Mexico’s president did not discuss border wall with Trump

FILE PHOTO: Mexico's new President Andres Manuel Lopez Obrador arrives for an event to unveil his plan for oil refining, in Paraiso, Tabasco state, Mexico, December 9, 2018. REUTERS/Alexandre Meneghini

By Anthony Esposito and Doina Chiacu

MEXICO CITY/WASHINGTON (Reuters) – Mexican President Andres Manuel Lopez Obrador said on Thursday he has not discussed a proposed border wall with President Donald Trump, as the U.S. leader seemingly backtracked on threats to make Mexico pay for the controversial project.

“We have not discussed that issue, in any conversation. … It was a respectful and friendly conversation,” Lopez Obrador told reporters following a tweet in which the U.S. president said a new trade deal with Mexico and Canada would cover the cost of a wall.

The two leaders spoke by telephone on Wednesday. Lopez Obrador said they discussed the possibility of creating a joint program for development and job creation in Central America and Mexico.

One of Trump’s key campaign promises was to build the border wall and he had long pledged that Mexico — not U.S. taxpayers — would fund it.

In a Twitter post early on Thursday, Trump again insisted that Mexico will foot the bill for the border wall.

He wrote that payment will begin with savings for the United States as a result of the renegotiated trade deal between the United States, Mexico and Canada. “Just by the money we save, MEXICO IS PAYING FOR THE WALL!”

Mexico has repeatedly rejected Trump’s demand that it pay for the project, and it is unlikely the country’s new president will reverse that course.

Funding for the border wall has been a sticking point in spending bills before the U.S. Congress, and Trump clashed with leading Democrats over the issue during an Oval Office meeting on Tuesday.

One of them, Senate Democratic leader Chuck Schumer, taunted Trump over his Mexico claim later on Thursday.

“Mr. President: If you say Mexico is going to pay for the wall (which I don’t believe), then I guess we don’t have to! Let’s fund the government,” Schumer retorted in his own Twitter post.

Lopez Obrador said he also discussed a possible meeting with Trump in Washington.

“He invited me. I’m also able to go to Washington, but I think that both for him and for us there must be a reason and I think the most important thing would be to sign this agreement or meet with that purpose,” said Lopez Obrador.

(Reporting by Anthony Esposito in Mexico City and Doina Chiacu in Washington; editing by Frank Jack Daniel and Jonathan Oatis)

Insurance claims for latest California wildfires top $9 billion

FILE PHOTO: A van marked by search crews is seen in the aftermath of the Camp Fire in Paradise, California, U.S., November 17, 2018. REUTERS/Terray Sylvester/File Photo

By Steve Gorman

LOS ANGELES (Reuters) – Insurance claims from the recent spate of California wildfires, including one ranked as the most deadly and destructive in state history, have topped $9 billion and are expected to grow, the state insurance commissioner reported on Wednesday.

The claims, so far, fall short of the record $12 billion in wildfire-related insured losses sustained in California in 2017, most of that from more than a dozen blazes that swept a large swath of wine country north of San Francisco Bay, killing 46 people.

This year, the Camp Fire that erupted on Nov. 8 has accounted for the bulk of the claims, just over $7 billion of the total. The wind-driven blaze quickly incinerated most of the Sierra foothills town of Paradise, about 175 miles (280 km) north of San Francisco, destroying 18,500 homes and businesses and killing 86 people.

The casualty toll stands as the greatest loss of life from a single wildfire on record in California and the highest from any U.S. wildfire during the past century.

A pair of smaller blazes that broke out at about the same time in Southern California, the Woolsey and Hill fires, killed three people and destroyed some 1,500 structures and forced the evacuation of thousands in the Malibu area west of Los Angeles.

The insurance commissioner put preliminary insurance claims from those two fires combined at more than $2 billion, bringing the total for all three of last month’s blazes to $9.05 billion.

The tally reflects losses for residential and commercial coverage, as well as for motor vehicles, agriculture, machinery and other assets, the Insurance Department said.

“The devastating wildfires of 2018 were the deadliest and most destructive wildfire catastrophes in California’s history,” Commissioner Dave Jones said in a statement.

The numbers released on Wednesday stem from almost 40,000 separate claims, more than a fourth of which represent total losses. Most of those, 10,564, were for personal residential property, the commissioner said.

But the figures do not include billions of dollars in potential losses faced by Pacific Gas Electric Company in the event the utility’s electrical equipment is ultimately found to have caused the Camp Fire. PG&E Corp has said its liability could exceed its insurance coverage if that happens.

Citigroup Inc analysts have projected the company’s potential exposure from the blaze could exceed $15 billion.

(Reporting by Steve Gorman; editing by Bill Tarrant and Lisa Shumaker)

U.S. weekly jobless claims drop to near 49-year low

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson

WASHINGTON (Reuters) – The number of Americans filing applications for jobless benefits tumbled to near a 49-year low last week, which could ease concerns about a slowdown in the labor market and economy.

Initial claims for state unemployment benefits dropped 27,000 to a seasonally adjusted 206,000 for the week ended Dec. 8, the Labor Department said on Thursday. Last week’s decline in claims was the largest since April 2015. Claims hit 202,000 in mid-September, which was the lowest level since December 1969.

Data for the prior week were revised to show 2,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims falling to 225,000 in the latest week. Claims shot up to an eight-month high of 235,000 during the week ended Nov. 24.

The Labor Department said only claims for Virginia were estimated last week.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,750 to 224,750 last week.

While difficulties adjusting the data around holidays likely boosted applications in prior weeks, there were concerns the labor market was losing some momentum given financial market volatility, the fading stimulus from a $1.5 trillion tax cut and the Trump administration’s protectionist trade policy.

Last week’s sharp drop in claims also suggests a slowdown in job growth in November was likely the result of worker shortages. Nonfarm payrolls increased by 155,000 jobs after surging by 237,000 in October.

With the unemployment rate near a 49-year low of 3.7 percent, Federal Reserve officials view the labor market as being at or beyond full employment.

The U.S. central bank is expected to raise interest rates at its Dec. 18-19 policy meeting. The Fed has hiked rates three times this year. Most economists expect the central bank will increase borrowing costs twice next year, although traders expect no more than one rate increase.

Thursday’s claims report also showed the number of people receiving benefits after an initial week of aid increased 25,000 to 1.67 million for the week ended Dec. 1.

The four-week moving average of the so-called continuing claims slipped 2,500 to 1.67 million.

(Reporting by Lucia Mutikani Editing by Paul Simao)

Iran’s Khamenei calls for unity, warns of U.S. plots in 2019

FILE PHOTO: A display featuring missiles and a portrait of Iran's Supreme Leader Ayatollah Ali Khamenei is seen at Baharestan Square in Tehran, Iran September 27, 2017. Picture taken September 27, 2017. Nazanin Tabatabaee Yazdi/TIMA via REUTERS

DUBAI (Reuters) – Supreme leader Ayatollah Ali Khamenei urged Iranians on Wednesday to stay united, saying the United States would exploit divisions and was likely to launch plots against Iran in 2019.

Iran is struggling with the economic impact of President Donald Trump’s decision to pull out of a 2015 nuclear deal between Iran and six major powers and re-impose sanctions.

“Everyone should be vigilant, because our enemy America is sly and evil … and may have plans for 2019,” Khamenei said in a speech, the text of which was posted on his website. “But we are stronger than them and they will fail as they have in the past.”

The rial currency has lost about 60 percent of its value in 2018, as Iranians have increasingly sought dollars and gold coins to protect their savings. Factional tensions and worker protests have been on the rise as the sanctions have spurred inflation and unemployment.

“My advice to the Iranian nation, especially the youth and the country’s various organizations, professional or political, is to be careful and not make matters easier for the enemy,” Khamenei said.

Iran has accused the United States, Israel, regional rival Saudi Arabia and government opponents living in exile, of fomenting unrest.

(Reporting by Dubai newsroom; Editing by Robin Pomeroy)

Russian nuclear-capable bomber aircraft fly to Venezuela, angering U.S.

FILE PHOTO: Russian Tu-160 bombers fly during a joint Kazakh-Russian military exercise at Otar military range, some 150km (93 miles) west of Almaty, Kazakhstan, October 3, 2008. REUTERS/Shamil Zhumatov/File Photo

By Andrew Osborn

MOSCOW (Reuters) – Two Russian strategic bomber aircraft capable of carrying nuclear weapons have landed in ally Venezuela, a show of support for Venezuela’s socialist government that has infuriated Washington.

The TU-160 supersonic bombers, known as “White Swans” by Russian pilots, landed at Maiquetia airport near capital Caracas on Monday after covering more than 10,000 km (6,200 miles), the Russian and Venezuelan governments said.

Their deployment came days after Venezuelan President Nicolas Maduro, whose left-wing administration is the most significant U.S. foe in Latin America, held talks with President Vladimir Putin in Moscow.

As OPEC member Venezuela’s socialist-run economy implodes, Russia has become a key lender of last resort, investing in its oil industry and providing support to its military.

Capable of carrying short-range nuclear missiles, the planes can fly over 12,000 km (7,500 miles) without refueling and have landed in Venezuela twice before in the last decade.

“Russia’s government has sent bombers halfway around the world to Venezuela,” fumed U.S. Secretary of State Mike Pompeo on Twitter.

“The Russian and Venezuelan people should see this for what it is: two corrupt governments squandering public funds, and squelching liberty and freedom while their people suffer.”

‘HIGHLY UNDIPLOMATIC’

The Kremlin on Tuesday rejected Pompeo’s criticism, saying it was “highly undiplomatic” and “completely inappropriate.”

“As for the idea that we are squandering money, we do not agree. It’s not really appropriate for a country half of whose defense budget could feed the whole of Africa to be making such statements,” spokesman Dmitry Peskov told reporters.

Russia’s Defence Ministry, which said the bombers had been accompanied by two other Russian military planes, did not say if the planes were carrying missiles, how long they would stay for, or what their mission was.

Russia has used them in the past to flex its military muscles under the nose of the United States, delighting Venezuelan officials who have cast such flights as evidence it is able to defend itself, with allies’ help, from any attack.

Maduro frequently invokes the possibility of a U.S. invasion in the South American nation, a notion U.S. President Donald Trump’s administration denies.

Venezuelan Foreign Minister Jorge Arreaza called Pompeo’s comments “not only disrespectful but cynical,” highlighting the number of military bases the United States owns abroad.

“It’s strange the U.S. government questions our right to cooperate on defense and security with other countries, when @realDonaldTrump publicly threatens us with a military invasion,” Arreaza tweeted, referring to Trump’s Twitter handle.

Venezuela’s Information Ministry did not respond to a request for details on the bombers.

Maduro said the talks with Putin in Moscow this month yielded Russian investment in Venezuela’s oil and gold sectors.

Russian Defence Minister Sergei Shoigu told his Venezuelan counterpart at the time that such long-range flights provided pilots with excellent experience and helped maintain the planes’ combat readiness.

(Additional reporting by Angus Berwick in Caracas and Tom Balmforth and Gabrielle Tetrault-Farber in Moscow; Editing by Andrew Cawthorne and Rosalba O’Brien)

Australian government discusses moving Israel embassy to Jerusalem

FILE PHOTO: The new Australian Prime Minister Scott Morrison attends a news conference in Canberra, Australia August 24, 2018. REUTERS/David Gray/File Photo

By Colin Packham

SYDNEY (Reuters) – Australia’s government met on Tuesday to discuss whether to move its embassy in Israel from Tel Aviv to Jerusalem, two sources familiar with the matter said, a decision that would break with decades of policy and risk angering Asian neighbors.

“Cabinet met today and the issue of moving the Israeli embassy was discussed. The decision is still pending,” said one of the sources who declined to be identified as he is not authorized to speak to the media.

Prime Minster Scott Morrison in October said he was “open” to moving the embassy to Jerusalem, following the lead of U.S. President Donald Trump.

The United States opened a new embassy in Jerusalem in May, a move that delighted Israel, infuriated Palestinians and upset the wider Arab world and Western allies.

The Australian newspaper reported several senior cabinet members were leaning toward recognizing Jerusalem as Israel’s capital while stopping short of moving the embassy.

Jerusalem’s status is a major obstacle to a peace deal between Israel and the Palestinians. Israel regards all of the city, including the eastern sector that it annexed after a 1967 war, as its capital.

The Australian newspaper said a decision could be announced this week.

By recognizing Jerusalem as Israel’s capital, Morrison would be hoping to keep his conservative backbench happy but it would likely anger neighbors, including Indonesia, the world’s biggest Muslim-majority country.

The Palestinian question is sensitive in Indonesia and it has refused to sign a free trade agreement with Australia until it confirms its plans toward Israel.

Israel’s government regards Jerusalem as the eternal and indivisible capital of the country. Palestinians feel equally strongly, saying that East Jerusalem must be the capital of a future Palestinian state.

(Reporting by Colin Packham and Byron Kaye; Editing by Robert Birsel)

Iran confirms missile test in defiance of U.S.

FILE PHOTO: A display featuring missiles and a portrait of Iran's Supreme Leader Ayatollah Ali Khamenei is seen at Baharestan Square in Tehran, Iran September 27, 2017. Picture taken September 27, 2017. Nazanin Tabatabaee Yazdi/TIMA via REUTERS

By Babak Dehghanpisheh

GENEVA (Reuters) – A senior Iranian military commander confirmed that Tehran recently carried out a ballistic missile test to the anger of the United States, the Fars news agency said on Tuesday.

The Revolutionary Guards official’s comment came after U.S. Secretary of State Mike Pompeo’s assertion earlier this month that Iran had test-fired a missile capable of carrying multiple warheads and reaching the Middle East and Europe.

“We will continue our missile tests and this recent action was an important test,” Guards’ airspace division head Amirali Hajizadeh was quoted as saying by the semi-official Fars news agency.

“The reaction of the Americans shows that this test was very important for them and that’s why they were shouting,” he added, without specifying what type of missile had been tested.

The U.N. Security Council met last week over the test that the United States, Britain and France said flouted U.N. restrictions on Tehran’s military program.

U.S. President Donald Trump pulled out of an international agreement on Iran’s nuclear program in May and reimposed sanctions on Tehran. He said the deal was flawed because it did not include curbs on Iran’s development of ballistic missiles or its support for proxies in Syria, Yemen, Lebanon and Iraq.

Iran has ruled out negotiations with Washington over its military capabilities, particularly the missile program run by the Guards. It says the program is purely defensive and denies missiles are capable of being tipped with nuclear warheads.

Hajizadeh said Iran holds up to 50 missile tests a year.

“The issue of missiles has never been subject to negotiations and nothing has been approved or ratified about its prohibition for the Islamic Republic of Iran in (U.N.) resolution 2231,” Foreign Minister Mohammad Javad Zarif said Tuesday, according to the Tasnim news agency.

“Our defense doctrine is basically founded upon deterrence.”

Under U.N. Security Council Resolution 2231, which enshrined the nuclear deal in 2015, Iran is “called upon” to refrain from work on ballistic missiles designed to deliver nuclear weapons for up to eight years.

Some states argue the language does not make it obligatory.

Last month, Hajizadeh said U.S. bases in Afghanistan, the United Arab Emirates and Qatar, and U.S. aircraft carriers in the Gulf were within range of Iranian missiles.

In October, the Revolutionary Guards fired missiles at Islamic State militants in Syria after the Islamist group took responsibility for an attack at a military parade in Iran that killed 25 people, nearly half of them Guards members.

(Reporting By Babak Dehghanpisheh; Editing by Richard Balmforth and Andrew Cawthorne)

‘I can’t breathe’: Saudi journalist Khashoggi’s last words – CNN

FILE PHOTO: Saudi dissident Jamal Khashoggi speaks at an event hosted by Middle East Monitor in London, Britain, Sept. 29, 2018. Picture taken September 29, 2018. Middle East Monitor/Handout via REUTERS

ISTANBUL (Reuters) – Journalist Jamal Khashoggi repeatedly told his killers “I can’t breathe” during his final moments in the Saudi consulate in Istanbul, CNN reported on Monday.

Quoting a source who said they had read the full translated transcript of an audio recording, CNN said that Khashoggi recognized one of the men, General Maher Mutreb, who told him: “You are coming back”.

Khashoggi replied: “You can’t do that…people are waiting outside.”

His Turkish fiancee Hatice Cengiz waited for hours outside the consulate on Oct. 2 and, when he did not return, contacted Turkish authorities about his disappearance.

There was no further dialogue in the relatively short transcript, prepared by Turkish authorities, CNN’s source said.

As people set upon Khashoggi, he started fighting for air, repeating, “I can’t breathe” at least three times. The transcript then used singular words to describe the noises, including “scream”, “gasping”, “saw”, and “cutting”.

Turkish sources told Reuters a bone saw was used to dismember the journalist.

The transcript included no further mention of returning Khashoggi to Saudi Arabia and no indication that he had been drugged – as Saudi Arabia’s public prosecutor said in November.

One of the voices was identified in the transcript by Turkish authorities as Dr. Salah al-Tubaigy, a forensic expert specialized in autopsies attached to the Saudi Ministry of Interior, CNN reported.

Tubaigy tells others to put in earphones or listen to music like him, the CNN source said.

Mutreb, a senior intelligence officer who is part of the security team of Crown Prince Mohammed bin Salman, called officials and gave step-by-step details of the operation, CNN reported, finally saying: “Tell yours, the thing is done, it’s done”.

Turkish officials said last week that the Istanbul prosecutor’s office had concluded there was “strong suspicion” that Saud al-Qahtani, a top aide to Prince Mohammed, and General Ahmed al-Asiri, who served as deputy head of foreign intelligence, were among the planners of Khashoggi’s killing.

Saudi Arabia has said the prince had no prior knowledge of the murder. After offering numerous contradictory explanations, Riyadh later said Khashoggi had been killed and his body dismembered when negotiations to persuade him to return to Saudi Arabia failed.

The kingdom has come under scrutiny as details of his killing came to light. Making some of their strongest accusations so far, both U.S. Republicans and Democrats said last week they want to pass legislation to send a message to Saudi Arabia that the United States condemns the death of Khashoggi, a Washington Post columnist.

A Turkish official said that by extraditing all suspects to Turkey, the Saudi authorities can address the international community’s concerns.

Saudi Arabia’s Foreign Minister Adel al-Jubeir on Sunday ruled out their extradition. “We don’t extradite our citizens,” he said at a Gulf Arab summit in Riyadh.

Last month, Saudi Arabia’s public prosecutor’s office said is seeking the death penalty for five individuals, and that 11 of 21 suspects have been indicted and will be referred to court in Saudi Arabia.

(Reporting by Sarah Dadouch; Editing by Dominic Evans and Angus MacSwan)

Fed’s Powell: U.S. economy performing ‘very well’ though benefits uneven

FILE PHOTO: Federal Reserve Board Chairman Jerome Powell speaks at his news conference after the two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy in Washington, U.S., June 13, 2018. REUTERS/Yuri Gripas/File Photo/File Photo/File Photo

(Reuters) – The U.S. economy is “performing very well overall,” Federal Reserve Chairman Jerome Powell said in remarks prepared for the opening of a rural housing conference in Washington.

The job market in particular “by many national-level measures…is very strong,” with unemployment at a 50-year low, Powell said, capping a week of widespread market nervousness with a reminder that the U.S. economy continues to expand.

Powell’s brief prepared statement did not address monetary policy or the Fed’s upcoming meeting, at which the central bank will decide whether to raise interest rates and will also release new economic projections for the coming year.

Powell noted to the Housing Assistance Council, a nonprofit that focuses on rural housing issues, that the benefits of the ongoing recovery have not spread evenly around the country but have been concentrated in major cities.

“Some communities have yet to feel the full benefits of the ongoing expansion,” Powell said, with double-digit unemployment still the norm in more than two dozen counties and nearly a third of rural homes without broadband internet.

(Reporting by Howard Schneider in Indianapolis; editing by Diane Craft)

Russia ready to discuss fate of detained Ukrainian sailors after their trial

Russian Foreign Minister Sergei Lavrov arrives for a news conference on the sidelines of the Organization for Security and Co-operation in Europe (OSCE) summit in Milan, Italy, December 7, 2018. REUTERS/Alessandro Garofalo

MILAN (Reuters) – Russian Foreign Minister Sergei Lavrov said on Friday that Moscow would only be ready to discuss the fate of a group of Ukrainian sailors it captured last month after their trial was finished.

The United States and the European Union have called on Russia to free the 24 Ukrainian sailors who were detained by Russia on Nov. 25 near Russian-annexed Crimea. Moscow accuses them of illegally entering Russian waters, something Kiev denies.

Lavrov, speaking at a news conference in Milan, said Russia would only be willing to discuss the sailors’ fate and the possibility of coming to some kind of agreement with Ukraine about them once their trial in Crimea was over.

No date for their trial has yet been set.

(Reporting by Crispian Balmer; Writing by Andrew Osborn; Editing by Tom Balmforth)