Trump says U.S. Secretary of State Tillerson not leaving post

Trump says U.S. Secretary of State Tillerson not leaving post

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson is not leaving, President Donald Trump tweeted on Friday, after U.S. officials on Thursday said the White House had a plan for CIA Director Mike Pompeo to replace him.

“The media has been speculating that I fired Rex Tillerson or that he would be leaving soon – FAKE NEWS! He’s not leaving and while we disagree on certain subjects, (I call the final shots) we work well together and America is highly respected again!” Trump said on Twitter.

The tweet linked to a picture of Tillerson being sworn in as secretary of state with Trump and Vice President Mike Pence looking on.

Senior administration officials on Thursday said that Trump was considering a plan to oust Tillerson, whose relationship with the president has been strained by the top U.S. diplomat’s softer line on North Korea and other policy differences, as well as by reports in October that he called the president a “moron.”

Tillerson has not directly addressed whether he made the comment, though his spokeswoman denied it. The New York Times on Thursday first reported the White House plan to replace him.

Asked to comment on some White House officials wanting him to resign, how the matter was being handled and what his plans were, Tillerson replied: “It’s laughable. It’s laughable.”

His comments came as he posed for pictures with Libyan Prime Minister Fayez al-Sarraj of the United Nations-backed government in Tripoli.

Tillerson visits Europe next week to attend NATO meetings in Brussels on Tuesday and Wednesday, an Organization for Security and Cooperation in Europe (OSCE) meeting in Vienna on Thursday and talks with French officials in Paris on Friday.

He is tentatively scheduled to meet Russian Foreign Minister Sergei Lavrov in Vienna on Thursday on the sidelines of the OSCE meeting, a senior State Department official told reporters.

(Reporting by Arshad Mohammed; Editing by Jonathan Oatis)

Honduras awaits presidential vote count as army enforces curfew

Honduras awaits presidential vote count as army enforces curfew

TEGUCIGALPA (Reuters) – Honduras enforced a curfew on Saturday while still mired in chaos over a contested presidential election that has triggered looting and protests in which at least one person has died.

The government’s move on Friday evening to enact the nationwide curfew for 10 days and expand powers for the army and police was criticized by opposition leaders as a move to stifle protests over a presidential vote count that stalled for a fifth day without leaving a clear winner.

President Juan Orlando Hernandez has clawed back a thin lead over his challenger, TV-host Salvador Nasralla, but thousands of disputed votes could still swing the outcome.

Since last Sunday’s election, at least one protester has died, over 20 people were injured and more than 100 others were arrested for looting after opposition leaders accused the government of trying to steal the election by manipulating the vote count.

“The suspension of constitutional guarantees was approved so that the armed forces and the national police can contain this wave of violence that has engulfed the country,” said Ebal Diaz, member of the council of ministers, on Friday.

Under the decree, all local authorities must submit to the authority of the army and national police, which are authorized to break up blockades of roads, bridges and public buildings.

A 10-day dusk-to-dawn curfew started Friday night.

International concern has grown about the electoral crisis in the poor Central American country, which struggles with violent drug gangs and one of the world’s highest murder rates.

In the widely criticized vote count, Nasralla’s early lead on Monday was later reversed in favor of President Hernandez, leading Nasralla to call for protests.

The count stalled on Friday evening when the electoral tribunal said it would hand-count the remaining ballot boxes that had irregularities, comprising nearly 6 percent of the total vote.

The electoral tribunal said it was set to resume the vote count at 9 a.m. local time on Saturday, but Nasralla’s center-left alliance has refused to recognize the tribunal’s authority unless it recounts three regions with alleged vote irregularities.

The 64-year-old Nasralla is one of Honduras’ best-known faces and backed by former President Manuel Zelaya, a leftist ousted in a coup in 2009. He said on Friday that government infiltrators had started the looting and violence to justify a military curfew.

Hernandez, speaking to reporters after the curfew went into effect, said the government put the measure in place at the request of concerned citizen groups.

“As far as the curfew, I want to clarify that various sectors requested it…in order to guarantee the safety of the people,” he said.

(Additional reporting by Lizbeth Diaz, Ana Isabel Martinez, Adriana Barrera and Daina Beth Solomon; Writing by Dave Graham and Frank Jack Daniel; Editing by Michael Perry)

U.S. prosecutors seek arrest of illegal immigrant acquitted of Kate Steinle murder

U.S. prosecutors seek arrest of illegal immigrant acquitted of Kate Steinle murder

By Dan Whitcomb

LOS ANGELES (Reuters) – U.S. prosecutors on Friday sought to arrest an illegal immigrant acquitted of murdering a San Francisco woman in a case raised during the 2016 presidential campaign, saying his conviction on a lesser weapons charge violated the terms of his supervised release.

A San Francisco Superior Court jury on Thursday found Jose Ines Garcia Zarate, 45, not guilty of murder and manslaughter charges in connection with the July 1, 2015, death of Kate Steinle. Jurors found him guilty of being a felon in possession of a firearm.

President Donald Trump, who had used the Steinle case as a rallying cry against the pro-immigration policies of so-called sanctuary cities during his successful run for the presidency, called the verdict “disgraceful” on Twitter.

Sanctuary cities such as San Francisco limit their cooperation with federal immigration authorities.

Before the shooting, Garcia Zarate, who had been deported to Mexico five times, had been released from a San Francisco jail despite a request by immigration authorities that he be detained and turned over to them.

In seeking an arrest warrant on Friday, federal prosecutors said that Garcia Zarate’s conviction on the weapons charge violated the conditions of his supervised release from federal custody in March 2015 after nearly four years in prison, just months before Steinle’s killing.

The arrest warrant was dated 2015, but was amended and unsealed following the verdicts.

Garcia Zarate also faces sentencing in San Francisco Superior Court on the weapons charge, and it was not clear which jurisdiction would take the lead.

The jurors who acquitted Garcia Zarate, who previously was known as Juan Francisco Lopez Sanchez, did not speak to reporters following their verdict.

They apparently agreed with defense attorneys who said during the trial that Garcia Zarate found the gun and it accidentally discharged, with the bullet ricocheting off the ground at a pier frequented by tourists before striking Steinle.

Prosecutors had argued Garcia Zarate intentionally fired the gun.

In June, the U.S. House of Representatives passed “Kate’s Law,” which would increase penalties for illegal immigrants who return to the United States. The bill has not passed the U.S. Senate.

Since taking office as president in January, Trump and his attorney general, Jeff Sessions, have sought to cut federal funding for sanctuary cities but have suffered setbacks in court.

In a statement after the verdict, Sessions said San Francisco officials’ “decision to protect criminal aliens led to the preventable and heartbreaking death of Kate Steinle.”

(Reporting by Dan Whitcomb; Editing by Jonathan Oatis)

Turkey’s Erdogan says U.S. courts cannot put Turkey on trial

Turkey's Erdogan says U.S. courts cannot put Turkey on trial

By Tuvan Gumrukcu

ANKARA (Reuters) – Courts in the United States cannot put Turkey on trial, Turkish President Tayyip Erdogan said on Saturday, in reference to the case of a Turkish bank executive who has been charged with evading U.S. sanctions on Iran.

Already strained ties between NATO allies Ankara and Washington have deteriorated in recent weeks as Turkish-Iranian gold trader Reza Zarrab, who is cooperating with U.S. prosecutors, detailed in court a scheme to evade U.S. sanctions.

Over three days of testimony, Zarrab has implicated top Turkish politicians, including Erdogan. Zarrab said on Thursday that Erdogan personally authorized two Turkish banks to join the scheme when he was prime minister.

Ankara has cast the testimony as an attempt to undermine Turkey and its economy, and has previously said it was a “clear plot” by the network of U.S.-based Fethullah Gulen, who it alleges engineered last year’s coup attempt.

Reuters was not immediately able to reach representatives for the ministers implicated by Zarrab in the trial.

Turkey has repeatedly requested Gulen’s extradition, but U.S. officials have said the courts require sufficient evidence before they can extradite the elderly cleric, who has denied any involvement in the coup.

Erdogan, who has governed Turkey for almost 15 years, told members of his ruling AK Party in the northeastern province of Kars on Saturday that U.S. courts “can never try my country”.

Although he has not yet responded to the courtroom claims, he has dismissed the case as a politically motivated attempt to bring down the Turkish government and on Friday the state-run Anadolu news agency said Turkish prosecutors are set to seize the assets of Zarrab and his acquaintances.

Turkey has stepped up its pressure on the U.S. and on Saturday Anadolu quoted Foreign Minister Mevlut Cavusoglu as saying that Gulen’s followers had infiltrated the U.S. judiciary, Congress, and other state institutions.

The United States says its judiciary is independent of any political or other interference.

CRACKDOWN

Some 150,000 people have been sacked or suspended from their jobs over alleged links to Gulen since the attempted coup, while close to 50,000 people from the military, public and private sector have been jailed.

And in a further blow to Turkish-U.S. ties, Turkish authorities on Friday issued an arrest warrant for former U.S. Central Intelligence Agency (CIA) officer Graham Fuller over suspected links to the abortive putsch.

Rights groups and Turkey’s Western allies have voiced concerns that Erdogan is using the crackdown to muzzle dissent, but the government says the purges are necessary due to the gravity of the threat it faces.

(Reporting by Tuvan Gumrukcu; Editing by Alexander Smith)

Flynn pleads guilty to lying on Russia, cooperates with U.S. probe

Flynn pleads guilty to lying on Russia, cooperates with U.S. probe

By Sarah N. Lynch

WASHINGTON (Reuters) – Former national security adviser Michael Flynn pleaded guilty on Friday to lying to the FBI about his contacts with Russia, and he agreed to cooperate with prosecutors delving into the actions of President Donald Trump’s inner circle before he took office.

The dramatic turn of events also raised new questions about whether Trump’s son-in-law, Jared Kushner, had a role in those Russia contacts.

Flynn was the first member of Trump’s administration to plead guilty to a crime uncovered by special counsel Robert Mueller’s wide-ranging investigation into Russian attempts to influence the 2016 U.S. election and potential collusion by Trump aides.

Under a plea bargain deal, Flynn admitted in a Washington court that he lied when asked by FBI investigators about his conversations last December with Russia’s then-ambassador, Sergei Kislyak, just weeks before Trump took office.

Prosecutors said the two men discussed U.S. sanctions against Russia and that Flynn also asked Kislyak to help delay a U.N. vote seen as damaging to Israel. On both occasions, he appeared to be undermining the policies of outgoing President Barack Obama.

They also said a “very senior member” of Trump’s transition team had told Flynn to contact Russia and other foreign governments to try to influence them ahead of the U.N. vote.

Sources told Reuters that the “very senior” official was Kushner, a key member of Trump’s transition team and now the president’s senior adviser.

Kushner’s lawyer, Abbe Lowell, did not respond to multiple requests for comment. He has previously said Kushner has voluntarily cooperated with all relevant inquiries and would continue to do so.

Flynn’s decision to cooperate with Mueller’s team marked a major escalation in a probe that has dogged the president since he took office in January.

There was nothing in the court hearing that pointed to any evidence against Trump, and the White House said Flynn’s guilty plea implicated him alone.

“Nothing about the guilty plea or the charge implicates anyone other than Mr. Flynn,” said Ty Cobb, a White House attorney.

Flynn, a retired army lieutenant general, only served as Trump’s national security adviser for 24 days. He was forced to resign after he was found to have misled Vice President Mike Pence about his discussions with Kislyak.

But Flynn had been an enthusiastic supporter of Trump’s election campaign and the president continued to praise him even after he left the administration, saying Flynn had been treated “very, very unfairly” by the news media.

A small group of protesters yelled “Lock him up!” as Flynn left the courthouse on Friday, echoing the “Lock her up!” chant that Flynn himself led against Trump’s Democratic rival, Hillary Clinton, in vitriolic appearances on the campaign trail.

SANCTIONS

Mueller’s team is also looking at whether members of Trump’s campaign may have sought to ease sanctions on Russia in return for financial gain or because Russian officials held some leverage over them, people familiar with the probe say.

Prosecutors said Flynn and Kislyak last December discussed economic sanctions that Obama’s administration had just imposed on Moscow for allegedly interfering in the election.

Flynn asked Kislyak to refrain from escalating a diplomatic dispute with Washington over the sanctions, and later falsely told FBI officials that he did not make that request, court documents showed.

Prosecutors said Flynn had earlier consulted with a senior member of Trump’s presidential transition team about what to communicate to the Russian ambassador.

“Flynn called the Russian ambassador and requested that Russia not escalate the situation and only respond to the U.S. sanctions in a reciprocal manner,” the prosecutors said in court documents, adding that Flynn then called the Trump official again to recount the conversation with Kislyak.

They did not name the senior official in the Trump team but U.S. media reports identified former adviser K.T. McFarland as the person. Reuters was unable to verify the reports.

On Dec. 28, 2016, the day before prosecutors say the call between the Trump aides took place, Trump had publicly played down the need to sanction Russia for allegedly hacking U.S. Democratic operatives.

“I think we ought to get on with our lives. I think that computers have complicated lives very greatly,” Trump told reporters at his Mar-a-Lago Florida resort.

TESTIMONY

Ryan Goodman, a professor at New York University Law School, said Flynn’s plea deal shows Mueller is scrutinizing the truthfulness of testimony given to his investigators. Kushner is potentially liable for making false statements if his testimony is contradicted by Flynn, Goodman said.

Earlier on Friday, ABC News cited a Flynn confidant as saying Flynn was ready to testify that Trump directed him to make contact with Russians before he became president, initially as a way to work together to fight the Islamic State group in Syria.

Reuters could not immediately verify the ABC News report.

U.S. stocks, the dollar and Treasury yields fell sharply after the ABC report, although they partially rebounded on optimism that a Republican bill to cut taxes will be approved in the U.S. Senate.

If Trump directed Flynn to contact Russian officials, that might not necessarily amount to a crime. It would be a crime if it were proven that Trump directed Flynn to lie to the FBI.

Moscow has denied what U.S. intelligence agencies say was meddling in the election campaign to try to sway the vote in Trump’s favor. Trump has called Mueller’s probe a witch hunt.

In May, the president fired FBI Director James Comey, who later accused Trump of trying to hinder his investigation into the Russia allegations. Comey also said he believed Trump had asked him to drop the FBI’s probe into Flynn.

Comey on Friday tweeted a cryptic message about justice.

“But let justice roll down like waters and righteousness like an ever-flowing stream, ‘Amos 5:24’,” he wrote, quoting the Biblical book of Amos.

Paul Manafort, who ran Trump’s presidential campaign for several months last year, was charged in October with conspiring to launder money, conspiracy against the United States and failing to register as a foreign agent of Ukraine’s former pro-Russian government.

Manafort, who did not join Trump’s administration, and a business associate who was charged with him both pleaded not guilty.

(Additional reporting by Susan Heavey, Tim Ahmann, John Walcott, Mark Hosenball and Nathan Layne in Washington and Jan Wolfe in New York; Writing by Alistair Bell and Yara Bayoumy; Editing by Frances Kerry and Mary Milliken)

Syrian government negotiator quits Geneva talks, says may not return

Syrian government negotiator quits Geneva talks, says may not return

By Stephanie Nebehay and Lisa Barrington

GENEVA/BEIRUT (Reuters) – Syria’s government delegation quit U.N.-led peace talks in Geneva on Friday and said it would not return next week unless the opposition withdrew a statement demanding President Bashar al-Assad play no role in any interim post-war government.

“For us (this) round is over, as a government delegation. He as mediator can announce his own opinion,” government chief negotiator Bashar al-Ja’afari said after a morning of talks, referring to U.N. mediator Staffan de Mistura.

“As long as the other side sticks to the language of Riyadh 2 … there will be no progress,” Ja’afari said.

He was referring to a position adopted by Syrian opposition delegates at a meeting in Riyadh last week, in which they stuck to their demand that Assad be excluded from any transitional government.

Ja’afari went further in a televised interview with al-Mayadeen TV: “We cannot engage in serious discussion in Geneva while the Riyadh statement is not withdrawn.”

De Mistura put a brave face on the impasse, saying in a statement that he had asked the delegations to engage in “talks next week” and give their reactions to 12 political principles.

Previously there had been some speculation the opposition could soften its stance ahead of this week’s Geneva negotiations, in response to government advances on the battlefield.

The Syrian civil war, now in its seventh year, has killed hundreds of thousands of people and driven 11 million from their homes. So far all previous rounds of peace talks have failed to make progress, faltering over the opposition’s demand Assad leave power and his refusal to go.

Pressed whether the government delegation would return to Geneva next week, Ja’afari replied: “Damascus will decide.”

Ja’afari said the statement insisting Assad leave power that was adopted by the opposition in Riyadh ahead of this week’s peace talks was a “mine” on the road to Geneva, and the opposition had purposefully undermined the negotiations.

“The language with which the statement was drafted was seen by us, the Syrian government, as well as by too many capitals, as a step back rather than progress forward, because it imposed a kind of precondition,” he said.

“The language is provocative, irresponsible,” he said.

The opposition, which held brief talks later with U.N. officials, rejected the charge that it was seeking to undermine the talks, and said it sought a “political solution”.

“We have come to this round with no preconditions,” opposition spokesman Yahya al-Aridi told reporters.

“Now, not coming back is a precondition in itself. It’s an expression or a reflection of a responsibility toward people who have been suffering for seven years now,” Aridi said.

Nasr Hariri, the opposition delegation chief, said earlier on Friday that his side had come to Geneva for serious, direct negotiations with Assad’s government. So far, government and opposition delegations have not negotiated face-to-face in any Syrian peace talks but have been kept in separate rooms.

“We call on the international community to put pressure on the regime to engage with this process,” Hariri said in a statement.

De Mistura said on Thursday the talks would run until Dec. 15, but the government delegation might return to Damascus to “refresh and consult” before a resumption probably on Tuesday.

(Additional reporting by Issam Abdallah, Tom Miles and Cecile Mantovani in Geneva; Editing by Mark Heinrich)

Ex-U.S. NSA employee pleads guilty to taking classified documents

Ex-U.S. NSA employee pleads guilty to taking classified documents

By Dustin Volz and John Walcott

WASHINGTON (Reuters) – A former U.S. National Security Agency employee pleaded guilty on Friday to illegally taking classified information outside the spy agency that an intelligence official said was later stolen from his home computer by Russian hackers.

Nghia Hoang Pho, who worked in the NSA’s elite hacking unit, retained U.S. government documents containing top-secret national defense information between 2010 and March 2015, the Justice Department said.

Pho, a 67-year-old U.S. citizen born in Vietnam, faces up to 10 years in prison. He is not being held by authorities as he awaits his sentencing, which is scheduled for April 6, 2018, in U.S. District Court in Baltimore.

A U.S. intelligence official, speaking on the condition of anonymity, said Pho was the same NSA employee who had been identified in media reports for using Kaspersky Lab antivirus software on his home computer. Some U.S. officials have said software from the Moscow-based company allowed Russian intelligence agencies to pilfer sensitive secrets from the United States through Pho’s computer.

The Department of Homeland Security in September ordered federal agencies to start removing Kaspersky software from their computers. U.S. officials have said the firm either has ties to Russian intelligence or is forced to share information held on its servers with Russian officials. Kaspersky has repeatedly denied the allegations but acknowledged its software in 2014 took NSA code for a hacking tool from a customer’s computer before its chief executive, Eugene Kaspersky, ordered the code destroyed.

The court documents do not appear to make mention of Russian intelligence agencies or Kaspersky Lab. The connection was first reported by the New York Times.

The intelligence official declined to comment on whether Pho knew the software he was using at home was vulnerable.

Pho is at least the third NSA employee or contractor to be charged within the past two years on counts of improperly taking classified information from the agency, breaches that have prompted criticism of the secretive NSA.

A federal grand jury indicted former NSA contractor Harold Martin in February on charges alleging he spent up to 20 years stealing up to 50 terabytes of highly sensitive government material from the U.S. intelligence community, which were hoarded at his home.

In June another NSA contractor, Reality Winner, 25, was charged with leaking classified material about Russian interference in the 2016 U.S. presidential election to a news outlet. She pleaded not guilty.

And in 2013, former contractor Edward Snowden pilfered secrets about NSA’s surveillance programs and shared them with journalists. He now lives in Moscow.

Pho, of Ellicott City, Maryland, took both physical and digital documents that contained “highly classified information of the United States,” including information labeled as “top secret,” according to court records unsealed Friday. He was aware the documents contained sensitive information and kept them at his residence in Maryland, the records said.

Asked for comment, Pho’s attorney, Robert Bonsib, said, “Any conversations regarding this case will be made in the courtroom during the sentencing.” He declined to comment further.

Officials at the NSA and other U.S. intelligence agencies did not immediately respond to requests for comment.

The NSA, whose main mission is gathering and analyzing foreign communications for potential security threats, is based at Fort Meade, Maryland.

(Reporting by Dustin Volz and John Walcott, additional reporting by Mark Hosenball; Editing by Jonathan Oatis and Tom Brown)

Senate approves major tax cuts in victory for Trump

Senate approves major tax cuts in victory for Trump

By David Morgan and Amanda Becker

WASHINGTON (Reuters) – The U.S. Senate narrowly approved a tax overhaul, moving Republicans and President Donald Trump a big step closer to their goal of slashing taxes for businesses and the rich while offering everyday Americans a mixed bag of changes.

In what would be the largest change to U.S. tax laws since the 1980s, Republicans want to add $1.4 trillion over 10 years to the $20 trillion national debt to finance changes that they say would further boost an already growing economy.

“We are one step closer to delivering MASSIVE tax cuts for working families across America,” Trump said in an early-morning tweet.

U.S. stock markets have rallied for months in the hope that Washington would provide significant tax cuts for corporations.

Celebrating their Senate victory, Republican leaders predicted the tax cuts would encourage U.S. companies to invest more and boost economic growth.

“We have an opportunity now to make America more competitive, to keep jobs from being shipped offshore and to provide substantial relief to the middle class,” said Mitch McConnell, the Republican leader in the Senate.

The Senate approved their bill in a 51-49 vote with Democrats complaining that last-minute amendments to win over skeptical Republicans were poorly drafted and vulnerable to being gamed later by lawyers and accountants in the tax avoidance industry.

“The Republicans have managed to take a bad bill and make it worse,” said Senate Democratic leader Chuck Schumer. “Under the cover of darkness and with the aid of haste, a flurry of last-minute changes will stuff even more money into the pockets of the wealthy and the biggest corporations.”

No Democrats voted for the bill, but they were unable to block it because Republicans hold a 52-48 Senate majority.

Talks will begin, likely next week, between the Senate and the House of Representatives, which has already approved its own tax bill.

Trump wants that to happen before the end of the year, allowing him and his Republicans to score their first major legislative achievement of 2017, despite controlling the White House, the Senate and the House since he took office in January.

Republicans failed in their efforts to repeal the Obamacare healthcare law over the summer and Trump’s presidency has been hit by White House in-fighting and by a federal investigation into possible collusion last year between his election campaign team and Russian officials.

The tax overhaul is seen by Trump and Republicans as crucial to their prospects at mid-term elections in November 2018, when they will have to defend their majorities in Congress.

In a legislative battle that moved so fast a final draft of the bill was unavailable to the public until just hours before the vote, Democrats slammed the proposed tax cuts as a give-away to businesses and the rich financed with billions of dollars in taxpayer debt.

The framework for both the Senate and House bills was developed in secret over a few months by a half-dozen Republican congressional leaders and Trump advisers, with little input from the party’s rank-and-file and none from Democrats.

Six Republican senators, who wanted and got last-minute amendments and whose votes had been in doubt, said on Friday they would back the bill and did so.

Senator Bob Corker, one of few remaining Republican fiscal hawks who pledged early on to oppose any bill that expanded the federal deficit, stood out as the lone Republican dissenter.

“I am not able to cast aside my fiscal concerns and vote for legislation that … could deepen the debt burden on future generations,” said Corker, who is not running for re-election.

KEY CHANGES

Numerous last-minute changes were made to the bill on Friday and in the early morning hours of Saturday.

One was to make state and local property tax deductible up to $10,000, mirroring the House bill. The Senate previously had proposed entirely ending state and local tax deductibility.

In another change, the alternative minimum tax (AMT), both for individuals and corporations, would not be repealed in full. Instead, the individual AMT would be adjusted and the corporate AMT would be maintained as is, lobbyists said.

Another change would put a five-year limit on letting businesses immediately write off the full value of new capital investments. That would phase out over four years starting in year six, rather than be permanent as initially proposed.

Under the bill, the corporate tax rate would be permanently slashed to 20 percent from 35 percent, while future foreign profits of U.S.-based firms would be largely exempted from tax — both changes pursued by corporate lobbyists for years.

On the individual side of the tax code, the top tax rate paid by the highest-income earners would be cut slightly.

The Tax Policy Center, a nonpartisan think tank, analyzed an earlier but broadly similar version of the bill passed by the Senate tax committee on Nov. 16 and found it would reduce taxes for all income groups in 2019 and 2025, with the largest average tax cuts going to the highest-income Americans.

Two Republican senators announced their support for the bill on Friday after winning more tax relief for non-corporate pass-through businesses. These include partnerships and other companies not organized as public corporations, ranging from mom-and-pop concerns to large financial and real estate groups.

The bill now features a 23 percent tax deduction for such business owners, up from the original 17.4 percent.

Democratic Senator Richard Blumenthal said Trump controls more than 500 pass-through companies that will directly benefit. “So the president may be celebrating, but most Americans will rue this day,” Blumenthal said.

The Senate bill would gut a section of Obamacare by repealing a fee paid by some Americans who do not buy health insurance, a step critics said would undermine the Obamacare system and raise insurance premiums for the sick and the old.

Senator Susan Collins, a moderate Republican, said she obtained commitments from Republican leaders that steps would be taken later in separate legislation to minimize the impact of the repeal of the “individual mandate” fee.

(Additional reporting by Susan Cornwell, Susan Heavey and Richard Cowan in Washington; Caroline Valetkevitch in New York; Editing by Kevin Drawbaugh, Kieran Murray and Alexander Smith)

Playing with fire: tens of thousands refuse to leave Bali volcano homes

Playing with fire: tens of thousands refuse to leave Bali volcano homes

By Kanupriya Kapoor

KARANGASEM, Indonesia (Reuters) – Tens of thousands of villagers on the Indonesian holiday island of Bali are refusing to evacuate a 10-km (six-mile) danger zone around an erupting volcano, putting their fate in the hands of the gods or simply staying put to protect homes and livestock.

The glowing, 3,000-metre Mount Agung, considered sacred by many on the Hindu-majority island, started spewing huge columns of ash at the weekend and there have been constant tremors and volcanic mud flows since.

Search and rescue teams making daily forays into the zone say some are refusing to leave their cattle unattended, while others have spiritual reasons.

“The government has been clear about evacuation orders, but some people are slow to act or want to stay,” said Gede Ardana, head of Bali’s search and rescue agency.

“We cannot force them – but we will be held responsible, so we need to convince them.”

For cattle farmer Ketut Suwarte, there was no question of staying put.

“There was thick ash falling around us and we could smell sulfur. We were scared and we decided to leave immediately,” said Suwarte, 47, now staying in an evacuation camp just outside the danger zone.

Suwarte’s father recalls the last time Mount Agung exploded, in 1963, killing about 1,000 people as pyroclastic flows – made up of hot gas and volcanic matter – raced down the mountain.

Sutopo Purwo Nugroho, of the disaster mitigation agency, said about 43,000 people had heeded advice to take shelter, but with an estimated population of 90,000 to 100,000 in the danger area, many had not.

Ika Wardani, 33, sleeps with her family at an evacuation center at night but during the day returns to her cattle farm about 10 km north of the volcano.

‘THEY ARE STUBBORN’

“During the day at least we can see the volcano. But we’re uncomfortable sleeping here at night because an earthquake or loud explosion would cause panic,” she said. “We would have to drive our motorbikes at night and the roads are narrow so it’s safer to spend the nights at the evacuation center.”

She says there are people only five km from the crater who have refused to evacuate.

“They are stubborn,” she said. “Some of them survived 1963 so they believe it’s all right now.”

The government has set up radio stations and chat groups on social media to warn people of the risks.

“Many people have made the decision to stay inside the exclusion zone, and that is clearly very dangerous,” said Sutopo Purwo Nugroho, a spokesman for the disaster management agency.

Others, including tourists, are taking unnecessary risks by trying to take selfies as close as possible, officials say. Last month, a Frenchman shared a video of himself at the crater’s edge on social media.

In September, when authorities first raised the warning alert to the highest level, an exclusion zone of up to 12 km was imposed, prompting nearly 150,000 to leave, but when no major eruption occurred, many returned and the warning status was lowered. When authorities again raised the warning level this week, many were reluctant to move again.

“If (Mount Agung) follows the most frequent trend, it is likely to continue increasing in explosivity – but at what rate and how large, nobody knows,” said Dr Carmen Solana, a volcanologist at the University of Portsmouth.

President Joko Widodo on Wednesday urged people to leave the exclusion zone before it’s too late.

“There must not be any victims,” he said.

(Additional reporting by Johannes P. Christo; Editing by Ed Davies and Nick Macfie)

Trump likely to recognize Jerusalem as Israel’s capital next week: official

Trump likely to recognize Jerusalem as Israel's capital next week: official

By Steve Holland and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump is likely to announce next week that the United States recognizes Jerusalem as Israel’s capital, a senior administration official said on Friday, a move that would upend decades of American policy and possibly inflame tensions in the Middle East.

Trump could make the controversial declaration in a speech on Wednesday though he is also expected to again delay his campaign promise to move the U.S. embassy to Jerusalem from Tel Aviv. The senior official and two other government sources said final decisions had not yet been made.

The Palestinians want Jerusalem as the capital of their future state, and the international community does not recognize Israel’s claim on all of the city, home to sites holy to the Jewish, Muslim and Christian religions.

Word of Trump’s planned announcement, which would deviate from previous U.S. presidents who have insisted the Jerusalem’s status must be decided in negotiations, drew criticism from the Palestinian Authority and was sure to anger the broader Arab world.

It could also unravel the U.S. administration’s fledgling diplomatic effort, led by Trump’s son-in-law and senior adviser Jared Kushner, to restart long-stalled Israeli-Palestinian peace talks and enlist the support of U.S. Arab allies.

Nabil Abu Rdainah, spokesman for Palestinian President Mahmoud Abbas, said U.S. recognition of Jerusalem as Israel’s capital would “destroy the peace process” and “destabilize the region.”

Such a move, however, could help satisfy the pro-Israel, right-wing base that helped Trump win the presidency and also please the Israeli government, a close U.S. ally.

The senior U.S. official, speaking on condition of anonymity, said details were still being finalized and could still change.

Another U.S. official said Trump appeared to be heading toward recognizing Israel’s claim to Jerusalem but that it was not a done deal.

“We’ve nothing to announce,” said a spokesperson with the White House National Security Council.

INTERNAL DELIBERATIONS

Trump’s impending decisions on Jerusalem, one of the most sensitive core issues of the Israeli-Palestinian conflict, follow intense internal deliberations in which the president has personally weighed in, one White House aide said.

Trump is likely to continue his predecessors’ practice of signing a six-month waiver overriding a 1995 law requiring that the U.S. embassy be moved from Tel Aviv to Jerusalem, two officials told Reuters on Thursday.

But seeking to temper his supporters’ concerns, another option under consideration is for Trump to order his aides to develop a longer-term plan for the embassy’s relocation to make clear his intent to do so eventually, the officials said.

It was unclear, however, whether any public recognition by Trump of Israel’s claim on Jerusalem would be formally enshrined in a presidential action or be more of a symbolic statement.

Trump pledged on the presidential campaign trail last year that he would move the embassy from Tel Aviv to Jerusalem.

But in June, Trump waived the requirement, saying he wanted to “maximize the chances” for a new U.S.-led push for what he has called the “ultimate deal” of Israeli-Palestinian peace. Those efforts have made little, if any, progress so far and many experts are skeptical of the prospects for success.

The status of Jerusalem is one of the major stumbling blocks in achieving peace between Israel and the Palestinians.

Israel captured Arab East Jerusalem during the 1967 Middle East war and later annexed it, a move not recognized internationally.

Arab governments and Western allies have long urged Trump not to proceed with the embassy relocation, which would reverse long-standing U.S. policy by granting de facto U.S. recognition of Israel’s claim to all of Jerusalem as its capital.

Visiting Washington this week, Jordan’s King Abdullah warned lawmakers that moving the U.S. embassy could be “exploited by terrorists to stoke anger, frustration and desperation,” according to the Jordanian state news agency Petra.

Some of Trump’s top aides have privately pushed for him to keep his campaign promise to satisfy a range of supporters, including evangelical Christians, while others have cautioned about the potential damage to U.S. relations with Muslim countries.

(Additional reporting by Arshad Mohammed in Washington, Dan Williams in Jerusalem and Nidal al-Mughrabi in Gaza; Writing by Matt Spetalnick; Editing by Chizu Nomiyama and Richard Chang)