News round-up, June 13, 2023
Editor's reflections...
“Due to global geopolitical tensions, Latin America is more forgotten than ever…
The task of finding news articles about Latin America in the global media can be daunting. The presidency of Manuel Andrés López Obrador of Mexico has been the subject of occasional reports, particularly regarding his disputes with neighboring countries to the north. Similarly, Colombian President Gustavo Petro's stance on Venezuela's autocratic government has been inconsistent, attracting attention from various quarters. The resurgence of Brazilian President, former labor leader and lobbyist Luiz Inácio Lula da Silva has also been a topic of discussion in recent times. Furthermore, the young Chilean President Gabriel Boric has encountered challenges as he navigates the deeply rooted power structures of his nation. President Boric has received praise for his positioning in international politics and outspoken condemnation of autocratic regimes in the region. The potential establishment of a Chinese military base in Cuba has raised concerns. However, it is worth noting that China has already established satellite police stations in numerous locations around the world. Furthermore, Peru, a nation renowned for its exquisite cuisine but plagued by political instability, is competing with Bolivia for the unenviable title of having the shortest presidential terms in the region. The phenomenon of transforming public spaces into temporary settlements for homeless populations due to the inability to afford rent is not unique to Argentina. Many countries in the region have experienced similar incidents, such as the transformation of Ezeiza International Airport in Buenos Aires into a hotel operated by the Salvation Army.
In conclusion, it can be stated that the Latin American and Caribbean region is characterized by the presence of major oil-producing nations, as well as countries that heavily depend on fuel imports. Colombia, Venezuela, Guyana, and Mexico are predominantly known for their crude oil exports, while Peru and Chile are recognized as significant importers of crude oil. The implementation of sanctions against Russia, a prominent global oil producer, has resulted in a prolonged increase in oil prices. As mentioned earlier, the result has the potential to provide benefits to oil-producing nations while also impacting the economic stability of countries that are net importers. The ongoing conflict has the potential to impact the pricing of food and agricultural commodities. The phenomenon being considered can be explained by Russia's dominant position as the primary global producer of wheat. This is further compounded by the ongoing conflict involving Ukraine, which is the world's third-largest wheat producer. As previously stated, the potential consequences of this situation are of great significance for countries such as Venezuela, which have a surplus in food product trade but a deficit in oil trade. Moreover, it is crucial to recognize that the prices of wheat, maize, barley, and rice have been considerably affected by export restrictions resulting from the conflict and sanctions. The inflation targets of several nations have been exceeded. Given that food prices constitute a substantial portion of the average consumption basket in the region, any abrupt price hike could lead to a rise in poverty rates, causing hunger and social unrest.
Considering an uncertain future, Latin America requires wise leadership to navigate the transition ahead and about all minimize the impact on the most vulnerable populations. As Pope Francis usually said: —"Pray for me..." —. This is exactly what the troubled region of the southern part of the American continent needs at this moment.
Most Read…
CPI Report Shows Inflation Has Been Cut in Half From Last Year’s Peak
U.S. May consumer prices rose 4.0% from year earlier
WSJ By Gwynn Guilford, June 13, 2023 Germany overtakes China as second most attractive country for renewables investment
The United States ranked first in EY's annual ranking of the top 40 renewable energy markets worldwide, with Germany moving up one spot to second for the first time in a decade.
Reuters By Nina Chestney, June 13, 2023Macron warns Ukraine counteroffensive could last ‘weeks, even months’
The leaders of France, Germany and Poland met in Paris to discuss giving Ukraine security guarantees.
POLITICO EU BY CLEA CAULCUTT, JUNE 12, 2023 'In the US, the culture war is hardly good for business'
Because of debates on gender and environmental issues, American companies are torn between progressives and those who denounce woke capitalism, writes New York correspondent Arnaud Leparmentier.
Le Monde, Arnaud Leparmentier, New York (United States) correspondent, Published today at 12:02 pm (Paris)Exclusive: Trump finds no new lawyers for court appearance in Mar-a-Lago case
Trump is expected to be represented by existing lawyers Todd Blanche and Chris Kise
The Guardian, Hugo Lowell in Doral, Miami, Tue 13 Jun 2023
The AES Corporation President Andrés Gluski, Dominican Republic Minister of Industry and Commerce Victor Bisonó, and Rolando González-Bunster, CEO of InterEnergy Group, spoke at the Latin American Cities Conferences panel on "Facilitating Sustainable Investment in Strategic Sectors" on April 12 in Santo Domingo, Dominican Republic.How can strategic investment achieve both economic growth and social progress?… What is the role of renewable energy and battery storage in achieving the goals of the low-carbon economy?…
Image: Germán & CoCooperate with objective and ethical thinking…
Image credit: NYT / Editing by Germán & CoCPI Report Shows Inflation Has Been Cut in Half From Last Year’s Peak
U.S. May consumer prices rose 4.0% from year earlier
WSJ By Gwynn Guilford, June 13, 2023 The job market remains robust and consumers have boosted their spending. PHOTO: RICHARD B. LEVINE/ZUMA PRESS
May inflation was around half of last year’s peak but remained far above what Federal Reserve officials would like to see.
The consumer-price index rose 4% in May from a year earlier, the Labor Department said Tuesday, well below the recent peak of 9.1% last June and down from April’s 4.9% increase.
Fed officials are meeting June 13-14 to decide their next steps to cool inflation, which they would like to see at 2%. They could hold interest rates steady at the meeting, while preparing to increase rates again in the summer or the fall if they don’t think enough progress has been made on inflation.
So-called core consumer prices, which excludes volatile food and energy categories, climbed 5.3% in May from a year earlier, down from 5.5% in April. Economists see core prices as a better predictor of future inflation. Core prices remain elevated in part because an earlier surge in housing-rental prices continues to show up in the inflation figures.
Overall consumer prices increased a seasonally adjusted 0.1% in May from the prior month, down from April’s 0.4% increase. Core consumer prices rose 0.4% in May from the prior month, the same pace as in April and March.
May inflation was driven by rising housing prices along with higher used vehicles and food prices, the Labor Department said. Energy prices declined 3.6% in May from April.
The Fed has aggressively raised rates from low levels starting last year to slow economic growth and tame inflation. Fed officials in May raised the benchmark interest rate to the current range between 5% and 5.25%, the highest level in 16 years.
Last month’s inflation figures may be more likely to influence whether Fed officials raise rates at their subsequent July meeting. Concerns that inflation isn’t slowing fast enough could lead more of them to signal in projections set for release Wednesday that they are prepared to lift rates again later this year even if they hold rates steady this week.
“Making slow progress is the big problem,” said Omair Sharif, who leads forecasting firm Inflation Insights. “There’s still a lot of debate among Fed officials over ‘how much more do we need to do?’
Seaboard: pioneers in power generation in the country…
…“More than 32 years ago, back in January 1990, Seaboard began operations as the first independent power producer (IPP) in the Dominican Republic. They became pioneers in the electricity market by way of the commercial operations of Estrella del Norte, a 40MW floating power generation plant and the first of three built for Seaboard by Wärtsilä.
Image: Electrical power pylons with high-voltage power lines are seen next to wind turbines near Weselitz, Germany November 18, 2022. REUTERS/Lisi Niesner / Editing by Germán & CoGermany overtakes China as second most attractive country for renewables investment
The United States ranked first in EY's annual ranking of the top 40 renewable energy markets worldwide, with Germany moving up one spot to second for the first time in a decade.
Reuters By Nina Chestney, June 13, 2023LONDON, June 13 (Reuters) - Germany has overtaken China to become the second most attractive country in the world for renewables investment due to its efforts to speed up power market reform and move away from fossil fuels, research showed on Tuesday.
In an annual ranking of the top 40 renewable energy markets worldwide by consultancy EY, the United States was ranked first, with Germany climbing one place to second position for the first time in a decade.
Germany was Europe's biggest buyer of Russian gas until the war in Ukraine and has also been reliant on nuclear and coal. However, it closed its last three nuclear power stations in April.
"While this is a major milestone in its progress to accelerated energy transition targets, there is likely to be an increase in the use of coal in the short term, to reduce the effects of intermittency in the power supply," the report said.
Germany is aiming to have renewables make up 80% of its energy mix by 2030. Currently, renewables account for 46%, up from 41% at the start of 2022, the report said.
The United States held its top position in the index, supported by the passing of the Inflation Reduction Act last year, which earmarks $369 billion for investment in energy security and climate change.
However, there is a grid lock of renewables projects waiting to be connected to regional grids. Even though the offshore wind sector has grown, the U.S. administration’s goal of having 30 gigawatts (GW) of offshore wind by 2030 is likely to be missed by 10 GW, according to current construction dates announced by developers, the report said.
India moved ahead of Australia to sixth position in the index, due to the fast growth of its renewables industry, particularly solar.
Image credit: by Germán & CoMacron warns Ukraine counteroffensive could last ‘weeks, even months’
The leaders of France, Germany and Poland met in Paris to discuss giving Ukraine security guarantees.
POLITICO EU BY CLEA CAULCUTT, JUNE 12, 2023 PARIS — French President Emmanuel Macron warned on Monday that the Ukrainian counteroffensive against Russian forces could last “weeks, even months.”
“The counteroffensive has started. It’s going to be deployed for several weeks and even months. We are supporting it within the limits that we set ourselves,” Macron said alongside German Chancellor Olaf Scholz and Polish President Andrzej Duda at the Elysée Palace.
Ukrainian forces have stepped up operations in the last couple of days and announced on Monday evening that they had liberated several villages in the south and the east of the country.
“We want [the counteroffensive] to be as victorious as possible so that we can then start a period of negotiations in good conditions,” he added.
The French, Polish and German leaders were meeting in Paris to discuss Ukraine’s request for security guarantees and a clear pathway to NATO membership ahead of a summit of the military alliance in July. However, on Monday evening it appeared that the leaders were sending different signals in a press conference that was held ahead of a working dinner in Paris.
While Duda called for Ukraine to be given “a clear signal, a clear perspective” on its future membership of NATO, Scholz was less forthcoming, noting that debates were “intense.”
“We have been discussing security guarantees since the start of the war … We have taken decisions to support Ukraine for as long as needed. This debate is intense between us, between Germany, France, and its U.S. partners,” Scholz said. “We will finalize [our position] when we have the results of our talks. But … it must be very concrete.”
Earlier this month, Macron called for Ukraine to be given “strong and tangible” security guarantees but stopped short of calling for full-fledged NATO membership.
Macron, Scholz and Duda all pledged that their countries would continue supporting Ukraine during the counteroffensive. Scholz told reporters that Germany would support Ukraine for “as long as necessary” and said his country had also set up systems to repair weapons during the current assault.
Macron meanwhile said that France had “intensified deliveries” of weapons, ammunition and armored vehicles.
Image by Germán & Co'In the US, the culture war is hardly good for business'
Because of debates on gender and environmental issues, American companies are torn between progressives and those who denounce woke capitalism, writes New York correspondent Arnaud Leparmentier.
Le Monde, Arnaud Leparmentier, New York (United States) correspondent, Published today at 12:02 pm (Paris)Twenty billion dollars: That's how much a single can of Bud Lite cost Budweiser, the brewery king based in St. Louis, Missouri. The can was decorated with the face of a transgender woman influencer, who was quick to promote it on Instagram. Following the 45-second clip, disaster struck. A revolt formed at barbecues around the country. In the Midwest, small-town America stopped buying the famous light beer, which saw sales plummet by 20%. And there was panic on Wall Street, where the company's market capitalization lost $20 billion (€18.6 billion). This unprecedented shock, far from a mere anecdote, reflects the state of the debate in the United States. Climate change is threatening the planet, Russia is attacking Ukraine and conflict is brewing with China, but the topic obsessing America is the fate of transgender people, the climax of the culture war between conservatives and "woke".
What a change since eight years ago, when Donald Trump was campaigning to defend White workers in the deindustrialized regions of the Rust Belt! Today, the US is engaged in new isolationism to promote "America First." The fight is focused on the culture war, which is championed by Florida Governor Ron DeSantis, a contender for the 2024 Republican nomination.
Of course, this reaction is no guarantee of success. The Supreme Court's decision to overturn the federal right to abortion in the summer of 2022 was a Pyrrhic victory, leading to the mobilization of women and the Republicans' relative defeat in the midterm elections. DeSantis, who has repeatedly gone too far, has put himself in difficulty in his face-off Trump.
Nonetheless, it's the dominant issue, and companies are fed up with being called upon to take a stand on every social issue. The peak was reached, quite rightly, with the May 2020 murder of an African-American man, George Floyd, by a white Minneapolis police officer. A stunned America collectively examined its conscience.
Negative value
The ebb first concerned the environment. After having a negative value on the markets at the worst of the Covid-19 pandemic, oil rebounded, contributing to inflation. The Republican message from the oil-producing states of the South and Midwest was threefold: Divestment would increase American dependence, drive up the price of a gallon of gasoline (which at one point exceeded $5) and reduce the performance of pension funds on the stock market. These states have passed laws banning public ESG (environmental, social and governance) investments. And the idea of divesting from carbon-emitting fuels has faded in a complex world: Can we treat companies that promise to use the carbon windfall to reinvest in renewables in the same way as those that vaguely promise to capture carbon?
In this debate, companies are caught between progressives and those who denounce woke capitalism. Anti-ESG initiatives are flourishing at shareholders' meetings: 68 resolutions this year, compared with 45 in 2022 and around 20 in previous years, according to the website Axios. As revealed by the Financial Times, a dozen major US financial companies, including BlackRock, Blackstone and KKR, explained in their annual reports that "divergent views" or "competing demands" on ESG criteria could affect their financial performance.
This debate affects the image of corporate America. According to the 2023 reputation rankings of America's top 100 brands, published by Axios in May, Twitter has long been hated, and Elon Musk's takeover hasn't done much for it (97th in the rankings, just ahead of Meta/Facebook). However, its boss's incessant political takes have had a major impact on Tesla, which has fallen from 12th to 62nd. On the left, Disney did not emerge completely unscathed from its tug-of-war with DeSantis over the controversies with its characters, as it dropped 12 places in the rankings to 77th. Clearly, the culture war is hardly good for business.
Image by Germán & CoExclusive: Trump finds no new lawyers for court appearance in Mar-a-Lago case
Trump is expected to be represented by existing lawyers Todd Blanche and Chris Kise
The Guardian, Hugo Lowell in Doral, Miami, Tue 13 Jun 2023
Donald Trump is expected to be represented at his first court appearance to face federal criminal charges for retaining national security materials and obstruction of justice by two of his existing lawyers, despite trying to recruit a local Florida lawyer willing to join his legal defense team.
The lawyers making an appearance with Trump on Tuesday will be the top former federal prosecutor Todd Blanche and the former Florida solicitor general Chris Kise, according to people familiar with the matter. Trump’s co-defendant, his valet Walt Nauta, will be represented by Stanley Woodward.
Trump and his legal team spent the afternoon before his arraignment interviewing potential lawyers but the interviews did not result in any joining the team in time for Trump’s initial court appearance scheduled for 3pm ET on Tuesday after several attorneys declined to take him as a client.
Trump has also seemingly been unable to find a specialist national security lawyer, eligible to possess a security clearance, to help him navigate the Espionage Act charges.
The last-minute scramble to find a veteran trial lawyer was a familiar process for Trump, who has had difficulty hiring and keeping lawyers to defend him in the numerous federal and state criminal cases that have dogged him through his presidency and after he left the White House.
After interviewing a slate of potential lawyers at his Trump Doral resort, the former president settled on having Kise appearing as the local counsel admitted to the southern district of Florida as a one-off, with Blanche being sponsored by him to appear pro hac vice, one of the people said.
Blanche and Kise had dinner with Trump and other advisers on Monday at the BLT Prime restaurant at the Doral.
Among the Florida lawyers who turned down Trump was Howard Srebnick, who had expressed an interest the former president at trial as early as last week in part due to the high fees involved, but ultimately was not allowed to after conferring with his law partners, the person said.
The other prominent lawyer who declined to work with Trump was David Markus, who recently defended the Florida Democratic gubernatorial candidate Andrew Gillum against charges that he lied to the FBI and funnelled campaign contributions into his personal accounts, the person said.
Trump and his team have interviewed the corruption attorney Benedict Kuehne, who was indicted in 2008 for money laundering before the charges were dropped, the person said. But he has his own baggage as he faces disbarment for contempt of court in a recent civil suit he lost.
The other interviews are understood to have been with William Barzee, as well as Bruce Zimet, the former chief assistant US attorney in Fort Lauderdale and West Palm Beach.
Donald Trump arrives in Miami a day before his scheduled arraignment on a 37-count federal indictment involving classified documents. Photograph: Kyle Mazza/Anadolu Agency via Getty Images
Part of the problem of recruiting new lawyers has been Trump’s reputation for being a notoriously difficult client who has a record of declining legal advice and seeking to have his lawyers act as attack dogs or political aides rather than attorneys bound by ethics rules, people close to the process said.
The other concern for the top lawyers in Florida being contacted by Trump’s advisers has been the perceived reputational damage that could come from defending the former president, the people said, not just because of his politics but also because of the strength of the indictment, which could potentially lead to years in prison.
By using Trump’s own taped admissions about retaining national defense information and the witness accounts of his employees, the indictment gave compelling evidence of Trump’s efforts to hoard the country’s most sensitive secrets and obstruct the government’s attempts to get them back.
Trump is said to still be searching for a lawyer in the mold of Roy Cohn, the ruthless New York fixer who defended and mentored him before he was later disbarred – and the fear of potentially being asked to take similar actions has been a persistent issue.
That fear has loomed large for numerous lawyers Trump’s advisers have contacted, the people said, in particular after Trump might have made Evan Corcoran, another former lawyer who withdrew from his defense in the Mar-a-Lago documents investigation, into a witness against him.
According to the indictment, after Trump was issued a subpoena last year seeking the return of any classified documents, Trump took steps to remove boxes of documents from a storage room that Corcoran intended to search through in order to find materials responsive to the subpoena.
The steps Trump took to have those boxes removed from the storage room, an episode now at the heart of the obstruction charge, caused Corcoran to certify a false certification to the justice department confirming that no further documents were at the property, the indictment said.
As Trump’s search for new lawyers in Florida continues, Blanche is expected to take the lead role in the Mar-a-Lago documents case in addition to leading the team defending Trump against state charges in New York for paying hush money to an adult film star in 2016.
Though Kise is expected to appear alongside Blanche in federal district court in Miami, he has primarily handled civil litigation for Trump since he came off the documents case last October and is not expected to be on the trial team proper, a person familiar with the matter said.
The scramble to find Florida lawyers came after Jim Trusty and John Rowley, the two remaining Trump lawyers after the earlier resignation of Tim Parlatore and the recusal of Corcoran, became the latest casualties of a legal team undermined by turmoil and infighting.