U.S. jobless claims rise; labor market still tightening

FILE PHOTO: Corporate recruiters (R) gesture and shake hands as they talk with job seekers in Washington, June 11, 2013. REUTERS/Jonathan Ernst/File Photo

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly rose last week, but the underlying trend remained consistent with a tightening labor market.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 244,000 for the week ended Aug. 5, the Labor Department said on Thursday.

Data for the prior week was revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims would be unchanged at 240,000 in the latest week. With the labor market near full employment, there is probably limited room for claims to continue declining. Claims have now been below 300,000, a threshold associated with a healthy labor market, for 127 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller. The unemployment rate is 4.3 percent.

Labor market tightness could encourage the Federal Reserve to announce a plan to start unwinding its $4.2 trillion portfolio of Treasury bonds and mortgage-backed securities at its policy meeting next month. A Labor Department official said there were no special factors influencing the claims data and that no states had been estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 1,000 to 241,000 last week, the lowest level since May.

The government reported last week that nonfarm payrolls increased by 209,000 jobs in July. The economy has added 1.29 million jobs this year. That has resulted in the unemployment rate dropping five-tenths of a percentage point.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid fell by16,000 to 1.95 million in the week ended July 29. The so-called continuing claims have now been below the 2 million mark for 17straight weeks, pointing to diminishing labor market slack.

The four-week moving average of continuing claims edged up 500 to 1.97 million, still remaining below the 2 million mark for the 15th consecutive week.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Exclusive: U.S. destroyer challenges China’s claims in South China Sea

FILE PHOTO - The guided-missile destroyer USS John S. McCain approaches the aircraft carrier USS George Washington for a fueling at sea in this December 5, 2010 handout photo courtesy of the U.S. Navy. REUTERS/U.S. Navy/Mass Communication Specialist Seaman Cheng S. Yang/Handout

By Idrees Ali

WASHINGTON (Reuters) – A U.S. Navy destroyer carried out a “freedom of navigation operation” on Thursday, coming within 12 nautical miles of an artificial island built up by China in the South China Sea, U.S. officials told Reuters.

The operation came as President Donald Trump’s administration seeks Chinese cooperation in dealing with North Korea’s missile and nuclear programs and could complicate efforts to secure a common stance.

The officials, speaking on condition of anonymity, said the USS John S. McCain traveled close to Mischief Reef in the Spratly Islands, among a string of islets, reefs and shoals. China has territorial disputes with its neighbors over the area.

It was the third “freedom of navigation operation” or “fonop” conducted during Trump’s presidency. Neither China’s defense ministry nor its foreign ministry immediately responded to a request for comment.

The operation was the latest attempt to counter what Washington sees as Beijing’s efforts to limit freedom of navigation in the strategic waters, and comes as Trump is seeking China’s cooperation to rein in North Korea.

Tensions have risen recently after North Korea carried out two nuclear tests last year and two ICBM tests last month, prompting a strong round of U.N. sanctions which angered Pyongyang who threatened to teach the United States a “severe lesson”.

Trump in turn responded by warning North Korea it would face “fire and fury” if it further threatened the United States.

U.S. Defense Secretary Jim Mattis issued a stark warning to North Korea on Wednesday, telling Pyongyang that it should stop any actions that would lead to the “end of its regime and the destruction of its people.”

The United States has criticized China’s construction of islands and build-up of military facilities in the sea, and is concerned they could be used to restrict free nautical movement.

The U.S. military has a long-standing position that its operations are carried out throughout the world, including in areas claimed by allies, and they are separate from political considerations.

The Trump administration has vowed to conduct more robust South China Sea operations.

In July, a U.S. warship sailed near a disputed island in the South China Sea claimed by China, Taiwan, Vietnam.

Experts and officials have criticized President Barack Obama for potentially reinforcing China’s claims by sticking to innocent passage, in which a warship effectively recognized a territorial sea by crossing it speedily without stopping.

China’s claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

(Additional reporting by Ben Blanchard in Beijing; Editing by Clarence Fernandez and Matthew Mpoke Bigg)

Trump vows to ‘win’ against opioid epidemic

Paramedics display a dose of the opioid overdose reversal drug Narcan, or Naloxone Hydrochloride, in an ambulance in Peabody, Massachusetts, U.S., August 8, 2017. REUTERS/Brian Snyder

By James Oliphant

BRIDGEWATER, N.J. (Reuters) – President Donald Trump promised to win the fight against a U.S. epidemic of opioid drug use, but offered no new steps to do so and did not act on a recommendation made by a presidential commission that he declare a national emergency.

Trump spoke at an event he had billed as a “major briefing” on the opioid crisis during a two-week “working vacation” at his private golf club in New Jersey. He also used the appearance to unexpectedly issue a stern warning to North Korea over its threats to the United States.

The Republican president said the United States has no alternative but to stem spreading opioid use, but more than six months into his presidency announced no new policies to combat a public health crisis that kills more than 100 Americans daily.

“I’m confidant that by working with our healthcare and law enforcement experts we will fight this deadly epidemic and the United States will win,” Trump told reporters. “We’re also very, very tough on the southern border where much of this comes in, and we’re talking to China, where certain forms of man-made drug comes in, and it is bad.”

U.S. Health and Human Services Secretary Tom Price said the administration was still working to devise “a comprehensive strategy” to be presented to Trump “in the near future.”

A commission created by Trump to study opioid abuse urged him last week to declare a national emergency to address what it called an opioids crisis, framing its death toll in the context of the Sept. 11, 2001, attacks on the United States. An emergency declaration could free up federal resources for the effort.

“The resources that we need or the focus that we need to bring to bear to the opioid crisis at this point can be addressed without the declaration of an emergency, although all things are on the table for the president,” Price told a later news briefing.

According to the U.S. Centers for Disease Control and Prevention, opioids were involved in more than 33,000 U.S. deaths in 2015, the latest year for which data is available, and estimates show the death rate has continued rising.

The commission, headed by Republican New Jersey Governor Chris Christie, recommended steps such as waiving a federal rule that restricts the number of people who can get residential addiction treatment under the Medicaid healthcare program for the poor and disabled.

The commission cited government data showing that since 1999 U.S. opioid overdoses have quadrupled, adding that nearly two thirds of U.S. drug overdoses were linked to opioids such as heroin and the powerful painkillers Percocet, OxyContin and fentanyl.

‘THE LOSING SIDE’

Speaking alongside Price, White House senior counselor Kellyanne Conway said, “We are a nation that consumes legal and illegal drugs at a very high and alarming rate. The problem is very complicated, and currently we are on the losing side of this war.”

Conway said the crisis cannot be solved overnight, and that “most of the great work is being done at the state and local levels.” Conway called it a “nonpartisan issue in search of bipartisan support and bipartisan solutions.”

Even before Trump’s event, the Democratic National Committee slammed him, with spokesman Daniel Wessel saying in a statement: “Trump promised he’d come to the aid of communities ravaged by the opioid epidemic, but so far he’s done nothing for them.”

Trump’s initial federal budget called for a 2 percent increase in drug treatment programs and would provide funds to increase border security to stop the flow of drugs into the country.

Substance abuse treatment activists have criticized his proposed cuts to federal prevention and research programs as well as his calls to shrink Medicaid, which covers drug treatment for hundreds of thousands of Americans.

Officials from New Hampshire criticized Trump last week after a leaked transcript of a January conversation with Mexican President Enrique Pena Nieto showed Trump had called the New England state, hard-hit by the opioid epidemic, a “drug-infested den.”

New Hampshire sued OxyContin maker Purdue Pharma LP on Tuesday, joining several state and local governments in accusing the drugmaker of engaging in deceptive marketing practices that helped fuel opioid addiction.

The lawsuit followed similar ones against Purdue and other drugmakers by Oklahoma, Mississippi, Ohio and Missouri and several cities and counties in California, Illinois, Ohio, Oregon, Tennessee and New York.

Price said Trump’s administration was taking no position on such suits.

(Reporting by Doina Chiacu and James Oliphant; Additional reporting by Eric Beech, Yasmeen Abutaleb and Susan Cornwell; Writing by Alistair Bell and Kevin Drawbaugh; Editing by Will Dunham)

Maryland man indicted for attempted murder of FBI agent, Islamic State support

(Reuters) – A federal grand jury has indicted a Maryland man on charges of attempting to murder an FBI agent and trying to provide support to Islamic State militants, U.S. prosecutors said on Tuesday.

Nelash Das, 25, of Landover Hills, was arrested by federal agents in September 2016 as he was preparing to attack a U.S. military service member. He was accompanied by a person who was a paid FBI informant, court records show.

Das, a Bangladeshi citizen who is a legal U.S. resident, was indicted for attempting to provide support to the Islamic State from October 2015 to September 2016, the Justice Department said in a statement.

The statement and the indictment gave no details about the charge of attempting to murder an agent of the Federal Bureau of Investigation. Das also was indicted on a firearms offense.

Officials were not immediately available to comment.

The three-count indictment supersedes a charge filed shortly after his arrest.

Das told the informant that he was committed to attacking a military service member, adding, “That’s my goal in life,” according to an October 2016 affidavit.

Das remains in custody and if convicted faces up to life in prison. His attorney, federal public defender Julie Stelzig, did not respond to requests for comment.

(Reporting by Ian Simpson in Washington; Editing by Dan Grebler)

U.S. denies bombing Iraqi Shi’ite militia near Syrian border

Mourners pray near the coffins of Iraqi Shi'te fighters known as Kattaib Sayeed al-Shuhadaa, who were killed near the Syrian border, during the funeral in Najaf, Iraq August 8, 2017. REUTERS/Alaa Al-Marjani

BAGHDAD (Reuters) – The U.S.-led coalition fighting Islamic State on Tuesday denied responsibility for an attack near the Syrian border which killed dozens of members of an Iraqi Shi’ite militia and, that group said, several of Iran’s elite Revolutionary Guards.

A spokesman for the Iran-backed Kataib Sayyid al-Shuhada militia said 36 of its fighters had been killed in the attack on Monday and 75 others were wounded and receiving treatment.

“We hold the American army responsible for this act,” the militia said in a statement late on Monday, noting that they were targeted with smart rockets.

Iraq’s Prime Minister Haider al-Abadi said on Tuesday that initial investigation showed that Islamic State launched the attack against the militia group.

“It seems that Daesh carried out a breach using artillery and car bombs,” Abadi said in a televised press conference in Baghdad.

The U.S.-led coalition, which is attacking Islamic State militants from the air in Syria and Iraq, said the allegations were “inaccurate” and denied conducting air attacks in that area at the time.

In a statement circulated by its supporters, Islamic State claimed it was responsible for the attack and said it had captured armored vehicles, weapons and ammunition. The Iraqi Defence Ministry declined to comment.

As Islamic State is driven back by an array of forces in Iraq and Syria, its opponents and their regional patrons are vying for control of territory and seeking to secure their interests in the wider region within a shrinking battlespace.

Monday’s attack took place near At Tanf in Syria, where U.S. forces have twice before struck Iranian-backed militia in defense of a garrison used by U.S. and U.S.-backed forces.

Iran-backed Kataib Sayyid al-Shuhada is part of an umbrella of Iraqi Shi’ite paramilitary groups known as the Popular Mobilisation Forces, which is answerable to Baghdad, but includes factions loyal to Iran’s clerical leadership.

In an interview with Iran’s Tasnim news agency, Abu Ala Welayi, Kataib Sayyid al-Shuhada’s leader, accused the United States and Islamic State of jointly attacking his forces.

He said seven Revolutionary Guards had been killed, one of them being Hossein Qomi, their main commander and strategist.

No spokesman for the Revolutionary Guards was immediately available to comment.

(Reporting by Ahmed Rasheed and Bozorgmehr Sharafedin; Writing by Isabel Coles; Editing by Louise Ireland and James Dalgleish)

North Korea considers missile strike on Guam after Trump’s ‘fire and fury’ warning

North Korea considers missile strike on Guam after Trump's 'fire and fury' warning

By Maureen N. Maratita and Christine Kim

GUAM/SEOUL (Reuters) – North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after President Donald Trump told the North that any threat to the United States would be met with “fire and fury”.

The sharp increase in tensions rattled financial markets and prompted warnings from U.S. officials and analysts not to engage in rhetorical slanging matches with North Korea, which regularly threatens to destroy the United States.

North Korea said it was “carefully examining” a plan to strike Guam, which is home to about 163,000 people and a U.S. military base that includes a submarine squadron, an airbase and a Coast Guard group.

A Korean People’s Army spokesman said in a statement carried by state-run KCNA news agency the plan would be put into practice at any moment, once leader Kim Jong Un made a decision.

Guam Governor Eddie Calvo dismissed the threat and said the island was prepared for “any eventuality” with strategically placed defenses. He said he had been in touch with the White House and there was no change in the threat level.

“Guam is American soil … We are not just a military installation,” Calvo said in an online video message.

North Korea, which is pursuing missile and nuclear weapons programs in defiance of U.N. Security Council resolutions, also accused the United States of devising a “preventive war” and said in another statement that any plans to execute this would be met with an “all-out war, wiping out all the strongholds of enemies, including the U.S. mainland”.

Washington has warned it is ready to use force if needed to stop North Korea’s ballistic missile and nuclear programs but that it prefers global diplomatic action, including sanctions. The U.N. Security Council unanimously imposed new sanctions on North Korea on Saturday.

Trump issued his strongest warning yet for North Korea in comments to reporters in New Jersey on Tuesday.

“North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen,” Trump said.

U.S. Secretary of State Rex Tillerson, before landing in Guam on a pre-arranged visit, said Trump was trying to send a strong message.

“So I think the president, what the president is doing, is sending a strong message to North Korea in language that Kim Jong Un would understand, because he doesn’t seem to understand diplomatic language,” Tillerson told reporters.

Just moments after Tillerson’s remarks were reported, Trump hammered home his tough talk in a Twitter post about the U.S. nuclear arsenal, in what looked like another warning to North Korea.

“My first order as President was to renovate and modernize our nuclear arsenal,” he said. “It is now far stronger and more powerful than ever before.”

China, North Korea’s closest ally despite Beijing’s anger at Pyongyang’s missile and nuclear programs, described the situation as “complex and sensitive”, and urged calm and a return to talks.

“China calls on all sides to uphold the main direction of a political resolution to the Korean peninsula nuclear issue, and avoid any words or actions that may intensify the problem and escalate the situation,” it said in a statement sent to Reuters, repeating its customary stance.

“‘BLACK SWAN’ EVENT”

North Korea has made no secret of its plans to develop a nuclear-tipped missile able to strike the United States and has ignored all calls to halt its weapons programs.

Pyongyang says its intercontinental ballistic missiles (ICBMs) are a legitimate means of defense against perceived U.S. hostility, including joint military drills with South Korea.

The standoff drove investors out of stocks on Wednesday and into the safety of the yen, Swiss franc, gold and government debt. South Korea’s benchmark index <.KS11> and Japan’s Nikkei <.N225> both closed down more than 1 percent. [MKTS/GLOB]

“Tensions will continue to mount and could eventually develop into a ‘black swan’ event that the markets are not prudently considering,” Steve Hanke, professor of Applied Economics at Johns Hopkins University, told the Reuters Global Markets Forum.

South Korea and the United States remain technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

The South Korean capital, Seoul, is home to roughly 10 million people and within range of massed North Korean rockets and artillery, which would be impossible to destroy in a first U.S. strike.

Tens of thousands of U.S. troops remain stationed in South Korea and in nearby Japan, the only country to have been attacked with nuclear weapons. Wednesday marked the 72nd anniversary of the atomic bombing of the city of Nagasaki by the United States.

“WAR, WAR, WAR”

A senior official at South Korea’s presidential Blue House rejected talk of a crisis on the Korean peninsula, saying Seoul saw a high possibility of resolving the issue peacefully.

North Korea needed to realize its provocations are making the country more isolated and it should respond to the South’s proposal for dialogue, the official said.

In Dandong, a Chinese trading hub across the border from North Korea, residents said they were unperturbed by the escalating rhetoric.

“North Korea always talks about war, war, war, but it never happens,” said a restaurant owner who asked to be identified only by her surname, Yang.

“We now live in peaceful times. But if war does break out it will be us ordinary people that suffer.”

Tension in the region has risen since North Korea carried out two nuclear bomb tests last year and two ICBM tests in July.

Japanese fighters conducted joint air drills with U.S. supersonic bombers in Japanese skies close to the Korean peninsula on Tuesday, Japan’s Air Self Defence Force said.

On Monday, two U.S. B-1 bombers flew from Guam over the Korean peninsula as part of its “continuous bomber presence”, a U.S. official said, in a sign of the island’s strategic importance.

DEEPLY TROUBLING

Guam, popular with Japanese and South Korean tourists, is protected by the advanced U.S. Terminal High Altitude Area Defense (THAAD) anti-missile system, deployed in South Korea.

“I know they’ve not been successful,” Vilma Quichocho, a treasurer at Guam’s Department of Administration, said of previous attempts to launch missiles from North Korea. “But now they’re talking about nuclear warheads and it’s kind of scary.”

Madeleine Z. Bordallo, the U.S. Congresswoman for Guam, said she was confident U.S. forces could protect it from the “deeply troubling” North Korean nuclear threat. She called on Trump to show “steady leadership” and work with the international community to lower tension.

Seoul resident Kim Sung-un, 29, said North Korea tended to make a lot of threats about missile attacks, but did not follow through.

“So I am leaning toward going to Guam, but also at the same time, I can’t help feeling anxious about it,” she said.

Republican U.S. Senator John McCain said Trump should tread cautiously when issuing threats, unless he is prepared to act.

“I take exception to the president’s comments because you’ve got to be sure you can do what you say you’re going to do,” he said in a radio interview.

Former U.S. diplomat Douglas Paal, now with the Carnegie Endowment for International Peace think tank in Washington, said Trump should not get into a war of words with Pyongyang.

“It strikes me as an amateurish reflection of a belief that we should give as we get rhetorically. That might be satisfying at one level, but it takes us down into the mud that we should let Pyongyang enjoy alone,” said Paal, who served as a White House official under previous Republican administrations.

In a small show of goodwill, North Korea said on Wednesday it had released a Canadian pastor serving a life sentence there on humanitarian grounds.

There was no obvious direct connection between the release and the standoff with the United States, but North Korea has in the past attracted the attention of Washington, and visits by high-profile Americans, with the detention and release of U.S. citizens.

(Additional reporting by Soyoung Kim in SEOUL, Amy Miyazaki, Linda Sieg and Tim Kelly in TOKYO, Philip Wen in DANDONG, Martin Petty in MANILA, James Oliphant, Doina Chiacu, Susan Heavey, John Walcott, Idrees Ali and David Brunnstrom in WASHINGTON, Rodrigo Campos in NEW YORK, and Divya Chowdhury in MUMBAI; Writing by Lincoln Feast; Editing by Paul Tait and Nick Macfie)

Trump plans ‘major briefing’ on opioid crisis

Paramedics display a dose of the opioid overdose reversal drug Narcan, or Naloxone Hydrochloride, in an ambulance in Peabody, Massachusetts, U.S., August 8, 2017. REUTERS/Brian Snyder

By James Oliphant

BRIDGEWATER, N.J. (Reuters) – President Donald Trump has scheduled what he called a “major briefing” for Tuesday on the epidemic of opioid drug use in the United States, a health crisis that kills more than 100 Americans daily.

In the midst of a two-week getaway at his golf club in New Jersey, Trump will meet with Health and Human Services Secretary Tom Price to discuss the matter. Trump frequently mentioned the opioid crisis as a presidential candidate, but has given it less public attention since taking office in January.

A commission created by Trump to study the matter urged him last week to declare a national emergency to address what it called a crisis involving the epidemic use of opioids, framing its death toll in the context of the Sept. 11, 2001, attacks on the United States.

The commission, headed by Republican New Jersey Governor Chris Christie, recommended a series of steps Trump could take on his own without Congress. It called for waiving a federal rule that restricts the number of people who can receive residential addiction treatment under the Medicaid healthcare program for the poor and disabled.

According to the U.S. Centers for Disease Control and Prevention, opioids were involved in more than 33,000 U.S. deaths in 2015, the latest year for which data is available, and estimates show the death rate has continued rising. Price has called the epidemic one of his agency’s top priorities.

The commission cited government data showing that since 1999 U.S. opioid overdoses have quadrupled, adding that nearly two thirds of U.S. drug overdoses were linked to opioids such as heroin and the powerful painkillers Percocet, OxyContin and fentanyl.

“With approximately 142 Americans dying every day, America is enduring a death toll equal to Sept. 11 every three weeks,” commission members wrote in a report. “Your declaration would empower your cabinet to take bold steps and would force Congress to focus on funding and empowering the executive branch even further to deal with this loss of life.”

So far, the White House has given no indication Trump will adopt the panel’s recommendations.

The Republican president’s initial federal budget called for a 2 percent increase in drug treatment programs and would provide funds to increase border security to stop the flow of drugs into the country.

Substance abuse treatment activists have criticized his proposed cuts to federal prevention and research programs as well as his calls to shrink Medicaid, which covers drug treatment for hundreds of thousands of Americans.

Preserving funds to confront the opioid epidemic emerged as a sticking point in congressional efforts to repeal the Affordable Care Act this year.

Republican legislation in the Senate to dismantle the Obamacare healthcare law included $45 billion for fighting the opioid epidemic, on top of the $2 billion in an earlier version of the bill, but the measure was defeated last month.

Trump is away from Washington until later this month while the White House is undergoing renovations. He and his aides have said he is maintaining a daily working schedule. Tuesday’s meeting with Price marks his first public event in days.

“I will be holding a major briefing on the Opioid crisis, a major problem for our country, today at 3:00 P.M. in Bedminster, N.J.,” Trump wrote on Twitter.

Even before the event, the Democratic National Committee slammed Trump, with spokesman Daniel Wessel saying in a statement: “Trump promised he’d come to the aid of communities ravaged by the opioid epidemic, but so far he’s done nothing for them.”

Officials from New Hampshire criticized Trump last week after a leaked transcript of a January conversation with Mexican President Enrique Pena Nieto showed that Trump had called the New England state, hard-hit by the opioid epidemic, a “drug-infested den.”

A study published on Monday in the American Journal of Preventive Medicine and led by University of Virginia researchers found that official figures issued by states on deaths caused by opioid and heroin overdoses were substantially under-reported.

The researchers examined death certificates dating from 2008 to 2014 and found that national mortality rates for opioids were 24 percent above previously reported data, and the heroin mortality rate was 22 percent higher.

(Reporting by Doina Chiacu and James Oliphant; Additional reporting by Yasmeen Abutaleb and Susan Cornwell; Editing by Will Dunham)

Former FrontPoint manager, out of jail, wants to run prison ministry

FILE PHOTO: Joseph "Chip" Skowron, who ran FrontPoint Partners' healthcare funds, exits the Manhattan Federal Courthouse in New York April 13, 2011. REUTERS/Brendan McDermid

By Brendan Pierson

(Reuters) – A former manager at defunct hedge fund FrontPoint Partners who served more than three years in prison for insider trading on Monday asked a U.S. judge to end his supervised release early so he can help a run a Christian ministry aimed at prisoners.

In a letter to U.S. District Judge Denise Cote in Manhattan, a lawyer for Joseph “Chip” Skowron said the request was warranted in light of his client’s “exemplary” behavior since his April 2011 arrest.

While serving time at Schuylkill Federal Prison Camp in Pennsylvania, Skowron, 48, worked as a tutor, started a Sunday Bible study and led Monday morning religious meetings, according to his lawyer Joshua Epstein.

After serving the last several months of his sentence in home confinement and following his release last November, Skowron co-founded a chapter of the New Canaan Society, a Connecticut-based Christian group, Epstein wrote. The chapter, NCS Inside, is devoted to ministering to federal and state prison inmates.

The NCS website describes itself as a men’s-only group who “gather together to encourage each other in friendship and faith.”

Epstein said prisons have refused to let Skowron enter to meet with prisoners because he is on supervised release.

“This is limiting Mr. Skowron’s efforts on behalf of NCS Inside, as well as NCS Inside’s effectiveness and reach,” Epstein wrote.

Federal prosecutors are not objecting to Skowron’s request, according to Dawn Dearden, a spokeswoman for the U.S. attorney’s office in Manhattan.

Skowron pleaded guilty in August 2011 to one count of conspiracy to commit securities fraud and obstruct justice, admitting that he traded in the securities of Human Genome Sciences Inc in 2008 based on non-public information.

In a separate civil case, Skowron was ordered to pay back $31 million of his compensation to Morgan Stanley, which owned FrontPoint between 2006 and 2011, minus a $6 million penalty he was already ordered to pay in his criminal case.

Investors began pulling out of FrontPoint in the wake of the insider trading charges, ultimately forcing the firm, which once managed as much as $11 billion, to shut down.

(Reporting by Brendan Pierson in New York; Editing by Leslie Adler)

Military can destroy drones over domestic U.S. bases: Pentagon

FILE PHOTO: A drone hovers at a viewpoint overlooking the Space Needle and skyline of tech hub Seattle, Washington, U.S. February 11, 2017. REUTERS/Chris Helgren

WASHINGTON (Reuters) – The Pentagon has given more than 130 U.S. military bases across the United States the green light to shoot down private and commercial drones that could endanger aviation safety or pose other threats.

The number of uncrewed aircraft in U.S. skies has zoomed in recent years and continues to increase rapidly – along with concern among U.S. and private-sector officials that dangerous or even hostile drones could get too close to places like military bases, airports and sports stadiums.

While the specific actions that the U.S. military can take against drones are classified, they include destroying or seizing private and commercial drones that pose a threat, Pentagon spokesman Navy Captain Jeff Davis told reporters on Monday.

The classified guidelines were distributed early last month. The Pentagon sent out unclassified guidance on how to communicate the policy to communities on Friday.

“The increase of commercial and private drones in the United States has raised our concerns with regards to the safety and security of our installations, aviation safety and the safety of people,” Davis said.

In April, flights of nearly all drones over 133 U.S. military facilities were banned due to security concerns.

Drones have become popular as toys and with hobbyists, and have commercial uses such as aerial photography. Amazon.com Inc <AMZN.O> and Alphabet Inc’s Google unit <GOOGL.O> have been exploring the use of drones to deliver goods ordered online.

The FAA estimated the commercial drone fleet would grow from 42,000 at the end of 2016 to about 442,000 aircraft by 2021. The FAA said there could be as many as 1.6 million commercial drones in use by 2021.

(Reporting by Idrees Ali; Editing by Jonathan Oatis)

Tillerson in Thailand presses for more action on North Korea

U.S. Secretary of State Rex Tillerson shakes hands with Thailand's Foreign Minister Don Pramudwinai at the Ministry of Foreign Affairs in Bangkok, Thailand August 8, 2017. REUTERS/Athit Perawongmetha

By Amy Sawitta Lefevre

BANGKOK (Reuters) – U.S. Secretary of State Rex Tillerson on Tuesday pressed Thai leaders for more action on North Korea during the highest level visit to Thailand by a U.S. official since a military coup in 2014 soured relations with the United States.

Tillerson’s top priority has been urging Southeast Asian countries to do more to cut funding streams for North Korea.

The United States believes North Korean front companies are active in Thailand and is trying to encourage the Thais to shut them down, Assistant Secretary for East Asian and Pacific Affairs Susan Thornton told reporters aboard Tillerson’s plane.

The companies are using Bangkok as a regional hub and change their names frequently, she said.

Before meeting Tillerson, Prime Minister Prayuth Chan-ocha said Thailand would support a U.N. resolution on new sanctions on Pyongyang over its missile tests. But he made no mention of specific action.

The United States was encouraging Thailand to take as many North Korean refugees as it can handle, Thornton said. Reuters reported exclusively last week that the number of North Koreans slipping illegally into Thailand has surged in recent months.

Thailand’s own politics and human rights record were also in focus, as Washington strengthens relations with its oldest ally in the region after they were downgraded following the coup.

“We want Thailand to emerge as a strengthened democracy that respects and guarantees human rights and fundamental freedoms at home and plays a leading role in advancing regional security and prosperity,” a US embassy spokesman said.

“UPS AND DOWNS”

Tillerson offered no specific message on human rights when he spoke to the American community at the ambassador’s residence and highlighted the 200-year-old relationship.

“We want to continue to grow that relationship, even in its ups and downs,” he said.

Tillerson met Thailand’s foreign minister, Don Pramudwinai, before junta chief Prayuth. Don also emphasized support for the U.N. resolution on North Korea.

Following his meeting with Tillerson, Don told reporters in Bangkok that trade between Thailand and North Korea had dropped by as much as 94 percent over the past year.

“Thailand will act as a good member of the United Nations … one result is trade which dropped significantly. It dropped 94 percent,” Don told reporters.

U.S. President Donald Trump has spoken to Prayuth by telephone and invited him to the White House, but no date has been set yet.

Human rights groups have voiced concern about the re-establishment of normal relations while Thailand’s junta continues to crack down on critics.

“It would be a practical mistake for Tillerson to not condition positive diplomatic relations on improvements in the protection of human rights,” Matthew Smith, of the Fortify Rights group, told Reuters.

Thailand’s military seized power in May 2014 after months of street protests with a promise to eventually restore democracy, but elections will not happen before next year and a new constitution retains a powerful political say for the army.

Since the coup, Thailand has aligned itself more closely with Beijing, and this year approved purchases of more than $500 million worth of Chinese submarines, tanks and helicopters, besides construction of a new rail link.

Another source of friction is Thailand’s trade surplus over the United States. It was the 11th largest last year, at nearly $19 billion, although Thai officials expect a sharp rise in U.S. imports to reduce it.

During his five-hour visit to Bangkok, Tillerson signed a condolence book for the revered late King Bhumibol Adulyadej, whose death after seven decades on the throne was felt deeply in Thailand.

Tillerson’s visit follows his attendance at a regional security forum in Manila at the weekend.

(Additional reporting by Aukkarapon Niyomyat, Juarwee Kittisilpa and Panu Wongcha-um; Editing by Matthew Tostevin and Clarence Fernandez)