U.S. stocks inch higher on housing, factory data

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U.S. stocks inch higher on housing, factory data

Dec 18. 2019
File Photo

File Photo
By Syndication Washington Post, Bloomberg · Todd White, Vildana Hajric 

474 Viewed

U.S. stocks inched higher Tuesday as manufacturing and housing data topped expectations, just as the sugar rush of a partial trade deal between the world’s two largest economies began to fade. The dollar gained while 10-year Treasuries slipped.

The S&P 500 index built on the previous session’s record-high close, which was underpinned by the partial U.S.-China trade agreement. Tuesday brought news that U.S. factory production last month rebounded by more than forecast, and that construction of new U.S. homes beat estimates as permits to build climbed to a 12-year high.

“Housing is an economic bellwether and its recent strength is further encouraged by the strength we’ve seen in manufacturing, as those two industries are typically related,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial. “But critical to the health of housing is ongoing trade tensions.”

The Stoxx Europe 600 dropped from Monday’s record close, as Unilever tumbled in the wake of a sales-growth warning and led a slump in personal goods makers. U.K. shares were particularly volatile, and sterling sank the most since July versus the euro after Prime Minister Boris Johnson proposed a legal change that revived the chances of a no-deal Brexit. Earlier in Asia, a benchmark stock gauge rose to the highest level since mid-2018. European government bonds drifted higher.

With a $44 trillion global gauge of stocks close to an all-time high and benchmarks in Europe and the U.S. also hovering near record levels, concerns linger over the details of the China accord. The warning by bellwether Unilever also took some of the shine from improved forecasts for the global economy.

Elsewhere, West Texas intermediate crude edged higher, while gold was little changed. Bitcoin’s woes continued, as the digital currency languished below $7,000.

Here are some key events to watch for this week:

–Policy decisions are due Thursday from the Bank of Japan and the Bank of England.

–Federal Reserve district bank presidents including Eric Rosengren of Boston and John Williams of New York are scheduled to speak this week.

–Revised U.S. GDP data are due Friday.

–Friday brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

Stocks

-The S&P 500 index was little changed at 3,192.23 as of 4:00 p.m. New York time, hitting the highest on record with its fifth consecutive advance.

-The Stoxx Europe 600 index declined 0.7% to 414.92, the first retreat in a week and the biggest drop in more than two weeks.

-The U.K.’s FTSE 100 index gained 0.1% to 7,525.28, hitting the highest in almost 20 weeks with its fifth consecutive advance.

-Germany’s DAX index declined 0.9% to 13,287.83, the first retreat in a week and the biggest drop in more than two weeks.

-The MSCI Emerging Market index jumped 1.3% to 1,102.51, hitting the highest in 18 months with its fifth consecutive advance.

Currencies

-The Bloomberg Dollar Spot index climbed 0.2% to 1,194.79, the biggest increase in more than three weeks.

-The euro was little changed at $1.1146, the strongest in more than six weeks.

-The British pound sank 1.6% to $1.3123, the weakest in almost two weeks on the biggest tumble in 13 months.

-The Japanese yen was little changed at 109.52 per dollar.

Bonds

-The yield on 10-year Treasuries increased one basis point to 1.88%.

-Germany’s 10-year yield declined two basis points to -0.30%.

-Britain’s 10-year yield fell six basis points to 0.762%, the lowest in almost two weeks on the biggest fall in two weeks.

Commodities

-West Texas Intermediate crude gained 1.1% to $60.89 a barrel, the highest in three months.

-Gold was little changed at $1,475.96 an ounce.

Two sites shortlisted for new airport in Nakhon Pathom

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Two sites shortlisted for new airport in Nakhon Pathom

Dec 18. 2019
Deputy Transport Minister Thaworn Senneam

Deputy Transport Minister Thaworn Senneam
By THE NATION

647 Viewed

The Department of Airports has shortlisted two locations, after a study of ten potential sites, for the construction of Nakhon Pathom Airport. The project aims to ease heavy traffic and delays at existing airports, where demands have exceeded capacities, especially from private jets, said Deputy Transport Minister Thaworn Senneam on Tuesday (December 17).

The two locations are Bang Len and Nakhon Chai Si districts in the province, both located near a motorway linking Bangyai to Kanchanaburi and take about an-hour drive form Bangkok.

The new airport will occupy 3,500 rai. It will have three passenger terminals, and a carpark for 5,200 vehicles

Thaworn said the project might come under the Public-Private Partnership (PPP) scheme, adding that the department was expected to wrap up an investment study early next year before submitting a proposal to the Cabinet.

If the project is approved by all related parties, construction can begin in 2023 for commencement of operations in 2026.

Political situation to cause only short-term pressure on stock market: top official

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Political situation to cause only short-term pressure on stock market: top official

Dec 18. 2019
Kobsak Pootrakool

Kobsak Pootrakool
By THE NATION

621 Viewed

Kobsak Pootrakool, deputy secretary-general to the prime minister for political affairs, said he personally believes the current political situation would cause only short-term pressure on the stock market.

He made the remark when speaking about capital markets at the seminar SEC Capital Market Symposium 2019, held on Tuesday (December 17) by the Securities and Exchange Commission.

He said stock investors should not panic as the fundamentals of listed companies are strong while the firms themselves are competitive.

Kobsak urged all parties to join forces to take the country forward.

He also believes the 2020 budget bill will sail through and take effect early next year.

Finance panel okays 7% VAT on products ordered online from foreign countries

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Finance panel okays 7% VAT on products ordered online from foreign countries

Dec 18. 2019
By The Nation

849 Viewed

The Finance Ministry aims to tax online products from foreign countries to provide fair competition to Thai manufacturers.

Finance permanent secretary Prasong Poontaneat said the tax reform committee approved the decision to collect 7 per cent value-added tax on goods ordered online from other counties and also cancel the tax-free status on imported products priced below Bt1,500 to be fair to Thai manufacturers, who produce similar goods and who are charged 7 per cent VAT. The policy is now awaiting the green light from the cabinet.

In reply to a question, principal adviser on Customs Control Development Chaiyuth Kumkun said that in the case where personal belongings in a foreign county were sent back to the host via mail, the owner of the belongings would not be taxed. Customs will consider such evidence as the item’s condition, a photo of the owner with the belongings, or any evidence to affirm that the items were bought in Thailand.

“If the value of the belonging isn’t worth enough to sell as an expensive second hand item, the officer might not tax the owner,” Chaiyuth said.

A tough year for emerging markets ends with money in bank

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A tough year for emerging markets ends with money in bank

Dec 18. 2019
By Syndication Washington Post, Bloomberg · Yumi Teso, Hannah Dormido 

908 Viewed

Emerging markets are about to end a turbulent year in which U.S.-China trade tensions dominated headlines and central banks around the world came to rescue the global economy from falling into a recession.

Stocks, currencies and local-currency sovereign bonds of developing economies are all eking out gains for 2019 after last year’s biggest annual losses in three years.

“It was one of those weird years where the economic situation was worse than expected from the beginning of this year,” said Michael Kushma, the chief investment officer for global fixed income in New York at Morgan Stanley Investment Management. “That makes investors worried that we have all the good news priced in and that next year it’s going to be much more challenging.”

Here are some highlights of 2019 across global emerging markets:

U.S. Trade War

As the U.S.-China trade war entered into another year, headlines about the dispute remained a major market driver as the imposition of reciprocal tariffs weighed on exports and economic growth outlooks globally. The International Monetary Fund made a fifth straight cut to its 2019 global growth forecast in October — to 3% from 3.2% in July — citing a broad deterioration as trade tensions undermined the expansion.

Sentiment turned more positive in the fourth quarter as the two largest economies in the world reached a phase-one trade deal in December, without providing much detail on when it will be signed, what China will buy more of, or when part two will start being discussed.

Amid speculation China would use a weaker currency to fight against the tariff impact, both the offshore and onshore yuan weakened past 7 per dollar in August. It was the first time since 2008 the onshore yuan fell below that level, spurring senior officials of the People’s Bank of China to reassure foreign companies the currency won’t continue to weaken significantly.

Global Easing

The Reserve Bank of India kicked off the rate-lowering cycle in Asia in February and has been the most aggressive among the major emerging-market central banks, with five cuts for a total of 135 basis points. This was followed by Indonesia with 100 points and the Philippines at 75 points.

Even those with already low policy rates joined the fray, with the Bank of Korea and Bank of Thailand reducing their rates by 50 basis points each to 1.25%. Malaysia cut once, in May, by 25 basis points.

In other regions, Turkey’s central bank delivered 1,200 basis points of cuts this year to 12% in pursuit of President Recep Tayyip Erdogan’s unconventional theory that high interest rates cause rather than curb price growth. Russia has lowered its policy rate by 150 basis points so far this year. Mexico reduced borrowing costs for the first time in five years, with cuts totaling 75 basis points so far in 2019.

Ukraine Bonanza

Ukraine’s newcomer President Volodymyr Zelenskiy, who won a runoff in April, was caught up in the political whirlwind surrounding Trump’s impeachment probe. Congress is investigating whether Trump exercised diplomatic pressure on Zelenskiy for his own political gain.

But that wasn’t enough to deter investors from lapping up Ukraine’s bonds and currency. Foreign funds looking to reap returns on high real interest rates and a burgeoning local-debt market propelled the hryvnia to the best currency performance worldwide. Ukraine’s dollar bonds handed investors a 29% return through Monday, the most among all emerging markets.

Russia Rally

Russia’s currency, equities and bonds bounced back after a rocky 2018, with the ruble and stocks beating all other major emerging markets and bonds handing investors the biggest return among major emerging markets. A new round of U.S. sanctions imposed in August proved to be less severe than expected.

Russian stocks were also boosted by more generous payouts from state-controlled companies under pressure to hand back profits to the Finance Ministry as dividends.

Argentina Election Surprise

Argentine markets all but collapsed in the aftermath of leftist Alberto Fernandez’s surprise victory in mid-August’s primary vote, which led the nation to implement capital controls and re-profile some of its local debt. The peso was the worst-performing currency in the world in 2019.

Fernandez took office Dec. 10, and investors were still waiting to learn how his new government will tackle a debt load of more than $100 billion as the nation careens toward what may be its ninth default in two centuries.

Protests Erupt Across Latin America

Social movements turned into into violent protests across Latin America in 2019 as the region’s worsening income inequality was exacerbated by fuel-price hikes in Ecuador, higher subway fares in Chile, and alleged voter fraud and an ousted leader in Bolivia. It has left the region vulnerable to currency, stock and bond sell-offs as investors weigh the uncertainty that comes along with ravaged cities, new governments and rewritten constitutions.

Colombia also experienced its largest protests in years, with labor unions, students and indigenous groups leading a nationwide strike aimed at President Ivan Duque.

Hong Kong Protest

What started out as a peaceful rally in March against a proposed extradition bill in Hong Kong escalated into full blown violence, with the number of casualties and damage still rising. The U.S. approved the Hong Kong bill supporting the protesters on Nov. 28, though it’s still unclear whether or how it will impact the U.S.-China trade negotiations. What is clear is that the protests don’t seem to be dying down, with one of the biggest pro-democracy protests since June occurring as recently as Dec. 8.

Japan-South Korea Spat

The two nations’ own trade war stems largely from differences in perception as to whether Japan has provided sufficient compensation for its 1910-45 colonization of the Korean Peninsula.

In July, Prime Minister Shinzo Abe’s government placed export restrictions on specialized materials vital for South Korea’s tech industry, claiming the measure was intended to prevent high-tech exports from being illegally transferred to North Korea, which is seen as retaliation for South Korean court decisions demanding Japanese companies such as Mitsubishi Heavy Industries Ltd. pay compensation to victims of wartime forced labor.

Japan removed South Korea from its list of “white nations” considered safe enough to export strategic materials to in August, while less than two weeks after that, President Moon Jae-in’s government downgraded Japan from its list of most trusted trading partners.

In retaliation for the export curbs, South Korea decided not to extend the General Security of Military Information Agreement, a bilateral pact to share military intelligence on matters such as missile launches by North Korea. South Korea put a halt to its decision to withdraw from this agreement late November as the two nations agreed to continue export talks.

Eskom Issue

A crisis at South Africa’s Eskom Holdings SOC Ltd. culminated in a decision by Moody’s Investors Service to cut the company’s debt outlook to negative from stable. Eskom provides about 95% of South Africa’s electricity. It has amassed about 450 billion rand ($31 billion) of debt.

The budget announced in February included a $4.6 billion cash injection over the next three years to help the company service debt and free up money for operations. The government has since announced a rescue plan for the utility and doubled the bailout.

The support has caused South Africa’s budget deficit to soar, putting the country’s sole remaining investment-grade credit rating of Baa3 with Moody’s at risk. On the operational side, the power cuts have already weighed on the rand and bonds, and present a huge risk to the economy due to the effect on business.

Aramco’s IPO

Saudi Aramco raised $25.6 billion from the world’s biggest initial public offering, closing a deal that became synonymous with the kingdom’s controversial crown prince and his plans to reshape the nation.

The IPO stands in contrast to its debut dollar-bond sale in April, which attracted more than $100 billion in orders. The demand allowed Aramco to issue $12 billion of bonds at lower yields than its sovereign parent.

Brazil’s Reform Fight

After years of political wrangling, Brazil’s President Jair Bolsonaro managed to push a pension-reform bill through Congress in October. The bill’s passage was quickly followed by proposed legislation from Bolsonaro to exert greater presidential control over the federal budget. Pension reform has been the primary focus for Brazil’s investors for years. Bolsonaro’s rise, along with campaign promises to pass the bill, brought investors back to the country. Now, all eyes are on Brazil’s bloated tax system, the fate of which remains uncertain.

Pemex Rescue

The year was filled with attempts by Mexican President Andres Manuel Lopez Obrador to make good on his campaign promise to rescue embattled state oil company Petroleos Mexicanos. The measures, which have ranged from tax breaks to direct capital injections, are an attempt to support the world’s most indebted oil company as it struggles to stem a decline in production.

The president’s attempts culminated in an oversubscribed $7.5 billion bond sale in September, which went toward reassuring investors of continuing Pemex bond demand, though a cloud of uncertainty still hangs over the company and the country.

Venezuela Defaults

Venezuela missed a payment in October on Petroleos de Venezuela’s 2020 notes — the country’s last bond not in default — setting it up for a legal showdown with holders over collateral that includes 50.1% shares of the company’s U.S. refiner Citgo Holding Inc. While the U.S. moved to temporarily block creditors from seizing the nation’s crown jewel abroad, there are signs of a legal battle ahead, as PDVSA bondholders tap a familiar aide for high-profile investors in debt disputes.

Elections in Asia

In the world’s most expensive election, Indian Prime Minister Narendra Modi was re-elected in May with a wider majority. Since then, the government’s biggest pro-business move has been the cut in corporate taxes, although bonds have failed to rally in the fourth quarter amid concerns for India’s fiscal health and the failure to issue the country’s first foreign-currency debt.

Indonesian President Joko Widodo secured his second and final term in office by a larger majority in the April elections, which was initially marred by protests by opposition. Jokowi’s subsequent cabinet announcement appeared to offer an olive branch to the opponents, while including business-friendly appointments. Investors so far appear favorable to the announced reforms, although there have been some back and forth on regulation.

Thailand’s first election since the military coup in 2014 proved to be contentious, with General Prayuth Chan-Ocha only re-elected as prime minister three months after voting closed, leading a coalition with a razor-thin majority. Despite the uncertainty, the baht remains the top performing currency in Asia in 2019 so far.

Euro-Bond Frenzy

In a bumper year for yield-hunting, emerging-market borrowers sold bonds at dirt-cheap yields, still a lot more attractive than the negative returns from developed economies. But what made 2019 special was the rise of the euro as a borrowing currency. From China to Ivory Coast, governments of all sizes and shapes couldn’t have enough of it as yields plunged.

For the first time since the shared currency was created in 1999, annual bond issuance in euro by emerging-market sovereigns crossed the 50 billion euro ($56 billion) mark. As of Dec. 16, the total amount stood at 52.4 billion euros, far outstripping the previous record of 39.9 billion euros collected over the whole of 2016, data compiled by Bloomberg showed. While the U.S. currency remains the top choice of emerging-market governments, euro-denominated securities now account for 28% of their borrowing abroad. That’s up from 21% in 2013.

U.S. factory output rebounds even without Post-GM strike bump

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U.S. factory output rebounds even without Post-GM strike bump

Dec 18. 2019
File Photo

File Photo
By Syndication Washington Post, Bloomberg · Reade Pickert

711 Viewed

U.S. factory production rebounded by more than forecast in November and rose excluding a surge in auto production following the end of the General Motors Co. strike, in a sign of stabilization in manufacturing.

The 1.1% increase in manufacturing output, the biggest gain since early 2018, followed a 0.7% decrease in October, Federal Reserve data showed Tuesday, topping the median estimate of economists for a 0.8% gain. Production of motor vehicles and parts jumped 12.4%, the most in a decade; excluding that category, factory output rose 0.3%, the first gain in three months.

Total industrial production, which also includes mines and utilities, rose 1.1% after a 0.9% decrease.

The increase is welcome to manufacturers, who have faced headwinds throughout the year including persistent trade- policy uncertainty and slowing global demand. Even with the gain in November, though, factory output fell 0.8% from a year earlier, and figures were revised lower for September and October, indicating that activity remains relatively subdued.

This month’s proposed initial trade accord between the U.S. and China could bode well for output in 2020 if confidence improves. The Federal Reserve Bank of New York’s survey Monday showed the outlook for orders among manufacturers in the state advanced to its strongest since February. The Institute for Supply Management’s national factory index has signaled contraction for four months, however.

Other sectors that saw gains in the Fed data included information processing equipment, foods and tobacco and primary metals. Home electronics, clothing and chemicals posted declines.

The report adds to signs economic growth is holding up in the fourth quarter amid indications that consumer spending, the largest part of gross domestic product, will be softer than anticipated. A separate report earlier Tuesday showed construction of new U.S. homes increased more than forecast in November and permits to build climbed to a 12-year high.

Capacity utilization, measuring the amount of a plant that is in use, rebounded to 77.3% from 76.6%.

Utility production rose 2.9% after falling 2.4% the prior month, as below-average November temperatures in much of the country supported demand. Mining production fell 0.2%, with oil and gas well drilling declining 3.9%.

The Fed’s monthly data are volatile and often get revised. Manufacturing, which makes up about three-fourths of total industrial production, accounts for about 11% of the U.S. economy.

Singapore non-oil exports fall for ninth straight month in November but drop narrows to 5.9%

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Singapore non-oil exports fall for ninth straight month in November but drop narrows to 5.9%

Dec 17. 2019
Shipments were down 5.9 per cent last month, following a revised 12.5 per cent plunge in October.PHOTO: ST FILE

Shipments were down 5.9 per cent last month, following a revised 12.5 per cent plunge in October.PHOTO: ST FILE
By The Straits Times/ANN

942 Viewed

SINGAPORE – Singapore’s non-oil domestic exports (Nodx) continued to fall in November for the ninth consecutive month. But the contraction was less than analysts predicted, thanks to a small recovery in non-electronics exports.

Shipments were down 5.9 per cent last month, following a revised 12.5 per cent plunge in October, according to data released by Enterprise Singapore (ESG) on Tuesday ( Dec 17).

The figure was the best showing since February and beat analysts’ consensus forecast of a 6.4 per cent year-on-year fall, as polled by Bloomberg.

Non-electronics exports returned to growth for the first time since February this year, with a 1.3 per cent improvement owing to stronger shipments of non-monetary gold, specialised machinery and non-electric engines and motors.

But electronics products shipments plunged 23.3 per cent – or $1 billion – from a year ago, worse than the 16.4 per cent drop seen in October. Integrated circuits, personal computers and disk drives contributed most to the decline.

UOB economist Barnabas Gan said that although the 23.3 per cent drop in electronics exports may seem alarming, it comes off a high base a year earlier. Also, in value terms, exports for these products recorded the highest figure in 10 months at $3.4 billion.

“So it seems like demand for Singapore products has improved, which is comforting,” he said.

Agreeing, Maybank Kim Eng analysts Chua Hak Bin and Lee Ju Ye said the year-on-year decline in electronics exports was exaggerated by “front-loading” of orders in late 2018 after US President Donald Trump threatened further tariff hikes. Exporters shipped out larger quantities of goods as companies brought forward their orders to beat future tariffs.

“We think the electronics downturn is past its worst and a recovery, albeit sluggish, is underway. A partial US-China trade deal will help revive capital expenditure and exports, and electronics exports will likely emerge out of contraction by early 2020,” they said.

On a month-on-month seasonally adjusted basis, exports improved by 5.8 per cent in November, after weakening by 3.1 per cent in the previous month. This was thanks to more shipments of both electronic and non-electronic products. On a seasonally-adjusted basis, the level of Nodx reached $14.1 billion in November.

On a year-on-year basis, exports to the majority of Singapore’s top markets fell last month on a year-on-year basis, except to the United States, Thailand and Indonesia. The biggest contributors to the decline were Hong Kong, the European Union and China.

On the other hand, exports to emerging markets grew by 4.4 per cent, in contrast to the 26.6 per cent contraction in the previous month. The improvement was mainly due to the Cambodia, Laos, Myanmar and Vietnam markets, the Middle East and Latin America.

Oil domestic exports sank by 27.5 per cent last month, while non-oil re-exports grew by 2.4 per cent from a year ago.

Overall, total imports and total exports decreased in November, but by less than the declines in October. As a result, total trade slid 5.9 per cent year on year.

Last month, Enterprise Singapore cut its Nodx forecast for the full year to between minus 10 per cent and minus 9.5 per cent, a further downgrade from the minus 9 per cent to minus 8 per cent range previously.

But it expects Nodx to pick up next year, with growth in the range of zero to 2 per cent on the back of a gradual recovery in electronics.

JPMorgan analyst Ong Sin Beng said he expects tech to help buoy Singapore’s exports in the first quarter of next year as global capital expenditure gradually recovers.

UOB’s Mr Gan noted: “Industrial production figures have also improved, which tells us that manufacturers have a rosier trade outlook, because why produce when you can’t sell.”

https://www.straitstimes.com/business/economy/singapore-non-oil-exports-fall-for-ninth-straight-month-in-november-but-drop

Pheu Thai plans no-confidence debate against ministers

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Pheu Thai plans no-confidence debate against ministers

Dec 17. 2019
Chalerm Yubamrung

Chalerm Yubamrung
By The Nation

1,299 Viewed

Chalerm Yubamrung, a core member of Pheu Thai party, made a statement today (December 17) that the opposition is considering tabling a motion of no-confidence against the government on January 6-10, 2020.

Four ministers will be targeted in the no-confidence debate: Prime Minister Prayat Chan-o-cha, Deputy Prime Minister Visanu Krua-ngam, Deputy Prime Minister Somkid Jatusripitak, and Minister of Foreign Affairs, Don Pramudwinai.

“We have prepared the data, but shame, I can’t participate,” Chalerm said.

He continued that the opposition had allowed the current government carrying on long enough and had seen many mistakes.

Topics slated for the debate include:

1.The current government is deemed as the most corrupt administration, using the Senate and the National Legislative Assembly as tools of dominance, with many National Legislative Assembly members becoming senators.

2. Failing to solve economic problems as seen in rising poverty.

3. Bullying increasing numbers of activists and people against the government.

4. Failing to rein in drug abuses.

5. Condoning wrongdoings by individuals from the government party, such as MP Pareena Kraikupt’s alleged encroachment of 46 rai of land in a protected forest area.

Employment green card backlog tops 800,000, most of them Indian. A solution is elusive.

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Employment green card backlog tops 800,000, most of them Indian. A solution is elusive.

Dec 18. 2019
In this file photo from 2007, skilled immigrants, including doctors and engineers, rally on Capitol Hill in Washington, to protest long delays in getting green cards. MUST CREDIT: Washington Post photo by Jahi Chikwendiu

In this file photo from 2007, skilled immigrants, including doctors and engineers, rally on Capitol Hill in Washington, to protest long delays in getting green cards. MUST CREDIT: Washington Post photo by Jahi Chikwendiu
By The Washington Post · Abigail Hauslohner 

236 Viewed

WASHINGTON – An estimated 800,000 immigrants who are working legally in the United States are waiting for a green card, an unprecedented backlog in employment-based immigration that has fueled a bitter policy debate but has been largely overshadowed by President Donald Trump’s border wall and the administration’s focus on migrant crossings from Mexico.

Most of those waiting for employment-based green cards that would allow them to stay in the United States permanently are Indian nationals. And the backlog among this group is so acute that an Indian national who applies for a green card now can expect to wait up to 50 years to get one.

The wait is largely the result of an annual quota unchanged since 1990, and per-country limits enacted decades before the tech boom made India the top source of employment-based green card-seekers.

The backlog has led to competing bills in Congress and has pitted immigrants against immigrants, setting off accusations of racism and greed and exposing a deep cynicism about the prospects for any kind of immigration reform in a polarized nation. The debate centers on the potential benefits of a quick fix to alleviate the wait times for those already in the backlog versus a broader immigration overhaul that could allow more workers to seek permanent residency, address country quotas and expand the number of available green cards.

Among those pushing for a quick resolution are business leaders, who worry that a congressional stalemate – doing nothing at all – could push Indian workers out of the United States and cause others to seek easier paths to citizenship in other countries.

“What does that ultimately mean? Valuable, skilled people decide they should leave because they’re never going to get what they had hoped for,” said Bruce Morrison, a lobbyist and immigration attorney who wrote the last bill that increased the number of employment green cards in 1990, when he was in Congress representing Connecticut. “And valuable people don’t come because they figure our system is so broken they can’t see their way through it. Therefore, other countries bidding for these skilled workers get those workers. Companies in America move jobs abroad to employ those skills elsewhere. And American prosperity suffers.”

The crisis of employment-based green cards burst into the open in October after a narrow bill to address the issue nearly passed the Senate in a unanimous consent motion, after sailing easily through the House. Sen. Dick Durbin, D-Ill., stepped in and blocked it.

The bill’s supporters cast it as an easy and obvious fix – and one that “arguably has wider and more bipartisan support than any other immigration bill that’s been considered in this body in recent years,” its Senate sponsor, Mike Lee, R-Utah, said after Durbin objected. “The reason for that is it’s focused on a single, serious, solvable problem that I think we can all agree needs to be solved.”

But Durbin and other critics of the Fairness for High-Skilled Immigrants Act, which aims to provide relief to Indians by eliminating the country quotas for employment green cards, said it isn’t so simple. Because the bill did not increase the overall number of green cards, they argue the backlog will worsen, wait times for all nationalities will extend to 17 years, and a trickle-down effect will make it difficult for working professionals from anywhere other than India to come to the United States.

Durbin proposed his own bill, the Relief Act, which eliminates the country quotas but also raises the number of both employment and family-based green cards. Sen. Rand Paul, R-Ky., also proposed a comprehensive bill.

On Tuesday, Capitol Hill aides said there was possible deal under discussion between Durbin and Lee, but it was unclear whether it would materialize, and how soon. Conn Carroll, a spokesman for Lee, said it was his understanding that the “details are still being worked out.”

Part of the backlog involves families, as spouses and children of green card applicants count toward the annual cap of 140,000 employment green cards. Under Durbin’s bill, spouses and minor children would not count against the total quota, and children of applicants would no longer age out at 21, which has made them ineligible for green cards.

Yogi Chhabra, an IT professional in Louisville, Kentucky, says the backlog crisis has put his family in danger of being torn apart.

Chhabra, 55, has lived in the United States for 21 years and has been in the backlog for nine. His oldest son, now 23, is a U.S.-educated mechanical engineer who has lived in Kentucky since he was 3, but because he aged out of eligibility two years ago, his son now faces the prospect of being deported to a country he has never known.

“If he cannot find a job in eight months, he’ll have to leave,” Chhabra said. “It was just yesterday that he came home crying. We don’t know what to say to him.”

Chhabra and his wife, who has a PhD and works on kidney transplant research, have considered the possibility that they might also have to leave.

“I have been in the same job for 20 years now,” he said, noting that he has been passed by for promotions because he has to stay within a certain salary range to keep his spot in the green card line. “And they say it might be 100 years, because of the speed it is going, because of the country caps . . . I’m already 55. I’m not going to live that long.”

Bill Cook, general counsel to the Immigration and Naturalization Service under President George H.W. Bush, said the system has reached the crisis stage precisely because immigration policy has long been a series of limited fixes without any comprehensive approach.

“We need to have a public conversation about how many people we need,” Cook said. “Eventually the system implodes because it’s like a patchwork quilt of solutions.”

The Cato Institute, a libertarian think tank, declared Durbin’s bill “the best legal immigration reforms overall” and found that it would “virtually double” the total number of legal immigrants receiving permanent residence during the next decade while reducing wait times for everyone to less than a year.

But Indian tech workers have responded with desperate fury, protesting Durbin’s actions because they say they think his bill doesn’t have a chance in a Republican-controlled Senate.

“The point is it cannot pass. Not with Trump in office,” said Aman Kapoor, the leader of Immigration Voice, an activist group that backed the original legislation and has led a weeks-long campaign against Durbin, calling him a “racist” and accusing him of “ethnic cleansing” for stopping the Fairness for High-Skilled Immigrants Act. “You can’t add one green card now under Trump.”

Indians need a solution now, Kapoor said. “Every day you see someone in the backlog is dying. Or kids are aging out,” Kapoor said. “People are very stressed out because of the backlog.”

A green card is the final step in the legal immigration process – before becoming a U.S. citizen – and the government doles out about 1 million per year, 140,000 of which are employment-based. The most common green card involves a family member as sponsor.

An allotment system devised in the 1960s to promote diversity stipulates that no country can take more than 7% of certain types of green cards, such as those linked to employment, in any year. Extraordinarily high demand from certain countries has led to the backlogs.

In the employment category, approximately 75% of the backlog is Indian, the result of a growing tide of Indian migration since the 1990s, fueled by the tech boom. The rest are Chinese. Because the applicants for family-based green cards are predominantly Mexican and Filipino, the wait time for the Mexican and Filipino adult siblings of U.S. citizens, for example, is more than 20 years.

But unlike those in line for family visas, the workers in the employment backlog already are in the United States on temporary visas. According to immigration attorneys, workers and policy experts, the wait can be devastating.

When workers in the backlog die, their families lose their spot in line and are subject to deportation; the same is true for children who turn 21.

In October, the widow of an aviation systems engineer whose family lost its spot on the waitlist when he was killed in a 2017 hate crime published a commentary in the Kansas City Star, comparing Durbin to the man who killed her husband. The attacker shouted “get out of my country,” as he shot and killed Srinivas Kuchibhotla, an Indian tech worker.

Durbin was achieving the same outcome by blocking the Fairness for High-Skilled Immigrants Act, she argued.

Legal analysts concluded that under the bill, nearly all of the green card recipients for the first several years would be Indians, given their number in the backlog. Rather than alleviating the problem, the bill would pass it on to people from other nations, they said.

“Do the math,” Ira J. Kurzban, a prominent immigration law scholar, wrote in an analysis he circulated to colleagues. He noted that in one of the employment-based categories – EB-2 – there are 40,040 green cards allocated a year, and “there are 550,000 nationals waiting for residency, of which 512,000 are Indian.”

A first-come, first-served distribution would mean that for years it would be only Indians – and some Chinese – getting employment-based green cards, analysts say. It would take 12 years just to hand out the green cards needed for the Indians in that one subsection of the backlog, and that doesn’t take into account the hundreds of thousands more who would be expected to join the list during that time.

An analysis by the Congressional Research Service in 2018, conducted before the bill was introduced, found that Indians would make up almost the entire backlog for a minimum of four to five years. An analysis by the Cato Institute calculated it would take eight years. Many prominent immigration attorneys have backed Kurzban’s analysis.

Kurzban calculated that the backlog would grow from more than 800,000 people today to 1.1 million in 2029.

Because most of the backlogged Indians work in the tech industry, the shift would mean that high-skilled workers in other areas “like health care and medical research . . . will be shut out of residency for well over a decade,” Kurzban wrote. “Potential new Americans in basic science, engineering, chemistry, physics, artificial intelligence, climate change and many other fields who are not Indian nationals will be discouraged from ever coming to the U.S.”

Adding to the complexity, most of the backlogged Indians are on specialist H1-B visas, which are perpetually renewable for those waiting in the backlog – making it possible to wait – while other nationalities typically come on other types of visas that cannot be renewed if an immigrant intends to stay. A long wait thus becomes impossible.

“The wait will be so long that non-Indian workers won’t be able to get in line,” said Michelle Canero, another immigration attorney who ran her own analysis of the numbers. Canero also said that direct foreign investment, almost none of which comes from India, will suffer because foreign companies will not be able to move their top professionals into the United States to run their satellite offices.

“Every year, foreign direct investment adds about $300 billion to our economy,” Canero said. “About 85% is European and Canadian . . . If we now say that these foreign nationals who establish their operations here can no longer immigrate to oversee their investment, I think we’re going to see a deterrence.”

The projections have drawn an array of non-Indian immigrant groups, such as United We Dream, a coalition of recipients of the Deferred Action for Childhood Arrivals program, and the National Iranian American Council, to back Durbin’s proposal. The American Immigration Lawyers Association (AILA) has joined them, and Rep. Donna Shalala, D-Fla., introduced a companion bill in the House.

Despite the backlog, a provision that unused green cards roll over to those in line means that Indians actually have collected about 20 percent of the employment-based green cards during the past decade – well above the quota, and at least double the amount any other nationality received.

Indians who are collecting their green cards today have been waiting at least 10 years. Chinese have been waiting four. Other nationalities wait less than two years.

Immigration Voice and Compete America, a coalition of mostly tech companies that includes Amazon, Microsoft, Facebook and Google, say the extended wait times expected under the Fairness for High-Skilled Immigrants Act are irrelevant. (Amazon founder Jeff Bezos owns The Washington Post.)

“The employment-based green card system was developed to help employers find workers,” said Scott Corley, Compete America’s executive director. “At no point was it discussed that, ‘Hey, listen guys, this really needs to be about diversity.’ ” Diversity, he said, can be found in family-based immigration.

The top priority should be removing the country quotas that are “fundamentally bigoted” – because they automatically “discriminate” against people with Indian citizenship, rather than judging them for their skill set – he said. “Nobody who actually works in Washington believes we’re going to solve the green card issue any time soon.”

Anand Vemuri, 46, an IT professional in New Jersey, is losing hope. His sons, now 16 and 13, came to the United States as toddlers. The family has been in the backlog for seven years, and he said he thinks he won’t get through by the time his older son ages out of eligibility.

Vemuri’s success in the United States has no impact on his chances of obtaining a green card. He owns a townhouse, serves as the vice president of technology at Barclays and has watched his children excel in school.

“But I’m getting a feeling that I’m hitting a roadblock,” he said. “I don’t see any hope here.”

Disney bets on nostalgia to pull ‘Star Wars’ saga out of decline

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Disney bets on nostalgia to pull ‘Star Wars’ saga out of decline

Dec 18. 2019
Audiencegoers watch a 3D movie at the Tennessee Aquarium IMAX theater in Chattanooga, Tenn., in 2017. MUST CREDIT: Bloomberg photo by Luke Sharrett

Audiencegoers watch a 3D movie at the Tennessee Aquarium IMAX theater in Chattanooga, Tenn., in 2017. MUST CREDIT: Bloomberg photo by Luke Sharrett
By Syndication Washington Post,  Bloomberg · Christopher Palmeri

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After stumbling at the box office and irking many fans, Walt Disney Co. is betting that it can win them back with the latest chapter of the “Star Wars” series.

Like an aging rock band promoting its last tour, marketing for “Star Wars: The Rise of Skywalker” plucks the nostalgia strings and plays up the fact that there won’t be another film for years.

“The story of a generation comes to an end,” reads the scroll across one TV commercial for “Star Wars: The Rise of Skywalker,” which opens in theaters Friday. Disney press releases pitch the film as the “riveting conclusion of the seminal Skywalker saga.” And in a scene that’s set the internet aflutter with predictions of his demise, the beloved protocol droid C-3PO says ominously, “Taking one last look, sir, at my friends.”

While any Hollywood executive would gladly crawl across the frozen tundra of Hoth to snag a property like “Star Wars,” Disney has faced challenges since buying the franchise from creator George Lucas for $4 billion in 2012. After rebooting the series with the smash hit “The Force Awakens” in 2015, the studio has struggled to match that success and please die-hard fans who have been unhappy with the storylines.

Last year’s “Solo: A Star Wars Story,” generated a franchise-worst $393 million in theaters worldwide. Disney Chief Executive Officer Bob Iger told Bloomberg News earlier this year that the “Star Wars” movies were going on “hiatus.” After “The Rise of Skywalker,” Disney won’t release another for three years.

No one is predicting the new movie will disappoint financially. The research site Box Office Pro estimates the film will take in $185 million to $225 million in its opening weekend in North America. The Hollywood Stock Exchange puts that number at $230 million, enough to rank among the top five debuts of all time.

Disney, privately, said it will be happy with anything approaching sales of the previous film in the current trilogy. “The Last Jedi” took in $220 million in its opening weekend two years ago and went on to gross $1.33 billion worldwide.

Disney’s “Star Wars” problem has been twofold.

One, it just hasn’t won over younger fans like the original 1977 film did. Dan Zehr, a high school literature teacher in Washington, Illinois, who hosts the podcast “Coffee with Kenobi,” said only about half of his seniors have seen a “Star Wars” film. Some are intimidated by the number of movies in the series and its complex mythology. Many just grew up watching Disney superheroes in theaters.

“Marvel is king,” Zehr said.

In the first week “The Force Awakens” was in the theaters, about 31% of ticket buyers were between ages 18 and 24, according data collected by Comscore Inc. When “The Last Jedi” came out two years later, that share had fallen to 26%, suggesting the series is losing a key demographic.

The other problem is that some older fans were turned off by the one-per-year schedule of “Star Wars” films under Disney and by the plots of some recent films, including “The Last Jedi,” which saw Luke Skywalker renounce his own legacy, among other twists.

Under Lucasfilm President Kathleen Kennedy, Disney has shuffled “Star Wars” writers and directors. “Jurassic World” director Colin Trevorrow was originally scheduled to make the new film but was replaced two years ago by J.J. Abrams, who directed “The Force Awakens.” His job was to advance the story that director Rian Johnson told in “The Last Jedi” and bring the Skywalker tale to a satisfactory close.

“I just think we had a great working relationship with J.J. on this to really arrive at something that we all felt was emotionally meaningful and satisfying,” Kennedy told the science-fiction blog io9 earlier this month.

Some of the nostalgia for “The Rise of Skywalker” is inevitable. It is the last film in a trilogy that began with “The Force Awakens.” Carrie Fisher, who has played Princess Leia since the first movie in 1977, died after filming “The Last Jedi.” Abrams used scenes cut from his earlier film to produce a fresh and presumably final performance by her in the new one.

“There was no way we were going to do a digital Leia,” Abrams said this month at a press event. “There was no way we would, of course, ever recast it. But we couldn’t do it without her.”

While positioning “The Rise of Skywalker” as the last hurrah for the Skywalker clan isn’t likely to win over new fans, it will appeal to older ones, according to Robert Marich, author of “Marketing to Moviegoers.”

“If you’re not a ‘Star Wars’ fan, it’s not much of a hook, but America is full of ‘Star Wars’ fans,” he said.

Some see a model for the future of the franchise in “The Mandalorian,” a spinoff TV series on Disney’s new streaming service that’s generating social-media buzz and viewers with an entirely new cast. The company is promoting the movie to fans of that series, offering the latest episode two days early with an exclusive peek into the film.

“My kids watch it every Friday,” said Matt Endres, a 41-year-old banker from Belleville, Illinois.

In the meantime, Disney can count on “Star Wars” diehards like Nathan Cuthbertson to still come out to see “The Rise of Skywalker.”

The 53-year-old corrections officer from Burgaw, North Carolina, remembers riding home from the first movie, acting out fight scenes in the back seat of the family sedan. Cuthbertson wants some major questions answered in the new film, such as what happens to Leia and who exactly are the parents of Rey, the heroine of the current trilogy.

He plans on seeing the film in a preview Thursday night and is taking Friday off work so he can meet with fans and pose for photos in his hand-built Stormtrooper outfit.

“This is a chance for them to put a nice ribbon on the Skywalker saga,” he said.