The Jim Bakker Show

Trump to choose Supreme Court justice nominee on Feb. 2

WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he will make his choice to fill the vacancy on the U.S. Supreme Court on Feb. 2 as he seeks to restore the conservative majority on the Supreme Court.

Trump announced the date in Twitter message one day after meeting with key U.S. senators and promising to unveil his nominee to fill the vacancy left by the death of conservative Justice Antonin Scalia nearly a year ago.

Three U.S. appeals court judges are among those under close consideration by Trump, who took office last Friday and had said he would act on a nominee next week.

Appointment as a Supreme Court justice requires Senate confirmation for the lifetime post. Trump’s fellow Republicans control the Senate with a 52-48 majority, but Democrats could potentially try to block the nomination using procedural hurdles.

On Tuesday, Senate Democratic Leader Chuck Schumer said he told Trump in the meeting that Democrats would fight any nominee they consider to be outside the mainstream.

Trump is in position to name Scalia’s replacement because the Republican-led U.S. Senate last year refused to consider Democratic President Barack Obama’s nominee, appeals court judge Merrick Garland.

The current frontrunners include three conservative jurists who were appointed to the bench by Republican former President George W. Bush: Neil Gorsuch, a judge on the Denver-based 10th U.S. Circuit Court of Appeals; Thomas Hardiman, who serves on the Philadelphia-based 3rd U.S. Circuit Court of Appeals; and William Pryor, a judge on the Atlanta-based 11th U.S. Circuit Court of Appeals.

(Reporting by Lawrence Hurley, Susan Heavey and Doina Chiacu; Editing by Chizu Nomiyama and Frances Kerry)

U.S. governors want say on Trump’s infrastructure plan

CHICAGO (Reuters) – U.S. governors are flagging hundreds of “shovel-ready” projects they regard as high-priority for President Donald Trump’s plan to fix the nation’s infrastructure.

Scott Pattison, executive director of the bipartisan National Governor’s Association, said on Monday his group, at the request of the White House, has assembled a list of 300 projects costing billions of dollars from 43 states and territories, with more expected to come.

“The good part from a bipartisan standpoint is there seems to be full consensus that we have a lot of infrastructure problems in the U.S., a lot of maintenance issues, also things that need building,” he said in an interview.

In his inaugural address Friday, the Republican president said the nation’s infrastructure “has fallen into disrepair and decay.”

“We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation,” Trump said.

White House Press Secretary Sean Spicer on Monday told reporters that “infrastructure continues to be a huge priority.”

The American Society of Civil Engineers’ infrastructure report card has estimated the United States needs to invest $3.6 trillion by 2020.

Pattison said while it was still early in the process, disagreements are likely over how to fund infrastructure. He added that governors want “all the tools” to be made available, including cash, municipal bonds, public-private partnerships and federal matching programs.

“One of the biggest issues that has to be faced is that the gas tax has been primarily the way in which we funded a lot of our transportation projects, and that’s a declining revenue source,” Pattison said.

Governors also want to make sure their project priorities are immune from congressional earmarking, Pattison said, adding that states have developed “robust” prioritization programs.

(Reporting by Karen Pierog; Editing by Matthew Lewis)

Trump calls for more U.S. auto jobs, factories ahead of CEO meeting

By David Shepardson

WASHINGTON (Reuters) – U.S. President Donald Trump on Tuesday will push the chief executives of General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV to increase production in the United States and boost American employment.

“I want new plants to be built here for cars sold here!” Trump said in a tweet ahead of the breakfast meeting with automakers, saying he would discuss U.S. jobs with the chief executives.

Trump has criticized automakers for building cars in Mexico and elsewhere and has threatened to impose 35 percent tariffs on imported vehicles.

The meeting is the latest sign of Trump’s uncommon degree of intervention for a U.S. president into corporate affairs as he has repeatedly jawboned automakers and other manufacturers to “buy American and hire American.”

It will be the first time the CEOs of the big three automakers meet jointly with a U.S. president since a July 2011 session with then-president Barack Obama to tout a deal to nearly double fuel efficiency standards to 54.5 miles per gallon by 2025. Fiat Chrysler is the Italian-American parent of the former Michigan-based Chrysler.

White House spokesman Sean Spicer on Monday said Trump “looks forward to hearing their ideas about how we can work together to bring more jobs back to this industry.”

U.S. and foreign automakers have been touting plans to boost American jobs and investments in the face of Trump’s comments. The Republican president made attacks on Ford’s Mexico investments a cornerstone of his campaign.

Automakers have praised Trump’s policies, but emphasized that the recent employment moves were the result of business, not political decisions, that had mostly been in the works for a long period.

(Reporting by David Shepardson; Additional reporting by Susan Heavey; Editing by Jeremy Gaunt)

China says will protect South China Sea sovereignty

By Ben Blanchard and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – China said on Tuesday it had “irrefutable” sovereignty over disputed islands in the South China Sea after the White House vowed to defend “international territories” in the strategic waterway.

White House spokesman Sean Spicer in his comments on Monday signaled a sharp departure from years of cautious U.S. handling of China’s assertive pursuit of territorial claims in Asia.

“The U.S. is going to make sure that we protect our interests there,” Spicer said when asked if Trump agreed with comments by his secretary of state nominee, Rex Tillerson. On Jan. 11, Tillerson said China should not be allowed access to islands it has built in the contested South China Sea.

“It’s a question of if those islands are in fact in international waters and not part of China proper, then yeah, we’re going to make sure that we defend international territories from being taken over by one country,” Spicer said.

Chinese Foreign Ministry spokeswoman Hua Chunying told a regular news briefing on Tuesday “the United States is not a party to the South China Sea dispute”.

China claims most of the South China Sea, while Taiwan, Malaysia, Vietnam, the Philippines and Brunei claims parts of the sea that commands strategic sealanes and has rich fishing grounds along with oil and gas deposits.

China’s sovereignty over the Spratly Islands in the South China Sea was “irrefutable” Hua said. But China was also dedicated to protecting freedom of navigation and wants talks with nations directly involved to find a peaceful solution.

“We urge the United States to respect the facts, speak and act cautiously to avoid harming the peace and stability of the South China Sea,” Hua said.

“Our actions in the South China Sea are reasonable and fair. No matter what changes happen in other countries, what they say or what they want to do, China’s resolve to protect its sovereignty and maritime rights in the South China Sea will not change,” she added.

BAR ACCESS TO ISLANDS

Tillerson’s remarks at his Senate confirmation hearing prompted Chinese state media to say at the time that the United States would need to “wage war” to bar China’s access to the islands, where it has built military-length air strips and installed weapons systems.

Tillerson was asked at the hearing whether he supported a more aggressive posture toward China and said: “We’re going to have to send China a clear signal that, first, the island-building stops and, second, your access to those islands also is not going to be allowed.”

The former Exxon Mobil Corp <XOM.N> chairman and chief executive did not elaborate on what might be done to deny China access to the islands.

But analysts said his comments, like those of Spicer, suggested the possibility of U.S. military action, or even a naval blockade. Such action would risk an armed confrontation with China, an increasingly formidable nuclear-armed military power. It is also the world’s second-largest economy and the target of Trump accusations it is stealing American jobs.

Spicer declined to elaborate when asked how the United States could enforce such a move against China, except to say: “I think, as we develop further, we’ll have more information on it.”

Tillerson narrowly won approval from a Senate committee on Monday and is expected to win confirmation from the full Senate.

RISK OF DANGEROUS ESCALATION

Military experts said that while the U.S. Navy has extensive capabilities in Asia to stage blockading operations with ships, submarines and planes, any such move against China’s growing naval fleets would risk a dangerous escalation.

Aides have said that Trump plans a major naval build-up in East Asia to counter China’s rise.

China’s foreign ministry said earlier this month it could not guess what Tillerson meant by his remarks, which came after Trump questioned Washington’s longstanding and highly sensitive “one-China” policy over Taiwan.

Washington-based South China Sea expert Mira Rapp-Hooper at the Center for a New American Security called the threats to bar China’s access in the South China Sea “incredible” and said it had no basis in international law.

“A blockade – which is what would be required to actually bar access – is an act of war,” she added.

“The Trump administration has begun to draw red lines in Asia that they will almost certainly not be able to uphold, but they may nonetheless be very destabilizing to the relationship with China, invite crises, and convince the rest of the world that the United States is an unreliable partner.”

Bonnie Glaser at the Center for Strategic and International Studies think tank called Spicer’s remarks “worrisome” and said the new administration was “sending confusing and conflicting messages.”

Dean Cheng, a China expert at the conservative Heritage Foundation, said Spicer’s remarks showed the South China Sea was an important issue for the Trump administration.

He said it was significant that neither Spicer nor Tillerson had been specific as to what actions would be taken and this left open the possibility that economic measures – instead of military steps – could be used against China and firms that carry out island building.

(Clarifies paragraph 4 attribution)

(Additional reporting by Matt Spetalnick in Washington, and Christian Shepherd in Beijing; Editing by Andrew Hay and Bill Tarrant)

Dollar steadies after stumble, Brexit ruling saps sterling

woman walks past electronic board with stock market numbers on it

By Marc Jones

LONDON (Reuters) – The dollar and world stocks tip-toed higher on Tuesday, as signs of a revival of worldwide economic activity helped ease some of the caution triggered in recent days by U.S. President Donald Trump’s focus on protectionism over fiscal stimulus.

Talk of trade wars rumbled in the background but was offset as Japanese manufacturing showed the fastest expansion in almost three years and a 5-1/2 year peak in French business activity provided the latest proof of a nascent euro zone recovery.

European stocks made modest gains as the data helped bolster a 2-1/2 year high in commodity stocks and as merger talk swirling around two of Italy’s big insurers fueled a 1 percent jump in shares in Milan.

There was also the expected confirmation that Britain’s parliament will have to approve the start of the Brexit process, though sterling dropped on news that assent will not be needed from pro-EU Scotland or Northern Ireland.

It was largely fine-tuning however, with both the pound and the euro, as well as the Japanese yen already pushed back by the dollar as its index clawed its way back above the 100 point threshold breach on Monday.

“Most of the PMIs around the world have been quite strong so there is no bad news here, but the protectionism above stimulus story (from Trump) has given the dollar bulls reason for pause,” said Saxo bank’s head of FX strategy John Hardy.

“The dollar rally needs to find some support pretty soon otherwise we are facing a potentially serious correction.”

U.S. futures also pointed to another flat start for Wall Street’s S&P 500, Dow Jones Industrial and Nasdaq ahead of U.S. manufacturing data and what should be more activity in Washington from Trump’s new administration.

Sentiment had taken a knock on Monday when U.S. Treasury Secretary nominee Steven Mnuchin told senators that he would work to combat currency manipulation but would not give a clear answer on whether he thought China was manipulating its yuan.

In written answers to a Senate Finance Committee, Mnuchin also reportedly said an excessively strong dollar could be negative in the short term.

The dollar duly skidded as far as 112.52 yen in its biggest fall since July though it was back up at 113.40 yen by 1300 GMT. It had also hopped up to $1.0745 to the euro and almost a full cent to $1.2440 per pound.

SCEPTICISM GROWS

While Trump promised huge cuts in taxes and regulations on Monday, he also formally withdrew from the Trans-Pacific Partnership (TPP) trade deal and talked of border tariffs.

“It’s interesting that markets did not respond positively to a reaffirmation of lower taxes and looser regulation, reinforcing the impression that all the good news is discounted for now,” wrote analysts at ANZ in a note.

“As week one in office gets underway, there is a growing sense of scepticism, not helped by the tone of Friday’s inaugural address and subsequent spat with the media.”

Doubts about exactly how much fiscal stimulus might be forthcoming had helped Treasuries rally. Yields on 10-year notes steadied at 2.42 percent in European trading, having enjoyed the steepest single-day drop since Jan. 5 on Monday.

Two-year yields were around 1.16 percent, narrowing the dollar’s premium over the euro to 183 basis points from a recent top of 207 basis points.

Europe’s moves included the second dip in a row for Italian yields as its highest court began deliberations on the legality of the country’s latest electoral law with the decision likely to influence the timing of elections there.

An unambiguous ruling offering a simple solution to Italy’s electoral tangle could open the way for an early ballot by June. A more nuanced, convoluted reading would almost certainly leave parliament in place until the legislature ends in early 2018.

Spain and France clocked up impressive demand of almost 50 billion euros between them in new 10- and 22-year bond sales.

The upbeat global data boosted industrial metals including copper and iron ore, while gold was near two-month high at $1,212 an ounce.

Oil prices edged up too as signs that OPEC and non-OPEC producers were on track to meet output reduction goals largely overshadowed a strong recovery in U.S. drilling.

U.S. crude futures added 45 cents to $53.19, while Brent crude climbed 42 cents to $55.65 a barrel. [O/R]

(Additional reporting by Wayne Cole in Sydney; Editing by Andrew Heavens)

Trump pulls U.S. out of Pacific trade deal, loosening Asia ties

President Donald Trump holds up executive order

By Roberta Rampton and Steve Holland

(Reuters) – U.S. President Donald Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from its Asian allies as China’s influence in the region rises.

Fulfilling a campaign pledge to end American involvement in the 2015 pact, Trump signed an executive order in the Oval Office pulling the United States from the 12-nation TPP.

“Great thing for the American worker,” Trump said as he signed the order on his third full day in office. The Republican says the trade deal would have damaged U.S. manufacturing.

The accord, backed heavily by U.S. business, was negotiated by former President Barack Obama’s administration but never approved by Congress. It had been the main economic pillar of the Obama administration’s “pivot” to the Asia-Pacific region to counter China.

Trump has sparked worries in Japan and elsewhere in the Asia-Pacific with his opposition to the TPP and his campaign demands for U.S. allies to pay more for their security.

Harry Kazianis, Director of Defense Studies at the Center for the National Interest think tank in Washington, said Trump must now find an alternative way to reassure allies in Asia.

“This could include multiple bilateral trade agreements. Japan, Taiwan and Vietnam should be approached first as they are key to any new Asia strategy that President Trump will enact,” he said.

U.S. BUSINESS LEADERS

The new president also met with a dozen American manufacturers at the White House on Monday, pledging to slash regulations and cut corporate taxes, but warning them he would take action on trade deals he felt were unfair.

Trump, who took office on Friday, has promised to bring manufacturing plants back to the United States – an issue he said helped him win the Nov. 8 election. He has not hesitated to call out by name companies that he thinks should bring outsourced production back home.

He said those businesses that choose to move factories outside the country would pay a price. “We are going to be imposing a very major border tax on the product when it comes in,” Trump said.

Trump asked the group of chief executives from companies including Ford, Dell Technologies, Tesla and others to make recommendations in 30 days to stimulate manufacturing, Dow Chemical CEO Andrew Liveris told reporters.

Liveris said the CEOs discussed the border tax “quite a bit” with Trump, explaining “the sorts of industry that might be helped or hurt by that.”

“Look: I would take the president at his word here. He’s not going to do anything to harm competitiveness. He’s going to actually make us all more competitive,” Liveris said.

At a portion of the meeting observed by reporters, Trump provided no details on how the border tax would work. The U.S. dollar fell to a seven-week low against a basket of key world currencies on Monday and global stock markets declined amid investor concerns about Trump’s protectionist rhetoric.

“A company that wants to fire all of its people in the United States, and build some factory someplace else, and then thinks that that product is going to just flow across the border into the United States – that’s not going to happen,” he said.

CUT TAXES AND REGULATIONS

The president told the CEOs he would like to cut corporate taxes to the 15 percent to 20 percent range, down from current statutory levels of 35 percent – a pledge that will require cooperation from the Republican-led U.S. Congress.

But he said business leaders have told him that reducing regulations is even more important.

“We think we can cut regulations by 75 percent. Maybe more,” Trump told business leaders.

“When you want to expand your plant, or when Mark wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special – you’re going to have your approvals really fast,” Trump said, referring to Mark Fields, CEO of Ford, who sat around the boardroom-style table in the Roosevelt Room.

Fields said he was encouraged by the tone of the meeting.

“I know I come out with a lot of confidence that the president is very, very serious on making sure that the United States economy is going to be strong and have policies – tax, regulatory or trade – to drive that,” he said.

Trump told the executives that companies were welcome to negotiate with governors to move production between states, but Trump was scheduled to hold a meeting later on Monday with labor leaders and U.S. workers, the White House said.

Between winning the presidential election in November and taking office, Trump hosted a number of U.S. CEOs in meetings in New York, including business leaders from defense, technology and other sectors. He also met with leaders of several labor unions, including the AFL-CIO.

(Additional reporting by David Brunnstrom, Doina Chiacu, Susan Heavey, Ayesha Rascoe and David Shepardson)

Israel lifts restrictions on building more homes in East Jerusalem

By Ori Lewis

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu has told senior ministers he is lifting restrictions on settlement building in East Jerusalem, a statement said on Sunday, immediately after the city’s municipal government approved permits for the building of hundreds of new homes in the area.

“There is no longer a need to coordinate construction in the Jewish neighborhoods in East Jerusalem. We can build where we want and as much as we want,” the statement quoted Netanyahu as saying, adding that he also intended to allow the start of building in the West Bank.

“My vision is to enact sovereignty over all the settlements,” the statement also said, pointing to Netanyahu’s apparent bid to win greater support from settlers and appeal to a right-wing coalition partner.

Netanyahu told the ministers of the move at a meeting where they also decided unanimously to postpone discussing a bill proposing the Israeli annexation of the West Bank settlement of Maale Adumim, home to 40,000 Israelis near Jerusalem.

A brief statement issued after the discussion by the ministerial forum known as the Security Cabinet, said work on the bill would be delayed until after Netanyahu meets the new U.S. President, Donald Trump.

Netanyahu held his first phone conversation with the president on Sunday, saying afterwards that the conversation had been “very warm” and that he had been invited to a meeting with Trump in Washington in February.

“Many matters face us. The Israeli-Palestinian issue, the situation in Syria, the Iranian threat,” Netanyahu said in remarks broadcast at the start of his weekly cabinet meeting.

Meanwhile the housing projects approved by the Jerusalem municipality on Sunday are on land that the Palestinians seek as part of a future state and had been taken off the agenda in December at Netanyahu’s request to avoid further censure from Trump’s predecessor Barack Obama.

However, Israel’s right wing believes that Trump’s attitude towards settlements built in the West Bank and East Jerusalem — areas Israel captured in the 1967 war — will be far more supportive than that of Obama.

Jerusalem’s City Hall approved the building permits for more than 560 units in the urban settlements of Pisgat Zeev, Ramat Shlomo and Ramot, areas annexed to Jerusalem in a move not recognized internationally.

Jerusalem Mayor Nir Barkat said in a statement that the eight years of the Obama administration had been “difficult with pressure … to freeze construction” but that Israel was now entering a new era.

The Palestinians denounced the move. “We strongly condemn the Israeli decision to approve the construction,” Nabil Abu Rdainah, spokesman for Palestinian President Mahmoud Abbas, told Reuters.

In its final weeks, the Obama administration angered the Israeli government by withholding a traditional U.S. veto of an anti-settlement resolution at the United Nations Security Council, enabling the measure to pass.

Trump’s nominee to be U.S. ambassador to the United Nations, Nikki Haley, echoed his condemnation of the world body over its treatment of Israel at her Senate confirmation hearing last week.

Before taking over as president, Trump also pledged to move the U.S. embassy from Tel Aviv to Jerusalem and has nominated as new U.S. ambassador to Israel, David Friedman, who is seen as a supporter of settlements.

Israel views all Jerusalem as its capital, but most of the world considers its final status a matter for peace negotiations. The Palestinians have said that an embassy move would kill any prospect for peace. Negotiations broke down in 2014.

Commentators in Israel have said it is too early to tell what Trump’s policy on these matters will actually be although the White House said on Sunday it was in the early stages of talks to fulfill Trump’s pledge.

“We are at the very beginning stages of even discussing this subject,” White House Press Secretary Sean Spicer said in a statement.

Most countries consider settlement activity illegal and an obstacle to peace. Israel disagrees, citing a biblical, historical and political connection to the land — which the Palestinians also claim — as well as security interests.

(Additional Reporting by Ali Sawafta in Ramallah; Editing by David Goodman, Greg Mahlich)

European stocks fall, investors seek safety after Trump address

People walk through lobby of London Stock Exchange

By Abhinav Ramnarayan

LONDON (Reuters) – European stocks and bond yields edged lower on Monday and the dollar briefly hit a six-week low after U.S. President Donald Trump began his term in office with a protectionist speech that drove a nervous market into safe-haven assets.

Wall Street was set to open slightly lower, tracking stock markets in Europe and parts of Asia, having hit multi-year highs earlier this month on expectations Trump would boost growth and inflation with extraordinary fiscal spending measures.

However, his inaugural address on Friday, signaling an isolationist stance on trade and other issues, led investors to retreat to the safety of higher-rated government bonds.

Trump also made it clear that he plans to hold talks with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement.

U.S. stock futures were down 0.2 percent, pointing to a lower open after European stocks touched their lowest levels this year in early trades. By midday, the broad STOXX index had come off the day’s lows but was still down 0.3 percent.

Earlier, Japan’s Nikkei dropped 1.1 percent while shares in Australia fell 0.8 percent after Trump’s administration also declared its intention to withdraw from the Trans-Pacific Partnership (TPP), a 12-nation trade pact that Japan and Australia have both signed.

Other Asian shares were more resilient, however, in part due to dollar weakness, and MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent.

“The focus this morning is on the protectionist rhetoric and the lack of detail on economic stimulus, so it’s a nervous start (to the presidency),” said Investec economist Victoria Clarke.

“The other concern is how the Fed interprets Trump’s stance, the worry being the less he does on fiscal stimulus the more nervous they may get on pushing the rate hikes through.”

The U.S. Federal Reserve, which has indicated it expects to raise its benchmark interest rate three times this year, is due to hold its next meeting on Jan. 31 and Feb. 1.

Rabobank analyst Michael Avery said a more protectionist United States could lead to a U.S. dollar liquidity squeeze, with Mexico and Asia likely the most badly hit.

“We would see outright confusion over what currency to invoice, trade, and borrow in: a 19th century world of competing reserve currencies in different geographic zones, but without the underpinning of gold,” Avery said in a note.

The problem would be exacerbated if China tightens capital controls further, he said.

The U.S. dollar was down 0.4 percent against a basket of six major currencies.

The nervous start on Monday saw safe-haven assets in demand.

The yield on Germany’s 10-year government bond, the benchmark for the region, led most euro zone bonds lower and was down 2 basis points to 0.34 percent.

This followed 10-year U.S. Treasuries yields, which fell to 2.43 percent, after having risen briefly on Friday to 2.513 percent, their highest since Jan. 3.

Spot gold prices, meanwhile, rose on Monday to their highest in two months.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

(Additional reporting by Hideyuki Sano in Tokyo; Editing by Mark Heinrich)

Trump invites Netanyahu to Washington for visit: White House

By Ayesha Rascoe and Matt Spetalnick

WASHINGTON (Reuters) – President Donald Trump invited Israeli Prime Minister Benjamin Netanyahu to visit Washington in early February during a phone call in which they discussed the importance of strengthening the U.S.-Israeli relationship, the White House said on Sunday.

In his first call with Netanyahu since taking office on Friday, Trump stressed his “unprecedented commitment to Israel’s security.”

“The president and the prime minister agreed to continue to closely consult on a range of regional issues, including addressing the threats posed by Iran,” the White House said in a statement.

Trump also said peace between Israel and the Palestinians could only be negotiated between the two parties, but that the United States would work with Israel to achieve that goal.

Relations between Israel and the Obama administration ended on a contentious note, when the United States declined to veto a U.N. Security Council resolution calling for a halt to Israeli settlement-building.

The readout from the White House did not include any mention of moving the U.S. embassy in Israel to Jerusalem from Tel Aviv, an action that would likely spark anger in the Arab world.

Earlier on Sunday, the White House said it was only in the early stages of talks to fulfill Trump’s campaign pledge to relocate the embassy.

“We are at the very beginning stages of even discussing this subject,” White House spokesman Sean Spicer said in a statement. Aides said no announcement of an embassy move was imminent.

Washington’s embassy is in Tel Aviv, as are most foreign diplomatic posts. Israel calls Jerusalem its eternal capital, but Palestinians also lay claim to the city as part of an eventual Palestinian state. Both sides cite biblical, historical and political claims.

Any decision to break with the status quo is likely to prompt protests from U.S. allies in the Middle East such as Saudi Arabia, Jordan and Egypt. Washington relies on those countries for help in fighting the Islamic State militant group, which the new U.S. president has said is a priority.

The U.S. Congress passed a law in 1995 describing Jerusalem as the capital of Israel and saying it should not be divided, but successive Republican and Democratic presidents have used their foreign policy powers to maintain the embassy in Tel Aviv and to back negotiations between Israel and the Palestinians on the status of Jerusalem.

In early December, then-President Barack Obama renewed the presidential waiver on an embassy move until the beginning of June. It is unclear whether Trump would be able to legally override it and go ahead with relocation of the embassy.

U.S. diplomats say that, despite the U.S. legislation, Washington’s foreign policy is in practice broadly aligned with that of the United Nations and other major powers, which do not view Jerusalem as Israel’s capital and do not recognize Israel’s annexation of Arab East Jerusalem after its capture in the 1967 Middle East war.

Israel approved building permits on Sunday for hundreds of homes in three East Jerusalem settlements in expectation that Trump will row back on the previous administration’s criticism of such projects.

(Reporting by Ayesha Rascoe, Warren Strobel and Matt Spetalnick; Editing by Howard Goller and Paul Simao)

Executive actions ready to go as Trump prepares to take office

By Ayesha Rascoe and Julia Edwards Ainsley

WASHINGTON (Reuters) – Donald Trump is preparing to sign executive actions on his first day in the White House on Friday to take the opening steps to crack down on immigration, build a wall on the U.S.-Mexican border and roll back outgoing President Barack Obama’s policies.

Trump, a Republican elected on Nov. 8 to succeed Democrat Obama, arrived in Washington on a military plane with his family a day before he will be sworn in during a ceremony at the U.S. Capitol.

Aides said Trump would not wait to wield one of the most powerful tools of his office, the presidential pen, to sign several executive actions that can be implemented without the input of Congress.

“He is committed to not just Day 1, but Day 2, Day 3 of enacting an agenda of real change, and I think that you’re going to see that in the days and weeks to come,” Trump spokesman Sean Spicer said on Thursday, telling reporters to expect activity on Friday, during the weekend and early next week.

Trump plans on Saturday to visit the headquarters of the CIA in Langley, Virginia. He has harshly criticized the agency and its outgoing chief, first questioning the CIA’s conclusion that Russia was involved in cyber hacking during the U.S. election campaign, before later accepting the verdict. Trump also likened U.S. intelligence agencies to Nazi Germany.

Trump’s advisers vetted more than 200 potential executive orders for him to consider signing on healthcare, climate policy, immigration, energy and numerous other issues, but it was not clear how many orders he would initially approve, according to a member of the Trump transition team who was not authorized to talk to the press.

Signing off on orders puts Trump, who has presided over a sprawling business empire but has never before held public office, in a familiar place similar to the CEO role that made him famous, and will give him some early victories before he has to turn to the lumbering process of getting Congress to pass bills.

The strategy has been used by other presidents, including Obama, in their first few weeks in office.

“He wants to show he will take action and not be stifled by Washington gridlock,” said Princeton University presidential historian Julian Zelizer.

Trump is expected to impose a federal hiring freeze and take steps to delay a Labor Department rule due to take effect in April that would require brokers who give retirement advice to put their clients’ best interests first.

He also will give official notice he plans to withdraw from the 12-nation Trans-Pacific Partnership trade deal and renegotiate the North American Free Trade Agreement with Canada and Mexico, Spicer said. “I think you will see those happen very shortly,” Spicer said.

Obama, ending eight years as president, made frequent use of his executive powers during his second term in office, when the Republican-controlled Congress stymied his efforts to overhaul immigration and environmental laws. Many of those actions are now ripe targets for Trump to reverse.

BORDER WALL

Trump is expected to sign an executive order in his first few days to direct the building of a wall on the southern border with Mexico, and actions to limit the entry of asylum seekers from Latin America, among several immigration-related steps his advisers have recommended.

That includes rescinding Obama’s order that allowed more than 700,000 people brought into the United States illegally as children to stay in the country on a two-year authorization to work and attend college, according to several people close to the presidential transition team.

It is unlikely Trump’s order will result in an immediate roundup of these immigrants, sources told Reuters. Rather, he is expected to let the authorizations expire.

The issue could set up a confrontation with Obama, who told reporters on Wednesday he would weigh in if he felt the new administration was unfairly targeting those immigrants.

Advisers to Trump expect him to put restrictions on people entering the United States from certain countries until a system for “extreme vetting” for Islamist extremists can be set up.

During his presidential campaign, Trump proposed banning non-American Muslims from entering the United States, but his executive order regarding immigration is expected to be based on nationality rather than religion.

Another proposed executive order would require all Cabinet departments to disclose and pause current work being done in connection with Obama’s initiatives to curb carbon emissions to combat climate change.

Trump also is expected to extend prohibitions on future lobbying imposed on members of his transition team.

‘THE HIGHEST IQ’

Washington was turned into a virtual fortress ahead of the inauguration, with police ready to step in to separate protesters from Trump supporters at any sign of unrest.

As Obama packed up to leave the White House, Trump and his family laid a wreath at the Tomb of the Unknown Soldier in Arlington National Cemetery and attended a concert at the Lincoln Memorial.

Trump spoke earlier to lawmakers and Cabinet nominees at a luncheon in a ballroom at his hotel, down the street from the White House, announcing during brief remarks that he would pick Woody Johnson, owner of the New York Jets of the National Football League, as U.S. ambassador to Britain.

“We have a lot of smart people. I tell you what, one thing we’ve learned, we have by far the highest IQ of any Cabinet ever assembled,” Trump said.

Trump has selected all 21 members of his Cabinet, along with six other key positions requiring Senate confirmation. The Senate is expected on Friday to vote to confirm retired General James Mattis, Trump’s pick to lead the Pentagon, and retired General John Kelly, his homeland security choice.

Senate Republicans had hoped to confirm as many as seven Cabinet members on Friday, but Democrats balked at the pace. Trump spokesman Spicer accused Senate Democrats of “stalling tactics.”

Also in place for Monday will be 536 “beachhead team members” at government agencies, Vice President-elect Mike Pence said, a small portion of the thousands of positions Obama’s appointees will vacate.

Trump has asked 50 Obama staffers in critical posts to stay on until replacements can be found, including Deputy Defense Secretary Robert Work and Brett McGurk, envoy to the U.S.-led coalition fighting Islamic State.

The list includes Adam Szubin, who has long served in an “acting” capacity in the Treasury Department’s top anti-terrorism job because his nomination has been held up by congressional Republicans since Obama named him to the job in April 2015.

The Supreme Court said U.S. Chief Justice John Roberts, who will administer the oath of office on Friday, met with Trump on Thursday to discuss inauguration arrangements.

(Additional reporting by Steve Holland, David Shepardson, Susan Heavey, David Alexander, Doina Chiacu, Ayesha Rascoe, Ginger Gibson, Mike Stone, Emily Stephenson, David Brunnstrom and Lawrence Hurley)

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