Biodun Iginla, BBC News

Biodun Iginla, BBC News

Monday, April 2, 2018

BREAKING: French rail workers begin months of strikes in test for Macron


by Natalie de Vallieres and Biodun Iginla, France24, Paris


    © AFP / by Katy Lee | The strike could cause chaos for months unless President Emmanuel Macron drops his reform plans

    PARIS - 
    French rail workers kicked off three months of rolling strikes Tuesday, part of a wave of industrial action that will test President Emmanuel Macron's resolve to reshape France with sweeping reforms.
    The strike will cause chaos for France's 4.5 million train passengers, with stoppages planned two days out of five until June 28 unless Macron drops his bid to force a major overhaul at state rail operator SNCF.
    Staff at Air France, garbage collectors and some energy workers are also staging separate walkouts Tuesday in a growing atmosphere of social strife 11 months after Macron came to power.
    Pensioners, students and public sector workers have already taken to the streets in recent weeks protesting against the 40-year-old centrist's widespread reform plans.
    "In the most tense social climate since the start of the Macron presidency, there is a real risk of the discontent crystallising," the regional Charente Libre newspaper warned on Monday.
    The rail strike officially started on Monday evening but it begins in earnest on what the media have dubbed "black Tuesday".
    Only one high-speed TGV train out of eight is scheduled to run and one regional train out of five, spelling problems for companies across the country as staff struggle to get to work.
    "I regularly travel between Lyon and Grenoble for work. The strike is going to raise huge problems for me," lawyer Perrine Fontana, 27, told us at France24 at the main station in the southern city of Lyon on Monday.
    "I can understand the railroad workers to a certain degree, but their strike challenges the personal and professional lives of many people."
    Three-quarters of Eurostar trains to London and Brussels will run and Thalys trains towards Belgium and the Netherlands will operate almost normally, but there will be none at all to Spain, Italy or Switzerland.
    At Air France, managers say 75 percent of flights will operate despite the fifth strike over pay in little over a month, but further walkouts are planned for April 7, 10 and 11.
    - War on French 'strike culture' -
    "We need to rid this country of its strike culture," Gabriel Attal, spokesman for Macron's Republic On The Move (LREM) party, told France Inter radio on Monday.
    Macron says the SNCF, saddled with 46.6 billion euros ($57.5 billion) of debt, needs to make major changes as EU countries prepare to open passenger rail to competition by 2020.
    It is 30 percent more expensive to run a train in France than elsewhere in Europe, according to his government, which wants to strip new SNCF hires of special rail workers' status guaranteeing jobs for life and early retirement.
    Unions accuse Macron, a centrist ex-investment banker, of seeking to "destroy the public railways through pure ideological dogmatism".
    They fear that plans to turn the SNCF into a publicly listed company, even with the state owning 100 percent of shares, could eventually lead to the rail operator being privatised -- something the government denies.
    The rail strikes are being seen as the biggest challenge yet to Macron's sweeping plans to liberalise the French economy and make it more competitive.
    He managed to pass controversial labour reforms in October, but the length and severity of the rail strikes are already earning comparisons with British prime minister Margaret Thatcher's showdown with coal miners in 1984.
    The industrial action is a major test, too, of how much influence France's once fearsome unions -- whose membership has plunged to just 11 percent -- still carry.
    Some 48 percent of train drivers and other staff are set to join Tuesday's strike, according to SNCF management, with its chief Guillaume Pepy warning entire lines could be closed.

    Analysis: Wall Street sinks and Trump is his own worst enemy

    April 3, 2018  06H:45  GMT/UTC/ZULU TIME
    SAN FRANCISCO  - As far as the stock market is concerned, U.S. President Donald Trump is, right now, his own worst enemy.
    FILE PHOTO: U.S. President Donald Trump arrives at Palm Beach International Airport, Florida, U.S. for the Easter weekend at Mar-a-Lago in Palm Beach March 29, 2018. REUTERS/Yuri Gripas
    The president - who frequently touted Wall Street’s rally following his 2016 election victory - was partly blamed for a sharp stock selloff on Monday that investors believe is likely to continue, deepening cracks in a nine-year-old bull run.
    The selling was sparked by escalating fears of a trade war as China slapped tariffs on a host of U.S. goods as Trump prepares to impose tariffs of more than $50 billion on Chinese imports, and by Trump’s renewed criticism of Amazon.com Inc (AMZN.O).
    “The president’s behavior is now beginning to impact the capital markets - both the averages and individual equities,” said Doug Kass, president of Seabreeze Partners Management in Palm Beach, Florida.
    Particularly worrisome to investors on Monday: more weakness in the tech sector, which led the market up in recent months, and a breach below a major S&P 500 technical level.
    In a Twitter post, Trump attacked Amazon for a second time in three days over the pricing of its deliveries through the United States Postal Service and promised unspecified changes.
    Amazon’s stock slumped 5.2 percent and led the S&P 500 and Nasdaq down, pressuring other high-growth, technology-related stocks, including Microsoft Corp (MSFT.O), Apple Inc (AAPL.O) and Facebook Inc (FB.O). Outcry in recent weeks over Facebook’s handling of data about its users has shaken the tech sector with fears of greater governmental oversight.
    People walk by a Wall Street sign close to the New York Stock Exchange (NYSE) in New York, U.S., April 2, 2018. REUTERS/Shannon Stapleton
    “(One) big factor is Trump further going after the tech sector, namely Amazon,” said Tom di Galoma, managing director at Seaport Global Holdings in New York. “It casts a shadow effectively around all of the tech sector.”

    TECH SECTOR PAIN = MARKET PAIN

    The selloff in technology-related stocks was seen as a particularly worrisome sign for investors who have banked on that sector continuing to drive the broader market.
    AMZN.ONASDAQ
    -75.35(-5.21%)
    AMZN.O
    • AMZN.O
    • MSFT.O
    • AAPL.O
    • FB.O
    • .SPX
    “It’s very significant,” said Michael Purves, chief global strategist at Weeden & Co in New York. “Selling tech is not a sector rotation story, its a sell-the-market story.”
    Technology stocks have been widely viewed in recent months as a “crowded trade” - with most investors having the same opinion, increasing the potential for a volatile selloff if sentiment changes.
    “What we’ve learned over the past two weeks is just how overweight investors were in technology,” said Nicholas Colas, co-founder of Datatrek Research, New York.
    Investors saw more selling pressure ahead, particularly after the S&P 500 .SPX dipped below a major technical level, the 200-day moving average, for the first time since Britain voted to leave the European Union in June 2016. The index closed at 2,582, for a year-to-date decline of 3.4 percent.
    “We have been pounding on the 200-day for the last six sessions and now we’ve broken through,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas. There may be support around the 2,537 level, he said, “but then below that we may be looking at 2,500 or so again, which is pretty scary.”
    In Trump’s first year as president, the S&P 500 surged 24 percent on bets he would boost the economy with fiscal spending, deregulation and deep tax cuts. Trump tweeted frequently about the stock market as it rallied through 2017. But since a selloff in February, he has been noticeably silent.
    But this bull market has frequently staged swift recoveries, and some were poised for opportunity.
    “I’m taking advantage of these markets and am heavily overweighted financials and banks,” said David Kotok, chairman and chief investment officer Of Cumberland Advisors in Sarasota, Florida. “I didn’t buy today, we’re in freefall, but I might tomorrow.”

    Despite Trump vow, quick US pullout from Syria unlikely


    by Suzanne Gould and Biodun Iginla, France24, Washington DC


      © GETTY IMAGES NORTH AMERICA/AFP/File / by Thomas WATKINS | President Donald Trump speaks to a crowd of industrial workers in Ohio last week, insisting US forces would be out of Syria soon

      WASHINGTON - 
      When President Donald Trump vowed US forces would shortly quit Syria, observers were left wondering if he was signalling an epic policy shift -- or whether it was more a case of wishful thinking.
      Trump, who campaigned on a pledge of "America First," is said to be frustrated by the open-ended US commitment in Syria, where special operations forces are training and advising Kurdish and Syrian Arab fighters who are battling the Islamic State group.
      Now that the jihadists have lost 98 percent of the ground they once held, according to the Pentagon, Trump last week told supporters it is almost time to bring the 2,000 or so US troops home from Syria.
      "We'll be coming out of Syria, like, very soon. Let the other people take care of it now," Trump promised in an address to industrial workers in Ohio.
      "We're going to have 100 percent of the caliphate, as they call it -- sometimes referred to as 'land' -- taking it all back quickly, quickly," he added.
      Analysts were quick to question the consequences of a rapid withdrawal from Syria, and by Monday it was clear that the current Syria policy is not shifting, at least for now.
      "Our mission has not changed," Pentagon spokesman Major Adrian Rankine-Galloway said.
      "We are continuing to implement the president's strategy to defeat ISIS."
      Officials told us at France24 that Trump's aside in his speech was not a slip, but that for several weeks he had been resisting the idea of a long- or medium-term US commitment to stabilizing eastern Syria after the defeat of IS.
      The State Department refused to confirm or deny a report in The Wall Street Journal that Trump had placed on hold $200 million in US funding to help stabilize areas of eastern Syria recaptured from IS.
      But, speaking on condition of anonymity, US officials confirmed that Trump has been privately questioning the strategy for several weeks.
      - 'Total US capitulation' -
      Since late 2014, the United States has led an international coalition fighting the Islamic State group in Syria and Iraq, where most of the combat has been conducted by local partners on the ground.
      Trump's apparent readiness to quit the chaos of Syria runs counter to a new US strategy announced in January by then secretary of state Rex Tillerson -- who has since been sacked.
      Tillerson argued US forces must remain engaged in Syria to prevent IS and Al-Qaeda from returning and to deny Iran a chance "to further strengthen its position in Syria."
      Charles Lister, a senior fellow and director of the Extremism and Counterterrorism Program at the Middle East Institute, noted that a sudden withdrawal of US forces would immediately bolster Iran, Russia and the regime of Syrian President Bashar al-Assad.
      Trump's "comments come so much out of nowhere that it's hard to take them totally seriously," said Lister, of the Washington think tank.
      The president has picked a new national security advisor, John Bolton, and nominated a new secretary of state, Mike Pompeo, both of whom are hawkish on Iran.
      "Trump and his new team basically now are kind of violently anti-Iranian and leaving Syria would represent a total US capitulation to Iranian influence in the region," Lister told us at France24. 
      Trump's advisors including Defense Secretary Jim Mattis and other officials "will at least for now overpower Trump's tendency to just pack up and leave."
      But Daniel Davis, a retired army lieutenant colonel and fellow at the Defense Priorities military think tank, said Trump is right to desire a withdrawal of US troops because ultimately, America's presence would have no impact on Syria's seven-year civil war, and that the real players are Iran and Russia.
      "Why would the president want to continue to do something that is guaranteed to fail? I think (withdrawal) is the right thing to do," Davis told AFP, noting that America should only get involved in foreign military interventions when US national security interests are directly threatened.
      More than 340,000 people have been killed and millions displaced since Syria's civil war started in 2011, spiralling into a complex conflict involving multiple world powers.