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Wells Fargo is shutting down all private line of credit score accounts

Wells Fargo is ending a popular consumer lending product, angering some of its customers, CNBC has learned.

The bank is shutting down all existing personal lines of credit in coming weeks and has stopped offering the product, according to customer letters reviewed by CNBC.

The revolving credit lines, which typically let users borrow $3,000 to $100,000, were pitched as a way to consolidate higher-interest credit card debt, pay for home renovations or avoid overdraft fees on linked checking accounts.

“Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in the six-page letter. The move would let the bank focus on credit cards and personal loans, it said.

A man walks past a Wells Fargo Bank branch on a rainy morning in Washington.

Gary Cameron | Reuters

Wells Fargo CEO Charles Scharf has been forced to make difficult decisions during the coronavirus pandemic, offloading assets and deposits and stepping back from some products because of limitations imposed by the Federal Reserve. In 2018, the Fed barred Wells Fargo from growing its balance sheet until it fixes compliance shortcomings revealed by the bank’s fake accounts scandal.

The asset cap has ultimately cost the bank billions of dollars in lost earnings, based on the balance sheet growth of rivals including JPMorgan Chase and Bank of America over the past three years, analysts have said.

It has also affected Wells Fargo’s customers: Last year, the lender told staff it was halting all new home equity lines of credit, CNBC reported. Months later, the bank also withdrew from a segment of the auto lending business.

With its latest move, Wells Fargo warned customers that the account closures “may have an impact on your credit score,” according to a “Frequently Asked Questions” segment of the letter.

Another part of the FAQ asserted that the account closures couldn’t be reviewed or reversed: “We apologize for the inconvenience this Line of Credit closure will cause,” the bank said. “The account closure is final.”

Sen. Elizabeth Warren, a frequent critic of the banking industry, denounced Wells Fargo’s decision to pull back the credit lines.

Simplify offerings

Wells Fargo didn’t directly answer questions as to what role, if any, the Fed asset cap played in its latest move.

The bank gave this statement: “In an effort to simplify our product offerings, we’ve made the decision to no longer offer personal lines of credit as we feel we can better meet the borrowing needs of our customers through credit card and personal loan products.”

After publication of this article, a Wells Fargo spokesman gave additional remarks: “We realize change can be inconvenient, especially when customer credit may be impacted,” the bank said, adding that it was “committed to helping each customer find a credit solution that fits their needs.”

Customers have been given a 60-day notice that their accounts will be shuttered, and remaining balances will require regular minimum payments at a fixed rate, according to the statement. When it was offered, the credit lines had variable interest rates ranging from 9.5% to 21%.

The move is a strange one given the banking industry’s need to boost loan growth.  

After a burst of commercial lending during the early days of the pandemic, loan growth has been hard to muster. Corporations have used money raised in stock and debt issuance to retire bank credit lines, and consumers stuck at home had fewer reasons to use credit cards.

In fact, last year big banks experienced the first aggregate drop in loans in more than a decade, according to Barclays bank analyst Jason Goldberg. Of the four largest U.S. banks, Wells Fargo saw the worst decline.

After banks saw that borrowers held up far better than they had initially feared, the industry recently began marketing new credit cards with large sign-on bonuses in an effort to boost lending.

Making the switch

Wells Fargo doesn’t disclose how many customers used the credit lines it is eliminating. It had $24.9 billion in loans in a category called “other consumer” as of March, which was 26% lower than the year-earlier period.

One customer said the change is prompting him to switch banks after more than a decade with Wells Fargo. Tim Tomassi, a Portland, Oregon, programmer, said he used a personal line of credit linked to his checking account to avoid expensive overdraft fees.

“It’s a bit upsetting,” Tomassi said in a phone interview. “They’re a big bank, and I’m a small person, and it feels like they’re making decisions for their bottom line and not for customers. A lot of people are in my position, they need a cushion every once in a while from a line of credit.”

Tomassi said he is considering opening an account at Ally or Chime, banking players that don’t charge overdraft fees.

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Rachmawati Sukarnoputri, 70, Sibling Rival in Indonesia Politics, Dies

Mrs. Rachmawati entered politics after the fall of Suharto, helping to found the Pioneers’ Party in 2002. But it won only a tiny number of seats in Parliament. She joined the Nasdem Party in 2012 but quickly left it to join the Great Indonesia Movement Party, or Gerindra, the party of Suharto’s son-in-law Prabowo Subianto. At her death she was on its board of trustees.

Updated 

July 8, 2021, 6:10 p.m. ET

“Rachmawati always sided with anyone who opposed her eldest sister, including Prabowo,” said Andreas Harsono, a Human Rights Watch researcher who wrote a book about the early days of Indonesia, “Race, Islam and Power” (2019), and who knows the Sukarno siblings.

“It is a dysfunctional family,” he said.

Mrs. Rachmawati was accused of being involved in a plot in 2016 to rally hard-line Islamists to kidnap the Christian governor of Jakarta. She was one of 11 people arrested on treason charges related to the plot but was released a day later, denying that she had been involved and saying, “How could I be doing treason against the country that my father helped found?”

The Jakarta governor, Basuki Tjahaja Purnama, was a close ally of President Joko Widodo, whose Indonesian Democratic Party of Struggle was headed by Mrs. Megawati.

Diah Permana Rachmawati Sukarno was born in Jakarta on Sept. 27, 1950, to Sukarno and his third wife, Fatmawati, who was considered his official consort for ceremonial occasions. Rachmawati was the third of five children of that marriage and had several half-siblings from Sukarno’s eight other marriages.

Like Mrs. Megawati, she took on the patronymic Sukarnoputri, meaning daughter of Sukarno, to emphasize the connection to their father.

When she was 3, her mother left the palace in protest of Sukarno’s plans to take a new wife, and Rachmawati was raised mainly by a foster mother.

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Inventory futures are flat after market sell-off

Traders on the floor of the New York Stock Exchange.

Source: NYSE

Stock futures were flat in overnight trading on Thursday after major indices fell on concerns over slowing economic growth.

Futures on the Dow Jones Industrial Average lost 25 points, or 0.07%. S&P 500 futures and Nasdaq futures were each down 0.10%.

Thursday’s losses came as the spread of the highly contagious Delta-Covid variant also fueled concerns over the global economic recovery. The Olympics announced a ban on spectators for the Tokyo Summer Games when Japan declared a state of emergency to curb the spread of the coronavirus.

The Dow closed Thursday’s regular session 259.86 points, or 0.75% lower. The S&P 500 lost 0.86% while the Nasdaq broke its four-day winning streak, down 0.72%.

All three major averages are on track to close lower for the week.

Stocks of companies tied to the economic comeback weighed on the market on Thursday. Large cruise lines, airlines, and home improvement stocks plummeted. Chip stocks also fell, and big tech names fell after rising in previous sessions.

“[T]The market continues to consider what to do after spikes in growth and the Fed will turn the tap (which has not necessarily happened yet) and ahead of a profitable season in Q221 starting next Tuesday, “Goldman Sachs’ Chris Hussey said in a statement on Thursday .

The latest unemployment claims report, released Thursday, also indicated a potential slowdown in the labor sector as first-time applicants for unemployment benefits unexpectedly rose to 373,000 in the week ending July 3. According to the Dow Jones, economists wanted 350,000 initial applications.

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Haiti President’s Assassination: Dwell Updates

Here’s what you need to know:

Credit…Valerie Baeriswyl/Agence France-Presse — Getty Images

Nearly 24 hours after the assassination of President Jovenel Moïse of Haiti in the bedroom of his home, gunfire erupted in the capital, Port-au-Prince, late Wednesday as the security forces engaged in a chaotic shootout with a group they described as suspected assailants, killing four and taking two into custody.

The interim prime minister, Claude Joseph, has placed the country under a “state of siege.” He said the authorities were continuing to hunt down the “mercenaries” who carried out the attack.

“This death will not go unpunished,” Mr. Joseph said in an address to the nation on Wednesday.

But the authorities did not identify those killed or in custody, and offered no evidence of their involvement in Mr. Moïse’s death.

The rapidly evolving crisis deepened the turmoil and violence that has gripped Haiti for months, threatening to tip one of the world’s most troubled nations further into lawlessness.

Haiti’s police chief, Leon Charles, said that the security forces were in control of the situation even as he acknowledged that other suspected members of the hit squad remained at large.

Even as questions swirled about who might have been behind such a brazen attack and how they eluded the president’s security detail to carry it out, the uncertain political landscape added to the deep unease that gripped the Caribbean nation of 11 million.

While Mr. Joseph — the nation’s sixth prime minister in the last four years — declared that he was now in charge, his hold on power is tenuous given that a new prime minister, Ariel Henry, was scheduled to be sworn in this week.

Mr. Henry said that Mr. Joseph was “no longer prime minister” and contended that the office belonged to him. The country currently has no functioning Parliament, and it is uncertain when or even whether elections slated for the fall will take place.

An emergency meeting of the United Nations Security Council on the crisis was set for Thursday afternoon. In a statement, members unanimously called for “all parties to remain calm, exercise restraint” and avoid “any act that could contribute to further instability.”

President Biden called the assassination “horrific” and pledged U.S. assistance.

With rumors rife, some details of the attack started to come into focus.

Haiti’s ambassador to the United States, Bocchit Edmond, said at a news conference that the killing of the country’s president had been carried out “by well-trained professionals, killers, commandos.”

Carl Henry Destin, a Haitian judge, told the Nouvelliste newspaper that the assailants had posed as agents of the U.S. Drug Enforcement Administration — both U.S. and Haitian officials said that they were not associated with the D.E.A. — when they burst into the president’s private home on the outskirts of the capital around 1 a.m. on Wednesday.

Judge Destin said that a maid and another member of the household staff had been tied up by the attackers as they made their way to the president’s bedroom.

The president was shot at least 12 times, he said.

“The offices and the president’s bedroom were ransacked,” Mr. Destin said. “We found him lying on his back, blue pants, white shirt stained with blood, mouth open, left eye blown out.”

He said Mr. Moise appeared to have been shot with both large-caliber guns and smaller 9-millimeter weapons.

The president’s wife, Martine Moïse, was injured in the assault and was rushed by air ambulance to the Ryder Trauma Center in Miami, where Mr. Joseph said she was “out of danger” and in stable condition.

Mr. Destin said that the couple’s daughter, Jomarlie, was also at home during the attack but had hid in a bedroom and escaped unharmed.

The late President Jovenel Moïse of Haiti, center, with his wife, Martine Moise, and interim Prime Minister Claude Joseph, right, at a ceremony in Port-au-Prince in May.Credit…Joseph Odelyn/Associated Press

An already turbulent political landscape in Haiti threatened to descend into further turmoil on Thursday as a power struggle between two competing prime ministers stoked tensions after the assassination of President Jovenel Moïse.

The country’s interim prime minister, Claude Joseph, has said he is in charge and declared a “state of siege” for 15 days, essentially putting the country under martial law. But even constitutional experts are unsure whether he has the legal authority to impose it and whether he can stay in power.

Mr. Joseph was supposed to be replaced this week by Ariel Henry, who had been appointed prime minister by Mr. Moïse in recent days. But hours after the killing, Mr. Joseph assumed leadership of Haiti, taking command of the police and army in what he said was an effort to ensure order and stability. Secretary of State Antony J. Blinken spoke with Mr. Joseph, offering condolences, the State Department said on Wednesday.

Mr. Henry, in an interview with the Nouvelliste newspaper, said that Mr. Joseph was “no longer prime minister” and instead claimed his right to run the government.

“I am a prime minister with a decree that was passed in my favor,” Mr. Henry said, adding that he had been in the process of forming his government, of which Mr. Joseph was expected to be a member.

Mr. Henry said that he “did not want to add fuel to the fire,” but he criticized Mr. Joseph’s decision to impose a state of siege and called for a dialogue that could ensure a smooth political transition.

Lilas Desquiron, a Haitian writer who was culture minister from 2001 to 2004, said the situation was deeply confused since Mr. Moise had “left behind a prime minister that he had dismissed and another that he had not yet installed.”

Today’s Haiti is a parliamentary democracy without a functioning Parliament. Before his death, Mr. Moïse had been ruling by decree, and the president’s office is traditionally vested with most of the executive powers. It also appoints the prime minister. Long-planned elections were scheduled for later this year, but it was unclear on Thursday when or whether they will take place.

Haiti has a long history of political instability. The country has been rocked by a series of coups in the 20th and 21st centuries, often backed by Western powers, and has been marked by frequent leadership crises that have driven Haitians into the streets in protest.

It is unclear whether the political implications of this week’s assassination will follow a similar pattern.

Ms. Desquiron said that “no one understands” what is happening at the political level and that most Haitian political and intellectual actors were currently in a “wait-and-see and powerless position.”

A few hours after the assassination, Mr. Joseph called for calm and told the Haitian public that the situation was under control. He also declared a 15-day period of national mourning, starting on Thursday.

“During these 15 days of national mourning, the national flag will be flown at half-mast, nightclubs and other similar establishments will remain closed, and radio and television stations are invited to program circumstantial programs and music,” read the order, which was published in the official government journal, Le Moniteur.

A police officer standing guard outside the presidential residence in Port-au-Prince on Wednesday.Credit…Valerie Baeriswyl/Agence France-Presse — Getty Images

Not long after Haiti’s president was shot to death by assassins who burst into his home early Wednesday, the country’s interim prime minister announced that he had declared an “état de siège” — a state of siege.

To many people around the world watching with alarm as events unfold in Haiti, the term was unfamiliar, even baffling.

But things grew a little clearer when the interim prime minister, Claude Joseph, published details of the order in the official government journal, Le Moniteur.

Haiti is now basically under martial law. For 15 days, the police and members of the security forces can enter homes, control traffic and take special security measures and “all general measures that permit the arrest of the assassins” of President Jovenel Moïse. It also forbids meetings meant to excite or prepare for disorder.

There is one wrinkle. Or two, really.

Only Parliament has the power to declare a state of siege, said Georges Michel, a Haitian historian and constitutional expert. But Haiti at this moment has no functional Parliament. The terms of the entire lower house expired more than a year ago, and only 10 of Haiti’s 30 Senate seats are currently filled.

“Legally, he can’t do this,” Mr. Michel said. “We are in a state of necessity.”

There are actually a few other wrinkles.

Mr. Joseph’s term as interim prime minister is about to end and, in fact, President Moïse had already appointed a replacement, his sixth since taking office.

“We are in total confusion,” said Jacky Lumarque, rector of Quisqueya Universty, a large private university in Port-au-Prince. “We have two prime ministers. We can’t say which is more legitimate than the other.”

It gets worse.

Haiti also appears to have two Constitutions, and the dueling documents say different things about what to do if a president dies in office.

The 1987 version — published in both national languages, Creole and French — deems that if the presidency is vacant for any reason, the country’s most senior judge should step in.

In 2012, however, the Constitution was amended, and the new one directed that the president should be replaced by a council of ministers, under the guidance of the prime minister. Except if, as was Mr. Moïse’s situation, the president was in the fourth year of office. In that case, Parliament would vote for a provisional president. If, of course, there were a Parliament.

Unfortunately, that Constitution was amended in French, but not in Creole. So as it stands, the country has two Constitutions.

“Things are unclear,” said Mr. Michel, who helped write the 1987 Constitution. “It’s a very grave situation.”

Mr. Lumarque lamented the state of his country.

“This is the first time where we’ve seen that the state is so weak,” he said. “There is no Parliament. A dysfunctional Senate. The head of the Supreme Court just died. Jovenel Moïse was the last legitimate power in the country’s governance.”

News Analysis

U.S. soldiers delivering aid from the World Food Program to Jabouin, Haiti, after Hurricane Matthew destroyed dozens of villages in 2016.Credit…Meridith Kohut for The New York Times

Haiti’s morass has for decades put it near the top of a list of nations that have captured the world’s imagination for their levels of despair. But the failures have not occurred in a vacuum: They have been assisted by the international community, which has pumped $13 billion of aid into the country over the last decade.

Instead of the nation-building that the money was supposed to achieve, Haiti’s institutions have become further hollowed out.

Haiti is less a failed state than what an analyst called an “aid state” — eking out an existence by relying on billions of dollars from the international community. Foreign governments have been unwilling to turn off the spigots, afraid to let Haiti fail.

Yet the money has served as a complicating lifeline — leaving the government with few incentives to carry out the institutional reforms necessary to rebuild the country, as it bets that every time the situation worsens, international governments will open their coffers, analysts and Haitian activists say.

The aid has propped up the country and its leaders, providing vital services and supplies. It has also allowed corruption, violence and political paralysis to go unchecked.

Instead of helping create a system that works, Haitian civil society leaders contend, the United States has propped up strongmen and tied the fate of the nation to them.

“Since 2018, we have been asking for accountability,” Emmanuela Douyon, a Haitian policy expert who gave testimony to the U.S. Congress this year, said in an interview. “We need the international community to stop imposing what they think is correct and instead think about the long term and stability.”

Members of Montreal’s Haitian diaspora holding an anti-Moïse demonstration outside the Haitian consulate in March.Credit…Nasuna Stuart-Ulin for The New York Times

Many Haitians in the diaspora are fearing the worst after the assassination of the country’s president, Jovenel Moïse, an act of violence that many consider a potent symbol of the mayhem experienced in the Caribbean nation in recent months.

Rodney Saint-Éloi, a Haitian-Canadian poet and publisher in Montreal, said the assassination of Mr. Moïse was a blow to democracy in Haiti. “It turns all Haitians into assassins, because he was, like it or not, the president of all Haitians,” he said. “It is the failure of a society and of an elite who helped get us to this point.”

Mr. Moïse, killed in an attack early Wednesday on the outskirts of the capital, Port-au-Prince, had presided over a country buffeted by instability, endemic corruption and gang violence. His refusal to cede power had angered Haitians the world over, and many in the diaspora had put off trips home for the past year as kidnappings and other acts of violence became more commonplace.

Because of its chronic instability, Haiti has a large diaspora, with some of the largest communities based in the United States, Canada, France and the Dominican Republic. About 1.2 million Haitians or people of Haitian origin live in the United States, according to 2018 data from the U.S. Census Bureau. But the figure is thought to be higher because of a sizable number of immigrants who are in the country without documentation.

Frantz André, a leading Haitian rights advocate in Montreal, organized a protest in March in which dozens of Haitians demonstrated against what they called Mr. Moise’s political repression. He described Mr. Moïse as a deeply polarizing figure and said that other Haitians abroad were feeling mixed emotions about the president’s killing.

“I don’t think it would be wise to scream victory at his assassination, because we don’t know what will come after and the situation could be even more precarious,” Mr. André said. “Educated people saw him as a threat to democracy, and others have been protesting against him because they have nothing to eat.”

Mr. André added that a sizable minority had supported Mr. Moïse and saw him as a catalyst for change, because he had promoted the idea of giving Haitians outside the country the right to vote and was pushing to change the Constitution.

The Haitian security forces are engaged in what the authorities described as a sweeping manhunt for suspects in the killing of President Jovenel Moïse. Four people were killed, and two more taken into custody after a shootout late Wednesday.

Brazilian soldiers with a U.N. mission in Port-au-Prince in 2007.Credit…Ruth Fremson/The New York Times

The United Nations once deployed thousands of peacekeeping troops and police officers in Haiti as part of a coordinated international effort to rescue the country from its chronic bouts of political violence and instability. But the cholera epidemic that followed the 2010 earthquake — spread by infected peacekeepers — indelibly tainted the global organization in the eyes of many Haitians.

Even the U.N. secretary-general who presided during that period, Ban Ki-moon, admitted in a memoir published last month that the cholera disaster “forever destroyed the United Nations’ reputation in Haiti.”

A peacekeeping force authorized by the Security Council in 2004, known as the United Nations Stabilization Mission in Haiti, or by its French acronym Minustah, was empowered to send as many as 6,700 troops of all ranks and more than 1,600 civilian police officers to Haiti.

Ninety-six members of the peacekeeping mission were among those killed in the 2010 earthquake, which by some estimates left more than 300,000 people dead. The crisis led the Security Council to strengthen Minustah’s size to as many as 8,940 soldiers and 3,711 police officers.

But many Haitians came to regard the peacekeepers as an occupying force, and one that did not necessarily protect them. The force’s reputation was further impaired by reports that a Nepalese contingent may have introduced cholera to the country through poor sanitation — reports that were later confirmed by independent investigations.

Mr. Ban eventually acknowledged some responsibility, but the U.N. successfully rejected claims for compensation sought by aggrieved Haitians. A U.N. trust fund established under Mr. Ban to help Haiti cope with the cholera epidemic’s aftermath, which was supposed to total $400 million, has only a fraction of that sum.

Minustah’s mandate was terminated in 2017 with a transition to a much smaller mission, known as the United Nations Integrated Office in Haiti or its French acronym, Binuh. But the mission, which is confined to the capital, Port-au-Prince, has struggled.

None of its aspirations — helping Haiti achieve good governance, the rule of law, a stable environment and promotion of human rights — have shown any significant progress.

Helen La Lime, a former American diplomat and Binuh’s chief, summarized the worsening conditions afflicting the country in a report last month to the Security Council:

“The deep-rooted political crisis which has gripped the country for the better part of the last four years shows no sign of abating,” she said. “A political agreement remains elusive, as the rhetoric used by some political leaders grows increasingly acrimonious.”

Stéphane Dujarric, a U.N. spokesman, said on Wednesday that Ms. La Lime was in “constant contact” with the interim prime minister, Claude Joseph, and that she was calling “on the Haitian people to ensure calm.”

Mr. Dujarric said Binuh was in the process of accounting for its 1,200 staff members in Haiti, which includes about 200 from other countries, and he was advising them to “stay in place and in a safe place.”

Correction: July 8, 2021

An earlier version of this article misstated the amount that had been intended for a trust fund established by the United Nations to help Haiti in the aftermath of the cholera epidemic. It was $400 million, not $400,000.

An ambulance carrying the body of President Jovenel Moise in Port-au-Prince, Haiti, on Wednesday.Credit…Reuters

With security forces still hunting for the killers and investigators combing through the evidence from the scene of his assassination, the body of Haiti’s slain president, Jovenel Moïse, was loaded onto an ambulance on Wednesday, bound for a morgue.

A procession of cars was seen speeding away from the presidential residence, but things apparently did not go as planned: Encountering a highway blocked by tires, and hearing gunfire, observers said, the drivers made a quick turnaround.

They needed another route.

The same could be said for Haiti itself on Thursday, a day after its president was shot by a team of assassins described as “well-trained professionals” who had stormed his home on the outskirts of the capital, Port-au-Prince, and then disappeared into the night.

Now, an interim prime minister whose legitimacy was already under question — a replacement was named before the assassination — has declared himself in charge, and put the country under a Haitian version of martial law.

Parliament is riddled with vacancies and inactive. And a country steeped in violence is poised for things to get worse. Late Wednesday, prolonged gunfire could be heard in Port-au-Prince.

“It’s a very grave situation,” said Georges Michel, a Haitian historian and constitutional expert.

The interim prime minister, Claude Joseph, appealed for calm. “Let’s search for harmony to advance together, so the country doesn’t fall into chaos,” he said in a televised address to the nation.

But the country has learned the hard way over the decades, through earthquake and disease, poverty and political turbulence, that chaos feels always near at hand.

“I don’t know what’s going to happen now,” one man said as neighbors gathered to exchange news. “Everything is possible.”

Andre Paultre contributed reporting.

Haiti’s capital, Port-au-Prince, in 2017.Credit…Daniel Berehulak for The New York Times

Haiti has been thwarted by outside interests from its very foundation as a country.

For decades, European powers, and later the United States, refused to recognize it as an independent republic.

The Caribbean nation became the world’s first Black-led republic when it declared its independence from France on New Year’s Day 1804. That day, Saint-Domingue, once France’s richest colony, known as the “Pearl of the Antilles,” became Haiti.

It was a land long coveted for its riches of sugar, coffee and cotton, brought to market by enslaved people. Its declaration of independence meant that, for the first time, a brutally enslaved people had wrenched their freedom from colonial masters. But it came only after decades of bloody war.

In 1825, more than two decades after independence, the king of France, Charles X, sent warships to the capital, Port-au-Prince, and forced Haiti to compensate former French colonists for their lost property.

Haiti, unable to pay the hefty sum, was forced into a debt that it had to shoulder for nearly a century. Throughout the 19th century, a period marked by political and economic instability, the country invested little in its infrastructure or education.

In 1915, U.S. troops invaded after a mob killed the Haitian president.

The United States later justified its occupation as an attempt to restore order and prevent what it said was a looming invasion by French or German forces. But U.S. troops reintroduced forced labor on road-construction projects and were later accused of extrajudicial killings.

The widely unpopular occupation ended in 1934, but U.S. control over Haiti’s finances lasted until 1947.

After a series of midcentury coups, the Duvalier family, father-and-son dictators, reigned over Haiti with brute force until the 1980s. Their regime plunged Haiti deeper into debt, and introduced the so-called Tontons Macoutes, an infamous secret police force that terrorized the country.

In the early 1990s, Jean-Bertrand Aristide, a former Roman Catholic priest, was elected president. He was then ousted twice from power over the next 15 years.

Mr. Aristide preached liberation theology, and threatened the establishment by promising economic reforms. After a first coup, he was restored to power. But he left the presidency for good after a second coup in 2004, which was supported by the United States and France. He was exiled to the Central African Republic and, later, to South Africa.

Haiti, with a population of 11 million, is considered the poorest country in the Western Hemisphere.

In 2010, it suffered a devastating earthquake that claimed the lives of about 300,000 people. The country never really recovered, and it has remained mired in economic underdevelopment and insecurity. A cholera outbreak in 2016, linked to U.N. peacekeepers, killed at least 10,000 Haitians and sickened another 800,000.

Then early Wednesday, Jovenel Moïse, who became president in 2017, was assassinated at his residence.

A street market in Port-au-Prince, Haiti, last month.Credit…Joseph Odelyn/Associated Press

The assassination of President Jovenel Moïse of Haiti on Wednesday could complicate efforts to contain the Covid-19 pandemic in the Caribbean nation, which has yet to begin vaccinating its citizens, officials from the World Health Organization warned.

Carissa Etienne, the director of the Pan American Health Organization, which is part of the W.H.O., said her organization had made Haiti a priority in recent weeks as reported cases have surged.

“I am hopeful that the arrival of vaccines in the country can start to turn the tide of the pandemic and bring some relief to the Haitian people during these very difficult times,” Dr. Etienne said. “We continue to stand with them now and will redouble our efforts.”

Haiti did not experience the kind of surge early in the pandemic that many experts feared could devastate the country, the poorest in the Western Hemisphere. But the pandemic has grown worse in recent weeks, with a rise in reported cases that experts say is almost certainly an undercount, considering the country’s limited testing capacity.

Last month, Covid-19 claimed the life of René Sylvestre, the president of Haiti’s Supreme Court — a leading figure who might have helped to establish order in the wake of an assassination that has plunged the country into even deeper political uncertainty.

Dr. Etienne’s organization said in an email that while it was too soon to evaluate the impact of the assassination, “further deterioration of the security situation in Haiti could have a negative impact on the work that has been done to curtail Covid-19 infections,” as well as on vaccination plans.

VideoVideo player loadingPresident Jovenel Moïse of Haiti was killed in an attack at his private residence on the outskirts of the capital, Port-au-Prince.CreditCredit…Andres Martinez Casares/Reuters

The organization said that Haiti was also facing challenges from the start of hurricane season and the recent detection of the Alpha and Gamma virus variants on the island. Though “vaccines are expected to arrive shortly” in Haiti, the organization said it did not have a specific delivery date.

In June, Dr. Etienne urged the global community to do more to help Haiti cope with rising coronavirus cases and deaths. “The situation we’re seeing in Haiti is a cautionary tale in just how quickly things can change with this virus,” she said.

Haiti is an extreme example of the “stark inequities on vaccine access,” Dr. Etienne said. “For every success, there are several countries that have been unable to reach even the most vulnerable in their population.”

Across Latin America and the Caribbean, there are millions of people who “still don’t know when they will have a chance to be immunized,” she said.

She said the inequitable distribution of vaccines posed practical and moral problems.

“If we don’t ensure that countries in the South have the ability to vaccinate as much as countries in the North, this virus will keep circulating in the poorest nations for years to come,” Dr. Etienne said. “Hundreds of millions will remain at risk while the wealthier nations go back to normal. Obviously, this should not happen.”

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Inventory futures drop after S&P 500, Nasdaq notch recent data

People walk by the New York Stock Exchange on April 15, 2021 in New York City.

Spencer Platt | Getty Images

Futures contracts tied to the major U.S. stock indexes fell in early morning trading Thursday after both the S&P 500 and Nasdaq Composite closed at records.

Dow futures dropped 369 points. Contracts tied to the S&P 500 and Nasdaq 100 were both in negative territory.

The moves in futures came after a positive regular session for U.S. markets on Wednesday.

The S&P 500 rose 0.3% to an all-time high of 4,358.13, while the Dow Jones Industrial Average advanced 104.42 points to 34,681.79. The technology-heavy Nasdaq Composite closed just above its own flatline to eke out a record close.

Popular internet and technology stocks again outperformed the broader market on Wednesday as investors bought equity in companies that prioritize growth instead of the reopening names in the energy and retail sectors that proved popular in the first half of the year.

Apple, Microsoft and Amazon — up 1.8%, 0.8% and 0.5% on Wednesday — are each up by double-digits over the last month. While traders have cited several reasons for the shift back into Big Tech, most mention a marked decline in bond yields when discussing the move.

The downshift in the benchmark 10-year Treasury note yield continued Wednesday, when the rate fell to 1.296%, its lowest level since February. Higher yields reduce the value of future earnings relative to current earnings, meaning that the appetite for growth stocks tends to rise when rates fall.

“The 40 basis point decline in the yield on the benchmark 10-year Treasury note since late-March suggests that the global grab for yield remains a potent force, despite the Fed’s desire to let the economy run hot,” Steven Ricchiuto, U.S. chief economist at Mizuho Securities, wrote on Tuesday.

“A stronger currency, increased virus concerns oversea, and the associated demand for long-term Treasury notes and bonds implies reduced inflation expectations and increased risk of importing global deflation,” he added.

Looking ahead to Thursday’s session, investors will pore over the Labor Department’s latest jobless claims figures. The weekly update offers Wall Street regular insight into the pace of layoffs in the U.S. economy, which has been declining amid the Covid-19 vaccine rollout.

Economists expect to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to Dow Jones.

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The Newest Information on the Killing of Jovenel Moïse

Four people suspected of being involved in the assassination of Haitian President Jovenel Mose were killed by the police in an exchange of fire and two others were arrested, the Haiti police chief said on Wednesday. The chief, Léon Charles, also said three police officers who had been held hostage have been released.

“The police are fighting with the attackers,” he said at a press conference, noting that the authorities were still pursuing a few suspects. “We pursue them so that they meet their fate in a shootout or die in a shootout or we arrest them.”

Millions of Haitians anxiously huddled around radios and televisions all day, staying away from the streets to understand who killed the president, why and what the coming days could mean for the country. The attack created a political void that threatens to deepen the turmoil that has gripped Haiti for months.

Mr Moïse’s wife, Martine Moïse, was also shot dead in the attack, Interim Prime Minister Claude Joseph said in a statement. Ms. Moïse was taken to a hospital in South Florida for treatment.

“A group of strangers, some of whom speak Spanish, attacked the private residence of the President of the Republic, fatally injuring the head of state,” said the prime minister, but little confirmed information was available as to who might have carried out the assassination.

In an interview with the New York Times, Mr. Joseph said that he is the one ruling the country at the moment. However, it was unclear how much control he had or how long it would take. A new prime minister was slated for this week to replace Mr Joseph and the chairman of the nation’s highest court, who may also have helped restore order, died of Covid-19 in June.

Later on Wednesday, Mr. Joseph presented himself as head of government on a television broadcast to the nation, announcing that he and his fellow ministers had declared a “state of siege”.

Mr. Joseph called for calm.

“Let’s look for harmony in order to move forward together so that the country doesn’t get into chaos,” he said.

He also vowed that the commando that carried out the attack would be brought to justice.

News of the murder of Mr Moïse rocked the Caribbean nation 675 miles southeast of Miami. But it was already in turmoil.

Protesters have taken to the streets in recent months to demand that Mr Moïse be removed. He had clung to power and ruled by decree for over a year, although many – including constitutional scholars and legal experts – argued that his term had expired. Others, including the United States, supported his position that his term does not end until next year.

Armed gangs patrol many streets and even kidnap school children and church pastors in the middle of their church services. Poverty and hunger are on the rise, and the government is accused of enriching itself without providing even the most basic services.

Now the political vacuum left by the murder of Mr Moïse could fuel a cycle of violence, experts warned.

More than two centuries ago, Haitians fought to shake off the yoke of colonial France and put an end to one of the world’s most brutal slave colonies that had brought great fortune to France. What began as a slave revolt at the beginning of the 18th century ultimately led to the breathtaking defeat of Napoleon’s troops in 1803.

But the suffering of the Haitians did not end with the expulsion of the French.

More recently, the country has suffered more than two decades of dictatorship from François Duvalier, known as Papa Doc, and his son Jean-Claude, known as Baby Doc.

In 1990 a poor local priest, Jean-Bertrand Aristide, was elected president. But in less than a year he was ousted in a coup.

The country has not rebuilt since a devastating earthquake 11 years ago, and many say it is doing worse despite billions of dollars in reconstruction aid.

On Wednesday, Mr. Joseph said the president was “cowardly murdered” but the killers “cannot murder his ideas.” He urged the country to “keep calm” and said he would address the nation later that day.

He said the country’s security situation is under the control of the police and army. But international observers warned that the situation could quickly spiral out of control.

Didier Le Bret, a former French ambassador to Haiti, said the situation in Haiti had become so volatile that “many people had an interest in getting rid of Moïse”.

He said he hoped that despite his lack of political legitimacy, Mr. Joseph would be able to rule the country.

Mr Le Bret criticized the international community for ignoring the unstable political situation in Haiti and said it should now help the country “ensure a smooth transition”.

Harold Isaac contributed to the coverage.

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S&P 500 rises to new document as Large Tech shares acquire

The S&P 500 rose to a fresh record on Wednesday as investors poured back into trusty mega-cap technology stocks.

The S&P 500 advanced 0.35% to a new intraday high after the index ended a seven-day winning streak in the previous session. The Dow Jones Industrial Average rose about 70 points. The technology-heavy Nasdaq Composite rose 0.1% after hitting a fresh record shortly after the open.

With rates falling and Wall Street fretting about a peak in economic growth, investors have rediscovered their old Big Tech favorites. Apple and Amazon are both up more than 10% over the past month, far outpacing the S&P 500’s 2.8% return.

Defying many predictions, the 10-year Treasury yield fell to 1.306% on Wednesday. Major technology names like Apple and Google-parent Alphabet rose on Wednesday. Shares of Amazon gained 1% even after the e-commerce giant rallied nearly 5% on Tuesday.

“As has been the case for some time, the direction of bond yields and tech stock have been joined at the hip,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “Traders will be watching as S&P 500 tech index move closer to its relative price high established last September. A break above that level would certainly reinforce a sustained leadership cycle for tech.”

The Federal Reserve’s minutes from its June 15-16 meeting, during which it held short-term interest rates near zero but also indicated that it might be adjusting policy otherwise in the months ahead, revealed the central bank discussed tapering but was in no rush to start the process.

Energy stocks were in the red as oil prices fell. WTI crude touched a 6-year high briefly on Tuesday before retreating. Crude was down again on Wednesday. Occidental Petroleum, APA Corp. and Pioneer Natural Resources all dipped more than 2%.

Bank shares including Goldman Sachs and Bank of America continued their retreat on Wednesday as long-term bond yields fell further, hurting the industry’s profitability prospects. Yields on the short-end of the so-called Treasury curve, including 1-year bills and 2-year notes, were flat to higher.

During the regular session on Tuesday, the 30-stock Dow fell 208 points. The S&P 500 ended the day down by 0.2%, retreating from a record. The Nasdaq Composite rose nearly 0.2% to a fresh all-time high.

Investors may be worried the economy might be approaching its peak and that a correction could be on the way. In addition to complacency in the market, the combination of profit-margin pressures, inflation fears, Fed tapering and possible higher taxes could contribute to an eventual drawdown, market strategists say.

— CNBC’s Patti Domm contributed reporting.

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Jovenel Moise’s Assassination: Reside Updates

Recognition…Valerie Baeriswyl / Agence France-Presse – Getty Images

The Prime Minister said the Haitian President Jovenel Moïse was murdered in an attack in his house on the outskirts of the capital Port-au-Prince.

Mr Moïse’s wife, Martine Moïse, was also shot dead in the attack, Prime Minister Claude Joseph said in a statement. Her condition was not immediately clear.

“A group of strangers, some of whom speak Spanish, attacked the private residence of the President of the Republic, fatally wounding the head of state,” said the Prime Minister.

Mr. Joseph said in a telephone interview that he is currently the one ruling the country.

The news rocked the impoverished Caribbean island nation 675 miles southeast of Miami. Haiti has a long history of dictatorships and coups d’état, and democracy never fully took hold.

In recent months, the streets of Haiti have been clogged with angry protests demanding the removal of Mr Moïse. He had clung to power and ruled by decree for over a year, with many – including constitutional scholars and legal experts – claiming his term had expired.

The country has not rebuilt since a devastating earthquake 11 years ago, and many say it is doing worse despite billions of dollars in reconstruction aid. Armed gangs patrol the streets and even kidnap school children and church pastors in the middle of their church services. Poverty and hunger are on the rise, and the government is accused of enriching itself without providing even the most basic services.

Mr. Joseph said the president was “cowardly murdered” but the killers “cannot murder his ideas.” He urged the country to “keep calm” and said he would speak to the nation on Wednesday. He said the country’s security situation is under the control of the police and army.

But international observers warned that the situation could quickly spiral out of control.

Didier le Bret, the former French ambassador to Haiti, told France 24 that the political situation was volatile. A new Prime Minister, Ariel Henry, was due to be sworn in on Wednesday. Because that didn’t happen, it wasn’t clear who ruled the country, he said.

“It’s a big question mark,” he said, warning that the situation could lead to more widespread violence.

Harold Isaac, Elian Peltier and Constant Méheut contributed to the coverage.

March protests in Port-au-Prince.Recognition…Valerie Baeriswyl / Agence France-Presse – Getty Images

Jovenal Moïse struggled to quell growing public anger over his attempt to retain power, despite the opposition insisting that his term in office had expired.

Mr Moïse had ruled by decree for more than a year. Many, including prominent lawyers, claim his term ended in February. Haiti has been rocked by protests against its rule and has seen gang activity rise as well.

The opposition said Mr Moïse’s five-year term should have ended on February 7th, five years to the day since his predecessor Michel Martelly resigned. When Mr Moïse refused to leave office, thousands of Haitians took to the streets and set fire to trash and tires as they called for his resignation.

In response, the government announced the arrest of 23 people, including a chief judge and a senior police officer, who the President said tried to kill him and overthrow the government.

“The aim of these people was to assassinate my life,” said President Moïse at the time. “This plan has been canceled.”

Mr Moïse insisted that he had one year left in office as his term only started one year after the vote that put him at the top on allegations of electoral fraud.

The protests this year were part of wider riots in which heavily armed gangs clashed in the streets and attacked police stations.

“While the exact numbers are still unclear, preliminary estimates suggest that thousands of people have fled their homes and sought refuge with host families or settled in informal shelters,” the United Nations Office for the Coordination of Humanitarian Affairs said last Month in a report on the situation.

Haitians took to the streets in Port-au-Prince in March to protest Jovenal Moïse's new constitution.Recognition…Jean Marc Herve Abelard / EPA, via Shutterstock

Despite public unrest and weak political support, he pursued an aggressive agenda in the months leading up to the assassination of President Jovenal Moïse, which included revising the country’s constitution.

Among the provisions he pushed for was one that granted Haiti’s leaders immunity for all actions during his tenure, leading critics to accuse him of threatening democracy and leading the country on a course towards authoritarian rule.

“We need a system that works,” said Moïse in a phone interview with the New York Times in March. “The system is not working now. The President cannot work to deliver. “

The US, whose support for Haiti is vital, had asked the country to hold presidential and parliamentary elections as soon as technically possible. It also resisted efforts to draft a new constitution based on the guidelines proposed by Mr Moïse.

Foreign Minister Antony Blinken outlined the tougher stance of the Biden administration during a hearing of the House Foreign Affairs Committee in June.

Although many have criticized Mr Moise’s approach to reshaping the government, many Haitians say a new constitution is needed.

The current one has created two competing centers of power in the country – the president and the prime minister – which often creates friction and a fragmented government.

The draft constitution would have abolished the Senate, left a single legislative body elected every five years, and replaced the office of prime minister with a vice-president who reports to the president in order to streamline the government.

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China cracks down on crypto-related providers in ongoing conflict on bitcoin

Budrul Chukrut | LightRakete | Getty Images

The Chinese central bank said Tuesday it had called for the closure of a company that was “suspected of providing software services for virtual currency transactions.” The statement issued by the Beijing Office of the People’s Bank of China also warned institutions not to offer other services related to virtual currency, including providing business premises or marketing.

The fight against digital currencies is nothing new to the authoritarian state.

In 2013, the country ordered third-party vendors to stop using Bitcoin. The Chinese authorities stopped selling tokens in 2017 and promised to continue targeting crypto exchanges in 2019.

But usually every time Beijing hit the crypto industry, Beijing has slacked off and the rules have eventually been relaxed.

This time, however, it seems to be different.

In May, China banned financial institutions and payment companies from offering crypto-related services. In June there were mass arrests in China of people suspected of shamefully using cryptocurrencies. In the same month, regulators increased pressure on banks and payment companies to stop providing cryptocurrency services, and Weibo, the Twitter of China, banned crypto-related accounts.

By July, half of the world’s bitcoin miners had gone dark after Beijing’s call for crackdown on bitcoin mining and trading.

“China’s government is doing everything possible to ensure that Bitcoin and other cryptocurrencies disappear from the Chinese financial systems and economy,” said Fred Thiel, CEO of Marathon Digital Holdings and a member of the Bitcoin Mining Council.

Why now?

So why did China essentially declare war on cryptocurrencies in 2021?

“We all wonder,” said Nic Carter, founding partner of Castle Island Ventures.

One theory suggests that it is part of a broader legislative and regulatory push ahead of the Chinese Communist Party’s centenary this year.

“They take action against all kinds of undesirable behavior,” Carter said.

Crypto has long been synonymous with crime on the mainland.

“The greatest Ponzi of all time in cryptocurrency was probably Plus Token, a Chinese project,” he said.

In this scheme, scammers tricked investors into $ 5.7 billion and arrested dozens. “You will remember that.”

Another theory is that China is clearing the runway for its own digital yuan, a central bank digital currency that has been in development since 2014.

“Part of it is to ensure the introduction of the Chinese central bank’s digital currency, and part of it is most likely to ensure that all economic activities can be captured by financial monitoring activities,” explained Thiel. The digital yuan could theoretically give the government more power to track spending in real time.

However, Carter argues that Bitcoin and the digital yuan are so different that they cannot really be viewed as direct competitors.

“That is certainly the most common reason given,” said Carter. “I just don’t know if I believe it. They are so different systems from each other. “

The most likely motivator, according to Carter, is that Beijing is trying to stem capital outflows via stablecoins and cryptocurrencies. “China stalling the flow of yuan to crypto is a big deal,” he said.

The price of bitcoin

When it comes to the price of Bitcoin, curbing all of China’s crypto retail “totally moves the needle,” Carter said.

“I think that actually explains a lot of the market weakness and sell-off,” he said. “The good news is that as the crackdown accelerated, Bitcoin stayed pretty flat, which suggests the market has digested that information.”

Thiel believes that the ban on Bitcoin and crypto will actually help Bitcoin in the long term.

“If China’s goal was to kill Bitcoin by shutting down 50% of its mining capacity and banning trading – plummeting its value to punish Chinese owners (a la Didi post-IPO and Ant Financial),” worked it not.
“Instead, Bitcoin has proven its resilience and trading has just moved overseas and miners elsewhere will fill the gap.”

Alyse Killeen, founder and managing partner of Bitcoin-focused venture firm Stillmark, points out that this whole conversation could be a moot point as a government’s ability to enforce a Bitcoin ban will continue to dwindle over time.

“I would expect this type of news to have less of an impact on Bitcoin’s exchange rate than it has in the past,” she said. “It is also true that this news has to some extent been inoculated by the industry – Bitcoin has been banned many times in many regions, yet adoption today is outperforming the Internet at a similar stage in its life cycle.”

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Trudeau Appoints Mary Simon Canada’s First Indigenous Governor Normal

MONTREAL — Prime Minister Justin Trudeau appointed Canada’s first Indigenous governor general on Tuesday, a seminal moment as the country seeks to reconcile with its Indigenous population after decades of systemic mistreatment.

As governor general, the appointee, Mary Simon, a diplomat and leading Indigenous rights advocate, will represent Queen Elizabeth II as Canada’s official head of state. While the role is largely ceremonial, it is high profile and has wide symbolic resonance in a country where the governor general is the crown’s representative in Canada’s system of constitutional monarchy.

Prime Minister Justin Trudeau of Canada called the appointment a significant moment. “Today after 154 years, our country takes a historic step,” he said at the Canadian Museum of History in Gatineau, Quebec. “I cannot think of a better person to meet the moment.”

The appointment of Ms. Simon, who served as Canada’s ambassador to Denmark, comes as Canada is reeling, following the discovery of hundreds of unmarked Indigenous graves, many of them children, who attended church-run schools in British Columbia and Saskatchewan.

The finding of the graves has spurred national soul searching about the country’s discrimination against Indigenous people, who for decades have been forced to grapple with racism, inadequate access to health and economic opportunities and lack of autonomy.

The appointment follows the resignation of Julie Payette, who stepped down in January after months of media reports that she and a top adviser had belittled and publicly humiliated employees, often reducing them to tears. In response, the government commissioned an independent review that several Canadian news outlets said had blamed her for fomenting a toxic work environment.

Ms. Simon, an Inuk from Kuujjuaq, a village in northeastern Quebec, said on Tuesday that her appointment would help engender reconciliation.

“I can confidently say that my appointment is a historic and inspirational moment for Canada and an important step forward,” she said. “Indeed, my appointment comes at an especially reflective and dynamic time in our shared history.”

Indigenous leaders welcomed the appointment, calling Ms. Simon a skilled diplomat who was well placed to champion Indigenous concerns and act as a mediator between disparate groups.

Perry Bellegarde, the president of the Assembly of First Nations, a national organization representing Indigenous people, praised the appointment. “Mary is a diplomat, an advocate and a strong Inuk Woman,” he wrote on Twitter.

Vjosa Isai contributed reporting from Toronto.