United States becomes largest producer of oil in the world

The United States is now the largest oil producer in the world and, this increased production is disrupting global oil markets. US production is now at a record 12.1 million barrels a day more than that of Saudi Arabia or Russia.

US to become a net exporter of oil

US exports are more than three million barrels a day above that of many OPEC countries. Daniel Yergin of IHS Markit said: "Within the next two or three years, the U.S. will be a net exporter. By the end of the year, the U.S. will be producing 13 million barrels a day. This growth is a seismic event for the U.S. economy at this scale. U.S. oil production is 2.5 times what it was in 2008."

US shale production has created a problem for markets as it increases a great deal as prices go up creating a supply glut but then is cut back as prices slide back. To stop the glut Saudi Arabia and other OPEC members in cooperation with Russia have tried to reduce or add supply to the market depending on conditions.

Trump has made the US more active in the market

Helma Croft, head of commodities strategy at the Royal Bank of Canada said: "It's really become such a huge story in terms of U.S. production, but also because of our policy. The U.S. is a swing producer but it's also through policy that we've taken 1.6 million barrels off the market. We've been really lucky we've had the U.S. producers. That's where the U.S. currently plays a role in helping out the market. Trump talks to the Saudis. Trump sanctions Venezuela. He's really active in the market. Have we had a U.S. president be this consequential in the oil market, in terms of intervention?"

Trump has added to market volatility by introducing sanctions against countries such as Venezuela and Iran. However, he has also granted waivers on the sanctions after saying he would not. India and others were granted waivers last fall. Iran exports are now about 1.1 million barrels a day but this is still down from the 2.5 million the exported in the spring. The waivers come up for review in May so if they are not extended then even more Iran oil will come off the market.

Market volatility likely to continue

Carlos Pascual, IHS Markit senior vice-president said: "It's going to be a market with tremendous volatility. In 2018, the price of [Brent] oil went between $50 and $86 a barrel, but the average was $70. For the person looking at it and saying '$70, that's not a big deal,' depending on when you were buying, what country and what situation, the difference between $50 and $86 could be huge. We're looking at a similar kind of [oil] market in 2018. A lot of volatility and an average that keeps us in a similar range of $70 a barrel. In that sense the sanctions on two OPEC members could potentially add to some of the uncertainty and volatility around that market."

The Saudis are committed to cutting back production to 9.8 million barrels a day after they had been putting almost 11 million barrels a day on the market last fall. As both the Saudis and Russia agreed to cut production prices began to increase again.

However, some Trump tweets still complain about high prices. Franciso Blanch, of Bank of America Merrill Lynch said: "Trump seems to have picked up a fair amount of influence over OPEC and certainly the oil market has started to fear the Trump effect. Whenever he tweets prices shouldn't go higher. The fear is the Saudis will follow and deliver, as they have so far. Shale will deliver if the Saudis don't."

The cost of production from shale has been dropping as well. Just this past week, Chevron and Exxon announced they are increasing production in the Permian Basin. Exxon said production in the basin would still be profitable even if oil prices dropped to $35 dollars a barrel.

United States may become the world's biggest oil exporter within five years

The International Energy Agency (IEA) makes the prediction that the U.S. will soon become the world's biggest oil exporter in a recent article. By 2024 the IEA predicts that US exports of crude oil and petroleum products will almost double to about nine million barrels per day (bpd) . At this level, the US will be exporting more than Russia and will threaten to overtake Saudi Arabia as the top exporter.

Just weeks ago, the US exported a record 3.6 million bpd of crude oil. The US is also a major exporter of petroleum products such as refined fuels.

IEA executive director Faith Birol said: "The second wave of the U.S. shale revolution is coming. It will see the United States account for 70 percent of the rise in global oil production and some 75 percent of the expansion in LNG trade over the next five years. This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy."

While the IEA thinks that the development of electric vehicles (EVs) will sap some of the demand for gasoline, it thinks that this will be offset by rising demand for petrochemicals and jet fuel. Demand is increasing in the US as Birol notes: "US oil consumption [growth] last year was about a half-million barrels per day, and as such it was the highest in all the countries around. It was the first time that the United States in the last two decades was the No. 1 driver of oil consumption growth." Surprisingly this happened as global economic growth has slowed.

Previously published in Digital Journal

South Korea agrees to pay more to support US troops

(March 10) On Friday, Harry Harris US Ambassador to South Korea and the South Korean Foreign Minister signed a new cost-sharing agreement for US troops deployed in the country at a formal ceremony.

South Korea's share of costs increases significantly

The substantial increase in costs fits in with Trump's desire to have countries where US troops are deployed pay a much higher percentage of the costs. The agreement still has to be ratified by the South Korean parliament by a vote. While this is expected soon it has not been determined when as yet. Even before South Korea paid a larger portion of the costs of US troops deployed than most countries.

A recent article notes: "Instead of just demanding that nations pay more of the cost of the US military’s presence in their country, Trump is now insisting on 'cost plus 50.' To be specific, the administration wants 100 percent of the cost of US troop hosting to be covered by the other nation, and another 50 percent given to the US on top of that for the privilege of US troops being there. While South Korea had one of the more generous deals for the US, paying around half of the cost for the large number of troops there, the US pushed for, and got, a substantial increase to 80%. That was presented as a big win for Trump in negotiations, but can he really repeat this with everyone else?"

The new agreement with South Korea took months to negotiate

South Korean Foreign Minister Kang said the agreement was the result of hard and sometimes difficult work. He also said that the agreement was something the two countries could build upon to make their alliance stronger. The agreement follows upon criticism by Trump about the amount that South Korea pays toward US troop maintenance in the country.

Trump had said last year: “The reason I do not want military drills with South Korea is to save hundreds of millions of dollars for the U.S. for which we are not reimbursed."

He said the same thing after his failed meeting with Kim Jong UN of North Korea last week: “I was telling the generals — I said, 'Look, you know, exercising is fun and it's nice,' and they play the war games. And I'm not saying it's not necessary, because at some levels it is, but at other levels, it's not. But it's a very, very expensive thing. And you know, we do have to think about that too.”

Previously published in Digital Journal

US producing drone to accompany piloted planes

The US Air Force has carried out a successful test of an advanced, jet-powered drone called the XO-58A Valkyrie that may some day fly alongside a piloted plane on missions or even absorb enemy fire instead of the piloted plane.

The XO-58A Valkyrie

A recent announcement from the military describes the drone and its development: "The XQ-58A Valkyrie demonstrator, a long-range, high subsonic unmanned air vehicle completed its inaugural flight March 5, 2019 at Yuma Proving Grounds, Arizona. The Air Force Research Laboratory partnered with Kratos Unmanned Aerial Systems to develop the XQ-58A.This joint effort falls within the Air Force Research Laboratory’s Low Cost Attritable Aircraft Technology (LCAAT) portfolio, which has the objective to break the escalating cost trajectory of tactically relevant aircraft. The objectives of the LCAAT initiative include designing and building UAS faster by developing better design tools, and maturing and leveraging commercial manufacturing processes to reduce build time and cost."

The drone behaved as was expected in its 76 minutes of flight time. It took a bit more than 2.5 years from the contract award to the first test flight. A total of five test flights are planned for the drone in two phases. The tests will evaluate everything from system functionality , aerodynamic performance, and launch and recovery systems. Doug Szczublewski the program manager for the drone said that it was the first of a class of unmanned aerial vehicle (UAV) that had low procurement and operating costs but would provide game changing combat capability.

The drone will be able to play an electronic warfare, strike, and surveillance role on the battlefield while under control by a pilot in a manned aircraft. It can also carry a small payload of bombs. It can use a conventional runway for takeoff or be launched by a rocket.

The loyal wingman concept

Although the first tests of the drone have been alone, it is intended to play the role of what is called a "loyal wingman". The idea is that the drone will be controlled by the pilot of the plane it flies alongside. The drone can provide extra force protection or go ahead or behind for surveillance purposes scouting terrain and on occasion even drawing fire away from the piloted plane.

The range of the drone is expected to be about 2,500 miles about the same range as existing fighters. The F16 Fighting Falcon has a range of just more than 2,600 miles while the F22 Raptor's range is just over 1,800 miles. The two planes can travel up to 1,500 miles per hour while the Valkyrie can go only 652 miles per hour.

The loyal wingman concept could be also used to create drones for accompanying land or sea-based vehicles as well. The drone could help keep soldiers in vehicles or tanks or in warships out of harms way. The Pentagon hopes to add greater automation and AI to warfare with such new devices as autonomous submarines that could gather intelligence or clear naval mines.

The Valkyrie is relatively inexpensive

The estimated cost of the drone comes in at $2-3 million about equivalent to that of a Patriot missile. The fighters it will accompany cost more than $100 million each. It would be much cheaper to have the Valkyrie suffer a hit than its accompanying fighter with its crew.

The Pentagon has yet to commit to the Valkyrie apparently as it is one of several systems being developed such as the one shown on the appended video being developed by Boeing in Australia.

Previously published in Digital Journal

US tries to pressure Germany to provoke Russia in Crimea

The US attempted to pressure Angela Merkel, the German Chancellor, in February to conduct a naval maneuver through the Kerch Strait separating the Crimean peninsula from the Russian mainland.

US President Mike Pence said to have exerted the pressure

The move would be a sign that Western powers would not surrender access through the strait. However, such a move could provoke Russia and even lead to the ships being confronted by Russian vessels if they did not get authorization to pass through the strait. Three anonymous officials familiar with the issue reported this according to Bloomberg. The pressure was exerted at a February 16 meeting at the Munich Security Conference by US Vice President Mike Pence.

Merkel refuses to send ships

Although a spokesperson for the chancellor declined to comment on the issue. The officials claimed the refused on the grounds that Ukrainian president Petro Poroshenko had reservations about any such move. Even so, Merkel is said to have been willing to have carried out such a maneuver together with France but Poroshenko had said that this would not be sufficient to solve his problem. The Kerch Strait is just three kilometers wide and has been a flashpoint as Russia tries to consolidate control over the Crimean peninsula which is now part of Russia according their position after a vote by Crimeans to join Russia. However, the EU and the US do not recognize the annexation and have sanctioned Russia as a result.

Poroshenko wants the strait to be open permanently not a one time provocative event. France also apparently would not take part, as it considered the move too provocative according to another official. With France's refusal to join in the idea was dropped. Russia has had control of Crimea since 2014. It completed a road bridge last year across the strait and is also planning a rail link.

Last year Russian forces fired on and seized 3 Ukrainian ships trying to traverse the straits without authorization. Russia has refused to release 24 Ukrainian sailors it captured at the time. The Ukraine has been seeking international aid to keep the strait open but the country's position on sending convoys through the strait has been unclear. The US was keen to send ships to the area after the confrontation.

Legal basis for action unclear

A 2003 treaty between Russia and the Ukraine determined the Sea of Azov which is joined to the Black Sea by the strait is an internal body of water. Any third party military presence in the strait would need to have the consent of both parties to the agreement. The US destroyer USS Donald Cook is deployed in the Black Sea just to the south of the strait. The US says that NATO and US forces had beefed up their presence in the area as a signal to Putin.

General Curtis Scaparrotti of the US European Command told the US Armed Services Committee: “They, frankly, don’t like us in the Black Sea. It’s international waters -- and we should sail and fly there.”

As a recent article puts it: "This is a common naval tactic for US officials in recent years. Officials have been fond of sending the US Navy on “freedom of navigation” trips to areas claimed by rival powers. The big difference here was that they figured on sending German boats instead of American ones, which Merkel wasn’t keen on. "

Previously published in Digital Journal

Windows 10 now on 800 million devices world wide but short of one billion target

The latest Microsoft Windows operating system Windows 10 is now running on 800 million devices globally the company has announced.

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The figure includes not only traditional desktop and laptop computers but hybrids such as the Surface Pro, consoles such as the Xbox One X, and phones that are still running the Windows 10 Mobile. The Mobile version will not have any security updates at the end of 2019.

Prediction in April of 2015

In an announcement back in April of 2015 the company predicted it would be used on a billion devices within two or three years of its release: "Microsoft has huge hopes for Windows 10, and it wants to quickly see the new operating system become its most successful ever. Windows chief Terry Myerson said today that Microsoft wants to see Windows 10 on 1 billion devices within two or three years of its release. "No other platform working in any ecosystem is available on 1 billion devices," he said. Microsoft believes that between its free upgrade offer for existing Windows customers, new devices, and plans for business users, it should be able to hit that target."

Revised prediction in 2016

In July of 2016 Microsoft realized it might taken longer to be installed on a billion browsers: "..Windows marketing head Yusef Medhi says the poor performance of its mobile division means it won't likely hit its original milestone within three years after release."Windows 10 is off to the hottest start in history with over 350 million monthly active devices, with record customer satisfaction and engagement," he said. "We're pleased with our progress to date, but due to the focusing of our phone hardware business, it will take longer than FY18 for us to reach our goal of 1 billion monthly active devices. In the year ahead, we are excited about usage growth coming from commercial deployments and new devices - and increasing customer delight with Windows." Starting July 30th, 2016, the company will no longer give out the upgrade for free and instead will start charging $119. So the upgrade rate is expected to slow further."

Indeed, ceasing the free upgrades no doubt slowed the growth of usage. The failure of the mobile version also meant that other operating systems such as Android were dominating the phone market.

Microsoft is still short of its target

While Windows 10 on 800 million devices worldwide is the most popular desktop operating system in the world it is still a long way from being on a billion devices even though it is now over three years since its release. Last year Windows 10 overtook the older Windows 7. WIndows 10 is currently on 40 percent pf PCs according to Net Applications but Windows 7 is still in second place with 38.5 percent. The most popular Apple Mac OS is Mojave 10.14 at just less than 5 percent.

Statcounter data

Statcounter has data on operating system shares on all devices plus particular devices such as desktops and also shows the share of different Windows versions on desktops. On desktops Windows 10 is on more than half the desktops globally by far the most prevalent OS on desktops. However, if one looks at all devices then it is the Android OS that wins at present with 36.5 percent of the market just above that of Windows systems at 35.99 percent. Apple's mobile iOS has 13.9 percent while its OS X has another 6.37 percent. Linux has a mere 0.79 percent with the rest being unknown or an unlisted brand.

Previously published in Digital Journal

Buzzfeed jokingly tests out a new technology the newspaper

BuzzFeed is well known for its focus on digital media and the Internet. In spite of its development as a serious news source, it is still regarded by many as an unreliable source by many. Its most recent publicity stunt may not help its reputation.

The BuzzFeed publicity stunt

BuzzFeed has gone backwards to the technology of a bygone era the newspaper. It handed out 20,000 newspapers as part of a publicity stunt on Wednesday. BuzzFeed joked that it was testing a new technology. The ambassador for the BuzzFeed brand Ayanna Whitmore gave out copies of the newspaper at a subway station in New York. BuzzFeed headquarters are in the city.

The newspaper consisted of 12 pages. There were cheeky treatments in the special edition including its cover story "How Momo Went From VIral Hoax to Viral Hottie." The Momo Challenge was a hoax and urban myth described in part by Wikipedia as follows: "The "Momo Challenge" is a hoax and urban legend about a nonexistent social media challenge that was spread on Facebook and other media outlets. It was reported that children and adolescents were being enticed by a user named Momo to perform a series of dangerous tasks including violent attacks, self-harm and suicide."

Other articles in the newspaper dealt with entertainment, food, and the supposed millennial burnout. There was even one tidbit on politics that advised people not to hire Democratic Senator Cory Booker a 2020 presidential candidate and teetotaler as a bartender for their next party. The back page was devoted solely to ads.

BuzzFeed

Wikipedia describes BuzzFeed: "BuzzFeed, Inc. is an American Internet media, news and entertainment company with a focus on digital media; it is based in New York City. BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III, to focus on tracking viral content. Kenneth Lerer, co-founder and chairman of The Huffington Post, started as a co-founder and investor in BuzzFeed and is now the executive chairman, as well. Originally known for online quizzes, "listicles", and pop culture articles, the company has grown into a global media and technology company, providing coverage on a variety of topics including politics, DIY, animals, and business. In late 2011, BuzzFeed hired Ben Smith of Politico as editor-in-chief, to expand the site into serious journalism, long-form journalism, and reportage. After years of investment in investigative journalism, BuzzFeed News had by 2018 won the National Magazine Award. and the George Polk Award and been a finalist for the Pulitzer Prize and the Michael Kelly Award."

As the appended video shows BuzzFeed has been criticized for some of its serious news coverage. BuzzFeed is translated into many languages

Previously published in Digital Journal

US to use AI to help tank crews in targeting

Just last month the US army announced a call to private companies for proposals to improve its planned semi-autonomous AI driven targeting system to be employed on tanks.

ATLAS

The system involved is called ATLAS, an acronym for Advanced Targeting and Lethality Automated System. The system is designed to acquire, identify, and engage targets at least 3 times as fast as the current manual process.

A recent government announcement is for an Industry Day later in March:The Army Contracting Command - Aberdeen Proving Ground Belvoir Division (ACC-APG Belvoir) is announcing an Industry Day on behalf of the U.S. Army Combat Capabilities Development Command (CCDC) and the Army Science and Technology (S&T) community, for the Advanced Targeting and Lethality Automated System (ATLAS) program. An Industry Day will be held at Fort Belvoir, VA on 12-13 March 2019 at the Officer's Club.The purpose of this meeting is to provide Industry and Academia with an overview of the program and to solicit sources capable of providing technical solutions to support ATLAS. The Army has a desire to leverage recent advances in computer vision and Artificial Intelligence / Machine Learning (AI/ML) to develop autonomous target acquisition technology, that will be integrated with fire control technology, aimed at providing ground combat vehicles with the capability to acquire, identify, and engage targets at least 3X faster than the current manual process. The ATLAS will integrate advanced sensors, processing, and fire control capabilities into a weapon system to demonstrate these desired capabilities. The goal of this industry day is to provide developments achieved regarding these technologies within the traditional defense community, as well as the private sector, including those firms and academic institutions outside that do not traditionally do work with the U.S. Army

The language caused some people to fear that the Army was developing AI-powered killing machines or robots.

Humans will still be involved in decisions to fire

In response the Defense Department did not change the language of the invitation to present proposals and ideas but explained that policy had not changed. That policy is explained as follows: "All development and use of autonomous and semi-autonomous functions in weapon systems, including manned and unmanned platforms, remain subject to the guidelines in the Department of Defense (DoD) Directive 3000.09, which was updated in 2017. Nothing in this notice should be understood to represent a change in DoD policy towards autonomy in weapon systems. All uses of machine learning and artificial intelligence in this program will be evaluated to ensure that they are consistent with DoD legal and ethical standards."

Directive 3000.09 requires that humans should be able to "exercise appropriate levels of human judgment over the use of force". Hence, the US does not intend to release a fully autonomous tank on the battlefield but only ones that have AI software to aid in finding, identifying, and engaging targets. The tank is not able to independently decide to fire at a target. A human will make the final decision. This is similar to the situation with drones where the drone operator makes the final decision to fire. However, at present the tanks will have a crew unlike drones. Drones also raise problems about humans being impressed by the AI and firing at targets simply on the basis of AI data about them.

The problem of autonomous tanks and other robotic weapons still exists

At present the US Army is developing tanks that have AI powers that are used for helping the human tank crew to identify, find, and engage targets. The AI system is like having another soldier in the turret to help out the crew. However, the US Army could decide in time to simply do away with the human factor. It could develop self-driving tanks that simply do all the identification, finding, and engaging of targets on the basis of AI. The development of tanks capable of operating without human decisions is surely worrying enough.

Stuart Russell an AI scientist and activist at Berkeley , a prominent critic of ATLAS up to now said “Even if the human is ‘in the loop’ [currently], the ‘approval’ step could easily be eliminated..meaning that this is lethal autonomy in all but name.”

Formerly published in Digital Journal

Both Canada and the US posted record trade deficits last December

Both Canada and the United States ended last year buying more from other countries than ever before. According to figures released Wednesday March 6 trade deficits rose to their highest levels in December of 2018 in both countries.

Canada

According to a recent Bloomberg article, the Canadian deficit last December, the largest on record, was due almost entirely to a collapse in crude oil prices.

In December last year, Canada suffered a C$4.6 billion ($3.4 billion US) trade deficit on the month more than twice the C$2 billion November deficit according to Statistics Canada. A Bloomberg survey of economists had predicted only a C$2.1 billion deficit.

During the month, exports fell 3.8 percent. However, if energy exports are excluded exports were basically unchanged. Imports rose by 1.6 percent. This was the fifth decline in a row. A record level was set in July. While Canadian crude prices rebounded this year, the trade figures come after slow GDP data which shows economic growth had stalled at the end of last year.

Late in 2018 crude prices dropped amid a supply glut, leading to Alberta mandating a cut in production. Crude exports actually fell 28.7 percent to just $3.3 billion representing the largest decline since December of 2008. In spite of the drop over 5 consecutive months. the total export values were actually up over the full year 19.7 percent over 2017.

Exports to the US, Canada's biggest trading partner, were down 3.6 percent in December down 3.6 percent as less crude oil was exported . American imports fell 2.4 percent. As a result Canada's trades surplus with the US was just C$1.8 billion whereas in November it had been $2.2 billion. Imports to Canada from other countries such as Brazil, China, and Russia reached a record C$19 billion.

For the full year Canada had an increase both in imports and exports compared to 2017. Imports for they year were up 5.7 percent to C$607.1 billion whereas exports rose even more 6.5 percent to C$585.4 billion actually narrowing the trade deficit to C$21.7 billion from C$24.6 billion in 2017

United States

The US Department of Commerce reports that the US trade gap widened by 19 percent last December to $59.8 billion. This was its largest monthly deficit in more than ten years. Unlike Canada this was enough to bring the deficit to the largest yearly amount ever at $891.3 billion for the year.

If services are included, the gap shrinks to just more than $621 billion over the year but that is still 12.5 percent more than in 2017.

US President Trump often complains about the US trade deficit arguing that other countries take advantage of the US by selling much more than they buy from it. His use of tariffs is intended to help remedy the situation and lead to better trade deals.

However, trade figures suggest that the US is continuing to import more than it sells. The strength of the US dollar is in part responsible for this as it makes foreign goods cheaper. It gives US consumers more purchasing power when buying foreign goods.

Derek Holt a Scotiabank economist said: "Broad dollar strength is only going to make the deficit worse despite Trump's protestations."

Published previously in Digital Journal

Belgian company to recycle electric race car batteries

The all-electric car racing series Formula E is not just attempting to improve the performance of electric cars (EVs) but also to produce cleaner and more efficient EVs.

Formula E races

Wikipedia describes the races: "Formula E, officially the ABB FIA Formula E Championship, is a class of auto racing that uses only electric-powered cars. The series was conceived in 2011, and the inaugural championship started in Beijing in September 2014. The series is currently in its fifth season. It is sanctioned by the FIA. Alejandro Agag is the founder and current chairman of Formula E Holdings."

Formula E announced last month that it has entered a partnership with the Belgian-based recycling company Umicore. Formula E will collect all its used batteries from its racing teams and send them to Umicore where they will be sorted and dismantled. Umicore will then put them through their proprietary smelting and hydrometallurgical process that will recover all the metals from the batteries.

Organizers of the Series E claim the metals are recyclable again so they can be made into new batteries many times over.

Battery recycling a key issue for EV manufacture

EV batteries are a large part of the materials used in manufacture of EVs. The production of the batteries consumes many scarce resources actually more than gas engine vehicles according to automakers. While driving EVs uses less energy than gas or diesel vehicles, battery recycling will also help them to minimize resource consumption in their manufacture as well.

Up to now EV makers have been searching for ways to reuse EV batteries that no longer function to drive the vehicles. Some are being used for solar storage or in charging stations. As EV's are relatively new on the market there is not a huge supply of used batteries that would make recycling programs profitable.

Umicore is one of just a few recyclers of EV batteries around the world. BMW has also made arrangements to recycle batteries from its i3 EV. Several countries where EVs are already quite prevalent have regulations that make EV automakers responsible for ensuring that their EV are reused or recycled so that they do not become part of the waste stream. If Umicore's recycling program is successful this will make EVs an even more attractive alternative to gas and diesel vehicles.

Umicore

Wikipedia says of Umicore: " Umicore N.V.. formerly Union Minière, is a multinational materials technology company headquartered in Brussels, Belgium.Formed in 1989 by the merger of four companies in the mining and smelting industries, Umicore has since reshaped itself into a more technology-focused business encompassing such areas as the refining and recycling of precious metals and the manufacture of specialised products from precious metals, cobalt, germanium, zinc, and other metals...Battery Recycling is a second business unit, focused on the recycling of spent rechargeable batteries from laptops, mobile phones, and hybrid electric vehicles."

Umicore now generates most of its revenues from clean technologies such as recycling, emission control catalysts, materials for rechargeable batter,s and photovoltaics. Umicore is ranked as one of the Global 100's "Most Sustainable Companies in the World:" In 2013 it was the top-ranked company. The company has won an award for its breakthrough technologies for recycling lithium-ion batteries and other initiatives.

Apple has big drop in iPhone sales in China

Apple reports a significant decline in iPhone sales in mainland China during the first quarter of 2019. As a result, there was a drop also in employee pay and benefits and even layoffs and resignations at assembly plants.

Reasons for the decline in China iPhone sales

Apple Chief Executive Officer (CEO), Tim Cook, said: "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in greater China." Cook also noted: "We believe the economic environment in China has been further impacted by rising trade tensions with the United States."

During the first quarter of this year, revenue dropped 26.7 percent in greater China, Hong Kong, Macao and Taiwan.

A recent Digital Journal article discussed Huawei's cheaper phones, and how they are impacting the ability of Apple and Samsung to sell premium smartphones in the region: "Samsung at 17 percent and Apple at 16 per cent approximately still are first and second in terms of smart phone market share. However, at 15 percent Huawei is nipping at their heels. Both are also losing share in the fourth quarter compared to the same time period the previous quarter. Apple lost two percentage points and Samsung about one."

Mark Zandi, an economist at Moody's Analytic,s had a different take on events: "Apple is a bellwether. The iPhone is something that everyone knows and buys, and if people aren't buying it, then that's a pretty good sign they're having a hard time. If people aren't buying iPhones, they're probably not buying everything else. It symbolizes how deep China's economic problems are, and we can connect the dots right back to the trade war."

Sales decline has a negative effect on working conditions

The world's largest iPhone assembly plant Foxconn in the city of Zhengzhou capital of Henan province has seen working conditions deteriorate. Workers reported that their salaries were unexpectedly cut at the end of 2018. One anonymous Foxconn worker claimed that peak production lasted only 20 days last year, resulting in a salary cut from about $598 in October last year to just $447 in the next month November.

Formerly published in Digital Journal

Facebook testing dark mode in Messenger

Facebook has changed its Messenger app recently. The app has been slimmed down in order to focus more on the chat function. Facebook also has promised that it would eventually roll out what is called a dark mode.

Dark Mode

Dark mode is basically a display mode in which the screen background is dark and text and other features are light. Some operating systems have a dark mode as do some browsers. An article in Macworld last September explains how it operates in the Mac Mojave: "In macOS Mojave in Dark Mode, dark colors are used in place of light colors in the user interface. For example, in Dark Mode the menu bar at the top of the Mac UI is no longer white with black text. Instead, it’s inverted so the bar is a dark color and the the text is white. That dark theme is carried throughout the UI."

The browser Chrome is also testing a dark mode on Windows which is to be released later this year.

For some Dark Mode may not seem particularly significant but it does have a number of benefits that some users appreciate. The higher contrast for the text makes it easier to read documents and menu items. Using dark colours instead of white also reduces glare which reduces eye fatigue. Finally, it also can improve ones ability to see certain aspects of photos and videos including color and detail.

Dark Mode test on Facebook Messenger

There is no setting of any sort at present for transitioning to Dark Mode. The only way you get to test mode is to go on a chat thread and send the person the moon emoji. You can send it to someone else or to yourself. Once sent you tap on the sent emoji icon and a message should appear saying that you found Dark Mode. If that doesn't work quit Facebook Messenger and tap the emoji to see the Dark Mode message.

After having done this you can go to Messenger settings and toggle the Dark Mode switch to on. This should enable the Dark Mode interface. However, some have received a message that Dark Mode is still a work in progress. There is no date yet as to when the Dark Mode will be officially rolled out on Messenger.

Previously published in Digital Journal

Some Coinbase users closing accounts in protest at acquisition

The hash tag #deletecoinbase is ringing out across Twitter as some bitcoin users are closing their accounts on the exchange as a protest against Coinbase's acquisition of Neutrino.

The issue

The issue is not to do with Neutrino per se but Neutrino executives: CTO Alberto Ornaghi, CEO Ginacarlo Russo, and CRO Marco Valleri. The three previously spearheaded the startup Hacking Team. The Hacking Team sold spyware to several governments that are well known for human rights abuses such as Saudi Arabia and Ethiopia. In Saudi Arabia this included working with the enforcement group accused in the murder of Jamal Khashoggi. The Hacking Team website in Italy claims: "We believe that fighting crime should be easy: we provide effective, easy-to-use offensive technology to the worldwide law enforcement and intelligence communities."

A recent Vice article notes: "Normally, such an acquisition wouldn’t make many waves, but Neutrino isn’t your average startup. The company was founded by three former employees of Hacking Team, a controversial Italian surveillance vendor that was caught several times selling spyware to governments with dubious human rights records, such as Ethiopia, Saudi Arabia, and Sudan."

The founders of Neutrino, however, are not part of that industry anymore. Some people think that Coinbase shouldn’t forget their past. But for Coinbase, what matters is the technology they developed since leaving the spyware industry.

Not clear how widespread account closure is

In a Google search of the #deletecoinbase hash tag produced above 500 results. Not all of them are unique of course and some may have been before the acquisition was announced. It is likely a small percentage of the 13 million Coinbase accounts.

A recent Coindesk article reports several tweets on the issue and also notes: Meltem Demirors, founder of Shiny Pony Ventures and chief strategy officer at the asset manager CoinShares, told CoinDesk she will no longer use Coinbase after this incident. “There are so many other services out there that do [blockchain analysis] that don’t have these reputational issues, and frankly the ethical issues that some of these Neutrino founders have,” Demirors said. “This example, to me, clashes with all the messages [Coinbase] are trying to put out there about creating an open financial system, a more inclusive financial system.”“This acquisition of Neutrino supports the idea of using bitcoin for surveillance capitalism.”

Coinbase had declined to comment on the number of users leaving the platform at the time of the publication of the above referenced article. Coinbase has headquarters in San Francisco California.

Previously published in Digital Journal

Light vehicle sales in both the US and Canada decline in February

DesRosiers Automotive Consultants claimed that light vehicle sales in Canada dropped in February continuing a downward trend in Canadian auto sales. Sales of light vehicles in the US also declined.

Lig

Canadian light vehicle sales down from a year ago

Desrosiers reports light vehicle sales were 120,891 for February, down from 125,530 in February 2018. This is the 12th month of sales declines from the previous year. The trend away from the sale of passenger cars continued last month with auto sales down 16 percent for the month. In contrast light truck sales rose 1.2 percent.

How individual auto makers did

Fiat Chrysler had the best sales with 18,461 autos sold but this was a two percent drop from a year earlier. Ford came in second but with just a 1.4 percent decline, and GM managed third but with a 9.1 percent drop from 2018.

Other makers had mixed results. Hyundai had a large 14.6 percent gain and Kia a respectable 10.5 jump. European luxury brands Audi, Jaguar, Maserati, and Mercedes all suffered more than 20 percent drops.

US sales of light vehicles also decline

The drop in the US showed that demand for SUVs has slowed after years of strong growth. The decline appears to portend a decline in sales for the full year of 2019.

Toyota Motor Corp. the number 3 automaker in the US by volume said that it had a 5.2 percent drop in sales to 172,000 vehicles for the month. There were declines in sales of the Camry sedan, Tundra pickups, and Sienna minivans.

Fiat Chrysler Autos reported their sales fell 2 percent to 162,036 vehicles. Demand was lower for the Jeep Compass and Renegade sport utility vehicles. Reid Bigland, the head of sales for the US said that the slowdown in the industry is partly due to weather, but also the US government shutdown and concern about tax refunds. MIchelle Krebs of Autotrader said the Compass and Renegade models are typically bought by budget-constrained buy who could be facing some shortage of cash at this time of year.

Analysts claim that rising interest rates on auto loans could also be a factor in lower demand this year. The higher payments required may be leading some potential buyers to postpone purchases for now.

GM and Ford no longer provide monthly sales figures

GM and Ford the two largest US automakers no longer provide monthly sales figures. However Automotive News estimates that Ford US light vehicle sales fell 4.4 percent in February.

Consultants J.D" Power, and LMC Automotive predict that total US auto sales will drop about 1 percent in February to a total of 1.29 million vehicles.

Honda Motor Co. reported a 0.4 percent drop in US sales in February to 115,159 vehicles, whereas Nissan Motor Co sales dropped double digts, 12 percent to 114,342 units in February. below Honda.

A Reuters poll of economists predicts that US car and light truck sales will fall to 16.80 million units annualized in February down from 17.01 million units last year.

Possible US tariffs threaten demand

Trump has threatened to impose a 25 percent tariff on imported cars. If this happens then this will further dampen consumer demand. It is estimated that if there were tariffs imposed they could lessen demand for the full year by up to 700,000 vehicles.

Previously published in the Digital Journal

Senator's bill bans social media platforms from having discriminatory targeted ads

Nevada Democratic Senator Catherine Cortez Masto is introducing into the Senate the Data Privacy Act that will explicitly ban platforms such as Facebook and Google from using targeted ads that discriminate against protected groups.

The Data Privacy Act

Cortez Masto's Act would give the power to the Federal Trade Commission to provide specific definitions for what is considered discriminatory behavior in targeted ads. The act also extends the FTC's authority for violations of the rules along with other protections on user data.

This would include discrimination based on race, sexual orientation or gender.

A spokesperson for Cortez Masto told Verge: “The Senator is focused [on making sure] that as Congress tackles the issue of protecting Americans data privacy, our government is also guarding against potential forms of digital discrimination in areas ranging from housing and employment to lending and access to resources.”

Previous discriminatory ads on Facebook

In 2016, Pro Publica purchased an ad in the housing category on Facebook in which they were able to exclude from the target anyone with an affinity for African-American, Asian-American or Hispanic people.

Pro Publica noted: "When we showed Facebook’s racial exclusion options to a prominent civil rights lawyer John Relman, he gasped and said, “This is horrifying. This is massively illegal. This is about as blatant a violation of the federal Fair Housing Act as one can find.”"

Facebook responded to Pro Publica by removing various targeting categories. However, a year later Pro Publica found that discriminatory targeting was still possible.

In November of 2017 a Pro Publica article wrote: "Last week, ProPublica bought dozens of rental housing ads on Facebook, but asked that they not be shown to certain categories of users, such as African Americans, mothers of high school kids, people interested in wheelchair ramps, Jews, expats from Argentina and Spanish speakers. All of these groups are protected under the federal Fair Housing Act, which makes it illegal to publish any advertisement “with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.” Violators can face tens of thousands of dollars in fines. Every single ad was approved within minutes."

Last April, Cortez Masto, along with more than a dozen other senators, signed a letter urging Mark Zuckerberg and Facebook to combat discriminatory ads for both housing and jobs.

The letter said in part: “The practice of discriminatory ad targeting is particularly nefarious because Facebook users cannot meaningfully control which ads they see; thus, discriminatory practices may go undetected. Barring advertisers from tailoring their ads to discriminate against users on the basis of their protected characteristics is a necessary step.”

Other provisions of the Privacy Act

The bill would also demand that platforms be more transparent about the way in which they collect, process, and store user data. Any collection of data would need to be for legitimate business or operational purposes and could not subject the use to a privacy risk. The platforms would be barred from deceiving users about how their data was being used. In most cases users should be able to opt out of the collection and storage of their data.

Industry groups want smaller businesses to be exempt from some of the bill's more onerous provisions, that collect data on less than 3,000 people per year and which have revenues of less than $25 million per year.

Previously published in Digital Journal

New restrictions require lithium-ion batteries to be in carry-on luggage

The United States Department of Transportation and Federal Aviation Administration (FAA) are forbidding people from storing lithium ion cells or batteries as cargo on passenger planes the two agencies announced.

Companies are not allowed to ship batteries with more than 30 percent charge on cargo-only planes.

Most consumers will not be directly affected

You will still be able to bring spare batteries and electronic devices aboard in your carry-on bag. However, people who buy batteries online could be affected. Phones, rechargeable batteries, and electronic devices shipped by air will now only arrive not with a full charge but only 30 percent to lessen the risk of any fire or explosion that could damage a plane. You can always charge them after they are received. However, some people may wonder why the new batteries do not last too long before they need to be recharged.

Lithium ion batteries as a fire risk

The Federal Aviation Association in 2017 urged the global airline industry to reconsider allowing lithium ion batteries on flights due to their fire risk. The FAA conducted 10 tests in which it packed a fully-charged laptop into a suitcase and the checked out a number of scenarios in which the battery could catch fire. In one example an aerosol can of dry shampoo was strapped on the laptop. A fire immediately started causing the aerosol can to explode in a mere 40 seconds.

The US Department of Homeland Security banned tablets and laptops from 8 Muslim-majority countries. People were required to check their batteries rather than bring them aboard in carry-ons. The decision was to ensure that there were no explosives making their way on to planes.

Another case of a ban because of possible battery malfunctions is described in a Verge article: "A week after issuing a statement "strongly advising" airline passengers not to use or charge Samsung's Galaxy Note 7 — which has been formally recalled over a series of explosions due to battery malfunctions — the Federal Aviation Administration has officially banned use of the device during flight."

The appended video is from nine months ago so does not discuss the most recent changes.

Previously published in Digital Journal