Courts to hear arguments challenging Trump’s new travel ban

FILE PHOTO: U.S. President Donald Trump attends a meeting with U.S. House Deputy Whip team at the East room of the White House in Washington, U.S. March 7, 2017. REUTERS/Carlos Barria/File Photo

By Mica Rosenberg

(Reuters) – Court hearings in Hawaii and Maryland on Wednesday could decide the immediate fate of President Donald Trump’s revised travel ban, which is set to take effect at 12:01 a.m. EDT (0401 GMT) on Thursday.

The courts have been asked in lawsuits challenging the ban to issue restraining orders that would prevent it from taking effect pending resolution of the litigation.

The new order, which temporarily bars the entry of most refugees as well as travelers from six Muslim-majority countries, was signed by the president on March 6, with a 10-day lag before it took effect.

It replaced an earlier, broader order that was signed amid much fanfare a week after Trump’s Jan. 20 inauguration. The first order temporarily banned travelers from seven countries in addition to most refugees and took effect immediately, causing chaos and protests at airports across the country and around the globe.

States and civil rights groups filed more than two dozen lawsuits against the first order, arguing it discriminated against Muslims and violated the U.S. Constitution.

In response to a lawsuit by Washington state, a federal judge in Seattle last month issued a nationwide halt to the first order. That decision was upheld by a U.S. appeals court.

The Trump administration made changes in an attempt to address the judges’ concerns. But the states and civil rights groups went back to court arguing the new ban did not solve the problems and should be stopped.

‘WHO WOULD BE HARMED?’

One central question likely to be raised at the hearings is who would be harmed by the new ban. The administration in its new order explicitly exempts legal permanent residents and existing visa holders and provides a series of waivers for various categories of immigrants with ties to the United States.

While the new order still bars citizens of Iran, Libya, Syria, Somalia, Sudan and Yemen from entering the country for 90 days, Iraq is no longer on the list. Refugees are still barred for 120 days, but an indefinite ban on all refugees from Syria was deleted.

To succeed, the plaintiffs must show they have “standing” to challenge the ban, which means they must have been harmed by the policy.

If they get past that hurdle, the plaintiffs will argue that both the new ban and the old discriminate on the basis of religion and are unconstitutional.

The Trump administration disputes that allegation, citing as evidence that many Muslim-majority countries are not included in the ban.

In the Hawaii case, the island state says its universities and tourist economy would be harmed by the restrictions on travel.

Hawaii also sued in conjunction with a plaintiff named Ismail Elshikh, an American citizen from Egypt who is an imam at the Muslim Association of Hawaii. Elshikh says his family will be harmed if his mother-in-law, who lives in Syria, is prevented from visiting because of the restrictions.

The government in its response to Hawaii said Elshikh had not been harmed because the ban allows for waivers, and his mother-in-law could apply for one.

In the Maryland case, the American Civil Liberties Union is representing refugee resettlement agencies it says will be hurt by the ban because it affects their operations. The ACLU adds that some of the agencies’ clients are in conflict zones and face imminent danger even if they are only temporarily barred from the United States.

“All of those exemptions and waivers were an effort to shore up this discriminatory order after the fact,” said Cecillia Wang, ACLU deputy legal director told reporters on a conference call with reporters.

(Reporting by Mica Rosenberg in New York and Dan Levine in Honolulu; Additional reporting by Ian Simpson in Greenbelt, Md.; Editing by Sue Horton and Peter Cooney)

U.S. retail sales weakest in six months; inflation firming

Shoppers ride escalators at the Beverly Center mall in Los Angeles, California November 8, 2013. REUTERS/David McNew

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. retail sales recorded their smallest increase in six months in February as households cut back on motor vehicle purchases and discretionary spending, the latest indication that the economy lost further momentum in the first quarter.

Other data on Wednesday showed a steady increase in inflation, with the consumer price index posting its biggest year-on-year increase in nearly five years in February. Firming inflation could allow the Federal Reserve to raise interest rates on Wednesday despite signs of slowing domestic demand.

“Nothing here to suggest the Fed shouldn’t raise interest rates at the policy meeting that concludes later today,” said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

The Commerce Department said retail sales edged up 0.1 percent last month, the weakest reading since August. January’s retail sales were revised up to show a 0.6 percent rise instead of the previously reported 0.4 percent advance.

Sales were likely held back by delays in issuing tax refunds this year as part of efforts by the government to combat fraud. Compared to February last year retail sales were up 5.7 percent.

February’s retail sales gain was in line with economists’ expectations. Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.1 percent after an upwardly revised 0.8 percent jump in January.

These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have increased 0.4 percent in January.

In a separate report, the Labor Department said its Consumer Price Index ticked up 0.1 percent last month as a drop in gasoline prices offset increases in the cost of food and rental accommodation. That was the weakest reading in the CPI since July and followed a 0.6 percent jump in January.

In the 12 months through February, the CPI accelerated 2.7 percent, the biggest year-on-year gain since March 2012. The CPI rose 2.5 percent in the year to January. Inflation is firming in part as the 2015 drop, which was driven by lower oil prices, fades from the calculation.

The so-called core CPI, which strips out food and energy

costs, increased 0.2 percent last month as new motor vehicle prices fell and apparel prices moderated after spiking in January. The core CPI increased 0.3 percent in January.

In the 12 months through February, the core CPI increased

2.2 percent after advancing 2.3 percent in January. It was the 15th straight month the year-on-year core CPI remained in the 2.1 percent to 2.3 percent range.

The Fed has a 2 percent inflation target and tracks an inflation measure which is currently at 1.7 percent.

ECONOMY SLOWING

The U.S. central bank is expected to raise its overnight benchmark interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent on Wednesday. It increased borrowing costs last December and has forecast three rate hikes in 2017.

U.S. financial markets were little moved by the data as traders awaited the outcome of the Fed’s meeting. The Fed will announce its decision on interest rates at 2 p.m. (1800 GMT)

February’s retail sales added to January’s weak reports on trade, construction and business spending that have pointed to sluggish economic growth in the first quarter.

The Atlanta Fed is forecasting GDP rising at a 1.2 percent annualized rate in the first quarter. With the labor market near full employment, slowing growth probably understates the health of the economy. In addition, GDP growth tends to be weaker in the first quarter because of calculation issues that the government has acknowledged and is working to resolve.

Tightening labor market conditions, which are steadily lifting wages, continue to underpin consumer spending.

In February, motor vehicle sales fell 0.2 percent after declining 1.3 percent the prior month. Receipts at service stations slipped 0.6 percent, reflecting lower gasoline prices.

Sales at electronics and appliances stores fell 2.8 percent, the biggest decline since December 2011, after climbing 1.1 percent in January. Receipts at building material stores increased 1.8 percent.

Sales at clothing stores fell 0.5 percent. Retailers including J.C. Penney Co Inc <JCP.N>, Abercrombie & Fitch <ANF.N> and Macy’s Inc <M.N> are scaling back on brick-and-mortar operations amid increased competition from online retailers, led by Amazon.com <AMZN.O>.

Sales at online retailers jumped 1.2 percent last month after increasing 0.5 percent in January. Receipts at restaurants and bars dipped 0.1 percent, while sales at sporting goods and hobby stores fell 0.4 percent.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Several states jointly sue to block Trump’s revised travel ban

DAY 46 / MARCH 6: President Donald Trump signed a revised executive order banning citizens from six Muslim-majority nations from traveling to the United States but removing Iraq from the list, after his controversial first attempt was blocked in the courts.

By Mica Rosenberg

(Reuters) – A group of states renewed their effort on Monday to block President Donald Trump’s revised temporary ban on refugees and travelers from several Muslim-majority countries, arguing that his executive order is the same as the first one that was halted by federal courts.

Court papers filed by the state of Washington and joined by California, Maryland, Massachusetts, New York and Oregon asked a judge to stop the March 6 order from taking effect on Thursday.

An amended complaint said the order was similar to the original Jan. 27 directive because it “will cause severe and immediate harms to the States, including our residents, our colleges and universities, our healthcare providers, and our businesses.”

A Department of Justice spokeswoman said it was reviewing the complaint and would respond to the court.

A more sweeping ban implemented hastily in January caused chaos and protests at airports. The March order by contrast gave 10 days’ notice to travelers and immigration officials.

Last month, U.S. District Judge James Robart in Seattle halted the first travel ban after Washington state sued, claiming the order was discriminatory and violated the U.S. Constitution. Robart’s order was upheld by the 9th U.S. Circuit Court of Appeals.

Trump revised his order to overcome some of the legal hurdles by including exemptions for legal permanent residents and existing visa holders and taking Iraq off the list of countries covered. The new order still halts citizens of Iran, Libya, Syria, Somalia, Sudan and Yemen from entering the United States for 90 days but has explicit waivers for various categories of immigrants with ties to the country.

Refugees are still barred for 120 days, but the new order removed an indefinite ban on all refugees from Syria.

Washington state has now gone back to Robart to ask him to apply his emergency halt to the new ban.

Robart said in a court order Monday that the government has until Tuesday to respond to the states’ motions. He said he would not hold a hearing before Wednesday and did not commit to a specific date to hear arguments from both sides.

PROVING HARM

Separately, Hawaii has also sued over the new ban. The island state, which is heavily dependent on tourism, said the executive order has had a “chilling effect” on travel revenues.

In response to Hawaii’s lawsuit, the Department of Justice in court papers filed on Monday said the president has broad authority to “restrict or suspend entry of any class of aliens when in the national interest.” The department said the temporary suspensions will allow a review of the current screening process in an effort to protect against terrorist attacks.

There is a hearing in the Hawaii case set for Wednesday, the day before the new ban is set to go into effect.

The first hurdle for the lawsuits will be proving “standing,” which means finding someone who has been harmed by the policy. With so many exemptions, legal experts have said it might be hard to find individuals who would have a right to sue, in the eyes of a court.

To overcome this challenge, the states filed more than 70 declarations of people affected by the order including tech businesses Amazon and Expedia, which said that restricting travel hurts their revenues and their ability to recruit employees.

Universities and medical centers that rely on foreign doctors also weighed in, as did religious organizations and individual residents, including U.S. citizens, with stories about separated families.

But the Trump administration in its filings in the Hawaii case on Monday said the carve-outs in the new order undercut the state’s standing claims.

“The Order applies only to individuals outside the country who do not have a current visa, and even as to them, it sets forth robust waiver provisions,” the Department of Justice’s motion said.

The government cited Supreme Court precedent in arguing that people outside the United States and seeking admission for the first time have “no constitutional rights” regarding their applications.

If the courts do end up ruling the states have standing to sue, the next step will be to argue that both versions of the executive order discriminate against Muslims.

“The Trump Administration may have changed the text of the now-discredited Muslim travel ban, but they didn’t change its unconstitutional intent and effect,” California Attorney General Xavier Becerra said in a statement on Monday.

While the text of the order does not mention Islam, the states claim that the motivation behind the policy is Trump’s campaign promise of “a total and complete shutdown of Muslims entering the United States.” He later toned down that language and said he would implement a policy of “extreme vetting” of foreigners coming to the United States.

The government said the courts should only look at the text of the order and not at outside comments by Trump or his aides.

(Reporting by Mica Rosenberg in New York; Editing by Jonathan Oatis and Grant McCool)

U.S. carrier joins South Korea drills, North Korea warns of ‘merciless’ strikes

A U.S. F18 fighter jet lands on the deck of U.S. aircraft carrier USS Carl Vinson during an annual joint military exercise called "Foal Eagle" between South Korea and U.S., in the East Sea, South Korea, March 14, 2017. REUTERS/Kim Hong-Ji

By Hongji Kim and Sang-gyu Lim

ABOARD THE USS CARL VINSON (Reuters) – As the USS Carl Vinson plowed through seas off South Korea on Tuesday, rival North Korea warned the United States of “merciless” attacks if the carrier infringes on its sovereignty or dignity during U.S.-South Korean drills.

F-18 fighter jets took off from the flight deck of the nuclear-powered carrier in a dramatic display of U.S. firepower amid rising tension with the North, which has alarmed its neighbors with two nuclear tests and a series of missile launches since last year.

“While this is a routine deployment for the Carl Vinson strike group, really the centerpiece for us … is this exercise we’re doing with the ROK navy called ‘Foal Eagle’,” Rear Admiral James W. Kilby, commander of the Carrier Strike Group 1, told reporters, referring to South Korea as the Republic of Korea.

North Korea said the arrival of the U.S. strike group in the seas off the east of the Korean peninsula was part of a “reckless scheme” to attack it.

“If they infringe on the DPRK’s sovereignty and dignity even a bit, its army will launch merciless ultra-precision strikes from ground, air, sea and underwater,” the North’s state news agency KCNA said.

North Korea’s official name is the Democratic People’s Republic of Korea.

“On March 11 alone, many enemy carrier-based aircraft flew along a course near territorial air and waters of the DPRK to stage drills of dropping bombs and making surprise attacks on the ground targets of its army,” KCNA said.

Last week, North Korea fired four ballistic missiles into the sea off Japan in response to annual U.S.-South Korea military drills, which the North sees as preparation for war.

The murder in Malaysia last month of North Korean leader Kim Jong Un’s estranged half-brother has added to a sense of urgency to efforts to handle North Korea.

U.S. Secretary of State Rex Tillerson is due to make his first visit to South Korea on Friday.

Last week, the U.S. ambassador to the United Nations said President Donald Trump’s administration was re-evaluating its North Korea strategy and “all options are on the table”.

CHINESE OPPOSITION

Compounding regional tension, China is vehemently opposed to the deployment in South Korea of an advanced U.S. anti-missile system.

The United States and South Korea say the Terminal High Altitude Area Defense anti-missile system is for defense against North Korea, but China fears its powerful radar can probe deep into its territory and compromise its security.

The United States began to deploy the system a week ago, a day after North Korea launched its latest four missile tests.

South Korean and U.S. troops began the large-scale joint drills, which are billed as defensive in nature, on March 1.

The exercise last year involved about 17,000 American troops and more than 300,000 South Koreans. South Korea has said this year’s exercise would be of a similar scale.

The United States has also started to deploy “Gray Eagle” attack drones to South Korea, a U.S. military spokesman said on Monday.

China says the exercises do nothing to ease tension.

Last week, it called on North Korea to stop its weapons tests and for South Korea and the United States to stop their drills.

“We hope the relevant side can respect the security concerns of countries in the region, can take a responsible attitude and do more to benefit the easing of tension, rather than irritating each other,” Chinese foreign ministry spokeswoman Hua Chunying told a daily news briefing, referring to the United States.

(Additional reporting by Hyunyoung Yi, Ben Blanchrd in BEIJING; Writing by James Pearson; Editing by Robert Birsel and Clarence Fernandez)

Oil touches three-month lows as U.S. supply swells

FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada

By Jessica Resnick-Ault

NEW YORK (Reuters) – Oil hovered around three-month lows on Monday, as rising inventories and drilling activity in the United States, the world’s top energy consumer, offset optimism over OPEC’s efforts to restrict crude output and reduce a global glut.

After more than two months of reduced production from the Organization of the Petroleum Exporting Countries, the market is facing evidence that U.S. production remains high and global markets remain oversupplied.

“There is growing skepticism that the production cut has been enacted long enough to take care of the overhang,” said Gene McGillian, director of market research at Tradition Energy. “The longs who piled in last year are turning on the market because there seems to be a realization that a six-month agreement isn’t long enough to rebalance the market.

Brent crude futures fell 7 cents to $51.30 a barrel by 11:33 a.m. Eastern (1633 GMT), having earlier hit a session low of $50.85, its lowest level since Nov. 30.

U.S. West Texas Intermediate crude (WTI)  fell 20 cents to $48.29 a barrel, a 0.4 percent loss.

Prices have fallen by more than 8 percent since last Monday, its biggest week-on-week drop in four months, and analysts said the slide may not have much further to run.

Goldman Sachs said in a note it remained “very confident” about commodity prices and maintained its price forecast of $57.50 for WTI in the second quarter.

The slide could be the result of traders unwinding bullish long positions, and could slow as those positions are unwound, Tradition Energy’s McGillian said.

U.S. drillers added oil rigs for an eighth consecutive week, Baker Hughes data showed on Friday, and they have announced ambitious production growth plans as they rebound from a two-year price war with OPEC. [RIG/U]

OPEC and other major oil producers, including Russia, reached an agreement at the end of November to rein in production by almost 1.8 million barrels per day (bpd) in the first half of 2017.

Russia’s top oil major Rosneft warned that a recovery in U.S. oil output may deter OPEC and non-OPEC producers from extending production cuts beyond June and might lead to a new price war.

Although OPEC states have been complying with supply curbs, led by Saudi Arabia, it has not been enough to overshadow a rise in U.S. inventories to a new high. [EIA/S]

“It will be interesting to see how OPEC rhetoric will evolve with this price correction. Is price the only consideration when it comes to the decision of extending cuts?” BNP Paribas global head of commodity strategy Harry Tchilinguirian told the Reuters Global Oil Forum.

He added that OPEC’s task was more difficult as it aimed to cut inventory levels rather than simply target a specific price.

Money managers cut their net long positions in U.S. crude futures and options in the week to March 7.

(Additional reporting by Jane Chung in Seoul, Keith Wallis in Singapore and Amanda Cooper in London; Editing by Marguerita Choy and Greg Mahlich)

Captains of German industry to accompany Merkel on Trump trip

Germany's Chancellor Angela Merkel briefs the media during a European Union leaders summit in Brussels, Belgium March 9, 2017.

By Georgina Prodhan

FRANKFURT (Reuters) – Bosses of German companies including engineering group Siemens and car maker BMW  will travel with Chancellor Angela Merkel to meet U.S. President Donald Trump this week, sources familiar with the matter told Reuters.

Faced with Trump’s “America First” policy and threats to impose tariffs on imported goods, the captains of industry will stress how many U.S. jobs are tied to “Deutschland AG”.

Trains-to-turbines group Siemens employs more than 50,000 people in the United States, its single biggest market, where it makes 21 percent of its total revenue, while BMW’s South Carolina plant is its largest factory anywhere in the world.

Trump will meet Merkel, Europe’s longest-serving leader, for the first time on Tuesday in Washington.

Merkel told business leaders in Munich on Monday that free trade was important for both countries, while a German government spokesman confirmed at a press conference that the two leaders would also meet with German business executives.

German chancellors have a long tradition of taking groups of business leaders along with them on trips to important countries. The other business leader accompanying Merkel will be the chief executive of ball-bearings maker Schaeffler.

The three chief executives will cross the Atlantic for a single scheduled meeting of less than an hour with Trump. They will brief the president on the German practice of training workers on the job while also sending them to classes at a vocational school to obtain formal qualifications.

Such training is traditionally offered by large German companies both at home and in their foreign operations, and is particularly prized in emerging economies, where it helps German corporations win business.

Sources of tension between Berlin and the new U.S. administration include an accusation by a senior Trump adviser that Germany profits unfairly from a weak euro, and Trump’s threat to impose 35 percent tariffs on imported vehicles.

The United States is Germany’s biggest trading partner, buying German goods and services worth 107 billion euros ($114 billion) last year while exporting just 58 billion euros’ worth in return.

“The accusations of President Donald Trump and his advisers are plucked out of thin air,” the president of Germany’s VDMA engineering industry association, Carl Martin Welcker, said in a statement on Monday.

He said 81,000 people were employed in German-owned engineering firms in the United States with almost 30 billion euros in total revenue, while German export successes were linked to the high quality of goods, not foreign-exchange effects.

As part of a bid to bring jobs to America, Trump has urged carmakers to build more cars in the United States and discouraged them from investing in Mexico, where German and other carmakers have big plants.

Trump’s order banning citizens of some majority-Muslim countries from entering the United States, and a threat to tear up the NAFTA free trade deal between the United States, Mexico and Canada, have also unnerved business leaders.

Siemens chief executive Joe Kaeser expressed concern last month about developments in the United States since Trump took office, saying: “The new American president has a style that’s different from what we’re accustomed to. It worries us, what we see.”

BMW’s Chief Executive Harald Krueger said last week that introducing protectionist measures and tariffs would not be good for the United States.

The carmaker is expanding its plant in Spartanburg, South Carolina, to have a capacity of 450,000 vehicles, with 70 percent for export.

It is also building a new plant in Mexico, where it plans to invest $2.2 billion by 2019. Mexico’s lower labor costs and unique free trade position mean it now accounts for a fifth of all vehicle production in North America.

“America profits from free trade. We are supporters of free trade and not of protectionism,” Krueger told reporters at the Geneva auto show.

(Additional reporting by Irene Preisinger in Munich, Erik Kirschbaum, Andreas Cremer and Andreas Rinke in Berlin, and Edward Taylor in Frankfurt; Editing by Catherine Evans and Susan Fenton)

Mike Pence to tour Asia next month amid security crises

U.S. Vice President Mike Pence speaks about the American Health Care Act during a visit to the Harshaw-Trane Parts and Distribution Center in Louisville, Kentucky, U.S

JAKARTA (Reuters) -U.S. Vice President Mike Pence will visit Japan and Indonesia as part of an Asian tour next month, sources said on Monday, amid concerns the Trump administration is rolling back Barack Obama’s “pivot to Asia.”

U.S. President Donald Trump has already withdrawn from the Trans-Pacific Partnership (TPP) trade agreement, which was seen as an economic pillar of the strategy.

A Trump administration official told Reuters: “The vice president is going to Asia next month I believe.”

The tour will include South Korea and Australia, the Nikkei Asian Review reported, with North Korea’s missile and nuclear programs and South Korea’s political crisis likely topics for discussion.

China has been infuriated by South Korea’s plan to deploy a U.S. missile defense system targeted at the North Korean threat. South Korea is also going through political turmoil after a court removed President Park Geun-hye from office over a graft scandal.

Pence is also expected to visit Tokyo for a U.S.-Japan economic dialogue, according to a source familiar with the matter.

The visit will come as North Korea’s latest missile launches and the assassination in Malaysia of North Korean leader Kim Jong Un’s estranged half-brother add urgency to the region’s security.

It will also follow this month’s trip by U.S. Secretary of State Rex Tillerson to Japan, South Korea, and China.

The TPP had been the main economic pillar of the Obama administration’s pivot to the Asia-Pacific region in the face of a fast-rising China.

Proponents of the pact have expressed concerns that abandoning the project, which took years to negotiate, could strengthen China’s economic hand in the region at the expense of the United States.

Indonesia’s chief security minister said Pence would meet President Joko Widodo to discuss terrorism and other security issues.

Indonesia has the world’s largest Muslim population and has recently grappled with a series of low-level militant attacks inspired by Islamic State.

“We discussed the planned visit of U.S. vice president Mike Pence to Indonesia and the strategic problems that can be on the agenda to discuss with our president,” chief security minister Wiranto told reporters after meeting the U.S. ambassador to Jakarta.

He added that no dates have been finalized.

In Indonesia, Pence is also expected to discuss a brewing contract dispute between the government and American mining group Freeport McMoRan Inc, said two Indonesian government sources.

Freeport has threatened to take the Indonesian government to court over newly revised mining regulations that have prompted a major scale-back in its operations in the eastern province of Papua.

(Reporting by Agustinus Beo Da Costa and Kanupriya Kapoor; Additional reporting by Malcolm Foster in Tokyo and David Brunnstrom in Washington; Writing by Kanupriya Kapoor; Editing by Nick Macfie and Jeffrey Benkoe)

Japan plans to send largest warship to South China Sea

FILE PHOTO: A helicopter lands on the Izumo, Japan Maritime Self Defense Force's (JMSDF) helicopter carrier, at JMSDF Yokosuka base in Yokosuka, south of Tokyo, Japan,

By Tim Kelly and Nobuhiro Kubo

TOKYO (Reuters) – Japan plans to dispatch its largest warship on a three-month tour through the South China Sea beginning in May, three sources said, in its biggest show of naval force in the region since World War Two.

China claims almost all the disputed waters and its growing military presence has fueled concern in Japan and the West, with the United States holding regular air and naval patrols to ensure freedom of navigation.

The Izumo helicopter carrier, commissioned only two years ago, will make stops in Singapore, Indonesia, the Philippines and Sri Lanka before joining the Malabar joint naval exercise with Indian and U.S. naval vessels in the Indian Ocean in July.

It will return to Japan in August, the sources said.

“The aim is to test the capability of the Izumo by sending it out on an extended mission,” said one of the sources who have knowledge of the plan. “It will train with the U.S. Navy in the South China Sea,” he added, asking not to be identified because he is not authorized to talk to the media.

A spokesman for Japan’s Maritime Self Defense Force declined to comment.

Taiwan, Malaysia, Vietnam, the Philippines and Brunei also claim parts of the sea which has rich fishing grounds, oil and gas deposits and through which around $5 trillion of global sea-borne trade passes each year.

Japan does not have any claim to the waters, but has a separate maritime dispute with China in the East China Sea.

Japan wants to invite Philippine President Rodrigo Duterte, who has pushed ties with China in recent months as he has criticized the old alliance with the United States, to visit the Izumo when it visits Subic Bay, about 100 km (62 miles) west of Manila, another of the sources said.

Asked during a news conference about his view on the warship visit, Duterte said, without elaborating, “I have invited all of them.”

He added: “It is international passage, the South China Sea is not our territory, but it is part of our entitlement.”

On whether he would visit the warship at Subic Bay, Duterte said: “If I have time.”

Japan’s flag-flying operation comes as the United States under President Donald Trump appears to be taking a tougher line with China. Washington has criticized China’s construction of man-made islands and a build-up of military facilities that it worries could be used to restrict free movement.

Beijing in January said it had “irrefutable” sovereignty over the disputed islands after the White House vowed to defend “international territories”.

The 249 meter-long (816.93 ft) Izumo is as large as Japan’s World War Two-era carriers and can operate up to nine helicopters. It resembles the amphibious assault carriers used by U.S. Marines, but lacks their well deck for launching landing craft and other vessels.

Japan in recent years, particularly under Prime Minister Shinzo Abe, has been stretching the limits of its post-war, pacifist constitution. It has designated the Izumo as a destroyer because the constitution forbids the acquisition of offensive weapons. The vessel, nonetheless, allows Japan to project military power well beyond its territory.

Based in Yokosuka, near to Tokyo, which is also home to the U.S. Seventh Fleet’s carrier, the Ronald Reagan, the Izumo’s primary mission is anti-submarine warfare.

(Additional reporting by Martin Petty in Manila; Editing by Nick Macfie)

Suspect arrested after scaling White House fence, Secret Service says

FILE PHOTO: A restricted area sign is seen outside of the White House in Washington November 27, 2015. REUTERS/Carlos Barria/File Photo

By Emily Stephenson

WASHINGTON (Reuters) – An intruder carrying a backpack was arrested after scaling a fence and entering the White House grounds, the U.S. Secret Service said on Saturday, in the latest breach of security at the president’s official residence.

President Donald Trump was inside the White House when a male suspect scaled the complex’s South Grounds fence at 11:38 p.m. on Friday, and uniformed officers arrested him, the Secret Service said in a statement.

Trump was not in any danger during the incident, CNN reported, citing an unnamed source.

A 2014 intrusion at the White House prompted the resignation of Secret Service director Julia Pierson and a series of recommendations to tighten security. In 2015, a row of sharp spikes was bolted to the top of the black iron fence surrounding the property.

In the latest incident, the suspect was apprehended near the south portico entrance, where presidents often address the public, CNN said. The entrance is near the part of the White House where the president resides.

Authorities did not immediately identify the suspect but Martin Mulholland, a spokesman for the Secret Service, said he had no arrest record or history with the agency, which is charged with protecting the president, his family and other elected officials.

The backpack carried by the intruder was screened and searched as a precaution, and no hazardous material was found, according the statement. The Secret Service searched the north and south grounds but nothing of concern turned up.

Neither the Secret Service nor the White House responded immediately to a request for further details.

SECURITY SHAKEUP

The most serious of the recent security incidents at the White House occurred in September 2014, when an Army veteran carrying a knife climbed the fence and pushed his way inside the building before he was stopped.

Another man wearing an American flag jumped the fence in November 2015. In April 2016, an intruder threw a backpack over the outer fence and then scaled it before getting arrested.

The Secret Service and National Park Service have been working on a new fence design and other upgrades.

Joseph Clancy, her replacement, said in February that he planned to step down in March, allowing Trump to name his own security chief.

The service’s credibility was also damaged in 2012 when it was revealed that members had hired prostitutes while in Colombia in advance of a trip by then-President Barack Obama.

(Additional reporting by Joseph Ax in New York and Roberta Rampton in Washington; Writing by Frank McGurty; Editing by Franklin Paul)

Trump’s revised travel ban dealt first court setback

Immigration activists, including members of the DC Justice for Muslims Coalition, rally against the Trump administration's new ban against travelers from six Muslim-majority nations, outside of the U.S. Customs and Border Protection headquarters in Washington, U.S., March 7, 2017. REUTERS/Eric Thayer

By Steve Gorman

(Reuters) – A federal judge in Wisconsin dealt the first legal blow to President Donald Trump’s revised travel ban on Friday, barring enforcement of the policy to deny U.S. entry to the wife and child of a Syrian refugee already granted asylum in the United States.

The temporary restraining order, granted by U.S. District Judge William Conley in Madison, applies only to the family of the Syrian refugee, who brought the case anonymously to protect the identities of his wife and daughter, still living in the war-torn Syrian city of Aleppo.

But it represents the first of several challenges brought against Trump’s newly amended executive order, issued on March 6 and due to go into effect on March 16, to draw a court ruling in opposition to its enforcement.

Conley, chief judge of the federal court in Wisconsin’s western district and an appointee of former President Barack Obama, concluded the plaintiff “has presented some likelihood of success on the merits” of his case and that his family faces “significant risk of irreparable harm” if forced to remain in Syria.

The plaintiff, a Sunni Muslim, fled Syria to the United States in 2014 to “escape near-certain death” at the hands of sectarian military forces fighting the Syrian government in Aleppo, according to his lawsuit.

He subsequently obtained asylum for his wife and their only surviving child, a daughter, and their application had cleared the security vetting process and was headed for final processing when it was halted by Trump’s original travel ban on Jan. 27.

That executive order sought to ban admission to the United States of citizens from seven Muslim-majority countries – Iran, Libya, Somalia, Sudan, Syria, Yemen and Iraq – for 120 days and to suspend entry of all refugees indefinitely.

The original travel ban, which caused widespread chaos and protests at airports when first implemented, was rescinded after the state of Washington won a nationwide federal court order blocking further enforcement of the policy.

The modified executive order reduced the number of excluded counties – removing Iraq from the list – and lifted the indefinite refugee travel ban for Syrians. But opponents from several states have gone to court seeking to halt its implementation as well.

“The court appreciates that there may be important differences between the original executive order, and the revised executive order,” Conley wrote in his decision. “As the order applies to the plaintiff here, however, the court finds his claims have at least some chance of prevailing for the reasons articulated by other courts.”

In a related development on Friday, the federal judge in Seattle who imposed a nationwide injunction on enforcement of the original travel ban refused a request to apply that order to the revised policy, saying that lawyers from states opposed to the measure needed to file more extensive court papers.

(Reporting and writing by Steve Gorman in Los Angeles; Additional reporting by Mica Rosenberg in New York and Sharon Bernstein in Sacramento, California; Editing by Sandra Maler and Mary Milliken)