U.S. President Donald Trump’s tax reform could bring almost $2 trillion back to the United States as U.S. firms repatriate cash piles from foreign affiliates, a U.N. report said Monday.

Ending the incentive to hoard cash overseas could produce a stimulus effect in the United States, and Trump has credited the tax reform with spurring a $350 billion investment plan by Apple.

“Now is the perfect time to bring your business, your jobs, and your investments to the United States of America,” Trump told the World Economic Forum in Davos last month.

The reform ends a system whereby companies defer tax on foreign earnings until the funds are repatriated. Instead it treats those earnings as if they were being repatriated, with an 8 percent tax on non-cash assets and a 15.5 percent tax on cash.

“This measure is widely expected to have the most significant and immediate effect on global investment patterns,” said the report by the U.N. trade and development agency UNCTAD.

Big firms had long awaited such a tax break, having last received one in the 2005 U.S. Homeland Investment Act, which brought $300 billion back from abroad, the report said.

Since then, U.S. overseas retained earnings have grown to $3.2 trillion, half of U.S.-owned foreign direct investment, with about $2 trillion in cash. Unlike in 2005, companies are not required to actually repatriate the funds.

The biggest overseas cash hoarders are in the tech sector, with Apple, Microsoft, Cisco, Alphabet and Oracle holding $530 billion, a quarter of the total, the report said. Other major cash holders are in pharmaceuticals and engineering.

Almost 40 percent of the funds are located in the United Kingdom or its Caribbean offshore territories such as the British Virgin Islands, UNCTAD said, citing data from the Bureau of Economic Analysis.

Even if the money was not invested in tangible assets, its withdrawal could still have a macroeconomic impact, said Richard Bolwijn, UNCTAD’s head of investment research.

“It’s still a part of … the external sources of finance helping to make up for savings shortfalls in developing countries,” he said.

Much of the impact depends on how other countries react, and there is still uncertainty as the details of the tax bill are clarified. In addition, there are some concerns that the U.S. reforms could violate tax treaties and trade rules, the UNCTAD report said.
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Recent losses on global financial markets, including those in the U.S., have some investors concerned about expectations for their holdings and plans for the future.

The Dow Jones Industrial Average declined 2.5 percent Friday, its largest percentage drop since Britain’s decision in June 2016 to leave the European Union.

The Dow and the broader U.S. Standard & Poor’s 500 Index ended the week roughly 4-percent lower, their biggest weekly drops since early 2016, amid fears of inflation and disappointing quarterly corporate earnings results.

Key stock indexes in Europe also fell Friday. Germany’s DAX index dropped 1.7-percent, while France’s CAC 40 Index declined 1.6-percent.

In Asia, Japan’s Nikkei 225 Index slid nearly 1-percent and South Korea’s Kospi fell 1.7-percent.

Meanwhile, U.S. bond yields climbed and contributed to the sell-off after the U.S. government reported that wages grew last month at their fastest pace in eight years.

The wage data helped stoke investor concern that the Federal Reserve, the U.S. central bank, will respond to higher inflation by hiking its key interest rate more quickly than anticipated.

Darrell Cronk, head of the Wells Fargo Investment Institute, said an extended period of low interest rates has helped create the uncertainty.

“We’ve enjoyed low interest rates for so long, we’re having to deal with a little bit higher rates now, so the market is trying to figure out what that could mean for inflation.”

The yield on the benchmark 10-year U.S. Treasury notes rose to 2.852-percent, its highest level in more than four years. The rise in bond yields hinders stock performance in two ways: it makes corporate borrowing more expensive and it makes bonds more attractive to investors compared to riskier stocks.

Bond strategists were unwilling Friday to predict what lies ahead for interest rates this week after the markets’ unusual volatility in the past week.

Investors may get a hint of the direction of interest rates when trading resumes in Asia early Monday, and possibly more insight after the U.S. Treasury’s $66 billion in auctions of 3-, 10- and 30-year bonds from Tuesday to Thursday.
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Over the last decades, growing economic hardships forced people in cities and villages around the world to leave their hometowns to find work in other countries. Dreaming of returning one day and enjoying a better life where they grew up, many invested most of their savings buying houses back home. But often, these houses remain empty, making many communities look like ghost towns. Faiza Elmasry has the story. Faith Lapidus narrates.
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U.S. Secretary of State Rex Tillerson’s Latin American tour took him Saturday to Argentina, where he talked with officials about conservation and diplomacy.

Traveling from Mexico City after meeting with the Mexican president and other senior officials on Friday, Tillerson arrived in Bariloche, a lakeside resort town in Argentina’s Nahuel Huapi National Park.

Local news reports said Tillerson met with park rangers to discuss progress made in joint U.S.-Argentine projects on science and conservation issues. He also met with a student selected for the U.S. Fulbright scholarship program.

Tillerson was scheduled to visit the Argentine capital, Buenos Aires, to meet with his counterpart, Jorge Faurie.

On Monday, Tillerson is set to meet with Argentina President Mauricio Macri to discuss regional issues, including upcoming elections and the political crisis in Venezuela.

Before his visit, Tillerson told reporters that he hoped other countries would follow Argentina’s lead on making economic reforms and generating growth.

On Friday in Mexico, Tillerson said that immigrants bring “enormous value” to the U.S., but added the U.S. government lacked “good discipline” in regulating who enters the country to live.

‘Out of normal order’

After meeting in Mexico City with Mexican Foreign Secretary Luis Videgaray and Canadian Foreign Minister Chrystia Freeland, Tillerson told reporters the U.S. had put “many mechanisms in place” over the years to control immigration, but had “never gone back to clean this up.”

“Let’s make sure we have systems in place where we understand who’s coming into the country,” Tillerson said. He said immigration in the U.S. had “gotten out of normal order,” which is why President Donald Trump is pushing Congress to “fix these defects that have risen over the years.”

The Mexican government has repeatedly expressed opposition to Trump’s proposals to curb illegal immigration and have Mexico pay for a reinforced border wall.

Differences over the issue did not preclude Videgaray from praising the U.S. He said the Mexican government’s relationship with the Trump administration was “closer” than it was under former President Barack Obama’s administration. Videgaray acknowledged the two countries “do have some differences” but said “we are working closely and we are about results.”

Tillerson later held a closed-door meeting with Mexican President Enrique Pena Nieto during a time when relations have also been strained by U.S. threats to pull out of the North American Free Trade Agreement (NAFTA).

NAFTA, which Trump alleges costs American jobs, was discussed at the trilateral meeting, along with energy development and drug interdiction.

Tillerson’s travels through Latin America will also take him to Peru and Colombia, with a final stop in Jamaica on February 7.
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The window opened Friday for oil, gas, uranium and coal companies to make requests or stake claims to lands that were cut from two sprawling Utah national monuments by President Trump in December, but there doesn’t appear to be a rush to seize the opportunities.

For anyone interested in the uranium on the lands stripped from the Bears Ears National Monument, all they need to do is stake a few corner posts in the ground, pay a $212 initial fee and send paperwork to the federal government under a law first created in 1872 that harkens back to the days of the Wild West.

They can then keep rights to the hard minerals, including gold and silver, as long as they pay an annual fee of $155.

It was unclear if anyone was doing that Friday.

​Inquiries, but no claims yet

The Bureau of Land Management declined repeated requests for information about how they’re handling the lands and how many requests and claims came in.

The agency says it must comply with a complex web of other laws and management plans.

Steve Bloch, legal director of the Southern Utah Wilderness Alliance, said he was told by the BLM Friday afternoon that inquiries were made but no claims sent in.

He said other conservation groups that have sued to block the downsized monument boundaries are watching closely to ensure no lands are disturbed in the short-term, hoping a judge will side with them and return the monuments to the original boundaries.

Two of the largest uranium companies in the U.S., Ur-Energy Inc. and Energy Fuels Resources Inc., said they have no plans to mine there. The price of uranium, which has fallen to about $22 per pound, down from more than $100 in the mid-2000s, would “discourage any investment in new claims,” said Luke Popovich, a spokesman for the National Mining Association.

Colorado-based Energy Fuels asked for a reduction of Bears Ears last year in a public comment, but spokesman Curtis Moore said in a statement that the company has higher priorities elsewhere. He noted the lands were open to claims for 150 years before President Barack Obama creating the national monument in 2016.

“There probably isn’t any land available for staking that would be of much interest to anyone,” Moore said.

Coal in Grand Staircase-Escalante

In Grand Staircase-Escalante National Monument, part of a major coal reserve that a company was preparing to mine before President Bill Clinton protected the lands in 1996, has been made available again but it appears unlikely any company will immediately jump at the chance this time.

Out-of-state demand for Utah’s coal had led to a drop in coal production to about 14 million tons in 2017, down from about 27 million tons in the mid-2000s, said Michael Vanden Berg, energy and mineral program manager at the Utah Geological Survey.

“If a new mine were to open, it would be competing with existing mines in Utah for limited demand,” Vanden Berg said.

Popovich called it “doubtful given market conditions and other factors” that companies interested in coal would put in a lease request.

Vanden Berg noted that a potential coal port in Oakland, California, could open up an Asian market and that technology could be developed to change market forces.

Oil and gas potential

There’s some potential for oil and gas at Grand Staircase, Vanden Berg said. But Kathleen Sgamma, president of an oil and gas industry group called Western Energy Alliance, said heavy oil shale in the area would require an intensive mining operation that doesn’t make sense in today’s market.

“There’s no fracking trucks at the border waiting to rush in,” Sgamma said.

President Trump downsized the Bears Ears National Monument by about 85 percent and Grand Staircase-Escalante National Monument by nearly half. It earned him cheers from Republican leaders in Utah who lobbied him to undo protections by Democratic presidents that they considered overly broad.

Bears Ears, created nearly a year ago, will be reduced to 315 square miles (815.85 square kilometers). Grand Staircase-Escalante will be reduced from nearly 3,000 square miles (7,770 square kilometers) to 1,569 square miles (4,063.71 square kilometers).

Conservation groups called it the largest elimination of protected land in American history.
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Britain has made clear its desire to be part of China’s so-called ‘One Belt One Road Initiative’ — a cornerstone of President Xi Jinping’s vision to boost Chinese investment and influence across Asia, Europe and Africa. There are, however, concerns over the financial and humanitarian costs of the vast infrastructure projects being undertaken. As Henry Ridgwell reports, the United States has issued a blunt warning over what it sees as the dangers of being tied to China’s huge investment projects.
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Another solid month for the U.S. economy as American companies added 200,000 new workers to their payrolls last month. The unemployment rate remained unchanged at 4.1 percent, but wages are rising. Although the number of unemployed Americans continues to fall, recruiting agencies say they’ve never been busier. Mil Arcega explains.
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U.S. stocks slumped Friday, pulling down the Dow Jones industrial average by more than 650 points and handing the market its worst week in two years.

Technology, banks and energy stocks accounted for much of the broad slide. Several major companies, including Exxon Mobil and Google’s parent company, Alphabet, sank after reporting weak earnings.

Fears of rising inflation sent bond yields higher and contributed to the stock market swoon after the government reported that wages grew last month at the fastest pace in eight years.

The sharp drop follows a long period of unprecedented calm in the market. Stocks haven’t had a pullback of 10 percent or more in two years, and hit their latest record highs just one week ago.

“We’ve enjoyed low interest rates for so long, we’re having to deal with a little bit higher rates now, so the market is trying to figure out what that could mean for inflation,” said Darrell Cronk, head of the Wells Fargo Investment Institute.

The increase in bond yields hurts stocks in two ways: it makes it more expensive for companies to borrow money, and it also makes bonds more appealing to investors than riskier assets such as stocks.

The Standard & Poor’s 500 index fell 59.85 points, or 2.1 percent, to 2,762.13. That’s the biggest loss for the benchmark index since September 2016. The S&P 500 has lost 3.9 percent since hitting a record high a week ago.

The Dow Jones industrial average lost 665.75 points, or 2.4 percent, to 25,520.96. The Nasdaq slid 144.92 points, or 2 percent, to 7,240.95. The Russell 2000 index of smaller-company stocks gave up 32.59 points, or 2.1 percent, to 1,547.27.

Rise in interest rates

While interest rates are still low by historical standards, meaning borrowing is still relatively cheap for businesses and people, they’ve been rising more swiftly, and that’s what has markets on edge.

“The pace of rate increases is more important than the level,” said Nate Thooft, senior portfolio manager at Manulife Asset Management.

The increase in rates has been driven by the prospect of stronger economic growth, and higher inflation, in the U.S. and abroad.

Bond prices declined again Friday, pushing yields higher. The yield on the 10-year Treasury note, a benchmark for interest rates on many kinds of loans, including mortgages, climbed to 2.83 percent, the highest level in roughly four years. The rate was at 2.41 percent four weeks ago and 2.66 percent on Monday.

“Once we started going north of 2.5 percent, and you put that together with an overbought market, it had the ingredients of a sell-off, especially since January was so strong,” said Jeff Zipper, regional investment strategist at U.S. Bank Private Wealth Management.

The S&P 500, which many index funds track, soared 5.6 percent in January, its biggest monthly gain since March 2016.

The expectation among investors has long been for a gradual rise in interest rates, as the Federal Reserve slowly pulls back from the stimulus that it implemented for the economy amid the Great Recession. But if rates rise more quickly than expected, it could upset markets.

The key concern is that the Fed will respond to higher inflation by raising its key interest rate more quickly than expected. The government’s latest job and wage data stoked those concerns Friday.

U.S. jobs

U.S. employers added a robust 200,000 jobs in January, slightly above market expectations for an 185,000 increase. Meanwhile wages rose sharply, suggesting employers are competing more fiercely for workers. The figures point to an economy on strong footing even in its ninth year of expansion, fueled by global economic growth and healthy consumer spending at home.

That’s good news for Main Street USA, but not for Wall Street. Investors fear the pickup in hourly wages, along with a recent uptick in inflation, may make it more likely that the Fed will raise short-term interest rates more quickly in the coming months. Some economists were predicting Friday that the central bank will raise its benchmark rate four times this year, rather than the three times most previously expected.

“With financial conditions continuing to ease and core price inflation also starting to pick up, we expect this will persuade the Fed to hike rates four times this year,” Andrew Hunter, an economist with Capital Economics, wrote in a published note Friday.

The market slide may have been overdue, particularly after the strong start for stocks this year where the S&P 500 had its best January in two decades.

The global economy is still strong, corporate profits and sales have been better than expected this reporting season and buyers for stocks still remain, all reasons to be optimistic about stocks, said Nate Thooft, senior portfolio manager at Manulife Asset Management.

“It’s appealing, these 2 to 3 percent pullbacks,” said Thooft, who had been trimming some of his stock holdings after the market’s big January gains. “We look at this and say, ‘Maybe it’s your first day to buy a little bit.'”
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Stocks closed sharply lower in New York on Friday, extending a weeklong slide, as the Dow Jones industrial average plunged more than 600 points. 

The drop capped stocks’ worst week in two years. The Dow’s drop was its biggest in percentage terms since June 2016.

Several giant U.S. companies’ shares dropped after reporting weak earnings, including Exxon Mobil and Alphabet. Apple and Chevron also fell.

Bond yields rose sharply after the government reported the fastest wage growth in eight years, stoking fears of inflation.

The Dow fell 665 points, or 2.5 percent, to 25,520.

The Standard & Poor’s 500 index dropped 59 points, or 2.1 percent, to 2,762. The S&P is down almost 4 percent since hitting a record high a week ago.

The Nasdaq was off 144 points, or 2 percent, to 7,240.
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Britain has made clear its desire to be part of China’s so-called “One Belt One Road” initiative — a cornerstone of President Xi Jinping’s vision to boost Chinese investment and influence across Asia, Europe and Africa. But there are concerns about the financial and humanitarian costs of the vast infrastructure projects being undertaken.

British Prime Minister Theresa May recently visited Beijing, leading a delegation of ministers and business leaders in an effort to boost trade after Britain’s European Union exit. The two countries signed deals worth $12.7 billion, and May hailed a “golden era” of Sino-British relations.

Her ambassador to Beijing, Barbara Woodward, earlier outlined Britain’s hopes of cooperating in China’s “One Belt One Road” initiative.

“The first is, we’d like to collaborate on practical projects,” she said. “The second area where we’d like to collaborate with China is bringing some of our city of London financing experience. Because these projects are big projects, particularly infrastructure, they require complex funding mechanisms.”

Too complex, according to some.

Approximately 9,500 kilometers away in Uganda, one of China’s latest “One Belt One Road” projects is nearly complete. Soaring above the muddy swamp between the capital, Kampala, and its airport, the new 51-kilometer (31-mile) four-lane expressway was built by the China Communications Construction Company. Its $580 million cost was met with a loan from Beijing.

Kampala’s mayor, Erias Lukwago, says the price is too high.

“Even these Chinese who are coming here from — even these commercial banks we are borrowing from, Exim Banks and what not, the burden will finally come on our shoulders as Ugandans, our children and grandchildren will have to shoulder this burden which is very, very unfortunate,” Lukwago said.

Through the “One Belt” initiative, China has invested across Africa, Asia and the Middle East, and even into eastern Europe.

However, Britain’s decision to get involved should not be taken lightly, warns Barnaby Willitts-King of the Overseas Development Institute.

“Particularly in fragile parts of the world where China’s Belt and Road initiative is going to be running through, there are a lot of potential risks around humanitarian concerns, environmental concerns, that I think focusing on just on a trade deal might overlook,” Willitts-King said. “But it’s also got an advantage. The U.K. has worked and invested in a lot of these countries over the years. And it could actually provide some very practical advice to China.”

Washington has gone further in its criticism of China’s trade and foreign policy.

“China, as it does in emerging markets throughout the world, offers the appearance of an attractive path to development. But in reality, this often involves trading short-term gains for long-term dependency,” U.S. Secretary of State Rex Tillerson said Thursday, ahead of his trip to Latin America.

Many emerging economies welcome China’s investments, and the involvement of countries such as Britain. However, there are concerns that mounting debts will cause big problems further down the road. 
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With an eye on general elections next year, India has announced several populist measures that include a health insurance program for 500 million people, and billions of dollars for rural development and affordable housing in its annual budget.

Finance Minister Arun Jaitley said the measures aimed at improving “ease of living” for citizens, the vast majority of whom live in rural areas.

The announcements came amid widespread rural distress due to falling crop prices. Several farmers protests, sometimes violent, took place last year.

In a country where two thirds of the 1.3 billion people depend on agriculture, there are growing worries the anger in the countryside will pose a challenge for Prime Minister Narendra Modi’s Hindu nationalist government when it seeks reelection next year.

Saying “my government is committed to the welfare of the farmers,” Finance Minister Arun Jaitley added the government would focus on building rural infrastructure such as roads and irrigation projects, as well as opening new agricultural markets to help farmers get better prices for their crops.

Jaitley promised to sharply increase the price at which government buys food grains for its stocks and said that agricultural trade, which is restricted, will be liberalized to allow farmers direct access to markets.

“We consider agriculture as an enterprise and want to help farmers to produce more from the same land parcel at lesser cost, and simultaneously realize higher prices for their produce,” he said.

Much attention was also focused on the health insurance plan unveiled by the government, which Jaitley called the “world’s largest.” It aims to give medical coverage of about $7,800 to 100 million poor families annually.

The measure is significant in a country where poor people are often forced to sell their assets, such as land and jewelry, to pay for healthcare. Government hospitals, which provide free medical facilities are inadequate and overcrowded, and private hospitals are usually unaffordable for lower income groups, who seldom have health insurance. The government also said it would build more health centers in rural areas.

Prime Minister Narendra Modi said the budget would spur the country’s development. “It is farmer-friendly, common-man friendly, business environment friendly and development-friendly.”

Jaitley said economic growth, which witnessed a downturn last year, was picking up and Asia’s third largest economy was “firmly on path to achieve eight percent plus growth soon.”

But even as the government is making its massive outreach to rural areas, there are worries that it also faces growing disaffection because it has been unable to meet its pledge to create millions of jobs for India’s young population. It was a key plank that catapulted Modi to power in 2014.

 
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A new political dawn in Zimbabwe has sparked talk among farmers of land reform and the return of some whites who lost their land and livelihoods to President Robert Mugabe during a 37-year rule that drove the economy to collapse.

Mugabe, 93, resigned in November after the army and his ZANU-PF party turned against him, prompting optimism among some of the thousands of white farmers ousted in the early 2000s on the grounds of redressing imbalances from the colonial era.

For colonialists seized some of the best agricultural land that remained in the hands of white farmers after independence in 1980 leaving many blacks effectively landless and making land ownership one of Zimbabwe’s most sensitive political topics.

Now some white landowners hope the post-Mugabe regime may address the land issue, either through compensation or returning land, and try to resuscitate a once vibrant agricultural sector boosting an economy once seen as one of Africa’s great hopes.

“We are convinced positive signals will come quickly in terms of property rights,” Ben Purcel Gilpin, director of the Commercial Farmers Union (CFU), which represents white and black farmers, told the Thomson Reuters Foundation. “It would send a good signal to people outside Zimbabwe.” 

New president and long-time Mugabe ally, Emmerson Mnangagwa, has promised a raft of changes since he took office, including a return to the rule of law and respect for property rights.

Land ownership has been a key issue for decades in Zimbabwe dating back to British colonial rule in what was then Rhodesia.

At independence, white farmers owned more than 70 percent of the most fertile land and generated 80 percent of the country’s agricultural output, according to academics.

Reforms began after independence with a “willing buyer, willing seller” system aimed at redistributing land to poor black subsistence farmers. In the 1990s, compulsory acquisition of land began with some funding provided by Britain.

But for many Zimbabweans change was too slow and Mugabe approved radical land reforms that encouraged occupation of some 4,000 white-owned farms. Land went to his supporters with no knowledge of farming and thousands of white farmers fled.

The violent farm seizures saw Zimbabwe forfeit its status as the bread basket of Africa and led to a collapse of many industries that depended on agriculture. Among those were paper mills, textile firms, leather tanners and clothing companies.

As a result the country failed to generate foreign currency, resulting in the central bank printing money which led to unprecedented levels of hyper-inflation and high unemployment.

New start

Now some white farmers are starting to reclaim their land.

“White commercial farmers, like all other Zimbabweans, could apply for land from the Government and join the queue or go into joint ventures,” Mnangagwa told a former white commercial farmer during a recent visit to Namibia.

The CFU’s Gilpin – who quit farming and moved to Harare after his farm was compulsorily acquired by the government in 2005 – said sound policies from the new team could win support and help the economy.

He said compensation rather than putting people back into their properties might be the best route as many farmers are now too old to farm, some had died and others migrated.

The current situation – where resettled farmers had 99-year leases – was also untenable as the leases were not accepted by banks as collateral against borrowing.

Gilpin said this effectively made the land dead capital, as banks could not sell if farmers failed to pay back loans, so the government should instead offer farmers freehold titles.

Property rights expert Lloyd Mhishi, a senior partner in the law firm Mhishi Nkomo Legal Practice, said although Mnangagwa spoke about compensating farmers whose land was expropriated, he did not give specifics and title deeds of the former white farmers had no legal force after repossession.

Political way out

“As far as the law of the country is concerned, the title deeds that the former white commercial farmers hold do not guarantee them title,” Mhishi said in an interview.

But the lawyer said there were positive signs that the new administration realised land was a vital cog in the economy.

“I see there will be an attempt to make land useful, productive,” he said. “The land tenure side needs to be addressed to make land useful.”

Independent economist John Robertson, a former Advisor to the Reserve Bank of Zimbabwe, said, however, that any idea of compensation should be dropped and former white commercial farmers should get back to their land and resume work.

“I’d rather see them get back their land and start farming again than paid out and emigrating. We need their skills. If people who oppose that idea could be just successful, where have they been for the past 20 years?” he said.
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Many refugees would like to buy low-carbon stoves and lights but poor access in camps and a lack of funding is forcing them to rely on “dirty and expensive” fuels, a report said Tuesday.

Millions of refugees worldwide struggle to access energy for cooking, lighting and communication and often pay high costs for fuels like firewood, which are bad for their health.

Yet two-thirds would consider paying for clean cookstoves and more than one-third for solar household products, according to a survey by the Moving Energy Initiative (MEI), a partnership among Britain, the United Nations and charities.

“Energy providers don’t tend to think of refugees as potential energy consumers, but the opportunities to build a relationship with them are huge,” Mattia Vianello, one of the report’s authors, told the Thomson Reuters Foundation by phone.

Clean energy for refugees is a global priority for the U.N. refugee agency, which provides free solar power to thousands of displaced people in camps in Jordan and Kenya.

Campaigners are seeking to create a market for cleaner-burning stoves and fuels to supply millions of households worldwide that are using inefficient, dangerous methods.

Perilous smoke

When burned in open fires and traditional stoves, wood, charcoal and other solid fuels emit harmful smoke that claims millions of lives each year, according to the Clean Cooking Working Capital Fund, which promotes stoves that produce less pollution.

In Uganda, refugees collect wood from surrounding areas, “devastating” the local environment and creating tensions with locals, Raffaela Bellanca, an energy adviser with the charity Mercy Corps, said in emailed comments.

Humanitarians should work with the private sector to provide more sustainable energy to displaced people, said the report, which surveyed about 500 refugees, business owners and aid workers in Burkina Faso and Kenya.

“Refugee camps have the potential to become energy innovation hubs with a spillover effect on surrounding host communities,” Bellanca said.
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A colorful paint job has transformed one of Mumbai’s drab hilltop slums into a tourist destination, even prompting comparisons with Italy’s picturesque Amalfi Coast.

During a recent journey on a Mumbai metro train, Dedeepya Reddy was struck by the grim appearance of a slum in Asalpha in the city’s eastern suburbs as she stared out from her air-conditioned carriage.

Reddy, a Harvard University-educated co-founder of a creative agency, was keen to brighten the lives of slum residents, while also changing the perception of slums being dirty and dangerous, and decided on a simple makeover.

Armed with dozens of cans of colorful paint, Reddy and a team of about 700 volunteers painted the walls and alleyways of the hilltop slum over two weekends last month.

Residents, at first skeptical, also got involved and helped paint quirky murals, the 31-year-old said.

“When you look at slums, you think they are shabby and dirty, and that also becomes a reflection of the people who live there,” Reddy told the Thomson Reuters Foundation.

“We used bright colors to change how slums and their residents are viewed. It also gives residents a sense of pride and dignity about their homes.”

Up to 37 million households, or about a quarter of India’s urban population, live in informal housing including slums because of an acute shortage of affordable housing, according to social consultancy FSG.

In space-starved Mumbai, which has some of the priciest real estate in the world, the shortage is even more critical, with hundreds of migrants from rural areas cramming into the city every day to seek better prospects.

Reddy’s Chal Rang De (Let’s Color It) charity has seven other slums, similarly situated on hillocks, on its wishlist, she said.

Locals and tourists have thronged Asalpha in recent weeks, posting pictures on Instagram which have drawn comparisons to Italy’s Amalfi Coast.

Their interactions with residents are a welcome change, Reddy said.

For resident Aparna Chaudhuri, who has lived in Asalpha for about a dozen years, the paint job was welcome.

“Earlier, our house looked dull. Now it looks good,” said Chaudhuri, who picked pink for her home. “Everyone is also keeping the neighborhood clean now.”
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Hackers who stole around $530 million worth of cryptocurrency from the Coincheck exchange last week — one of the biggest such heists ever — are trying to move the stolen “XEM” coins, the foundation behind the digital currency said on Tuesday.

NEM Foundation, creators of the XEM cryptocurrency, have traced the stolen coins to an unidentified account, and the account owner had begun trying to move the coins onto six exchanges where they could then be sold, Jeff McDonald said.

Hackers made off with roughly $533 million worth of the cryptocurrency from Tokyo-based exchange Coincheck Inc late last week, raising fresh questions about security and regulatory protection in the booming market. The location of the hackers’ account was not known.

“(The hackers are) trying to spend them on multiple exchanges. We are contacting those exchanges,” Singapore-based McDonald told Reuters.

NEM Foundation spokeswoman Alexandra Tinsman said the hacker had started sending out “XEM” coins to random accounts in 100 XEM batches, worth about $83 each.

“When people look to launder these types of funds, they sometimes spread it into smaller transactions because it’s less likely to trigger (exchanges’) anti-money laundering (mechanisms),” said Tom Robinson, co-founder of Elliptic, a cryptocurrency security firm in London.

Robinson said such hopping among different cryptocurrencies was becoming more prevalent among cybercriminals trying to cover their tracks.

The coins that the hackers had taken made up around 5 percent of the total supply of XEM, the world’s 10th biggest cryptocurrency, according to trade website Coinmarketcap.

McDonald said the hackers were unlikely to try to spend anything close to all of the stolen cryptocurrency at once, because the “market simply couldn’t absorb that much.”

If the hackers successfully moved the coins to an exchange, they were likely to try to swap them into another cryptocurrency before transferring the coins back into a conventional currency, he said. That would make the funds difficult or near impossible to trace.

“I would assume that they are going to get away with some of the money,” McDonald said.

At least three dozen heists on cryptocurrency exchanges since 2011 are known; many of the hacked exchanges later shut down. More than 980,000 bitcoins have been stolen, and few have ever been recovered.

In 2014, Tokyo-based Mt. Gox, which once handled 80 percent of the world’s bitcoin trades, filed for bankruptcy after losing bitcoins worth around half a billion dollars — then the biggest ever such heist, which triggered a huge sell-off in bitcoin.

“It shows how far the industry has come that a hack of this scale isn’t really an issue,” said Robinson at Elliptic. “This is just kind of a blip.”

As of 17:44 GMT, XEM was trading at around $0.83 per coin, with a total market value of around $7.5 billion. That was around 20 percent lower than trading levels on Friday, when the hack was announced, but XEM is still up almost 300 percent over the past two months.

Japan’s Financial Services Agency (FSA) on Monday ordered improvements to operations at Coincheck, which on Friday suspended trading in all cryptocurrencies except bitcoin.
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Middle Eastern countries should pursue fiscal policies to support growth and build broader tax bases to fund infrastructure projects and social spending, the head of the International Monetary Fund said Tuesday.

“A key priority is building broader and more equitable tax bases. All must pay their fair share, while the poor must be protected,” IMF Managing Director Christine Lagarde told an economic conference in Marrakech, organized by the Washington-based fund and the kingdom.

That would allow them to spend more on social safety nets, health and education services than the current 11 percent of gross domestic product in the region. “Fiscal policy can and must be redesigned to support inclusive growth in the region,” Lagarde said.

More efforts are also needed to support the private sector, she said. The state, the dominant employer in many Arab countries with their young populations, can no longer hire newcomers to the labor market.

“This, too, can help make room for high-return social and infrastructure outlays,” Largarde said, adding that better access to finance, a more favorable business environment and fewer barriers such as red tape were necessary.

“Protracted regional conflicts, low commodity prices, weak productivity and poor governance have held back the considerable potential of the region,” the final statement issued by the IMF and two other international bodies said.

“Growth has not been strong enough to reduce unemployment significantly, and a staggering 25 percent of young people are jobless,” it added.
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Venezuela is abandoning the most-overvalued of its two official foreign exchange rates, which had been used for state imports of food and medicine amid a worsening economic crisis.

The move could potentially encourage businesses to import more and put more goods on store shelves and in pharmacies, but only if the government carries it out as written, said Francisco Rodriguez, a former Venezuelan official who is now chief economist at the New York-based Torino Capital.

“This is not a place where there’s a good tradition of following the letter of the law,” Rodriguez said Tuesday. “I don’t think that one should get too optimistic.”

Oil-rich Venezuela is in the fifth year of a deepening economic crisis that has brought scarcities of basic foods and medicine after nearly two decades of socialist rule and mismanagement of the world’s largest crude oil reserves.

The exchange rate reforms became public Monday when published in the nation’s official gazette, signaling that all transactions will now use a second official exchange rate known as Dicom. That rate still contrasts sharply with the black market exchange rate.

One U.S. dollar buys 3,345 bolivars at the Dicom rate, while Venezuelans are paying an average of nearly 250,000 bolivars per U.S. dollar on the black market.

The rate being abandoned, known as the Dipro, was set at 10 bolivars per dollar.

Venezuela has been operating with two official exchange rates, though most Venezuelans can buy dollars only on the illegal black market.

Rodriguez cautioned that the shift in exchange rates may only allow for the import of high-value goods, which are out of reach from most Venezuelans.

The government decree goes beyond eliminating the official protected rate Dipro rate, opening up access to the exchange system by relaxing government controls, so more imports could begin to flow, he said.

On Tuesday, Maduro announced new government subsidies for millions of Venezuelans. But with the slipping value of the bolivar, their value adds up to tiny sums.

The monthly minimum wage many working Venezuelans earn is now worth the equivalent of just $3. A program for 315,000 pregnant Venezuelan women would provide each about $21 at the black market exchange rate. Eight million Venezuelans who will be eligible to receive state money for the upcoming Carnival season will receive the equivalent of about $2.81.

Venezuela’s inflation hit 2,616 percent last year, according to estimates by the opposition-controlled National Assembly. The International Monetary Fund estimates inflation could soar to 13,000 percent this year.
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Tourism to Cuba, one of the few bright spots in its ailing economy, has slid in the wake of Hurricane Irma and the Trump administration’s tighter restrictions on travel to the Caribbean island, a Cuban tourism official said on Monday.

Although the number of visitors rose nearly 20 percent in 2017, it fell 10 percent on the year in December, and is down 7-8 percent this month, Jose Manuel Bisbe York, the president of Cuban state travel agency conglomerate Viajes Cuba, said.

Arrivals from the United States, which had surged in the wake of the U.S.-Cuban detente in 2014, took the worst hit, dropping 30 percent last December, he told Reuters.

“Since Hurricane Irma, we’ve seen arrivals shrink,” Bisbe York said on the sidelines of the event organized by U.S. travel agency insightCuba to dispel tourist misperceptions about Cuba.

Irma hit in September, just as the tourism sector was taking reservations for its high season from November to March.

Images of destruction put many would-be visitors off although Cuba had fixed its tourism installations within two months, said Bisbe York. Arrivals of Canadians, the largest group of tourists to Cuba, were down 4-5 percent.

“But we see this as a temporary thing and what we are seeing is that arrivals are recovering from month to month,” said Bisbe York, adding that Cuba would go ahead with its plans to launch more than 15 hotels island-wide this year.

“The first trimester will be the most difficult, because logically the change in the public perception takes time.”

Occupancy rates at the hotels in Cuba managed by Spain’s Meliá Hotels International S.A. were down around 20 percent on the year in December and January, said Francisco Camps, Meliá’s Cuba deputy general manager.

“From February though, we are already reaching figures similar to those we had in previous years,” he said.

Republican President Donald Trump’s more hostile stance towards Cuba than his Democratic predecessor Barack Obama looks set to have a more lasting impact than Irma.

The number of U.S. visitors had surged since the Obama administration created greater exemptions to a ban on tourism to the Caribbean’s largest island and restored regular commercial flights and cruises.

Arrivals reached a record 619,523 last year, up from 91,254 in 2014.

But the Trump administration in September issued a warning on travel there due to a spate of alleged health attacks on U.S. diplomats in Havana. In November, tighter travel regulations also went into effect.

The double whammy seriously depressed U.S. visits, American tour operators and a cruise line said at Monday’s event, although in reality the restrictions remain looser than before the detente and travel easier.

Cuba is also still one of the safest destinations worldwide, they said.

“While the regulations he changed very little the perception in the U.S. was that you no longer could travel to Cuba legally,” said insightCuba’s Tom Popper, noting his agency’s reservations were down 50 percent this year. “Part of hosting this event was to communicate that it is 100 percent legal to travel to Cuba.”
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The European Union says that if U.S. President Donald Trump initiates unfair trade measures against the 28-nation bloc, it would stand ready “to react swiftly and appropriately.”

In a weekend interview, Trump said he was annoyed with EU trade policy since he claims the U.S. cannot sufficiently export to the EU. He said his problems with the EU “may morph into something very big” from a trade standpoint.

EU spokesman Margaritis Schinas retorted Monday that “while trade has to be open and fair it also has to be rules-based.”

Schinas said: “The EU stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measure from the United States.”

 
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Top trade representatives from Canada, Mexico and the United States are set to give an update Monday on the process of renegotiating the North American Free Trade Agreement, while people familiar with the process say a final deal could be pushed far beyond a March target date.

The three nations had tried to complete the talks by the end of 2017, but delayed the informal deadline as they worked to find common ground on several contentious issues.

The latest round of talks in Montreal included work on a dispute resolution mechanism and rules for the auto industry.

The United States wants to largely eliminate the dispute settlement panels and increase the percentage of U.S. content required to be in a vehicle. It has also proposed a clause that would end the trade agreement after five years unless all three countries agree to keep it going.

U.S. Representative Dave Reichert expressed optimism Sunday after he and a group of other lawmakers met with U.S. Trade Representative Robert Lighthizer. He said Lighthizer is “hopeful” while also recognizing “there’s a great deal of work to be done.”

Canada’s chief negotiator Steve Verheul said Saturday, “We’re moving in a slightly more positive direction.”

Lighthizer is meeting Monday with Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo to review the progress made by their teams and to make an announcement about the state of the negotiations.

One reason the countries were targeting a March end date is the looming July presidential election in Mexico. 

Another round of negotiations is expected to start in Mexico City in about a month. A lack of an agreement by the end of March could push the process deep into 2018 with a potential break for the Mexican election and similar considerations surrounding the November U.S. congressional elections.

U.S. President Donald Trump has repeatedly threatened to withdraw from the trade agreement if changes favorable to the United Sates are not made.
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Ingvar Kamprad, who founded Sweden’s IKEA furniture brand and transformed it into a worldwide business empire, has died at the age of 91.

Kamprad died Saturday of pneumonia in the southern Swedish region of Smaland where he grew up on a farm, and with some modest financial help from his father, starting selling pens, picture frames, typewriters and other goods. It was the start of what became IKEA, now with 403 stores across the globe, 190,000 employees and $47 billion in annual sales.

His brand became synonymous with the simplicity of Scandinavian design, modest pricing, flat-pack boxing and do-it-yourself assembly for consumers. It turned Kamprad into an entrepreneur with a reported net worth of $46 billion. The company name was an acronym of his initials, the name of his farm, Elmtaryd, and his town of origin, Agunnaryd.

Swedish Prime Minister Stefan Lofven said Kamprad “was a unique entrepreneur who had a big impact on Swedish business and who made home design a possibility for the many, not just the few.” King Carl XVI Gustaf called Kamprad a “true entrepreneur” who “brought Sweden out to the world.”

Kamprad’s life was not without controversy, however.

He faced sharp criticism for his ties to the Nazi youth movement in the 1940s. While Sweden was neutral during the war, its Nazi party remained active after the war. Kamprad said he stopped attending its meetings in 1948, later attributing his involvement to the “folly of youth,” and calling it “the greatest mistake of my life.”

While he eventually returned to Sweden, Kamprad fled his homeland’s high-tax structure for Denmark in 1973 and later moved to Switzerland in search of even lower taxes.

The European Commission last year launched an investigation into ways IKEA allegedly used a Dutch subsidiary to avoid taxes, with the Green Party contending the company avoided $1.2 billion in European Union taxes between 2009 and 2014. The Consortium of Investigative Journalists identified IKEA in 2014 as one of the giant multinationals that moved money to tax havens to avoid taxes.

Kamprad was known for his frugality, buying his clothes at thrift shops, driving an aging Volvo and bringing his lunch to work.
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Why has Mumbai’s largest slum, which packs some one million people in about two square kilometers, emerged as an unlikely stop for foreign tourists? The draw is not images of squalor and poverty in the heart of India’s largest city, but a place where thriving entrepreneurship and stories of hope and success break many stereotypes of a slum. Anjana Pasricha reports.
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Officials trying to settle differences over how to update the North American Free Trade Agreement have made some progress and hope politicians decide the talks should continue, Steve Verheul, Canada’s chief negotiator, told Reuters on Saturday.

The United States, Canada and Mexico are due to finish the sixth of seven planned rounds of NAFTA discussions on Monday, with several major issues far from being resolved.

U.S. President Donald Trump, who describes the $1.2 trillion pact as a disaster, has frequently threatened to walk away from it unless major changes are made.

U.S. Trade Representative Robert Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo will hold a news conference later Monday to announce the next steps.

Asked whether he thought the three ministers would decide there is enough momentum to continue with the next round, Verheul said: “Well, that’s our hope.”

Later in the day, he told reporters: “We’re moving in a slightly more positive direction. We’ll take that encouragement where we can.”

On balance, a ‘positive’

A Mexican official, who asked not to be named, said “we don’t foresee a negative reaction to the round. We believe the balance will be positive.”

Work is moving ahead on less contentious parts of NAFTA, the Mexican official and a Canadian source close to the talks said Saturday, and the three nations have closed a chapter on measures to fight corruption.

Canada and Mexico initially dismissed some of the main U.S. demands as unworkable but later made it clear they were ready to be more flexible.

During the sixth round, Canada raised what it called creative ways of meeting U.S. demands for higher North American content in autos, a sunset clause that would allow one party to quit the treaty after five years, and major changes to existing conflict resolution mechanisms.

“I think we have demonstrated we have engaged on most of the big issues,” Verheul said in his remarks to Reuters. “We’ve made progress on some of the smaller ones, so I think [it was] not a bad week.”

The Mexican official said that Canada’s proposals on rules of origin for autos, the sunset clause and conflict resolution mechanism were “positive, inasmuch as they are an attempt to move things forward.”

Speaking separately, a second Canadian government source said Ottawa was cautiously optimistic about the round, given that the U.S. side had not summarily rejected the proposals for compromise.

But the source, who requested anonymity because of the sensitivity of the situation, said much would depend on Lighthizer’s reaction on Monday.

Fear for pact’s future

Markets and industries are worried about the possible collapse of the $1.2 trillion pact.

“It’s unclear to us that anything that anyone does here will be enough … which is concerning for agriculture,” said Brian Innes, president of the Canadian Agri-food Trade Alliance.

“Our position with all the political parties is that the negotiations must go on,” said Juan Pablo Castanon, president of the Consejo Coordinador Empresarial, the umbrella group representing Mexican private sector interests at the talks.

“We want free trade, but not at any cost,” he said.

The talks were initially scheduled to wrap up by the end of March to avoid clashing with Mexico’s presidential election in July. Guajardo told Reuters on Friday that the process could be extended if need be.

Andres Manuel Lopez Obrador, the leftist front-runner in the presidential race, said on Friday that the renegotiation should wait until after the election so that the next government, which he aims to lead, would get a say in the treaty’s future.
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In a surprise move, the U.S. Environmental Protection Agency reversed itself Friday and stopped the approval process for the proposed Pebble Mine copper and gold mine project in southwest Alaska’s Bristol Bay region.

“It is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there,” EPA Administrator Scott Pruitt said in a statement.

President Donald Trump has championed increased domestic mining, and the EPA’s decision to halt the Pebble Mine’s approval process comes as a surprise.

“Until we know the full extent of that risk, those natural resources and world-class fisheries deserve the utmost protection,” Pruitt said.

The Obama administration blocked the proposed mine in 2014 over environmental concerns. Last year, Pruitt reversed that decision, allowing the Canadian company behind the mine project to apply for a permit from the U.S. Army Corps of Engineers.

The Pebble Limited Partnership, comprising Canadian miners Northern Dynasty Minerals Ltd and First Quantum Minerals Ltd, is planning to mine 1.2 billion tons of material, including 287 million pounds of copper.

Environmentalists, commercial and sport fishermen, many Alaska Native tribal organizations and even some Republican politicians have all criticized the project, which would be built on land near Lake Clark National Park.

Alaska Governor Bill Walker, an independent, applauded the decision and thanked Pruitt “for listening to my input and that of thousands of Alaskans” who oppose the mine.

Pruitt indicated the mine could ultimately be approved.

“This decision neither deters nor derails the application process of Pebble Limited Partnership’s proposed project,” he said.

“The project proponents continue to enjoy the protection of due process and the right to proceed. However, their permit application must clear a high bar, because EPA believes the risk to Bristol Bay may be unacceptable,” he said.
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