The issues on the table when Trump and Putin meet

FILE PHOTO: Russia's President Vladimir Putin talks to U.S. President Donald Trump during their bilateral meeting at the G20 summit in Hamburg, Germany, July 7, 2017. REUTERS/Carlos Barria//File Photo

MOSCOW/WASHINGTON (Reuters) – Donald Trump and Vladimir Putin will sit down in a room together in the Finnish capital on July 16 for their first summit meeting.

The U.S. president’s spontaneous approach to negotiations, and the inscrutable style of the Kremlin leader, make predicting the outcome of the summit with any accuracy close to impossible.

We do however, have a reasonable idea of the issues the two leaders and their aides will have mapped out before the meeting: the areas where they each want something from their counterpart, and the places they are willing to give ground.

Below are the issues likely to figure:

ARMS RACE RHETORIC

Both Trump and Putin have been using bellicose rhetoric about their nuclear arsenals, drawing their countries closer to a new arms race. Trump has said the U.S. nuclear capability needs renewing. He told Reuters last year, “if countries are going to have nukes, we’re going to be at the top of the pack.” Putin in March this year unveiled an array of new nuclear weapons, and warned Western governments “now they need to take account of a new reality.” An arms race would be dangerous and expensive for both sides. An agreement to scale back the rhetoric would be a win for both Putin and Trump. Progress towards extending the New Start arms treaty, which expires in 2021, would give substance to that agreement.

SANCTIONS RELIEF

Putin would like Trump to soften sanctions that Washington imposed over the annexation of Ukraine’s Crimea region and backing for separatists in eastern Ukraine, involvement in the Syrian civil war and allegations of Russian meddling in the U.S. elections in 2016. While a 2017 law bars Trump from easing many sanctions without Congress’ approval, he can offer some relief without a nod from Congress. The Republican president, who did not want to sign the law and has missed several deadlines for imposing sanctions included in it, could send a signal that the administration does not plan to expand the list of Russian firms and individuals subject to economic and travel restrictions. That would unfreeze much-needed investment and lending from international investors who, at the moment, are reluctant to commit to Russia for fear of the sanctions’ impact.

SYRIAN DEAL

Washington ally Israel is anxious that, with the conflict in Syria entering its end game, Iranian and Iran-backed forces will be left gathered around Israel’s borders. At the summit, Trump may ask Putin, the most powerful outside player in Syria since Russia’s military intervention there, to use his influence with Tehran to curb Iran’s military presence. This would be tough to deliver for Putin: it would risk a rupture with his allies in Tehran, and could leave Russian forces having to do the lion’s share of the remaining fighting in Syria, a burden that Moscow does not want to shoulder.

DIPLOMATIC TIT-FOR-TAT

Russia’s diplomatic presence in the United States, and the U.S. missions in Russia, are depleted after two rounds of tit-for-tat diplomatic expulsions in the past two years. The first was over alleged Russian meddling in the U.S. election, and the second, this year, was in response to the poisoning in England of former Russian spy Sergei Skripal and his daughter. Putin and Trump could agree in Helsinki to restore the full complement of diplomatic staff. That would not change the substance of the U.S.-Russia relationship, but it would be a symbol of a new start.

RUSSIA’S BACKYARD

Since Russia’s annexation of Crimea in 2014, the NATO alliance has stepped up military exercises in eastern Europe. The aim, according to NATO leaders, is to reassure alliance members who fear a Russian incursion. That has angered Russia. It says NATO is bearing down on its backyard. The Kremlin has likened it to Russia stationing missiles in Mexico. If Trump scaled back the exercises, that would be a big win for Putin. Two senior NATO diplomats told Reuters they are prepared for a worst-case scenario that Trump would announce a freeze on U.S. military exercises or withdraw troops from the Baltics in a gesture to Putin. At the NATO summit in Brussels that precedes Helsinki, NATO states will seek Trump’s assurances that he will stand firm on the exercises.

UKRAINIAN ALLY

Washington has stood by Ukraine’s pro-Western leaders in their stand-off with Russia. That has included the United States providing Kiev with hundreds of millions of dollars worth of military aid. Helsinki would be a triumph for Putin if he persuaded Trump to drop that military aid. Ukrainian officials say they have assurances from Trump aides he won’t do this, but acknowledge anything can happen when Trump and Putin are in a room together. In return, the Russian leader could make concessions over eastern Ukraine, where pro-Moscow separatists control swathes of territory. Diplomats say there is a deal to be done allowing armed international peacekeepers to patrol the area. However, Putin will not contemplate any concessions over Crimea.

(Writing by Christian Lowe and Mary Milliken; Editing by Gareth Jones)

Turkey’s Erdogan sworn in with new presidential powers

FILE PHOTO: Turkish President Tayyip Erdogan addresses his supporters during an election rally in Istanbul, Turkey, June 23, 2018. REUTERS/Alkis Konstantinidis/File Photo

By Ece Toksabay and Gulsen Solaker

ANKARA (Reuters) – Tayyip Erdogan was sworn in again as Turkey’s president on Monday, assuming sweeping powers he won in a referendum last year and sealed in a hard-fought re-election victory two weeks ago.

Erdogan, who has dominated Turkish politics for 15 years, says the powerful new executive presidency is vital to drive economic growth, ensure security after a failed 2016 military coup and safeguard the country from conflict in Syria and Iraq.

“As president, I swear upon my honor and integrity, before the great Turkish nation and history, to work with all my power to protect and exalt the glory and honor of the Republic of Turkey,” Erdogan told parliament as he took the oath of office.

The introduction of the new presidential system marks the biggest overhaul of governance since the Turkish republic was established on the ruins of the Ottoman Empire nearly a century ago.

The post of prime minister has been scrapped and the president will now be able to select his own cabinet, regulate ministries and remove civil servants, all without parliamentary approval.

Erdogan’s supporters see the changes as a just reward for a leader who has put Islamic values at the core of public life, championed the pious working classes and overseen years of strong economic growth.

Opponents say the move marks a lurch to authoritarianism, accusing Erdogan of eroding the secular institutions set up by modern Turkey’s founder, Mustafa Kemal Ataturk, and driving it further from Western values of democracy and free speech.

NEW CABINET TO BE NAMED

Erdogan is expected to name a streamlined cabinet of 16 ministers on Monday evening after a ceremony at the presidential palace for more than 7,000 guests, including Venezuelan President Nicolas Maduro, Russia’s Prime Minister Dmitry Medvedev and Hungarian Prime Minister Viktor Orban.

No major Western leader was included on a list of 50 presidents, prime ministers and other high-ranking guests published by state news agency Anadolu.

Investors were waiting to see whether cabinet appointees would include individuals seen as market-friendly, and particularly whether Mehmet Simsek, currently deputy prime minister, would continue to oversee the economy.

“For the cabinet appointments in the past several years, the most important issue has been the presence of the current deputy prime minister, Mehmet Simsek,” said Inan Demir, a senior economist at Nomura International.

The lira TRYTOM, which is down some 16 percent so far this year and has been battered by concern about Erdogan’s drive for lower interest rates, firmed to its highest level since mid-June before falling back to stand at 4.61 against the dollar at 1350 GMT.

Erdogan has described high interest rates as “the mother and father of all evil”, and said in May he would expect to wield greater economic control after the election.

“We will take our country much further by solving structural problems of our economy,” he said on Saturday, referring to high interest rates, inflation and the current account deficit.

Inflation surged last month above 15 percent, its highest level in more than a decade, despite interest rate hikes of 500 basis points by the central bank since April.

(Editing by Dominic Evans and Gareth Jones)

Wall Street enters third day of gains as trade fears ease

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 6, 2018. REUTERS/Brendan McDermid

By Sruthi Shankar

(Reuters) – U.S. stocks rose on Monday, with bank stocks leading third day of gains in a row after strong U.S. jobs data from last week helped investors brush aside trade concerns.

The S&P financial index rose 1.3 percent, providing the biggest boost to the main S&P index. But gains were widespread, with technology, energy, industrials, consumer discretionary and healthcare stocks rising.

The United States and China engaged in tit-for-tat tariffs on Friday, both countries imposing duties worth $34 billion on each others’ goods. But the benchmark S&P 500 closed up 0.84 percent on Friday as many analysts said the move was already priced in, but warned that further escalation could dent the appetite for stocks.

China’s securities regulator said on Sunday it plans to ease restrictions on foreign investment in stocks listed on the Shanghai or Shenzhen exchanges to attract more foreign capital and support the economy.

The sentiment was largely upbeat after Friday’s U.S. payrolls report showed tame wages and more people looking for work, boosting optimism that the Federal Reserve would stay on a path of gradual interest rate increases.

“Last Friday’s gains managed to put a positive patina on what was otherwise a rather unimpressive week for equity investors,” Peter Kenney, senior market strategist at Global Markets Advisory Group in New York, wrote in a note.

“That tone could serve investors well this week as we launch into Q2 earnings season.”

At 9:49 a.m. ET the Dow Jones Industrial Average was up 193.11 points, or 0.79 percent, at 24,649.59, the S&P 500 was up 15.33 points, or 0.56 percent, at 2,775.15 and the Nasdaq Composite was up 46.97 points, or 0.61 percent, at 7,735.36.

All eyes will turn to second-quarter earnings reports, with banks JPMorgan, Wells Fargo and Citigroup scheduled to report on Friday.

S&P 500 companies are expected to report 21 percent growth in earnings per share for the June quarter, according to Thomson Reuters I/B/E/S. But focus will be on any warnings companies might give about the impact of trade tariffs.

U.S.-listed shares of Chinese companies Alibaba, JD.com and Baidu climbed after KeyBanc recommendations on the stocks.

Tesla was up 1.6 percent after automotive news website Electrek reported the company hiked prices of its Model X and S cars by over $20,000 in China due to tariffs.

Groupon jumped 8.8 percent after a Recode report that the daily deals website operator was looking for a buyer.

Advancing issues outnumbered decliners for a 2.53-to-1 ratio on the NYSE and a 2.16-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and no new lows, while the Nasdaq recorded 97 new highs and six new lows.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

Eight boys brought out of Thai cave by late on day two of rescue

Medics wait in one of nine ambulances stationed outside the Tham Luang cave mouth, where boys are trapped in a flooded cave, in the northern province of Chiang Rai, Thailand, July 9, 2018. REUTERS/James Pomfret

By Panu Wongcha-um and James Pomfret

CHIANG RAI, Thailand (Reuters) – Rescue workers in Thailand on Monday brought four boys out of a flooded cave where a 12-member soccer squad and their coach were trapped for more than two weeks, taking the total number rescued to eight.

A Reuters witness near the Tham Luang cave in the northern province of Chiang Rai saw medical personnel carrying four people out of the cave to waiting ambulances over the course of the day.

The rescue operation was launched on Sunday and four boys were brought out that day. They were in good condition in hospital, officials said.

“As of now, eight people have left the cave,” an official involved in the rescue operation told Reuters. The official declined to be identified as he is not authorized to speak to the media.

The Thai navy SEAL unit, which has been overseeing the rescue, later confirmed on its Facebook page that the total number of boys brought out was eight.

The “Wild Boars” soccer team and their coach got trapped on June 23 when they set out to explore the vast cave complex after soccer practice, when a rainy season downpour flooded the tunnels.

British divers found the 13, huddled on a muddy bank in a partly flooded chamber several kilometers inside the complex, on Monday last week.

An ambulance leaves from Tham Luang cave complex in the northern province of Chiang Rai, Thailand, July 9, 2018. REUTERS/Soe Zeya Tun

An ambulance leaves from Tham Luang cave complex in the northern province of Chiang Rai, Thailand, July 9, 2018. REUTERS/Soe Zeya Tun

The dangerous bid to rescue the boys – aged between 11 and 16 – got going again hours earlier on Monday after a break to replenish oxygen supplies and make other preparations deep inside the cave complex.

Authorities have said the mission could take three or four days to complete. It is a race against the clock with heavy rain expected in coming days, which would again dangerously flood the tunnels with fast flowing, and rising, water.

The rescue team went into the cave to resume the operation at 11 a.m. (0400 GMT), the chief of the rescue mission, Narongsak Osottanakorn, told a news conference earlier, adding he expected good news.

Thirteen foreign divers and five members of Thailand’s elite navy SEAL unit make up the main team guiding the boys to safety through narrow, submerged passageways that claimed the life of a former Thai navy diver on Friday.

Narongsak said that the “same multinational team” that went into the cave on Sunday to retrieve the first four boys was deployed on Monday.

He did not say how many boys the team hoped to bring out on Monday.

Narongsak Osottanakorn, former governor of Chiang Rai province and the head of the rescue mission, attends a news conference after resuming the mission to rescue a group of boys and their soccer coach trapped in a flooded cave, in the northern province of Chiang Rai, Thailand, July 9, 2018. REUTERS/Tyrone Siu

Narongsak Osottanakorn, former governor of Chiang Rai province and the head of the rescue mission, attends a news conference after resuming the mission to rescue a group of boys and their soccer coach trapped in a flooded cave, in the northern province of Chiang Rai, Thailand, July 9, 2018. REUTERS/Tyrone Siu

GOOD HEALTH

On Sunday, divers held the first four boys close to bring them out, and each had to wear an oxygen mask to enable normal breathing, authorities said.

Narongsak said rescuers had to tighten a guide rope as part of their preparations for the second phase of the rescue on Monday.

Interior Minister Anupong Paojinda told reporters the four boys rescued on Sunday were in good health in hospital but did not give details. There was no word on the condition of any of the people brought out on Monday.

Prime Minister Prayuth Chan-ocha went to the cave to inspect the rescue operation later on Monday, with navy rescuers giving him a rousing cheer.

The fate of the boys and their coach has gripped Thailand and drawn attention from around the world.

Authorities have not confirmed the identity of the first four boys rescued. Some of the boys’ parents told Reuters they had not been told who had been rescued and that they were not allowed to visit the hospital.

Narongsak said the rescued boys had not been identified out of respect for the families whose sons were still trapped, adding that the boys were being kept away from their parents due to fear of infection.

“The four children are well at Chiang Rai Prachanukroh hospital. But they still need to be kept away from their parents and others due to fear about infection,” he said.

Medical teams previously said concerns included hypothermia and an airborne lung infection known as “cave disease”, which is caused by bat and bird droppings.

Somboon Sompiangjai, 38, the father of one of the trapped boys, said parents were told by rescuers ahead of Sunday’s operation the “strongest children” would be brought out first.

“We have not been told which child has been brought out … We can’t visit our boys in hospital because they need to be monitored for 48 hours,” Somboon told Reuters.

“I’m hoping for good news,” he said.

The cave complex is off-limits during the rainy season, which usually runs from May to October, when downpours can quickly flood it.

Relatives said the boys had been inside the labyrinthine complex during the dry season.

The president of soccer’s governing body, FIFA, has invited the boys to the World Cup final in Moscow on Sunday if they make it out in time.

 

(Reporting by Panu Wongcha-um, Patpicha Tanakasempipat, John Geddie and James Pomfret in CHIANG RAI; Additional reporting by Amy Sawitta Lefevre, Panarat Thepgumpanat, Pracha Hariraksapitak, and Aukkarapon Niyomyat in BANGKOK; Writing by John Geddie; Editing by Amy Sawitta Lefevre, Robert Birsel)

Some heat relief forecast as California fires rage

Santa Barbara County Firefighter spray water on flames at a home at the site of a wildfire in Goleta, California, U.S., July 6, 2018 in this image released on social media. Mike Eliason/Santa Barbara County Fire/via REUTERS

By Dan Whitcomb

LOS ANGELES (Reuters) – California firefighters battling several wildfires that have destroyed dozens of structures and forced thousands of residents to evacuate will get some relief as temperatures cool from scorching levels later this week, the National Weather Service (NWS) said.

“Starting Monday we’re going to see a gradual cool down, as we shave just a few degrees off each day until about midweek it gets to something like normal, in the mid-90s (Fahrenheit) inland and 80s at the coast,” said Jim Hayes of the NWS Weather Prediction Center in College Park, Maryland.

Dozens of blazes have broken out across the western United States, fanned by scorching heat, winds and low humidity in a, particularly intense fire season.

This year’s fires had burned more than 2.9 million acres (1.17 million hectares) through Friday, already more than the annual average of about 2.4 million acres (971,000 hectares)over the past 10 years, according to the National Interagency Fire Center.

The remains of an unidentified person were found on Friday near a home burned to the ground by the Klamathon Fire, which broke out on Thursday near California’s border with Oregon. It marked the first fatality of the fire season in California.

A firefighter was injured battling the blaze but has since been released from the hospital, authorities said at a news conference on Sunday night.

The Klamathon Fire, which has destroyed 81 structures and blackened about 35,000 acres (14,160 hectares), was 25 percent contained on Sunday evening, according to Cal Fire. More than 1,500 people have been affected by the flames.

Authorities said steep terrain and erratic winds have made it difficult for firefighters to fight the Klamathon Fire.

Elsewhere in Northern California, the County Fire has charred more than 90,200 acres (36,500 hectares) in sparsely populated wooded areas of Napa and Yolo Counties.

Some 2,800 firefighters faced with inaccessible terrain, high temperatures and low humidity, were battling the fire, which was 65 percent contained.

In Colorado, officials said fire crews had made “much progress” battling the Spring Creek Fire, which broke out on June 27 and has consumed 106,985 acres (43,295 hectares). It was 43 percent contained on Saturday, the officials said.

(Reporting by Dan Whitcomb in Los Angeles; Additional reporting by Rich McKay in Atlanta, Maria Caspani in New York and Makini Brice in Washington; Editing by Elaine Hardcastle and Andrea Ricci)

UK police hunt nerve agent container after woman dies

Dawn Sturgess, who has died as a result of Novichok poisoning, is pictured in Salisbury, Britain June 27, 2016, in this picture obtained from social media. Facebook/Dawn Sturgess via REUTERS

By Paul Sandle and William Schomberg

LONDON (Reuters) – A woman who died after being poisoned with a nerve agent that also struck a former Russian spy in March must have handled a contaminated item, and tracking it down is key to police investigations, Britain’s top counter-terrorism officer said.

FILE PHOTO: Forensic investigators, wearing protective suits, emerge from the rear of John Baker House, after it was confirmed that two people had been poisoned with the nerve-agent Novichok, in Amesbury, Britain, July 6, 2018. REUTERS/Henry Nicholls/File Photo

FILE PHOTO: Forensic investigators, wearing protective suits, emerge from the rear of John Baker House, after it was confirmed that two people had been poisoned with the nerve-agent Novichok, in Amesbury, Britain, July 6, 2018. REUTERS/Henry Nicholls/File Photo

Dawn Sturgess, 44, died on Sunday just over a week after she was exposed to Novichok in southwestern England, a few miles from where Russian double agent Sergei Skripal and his daughter Yulia were attacked with the same poison.

The death of Sturgess, a mother of three, was being treated as a murder, police said.

“This latest horrendous turn of events has only served to strengthen the resolve of our investigation team as we work to identify those responsible for this outrageous, reckless and barbaric act,” counter-terrorism police chief Neil Basu said.

Basu told reporters the priority was to determine how Sturgess and her partner, 45-year-old Charlie Rowley who is critically ill, came across an item contaminated with Novichok, developed by the Soviet military during the Cold War.

Britain and its allies blamed Russia for the attack in March on the Skripals, prompting the biggest Western expulsion of Russian diplomats since the Cold War. Moscow has rejected the accusations and has hit back by expelling Western diplomats.

British Prime Minister Theresa May said she was appalled and shocked by Sturgess’s death and the interior minister, Sajid Javid, said the “desperately sad news only strengthens our resolve to find out exactly what has happened”.

Javid, who is chairing a meeting of the government’s emergency committee on Monday, has said there were no plans at this stage for further sanctions against Russia.

The Skripals fell ill after the poison was applied to the ex-spy’s front door in the city of Salisbury. Sturgess and Rowley were found at a house in Amesbury, 11 kilometers (7 miles) away.

FILE PHOTO: A police officer stands in front of screening erected behind John Baker House, after it was confirmed that two people had been poisoned with the nerve-agent Novichok, in Amesbury, Britain, July 5, 2018. REUTERS/Henry Nicholls/File Photo

FILE PHOTO: A police officer stands in front of screening erected behind John Baker House, after it was confirmed that two people had been poisoned with the nerve-agent Novichok, in Amesbury, Britain, July 5, 2018. REUTERS/Henry Nicholls/File Photo

Basu said the severe reaction of Sturgess and Rowley meant they must have received a high dose of Novichok.

“Our hypothesis is that they must have handled a container we are now seeking,” he said. “Our focus and priority at this time is to identify and locate any container that we believe may be the source of the contamination.”

The poisoning of the Skripals was the first known offensive use of such a chemical weapon in Europe since World War Two.

Russia has denied any involvement in the Skripal case and suggested the British security services carried out the attack to stoke anti-Moscow hysteria, an assertion London calls absurd.

FATAL TOUCH

Sturgess and Rowley fell ill on June 30. Medical workers initially suspected a drug overdose but tests by the Porton Down military research center showed they had been exposed to Novichok.

Britain has notified the global chemical weapons watchdog, the Organisation for the Prohibition of Chemical Weapons (OPCW).

Sturgess died at Salisbury District Hospital, the same facility that nursed the critically ill Skripals.

Yulia Skripal, Sergei’s daughter, was in a coma for 20 days after she was attacked and was eventually discharged about five weeks after the poisoning. Her father was discharged on May 18.

“The staff here at Salisbury District Hospital worked tirelessly to save Dawn. They did everything they could,” Christine Blanshard, medical director at the hospital said.

Britain’s public health authority acknowledged on Friday the concerns of people living in the area after the two incidents involving Novichok, but said it was confident that the risk to the public remained low.

(Additional reporting by Michael Holden, Andrew MacAskill and Kate Kelland; Editing by Peter Cooney)

Rescuers race to find survivors after Japan floods kill at least 114

Rescue workers look for missing people in a house damaged by heavy rain in Kumano town, Hiroshima Prefecture, Japan, in this photo taken by Kyodo July 9, 2018. Mandatory credit Kyodo/via REUTERS

By Kiyoshi Takenaka and Issei Kato

KURASHIKI, Japan (Reuters) – Rescuers in Japan dug through mud and rubble on Monday, racing to find survivors after torrential rain unleashed floods and landslides that killed at least 114 people, with dozens missing.

Prime Minister Shinzo Abe canceled an overseas trip to deal with Japan’s worst flood disaster since 1983, with several million people forced from their homes.

Officials said the overall economic impact was not clear.

Rain tapered off across the western region on Monday to reveal blue skies and a scorching sun that pushed temperatures well above 30 Celsius (86 Fahrenheit), fuelling fears of heat-stroke in areas cut off from power or water.

A helicopter flies over Mabi town which was flooded by the heavy rain in Kurashiki, Okayama Prefecture, Japan, in this photo taken by Kyodo July 9, 2018. Mandatory credit Kyodo/via REUTERS

A helicopter flies over Mabi town which was flooded by the heavy rain in Kurashiki, Okayama Prefecture, Japan, in this photo taken by Kyodo July 9, 2018. Mandatory credit Kyodo/via REUTERS

“We cannot take baths, the toilet doesn’t work and our food stockpile is running low,” said Yumeko Matsui, whose home in the city of Mihara, in Hiroshima prefecture, has been without water since Saturday.

“Bottled water and bottled tea are all gone from convenience stores and other shops,” the 23-year-old nursery school worker said at an emergency water supply station.

Some 11,200 households had no electricity, power companies said on Monday, while hundreds of thousands had no water.

The death toll reached at least 114, NHK public television said, with 61 people missing.

Though the persistent rain had ended, officials warned of sudden showers and thunderstorms as well as of more landslides on steep mountainsides saturated over the weekend.

Chief Cabinet Secretary Yoshihide Suga said Prime Minister Abe had canceled his trip to Belgium, France, Saudi Arabia and Egypt because of the disaster. He had been due to leave on Wednesday.

Industry operations have also been hit, with Mazda Motor Corp saying it was forced to close its head office in Hiroshima on Monday.

The automaker, which suspended operations at several plants last week, said the halt would continue at two plants until Tuesday because it could not receive components, although both units were undamaged.

Daihatsu, which suspended production on Friday at up to four plants, said they would run the second evening shift on Monday.

Electronics maker Panasonic said operations at one plant remained suspended after the first floor was flooded.

A submerged Toyota Motor's car is seen in a flooded area in Mabi town in Kurashiki, Okayama Prefecture, Japan, July 9, 2018. REUTERS/Issei Kato

A submerged Toyota Motor’s car is seen in a flooded area in Mabi town in Kurashiki, Okayama Prefecture, Japan, July 9, 2018. REUTERS/Issei Kato

GRIM RECOVERY

Refineries and oil terminals were not affected but blockages in roads leading to one Showa Shell oil terminal in Hiroshima caused gas and diesel shortages nearby.

Shares in some companies fell but losses were modest, with Mazda even gaining as investors bet damage was limited.

“If the rainfall affects supply chains, there will be selling of the affected stocks,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“Otherwise, the impact will be limited.”

Elsewhere, people soldiered on with a grim recovery.

The floodwaters slowly receded in Kurashiki city’s Mabi district, one of the hardest hit areas, leaving a thick coat of brown mud and cars turned over or half-submerged, as residents returned to tackle the mess.

“I’ve never experienced anything like this is my life, and I’ve lived for more than 70 years,” said Hitoko Asano, 71.

“The washing machine, refrigerator, microwave, toaster, PC – they’re all destroyed,” she said as she cleaned her two-story house.

“Clothes in the drawers were all damaged by muddy water, we won’t even bother to wash them. I can’t help wondering how much it’ll cost to repair this.”

At one landslide in Hiroshima, shattered piles of lumber marked the sites of former homes, television images showed. Other homes had been tossed upside down.

Although evacuation orders were scaled sharply back from the weekend, some 1.7 million people still face orders or advice to keep away from homes, fire and disaster officials said.

The economic impact was being assessed.

“I’m worried there could be a significant impact on production, consumption and tourism,” Toshiro Miyashita, Bank of Japan’s Fukuoka branch manager, who oversees Kyushu region, told a news conference.

Japan monitors weather conditions and issues warnings early, but its dense population means every bit of usable land is built on in the mostly mountainous country, leaving it prone to disasters.

(Additional reporting by Elaine Lies, Shinichi Saoshiro, Naomi Tajitsu, Ayai Tomisawa, Linda Sieg, Osamu Tsukimori, Leika Kihara and Tetsushi Kajimoto; Writing by Elaine Lies; Editing by Clarence Fernandez, Robert Birsel)

New Wildfire erupts in northern California, kills one, forcing evacuations, spreading fast

An air tanker drops retardant on wildfire called "BentonFire" near off Benton Road and Crams Corner Drive in this image on social media in Anza in Riverside County, California, U.S., July 4, 2018. Courtesy California Department of Forestry and Fire Protection/Handout via REUTERS

By Dan Whitcomb and Keith Coffman

LOS ANGELES/DENVER (Reuters) – A wildfire in northern California killed one person, destroyed buildings, forced the evacuation of hundreds of people from nearby communities and prompted the governor to declare a state of emergency.

The Klamathon Fire broke out on Thursday and, within hours, spread from an initial 1,000 acres to 8,000 acres (3,237 hectares), the California Department of Forestry and Fire Protection said in an advisory.

One person has died due to the fire, a spokeswoman for the agency said on Friday, without providing any details.

The blaze destroyed an unknown number of structures and forced residents in the small communities of Hornbrook, Hilt and Colestein Valley to flee as flames crossed Interstate 5 near the California and Oregon border, local media reported.

California Governor Jerry Brown declared a state of emergency for the area, allowing state resources to be devoted to fighting the wildfire and keeping people safe.

FILE PHOTO: Fire is seen in El Jebel, Colorado, U.S., July 4, 2018 in this picture obtained from social media. Picture taken July 4, 2018. Kim Doyle Wille/via REUTERS

FILE PHOTO: Fire is seen in El Jebel, Colorado, U.S., July 4, 2018 in this picture obtained from social media. Picture taken July 4, 2018. Kim Doyle Wille/via REUTERS

The Klamathon Fire was one of more than three dozen wildfires that firefighters were battling in California and across the U.S. West during an unusually active fire season.

Fires have razed through more than 2.8 million acres in the United States this year through Thursday, above the average of about 2.4 million acres for the same period over the last 10 years, according to the National Interagency Fire Center.

Firefighting efforts across the region have been hampered by blistering temperatures, low humidity and erratic winds.

CONTAINMENT

Crews in Northern California tried on Thursday to cut containment lines around the County Fire, which has already burned across some 135 square miles. Nine structures have been destroyed and some 100 homes were said to be in danger.

That blaze, which broke out on Saturday in steep, inaccessible terrain about 45 miles northwest of Sacramento and spans more than 88,000 acres, has so far largely burned away from populated areas. It was 37 percent contained early on Friday, officials said.

The weather will become hotter and drier into the weekend, Cal Fire warned.

In Colorado, nine major wildfires have razed through more than 216,000 acres, according to the Rocky Mountain Coordination Center.

Crews battling the Spring Fire got a respite from hot temperatures on Thursday, with rain forecast for the region, although heavy downpours could trigger flash flooding over the burn scar, according to InciWeb, a federal wildfire website.

Near Aspen, the Lake Christine fire has enveloped more than 5,000 acres and destroyed three homes in the town of EL Jebel, the Eagle County Sheriff’s Office said. The fire has not been contained and some 500 people have been ordered to evacuate.

(Additional reporting by Brendan O’Brien in Milwaukee and Makini Brice in Washington; Editing by Larry King and Bernadette Baum)

South Syrian rebels lay down arms as Assad seizes crossing

FILE PHOTO: A Syrian opposition flag is erected at the Syrian-Jordanian border at the Nasib crossing in Deraa province, Syria August 27, 2017.REUTERS/Alaa Al-Faqir/File Photo

AMMAN/BEIRUT (Reuters) – South Syrian rebels said they had agreed on Friday to lay down arms in a Russian-brokered deal that appeared to surrender Deraa province to the government in another major victory for President Bashar al-Assad.

The Syrian government recovered the crucial Nassib border crossing with Jordan, held by rebels for three years, state media reported, after a fierce assault in insurgent territory along the frontier backed by Russian air strikes.

Deraa province encompasses most of the area held by rebels in the southwest, one of their last remaining strongholds in Syria. Assad is also aiming to recover control of rebel-held areas of Quneitra province at the frontier with the Israei-occupied Golan Heights.

Government advances in Deraa in a two-week offensive had brought large parts of the province back under state control and caused a massive rapid human exodus as hundreds of thousands of people fled.

Rebel sources said the deal brokered by Russia would allow civilians to return to their villages and towns with Russia guaranteeing their protection.

Russian guarantees will also be extended to rebel fighters who wish to “settle their status” with the government – a process by which former insurgents accept to live under state rule again, the sources said.

Rebels who did not wish to come back under Assad’s rule would leave for the insurgent stronghold in northwest Syria, they said.

Several witnesses along the Jordan border fence with Syria said they spotted armored vehicles and a tank with a Russian flag heading to the Nassib crossing, an important trade artery.

A commander in a regional military alliance that backs Assad said an Israeli air strike had hit a Syrian village in Quneitra on Friday, causing no casualties. Israel’s military said it had hit a Syrian army post in that area.

(Reporting by Laila Bassam and Ellen Francis in Beirut, Suleiman al-Khalidi in Amman; Writing by Ellen Francis, Editing by Alison Williams, Tom Perry, William Maclean)

Japan executes leader, six followers, of sarin attack doomesday cult

Japan’s Justice Minister Yoko Kamikawa attends a news conference following the execution of several members of the doomday cult, including its leader Chizuo Matsumoto, also known as Shoko Asahara, at Justice Ministry in Tokyo, Japan July 6, 2018. REUTERS/Issei Kato

By Elaine Lies and Kiyoshi Takenaka

TOKYO (Reuters) – Japan executed on Friday the former leader of a doomsday cult and six other members of the group that carried out a sarin gas attack on the Tokyo subway in 1995, killing 13 people and shattering the country’s myth of public safety.

The Aum Shinrikyo, or Aum Supreme Truth cult, which mixed Buddhist and Hindu meditation with apocalyptic teachings, staged a series of crimes including simultaneous sarin gas attacks on subway trains during rush hour in March 1995. Sarin, a nerve gas, was originally developed by the Nazis.

The images of bodies, many in business suits, sprawled across platforms stunned Japan, and triggered public safety steps such as the removal of non-transparent rubbish bins that remain in force to this day.

As well as killing the 13, the attack injured at least 5,800 people, some permanently.

Justice Minister Yoko Kamikawa read out the names of the seven at a news conference and said what they had done was “extremely atrocious”.

“These crimes … plunged people not only in Japan but in other countries as well into deadly fear and shook society to its core,” Kamikawa said.

The injured of the deadly gas attack are treated by rescue workers near Tsukiji subway station in Tokyo, in this photo taken by Kyodo March 20, 1995. Mandatory credit Kyodo/via REUTERS

The injured of the deadly gas attack are treated by rescue workers near Tsukiji subway station in Tokyo, in this photo taken by Kyodo March 20, 1995. Mandatory credit Kyodo/via REUTERS

Chizuo Matsumoto, the cult’s leader who went by the name Shoko Asahara, was the first to be hanged, media said as it broke into regular programming to report the news.

Announcements of the other hangings followed through the morning.

Family members of attack victims expressed relief.

“I think it’s right that he was executed,” said Shizue Takahashi, whose husband was a subway worker who died after removing a package of sarin from a train.

“My husband’s parents and my parents are already dead,” the silver-haired Takahashi added. “I think they would find it regrettable that they could not have heard the news of this execution.”

Executions are rare in Japan but surveys show most people support the death sentence.

Rights group Amnesty International said justice demanded accountability but also respect for civil rights.

“The death penalty can never deliver this as it is the ultimate denial of human rights,” Hiroka Shoji, the group’s East Asia Researcher, said in a statement.

A citizens’ group calling for abolishing the death penalty said it was a “mass execution that goes against the global trend”.

Some Japanese worried about revenge.

“I cheered when I heard he’d been killed, but worry that his former followers might deify him and do something. We have to be on guard for a while,” said Twitter user Chie.

Japanese doomsday cult leader Shoko Asahara sits in a police van following an interrogation in Tokyo, Japan, in this photo taken by Kyodo September 25, 1995. Mandatory credit Kyodo/via REUTERS

BIZARRE RITUALS AND WEAPONS

Asahara, 63, a pudgy, partially blind yoga instructor, was sentenced to hang in 2004 on 13 charges, including the subway gas attacks and other crimes that killed at least a dozen people.

He pleaded not guilty and never testified, but muttered and made incoherent remarks in court during the eight years of his trial. The sentence was upheld by the Supreme Court in 2006.

In all, 13 cult members were sentenced to death during more than 20 years of trials, which came to an end in January 2018.

Asahara, who founded Aum in 1987, said that the United States would attack Japan and turn it into a nuclear wasteland. He also said he had traveled forward in time to 2006 and talked to people then about what World War Three had been like.

At its peak, the cult had at least 10,000 members in Japan and overseas, including graduates of some of Japan’s top universities.

Some members lived in a commune-like complex Asahara established at the foot of Mount Fuji, where the group studied his teachings, practiced bizarre rituals and gathered an arsenal of weapons – including sarin.

The cult also used sarin in 1994, releasing the gas in the central city of Matsumoto on a summer night in an attempt to kill three judges set to rule on it.

That attack, which involved a refrigerator truck releasing the gas to be dispersed by the wind through a neighborhood, failed to kill the judges but killed eight other people and injured hundreds.

(Reporting by Elaine Lies, Kiyoshi Takenaka, Chang-Ran Kim, Kaori Kaneko, Ami Miyazaki; Editing by Michael Perry, Robert Birsel)