Cyprus president and Lebanese caretaker premier urge EU financial aid to curb migration from Lebanon

BEIRUT (AP) — The Lebanese caretaker prime minister and the Cypriot president are calling on the European Union to provide financial support to help cash-strapped Lebanon stop migrants from reaching European shores.

President Nikos Christodoulides’ visit to Beirut Monday, alongside his country's interior and foreign ministers and army chief, came after he urged the EU last week to intercede with Lebanese authorities to help stop boatloads of Syrian refugees from heading to the east Mediterranean island nation.

Migration in recent years has become a priority issue between the two countries.

Najib Mikati said the Lebanese military and security agencies have been doing their utmost to curb migration, but the situation was so dire that it needed “a framework agreement” with the EU. He was referring to already sanctioned migration-linked European financial packages with cash-strapped Mediterranean countries Tunisia and Egypt.

Christodoulides agreed with Mikati on the importance of reaching a similar agreement with Lebanon as Cyprus, along with other European countries, has been witnessing a spike in migrant arrivals.

According to the Cypriot Interior Ministry, some 2,140 people arrived by boat in Cyprus between Jan. 1 and Apr. 4 of this year, compared to only 78 people during that same period in 2023. The vast majority were Syrian nationals departing from Lebanon.

Lebanon — which is coping with a crippling economic crisis since 2019 — hosts some 805,000 UN-registered Syrian refugees, of which 90% live in poverty, the UN’s refugee agency says. Lebanese officials estimate the actual number is far higher, ranging between 1.5 and 2 million. Many have escaped the civil war in their country which entered its 14th year.

The UN refugee agency also noted the surge in migrant departures from Lebanon and confirmed that most were Syrian refugees.

Lebanon and Cyprus already have a bilateral deal where Cypriot authorities would return migrants attempting to reach the island from Lebanon.

Mikati said Monday most of Syria has become safe as the conflict is now at a stalemate. He called on the EU to support the repatriation of Syrian refugees or help them resettle in other countries.

Christodoulides said that most Syrian migrants fled their home country mainly for economic reasons and called on the international community to fund development projects in Syria that would help incentivize or motivate their return, according to a statement issued by Mikati's office.

However, UN agencies, human rights groups, and Western governments maintain that Syria is not yet safe for repatriation.

In a separate statement, Cyprus' government spokesman said Christodoulides told Lebanese officials that EU help would depend on the results of Lebanon’s efforts to curb increased migrant arrivals to the island nation.

Cyprus has been pushing for the EU to re-designate some areas within war-torn Syria into “safe zones” for such repatriations. Cypriot Interior Minister Constantinos Ioannou said last week the proposal is gaining traction among the 27-nation bloc but it wouldn’t happen in the near term

A Lebanese diplomatic official familiar with Monday’s talks said that both delegations are discussing a joint proposal focused on Syrian refugees returning home. The official spoke on condition of anonymity in line with regulations.

Talks between Syrian parties to find a political solution are currently frozen. While Damascus was reinstated in the Arab League last year, the EU previously said conditions to restore ties were yet to be met.

Lebanon’s interior minister and army chief were part of Mikati’s delegation.

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Associated Press writer Menelaos Hadjicostis in Athens, Greece, contributed to this report.

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Follow AP’s coverage of migration at https://apnews.com/hub/migration

Cyprus' President Nikos Christodoulides, on carpet right, attends a military welcome ceremony with Lebanese caretaker Prime Minister Najib Mikati,on carpet left, upon his arrival to the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, on carpet right, attends a military welcome ceremony with Lebanese caretaker Prime Minister Najib Mikati,on carpet left, upon his arrival to the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, on carpet right, attends a military welcome ceremony with Lebanese caretaker Prime Minister Najib Mikati,on carpet left, upon his arrival to the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, left, inspects the a guard of honor, with Lebanese caretaker Prime Minister Najib Mikati, right, upon his arrival to the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, left, inspects the a guard of honor with Lebanese caretaker Prime Minister Najib Mikati, second left, upon his arrival to the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, left, speaks during his meeting with Lebanese caretaker Prime Minister Najib Mikati, at the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, center left, escorted by Lebanese caretaker Prime Minister Najib Mikati, center right, arrives at the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, left, shakes hands with Lebanese caretaker Prime Minister Najib Mikati at the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, right, and Lebanese caretaker Prime Minister Najib Mikati, left, arrive at the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

Cyprus' President Nikos Christodoulides, left, meets with Lebanese caretaker Prime Minister Najib Mikati at the government headquarters in Beirut, Lebanon, Monday, April 8, 2024. Christodoulides' visit to Beirut comes after he asked the European Union last week to intervene with Lebanese authorities to stop boatloads of Syrian refugees from heading to the east Mediterranean island nation. Lebanon's caretaker prime minister asked Southern European countries along the Mediterranean Sea to pressure the European Union to help Lebanon deport undocumented migrants. (AP Photo/Bilal Hussein)

NEW YORK (AP) — U.S. stocks swung to a mixed finish on Wednesday after the head of the Federal Reserve said the cuts to interest rates that Wall Street craves so much are still likely, even if they're delayed because of stubbornly high inflation.

The S&P 500 fell 17.30 points, or 0.3%, to 5,018.39 after the Fed held its main interest rate at its highest level since 2001, just as markets expected. The index had rallied as much as 1.2% in the afternoon before giving up all the gains at the end of trading.

The Dow Jones Industrial Average rose 87.37, or 0.2%, to 37,903.29, and the Nasdaq composite lost 52.34, or 0.3%, to 15,605.48.

On the downside for financial markets, Federal Reserve Chair Jerome Powell said out loud the fear that's recently sent stock prices lower and erased traders' hopes for imminent cuts to interest rates: “In recent months, inflation has shown a lack of further progress toward our 2% objective.” He also said that it will likely take "longer than previously expected” to get confident enough to cut rates, a move that would ease pressure on the economy and investment prices.

At the same time, though, Powell calmed a fear swirling in the market, that inflation has remained so high that additional hikes to rates may be necessary.

“I think it’s unlikely that the next policy rate move will be a hike,” he said.

The Fed also offered financial markets some assistance by saying it would slow the pace of how much it’s shrinking its holdings of Treasurys. Such a move could grease the trading wheels in the financial system, offering stability in the bond market. Powell said the Fed did it to reduce “risk of money markets showing stress.”

Yields eased in the bond market following the move and Powell's comments.

The yield on the 10-year Treasury fell to 4.63% from 4.65% just before the announcement, easing the pressure on the stock market. The yield on the two-year Treasury yield, which more closely tracks expectations for the Fed, dropped to 4.95% from 5.04% late Tuesday.

Traders themselves had already downshifted their expectations for rate cuts this year to one or two, if any, after coming into the year forecasting six or more. That's because they saw the same string of reports as the Fed, which showed inflation remaining stubbornly higher than forecast this year.

Powell had already recently hinted rates may stay high for a while. That was a disappointment for Wall Street after the Fed earlier had indicated it was penciling in three cuts to rates during 2024.

Powell's comments Wednesday were largely seen as less harsh than feared.

“Yet, before markets get overly excited, it’s worth remembering that the Fed is responding to the unfolding economic data, just as we all are,” according to Seema Shah, chief global strategist at Principal Asset Management. "The next few months of data are pivotal for the Fed path."

Without the benefit of easing rates, companies will need to deliver better profits to support their stock prices.

CVS Health tumbled 16.8% after reporting weaker results for the latest quarter than analysts expected. It said it’s been hurt by increased costs at its Medicare Advantage business, and it cut its forecast for profit over the full year.

Starbucks dropped 15.9% after falling short of expectations for both profit and revenue in the latest quarter. Sales trends weakened at its stores outside the United States in particular, and it cut its full-year forecasts for profit and revenue.

Super Micro Computer, which has been one of Wall Street’s hottest stars, gave back 14% despite topping expectations for profit. The company, which sells server and storage systems used in AI and other computing, fell shy of analysts’ forecasts for revenue. Expectations had bult up after its stock had already tripled this year amid a broad frenzy on Wall Street around artificial-intelligence technology.

Advanced Micro Devices dropped 8.9% despite reporting profit that matched expectations. Its revenue came in a bit shy of forecasts, as did the midpoint of its forecasted range for revenue in the current quarter.

On the winning side was Amazon, which climbed 2.3% after reporting stronger profit for the latest quarter than analysts expected. The retail behemoth credited reaccelerating growth at its cloud-computing business, in part, as it benefits from demand for AI.

Before the Fed's announcement, stocks and Treasury yields had been moving relatively little following some weaker-than-expected reports on the economy.

One report from the Institute for Supply Management said the U.S. manufacturing sector unexpectedly fell back into contraction last month.

A separate report said U.S. employers were advertising slightly fewer jobs at the end of March than economists expected. The hope on Wall Street has been that a cooldown could help prevent upward pressure on inflation. The downside is that if it weakens too much, a major support for the economy could give out.

Some recent economic reports raised fears about the potential for a stagnating economy combined with high inflation. The Fed doesn’t have great tools to fix such a scenario, called “stagflation.”

But Powell downplayed the risk of that and said inflation is much lower and economic growth is better than the last time stagflation struck in the 1970s and 80s.

“I don’t see the ‘stag’ or the ‘flation,’” he said.

AP Writers Matt Ott and Zimon Zhong contributed.

A banner for cruise operator Viking, marking its initial public offering, hangs on the front of the New York Stock Exchange on Wednesday, May 1, 2024 in New York. (AP Photo/Peter Morgan)

FILE - A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, on April 22, 2024. Asian stocks fell Wednesday, May 1, 2024 with most of the markets in the region closed for a holiday. Meanwhile, U.S. stocks closed out their worst month since September. (AP Photo/Eugene Hoshiko, File)

FILE- A person looks at an electronic stock board showing Japan's stock prices at a securities firm in Tokyo, on April 30, 2024. Asian stocks fell Wednesday, May 1, 2024 with most of the markets in the region closed for a holiday. Meanwhile, U.S. stocks closed out their worst month since September. (AP Photo/Eugene Hoshiko, File)