President Donald Trump will herald a robust economy and push for bipartisan congressional action on immigration in Tuesday’s State of the Union address, as he seeks to rally a deeply divided nation and boost his own sagging standing with Americans.

The speech marks the ceremonial kickoff of Trump’s second year in office and is traditionally a president’s biggest platform to speak to the nation. However, Trump has redefined presidential communications with his high-octane, filter-free Twitter account and there’s no guarantee that the carefully crafted speech will resonate beyond his next tweet.

Still, White House officials are hopeful the president can use the prime-time address to Congress and millions of Americans watching at home to take credit for a soaring economy. Though the trajectory of lower unemployment and higher growth began under his predecessor, Trump argues that the tax overhaul he signed into law late last year has boosted business confidence and will lead companies to reinvest in the United States.

Considering the strength of the economy, Trump will step before lawmakers Tuesday night in a remarkably weak position. His approval rating has hovered in the 30s for much of his presidency and at the close of 2017, just 3 in 10 Americans said the United States was heading in the right direction, according to a poll by The Associated Press-NORC Center for Public Affairs Research. In the same survey, 67 percent of Americans said the country was more divided because of Trump.

It’s unlikely Trump will be able to rely on a robust legislative agenda to reverse those numbers in 2018. Congress has struggled with the basic function of funding the government, prompting a brief government shutdown earlier this month that was resolved only with a short-term fix that pushed the spending deadline to Feb. 8.

Against the backdrop of the spending fight, Republicans and Democrats are also wrestling with the future of some 700,000 young immigrants living in the United States illegally.

Trump has vowed to protect the so-called Dreamers from deportation, but is also calling for changes to legal immigration that are controversial with both parties.

“We’re going to get something done, we hope bipartisan,” Trump told reporters Monday, before giving his speech a practice run-through in the White House map room. “The Republicans really don’t have the votes to get it done in any other way. So it has to be bipartisan.”

Though Democrats are eager to reach a resolution for the young immigrants, the party is hardly in the mood to compromise with Trump ahead of the midterm elections. Lawmakers see Trump’s unpopularity as a key to their success in November, and are eager to mobilize Democratic voters itching to deliver the president and his party a defeat at the ballot box.

Seeking to set the tone for their election-year strategy, party leaders have tapped Massachusetts Rep. Joe Kennedy, the grandson of Robert F. Kennedy, to deliver a post-speech rebuttal aimed at casting Democrats, not Trump, as champions of the middle class.

Democrats are also looking to make their mark in other ways. A handful of lawmakers are planning to boycott the president’s remarks. And several Democratic women plan to wear black to protest sexual harassment, an issue that has tarnished several lawmakers in both parties. Trump himself has been accused of assault or harassment by more than a dozen women, accusations he has denied. The Wall Street Journal reported this month that the president’s lawyer arranged a payment to a porn star, Stormy Daniels, to prevent her from talking about her alleged encounter with the future president.

First lady Melania Trump, who has largely stayed out of the spotlight following those allegations, will attend Tuesday’s address, according to the White House. She’ll be joined in the audience by several guests whose stories amplify the president’s agenda, including an Ohio welder who the White House says will benefit from the new tax law and the parents of two Long Island teenagers who were believed to have been killed by MS-13 gang members.

 
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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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U.S. President Donald Trump’s trade chief on Monday dismissed Canadian proposals for unblocking NAFTA modernization talks but pledged to stay at the table, easing concerns about a potentially imminent U.S. withdrawal from the trilateral pact.

Trump, who described the 1994 pact as a disaster that has drained manufacturing jobs to Mexico, has frequently threatened abandon it unless it can be renegotiated to bring back jobs to the United States.

U.S. Trade Representative Robert Lighthizer said after a sixth round of NAFTA modernization talks in Montreal that Trump’s views on the pact are unchanged, and cautioned that talks are still moving too slowly on U.S. priorities.

“We finally began to discuss the core issues, so this round was a step forward,” Lighthizer said. “But we are progressing very slowly. We owe it to our citizens, who are operating in a state of uncertainty, to move much faster.”

But Lighthizer’s Mexican and Canadian counterparts said that enough progress was made in Montreal to be optimistic about concluding the pact “soon,” with nine days of talks in Mexico City scheduled to start Feb. 26.

“For the next round, we will still have substantial challenges to overcome. Yet the progress made so far puts us on the right track to create landing zones to conclude the negotiation soon,” said Mexico’s Economy Minister Ildefonso Guajardo.

Officials are now openly speculating that the bid to salvage the $1.2-trillion free trade pact will continue well beyond an end-March deadline set to avoid Mexican presidential elections.

Canadian proposals dismissed

Heading into Montreal last week, some officials had feared the United States might be prepared to pull the plug on the pact amid frustration over slow progress.

The mood lightened after Canada presented a series of suggested compromises to address U.S. demands for reform.

But Lighthizer criticized Canadian proposals to meet U.S. demands for higher North American content in autos, saying it would in fact reduce regional autos jobs and allow more Chinese-made parts into vehicles made in the region.

He also dismissed a suggestion on settling disputes between investors and member states as “unacceptable” and “a poison pill” and said a recent Canadian challenge against U.S. trade practices at the World Trade Organization “constitutes a massive attack on all of our trade laws.”

Canadian Foreign Minister Chrystia Freeland, who stood stony faced as Lighthizer made his remarks, later told reporters that “the negotiating process is … always dramatic.”

A Canadian government source, speaking on the condition of anonymity, noted Lighthizer had not speculated about withdrawal and said the U.S. official had been more positive in private than during previous rounds.

Officials said the negotiating teams had closed a chapter on anti-corruption measures and were close to wrapping up sections on telecommunications, sanitary measures for the agriculture industry and technical barriers to trade.

Challenging demands

But the three sides are still far apart over U.S. demands to boost regional auto content requirements to 85 percent from the current 62.5 percent and require 50 percent U.S. content in North American-built vehicles.

Other challenges are Washington’s demands that NAFTA largely eliminate trade and investment dispute-settlement systems and contain a “sunset” clause to force renegotiations every five years.

Critical comments by Trump, Lighthizer and others have unsettled markets that fret about the potential damage to a highly integrated North American economy if the United States gives six months’ notice it is leaving.

The Mexican round next month is an extra set of talks that officials added to help tackle the many remaining challenges.

Negotiators are supposed to finish in Washington in March with the eighth and final round.

Although some officials have privately speculated about freezing the talks at the start of April, Guajardo told reporters that “we cannot afford to suspend this process.”
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Executive branch government employees in Argentina will get no pay raises this year and one out of every four “political positions” appointed by ministers will be cut, President Mauricio Macri said on Monday, deepening his austerity drive.

The clampdown on political positions, including advisers appointed by government ministers, is viewed as an attack on a patronage system that has been in place for decades.

The firings, expected to save $77 million a year, are symbolic of Macri’s drive to regain market confidence.

“Austerity has to be part of politics,” Macri said in a televised address.

He spent the first two years of his administration dismantling the trade and currency controls set up by his predecessor, Cristina Fernandez, who had expanded the role of government in the economy.

He was elected in 2015 with a mandate to free the markets and improve Argentinas business climate.

Macri, expected to seek re-election next year, denounced “the corruption and clientelism” of past administrations. Included in the measures announced on Monday, family members of ministers were banned from holding government jobs.

Macri scored a series of business-friendly legislative wins late last year after his coalition swept mid-term elections. But passage of his pension reform bill last month triggered violent protests and a decline in the president’s approval ratings.

The government wants to foster the idea that politically appointed officials share the burden of the fiscal adjustment.

“It also wants to convey the message that this administration really is different from its predecessors,” said Ignacio Labaqui, analyst for consultancy Medley Global Advisors.

Pressured by the country’s powerful labor unions, the government canceled a special session of Congress planned for February to debate Macri’s proposed labor reform.

The bill includes amnesty for companies that register workers who had been paid off the books. It aims to curb litigation by workers and would lighten social security taxes paid by employers. The private sector has long argued for more flexibility in labor regulations.

 
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Mozambique’s Attorney General has filed a legal complaint against officials and state-owned companies involved in securing $2 billion in loans that were not approved by parliament or disclosed publicly, her office said on Monday.

Investigations into the debt found that the deals violated Mozambique’s constitution, the AG’s office said in a statement.

The alleged infringements included failure to comply with the procedures and limits established by law in the issuance of guarantees by the state, it said.

“Thus, on January 26, the [office] submitted a complaint to the Administrative Court on the financial accountability of public managers and state-owned companies involved in the management of financing, supply and service contracts,” the statement read.

It did not name any of the managers or the companies.

The Administrative Court is responsible for ruling on the legality of public expenditure.

An independent audit of the debt showed in June last year that questions remained on how the $2 billion was used and roughly a quarter of the money remained unaccounted for.

The Attorney General also recommended among other issues a review of legislation related to state businesses and scrutiny and monitoring of projects benefiting from state guarantees.
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As the 20 shortlisted cities vying to host Amazon.com’s second North American headquarters hone their bids to attract thousands of high-paid jobs, they should also plan for rising housing costs and strains on infrastructure, experts said.

The winning city should ensure community benefits, such as support for affordable housing, new schools and beefed-up public transport are part of any deal, said academics and city planners.

“If the price to pay Amazon exceeds the resources Amazon generates that can be used to manage the stress, the winning city may also be the loser,” said Arthur Nelson, an urban planning professor at the University of Arizona.

Amazon said in September it will build a second headquarters, dubbed Amazon HQ2, that would be a full equal to its existing downtown Seattle campus.

The e-commerce giant estimates the new corporate location would generate $5 billion in real estate investment and bring in 50,000 well-paid jobs.

The list of 20 final candidates, announced on January 18, leans heavily to the eastern half of North America, and includes the cities of Atlanta, Boston, and Washington, D.C.

According to the Urban Institute, a policy think tank in Washington, D.C., there is a housing affordability crisis in the United States affecting the poorest renters, with the problem most acute in metropolitan areas.

That situation will be exacerbated in whichever city Amazon chooses to land, experts said.

“There is no city on the list that can avoid upward rents and house prices, probably pretty sharp ones,” Stockton Williams, executive vice president at the Urban Land Institute, a global network of real estate and land use experts, told the Thomson Reuters Foundation.

While the Amazon HQ2 shortlist does not include the nation’s most expensive housing market — metro San Francisco — it does include many other expensive cities like Boston, Los Angeles, New York City, Toronto, and Washington, D.C. Williams believes some are better equipped than others to

handle a potential Amazon HQ2.

Austin, Boston, Denver, Nashville, New York City, and Washington, D.C. have all shown “a sustained effort, commitment, and growing capacity” to increasing their supply of affordable housing, he said. “It’s a good start, if not enough,” he said.

One of the bidding cities, the U.S. capital Washington D.C. said it would work to ensure the rewards of hosting Amazon’s second headquarters countered any negative impacts.

“Our job is to ensure that the benefits of Amazon HQ2 significantly outweigh the costs,” said a spokeswoman for the city’s Department of Economic Development.

“If we do our job well, we will be able to leverage the benefits, such as additional revenues, to address the needs of residents, such as affordable housing.”

Bidding war

The search for a second North American headquarters after Seattle set off a frenzied competition, with some 238 initial applications, offering incentives including big tax breaks.

The largest has been on behalf of Newark, where New Jersey offered $7 billion in financial incentives for Amazon to choose the city for the new campus, which itself only promises $5 billion in direct investment.

Efforts to lure Amazon with taxpayer funds are a “big mistake,” said urbanist Richard Florida.

“An auction that pits more than 200 cities against each other in a bidding war makes no sense for anyone,” said Florida, a scholar at the Penn Institute for Urban Research.

“The company should issue an ‘Amazon Pledge’ that it will not accept any tax or financial incentives, but invest alongside cities to create better jobs, build more affordable housing, and develop better schools, transit, and other badly needed public goods, along with paying its fair share of taxes,” Florida said.

An Amazon spokesperson said the company had no comment on the proposed Amazon Pledge.

In May 2017, Amazon announced a plan to host homeless families on six floors of a new office building in Seattle in partnership with a local non-profit.

According to company surveys, about one-fifth of Amazon’s Seattle employees walk to work, while another 35 percent cycle or use public transportation.

Once the company settles on the winner, the city has the opportunity to extract concessions, said Williams of the Urban Land Institute.

“Cities do have leverage to ensure that big corporate redevelopment projects generate community benefits, in particular benefits that can offset some of the negative impact that comes along with many of the positive impacts of a company like Amazon locating in a city,” he said.

Amazon could work with a housing developer, contribute to local affordable housing funds, or support grassroots groups providing affordable housing themselves.

“I don’t see a city on this list that wouldn’t on net be better off as a result of Amazon arriving,” Williams said. Others were skeptical of Amazon’s willingness to make concessions. “It is as hard-nosed a company as America has seen,” said Nelson.
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