Fed expected to increase rates, may signal fewer hikes ahead

FILE PHOTO: U.S. President Donald Trump looks on as Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve, speaks at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria/File Photo

By Ann Saphir and Howard Schneider

WASHINGTON (Reuters) – The U.S. Federal Reserve is expected to raise interest rates on Wednesday, but may cut the number of hikes it anticipates next year and signal an earlier end to its monetary tightening in the face of financial market volatility and rising recession fears.

The central bank is due to announce its decision at 2 p.m. EST (1900 GMT) after its final two-day policy meeting of the year. Fed Chairman Jerome Powell is scheduled to hold a press conference half an hour later.

Investors widely expect the Fed will lift borrowing costs by a quarter of a percentage point to a range of between 2.25 percent and 2.50 percent. It would be the fourth rate hike of the year and the ninth since the central bank began its current tightening cycle in December 2015.

A rate hike on Wednesday could draw the ire of the White House. President Donald Trump has repeatedly attacked the Fed for raising rates this year, saying it was undercutting his efforts to boost the economy. On Tuesday, Trump warned Fed policymakers not to “make yet another mistake.”

The Fed’s tightening is designed to reduce the monetary policy boost to a U.S. economy that is now growing much faster than central bank policymakers think it can sustain.

With the price of oil tumbling, economic growth in Europe and China slipping, and the fiscal stimulus from the Trump administration’s $1.5 trillion tax cut package expected to fade, Fed policymakers appear ready to back away from their prior view that the economy could weather three more rate hikes next year.

Fresh Fed economic forecasts to be released along with the policy statement may suggest that two rate hikes is more likely, economists say. Traders of interest rate futures do not even think the Fed will manage one hike.

“You are at an inflection point,” said Carl Tannenbaum, chief economist at Northern Trust. “You are most likely seeing growth slowing and you don’t know how much growth and what kind of growth is left over after the fiscal stimulus wears off. And that’s why they don’t know if they need zero, one, or more rate hikes.”

U.S. stocks were broadly higher Wednesday morning on investor optimism the Fed would signal it was near the end of its tightening cycle. The S&P 500 index & SPX has tumbled more than 12 percent since late September and, barring a turnaround, is on pace for its poorest December performance since 1931.

With borrowing costs after Wednesday’s expected rate hike close to, if not in, the broad range that Fed officials have identified as “neutral” for a healthy economy, policymakers are also likely to emphasize that future rate-setting decisions will hinge on new economic data.

That may be particularly important as data pulls the central bank in different directions, with a strong labor market and robust output suggesting the need for higher rates, and a weaker global economy and U.S. bond yields suggesting not.

The divergence between the U.S. economy and the rest of the world was cast into stark relief after FedEx Corp slashed its profit outlook on Tuesday. FedEx, seen as a bellwether for global trade, flagged a litany of issues including a Brexit-led slowdown in the United Kingdom, a contraction in the German economy and slowing China demand due to an ongoing trade spat with the United States.

FORWARD GUIDANCE

Economists say the Fed will probably modify or remove from its policy statement a reference to the likelihood that “further gradual increases” in its key overnight lending rate will be needed.

Doing so would mark one more step in the Fed’s march away from its reliance on forward guidance to shape market expectations in the wake of the 2007-2009 financial crisis and recession.

It could also help the central bank guard against criticism, whether from Trump or others, by allowing Powell to point to the economic realities on the ground as forcing his hand on any future rate hikes.

“They want to get to the place where they can say all decisions are data-dependent,” said Vincent Reinhart, chief economist at Standish Mellon Asset Management.

(Editing by Paul Simao)

Los Angeles bishop resigns over sex abuse as crisis spreads

FILE PHOTO: Protesters hold signs outside the venue of the United States Conference of Catholic Bishops (USCCB) general assembly in Baltimore, Maryland, U.S., November 12, 2018. REUTERS/Kevin Lamarque/File Photo

By Philip Pullella

VATICAN CITY (Reuters) – Pope Francis accepted the resignation of a bishop in Los Angeles accused of sexually abusing a minor, the Vatican said on Wednesday, in the latest case of clergy misconduct to shake the U.S. Catholic Church.

A brief Vatican statement said Alexander Salazar, 69, an assistant bishop in Los Angeles, was stepping down. It also distributed a letter on the Salazar case written by the current Archbishop of Los Angeles, Jose Gomez.

The U.S. Catholic Church is still reeling from a U.S. grand jury report that found that 301 priests in the state of Pennsylvania had sexually abused minors over a 70-year period.

There will be a major meeting at the Vatican in February on the global sex abuse crisis.

Gomez’s letter to the faithful said that in 2005, a year after Salazar became bishop, the archdiocese had become aware of an accusation that Salazar had engaged in “misconduct with a minor” when he was a priest in a parish in the 1990s.

Police investigated but the Los Angeles district attorney did not prosecute, Gomez’s letter said, adding that Salazar, a native of Costa Rica, “has consistently denied any wrongdoing”.

The archdiocese’s independent Clergy Misconduct Review Board found the allegation “credible” and informed the Vatican.

The archbishop’s letter did not explain why the process between the initial accusation and Wednesday’s resignation took 13 years.

A statement from the Archdiocese of Los Angeles said Salazar’s name resurfaced after Gomez became archbishop in 2011, and ordered a review of past allegations of abuse.

The archdiocese’s statement disclosed that Gomez’s predecessor, Cardinal Roger Mahoney, sent the case to the Vatican’s Congregation for the Doctrine of the Faith (CDF), which investigates abuse cases.

The CDF “permitted Bishop Salazar to remain in ministry subject to certain precautionary conditions, which he has respected”. The statement did not elaborate on what the conditions were or why he was allowed to return to ministry.

Benedict XVI was pope between 2005 and his resignation in 2013.

Pope Francis has summoned the heads of some 110 national Catholic bishops’ conferences and dozens of experts and leaders of religious orders to the Vatican on Feb. 21-24 for an extraordinary gathering dedicated to the sexual abuse crisis.

Victims of clergy sexual abuse are hoping that the meeting will finally come up with a clear policy to make bishops themselves accountable for the mishandling of abuse cases.

(Reporting by Philip Pullella; Editing by Mark Heinrich)

Congress to push stop-gap funding bill with no border wall money

FILE PHOTO: Workers on the U.S. side, work on the border wall between Mexico and the U.S., as seen from Tijuana, Mexico, December 13, 2018. REUTERS/Carlos Garcia Rawlins

WASHINGTON (Reuters) – The U.S. Congress, aiming to avoid a partial government shutdown at the end of this week, began advancing legislation on Wednesday to temporarily fund several federal agencies through Feb. 8, but without money for a U.S.-Mexico border wall that President Donald Trump demanded.

“We’ll soon take up a simple measure that will continue government funding into February so that we can continue this vital (border security) debate after the new Congress has convened” in January, said Senate Majority Leader Mitch McConnell.

A Senate Democratic aide said the appropriations bill, which would keep the Department of Homeland Security and several other agencies operating on a temporary basis, was expected to pass the Senate either on Wednesday or Thursday.

The House of Representatives would then have to pass the bill and hope that Trump signs it into law, avoiding a shutdown because existing funding for the agencies will expire at midnight on Friday.

By postponing decisions on spending for the agencies that also includes the departments of Justice, Commerce, Interior and Agriculture, Democrats will be in a somewhat stronger bargaining position next year when they take majority control of the House.

Democrats and many Republicans have challenged the wisdom of giving Trump $5 billion this year, and ultimately a total of at least $24 billion, to build a wall that they argue would be less effective in securing the border than building on a mix of tools already in place.

In a last-ditch attempt to resolve the impasse this year, Trump and McConnell on Tuesday proposed giving Trump a $1 billion fund that he could use at his discretion for border security.

Senate Democratic Leader Chuck Schumer labeled that a “slush fund” that would lack the votes to pass Congress.

On Wednesday, McConnell attacked Democrats for rejecting it, saying, “It seems like political spite for the president may be winning out over sensible policy.”

(Reporting by Richard Cowan; Editing by Chizu Nomiyama and Bernadette Baum)

Israel says Hezbollah closed precision-guided missile plants

Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting at his office in Jerusalem December 16, 2018. Abir Sultan/Pool via REUTERS/File Photo

By Dan Williams

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Wednesday Hezbollah had shut down plants to develop precision-guided missiles but was imperiling Lebanon with a cross-border tunnel network he deemed “an act of war”.

Netanyahu spoke hours before the U.N. Security Council was due to discuss Hezbollah, an Iranian-backed Lebanese group, and appeared aimed at swaying world powers to order stronger intervention by U.N. peacekeepers.

An Israeli soldier lowers a camera down an Israeli-dug hole into a cross-border tunnel dug from Lebanon into Israel, as seen on the Israeli side of the border, near the town of Metula December 19, 2018. REUTERS/Ronen Zvulun

An Israeli soldier lowers a camera down an Israeli-dug hole into a cross-border tunnel dug from Lebanon into Israel, as seen on the Israeli side of the border, near the town of Metula December 19, 2018. REUTERS/Ronen Zvulun

Israel deems Hezbollah, against which it fought an inconclusive war in 2006, its most potent foe. Israeli forces have repeatedly struck suspected Hezbollah arms transfers via Syria during its civil war, but avoid such action in Lebanon.

Israel and the United States believe Hezbollah has sought homegrown production of precision-guided missiles that could paralyze Israeli civilian infrastructure.

Addressing the United Nations on Sept. 7, Netanyahu identified three such plants around Beirut airport – a disclosure that Lebanon’s foreign minister, a political ally of Hezbollah, dismissed at the time as fabricated.

“The underground sites for precision conversion of missiles, which (Israeli) military intelligence gave me, to expose, those sites were closed,” Netanyahu told a conference on Wednesday.

“They are trying to open other sites,” he said, without elaborating. Hezbollah hoped to have thousands of precision-guided missiles by now but instead had “at most, a few dozen”, according to Netanyahu.

In a separate speech to parliament, Netanyahu focused on four tunnels uncovered this month, whose presence was confirmed by UNIFIL peacekeepers and which Israel says were to be used for infiltrations of its northern villages.

Hezbollah has not commented on the tunnels.

A man stands next to a drill as Israeli military personnel continue work on exposing and thwarting cross-border tunnels dug from Lebanon into Israel, as seen on the Israeli side of the border, near the town of Metula December 19, 2018 REUTERS/Ronen Zvulun

A man stands next to a drill as Israeli military personnel continue work on exposing and thwarting cross-border tunnels dug from Lebanon into Israel, as seen on the Israeli side of the border, near the town of Metula December 19, 2018 REUTERS/Ronen Zvulun

“This is not merely an act of aggression. It is an act of war,” Netanyahu said.

Lebanon is fully committed to the U.N. resolution that ended the 2006 war, its Foreign Ministry said in a statement.

The ministry called on the Lebanese army “to take all necessary measures to ensure (the resolution) is well implemented in coordination with UNIFIL forces, especially in light of the tensions at the border in recent days.”

It added that it had not seen any “engineering works” being done on its side of the border.

Netanyahu accused UNIFIL of inaction, saying Hezbollah’s rocket arsenal has grown tenfold since 2006 and that every third home in southern Lebanon was being used by the guerrillas.

The Security Council, he said, should ensure “UNIFIL is not restricted by Hezbollah or the Lebanese army in any way, and reports on any obstructions” of the peacekeepers’ mandate to enforce the 2006 Lebanon ceasefire.

Israel has itself violated the truce with overflights of Lebanon for surveillance or Syria sorties.

(Additional reporting by Ellen Francis; Writing by Dan Williams; Editing by Jeffrey Heller/Mark Heinrich)

U.S. eyes complete withdrawal of troops from Syria: U.S. officials

FILE PHOTO: U.S. forces set up a new base in Manbij, Syria May 8, 2018. REUTERS/Rodi Said

By Idrees Ali and Phil Stewart

WASHINGTON (Reuters) – The United States is considering a total withdrawal of U.S. forces from Syria as it winds up its campaign to retake all of the territory once held by Islamic State, U.S. officials said on Wednesday.

President Donald Trump declared victory against the militant group in Syria on Wednesday and hinted that a withdrawal could be imminent, tweeting, “We have defeated ISIS in Syria, my only reason for being there during the Trump Presidency.”

A decision to withdraw the last of about 2,000 troops, if confirmed, would upend assumptions about a longer-term U.S. military presence in Syria, which U.S. Defense Secretary Jim Mattis and other senior U.S. officials have advocated to help ensure Islamic State cannot reemerge.

Trump has previously expressed a strong desire to bring troops home from Syria when possible, and his tweet on Wednesday showed he saw no further grounds for remaining.

FILE PHOTO: Syrian Democratic Forces and U.S. troops are seen during a patrol near Turkish border in Hasakah, Syria November 4, 2018. REUTERS/Rodi Said/File Photo

FILE PHOTO: Syrian Democratic Forces and U.S. troops are seen during a patrol near Turkish border in Hasakah, Syria November 4, 2018. REUTERS/Rodi Said/File Photo

U.S. officials, who spoke to Reuters on condition of anonymity, did not disclose details about the deliberations on the troop withdrawal, and the timing was not immediately clear.

But one official told Reuters that partners and allies had been consulted.

Two U.S. officials said a decision to withdraw had already been reached but that could not be immediately confirmed. It was unclear how soon a decision detailing any withdrawal plans might be announced.

The Pentagon declined to comment, saying only that it continued to work with partners in the region.

Republican U.S. Senator Lindsey Graham, often a Trump ally, said a withdrawal would have “devastating consequences” for the United States in the region and throughout the world.

“An American withdrawal at this time would be a big win for ISIS, Iran, (President) Bashar al Assad of Syria, and Russia,” Graham said in a statement, using the acronym ISIS for Islamic State.

Many of the remaining U.S. troops in Syria are special operations forces working closely with an alliance of Kurdish and Arab militias known as the Syrian Democratic Forces, or SDF.

The partnership with the SDF over the past several years has led to the defeat of Islamic State in Syria but has also outraged NATO ally Turkey, which views Kurdish YPG forces in the alliance as an extension of a militant group fighting inside Turkey.

The deliberations on U.S. troops come as Ankara threatens a new offensive in Syria. To date, U.S. forces in Syria have been seen as a stabilizing factor in the country and have somewhat restrained Turkey’s actions against the SDF.

A complete withdrawal of U.S. troops from Syria would still leave a sizeable U.S. military presence in the region, including about 5,200 troops across the border in Iraq. Much of the U.S. campaign in Syria has been waged by warplanes flying out of Qatar and other locations in the Middle East.

Still, Mattis and U.S. State Department officials have long fretted about leaving Syria before a peace agreement can be reached to end that country’s brutal civil war, which has killed hundreds of thousands of people and displaced around half of Syria’s pre-war population of about 22 million.

In April, Mattis said: “We do not want to simply pull out before the diplomats have won the peace. You win the fight — and then you win the peace.”

Islamic State is also widely expected to revert to guerrilla tactics once it no longer holds territory. A U.S. withdrawal could open Trump up to criticism if Islamic State reemerged.

Trump has previously lambasted his predecessor, Barack Obama, for the withdrawal of U.S. forces from Iraq that preceded an unraveling of the Iraqi armed forces. Iraqi forces collapsed in the face of Islamic State’s advance into the country in 2014.

A pullout would allow other countries, like Iran, to increase their influence in Syria, experts said.

“If we withdraw then who fills the vacuum, who is able to stabilize and that is the million dollar question,” said Andrew Tabler, a Syria specialist at the Washington Institute for Near East Policy think-tank.

“The timing is hard to understand,” Tabler said.

LAST 1 PERCENT

Islamic State declared its so-called “caliphate” in 2014 after seizing large swathes of Syria and Iraq. The hardline Islamist group established its de facto capital in the Syrian city of Raqqa, using it as a base to plot attacks in Europe.

According to U.S. estimates, the group oversaw about 100,000 square kilometers (39,000 square miles) of territory, with about 8 million people under Islamic State control. It had estimated revenues of nearly one billion dollars a year.

Brett McGurk, the U.S. special envoy for the global coalition to defeat Islamic State, said last week that the group was down to its last 1 percent of the territory it once held in its self-styled “caliphate.” The group has no remaining territory in Iraq.

Hajin, the group’s last major stronghold in Syria, is close to being seized by U.S.-backed SDF forces.

After losing Hajin, Islamic State will control a diminishing strip of territory along the eastern bank of the Euphrates River in the area where U.S.-backed operations are focused. The militants also control some desert terrain west of the river in territory otherwise controlled by the Damascus government and its allies.

But U.S. officials have warned that taking back the group’s territory would not be the same as defeating it.

“Even as the end of the physical caliphate is clearly now coming into sight, the end of ISIS will be a much more long-term initiative,” McGurk told a State Department briefing on Dec. 11.

U.S. Marine General Joseph Dunford, the chairman of the Joint Chiefs of Staff, cautioned earlier in December that the United States had trained only about 20 percent of Syrian forces required to stabilize areas captured from Islamic State.

(Reporting by Phil Stewart and Idrees Ali; Editing by Frances Kerry)

EU investigates hacked diplomatic communications

A European Union flag is seen outside the EU Commission headquarters in Brussels, Belgium November 14, 2018. REUTERS/Francois Lenoir/File Photo

BRUSSELS (Reuters) – The European Union is investigating a cyber hack of its diplomatic communications, allegedly by Chinese hackers, that revealed EU concern about U.S. Donald Trump, Russia and Iran, the bloc said on Wednesday.

“The Council Secretariat is aware of allegations regarding a potential leak of sensitive information and is actively investigating the issue,” the body that represents EU governments in Brussels said in a statement.

The Secretariat declined to comment further but said it “takes the security of its facilities, including its IT systems, extremely seriously”, referring to concerns about vulnerabilities in its data systems across 28 EU states.

The New York Times reported late on Tuesday that hackers had broken into the EU’s diplomatic communications for years, downloading cables that showed worries about the Trump administration, struggles to deal with Russia and China, and the threat of Iran reviving its nuclear programme.

More than 1,100 cables were supplied to the Times by security firm Area 1 after it discovered the breach, the newspaper said, adding that Area 1 investigators believed the hackers worked for China’s People’s Liberation Army.

The cables include memorandums of conversations with leaders in Saudi Arabia, Israel and other countries that were shared across the European Union, according to the report.

One cable, the Times said, showed European diplomats describing a meeting between U.S. President Donald Trump and Russian counterpart Vladimir Putin in Finland as “successful (at least for Putin)”.

Another, written after a July 16 meeting, relayed a detailed report and analysis of talks between European officials and Chinese President Xi Jinping, who was quoted comparing Trump’s “bullying” of Beijing to a “no-rules freestyle boxing match”.

A third, from March 7, shows Caroline Vicini, the deputy head of the EU mission in Washington, recommending that the trade bloc’s diplomats describe the United States as “our most important partner”, even as it challenged Trump “in areas where we disagreed with the U.S. (e.g., on climate, trade, Iran nuclear deal)”.

The hackers also infiltrated the networks of the United Nations, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), and ministries of foreign affairs and finance worldwide, the Times report added.

(Reporting by Rama Venkat in Bengaluru and Robin Emmott in Brussels; editing by Andrew Roche)

White House cites options for funding border wall, avoiding shutdown

Workers on the U.S. side, work on the border wall between Mexico and the U.S., as seen from Tijuana, Mexico, December 13, 2018. REUTERS/Carlos Garcia Rawlins - RC18E76A6270

By Richard Cowan

WASHINGTON (Reuters) – The White House said on Tuesday it has found a way to build President Donald Trump’s promised border wall without new funding from Congress, stepping away from the president’s threat to shut down the U.S. government over border security disputes.

“We have other ways that we can get to that $5 billion,” White House spokeswoman Sarah Sanders said on Fox News. “At the end of the day, we don’t want to shut down the government, we want to shut down the border.”

Trump and Congress, embroiled in a feud over his proposed U.S.-Mexico border wall, have four days to reach a deal before a partial government shutdown could leave about a quarter of the federal workforce without paychecks.

Last week, in a heated exchange at the White House with Democratic leaders in Congress, Trump declared he would be “proud to shut down the government” if he did not get his demand for $5 billion to build a wall along the U.S.-Mexico border.

Since then, after days with no apparent progress, the senior Republican and Democrat on the Senate Appropriations Committee huddled with Senate Majority Leader Mitch McConnell just steps from the Senate chamber.

Following that meeting, Senate Appropriations Committee Chairman Richard Shelby told reporters, “We’re talking seriously about how to reach our goal” of keeping the government funded beyond Friday. He said they were “working with the president, working with the Democrats. There are a lot of variables here.”

A senior Democratic aide, who asked not to be identified, said Trump and Republicans in Congress have floated the idea of lawmakers providing the president $1 billion in new funds to be used for any of his immigration priorities – an idea that Democrats will not accept.

Trump has demanded $5 billion as a down payment on construction of a wall that he argues is needed to keep illegal immigrants and drugs from entering the United States. Building the wall was a key pledge of his 2016 presidential campaign. Trump had originally said Mexico would pay for the wall, but leaders of the United States’ southern neighbor have repeatedly said it would not.

Democrats and some Republicans argue there are less costly, more effective border controls than a wall.

Sanders indicated the White House was backing down from Trump’s threat to shut down the federal government if Congress refused to provide money for his wall.

“There’s certainly a number of different funding sources that we’ve identified that we can use, that we can couple with the money that would be given through congressional appropriations, that would help us get to that $5 billion that the president needs in order to protect our borders,” Sanders said on Fox.

Asked whether the White House was exploring the use of funds, including from the Defense Department, for building the wall and whether that would be legal, Sanders said, “Absolutely.”

But Shelby was less certain.

In response to a reporter’s question on whether Trump could order the Pentagon to shift some of its funds to wall construction, Shelby said: “I don’t know about that.” He added, however, that Trump “does have the power to defend the country” and “the power to protect the border.”

The money Trump wants is a fraction of the roughly $450 billion Congress was poised to approve – before the latest battle over the proposed wall – to fund several agencies which will otherwise run out of money at midnight on Friday.

(Reporting by Doina Chiacu and Richard Cowan; editing by Jonathan Oatis)

Catholic bishops told to act on sex abuse or lose all credibility

FILE PHOTO: Pope Francis celebrates a special mass for the Feast of Our Lady of Guadalupe in Saint Peter's Basilica at the Vatican, December 12, 2018. REUTERS/Max Rossi - RC11EC66C6A0/File Photo

By Philip Pullella

VATICAN CITY (Reuters) – The Roman Catholic Church’s leading experts on sexual abuse told bishops on Tuesday finally to take responsibility for a global clerical abuse scandal and go and speak personally to victims, or risk seeing the Church lose its credibility worldwide.

Pope Francis has summoned the heads of some 110 national Catholic bishops’ conferences and dozens of experts and leaders of religious orders to the Vatican on Feb. 21-24 for an extraordinary gathering dedicated to the sexual abuse crisis.

Victims of clergy sexual abuse are hoping that the meeting will finally come up with a clear policy to make bishops themselves accountable for the mishandling of abuse cases.

“Absent a comprehensive and communal response, not only will we fail to bring healing to victim-survivors, but the very credibility of the Church to carry on the mission of Christ will be in jeopardy throughout the world,” the conference’s steering committee said in a letter to all participants.

“But each of us needs to own this challenge, coming together in solidarity, humility, and penitence to repair the damage done, sharing a common commitment to transparency, and holding everyone in the Church accountable,” said the letter, which was released by the Vatican.

The committee is made up of Cardinal Blase Cupich of Chicago, Cardinal Oswald Gracias of Mumbai, Archbishop Charles Scicluna of Malta, the Vatican’s leading sex abuse investigator, and Father Hans Zollner, an abuse expert based in Rome.

“The first step must be acknowledging the truth of what has happened,” they said.

Each bishop was asked to visit survivors of clergy sex abuse in their area to learn first-hand the suffering that they have endured.

“PUTTING VICTIMS FIRST”

“This is a concrete way of putting victims first, and acknowledging the horror of what happened,” said Vatican spokesman Greg Burke, adding that the February gathering would focus on responsibility, accountability and transparency.

Last month, when U.S. bishops held their annual assembly in Baltimore, the Vatican asked them to wait until the February meeting before voting on a series of corrective measures.

The proposals included a telephone hotline to report accusations of mishandling of cases of abuse by bishops, a review board made up of non-clerics to handle accusations against bishops, and a bishops’ code of conduct.

Victims’ groups and some bishops saw the Vatican intervention as a setback. But the Vatican said it wanted to see if some of the U.S. proposals could be applied worldwide, not just in the United States.

The Church is also facing sexual abuse scandals in Chile, Australia and Germany.

In September, a study commissioned by the German Bishops’ Conference showed that 1,670 clerics and priests had sexually abused 3,677 minors, mostly males, in Germany over a 70-year period.

A U.S. Grand Jury report in August found that 301 priests in the state of Pennsylvania had sexually abused minors over a similar period.

(Reporting By Philip Pullella; Editing by Gareth Jones)

Explainer: Brexit basics – What is Brexit and why does it matter?

FILE PHOTO: A bus with a pro-Brexit message passes an anti-Brexit demonstrator outside the Houses of Parliament in London, Britain, December 10, 2018. REUTERS/Peter Nicholls

LONDON (Reuters) – The United Kingdom is due to leave the European Union on March 29, 2019. The date is set in law – the 2018 Withdrawal Act – but the divorce has been plunged into chaos.

Below is an explainer of the Brexit basics:

BREXIT?

A blending of “Britain” and “exit,” it is the description of the United Kingdom’s decision to leave the European Union. The word was coined by former lawyer Peter Wilding four years before the vote took place.

The EU, initially an attempt to tie Germany and France together and prevent another major European war, is now a group of 28 countries which trade and allow their citizens to move between the countries to live and work.

In the June 23, 2016 referendum, 17.4 million voters, or 52 percent, backed leaving while 16.1 million, or 48 percent, backed staying in the bloc.

The campaign was among the most divisive waged in Britain with accusations of lying and scare-mongering on both sides.

Supporters of remaining in the EU were accused of exaggerating threats to the economy. The pro-Brexit camp was accused of misleading voters about how much extra money could be spent on healthcare and stoking fears about immigration.

A week before the vote, a pro-EU member of parliament died after being stabbed and shot in the street.

WHY DOES IT MATTER?

Pro-Europeans fear Britain’s exit will weaken the West as it grapples with Donald Trump’s unpredictable U.S. presidency and growing assertiveness from Russia and China. It weakens Europe’s economy and removes one of its only two nuclear powers.

A disorderly Brexit would hammer the United Kingdom’s economy, the world’s fifth largest, and could disrupt trade in Europe and beyond. The shock of a chaotic Brexit would roil financial markets.

Brexit supporters say while there may be some short-term disruption, in the long-term the UK will thrive outside what they cast as a doomed experiment in German-dominated unity and excessive debt-funded welfare spending.

HOW DID WE GET HERE?

The vote to leave the EU followed decades of discussion about how close the United Kingdom should be to the bloc.

Britain refused to join the forerunner to the EU, the European Economic Community when it was founded in 1957. When it did decide to join, its attempts were vetoed twice by France.

The UK became a member in 1973, only to have a crisis of confidence that led to an exit referendum two years later. Britons voted 67 to 33 percent to stay in the club in 1975.

But opposition, which partly reflected an ambivalence grounded in Britain’s imperial past, stiffened as European leaders sought greater economic and political integration. Britain never joined Europe’s currency, the euro, or participated in the EU’s Schengen Area open-borders agreement.

Former Prime Minister Margaret Thatcher threatened to halt payments to the EU unless Britain got a refund. But her opposition to greater European integration led to her being ousted in a party coup.

In an attempt to end splits in his Conservative Party, the former Prime Minister David Cameron held the 2016 “in-out” referendum.

WHO ARE BREXITEERS?

Supporters of Brexit. They say leaving will give the United Kingdom back control over its own destiny and allow it to exploit global economic opportunities beyond Europe.

They argue the United Kingdom will save billions of pounds in membership fees, regain control of its economic policies and regulations and the right to restrict immigration from countries in the EU.

WHO ARE REMAINERS?

Opponents of Brexit. They say leaving will hammer the British economy and diminish the United Kingdom’s global clout.

As a bloc, the EU is Britain’s most important trading partner and its greatest source of foreign direct investment. Remainers say an exit will disrupt trade and dislocate supply chains in Europe and beyond.

SO WHY THE CHAOS?

After months of negotiation, British Prime Minister Theresa May reached agreement on the terms of Britain’s departure with EU leaders. But her plan to accept EU customs rules on goods while ending free movement of people has drawn criticism from both pro-Brexit and pro-EU lawmakers, the Northern Irish DUP party, which props up her minority government, and members of the opposition.

May says the choice before parliament is her deal, no deal or no Brexit.

CAN BREXIT BE STOPPED?

The lack of support in parliament for May’s divorce deal has stirred interest in the possibility that Britain may hold a second vote on whether to stay or leave.

May has ruled out a second referendum. The main opposition Labour Party is also skeptical, fearing another vote would divide supporters.

If Parliament did agree to hold another referendum, Britain would have to ask for an extension to the timetable for leaving the EU to allow enough time to hold the vote.

(Reporting By Andrew MacAskill; Editing by Guy Faulconbridge and Janet Lawrence)

Russia, Iran and Turkey agree on Syria constitutional body, call for talks

United Nations Special Envoy for Syria Staffan de Mistura meets with Russian Foreign Minister Sergei Lavrov, Turkish Foreign Minister Mevlut Cavusoglu and Iranian Foreign Minister Mohammad Javad Zarif on forming a constitutional committee in Syria at the United Nations in Geneva, Switzerland, December 18, 2018. REUTERS/Denis Balibouse

GENEVA (Reuters) – The foreign ministers of Russia, Iran and Turkey said on Tuesday that a new Syrian Constitutional Committee should convene early next year, kicking off a viable political peace process.

In a joint statement read out by Russian Foreign Minister Sergei Lavrov after the trio met U.N. Special Envoy Staffan de Mistura, they said that the work of the new body “should be governed by a sense of compromise and constructive engagement”.

De Mistura stayed away from their press event and was to address reporters separately.

(Reporting by Stephanie Nebehay; Editing by Kevin Liffey)