Blast rips through supermarket in Russia’s St Petersburg, 10 hurt

A policeman stands guard near a supermarket after an explosion in St Petersburg, Russia December 27, 2017.

MOSCOW (Reuters) – A blast ripped through a supermarket in Russia’s St Petersburg on Wednesday evening, injuring at least 10 shoppers, investigators said.

The explosion was caused by a homemade bomb packed with pieces of metal with a force equivalent to 200 grammes of TNT, they said. They have opened a criminal case on the grounds of attempted murder.

Nobody was killed in the explosion, and it was not immediately clear what the motive for it was.

Russian media reports said the bomb had been hidden in a locker where shoppers leave their belongings in a branch of the Perekrestok supermarket chain.

“All possible versions of what has happened are being worked on,” Alexander Klaus, the head of St Petersburg’s investigative committee, told Reuters.

“As of now, it has been established that 10 people were taken to the city’s hospitals with injuries. At the moment, the lives of those injured are not under threat.”

(Reporting by Andrew Osborn; Editing by Alison Williams)

Erie, Pennsylvania pummeled by record 5 feet of snow

A general view of 1925 State Street after the record snowfall in Erie, Pennsylvania, U.S., December 26, 2017 in this picture obtained from social media.

(Reuters) – Snow piled up in Erie, Pennsylvania, on Wednesday after two days of record-breaking snowfall that had already surpassed 5 feet (1.5 meters), breaking city and state records, according to the National Weather Service.

Though residents are used to winter snow squalls blowing in from adjacent Lake Erie, which straddles the border with Canada, the Christmas storm is already one for the ages.

“This is an incredible amount of snow that we’re trying to move,” the Erie Police Department said in statement after the city declared a “snow emergency” on Tuesday, imploring people to stay off the streets.

By Tuesday evening, meteorologists had counted at least seven different city and state records broken by the storm.

The 34 inches (0.86 meters) that fell on Christmas Day alone was a new record for any single day in Erie, handily beating the 20-inch record set back in 1956, the National Weather Service said.

And the storm broke a 59-year-old record for two-day snowfall recorded anywhere in Pennsylvania, totaling 58 inches when Tuesday’s barrage was added and beating the 44-inch record set in Morgantown in 1958.

Another two to four inches of snow were forecast for Wednesday, with up to 6 inches in some places.

No residents of Erie, a city of 99,000 people according to recent U.S. census estimates, have been publicly reported as being injured in the storm, though some have complained to local news outlets about how long it takes to shovel out their driveways this week.

Pennsylvania Governor Tom Wolf deployed 21 Pennsylvania National Guard troops along with some all-terrain military vehicles to the region on Tuesday to help residents dig out, check on people’s well-being and transport emergency responders around the area.

(Reporting by Jonathan Allen in New York; Editing by Steve Orlofsky)

Poll: Hugs and dirty jokes – Americans differ on acceptable behavior

People participate in a "MeToo" protest march for survivors of sexual assault and their supporters in Hollywood, Los Angeles, California, U.S. on November 12, 2017.

By Chris Kahn

NEW YORK (Reuters) – Americans differ widely in their views of what constitutes sexual harassment, with age and race as well as gender throwing up the dividing lines, posing a challenge for those who police for such conduct in the workplace.

The issue has been thrown into the national spotlight as a string of prominent men in U.S. politics, entertainment and the media have been felled by allegations of sexual misconduct in recent months.

A Reuters/Ipsos national opinion poll, released on Wednesday, asked more than 3,000 American adults to consider eight different scenarios and then prompted them to decide if they would personally label each to be an example of sexual harassment. The variation in responses showed a need for employers to spell out expected standards, employment experts said.

While most adults in the Dec. 13-18 poll agreed that acts such as intentional groping or kissing “without your consent” amounted to sexual harassment, they disagreed over a number of other actions.

When asked about “unwanted compliments about your appearance,” for example, 38 percent of adults said this amounted to sexual harassment, while 47 percent said it did not.

Some 41 percent of adults said they thought it was sexual harassment when someone told you “dirty jokes” but 44 percent said it was not. And 44 percent of adults said that nonconsensual hugging was sexual harassment, while 40 percent said it was not.

The U.S. Equal Employment Opportunity Commission, a federal agency that enforces workplace discrimination laws, says sexual harassment can include unwelcome sexual advances as well as other verbal or physical conduct of a sexual nature that affects an individual’s employment, interferes with their performance or creates an intimidating or hostile work environment.

But courts have disagreed on when individual actions cross the line into harassment. And many workplace sexual harassment cases are settled by employers before they ever reach a court, so there is not a constant judicial airing of standards.

TOUCHING AND HUGGING

Since people come to work with different ideas of what is appropriate, managers should train their employees and develop clear lines of conduct so that there are no misunderstandings, said Suzanne Goldberg, director of the Center for Gender and Sexuality Law at Columbia Law School.

“The onus is on employers” to set the tone, Goldberg said. “Even if the co-workers don’t object or go to management to complain.”

In the Reuters/Ipsos poll, for example, 19 percent of men said that touching someone intentionally without their consent was not sexual harassment, compared with 11 percent of women. The poll did not specify exactly what was meant by non-consensual touching.

Fifty-two percent of people from racial minorities said that they considered non-consensual hugging to be sexual harassment, compared with 39 percent of whites.

While most adults said they thought that it was sexual harassment to send “pornographic pictures” to someone without their consent, younger people appeared to be more permissive.

Eighty-three percent of millennials, or those adults born after 1982, said it was sexual harassment, compared with 90 percent of gen-Xers (born 1965-1981) and 94 percent of baby boomers (born 1946-1964.)

Experts in sexual harassment law said it is understandable that women, especially women who are racial minorities, define sexual harassment differently than men, given that many have experienced it first-hand.

“Men do not cross the street to avoid people,” said Joanna Grossman, a law professor at Southern Methodist University who specializes in workplace equality. “Virtually all women do, whether or not they’ve been attacked before. It’s part of growing up in a group that’s been victimized for so long.”

WORKPLACE STANDARDS

Clear workplace standards would help everyone, including those who are accused of sexual harassment, said Minna Kotkin, director of the Brooklyn Law School Employment Law Clinic.

Kotkin, whose clinic provides legal help for people dealing with sexual harassment in the workplace, said she recently advised a man who said he was fired because he misunderstood where the line had been set.

“He worked in retail, and this was a place where there was sexual banter going around,” Kotkin said. “And one day he made a comment about a co-worker’s breasts. And then later she claimed that he grabbed her by the waist.”

“He got fired, and he was really surprised,” she said. “He thought that conduct was part of their relationship … But the question is, maybe this woman tolerated this all along and then finally had enough?”

The Reuters/Ipsos poll was conducted online in English throughout the United States. It has a credibility interval, a measure of accuracy, of 2 percentage points for the entire sample. The credibility interval is higher for subsets based on gender, age and race, as the sample size is reduced.

 

(Reporting by Chris Kahn; Editing by Frances Kerry)

Liberians vote in historic, delayed election

George Weah, former soccer player and presidential candidate of Congress for Democratic Change (CDC), prepares his ballot during presidential elections at a polling station in Monrovia, Liberia, December 26, 2017.

By James Giahyue and Alphonso Toweh

MONROVIA (Reuters) – Liberians went to the polls on Tuesday for a presidential election they hope will mark their first democratic transfer of power in more than seven decades, despite allegations of fraud.

Former world footballer of the year George Weah is squaring up against vice president Joseph Boakai, both of them promising to tackle poverty and corruption in a country where most citizens have no reliable electricity or clean drinking water.

They are bidding to succeed Ellen Johnson Sirleaf in a run-off vote delayed for more than a month after Boakai and another candidate alleged widespread fraud in October’s first-round vote, a challenge that the Supreme Court rejected this month.

There were no reports of violence as voting proceeded under sunny skies in the capital Monrovia. Election agents told Reuters first indications pointed to a lower turnout than in the first round.

“It is great day for Liberia – a test day for democracy,” said Boakai after casting his vote in Paynesville. “We will accept the results provided they meet all the standards.”

Officials said results were expected in the next few days, declining to give a specific date.

Johnson Sirleaf’s 12-year rule cemented peace in the West African country after civil war ended in 2003, and brought in much needed aid.

But critics, including much of the country’s youth, say her administration was marred by corruption and that she did little to raise most Liberians out of dire poverty.

Liberia was also racked by the Ebola crisis, which killed thousands between 2014 and 2016, while a drop in iron ore prices since 2014 has dented export revenues.

Weah, world footballer of the year in 1995, won with 38 percent in the first round versus Boakai’s 29 percent.

“I voted George Weah because I believe that he will do better for me and my country. I want change,” said Miama Kamara, a 32-year-old businesswoman, after casting her ballot in the capital.

“MARKED IMPROVEMENTS”

Observers from the U.S.-based National Democratic Institute said polling stations were better organised than in the first round.

The National Elections Commission said there were isolated incidents of voting irregularities, including one woman caught trying to vote twice, but no sign of widespread graft.

“So far the election process has been smooth and there are marked improvements on the Oct. 10 poll,” NEC said.

Boakai has found it harder to convince voters that he will bring change, given that he worked alongside Johnson Sirleaf for 12 years. Weah, by contrast, has won the hearts of mostly young Liberians through his star performances for Europe’s biggest football teams in the 1990s.

His arrival at a polling station in Paynesville was met with cheers by a crowd of supporters.

People wait to vote during the presidential election at a polling station in Monrovia, Liberia December 26, 2017.

People wait to vote during the presidential election at a polling station in Monrovia, Liberia December 26, 2017. REUTERS/Thierry Gouegnon

“My focus now is to win,” he told reporters. “From there, I am going to get on the drawing board with my team and then we’ll put a plan together to move our country forward.”

Some however are wary of Weah’s lack of political experience, education and concrete policy.

“Boakai understands diplomacy,” said McArthur Nuah Kermah, a school registrar in Paynesville. “Weah is not experienced and doesn’t know the workings of government.”

Turnout appeared low on the day after the Christmas holiday, in contrast to the high turnout for the first round, although official figures are yet to be released.

NEC did its best to rally young voters and conjure a sense of occasion in a morning Twitter post.

“First-time voters MUST vote on December 26 Run-Off elections,” its tweet said. “This is the first big process you are a part of … you must complete it in order to be a part of tomorrow’s glorious and democratic Liberia!”

(Writing by Edward McAllister; Editing by John Stonestreet and Andrew Heavens)

Apple faces lawsuits after saying it slows down aging iPhones

A salesman checks a customer's iPhone at a mobile phone store in New Delhi, India, July 27, 2016.

By Paresh Dave

SAN FRANCISCO (Reuters) – Apple Inc. defrauded iPhone users by slowing devices without warning to compensate for poor battery performance, according to eight lawsuits filed in various federal courts in the week since the company opened up about the year-old software change.

The tweak may have led iPhone owners to misguided attempts to resolve issues over the last year, the lawsuits contend.

All the lawsuits – filed in U.S. District Courts in California, New York and Illinois – seek class-action to represent potentially millions of iPhone owners nationwide.

A similar case was lodged in an Israeli court on Monday, the newspaper Haaretz reported.

Apple did not respond to an email seeking comment on the filings.

The company acknowledged last week for the first time in detail that operating system updates released since “last year” for the iPhone 6, iPhone 6s, iPhone SE and iPhone 7 included a feature “to smooth out” power supply from batteries that are cold, old or low on charge.

Phones without the adjustment would shut down abruptly because of a precaution designed to prevent components from getting fried, Apple said.

The disclosure followed a Dec. 18 analysis by Primate Labs, which develops an iPhone performance measuring app, that identified blips in processing speed and concluded that a software change had to be behind them.

One of the lawsuits, filed Thursday in San Francisco, said that “the batteries’ inability to handle the demand created by processor speeds” without the software patch was a defect.

“Rather than curing the battery defect by providing a free battery replacement for all affected iPhones, Apple sought to mask the battery defect,” according to the complaint.

The plaintiff in that case is represented by attorney Jeffrey Fazio, who represented plaintiffs in a $53-million settlement with Apple in 2013 over its handling of iPhone warranty claims.

The problem now seen is that users over the last year could have blamed an aging computer processor for app crashes and sluggish performance – and chose to buy a new phone – when the true cause may have been a weak battery that could have been replaced for a fraction of the cost, some of the lawsuits state.

“If it turns out that consumers would have replaced their battery instead of buying new iPhones had they known the true nature of Apple’s upgrades, you might start to have a better case for some sort of misrepresentation or fraud,” said Rory Van Loo, a Boston University professor specializing in consumer technology law.

But Chris Hoofnagle, faculty director for the Berkeley Center for Law & Technology, said in an email that Apple may not have done wrong.

“We still haven’t come to consumer protection norms” around aging products, Hoofnagle said. Pointing to a device with a security flaw as an example, he said, “the ethical approach could include degrading or even disabling functionality.”

The lawsuits seek unspecified damages in addition to, in some cases, reimbursement. A couple of the complaints seek court orders barring Apple from throttling iPhone computer speeds or requiring notification in future instances.

(Reporting by Paresh Dave; Editing by Leslie Adler)

U.S. sanctions North Korean missile experts, Russia offers to mediate

People watch a television broadcast of a news report on North Korea firing what appeared to be an intercontinental ballistic missile (ICBM) that landed close to Japan, in Seoul, South Korea, November 29, 2017

By David Brunnstrom and Denis Pinchuk

WASHINGTON/MOSCOW (Reuters) – The United States announced sanctions on two of North Korea’s most prominent officials behind its ballistic missile program on Tuesday, while Russia reiterated an offer to mediate to ease tension between Washington and Pyongyang.

The new U.S. steps were the latest in a campaign aimed at forcing North Korea – which has defied years of multilateral and bilateral sanctions – to abandon a weapons program aimed at developing nuclear-tipped missiles capable of hitting the United States.

“Treasury is targeting leaders of North Korea’s ballistic missile programs, as part of our maximum pressure campaign to isolate (North Korea) and achieve a fully denuclearized Korean Peninsula,” Treasury Secretary Steven Mnuchin said in a statement.

The move followed new United Nations sanctions announced last Friday in response to North Korea’s Nov. 29 test of an ICBM that Pyongyang said put all of the U.S. mainland within range of its nuclear weapons. Those sanctions sought to further limit North Korea’s access to refined petroleum products and crude oil and its earnings from workers abroad.

North Korea declared the U.N. steps to be an act of war and tantamount to a complete economic blockade.

The standoff between the United States and North Korea has raised fears of a new conflict on the Korean peninsula, which has remained in a technical state of war since the 1950-53 Korean War ended in an armistice, not a peace treaty.

The United States has said that all options, including military ones, are on the table in dealing with North Korea. It says it prefers a diplomatic solution, but that North Korea has given no indication it is willing to discuss denuclearization.

LEADING EXPERTS

The U.S. Treasury named the targeted officials as Kim Jong Sik and Ri Pyong Chol. It said Kim was reportedly a major figure in North Korea’s efforts to switch its missile program from liquid to solid fuel, while Ri was reported to be a key official in its intercontinental ballistic missile (ICBM) development.

The largely symbolic steps block any property or interests the two might have within U.S. jurisdiction and prohibit any dealings by U.S. citizens with them.

With their ruling Workers Party, military and scientific credentials, the men are two of three top experts considered indispensable to North Korea’s rapidly developing weapons programs.

Photographs and television footage show that the men are clearly among North Korean leader Kim Jong Un’s favorites. Their behavior with him is sharply at variance with the obsequiousness of other senior aides, most of whom bow and hold their hands over their mouths when speaking to the young leader.

Ri is one of the most prominent aides, and likely represents the Workers Party on the missile program, experts say.

Born in 1948, Ri was partly educated in Russia and promoted when Kim Jong Un started to rise through the ranks in the late 2000s.

Ri has visited China once and Russia twice. He met China’s defense minister in 2008 as the air force commander and accompanied Kim Jong Il on a visit to a Russian fighter jet factory in 2011, according to state media.

Kim Jong Sik is a prominent rocket scientist who rose after playing a role in North Korea’s first successful launch of a rocket in 2012.

He started his career as a civilian aeronautics technician, but now wears the uniform of a military general at the Munitions Industry Department, according to experts and the South Korean government.

Many other details, including his age, are not known.

KREMLIN OFFER

On Tuesday, the Kremlin, which has long called for the United States and North Korea to negotiate, said it was ready to act as a mediator if the two sides were willing for it to play such a role.

“Russia’s readiness to clear the way for de-escalation is obvious,” Kremlin spokesman Dmitry Peskov told reporters.

Asked to comment on the offer, a spokesman for the U.S. State Department, Justin Higgins, said the United States “has the ability to communicate with North Korea through a variety of diplomatic channels”, and added:

“We want the North Korean regime to understand that there is a different path that it can choose, however it is up to North Korea to change course and return to credible negotiations.”

Russian Foreign Minister Sergei Lavrov, who made a similar offer on Monday, told U.S. Secretary of State Rex Tillerson in a phone call on Tuesday that “Washington’s aggressive rhetoric” and beefing up of its military presence in the region had heightened tension and was unacceptable, his ministry said.

Lavrov underscored the need for “the fastest move to the negotiating process from the language of sanctions”, it said.

Another U.S. State Department spokesman, Michael Cavey, said Washington remained open to talks, but the onus was on North Korea “to take sincere and meaningful actions toward denuclearization and refrain from further provocations.”

South Korea’s Unification Ministry forecast on Tuesday that North Korea would look to open negotiations with the United States next year while continuing to seek recognition as a de facto nuclear power.

The United States has stressed the need for all countries, especially Russia, and China – North Korea’s main trading partner – to fully implement sanctions, including by cutting off oil supplies.

According to Chinese customs data, China exported no oil products to North Korea in November, apparently going above and beyond U.N. sanctions imposed earlier in the year.

China also imported no North Korean iron ore, coal or lead in November, the second full month of those trade sanctions, the data showed.

China has not disclosed its crude exports to North Korea for several years, but industry sources say it still supplies about 520,000 tonnes, or 3.8 million barrels, a year to the country via an aging pipeline.

North Korea also sources some of its oil from Russia.

Trade between North Korea and China has slowed through the year, particularly after China banned coal purchases in February.

Chinese exports of corn to North Korea in November also slumped, down 82 percent from a year earlier to 100 tonnes, the lowest since January. Exports of rice plunged 64 percent to 672 tonnes, the lowest since March.

(Reporting by Denis Pinchuk and Vladimir Soldatkin in Moscow; Additional reporting by Susan Heavey in Washington; Writing by Polina Ivanova; Editing by Alistair Bell and James Dalgleish)

North Korean defectors may have been exposed to radiation, says South

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Yuna Park

SEOUL (Reuters) – At least four defectors from North Korea have shown signs of radiation exposure, the South Korean government said on Wednesday, although researchers could not confirm if they were was related to Pyongyang’s nuclear weapons program.

The four are among 30 former residents of Kilju county, an area in North Korea that includes the nuclear test site Punggye-ri, who have been examined by the South Korean government since October, a month after the North conducted its sixth and most powerful nuclear test, Unification Ministry spokesman Baik Tae-hyun told a news briefing.

They were exposed to radiation between May 2009 and January 2013, and all defected to the South before the most recent test, a researcher at the Korea Atomic Energy Research Institute, which carried out the examinations, told reporters.

North Korea has conducted six nuclear bomb tests since 2006, all in tunnels deep beneath the mountains of Punggye-ri, in defiance of U.N. Security Council resolutions and international condemnation.

The researcher cautioned that there were a number of ways people may be exposed to radiation, and that none of the defectors who lived had lived in Punggye-ri itself showed specific symptoms.

A series of small earthquakes in the wake of the last test – which the North claimed to be of a hydrogen bomb – prompted suspicions that it may have damaged the mountainous location in the northwest tip of the country.

Experts warned that further tests in the area could risk radioactive pollution.

After the Sept. 3 nuclear test, China’s Nuclear Safety Administration said it had begun emergency monitoring for radiation along its border with North Korea.

And in early December, a state-run newspaper in China’s Jilin province, which borders North Korea and Russia, published a page of “common sense” advice on how readers can protect themselves from a nuclear weapons attack or explosion.

Cartoon illustrations of ways to dispel radioactive contamination were also provided, such as using water to wash off shoes and using cotton buds to clean ears, as well as a picture of a vomiting child to show how medical help can be sought to speed the expulsion of radiation through stomach pumping and induced urination.

(Writing by Josh Smith; Editing by Nick Macfie)

Turkey’s Erdogan calls Syria’s Assad a terrorist, says impossible to continue with him

Turkey's President Tayyip Erdogan speaks during a news conference with Tunisia's President Beji Caid Essebsi (not pictured) at Carthage Palace in Tunis, Tunisia, December 27, 2017.

TUNIS (Reuters) – Turkish President Tayyip Erdogan on Wednesday called Syrian President Bashar al-Assad a terrorist and said it was impossible for Syrian peace efforts to continue with him.

Syria’s foreign ministry quickly responded by accusing Erdogan of himself supporting terrorist groups fighting Assad in Syria’s civil war.

Turkey has demanded the removal of Assad from power and backed rebels fighting to overthrow him, but it has toned down its demands since it started working with Assad’s allies Russia and Iran for a political resolution.

“Assad is definitely a terrorist who has carried out state terrorism,” Erdogan told a televised news conference with his Tunisian counterpart Beji Caid Essebsi in Tunis.

“It is impossible to continue with Assad. How can we embrace the future with a Syrian president who has killed close to a million of his citizens?” he said, in some of his harshest comments for weeks.

Though Turkey has long demanded Assad’s removal, it is now more focused in Syria on the threat from Islamist militants and Kurdish fighters it considers allies of the Kurdistan Workers’ Party (PKK), who it says have formed a “terror corridor” on its southern border.

Turkey says the Syrian Kurdish YPG militia, which Ankara views as an extension of the outlawed PKK which has fought an insurgency in southeast Turkey since the 1980s, cannot be invited to Syrian peace talks in the Kazakh capital Astana.

The YPG is the main element in a force that Washington has assisted with training, weapons, air support and help from ground advisers in the battle against Islamic State. That U.S. support has angered Ankara, a NATO ally of Washington.

Despite its differences with Russia and Iran, Turkey has worked with the two powers in the search for a political solution in Syria.

Ankara, Moscow and Tehran also brokered a deal to set up and monitor a “de-escalation zone” to reduce fighting between insurgents and Syrian government forces in Syria’s rebel-held northwestern Idlib province.

“We can’t say (Assad) will handle this. It is impossible for Turkey to accept this. Northern Syria has been handed over as a terror corridor. There is no peace in Syria and this peace won’t come with Assad,” Erdogan said.

Syria’s state news agency SANA quoted a foreign ministry source as saying Erdogan “continues to misdirect Turkish public opinion with his usual froth in an attempt to absolve himself of the crimes which he has committed against the Syrian people through advancing support to the various terrorist groups in Syria”.

(Reporting by Tuvan Gumrukcu and Ece Toksabay in Ankara; Editing by Dominic Evans and Matthew Mpoke Bigg)

Venezuela citizens scramble to survive as merchants demand dollars

Bolivar notes a seen hanging in a tree at a street in Maracaibo, Venezuela November 11, 2017.

By Eyanir Chinea and Maria Ramirez

CARACAS/CIUDAD GUAYANA, Venezuela (Reuters) – There was no way Jose Ramon Garcia, a food transporter in Venezuela, could afford new tires for his van at $350 each.

Whether he opted to pay in U.S. currency or in the devalued local bolivar currency at the equivalent black market price, Garcia would have had to save up for years.

Though used to expensive repairs, this one was too much and put him out of business. “Repairs cost an arm and a leg in Venezuela,” said the now-unemployed 42-year-old Garcia, who has a wife and two children to support in the southern city of Guayana.

“There’s no point keeping bolivars.”

For a decade and a half, strict exchange controls have severely limited access to dollars. A black market in hard currency has spread in response, and as once-sky-high oil revenue runs dry, Venezuela’s economy is in free-fall.

The practice adopted by gourmet and design stores in Caracas over the last couple of years to charge in dollars to a select group of expatriates or Venezuelans with access to greenbacks is fast spreading.

Food sellers, dental and medical clinics, and others are starting to charge in dollars or their black market equivalent – putting many basic goods and services out of reach for a large number of Venezuelans.

According to the opposition-led National Assembly, November’s rise in prices topped academics’ traditional benchmark for hyperinflation of more than 50 percent a month – and could end the year at 2,000 percent. The government has not published inflation data for more than a year.

“I can’t think in bolivars anymore, because you have to give a different price every hour,” said Yoselin Aguirre, 27, who makes and sells jewelry in the Paraguana peninsula and has recently pegged prices to the dollar. “To survive, you have to dollarize.”

The socialist government of the late president Hugo Chavez in 2003 brought in the strict controls in order to curb capital flight, as the wealthy sought to move money out of Venezuela after a coup attempt and major oil strike the previous year.

Oil revenue was initially able to bolster artificial exchange rates, though the black market grew and now is becoming unmanageable for the government.

TRIM THE TREE WITH BOLIVARS

President Nicolas Maduro has maintained his predecessor’s policies on capital controls. Yet, the spread between the strongest official rate, of some 10 bolivars per dollar, and the black market rate, of around 110,000 per dollar, is now huge.

While sellers see a shift to hard currency as necessary, buyers sometimes blame them for speculating.

Rafael Vetencourt, 55, a steel worker in Ciudad Guayana, needed a prostate operation priced at $250.

“We don’t earn in dollars. It’s abusive to charge in dollars!” said Vetencourt, who had to decimate his savings to pay for the surgery.

In just one year, Venezuela’s currency has weakened 97.5 per cent against the greenback, meaning $1,000 of local currency purchased then would be worth just $25 now.

Maduro blames black market rate-publishing websites such as DolarToday for inflating the numbers, part of an “economic war” he says is designed by the opposition and Washington to topple him.

On Venezuela’s borders with Brazil and Colombia, the prices of imported oil, eggs and wheat flour vary daily in line with the black market price for bolivars.

In an upscale Caracas market, cheese-filled arepas, the traditional breakfast made with corn flour, increased 65 percent in price in just two weeks, according to tracking by Reuters reporters. In the same period, a kilogram of ham jumped a whopping 171 percent.

The runaway prices have dampened Christmas celebrations, which this season were characterized by shortages of pine trees and toys, as well as meat, chicken and cornmeal for the preparation of typical dishes.

In one grim festive joke, a Christmas tree in Maracaibo, the country’s oil capital and second city, was decorated with virtually worthless low-denomination bolivar bills.

Most Venezuelans, earning just $5 a month at the black market rate, are nowhere near being able to save hard currency.

“How do I do it? I earn in bolivars and have no way to buy foreign currency,” said Cristina Centeno, a 31-year-old teacher who, like many, was seeking remote work online before Christmas in order to bring in some hard currency.

(Additional reporting by Andreina Aponte and Leon Wietfeld in Caracas, Mircely Guanipa in Maracay, Anggy Polanco in San Cristobal, Lenin Danieri in Maracaibo; Writing by Girish Gupta; Editing by Leslie Adler)

‘God bless you’, Netanyahu tells Guatemalan president over Jerusalem embassy move

Guatemalan President Jimmy Morales and Israeli Prime Minister Benjamin Netanyahu shake hands as they deliver statements to the media during their meeting in Jerusalem November 29, 2016.

JERUSALEM/GUATEMALA CITY (Reuters) – Israeli Prime Minister Benjamin Netanyahu thanked Guatemala with a “God bless you” on Monday for deciding to move its embassy to Jerusalem, while the Palestinians said the Central American country was “on the wrong side of history”.

In an official Facebook post on Sunday, Guatemalan President Jimmy Morales said he had chosen to relocate the embassy from Tel Aviv – siding with the United States in a dispute over Jerusalem’s status – after talking to Netanyahu. [L1N1OO0F7]

U.S. President Donald Trump recognized Jerusalem as the capital of Israel on Dec. 6, reversing decades of U.S. policy and upsetting the Arab world and Western allies.

On Thursday, 128 countries rebuked Trump by backing a non-binding U.N. General Assembly resolution calling on the United States to drop its recognition of Jerusalem.

“God bless you, my friend, President Jimmy Morales, God bless both our countries, Israel and Guatemala,” Netanyahu said, switching to English, in remarks to a weekly meeting of his Likud party faction in parliament.

Guatemala and neighboring Honduras were two of only a handful of countries to join Israel and the United States, which has pledged to move its embassy to Jerusalem, in voting against the U.N. resolution.

The United States is an important source of assistance to Guatemala and Honduras, and Trump had threatened to cut off financial aid to countries that supported the U.N. resolution.

The status of Jerusalem is one of the thorniest obstacles to an Israeli-Palestinian peace deal. Palestinians want East Jerusalem as the capital of a state they want to establish in the occupied West Bank and in the Gaza Strip.

The international community does not recognize Israeli sovereignty over the entire city, home to sites holy to the Muslim, Jewish and Christian religions.

The official Palestinian news agency WAFA quoted Foreign Minister Riyad Al-Maliki as saying that Morales was “dragging his country to the wrong side of history by committing a flagrant violation of international law”.

Prior to 1980, Guatemala – along with Bolivia, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Haiti, The Netherlands, Panama, Venezuela and Uruguay – maintained an embassy in Jerusalem.

Israel’s passage in June 1980 of a law proclaiming Jerusalem its “indivisible and eternal capital” led to a U.N. Security Council resolution calling upon those countries to move their embassies to Tel Aviv, prompting their transfer.

Israel’s ambassador to Guatemala, Matty Cohen, said on Army Radio that no date had been set for the embassy move, “but it will happen after” the United States relocates its own embassy to Jerusalem. U.S. officials have said that move could take at least two years.

(Reporting by Jeffrey Heller in Jerusalem and Bill Barreto in Guatemala City; Editing by Hugh Lawson and Edmund Blair)