U.S. inflation pressures rise in July; Fed on track to lift rates

FILE PHOTO: A woman shops with her daughter at a Walmart Supercenter in Rogers, Arkansas, U.S., June 6, 2013. REUTERS/Rick Wilking/File Phot

By Lindsay Dunsmuir

WASHINGTON (Reuters) – U.S. consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates.

The Labor Department said on Friday its Consumer Price Index advanced 0.2 percent, the bulk of which was due to a rise in the cost of shelter, driven by higher rents. The CPI rose 0.1 percent in June.

In the 12 months through July, the CPI increased 2.9 percent, matching the increase in June.

Excluding the volatile food and energy components, the CPI rose 0.2 percent, the same gain as in May and June. The annual increase in the so-called core CPI was 2.4 percent, the largest rise since September 2008, from 2.3 percent in June.

Economists polled by Reuters had forecast both the CPI and core CPI rising 0.2 percent in July.

U.S. Treasury yields held near three-week lows and U.S. stocks fell on anxiety about Turkey’s financial woes and its deepening rift with the United States. The U.S. dollar was trading higher against a basket of currencies.

“As the July CPI figures make clear, underlying price pressures are still mounting,” said Michael Pearce, senior U.S. economist at Capital Economics in New York.

The Fed more closely tracks a different inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, which increased 1.9 percent in June.

That gauge hit the U.S. central bank’s 2 percent target in March for the first time in more than six years and Fed policymakers have said they will not be unduly concerned if it overshoots its target in the coming months.

The U.S. central bank has raised rates twice this year, in March and June, and financial markets overwhelmingly expect a hike at the next policy meeting in September.

The Fed currently forecasts a total of four rate rises in 2018, with investors expecting a final nudge upwards of the year in the benchmark overnight lending rate in December.

Inflation pressures are seen continuing to build amid low unemployment and increasing difficulty reported by employers in filling positions. Rising raw material costs are also expected to push up inflation as manufacturers pay more, in part because of tariffs imposed by the Trump administration on lumber, aluminum and steel imports.

Last month, gasoline prices fell 0.6 percent after increasing 0.5 percent in June. Food prices edged up 0.1 percent after rising 0.2 percent in June.

Owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, advanced 0.3 percent last month after increasing by the same margin in June. Overall, the so-called shelter index rose 3.5 percent in the 12 months through July.

Healthcare costs fell 0.2 percent after gaining 0.4 percent in June. Prices for new motor vehicles rose 0.3 percent in July following a 0.4 percent increase in the prior month. Apparel prices were down 0.3 percent after a 0.9 percent drop in June.

(Reporting by Lindsay Dunsmuir; Editing by Paul Simao)

Death toll from Indonesia quake climbs over 320

An aerial view of the collapsed Jamiul Jamaah mosque where rescue workers and soldiers search for earthquake victims in Pemenang, North Lombok, Indonesia August 8, 2018 in this photo taken by Antara Foto. Antara Foto/Zabur Karuru/ via REUTERS

By Angie Teo

PEMANANG, Indonesia (Reuters) – The death toll from a huge 6.9 magnitude earthquake in Indonesia’s Lombok island has climbed to more than 320, officials said on Friday, even as relief efforts picked up pace.

The national disaster mitigation agency said it had verified 321 deaths and that over 270,000 people had been forced to flee their homes because of a series of tremors over the past two weeks.

On Thursday, the death toll from Sunday’s quake jumped to 259.

A fresh 5.9 magnitude aftershock prompted fresh panic in the north of the popular holiday destination on Thursday.

Nearly 75 percent of residential structures have been destroyed in northern Lombok because of poor construction unable to withstand strong tremors, the agency said in a statement.

“Aid is being distributed as quickly as possible upon arrival,” Sutopo Nugroho, spokesman for the agency said in a statement, adding that hundreds of volunteers were assisting the efforts.

Mobile kitchens have started distributing much-needed food and water to thousands of evacuees in the worst-hit areas, he said, after several days’ delay due to poor access and communications.

President Joko Widodo on Friday said he was delaying plans to visit Lombok until next week, citing concerns over continuing aftershocks.

“After the emergency period is over, the government will undertake rehabilitation, reconstruction, repairs to residential areas and public facilities,” the cabinet secretariat website quoted Widodo as saying.

Widodo visited the island after a 6.4 magnitude quake on July 29 killed 17 people and injured dozens more.

The quakes have prompted tourists to flee during what is otherwise the peak season for the island destination famous for its beaches.

(Additional reporting by Jessica Damiana in Jakarta; Writing by Kanupriya Kapoor; Editing by Alison Williams)

Aggressive wildfire threatens thousands of homes in southern California city

The Holy Fire spreads in Lake Elsinore, California, the U.S. August 8, 2018 in this still image taken from a video obtained from social media. Lake Elsinore City Hall/via REUTERS

By Alex Dobuzinskis

LOS ANGELES (Reuters) – Hundreds of firefighters were building barriers and constructing containment lines early on Friday to slow an approaching wildfire threatening to torch thousands of homes in a lakeside community southeast of Los Angeles.

A plane dumps fire retardant over the Holy Fire as it spreads in Lake Elsinore, California, the U.S. August 8, 2018 in this still image taken from a video obtained from social media. Lake Elsinore City Hall/via REUTERS

A plane dumps fire retardant over the Holy Fire as it spreads in Lake Elsinore, California, the U.S. August 8, 2018, in this still image taken from a video obtained from social media. Lake Elsinore City Hall/via REUTERS

More than 21,000 people have been evacuated in and around Lake Elsinore where furious flames and billowing smoke rose into the sky at the edge of the city of 60,000 as the blaze, dubbed the Holy Fire, burned nearby in the Santa Ana Mountains.

“It feels like a war zone,” Ana Tran told the Los Angeles Times as ash and flame retardant fell on her neighborhood.

The fire, which was five percent contained, was being fueled by dry brush covering steep terrain and stoked by erratic wind gusts during the night, said Thanh Nguyen, a spokesman for the incident said.

“Strong downdrafts is making the fire move aggressively downhill,” said Nguyen, noting that firefighters were working to build barriers and containment lines to protect more than 2,000 homes at risk from the fire.

Three firefighters suffered minor injuries battling the relatively small blaze that consumed more than 10,200 acres (4,128 hectares) since it began on Tuesday, fire officials said.

Governor Jerry Brown declared a state of emergency for the area on Thursday, freeing up additional resources to battle the blaze. Forrest Clark, 51, was charged with setting the fire, the Orange County District Attorney Office said.

A plane flies off after dumping fire retardant over the Holy Fire close to a residential area in Lake Elsinore, California, the U.S. August 8, 2018 in this still image taken from a video obtained from social media. Camille Collins/via REUTERS

A plane flies off after dumping fire retardant over the Holy Fire close to a residential area in Lake Elsinore, California, the U.S. August 8, 2018, in this still image taken from a video obtained from social media. Camille Collins/via REUTERS

The Holy Fire was one of several fires burning in California that have displaced tens of thousands of people. Wildfires across the state and region could be further stoked by strong gusts, low humidity, and hot weather on Friday and Saturday, forecasters warned.

In Northern California, a mechanic helping to fight the Carr Fire burning around Redding was killed in a traffic collision on Thursday, bringing the death toll from that blaze to eight, the California Department of Forestry and Fire Protection (CalFire) said. The 178,000-acre Carr Fire has killed two other firefighters along with three members of one family and has destroyed nearly 1,100 homes. It was 49 percent contained with firefighters struggling in steep terrain to control the blaze, CalFire said.

More than 4,000 firefighters are battling the Mendocino Complex Fire, which has burned 305,200 acres in three counties north of San Francisco, CalFire said.

Two firefighters were injured and 119 homes destroyed by that fire which now ranks as the largest fire on record in the state.

(Reporting by Brendan O’Brien in Milwaukee, Editing by William Maclean)

Anniversary of fatal Charlottesville rally puts city, D.C. on edge

White nationalists participate in a torch-lit march on the grounds of the University of Virginia ahead of the Unite the Right Rally in Charlottesville, Virginia on August 11, 2017. Picture taken August 11, 2017. REUTERS/Stephanie Keith

By Joseph Ax and Makini Brice

(Reuters) – Joan Fenton knows she will not make much money at her Charlottesville gift shop this weekend when the downtown district will be virtually locked down for the anniversary of last year’s deadly white nationalist rally. But like many other owners, she will be open anyway.

“They want to be open in solidarity with the community,” Fenton said. “They feel that not being here is giving in to fear and terror.”

Officials in Charlottesville have vowed a massive police presence – with some 1,000 personnel assigned – to deter any violence.

The “Unite the Right” rally last August, called to protest the removal of a Confederate statue, turned the picturesque Virginia college town into a chaotic scene of street brawls, and one woman was killed when an Ohio man rammed his car into a crowd of counterprotesters.

The organizer of last year’s event, white nationalist Jason Kessler, was denied a permit in Charlottesville this year but has secured permission to hold a demonstration on Sunday in Washington, across the street from the White House.

Washington officials said on Thursday that police were ready for the rally as well as five planned counterprotests that could attract close to 2,000 people in all.

Officers will endeavor to keep the two sides separate, Metropolitan Police Chief Peter Newsham said. Guns will be prohibited from the demonstration area.

Larry Hogan, the Republican governor of neighboring Maryland, said on Friday that “hate has no place in our society,” and that he had directed state agencies to work with their counterparts in Washington and Virginia to ensure the safety of all citizens.

“As we face this invasion of vile and perverted ideology infesting our region, we stand united in our conviction that a diverse and inclusive Maryland is a stronger Maryland,” he said.

UNPRECEDENTED LOCKDOWN

Amid continuing controversy over President Donald Trump’s views on race, the events will likely revive memories of his comments after Charlottesville when he said both sides were to blame for the violence. The remarks sparked criticism from across the political spectrum as the Republican president refused to condemn the white nationalists.

In Charlottesville, officials have announced an unprecedented lockdown of the bustling downtown district. Vehicles are prohibited, and pedestrians will be allowed in at only two checkpoints, where police will confiscate contraband.

Prohibited items include everything from metal pipes and swords to fireworks and skateboards.

Guns, however, can still be legally carried. After last year’s violence, the city asked the state legislature to ban firearms from major public events, but the bill failed to advance.

It is not clear whether any white nationalists will come to Charlottesville this weekend, but officials said they were preparing for any contingency. Police were widely criticized after last year’s event, where some officers did not intervene to stop fistfights and other mayhem.

Virginia’s Democratic governor, Ralph Northam, pre-emptively declared a state of emergency on Wednesday, a procedural move that freed up additional resources.

Many business owners have said the plan is too restrictive and will cost them significant revenue on what would normally be a busy summer weekend. Merchants already suffered a downturn after last year’s event; sales tax revenue dropped 11 percent in September 2017 compared with the year before, according to city figures.

(Reporting by Joseph Ax in New York and Makini Brice in Washington; Editing by Cynthia Osterman and Jonathan Oatis)

Dozens killed, including children on a bus, in Yemen air strikes

A Yemeni man holds a boy who was injured by an airstrike in Saada, Yemen August 9, 2018./REUTERS/Naif Rahma

ADEN (Reuters) – Saudi-led coalition air strikes on Thursday killed dozens of people, including children traveling on a bus, in Yemen’s Saada province, Yemeni medical sources and the International Committee of the Red Cross (ICRC) said.

The Western-backed alliance fighting the Iranian-aligned Houthi group in Yemen said in a statement that the air strikes targeted missile launchers used to attack the southern Saudi city of Jizan on Wednesday, killing a Yemeni civilian there.

It accused the Houthis of using children as human shields.

Houthi spokesman Mohammed Abdul-Salam said the coalition showed “clear disregard for civilian life” as the attack had targeted a crowded public place in the city.

A Yemeni boy lies in the hospital after he was injured by an airstrike in Saada, Yemen August 9, 2018./REUTERS/Naif Rahma

A Yemeni boy lies in the hospital after he was injured by an airstrike in Saada, Yemen August 9, 2018./REUTERS/Naif Rahma

The ICRC said one attack hit the bus driving children in Dahyan market, in northern Saada, adding hospitals there had received dozens of dead and wounded.

A Reuters photographer saw bloodied and bandaged children being treated by doctors.

Footage from the Houthi media office showed a boy wearing a blue backpack with a UNICEF logo being carried into a hospital emergency room with blood pouring down his face and over his traditional Yemeni thawb, an ankle-length garment.

Abdul-Ghani Sareeh, head of a health department in Saada, told Reuters that the death toll was to 43, with 61 wounded.

“Scores killed, even more injured, most under the age of 10,” Johannes Bruwer, head of the delegation for the ICRC in Yemen, said in a Twitter post.

It was unclear how many children were killed and how many air strikes were carried out in the area, in northern Yemen, near the border with Saudi Arabia.

Smoke rises after an airstrike in Sanaa, Yemen August 9, 2018. REUTERS/Mohamed al-Sayaghi

Smoke rises after an airstrike in Sanaa, Yemen August 9, 2018. REUTERS/Mohamed al-Sayaghi

“RED LINE”

Saudi Arabia and Sunni Muslim allies intervened in Yemen’s war in 2015 against the Houthis, who control the most populous areas of Yemen, including the capital Sanaa, and drove the internationally recognized government into exile in 2014.

The United States and other Western powers provide arms and intelligence to the alliance, and human rights groups have criticized them over coalition air strikes that have killed hundreds of civilians at hospitals, schools, and markets.

The alliance says it does not intentionally target civilians and has set up a committee to probe alleged mass casualty air strikes, which has mostly cleared the coalition of any blame.

“Today’s attack in Saada was a legitimate military operation … and was carried out in accordance with international humanitarian law,” the coalition said in the Arabic-language statement carried by SPA.

“Targeting Saudis and residents in Saudi is a red line,” coalition spokesman Turki al-Malki later told Al Arabiya TV.

Fragments from the Houthi missile launched at Jizan Industrial City had killed one Yemeni civilian and wounded 11, Saudi state media said earlier on Thursday.

The Houthis have launched a series of missile strikes on the kingdom, including Riyadh, over the past year.

Saada, the main stronghold of the Houthis, has mainly come under air strikes from the coalition as the mountainous province makes battles hard for pro-government ground troops.

The Yemen war has killed more than 10,000 people, displaced more than 2 million and driven the country to the verge of famine, according to the United Nations.

(Corrects official’s name in paragraph 8 to Abdul-Ghani Sareeh from Abdul-Ghani Nayeb)

(Reporting by Dubai Newsroom; Writing and additional reporting by Aziz El Yaakoubi; Editing by Alison Williams)

Brutal weather threatens California wildfire battle

A satellite image shows the River fire at the Mendocino Complex wildfire in California, U.S., August 6, 2018. Picture taken on August 6, 2018. Satellite image ©2018 DigitalGlobe, a Maxar company/Handout via REUTERS

By Dan Whitcomb

LOS ANGELES (Reuters) – Fierce winds, bone-dry weather, and high temperatures are expected on Thursday in northern California, where they could threaten efforts to fight the largest wildfire in state history.

Wind gusting up to 35 miles (56 km) an hour, temperatures above 90 degrees Fahrenheit (32 C) and 10 percent humidity are in the forecast from Thursday afternoon to Saturday in northern California.

Firefighters in the area are battling the Mendocino Complex and the Carr Fire, the National Weather Service said in an Red Flag warning.

“A combination of strong winds, low relative humidity, and warm temperatures can contribute to extreme fire behavior,” the service said.

More than 4,000 firefighters were confronting the Mendocino Complex, which covered more than 302,000 acres (122,215 hectares) on Wednesday, making it the largest wildfire in California history.

Two firefighters have been injured and 119 homes destroyed, the California Department of Forestry and Fire Protection (Cal Fire) said.

About 100 miles northeast, near Redding, 4,700 crews were fighting the 176,000-acre Carr Fire, which has been blamed for seven deaths, including two firefighters, and has destroyed 1,077 homes, Cal Fire said.

The two fires were 47 percent contained on Wednesday, Cal Fire said.

Fifteen other major fires are burning in California. Together, they have destroyed more than 1,500 structures and displaced tens of thousands of people.

To the south, in the Cleveland National Forest area, the relatively small 4,129-acre Holy Fire has destroyed 12 structures, fire officials said.

A 51-year-old man was arrested and booked on two counts of felony arson, one felony count of threat to terrorize and a misdemeanor count of resisting arrest, the Cleveland National Forest said on Twitter on Wednesday.

The fire has displaced 20,000 people, CNN reported.

(Additional reporting by Brendan O’Brien in Milwaukee, editing by Larry King)

After disaster alert failures, U.S. moves toward national system

FILE PHOTO: A U.S. flag flies over a debris field of former houses following Hurricane Irma in Islamorada, Florida, U.S., September 15, 2017. REUTERS/Carlo Allegri/File Photo

By Dan Whitcomb

LOS ANGELES (Reuters) – In California last month, two young children and their great-grandmother died in a wildfire that family members say they never saw coming or heard an alert.

In January, thousands of people were panic-stricken in Hawaii by a false alarm that a ballistic missile was about to strike the islands.

These and other critical failures have prompted a review of disaster alerts in the United States, which largely operate at a local level, underlining the potential need for a nationwide system, as scientists warn changing weather may bring more hurricanes and wildfires.

“For all practical purposes we don’t really have a national warning system,” Dennis Mileti, professor emeritus at the University of Colorado at Boulder, told Reuters.

Mileti, a nationally recognized expert on disaster preparedness, is on a panel the Federal Emergency Management Agency (FEMA) convened this summer to improve the Integrated Public Alert and Warning System, or IPAWS, the platform established a decade ago for all U.S. emergency alerts.

Previewing its findings to Reuters, Mileti said the panel will propose to Congress to revamp national warning systems, and in cases such as ballistic missile alerts, take them out of the hands of local officials.

A half-century ago, before 24-hour cable news networks or the internet, the three main television broadcast stations which could be counted on to issue standard emergency messages to the entire U.S. population

Now, people in the path of natural disasters typically get alerts from a patchwork of state and local agencies, using different platforms and messaging systems, often manned by part-time employees, Mileti said.

For example, in the state of California, warnings are issued by counties that sometimes outsource the job to someone else.

“You don’t get too many good warnings in local communities where” untrained amateurs are in charge, Mileti said.

Human error is another key issue.

Last year, some residents of California’s Sonoma County failed to get timely notice of an approaching wildfire that killed 17 people after authorities, concerned about traffic becoming snarled along evacuation routes, decided not to notify everyone at once.

A community of 10,000 people not in imminent danger from the Carr Fire in Northern California, meanwhile, was evacuated by accident when “somebody hit the wrong button,” Shasta County Sheriff Tom Bosenko told the Sacramento Bee.

And in January, many Hawaiians and tourists fled their homes and hotels when an emergency bulletin – sent by mistake – blared out: “BALLISTIC MISSILE THREAT INBOUND TO HAWAII. SEEK IMMEDIATE SHELTER. THIS IS NOT A DRILL.”

A U.S. government report later blamed the false alarm on human error and inadequate safeguards.

‘RISING THREATS’

California Gov. Jerry Brown, after touring the fiery calamity near Redding on Saturday, called on the state legislature to enact “the best alert system we can get … given the rising threats on the changing of the weather, the climate.”

Many scientists say global warming is not only causing more extreme weather but more expensive disasters and the need for more sophisticated alerting systems.

Hurricanes Harvey, Irma, and Maria combined with wildfires in the West and other calamities to make 2017 the most expensive year on record for disasters in the United States, costing $306 billion, according to the National Oceanic and Atmospheric Administration.

False alarms and human error can pose a problematic cost-benefit equation, said Adam Rose, a Professor at the University of Southern California’s Sol Price School of Public Policy and predictive analysis expert.

“Is it better to be safe and have some evacuations that turn out be unnecessary, which can incur some economic costs and even create a slim danger of death or injury? Or is it better to not be safe enough?”

Mileti said his panel will recommend standardizing warning messages, so people in harm’s way can immediately identify the sender, the danger and what action they should take. Improved training of alert system operators can cut down on human error, he said.

Rather than be told simply to “evacuate,” for example, residents of a community facing flash floods, a tsunami, tornado or flames from a wildfire would be told to leave immediately and to go where they can find safe ground.

Mileti pointed to a National Institute of Standards and Technology investigation into a tornado that devastated Joplin, Missouri, on May 22, 2011, killing over 150 people. It found residents were given only a five-minute warning the twister was about to strike.

“Many of the bodies first responders found were found holding cellphones, trying to get additional information,” Mileti said.

(Reporting by Dan Whitcomb in Los Angeles; editing by Bill Tarrant and G Crosse)

Russia reels, denounces new U.S. sanctions as illegal, unfriendly

FILE PHOTO: National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017. REUTERS/Maxim Shemetov/File Photo

By Andrew Osborn

MOSCOW (Reuters) – Russia condemned a new round of U.S. sanctions as illegal on Thursday after news of the measures sent the rouble tumbling to two-year lows and sparked a wider asset sell-off over fears that Moscow was locked in a spiral of never-ending curbs by the West.

Moscow has been trying with mixed success to improve battered U.S.-Russia ties since Donald Trump won the White House in 2016, and Russia’s political elite was quick to chalk up a summit last month between Trump and Vladimir Putin as a victory.

But initial triumphalism swiftly turned sour as anger over what some U.S. lawmakers saw as an over deferential performance by Trump and his failure to confront Putin over Moscow’s alleged meddling in U.S. politics galvanized a new sanctions push.

Having bet heavily on improving ties with Washington via Trump, Moscow now finds that Trump is under mounting pressure from U.S. lawmakers to show he is tough on Russia ahead of mid-term elections.

In the latest broadside, the U.S. State Department said on Wednesday it would impose fresh sanctions by the month’s end after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain, something Moscow denies.

In an early reaction, the Kremlin said the sanctions were illegal and unfriendly and that the U.S. move was at odds with the “constructive atmosphere” of Trump and Putin’s encounter in Helsinki.

The new sanctions come in two tranches. The first, which targets U.S. exports of sensitive national-security related goods, comes with deep exemptions and many of the items it covers have already been banned by previous restrictions.

However, the second tranche, activated after 90 days if Moscow fails to provide “reliable assurances” it will no longer use chemical weapons and allow on-site inspections by the United Nations or other international observer groups, is more serious.

NBC, citing U.S. officials, said the second tranche could include downgrading diplomatic relations, suspending the state airline Aeroflot’s ability to fly to the United States and cutting off nearly all exports and imports.

The State Department’s announcement fueled already worsening investor sentiment about the possible impact of more sanctions on Russian assets and the rouble at one point slid by over 1 percent against the dollar, hitting a two-year low, before recouping some of its losses.

The U.S. move also triggered a sell-off in Russian government bonds and the dollar-denominated RTS index fell to its lowest since April 11.

“There is local panic on the currency market,” BCS Brokerage said in a note. “At times, the number of those who want to ditch the rouble is becoming so high so there is not enough liquidity.”

ILLEGAL

The Kremlin said the new sanctions were “illegal and do not correspond to international law.”

“…Such decisions taken by the American side are absolutely unfriendly and can hardly be somehow associated with the constructive – not simple but constructive – atmosphere that there was at the last meeting of the two presidents,” Kremlin spokesman Dmitry Peskov said.

Washington had become an unpredictable player on the international stage, Peskov added, saying “anything could be expected” from it and that it was important that Russia’s financial system, which he described as stable, was prepared.

In a sign the Kremlin was not eager to escalate an already difficult situation however, Peskov said it was too early to talk about Russian countermeasures.

He criticized the U.S. decision to link the sanctions to the British nerve agent case, an incident the Kremlin has long cast as a Western plot to damage its reputation and provide a pretext for more sanctions.

Skripal, a former colonel in Russia’s GRU military intelligence service, and his 33-year-old daughter were found slumped unconscious on a bench in the southern English city of Salisbury in March after a liquid form of the Novichok type of nerve agent was applied to his home’s front door.

European countries and the United States expelled 100 Russian diplomats after the attack, in the strongest action by Trump against Russia since he came to office.

Konstantin Kosachyov, head of the upper house of parliament’s international affairs committee, was cited by the Interfax news agency as saying it looked like Washington was now behaving like “a police state.”

Dmitri Trenin, director of the Carnegie Moscow Center and a former colonel in the Russian army, said the State Department’s move looked like the latest salvo in what he called a hybrid war.

“Sanctions are the U.S. weapon of choice,” Trenin wrote on Twitter.

“They are not an instrument, but the policy itself. Russia will have to brace for more to come over the next several years, prepare for the worst and push back where it can.”

At variance with Moscow over Ukraine and Syria, Western sanctions have already drastically reduced Western involvement in Russian energy and commodities projects, including large-scale financing and exploration of hard-to-recover and deep water resources.

Proposed U.S. legislation prepared by several senators calls on Trump to widen the sanctions further to include virtually all Russian energy projects and effectively bar Western companies from any involvement in the country.

Introduced by Republican and Democratic senators last week in draft form, Senator Lindsey Graham, one of the measure’s lead sponsors, has called it “the sanctions bill from hell.”

(Additional reporting by Dmitry Zhdannikov, Tom Balmforth, Denis Pinchuk, Andrey Ostroukh; Editing by Richard Balmforth)

New Mexico child abuse suspects accused of training children for shootings

Conditions at a compound in rural New Mexico where 11 children were taken into protective custody for their own health and safety after a raid by authorities, are shown in this photo near Amalia, New Mexico, U.S., provided August 6, 2018. Taos County Sheriff's Office/Handout via REUTERS

By Andrew Hay

TAOS, N.M. (Reuters) – Five adults charged with abusing 11 children at a New Mexico compound, where they were found ragged and starving, were training those children to use firearms to commit school shootings, prosecutors said in court documents on Wednesday.

The principal suspect, Siraj Ibn Wahhaj, also was charged with abducting his 3-year-old son from his home in Atlanta last December, prompting a cross-country manhunt that led authorities to the compound they raided last Friday north of Taos, New Mexico.

Remains of a young boy believed to be the missing child were found on the property on Monday, on what would have been his fourth birthday, but have not been positively identified, authorities said. The 11 children found alive, ranging in age from 1 to 15 years old, were placed in protective custody.

At an arraignment on Wednesday, Mahhaj and his four co-defendants, Lucas Morton and three women presumed to be the mothers of the 11 surviving children, each pleaded not guilty to 11 counts of felony child abuse. Morton also was charged with harboring a fugitive.

Prosecutors made no mention of motive or ideology in court filings or during court proceedings on Wednesday.

In petitions seeking to detain all five suspects without bail, prosecutors said each was under investigation in the boy’s death.

No weapons charges were filed in the case, but prosecutors said the defendants were suspected of training children “with weapons in furtherance of a conspiracy to commit school shootings.”

Prosecutors said the allegation of weapons training was based on statements from a foster parent for one of the children.

SHOOTING RANGE

Taos County Sheriff Jerry Hogrefe referred over the weekend to the suspects as “extremists of Muslim belief,” but he declined to elaborate when asked about it on Tuesday by reporters.

The women, who appeared in court on Wednesday with white sheets over their heads, were identified as Jany Leveille, Subhannah Wahhaj and Hujrah Wahhaj. One of the men wore a towel over his head in the style of a Mideastern keffiyeh, or headdress.

Hogrefe said on Tuesday that investigators found a shooting range at one end of the squalid compound, situated near the Colorado border.

The sheriff has said he sought a search warrant for the compound after a distress message was passed on to authorities in Georgia and shared with his office. He said the FBI was also investigating.

Wahhaj, 39, whose first name was mistakenly presented in some court documents as Huraj, has been described as being in control of the compound. He was heavily armed when taken into custody, Hogrefe said.

According to court documents, when the children were found they were in rags and appeared to have gone days without food, and loaded firearms were within their reach.

Aleksandar Kostich, a public defender representing the five adults, said the identical wording of the allegations about weapons training in each petition suggested that prosecutors were less than certain about the information they were given.

A man who identified himself to reporters as Gerard Jabril Abdulwali, 64, of Alexandria, Egypt, and the father of Morton, attended the court hearing, during which he shouted, “Allahu Akbar,” Arabic for “God is great.”

He told reporters afterward that was in the United States for medical reasons and had not heard from his son since last year until he received a text message from Morton last Thursday that said “they were starving.”

Abdulwali said his son and the other suspects were “peaceful adult settlers.”

“They were homesteading and were trying to establish a peaceful community, a peaceful life away from society,” he said. “They just went about it the wrong way.”

(Reporting by Andrew Hay in Taos, New Mexico; Additional reporting and writing by Steve Gorman in Los Angeles; Editing by Bill Tarrant, Toni Reinhold)

Hamas fires rockets, Israel bombs Gaza amid talk of truce

A Palestinian man inspects a Hamas site that was hit in an Israeli air strike, in Al-Mughraqa on the outskirts of Gaza City August 9, 2018. REUTERS/Mohammed Salem

By Nidal al-Mughrabi and Eli Berlzon

GAZA/SDEROT, Israel (Reuters) – A Palestinian official said on Thursday armed factions in Gaza were prepared to halt a round of rocket attacks on southern Israel if the Israeli military stopped its strikes after two days of cross-border violence.

An explosion is seen during an Israeli air strike in Gaza City August 8, 2018. REUTERS/Stringer

An explosion is seen during an Israeli air strike in Gaza City August 8, 2018. REUTERS/Stringer

A pregnant Palestinian woman and her 18-month-old child, and a militant from the Islamist Hamas group that rules Gaza, were killed in the Israeli attacks, and at least five civilians were wounded, local medical officials said.

The Israeli military said seven people were wounded in southern Israel. One was identified by her employer as a Thai agricultural worker.

The flare-up came after officials on both sides had talked about potential progress in an effort by the United Nations and Egypt to broker a truce to end months of violence and alleviate deepening humanitarian and economic hardship in the Gaza Strip.

Israeli firefighters survey the scene where a rocket exploded in the southern city of Sderot, Israel August 8, 2018. REUTERS/Amir Cohen

Israeli firefighters survey the scene where a rocket exploded in the southern city of Sderot, Israel August 8, 2018. REUTERS/Amir Cohen

A Palestinian official, who spoke on condition of anonymity, raised the prospect of an imminent end to the current fighting.

“Factions of the resistance consider this round of escalation over as far as we are concerned, and the continuation of calm depends on the behavior of the occupation,” the official said, using militant factions’ term for Israel.

The Israeli military declined to comment on the official’s remarks.

The official, at a command center used by armed groups in Gaza, said they had been “responding to crimes” by Israel – a reference to the killing on Tuesday, in disputed circumstances, of two Hamas gunmen.

FAMILIAR PATTERN

The latest fighting has stayed within familiar parameters. The rocket fire from Gaza has not targeted Israel’s heartland and the Israeli military said its air strikes were limited to Hamas installations.

Yuval Steinitz, a member of Prime Minister Benjamin Netanyahu’s inner cabinet, told Israel Radio before the Palestinian officials comments that Israel was “not eager for war” but would make no concessions to Hamas.

An Israeli policeman walks next to the scene where a rocket exploded in the southern city of Sderot, Israel August 8, 2018. REUTERS/Amir Cohen

Netanyahu was due to hold a security cabinet meeting later in the day after consultations with security officials.

Rocket warning sirens sounded almost non-stop in the southern Israeli town of Sderot and other border communities from sunset on Wednesday. Many residents have a reinforced room in their homes where they can shelter. The military said more than 180 rockets and mortar bombs were fired from Gaza.

Ambulance sirens echoed through the night in Gaza, where families huddled at home as powerful explosions shook buildings. The Israeli military said its aircraft struck more than 150 facilities belonging to Hamas.

U.N. Middle East envoy Nickolay Mladenov said in an overnight statement: “I am deeply alarmed by the recent escalation of violence between Gaza and Israel, and particularly by today’s multiple rockets fired towards communities in southern Israel.”

The United Nations, he said, has engaged with Egypt in an “unprecedented effort” to avoid serious conflict, but cautioned that “the situation can rapidly deteriorate with devastating consequences for all people”.

Gaza has been controlled by Hamas for more than a decade, during which time it has fought three wars against Israel, the latest in 2014.

(Reporting by Nidal al-Mughrabi, Writing by Ari Rabinovitch and Ori Lewis; Editing by Jeffrey Heller, Robin Pomeroy, Richard Balmforth)