Tag Archives: ECON

Hometown looks to aspiring Colombia VP Marquez to deliver on inequality promises

SUAREZ, Colombia June 16 (Reuters) – Former neighbors and colleagues in Colombia’s largely marginalized Cauca province hope vice presidential candidate Francia Marquez, a single mother and former housekeeper, will help areas plagued by violence and poverty if her ticket wins the election on Sunday.

But it is unclear how much freedom Marquez, 40, would have to carry out her pledges to improve women’s rights and help the poor access health and education if she and presidential hopeful Gustavo Petro, a former leftist guerrilla and current senator, are victorious.

The position of vice president is nebulous in Colombia – presidents are free to assign ministries or other specialties to their second-in-command – and Petro is known as a stubborn manager, repeatedly clashing with officials when he was Bogota’s mayor.

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Petro and Marquez are neck and neck in polls with surprise rivals Rodolfo Hernandez and his vice presidential candidate Marelen Castillo, who have promised to shrink government.

University official Castillo is, like Marquez, Afro-Colombian. No matter who wins on Sunday, it will be the first time a Black woman will serve as Colombia’s vice president.

Marquez is a celebrated environmental activist whose opposition to gold mining in her home municipality of Suarez saw her receive the prestigious Goldman Environmental Prize in 2018 – as well as death threats from illegal armed groups.

Marquez, who has never held elected office, is slated to lead a new equality ministry if she and Petro win.

If Petro reneges on plans to give Marquez a policymaking role or micro-manages her decisions, the two may clash once in office, Gimena Sanchez-Garzoli, Andes director for the Washington Office on Latin America, a think tank, told Reuters.

“He has always put what he thinks is most important, or his idea of what things should be, before really getting a full consensus with others,” Sanchez-Garzoli said, adding that Petro and Marquez will “butt heads” if he sidelines her.

Marquez, who came second to Petro in their coalition’s March primary with 783,000 votes, has significant support on her own merits, Sanchez-Garzoli said, tallying more ballots than the winner of the centrist primary.

She could also be of crucial help for economic development, Daniela Cuellar of FTI Consulting said, liaising between often-skeptical local people and major companies.

“This could help companies identify and work on issues of common interest with the communities,” Cuellar said.

A DAUGHTER OF SUAREZ

Residents of Suarez – adorned with colorful murals of Marquez – and neighboring Buenos Aires told Reuters her surprise shot at the vice presidency is a unique opportunity for marginalized regions like theirs.

Over 80% of people in Cauca – home to several armed groups, such as FARC guerrilla dissidents who reject a 2016 peace deal, illegal mining and coca production – live in some form of poverty.

Locals want her to shore up land rights and address inequality.

“I’m very happy,” said Gonzalo Ararat, 79, a farmer who was displaced by violence amid Colombia’s internal armed conflict in his youth and has known Marquez for more than 20 years.

Ararat proudly showed off a magazine from 2010 with a column written by Marquez laying out her plans to study law to defend her community from threats to their land, which he had taped together with her present-day campaign materials.

Local councillor Sandra Patricia Ibarra, 47, told Reuters she likes Marquez because she had risked her life to defend their home, despite dozens of killings of environmentalists each year in Colombia. read more

“Francia is a daughter of Suarez,” Ibarra said.

If she wins, Marquez is expected to push implementation of a recent Supreme Court ruling decriminalizing abortion, while keeping a special focus on access to the procedure for indigenous, Afro-Colombian and rural women. read more

“Being a woman in Colombia is not the same (…) if you are indigenous or of Afro descent,” said Ana Cristina Gonzalez of Causa Justa, a coalition of more than 90 pro-choice groups.

Afro-Colombian women activists from Buenos Aires, erstwhile colleagues of Marquez, said her plans to support poor areas and defend Afro-Colombian rights will face many obstacles.

But her presence in the halls of power would mark a profound change.

“Our land has not been properly cared for by the Colombian state, by Colombian governments, because it seems all they care about is looting the resources it holds,” said Clemencia Carabali, 51, a member of Afro-Colombian women’s group ASOM.

Carabali – flanked by government bodyguards provided because of death threats over her activism – described Marquez, a friend of 25 years, as a sister.

“As a woman I feel very proud of the work that she has been doing.”

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Reporting by Oliver Griffin
Additional reporting by Julia Symmes Cobb and Luis Jaime Acosta
Editing by Alistair Bell

Our Standards: The Thomson Reuters Trust Principles.

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Sanctions-hit Kremlin stages ‘Russian Davos’ bereft of elite, Putin speaks Friday

  • International economic forum June 15-18 in St Petersburg
  • No Western bigwigs at ‘Russian Davos’ due to sanctions
  • Putin to give big speech June 17, speak to media – aide

June 14 (Reuters) – Russia for years hosted world leaders and business titans at its annual economic forum in St Petersburg, but the “Russian Davos” will see little of the global financial elite this year with Moscow isolated by sanctions over its actions in Ukraine.

This week, to make up for the lack of major Western attendees, Russia is giving pride of place to smaller players or countries like China – the world’s second largest economy – that have not joined in sanctions.

“Foreign investors are not only from the United States and European Union,” Kremlin spokesperson Dmitry Peskov told reporters on Tuesday, pointing to the Middle East and Asia.

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President Vladimir Putin will give a major speech on Friday focusing on the international economic situation and Russia’s tasks in the near future, Interfax news agency cited Kremlin aide Yuri Ushakov as saying.

He will also meet media on the sidelines of the forum at about 8 p.m. Moscow time (1600 GMT) that day, he said.

The Kremlin launched the St Petersburg International Economic Forum (SPIEF) in 1997 to attract foreign investment, discuss economic policy and project an image it was open for business after the demise of Soviet rule.

Russia long compared SPIEF with the World Economic Forum, the annual blue-ribbon event for global VIPs held in the Swiss Alpine resort of Davos.

Now, with Western leaders shunning dealings with Russia, Putin will have no traditional meeting with political movers and shakers and corporate bigwigs from the United States and Europe.

There were no names of U.S. and European companies or their CEOs on the published schedule for the June 15-18 SPIEF – reflecting fears of punishment under the most sweeping sanctions regime ever imposed on a major power.

Even companies that have hung on in Russia despite the general exodus of Western investors were not listed.

Ushakov said high-level delegations from more than 40 nations were expected while 1,244 Russian and 265 foreign companies had confirmed they would be there.

In one exception to the absence of Western figures, the head of the American Chamber of Commerce in Russia along with French and Italian counterparts will speak at a session on Thursday called “Western Investors in Russia: New Reality.”

TOXIC RELATIONS

Russia’s relations with the West have turned toxic since it sent armoured forces into Ukraine on Feb. 24 in what it calls a “special military operation” to remove threats to its security. Ukraine and its Western backers call Russia’s actions an unprovoked invasion aimed at grabbing territory.

SPIEF will therefore look and feel very different.

Having once welcomed then- German chancellor Angela Merkel, ex-IMF chief Christine Lagarde, Goldman Sachs’ Lloyd Blankfein, Citi’s Vikram Pandit and ExxonMobil’s Rex Tillerson, Russia will give top billing this week to the presidents of allied states Kazakhstan and Armenia.

Egyptian President Abdel Fattah al-Sisi will address the meeting via video link, RIA news agency cited Ushakov as saying.

As foreign companies write down billions of their once promising Russian investments, domestic firms and banks are rushing to take over businesses left behind. read more

“Sanctions are for the long haul. Globalisation as it used to be has ended,” Andrey Kostin, CEO of sanctioned bank VTB, Russia’s second-largest, told RBC business daily.

‘NEW OPPORTUNITIES IN A NEW WORLD’

In past years, SPIEF’S sessions would focus on investment-oriented topics such as privatisation by Moscow and initial public offerings (IPOs).

This year, SPIEF’s official title is “New Opportunities in a New World”. Session topics include new possibilities for Russian economic growth, improving trade with the five non-Western BRICS powers and the future of Russia’s sanctioned financial sector.

Another session – “A new form of international cooperation: how will payments be made?” – touches on Russia’s ejection from the global SWIFT payment system and its move to circumvent the ban by demanding payments for gas exports in roubles. It will have speakers from allies Cuba and Venezuela as well as Turkey and Egypt, which have also eschewed sanctions.

There will be a session on “fake news” – a panel attended by state media, the General Prosecutor’s Office and the Foreign Ministry as Moscow pursues an information war with the West.

Other countries sending officials to attend or speak there via videolink include China, Belarus, Central African Republic, India, Iran, Nicaragua, Serbia and the United Arab Emirates.

Some participants asked their employers’ names not be printed on their personal badges, RBC reported, citing Rosgoncress, the state company organising the forum.

“Money loves silence now as never before,” said Denis Denisov, head of the Russian branch of international advisory firm EM.

($1 = 57.4500 roubles)

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Reporting by Reuters
Editing by Mark Heinrich and Grant McCool

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Dollar stands tall as traders brace for Fed to go large

  • Markets price >90% chance of 75bp Fed hike this week
  • Dollar index hits 20-year peak above 105
  • Yen wallows as BOJ piles in to bond market

SINGAPORE, June 14 (Reuters) – The U.S. dollar stood just below a 20-year peak on Tuesday and just about everything else nursed losses as investors braced for aggressive Federal Reserve rate hikes and a possible recession.

Markets have scrambled to bet on rapid-fire hikes in the wake of an unexpectedly hot inflation reading on Friday. Consecutive 75 basis point rate rises in June and July are close to fully priced, sending shockwaves across asset classes.

The dollar has gained with yields and as investors seek shelter from the storm. The dollar index scaled a two-decade peak of 105.29 on Monday and held near that level in Asia.

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It has hit one-month highs on the euro, Australian dollar, New Zealand dollar, Swiss franc and Canadian dollar and it made a fresh one-month top of $1.0397 per euro on Tuesday, before retreating slightly to $1.0438.

Sterling scraped from a two-year low to $1.2180, but is weighed down as the Fed is seen outpacing the Bank of England, which is expected to deliver a 25 bp hike on Thursday.

Even the Norwegian crown , which has been supported by firm oil prices and a central bank that began hiking last year, touched a two-year low of 9.9295 per dollar in Asia.

“The dollar seems to be the stagflation hedge of choice,” said Bank of Singapore strategist Moh Siong Sim.

“The market is starting to turn a lot more fearful,” he said. “On the inflation front, things do not look good and the Fed needs to respond.”

The Aussie was the best performer throughout the Asia session, attempting a bounce with S&P 500 futures . It was last up 0.5% to $0.6962, though that is still close to May’s trough at $0.6829 and analysts remained cautious.

Nerves about official intervention also gave brief respite to the yen, but it was soon on the back foot after the Bank of Japan expanded a round of bond purchases, knocking the 10-year government bond yield back to its 0.25% cap.

It last traded at 134.55 per dollar after hitting a 24-year low of 135.22 on Monday.

“Given Wednesday may see the Fed go 75bps and flag more, while the BOJ on Friday will only flag more bond buying, JPY is not going to stay at these levels for long. It’s going to get much, much worse,” said Rabobank strategist Michael Every.

FED WATCH

The Fed concludes a two-day meeting on Wednesday and CME’s FedWatch tool shows markets priced for a 96% chance of a 75 basis point hike, which would be the biggest since 1994. read more

Goldman Sachs tips 75 basis point moves at both the June and July meetings and rates at 3.25-3.5% by year end. read more

Futures show expectations of nearly 200 bps of tightening by September and the two-year Treasury yield is up about 50 basis points since Thursday’s close at 3.3091% .

The 10-year yield similar, at 3.3085%, in a signal that investors fear the rapid tightening path will hurt growth and possibly bring on a recession.

“The policy challenge is that the Fed has no idea how much monetary tightening is needed and will only find out it has done too much, long after the event,” said Societe Generale strategist Kit Juckes.

Dollar gains have punished emerging market currencies, and the flight from risky investments has battered cryptocurrencies.

Bitcoin is down 30% in June and came close to dropping below $20,000 in Asia before steadying around $22,000, while ether also tested resistance around $1,000.

India’s rupee hit a record low on Monday.

South Korea’s won touched its lowest level since March 2020 on Tuesday at 1,292.5 per dollar, though it was kept from further losses by official hints at intervention and dealers’ suspicion that authorities were selling dollars.

The Malaysian ringgit , Thai baht and Indonesian rupiah made multi-year lows.

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Currency bid prices at 0640 GMT

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Forex market info from BOJ

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Reporting by Tom Westbrook; Editing by Shri Navaratnam, Richard Pullin and Sam Holmes

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Asian stocks slide as Fed hike fears tip Wall St into bear market

HONG KONG, June 14 (Reuters) – Asian shares slid sharply and the safe-haven dollar held near a two-decade peak on Tuesday after Wall Street hit a confirmed bear market milestone on fears aggressive U.S. interest rate hikes would push the world’s largest economy into recession.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.45% in volatile trade, clawing back some of its earlier losses.

Australia’s benchmark S&P/ASX200 (.AXJO) closed 3.55% lower while Japan’s Nikkei stock index (.N225) was down 1.32%, having fallen as much as 2% earlier in the session.

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The negative tone in Asia followed a bleak U.S. session on Monday, which saw Goldman Sachs forecast a 75 basis point interest rate hike at the Federal Reserve’s next policy meeting on Wednesday. read more

However, investors appeared to be shaking off the gloom heading into European trade with the pan-region Euro Stoxx 50 futures up 0.83%, German DAX futures 0.9% higher and FTSE futures rising 0.62%. U.S. stock futures also added 1.17%.

“While there is clearly a risk from a significant policy tightening, it remains unlikely that there will be a fully fledged recession, with the unemployment rate jumping by two or more percentage points,” said Stephen Koukoulas, managing director at the Canberra-based Market Economics.

“Rather, it is certain growth will slow – which is the aim of the policy tightening – and by late this year, inflation pressures should start to ease.”

In Hong Kong, the Hang Seng Index (.HSI) pared earlier losses to be up 0.26% after trading in negative territory for most of the day. China’s CSI300 Index (.CSI300) retraced some of its lost ground to be off 0.23%.

Expectations for aggressive U.S rate hikes have risen after inflation in the year to May shot up by a sharper than predicted 8.6%.

“The U.S. market is the biggest in the world so when it catches a cold the rest of the world does as well,” said Clara Cheong, global market strategist at JP Morgan Asset Management.

“There will be short-term volatility in Asia but we think in the medium to longer term in Asia ex-Japan, earnings expectations have already been downgraded so there is a relatively brighter outlook here than other parts of the world.”

Cheong said China monetary easing and the re-opening of ASEAN economies from COVID-19 lockdowns could shield the region from some of the financial market fallout.

On Wall Street overnight, fears of a U.S. recession kicked the S&P 500 (.SPX) down 3.88%, while the Nasdaq Composite (.IXIC) lost 4.68%. The Dow Jones Industrial Average (.DJI) fell 2.8%.

The benchmark S&P 500 is now down more than 20% from its most recent record closing high, confirming a bear market, according to a commonly used definition.

Benchmark 10-year Treasury yields hit their highest since 2011 on Monday and a key part of the yield curve inverted for the first time since April as investors braced for the prospect that Fed attempts to stem soaring inflation would dent the economy.

The yield on benchmark 10-year Treasury notes rose to 3.3466% compared with its U.S. close of 3.371% on Monday. The two-year yield , which rises with traders’ expectations of higher Fed fund rates, touched 3.3804% compared with a U.S. close of 3.281%.

In currency markets, the dollar index , which tracks the greenback against a basket of major currencies, was at 104.98, just off a two-decade peak of 105.29 it hit on Monday. read more

Against the Japanese yen, the U.S. currency was at 134.59, just below its recent high of 135.17.

The European single currency rose 0.2% to $1.0432, having lost 2.8% in a month.

Bitcoin fell around 4.5% on Tuesday to $21,416, a fresh 18-month low, extending Monday’s 15% fall as markets were jolted by crypto lender Celsius suspending withdrawals. read more

Oil markets began to recover late in the Asian session with U.S. crude up 0.13% at $121.08 a barrel, having traded down most of Tuesday. Brent crude firmed slightly to $122.42 per barrel.

Gold shrugged off a weaker start with the spot price gaining 0.42% to $1,826.65 per ounce.

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Reporting by Scott Murdoch in Hong Kong; Additional reporting by Alun John; Editing by Sam Holmes

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Oil rises on tight supplies; trade choppy on demand worries

Oil rigs are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo

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  • Unrest halves Libyan oil outputMass COVID testing for Beijing’s Chaoyang district
  • U.S. inflation data heightens fears of further big rate hikes

NEW YORK, June 13 (Reuters) – Oil prices rose on Monday in a session of volatile trade, as tight global supplies outweighed worries that demand would be pressured by a flare-up in COVID-19 cases in Beijing and more interest rate hikes.

Brent crude rose 68 cents to $122.69 a barrel at 12:13 p.m. EDT (1613 GMT). U.S. West Texas Intermediate crude rose 61 cents to $121.28 a barrel. Trade was volatile, with prices down about $3 a barrel earlier.

Oil supplies are tight, with OPEC and allies unable to fully deliver on pledged output increases because of a lack of capacity in many producers, sanctions on Russia, and unrest in Libya that has slashed output. read more

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Oil has surged in 2022 as Russia’s invasion of Ukraine compounded supply concerns and as demand recovered from COVID lockdowns. In March Brent hit $139, the highest since 2008. Last week, both oil benchmarks rose more than 1%.

“We were struggling with the Russian loss (of oil) so now add an exclamation point with the Libyan situation,” said Robert Yawger, executive director of energy futures at Mizuho.

On Saturday, the average price of U.S. gasoline exceeded $5 a gallon for the first time, data from the AAA showed. read more

Prompting demand concerns, Beijing’s most populous district Chaoyang announced three rounds of mass testing to quell a “ferocious” COVID-19 outbreak. read more

“We don’t know what’s going to happen with China. The mood is dour right now,” said Phil Flynn, analyst at Price Futures.

Concern about further rate hikes, heightened by Friday’s U.S. inflation data showing the consumer price index rose 8.6% last month, also pressured oil lower.

Other financial markets fell too, as investors worried the Federal Reserve may tighten policy too aggressively and cause a sharp slowdown. The S&P 500 was on track to confirm a bear market. The next Fed policy decision is on Wednesday. read more

In Europe, Francesco Giavazzi, the closest economic adviser to Italian Prime Minister Mario Draghi, said on Monday that European Central Bank interest rate hikes were not the right way to curb surging price rises. read more

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Reporting by Stephanie Kelly; additional reporting by Alex Lawler, Florence Tan and Mohi Narayan; Editing by Kirsten Donovan
Editing by Bernadette Baum and David Gregorio

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Biden says federal government to fund New Mexico wildfire recovery

SANTA FE, N.M., June 11 (Reuters) – The U.S. federal government will fund New Mexico’s full wildfire response, President Joe Biden said on Saturday speaking from Santa Fe amid anger from survivors over the blaze that was started by federal officials.

“We have a responsibility to help the state recover,” Biden told elected officials and emergency responders at an afternoon briefing from the state’s capital, where he was reviewing efforts to fight the state’s biggest blaze in recorded history.

“Today I’m announcing the federal government’s covering 100% of the cost,” Biden said, though earlier in the day he had said he would need congressional approval for some funding.

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“We will be here for you in response and recovery as long as it takes,” Biden said, adding that he saw an “astounding” amount of the perimeter of the territory that had burned in flight to Santa Fe.

“It looks like a moonscape,” he said.

Driven by drought and wind, the fire has destroyed hundreds of homes in mountains northeast of Santa Fe since two prescribed burns by the U.S. Forest Service (USFS) went out of control in April. read more

Air Force One banked and circled around fire damage in New Mexico, allowing Biden to see burned forest and plumes of smoke from the sky before he landed and greeted the governor and other elected officials who have called for more financial support from the federal government.

Local officials told Biden that they did not currently have sufficient resources to predict weather or assist residents who have been affected.

“Our citizens are tired, angry, and afraid of the future they are facing,” said David Dye, New Mexico Secretary of the Department of Homeland Security and Emergency Management.

‘THIS WAS MAN-MADE’

Tens of thousands of residents have evacuated Indo-Hispano farming villages with twice the national poverty rate, upending fragile economies where residents cut firewood and raise hay to get by.

“This is not a natural disaster, this was man-made by a government entity,” said Ella Arellano, whose family lost hundreds of acres of forest around the village of Holman. “It’s a mess, just a big mess that will take generations to recover from.”

With over 320,000 acres (129,500 hectares) of mountains blackened by the Hermits Peak Calf Canyon Fire – an area about the size of Los Angeles – communities are preparing for mudslides, ash flows and flooding in areas where extreme fire gave forest floors the water absorbency equivalent of asphalt.

So far the Federal Emergency Management Agency (FEMA) has given over $3 million to more than 900 households. But maximum FEMA payouts of around $40,000 for destroyed houses are in some cases not enough to cover the loss of farm equipment that burned alongside homes, which at one house was likely worth hundreds of thousands of dollars.

White House officials did not respond immediately to questions about whether Biden’s pledge of federal support would only cover emergency response or also include compensation for damages.

The blaze is burning along with another in southwest New Mexico that is the second largest in state history, underlining concerns that climate change is intensifying fires that overwhelm firefighters and threaten to eventually destroy most U.S. Southwest forests.

Investigators found that a USFS controlled burn jumped out of bounds on April 6 to start the Hermits Peak Fire. The Calf Canyon Fire was caused by a USFS burn pile of logs and branches on April 19. The two fires merged on April 22.

To prevent fires from spreading, land managers sometimes use controlled burns to reduce small trees, shrubs and other material that fuel wildfires. The U.S. Forest Service has since called for a temporary nationwide halt to the practice while it reviews procedures. [nL2N2XC2KJ]

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Reporting By Andrew Hay in Taos, New Mexico, and Trevor Hunnicutt in Santa Fe; Writing by Michael Martina; Editing by Aurora Ellis

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Under U.S. sanctions, Iran and Venezuela sign 20-year cooperation plan

June 11 (Reuters) – Iran and Venezuela, oil producers grappling with crippling U.S. sanctions, signed a 20-year cooperation plan in Tehran on Saturday, with the Islamic Republic’s supreme leader saying the allies would continue to resist pressure from Washington.

The signing ceremony, carried by Iranian state TV, was overseen by Iranian President Ebrahim Raisi and his Venezuelan counterpart Nicolas Maduro and took place at the Saadabad Palace in north Tehran.

The plan includes cooperation in the fields of oil, petrochemicals, defence, agriculture, tourism, and culture.

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It also includes repair of Venezuelan refineries and the export of technical and engineering services.

“Venezuela has shown exemplary resistance against sanctions and threats from enemies and Imperialists,” Iran’s Raisi said. “The 20-year cooperation document is testimony to the will of the two countries to develop ties.”

“Sanctions and threats against the Iranian nation over the past 40 plus years have been numerous, but the Iranian nation has turned these sanctions into an opportunity for the country’s progress,” he said.

Maduro said through an interpreter that a weekly flight from Caracas to Tehran would begin on July 18.

In a meeting with Maduro, Supreme Leader Ayatollah Ali Khamenei vowed Iran would continue to back Venezuela in the face of U.S. pressures, according to state media.

“The successful experience of the two countries showed that resistance is the only way to deal with these pressures,” Khamenei said. “The two countries have such close ties with no other country, and Iran has shown that it takes risks in times of danger and holds its friends’ hands.”

Maduro said: “You came to our aid when the situation in Venezuela was very difficult and no country was helping us.”

Defying U.S. pressures, Iran has sent several cargos of fuel to Venezuela and helped in refinery repairs. Last month, Venezuela began importing Iranian heavy crude, widening a swap agreement signed last year to exchange Iranian condensate for Venezuelan heavy crude. read more

Maduro arrived in Tehran on Friday with a high-ranking political and economic delegation after visiting Turkey and Algeria.

During the visit, Iran delivered to Venezuela the second of four Aframax-sized oil tankers, with a capacity of 800,000 barrels, ordered from the Iranian company SADRA, state media said. SADRA has been under U.S. sanctions for more than a decade over its links to Iran’s elite Revolutionary Guards.

In May, Iran’s state-owned National Iranian Oil Engineering and Construction Co signed a contract worth about 110 million euros to repair Venezuela’s smaller 146,000 barrel-per-day refinery.

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Reporting by Dubai Newsroom; Editing by Jason Neely, Angus MacSwan and Diane Craft

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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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Facing record inflation, Biden chides Exxon, oil companies for profits

U.S. President Joe Biden speaks during the opening plenary session at the Ninth Summit of the Americas in Los Angeles, California, U.S., June 9, 2022. REUTERS/Daniel Becerril

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LOS ANGELES, June 10 (Reuters) – U.S. President Joe Biden on Friday accused the U.S. oil industry, and Exxon Mobil Corp (XOM.N) in particular, of capitalizing on a supply shortage to fatten profits after a report showed inflation surging to a new 40-year record.

U.S. consumer inflation accelerated in May as gasoline prices hit a record high and the cost of food soared, leading to the largest annual increase in four decades. A gallon of regular gasoline cost an average $4.99 nationwide on Friday, according to motorist group AAA.

Biden, who came into office vowing to reduce U.S. dependence on fossil fuels, said on Friday he was hoping to speed up oil production, which is expected to hit record highs in the United States next year.

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But he also issued a warning to the industry, whose profits have jumped with oil and gas prices, pointing to the gains as evidence consumers are paying for more than higher labor and shipping costs.

“Exxon made more money than God this year,” Biden told reporters following a speech to dockworker union representatives at the Port of Los Angeles. U.S. oil companies are not using higher profits to drill more but to buy back stock, he added.

Share buybacks improve earnings per share by reducing the number of shares outstanding, indirectly helping to boost share prices. Companies see buybacks as a way to reward investors.

“Why aren’t they drilling? Because they make more money not producing more oil,” Biden said. “Exxon, start investing and start paying your taxes.”

Exxon pushed back at the comments, noting it has continued to increase its U.S. oil, gasoline and diesel production, and had borrowed heavily to increase output while suffering losses in 2020.

“We have been in regular contact with the administration, informing them of our planned investments to increase production and expand refining capacity in the United States,” said spokesman Casey Norton.

Exxon will hike spending 50% in its West Texas shale holdings, he said, where it expects to add 25% more output this year after adding 190,000 barrels to oil production last year. An ongoing Texas refinery expansion will add the equivalent of a “new medium sized refinery,” said Norton.

Exxon, the largest U.S. oil producer, lost some $20 billion in 2020, and had borrowed more than $30 billion to finance operations. It paid $40.6 billion in taxes last year, $17.8 billion more than in 2020, he said.

The president spoke during a visit to the Port of Los Angeles, where he defended his economic and job creation record and deflected blame for inflation, which spiked 8.6% in the year to May according to a new Labor Department report.

In a Democratic campaign fundraising event in Beverly Hills that evening, Biden sounded a cautious tone about the prospects for inflation going forward: “We’re gonna live with this inflation for a while,” he said. “It’s gonna come down gradually, but we’re going to live with it for a while.”

Biden earlier had chided U.S. oil, gas and refining industries for using “the challenge created by the war in Ukraine as a reason to make things worse for families with excessive profit-taking or price hikes.”

Exxon posted its biggest quarterly profit in seven years when it reported fourth-quarter earnings in February. After halting share buybacks several years ago, it resumed them this year and pledged to spend up to $30 billion through next year.

Numerous companies have said they are holding down spending that could boost oil output to lower $100-plus per barrel oil prices, because that is what investors are demanding. read more

The surging costs have become a political headache for the Biden administration, which has tried several measures to lower prices. These include a record release of barrels from U.S. strategic reserves, waivers on rules related to the production of summer gasoline, and leaning on major OPEC countries to boost output.

Biden in his Friday remarks urged Congress to pass legislation to cut energy, prescription drugs and shipping costs.

Shipping companies made $190 billion in profit, a seven-fold increase in one year, Biden said at the port. The situation made him so “viscerally angry” that he wanted to “pop them,” he said.

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Reporting by David Gaffen in New York, Kanishka Singh in Washington; editing by Heather Timmons, John Stonestreet, Richard Chang and Kim Coghill

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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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