When the Trump administration slapped sanctions on Iran in November, European oil refiners turned to Venezuelan sour crude oil as a replacement — and after Trump announced sanctions on Venezuela to pressure President Nicolas Maduro out of office, "European refiners have been left competing to secure as much medium, sour Russian Urals as they can," Reuters reports. Trump's sanctions have removed at least 800,000 barrels a day from the market, and with OPEC simultaneously slashing the supply of sour crude oil, Russia is cashing in.
The U.S. is producing more oil than ever, but it is mostly light, sweet crude, so "it is not an alternative" for Europe, Reuters says. "Thanks to the higher premiums, Russia made an additional $140 million in March from seaborne and pipeline deliveries versus October prior to the sanctions coming into effect." Peter Weber
After 11 weeks of protests, Hong Kong Chief Executive Carrie Lam on Tuesday said the government wants to hold "open and direct" conversations with demonstrators.
"Work will start immediately to build a platform of dialogue," she said. "We hope this dialogue can be built upon a basis of mutual understanding and respect to find a way out for Hong Kong." Lam also said political leaders will start investigating complaints against police, one of the demands made by protesters. "I sincerely hope this is the start of society returning to calm and turning away from violence," she said.
The protests started with the introduction of a bill that would let people arrested in Hong Kong be extradited to China. The measure has been shelved for now, but protesters want the bill to be totally withdrawn. The demonstrators have shut down Hong Kong's airport and clogged the streets near the financial district. On Sunday, a peaceful rally drew approximately 1.7 million protesters, and it was a very different scene from the earlier protests, when riot police fired rubber bullets and tear gas; this time, there was a light police presence. Catherine Garcia
President Trump's next round of tariffs on Chinese imports will raise the average trade war cost for U.S. households to $1,000 per year, from $600, because the new duties will largely hit finished consumer goods, JP Morgan Chase researchers said Monday. The tariffs would largely negate any extra money consumers got from Trump's $1.5 trillion tax cut, and unlike with tax-subsidized farmers, "there is no simple way to compensate consumer," Dubravko Lakos-Bujas, JP Morgan's head of U.S. equity strategy, wrote to investors.
Consumer spending is the brightest spot in the U.S. economy right now, and facing slowdowns in manufacturing and business spending, and other warnings signs of a possible recession, the White House is now exploring a payroll tax cut to encourage Americans to keep their wallets open, The Washington Post and The New York Times report, citing several people familiar with the discussions. White House economic adviser Larry Kudlow is also reportedly advocating a capital gains tax cut, which would mostly benefit wealthy investors but, unlike the payroll cut, wouldn't require approval by Congress.
Payroll tax cuts, typically popular among Democrats because they benefit middle class workers, either drain money from Social Security and Medicare accounts or add to the ballooning deficit, already up 27 percent from last year. The White House said Monday that "cutting payroll taxes is not something under consideration at this time," despite Monday's White House discussions and an internal white paper exploring the idea.
Publicly, Trump administration officials have been dismissing the idea of a recession, but "Trump has sent mixed messages," the Post notes. He tweeted that the economy is "very strong," then specifically urged the Federal Reserve to cut already-low interest rates by 100 basis points and pump more money into the economy through "quantitative easing." Cutting benchmark interest rates to 1.25 percent would give the Fed "little additional wiggle room to maneuver if a full-fledged recession began," the Post reports, and quantitative easing is "an extreme step that central bankers take when they are trying to urgently address a slumping economy." Peter Weber
It was a study in contrasts: On one side, the well-maintained Alexandria National Cemetery, on the other, the overgrown and rundown Douglass Memorial Cemetery.
Three years ago, Griffin Burchard, now 16, was in Alexandria, Virginia, on a Boy Scout service trip. He was helping to remove dead wreaths at the national cemetery, but couldn't stop looking at the Douglass Memorial Cemetery, a historic black cemetery named in honor of abolitionist Frederick Douglass. Burchard saw leaves everywhere, he told The Washington Post, limbs falling off of trees, and damage caused by flooding, and wanted to do something about it.
This year for his Eagle Scout project, Burchard spearheaded a major renovation of the cemetery, assisted by other Boy and Girl Scouts. He first received a permit from the city to start the cleanup, and then conducted research on the cemetery, learning that at least 1,900 people were buried there between 1890 and 1975. Burchard earned $200 through recycling, and used that money to pay for a new sign, featuring a Douglass quote: "Without a struggle, there can be no progress."
Last Thursday, during a brief ceremony at the cemetery, Burchard said Douglass was a "great example of a citizen who impacted his community," adding that the project "made me want to be a great citizen." As there is no church or nonprofit taking care of the land, Burchard also hopes someone in the area will express interest in becoming the cemetery's regular caretaker. Catherine Garcia