New York commuters endure start of ‘summer of hell’

Commuters wait for track announcements at New York's Pennsylvania Station which began track repairs causing massive disruptions to commuters in New York City, U.S., July 10, 2017.

By Barbara Goldberg and Gabriella Borter

NEW YORK (Reuters) – New York City commuters endured the start to a “summer of hell” on Monday, when track repairs at the nation’s busiest rail hub caused rerouted trains, packed platforms and lengthy delays for tourists, financiers and the working class in the U.S. business capital.

Thousands of riders were funneled into chaotic train depots, but the more apocalyptic warnings proved overstated as other commuters sailed into midtown Manhattan with relative ease, in part because of a substantial public awareness campaign.

State Governor Andrew Cuomo had predicted the partial shutdown at New York’s Pennsylvania Station would cause a “summer of hell” for the 600,000 who ride the train in and out of the station beneath Madison Square Garden.

The national passenger rail corporation Amtrak and regional commuter train operators New Jersey Transit Corp and the Long Island Rail Road all converge on Penn Station. All three canceled some services, rerouted others, and warned travelers to expect delays throughout the duration of the repairs, which began on Monday and are scheduled to be done Sept. 1.

“Welcome to hell,” read the front page of Monday’s New York Post.

The upgrades created disruptions which are expected to cost Manhattan employers about $14.5 million for each hour that commuters are delayed, according to an estimate by the Partnership for New York City.

Rerouted trains dumped masses of passengers at transfer stations such as Hoboken, New Jersey, as many sought alternate routes into the city, including buses, ferries and cars.

“Compared to Europe, I feel like we’re living in the Third World,” said Mark Van Wagner, an artist and art dealer who takes the Long Island Rail Road from Bellport, New York.

The commuter crunch highlights lagging investment in U.S. infrastructure, and especially in New York City, which is dependent on mass transit.

Getting into the city had already been problematic for those who live in the suburbs and in some cases made worse by service interruptions in the city’s creaky subway system.

Even so, Amtrak reported most of its trains ran on time or close to it, and travelers heeded the increased public service announcements and Amtrak representatives who were posted in Penn Station.

While congestion and delays were evident at some points, those on unaffected trains reported a relatively smooth ride.

“I didn’t feel any change. I’ve been using LIRR for the past 11 years and it’s been good,” said Tamer Seoud, chief financial officer for the non-profit Lutheran Social Services of New York.

NJ Transit workers use tape on placards as people arrive to the Hoboken Terminal in New Jersey, U.S., July 10, 2017.

NJ Transit workers use tape on placards as people arrive to the Hoboken Terminal in New Jersey, U.S., July 10, 2017. REUTERS/Eduardo Munoz

At Hoboken station, transit workers bellowed instructions such as “tickets out!” and “this way to 39th street ferry!”

“The plans we put into effect seemed to be working,” New Jersey Transit spokesman Charles Ingoglia said. “And most importantly, our customers seemed to have done their homework and made their choices quickly this morning and got about their business.”

Social media users made a meme of the summer of hell, with J.H. Swanson (@jh_swanson) predicting it would be followed by the “autumn of purgatory.”

Arielle K. (@NYCMermaid1121) tweeted her summer of hell survival kit: “water, oatmeal pack, phone charger & Xanax.”

 

(Additional reporting by Andrew Hofstetter and Amy Tennery; Writing by Daniel Trotta; Editing by Bernadette Baum and Jonathan Oatis)

 

Gunman kills doctor, wounds six others in Bronx hospital rampage

Police vehicles line the streets outside the hospital after an incident in which a gunman fired shots inside the Bronx-Lebanon Hospital in New York City, U.S. June 30, 2017. REUTERS/Brendan Mcdermid

By Laila Kearney and Melissa Fares

NEW YORK (Reuters) – A doctor who had lost his job at a New York City hospital opened fire with an assault rifle inside the building on Friday, killing another physician and wounding six other people before taking his own life in a burst of apparent workplace-related violence, officials said.

The gunman, wearing a white medical lab coat, stalked two floors of the Bronx-Lebanon Hospital Center, in the New York borough of the Bronx, and tried to set himself on fire before police searching the building found him dead of a self-inflicted gunshot, Police Commissioner James O’Neill said.

One female physician was shot to death, and six other people were wounded, five seriously, including one who was shot in the leg, O’Neill said at a news conference.

Mayor Bill de Blasio characterized the shooting as an “isolated incident” that appeared to be “a workplace-related matter.” He said that it was “not an act of terrorism.”

“One doctor is dead, and there are several doctors who are fighting for their lives right now amongst those who are wounded,” de Blasio told reporters. “This is a horrific situation unfolding in the middle of a place that people associate with care and comfort.”

O’Neill said the gunman was armed with an assault rifle.

Neither the mayor nor police immediately identified the suspect or any of the victims. O’Neill said the gunman was a former employee of the 972-bed hospital.

Bronx Borough President Ruben Diaz, in an interview with WABC News, identified the gunman as Dr. Henry Bello and said he had been fired by the hospital. Other media reports said Bello was 45 years of age.

The New York Times and the New York Daily News reported, citing unnamed sources, that Bello had resigned from the hospital rather than face termination over accusations of sexual harassment.

NYPD officers work outside Bronx-Lebanon Hospital, after an incident in which a gunman fired shots inside the hospital in New York City, U.S. June 30, 2017. REUTERS/Brendan McDermid

NYPD officers work outside Bronx-Lebanon Hospital, after an incident in which a gunman fired shots inside the hospital in New York City, U.S. June 30, 2017. REUTERS/Brendan McDermid

FROM NIGERIA TO CARIBBEAN MEDICAL SCHOOL

Bello had received a limited permit to practice as an international medical graduate in order to gain experience so he could be fully licensed, but that permit expired a year ago, the Times reported. It said he also had a pharmacy technician license from California. The Daily News said he had been a pharmacy tech at the hospital before he quit in 2015.

A native of Nigeria, Bello earned a medical degree from Ross University on the Caribbean island nation of Dominica and later worked briefly as a pharmacy technician for Metropolitan Hospital Center in Manhattan in 2012, according to David Wims, a lawyer who represented Bello in an unemployment insurance claim against that hospital.

In a telephone interview, Wims told Reuters Bello was injured on the job at Metropolitan a few months after being hired, then went on leave and never returned. In a decision upheld by the state’s appellate court division, Bello ultimately was denied unemployment benefits on grounds he quit without good cause.

Wims said he remembered Bello as “an even-keeled, respectful, humble person” and knew nothing of his history at the Bronx hospital.

Details about the shooting were still sketchy.

Authorities said the rampage unfolded shortly before 3 p.m. when the gunman went on a rampage on the 16th and 17th floors of the hospital. He and the slain physician both were found on the 17th floor, while the six other victims were found on the 16th floor, O’Neill said.

The incident sent waves of panic throughout the hospital, and police swarmed the building searching for the gunman.

“People were running. People were afraid,” said Jane Vachara, 50, a clerical associate on the ninth floor, who said she huddled with colleagues in a locker room for about an hour.

Adding to the pandemonium was the gunman’s attempt to set himself ablaze, which apparently triggered the hospital’s fire alarm system and halted elevator service, hampering efforts by first responders to reach victims and evacuate the building.

One ambulance worker, Robert Maldonado, told WCBS television that he and his partner had to carry a bleeding patient down nine flights of stairs to safety, applying pressure to the man’s wound on the way down.

Bronx-Lebanon Hospital Center, located about one mile (1.6 km) north of Yankee Stadium, is the largest voluntary, non-profit health care system serving the South and Central Bronx, as well as one of the city’s biggest providers of outpatient services.

(Additional reporting by Peter Szekely; Writing by Steve Gorman; Editing by Mary Milliken and Stephen Coates)

New York attorney general looking at Eric Trump charity’s payouts

FILE PHOTO - Eric Trump during the grand opening of the Trump International Hotel and Tower in Vancouver, British Columbia, Canada on February 28, 2017. REUTERS/Nick Didlick/File Photo

By Ian Simpson

(Reuters) – New York’s attorney general is looking into a report that the Eric Trump Foundation funneled more than $1 million from charity golf tournaments into President Donald Trump’s business, a spokesman for the attorney general said on Friday.

Forbes magazine reported this week that the charity run by Eric Trump, the president’s second-oldest son, paid the Trump Organization to use its properties for charity events in recent years even though Eric Trump had told donors that the golf course and other assets were being used for free, so that just about all the money donated would help sick children.

Forbes reported that based on filings from the Eric Trump Foundation and other charities, more than $1.2 million “has no documented recipients past the Trump Organization.”

Eric Soufer, a spokesman for New York Attorney General Eric Schneiderman, said in an email that his office was looking into issues raised by the Forbes story.

Soufer did not immediately respond to a later request for details about the examination.

The Democratic attorney general’s office already is investigating allegations of self-dealing at the Donald J. Trump Foundation, the Republican president’s charity.

Trump, a New York real estate developer, said in December that he would dissolve the Donald J. Trump Foundation, but Schneiderman’s office has said it could not be wound down while the investigation was ongoing.

Forbes also reported that although donors to the Eric Trump Foundation were told all its money was going to help St. Jude Children’s Research Hospital in Memphis, Tennessee, fight pediatric cancer, more than $500,000 was re-donated to other charities.

Many of those charities “were connected to Trump family members or interests, including at least four groups that subsequently paid to hold golf tournaments at Trump courses,” Forbes said.

Amanda Miller, who works for the Trump Organization and who identified herself in an emailed response to a Reuters query as a “spokesperson for Eric Trump,” said the Eric Trump Foundation would cooperate fully with Schneiderman’s office.

Eric Trump is executive vice president of development and acquisition for the Trump Organization.

“During the past decade, the Eric Trump Foundation has raised over $16.3 million for St. Jude Children’s Research Hospital, including more than $3.6 million to St. Jude and other worthwhile causes just in 2016 alone,” Miller said in the email.

Eric Trump said in a tweet on Thursday that he had raised the money for St. Jude with an expense ratio of less than 12.3 percent. “Let’s not politicize pediatric cancer,” he said.

On his foundation’s website, Eric Trump said he had ceased direct fundraising efforts at the end of 2016 “in order to avoid the appearance or assertion of any impropriety and/or a conflict of interest.”

(Reporting by Ian Simpson; Editing by Leslie Adler)

Tech leads Wall Street higher; jobs data falls short

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S.,June 2, 2017.REUTERS/Brendan McDermid

By Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks closed at record levels for a second consecutive session on Friday, as gains in technology and industrial stocks more than offset a lukewarm jobs report.

Nonfarm payrolls increased by 138,000 in May, well short of the 185,000 expected by economists. The prior two months were revised lower by 66,000 jobs than previously reported.

Average hourly earnings rose 0.2 percent in May, following a similar gain in April, but the unemployment rate fell to a 16-year low of 4.3 percent.

Despite the disappointing data, market participants still largely anticipate the Federal Reserve to raise rates at its June 13-14 meeting, with traders expecting a 90.7-percent chance of a quarter-point hike, according to Thomson Reuters data.

“It’s certainly surprising. It doesn’t really correlate well with virtually all the other data on the labor market that we’re seeing,” said Russell Price, senior economist at Ameriprise Financial Services Inc in Troy, Michigan.

The modest increase, however, could raise concerns about the economy’s health after gross domestic product growth slowed in the first quarter and a string of softening data this week, including reports on housing and auto sales.

The economy needs to create 75,000 to 100,000 jobs per month to keep up with growth in the working-age population. Job gains are slowing as the labor market nears full employment.

The Dow Jones Industrial Average <.DJI> rose 62.11 points, or 0.29 percent, to 21,206.29, the S&P 500 <.SPX> gained 9.01 points, or 0.37 percent, to 2,439.07 and the Nasdaq Composite <.IXIC> added 58.97 points, or 0.94 percent, to 6,305.80.

For the week, the S&P rose 0.95 percent, the Dow added 0.59 percent and the Nasdaq gained 1.54 percent.

Industrials <.SPLRCI>, up 0.49 percent, and technology <.SPLRCT>, up 1.04 percent, were the best performing sectors. The tech sector has been the top performer among the major S&P sectors, with a 2017 gain of 21.26 percent.

The tech sector was led by Broadcom <AVGO.O>, which rose more than 8 percent to hit an all-time high of $253.76, after the chipmaker’s quarterly results beat analysts’ expectations.

Shares of financials <.SPSY>, which benefit from higher interest rates, fell as much as 0.9 percent after the jobs data sparked some worry the Fed could become cautious after the June meeting, and closed down 0.37 percent.

Energy <.SPNY> was the worst-performing sector, down 1.18 percent. Brent oil tumbled below $50 a barrel on worries that President Donald Trump’s decision to abandon a climate pact could spark more crude drilling in the United States and worsen a global glut.

Lululemon Athletica <LULU.O> jumped 11.5 percent to $54.29 after the athletic apparel maker’s quarterly profit beat estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 2.07-to-1 ratio favored advancers.

The S&P 500 posted 28 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 82 new highs and 70 new lows.

About 6.37 billion shares changed hands in U.S. exchanges, compared with the 6.65 billion daily average over the last 20 sessions.

(Additional reporting by Herb Lash; Editing by Nick Zieminski)

Bond market braces for impact of New York’s free tuition plan

Graduates celebrate receiving a Masters in Business Administration from Columbia University during the year's commencement ceremony in New York in this May 18, 2005 file photo. REUTERS/Chip East/Files

By David Randall

NEW YORK (Reuters) – Little known private colleges that are already struggling to grow their revenues are facing a new threat that could further weaken their finances and make borrowing harder: free tuition at public universities.

The State of New York passed in April a bill that will by 2019 offer free tuition at community colleges and public universities in the state to residents whose families make less than $125,000 per year. At least six other states are considering similar laws, to ease the burden of student debt that has doubled since 2008 to over $1.3 trillion, according to the Federal Reserve Bank of New York.

Fund managers expect that such initiatives, combined with other pressures that have long been building up, will cause bonds issued by smaller private colleges to fare far worse than the broader market if interest rates continue to rise.

So far the bond market has largely ignored such a threat as historically low rates encourage many investors to take on greater risks in search for better yields.

“There are many schools that are going to be losers in this game,” said R.J. Gallo, a portfolio manager at Federated Investors in New York.

Gallo, who owns debt issued by well-known institutions such as Northeastern University in Boston and Northwestern University in suburban Chicago, said that bonds of lower-rated schools yield only about 1.3 percentage points more than AAA-rated ones. That, for him, is not enough to compensate for the additional risk.

Nearly 80 percent of college-age students in New York qualify for the scholarship, according to state estimates. While the state has yet to say how many new students it expects to take advantage of the plan, analysts say that they expect a significant number forgoing private colleges located in the Northeast and opting for public options instead.

RECORD HIGH ‘DISCOUNT RATES’

The prospect of competition from free public programs comes at a time when many private colleges are already forced to offer incoming students discounts because of stagnant personal incomes and years of above-inflation tuition hikes.

The proportion of gross tuition revenue that is covered by grant-based financial aid averaged a record 49.1 percent for full-time freshmen in the current school year, according to a May 15 report by the National Association of College and University Business Officers.

The average U.S. private non-profit four year institution charges $45,370 per year in tuition, room and board, a 12 percent increase over the last five years, according to the College Board. Graphic: http://tmsnrt.rs/2qHVUBj

Moody’s forecasts that financial pressures will triple the number of schools that close their doors nationwide from today’s rate of two to three schools per year. Free public education will add to those pressures, said Christopher Collins, an analyst at Moody’s.

“It’s a highly competitive sector and there’s also now the fact that these really small schools are competing with public colleges and universities with a much lower price,” he said.

Given that there are more than 1,000 private colleges and universities nationwide, closures are rare.

Earlier this year, Connecticut’s Sacred Heart University and St. Vincent’s College announced plans for a potential consolidation. Last November, Dowling College in Long Island, New York, filed for bankruptcy after defaulting on $54 million in debt issued through local government agencies.

New York’s scholarship plan alone is unlikely to cause any private school to go under, said college financial aid expert Mark Kantrowitz, the president of consulting service Cerebly Inc. Instead, regional private schools that tout their small class sizes may lose their appeal if the competition from free programs forces them to lower tuition and they try to offset that by increasing enrollment.

“These colleges justify their costs by saying that you will get a more personal education, but will increasingly start to fail,” he said, adding that he expects to see more private colleges closing their doors over the next decade.

Nicholos Venditti, a bond fund manager at Thornburg Investment Management in Santa Fe, New Mexico, said he has been cutting his funds’ exposure to private college debt in part because other states could soon emulate New York’s model.

“If free tuition becomes a widespread phenomenon, it puts pressure on every higher education model throughout the country,” he said.

(Reporting by David Randall; Editing by Jennifer Ablan and Tomasz Janowski)

United says cockpit door codes may have been published online

FILE PHOTO: A United Airlines aircraft taxis as another lands at San Francisco International Airport, San Francisco, California, U.S., February 7, 2015. REUTERS/Louis Nastro/File Photo

By Ian Simpson

WASHINGTON (Reuters) – Codes to gain access to United Airlines cockpits may have been made public, the carrier said on Monday, but it stopped short of confirming a report that a flight attendant inadvertently published the codes online in a potential threat to air security.

The airline still could keep its flight decks secure through other measures, Maddie King, a spokeswoman for United Continental Holdings Corp, said in an email. She declined to specify the other safeguards because of security considerations.

“We are working to resolve this issue as soon as possible,” she said.

Citing a pilot who was briefed on the matter, the Wall Street Journal reported on Sunday that United, the world’s third-largest airline by revenue, had alerted pilots that access codes to unlock cockpit doors were mistakenly posted on a public website by a flight attendant.

Cockpit security emerged as a top priority for airlines in September 2001, when hijackers took control of United and American Airlines planes and crashed them into New York’s World Trade Center and the Pentagon in Washington. A third airliner commandeered by jihadists crashed in a western Pennsylvania field.

The United unit of the Air Line Pilots Association said in a statement that the accidental leak of information showed the need for stronger protections for flight deck doors.

The union has long backed secondary barriers, which it said would cost $5,000 each, and called on Congress to mandate them.

“The installation of secondary barriers on all passenger aircraft is a simple and cost effective way to bolster the last line of flight deck defense,” the union said.

(Editing by Frank McGurty and Bill Trott)

New York mayor criticized for proposed limits on legal aid to immigrants

People rally on the steps of City Hall in Manhattan, New York, U.S., May 11, 2017. REUTERS/Shannon Stapleton

By Jonathan Allen

NEW YORK (Reuters) – New York City public defenders on Thursday criticized a proposal by Mayor Bill de Blasio to deny free legal counsel to immigrants in deportation hearings if they had been convicted of serious crimes in the past, saying the plan would deny them due process.

In his proposed annual budget, De Blasio allocated $16.4 million to legal services for immigrant New Yorkers, citing concern about U.S. President Donald Trump’s crackdown on immigrants living in the country illegally.

Lawyers, local lawmakers and civil rights activists welcomed the funding proposal, which sharply increases legal aid for immigrants. But they gathered on the steps of City Hall to criticize a provision they said would unfairly deprive some people of the right to due process under the law.

De Blasio’s proposal would deny city-funded lawyers to immigrants previously convicted of one of 170 crimes that the city considers serious or violent.

Jennifer Friedman, who runs the immigration practice at Bronx Defenders, said the mayor’s plan would create a “two-tier system that treats people different based on their criminal history.”

The funding be in addition to the New York Immigrant Family Unity Project (NYIFUP), which has been funded by the City Council since 2013 and provides free lawyers to immigrants facing deportation hearings at the federal immigration court.

In the United States, the right to a lawyer does not extend to federal immigration hearings which are civil, not criminal, proceedings.

The plan contradicted de Blasio’s description of New York as a “sanctuary city” for immigrants, the public defenders said.

Seth Stein, a City Hall spokesman, wrote in an email that “the public should not be expected to foot the bill” for immigrants convicted of dangerous crimes. “The vast majority of immigrants have not been convicted of violent crimes,” he wrote.

More than 2,000 immigrants have received free lawyers under the council-funded program, which provides free lawyers regardless of an immigrant’s criminal record, in the four years since it began, Legal Aid said.

In New York City, immigrants without lawyers managed to overturn a removal order in court only 3 percent of the time, while those with lawyers were able to remain in the country 30 percent of the time, Legal Aid said.

(Editing by Frank McGurty and Cynthia Osterman)

Heavy rain, wind disrupts travel for New Yorkers

A motorcycle is seen in water on the West Side Highway after heavy rain in the Manhattan borough of New York, U.S., May 5, 2017.REUTERS/Carlo Allegri

By Peter Szekely

NEW YORK (Reuters) – Heavy, wind-driven rain soaked the New York City area on Friday afternoon, causing local flooding and an array of transportation delays across the heavily populated region.

The National Weather Service issued flash flood warnings for much of New York City and several suburban counties as a weather system that stretched across much of the Eastern Seaboard dumped three inches of rain on the metropolitan region in three hours.

The rain forced the closure of Manhattan’s West Side Highway, a major thoroughfare along the Hudson River, for at least 10 blocks, and caused extensive traffic delays citywide, New York City’s Office of Emergency Management said.

While the intensity of rainfall had diminished shortly before the evening rush hour, water in flood-affected areas was expected to take several hours to recede.

The weather service received reports of flooding across all five boroughs of New York City, prompting some vehicle rescues, spokesman Tim Morrin said.

“The problem was the rain came down so heavy and so fast that the drainage couldn’t keep up,” Morrin said. “Roads became quickly impassible.”

Many flights in and out of New York airports experienced long delays and there were many cancellations. Hardest hit was LaGuardia Airport, where more than 34 percent of departing flights were delayed and 14 percent canceled, according to FlightAware, a website that tracks air travel.

The PATH rail service that connects New Jersey to Manhattan suspended service on two lines on Friday, citing a power problem.

Flooding forced the temporary closure of the main entrance to Manhattan’s Pennsylvania Station, according to local media. The reports could not be immediately confirmed by Reuters.

The weather-related disruption was especially aggravating for commuters from New Jersey and Long Island suburbs who have endured hours-long delays in recent weeks after derailments and other incidents at Penn Station.

Claire Jones, 19, who commutes from her home in New Jersey to New York, said her New Jersey Transit line running in and out of Penn Station was delayed at least six times this month.

“It’s difficult,” Jones said. “The main thing about time transit is that it’s convenient so you know if you get on this train at this time, you’ll get where you need to go, and when that doesn’t happen, it’s extremely inconvenient.”

Amtrak, which owns and operates New York’s Penn Station and leases tracks and space to NJ Transit and the Long Island Railroad, is planning to close some tracks for weeks and months at a time as it undertakes repairs

The station, with its decaying, century-old rail tunnels extending underneath the Hudson River, is a chokepoint on Amtrak’s Northeast Corridor, which runs from Washington to Boston.

The storm also caused inconvenience at the New York’s Oculus transportation hub in lower Manhattan, which opened only last August. Its roof began leaking, scattering hundreds of travelers, a Twitter-posted picture showed.

The Port Authority of New York and New Jersey, which operates the Oculus at the World Trade Center complex, could not immediately confirm the leak.

(Reporting by Laila Kearney, Gina Cherelus and Jonathan Allen; Writing by Peter Szekely; Editing by Leslie Adler)

New Yorkers to greet Trump’s first visit home with protests

U.S. President Donald Trump gestures to the media after Palestinian President Mahmoud Abbas left the White House in Washington, U.S., May 3, 2017. REUTERS/Yuri Gripas

By Dave Graham and David Ljunggren

MEXICO CITY/OTTAWA (Reuters) – From launching a data-mining drive aiming to find supply-chain pressure points to sending officials to mobilize allies in key U.S. states, Mexico and Canada are bolstering their defenses of a regional trade pact President Donald Trump vows to rewrite.

Trump has blamed the North American Free Trade Agreement (NAFTA) for the loss of millions of manufacturing jobs and has threatened to tear it up if he fails to get a better deal.

Fearing the massive disruptions a U.S. pullout could cause, the United States’ neighbors and two biggest export markets have focused on sectors most exposed to a breakdown in free trade and with the political clout to influence Washington.

That encompasses many of the states that swept Trump to power in November and senior politicians such as Vice President Mike Pence, a former Indiana governor or Wisconsin representative and House Speaker Paul Ryan.

Prominent CEOs on Trump’s business councils are also key targets, according to people familiar with the lobbying push.

Mexico, for example, has picked out the governors of Texas, Arizona and Indiana as potential allies.

Decision makers in Michigan, North Carolina, Minnesota, Illinois, Tennessee, Wisconsin, Ohio, Florida, Pennsylvania, Nebraska, California and New Mexico are also on Mexico’s priority list, according to people involved in talks.

Mexican and U.S. officials and executives have had “hundreds” of meetings since Trump took office, said Moises Kalach, foreign trade chief of the Mexican private sector team leading the defense of NAFTA. (Graphic:http://tmsnrt.rs/2oYClp2)

Canada has drawn up a list of 11 U.S. states, largely overlapping with Mexico’s targets, that stand to lose the most if the trade pact enacted in 1994 unravels.

To identify potential allies among U.S. companies and industries, Mexican business lobby Consejo Coordinador Empresarial (CCE) recruited IQOM, a consultancy led by former NAFTA negotiators Herminio Blanco and Jaime Zabludovsky.

In one case, the analysis found that in Indiana, one type of engine made up about a fifth of the state’s $5 billion exports to Mexico. Kalach’s team identified one local supplier of the product and put it touch with its main Mexican client.

“We said: talk to the governor, talk to the members of congress, talk to your ex-governor, Vice President Pence, and explain that if this goes wrong, the company is done,” Kalach said. He declined to reveal the name of the company and Reuters could not immediately verify its identity.

Trump rattled the two nations last week when his administration said he was considering an executive order to withdraw from the trade pact, which has been in force since 1994. He later said he would try to renegotiate the deal first and Kalach said the lobbying effort deserved much credit for Trump’s u-turn.

“There was huge mobilization,” he said. “I can tell you the phone did not stop ringing in (Commerce Secretary Wilbur) Ross’s office. It did not stop ringing in (National Economic Council Director) Gary Cohn’s office, in the office of (White House Chief of Staff Reince) Priebus. The visits to the White House from pro-NAFTA allies did not stop all afternoon.”

Among those calling the White House and other senior administration officials were U.S. Chamber of Commerce chief Tom Donohue, officials from the Business Roundtable and CEOs from both lobbies, according to people familiar with the discussions.

PRIME TARGET

Mexico has been the prime target of NAFTA critics, who blame it for lost manufacturing jobs and widening U.S. trade deficits. Canada had managed to keep a lower profile, concentrating on seeking U.S. allies in case of an open conflict.

That changed in late April when the Trump administration attacked Ottawa over support for dairy farmers and slapped preliminary duties on softwood lumber imports.

Despite an apparently weaker position – Canada and Mexico jointly absorb about a third of U.S. exports, but rely on U.S. demand for three quarters of their own – the two have managed to even up the odds in the past by exploiting certain weak spots.

When Washington clashed with Ottawa in 2013 over meat-labeling rules, Canada retaliated by targeting exports from the states of key U.S. legislators. A similar policy is again under consideration.

Mexico is taking a leaf out of a 2011 trucking dispute to identify U.S. interests that are most exposed, such as $2.3 billion of yellow corn exports.

Mexico is also targeting members of Trump advisory bodies, the Strategic and Policy Forum and the Manufacturing Council, led by Blackstone Group LP’s Stephen Schwarzman and Dow Chemical Co boss Andrew Liveris respectively.

Senior Trump administration officials and Republican lawmakers in charge of trade, agriculture and finance committees also feature among top lobbying targets.

Canada has spread the task of lobbying the United States among ministries, official say, and is particularly keen to avoid disruption to the highly-integrated auto industry.

A core component of Mexico’s strategy is to argue the three nations have a common interest in fending off Asian competition and exploring scope to source more content regionally.

The defenders of NAFTA also say that it supports millions of jobs in the United States, and point out that U.S. trade shortfalls with Canada and Mexico have declined over the past decade even as the deficit with China continued to climb.

Part of IQOM’s mission is to identify sectors where NAFTA rules of origin could be modified to increase regional content.

For example, U.S., Canadian and Mexican officials are debating how the NAFTA region can reduce auto parts imports from China, Japan, South Korea or Germany, Mexican officials say.

“The key thing is to see how we can get a win-win on the products most used in our countries, and to develop common manufacturing platforms that allow us just to buy between ourselves the biggest amount of inputs we need,” said Luis Aguirre, vice-president of Mexican industry group Concamin.

Graphic: Trade battles – http://tmsnrt.rs/2pAdPcp

(Additional reporting by Michael O’Boyle Alexandra Alper, Ana Isabel Martinez, Ginger Gibson and Adriana Barrera; Editing by Tomasz Janowski)

Federal spending plan reimburses New York City for Trump security

New York City Police Department (NYPD) officers stand guard outside the entrance of Trump Tower in New York City, U.S., April 26, 2017. REUTERS/Mike Segar

By Hilary Russ

NEW YORK (Reuters) – A federal spending agreement reached late on Sunday will reimburse New York City for money spent securing U.S. President Donald Trump and his family at Trump Tower in Manhattan.

Altogether, New York City and other state and local governments that have hosted the president would receive $61 million in the latest federal budget deal.

Officials in Florida’s Palm Beach County, home to Trump’s private club Mar-a-Lago, have also asked for help in paying security costs.

“We are getting what we are owed,” Mayor Bill de Blasio said in a statement on Monday. “That’s good news for our city and the hardworking police officers faced with this unprecedented security challenge.”

He and Police Commissioner James O’Neill worked for several months with New York’s congressional delegation to have the funds included in the deal, he said.

Congress is expected to approve the legislation by the end of the week.

The deal includes $20 million for costs incurred between Election Day in November and Inauguration Day in January, as well as $41 million after Trump was sworn in.

The funding, which must be shared with other local governments, is on top of the $7 million allocated last fall.

The city spends on average $127,000 to $146,000 a day for the New York Police Department to protect First Lady Melania Trump and the couple’s young son when President Trump is not in town.

Those costs are expected to swell to a daily average of $308,000 when Trump is in the city, the mayor’s office said.

Their home atop the 58-story skyscraper on Fifth Avenue near Central Park is the site of regular protests and is in an area popular with tourists.

When outlining his $84.9 billion executive city budget for fiscal 2018 on Wednesday, de Blasio said the city normally handles occasional visits from Presidents, but not ongoing costs to keep the First Family secure in Trump Tower.

“We’re not budgeting for something that’s a federal responsibility,” he said, according to a transcript of his remarks.

“It is ridiculous to expect local law enforcement… to bear the extraordinary and ongoing costs of protecting the President of the United States,” Congresswoman Carolyn Maloney, who helped lead the state’s congressional delegation in making the reimbursement request, said in a statement on Monday.

(Reporting by Hilary Russ; Editing by Meredith Mazzilli)