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Business News

FedEx to fold Canada contractor-based Ground unit into Express

by Reuters June 20, 2023
By Reuters

By Lisa Baertlein

LOS ANGELES (Reuters) – FedEx on Tuesday said it will merge its contractor-based Ground delivery operations in Canada into its company-operated Express unit and convert contractors into employees.

The move, set to be phased in starting in April 2024, comes as the global delivery company is revamping its business to boost profits and better compete with rivals like United Parcel Service, Amazon.com and regional delivery firms.

Combining the Canadian delivery operations would yield an annualized cost savings of more than $100 million upon completion in fiscal 2025, FedEx CEO Raj Subramaniam said on an earnings call with investors.

FedEx made a similar change in the U.S. states of Alaska and Hawaii last year.

Still, the company said there will be U.S. markets where packages shift from Express to Ground, its outsourced delivery arm. In those cases, the company said it would continue to use delivery contractors as part of its “hybrid” worker model.

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Memphis, Tennessee-based FedEx in April said it planned to combine the two delivery units to reduce costs and streamline service. Rival UPS, known for tightly controlling expenses, operates just one delivery network.

FedEx’s effort to combine operations is part of a wider effort to slash $4 billion in costs by the end of its 2025 financial year. FedEx announced that cost-cutting plan in June 2022, about two weeks after activist investor D.E. Shaw won two additional board seats.

(Reporting by Lisa Baertlein in Los Angeles; Editing by Leslie Adler, Lisa Shumaker and Chris Reese)

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Business News

UK pay settlements hold at record 6% – XpertHR

by Reuters June 20, 2023
By Reuters

LONDON (Reuters) – Pay awards by British employers remained the highest in more than 30 years in the three months to May, keeping pressure on the Bank of England which looks set to raise interest rates again on Thursday in a bid to tame high inflation.

Human resources data firm XpertHR said the median basic pay settlement in the three months to the end of May remained at 6%, matching the record increases seen in the five rolling quarters before but well below inflation which stood at 8.7% in April.

XpertHR has been tracking settlements since 1991.

Wednesday’s data includes pay awards agreed in April, a key month for pay deals between employers and workers.

“Although inflation is beginning to fall as we enter the second half of this year, it still lies far ahead of pay rises, meaning employees will remain grappling with the effects of a real-terms pay cut,” Sheila Attwood, senior content manager at XpertHR, said.

Consumer price inflation data for May is due to be published at 0600 GMT on Wednesday. Economists polled by Reuters expect the pace of prices rises to have eased to 8.4%.

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The BoE is concerned that price rises could be harder to tame if pay deals keep growing. It is expected to increase Bank Rate by a quarter percentage point to 4.75% on Thursday, its 13th hike in a row.

Official labour market figures last week showed stronger-than-expected wage growth in April.

XpertHR said employers continued to report skills shortages and issues with staff retention, despite some signs of easing labour market conditions.

(Reporting by Suban Abdulla; Editing by William Schomberg)

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Japan big manufacturers’ sentiment positive for 3rd consecutive month -Reuters tankan poll

by Reuters June 20, 2023
By Reuters

By Tetsushi Kajimoto

TOKYO (Reuters) – Business morale at big Japanese manufacturers edged up in June, staying in positive territory for a second straight month and reflecting a post-COVID economic recovery though uncertainty remains high amid slowing global growth, a Reuters poll showed.

Underlining the prospects for a service sector-led recovery, the non-manufacturers’ index hovered near this year’s high, the Reuters Tankan poll showed on Wednesday, bolstering the view that strong domestic demand may offset an export slowdown – a rare thing that would happen to export-reliant Japanese economy.

The monthly poll suggested there would be a steady recovery in business sentiment in the Bank of Japan’s (BOJ) closely watched tankan quarterly survey due next on July 3.

The Reuters poll found manufacturers’ mood was expected to rise over the coming three months, and service-sector morale would hover above +20.

In the Reuters poll of 493 large companies, of which 232 responded on condition of anonymity, many firms cited the post-COVID rebound in demand as a positive factor, while risks stemmed from overseas economies.

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“We can expect a recovery in consumption and inbound demand as the coronavirus pandemic has calmed down,” a manager of a paper/pulp firm wrote in the survey, noting that business conditions had turned for the better.

“A prolonged war in Ukraine and intensifying trade frictions between Japan and China have curbed capital expenditures at our clients while competition has heated up with overseas rivals,” wrote a machinery maker’s manager, who called business conditions “not so good.”

The sentiment index for manufacturers stood at +8, up 2 points from the previous month, led by textiles/papers, oil refinery/ceramics, food processing and auto industry, according to the survey, conducted from June 7-16.

The manufacturers’ index was up 11 points compared with three months ago. The index is expected to rise to +13 in September.

The service-sector index slipped one point from May to +24 in June, led by information/communications and transport/utilities.

Compared with three months ago, the service-sector index was up three points. The index is expected to drop two points to +22 in September.

The Reuters Tankan indexes are calculated by subtracting the percentage of pessimistic respondents from optimistic ones. A negative figure means pessimists outnumber optimists.

(Reporting by Tetsushi Kajimoto. Editing by Gerry Doyle)

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Analysis-China moves to shut a lifeline for cash-strapped local governments

by Reuters June 20, 2023
By Reuters

By Jason Xue and Tom Westbrook

SHANGHAI/SINGAPORE (Reuters) – Pressure is mounting on China’s cash-strapped local governments as authorities move to shut a private funding route for their financing arms, according to planned new rules and people familiar with their aims, raising credit risks and default worries.

Beijing has been tightening rules on local government borrowing for years, curbing access to bank loans and bonds and driving their financing vehicles deeper into private markets to raise money.

One such channel, where fund managers have been selling largely illiquid high-yielding debts from local government financing units, is the next to be shut off.

The move is the newest effort at reining in the sector’s $9.5 trillion in debt, but comes with Beijing relying on its spending to help a sputtering economy and raises risks in what analysts have dubbed the “black hole” of China’s finances.

Technical changes published in draft rules by the Asset Management Association of China (AMAC) in late April with major industry ramifications show private funds would be barred from investing more than 25% of their net assets in a single bond, or receiving middleman commissions from issuers.

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The draft from the self-regulating association of fund managers said the new rules were designed to better regulate operation of China’s private funds, whose products typically require minimum investments of 1 million yuan ($140,000).

AMAC did not respond immediately to a request for comment to provide more details including an expected date for a final decision.

But market participants said the rules appear aimed specifically at a popular structure for bond fund managers to funnel cash to local government financing vehicles (LGFVs).

“Such measures are well-intended … but could worsen LGFVs’ credit environment,” said Zhu Yangmo, partner of bond-focused Shan Ze Fund Management Co, whose funds invest in high-yield corporate bonds using fundamental analysis.

“That’s why we’re getting more and more cautious toward LGFV bonds … as default risks in fiscally weak regions rise.”

Zhu estimates a quarter of China’s roughly 270 high-yield bond focused private fund companies could be helping LGFVs raise money by structuring special funds worth about $7 billion.

Under AMAC’s new rules, “such fund managers could hardly survive unless they transform their business model,” she said.

LGFVs, meanwhile, set up by local governments to fund infrastructure investment, are already struggling to meet repayment obligations in a slowing economy as sluggish land sales weighed on municipalities’ income and balance sheets.

The squeeze leaves authorities walking a tightrope as they try to whittle back debts that the International Monetary Fund says totals $9.5 trillion, without triggering a collapse or credit crunch with wide-ranging economic and market fallout as restructurings and defaults in the private market begin to mount.

“We believe credit amongst LGFVs remains challenged, and negative news could lead to a repricing of tail risks,” Goldman Sachs analysts said.

CREATIVE REFINANCING

Local governments’ debts have long been a nagging risk to financial stability, though deep concern has mostly been staved off by LGFVs ability to creatively refinance despite tightening regulations. Private funds have been one such channel.

Private funds are registered at AMAC, so “on the surface, look completely legitimate,” said a bond fund manager who declined to be identified due to sensitivity of the topic.

But, he said, instead of buying a diversified portfolio, many funnel money into single LGFV bonds, typically earning underwriting fees in addition to management fees, a conflict of interest and a structure with high exposure to credit risks.

One such product currently on sale is launched by Shanghai Ling Jing Investment, which invests solely in a bond issued by Shouguang City Construction Investment Development, an LGFV in Shandong yields 7.5% over two years. The yield on China’s two-year sovereign bonds is 2.2%.

“Ensuring issuance and repayment of LGFV bonds is one of the most important tasks for local governments,” according to the sales pitch, which sails close to Beijing’s edict that LGFVs cannot raise money relying on implicit government guarantees.

To be sure, there are other fundraising channels, such as a previously quiet corner of an offshore bond market in Shanghai that has recently lit up with LGFV issuance, and investors expect local authorities to keep finding ways to pay their debts.

But the impending push shows regulators’ determination to rein debts is unwavering and it adds to pressure and risk.

“Regulators are seeking to shield individuals from LGFV debt risks, because footing the bill is very painful for such investors, and could be beyond their ability,” said Yao Yu, founder of credit analysis firm Ratingdog.

“If you stop such financing, you go belly up. But if you keep borrowing through such channels, you will not end well either,” Yu said.

And for investors, there are already problems. One, who gave only his family name of Jiang, said he and his relatives invested several million yuan into an investment product with an 8% yield sold by Gaomi Urban Construction Investment Group, another Shandong LGFV, and are fighting to get their overdue principal back after a default.

“We were told getting money back is a matter of time, as such LGFVs indeed have no money to repay debts.”

($1 = 7.1763 Chinese yuan renminbi)

(Reporting by Jason Xue and Samuel Shen in Shanghai and Tom Westbrook in Singapore; Editing by Jamie Freed)

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Raytheon gets $1.15 billion missile contract from US Air Force

by Reuters June 20, 2023
By Reuters

(Reuters) -Raytheon Technologies said on Tuesday it has received a $1.15 billion contract from the U.S. Air Force for its AIM-120 D-3 and C-8 AMRAAM (Advanced Medium Range Air-to-Air Missiles).

Defense budgets have ballooned as the West rushes arms to Ukraine and beefs up funding for future development programs. In recent years, the U.S. Congress has increased defense spending by more than any president requests, generally by tens of billions of dollars.

The contract, which provides missiles to both the U.S. Air Force and Navy, will also supply AMRAAM to 18 countries, including Ukraine.

This comes a day after the defense contractor was awarded a $264 million modification contract from the U.S. Navy to produce and deliver 571 short-range AIM-9X Sidewinder missiles.

(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)

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US and World News

North Korea criticises Blinken’s China visit as ‘begging trip’

by Reuters June 20, 2023
By Reuters

SEOUL (Reuters) – North Korea on Wednesday criticised U.S. Secretary of State Anthony Blinken’s recent visit to Beijing as a “begging trip” to ease tensions in what it called a policy failure to pressure China.

At one of the most significant U.S.-China exchanges since U.S. President Joe Biden took office, Blinken and Chinese President Xi Jinping met on Monday and agreed to stabilise their intense rivalry so it did not veer into conflict.

Blinken said after the meeting on Monday that he urged China to encourage North Korea to stop launching missiles as Beijing holds a “unique position” to press Pyongyang to engage in dialogue.

In a commentary carried by the North’s KCNA news agency, Jong Yong Hak, whom it described as an international affairs analyst, said the rare visit was aimed at begging for the relaxation of tensions as the “attempt to press and restrain China may become a boomerang striking a fatal blow to the U.S. economy.”

“In a word, the U.S. state secretary’s recent junket can never be judged otherwise than a disgraceful begging trip of the provoker admitting the failure of the policy of putting pressure on China,” the commentary said.

The commentary said the United States was responsible for escalating regional tensions with “anti-China complexes,” such as the QUAD grouping with Japan, India and Australia and the AUKUS pact with Britain and Australia.

“It is the height of the double-dealing and impudence peculiar to the U.S. to provoke first and then talk about the so-called ‘responsible control over divergence of opinion,'” the commentary said.

Daniel Kritenbrink, the U.S. assistant secretary of state for East Asian and Pacific Affairs who was also on the Beijing trip, is expected to visit South Korea on Wednesday to brief Seoul officials on the two days of talks in China, South Korea’s Yonhap news agency reported.

(Reporting by Soo-hyang Choi; Editing by Sonali Paul)

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Brazil watchdog offers plea deals to Americanas employees in fraud probe

by Reuters June 20, 2023
By Reuters

SAO PAULO (Reuters) – The president of Brazil’s securities watchdog CVM on Tuesday urged employees from Americanas with information about the retailer’s alleged multi-billion-dollar fraud to give testimony in exchange for potential plea deals.

“I would like to encourage you to collaborate with the CVM, because (those involved) will certainly be identified,” CVM chief Joao Pedro Barroso do Nascimento told a congressional committee.

Americanas last week admitted to a large-scale accounting fraud with current top managers slamming former executive, banks and auditors for their alleged involvement in “fraudulently altered” financial statements.

Americanas filed for bankruptcy protection in January after uncovering an over $4 billion accounting scandal. The report issued on Tuesday accused ex-CEO Miguel Gutierrez and half a dozen other former executives and employees of committing fraud.

Federal police, as well as CVM and other institutions, are investigating the case.

(Reporting by Patricia Vilas Boas; Writing by Carolina Pulice; Editing by Sarah Morland and Aurora Ellis)

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South Korea ordered to pay Elliott about $109 million total over 2015 Samsung merger

by Reuters June 20, 2023
By Reuters

By Joyce Lee

SEOUL (Reuters) -The South Korean government has been ordered to pay hedge fund Elliott about $108.5 million, Elliott and the Ministry of Justice said on Tuesday, in an dispute settlement case stemming from the 2015 merger of two Samsung affiliates.

The tribunal at the Permanent Court of Arbitration in The Hague partly accepted Elliott Investment Management’s claim for about $770 million, after the U.S. activist fund sued the South Korean government for the state-run National Pension Service’s (NPS) role in approving the $8 billion merger between Cheil Industries and Samsung C&T.

Elliott was a minority stakeholder in Samsung C&T and opposed the deal, deeming the terms of the merger unduly unfavourable to the company.

The NPS, which approved the merger, held a larger stake in Samsung C&T and was viewed as a casting vote.

In 2022, South Korea’s Supreme Court confirmed a jail sentence for Moon Hyung-pyo, a former health and welfare minister, for pressuring the NPS into approving the merger in connection with a corruption scandal involving former South Korean President Park Geun-hye, who was removed from office.

The arbitration tribunal ordered the South Korean government to pay Elliott about $53.6 million in damages, plus delayed interest, as well as $28.9 million in legal fees, the justice ministry said, without elaborating.

The ministry said it would announce its future plans later. Elliott welcomed the decision in a statement, and urged South Korea to “pay the ultimate award rather than pursue baseless legal proceedings to challenge the Tribunal’s decision”.

(Reporting by Joyce Lee; Editing by Sandra Maler)

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US and World News

Georgia-Pacific may maintain bankruptcy pause on lawsuits, court rules

by Reuters June 20, 2023
By Reuters

By Dietrich Knauth

(Reuters) – Georgia-Pacific can avoid litigating tens of thousands of asbestos lawsuits while its subsidiary Bestwall remains in bankruptcy, an appeals court ruled Tuesday.

In a 2-1 decision, the 4th U.S. Circuit Court of Appeals ruled that extending bankruptcy’s so-called “automatic stay” to protect Georgia-Pacific, which is not bankrupt, would give Bestwall a better chance to reorganize in bankruptcy.

Circuit Judge Steven Agee, writing for the 4th Circuit majority, largely blamed plaintiffs’ lawyers for the fact that the “temporary” litigation pause had been extended for years, saying that they had “relentlessly attempted to circumvent the bankruptcy proceeding” rather than settling their asbestos claims in Bestwall’s bankruptcy.

In a dissenting opinion, Circuit Judge Robert King said the bankruptcy court should not have stopped litigation against Georgia-Pacific, which is one of the world’s largest manufacturing firms and which is fully capable of defending itself against lawsuits outside of bankruptcy.

Bestwall’s bankruptcy filing was “little more than a corporate shell game” meant to protect Georgia-Pacific from lawsuits without subjecting the entire company to the oversight of a bankruptcy court, King wrote.

A Georgia Pacific spokesman declined to comment on Tuesday.

The bankruptcy case began in 2017, when Georgia-Pacific, a unit of industrial conglomerate Koch Industries, spun off its liabilities for asbestos litigation into Bestwall, its newly created subsidiary, which then filed for bankruptcy. At the time of the filing, the companies faced 64,000 asbestos lawsuits, many of them alleging that their plaster construction products contained asbestos and caused cancer.

The controversial maneuver, known as a Texas two-step, has been used by other companies, including Johnson & Johnson, which have attempted to address their mass tort liabilities through the bankruptcy of a subsidiary.

Some of the companies that emulated Georgia-Pacific’s bankruptcy strategy have suffered setbacks in recent court rulings. Subsidiaries of Johnson & Johnson and 3M were tossed out of bankruptcy earlier this year when courts found that the companies were not in the type of financial distress that would entitle them to bankruptcy protection. 3M’s subsidiary is appealing the dismissal of its bankruptcy case, and J&J’s subsidiary has filed for bankruptcy a second time.

Plaintiffs’ lawyers have seized on those court rulings to ask the North Carolina bankruptcy court overseeing Bestwall’s Chapter 11 proceedings to dismiss it. U.S. Bankruptcy Judge Laura Beyer has not yet ruled on that motion.

Clay Thompson, an attorney who represents plaintiffs in the Bestwall bankruptcy, said that he believed that the plaintiffs would prevail in the broader battle over whether Bestwall should remain in bankruptcy.

“We are disappointed with the ruling but the larger issue, not yet addressed, is whether a fully solvent billionaire, like Georgia-Pacific, can derive all the benefits of bankruptcy while taking on none of the burdens,” Thompson said.

Georgia-Pacific produces a wide range of well-known paper-based household goods, including Quilted Northern bath tissue, Brawny paper towels, and Dixie cups.

Before Bestwall’s bankruptcy filing, Georgia-Pacific and Bestwall spent $2.9 billion defending more than 430,000 asbestos-related personal injury lawsuits over 40 years, according to Bestwall’s court filings.

The case is In re: Bestwall LLC, U.S. Court of Appeals for the 4th Circuit, Nos. 22-1127 and 22-1135

For Bestwall: Noel Francisco of Jones Day

For Bestwall’s future claims representative and official committee of asbestos claimants: Natalie Ramsey of Robinson & Cole; and Edwin Harron of Young Conaway Stargatt & Taylor

Read more:

How a bankruptcy ‘innovation’ halted thousands of lawsuits from sick plaintiffs

Corporate lawsuit dodge imperiled after court rejects J&J bankruptcy tactic

Cancer patient asks court to end Georgia-Pacific asbestos bankruptcy

(Reporting by Dietrich Knauth)

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US and World News

Thousands march in Colombia against Petro’s reforms

by Reuters June 20, 2023
By Reuters

BOGOTA (Reuters) – Thousands of anti-government demonstrators marched through Colombia’s major cities on Tuesday to protest the economic and social reforms pushed by the government of leftist President Gustavo Petro.

Petro, who took office last August as Colombia’s first left-wing president, won election on promises to cut poverty and inequality and also roll out a policy of “total peace” to end the country’s almost six decades of armed conflict which has killed at least 450,000 people.

Petro is facing an uphill battle in Congress to push labor, health, and pension reforms after his majority coalition disintegrated due to the government’s refusal to make changes to the proposals.

The protests were the opposition’s response to marches that Petro called earlier this month, where he asked Congress to approve his proposed reforms.

Opponents to Petro’s pension reforms argue they could negatively impact Colombia’s finances and hurt job creation.

A crowd of some 5,000 people marched through capital Bogota on Tuesday according to local authorities, where some protesters carried banners emblazoned with slogans such as “No more Petro” and “Petro out.”

“This is a manifestation of popular discontent because you cannot destroy what has been done in more than 50 years and worse still, with resentment,” economist Yesid Garzon said in Bogota while protesting.

Peaceful protests also took place in cities including Medellin, Cali, Barranquilla and Bucaramanga, according to police.

“Our greatest duty is to protect them, so that nothing happens to any protester. That’s the expression of the spirit of democracy, that people can express what they want … against the same government without anything untoward happening,” Petro said during a police ceremony earlier on Tuesday.

Petro has recently been caught up in a scandal over accusations of alleged illegal financing during his election campaign, which he denies.

The president’s approval fell to 33.8% in May, from 50% in November, while his disapproval rating rose to 59.4% from 43%, according to a recent survey by polling company Inmaver.

(Reporting by Herbert Villarraga and Luis Jaime Acosta; Writing by Oliver Griffin, Editing by Alistair Bell)

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Biden says risks posed by AI to security, economy need addressing

by Reuters June 20, 2023
By Reuters

By Trevor Hunnicutt and Kanishka Singh

SAN FRANCISCO (Reuters) -The risks of artificial intelligence to national security and the economy need to be addressed, U.S. President Joe Biden said on Tuesday, adding he would seek expert advice.

“My administration is committed to safeguarding Americans’ rights and safety while protecting privacy, to addressing bias and misinformation, to making sure AI systems are safe before they are released,” Biden said at an event in San Francisco.

Biden met a group of civil society leaders and advocates, who have previously criticized the influence of major tech companies, to discuss artificial intelligence.

“I wanted to hear directly from the experts,” he said.

Several governments are considering how to mitigate the dangers of the emerging technology, which has experienced a boom in investment and consumer popularity in recent months after the release of OpenAI’s ChatGPT.

Biden’s meeting on Tuesday included Tristan Harris, executive director of the Center for Humane Technology, Algorithmic Justice League founder Joy Buolamwini and Stanford University Professor Rob Reich.

Regulators globally have been scrambling to draw up rules governing the use of generative AI, which can create text and images, and whose impact has been compared to that of the internet.

Biden has also recently discussed the issue of AI with other world leaders, including British Prime Minister Rishi Sunak whose government will later this year hold a first global summit on artificial intelligence safety. Biden is expected to discuss the topic with Indian Prime Minister Narendra Modi during his ongoing U.S. visit.

European Union lawmakers agreed last week to changes in draft rules on artificial intelligence proposed by the European Commission in a bid to set a global standard for a technology used on everything from automated factories to self-driving cars to chatbots.

(Reporting by Trevor Hunnicutt in San FranciscoWriting by Kanishka SinghEditing by Chris Reese, Alistair Bell and Matthew Lewis)

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Indicted US Representative George Santos cannot keep bail guarantors anonymous

by Reuters June 20, 2023
By Reuters

By Jonathan Stempel

NEW YORK (Reuters) – The two people who guaranteed George Santos’ bail will have their names publicly revealed, a federal judge ruled on Tuesday as she rejected the indicted U.S. representative’s claim that disclosure could threaten the guarantors’ safety.

U.S. District Judge Joanna Seybert in Central Islip, New York, said the names will be made public on Thursday at noon EDT (1600 GMT).

The judge said Santos may in the meantime try to modify the terms of his release if his guarantors, who he has suggested were family members, withdraw their $500,000 bail guarantee.

Santos, 34, has expressed a willingness to go to jail rather than release the names.

The first-term congressman has pleaded not guilty to a 13-count indictment accusing him of fraud, money laundering and theft of public funds.

Joseph Murray, a lawyer for Santos, did not immediately respond to requests for comment.

Santos had been appealing a June 6 ruling by a federal magistrate judge to identify the guarantors.

At least 11 media organizations had sought the names, citing the public interest.

According to a court filing, the House of Representatives’ Ethics Committee also wanted the names, to determine whether Santos violated that chamber’s rules on gifts.

Murray has said Santos and his staff had been subjected to a “media frenzy and hateful attacks” since Santos’ indictment became public on May 9, and it was “reasonable” to believe his bail guarantors might face the same treatment.

Following his election, Santos drew much criticism, including bipartisan calls that he resign, after reports that he had lied about much of his personal and professional background. He has since admitted to fabricating large parts of his resume.

(Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis)

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Colombia will export fossil fuels for a long time -finance minister

by Reuters June 20, 2023
By Reuters

By Rodrigo Campos and Nelson Bocanegra

NEW YORK (Reuters) – Colombia will continue to extract fossil fuels for “much longer” until it has other exports to replace that revenue, while considering diversifying its financing with carbon credits and green bonds, Finance Minister Ricardo Bonilla said on Tuesday.

Oil and coal are the South American nation’s two main sources of revenue via exports, royalties, and tax collection.

Investors were concerned when President Gustavo Petro came to power in August aiming to decouple the economy from fossil fuels and make way for renewable energy, which drove the local peso to a record low against the dollar in November.

Bonilla said the switch to renewable energy would be a lengthy process.

“The energy transition is going to take 15 to 20 years and we are going to continue exporting oil and coal for much longer,” Bonilla told Reuters.

The minister was fresh off a meeting in New York with investors, whose main concern was assurances around fossil fuel revenues.

“The most important issue is how we closed the discussion on oil exploration and exploitation, which was to show the map of where the exploration fields are in Colombia, (and) the current contracts,” added the official, who was appointed in late April as Petro’s second finance minister in less than eight months.

Bonilla specified that the country currently has 202 hydrocarbon exploration contracts in an area of about 17 million hectares in places where oil or gas has traditionally been found.

He added that Colombia has proven reserves of seven years, “but with some contingencies that oil could go up to 10 years and gas up to 20 years.”

Bonilla, who was also scheduled to meet with credit rating agencies, said the country seeks to diversify its sources of financing by issuing carbon credits focused on combating deforestation, green bonds that help finance projects that restore the environment and recover water sources, as well as social bonds to reduce poverty and inequality.

(Reporting by Rodrigo Campos and Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Chris Reese and Sonali Paul)

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Cuban officials return from Russia with promises of oil, renewed tourism

by Reuters June 20, 2023
By Reuters

HAVANA (Reuters) – A delegation of high-level Cuban officials wrapped up an extended visit to Russia, according to state-run media reports on Tuesday, following up on the nearly 30 trade agreements signed between the allies in Havana in May.

Longtime political allies Cuba and Russia – both subject to U.S. sanctions – have sharply increased economic ties by facilitating trade and investment to circumvent those restrictions.

The 11-day trip by Cuban Prime Minister Manuel Marrero and Foreign Vice Minister Gerardo Penalver came on the heels of a trade forum in May in which the allies agreed to work together to boost Cuba´s sugar and rum exports, assure coveted wheat and crude oil supply to the Communist-run island and overhaul crumbling tourist facilities.

“We must look for new avenues to carry out our economic relations outside the scope of … the (U.S.) dollar, which is giving way more and more to a multipolar world, and where other actors such as China, India and Russia acquire greater relevance,” Penalver told state-run media outlet CubaDebate upon returning to Havana.

Marrero met with his Russian counterpart Mikhail Mishustin as well as with Russian President Vladimir Putin in Moscow.

Communist-run Cuba has been under a wide-reaching U.S. trade embargo since shortly after Fidel Castro´s 1959 revolution. Those restrictions, reinforced by then-U.S. President Donald Trump, have contributed to a nearly unprecedented economic crisis that has led to shortages of food, fuel and medicine.

Russia is ready to supply Cuba with 1.64 million tonnes of oil and oil products annually, Russian news agencies reported last week, citing Marrero.

Fuel, especially, has been in short supply in Cuba since March, forcing the government to ration and prompting day´s long queues for gasoline, further crippling the economy.

Penalver said the second half of 2023 would see Russian airline Aeroflot renew flights to the island and bring 1,200 employees of Russian state-run oil firm Rosneft to relax and receive medical check-ups.

(Reporting by Dave Sherwood in Havana; Editing by Lisa Shumaker)

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Peru’s former prime minister detained on conspiracy charges

by Reuters June 20, 2023
By Reuters

LIMA (Reuters) – Peruvian police arrested an ex-prime minister on Tuesday for allegedly conspiring against the state and joining an attempted “coup” by ousted former President Pedro Castillo, in the latest criminal case targeting a politician in the country.

Former Prime Minister Betssy Chavez was detained at her home in the southern city of Tacna following a court order, according to local television, more than six months after the leftist Castillo was arrested and jailed on rebellion charges.

Chavez, a former legislator, and other former ministers of Castillo’s 17-month-old government are also being investigated as co-conspirators for the crime of fomenting rebellion.

The charges stem from Castillo’s announcement last December that he would dissolve Congress and rule by decree just ahead of an effort by lawmakers to vote him out of office. Peru’s opposition-led Congress rapidly ousted Castillo and police subsequently arrested him.

Castillo’s removal sparked months of angry and sometimes violent protests that left over 60 people dead, largely from indigenous groups. The current government led by President Dina Boluarte, Castillo’s former vice president, has denied it committed abuses during the protests while pledging cooperation with the investigations.

A criminal chamber of Peru’s Supreme Court issued the arrest warrant for Chavez, the court said on Twitter, while prosecutors filed a request for 18 months of preventative imprisonment.

A lawyer and fierce defender of Castillo, Chavez has repeatedly denied participating in or having knowledge of the alleged coup attempt, as have other former ministers who are also under investigation.

(Reporting by Marco Aquino; Writing by Sarah Morland; Editing by David Alire Garcia and Sandra Maler)

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US to boost biofuel mandates over next 3 years, but not for ethanol -sources

by Reuters June 20, 2023
By Reuters

By Stephanie Kelly and Jarrett Renshaw

NEW YORK (Reuters) -The Biden administration plans to increase the amount of biofuels that oil refiners must blend into the nation’s fuel mix over the next three years, but the plan includes lower mandates for corn-based ethanol than it had initially proposed, two sources familiar with the matter told Reuters.

The U.S. Environmental Protection Agency plans to finalize biofuel blending volumes at 20.94 billion gallons in 2023, 21.54 billion gallons in 2024 and 22.33 billion gallons in 2025, the sources said. That compares with the initial proposal announced in December of 20.82 billion in 2023, 21.87 billion in 2024, and 22.68 billion in 2025.

But the finalized volumes include just 15 billion gallons of conventional biofuels like corn-based ethanol in all three years, plus a 250 million-gallon supplemental amount for 2023, the sources said. That represents a decline from the initial proposal, which included 15 billion gallons of conventional biofuels in 2023 and 15.25 billion in both 2024 and 2025.

The cut to ethanol drew consternation from the biofuels industry.

“If the reports are accurate, EPA’s decision to lower its ambitions for conventional biofuels runs counter to the direction set by Congress and will needlessly slow progress toward this administration’s climate goals,” said Emily Skor, CEO of biofuels trade association Growth Energy.

The EPA is expected to announce the final rule on Wednesday

The agency did not immediately respond to a request for comment.

The final rule marks a new phase in the U.S. Renewable Fuel Standard program, which is more than a decade old and frequently pits the powerful oil and biofuel industries against each other. Under the RFS, oil refiners must blend billions of gallons of biofuels into the nation’s fuel mix, or buy tradable credits from those that do.

Ethanol producers and corn farmers like the mandates because they provide a market for their products, while the oil industry finds the requirements too pricey.

While Congress set out specific goals for the program through 2022, the law expands the EPA’s authority for 2023 and beyond to change the way the RFS is administered.

Renewable fuel (D6) credits fell after the news on Tuesday, trading at $1.425 each versus $1.46 earlier in the session.

EPA ABANDONS EV SCHEME

The final rule will not include a much-anticipated pathway for electric vehicle manufacturers to generate lucrative credits under the RFS, though it was included in the original proposal in December. Reuters previously reported that the administration was planning to abandon the scheme over worries about lawsuits.

The plan would have given EV automakers, such as Tesla, credits for charging vehicles using power generated from renewable natural gas, or methane collected from sources such as cattle or land fills.

Because the EPA removed the EV plan, the agency had to exclude in the final rule volumes previously apportioned to the scheme, including an expected 600 million credits generated by EV manufacturers in 2024 and 1.2 billion by 2025.

Category 2023 2023 Final 2024 2024 Final 2025 2025 Final

Proposed Proposed Proposed

(bln

gallons)

Cellulosic 0.72 0.84 1.42 1.09 2.13 1.38

biofuel

Biomass-ba 2.82 2.82 2.89 3.04 2.95 3.35

sed diesel

Advanced 5.82 5.94 6.62 6.54 7.43 7.33

biofuel

Non-cellul 5.10 5.10 5.20 5.45 5.30 5.95

osic

advanced

Convention 15.0 15.0 15.25 15.0 15.25 15.0

al

Total 20.82 20.94 21.87 21.54 22.68 22.33

renewable

fuel

Supplement 0.25 0.25 N/A N/A N/A N/A

al

Standard

*units are

bln

gallons

(Reporting by Stephanie Kelly in New York and Jarrett Renshaw in PhiladelphiaEditing by Matthew Lewis)

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IMF sees Zambia agreement with official creditors ‘within a few days’

by Reuters June 20, 2023
By Reuters

NEW YORK (Reuters) – The International Monetary Fund is encouraged by the progress in discussions between Zambia and its official creditors, and an agreement could be reached “within a few days,” the fund said in a statement on Tuesday.

“We are very encouraged by the significant progress being made in discussions between official creditors and Zambia on a potential debt treatment,” a spokesperson for the fund wrote.

“We expect an agreement could be reached within a few days, which would allow the Executive Board consider the first review of the Fund-supported program within a few weeks.”

The IMF said in early April that the next $188 million payout from a $1.3 billion support loan to Zambia was contingent on the government’s reaching an agreement with its creditors.

Zambia’s hopes of restructuring about $12.8 billion of external debt have been hampered by the concerns of its main creditors about the required scale of relief.

(Reporting by Rodrigo Campos and Rachel Savage; Editing by Leslie Adler)

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US would have ‘deep concerns’ about China military activities in Cuba, Blinken says

by Reuters June 20, 2023
By Reuters

LONDON (Reuters) – Secretary of State Antony Blinken said on Tuesday that the United States would have deep concerns about Chinese military activities in Cuba, after the Wall Street Journal reported that Beijing was planning a new training facility there.

Speaking at a press conference in London after wrapping up a trip this week to Beijing, Blinken said he made clear to his Chinese counterparts “that we would have deep concerns about PRC intelligence or military activities in Cuba”.

Blinken added: “This is something we’re going to be monitoring very, very closely and we’ve been very clear about that. And we will protect our homeland, we will protect our interests.”

The Wall Street Journal, citing current and former U.S. officials, reported on Tuesday that China and Cuba are negotiating to establish a joint military training facility on the island that could lead to the stationing of Chinese troops just 100 miles off Florida’s coast.

Discussions for the facility are at an advanced stage but have not concluded, and President Joe Biden’s administration has contacted Cuban officials to try to stop the deal, the newspaper reported.

The White House National Security Council and the Cuban government did not immediately respond to requests for comment on the report.

Washington said last week it has made its concerns known to Cuba about hosting Chinese spy operations. The U.S. government has long suspected that China runs an intelligence gathering operation in a village near Havana, on Cuba’s northern coast.

China denies it uses Cuba as a spy base. Cuba says the only military incursion in its territory is the Guantanamo Bay Naval Base, which belongs to the United States.

(Reporting by Sachin Ravikumar with additional reporting by Matt Spetalnick and Dave Sherwood; writing by Muvija M; Editing by Sarah Young and Alistair Bell)

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U.S. urges China military dialogue despite rebuff to Blinken

by Reuters June 20, 2023
By Reuters

By Humeyra Pamuk

BEIJING (Reuters) -The United States on Tuesday pressed its call for military communication channels with China and signalled concern over reports that China plans a military training facility in Cuba following Secretary of State Antony Blinken’s trip to Beijing over the weekend.

Establishing military-to-military communications is essential to reduce frictions between the two global powers, Sarah Beran, White House National Security Council senior director for China and Taiwan Affairs, told reporters in a briefing about the trip.

“This is an absolutely critical way for us to manage competition, crisis communication, ensure that there is not miscommunication or misperception about each other’s intentions,” Beran said.

“We remain willing and able at all levels to meet and call on China to respond appropriately to that.”

Blinken said on Tuesday that the United States would have “deep concerns” about Chinese military activities in Cuba, after the Wall Street Journal reported that Beijing was planning a new training facility there.

Blinken told a press conference in London that he had made those concerns clear to his Chinese counterparts.

“This is something we’re going to be monitoring very, very closely and we’ve been very clear about that. And we will protect our homeland, we will protect our interests,” Blinken added.

During Blinken’s Beijing visit, the first to China by a U.S. secretary of state since 2018, the nations agreed to temper rivalries to avoid conflict but there were no breakthroughs.

China cited U.S. sanctions as an obstacle to military dialogue which Blinken said he had repeatedly raised with his hosts and would continue to push for.

Chinese Defence Minister Li Shangfu has been sanctioned since 2018 over the purchase of combat aircraft and equipment from Russia’s main arms exporter, Rosoboronexport.

GLOBAL WORRIES

Lack of open channels between both nations has prompted international jitters, with Beijing’s reluctance to engage in regular military-to-military talks with Washington alarming China’s neighbours.

Speaking at the same briefing call on Tuesday, the U.S. State Department’s top diplomat for East Asia Daniel Kritenbrink said a successful and responsible management of the U.S.-China relationship will only be possible if it is a “two-way street”.

Kritenbrink said asserting that all bilateral problems were caused by one party “simply doesn’t reflect reality.”

At one of the most significant U.S.-China exchanges since U.S. President Joe Biden took office, the two sides appeared entrenched over a multitude of issues from Taiwan to trade – including U.S. actions toward China’s chip industry – plus human rights and Russia’s war against Ukraine.

The most concrete result of the trip was a commitment to more diplomatic engagements with further high-level U.S. visits in coming months, including possible trips by Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo.

China’s defence minister Li earlier this month declined an invitation to meet U.S. Defense Secretary Lloyd Austin at an international security summit.

(Reporting by Humeyra Pamuk and Beijing Newsroom; Editing by Andrew Cawthorne and Alistair Bell)

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AMO Seizes 2,776 Pounds Cocaine Found in Hidden Compartments of Two Vessels in Southern Puerto Rico

by US Border Patrol June 20, 2023
By US Border Patrol

FAJARDO, Puerto Rico— US Customs and Border Protection (CBP) Air and Marine Operations detected and seized a load of 2,776 pounds (1,259 kilograms) of cocaine found inside hidden compartments of two vessels that intended to reach the southern town Patillas Puerto Rico Thursday afternoon.  The estimated street value of the seized cocaine is approximately $28.9 million. 

Yabucoa cocaine load june 16 2023

“The southeastern coast of Puerto Rico has been targeted by Transnational Criminal Organizations to introduce large amounts of contraband using diverse tactics,” indicated Augusto Reyes, Director of Air and Marine Operations for the Caribbean Air and Marine Branch. “The resolve and hard work of our AMO agents have produced the interdiction of over 15,000 pounds of cocaine during these last five months, which our are now off the streets of Puerto Rico and the east coast of the United States.” 

On the afternoon of June 15, the crew of an AMO Multi Role Enforcement Aircraft (MEA) aircraft located two vessels navigating at high-speed northbound navigating towards the town of Patillas, Puerto Rico. 

The MEA crew alerted AMO Marine units in Fajardo and Ponce, maintaining surveillance to intercept the vessels.   Within US waters one Marine unit intercepted one twin engine vessel without resistance and arresting the two men on board.  The other vessel initially failed to heave, later being stopped by an AMO Marine Unit.  

A search of the two vessels revealed hidden compartments, retrieving bricks of cocaine.

Drug Enforcement Administration (DEA) took custody of the narcotics for investigation and the Federal Bureau of Investigations (FBI) arrested the four men for prosecution.

On May 28, AMO and Puerto Rico Police seized 4,616 pounds (2,094 kilograms) of cocaine found inside a vessel that landed in the southeastern coast of Puerto Rico.  

AMO safeguards our Nation by anticipating and confronting security threats through our aviation and maritime law enforcement expertise, innovative capabilities, and partnerships at the border and beyond.  With approximately 1,800 federal agents and mission support personnel, 240 aircraft, and 300 marine vessels operating throughout the United States, Puerto Rico, and U.S. Virgin Islands, AMO conducts its mission in the air and maritime environments at and beyond the border, and within the nation’s interior.

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CBP Releases May 2023 Monthly Operational Update

by US Border Patrol June 20, 2023
By US Border Patrol

WASHINGTON — U.S. Customs and Border Protection (CBP) released operational statistics today for May 2023, which show that more than half of the U.S. Border Patrol’s encounters in May occurred prior to the lifting of the CDC’s Title 42 Public Health Order. View the CBP Monthly Reports.

“As a result of comprehensive planning and preparation efforts, there has been a significant reduction in encounters along the Southwest border since the return to full Title 8 immigration enforcement on May 12. As we continue to execute our plans –including delivering strengthened consequences for those who cross unlawfully while expanding access to lawful pathways and processes– we will continue to monitor changes in encounter trends and adjust our response as necessary,” said Senior Official Performing the Duties of CBP Commissioner Troy A. Miller. “At the same time, CBP remained laser-focused on our national and economic security missions this month: managing increased passenger throughput at the start of a busy summer travel season and increasing seizures of dangerous drugs by 10% over April.”

CBP Southwest Border Enforcement Numbers for May 2023

CBP has been executing the Department’s comprehensive plan to secure our borders and build a safe, orderly, and humane immigration system. This includes providing meaningful consequences for those who enter without authorization, placing such individuals into expedited removal proceedings in record numbers and applying conditions on asylum eligibility through the new Circumvention of Lawful Pathways rule.  Those who do not establish a legal basis to remain in the United States will be removed and are subject to a minimum 5-year bar on reentry as well as potential prosecution for repeated reentry. As a result, Southwest border encounters significantly declined in May.

In May 2023, the U.S. Border Patrol recorded 169,244 encounters between ports of entry along the Southwest border, a decrease of 25% from May 2022. The Office of Field Operations recorded 35,317 encounters at Southwest border ports of entry, including 28,696 individuals who presented with CBP One appointments. CBP’s total encounters along the Southwest border in May were 204,561, a decrease of 15% from May 2022.

More than half of the U.S. Border Patrol’s encounters in May occurred prior to the lifting of the CDC’s Title 42 public health Order. From May 1 – 11, U.S. Border Patrol encountered 98,850 individuals between ports of entry along the Southwest border. After the termination of the order as of 11:59 pm ET on May 11 through the end of the month on May 31, U.S. Border Patrol’s encounters between ports of entry along the Southwest border were 70,394.

  • For the period from May 12 – 31, CBP averaged 3,500 U.S. Border Patrol (USBP) encounters in between ports of entry per day and 1,273 per day at ports of entry, which includes 1,043 CBP One Office of Field Operations (OFO) encounters at ports of entry per day.   

CBP continues to enforce U.S. immigration law and apply consequences to those who enter without authorization and do not establish a legal basis to remain in the United States. With the Title 42 public health Order no longer in place, CBP is processing all individuals encountered at the border using its longstanding Title 8 authorities.

Under Title 8, those who attempt to enter the United States without authorization, and who are unable to establish a legal basis to remain in the United States, will be quickly removed.  Individuals who have been removed under Title 8 are subject to additional long-term consequences beyond removal from the United States, including bars to admission and future immigration benefits. Individuals who cross unlawfully or arrive at a Port of Entry without a CBP One appointment are subject to the lawful pathways rule, which places common-sense conditions on asylum eligibility, with certain exceptions.

Among CBP’s 204,561 total Southwest border encounters in May 2023, encounters with single adults decreased by 6% compared to April 2023, encounters with unaccompanied children decreased by 13%, and encounters with family unit individuals increased by 5%.

Single Adults

  • Almost two-thirds (65%) of all Southwest land border encounters were single adults, with 133,097 encounters in May, a 6% decrease compared to April.
    • From May 1 – 11, 2023, CBP encounters with single adults totaled 71,816, compared with 61,281 encounters with single adults from May 12 – 31, 2023. That represents a 53% decrease from an average of 6,529 encounters per day from May 1 – 11 to 3,064 encounters per day May 12 – 31.

Unaccompanied Children

  • Encounters of unaccompanied children decreased 13%, with 9,943 encounters in May compared with 11,455 in April. In May, the average number of unaccompanied children in CBP custody was 435 per day, compared with an average of 500 per day in April.
    • From May 1 – 11, 2023, CBP encounters with unaccompanied children totaled 4,474, compared with 5,469 encounters with unaccompanied children from May 12 – 31, 2023. That represents a 33% decrease from an average of 407 encounters per day from May 1 – 11 to 273 encounters per day May 12 – 31.

Family Unit Individuals

  • Encounters of family unit individuals increased by 5% from 58,369 in April 2023 to 61,319 in May 2023, which is a 29% decrease from the peak of 86,631 in August 2021.
    • From May 1 – 11, 2023, CBP encounters with family unit individuals totaled 32,300, compared with 29,019 encounters with family unit individuals from May 12 -31, 2023. That represents a 51% decrease from an average of 2,936 encounters per day from May 1 – 11 to 1,451 encounters per day May 12 – 31.

Title 42 Expulsions and Title 8 encounters

  • 30,150 encounters, equal to 15% of total encounters in May, were processed for expulsion under Title 42 before the public health Order ended at 11:59 pm ET on May 11, 2023. 174,411 encounters were processed under Title 8 in May, including 78,559 Title 8 encounters from May 1 – 11, 2023, and 95,852 Title 8 encounters from May 12 – 31, 2023.
    • 26,216 encounters involving single adults (20% of all single adult encounters) were processed for expulsion under Title 42 in May, with 106,881 single adults processed under Title 8 (80% of all single adult encounters). There were 45,600 Title 8 encounters with single adults from May 1 – 11, 2023, and 61,281 Title 8 encounters with single adults from May 12 – 31, 2023.
    • 3,848 encounters involving family unit individuals (6% of all family unit individuals) were processed for expulsion under Title 42, with 57,471 processed under Title 8 (94% of all family unit individuals). There were 28,452 Title 8 encounters with family unit individuals from May 1 – 11, 2023, and 29,019 Title 8 encounters with family unit individuals from May 12 – 31, 2023.

Unique and Repeat Encounters

  • The number of unique individuals encountered by CBP along the Southwest border decreased 2% from 139,406 in April 2023 to 136,673 in May 2023.
  • Among CBP’s 204,561 overall encounters along the Southwest border in May 2023, 20% involved individuals who had at least one prior encounter in the previous 12 months, compared to an average one-year re-encounter rate of 14% for fiscal years 2014 – 2019.

CBP Nationwide Total Encounters for FY23TD through May: 2,096,346

Unique Southwest Border Encounters by Select Citizenships

SW Border

Cuba

Haiti

Nicaragua

Venezuela

Mexico / N. Central America

23-May

907

440

363

23,154

54,140

% Unique

0.70%

0.30%

0.30%

17%

40%

23-Apr

281 

307 

297 

25,514 

54,766 

% Unique

.2% 

.2% 

.2% 

18% 

39% 

23-Mar

140  

314  

163  

3,085  

62,543  

% Unique

.1%/p>

.3%

.1%

3%  

53%  

23-Feb

131  

168  

284 

1,174  

53,501  

% Unique

.1%  

.2%  

.3%  

1.2%  

57%  

23-Jan

6,002 

2,237 

3,208 

2,557 

51,686 

% Unique

6% 

2% 

3% 

2% 

48% 

22-Dec

42,205 

3,927 

34,859 

6,065 

51,143 

% Unique

20% 

2% 

16% 

3% 

24% 

22-Nov

34,320 

3,943 

33,774 

6,232 

57,077 

% Unique

18% 

2% 

18% 

3% 

30% 

22-Oct

28,500 

4,973 

20,644 

20,793 

59,561 

% Unique

16% 

3% 

11% 

11% 

33% 

22-Sep

25,877 

4,147 

17,927 

33,490 

57,795 

% Unique

14% 

2% 

10% 

18% 

32% 

May change since Apr 2023

225%

42%

24%

-7%

-2%

Apr change since Mar 2023

101% 

-2% 

82% 

727% 

-12% 

Mar change since Feb 2023

7% 

87% 

-43% 

163% 

17% 

Feb change Since Jan 2023

-99% 

-92% 

-91% 

-54% 

4% 

Jan change Since Dec 2022

-86% 

-43% 

-91% 

-58% 

1% 

Dec change Since Nov 2022

23% 

-.4% 

3% 

-3% 

-10% 

Nov change Since Oct 2022

20% 

-21% 

64% 

-70% 

-4% 

Oct change since Sept 2022

10% 

20% 

15% 

-38% 

3% 

Sep change since Aug 2022

37% 

-23% 

58% 

33% 

2% 

Note: Unique encounters include persons not previously encountered in the prior 12 months.
Source: Office of Immigration Statistics analysis of CBP data.

CBP One App

CBP announced changes to the CBP One app in May to allow for scheduling of presentation for noncitizens seeking to be processed under Title 8 after May 11, 2023 and expanded to 1,000 available appointments per day in May. (Appointments were further expanded to 1,250 beginning June 1, which will be reflected in subsequent reporting). The CBP One application transitioned to a new daily appointment allocation scheduling process to allow for more flexibility and access to the scheduling system by making appointments available for 23 hours each day instead of at a designated time. 

From January 12, when the scheduling function was introduced, until May 31, 2023, more than 106,000 individuals used the CBP One mobile application to schedule an appointment to present at a southwest border port of entry for inspection. The top nationalities that have scheduled an appointment are Haitian, Venezuelan, and Mexican. From May 1 to May 11, CBP ports of entry processed over 7,000 Title 42 exception requests under Title 42 using the CBP One application. From May 12 to May 31, CBP ports of entry processed over 20,000 individuals with an appointment scheduled through the CBP One application. Inadmissible noncitizens with an appointment are included in the overall Title 8 encounters number for the month of May. Scheduling an appointment in CBP One provides a safe, orderly, and humane process for noncitizens who may wish to claim asylum to access ports of entry rather than attempting to enter the United States irregularly. The CBP One app is also used to support the USCIS parole processes for Cubans, Haitians, Nicaraguans, and Venezuelans.

International Travel and Trade

One of CBP’s core mission objectives is to enhance the nation’s economic prosperity, including through the facilitation of lawful trade and travel. CBP continues to protect America’s national and economic security by facilitating legitimate trade while rigorously enforcing U.S. customs laws and regulations.

Count

May 2021

May 2022

% May 2022
Change from May
2021

May 2023

% May 2023
Change from May
2021

% May 2023 Change from May
 2022

Travelers Arriving by Air

4,042,578

8,718,143

115.66%

10,759,470

166.15%

23.41%

Passenger Vehicles Processed at Ports of Entry

5,100,582

7,478,193

46.61%

8,184,249

60.46%

9.44%

Pedestrian Travelers

2,454,876

3,478,904

41.71%

3,822,899

55.73%

9.89%

Commercial Trucks

1,045,854

1,121,487

7.23%

1,165,467

11.44%

3.92%

CBP tracks traveler numbers and wait times and continuously adjusts as needed to make the travel experience more efficient. Travelers can plan by doing the following:

  • Have a valid Western Hemisphere Travel Initiative document, such as a passport, Trusted Traveler Program card, or Enhanced Tribal Card.
  • Possess proof of an approved COVID-19 vaccination as outlined on the CDC website. 
  • Verbally attest to their travel intent and COVID-19 vaccination status.
  • Be prepared to present any documents requested by the CBP officer.

Trade Stats/Seizures – Protecting the American Consumer

CBP works diligently with the trade community and port operators to ensure that merchandise is cleared as efficiently as possible. CBP works with the trade community to strengthen international supply chains and improve border security. There are several programs by which CBP works with importers, carriers, consolidators, licensed customs brokers, and manufacturers to advance information about the shipments and expedite the inspection process at the ports of entry. CBP is available to conduct exams and is ready and willing to expand hours of operations if necessary to meet the growing demand for imported goods.

In May 2023, CBP processed more than $2.8 million entry summaries valued at more than $273 billion, identifying estimated duties of nearly $6.9 billion to be collected by the U.S. government. In May, trade via the ocean environment accounted for 42% of the total import value, followed by air, truck, and rail.

In May 2023, CBP stopped 460 shipments valued at more than $197 million for further examination based on the suspected use of forced labor, and which may be subject to a Withhold Release Order, Forced Labor Finding, or the Uyghur Forced Labor Prevention Act’s rebuttable presumption, and prohibited importation into the United States under 19 U.S.C. § 1307.

Intellectual property rights violations continue to put America’s innovation economy at risk. Trade in counterfeit and pirated goods threaten the competitiveness of U.S. businesses, the livelihoods of American workers, and the health and safety of consumers.

In May 2023, CBP seized 1,980 shipments that contained counterfeit goods valued at more than $216 million.

CBP completed 26 audits that identified $1 million in duties and fees owed to the U.S. government, stemming from goods that had been improperly declared in accordance with U.S. trade laws and customs regulations. CBP collected over $3.9 million of this identified revenue and from previous fiscal years’ assignments. 

Drug Seizures

As announced in a press release at the end of May, CBP and DHS partner agencies seized nearly 10,000 pounds of fentanyl over the course of two months as part of Operations Blue Lotus and Four Horsemen.  These surge efforts to curtail the flow of illicit fentanyl smuggled into the United States from Mexico demonstrate CBP’s success in protecting American communities and disrupting the operations of transnational criminal organizations.

CBP officers, Border Patrol agents, and Air and Marine Operations agents continue to interdict the flow of illicit narcotics across the border. Nationwide, drug seizures (Cocaine, Methamphetamine, Heroin, Fentanyl, and Marijuana) by weight increased 10% in May compared to April. More than 90 percent of fentanyl is trafficked in cars and trucks through ports of entry.

CBP’s fentanyl seizures have increased more than 400 percent since fiscal year 2019 and our fiscal year 2023 seizures of fentanyl have already surpassed the fiscal year 2022 seizure total. CBP seized more than 19,800 pounds of fentanyl from October 2022 through May 2023 as compared with about 7,600 pounds from October 2021 through May 2022.

Additional CBP drug seizure statistics.

Agriculture Stats/Seizures – Securing American Agriculture

In May 2023, CBP agriculture specialists helped protect America’s agriculture, natural resources, and economic prosperity.

  • CBP issued 6,007 emergency action notifications for restricted and prohibited plant and animal products entering the United States.
  • CBP conducted 98,899 positive passenger inspections and issued 691 civil penalties and/or violations to the traveling public for failing to declare prohibited agriculture items.
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MIsc. News

CBP officers arrest man attempting to smuggle a child on Father’s Day at the Pharr International Bridge

by US Border Patrol June 20, 2023
By US Border Patrol

PHARR, Texas— U.S. Customs and Border Protection, Office of Field Operations (OFO) at the Pharr International Bridge arrested a man in an alleged attempt to smuggle an undocumented minor. 

“Our CBP officers thwarted this alleged child smuggling attempt thanks to their experience and excellent interviewing skills,” said Port Director Carlos Rodriguez, Hidalgo/Pharr/Anzalduas Port of Entry. “This apprehension is testament to the notion that violation of immigration law will not be tolerated, carries tangible legal consequences and will be prosecuted to the highest extent allowed by federal law.” 

On June 18, 2023, CBP officers assigned to the Pharr International Bridge encountered a 49-year-old U.S. citizen man who presented a minor female child as his own daughter, presenting a U.S. birth certificate for her. During the examination, CBP officers discovered that the minor was not related to him, and the birth certificate, while legitimate, did not belong to the minor. The minor was not a U.S. citizen, and she did not possess valid entry documents.

CBP OFO arrested the man for alleged violation of U.S. immigration law.

Visit CBP’s website for more information on the Immigration Inspection Program.

Follow the Director of CBP’s Laredo Field Office on Twitter at @DFOLaredo also U.S. Customs and Border Protection at @CBPSouthTexas for breaking news, current events, human interest stories and photos.

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US and World News

Colombia government labor bill shelved after legislators fail to reach quorum

by Reuters June 20, 2023
By Reuters

BOGOTA (Reuters) – A labor reform pushed by Colombia’s government was shelved on Tuesday after committee legislators in Congress’ lower house failed to reach a quorum in a scheduled first debate, dealing a major setback to leftist President Gustavo Petro.

The reform aimed to reduce working hours and boost overtime pay to fight poverty. Critics said it could hurt job creation by increasing salary costs, but Petro argued the bill would solve issues like contractual instability which hurt growth.

“The collapse of the labor reform is very serious,” Petro said in a message via Twitter. “It demonstrates that the desire for peace and social agreement does not exist for economic power. Owners of capital and the media managed to co-opt Congress against the dignity of the working people.”

Debate of the bill before the lower house’s seventh committee, which must approve labor-related bills before they go to the body’s plenary, did not reach quorum in the first debate and voting did not take place.

Tuesday is the last day of the current legislative session. If the government does not schedule extra sessions to debate the bill next week, it can present it from scratch in the next legislative session starting on July 20.

The shelving comes after the lower house said it would pause debate on a trio of reforms proposed by the government amid accusations of campaign finance irregularities, which Petro and campaign staffers have vehemently denied.

The accusations are based on audios sent from former ambassador Armando Benedetti to Petro’s ex-chief of staff, Laura Sarabia.

The finance minister has said the government is willing to make compromises on reforms to get them passed, while ratings agency Moody’s has warned that Colombia’s credit profile may come under pressure if the government is unable to pass the bills due to a lack of governance.

The lower house may also shelve the government’s proposed health reform, while its pension reform passed a Senate committee last week.

(Reporting by Carlos Vargas and Oliver Griffin in Bogota; Writing by Oliver Griffin and Julia Symmes Cobb; Editing by Matthew Lewis)

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US and World News

Hunter Biden to plead guilty to tax crimes, reaches deal on gun charge

by Reuters June 20, 2023
By Reuters

By Sarah N. Lynch, Jeff Mason and Tom Hals

WASHINGTON (Reuters) -U.S. President Joe Biden’s son Hunter Biden has agreed to plead guilty to two misdemeanor charges of willfully failing to pay income taxes and to enter into an agreement that could avert a conviction on a gun-related charge, according to a court filing on Tuesday.

The news sparked accusations of favorable treatment for the Democratic president’s son from former President Donald Trump and his Republican allies, who for years have attacked both Bidens.

Their accusations of wrongdoing by Hunter Biden relating to Ukraine and China prompted the investigation by David Weiss – the U.S. attorney in Delaware appointed by Trump – that led to the charges. The two misdemeanor tax charges were Hunter Biden’s first.

The younger Biden has worked as a lobbyist, lawyer, consultant to foreign companies, investment banker and artist, and has publicly detailed his struggles with substance abuse.

The announcement by the Justice Department comes as President Biden is in the middle of a re-election campaign that may pit him again against Trump, the front-runner for the Republican nomination in 2024. As president, Trump asked Chinese and Ukrainian authorities to investigate Hunter Biden’s activities in their countries.

According to court filings, Hunter Biden received taxable income of more than $1.5 million in 2017 and in 2018 but did not pay income tax those years despite owing in excess of $100,000.

He is also charged with unlawfully owning a firearm from roughly Oct. 12 to Oct 23, 2018 when he was using and addicted to a controlled substance, the Justice Department said. For that charge, he entered a pretrial diversion agreement, an alternative to prosecution that is sometimes used to allow defendants to avoid prison time or a criminal conviction.

“It is my understanding that the five-year investigation into Hunter is resolved,” his attorney, Christopher Clark, said in a statement. “I know Hunter believes it is important to take responsibility for these mistakes he made during a period of turmoil and addiction in his life. He looks forward to continuing his recovery and moving forward.”

Weiss said the investigation is ongoing, a standard statement in such announcements.

The White House on Tuesday declined to comment on the charges or the deal.

“The President and First Lady love their son and support him as he continues to rebuild his life. We will have no further comment,” spokesperson Ian Sams said in a statement.

Hunter Biden is likely to face a sentencing range of 12-18 months for the tax charges, about half of which could be spent inside a prison cell, according to sentencing expert Tess Lopez.

But the odds he will get sentenced to prison are low, based on the tax loss amount, his status as a first-time offender and his willingness to accept responsibility for his actions.

“He’s not going to prison,” said Michael Weinstein, a former federal prosecutor who now chairs the white-collar practice at the law firm Cole Schotz. “He is facing prison time, but whether or not practically and realistically he goes is very different.”

REPUBLICANS SEE ‘SLAP ON THE WRIST’

Hunter Biden disclosed in December 2020 that Weiss’s office was investigating his tax affairs. He denied wrongdoing.

He described in a 2021 memoir dealing with substance abuse issues in his life, including crack cocaine use and alcoholism. He was discharged from the U.S. Navy Reserve in 2014 after testing positive for cocaine, sources said at the time.

The Weiss inquiry initially examined potential violations of tax and money laundering laws in foreign business dealings, principally in China, sources told Reuters.

The investigation headed by Weiss began as early as 2018, according to U.S. media reports. Weiss was asked to stay on in the role, after Trump left the White House and President Biden began, to continue the probe.

The probe followed accusations of influence peddling against Hunter Biden by Trump and others, as well as Trump’s efforts to get Ukrainian officials to investigate the son of the man he saw as his likely 2020 presidential challenger. Those efforts, including a suspension of congressionally approved military aid for Ukraine, led to Trump’s first impeachment.

Republicans on Tuesday roundly criticized the deal as being favorable to the president’s son.

Representative James Comer, the Republican chair of the House of Representatives Oversight Committee, which has been leading House Republicans’ investigations into Biden’s family, called the plea deal “a slap on the wrist” and said it would not deter his panel’s work.

Representative Jamie Raskin, the ranking Democrat on the House oversight panel, accused Republicans in a statement of “wailing about the work” of a Trump-appointed attorney.

“This development reflects the Justice Department’s continued institutional independence in following the evidence of actual crimes and enforcing the rule of law even in the face of constant criticism and heckling by my GOP colleagues who think that the system of justice should only follow their partisan wishes,” Raskin said about the charges.

Trump, who was recently indicted on federal criminal charges that he unlawfully kept national-security documents when he left office, also criticized the deal.

“Wow! The corrupt Biden DOJ just cleared up hundreds of years of criminal liability by giving Hunter Biden a mere ‘traffic ticket.’ Our system is BROKEN!” he said on his Truth Social platform.

President Biden has two surviving children, Hunter Biden and daughter Ashley Biden. His son Beau Biden died in 2015 of cancer and his daughter Naomi Biden died as an infant after a car accident that also killed Joe Biden’s first wife.

Hunter Biden appears to be the first child of a sitting president to be indicted, according to Aaron Crawford, who specializes in presidential history at the University of Tennessee.

Crawford said the family of several presidents were ensnared in scandals, including George H.W. Bush’s son Neil, who directed a failed savings and loan, and Richard Nixon’s brother Don, who was rescued from business failures by wealthy businessman Howard Hughes.

(Reporting by Sarah N. Lynch and Jeff Mason in Washington and Tom Hals in Wilmington, Delaware; additional reporting by Trevor Hunnicutt, Susan Heavey, Moira Warburton and Jarrett Renshaw; Editing by Doina Chiacu, Heather Timmons and Jonathan Oatis)

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Business News

Marketmind: Markets lose steam, central banks not helping

by Reuters June 20, 2023
By Reuters

By Jamie McGeever

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.

A deepening sense of caution descends over Asian markets as the trading week reaches its mid-point, as investors give a lukewarm reaction to China’s interest rate cut and await key remarks from Federal Reserve Chair Jerome Powell later on Wednesday.

Adding to the lackluster market tone and feeling among investors that the global policy tightening cycle is not yet over, UK inflation data on Wednesday will be closely watched ahead of the Bank of England’s expected rate hike on Thursday.

The Asian economic data calendar on Wednesday is light, with Japan’s tankan manufacturing index for June one of the few releases on tap and the one most likely to stir markets.

The Bank of Japan is one of two outliers among leading monetary authorities, and remarks from governor Kazuo Ueda on Wednesday could determine whether the yen pulls back from a seven-month low against the dollar, or extends its decline.

The other is the People’s Bank of China, which is now actually cutting rates for the first time in almost a year. On Tuesday it lowered key lending benchmarks by 10 basis points as officials seek to shore up a slowing economic recovery, but investors weren’t impressed.

The one-year loan prime rate (LPR) was cut to 3.55% and the five-year LPR was cut to 4.20%. Investors had hoped the five-year LPR would be reduced by more.

For the yuan, the PBOC was stuck between a rock and a hard place – more aggressive easing would further reduce the attractiveness of Chinese bonds, which is bad news for the yuan; a more cautious easing probably won’t give the economy much support, which is also bad news for the yuan.

The yuan has been trading through 7.00 per dollar every day since May 18, and is now approaching 7.20/dollar. Last October’s weak point around 7.30/dollar, a low not seen since late 2007, may soon come onto traders’ horizon.

On the Chinese corporate front, investors are digesting the news of changes at the top of e-commerce giant Alibaba Group. The company said on Tuesday its CEO and chairman Daniel Zhang will step down from the roles, which will be filled by Eddie Yongming Wu and Joseph Tsai, respectively.

China’s stocks are on the defensive, but they are not alone. The MSCI Asia-ex Japan index on Tuesday had its worst day this month; world stocks fell for a third day, their longest losing streak since early May; and Wall Street ended in the red.

The main global event for markets on Wednesday is likely to be Fed Chair Powell’s semi-annual testimony to the House Financial Affairs Committee. Investors will be parsing his words for any extra steer on the policy outlook, no matter how slight.

Here are key developments that could provide more direction to markets on Wednesday:

– Japan tankan survey (June)

– BOJ Governor Kazuo Ueda speaks

– Fed Chair Jerome Powell speaks

(By Jamie McGeever; Editing by Deepa Babington)

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