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Trump’s offer to Russia: an end to sanctions for nuclear arms cut – London Times

Donald Trump speaking at news conference on Russia foreign policy

By Guy Faulconbridge and William James

LONDON (Reuters) – U.S. President-elect Donald Trump will propose offering to end sanctions imposed on Russia over its annexation of Crimea in return for a nuclear arms reduction deal with Moscow, he told The Times of London.

Criticizing previous U.S. foreign policy in an interview published on Monday, he described the U.S.-led invasion of Iraq in 2003 as possibly the gravest error in the history of the United States and akin to “throwing rocks into a beehive”.

But Trump, who will be inaugurated on Friday as the 45th U.S. president, raised the prospect of the first big nuclear arms control agreement with Moscow since the Strategic Arms Reduction Treaty signed by President Barack Obama in 2010.

“They have sanctions on Russia — let’s see if we can make some good deals with Russia,” the Republican president-elect was quoted as saying by The Times.

“For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it. But Russia’s hurting very badly right now because of sanctions, but I think something can happen that a lot of people are gonna benefit.”

The United States and Russia are by far the world’s biggest nuclear powers. The United States has 1,367 nuclear warheads on deployed strategic missiles and bombers, and Russia has 1,796 such deployed warheads, according to the latest published assessment by the U.S. State Department.

Under the 2010 New START treaty, Russia and the United States agreed to limit the number of long-range, strategic nuclear weapons they can deploy.

Trump has said he will seek to improve relations with Moscow despite criticism that he is too eager to make an ally of Russian President Vladimir Putin.

The United States and other Western powers imposed sanctions on Russia in 2014 over its annexation of the Crimea peninsula from Ukraine and its support for pro-Russia separatists in eastern Ukraine.

Asked whether he would trust German Chancellor Angela Merkel or Putin more, Trump said: “Well, I start off trusting both –but let’s see how long that lasts. It may not last long at all.”

His relations with Moscow have faced renewed scrutiny after an unsubstantiated report that Russia had collected compromising information about Trump.

The information was summarized in a U.S. intelligence report which was presented to Trump and Obama this month.

The report concluded Russia tried to sway the outcome of the Nov. 8 election in Trump’s favor by hacking and other means. It did not make an assessment on whether Russia’s attempts affected the election’s outcome.

Trump accused U.S. intelligence agencies of leaking the information from the unverified dossier, which he called “fake news” and phony stuff.” Intelligence leaders denied the charge and Moscow has dismissed the accusations against it.

RUSSIAN RELATIONS

In the interview with The Times, Trump was also critical of Russia’s intervention in Syria’s civil war which, along with the help of Iran, has tilted the conflict in President Bashar al-Assad’s favor.

“I think it’s a very rough thing,” Trump said of Russian intervention in Syria. “Aleppo has been such a terrible humanitarian situation.”

The war has killed more than 300,000 people, created the world’s worst refugee crisis and aided the rise of the Islamic State militant group.

On NATO, Trump repeated his view that the military alliance was obsolete but said it was still very important for him.

“I took such heat, when I said NATO was obsolete,” Trump told The Times, referring to comments he made during his presidential election campaign. “It’s obsolete because it wasn’t taking care of terror. I took a lot of heat for two days. And then they started saying Trump is right.”

Trump said many NATO member states were not paying their fair share for U.S. protection.

“A lot of these countries aren’t paying what they’re supposed to be paying, which I think is very unfair to the United States,” Trump said. “With that being said, NATO is very important to me. There’s five countries that are paying what they’re supposed to. Five. It’s not much.”

Trump said he would appoint his son-in-law, Jared Kushner, to try to broker a Middle East peace deal, urged Britain to veto any new U.N. Security Council resolution critical of Israel and criticized Obama’s handling of the deal between Iran and six world powers including the United States which curbed Tehran’s nuclear program.

On Britain’s vote to leave the European Union, Trump said: “Brexit is going to end up being a great thing” and said he was eager to get a trade deal done with the United Kingdom.

(Editing by Peter Cooney and Timothy Heritage)

Trump vows ‘insurance for everybody’ in replacing Obamacare

Donald Trump at conference disucssing Obamacare

WASHINGTON (Reuters) – U.S. President-elect Donald Trump aims to replace Obamacare with a plan that would envisage “insurance for everybody,” he said in an interview with the Washington Post published on Sunday night.

Trump did not give the newspaper specifics about his proposals to replace Democratic President Barack Obama’s signature health insurance law, but said the plan was nearly finished and he was ready to unveil it alongside the leaders of the Republican-controlled Congress. The Republican president-elect takes office on Friday.

“It’s very much formulated down to the final strokes. We haven’t put it in quite yet but we’re going to be doing it soon,” Trump told the Post, adding he was waiting for his nominee for health and human services secretary, Tom Price, to be confirmed.

The plan, he said, would include “lower numbers, much lower deductibles,” without elaborating.

“We’re going to have insurance for everybody,” Trump said. “There was a philosophy in some circles that if you can’t pay for it, you don’t get it. That’s not going to happen with us.”

Trump was also quoted as saying in the interview that he would target pharmaceutical companies over drug pricing and insist they negotiate directly with the Medicare and Medicaid government health plans for the elderly and poor.

U.S. House Republicans won passage on Friday of a measure starting the process of dismantling the Affordable Care Act, popularly known as Obamacare, despite concerns about not having a ready replacement and the potential financial cost of repealing the law.

With the vote, Republicans began delivering on their promise to end Obamacare, also a campaign pledge of Trump, who has called the program a “disaster.”

The law, which expanded health coverage to some 20 million people, has been plagued by increases in insurance premiums and deductibles and by some large insurers leaving the system.

Republicans have called Obamacare federal government overreach and have sought to undermine it in Congress and the courts since it was passed by Democratic majorities in the House and Senate in 2010.

Democrats say Obamacare has allowed growing numbers of Americans to get medical insurance and helped slow the rise in healthcare spending.

(Writing by Mary Milliken; Editing by Will Dunham and Peter Cooney)

China will ‘take off the gloves’ if Trump continues on Taiwan, state media warns

Donald Trump at news conference discussing Taiwan relations

By Christian Shepherd

BEIJING (Reuters) – China will “take off the gloves” and take strong action if U.S. President-elect Donald Trump continues to provoke Beijing over Taiwan once he assumes office, two leading state-run newspapers said on Monday.

In an interview with the Wall Street Journal published on Friday, Trump said the “One China” policy was up for negotiation. China’s foreign ministry, in response, said “One China” was the foundation of China-U.S. ties and was non-negotiable.

Trump broke with decades of precedent last month by taking a congratulatory telephone call from Taiwan President Tsai Ing-wen, angering Beijing which sees Taiwan as part of China.

“If Trump is determined to use this gambit in taking office, a period of fierce, damaging interactions will be unavoidable, as Beijing will have no choice but to take off the gloves,” the English-language China Daily said.

The Global Times, an influential state-run tabloid, echoed the China Daily, saying Beijing would take “strong countermeasures” against Trump’s attempt to “impair” the “One China” principle.

“The Chinese mainland will be prompted to speed up Taiwan reunification and mercilessly combat those who advocate Taiwan’s independence,” the paper said in an editorial.

Chinese Foreign Ministry spokeswoman Hua Chunying said the United States was clearly aware of China’s position on “One China”.

“Any person should understand that in this world there are certain things that cannot be traded or bought and sold,” she told a daily news briefing.

“The One China principle is the precondition and political basis for any country having relations with China.”

Hua added, “If anyone attempts to damage the One China principle or if they are under the illusion they can use this as a bargaining chip, they will be opposed by the Chinese government and people.

“In the end it will be like lifting a rock to drop it on one’s own feet,” she said, without elaborating.

TAIWAN MAY BE “SACRIFICED”

The Global Times said Trump’s endorsement of Taiwan was merely a ploy to further his administration’s short term interests, adding: “Taiwan may be sacrificed as a result of this despicable strategy.”

“If you do not beat them until they are bloody and bruised, then they will not retreat,” Yang Yizhou, deputy head of China’s government-run All-China Federation of Taiwan Compatriots, told an academic meeting on cross-straits relations in Beijing on Saturday.

Taiwan independence must “pay a cost” for every step forward taken, “we must use bloodstained facts to show them that the road is blocked,” Yang said, according to a Monday report on the meeting by the official People’s Daily Overseas Edition.

The United States, which switched diplomatic recognition from Taipei to Beijing in 1979, has acknowledged the Chinese position that there is only “One China” and that Taiwan is part of it.

The China Daily said Beijing’s relatively measured response to Trump’s comments in the Wall Street Journal “can only come from a genuine, sincere wish that the less-than-desirable, yet by-and-large manageable, big picture of China-U.S. relations will not be derailed before Trump even enters office”.

But China should not count on the assumption that Trump’s Taiwan moves are “a pre-inauguration bluff, and instead be prepared for him to continue backing his bet”.

“It may be costly. But it will prove a worthy price to pay to make the next U.S. president aware of the special sensitivity, and serious consequences of his Taiwan game,” said the national daily.

(Additional reporting by Ben Blanchard and John Ruwitch; Editing by Michael Perry and Randy Fabi)

Trade tensions, dollar danger cloud economic optimism in Davos

By Noah Barkin

DAVOS, Switzerland (Reuters) – A trade war between the United States and China and a strengthening dollar are among the biggest threats to a brightening global economic outlook, according to leading economists at the World Economic Forum in Davos.

As political leaders, businessmen and bankers converge on the resort in the Swiss Alps this week, they can draw hope from a more benign economic picture and a rally in global stock markets on expectations of major stimulus under a new U.S. administration led by Donald Trump.

The backdrop is brighter than it was a year ago, when concerns about a rapid economic slowdown in China led to what Credit Suisse CEO Tidjane Thiam described at the time as “the worst start to any year on record in financial markets ever”.

“I am more optimistic than last year. If no major political or geopolitical uncertainties materialize and derail the world economy, it might even surprise to the upside in 2017,” Axel Weber, the chairman of Swiss bank UBS <UBSG.S> and a former president of the German Bundesbank, told Reuters.

Still, there are big storm clouds on the horizon.

“It is too early to give the all clear,” Weber continued. “This cyclical upswing hides but does not solve the world’s underlying structural problems, which are excessive debt, over-reliance on monetary policy, and adverse demographic developments.”

Among the biggest concerns for 2017 cited by the half dozen economists interviewed by Reuters was the threat of a U.S.-China trade war, and broader economic tensions, triggered by what they fear could be a more confrontational Trump administration.

Trump is threatening to brand China a currency manipulator and impose heavy tariffs on imports of Chinese goods. Last month he named leading China critic Peter Navarro, author of the book “Death by China”, as a top trade adviser.

“This is the key uncertainty because you don’t know how much the rhetoric is a ploy to get better deals,” said Raghuram Rajan, an economist at the University of Chicago who stepped down as governor of India’s central bank last September.

“I’m worried about the people he is surrounding himself with. If they have a more protectionist world view and believe the reason the U.S. is not doing well is because others are cheating that creates a certain kind of rhetoric that could end up very badly for the world.”

CURRENCY RISKS

Last month, the U.S. Federal Reserve hiked interest rates for just the second time in a decade, a sign that the lengthy period of ultra-loose monetary policy that followed the global financial crisis may be coming to an end.

The World Bank said last week that it expects global growth to accelerate to 2.7 percent this year, up from a post-crisis low of 2.3 percent in 2016, on the back of a pickup in U.S. growth and a recovery in emerging markets fueled by a rise in commodity prices.

A year ago in Davos, both Rajan and Weber warned about the limits of loose monetary policy. But now that the Fed is in tightening mode, a new set of risks has emerged.

One is a further strengthening of the dollar, which is already hovering near 14-year highs against the euro.

A further appreciation could widen the U.S. trade deficit, increasing pressure on Trump to resort to protectionist policies. It could also expose weaknesses in the balance sheets of borrowers outside the United States who have borrowed in dollars but hold domestic currency assets.

In Europe, by contrast, a stronger dollar could add fuel to a solid if unspectacular economic recovery, allowing the European Central Bank to plot an end to its own easy money policies including the bond-buying, or quantitative easing (QE), program it recently extended through to the end of 2017.

While welcome, this would also come with risks, particularly for the peripheral euro zone countries that have come to depend on QE to keep a lid on their borrowing costs.

“Just when you think the euro zone is stable it might turn out not to be,” said Kenneth Rogoff of Harvard University, a former chief economist at the International Monetary Fund (IMF).

“If U.S. interest rates continue to rise and the dollar appreciates against the euro it’s going to start getting very hard for (ECB President) Mario Draghi to tell the story that he’s doing QE to prop up inflation. If he ever slows down on QE, the vulnerabilities of the periphery countries are huge.”

EUROPEAN BANKS

Rajan and Richard Baldwin of the Graduate Institute in Geneva said they viewed European banks as another big risk for the global outlook. Italy agreed last month to inject about 6.6 billion euros into Monte dei Paschi di Siena <BMPS.MI>, but the weakness of other Italian banks and German institutions, including Deutsche Bank <DBKGn.DE>, remain a concern.

However the biggest threat may be political. Were French far-right leader Marine Le Pen, who favors a Brexit-style referendum on France’s EU membership, to deliver a Trump-like surprise in the two-round French election in April and May, doubts about the future of the EU and euro zone will increase.

The chances of that seem slim for now. A poll last week suggested conservative candidate Francois Fillon would beat Le Pen in a runoff by a 63 to 37 percent margin. But after two seismic political shocks in 2016 – Trump and Brexit – no one is counting her out.

“Political surprises may fundamentally alter the currently favorable economic and financial outlook for 2017,” said Weber.

(Reporting by Noah Barkin; Editing by Pravin Char)

U.S. in deal to reform Baltimore police after Freddie Gray death

By Donna Owens

BALTIMORE (Reuters) – The city of Baltimore will enact a series of police reforms including changes in how officers use force and transport prisoners under an agreement with the U.S. Justice Department filed in federal court on Thursday.

The agreement comes almost two years after the death of a black man, Freddie Gray, of injuries sustained while in police custody sparked a day of rioting and arson in the majority-black city. It also led to an investigation that found the city’s police routinely violated residents’ civil rights.

Outgoing U.S. Attorney General Loretta Lynch said the deal, which is subject to a judge’s approval, would be binding even after President-elect Donald Trump is sworn in on Jan. 20.

“The reforms in this consent decree will help ensure effective and constitutional policing, restore the community’s trust in law enforcement, and advance public and officer safety,” Lynch told reporters, flanked by recently elected Mayor Catherine Pugh.

The 227-page consent decree agreement is the result of months of negotiations after a federal report released in August found that the city’s 2,600-member police department routinely violated black residents’ civil rights with strip searches, by excessively using force and other means.

The probe followed the April 2015 death of Gray, 25, who died of injuries sustained in the back of a police van. His was one of a series of high-profile deaths in U.S. cities from Ferguson, Missouri, to North Charleston, South Carolina, that sparked an intense debate about race and justice and fueled the rise of the Black Lives Matter movement.

The Department of Justice is scheduled to release the findings of its investigation into the Chicago Police Department on Friday in the Midwest city, local media reported. In Philadelphia on Friday, a report on reform efforts by the Philadelphia Police Department will be released, according to a statement from the Department of Justice.

Prosecutors brought charges against six officers involved in Gray’s arrest but secured no convictions.

William Murphy Jr., an attorney who represented the Gray family in a civil suit against the city that led to a $6 million settlement, praised the deal.

“Make no mistake, today is a revolution in policing in Baltimore,” Murphy said.

The head of city’s police union was warier, saying his group had not been a part of the negotiations.

“Neither our rank and file members who will be the most affected, nor our attorneys, have had a chance to read the final product,” Gene Ryan, president of the Baltimore Fraternal Order of Police, said in a statement.

City officials said union officials had been involved in talks early on but stopped attending meetings.

(Additional reporting by Timothy McLaughlin in Chicago. Editing by Tom Brown and Andrew Hay)

New North Dakota governor expects controversial pipeline to be built

man holds American flag at Dakota Access Pipeline protest

By Ernest Scheyder

(Reuters) – North Dakota Governor Doug Burgum, who took office last month in the height of tensions surrounding the Dakota Access Pipeline, said he believed the line would eventually be built and asked opponents to clean their protest camp before spring floodwaters create a potential ecological disaster.

A centrist Republican with no prior political experience, Burgum was elected in a landslide on a platform of streamlining government and improving relations across the state. Burgum built a successful software business before selling it to Microsoft Corp <MSFT.O> in 2001.

Burgum told Reuters that approval of the pipeline appeared to be a foregone conclusion once Donald Trump moved into the White House.

“I expect the world’s going to change dramatically on that day relative to finding resolution on this issue,” Burgum said in an interview. “I would expect that (Energy Transfer Partners <ETP.N>) will get its easement and it will go through.”

A coalition of Native American groups, environmentalists, Hollywood stars and veterans of the U.S. armed forces protested the $3.8 billion oil project at a North Dakota camp, which at one point held more than 5,000, though that number has shrunk in size during the winter.

Opponents contend construction would damage sacred lands and any leaks could pollute the water supply of the Standing Rock Sioux tribe.

Last month, President Barack Obama denied a key permit needed to complete the pipeline, but Trump has said he will review that decision.

Local law enforcement have voiced concerns that any reversal by the federal government could cause the area to swell again with protesters, straining resources.

David Archambault, chairman of the Standing Rock Sioux tribe, has repeatedly asked protesters to leave the area and let the pipeline fight play out in courts.

Burgum said he agrees with Archambault and asked protesters to help clean up the camp before it threatens the environment itself. More than 300 vehicles, along with dozens of temporary dwellings and other detritus, have been abandoned at the campsite, which sits in a flood plain that is likely to be overrun by spring rain and snowmelt.

State officials are concerned that floodwaters could carry that material away.

“The amount of cleanup that needs to take place is enormous,” Burgum said. “We’ve got a potential ecological disaster if this land floods and all the debris flows downstream into tribal lands.”

(Reporting by Ernest Scheyder; Editing by Andrew Hay)

China rejects U.S. trade claims, says outlook challenging, complicated

employees stand next to container ship, holding U.S. trade goods

BEIJING (Reuters) – China’s commerce ministry said on Thursday it will “try all methods” to stabilize trade in what it sees as a challenging and complicated trade outlook this year.

Commerce Ministry spokesman Sun Jiwen told a regular briefing in Beijing that China faced weak foreign demand and “intensifying trade protectionism.”

Sun’s comments came as China faces threats from incoming U.S. President Donald Trump to impose heavy import taxes on Chinese goods entering the United States, China’s largest trade partner.

The Commerce Ministry spokesman dismissed the U.S.-China Economic and Security Review Commission’s November 2016 Report to Congress, which accused China of violating global trade rules.

The report said: “China continues to violate the spirit and the letter of its international obligations by pursuing import substitution policies, imposing forced technology transfers, engaging in cyber-enabled theft of intellectual property, and obstructing the free flow of information and commerce.”

Sun insisted China had strictly adhered to World Trade Organization rules.

“The report’s understanding of problems in China-U.S. trade and investment, and the reasons behind it, are different from China’s. China can’t accept it,” Sun said.

“We hope for equal dialogues and cooperation to resolve conflicts.”

(Reporting by Yawen Chen and Michael Martina; Editing by Eric Meijer)

Trump’s CIA nominee includes Russia in list of global challenges

By David Alexander and Jonathan Landay

WASHINGTON (Reuters) – U.S. President-elect Donald Trump’s nominee to head the CIA portrayed multiple challenges facing the United States on Thursday, from an aggressive Russia to a “disruptive” Iran to a China that he said is creating “real tensions.”

Diverging from Trump’s stated aim of seeking closer ties with Russia, Pompeo said that Russia is “asserting itself aggressively” by invading and occupying Ukraine, threatening Europe, and “doing nearly nothing” to destroy Islamic State.

Mike Pompeo, a Republican member of the House of Representatives and a former U.S. Army officer, was speaking at the start of his confirmation hearing in the U.S. Senate.

In his prepared opening statement, Pompeo noted that the CIA does not make policy on any country, adding, “it is a policy decision as to what to do with Russia, but it will be essential that the Agency provide policymakers with accurate intelligence and clear-eyed analysis of Russian activities.”

His testimony came at a time when Trump, a Republican who takes office on Jan. 20, has openly feuded with U.S. intelligence agencies.

For weeks, the president-elect questioned the intelligence agencies’ conclusion that Russia used hacking and other tactics to try to tilt the 2016 presidential election in his favor. Trump said on Wednesday that Russia was behind the hacking but that other countries were hacking the United States as well.

This week, Trump furiously denounced intelligence officials for what he said were leaks to the media by intelligence agencies of a dossier that makes unverified, salacious allegations about his contacts in Russia.

Pompeo, a conservative lawmaker from Kansas who is on the House Intelligence Committee, listed challenges facing the United States, saying “this is the most complicated threat environment the United States has faced in recent memory.”

This included what he called a “resilient” Islamic State and the fallout from Syria’s long civil war.

Pompeo also included North Korea, which he said had “dangerously accelerated its nuclear and ballistic missile capabilities.” He said China was creating “real tensions” with its activities in the South China Sea and in cyberspace as it flexed its muscles and expanded its military and economic reach.

He called Iran an “emboldened, disruptive player in the Middle East, fueling tensions” with Sunni Muslim allies of the United States.

(Writing by Frances Kerry; Editing by Howard Goller)

U.S. Senate approves measure launching Obamacare repeal process

The federal government forms for applying for health coverage are seen at a rally held by supporters of the Affordable Care Act, widely referred to as "Obamacare", outside the Jackson-Hinds Comprehensive Health Center in Jackson, Mississippi, U.S

By Susan Cornwell

WASHINGTON (Reuters) – The U.S. Senate on Thursday took a first concrete step toward dismantling Obamacare, voting to instruct key committees to draft legislation repealing President Barack Obama’s signature health insurance program.

The resolution, passed in the early hours of Thursday in a 51-48 vote, now goes to the House of Representatives, which is expected to vote on it this week. Scrapping Obamacare is a top priority for Republican President-elect Donald Trump and the Republican majorities in both chambers.

Republicans have said the process of repealing Obamacare could take months, and developing a replacement plan could take longer. But they are under pressure from Trump to act fast after he said on Wednesday that the repeal and replacement should happen “essentially simultaneously.”

Some 20 million previously uninsured Americans gained health coverage through the Affordable Care Act, as Obamacare is officially called. Coverage was extended by expanding Medicaid and through online exchanges where consumers can receive income-based subsidies.

Republicans have launched repeated legal and legislative efforts to unravel the law, criticizing it as government overreach. They say they want to replace it by giving states, not the federal government, more control.

But in recent days some Republicans have expressed concern about the party’s current strategy of voting for a repeal without having a consensus replacement plan ready.

House Speaker Paul Ryan said this week he wants to pack as many replacement provisions as possible into the legislation repealing Obamacare. But Senate Finance Committee Chairman Orrin Hatch, also a Republican, said that could be difficult under Senate rules.

The resolution approved Thursday instructs committees of the House and Senate to draft repeal legislation by Jan. 27. Both chambers will then need to approve the resulting legislation before any repeal goes into effect.

Senate Republicans are using special budget procedures that allow them to repeal Obamacare by a simple majority so that they will not need Democratic votes. Republicans have 52 votes in the 100-seat Senate. One Republican, Senator Rand Paul, voted no on Thursday.

Democrats mocked the Republican effort, saying Republicans have never united around an alternative to Obamacare. “They want to kill ACA but they have no idea how they are going to bring forth a substitute proposal,” said Senator Bernie Sanders of Vermont, an independent who caucuses with the Democrats.

On Wednesday, Trump said he would submit a replacement plan as soon as his nominee to lead the Health and Human Services Department, Representative Tom Price, is approved by the Senate. Trump gave no details.

Trump senior adviser Kellyanne Conway praised lawmakers for clearing the way for repeal and said the replacement effort will likely tackle medication costs.

“To repeal and replace Obamacare and not have a conversation about drug pricing seems not like a very reasonable prospect and not (a) responsible prospect,” Conway told Bloomberg Television on Thursday, one day after Trump targeted the pharmaceutical industry, a traditional Republican ally.

Democrats passed the Affordable Care Act in 2010 over united Republican opposition. Democrats say the act is insuring more Americans and helping to slow the growth in healthcare spending.

But Republicans say the system is not working. The average Obamacare premium is set to rise 25 percent in 2017.

(Reporting by Susan Cornwell; Additional reporting by Susan Heavey; Editing by Nick Macfie and Bill Trott)

Global stocks and dollar firmer as Trump news conference approaches

By Vikram Subhedar

LONDON (Reuters) – World stocks and the dollar rose before a news conference by U.S. President-elect Donald Trump in which he is expected to give more details about his plans for the U.S. economy.

Trump’s campaign calls for tax cuts and more infrastructure spending have boosted U.S. shares and the dollar, but his protectionist statements and a flurry of off-the-cuff Tweets have kept many investors from adding to risky positions.

The UK’s FTSE 100 was poised for a record twelfth straight day of gains while European shares rose 0.2 percent.

Stock futures on Wall Street were 0.1 percent firmer though the post-U.S. election rally is showing signs of running out of steam.

Trump has vowed to label China a currency manipulator on his first day in office on Jan. 20 and has threatened to slap huge tariffs on imports from China.

U.S. House of Representatives Speaker Paul Ryan and top members of Trump’s transition team are discussing a controversial plan to tax imports.

Economists have warned that protectionist measures could stifle international trade and hurt global growth.

That brings Trump’s press conference, scheduled for 11:00 EST, into sharp focus.

“From a currency perspective, markets will aim to get a clearer picture on trade, fiscal stimulus and the new administration’s relationship to the Fed,” Morgan Stanley strategists wrote in a note to clients.

The dollar inched higher against the yen on Wednesday but was 0.4 percent firmer against the basket of currencies used to measure its broader strength.

The dollar has gained broadly since Trump’s election in November as investors bet he would boost public spending and spur repatriation of overseas funds by U.S. companies as well as higher inflation and interest rates.

But more doubts have emerged in recent weeks about that narrative, and investors will have a close eye on what the new president says about trade and relations with China.

Bank of America-Merrill Lynch strategists warned on Wednesday that a worrying consensus has developed in financial markets with analysts and investors overwhelmingly bearish on bonds and positive on developed market stocks, financials and the U.S. dollar.

Sterling meanwhile edged towards a 10-week low against the dollar on Wednesday, kept under pressure by fears that Britain will undergo a “hard” exit from the EU in which access to the single market will play second fiddle to immigration controls.

The Turkish lira fell to new lows despite efforts by the country’s central bank to support it with pressures piling on the economy.

An auction of German debt was expected to go down well with investors looking for safe havens. Portuguese yields held near 11-month highs as the country prepared for its toughest bond sale in years.

In commodity markets, oil rose, lifted by reports of Saudi supply cuts to Asia, but gains were capped by a lack of detail about the reductions and because of signs of rising supplies from other producers.

Prices for Brent futures LCOc1, the international benchmark for oil prices, were trading at $53.94 per barrel at 1200 GMT, up 30 cents from their previous close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $51.11 a barrel, up 29 cents.

(Editing by Hugh Lawson and Toby Chopra)

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