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Trump to meet parents of Japanese teenager seized by North Korea

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US president to speak to family of Megumi Yokota, taken in 1977 aged 13, in bid to press North to resolve cold war abductions
Donald Trump will meet the parents of a teenager snatched from her home by North Korean spies 40 years ago when he visits Tokyo next month, as Japan attempts to maintain pressure on Pyongyang to resolve the cold war abductions of dozens of its citizens.
The Japanese prime minister, Shinzo Abe, said he was arranging for the president to meet Shigeru and Sakie Yokota, whose daughter, Megumi, was abducted from her hometown of Niigata on the Sea of Japan coast in November 1977, when she was 13 years old.
She was on her way home from after-school badminton practice when she was seized by spies, bundled aboard a boat and taken to North Korea .
Abe said he had mentioned a possible meeting with the Yokotas and the families of other abductees when he met Trump in New York last month.
“When I asked… he accepted on the spot,” Abe said this week. “He promised he would do his best to rescue the Japanese abduction victims.”
Trump mentioned Megumi during his speech to the UN general assembly. “We know it kidnapped a sweet 13-year-old Japanese girl from a beach in her own country to enslave her as a language tutor for North Korea’s spies,” he said.
Megumi’s mother welcomed the reference to her daughter. “I was really surprised, but it was great, and I’m thankful to (Trump) for bringing up the issue and putting it into words in front of representatives from around the world,” she said, according to Kyodo news agency. “Every word on the issue is a chance.”
The couple, who are both in their 80s, met Barack Obama when he visited Japan in 2014 and Sakie Yokota met George W Bush during a visit to the US in 2006.
Megumi is one of 17 Japanese officially listed as having been abducted by North Korea during the 1970s and 80s, when they were used to teach Japanese language and culture to Pyongyang agents. Campaigners believe the number of abductees could be as high as 100.
In 2002, after years of denials, the North Korean leader at the time, Kim Jong-il, admitted his country’s special forces had carried out the abductions. He made the admission during meeting in Pyongyang with the Japanese leader, Junichiro Koizumi, and agreed to allow five of the victims to return to Japan.
They were later joined by family members, including Charles Jenkins, an American soldier who deserted to the North in 1965 and married Hitomi Soga, a nurse who had been taken from Japan in 1978.
Of the 12 remaining missing Japanese, Megumi’s case resonates most with the public due to her young age and the violent nature of her abduction.
Her parents did not find out that she had been abducted until 1997, when a former North Korean spy who defected to South Korea talked at length about a Japanese girl who matched her description.
North Korea claimed she had committed suicide in 1994 while being treated in hospital for depression, that another seven abductees had died of illness or in bizarre accidents, and that four others had never entered the country.
When North Korea sent what it claimed were Megumi’s remains to Japan for analysis in 2004, tests showed they contained someone else’s DNA.
Japanese media reports said the Trump administration would consider the abductions when deciding whether to relist North Korea as a state sponsor of terrorism in response to the assassination of Kim Jong-nam, the half-brother of the country’s leader, Kim Jong-un, in February.
Bush removed North Korea from the terror blacklist in 2008 in an attempt to salvage a nuclear disarmament deal.
It is not clear how Trump and Abe propose to approach the abductee issue. Both support tough economic sanctions against the regime, while Trump has not ruled out a military response to a major provocation. Neither leader is willing to enter into negotiations as long as Pyongyang continues to test nuclear weapons and ballistic missiles.
The prospects for a resolution practically vanished after North Korea pulled out of a 2014 agreement to investigate the abductions in protest at Japanese support for UN sanctions.
Trump will fly to Japan early next month on his first tour of Asia, which will include visits to South Korea, China, Vietnam and the Philippines.

© Source: https://www.theguardian.com/world/2017/oct/13/trump-meet-parents-japanese-teenager-seized-north-korea-abductions-megumi-yokota
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Hong Kong leader can't rule out barring even former governor Patten as China flexes muscles

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HONG KONG: Hong Kong’s leader denied on Friday that China had taken over immigration controls in the city after a British activist was refused entry, but she couldn’t rule out barring even the last colonial governor and frequent China critic, Chris Patten. Chief Executive…
HONG KONG: Hong Kong’s leader denied on Friday that China had taken over immigration controls in the city after a British activist was refused entry, but she couldn’t rule out barring even the last colonial governor and frequent China critic, Chris Patten.
Chief Executive Carrie Lam defended Hong Kong’s autonomy amid deepening questions over the Chinese-ruled financial hub’s reputation as a free and international city, after a Conservative Party rights activist, Benedict Rogers, was barred from entering on Wednesday.
When asked on a radio talk show whether Patten, who has criticised perceived Chinese interference in Hong Kong affairs, would be the next to be barred, Lam stopped short of ruling it out.
« I can’t exclude any possibilities because immigration matters will change depending on the case, » she told public broadcaster RTHK.
Patten, who spoke extensively during a recent Hong Kong visit and was critical of the jailing of several democracy activists, has angered some in the pro-Beijing establishment.
Britain handed Hong Kong back to Chinese rule in 1997 amid promises that its widespread freedoms and autonomy would be respected under a « one country, two systems » formula.
But China’s Foreign Ministry said it had the right to allow or refuse any persons wanting to enter Hong Kong, in response to Rogers’ case, as this was a matter of state sovereignty.
The promise of autonomy is enshrined in the mini-constitution, known as the Basic Law, that creates a separate Hong Kong legal and policing regime, including immigration controls. But China has sovereign control over defence and foreign affairs – which critics fear Beijing is exploiting to erode the city’s freedoms.
« I want to clarify any worries … that this whole matter of immigration is now being taken over by the Central People’s Government. That’s certainly, definitely not the case, » Lam said.
« The case has to be regarded and treated and fall under what constitutes a foreign affairs matter. »
Patten did not immediately respond to a Reuters request for comment.
China lodged a diplomatic complaint with London after British Foreign Secretary Boris Johnson demanded an urgent explanation from Hong Kong and China for Rogers’ expulsion.
The case has also sparked outcry from the city’s pro-democracy activists, including former number two official Anson Chan, who said Beijing was using the case to send a message.
Local English newspaper The Standard wrote in an editorial on Friday that « if the situation is allowed to evolve into such a state that whoever disliked is barred, it could be the moment we begin to lose our international appeal ». The U. S. Consulate in Hong Kong also expressed concern.
« We urge China to respect Hong Kong’s high degree of autonomy consistent with the principle of ‘one country, two systems’, » U. S. consulate spokeswoman Kristin Haworth told Reuters.
The Chinese Embassy in London, in an email reply to Reuters late on Thursday, did not respond directly to Rogers’ allegation that it had warned him through a middleman that he could be refused entry to Hong Kong.
« It is a matter of Chinese sovereignty whether or not to allow entry of any foreigners, » it said, echoing the foreign ministry. 
(Additional reporting by Greg Torode; Editing by Greg Torode and Nick Macfie)

© Source: http://www.channelnewsasia.com/news/asiapacific/hong-kong-leader-can-t-rule-out-barring-even-former-governor-patten-as-china-flexes-muscles-9308584
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Samsung „in beispielloser Krise“

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Die Geschäfte beim südkoreanischen Technologieriesen Samsung laufen gut – besonders bei Speicherchips. Einer der drei Co-Chefs spricht dennoch von einer „beispiellosen Krise“ und tritt ab. Die
Die Geschäfte beim südkoreanischen Technologieriesen Samsung laufen gut – besonders bei Speicherchips. Einer der drei Co-Chefs spricht dennoch von einer „beispiellosen Krise“ und tritt ab.
Die IT-Industrie wandle sich so schnell, dass es Zeit sei für einen Neustart mit „neuem Geist und einer jungen Führung“, sagte der Leiter des Halbleitergeschäfts, Kwon Oh Hyun (64). Er ist einer von drei Geschäftsführern beim führenden südkoreanischen Elektronikhersteller, dessen Mutterkonzern zuletzt in einen Korruptionsskandal um die frühere Staatspräsidentin Park Geun Hye verstrickt war.
Ungeachtet der Krisenstimmung rechnet Samsung Electronics für das dritte Quartal 2017 erneut mit einem operativen Ergebnis auf Rekordniveau.
Der Gewinn aus den Kerngeschäften werde im Jahresvergleich um nahezu das Dreifache auf etwa 14,5 Billionen Won (10,8 Milliarden Euro) steigen, hieß es in dem Ergebnisausblick.
Als Grund für die guten Aussichten gilt vor allem die boomenden Nachfrage nach Speicherchips. Samsung ist bei diesen Produkten ebenso marktführend wie bei Smartphones und Fernsehern.
Beim Umsatz erwartet das Unternehmen für den Zeitraum zwischen Juli und September einen Anstieg um 30 Prozent auf 62 Billionen Won.
Wie üblich werden genaue Geschäftszahlen erst zu einem späteren Zeitpunkt vorgelegt. Neben robusten Verkaufszahlen profitieren die Chiphersteller auch von den steigenden Preisen.
Bei Smartphones setzt Samsung nach dem Debakel mit brennenden Akkus bei seinem Vorzeige-Smartphone Galaxy Note 7 im vergangenen Herbst auf das Nachfolgemodell Note 8 und sein anderes Flaggschiff-Smartphone Galaxy S8, die in diesem Jahr eingeführt wurden.
Man sehe sich innerhalb und außerhalb des Unternehmens einer Krise von bisher nicht dagewesenem Ausmaß gegenüber, schrieb Kwon in einem Brief an die Belegschaft. Es sei ihm nicht leicht gefallen, seinen Abschied in den Ruhestand zu beschließen.
Der Rückzug soll im März 2018 erfolgen, wenn seine Zeit als Mitglied des Aufsichtsrats und Vorsitzender des Verwaltungsrats ablaufe. Auch als CEO von Samsung Display will Kwon zurücktreten. Bei Samsung gibt es eine aus europäischer Sicht verwirrende Vielfalt von Titeln.
Neben Kwon ist auch der inhaftierte Erbe des Samsung-Imperiums, Lee Jae Yong, Vizevorsitzender der Elektroniktochter.
Lee wurde im August wegen versuchter Präsidenten-Bestechung und anderer Vergehen in erster Instanz zu fünf Jahren Haft verurteilt. Derzeit läuft sein Berufungsprozess. Das Verfahren steht im Zusammenhang mit dem Skandal um Ex-Präsidentin Park und eine ihrer Vertrauten. Park wurde im März von ihren Amtspflichten enthoben.
Die Ermittler beschuldigten Samsung, hohe Summen an Unternehmen und Stiftungen der umstrittenen Park-Freundin Choi Soon Sil und ihrer Verwandten gezahlt und ihm Gegenzug politische Unterstützung für die Fusion zweier Konzerntöchter erhalten zu haben, um die Stellung der Gründerfamilie zu stärken.
Lee bestritt die Bestechungsvorwürfe.

© Source: http://www.bild.de/geld/wirtschaft/samsung-group/chef-kuendigt-ruecktritt-an-53518352.bild.html
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South Korea, China extend currency deal despite missile row

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South Korea and China have agreed to extend their currency swap deal, Seoul said Friday, easing concerns the deal would fall through due to tensions over a U. S. missile defense system.
SEOUL, South Korea — South Korea and China have agreed to extend their currency swap deal, Seoul said Friday, easing concerns the deal would fall through due to tensions over a U. S. missile defense system.
The two Asian countries renewed the deal worth 64 trillion won or 360 billion yuan ($57 billion) for another three years, Bank of Korea, South Korea’s central bank, and its finance ministry said.
The announcement was first shared by the Bank of Korea governor and the country’s finance minister with South Korean reporters in Washington, D. C., where they were attending a meeting of Group of 20 finance ministers and central bankers.
The move keeps the two countries’ already soured relationship from further deteriorating. South Korean companies’ businesses have suffered in China amid friction over South Korea’s deployment of a U. S. anti-missile system known as THAAD. Hyundai Motor Co. was one of the biggest victims of China’s ire toward the U. S. missile defense system. The South Korean carmaker saw its sales in China plunge during the first half of this year to nearly half of last year’s sales.
Currency swap deals allow countries to borrow money from other countries in their own currency, useful especially at a time of financial turmoil.
Bank of Korea said the deal extension will help stabilize financial markets and boost trade between the countries.
South Korea’s foreign ministry welcomed the agreement, which will be a “stepping stone toward further cooperation between the two countries in other fields,” its spokesman, Noh Kyu-duk, said at a media briefing.
Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

© Source: https://www.washingtonpost.com/world/asia_pacific/south-korea-china-extend-currency-deal-despite-missile-row/2017/10/13/c9ef97fa-b01a-11e7-9b93-b97043e57a22_story.html
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Пожежі в Каліфорнії: кількість жертв зросла до 31

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Унаслідок лісових пожеж у Північній Каліфорнії загинула щонайменше 31 людина, близько 900 вважаються зниклими безвісти.
Унаслідок лісових пожеж у Північній Каліфорнії загинула щонайменше 31 людина, близько 900 вважаються зниклими безвісти.
Про це в п’ятницю, 13 жовтня, повідомляє Reuters з посиланням на дані місцевої поліції.
За даними чиновників, деякі люди згоріли, коли спали, і не помітили, як почав горіти їхній будинок, а у деяких залишалися лічені хвилини, щоб залишити будівлю.
Також повідомляється, що через сильний вітер з ладу вийшли стільникові вишки, тому місцева влада не могла оперативно попередити людей про небезпеку.
Зазначається, що 31 особа – найбільша кількість жертв пожеж у Каліфорнії в новітній історії. До цього найбільш смертоносною пожежею в Каліфорнії вважалася пожежа в парку Гріффіт у Лос-Анджелесі в 1933 році, коли загинули 29 людей.
Нагадаємо, раніше повідомлялося про 29 загиблих унаслідок природних пожеж у Каліфорнії.

© Source: http://ua.korrespondent.net/world/3895912-pozhezhi-v-kalifornii-kilkist-zhertv-zrosla-do-31
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Celebrities Join Twitter Boycott in Solidarity with Rose McGowan

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Many users of the social media platform said they would remain silent on Friday to protest the treatment of the actress, a vocal critic of Harvey Weinstein’s conduct.
Activists, celebrities and journalists were among those boycotting Twitter on Friday, after the social media platform suspended the account of the actress Rose McGowan, a vocal critic of Harvey Weinstein’s conduct.
The boycott started at midnight Thursday in New York and was set to last all day. Many signified they were taking part in the action with the hashtag #WomenBoycottTwitter.
The idea was raised by Kelly Ellis, a software engineer, who tweeted that, in response to Ms. McGowan’s suspension, people should consider boycotting the platform.
“ #WomenBoycottTwitter Friday, October 13th,” she wrote. “In solidarity w @rosemcgowan and all the victims of hate and harassment Twitter fails to support.”
Ms. McGowan announced on Wednesday that her Twitter account had been locked over violations of the platform’s terms of service. Twitter initially did not explain its decision, but it later said it had temporarily suspended the account because one of Ms. McGowan’s tweets had included a personal phone number, in violation of its rules.
Twitter clarified that the offending tweet had been removed, and that Ms. McGowan’s account had been unlocked. The company’s actions, however, continued to draw scrutiny, and critics said they highlighted a wider issue of curbing abuse online, especially toward women.
Alyssa Milano, Ms. McGowan’s co-star in the TV series “Charmed,” is among those snubbing the platform. The model Chrissy Teigen, and the actors Anna Paquin, Mark Ruffalo and John Cusack also said they would take part.
When asked to comment on Friday, a spokesperson from Twitter pointed to the company’s statement about why it locked Ms. McGowan’s account.
Ms. McGowan, who reached a $100,000 settlement with Mr. Weinstein after an incident in a hotel room the Sundance Film Festival in 1997, has been vocal in her support of other women who have come forward with allegations the producer sexually assaulted them.
On Tuesday, in response to the actor Ben Affleck condemning accusations against Mr. Weinstein, Ms. McGowan called him a liar and claimed he had known of the producer’s actions. She also called out other Hollywood players for their silence on the matter, tweeting “You all knew.”

© Source: https://www.nytimes.com/2017/10/13/technology/twitter-boycott-rose-mcgowan.html?partner=rss&emc=rss
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All of next year’s iPhones could have Face ID

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A new report suggests Apple could be done with Touch ID and betting big on Face ID.
Face ID (Apple’s advanced facial recognition system) is debuting this year on the iPhone X, and is exclusive to that top-end handset, but next year it could be a feature of every new iPhone. iPhone X
According to well-known analyst Ming-Chi Kuo of KGI Securities, Apple will abandon its Touch ID fingerprint scanner completely, in favor of the Face ID system, allowing Apple to capitalize on the lead it has with the technology.
This shift would also allow for all 2018 iPhone models to sport an iPhone X-like design, with a screen-filled front, suggesting there may not be another premium model that stands out above the other iPhones. iPhone
It’s been rumored in the past that Apple is working on a fingerprint scanner that could be built into the screen, but it sounds as though Kuo doesn’t believe this work will continue. rumored
Apple’s push for Face ID could also impact Android phone development, with Kuo suggesting that Android device makers will also look to move on from fingerprint scanners . look to move on from fingerprint scanners
And as for the iPad? In an earlier note Kuo also said that 2018’s iPad Pro models will get Face ID. So if he’s right it sounds like fans of fingerprint scanners soon won’t have much choice but to adapt. will get Face ID
However, Samsung is thought to be working on an in-screen fingerprint scanner, possibly set to debut on the Galaxy Note 9, so if that works and catches on then there could be hope for that method of unlocking your phone yet. Galaxy Note 9 The iPhone 9 could also have a big battery The iPhone 9 could also have a big battery
Via Apple Insider Apple Insider

© Source: http://feedproxy.google.com/~r/techradar/allnews/~3/umu4SaUqjnE/all-of-next-years-iphones-could-have-face-id
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Bayer verkauft Pflanzenschutz mit 1800 Beschäftigten an BASF

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Der Pharma- und Chemiekonzern Bayer wird große Teile seines Geschäfts mit Saatgut und Unkrautvernichtungsmitteln an BASF abgeben. Der Rivale soll dafür 5,9 Milliarden Euro zahlen. Damit trennt sich Bayer in Deutschland von rund 300 Mitarbeitern.
Bayer schafft weitere Hindernisse für die Übernahme von Monsanto aus dem Weg. Die Leverkusener verkaufen Pflanzenschutzgeschäfte für stolze 5,9 Milliarden Euro an den Branchenprimus BASF. Konkret geht es um das weltweite Glufosinat-Ammonium-Geschäft (inklusive des Pflanzenschutzmittels Liberty Link), das weltweite Geschäft mit Baumwollsaatgut, das Rapsgeschäft in Nordamerika und Europa sowie das Geschäft mit Sojasaatgut.
Damit trennt sich Bayer von 1800 Mitarbeitern, 300 davon in Deutschland, wie der Konzern mitteilte. Hier sind vor allem die Standorte Frankfurt und Hürth/Knappsack betroffen, auch einige Mitarbeiter aus Monheim werden « mitverkauft ». Daneben geht es um Mitarbeiter in den USA, Brasilien, Kanada und Belgien.
Die Arbeitnehmer erhalten allerdings einige Zusagen: BASF verpflichtet sich, die bestehenden (unbefristeten) Arbeitsverhältnisse zu vergleichbaren Konditionen für mindestens drei Jahre nach Abschluss der Transaktion fortzuführen, erklärte Bayer. « Wir sind froh, dass wir mit BASF einen starken Käufer gefunden haben, der die Bedürfnisse der Landwirte bedient und unseren Mitarbeitern langfristige Zukunftsperspektiven bietet », sagte Konzern-Chef Werner Baumann.
Auch aus Sicht der Arbeitnehmervertreter hätte es schlimmer kommen können: « Ich bin sehr froh, dass Bayer mit BASF einen Käufer gewählt hat, der ebenso wie unser Unternehmen großen Wert auf Sozialpartnerschaft legt und bei dem die Beschäftigten einen hohen Stellenwert haben », sagte Oliver Zühlke, Chef des Bayer-Gesamtbetriebsrats. « Wir freuen uns, diese innovativen Geschäftsfelder weiterzuentwickeln und darauf, das erfahrene Team bei BASF willkommen zu heißen », erklärte BASF-Chef Kurt Bock.
Mit dem Verkauf will Bayer den Bedenken der Kartellwächter entgegentreten. In Südafrika etwa hatten die Behörden den Verkauf von Liberty Link bereits gefordert. Die EU prüft seit Monaten vertieft, ob der 59-Milliarden-Euro-Deal den Wettbewerb gefährdet. Zugleich spült der Verkauf an BASF den Leverkusenern Milliarden in die Kasse. Geld, das sie gut gebrauchen können, um die teuerste Übernahme der deutschen Wirtschaftsgeschichte zu finanzieren. An der Börse kam das entsprechend gut an, die Bayer-Aktie legte um über 1,5 Prozent zu. Die BASF-Aktie verlor leicht.
Im Herbst 2016 hatten sich Bayer und Monsanto darauf geeinigt, dass Bayer Beteiligungen mit einem Umsatz von bis zu 1,6 Milliarden Dollar (bezogen auf das Jahr 2015) abgibt. Die Verkäufe an BASF entsprechen nun einem Umsatz von 1,4 Milliarden Euro. Damit hat Bayer jetzt einen großen Teil des selbst gesetzten Spielraums genutzt. Sollte Bayer durch Kartellauflagen gezwungen sein, am Ende erheblich mehr Beteiligungen verkaufen zu müssen, könnte der Konzern vom Kaufvertrag für Monsanto wieder zurücktreten. Dann müsste er aber eine Milliarden-schwere Ausfallgebühr zahlen. « Bayer arbeitet weiterhin intensiv mit den zuständigen Behörden zusammen mit dem Ziel, die geplante Monsanto-Übernahme bis Anfang 2018 abschließen zu können », betonte Bayer.
Bayer hatte am 14. September 2016 die Übernahme des umstrittenen amerikanischen Gentechnik-Konzerns für 59 Milliarden Euro beschlossen. Die Verhandlungen mit den Kartellbehörden gestalten sich zäh, mehrfach hat Bayer selbst gesteckte Zeitziele unterlaufen. Nun soll der Deal Anfang 2018 über die Bühne gehen. Als größte Hürde gilt weiterhin die EU-Kommission.

© Source: http://www.rp-online.de/wirtschaft/unternehmen/bayer-verkauft-pflanzenschutz-mit-1800-beschaeftigten-an-basf-aid-1.7141034
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Tesla is recalling 11,000 Model X SUVs over seat safety worries

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A problem with seat cabling means you need to get your Model X SUV looked at by a Tesla technician.
Around 11,000 Tesla Model X SUVs are being recalled by the electric car maker after it found that a badly fitted cable, connected to the driver’s side rear seat, means the seat might not lock in place, and could be pulled forward in the event of a crash.
Any affected vehicles would have been made between October 28 2016 and August 16 2017, though Tesla reckons only about 3% of the thousands of cars being recalled will have the issue. Better safe than sorry though, of course.
Fortunately the fix isn’t too difficult, and you can even have a Tesla technician visit you at your home if you prefer – it takes about 10 minutes to correct the fault, and then you can drive away safe in the knowledge that all your car seats are going to stay in place.
« Although Tesla has not received reports of any issues or accidents relating to this condition, we will be conducting a voluntary recall to inspect the affected vehicles and confirm whether any adjustment is needed, » the company told CNBC .
The recall affects Tesla Model X vehicles across the globe, and if your car is on the list then you should have already been notified by the firm – if not you might need to check your spam folder and missed calls list, just to be sure.
With no reported incidents, a relatively low number of cars involved, and a quick fix, the recall shouldn’t be too damaging for Tesla, but it’s not the first time it’s had to recall vehicles – the company recalled 2,700 Model Xs last year and then another 53,000 cars in April .

© Source: http://www.techradar.com/news/tesla-is-recalling-11000-model-x-suvs-over-seat-safety-worries?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+techradar%2Fallnews+%28TechRadar%3A+Tech+News+and+Reviews%29
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Trump to issue stop-payment order on health care subsidies

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In a brash move likely to roil insurance markets, President Donald Trump will « immediately » halt payments to insurers under the Obama-era health care law he has been trying to unravel for months.
WASHINGTON (AP) – In a brash move likely to roil insurance markets, President Donald Trump will « immediately » halt payments to insurers under the Obama-era health care law he has been trying to unravel for months.
The Department of Health and Human Services made the announcement in a statement late Thursday. « We will discontinue these payments immediately, » said acting HHS Secretary Eric Hargan and Medicare administrator Seema Verma.
In a separate statement, the White House said the government cannot legally continue to pay the so-called cost-sharing subsidies because they lack a formal authorization by Congress.
However, the administration had been making the payments from month to month, even as Trump threated to cut them off to force Democrats to negotiate over health care. The subsidies help lower copays and deductibles for people with modest incomes.
Halting the payments would trigger a spike in premiums for next year, unless Trump reverses course or Congress authorizes the money. The next payments are due around Oct. 20.
The top two Democrats in Congress sharply denounced the Trump plan in a joint statement.
« It is a spiteful act of vast, pointless sabotage leveled at working families and the middle class in every corner of America, » said House and Senate Democratic leaders Nancy Pelosi of California and Chuck Schumer of New York. « Make no mistake about it, Trump will try to blame the Affordable Care Act, but this will fall on his back and he will pay the price for it. »
The president’s action is likely to trigger a lawsuit from state attorneys general, who contend the subsidies to insurers are fully authorized by federal law, and say the president’s position is reckless.
« We are prepared to sue, » said California Attorney General Xavier Becerra. « We’ve taken the Trump Administration to court before and won. »
Word of Trump’s plan came on a day when the president had also signed an executive order directing government agencies to design insurance plans that would offer lower premiums outside the requirements of President Barack Obama’s Affordable Care Act.
Frustrated over setbacks in Congress, Trump is wielding his executive powers to bring the « repeal and replace » debate to a head. He appears to be following through on his vow to punish Democrats and insurers after the failure of GOP health care legislation.
On Twitter, Trump has termed the payments to insurers a « bailout, » but it’s unclear if the president will get Democrats to negotiate by stopping payment.
Experts have warned that cutting off the money would lead to a double-digit spike in premiums, on top of increases insurers already planned for next year. That would deliver another blow to markets around the country already fragile from insurers exiting and costs rising. Insurers, hospitals, doctors’ groups, state officials and the U. S. Chamber of Commerce have urged the administration to keep paying.
Leading GOP lawmakers have also called for continuing the payments to insurers, at least temporarily, so constituents maintain access to health insurance. Senate Health, Education, Labor and Pensions Committee Chairman Lamar Alexander, R-Tenn., is working on such legislation with Democratic Sen. Patty Murray of Washington.
The so-called « cost-sharing » subsidies defray copays and deductibles for people with low-to-modest incomes, and can reduce a deductible of $3,500 to a few hundred dollars. Assistance is available to consumers buying individual policies; people with employer coverage are unaffected by the dispute.
Nearly 3 in 5 HealthCare.gov customers qualify for help, an estimated 6 million people or more. The annual cost to the government is currently about $7 billion.
But the subsidies have been under a legal cloud because of a dispute over whether the Obama health care law properly approved them. Adding to the confusion, other parts of the Affordable Care Act clearly direct the government to reimburse the carriers.
For example, the ACA requires insurers to help low-income consumers with their copays and deductibles.
And the law also specifies that the government shall reimburse insurers for the cost-sharing assistance that they provide.
But there’s disagreement over whether the law properly provided a congressional « appropriation, » similar to an instruction to pay. The Constitution says the government shall not spend money unless Congress appropriates it.
House Republicans trying to thwart the ACA sued the Obama administration in federal court in Washington, arguing that the law lacked specific language appropriating the cost-sharing subsidies.
A district court judge agreed with House Republicans, and the case has been on hold before the U. S. appeals court in Washington. Up to this point the Trump administration continued making the monthly payments, as the Obama administration had done.
While the legal issue seems arcane, the impact on consumers would be real.
The Congressional Budget Office estimated that premiums for a standard « silver » plan will increase by about 20 percent without the subsidies. Insurers can recover the cost-sharing money by raising premiums, since those are also subsidized by the ACA, and there’s no legal question about their appropriation.
Consumers who receive tax credits under the ACA to pay their premiums would be shielded from those premium increases.
But millions of others buy individual health care policies without any financial assistance from the government and could face prohibitive increases. Taxpayers would end up spending more to subsidize premiums.
Earlier Thursday, Trump had directed government agencies to design a legal framework for groups of employers to band together and offer health insurance plans across state lines, a longstanding goal of the president.
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Associated Press Writers Ken Thomas and Catherine Lucey contributed to this report.
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