Slow U.S. jobs growth takes shine off dollar, stocks hold all-time highs

A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

By Vikram Subhedar

LONDON (Reuters) – The dollar retreated slightly after disappointing U.S. jobs growth data on Friday though world stocks clung on to record highs, having gained 11 percent so far this year.

Nonfarm payrolls increased 138,000 last month as the manufacturing, government and retail sectors lost jobs, the Labor Department said on Friday.

While the job gains could still be sufficient for the Federal Reserve to raise interest rates this month, the modest increase could raise concerns about the economy’s health after growth slowed in the first quarter.

“This number is not the kind of report that derails the Fed from raising rates in June,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.

“We’re in a mature phase of the cycle, job growth is going to slow down. The Fed has been talking about this for over a year at this point and they are braced for that reality.”

The dollar index <.DXY>, which measures the greenback’s strength against a basket of major currencies, fell 0.3 percent.

Stock futures on Wall Street trimmed gains slightly and were last trading little changed.

Overnight, data showing a healthy uptick in private sector hiring and factory activity during May bolstered expectations that the U.S. economy was picking up speed and lifted U.S. stocks after two days of losses.

Those gains filtered through to global stocks, lifting the MSCI All-Country World index <.MIWD00000PUS> 0.4 percent to a record high and on track to post a seventh straight week of gains, the longest such run since 2010.

Stocks in Europe joined the party with German bluechips powering ahead to a record, up 1.6 percent. The UK’s FTSE 100 <.FTSE> also hovered near its highest-ever levels rose 0.4 percent.

So far this year investors have pumped $140 billion globally into stock funds, according to fund flow data from Bank of America Merrill Lynch and EPFR showed on Friday.

Global equities attracted $13.7 billion in the latest week to Wednesday, the largest inflows in five weeks, as investors loaded up on risk.

In commodities, however, oil prices resumed their slide with key futures contracts down more than 2 percent amid worries that U.S. President Donald Trump’s decision to abandon a global climate pact could spark more crude drilling in the United States, stoking a persistent glut in global supply.

Global benchmark Brent crude futures <LCOc1> fell to $49.63 a barrel, while U.S. West Texas Intermediate crude <CLc1> by more than a dollar to $47.36 per barrel.

(Reporting by Vikram Subhedar; Editing by Hugh Lawson and Keith Weir)

Putin says U.S. missile systems in Alaska, South Korea challenge Russia

Russian President Vladimir Putin speaks during a meeting with representatives of international news agencies in St. Petersburg, Russia, June 1, 2017.

By Denis Pinchuk and Andrew Osborn

ST PETERSBURG/MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday that elements of a U.S. anti-missile system in Alaska and South Korea were a challenge to Russia and that Moscow had no choice but to build up its own forces in response.

Putin, speaking at an economic forum in St Petersburg, said Russia could not stand idly by and watch while others increased their military capabilities along its borders in the Far East in the same way as he said had been done in Europe.

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei Karpukhin

He said Moscow was particularly alarmed by the deployment of the U.S. THAAD anti-missile system to South Korea to counter a North Korean missile threat and to reported U.S. plans to beef up Fort Greely in Alaska, a launch site for anti-ballistic missiles.

“This destroys the strategic balance in the world,” Putin told a meeting with international media, the start of which was broadcast on state TV.

“What is happening is a very serious and alarming process. In Alaska, and now in South Korea, elements of the anti-missile defence system are emerging. Should we just stand idly by and watch this? Of course not. We are thinking about how to respond to these challenges. This is a challenge for us.”

Washington was using North Korea as a pretext to expand its military infrastructure in Asia in the same way it had used Iran as a pretext to develop a missile shield in Europe, charged Putin.

RUSSIAN RESPONSE

Putin said the Kurile Islands, a chain of islands in the Far East where Moscow and Tokyo have rival territorial claims, were “quite a convenient place” to deploy Russian military hardware to respond to such threats.

Defence Minister Sergei Shoigu said last year Russia planned to deploy some of its newest missile defence systems and drones to the islands, part of a drive to rearm military units already stationed there. He has also spoken of Russia building a military base there.

“I don’t agree that we are unilaterally starting to militarize these islands,” said Putin. “It is simply a forced response to what is happening in the region.” Any talk of demilitarizing the islands could only occur once tensions in the entire region had been reduced, he said.

Tokyo and Moscow have long been locked in talks over the contested islands, known as the Northern Territories in Japan. Putin said Russia was alive to the danger that Japan might allow U.S. troops to deploy there if it struck a deal to hand over some of the islands to Tokyo’s jurisdiction.

“Such a possibility exists,” said Putin.

Russia did not want to worsen already poor relations with Washington by fueling what he described as an arms race, but Putin said the United States was still consumed by what he called an anti-Russian campaign.

“How will the situation develop? We don’t know,” said Putin.

(Additional reporting by Dmitry Solovyov and Maria Kiselyova; Writing by Andrew Osborn; Editing by Alexander Winning)

Patriotic Russians may have staged cyber attacks on own initiative: Putin

A hooded man holds a laptop computer as cyber code is projected on him in this illustration picture

ST PETERSBURG, Russia (Reuters) – President Vladimir Putin said on Thursday that patriotic Russian hackers may have staged cyber attacks against countries that had strained relations with Moscow on their own initiative, but said the Russian state had never been involved in such hacking.

Putin, speaking to international media at an economic forum in St Petersburg, was answering a question about allegations Moscow might try to interfere in this year’s German elections.

Moscow’s attitude toward cyber crime is under intense scrutiny after U.S. intelligence officials alleged that Russian hackers had tried to help Republican Donald Trump win the White House, something Russia has flatly denied.

“If they (hackers) are patriotically-minded, they start to make their own contribution to what they believe is the good fight against those who speak badly about Russia. Is that possible? Theoretically it is possible,” said Putin.

Likening hackers to free-spirited artists acting according to their moods, he said cyber attacks could be made to look like they had come from Russia when they had not.

Putin also said he was personally convinced that hackers could not materially alter election campaigns in Europe, America or elsewhere.

“On a state level we haven’t been involved in this (hacking), we aren’t planning to be involved in it. Quite the opposite, we are trying to combat it inside our country,” said Putin.

(Reporting by Denis Pinchuk; Writing by Alexander Winning; Editing by Andrew Osborn)

Syrian rebels say U.S., allies sending more arms to fend off Iran threat

FILE PHOTO: Popular Mobilization Forces (PMF) ride on a tank during a battle with Islamic State militants, at Um Jaris village on the Iraqi border with Syria, Iraq May 29, 2017. REUTERS/Stringer/File Photo

By Tom Perry, Suleiman Al-Khalidi and Maher Chmaytelli

BEIRUT/AMMAN/BAGHDAD (Reuters) – Syrian rebels say the United States and its allies are sending them more arms to try to fend off a new push into the southeast by Iran-backed militias aiming to open an overland supply route between Iraq and Syria.

The stakes are high as Iran seeks to secure its influence from Tehran to Beirut in a “Shi’ite crescent” of Iranian influence through Iraq, Syria and Lebanon, where Sunni Arab states have lost out in power struggles with Iran.

Tensions escalated in the southeastern region of Syria, known as the Badia, this month when government forces supported by Iraqi Shi’ite militias deployed in a challenge to rebels backed by President Bashar al-Assad’s enemies.

This has coincided with a march toward the Syrian border by Shi’ite militias from Iraq. They reached the frontier adjoining northern Syria on Monday. A top Iraqi militia commander said a wider operation to take the area from Sunni jihadist Islamic State would start on Tuesday and this would help Syria’s army.

While in Iraq the United States has fought alongside Iranian-backed Iraqi government forces and Shi’ite militias against Islamic State, in Syria Washington has lined up against Assad’s Iranian-backed government and wants to block a further expansion of Iranian influence, with its regional allies.

The sides are vying for pole position in the next major phase of the fight against Islamic State: the battle to dislodge it from the eastern Syrian province of Deir al-Zor where many of the jihadists have relocated from Raqqa and Mosul.

Several rebel groups fighting under the Free Syrian Army (FSA) banner operate in the sparsely populated Badia, where they captured swathes of territory from Islamic State this year. U.S. air strikes on May 18 targeted Iran-backed fighters who had moved into the area.

Also in May, Damascus declared both the Badia and Deir al-Zor priorities of its campaign to re-establish its rule over Syria, which has been shattered by six years of war that have killed hundreds of thousands of people. The government is being helped by both Iran and Russia, while the opposition has been helped by the West and regional states which oppose Assad.

Rebels said military aid has been boosted through two separate channels: a program backed by the U.S. Central Intelligence Agency (CIA), known as the MOC, and regional states including Jordan and Saudi Arabia, and one run by the Pentagon.

“There has been an increase in the support,” said Tlass Salameh, head of the Jaish Usoud al-Sharqiya, one of the FSA groups backed via the CIA-backed program. “There’s no way we can let them open the Baghdad-Damascus highway,” he said.

A senior commander of a Pentagon-backed group, Maghawir al-Thawra, told Reuters a steady flow of weapons had arrived at their base near the Iraqi border since the pro-Damascus forces began deploying this month.

He said efforts to recruit and train local fighters from Deir al-Zor had accelerated at their garrison at Tanf, on the highway some 20 km (12 miles) from the Iraqi border.

“The equipment and reinforcements come and go daily … but in the last few weeks they have brought in more heavy military vehicles, TOW (missiles), and armored vehicles,” he said, speaking on condition of anonymity.

Two armored vehicles newly delivered to the Tanf garrison were shown in photos sent to Reuters from a rebel source. A video showed fighters unpacking mortar bombs.

In a written response to emailed questions from Reuters, a spokesman for the U.S.-led coalition did not say if coalition support to Maghawir al-Thawra had increased.

Colonel Ryan Dillon said coalition forces were “prepared to defend themselves if pro-regime forces refuse to vacate” a de-confliction zone around Tanf.

“The coalition has observed pro-regime forces patrolling in the vicinity of the established de-confliction zone around the Tanf training site in Syria … Pro-regime patrols and the continued armed and hostile presence of forces inside the … zone is unacceptable and threatening to coalition forces.”

U.S. jets this week dropped leaflets on pro-government forces instructing them to pull out of the Tanf area to the Zaza junction further from the border. The leaflets were obtained by Hammurabi Justice, a Maghawir-linked website.

The Syrian army could not be reached for comment.

A commander in the military alliance fighting in support of Assad told Reuters the deployment of government forces and pro-Damascus Iraqi fighters in the Badia would “obstruct all the plans of the MOC, Jordan and America”.

The commander, a non-Syrian, said Assad’s enemies were committed to blocking “what they call the (Shi’ite) Crescent”. But, he said, “Now, our axis is insistent on this matter and it will be accomplished.”

The Iraqi Badr militia said its advance to the Syrian border would help the Syrian army reach the border from the other side. “The Americans will not be allowed to control the border,” its leader, Hadi al-Amiri, told al-Mayadeen TV.

(Additional reporting by Laila Bassam in Beirut; Writing by Tom Perry; Editing by Louise Ireland)

South Korea defense ministry ‘intentionally dropped’ THAAD units in report: Blue House

FILE PHOTO: A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the U.S. Department of Defense, Missile Defense Agency. U.S. Department of Defense, Missile Defense Agency/Handout via Reuters/File Photo

By Jack Kim

SEOUL (Reuters) – South Korea’s Defence Ministry “intentionally dropped” mentioning that four more launchers had been deployed for the controversial U.S. THAAD anti-missile system in a report to President Moon Jae-in’s top aides, his office said on Wednesday.

Moon has ordered a probe at the defense ministry, saying it was “very shocking” the launchers had been brought in without being reported to the new government or to the public, presidential Blue House spokesman Yoon Young-chan said on Tuesday.

The Defence Ministry intentionally omitted details about the Terminal High Altitude Area Defence (THAAD) system battery (THAAD) in a report last week, when the new government was preparing for Moon’s summit with U.S. President Donald Trump next month, Yoon told a briefing.

“The Blue House has confirmed that the Defence Ministry has intentionally dropped the introduction of four more launchers in its report,” Yoon said.

Moon took office on May 10 without a transition period because a snap presidential election was held just two months after his predecessor, Park Geun-hye, was ousted in a corruption scandal. Moon inherited his defense minister along with the rest of his cabinet from the previous administration.

The THAAD battery was initially deployed in March in the southeastern region of Seongju with just two of its maximum load of six launchers to counter a growing North Korean missile threat.

An earlier version of the defense ministry report specified the total number of launchers being prepared for deployment and the name of the U.S. military base where the four were being kept, but the reference was removed in the final version delivered to the Blue House, Yoon said.

The Pentagon said it had been “very transparent” with South Korea’s government about THAAD deployment.

US MISSILE DEFENSE TEST

During his successful presidential campaign, Moon called for a parliamentary review of the THAAD system, the deployment of which has infuriated China, North Korea’s lone major ally. Moon had also called for more engagement and dialogue with Pyongyang.

Asked about South Korea’s Defence Ministry dropping mention of the four additional launchers, Chinese Foreign Ministry spokeswoman Hua Chunying expressed “serious concern”, and reiterated a call for THAAD to be withdrawn.

North Korea has conducted three ballistic missile tests since Moon took office, maintaining its accelerated pace of missile and nuclear-related activities since the beginning of last year in defiance of U.N. sanctions.

In Washington, the U.S. military said on Tuesday it had staged a successful, first-ever missile defense test involving a simulated attack by an intercontinental ballistic missile.

“The intercept of a complex, threat-representative ICBM target is an incredible accomplishment … a critical milestone for this program,” Vice Admiral Jim Syring, the director of the Missile Defence Agency, said in a statement.

Moon’s order of a probe over the THAAD deployment came amid signs of easing tensions between South Korea and China, a major trading partner.

China had been incensed over the THAAD deployment, saying it would do little to deter the missile threat from North Korea while allowing the U.S. military to use its radar to look deep into its territory and at its own missile systems.

Japanese Prime Minister Shinzo Abe told China’s top diplomat on Wednesday that he would like to work with China to try to rein in North Korea’s nuclear and missile programs.

Beijing is also troubled by the possibility the THAAD system would open the door to a wider deployment the U.S. missile defense systems, possibly in Japan and elsewhere, military analysts say.

South Korean companies have faced product boycotts and bans on Chinese tourists visiting South Korea, although China has denied discriminating against them.

(Reporting by Jack Kim; Additional reporting by Phil Stewart in Washington, Ben Blanchard in Beijing and Kiyoshi Takenaka in Tokyo; Editing by Bill Tarrant)

U.S. pending home sales drop for second straight month

A U.S. flag decorates a for-sale sign at a home in the Capitol Hill neighborhood of Washington, August 21, 2012. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – Contracts to buy previously owned U.S. homes fell for a second straight month in April amid a supply squeeze, but the housing market recovery remains supported by a strong labor market.

The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, dropped 1.3 percent to 109.8.

Economists had forecast pending home sales rising 0.5 percent last month. Pending home sales fell 3.3 percent from a year ago. That is the first year-on-year drop since last December and the largest since June 2014.

“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” said NAR chief economist Lawrence Yun. “Realtors are indicating that foot traffic is higher than a year ago.”

Pending home contracts become sales after a month or two, and last month’s fall suggested a further decline in home resales after they dropped 2.3 percent in April.

Demand for housing is being driven by a tight labor market, marked by a 4.4 percent unemployment rate, which is generating wage increases and boosting employment opportunities for young Americans.

Sales activity, however, remains constrained by tight inventories, which are driving up home prices. Housing inventory has dropped for 23 straight months on a year-on-year basis.

Pending home sales fell in the Northeast, Midwest and South last month, but surged 5.8 percent in the West.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Kentucky town welcomes Confederate memorial moved from Louisville

Members from The Sons of Confederate Veterans stand before a dedication ceremony in Brandenburg, Kentucky, U.S. May 29, 2017 for a Civil War Confederate Soldier Memorial recently removed from the campus of the University of Louisville. REUTERS/Bryan Woolston

By Bryan Woolston

BRANDENBURG, Kentucky (Reuters) – A small Kentucky town gave a formal welcome on Monday to a monument to the Confederate soldiers of the American Civil War, rededicating the controversial structure after the University of Louisville removed it as an unwelcome symbol of slavery.

About 400 people, some dressed in grey replica uniforms and many holding small Confederate battle flags, gathered for the Memorial Day ceremony on a bluff above the Ohio River in Brandenburg, about 40 miles (64 km) southwest of Louisville.

The town embraced the tower at a time when Confederate symbols are being removed across the South as reminders of a legacy of slavery and the racism that underpinned it.

“The way I look at it, it’s part of our history,” Brandenburg Mayor Ronnie Joyner said at the dedication, which included the firing of a Civil War-era cannon. “We need to preserve our history.”

Brandenburg says the riverfront park where it holds a biennial Civil War reenactment was an appropriate setting for what some see as a respectful homage to Kentucky’s fallen.

The monument’s new home is near the spot where a Confederate general in 1863 launched a raid on neighboring Indiana, and Brandenburg hopes the addition will bring more tourists to the town.

“The Civil War is not a popular part of people’s past, but you can’t wipe it out,” said Charles Harper of Louisville, who came to the dedication dressed in Confederate uniform. “Just because you wiped out a reference to the Civil War doesn’t mean you’ve wiped out slavery, doesn’t mean you wipe out racism.”

The 70-foot-tall concrete plinth features an oversized statue of a rebel soldier at its crown, representing one of thousands of Kentuckians who fought with breakaway Southern states in the bloodiest conflict in U.S. history.

Monday’s ceremony, watched by a crowd that was almost exclusively white, marked the end to a year-long saga that began in April 2016 when the University of Louisville announced it would dismantle the monument, erected in 1895.

Students and faculty had long criticized the memorial as a tacit tribute to Confederate cause during the 1861-65 conflict, fought primarily over the issue of slavery.

Last May, a state judge ruled against some Louisville residents and descendants of Confederate soldiers who sued to keep the monument from being moved.

Kentucky was neutral during the Civil War and never joined the Confederacy. But slavery was legal in the commonwealth and many Kentuckians sympathized with the rebel cause and fought on its side.

The drive to remove Confederate statues in the South and elsewhere accelerated after the 2015 murder of nine African-Americans by an avowed white supremacist at an historic South Carolina church. The murders stirred national soul-searching about racism and its symbols.

Soon after the killings, the Confederate battle flag was removed from the grounds of the South Carolina state capitol.

Last week New Orleans dismantled the last of four Confederate statues that stood in the city for decades. The mayor of Baltimore said on Monday that her city was considering following the lead of New Orleans by removing its monuments.

(Additional reporting and writing by Frank McGurty; Editing by Andrew Hay)

North Korea warns of ‘bigger gift package’ for U.S. after latest test

FILE PHOTO: 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

By Ju-min Park and Jack Kim

SEOUL (Reuters) – North Korean leader Kim Jong Un supervised the test of a new ballistic missile controlled by a precision guidance system and ordered the development of more powerful strategic weapons, the North’s official KCNA news agency reported on Tuesday.

The missile launched on Monday was equipped with an advanced automated pre-launch sequence compared with previous versions of the “Hwasong” rockets, North Korea’s name for its Scud-class missiles, KCNA said. That indicated the North had launched a modified Scud-class missile, as South Korea’s military has said.

The North’s test launch of a short-range ballistic missile landed in the sea off its east coast and was the latest in a fast-paced series of missile tests defying international pressure and threats of more sanctions.

Kim said the reclusive state would develop more powerful weapons in multiple phases in accordance with its timetable to defend North Korea against the United States.

“He expressed the conviction that it would make a greater leap forward in this spirit to send a bigger ‘gift package’ to the Yankees” in retaliation for American military provocation, KCNA quoted Kim as saying.

South Korea said it had conducted a joint drill with a U.S. supersonic B-1B Lancer bomber on Monday. North Korea’s state media earlier accused the United States of staging a drill to practise dropping nuclear bombs on the Korean peninsula.

The U.S. Navy said its aircraft carrier strike group, led by the USS Carl Vinson, also planned a drill with another U.S. nuclear carrier, the USS Ronald Reagan, in waters near the Korean peninsula.

A U.S. Navy spokesman in South Korea did not give specific timing for the strike group’s planned drill.

North Korea calls such drills a preparation for war.

Monday’s launch followed two successful tests of medium-to-long-range missiles in as many weeks by the North, which has been conducting such tests at an unprecedented pace in an effort to develop an intercontinental ballistic missile (ICBM) capable of hitting the mainland United States.

Such launches, and two nuclear tests since January 2016, have been conducted in defiance of U.S. pressure, U.N. resolutions and the threat of more sanctions.

They also pose one of the greatest security challenges for U.S. President Donald Trump, who portrayed the latest missile test as an affront to China.

“North Korea has shown great disrespect for their neighbor, China, by shooting off yet another ballistic missile … but China is trying hard!” Trump said on Twitter.

PRECISION GUIDANCE

Japan has also urged China to play a bigger role in restraining North Korea’s nuclear and missile programs.

Prime Minister Shinzo Abe’s top national security adviser, Shotaro Yachi, met China’s top diplomat, State Councillor Yang Jiechi, for five hours of talks near Tokyo on Monday after the North’s latest test.

Yachi told Yang that North Korea’s actions had reached a new level of provocation.

“Japan and China need to work together to strongly urge North Korea to avoid further provocative actions and obey things like United Nations resolutions,” Yachi was quoted as telling Yang in a statement by Japan’s foreign ministry.

A statement from China’s foreign ministry after the meeting made no mention of North Korea.

North Korea has claimed major advances with its rapid series of launches, claims that outside experts and officials believe may be at least partially true but are difficult to verify independently.

A South Korean military official said the North fired one missile on Monday, clarifying an earlier assessment that there may have been more than one launch.

The test was aimed at verifying a new type of precision guidance system and the reliability of a new mobile launch vehicle under different operational conditions, KCNA said.

However, South Korea’s military and experts questioned the claim because the North had technical constraints, such as a lack of satellites, to operate a terminal-stage missile guidance system properly.

“Whenever news of our valuable victory is broadcast recently, the Yankees would be very much worried about it and the gangsters of the south Korean puppet army would be dispirited more and more,” KCNA cited leader Kim as saying.

(Reporting by Jack Kim and Ju-min Park; Additional reporting by James Pearson in SEOUL, Ben Blanchard in BEIJING, and Elaine Lies in TOKYO; Editing by Dan Grebler and Paul Tait)

Trump travel ban fight heads toward Supreme Court showdown

A picture of the travel advisory page of Qatar Airways advising passengers bound for the United States from seven newly banned majority Muslim countries that they need to have either a U.S. green card or diplomatic visa, January 28, 2017 in London, Britain. Picture taken January 28, 2017. REUTERS/Russell Boyce

By Lawrence Hurley

WASHINGTON (Reuters) – The fate of President Donald Trump’s order to ban travelers from six predominantly Muslim nations, blocked by federal courts, may soon be in the hands of the conservative-majority Supreme Court, where his appointee Neil Gorsuch could help settle the matter.

After the Richmond-based 4th U.S. Circuit Court of Appeals declined on Thursday to lift a Maryland federal judge’s injunction halting the temporary ban ordered by Trump on March 6, Attorney General Jeff Sessions said the administration would appeal to the Supreme Court.

A second regional federal appeals court heard arguments on May 15 in Seattle in the administration’s appeal of a decision by a federal judge in Hawaii also to block the ban. A ruling by the 9th U.S. Circuit Court of Appeals is pending.

The Justice Department has not made clear when the administration would make its formal appeal or whether it would wait for the 9th Circuit ruling before appealing.

If they take it up, the justices would be called upon to decide whether courts should always defer to the president over allowing certain people to enter the country, especially when national security is the stated reason for an action as in this case. They also would have to decide if Trump’s order violated the U.S. Constitution’s bar against the government favoring one religion over another, as the ban’s challengers assert.

Gorsuch’s April confirmation by the Republican-led Senate over Democratic opposition restored the court’s 5-4 majority, which means that if all the conservative justices side with the administration the ban would be restored regardless of how the four liberal justices vote.

During his Senate confirmation hearing, Gorsuch was questioned about Trump’s criticism of judges who ruled against the ban. Gorsuch avoided commenting on the legal issue, saying only that he would not be “rubber stamp” for any president.

While the justices could decide in the coming weeks whether to hear the case, they likely would not hold oral arguments until late in the year, with a ruling sometime after that. A final resolution may not come until perhaps a year after Trump issued the executive order.

The justices are not required to hear any case, but this one meets important criteria cited by experts, including that it would be the federal government filing the appeal and that it involves a nationwide injunction.

The administration could file an emergency application seeking to put the order into effect while the litigation on its legality continues. At least five justices must agree for any such request to be granted.

While the court could split 5-4 along ideological lines, it also is possible some conservative justices could join the liberals in overturning the travel ban, libertarian law professor Ilya Somin of George Mason University said.

“Conservatives in other contexts often take a hard line against any kind of government discrimination (based) on race or religion or the like, even if the motivation may be benign. Also conservatives have concerns about government infringements on religion,” Somin said.

The 4th Circuit said the ban’s challengers, including refugee groups, in the case argued by the American Civil Liberties Union were likely to succeed on their claim that the order violated the Constitution’s prohibition on the government favoring or disfavoring any religion. In the 10-3 ruling, three Republican-appointed judges dissented.

The Republican president’s March 6 order, replacing an earlier Jan. 27 one also blocked by the courts, called for barring people from Iran, Libya, Somalia, Sudan, Syria and Yemen for 90 days while the government implements stricter visa screening. It also called for suspending all refugee admissions for 120 days.

KENNEDY’S REASONING

The travel ban’s challengers may take some comfort from the appeals court ruling’s reliance on a concurring opinion in a 2015 Supreme Court immigration case by Justice Anthony Kennedy, a conservative who sometimes sides with the court’s liberals in big cases.

In the 2015 case, Kennedy wrote that in the immigration context, the government’s actions can be questioned if there is evidence of bad faith.

“As with any opinion by Justice Kennedy, I think the million-dollar question is just what he meant in his concurrence, and this may be a perfect case to find out,” University of Texas School of Law professor Stephen Vladeck said.

In Thursday’s ruling, 4th Circuit Chief Judge Roger Gregory wrote that the plaintiffs had shown there was “ample evidence” of bad faith, which gave the green light to probe whether there were reasons for the order other than the administration’s stated national security rationale.

The administration has argued the temporary travel ban was needed to guard against terrorist attacks. Gregory wrote that the order uses “vague words of national security, but in context drips with religious intolerance, animus, and discrimination.” Trump during the presidential campaign called for a “total and complete shutdown of Muslims entering the United States.”

(Reporting by Lawrence Hurley; Additional reporting by Andrew Chung in New York; Editing by Will Dunham)

U.S. bill would ban American tourist travel to North Korea

FILE PHOTO: A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

WASHINGTON (Reuters) – Republican and Democratic U.S. congressmen introduced a bill on Thursday that would ban Americans from traveling to North Korea as tourists and require them to obtain special permission for other types of visits.

Democrat Adam Schiff and Republican Joe Wilson said their proposed North Korea Travel Control Act followed the detention of at least 17 Americans in North Korea in the past decade.

North Korea has a record of using detained Americans to extract high-profile visits from the United States, with which it has no formal diplomatic relations.

“With increased tensions in North Korea, the danger that Americans will be detained for political reasons is greater than ever,” the congressmen said in a statement.

Given North Korea’s “demonstrated willingness to use American visitors as bargaining chips to extract high level meetings or concessions, it is appropriate for the United States to take steps to control travel to a nation that poses a real and present danger to American interests,” they said.

Four Americans are being held in North Korea as diplomatic tensions with Washington have heightened. Two of them, detained in the past month, are affiliated with a private university in the North Korean capital.

A congressional source said the bill would ban tourist travel by Americans outright, while any other visits would require a special license from the Treasury Department, which is enforcing a wide range of sanctions on North Korea over its nuclear and missile programs.

North Korea this month asserted its sovereign right to “ruthlessly punish” U.S. citizens it has detained for crimes against the government. It said calling such arrests bargaining ploys was “pure ignorance.”

North Korea said on May 7 it had detained Kim Hake Song, who worked for the Pyongyang University of Science and Technology, on suspicion of “hostile acts.”

Another American, Kim Sang Dok, who was associated with the same school, was detained in late April on the same charge.

The other two Americans are Otto Warmbier, a 22-year-old student detained in January 2016 and sentenced to 15 years hard labor for attempting to steal a propaganda banner, and Kim Dong Chul, a 62-year-old Korean-American missionary.

Kim was sentenced to 10 years hard labor for subversion last year.

(Reporting by David Brunnstrom; Editing by Richard Chang)