Homeland Security announces steps against H1B visa fraud

FILE PHOTO: U.S. Department of Homeland Security emblem is pictured at the National Cybersecurity & Communications Integration Center (NCCIC) located just outside Washington in Arlington, Virginia September 24, 2010. REUTERS/Hyungwon Kang

By Julia Edwards Ainsley

WASHINGTON (Reuters) – The U.S. Department of Homeland Security announced steps on Monday to prevent the fraudulent use of H1B visas, used by employers to bring in specialized foreign workers temporarily, which appeared to fall short of President Donald Trump’s campaign promises to overhaul the program.

A White House official said Trump may still do more on the program.

Trump had promised to end the lottery system for H1B visas, which gives each applicant an equal chance at 65,000 positions each year.

Lobbyists for businesses who rely on H1B visas, commonly used by the tech sector, had expected Trump to upend the lottery in favor of a system that prioritized workers who are highly skilled and would be highly paid in the United States.

The lottery for fiscal year 2018 opened on Monday without changes.

The start of the lottery was seen by those watching the issue as the unofficial deadline for the Trump administration to enact H1B visa reform, and the failure to meet that deadline signals that Trump’s promised overhaul of the system may be off the table or long delayed.

“More oversight is a good start, but employers can still use the program legally to depress wages and replace American workers. That falls short of the promises President Trump made to protect American workers,” said Peter Robbio, a spokesman for Numbers USA, a Washington-based group that advocates for limiting immigration into the United States.

The Trump administration has taken other steps to crackdown on H1B visa abuse, such as issuing a Justice Department warning to employers and announcing plans to increase transparency on applicants.

“These are important first steps to bring more accountability and transparency to the H1B system,” a White House official said. “The administration is considering several additional options for the president to use his existing authority to ensure federal agencies more rigorously enforce all aspects of the program.”

Tech companies rely on the program to bring in workers with special skills and have lobbied for an expansion of the number of H1B visas awarded.

Proponents of limiting legal immigration, including Trump’s senior adviser Stephen Miller, have argued the program gives jobs that Americans could fill to foreign workers at a less expensive cost.

The measures announced by DHS on Monday focus on site visits by U.S. authorities to employers who use H1B visas.

In future site visits, U.S. Citizenship and Immigration Services agents will investigate incidents where an employer’s basic business information cannot be validated; businesses that have a high ratio of H1B employees compared with U.S. workers; and employers petitioning for H1B workers who work off-site.

(Editing by Matthew Lewis)

Iran rejects U.S. terror claim by Mattis, blames Saudi

U.S. Defense Secretary James Mattis arrives as his meeting with Ajit Doval, National Security Advisor of India, at the Pentagon in Washington, U.S., March 24, 2017. REUTERS/Yuri Gripas

DUBAI (Reuters) – Iran rejected an allegation by U.S. Defense Secretary James Mattis that it was “the primary exporter of terrorism” and said on Saturday that the main source was U.S. ally Saudi Arabia.

“Some countries led by America are determined to ignore the main source of Takfiri-Wahhabi terrorism and extremism,” foreign ministry spokesman Bahram Ghasemi was quoted by Iran’s state news agency IRNA as saying.

He was referring to hardline Sunni Muslim groups and Saudi Arabia’s official Wahhabi school of Islam.

Saudi Arabia denies backing terrorism and has cracked down on jihadists at home, jailing thousands, stopping hundreds from traveling to fight abroad and cutting militant finances.

Shi’ite Muslim power Iran and Saudi Arabia, bastion of Sunni Islam and a close U.S. ally, are longstanding religious and political arch rivals and often accused each other of backing terrorism. Relations are fraught as they back each other’s foes in regional wars such as in Yemen, Iraq and Syria.

“Giving a wrong address when referring to the roots and the financial and intellectual resources of terrorism is a main reason for a lack of success by international anti-terror efforts,” Ghasemi added.

Ghasemi was reacting to remarks by Mattis on Friday when he was asked about comments he made in 2012 that the three main threats the United States faced were “Iran, Iran, Iran”.

“At the time when I spoke about Iran I was a commander of U.S. Central Command and that (Iran) was the primary exporter of terrorism, frankly, it was the primary state sponsor of terrorism and it continues that kind of behavior today,” Mattis told reporters.

(Reporting by Dubai newsroom; editing by Alexander Smith)

Tillerson meets wife of U.S. pastor jailed in Turkey

U.S. Secretary of State Rex Tillerson speaks during a news conference in Ankara, Turkey, March 30, 2017. REUTERS/Umit Bektas

ANKARA (Reuters) – U.S. Secretary of State Rex Tillerson met with the wife of a jailed American pastor, Andrew Brunson, in the Turkish capital Ankara on Thursday night, a State Department official said on Friday.

Brunson is a missionary who has been held in Turkey since October on charges of being part of a terrorist organization, according to news reports.

‎”Secretary of State Tillerson wanted to make sure he met with Mrs. Brunson to share the most recent information he had on Pastor Brunson’s case,” the official said.

“The Secretary ‎committed to staying in touch with Mrs. Brunson regarding the case moving forward,” the official said.

The pastor and his wife, Norine Brunson, were initially detained on immigration violation charges in October, when they were operating a small Christian church in the city of Izmir on Turkey’s western coast, media reports say.

Turkish media reports say Brunson has been charged with membership of the Gulenist Terror Organisation, the term which Turkish authorities uses to refer to the network of U.S.-based Islamic cleric Fethullah Gulen.

Ankara accuses Gulen and his followers of being behind an attempted coup in Turkey last July. Gulen rejects the allegations.

Tillerson was in Ankara to meet Turkish President Tayyip Erdogan and senior government ministers for talks which focused on the conflict in neighboring Syria.

Foreign Minister Mevlut Cavusoglu told a joint news conference with Tillerson that Ankara expected Washington to take concrete steps on the extradition of Gulen, calling for his detention in the United States.

(Reporting by Lesley Wroughton; Writing by Daren Butler; Editing by David Dolan)

U.S. Zika vaccine begins second phase of testing

FILE PHOTO: A pair of Aedes albopictus mosquitoes are seen during a mating ritual while the female feeds on a blood meal in a 2003 image from the Centers for Disease Control (CDC). REUTERS/Centers for Disease Control/James Gathany/Handout via Reuters

By Julie Steenhuysen

CHICAGO (Reuters) – Researchers have begun the second phase of testing of a Zika vaccine developed by U.S. government scientists in a trial that could yield preliminary results as early as the end of 2017.

Dr. Anthony Fauci, director of the National Institutes of Allergy and Infectious Diseases (NIAID), said on Friday the $100 million trial has already been funded and will proceed, irrespective of the $7 billion in cuts to the National Institutes of Health (NIH) budget proposed by the Trump Administration over the next 18 months.

In a conference call with reporters, Fauci would not comment on the proposed cuts because it is not clear yet what the actual budget will be. Both Democratic and Republican lawmakers oppose cuts to the NIH, which funds 21 institutes, including NIAID.

NIH Director Dr. Francis Collins is scheduled to speak with President Donald Trump later on Friday. “I will certainly be talking to Francis Collins when he returns from the White House,” Fauci said.

Zika typically causes mild symptoms, but when the virus infects a pregnant women, she can pass it to her fetus, causing a variety of birth defects including microcephaly, in which the baby’s head is abnormally small.

Fauci said the current Zika vaccine candidate had cleared preliminary safety hurdles, and would now enter testing for efficacy, which would occur in two phases.

The first phase will continue testing for safety and evaluate the vaccine’s ability to stimulate the immune system to develop antibodies to fight Zika. It will also test different doses to see which works best.

The second phase, set to begin in June, will attempt to determine if the vaccine can actually prevent Zika infection.

Several companies are developing Zika vaccines, including Sanofi SA, GlaxoSmithKline Plc and Takeda Pharmaceuticals.

In the NIAID study, researchers aim to enroll at least 2,490 healthy volunteers in areas with confirmed or potential active transmission of Zika by mosquitoes. These include parts of the continental United States, Puerto Rico, Brazil, Peru, Costa Rica, Panama and Mexico. They will receive either the vaccine, or a placebo, and be followed for two years.

If enough people are exposed to the virus, Fauci said they could get an effectiveness signal as early as the end of this year. The trial is expected to be completed by 2019.

Fauci said the government is already in discussions with pharmaceutical companies that would share the costs of the final stage of testing and handle manufacturing.

Zika is primarily transmitted by mosquitoes, but it can also be transmitted sexually. According to Centers for Disease Control and Prevention, 5,182 people in the continental United States have been infected by Zika either locally or through travel to places where the virus is spreading. Another 38,303 cases have been reported in U.S. territories, including Puerto Rico.

(Reporting by Julie Steenhuysen; editing by Diane Craft)

China downplays tensions with U.S. as Xi prepares to meet Trump

Chinese President Xi Jinping and U.S. President Donald Trump. REUTERS/File Photos

By Ben Blanchard and David Lawder

BEIJING/WASHINGTON (Reuters) – Beijing sought to play down tensions with the United States and put on a positive face on Friday, as the U.S. administration slammed China on a range of business issues ahead of President Xi Jinping’s first meeting with President Donald Trump.

Trump set the tone for what could be a tense meeting at his Mar-a-Lago retreat next week by tweeting on Thursday that the United States could no longer tolerate massive trade deficits and job losses.

Trump said the highly anticipated meeting, which is also expected to cover differences over North Korea and China’s strategic ambitions in the South China Sea, “will be a very difficult one.”

Ahead of the meeting, Trump will sign executive orders on Friday aimed at identifying abuses that are causing massive U.S. trade deficits and clamping down on non-payment of anti-dumping and anti-subsidy duties on imports, his top trade officials said.

Separately, the U.S. Trade Representative’s office, controlled by the White House, said Beijing’s industrial policies and financial support for industries such as steel and aluminum have resulted in over-production and a flood of exports that have distorted global markets and undermined competitive companies.

Seeking to downplay the rift, Chinese Foreign Ministry spokesman Lu Kang reiterated a desire for cooperation on trade.

“With regard to the problems existing between China and the United States in trade relations, both sides should in a mutual respectful and mutual beneficial way find appropriate resolutions, and ensure the stable development of Sino-U.S. trade relations,” he told a daily news briefing.

The leaders of the world’s two largest economies are scheduled to meet next Thursday and Friday for the first time since Trump assumed office on Jan. 20.

Speaking earlier at a briefing on the Xi-Trump meeting, Chinese Vice Foreign Minister Zheng Zeguang acknowledged the trade imbalance, but said it was mostly due to differences in their two economic structures and noted that China had a trade deficit in services.

“China does not deliberately seek a trade surplus. We also have no intention of carrying out competitive currency devaluation to stimulate exports. This is not our policy,” Zheng said.

CONCILIATORY TONE

State news agency Xinhua also struck a conciliatory tone.

“Of course, it would be naive to believe that the two sides can bridge their differences in a single diplomatic meeting,” it said in an English language commentary on Friday.

“Yet as long as the two nations can maintain their good faith, which they have shown recently, to talk and to make concessions based on mutual respect, then no difference would be too difficult to iron out.”

Trump has frequently accused China of keeping its currency artificially low against the dollar to make Chinese exports cheaper, and “stealing” American manufacturing jobs.

The yuan fell 6.5 percent last year in its biggest annual loss against the dollar since 1994, knocked by pressure from sluggish economic growth and a broadly strong U.S. currency.

Trump has resisted acting on a campaign promise to declare China a currency manipulator on his first day in office, but tensions have persisted over how his administration’s China policy would evolve.

While apprehensive about a trade war, the American business community in China has grown more vocal.

Fear of retaliation had once made business lobbies eschew more forceful U.S. trade policies toward China, but such groups have increasingly urged the Trump administration to take targeted action to address market access imbalances.

Zheng said domestic consumption in China will increase as it pursues economic reforms, helping to raise demand for foreign goods and services, including those from the United States.

“This also helps ameliorate the trade imbalance between China and the United States,” he said.

The trade imbalance could be resolved by improved cooperation, Zheng said, urging Washington to lift restrictions on civilian technology exports to China and create better conditions for Chinese investment in the United States.

The USTR report, however, accused China of using a range of measures to engineer the transfer of foreign technology to local firms. It said these include denying financial or regulatory approvals to companies using foreign-owned intellectual property or that do not conduct research or manufacture products in China.

The report also brought up longstanding complaints about online piracy of movies, books, music, video games and software in China as well as a ban on U.S. beef that has been in place since 2003.

(Additional reporting by Christian Shepherd and Michael Martina in BEIJING; Editing by Lincoln Feast)

Consumer spending slows; inflation pushing higher

A customer shops at a Walmart Supercenter in Rogers, Arkansas June 6, 2013. REUTERS/Rick Wilking

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer spending barely rose in February amid delays in the payment of income tax refunds, but the biggest annual increase in inflation in nearly five years supported expectations of further interest rate hikes this year.

The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of U.S. economic activity, edged up 0.1 percent. That was the smallest gain since August and followed an unrevised 0.2 percent rise in January.

Economists had expected a 0.2 percent increase.

The government delayed the issuing of tax refunds this year as part of efforts to combat fraud. Spending last month was held back by a 0.1 percent dip in purchases of big-ticket items like automobiles. While unseasonably warm weather reduced households’ heating bills, it restricted spending last month.

Weak consumer spending suggested that economic growth slowed further in the first quarter. Gross domestic product increased at a 2.1 percent annualized rate in the fourth quarter, stepping down from the July-September quarter’s brisk 3.5 percent pace.

Despite signs of moderate growth, the Federal Reserve is expected to raise interest rates at least twice more this year. The U.S. central bank raised its benchmark overnight interest rates by a quarter of a percentage point this month.

Prices for U.S. Treasuries fell on the data, while the dollar was little changed against a basket of currencies. U.S. stock index futures were slightly lower.

With consumer confidence at 16-year highs and labor market tightness pushing up wage growth, the moderation in spending is likely to be temporary. Even with economic growth slowing at the start of the year, inflation is rising.

The personal consumption expenditures (PCE) price index gained 0.1 percent last month after jumping 0.4 percent in January. That lifted the year-on-year rate of increase in the PCE price index to 2.1 percent, the biggest gain since April 2012. The PCE price index rose 1.9 percent in January.

Excluding food and energy, the so-called core PCE price index increased 0.2 percent last month after rising 0.3 percent in January. In the 12 months through February, the core PCE price index increased 1.8 percent after a similar gain in January.

The core PCE is the Federal Reserve’s preferred inflation measure and is running below its 2 percent target. Inflation is now in the upper end of the range that Fed officials in March felt would be reached this year.

Rising price pressures are also eating into consumer spending. When adjusted for inflation, consumer spending fell 0.1 percent in February after declining 0.2 percent in January.

That suggests a sharp deceleration in the pace of consumer spending after a robust 3.5 percent growth rate in the fourth quarter.

Personal income rose 0.4 percent last month after advancing 0.5 percent in January. Wages increased 0.5 percent, the biggest gain in five months.

Income at the disposal of households after accounting for inflation increased 0.2 percent after dipping 0.1 percent in January. Savings rose to a five-month high of $808.0 billion from $770.9 billion in January.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

U.S.-UK alliance targets the world’s deadliest superbugs

MRSA (Methicillin-resistant Staphylococcus aureus) bacteria strain is seen in a petri dish containing agar jelly for bacterial culture in a microbiological laboratory in Berlin March 1, 2008. MRSA is a drug-resistant "superbug", which can cause deadly infections. REUTERS/Fabrizio Bensch

By Kate Kelland

LONDON (Reuters) – Eleven biotech companies and research teams in Britain and the United States were awarded up to $48 million in funding on Thursday to speed development of new antibiotics powerful enough to take on the world’s deadliest superbugs.

The range of antimicrobial medicines able to kill the growing number of drug-resistant infections is dwindling and health experts warn that within a generation the death toll from such “superbug” infections could reach 10 billion.

Announcing its first funding, a new U.S.-U.K. alliance known as CARB-X, short for Combating Antibiotic Resistant Bacteria Biopharmaceutical Accelerator, said it would invest an initial $24 million in 11 biotech companies pursing various projects to develop antibiotics and diagnostic. Another $24 million will be given in staged payments over three years as projects progress.

Added to private funds from the companies, the CARB-X funding could lead to an investment of more than $75 million in projects that show success, it said in a statement. Britain’s Wellcome Trust global health charity is committing 125 million pounds ($155.5 million) over five years.

Public health specialists have been warning for years that the world is facing an urgent global health threat from antibiotic-resistant superbug bacteria and that the pipeline of novel therapies to treat them is precariously thin.

Drug-resistant infections kill 700,000 people a year worldwide, and the last new antibiotic class to be approved for market was discovered in 1984.

With CARB-X funds, three of the 11 projects are working on potential new classes of antibiotics, while four are exploring new ways of targeting and killing bacteria.

Tim Jinks, head of drug resistant infection at the Wellcome Trust, said antibiotic resistance is already “a huge global health challenge” and is getting worse. “Without effective drugs, doctors cannot treat patients,” he said in a statement.

Kevin Outterson, CARB-X’s executive director and a professor of law at Boston University in the United States, added: “By accelerating promising research, it is our hope that we can speed up the delivery of new effective antibacterials, vaccines, devices and rapid diagnostics to patients who need them.”

(Editing by Alexander Smith)

China’s Xi to meet Trump in Florida next week

China's President Xi Jinping attends the opening session of the Chinese People's Political Consultative Conference in Beijing. REUTERS/Jason Lee

BEIJING (Reuters) – Chinese President Xi Jinping will travel to the United States to meet President Donald Trump at his Mar-a-Lago retreat in Florida on April 6-7, China’s Foreign Ministry said on Thursday, its first official confirmation of the highly anticipated summit.

It will be Xi’s first meeting with Trump, whose presidency began on Jan. 20, and comes as the two sides face pressing issues, ranging from North Korea and the South China Sea to trade disputes.

Ministry spokesman Lu Kang made the announcement at a daily news briefing.

He did not give any more details of the meeting agenda, but spoke of the need to see the big picture while fostering mutual interests in trade relations.

“The market dictates that interests between our two countries are structured so that you will always have me and I will always have you,” Lu said.

“Both sides should work together to make the cake of mutual interest bigger and not simply seek fairer distribution,” he said in response to a question about trade frictions.

Beijing had previously said that preparatory work for the meeting was underway. But it had not yet confirmed the trip, despite western media reports on a scheduled meeting and an announcement by the Finnish government that Xi would make a brief stop in Finland on April 5.

The summit will follow a string of other recent U.S.-China meetings and conversations aimed at mending ties after strong criticism of China by Trump during his election campaign.

U.S. Secretary of State Rex Tillerson ended a trip to Asia this month in Beijing, agreeing to work together with China on North Korea and stressing Trump’s desire to enhance understanding.

China has been irritated at being repeatedly told by Washington to rein in North Korea’s nuclear and missile programs and by the U.S. decision to base an advanced missile defense system in South Korea.

Beijing is also deeply suspicious of U.S. intentions towards self-ruled Taiwan, which China claims as its own.

During his election campaign, Trump accused China of unfair trade policies, criticized its island-building in the strategic South China Sea, and accused it of doing too little to constrain North Korea.

Trump also incensed Beijing in December by taking a phone call from Taiwanese President Tsai Ing-wen and later saying the United States did not have to stick to the so-called “one China” policy.

He later agreed in a phone call with Xi to honor the long-standing policy and has also written to Xi since seeking “constructive ties.”

(Reporting by Christian Shepherd; Writing by Michael Martina; Editing by Simon Cameron-Moore)

Federal judge in Hawaii extends court order blocking Trump travel ban

Hawaii Attorney General Douglas Chin (R) arrives at the U.S. District Court Ninth Circuit to seek an extension after filing an amended lawsuit against President Donald Trump's new travel ban in Honolulu. REUTERS/Hugh Gentry

HONOLULU (Reuters) – A federal judge in Hawaii indefinitely extended on Wednesday an order blocking enforcement of President Donald Trump’s revised ban on travel to the United States from six predominantly Muslim countries.

U.S. District Judge Derrick Watson turned an earlier temporary restraining order into a preliminary injunction in a lawsuit brought by the state of Hawaii challenging Trump’s travel directive as unconstitutional religious discrimination.

Trump signed the new ban on March 6 in a bid to overcome legal problems with a January executive order that caused chaos at airports and sparked mass protests before a Washington judge stopped its enforcement in February. Trump has said the travel ban is needed for national security.

In its challenge to the travel ban, Hawaii claims its state universities would be harmed by the order because they would have trouble recruiting students and faculty.

It also says the island state’s economy would be hit by a decline in tourism. The court papers cite reports that travel to the United States “took a nosedive” after Trump’s actions.

The state was joined by a new plaintiff named Ismail Elshikh, an American citizen from Egypt who is an imam at the Muslim Association of Hawaii and whose mother-in-law lives in Syria, according to the lawsuit.

Hawaii and other opponents of the ban claim that the motivation behind it is based on religion and Trump’s election campaign promise of “a total and complete shutdown of Muslims entering the United States.”

“The court will not crawl into a corner, pull the shutters closed, and pretend it has not seen what it has,” Watson wrote on Wednesday.

Watson wrote that his decision to grant the preliminary injunction was based on the likelihood that the state would succeed in proving that the travel ban violated the U.S. Constitution’s religious freedom protection.

Trump has vowed to take the case to the U.S. Supreme Court, which is currently split 4-4 between liberals and conservatives with the president’s pick – appeals court judge Neil Gorsuch – still awaiting confirmation.

(Reporting by Hunter Haskins in Honolulu; Additional reporting and writing by Brendan O’Brien in Milwaukee; Editing by Paul Tait)