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G20 host calls for end to Ukraine war as Russia dismisses criticism

  • Russian foreign minister rejects ‘frenzied’ criticism of war
  • Lavrov leaves during Ukraine minister’s virtual address
  • Indonesia warns food prices to hit low-income nations hardest
  • UK foreign minister Liz Truss cuts short Bali trip

NUSA DUA, Indonesia, July 8 (Reuters) – G20 host Indonesia urged foreign ministers of the group on Friday to help end the war in Ukraine, as Russia’s top diplomat accused the West of scuppering a chance to tackle global economic issues with “frenzied” criticism of the conflict.

The G20 ministers’ meeting in Bali has been overshadowed by the war and its impact on the global economy, with top officials from Western countries and Japan stressing it would not be a “business as usual” event.

Shouts of “When will you stop the war” and “Why don’t you stop the war” were heard as Russian Foreign Minister Sergei Lavrov shook hands with his Indonesian counterpart Retno Marsudi as he arrived for the meeting.

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Lavrov said ministers from Western nations “strayed almost immediately, as soon as they took the floor, to the frenzied criticism of the Russian Federation in connection with the situation in Ukraine”.

“Aggressors’, ‘invaders’, ‘occupiers’ – we heard a lot of things today,” Lavrov told reporters after the first session of the talks, in which he was seated between representatives from Mexico and Saudi Arabia. read more

Russia has maintained it has launched a “special military operation” to degrade the Ukrainian military and root out people it calls dangerous nationalists.

Ukraine and its Western backers say Russia is engaged in an imperial-style land grab. They say Russia has no justification for the invasion.

Retno had called on the G20 to “find a way forward” to address global challenges and said the repercussions of the war, including rising energy and food prices, would hit low-income countries the hardest.

“It is our responsibility to end the war sooner than later and settle our differences at the negotiating table, not at the battlefield,” Retno said at the opening of talks.

Challenges related to rising food and energy costs had been “dramatically exacerbated by Russian aggression against Ukraine”, U.S. Secretary of State Antony Blinken said on the sidelines of the meeting.

During the plenary meeting, Blinken confronted Russia about blocking the export of Ukrainian grain and stealing it, a Western official said.

“He addressed Russia directly, saying: To our Russian colleagues: Ukraine is not your country. Its grain is not your grain. Why are you blocking the ports? You should let the grain out'”, the official said.

Lavrov was not in the room at the time, the official said.

Ukraine has struggled to export goods, with many of its ports blocked as war rages along its southern coast. It is the world’s fourth-largest grain exporter.

Lavrov told reporters later Russia was ready to negotiate with Ukraine and Turkey about grain but it is unclear when such talks might take place.

‘NEW COLD WAR’

Ukraine’s foreign minister addressed the meeting virtually, with Lavrov leaving the room during his speech, Ukraine’s ambassador to Indonesia said.

Underlining tensions in the lead-up to the meeting, Retno said G7 counterparts had informed her they could not join Thursday’s welcome dinner where Lavrov was present.

A senior official for the Indonesian foreign ministry told Reuters no communique was expected from Friday’s meeting.

Retno had said it was important the host “create an atmosphere that’s comfortable for everybody”, noting it was the first time since the Feb. 24 invasion of Ukraine that all major players were sitting in the same room.

China’s Foreign Minister Wang Yi said on the sidelines of the meeting Beijing opposed any act of hyping up bloc confrontation, and creating a “new Cold War”.

Friday’s agenda includes the closed-door meeting of top diplomats from G20 countries including China, India, the United States, Brazil, Canada, Japan and South Africa, as well as bilateral talks on the sidelines.

For the first time in three years, the Chinese and Australian foreign ministers will also hold talks on Friday, signalling a thaw in relations that has soured over claims of foreign interference and retaliatory trade sanctions. read more

Absent from Friday’s events was British Foreign Secretary Liz Truss, who was represented by Tim Barrow, second permanent under-secretary at the foreign office. Truss had cut her Bali trip short after the resignation of British Prime Minister Boris Johnson, media reports said.

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Additional reporting by Ryan Woo in Beijing, Kirsty Needham in Sydney and Yuddy Cahya Budiman in Nusa Dua; Writing by Kate Lamb; Editing by Martin Petty, Ed Davies and Raju Gopalakrishnan

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Airline SAS clashes with striking pilots over U.S. bankruptcy filing

  • Airline files for Chapter 11 in the United States
  • Filing comes after pilot strike began on Monday
  • Company says strike accelerated bankruptcy filing
  • Attempts to blame staff “beneath contempt” -union
  • Strike grounding roughly half of airline’s flights

STOCKHOLM, July 5 (Reuters) – Scandinavian airline SAS (SAS.ST) has filed for bankruptcy protection in the United States to help cut debt, it said on Tuesday, piling pressure on striking pilots it blames for deepening its financial woes and sending its shares down 10%.

Wage talks between SAS and its pilots collapsed on Monday, triggering a strike that adds to travel chaos across Europe as the peak summer travel season shifts into full gear.

Chief Executive Anko van der Werff said the strike had accelerated its decision to file for Chapter 11 status. But the negotiator for SAS’ Danish pilots said the scope of the filing showed it had been months in the making and called attempts to blame striking staff for triggering it “beneath contempt”.

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The airline, whose biggest owners are Swedish and Danish taxpayers, said that the strike would have “a negative impact on the liquidity and financial position of the company and, if prolonged, such impact could become material”.

The strike will cost it $10 million to $13 million per day, the company said in its court filing. Sydbank analysts estimated, in a worst-case scenario, it could erase up to half of its cash flow in the initial four to five weeks alone.

“The pilots may well consider themselves pieces in the puzzle that legalizes the management’s Chapter 11 request, and it’s doubtful whether it will bring them back to the negotiating table,” Sydbank analyst Jacob Pedersen said.

“On the other hand, the Chapter 11 request also shows how serious the situation is for SAS.”

Entering Chapter 11 would make it easier for the company to lay off employees, experts say.

Swedish Airline Pilots Association Chairman Martin Lindgren said his members had seen it as inevitable the airline would need to embark on a “reconstruction”.

“It does not affect the strike or our agreements,” he said.

The airline said the U.S. bankruptcy protection filing was aimed at accelerating a restructuring plan announced in February.

“SAS aims to reach agreements with key stakeholders, restructure the company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection,” it said.

TALKS WITH LENDERS

View of SAS Airbus A321 and A320neo aircraft at Kastrup Airport parked on the tarmac, after pilots of Scandinavian Airlines went on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS

SAS said discussions with lenders regarding another $700 million of financing were “well advanced”.

The strike is grounding roughly half the airline’s flights, affecting some 30,000 passengers per day, it said.

Data from flight tracking website FlightAware showed 232 SAS flights – 77% of those scheduled – had been cancelled on Tuesday, while Oslo’s Gardermoen airport, one of SAS’ hubs, had the world’s highest cancellation rate on the day.

SAS expects to complete the Chapter 11 process in nine to 12 months, it added. SAS shares can be traded as normal during the bankruptcy proceedings.

Wallenberg Investments, SAS’s third biggest shareholder with a 3.4% stake, said it supported the decision and would allow for talks to continue to make the airline competitive.

“For decades, SAS has had too-high costs and too-low productivity compared to its rivals,” it said.

SAS needs to attract new investors and has said to do that it must slash costs across the company, including for leased planes that stand idle because of closed Russian airspace and a slow recovery in Asia. read more

Its finance chief Erno Hilden said in the court filing the airline had so far been unable to renegotiate lease terms, many of which it said were “significantly above” market rates.

SAS had three bonds outstanding , , with a total face value of 5.4 billion Swedish crowns ($519 million). They now trade at deeply distressed levels of around one-third of face value.

The airline predicted its cash balance of 7.8 billion Swedish crowns was sufficient to meet its business obligations in the near term.

Sweden’s government has said no to injecting more cash into the carrier, while Copenhagen has said it may do so if SAS is able attract new investors.

Nordnet analyst Per Hansen said the U.S. application showed SAS needs a fresh start and that it thinks the strike will drag on. “Management and the board want to make it absolutely clear for all stakeholders that the situation is very serious.”

($1 = 10.3216 Swedish crowns)

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Additional reporting by Johan Ahlander in Stockholm, Essi Lehto in Helsinki, Victoria Klesty in Oslo, Agata Rybska in Gdansk, Jamie Freed in Sydney and Karin Strohecker in London; Writing by Niklas Pollard; Editing by Matt Scuffham, Jan Harvey and Emelia Sithole-Matarise

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Suspected truck driver in Texas migrant deaths was on meth, lawmaker says

  • 53 migrants died in U.S. border smuggling attempt
  • Suspected driver charged with human trafficking offense
  • Driver had meth in his system, lawmaker and U.S. official say

SAN ANTONIO, June 30 (Reuters) – The suspected driver of a truck packed with dozens of migrants who died in blazing heat during a Texas smuggling attempt was allegedly under the influence of methamphetamine when police encountered him, a U.S. lawmaker told Reuters, citing information from law enforcement.

San Antonio police officers found Homero Zamorano Jr, a Texas native, hiding in brush near the abandoned tractor-trailer on Monday, according to documents filed in federal court on Thursday. Fifty-three migrants lost their lives, making it the deadliest such trafficking incident on record in the United States.

U.S. Representative Henry Cuellar, a Democrat whose district includes the eastern part of San Antonio, told Reuters on Thursday that Zamorano was found to have had methamphetamine, a powerful synthetic drug, in his system.

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Cuellar said he was briefed on the matter by U.S. Customs and Border Protection (CBP), but did not know how authorities made that determination. A CBP official, speaking on the condition of anonymity, separately told Reuters that Zamorano had methamphetamine in his system.

Reuters was not immediately able to independently confirm the accounts of the alleged drug use.

Zamorano, 45, appeared in federal court in San Antonio on Thursday where human trafficking charges against him were read. If convicted, he faces a maximum sentence of life in prison or the death penalty and up to a $250,000 fine, he was told.

He was accompanied by public defender Jose Gonzalez-Falla, who declined to comment on the case. U.S. Magistrate Judge Elizabeth Chestney said Zamorano would be held in custody until his next hearing, on July 6.

Officials described finding the trailer’s rear door ajar with bodies stacked inside that were hot to the touch. In nearby brush, officers discovered other victims, some deceased. They found Zamorano hiding near the victims and escorted him to a local hospital for medical evaluation, prosecutors said. Mexican officials said he had tried to pass himself off as one of the survivors.

‘WHERE YOU AT?’

The truck had been carrying migrants from Mexico, Guatemala, Honduras and El Salvador and was found in a desolate, industrial area near a highway on the outskirts of the U.S.-Mexico border.

Temperatures in the area that day had soared as high as 103 Fahrenheit (39.4 Celsius), and authorities called to the scene found no water supplies or signs of working air-conditioning inside the cargo trailer.

Prosecutors allege Zamorano conspired with Christian Martinez, 28, who was also charged with a human trafficking offense. Martinez on Monday sent a photo of a truck load manifest to Zamorano, who responded by saying, “I go to the same spot,” a federal investigator wrote in a court filing Wednesday.

Martinez repeatedly messaged Zamorano in the hours after but received no reply, wrote Nestor Canales, a special agent with Immigration and Customs Enforcement’s (ICE) investigations division. Martinez sent messages including “Call me bro” and “Wya bro,” meaning “where you at,” Canales wrote.

A confidential informant for ICE and the Texas police spoke with Martinez after the incident, Canales wrote. Martinez told the informant, “The driver was unaware the air conditioning unit stopped working and was the reason why the individuals died,” Canales added.

Reuters was unable to reach Martinez for comment. Martinez, who is in official custody, made an initial appearance in a court in the Eastern District of Texas on Wednesday.

‘STASH HOUSE’

Along with 27 Mexicans, the victims included 14 Hondurans, eight Guatemalans and two Salvadorans, Mexican and Guatemalan officials said. Others, including minors, remain hospitalized.

A spokeswoman for Guatemala’s foreign ministry told Reuters it was unclear whether two of the Guatemalans identified Thursday had died on Monday or at a later date.

Among the dead were Pascual Melvin Guachiac, 13, and Juan Wilmer Tulul, 14, both from Guatemala, the country’s foreign ministry wrote on Twitter.

The two were cousins who left home two weeks ago to escape poverty, Guachiac’s mother was quoted as saying by Guatemalan media. read more

Also among the victims was Yazmin Nayarith Bueso, who left Honduras nearly a month ago. Her brother said she had gone a year without a job. “She looked and looked and couldn’t find anything, and became desperate,” Alejandro Bueso told a Honduran television program on Thursday.

Officials believe the migrants boarded the truck on the U.S. side of the border with Mexico.

Surveillance photographs captured the truck passing through a border checkpoint at Laredo, Texas, at 2:50 p.m. CT (1950 GMT) on Monday, before the migrant passengers are believed to have boarded.

Cuellar, the Texas lawmaker, said the migrants had likely crossed the border and gone to a “stash house” before being picked up by the trailer and passing the Encinal checkpoint. They likely then went into San Antonio and experienced mechanical issues that left them in the back of the truck without air conditioning or ventilation, Cuellar said.

Another truck carrying migrants headed for San Antonio evaded the Encinal checkpoint on Thursday, crashing into the back of a tractor-trailer after a chase and killing four on board, according to Mexican authorities. read more

Two other men suspected of involvement in Monday’s incident, Mexican nationals Juan Claudio D’Luna-Mendez and Francisco D’Luna-Bilbao, were charged on Tuesday in U.S. federal court with possessing firearms while residing in the country illegally. A preliminary hearing for the pair is set for Friday.

D’Luna-Mendez’s attorney, Michael McCrum, said his client is a 21-year-old carpenter who has been in the U.S. since childhood and had “nothing to do with” the tragedy. McCrum said he believed the other man charged was his client’s father.

Charging documents in the case said the truck’s registration was tracked to the men’s address. “They are arresting anyone they can,” McCrum said.

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Reporting by Jason Buch and Julio-Cesar Chavez in San Antonio, Ted Hesson in Washington; Additional reporting by Gustavo Palencia in Tegucigalpa, Sofia Menchu in Guatemala City and Kylie Madry in Mexico City
Writing by Rami Ayyub; Editing by Mica Rosenberg, Aurora Ellis and Leslie Adler

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Biden unveils migration plan, capping Americas summit roiled by division

LOS ANGELES, June 10 (Reuters) – U.S. President Joe Biden and fellow leaders from the Western Hemisphere on Friday rolled out a new set of measures to confront the regional migration crisis, seeking to salvage an Americas summit roiled by division.

Biden’s aides had touted the migration declaration as a centerpiece of the U.S.-hosted Summit of the Americas, and 20 countries joined him for a ceremonial unveiling of the plan – though several others stayed away.

Capping the summit’s final day, the White House promoted a series of migrant programs agreed by countries across the hemisphere and Spain, attending as an observer, which pledged a more cooperative approach. But analysts were skeptical that the pledges are meaningful enough to make a significant difference.

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Those measures include the United States and Canada committing to take more guest laborers, providing pathways for people from poorer countries to work in richer ones, and other countries agreeing to greater protections for migrants. Mexico also will accept more Central American workers, according to a White House statement.

“We’re transforming our approach to manage migration in the Americas,” Biden said. “Each of us is signing up to commitments that recognizes the challenges we all share.”

The flags of 20 countries, several fewer than the number attending the summit, festooned the stage where Biden led the rollout. But that number was only achieved after days of U.S. pressure.

It was another sign of tensions that have marred the summit, undermining Biden’s efforts to reassert U.S. leadership and counter China’s growing economic footprint in the region.

That message was clouded by a boycott by several leaders, including Mexico’s president, to protest Washington’s exclusion of leftist U.S. antagonists Cuba, Venezuela and Nicaragua. The line-up was thinned to 21 visiting heads of state and government.

The administration, facing a record flow of illegal migrants at its southern border, pledged hundreds of millions of dollars in aid for Venezuelan migrants, renewed processing of family-based visas for Cubans and Haitians and eased the hiring of Central American workers. read more

The announcements were part of the unveiling of U.S.-led pact dubbed the “Los Angeles Declaration” and aimed at spreading responsibility across the region to contain the migration problem.

The plan culminates a summit designed to re-establish U.S. influence among its southern neighbors after years of relative neglect under former President Donald Trump. Biden proposed an economic partnership to help the region’s pandemic recovery – though it appears to be a work in progress.

But at the summit’s opening on Thursday, leaders from Argentina and tiny Belize rebuked Biden over the guest list, underscoring the challenge the global superpower faces in restoring its status among poorer neighbors.

On Friday, Chile, Bolivia, the Bahamas, St. Lucia, Barbados and Antigua and Barbuda joined the criticism, though Biden was not present.

“No one should exclude another country,” Mexican Foreign Minister Marcelo Ebrard, sitting in for President Andres Manuel Lopez Obrador, said from the podium.

The sessions this week regularly rang out to U.S. composer’s John Philip Sousa’s “The Liberty Bell” march, popularized by the classic British comedy show “Monty Python’s Flying Circus.”

‘THERE’S NOTHING HERE’

U.S. officials scrambled until the last minute to persuade skeptical governments to back the plan.

The leaders vowed in the declaration “to strengthen national, regional and hemispheric efforts to create the conditions for safe, orderly, humane and regular migration.”

Standing together with fellow leaders, Biden insisted “unlawful migration is not acceptable,” and expressed hope that other countries would join the plan.

Eric Olson, director of policy at the Seattle International Foundation, called the declaration a “useful framework” but said it would likely have limited near-term effects because it is non-binding.

Some initiatives listed by the White House were announced previously. Biden’s aides have cast the immigration plan in part to help ease U.S. labor shortages.

Jorge Castaneda, a former Mexican foreign minister, said pledges from the Americas should allow Washington to argue it had secured major commitments, a domestic “political plus” for Biden. But he added: “On substance, there’s nothing here.”

Mexico, whose border with the United States is the main point of migration – backed the declaration, despite Lopez Obrador’s no-show.

The absence from the summit of leaders of Guatemala, Honduras and El Salvador – the Northern Triangle from which many migrants come – has raised doubts how effective the pledges will be. U.S. officials insisted the turnout did not prevent Washington from getting results.

The declaration encompasses commitments by an array of countries, including Mexico, Canada, Costa Rica, Belize and Ecuador. There was no mention, however, of pledges by Brazil, Latin America’s most populous nation.

The announcement did not include any U.S. pledges for additional work visas for Mexicans. That would form part Lopez Obrador’s visit with Biden next month, an official said.

Spain pledged to “double the number of labor pathways” for Hondurans, the White House said. Madrid’s temporary work program enrolls 250 Hondurans, suggesting only a small increase is envisioned.

Curbing irregular migration is a priority for Biden. Republicans, seeking to regain control of Congress in November elections, have pilloried the Democratic president for reversing Republican Trump’s restrictive immigration policies.

But migration has had to compete with Biden’s other major challenges, including high inflation, mass shootings and the war in Ukraine.

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Reporting by Humeyra Pamuk, Daina Beth Solomon, Dave Graham, Matt Spetalnick, Trevor Hunnicutt, Lisanda Paraguassu and Ted Hesson; writing by Matt Spetalnick; Editing by Jonathan Oatis, Alistair Bell and Grant McCool

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Biden unveils new Latin America economic plan at reboot summit dogged by dissent

LOS ANGELES, June 8 (Reuters) – President Joe Biden announced on Wednesday a proposed new U.S. economic partnership with Latin America aimed at countering China’s growing clout as he kicked off a regional summit marred by discord and snubs over the guest list.

Hosting the Summit of the Americas in Los Angeles, Biden sought to assure the assembled leaders about his administration’s commitment to the region despite nagging concerns that Washington, at times, is still trying to dictate to its poorer southern neighbors.

The line-up of visiting heads of state and government in attendance was thinned down to 21 after Biden excluded Cuba, Venezuela and Nicaragua, prompting Mexican President Andres Manuel Lopez Obrador and several other leaders to stay away in protest.

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“We have to invest in making sure our trade is sustainable and responsible in creating supply chains that are more resilient, more secure and more sustainable,” Biden told a gala opening ceremony.

Biden is seeking to present Latin American countries with an alternative to China that calls for increased U.S. economic engagement, including more investment and building on existing trade deals.

However, his “Americas Partnership for Economic Prosperity,” which still appears to be a work in progress, stops short of offering tariff relief and, according to a senior administration official, will initially focus on “like-minded partners” that already have U.S. trade accords. Negotiations are expected to begin in early fall, the official added.

Biden outlined his plan as he launched the summit, which was conceived as a platform to showcase U.S. leadership in reviving Latin American economies and tackling record levels of irregular migration at the U.S.-Mexico border.

But his agenda has been undermined by the partial boycott by leaders upset at Washington’s decision to cut out its main leftist antagonists in the region.

As a result, Biden found himself welcoming a larger-than-normal contingent of foreign ministers sitting in for their national leaders as the arriving dignitaries walked one-by-one up a red carpet flanked by a military honor guard.

U.S. officials hope the summit and a parallel gathering of business executives can pave the way for greater cooperation as governments grappling with higher inflation work to bring supply chains stretched by the COVID-19 pandemic closer to home.

Biden also used his speech to preview a summit declaration on migration to be rolled out on Friday, calling it “a ground-breaking, integrated new approach” with shared responsibility across the hemisphere. But he provided few specifics.

Even as Biden deals with priorities such as mass shootings, high inflation and the Ukraine war, the U.S. official said the president is seeking to press the administration’s competitive goals against China with the launch of the new partnership for the region.

The U.S. plan also proposes to revitalize the Inter-American Development Bank and create clean energy jobs

Still, the administration appeared to be moving cautiously, mindful that an initiative that promotes jobs abroad could face U.S. protectionist pushback.

CHINA’S CHALLENGE

The challenge from China is clearly a major consideration.

China has widened the gap on the United States in trade terms in large parts of Latin America since Biden came into office in January 2021, data show.

An exclusive Reuters analysis of U.N. trade data from 2015-2021 shows that outside of Mexico, the top U.S. trade partner, China has overtaken the United States in Latin America and increased its advantage last year. read more

“The best antidote to China’s inroads in the region is to ensure that we are forwarding our own affirmative vision for the region economically,” the administration official said.

Biden’s aides have framed the summit as an opportunity for the United States to reassert its leadership in Latin America after years of comparative neglect under his predecessor Donald Trump.

But diplomatic tensions broke into the open this week when Washington opted not to invite the three countries it says violate human rights and democratic values.

Rebuffed in his demand that all countries must be invited, Lopez Obrador said he would stay away, deflecting attention from the U.S. administration’s goals and toward regional divisions.

Biden’s national security adviser Jake Sullivan told reporters the choice by some leaders not to attend reflected their own “idiosyncratic decisions” and that substantive work would still be accomplished.

Cuban President Miguel Diaz-Canel said the United States lacked “moral authority” to lecture on democracy and thanked Lopez Obrador for his “solidarity.”

The leaders of Guatemala and Honduras, two of the countries that send most migrants to the United States, also stayed home, raising questions about the significance of the coming joint migration declaration.

Still, leaders from more than 20 countries, including Canada, Brazil and Argentina, are attending the summit, hosted by the United States for the first time since its inaugural session in 1994.

Biden will use a meeting on Thursday with Brazilian President Jair Bolsonaro to talk about climate change and will also discuss the topic of “open, transparent and democratic elections” in Brazil. read more

Bolsonaro, a populist admirer of Trump who has had chilly relations with Biden, has raised doubts about Brazil’s voting system, without providing evidence, ahead of October elections that opinion polls show him losing to leftist rival Luiz Inacio Lula da Silva.

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Reporting by Trevor Hunnicutt, Daina Beth Solomon, Matt Spetalnick, Dave Graham, Humeyra Pamuk; Additional reporting by Jeff Mason, Steve Holland and Dave Sherwood; writing by Matt Spetalnick and Dave Graham; Editing by Grant McCool and Richard Pullin

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U.S. VP touts $3.2 bln investment aimed at stemming Central America migration

LOS ANGELES/WASHINGTON, June 7 (Reuters) – U.S. Vice President Kamala Harris has pooled $3.2 billion in corporate pledges aimed at addressing some of the economic factors driving migration from Central America, her office said on Tuesday, lending impetus to measures to be discussed at the Summit of the Americas this week.

The new commitments from companies, including Visa Inc (V.N) and the apparel company Gap Inc (GPS.N), exceed $1.9 billion, adding to $1.2 billion made in December. read more The latest round of corporate investments announced by Harris are intended to create jobs, expand access to the internet and bring more people into the formal banking system.

The pledges form a major part of President Joe Biden’s plan to address “root causes” of migration from Guatemala, Honduras and El Salvador, a region known as the Northern Triangle. Curbing irregular migration is a top priority for Biden at a time when record numbers of people are trying to enter the United States at the Mexican border.

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Biden, who travels to Los Angeles on Wednesday for the U.S.-hosted summit, will also promote a new economic plan for the Western Hemisphere building on existing trade agreements, U.S. officials said. read more

Even as he grapples with pressing concerns such as mass shootings, high inflation and the Ukraine war, the Democratic president wants to use the summit to repair Latin America relations damaged under his Republican predecessor, Donald Trump, and to counter China’s growing influence in the region.

But the administration’s decision to exclude Cuba, Venezuela and Nicaragua, which prompted Mexican President Andres Manuel Lopez Obrador to stay away, has threatened to overshadow Biden’s agenda. read more

However, U.S. efforts to stem migration from the Northern Triangle have been hampered by corruption, with projects likely worth millions shelved and some private sector engagement stalled. read more

Further complicating matters, the presidents of Guatemala and Honduras have signaled they will not attend the summit and will instead send other officials. It was unclear whether El Salvador’s President Nayib Bukele would attend, but the White House’s official guest list shows his foreign minister as head of the delegation.

Several thousand migrants, many from Venezuela, set off from southern Mexico on Monday on a journey to the United States timed to coincide with the summit. read more

At least 6,000 people, according to Reuters witnesses, left the city of Tapachula, near Mexico’s border with Guatemala.

CORPORATE PLEDGES

The latest corporate pledges includes $270 million from Visa focused on bringing 6.5 million people into the formal banking system, and a $150 million pledge from Gap to increase materials sourced from the region.

The other firms span a variety of sectors, including auto-parts, agriculture, telecommunications and digital services.

A CEO summit running parallel to the leaders’ gathering could yield commitments for further investment in economically troubled Latin America, which has been hit hard by the COVID-19 pandemic and is struggling to recover.

Harris also announced an initiative with the private sector that aims to connect 1.4 million women to the financial system and train more than 500,000 women and girls in job skills.

Additionally, Harris unveiled a $50 million project called the Central American Service Corps designed to give young people in the Northern Triangle paid community service opportunities in areas such as education and violence prevention.

Despite friction over summit invitations, most leaders in the Americas plan to attend. White House officials insist the controversy will blow over and the event – the first hosted by the United States since the first such gathering in 1994 – will be a success.

But before heading to the summit, Mexican Foreign Minister Marcelo Ebrard, in a newspaper op-ed, accused the United States of being “inconsistent, if not contradictory” for refusing to invite Communist-ruled Cuba and leftist-led Venezuela and Nicaragua while engaging with non-democratic governments in other regions such as Southeast Asia. read more

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Reporting by Daina Solomon and Matt Spetalnick in Los Angeles and Ted Hesson in Washington; Additional reporting by Dave Graham in Los Angeles and Alexandra Valencia in Quito; Editing by Grant McCool

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EXCLUSIVE U.S. to let Eni, Repsol ship Venezuela oil to Europe for debt -sources

HOUSTON/WASHINGTON, June 5 (Reuters) – Italian oil company Eni SpA and Spain’s Repsol SA could begin shipping Venezuelan oil to Europe as soon as next month to make up for Russian crude, five people familiar with the matter said, resuming oil-for-debt swaps halted two years ago when Washington stepped up sanctions on Venezuela.

The volume of oil Eni and Repsol are expected to receive is not large, one of the people said, and any impact on global oil prices will be modest. But Washington’s greenlight to resume Venezuela’s long-frozen oil flows to Europe could provide a symbolic boost for Venezuelan President Nicolas Maduro.

The U.S. State Department gave the nod to the two companies to resume shipments in a letter, the people said. U.S. President Joe Biden’s administration hopes the Venezuelan crude can help Europe cut dependence on Russia and re-direct some of Venezuela’s cargoes from China. Coaxing Maduro into restarting political talks with Venezuela’s opposition is another aim, two of the people told Reuters.

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The two European energy companies, which have joint ventures with Venezuelan state-run oil company PDVSA, can count the crude cargoes toward unpaid debts and late dividends, the people said.

A key condition, one of the people said, was that the oil received “has to go to Europe. It cannot be resold elsewhere.”

Washington believes PDVSA will not benefit financially from these cash-free transactions, unlike Venezuela’s current oil sales to China, that person said. China has not signed onto Western sanctions on Russia, and has continued to buy Russian oil and gas despite U.S. appeals.

The authorizations came last month, but details and resale restrictions have not been reported previously.

Eni (ENI.MI)declined comment, citing a policy of not commenting “on issues of potential commercial sensitivity.” Repsol (REP.MC) did not reply to requests for comment.

OTHERS EXCLUDED

Washington has not made similar allowances for U.S. oil major Chevron Corp(CVX.N), India’s Oil and Natural Gas Corp Ltd (ONGC) (ONGC.NS) and France’s Maurel & Prom SA(MAUP.PA), which also lobbied the U.S. State Department and U.S. Treasury Department to take oil in return for billions of dollars in accumulated debts from Venezuela.

All five oil companies halted swapping oil for debt in mid-2020 in the midst of former U.S. President Donald Trump’s “maximum pressure” campaign that cut Venezuela’s oil exports but failed to oust Maduro.

PDVSA has not scheduled Eni and Repsol to take any cargoes this month, according to a June 3 preliminary PDVSA loading program seen by Reuters.

Venezuela Vice President Delcy Rodriguez tweeted last month she hoped the U.S. overtures “will pave the way for the total lifting of the illegal sanctions which affect our entire people.”

OUTREACH TO CARACAS

The Biden administration held its highest level talks with Caracas in March, and Venezuela freed two of at least 10 jailed U.S. citizens and promised to resume election talks with the opposition. Maduro has yet to agree on a date to return to the negotiating table. read more

Republican lawmakers and some of Biden’s fellow Democrats who oppose any softening of U.S. policy toward Maduro have blasted the U.S. approach to Venezuela as too one-sided.

Washington maintains further sanctions relief on Venezuela will be conditioned on progress toward democratic change as Maduro negotiates with the opposition.

Last month, the Biden administration authorized Chevron, the largest U.S. oil company still operating in Venezuela, to talk to Maduro’s government and PDVSA about future operations in Venezuela. read more

About that time, the U.S. State Department secretly sent letters to Eni and Repsol saying Washington would “not object” if they resumed oil-for-debt deals and brought the oil to Europe, one of the sources told Reuters.

The letters assured them they would face no penalties for taking Venezuelan oil cargoes to collect on pending debt, said two people in Washington.

CHEVON CONSIDERATION

Chevron’s request to the U.S. Treasury to expand its operations in Venezuela came as the State Department issued the no-objection letters to Eni and Repsol. The person familiar with the matter in Washington declined to say whether Chevron’s request remained under consideration.

The U.S. oil major did receive a six-month continuation of a license that preserves its assets and U.S. approval to talk with Venezuelan government officials about future operations. read more

It was not immediately clear if Washington had okayed the prior crude-for-fuel swaps European companies conducted with PDVSA until 2020, exchanges that provided relief to gasoline-thirsty Venezuela.

China has become the largest customer for Venezuelan oil, with as much as 70% of monthly shipments destined for its refiners. read more

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Reporting by Marianna Parraga in Houston and Matt Spetalnick in Washington; writing by Gary McWilliams; Editing by David Gregorio and Lisa Shumaker

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Costa Rica elects maverick Chaves as president in break with establishment

SAN JOSE, April 3 (Reuters) – Anti-establishment economist Rodrigo Chaves clinched Costa Rica’s presidency on Sunday, upending decades of political consensus in the Central American country that is grappling with growing social discontent and mounting national debt.

Chaves, a veteran former official of the World Bank, was projected to win about 52.9% of the vote in the run-off ballot, a preliminary tally by the electoral tribunal showed, based on returns from some 97% of polling stations.

Rival candidate and former Costa Rican president Jose Maria Figueres was seen securing about 47.1%.

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Speaking to supporters in San Jose, the capital, the 60-year-old Chaves said he accepted his victory with humility, and urged Figueres to help him move the country forward.

“I humbly beg Jose Maria and his party to work together to make possible what Don Jose Maria himself called the Costa Rican miracle,” he said, referring to Figueres’ father, Jose Figueres Ferrer, who served as president three times.

“Let’s put aside pettiness and vanity. Tonight we will begin together to serve our country,” added Chaves, who is set to assume office on May 8.

Figueres quickly conceded defeat after results came in.

“I congratulate Rodrigo Chaves, and I wish him the best,” he told supporters.

Caravans of cars sporting the flag of Chaves’ Social Democratic Progress Party (PPSD) crowded the streets of downtown San Jose in celebration.

Polls had shown Chaves to be a slight favorite heading into the election after he unexpectedly finished runner-up to Figueres in an indecisive first round of voting in February.

Chaves, who briefly served as finance minister for outgoing President Carlos Alvarado, ran as a maverick. He has vowed to shake up the political elite, even pledging to use referendums to bypass Congress to bring change. read more

“If the people go out to vote, this is going to be a sweep, a tsunami,” Chaves said after casting his ballot on Sunday.

Figueres campaigned on his experience and family political legacy in Costa Rica, a tourist destination and bastion of environmentalism long regarded as one of the most stable democracies in Latin America.

On Twitter, Alvarado said he had called to congratulate Chaves and pledged an orderly handover of power.

Turnout was 57.3%, the electoral tribunal said, less than the 60% who cast ballots in the first round.

Going into Sunday’s vote, some voters said they were lukewarm on both candidates, whose political careers have been tainted by accusations of wrongdoing.

Chaves faced accusations of sexual harassment during his World Bank tenure, which he denied. Figueres resigned as executive director of the World Economic Forum in 2004 amid accusations that he had influenced state contracts with Alcatel, a telecoms company. That case was never tried in court.

David Diaz, 33, said he was not enthused by Chaves or Figueres. He left home early to vote by 7 a.m. in the rural town of Tacacori, about 30 km (19 miles) from San Jose.

“I see very little movement, there is a lot of apathy,” said Diaz, a mechanic at a medical device factory.

Chaves faces the challenges of reviving an economy battered by the COVID-19 pandemic, and alleviating the poverty in which about 23% of a population of 5.1 million live.

Growing income disparity makes Costa Rica one of the world’s most unequal countries, with unemployment of almost 15%. read more

In January 2021, the country agreed to $1.78 billion in financial assistance from the International Monetary Fund.

In return, the government vowed to adopt a raft of fiscal changes and austerity measures, but lawmakers have only passed a law to make savings on public sector workers’ benefits.

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Reporting by Diego Ore and Alvaro Murillo, writing by Cassandra Garrison; Editing by Clarence Fernandez

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Russia stocks jump as trade resumes after month-long break

  • Energy stocks see double-digit gains on Moscow reopening
  • Sanctioned lender VTB, Aeroflot suffer falls
  • Rouble strengthens vs dollar, euro after Putin statement
  • OFZ benchmark 10-year yield nudges lower to 13.64%
  • Moscow Exchange to restart trading more instruments

March 24 (Reuters) – Energy and metals firms led a jump in Russian stocks on Thursday as trading resumed after almost a month’s suspension, reflecting soaring global prices for oil, gas and other commodities on fears the Ukraine crisis will threaten supply.

The market was also underpinned by a government commitment to support stocks, leading a senior U.S. official to dismiss the limited resumption of trading as a “a charade: a Potemkin market opening”.

Stocks had not traded on Moscow’s bourse since Feb. 25, the day after President Vladimir Putin sent troops into neighbouring Ukraine, prompting Western sanctions aimed at isolating Russia economically and then Russian countermeasures.

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The reaction has cut off Russian financial markets from global networks and sent the rouble currency tumbling. Stocks had also plunged immediately after Moscow launched what it calls “a special military operation” to disarm and “denazify” its southern neighbour.

Restrictions on trade with foreigners and a ban on short selling remained in place on Thursday as the Moscow Exchange cautiously resumed equities trading. On Friday, more securities, including corporate bonds and Eurobonds will be traded, the central bank said.

“We will do everything possible to open all segments of the stock market soon,” Boris Blokhin, head of Moscow Exchange’s stock market department, said.

STELLAR GAINS

The short session saw energy firms make stellar gains, with gas producer Novatek (NVTK.MM), oil majors Rosneft and Lukoil (LKOH.MM) and gas giant Gazprom (GAZP.MM) up 12%-18.5%.

Brent crude oil , a global benchmark for Russia’s main export, was trading near $120.6 per barrel on Thursday, having jumped more than 20% from a month ago as worries about supply disruptions from the Ukraine crisis drive up prices.

Shares in mining giant Nornickel also gained 10.2% (GMKN.MM).

Novatek and Nornickel pared losses sustained since before Feb. 24 by the session’s close. Fertiliser producer Phosagro (PHOR.MM) closed at a record high.

Reuters Graphics

“Large bids to buy Russian shares have been seen since the market opening,” BCS Brokerage said in a note, adding that a promise Russia’s rainy-day fund will buy shares was also underpinning the market.

“The overall sentiment is supported by the confidence that the finance ministry will buy stocks,” BCS said.

The government said on March 1 that it would use up to 1 trillion roubles ($10.4 billion) from the National Wealth Fund to buy battered Russian stocks, although it was not clear whether any purchases were being made on Thursday.

The finance ministry did not immediately respond to a request for comment.

‘POTEMKIN MARKET OPENING’

An interior view shows the headquarters of Moscow Exchange in Moscow, Russia April 27, 2021. REUTERS/Maxim Shemetov

A senior U.S. official said Moscow’s commitment to buy amounted to artificially propping up shares, and called the limited resumption “a Potemkin market opening”.

“This is not a real market and not a sustainable model – which only underscores Russia’s isolation from the global financial system,” deputy White House national security adviser Daleep Singh said in a statement.

Trading in Russian companies listed on the London Stock Exchange remains suspended. Prices of some instruments had plunged to almost zero before the bourse halted trading of them in early March.

The Moscow Exchange said 567,000 private investors had accounted for 58.2% of Thursday’s trading volume, with 121 professional participants conducting the remainder.

“Today the first step was made in our new reality,” said Elbek Dalimov, head of equity trading at Aton brokerage, adding that trading orders were limited with non-residents, who hold more than half the free float on the market, sidelined.

“In the morning we saw a huge number of retail investors who on the one hand were closing short positions and on the other were ready to park their roubles in shares, so as to somehow save them from inflation,” he said.

The benchmark MOEX stock index ended the short trading session 4.4% higher at 2,578.51 points, having earlier reached a day peak of 2,761.17 (.IMOEX).

The dollar-denominated RTS index (.IRTS) fell 9% on the day to 852.64, pressured by the weaker rouble, according to MOEX data that was suspended in the Eikon terminal.

The negative impact of sanctions was clear in some sectors, with shares in Russia’s second-largest lender VTB (VTBR.MM) down 5.5%. And with most European airspace closed to Russian planes, flagship carrier Aeroflot (AFLT.MM) sank 16.44%.

Trading apps of major brokerages with leading banks, including Sberbank, VTB and Alfa, reported temporary problems with processing clients’ orders following the restart.

ROUBLE FIRMS

The rouble meanwhile extended its recovery, gaining 1.3% to trade at 96.50 against the dollar in Moscow trade by 1502 GMT.

The currency had hit its strongest level in three weeks at 94.975 on Wednesday after Putin said Russia would start selling its gas to “unfriendly” countries in roubles. read more

Against the euro, the rouble was 2.1% higher at 105.75 , pulling further away from an all-time low of 132.4 it hit in Moscow trading earlier in March, but far from levels of around 90 seen before Feb. 24.

Russia resumed trading of OFZ treasury bonds on Monday with the central bank helping to stabilise the market with interventions, the amount of which it has not yet disclosed.

Yields of benchmark 10-year OFZ bonds, which move inversely to their prices, stood at 13.68% after hitting an all-time high of 19.74% on Monday .

($1 = 96.0000 roubles)

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Jamaica PM tells British royals island nation wants to be independent

KINGSTON, March 23 (Reuters) – Jamaican Prime Minister Andrew Holness told Britain’s Prince William and his wife Kate on Wednesday his country wants to be “independent” and address “unresolved” issues, a day after protesters called on the United Kingdom to pay reparations for slavery.

The royal couple arrived in Jamaica on Tuesday as part of a week-long tour of former British Caribbean colonies, but have faced public questioning of the British Empire’s legacy.

In a speech later on Wednesday, Prince William did not address calls to remove his grandmother, Queen Elizabeth, as head of state.

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The royal couple’s trip comes after Barbados became a republic nearly four months ago by removing the queen as the sovereign head of state, a move Jamaica has begun to study.

“There are issues here which as you would know are unresolved,” Holness said during a photo shoot with William and Kate.

“But Jamaica is as you would see a country that is very proud… and we’re moving on. And we intend… to fulfill our true ambition of being an independent, fully developed and prosperous country.”

Dozens of people gathered on Tuesday outside the British High Commission in Kingston, singing traditional Rastafarian songs and holding banners with the phrase “seh yuh sorry” – a local patois phrase that urged Britain to apologise. L2N2VP2CB

In a speech at the governor general’s residence attended by Holness and other dignitaries, William also stopped short of apologising for slavery, though he did say he agreed with his father’s declaration that “the appalling atrocity of slavery forever stains our history”.

William, second-in-line to the British throne, also expressed his “profound sorrow” for the institution of slavery, which he said should never have existed.

Jamaican officials have previously said the government is studying the process of reforming the constitution to become a republic. Experts say the process could take years and would require a referendum.

Jamaica’s government said last year it will ask Britain for compensation for forcibly transporting an estimated 600,000 Africans to work on sugarcane and banana plantations that created fortunes for British slave holders.

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Reporting by Kate Chappell in Kingston and Brian Ellsworth in Miami; Editing by Bill Berkrot and Muralikumar Anantharaman

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