Trump picks up Indian-American Nikki Haley as UN ambassador

Washington, May 6: At a time when the coronavirus pandemic has squeezed them, multi-national companies in America are laying off workers while paying cash dividends to their shareholders. Thus making the workers bear the brunt of the sacrifices while the shareholders continue to collect.

The Washington Post said in one of its reports that five big American companies have paid a combined USD 700 million to shareholders while cutting jobs, closing plants and leaving thousands of their workers filing for unemployment benefits.

Since the pandemic was declared an emergency, Caterpillar has suspended operations at two plants and a foundry, Levi Strauss has closed stores, and toolmaker Stanley Black & Decker has been planning layoffs and furloughs.

Steelcase, an office furniture manufacturer, and World Wrestling Entertainment have also shed employees.

Executives of those companies told the Post that the layoffs support the long-term health of their companies, and often the executives are giving up a piece of their salaries. Furloughed workers can apply for unemployment benefits.

But distributing millions of dollars to shareholders while leaving many workers without a paycheck is unfair, critics argue, and belies the repeated statements from executives about their concern for employees' welfare during the coronavirus crisis.

Caterpillar, for example, announced a USD 500 million distribution to shareholders April 8, about two weeks after indicating that operations at some plants would stop. The company however declined to divulge how many workers are affected.

"We are taking a variety of actions globally, but we aren't going to discuss the number of impacted people," spokeswoman of the company, Kate Kenny, said in a reply to an email by the Post.

This spate of dividends is also likely to revive long-standing debates about economic rewards.

"There are no hard-and-fast rules about this," said Amy Borrus, deputy director of the Council of Institutional Investors, a group that argues for shareholder rights and represents pension funds and other long-term investors.

Many large US companies choose to issue a regular, quarterly dividend to shareholders, often increasing it, and they boast about these payments because they help keep the share price higher than it might otherwise be. Those companies might be reluctant to announce that they are cutting or suspending their dividend during a crisis, Borrus was further quoted as saying.

But "companies have to be mindful of the optics of paying dividends if they're laying off thousands of workers," she added.

On March 26, Caterpillar had announced that because of the pandemic, it was "temporarily suspending operations at certain facilities." Two plants, in East Peoria, Ill., and Lafayette, Ind., were coming to a halt, as well as a foundry in Mapleton, Ill., according to news reports.

"We are taking a variety of actions at our global facilities to reduce production due to weaker customer demand, potential supply constraints and the spread of the covid-19 pandemic and related government actions," Kenny said via email.

"These actions include temporary facility shutdowns, indefinite or temporary layoffs," she added.

Similarly, Levi Strauss announced April 7 that the company would stop paying store workers, and about 4,000 are now on furlough. On the same day, the company announced that it was returning USD 32 million to shareholders.

"As this human and economic tragedy unfolds globally over the coming months, we are taking swift and decisive action that will ensure we remain a winner in our industry," Chip Bergh, president and chief executive of the company, also told the Post.

Stanley Black & Decker announced on April 2 that it was planning furloughs and layoffs because of the pandemic. Two weeks later, it issued a dividend to shareholders of about USD 106 million.

The notion that a company's primary purpose is to serve shareholders gained prominence in the 1980s but has come under attack in recent years, even from business executives, the newspaper reported.

Corporate decisions to suspend dividends and buybacks are complex, however, and it is difficult to know whether these suspensions of dividend and buyback programs were motivated by a desire to conserve cash in anticipation of bad times, and how much they are prompted by a sense of obligation to employees.

Over recent decades, the mandate to "maximize shareholder value" has become orthodoxy, for many, and it is often unclear what motivates companies to pare dividends or buybacks for shareholders, said William Lazonick, an emeritus economics professor at the University of Massachusetts at Lowell, who has been one of the leading critics of companies that distribute cash to shareholders through stock buybacks and dividends rather than reinvesting the profits into employees, innovation and production.

Brussels/Amsterdam, Apr 16: As the novel coronavirus continues to wreak havoc in the western world since its outbreak in Wuhan last December, researchers believe that the Chinese leadership is trying to absolve President Xi Jinping by using a section of the western media to influence public opinion globally.

"There are clear indications that China is conducting activities in a persistent and systematic manner to influence public opinion-making, academia, think tanks and political decision-making among the member states of the Belt and Road Initiative (BRI) in general and western capital cities in particular," Siegfried O Wolf, Director of Research at Brussels-based think tank South Asia Democratic Front, said.

Some western media say some Chinese officials were secretly aware that they were facing a pandemic from the new coronavirus but allowed Wuhan to host a mass banquet for tens of thousands of people and millions began their annual trip home for the Lunar New Year celebrations.

The pandemic has since then affected 210 countries and territories around the world. Over 2 million people have been declared positive in which over 134,000 lost their lives.

"The frequency and extra-ordinary large scale of Chinese sponsored events in European political hubs, like in Brussels, and the subsequent media coverage can be seen as evidence for Beijing's public diplomacy efforts. However, the rising skepticism within the EU regarding Xi Jinping's development projects and the emerging questioning of Chinese sources funding Free Universities, like the one in Berlin, shows that this strategy produced mixed results so far," Wolf said.

He added, "However, one must also state that these efforts helped China to gain certain leverage among many non-Chinese media, western as well as non-western ones. Today, we can observe that China's political leadership tries to instrumentalise this influence for a major image campaign to distract from the fact that it carries the initial responsibility for the dramatic spread of COVID-19 by holding back key information."

Wolf also said that the current internal dynamics in China, like the shirking of responsibilities by the local authorities, are most-likely part of a twofold strategy. Firstly, there is the strategic component - namely, to reaffirm to the general public that the Communist Party of China is still in full control of the situation. The second strategic pillar is one of 'whitewashing'.

"Concretely, Beijing's obvious aim is to distract the domestic and international attention from the real, but hidden causes of the Coronavirus outbreak and its potential reputational and political consequences for Xi Jinping and his BRI," he stated.

Yoana Barakova, a Research Analyst at European Foundation for South Asian Studies (EFSAS), an Amsterdam-based think-tank, said, "The death of Dr. Li Wenliang, one of the very few medical professionals who tried to warn the world in December 2019 about the looming threat, sparked widespread condemnation around the international community in early February. Yet, little did he know that his legacy would continue much later after his demise, with the emboldened Chinese government trying to cover up its missteps through hardcore censorship after being exposed for undermining and underestimating the initial danger."

The researchers believe that the deterioration in press freedom under Jinping's regime has become more evident in recent days, with local authorities trying to control the state narrative by cosmetically placing media's focus on government's superficial attempts to tackle the crisis.

Kensington (United States), May 20: The world cut its daily carbon dioxide emissions by 17% at the peak of the pandemic shutdown last month, a new study found.

But with life and heat-trapping gas levels inching back toward normal, the brief pollution break will likely be “a drop in the ocean" when it comes to climate change, scientists said.

In their study of carbon dioxide emissions during the coronavirus pandemic, an international team of scientists calculated that pollution levels are heading back up — and for the year will end up between 4% and 7% lower than 2019 levels.

That's still the biggest annual drop in carbon emissions since World War II.

It'll be 7% if the strictest lockdown rules remain all year long across much of the globe, 4% if they are lifted soon.

For a week in April, the United States cut its carbon dioxide levels by about one-third.

China, the world's biggest emitter of heat-trapping gases, sliced its carbon pollution by nearly a quarter in February, according to a study Tuesday in the journal Nature Climate Change. India and Europe cut emissions by 26% and 27% respectively.

The biggest global drop was from April 4 through 9 when the world was spewing 18.7 million tons (17 million metric tons) of carbon pollution a day less than it was doing on New Year's Day.

Such low global emission levels haven't been recorded since 2006. But if the world returns to its slowly increasing pollution levels next year, the temporary reduction amounts to ''a drop in the ocean," said study lead author Corinne LeQuere, a climate scientist at the University of East Anglia.

“It's like you have a bath filled with water and you're turning off the tap for 10 seconds," she said.

By April 30, the world carbon pollution levels had grown by 3.3 million tons (3 million metric tons) a day from its low point earlier in the month. Carbon dioxide stays in the air for about a century.

Outside experts praised the study as the most comprehensive yet, saying it shows how much effort is needed to prevent dangerous levels of further global warming.

“That underscores a simple truth: Individual behavior alone ... won't get us there,” Pennsylvania State University climate scientist Michael Mann, who wasn't part of the study, said in an email.

“We need fundamental structural change.”

If the world could keep up annual emission cuts like this without a pandemic for a couple decades, there's a decent chance Earth can avoid warming another 1.8 degrees (1 degree Celsius) of warming from now, study authors said. But getting the type of yearly cuts to reach that international goal is unlikely, they said.

If next year returns to 2019 pollution levels, it means the world has only bought about a year's delay in hitting the extra 1.8 degrees (1 degree Celsius) of warming that leaders are trying to avoid, LeQuere said. That level could still occur anywhere from 2050 to 2070, the authors said.

The study was carried out by Global Carbon Project, a consortium of international scientists that produces the authoritative annual estimate of carbon dioxide emissions. They looked at 450 databases showing daily energy use and introduced a measurement scale for pandemic-related societal “confinement” in its estimates.

Nearly half the emission reductions came from less transportation pollution, mostly involving cars and trucks, the authors said. By contrast, the study found that drastic reductions in air travel only accounted for 10% of the overall pollution drop.

In the US, the biggest pollution declines were seen in California and Washington with plunges of more than 40%.