired over the last 12 days related to both Silicon Valley Bank and Signature Bank, the ensuing market instability, and your role raise a number of questions for policymakers,” wrote Representatives Bill Huizenga and Andy Barr who chair House Financial Services subcommittees, in a letter to Yellen.

They added that the basis of the Treasury, Fed and FDIC determinations in the SVB and Signature cases “are of particular importance.”

The Friday FSOC meeting came as global banking contagion fears again caused European bank stocks to fall sharply, with Deutsche Bank and UBS knocked by worries that regulators and central banks have not yet contained the worst shock to the sector since the 2008 global financial crisis.

But on Wall Street, shares recovered from an earlier sell-off as three Federal Reserve bank presidents said in separate remarks that there was no indication that financial stress was worsening this week, allowing them to raise interest rates by a quarter percentage point.

Yellen again sought to calm fears of further bank deposit runs Thursday, telling U.S. lawmakers that she was prepared to repeat actions taken in the Silicon Valley and Signature Bank failures to safeguard uninsured bank deposits if failures threatened more deposit runs.

Those actions to invoke “systemic risk exceptions” were taken by Yellen, President Joe Biden, the FDIC, and the Fed, which supervised Silicon Valley and Signature.
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Adeline Lefebvre was scrunched up next to a newsstand as a swelling crowd of demonstrators pushed past her at the Place de la Bastille — the iconic Paris square that earned its fame from French Revolution days.

Rock music blared and the gigantic balloons of the leftist CGT trade union bobbed in the air on this ninth day of nationwide strikes and protests against French President Emmanuel Macron’s unpopular pension reform.

Lefebvre, 58, a secretary who began working at 17, has been at every one.

“Macron needs to understand things aren’t working out,” she said of the widespread opposition to his plans to raise the retirement age from 62 to 64. “We need to start over. But he’s in total denial.”

A day after Macron defiantly defended his reform on public TV — after his government narrowly survived a no-confidence vote in the national assembly — public anger shows no sign of abating.

Hundreds of thousands of people marched in the capital and elsewhere in the country. Unions calculated roughly 3.5 million nationwide; France’s Interior Ministry put the number at just over 1 million.

Hundreds were arrested after clashes with police.

“Macron doesn’t listen, he acts like a king,” protesters in Lyon chanted.

‘I’m prepared to be unpopular’

In Paris, people brandished posters reading “Macron the scornful of the Republic” — a play on words in French referring to his presidency.

“Maybe we have a chance to stop this law” by protesting, said Manon Chauvigny, who works with disabled people.

“Otherwise,” her partner warned, “it’s the revolution.”

Interviewed Wednesday by two top news stations, Macron said he hoped the reform would become law by year’s end.

“This reform is necessary. It does not make me happy. I would have preferred not to do it,” he said, arguing that the pension system would go bankrupt if nothing was done. “I’m prepared to be unpopular.”

Instead of calming an angry nation, his remarks appear to have further incensed it. A poll published Thursday on France’s BFMTV channel found seven in 10 respondents found his arguments unconvincing. More than 60% believe Macron’s remarks will spark even greater anger on the streets.

“There’s money in France” to pay for the pension reform, said retired insurance worker Jean-Francois Vilain, who joined the Paris protest sporting the CGT union logo. “Only it’s not in the hands of working people. We see financial companies making billions in profits, and they share very little of it.”

Sporting bright red, construction worker Djcounda Traore joined colleagues to march in the capital.

“Working until 64 years isn’t easy in our profession,” he said. “Maybe if everyone protests, we’ll win.”

Protester Lefebvre was less optimistic.

“I’d like to say we’ll win,” she said. “But I’m afraid that we won’t.”

Trains disrupted, garbage left to fester

Trains and metros were seriously disrupted Thursday. Fuel refinery blockages in some parts of the country have left gas stations dry and sparked fears of potential shortages at Paris airports.

While some garbage service has resumed in the French capital, rolling strikes leave many bags festering on sidewalks.

Reports also suggest the unrest in France may disrupt the upcoming visit of Britain’s King Charles to France in his first foreign trip as monarch.

French union leaders and political opponents have slammed Macron’s response, describing him as disdainful and failing to listen to the streets.

The president’s remarks Wednesday show “scorn toward the millions of people who have protested,” said CGT union leader Philippe Martinez.

Macron “reacts as if the crisis was already behind him,” France’s influential Le Monde newspaper wrote in an editorial Wednesday.

“For the country to advance, a president of the Republic needs to know how to cobble a consensus,” it added. “Right now, we’re nowhere near there.”
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