Deadly protests mar Venezuela ballot as voters snub Maduro assembly

Flames erupt as clashes break out near security forces members (R) while the Constituent Assembly election is being carried out in Caracas, Venezuela,

By Alexandra Ulmer and Anggy Polanco

CARACAS/SAN CRISTOBAL, Venezuela, (Reuters) – Deadly protests rocked Venezuela on Sunday as voters broadly boycotted an election for a constitutional super-body that unpopular leftist President Nicolas Maduro vowed would begin a “new era of combat” in the crisis-stricken nation.

Anti-Maduro activists wearing hoods or masks erected barricades on roads, and scuffles broke out with security forces who moved in quickly to disperse demonstrators who denounced the election as a naked power grab by the president.

Authorities said 10 people were killed in the confrontations, which made Sunday one of the deadliest days since massive protests started in early April.

Venezuelan President Nicolas Maduro show his ballot as casts his vote at a polling station during the Constituent Assembly election in Caracas, Venezuela July 30, 2017.

Venezuelan President Nicolas Maduro show his ballot as casts his vote at a polling station during the Constituent Assembly election in Caracas, Venezuela July 30, 2017. Miraflores Palace/Handout via REUTERS

Maduro, widely disliked for overseeing an unraveling of Venezuela’s economy, has promised the assembly will bring peace by way of a new constitution after four months of opposition protests in which more than 120 people have been killed.

Opposition parties sat out the election, saying it was rigged to increase Maduro’s powers, a view shared by countries including Spain, Canada, Colombia and the United States.

The Trump administration is considering imposing U.S. sanctions on Venezuela’s vital oil sector in response to Sunday’s election, U.S. officials said.

Potential U.S. sanctions on sales of light crude to Venezuela’s oil company PDVSA would hamper its already weak refining network.

Caracas was largely shut down, streets were deserted and polling stations were mostly empty, dealing a blow to the legitimacy of the vote. A bomb exploded in the capital and wounded seven police officers in what could be the spread of more aggressive tactics.

Critics say the assembly will allow Maduro to dissolve the opposition-run Congress, delay future elections and rewrite electoral rules to prevent the socialists from being voted out of power. The opposition vowed to hold protests again on Monday and to keep pressuring Maduro’s cash-strapped government until he’s forced from office.

“Even if they win today, this won’t last long,” said opposition supporter Berta Hernandez, a 60-year-old doctor in a wealthier Caracas district. “I’ll continue on the streets because, not long from now, this will come to an end.”

Maduro, a former bus driver and union leader narrowly elected in 2013, dismisses criticism of the assembly as right-wing propaganda aimed at sabotaging the brand of socialism created by his mentor and predecessor, the late Hugo Chavez.

“The ’emperor’ Donald Trump wanted to halt the Venezuelan people’s right to vote,” said Maduro as he rapidly voted at 6 a.m. in a low-income area of Caracas that has turned on the government.

“A new era of combat will begin. We’re going all out with this constituent assembly,” he said.

But with polls showing some 70 percent of Venezuelans oppose the vote, the country’s 2.8 million state employees are under huge pressure to participate – with some two dozen sources telling Reuters they were being threatened with dismissal. Workers were being blasted with text messages and phone calls asking them to vote and report back after doing so.

The opposition estimated participation was at around a paltry 12 percent, but warned the government was gearing up to announce some 8.5 million people had voted.

 

‘SLAP MADURO’

Fueling anger against Maduro is an unprecedented economic meltdown in the country of some 30 million people, which was once a magnet for European migrants thanks to an oil boom that was the envy of Latin America.

However, nearly two decades of heavy currency and price controls have asphyxiated business. Venezuelans have seen their purchasing power shredded by the world’s highest inflation rate.

Millions of Venezuelans now struggle to eat three times a day due to shortages of products as basic as rice and flour.

“Sometimes I take bread from my mouth and give it to my two kids,” said pharmacy employee Trina Sanchez, 28, as she waited for a bus to work. “This is a farce. I want to slap Maduro.”

To show the massive scale of public anger, the opposition organized an unofficial referendum over Maduro’s plan earlier this month.

More than 7 million voters overwhelmingly rejected the constituent assembly and voted in favor of early elections.

The opposition’s bid last year to hold a recall referendum against Maduro was rejected, regional elections have been postponed and the president has repeatedly ignored Congress.

 

BOMB BLAST

In Sunday’s gravest incident, a bomb went off as a group of police officers on motorbikes sped past Caracas’ Altamira Plaza, an opposition stronghold. The state prosecutor’s office said seven officers were wounded and four motorbikes incinerated.

Clashes were also reported in the volatile Andean state of Tachira, whose capital is San Cristobal, where witnesses told Reuters an unidentified group of men had showed up at two separate street protests and shot at demonstrators.

Fatalities over the weekend included two teenagers and a candidate to the assembly killed during a robbery in the jungle state of Bolivar. The state’s Socialist Party governor, Francisco Rangel, said the death was a “political hit job” and blamed it on the opposition.

Supporters of “Chavismo,” the movement founded by Chavez, Maduro’s more charismatic predecessor who enjoyed high oil prices for much of his mandate, said they wanted to halt the unrest.

“The (opposition) wants deaths and roadblocks and the government wants peace,” said Olga Blanco, 50, voting for candidates to the assembly at a school in Caracas.

The assembly is due to sit within 72 hours of results being certified, with government loyalists such as powerful Socialist Party No. 2 Diosdado Cabello and Maduro’s wife and son expected to win seats.

 

(Additional reporting by Andreina Aponte, Girish Gupta, Corina Pons, Jaczo Gomez, Hugh Bronstein and Carlos Garcia in Caracas, Maria Ramirez in Puerto Ordaz, Mircely Guanipa in Punto Fijo, Francisco Aguilar in Barinas, Matt Spetalnick and Marianna Parraga in Houston; Writing by Brian Ellsworth, Girish Gupta and Alexandra Ulmer; Editing by Daniel Flynn, Sandra Maler and Paul Tait)

 

Hundreds of counties at risk for no Obamacare insurer in 2018

FILE PHOTO: Healthcare activists protest against the Republican healthcare bill on Capitol Hill in Washington, U.S., July 19, 2017. REUTERS/Aaron P. Bernstein

By Caroline Humer

NEW YORK (Reuters) – With Republican efforts to dismantle Obamacare in disarray, hundreds of U.S. counties are at risk of losing access to private health coverage in 2018 as insurers consider pulling out of those markets in the coming months.

Republican senators failed this week to repeal and replace Obamacare, former President Barack Obama’s signature healthcare reform law, creating new uncertainty over how the program providing health benefits to 20 million Americans will be funded and managed in 2018.

In response, Republican President Donald Trump on Friday again suggested that his administration would let the Obamacare program “implode.” He has weakened enforcement of the law’s requirement for individuals to buy insurance, threatened to cut off funding and sought to change plan benefits through regulations.

Anthem Inc, Cigna Corp, Health Care Service Corp and Molina Healthcare, four of the biggest health insurers selling Obamacare plans, said they are weighing whether to pull out of more markets for 2018 rather than face financial losses. They have until Sept. 27 to finalize their plans.

So far, 40 U.S. counties are expected to have no insurer offering individual coverage next year, but that number could rise by the hundreds, according to U.S. government data, Kaiser Family Foundation analysis and insurer disclosures. More than 1,300 counties, primarily in 15 states, currently have only one insurer participating in 2018. Anthem and HCSC are the last man standing in one-third of those counties and states – putting those areas in particular at risk.

“Right now the number of counties at immediate risk of having no insurers in 2018 is small, but it could easily grow significantly if a couple major insurers decide to exit,” Larry Levitt, health economist at the Kaiser Family Foundation, said.

Many insurers have been waiting for an answer from Trump or lawmakers on whether they will continue to fund $8 billion in annual government subsidies. Without assurances, many insurers plan to raise rates an additional 20 percent by an Aug. 16 deadline for premium prices. Others say that the many unknowns will make the business too risky.

The last-minute drama has left millions of Americans questioning whether they will have medical coverage next year.

Julie Grady, a 59-year-old small business owner in Carson City, Nevada, is currently covered by Blue Cross Blue Shield of Nevada, part of Anthem, which has already decided to leave the exchanges in her county and most of the state. Carson City will have no insurer on the exchanges next year.

Grady’s pays a reduced premium of $70 per month and a deductible under $1,000 for her plan, which is part of the Affordable Care Act, commonly called Obamacare. Grady is looking at being uninsured, as she was before the law.

“I would have to go without health insurance,” she said. “I would just stay healthy, hike, eat well. I’d be in trouble if something catastrophic happened. I would lose everything.”

ANTHEM CONSIDERING 2018 PLANS

Anthem, the second-largest U.S. health insurer, sells Blue Cross Blue Shield plans in 14 states. It has already decided to pull out of most individual markets in Nevada, Ohio, Indiana and Wisconsin in 2018. Earlier this week, Chief Executive Officer Joe Swedish said he was still weighing 2018 participation in its other states.

In states like Colorado, Georgia, Kentucky, Missouri, and Virginia, Anthem sells plans in more than 250 counties where it is the only insurer, and they could be left “bare” next year, according to government data.

Health Care Services Corp is a Blue Cross Blue Shield licensee in five states and is the only Obamacare individual insurer in more than 90 Texas counties, more than 75 Oklahoma counties, and half a dozen Illinois counties. It confirmed on Friday that it has submitted products for its five states but is still weighing next year.

“We’re working through the regulatory filing process and hope to fully participate…in 2018, however no final decisions have been made,” HCSC spokeswoman Kristen Cunningham said.

Molina, which has more than 1 million members in Obamacare plans, and Cigna, with more than 250,000 participants, have said they need more certainty from the government to decide on 2018 participation and would weigh their decisions up until the late September deadline.

State insurance regulators have worked hard in recent months to replace insurers who have left. In Nevada, for instance, Centene Corp and Aetna Inc entered in some counties that Anthem left after the insurance commissioner said he would favor these insurers for its Medicaid contract bids.

But they are unlikely to find replacements for new dropouts in these final weeks, particularly if the Trump administration signals it won’t fund $8 billion in subsidies for out-of-pocket medical costs.

“There is almost no chance they would step in to participate,” said Kurt Wrobel, a fellow at the Society of Actuaries and chief financial officer of the Geisinger Health Plan in Pennsylvania.

Some insurers say they will likely just raise rates and hope it works. Blue Cross Blue Shield of Michigan filed two sets of rates with the state department of insurance, one up to 32 percent higher if the fate of subsidies remains unclear.

“We don’t have any plans to pull out,” said Rick Notter, director of the individual business at BCBS Michigan. “But it would certainly help to have more certainty around what the market holds.”

(Additional reporting by Jilian Mincer; Editing by Michele Gershberg and Cynthia Osterman)

Flooding threatens U.S. Mid-Atlantic, central Appalachians

(Reuters) – Heavy rains will drench the U.S. Mid-Atlantic and central Appalachians on Saturday after flooding overnight closed roadways and forced water rescues across the region, forecasters said.

A swathe of land from eastern North Carolina up through Washington D.C. and southern Pennsylvania could expect an additional 2 to 5 inches (5 to 13 cm) on Saturday after more than 4 inches (10 cm) fell in parts of the region, the National Weather Service said in advisories.

“Flash flooding from heavy rain will cause a potentially life threatening situation overnight,” the National Weather Service said early on Saturday morning in flash flood warnings and watches it issued for the region.

Numerous people were rescued from vehicles stuck in flooded roadways across the region in southwestern Pennsylvania including Pittsburgh and in the Washington D.C. metro area on Friday night, according to Accuweather.com.

The storm system will bring gusty winds of up to 45 mph (70 kph) to the region, causing rough surf, beach erosion and strong rip current, Accuweather said in its forecast.

(Reporting by Brendan O’Brien in Milwaukee Editing by Jeremy Gaunt.)

Trump replaces chief of staff Priebus with retired General Kelly

U.S. President Donald Trump talks to reporters about the departure of his Chief of Staff Reince Priebus as he arrives aboard Air Force One at Joint Base Andrews, Maryland, U.S. July 28, 2017. REUTERS/Jonathan Ernst TPX IMAGES OF THE DAY

By Steve Holland and Roberta Rampton

WASHINGTON (Reuters) – President Donald Trump replaced his beleaguered White House chief of staff, Reince Priebus, after only six months on the job on Friday, installing retired General John Kelly in his place in a major shake-up of his top team.

Trump announced the move in a tweet a day after his new communications director, Anthony Scaramucci, accused Priebus of leaking information to reporters in a profanity-laced tirade.

Kelly, 67, a retired four-star Marine Corps general, is currently secretary of the Department of Homeland Security and will assume the chief of staff post on Monday. He was hired with the goal of bringing more discipline to the White House, a senior White House official said.

Trump issued his decision just as he landed aboard Air Force One after a visit to Long Island and hours after Republican efforts to repeal Obamacare failed in the Senate.

Priebus was on the plane with the Republican president and made no comment. Reporters had noticed no sign of stress from Priebus during the day.Priebus told CNN he had been talking to Trump for some time about exiting the White House, and is the latest in a long line of officials to leave or not take a job at the White House.

“The president has a right to hit a reset button. I think it’s time to hit the reset button,” Priebus said in a televised interview from the White House. “He intuitively determined that it was time to do something different, and I think he’s right.”

Trump had lost confidence in Priebus, privately questioning his competence after major legislative items failed to pass the U.S. Congress, a Trump confidant said.

A source close to Priebus said the former Republican National Committee chairman turned in his resignation on Thursday night, after Scaramucci’s rant against him was published by the New Yorker magazine.

A senior White House official said Trump had informed Priebus two weeks ago that he would be replacing him and that the move had no connection to Scaramucci, whose hiring a week ago prompted Sean Spicer, a Priebus ally, to abruptly resign as press secretary.

After frequent conversations with Kelly, Trump recently warmed up to the idea of naming Kelly chief of staff to more effectively manage personnel and offered it to him earlier this week, a senior White House official said.

KELLY ‘A STAR’

Carrying an umbrella, Trump approached reporters as he stepped off Air Force One, with rain storming down.

“Reince is a good man. John Kelly will do a fantastic job. General Kelly has been a star, done an incredible job thus far, respected by everybody. He’s a great, great American. Reince is a good man,” Trump said.

Priebus’ 189-day tenure was the shortest in modern history for a White House chief of staff. He had hoped to stay on at least a year but struggled to manage his unpredictable boss and was unable to get a handle on conflicting factions in the White House who have frequently squabbled.

In a statement, Priebus said it had been one of the great honors of his life to serve Trump and the country.

“I will continue to serve as a strong supporter of the president’s agenda and policies. I can’t think of a better person than General John Kelly to succeed me and I wish him God’s blessings and great success,” he said.

Trump loyalists had chafed at Priebus, feeling he had installed his RNC allies at the White House and overlooked the people close to Trump who helped get him elected president in November.

But Priebus allies felt he was an important link to establishment Republicans in Washington as the capital attempted to adjust to the anti-establishment style of the president.

“He has served the president and the American people capably and passionately,” House of Representatives Speaker Paul Ryan said of his close friend in a statement. “He has achieved so much, and he has done it all with class. I could not be more proud to call Reince a dear friend.”

White House spokeswoman Sarah Sanders said she did not think Priebus’ exit would affect the White House’s relationship with the Republican Party.

“I think we’ve still got a good relationship. We’re going to continue working with the party and doing what we came here to do,” she said.

Homeland Security Deputy Secretary Elaine Duke will become the acting chief of the department on Monday, DHS said in a statement.

U.S. Representative Michael McCaul, a Texas Republican who chairs the House Homeland Security Committee, is among those being considered for Homeland Security secretary, a DHS official said.

(Additional reporting by Ayesha Rascoe and David Shepardson; Editing by Lisa Shumaker)

North Korea tests another ICBM, claims all of U.S. in strike range

Intercontinental ballistic missile (ICBM) Hwasong-14 is pictured during its second test-fire in this undated picture provided by KCNA in Pyongyang on July 29, 2017. KCNA via Reuters

By Jack Kim and Idrees Ali

SEOUL/WASHINGTON (Reuters) – North Korea said on Saturday it had conducted another successful test of an intercontinental ballistic missile (ICBM) that proved its ability to strike America’s mainland, drawing a sharp warning from U.S. President Donald Trump and a rebuke from China.

 

North Korean leader Kim Jong Un personally supervised the midnight launch of the missile on Friday night and said it was a “stern warning” for the United States that it would not be safe from destruction if it tries to attack, the North’s official KCNA news agency said.

North Korea’s state television broadcast pictures of the launch, showing the missile lifting off in a fiery blast in darkness and Kim cheering with military aides.

“The test-fire reconfirmed the reliability of the ICBM system, demonstrated the capability of making a surprise launch of the ICBM in any region and place any time, and clearly proved that the whole U.S. mainland is in the firing range of the DPRK missiles, (Kim) said with pride,” KCNA said.

DPRK is short for the North’s official name, the Democratic People’s Republic of Korea.

The launch comes less than a month after the North conducted its first ICBM test in defiance of years of efforts led by the United States, South Korea and Japan to rein in Pyongyang’s nuclear weapons ambitions.

The North conducted its fourth and fifth nuclear tests last year and has engaged in an unprecedented pace of missile development that experts said significantly advanced its ability to launch longer-range ballistic missiles.

“By threatening the world, these weapons and tests further isolate North Korea, weaken its economy, and deprive its people,” Trump said in a statement. “The United States will take all necessary steps to ensure the security of the American homeland and protect our allies in the region.”

China, the North’s main ally, said it opposed North Korea’s “launch activities that run counter to Security Council resolutions and the common wishes of the international community.”

A foreign ministry statement added: “At the same time, China hopes all parties act with caution, to prevent tensions from continuing to escalate, to jointly protect regional peace and stability.”

Early on Saturday, the United States and South Korea conducted a live-fire ballistic missile exercise in a display of firepower in response to the missile launch, the U.S. and South Korean militaries said.

ALL OPTIONS

The Trump administration has said that all options are on the table to deal with North Korea. However it has also made clear that diplomacy and sanctions are its preferred course.

The foreign ministers of South Korea, Japan and the United States held separate phone calls and agreed to step up strategic deterrence against the North and push for a stronger U.N. Security Council sanctions resolution, the South and Japan said.

South Korea has also said it will proceed with the deployment of four additional units of the U.S. THAAD anti-missile defense system that President Moon Jae-in has earlier delayed for an environmental assessment.

Moon, who has pledged to engage the North in dialogue but was snubbed by Pyongyang recently over his proposal to hold cross-border military talks, said Seoul will also seek to expand its missile capabilities.

China’s Foreign Ministry expressed serious concern about the announced move on THAAD, saying it will only make things more complex. Beijing opposes the missile defense system because its power radars can look deep into China.

“We strongly urge South Korea and the United States to face squarely China’s concerns about its interests, stop the relevant deployment process and withdraw the related equipment,” the foreign ministry said in a statement.

The missile test came a day after the U.S. Senate approved a package of sanctions on North Korea, Russia and Iran. Trump is ready to sign the bill, the White House said on Friday.

The sanctions are likely to include measures aimed at Chinese financial institutions that do business with North Korea. Washington has also proposed a new round of U.N. sanctions on North Korea following its July 4 ICBM test.

“RELIABLE ICBM BY YEAR-END”

In Friday’s test, North Korea’s Hwasong-14 missile, named after the Korean word for Mars, reached an altitude of 3,724.9 km and flew 998 km for 47 minutes and 12 seconds before landing in the waters off the Korean peninsula’s east coast, KCNA said.

Western experts said the flight was an improvement on North Korea’s first test of an ICBM.

The flight demonstrated successful stage separation, reliability of the vehicle’s control and guidance to allow the warhead to make an atmospheric re-entry under conditions harsher than under a normal long-range trajectory, KCNA said.

The trajectory was in line with the estimates given by the South Korean, U.S. and Japanese militaries, which said the missile was believed to be an ICBM-class rocket.

Independent weapons experts said the launch demonstrated many parts of the United States were within range if the missile had been launched at a flattened trajectory.

The U.S.-based Union of Concerned Scientists said its calculations showed the missile could have been capable of going as far into the United States as Denver and Chicago.

David Wright of the Union of Concerned Scientists wrote in a blog post that if it had flown on a standard trajectory, the missile would have had a range of 10,400 km (6,500 miles).

Michael Elleman of the International Institute for Strategic Studies estimated a range of at least 9,500 km and said the window for a diplomatic solution with North Korea “is closing rapidly.”

“The key here is that North Korea has a second successful test in less than one month,” he said. “If this trend holds, they could establish an acceptably reliable ICBM before year’s end.”

(The story fixes garble in para 18)

(Additional reporting by Christine Kim in Seoul, Kaori Kaneko, Elaine Lies and William Mallard in Tokyo, Ben Blanchard in Beijing, David Brunnstrom in Washington and Philip Blenkinsop in Brussels; Editing by Raju Gopalakrishnan)

Trump to sign Russia sanctions, Moscow retaliates

FILE PHOTO - U.S. President Donald Trump shakes hands with Russia's President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Eric Beech and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – U.S. President Donald Trump will sign legislation that imposes sanctions on Russia, the White House said on Friday, after Moscow ordered the United States to cut hundreds of diplomatic staff and said it would seize two U.S. diplomatic properties in retaliation for the bill.

The U.S. Senate had voted almost unanimously on Thursday to slap new sanctions on Russia, forcing Trump to choose between a tough position on Moscow and effectively dashing his stated hopes for warmer ties with the country or to veto the bill amid investigations in possible collusion between his campaign and Russia.

By signing the bill into law, Trump can not ease the sanctions against Russia unless he seeks congressional approval.

Moscow’s retaliation, announced by the Foreign Ministry on Friday, had echoes of the Cold War. If confirmed that Russia’s move would affect hundreds of staff at the U.S. embassy, it would far outweigh the Obama administration’s expulsion of 35 Russians in December.

The legislation was in part a response to conclusions by U.S. intelligence agencies that Russia meddled in the 2016 U.S. presidential election, and to further punish Russia for its annexation of Crimea in 2014.

Late on Friday, the White House issued a statement saying Trump would sign the bill after reviewing the final version. The statement made no reference to Russia’s retaliatory measures.

Russia had been threatening retaliation for weeks. Its response suggests it has set aside initial hopes of better ties with Washington under Trump, something the U.S. leader, before he was elected, had said he wanted to achieve.

Relations were already languishing at a post-Cold War low because of the allegations that Russian cyber interference in the election was intended to boost Trump’s chances, something Moscow flatly denies. Trump has denied any collusion between his campaign and Russian officials.

The Russian Foreign Ministry complained of growing anti-Russian feeling in the United States, accusing “well-known circles” of seeking “open confrontation”.

President Vladimir Putin had warned on Thursday that Russia would have to retaliate against what he called boorish U.S. behavior. Putin’s spokesman, Dmitry Peskov, told reporters on Friday that the Senate vote was the last straw.

Russian foreign minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson by telephone that Russia was ready to normalize relations with the United States and to cooperate on major global issues.

Lavrov and Tillerson “agreed to maintain contact on a range of bilateral issues”, the Russian Foreign Ministry said.

The ministry said the United States had until Sept. 1 to reduce its diplomatic staff in Russia to 455 people, the number of Russian diplomats left in the United States after Washington expelled 35 Russians in December.

‘EXTREME AGGRESSION’

It was not immediately clear how many U.S. diplomats and other workers would be forced to leave either the country or their posts, but the Interfax news agency cited an informed source as saying “hundreds” of people would be affected.

A diplomatic source told Reuters that it would be for the United States to decide which posts to cut, whether occupied by U.S. or Russian nationals.

An official at the U.S. Embassy, who declined to be named because they were not allowed to speak to the media, said the Embassy employed around 1,100 diplomatic and support staff in Russia, including Russian and U.S. citizens.

Russian state television channel Rossiya 24 said over 700 staff would be affected but that was not confirmed by the foreign ministry or the U.S. embassy.

The Russian Foreign Ministry’s statement said the passage of the bill confirmed “the extreme aggression of the United States in international affairs”.

Deputy Foreign Minister Sergei Ryabkov met outgoing U.S. ambassador John Tefft on Friday to inform him of the counter measures, Russian news agencies reported. The U.S. Embassy said Tefft had expressed his “strong disappointment and protest”.

Most U.S. diplomatic staff, including around 300 U.S. citizens, work in the main embassy in Moscow, with others based in consulates in St Petersburg, Yekaterinburg and Vladivostok.

The Russian Foreign Ministry said it was also seizing a Moscow dacha compound used by U.S. diplomats for recreation, from Aug. 1, as well as a U.S. diplomatic warehouse in Moscow.

In December, the outgoing Obama administration seized two Russian diplomatic compounds – one in New York and another in Maryland – at the same time as it expelled Russian diplomats.

Trump and Putin met for the first time at a G20 summit in Germany this month in what both sides described as a productive encounter, but Russian officials have become increasingly convinced that Congress and Trump’s political opponents will not allow him to mend ties, even if he wants to.

The European Union has also threatened to retaliate against new U.S. sanctions on Russia, saying they would harm the bloc’s energy security by targeting projects including a planned new pipeline to bring Russian natural gas to northern Europe.

A European Commission spokesman in Brussels said the bloc would be following the sanctions process closely.

(Additional reporting by Dmitry Solovyov, Polina Devitt, Jack Stubbs and Denis Pinchuk in Moscow, Patricia Zengerle and Ayesha Rascoe in Washington; Editing by Kevin Liffey, Grant McCool and Christian Schmollinger)

Republican effort to gut Obamacare crashes in U.S. Senate

The United States Capitol is seen prior to an all night round of health care votes on Capitol Hill in Washington, U.S., July 27, 2017. REUTERS/Aaron P. Bernstein

By Yasmeen Abutaleb, Amanda Becker and David Morgan

WASHINGTON (Reuters) – A U.S. Senate led by Donald Trump’s fellow Republicans failed by a single vote to pass a healthcare bill on Friday, delivering a stinging blow to the president as it undermined his campaign promise to dismantle Obamacare.

Three Republican senators – John McCain, Susan Collins and Lisa Murkowski – joined Senate Democrats in the dramatic early-morning 51-49 vote rejecting the bill. The outcome may spell doom for the party’s seven-year quest to gut a 2010 law that was Democratic former President Barack Obama’s signature domestic policy achievement.

For the moment the Affordable Care Act, which extended health insurance to 20 million people and drove the percentage of uninsured people to historic lows, remains in place and must be run by an administration that is hostile to it.

This leaves health insurers unsure how long the administration will continue to make billions of dollars in Obamacare payments that help cover out-of-pocket medical expenses for low-income Americans.

In Friday’s vote, Senate Majority Leader Mitch McConnell was unsuccessful in securing passage of even a stripped-down so-called skinny bill that would have repealed a few key parts of Obamacare. Broader legislation was defeated earlier in the week.

“It’s time to move on,” McConnell, whose reputation as a master strategist was in tatters, said on the Senate floor after the vote that unfolded at roughly 1:30 a.m.

“The American people are going to regret that we couldn’t find a better way forward,” McConnell added.

Republicans have long denounced Obamacare – which expanded the Medicaid health insurance for the poor and disabled and created online marketplaces for individuals to obtain coverage – as an intrusion by government on people’s healthcare decisions.

The Senate failure to move forward on dismantling it called into question the Republican Party’s basic ability to govern even as it controls the White House, Senate and House of Representatives.

Trump has not had a major legislative victory after more than six months in office. He had promised to get major healthcare legislation, tax cuts and a boost in infrastructure spending through Congress in short order.

“3 Republicans and 48 Democrats let the American people down. As I said from the beginning, let Obamacare implode, then deal. Watch!” Trump wrote on Twitter after the vote.

But McCain wrote on Twitter, “Skinny repeal fell short because it fell short of our promise to repeal & replace Obamacare w/ meaningful reform.”

Republicans released the skinny bill just three hours before voting began. It would have retroactively repealed Obamacare’s penalty on individuals who do not obtain health insurance, repealed for eight years a penalty on certain businesses that do not provide employees with insurance and repealed a tax on medical devices until 2020. The nonpartisan Congressional Budget Office estimated that if it became law, 15 million fewer Americans would be insured in 2018 than under existing law.

The Affordable Care Act was passed by a then-Democratic controlled Congress with no Republican support in 2010. But Republicans have failed to come up with a consensus plan to replace it at a time when they hold all the power in Washington.

UNCERTAINTY FOR HEALTHCARE INDUSTRY

Health insurers have until September to finalize their 2018 health plans in many Obamacare marketplaces.

Some insurers, including Humana and Aetna, have pulled out of such markets, citing the uncertainty over the payments. Others have raised rates by double digits and said that they will need to raise rates another 20 percent if the uncertainty does not ease. Anthem Inc, which has already left three of the 14 states where it sells Blue Cross Blue Shield plans, said this week it might pull out of more.

Wall Street traded lower on Friday with less focus on the news from the Senate overnight and more on key earnings from Amazon and Exxon. Shares of hospitals were mixed: Tenet Healthcare fell 2 percent, Community Health Systems was nearly flat and HCA Healthcare gained 1.2 percent. Shares of health insurers were also mixed. Aetna was off 0.2 percent, Anthem gained 0.4 percent and Humana was off 0.3 percent.

Democrats, and some Republicans, said the bill’s failure could present an opportunity for the two parties to work together to fix problematic areas of the Obamacare law without repealing it.

Top House Democrat Nancy Pelosi called on Republican House Speaker Paul Ryan to establish a process for moving forward on improving Obamacare, rather than repealing it.

After the House passed a bill to repeal and replace Obamacare in May, McConnell grappled to get Senate Republicans to agree on their version of the bill. Hard-line conservatives wanted a bill that would substantially gut Obamacare, while moderates were concerned over legislation that could deprive millions of people of their healthcare coverage.

Republicans hold a 52-48 majority in the 100-seat Senate and could afford to lose support from only two Republican senators, with Vice President Mike Pence ready to cast a tie-breaking vote on the Senate floor.

DRAMA OVER MCCAIN

As the vote on the skinny bill approached, all eyes in the Senate chamber were on McCain. The 2008 Republican presidential nominee flew back from Arizona earlier in the week after being diagnosed this month with brain cancer. McCain, an 80-year-old former prisoner of war in Vietnam who tangled with Trump during the 2016 election campaign and was disparaged by him, won praise for this from the president.

McCain, a veteran senator who has long been known for his independent streak, delivered a rousing speech on Tuesday calling for cooperation between the parties and then cast a decisive vote in allowing the Senate to take up the healthcare bill.

Early on Friday, he sat on the Senate floor talking to Collins, Murkowski, and Republican Senator Jeff Flake, also from Arizona. Collins and Murkowski both voted this week against broader Republican healthcare proposals, and both had concerns about the pared-down proposal.

McCain was approached before voting began by Pence and a close friend, Republican Senator Lindsey Graham. After speaking to them, McCain walked across the Senate floor to tell top Senate Democrat Chuck Schumer and other Democrats he would vote with them.

When McCain walked to the front of the Senate chamber to cast his deciding “no” vote, giving a thumbs down, Democrats cheered, knowing the bill would fail.

Trump had often expressed exasperation over the failure of congressional Republicans to overcome internal divisions to repeal Obamacare, but offered no policy specifics himself.

He has demanded at various times that Obamacare should be allowed to collapse on its own, that it should be repealed without replacement, and that it should be repealed and replaced.

(Additional reporting by Susan Cornwell, Richard Cowan and Eric Walsh in Washington, Saikat Chatterjee and Abhinav Ramnarayan in London; Writing by Will Dunham; Editing by Louise Ireland and Frances Kerry)

North Korea fires missile into sea off east coast in unusual night test

North Korean leader Kim Jong Un watches the test of a new-type anti-aircraft guided weapon system organised by the Academy of National Defence Science in this undated photo released by North Korea's Korean Central News Agency (KCNA) May 28, 2017. KCNA/via REUTERS

SEOUL (Reuters) – North Korea fired a ballistic missile on Friday in an unusual late-night test launch from its northern Jangang province that landed in the sea off its east coast, possibly in Japan’s exclusive economic zone, South Korea and Japan said.

The launch took place at 11:41 p.m. (1441 GMT), an official at South Korea’s Office of the Joint Chiefs of Staff said. The U.S. Defense Department also confirmed the launch as a ballistic missile, saying it was making further assessments.

South Korean President Moon Jae-in called a National Security Council meeting for 1 a.m. Saturday, his office said, and Japanese Prime Minister Shinzo Abe also said a National Security Council meeting would be convened.

Japanese Chief Cabinet Secretary Yoshihide Suga said that the North Korean missile flew for about 45 minutes.

(Reporting by Jack Kim in Seoul, William Mallard in Tokyo and Idrees Ali in Washington; Editing by Raju Gopalakrishnan)

U.S. says Iran rocket test breaches U.N. resolution

Simorgh rocket is launched and tested at the Imam Khomeini Space Centre, Iran, in this handout photo released by Tasnim News Agency on July 27, 2017. Tasnim News Agency/Handout via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE. TPX IMAGES OF THE DAY

DUBAI/WASHINGTON (Reuters) – Iran successfully tested a rocket that can deliver satellites into orbit, state television reported on Thursday, an action the United States said breaches a U.N. Security Council resolution because of its potential use in ballistic missile development.

Iranian state television showed footage of the firing of the rocket, mounted on a launchpad carrying pictures of Ayatollah Ruhollah Khomeini, founder of the Islamic Republic, and Supreme leader Ayatollah Ali Khamenei.

The rocket launch violated United Nations Security Council Resolution 2231, State Department spokeswoman Heather Nauert said on Thursday.

That resolution, which endorsed a 2015 nuclear deal between Iran and world powers, calls upon Iran not to undertake activities related to ballistic missiles capable of delivering nuclear weapons, including launches using such technology. It stops short of explicitly barring such activity.

“We would consider that a violation of UNSCR 2231,” Nauert said at a briefing with reporters when asked about the launch. “We consider that to be continued ballistic missile development. … We believe that what happened overnight, in the early morning hours here in Washington, is inconsistent with the Security Council resolutions.”

Tehran denies it has missiles designed to carry nuclear warheads.

“The Imam Khomeini Space Centre was officially opened with the successful test of the Simorgh (Phoenix) space launch vehicle,” state television said. “The Simorgh can place a satellite weighing up to 250 kg (550 pounds) in an orbit of 500 km (311 miles).”

“The Imam Khomeini Space Centre … is a large complex that includes all stages of the preparation, launch, control and guidance of satellites,” state television added.

The United States this month slapped new economic sanctions on Iran over its ballistic missile program, and said Tehran’s “malign activities” in the Middle East had undercut any “positive contributions” from the 2015 accord curbing its nuclear program.

President Donald Trump, who this month reluctantly recertified Iran’s compliance with the nuclear deal, told the Wall Street Journal in an interview published this week that the United States had been “extremely nice” to Iran by saying it was complying with the terms of the deal.

Trump said he thinks the United States will declare Iran to be noncompliant at the next deadline, which is in October. “They don’t comply,” he told the Journal. “I would be surprised if they were in compliance.”

Nauert on Thursday called Iran’s rocket launch a “provocative action” that violated the “spirit” of the nuclear deal.

Iran says its space program is peaceful, but Western experts suspect it may be a cover for developing military missile technologies.

On Monday, Scott Kripowicz of the directorate for international affairs at the Pentagon’s Missile Defense Agency told a conference in Israel: “Space-launch activities which involve multi-stage systems that further the development of technologies for intercontinental ballistic missiles (ICBM) are becoming a more realistic threat.

“In this region, Iran has successfully orbited small satellites and announced plans to orbit a larger satellite using the Simorgh space-launch vehicle, which could be configured to be an ICBM,” Kripowicz said.

“Progress in Iran’s space program could shorten the pathway to an ICBM, as space-launch vehicles use similar technologies, with the exception of their payloads,” he added.

(Reporting by Dubai newsroom and Dan Williams in Jerusalem; editing by Kevin Liffey, Hugh Lawson and Jonathan Oatis)

Flush times for hackers in booming cyber security job market

A recruiter advertises a QR code to attract hackers to apply for jobs at the Black Hat security conference in Las Vegas, Nevada, U.S. July27, 2017. REUTERS/Joseph Menn

By Joseph Menn and Jim Finkle

LAS VEGAS (Reuters) – The surge in far-flung and destructive cyber attacks is not good for national security, but for an increasing number of hackers and researchers, it is great for job security.

The new reality is on display in Las Vegas this week at the annual Black Hat and Def Con security conferences, which now have a booming side business in recruiting.

“Hosting big parties has enabled us to meet more talent in the community, helping fill key positions and also retain great people,” said Jen Ellis, a vice president with cybersecurity firm Rapid7 Inc, which filled the hip Hakkasan nightclub on Wednesday at one of the week’s most popular parties.

Twenty or even 10 years ago, career options for technology tinkerers were mostly limited to security firms, handfuls of jobs inside mainstream companies, and in government agencies.

But as tech has taken over the world, the opportunities in the security field have exploded.

Whole industries that used to have little to do with technology now need protection, including automobiles, medical devices and the ever-expanding Internet of Things, from thermostats and fish tanks to home security devices.

More insurance companies now cover breaches, with premiums reduced for strong security practices. And lawyers are making sure that cloud providers are held responsible if a customer’s data is stolen from them and otherwise pushing to hold tech companies liable for problems, meaning they need security experts too.

The non-profit Center for Cyber Safety and Education last month predicted a global shortage of 1.8 million skilled security workers in 2022. The group, which credentials security professionals, said that a third of hiring managers plan to boost their security teams by at least 15 percent.

For hackers who prefer to pick things apart rather than stand guard over them, an enormous number of companies now offer “bug bounties,” or formal rewards, for warnings about vulnerabilities that leave them exposed to criminals or spies.

One of the outside firms that handle such programs, HackerOne, said it has paid out $18.8 million since 2014 to fix 50,140 bugs, with about half of that work done in the past year.

Mark Litchfield made it into the firm’s “Hacker Hall of Fame” last year by being the first to pull in more than $500,000 in bounties through the platform, well more than he earned at his last full-time security job, at consulting firm NCC Group.

In the old days, “The only payout was publicity, free press,” Litchfield said. “That was the payoff then. The payoff now is literally to be paid in dollars.”

There are other emerging ways to make money too. Justine Bone’s medical hacking firm, MedSec, took the unprecedented step last year of openly teaming with an investor who was selling shares short, betting that they would lose value.

It was acrimonious, but St Jude Medical ultimately fixed its pacemaker monitors, which could have been hacked, and Bone predicted others will try the same path.

“Us cyber security nerds have spent most of our careers trying to make the world a better place by engaging with companies, finding bugs which companies may or may not repair,” Bone said.

“If we can take our expertise out to customers, media, regulators, nonprofits and think tanks and out to the financial sector, the investors and analysts, we start to help companies understand in terms of their external environment.”

Chris Wysopal, co-founder of code auditor Veracode, bought in April by CA Technologies, said that he was initially skeptical of the MedSec approach but came around to it, in part because it worked. He appeared at Black Hat with Bone.

“Many have written that the software and hardware market is dysfunctional, a lemon market, because buyers don’t know how insecure the products they purchase are,” Wysopal said in an interview.

“I’d like to see someone fixing this broken market. Profiting off of that fix seems like the best approach for a capitalism-based economy.”

(Reporting by Joseph Menn and Jim Finkle; additional reporting by Dustin Volz; Editing by Jonathan Weber and Grant McCool)