U.S. says foreign meddling didn’t affect 2018 election systems

People fill out their ballots during the midterm election at Philomont Fire Station, in Purcellville, Virginia, U.S., November 6, 2018. REUTERS/Al Drago

By Andy Sullivan

WASHINGTON (Reuters) – Top U.S. officials said on Tuesday that foreign actors did not have a significant impact on computer systems and other equipment underpinning the November, 2018 congressional elections, despite reports of hacking attempts.

The statement by the U.S. Department of Justice and the U.S. Department of Homeland Security contrasted with U.S. officials’ view that the 2016 presidential election was the target of a sophisticated Russian hacking and propaganda campaign to help Republican Donald Trump defeat Democrat Hilary Clinton.

The two agencies said the U.S. government has found no evidence that foreign governments or agents had an impact last November, when Democrats won control of the House of Representatives.

Neither political campaigns nor electronic voting machines or other infrastructure was significantly affected, they said in a joint statement. They declined to provide further details.

U.S. prosecutors are investigating whether President Donald Trump’s campaign worked with the Kremlin to win the 2016 election. Trump has denied any collusion, and Moscow has also denied involvement.

Security experts have warned for years that U.S. election infrastructure — voting machines, voter registries and other computer systems — could be manipulated to change vote tallies or prevent people from casting ballots.

The 2016 election also illustrated how hackers can compromise candidates by releasing internal emails and other sensitive documents, and by working to sway public opinion through social media.

Ahead of the November 2018 election, U.S. intelligence and law enforcement officials warned that foreign actors were continuing their manipulation efforts. Prosecutors charged a Russian national with participating in a Kremlin-backed plan to interfere in the election.

Some state and local governments reported attempts to access their networks ahead of the November 2018 election, but U.S. officials said they were able to prevent or limit access.

On the night of the Nov. 6 election, Homeland Security Secretary Kirstjen Nielsen said there were no signs that voting systems had been breached.

The National Republican Congressional Committee, which works to elect Republican candidates, said it was the target of a hacking attempt last year. Democratic Senator Joe Manchin, running for re-election in West Virginia, also said his social-media accounts had been hacked.

U.S. intelligence officials warned last week that Russia and China are already targeting the 2020 presidential election.

(Editing by Mohammad Zargham and David Gregorio)

Israel to hold early election in April: Netanyahu spokesman

By Jeffrey Heller

JERUSALEM (Reuters) – Israel will hold an early general election in April, a spokesman for Prime Minister Benjamin Netanyahu said on Monday, after members of his governing coalition met to discuss differences over legislation.

“The leaders of the coalition decided unanimously to dissolve parliament and go to a new election in early April,” the spokesman wrote on Twitter, quoting from a statement issued by Netanyahu’s political partners.

A coalition crisis over a military conscription bill affecting exemptions from compulsory service for ultra-Orthodox Jewish men led to the decision.

Netanyahu, now in his fourth term as prime minister, has been governing with a razor-thin majority of 61 seats in the 120-member parliament. He heads the right-wing Likud party.

Under Israeli law, a national election had to be held by November 2019. Netanyahu’s government would remain in place until a new one is sworn in, after the April poll.

A series of corruption probes against Netanyahu and pending decisions by Israel’s attorney general on whether to follow police recommendations to indict him had raised speculation he would opt to seek a public show of confidence at the ballot box.

Netanyahu has denied any wrongdoing in the cases and has given no indication he will step down if charged.

The 69-year-old Israeli leader made no immediate comment after his meeting with the coalition leaders. Recent opinion polls have shown his popularity remains strong among Israelis.

The likelihood of an early election increased in November after Netanyahu’s defense minister, Avigdor Lieberman, quit the government, leaving the ruling coalition with its one-seat majority.

No one in Netanyahu’s Likud has made a public challenge against him, and the party is expected to close ranks around him in the coming election.

Outside Likud, Yair Lapid, head of the centrist Yesh Atid opposition party, is seen as the strongest candidate to succeed Netanyahu in any upset. Lapid’s party is second to Likud in opinion polls.

Israel’s former army chief, Benny Gantz, is seen as a dovish potential candidate who could tip the balance in favor of a center-left bloc, but has not yet thrown his hat in the ring.

On the right, Lieberman and Naftali Bennett, head of the Jewish Home party, could both seek to lead a right-wing bloc if Likud emerges in a weaker position in an election.

Netanyahu first led Israel from 1996 to 1999, and returned in 2009. His current government has been in power since May 2015.

(Reporting by Jeffrey Heller; editing by Andrew Roche)

Forget gridlock, Republican win may be better for stock market

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., November 1, 2018. REUTERS/Brendan McDermid

By Noel Randewich

SAN FRANCISCO (Reuters) – U.S. President Donald Trump has warned that his favorite measure of success, the stock market, is imperiled if voters favor Democrats in next week’s congressional elections.

While not fully accurate – stocks tend to rise regardless of who controls the government – it does bear out that the market has delivered a slightly stronger performance on average when Republicans dominate in Washington.

A Reuters analysis of the past half-century shows stocks fared better in the two calendar years after congressional elections when Republicans control Congress and the presidency than when Democrats controlled the two branches, and at least as well as during times of gridlock. Many investors are now hoping for a continuation of the Republican agenda.

“There is Trump ‘the person’, who is very controversial,” said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco. “And there’s also Trump ‘the agenda’. The Trump agenda, the stock market loves. To the extent it continues, the market will like that.”

Republicans traditionally push pro-business policies such as tax cuts and deregulation, which boost stock prices. The market has, on the whole, given Trump a thumbs-up, with the market rising almost 20 percent during his presidency so far.

Polls show strong chances that the Democratic Party may win control of the House of Representatives in the Nov. 6 midterm elections after two years of wielding no practical political power in Washington, with Republicans likely to keep the Senate.

Trump warned in a tweet on Tuesday that a change in Congress would be bad for the market, saying: “If you want your Stocks to go down, I strongly suggest voting Democrat.”

Investors often favor Washington gridlock because it preserves the status quo and reduces uncertainty.

“Traditionally, gridlock is good for the markets. But I think this election is very tricky; I’m not sure that’s the preferred market outcome because a lot of the benefits of the past two years have come from not being in a gridlock environment,” said Mike O’Rourke, Chief Market Strategist at JonesTrading.

Should his fellow Republicans maintain or extend their grip on Congress, Trump may be emboldened to pursue more of his political agenda, including further tax overhauls.

By contrast, Democratic gains that allow the party to control the House of Representatives, and possibly the Senate, could stifle Trump’s policy aims and perhaps lead to attempts to impeach him. It could also lead to resistance to increasing the government’s debt limit next year.

“Our economists believe that two likely consequences of a divided Congress would be an increase in investigations and uncertainty surrounding fiscal deadlines, which could raise equity volatility,” Goldman Sachs said in a report this week.

Over the past 50 years, gridlock has been the norm rather than the exception in Washington, with the presidency and Congress won by one party in just seven out of 25 congressional election year.

Looking at the two calendar years following each congressional election, the S&P 500 had a mean annual increase of 12 percent under Republican-controlled governments, compared to an increase of 9 percent for Democrat-controlled governments and a 7 percent rise for gridlocked governments.

However, using median averages, which exclude outliers, differences are less clear, with the S&P 500 seeing annual increases of 11 percent under Republican-controlled governments and under gridlock, and 10 percent gains under Democrat-controlled governments.

An analysis by BTIG brokerage of data going back to 1928 also indicates gridlock is not necessarily ideal. It showed U.S. stocks performing better under united governments.

“While government control is by no means the sole determinant of market performance, investors clearly favor a unified regime,” BTIG strategist Julian Emanuel wrote in his report.

Interest rates, economic growth, company earnings and inflation are widely viewed as strong influences on stock prices, making the balance of power in Washington just one of many factors affecting investor sentiment.

Two Democratic presidents – Bill Clinton and Barack Obama – have presided over the strongest S&P 500 performances http://tmsnrt.rs/2jtEpzi since 1952, with gains of 208 percent and 166 percent, respectively.

Wall Street has applauded Trump since he took power in January 2017 and quickly pushed through measures to deregulate banks and other companies. Last December, his Republican party passed sweeping corporate tax cuts that have S&P 500 companies on track this year to grow their earnings per share by over 20 percent, the biggest jump since 2010, according to Refinitiv IBES data.

“Volatility may rise regardless of the outcome, but, based on historical relationships, equities may be more likely to rise if Republicans manage to maintain control of Congress,” Deutsche Bank said in a recent report.

(Reporting by Noel Randewich; Editing by James Dalgleish)

Facebook says it uncovers new meddling before 2018 U.S. elections

FILE PHOTO: Facebook logo is seen at a start-up companies gathering at Paris' Station F in Paris, France on January 17, 2017. REUTERS/Philippe Wojazer/File Photo

By Joseph Menn and Paresh Dave

(Reuters) – Facebook Inc has identified a new coordinated political influence campaign to mislead users and organize rallies ahead of November’s U.S. congressional elections, taking down dozens of fake accounts on its site, the company said on Tuesday.

A Russian propaganda arm tried to tamper in the 2016 U.S. election by posting and buying ads on Facebook, according to the company and U.S. intelligence agencies. Moscow has denied involvement.

Facebook on Tuesday said they had removed 32 pages and accounts from Facebook and Instagram, part of an effort to combat foreign meddling in U.S. elections, attempts that lawmakers have called dangerous for democracy.

The company said it was still in the early stages of its investigation and did not yet know who may be behind the influence campaign for 2018 elections that will determine whether or not the Republican Party keeps control of Congress.

Chief Operating Officer Sheryl Sandberg said on a call with reporters that the attempts to manipulate public opinion would likely become more sophisticated to evade Facebook’s scrutiny, calling it an “arms race.”

“This kind of behavior is not allowed on Facebook because we don’t want people or organizations creating networks of accounts to mislead others about who they are, or what they’re doing,” the company said in a blogpost.

More than 290,000 accounts followed at least one of the pages and that about $11,000 had been spent on about 150 ads, Facebook said. The pages had created about 30 events since May 2017.

Facebook for months has been on the defensive about influence activity on its site and concerns over user privacy tied to longstanding agreements with developers that allowed them access to private user data.

DIVISIVE ISSUES

Facebook identified influence activity around at least two issues, including a counter-protest to a “Unite the Right II” rally set next week in Washington. The other was the #AbolishICE social media campaign aimed at the U.S. Immigration and Customs Enforcement agency.

In the blog post, Facebook said it was revealing the influence effort now in part because of the rally. A previous event last year in Charlottesville, South Carolina, led to violence by white supremacists.

Facebook said it would tell users who had expressed interest in the counter-protest what action it had taken and why.

Facebook officials on a call with reporters said that one known account from Russia’s Internet Research Agency was a co-administrator of one of the fake pages for seven minutes, but the company did not believe that was enough evidence to attribute the campaign to the Russian government.

The company previously had said 126 million Americans may have seen Russian-backed political content on Facebook over a two-year period, and that 16 million may have been exposed to Russian information on Instagram.

Adam Schiff, the top Democrat on the U.S. House of Representatives Intelligence Committee, in a statement urged Facebook to move against foreign groups trying to sway American voters and to warn legitimate users that such activity, as seen in 2016, is recurring this year.

“Today’s announcement from Facebook demonstrates what we’ve long feared: that malicious foreign actors bearing the hallmarks of previously-identified Russian influence campaigns continue to abuse and weaponize social media platforms to influence the U.S. electorate,” Schiff said.

Senate Intelligence Committee Chairman Richard Burr, a Republican, said in a statement there would be a hearing on Wednesday about the online threat to U.S. election security.

Burr said the goal of influence operations “is to sow discord, distrust, and division in an attempt to undermine public faith in our institutions and our political system. The Russians want a weak America.”

Washington imposed punitive sanctions on Russia following U.S. intelligence agency conclusions that Moscow interfered to undermine the 2016 U.S. elections, one of the reasons U.S.-Russian relations are at a post-Cold War low. Both U.S. President Donald Trump and Russian President Vladimir Putin have said, however, that they want to improve ties between the two nuclear powers.

Facebook disclosed in September that Russians under fake names had used the social network to try to influence U.S. voters in the months before and after the 2016 election, writing about divisive issues, setting up events and buying ads.

U.S. intelligence agencies said Russian state operators ran the campaign combining fake social media posts and hacking into Democratic Party networks, eventually becoming an effort to help Republican candidate Trump, who scored a surprise victory over Democrat Hillary Clinton.

Over the past several months, the company has taken steps meant to reassure U.S. and European lawmakers that further regulation is unnecessary. Chief Executive Officer Mark Zuckerberg says the company has 20,000 people working to police and protect the site.

Costs associated with that effort are part of the reason Facebook said last week that it expects its profit margins to decline, a warning that sent shares tumbling about 25 percent, the biggest one-day loss of market cap in U.S. stock market history. Shares of Facebook were up about 1.5 percent in Tuesday’s midafternoon trading, part of a broader tech rebound.

(Joseph Menn and Paresh Dave in San Francisco; additional reporting by Munsif Vengattil in Bengaluru, Kevin Drawbaugh in Washington; writing by Peter Henderson; Editing by Saumyadeb Chakrabarty and Grant McCool)

Counting begins in knife-edge Pakistani elections marred by suicide bomb

Women, clad in burqas, stand in line to cast their ballot at a polling station during general election in Peshawar, Pakistan July 25, 2018. REUTERS/Fayaz Aziz

By Gul Yousafzai Jibran Ahmad

QUETTA/PESHAWAR, Pakistan (Reuters) – A suicide bomber killed at least 29 people near a polling center as Pakistanis voted on Wednesday in a knife-edge general election pitting cricket hero Imran Khan against the party of jailed ex-Prime Minister Nawaz Sharif.

Neither Khan nor Sharif is likely to win a clear majority in the too-close-to-call election, with results likely to be known by around 2 a.m. local time on Thursday (2100 GMT Wednesday).

The Islamic State militant group claimed responsibility for the attack that hospital officials said killed 29 people and wounded 35 in the western city of Quetta. Security sources said the bomber drove his motorcycle into a police vehicle.

About 106 million people were registered to vote in polls which closed at 6 p.m (1300 GMT).

Sharif’s party had called for voting to be extended by an hour, saying people were still lining up and could be turned away without casting ballots. TV channels said election officials denied the request.

About 371,000 soldiers have been stationed at polling stations across the country, nearly five times the number deployed at the last election in 2013.

(GRAPHIC: Pakistan Election – https://tmsnrt.rs/2LaIlGt)

Earlier this month, a suicide bomber killed 149 people at an election rally in the town of Mastung in Baluchistan province. That attack was also claimed by Islamic State militants.

Security officers gather at the site of a blast outside a polling station in Quetta, Pakistan, July 25, 2018. REUTERS/Naseer Ahmed

Security officers gather at the site of a blast outside a polling station in Quetta, Pakistan, July 25, 2018. REUTERS/Naseer Ahmed

Khan has emerged as a slight favorite in national opinion polls, but the divisive race is likely to come down to Punjab, the country’s most populous province, where Sharif’s party has clung to its lead in recent surveys.

The election has been plagued by allegations the powerful armed forces have been trying to tilt the race in Khan’s favor after falling out with the outgoing ruling party of Sharif, who was jailed on corruption charges this month.

“Imran Khan is the only ‎hope to change the destiny of our country. We are here to support him in his fight against corruption,” said Tufail Aziz, 31, after casting his ballot in the north-western city of Peshawar.

ANTI-CORRUPTION CRUSADER

Whichever party wins, it will face a mounting and urgent in-tray, from a brewing economic crisis to worsening relations with on-off ally the United States to deepening cross-country water shortages.

An anti-corruption crusader, Khan has promised an “Islamic welfare state” and cast his populist campaign as a battle to topple a predatory political elite hindering development in the impoverished mostly-Muslim nation of 208 million people, where the illiteracy rate hovers above 40 percent.

“This is the most important election in Pakistan’s history,” Khan, 65, said after casting his vote in the capital, Islamabad.

“I ask everyone today – be a citizen, cherish this country, worry about this country, use your vote.”

Khan has staunchly denied allegations by Sharif’s Pakistan Muslim League-Nawaz (PML-N) party that he is getting help from the military, which has ruled Pakistan for about half of its history and still sets key security and foreign policy in the nuclear-armed nation. The army has also dismissed allegations of meddling in the election.

People stand in a line as they wait for a polling station to open, during general election in Rawalpindi, Pakistan July 25, 2018. REUTERS/Faisal Mahmood

People stand in a line as they wait for a polling station to open, during general election in Rawalpindi, Pakistan July 25, 2018. REUTERS/Faisal Mahmood

STRUGGLE TO WIN

Khan’s Pakistan Tehreek-e-Insaf (PTI) party has inched ahead of PML-N in recent national polls, but even if it gets the most votes, it will likely struggle to win a majority of the 272 elected seats in the National Assembly, raising the prospect of weeks of haggling to form a messy coalition government.

Such a delay could further imperil Pakistan’s economy, with a looming currency crisis expected to force the new government to turn to the International Monetary Fund for Pakistan’s second bailout since 2013. PTI has not ruled out seeking assistance from China, Islamabad’s closest ally.

Sharif’s PML-N has sought to turn the vote into a referendum on Pakistan’s democracy and has said it was campaigning to protect the “sanctity of the vote”, a reference to a history of political interference by the military.

“I voted for PML-N because of Nawaz Sharif’s struggle for the rule of constitution and supremacy of the parliament,” said Punjab voter Muhamad Waseem Shahzad, 41, a farmer. “We want to get rid of the system that steals peoples’ mandate.”

The Pakistan Peoples Party (PPP), which has been overtaken by Khan’s PTI as the main challenger to PML-N, has also alleged intimidation by spy agencies.

Sharif’s PML-N has been touting its delivery of mega infrastructure projects, especially roads and power stations that helped hugely reduce electricity blackouts, as proof the country is on the path to prosperity.

“If we get the opportunity, we will change the destiny of Pakistan,” said Shehbaz Sharif, brother of Nawaz and the PML-N president, as he cast his vote in Lahore. “We will bring an end to unemployment, eradicate poverty and promote education”.

PML-N’s campaign was reinvigorated by the return to Pakistan of Nawaz Sharif, 68, who was earlier this month convicted and sentenced in absentia to 10 years in prison over the purchase of upscale London apartments using offshore companies in the mid-1990s. He has denied any wrongdoing.

The election will be only the second civilian transfer of power in Pakistan’s 71-year history.

(Additional reporting by Syed Raza Hassan in Karachi and Mubasher Bukhari in Lahore; Writing by Drazen Jorgic; Editing by Alex Richardson and Raju Gopalakrishnan)

After re-election, Venezuela’s Maduro faces overseas condemnation

Venezuela's President Nicolas Maduro raises a finger as he is surrounded by supporters while speaking during a gathering after the results of the election were released, outside of the Miraflores Palace in Caracas, Venezuela, May 20, 2018. REUTERS/Carlos Garcia Rawlins

By Alexandra Ulmer and Vivian Sequera

CARACAS (Reuters) – Venezuela’s socialist President Nicolas Maduro faced international condemnation on Monday after his re-election in a vote foes denounced as a farce that cemented autocracy in the crisis-stricken oil-producing nation.

Maduro, 55, hailed his win in Sunday’s vote as a victory against “imperialism,” but his main rival alleged irregularities and refused to recognize the result.

Venezuela’s mainstream opposition boycotted the election, given that two of its most popular leaders were barred from running, authorities had banned the coalition and various of its parties from using their names, and the election board is run by Maduro loyalists. Turnout was under 50 percent.

Thousands of Maduro supporters, many wearing red berets, hugged and danced outside the Miraflores presidential palace, showered in confetti in the yellow, blue and red colors of the Venezuelan national flag.

“The revolution is here to stay!” a jubilant Maduro told the crowd, promising to prioritize economic recovery after five years of recession in the OPEC nation of 30 million people.

“Let’s go, Nico!” his supporters chanted until after midnight during party scenes in downtown Caracas.

“We mustn’t cave to any empire, or go running to the International Monetary Fund as Argentina did. The opposition must leave us alone to govern,” said government supporter Ingrid Sequera, 51. She wore a T-shirt with a logo featuring the eyes of Maduro’s socialist predecessor, the late Hugo Chavez.

Senior U.S. State Department officials declared Sunday’s vote a “sham” and repeated threats to impose sanctions on Venezuela’s all-important oil sector, which is already reeling from falling output, a brain-drain and creaking infrastructure.

Spain, which has led European Union criticism of Maduro, also weighed in. “Venezuela’s electoral process has not respected the most basic democratic standards. Spain and its European partners will study appropriate measures and continue to work to alleviate Venezuelans’ suffering,” tweeted Prime Minister Mariano Rajoy.

In a blistering statement, the 14-nation “Lima Group” of countries in the Americas from Canada to Brazil, said it did not recognize the legitimacy of the vote and would be downgrading diplomatic relations.

The group deplored Venezuela’s “grave humanitarian situation” behind a migrant exodus, and promised to help coordinate with international financial bodies to crack down on corruption and block loans to the government.

However, regional leftist allies of Venezuela, from Cuba to Bolivia, sent their congratulations. China and Russia, which have both poured money into Venezuela in recent years, were also unlikely to join in the international condemnation.

‘TRAGIC CYCLE’ FOR VENEZUELA

The election board said Maduro won 5.8 million votes, versus 1.8 million for his chief challenger Henri Falcon, a former governor who broke with the opposition boycott to stand.

Turnout was 46 percent, the election board said, way down from the 80 percent at the last presidential vote in 2013. Suggesting turnout was even lower, an electoral board source told Reuters 32.3 percent of eligible voters cast ballots by 6 p.m. (2200 GMT) as most polls shut.

The government used ample state resources during the campaign and state workers were pressured to vote.

Falcon called for a new vote, complaining about the government’s placing of nearly 13,000 pro-government stands called “red spots” close to polling stations nationwide.

Mainly poor Venezuelans lined up to scan state-issued “fatherland cards” at red tents after voting, in hope of receiving a “prize” promised by Maduro.

The “fatherland cards” are required to receive benefits including food boxes and money transfers.

Some anti-government activists said the opposition coalition should have fielded a candidate regardless of how uneven the playing field might be. But the opposition coalition, which has been divided for most of the duration of the ‘Chavismo’ movement founded by Chavez after he took office in 1999, appeared united after the vote and said its boycott strategy had paid off.

“I implore Venezuelans not to become demoralized, today Maduro is weaker than ever before. We’re in the final phase of a tragic cycle for our country. The fraud has been exposed and today the world will reject it,” tweeted opposition leader Julio Borges.

It was not yet clear what strategy the opposition would now adopt, but major protests seem unlikely given widespread disillusionment and fatigue. Caracas was calm and many of its streets were empty on Monday morning.

Protesters did, however, barricade some streets in the southern city of Puerto Ordaz, drawing teargas from National Guard soldiers, witnesses said.

ECONOMIC PRESSURES

Maduro, who faces a colossal task turning around Venezuela’s moribund economy, has offered no specifics on changes to two decades of state-led policies. The bolivar currency is down 99 percent over the past year and inflation is at an annual 14,000 percent, according to the National Assembly.

Furthermore, Venezuela’s multiple creditors are considering accelerating claims on unpaid foreign debt, while oil major ConocoPhillips has been taking aggressive action in recent weeks against state oil company PDVSA, as part of its claim for compensation over a 2007 nationalization of its assets in Venezuela.

Though increasingly shunned in the West, Maduro can at least count on the support of China and Russia, which have provided billions of dollars’ funding in recent years.

In Beijing, foreign ministry spokesman Lu Kang said China believed the Venezuelan government and people could handle their own affairs and that everyone should respect the choice of the Venezuelan people.

Asked if China had sent congratulations to Maduro, he said China would “handle this in accordance with diplomatic convention,” but did not elaborate.

 

 

(Reporting by Aexandra Ulmer and Vivian Sequera in Caracas; Additional reporting by Maria Ramirez in Ciudad Guayana; Luc Cohen in Caracas; Felipe Iturrieta in Santiago; Marco Aquino in Lima; and Ben Blanchard in Beijing; Writing by Angus Berwick and Alexandra Ulmer; Editing by Andrew Cawthorne and Frances Kerry)

A Venezuelan paradox: Maduro’s critics long for change but won’t vote

A motorcycle passes graffiti painted on a fence in Caracas, Venezuela May 12, 2018. Graffiti reads: "Do not vote, please I beg you". Picture taken on May 12, 2018. REUTERS/Carlos Jasso

By Brian Ellsworth

CARACAS (Reuters) – Months before Venezuela’s opposition coalition called for abstention in Sunday’s presidential election, college student Ana Romano had already decided not to vote.

While volunteering as a witness in October’s election for state governors, Romano said, she lost count of the number of times activists for the ruling Socialist Party walked into voting booths on the pretext of “assisting” voters – a tactic the opposition says is illegal intimidation.

Romano said pro-government workers at the voting center in the rural state of Portuguesa also refused to close its doors at 6:00 p.m. as per regulations, keeping it open for an extra hour while Socialist Party cadres rounded up votes.

Her experience illustrates why some in Venezuela’s opposition say they will boycott Sunday’s presidential vote despite anger at the South American nation’s unraveling under unpopular President Nicolas Maduro.

“It was four of them against me and I was 20 years old: I couldn’t do anything,” Romano said, adding that she did not file an official report because the other poll center workers would not have signed it – and because there was no paper available to do so.

“I don’t want to have anything to do with this upcoming election,” Romano said. “We’ve already made that mistake.”

Reuters could not independently verify details of her account. Venezuela’s National Electoral Council – the government body in charge of organizing elections – did not respond to phone calls seeking comment.

Venezuela, a once-wealthy OPEC nation, is suffering hyperinflation and widespread food shortages as its economy collapses, leading hundreds of thousands to flee into neighboring countries.

Yet, despite popularity ratings languishing around 20 percent, Maduro is expected to secure a second, six-year term in his deeply divided country, in part due to low opposition turnout.

Some opposition members say participation would be pointless in the face of efforts to tilt the playing field in favor of Maduro, a former union leader who was elected in 2013 after the death of his mentor, late socialist leader Hugo Chavez.

They cite tactics ranging from the kind of small-scale election-center tricks described by Romano to the detention of the most prominent opposition leader Leopoldo Lopez, the coercion of government workers to vote for Maduro and the heavy use of state resources in his campaign.

Many in the opposition say there are inadequate guarantees of a free and fair vote: they point to a ban on Western election observers. The government says they would violate its national sovereignty.

The Venezuelan Electoral Observatory, an independent local election monitoring group, has also flagged problems that include an inadequate timeframe to update the electoral register and develop a network of poll center witnesses, and a reduction in real-time audits of results.

Washington, which has imposed sanctions on Maduro’s government, has said it will not recognize the results of Sunday’s vote.

Breaking the opposition boycott is former state governor Henri Falcon. Opposition leaders have attacked Falcon – a former Chavez ally or ‘Chavista’ – as a stooge who is only running to legitimize Maduro’s reelection.

Falcon, an ex-soldier and two-time governor of Lara state, counters that they are ceding power to Maduro without a fight and insists he would win if discontented Venezuelans turned out to vote.

“So now I’m a ‘Chavista’ just because I have common sense, because I take a clear position and because I act responsibly toward my country?” Falcon said when asked recently by reporters about the opposition’s criticism.

Falcon’s camp was not immediately available for comment for this story.

Maduro and allies deny the elections are unfair and insist the fractured opposition was beaten in October because its voters did not participate – an argument supported by statistics showing low turnout in its strongholds.

“We have an advantage, which is the strength of the people. That can’t be called an unfair advantage,” Maduro said last month.

Participation forecasts vary but, in general, pollsters believe turnout for Sunday’s vote will be far lower than the 80 percent in the last presidential elections in 2013, when Maduro narrowly defeated opposition candidate Henrique Capriles, who is banned from running this time.

One survey by respected pollster Datanalisis showed that the number of people who said they were “very likely” to vote – its most accurate indicator of how many people will participate – had fallen close to 30 percent in March.

In the Caracas slum of La Vega, Jose Vasquez, 49, described the election as too unfair to warrant participation.

“It’s like a game in which the referee is a family member of the other team’s captain,” said Vasquez, selling 40 gram (1 oz) bags of coffee and sugar on a small table in the street. “Why would I waste my time?

ELECTORAL OBSTACLE COURSE

During his 14 years as president, Chavez racked up repeated ballot-box victories thanks to his charisma and generous spending of Venezuela’s oil revenues – much of it on popular health and nutrition programs, as well as on his own electoral campaigns.

The opposition has cried fraud in the past without demonstrating evidence of it, including after a 2004 recall referendum that Chavez won.

But October’s vote included one incident that some opposition sympathizers see as a tipping point: election officials manually changed results at several voting centers in Bolivar state to tip the result in favor of the Socialist Party candidate, according to election center witnesses.

The witnesses produced official poll statements from their voting centers showing that the number of votes for the opposition candidate was higher than those reflected in the National Electoral Council figures for those same centers.

The elections council – stacked with Maduro’s supporters – has never clarified the issue and did not answer Reuters questions regarding the incident.

Maduro’s government has never commented.

More commonly, the opposition has complained of obstacles that reduce the likelihood of their supporters voting but are difficult to classify as fraud in a traditional sense – such as last-minute changes to the location of voting centers.

In the central state of Lara, Alfredo Alvarez learned just days before the October vote that the elections council had changed his voting center – along with that of an estimated 700,000 Venezuelans in 200 voting centers in predominantly opposition areas.

Alvarez, a 62-year-old journalist, had to drive around the city of Barquisimeto for several hours because he could not get a clear answer on where he was supposed to vote.

“I had to investigate: I had to go to five different voting centers. Who can vote under those conditions?” asked Alvarez, who said he ultimately cast his ballot in a polling center run by Socialist Party activists that had no opposition witnesses.

“I’ve been voting since 1973, but I’m not voting in this election. Not under these circumstances.”

Election officials said the changes were necessary primarily because of security concerns, given that some of the centers were near the site of violent opposition protests. Those protests had ended nearly three months before.

Electoral Council officials were not immediately available to explain that discrepancy.

(For a graphic on ‘Latin America’s upcoming elections’ click https://tmsnrt.rs/2rAQ4l1)

(Reporting by Brian Ellsworth, additional reporting by Miguel Angel Sulabaran, Maria de los Angeles Ramirez in Puerto Ordaz, and Vivian Sequera in Turmero; Editing by Alexandra Ulmer, Daniel Flynn and Rosalba O’Brien)

Iraqi Kurdish fortunes reversed in Kirkuk, the city they longed for as capital

An Iraqi security member dips his finger in ink after casting his vote at a polling station, two days before polls open to the public in a parliamentary election in Kirkuk, Iraq May 10, 2018. REUTERS/Ako Rasheed

By John Davison

KIRKUK, Iraq (Reuters) – An intersection in the northern Iraqi city of Kirkuk paints a vivid picture of the Kurds’ rapid turn of fortune. The towering statue of a fighter who used to brandish a Kurdish sunburst flag now holds the red, white and black of Iraq’s Baghdad government.

Opposite, a fortified former headquarters of the Kurdish autonomous region’s ruling party serves as a base for the Iraqi forces that led Kirkuk’s swift recapture in October and dashed hopes of Kurdish independence.

Many Iraqi Kurds long for Kirkuk as the eventual capital of their own state, and as Islamic State went down to defeat in northern Iraq last year the oil-rich city seemed closer than ever to becoming a permanent center of Kurdish power.

That short-lived ascendancy has been reversed, and hopes for a Kurdish Kirkuk have faded ahead of an Iraqi national election on Saturday expected to weaken the main Kurdish parties there.

“We had many dreams for Kurdistan but these have gone – we’ve lost it all,” said Mariwan Ali, a 28-year-old former fighter in the Kurdish peshmerga militia who now works as a cook in Kirkuk.

He said he would boycott the vote. “I refuse to vote in any Iraqi election, for anyone who’s part of the state of Iraq.”

Ali and his comrades helped drive Islamic State out of Kirkuk after Iraqi government forces fled a lightning advance by the jihadist militants in 2014.

With that, the Kurds, who were persecuted for decades under Iraqi dictator Saddam Hussein, controlled Kirkuk for the first time, and the Erbil-based Kurdistan Regional Government (KRG) duly erected the statue of the Kurdish fighter.

The peshmerga, Iraqi military and Shi’ite Muslim militias joined forces to defeat Islamic State in 2017. But with their common enemy gone, the rivalry between the KRG and Baghdad was laid bare, especially in Kirkuk.

A decision to include Kirkuk in a controversial Kurdish referendum in September that voted overwhelmingly for independence sealed its fate. Within weeks, Iraqi government forces had advanced on the city, and captured it in a matter of days.

Now, only the Iraqi flag is permitted to fly.

The city’s takeover was a devastating blow, taking much of the KRG-run autonomous region’s oil revenue, and a symbolic loss that local Kurds say has left them humiliated and considering leaving again.

“I couldn’t bear to see another Kurdish flag ripped up in front of me – I’d rather die,” 67-year-old Ali Majid, another former fighter who volunteered post-retirement to fight against Islamic State, said at his restaurant.

“It’s humiliating to be a Kurd now in Kirkuk. You get harassed at checkpoints, and I had a Kurdish flag sticker taken off my car,” he said. “I also got rid of the gun I kept at home, after repeated searches by Shi’ite militias” who had helped recapture Kirkuk in October.

Majid was one of few Kurds wearing the traditional sash across his waist.

Other expressions of Kurdish nationalism have disappeared. At a school used as a polling station for the September referendum, where Kurds danced at the time, Iraqi federal police filed in on Thursday to cast their early ballots.

MUTED NATIONALISM

Majid said that if the election result weakened the Kurds, he would leave Kirkuk.

Saturday’s election – Iraq’s first since Islamic State was driven out – will shape attempts to heal the country’s deep divisions and could shift the regional balance of power.

The three main ethnic and religious groups, the majority Shi’ite Arabs and the minority Sunni Arabs and Kurds, have been at loggerheads for decades.

In Kirkuk, home to many of Iraq’s minorities including Kurds, Turkmen, Sunni Arabs and Assyrian Christians, the distribution of seats across ethnicity and religion is not expected to change.

Kurds, who are scattered across Iraq, Iran, Turkey and Syria, suffered a particularly brutal fate under Saddam, who gassed them, buried them in mass graves and gave their land to Arabs.

With many Kurds disillusioned about the political elites who led the failed independence bid, the election could undermine the grip on power that two ruling parties have enjoyed since Iraq’s Kurdish region gained semi-autonomous status in 1991.

Kurdish campaigning in Kirkuk has been muted. Supporters of Turkmen and Sunni Arab candidates paraded through the city center on Thursday, tooting car horns and waving flags, but no such fanfare was seen in the quieter Kurdish neighborhoods.

Many from Kirkuk’s other minorities say they are happy to be back under the Baghdad government.

“Things are better now, there’s more order. We prefer the Iraqi state to be in control here, since it’s a legal government and not just a non-state actor,” Turkmen oil worker Bashar Aref, 45, said at a shopping center.

“Before October it was tense.”

A return of Kurdish control looks less likely than ever. Local Kurdish media reports that Kurdish security forces might have a future role in the policing of the area have been rejected by Iraqi military officials.

“We have no orders to the effect that the peshmerga will return to Kirkuk,” General Maan Saadi of the elite Counter Terrorism Service said from his office in the former Kurdistan Democratic Party headquarters.

“The city is under control, and more stable than it was under the peshmerga.”

(Reporting by John Davison, with additional reporting by Mustafa Mahmoud; Editing by Michael Georgy/Mark Heinrich)

Who needs Chavez? Venezuela’s leader pushes own image in campaign

By Andrew Cawthorne and Francisco Aguilar

CARACAS/BARINAS, Venezuela (Reuters) – During his 2013 presidential campaign, Nicolas Maduro opened rallies with an emotional recording of Venezuela’s national anthem sung by the recently-deceased Hugo Chavez.

In a strategy that earned him a narrow victory, Maduro surrounded himself with images of the popular former president, played footage of his socialist mentor anointing him as successor, and proclaimed himself “the son of Chavez.”

This time around, in a strangely unanimated presidential race boycotted by the mainstream opposition, Maduro has deliberately relegated the Chavez props.

Ignoring his personal unpopularity, fueled by rising hunger and violent crime as the oil-reliant economy implodes, the 55-year-old former bus driver and foreign minister has placed himself front-and-center of the campaign for the May 20 vote.

At rallies, he dances to a catchy reggaeton tune “Todos con Maduro” (Everyone with Maduro), amid huge ‘M’ banners on stage.

Crowds wave pictures of his beaming mustachioed visage, albeit sometimes with Chavez’s face floating above him.

“Our commander (Chavez) left us, but we must carry on the fight, don’t leave me alone!” Maduro implored at a recent rally. “Five years ago, I was a novice candidate. No more. Now I am a mature president, ready, experienced, with the balls to confront the oligarchy and imperialism.”

Maduro’s approach seems a bold one. Polls show the defunct Chavez is still the most popular political figure by far, while the incumbent president’s own ratings have sunk – along with Venezuela’s economy.

Yet the strategy reflects Maduro’s absolute confidence of winning a new six-year term.

And why not? The two most popular opposition figures are barred from the election, state resources are at his service, loyalists control potentially pesky bodies like the judiciary and election board, and the opposition has split bitterly over whether to abstain from the vote.

Furthermore, within the ruling “Chavismo” movement, Maduro outmaneuvered would-be rivals, such as powerful party No. 2 Diosdado Cabello, to make his candidacy a fait accompli.

Maduro’s consolidation of power began with the 2017 defeat of opposition protests, then a purge this year of former Chavez loyalists critical of him, like former oil czar Rafael Ramirez.

Now Maduro wants to drive home the advantage, trying to establish his own brand above government power struggles.

OPTIONS LIMITED

“For good or for bad, Maduro is the only major political figure on the scene right now,” said Hebert Garcia, a former general and minister who split with Maduro several years ago.

“So this election is like putting an image in front of someone and saying ‘choose’ – but there’s no one else to choose from!” he said from the United States, where he works as a consultant, evading corruption charges by the Maduro government.

There are several other names on the ballot sheet – former state governor Henri Falcon and evangelical Christian pastor Javier Bertucci being the most prominent. But many opposition supporters see them as stooges and “collaborators” participating in a sham to legitimize Maduro’s “dictatorship.”

Some polls actually give a lead to Falcon, who broke with the mainstream opposition’s boycott of the vote.

But the widespread abstention anticipated, Maduro’s formidable political machinery, the vote-winning power of state handouts, coercion of government employees, and the pro-Maduro makeup of the election board make Falcon’s task Herculean.

As confident as Maduro may appear right now on the political stage, his Achilles Heel remains the economy.

Venezuela is suffering a fifth year of recession with a double-digit contraction expected for 2018, inflation is the highest in the world, and the minimum monthly salary is worth barely $2 at the black market exchange rate.

Scarcity of food and medicines is widespread, and hundreds of thousands have left the country in recent years – increasingly by foot, bus and even bicycle.

CRISIS MAY DEEPEN

So Maduro will still have a crisis on his hands even if he wins. Washington is threatening to add oil sanctions to existing measures to stop Venezuela from issuing new debt, while restive creditors are considering more aggressive tactics.

There are no signs of reforms to the failing state-led economic model.

Maduro’s campaign mantra is to blame everyone from U.S. President Donald Trump to the local business community for the economic mess, ignoring the damage caused by botched nationalizations and dysfunctional currency controls.

Apart from promising a Utopian economic “rebirth”, he has given few details on his post-election plans. Many fear further retrenchment and moves against business such as last week’s 90-day seizure of the nation’s largest private bank.

Maduro’s election rallies around the country are notably smaller, more strictly corralled and shorter than in 2013. Away from the obediently ecstatic front rows, there is plenty of grumbling by unhappy Venezuelans.

“It’s the most flavorless and colorless campaign for at least 20 years,” scoffed former oil minister Ramirez, who had wanted to stand as the candidate of “Chavismo” but is instead in exile in an undisclosed foreign location.

At one recent campaign rally in Barinas state, flustered organizers hit the phones to try to boost numbers. A visibly irritated Maduro blamed poor turnout on rain – even though it only started falling after the event, witnesses said.

“I came to see what he would say about fixing the economy,” said Aparicio Teran, a 49-year-old peasant farmer, who like many in the agricultural savannah state is struggling for lack of bank loans, pesticides and cattle feed.

“I’m leaving without hearing anything about credits, fertilizers, herbicides, fungicides, food for the cows. We can’t go on like this. All we can look forward to is hunger.”

Though food has become Venezuelans’ No. 1 worry, many see no option but to vote for Maduro – in part to guarantee receiving state-subsidized food bags that millions depend on.

And Maduro still has core support among about one-fifth of Venezuelans, who swear loyalty to Chavez’s legacy come what may.

“The entire people is fighting for its future, against the destructive policies of U.S. imperialism and its European allies, against the blockade (sanctions) and against the economic war,” said Carlos Marquez, 24, in Barinas, wearing the red cap and T-shirt associated with diehard “Chavistas.”

(Additional reporting by Girish Gupta; Writing by Andrew Cawthorne; Editing by Alexandra Ulmer, Daniel Flynn and Paul Simao)

Turkey’s Erdogan declares early elections on June 24

Turkish President Tayyip Erdogan addresses a news conference at the Presidential Palace in Ankara, Turkey, April 18, 2018. Murat Cetinmuhurdar/Presidential Palace/Handout via REUTERS

By Tuvan Gumrukcu and David Dolan

ANKARA (Reuters) – Turkey’s Tayyip Erdogan on Wednesday called a snap presidential and parliamentary election on June 24, more than a year earlier than planned, saying the country urgently needed to make the switch to an executive presidency.

Bringing the elections forward means that they will take place under a state of emergency that has been in place since a July 2016 attempted coup and was extended by parliament on Wednesday for another three months.

In 15 years of rule as prime minister and later president, Erdogan has transformed a poor country at the eastern edge of Europe into a major emerging market. Yet Turkey’s rapid economic growth has also come with increased authoritarianism, as Erdogan has accelerated a crackdown on dissent since the failed coup.

Erdogan and his ministers had previously dismissed the prospect of early polls. Last year he narrowly won a referendum to change the constitution and create an executive presidency, which will come into effect with the next presidential vote.

He said Turkey’s military operations in neighboring Syria “and the developments in our region of historic importance, have made it mandatory to remove the election issue from our agenda”.

In a speech broadcast live on television he said it was also “urgent to switch to the new executive system in order to take steps for our country’s future in a stronger way…We came to the agreement that we should approach this early election positively.”

He said he made the decision after speaking to the head of the nationalist MHP party, Devlet Bahceli, who a day earlier had floated the prospect of an early election. The elections had been slated for November 2019.

Bahceli’s small MHP party is expected to form an alliance with Erdogan’s AK Party in the parliamentary election.

STATE OF EMERGENCY

The main opposition CHP party called for an immediate end to the emergency, which allows Erdogan and the government to bypass parliament in passing new laws and allows them to suspend rights and freedoms.

“There cannot be an election under emergency rule,” CHP spokesman Bulent Tezcan said. “The country needs to brought out of the emergency rule regime starting today.”

The United Nations last month called for an end to the emergency and accused Ankara of mass arrests, arbitrary sacking and other abuses. Some 160,000 people have been detained and a similar number of civil servants dismissed since the failed putsch, it said.

Media outlets have been shut down and scores of journalists have also been jailed.

Parliament last month passed a law revamping electoral regulations that the opposition has said could open the door to fraud and jeopardize the fairness of voting. The law grants the High Electoral Board the authority to merge electoral districts and move ballot boxes to other districts.

LIRA FIRMS

Turkey’s lira firmed against the dollar on Wednesday and was at 4.0189 at 1500 GMT. The yield on Turkey’s benchmark bond fell some 10 basis points and the main stock index jumped more than 2 percent.

Some investors had already been factoring in the prospect of early elections, citing the difficulty of the government keeping the economy going at its current breakneck pace – it expanded at 7.3 percent in the fourth quarter – until late next year.

The economy is likely to expand 4.1 percent this year, well short of the government’s target of 5.5 percent, a Reuters poll showed. Such a slowdown could hurt Erdogan, who has built much of his reputation on his stewardship of the economy, above all his record of delivering roads, hospitals and public services to millions of pious poor and middle-class people.

Investor concerns about double-digit inflation and Erdogan’s pressure on the central bank to keep rates down have sent the lira to a series of record lows. The currency’s sell-off may have figured in the call for early elections, some investors said.

“A continued depreciation of the currency would likely negatively impact voter behavior and may jeopardize Erdogan’s plans for victory,” said Paul Greer, a portfolio manager at Fidelity International in London.

“We read the early election announcement as a recognition from the government of a need for a tighter monetary and fiscal adjustment sooner rather than later.”

(Reporting by Tuvan Gumrukcu, with additional reporting by Sujata Rao and Karin Strohecker in London; Writing by David Dolan; Editing by Dominic Evans and Mark Heinrich)