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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The Federal Reserve announced Friday that it was imposing more penalties on Wells Fargo, freezing the bank’s growth until it can prove it has improved its internal controls. In addition, bank agreed to replace four board members.

It’s the latest blow against the San Francisco bank that has had its reputation tarnished by revelations it opened phony customer accounts and sold auto insurance to customers who did not need it.

The new penalties were announced on Fed Chair Janet Yellen’s last day at the central bank.

“We cannot tolerate pervasive and persistent misconduct at any bank,” Yellen said in a statement. “The enforcement action we are taking today will ensure that Wells Fargo will not expand until it is able to do so safely and with the protections needed to manage all of its risks and protect its customers.”

The Fed said it was restricting the bank’s assets to the level where they stood at the end of last year until it can demonstrate that it has improved its internal controls.

Stock price drops

The announcement came after the close of trading on Wall Street. The bank’s stock fell more than 6 percent in after-hours trading.

Wells Fargo has 16 members on its board of directors. It agreed to replace three directors by April and another one by year’s end. The letter did not say whether particular board members were being singled out. Fed officials referred questions about who will be replaced to the bank.

In a statement, Wells Fargo said it was “confident” it would satisfy the Fed’s requirements.

“We take this order seriously and are focused on addressing all of the Federal Reserve’s concerns,” the bank’s CEO, Timothy Sloan, said. “It is important to note that the consent order is not related to any new matters, but to prior issues where we have already made significant progress.”

Sloan said that “while there is still more work to do, we have made significant improvements over the past year to our governance and risk management that address concerns highlighted in this consent order.”

The Fed’s new order marked the latest chapter in a series of scandals that have rocked the bank in recent years.

Fake accounts

Wells Fargo has admitted that employees opened more than 3 million fake accounts in order to meet sales quotas. It ended up paying $185 million to regulators and settled a class-action suit for $142 million.

It also has admitted it signed up hundreds of thousands of auto loan customers for auto insurance they did not need. Some of those customers had their cars repossessed because they could not afford both the auto loan and insurance payments.

And Wells Fargo also offered refunds to customers last year after acknowledging that its mortgage bankers unfairly charged them fees to lock in interest rates on mortgages.

The Fed’s action came on a 3-0 vote. Randal Quarles, who is the Fed’s vice chairman for supervision, has recused himself from participating in matters involving Wells Fargo.

With Yellen’s departure, Fed officials said that the central bank would still be able to deal with Wells Fargo issues with the two remaining board members — Jerome Powell, who has been a member of the Fed’s board since 2012 and is taking over for Yellen as chairman on Monday, and Lael Brainard.

Marvin Goodfriend, an economics professor from Carnegie Mellon University, has been nominated by President Donald Trump for one of the vacancies on the seven-member board, but the Senate has not yet acted on the nomination. Trump has not yet nominated people to fill the other vacancies.
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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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