France says U.S. position on Middle East peace ‘confused and worrying’

French and German leaders worried about US's decision to back Israel in Two State Solution

By John Irish

BONN, Germany (Reuters) – France considers the U.S. position on the Israeli-Palestinian conflict “confused and worrying”, its foreign minister said on Thursday, reacting to U.S. President Trump’s dropping of the America’s commitment to a two-state solution.

Jean-Marc Ayrault met Secretary of State Rex Tillerson at a G20 meeting of foreign ministers in Bonn where, he said, he got some reassurance about Washington’s stance on Russia, but little on the Middle East.

“I found that there was a bit more precision (on foreign policy) even if I found that on the Israeli-Palestinian dossier it was very confused and worrying,” Ayrault said of his meeting.

“I wanted to remind him after the meeting between Donald Trump and (Israeli Prime Minister Benjamin) Netanyahu that in France’s view there are no other options other than the perspective of a two-state solution and that the other option which Mr Tillerson brought up was not realistic, fair or balanced.”

He did not specify what other option Tillerson had proposed. At a news conference in Washington with Netanyahu on Wednesday, Trump said: “I am looking at two-state, and one-state, and I like the one that both parties like.”

On Russia, Ayrault said he was happy to hear Tillerson say that sanctions on Russia over its actions in Ukraine would only be lifted if there was progress on the Minsk agreement to end fighting in east Ukraine.

“With Russia we have some serious points of disagreement and they have to be put on the table. It’s not by making friendly statements that problems will be resolved,” Ayrault told reporters. Tillerson remained “quite general” on the subject, he said.

Having just returned from Tehran, Ayrault said he was concerned by the new administration’s calls to review from scratch the agreement between major powers and Iran over its nuclear program.

“The deal must be completely respected by Iran, but it is out of the question to open up a new construction site for an agreement that was reached in difficulty. I sense that there was a difference of opinion or at least question marks,” he said.

He said the real debate on Iran now was not the nuclear deal, but its “interference” in the region, especially Syria and Iraq.

When asked whether Tillerson had clarified the U.S. position on Syrian peace negotiations and whether it still backed U.N. efforts, Ayrault said it appeared so, but that more talks would take place on Friday.

“Between the campaign speech, the tweets and what I heard from Tillerson, it’s the start of clarification,” Ayrault said, referring to the administration’s foreign policy.

(Editing by Louise Ireland)

U.N. wants to negotiate with U.S., Canada to resettle Rohingya refugees

Rohingya refugee children

By Krishna N. Das

COX’S BAZAR, Bangladesh (Reuters) – The United Nations’ refugee agency has asked Bangladesh to allow it to negotiate with the United States, Canada and some European countries to resettle around 1,000 Rohingya Muslims living in the South Asian nation, a senior official at the agency said.

Tens of thousands of Rohingya live in Bangladesh after fleeing Buddhist-majority Myanmar since the early 1990s, and their number has been swelled by an estimated 69,000 escaping an army crackdown in northern Rakhine State in recent months.

The United Nations High Commissioner for Refugees (UNHCR) would push for resettlement of those most in need, despite growing resistance in some developed countries, particularly the United States under President Donald Trump, UNHCR’s Bangladesh representative, Shinji Kubo, told Reuters on Thursday.

“UNHCR will continue to work with the authorities concerned, including in the United States,” Kubo said.

“Regardless of the change in government or government policies, I think UNHCR has a clear responsibility to pursue a protection-oriented resettlement program.”

Kubo said 1,000 Rohingya refugees had been identified as priorities for resettlement on medical grounds or because they have been separated from their family members living abroad.

“Resettlement will always be a challenging thing because only a small number of resettlement opportunities are being allocated by the international community at the moment,” Kubo said in an interview. “But it’s our job to try to consult with respective countries based on the protection and humanitarian needs of these individuals.”

H.T. Imam, a political adviser to Bangladesh Prime Minister Sheikh Hasina, said the resettlement proposal was “unrealistic” due to reluctance in the United States and Europe to take further Muslim refugees.

Reuters reported this month that officials at an Australian immigration center in Papua New Guinea were increasing pressure on asylum seekers to return to their home countries voluntarily, including offering large sums of money, amid fears a deal for the United States to take refugees had fallen through.

Canada, Australia and the United States were the top providers of asylum to Rohingya Muslims who came to Bangladesh from Myanmar before Dhaka stopped the program around 2012. A Bangladesh government official said it was feared the program would encourage more people from Myanmar to use it as a transit country to seek asylum in the West.

Canada has said it would welcome those fleeing persecution, terror and war, after Trump put a four-month hold on allowing refugees from seven Muslim-majority countries into the United States, an order since suspended by a U.S. district judge.

HOPING FOR ACCESS

The UNHCR supports around 34,000 refugees living in two government-registered camps in the Bangladesh coastal district of Cox’s Bazar, but a greater number of Rohingya live in makeshift settlements nearby, unregistered and officially ineligible to receive international aid.

Kubo said he had asked Bangladesh to give the UN access to all the refugees who have recently arrived, adding that UNHCR and other international agencies were also willing to provide aid to poor Bangladeshis living near the refugee settlements to counter local resentment at the influx.

Hasina adviser Imam said providing aid to the new refugees and its citizens was the responsibility of the government.

Myanmar said late on Wednesday that a security operation that began after nine police officers were killed in attacks on border security posts on Oct. 9 had now ended.

A report released by the UN Office of the High Commissioner for Human Rights on Feb. 3 gave accounts of mass killings and gang rapes by troops during the operation, which it said probably constituted crimes against humanity.

Two UN sources have separately told Reuters that more than 1,000 Rohingya may have been killed in the crackdown.

Northern Rakhine has been locked down since October, and Myanmar has not said when aid groups or reporters might be allowed in.

“We’re now hoping for immediate access to the affected areas in northern Rakhine as soon as possible with our resources, our protection expertise,” Kubo said. “That will also have a positive impact on what is happening in Bangladesh at the moment.”

(Reporting by Krishna N. Das in COX’S BAZAR; Additional reporting by Serajul Quadir in DHAKA; Editing by Alex Richardson)

U.S. weekly jobless claims rise less than expected

leaflet at job fair

WASHINGTON – The number of Americans filing for unemployment benefits increased less than expected last week, a sign that the labor market was continuing to tighten.

Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 239,000 for the week ended Feb. 11, the Labor Department said on Thursday.

Data for the prior week was unrevised.

Claims have been below 300,000, a threshold associated with a strong labor market, for 102 consecutive weeks.

That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is at or close to full employment, with the unemployment rate at 4.8 percent.

Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 245,000 in the latest week.

A Labor Department analyst said there were no special factors influencing last week’s data and no states had been estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, edged up 500 to 245,250 last week.

The claims report also showed the number of people still receiving benefits after an initial week of aid slipped 3,000 to 2.08 million in the week ended Feb. 4.

The four-week average of the so-called continuing claims rose 4,250 to 2.08 million.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

 

Turkey says U.S. not insisting on Kurdish role in Raqqa operation

Syrian Forces

ANKARA (Reuters) – Turkey’s defense minister said on Thursday the new U.S. administration has a more flexible approach to Syria and is not insisting on the Kurdish YPG militia being involved in the operation to drive Islamic State from its Raqqa stronghold.

U.S. support for the Syrian Democratic Forces, an alliance dominated by the YPG, has caused tensions with NATO ally Turkey, which views the Kurdish militia as an extension of militants fighting on its own soil.

“If we want the Raqqa operation to be successful, then it should be carried out with Arab forces in the region and not the YPG,” Turkish Defense Minister Fikri Isik told reporters in Brussels.

“The new U.S. administration has a different approach to the issue. They are not insisting anymore that the operation should definitely be carried out with the YPG. They haven’t yet made up their minds,” he said in comments broadcast live.

The SDF alliance, which includes Arab and other groups in Syria’s north as well as the YPG, has taken territory along the Syria-Turkey border as they push back Islamic State.

With air strikes and special ground forces from the U.S.-led coalition, the SDF is in the middle of a multi-phased operation to encircle Raqqa, Islamic State’s base of operations in Syria.

A key decision for the Trump administration will be whether to provide weapons to the YPG despite Turkish objections. The U.S. says weapons provided to the SDF are so far limited to its Arab elements.

“We are working with the U.S. on the withdrawal of the YPG from Manbij by the time the al-Bab operation is completed,” Isik said, referring to a town currently under SDF control.

Isik added that Turkey’s priority after al-Bab would be advancing towards Manbij and Raqqa. He also said U.S. chief of staff Joseph Dunford would visit Turkey on Friday.

(Reporting by Ece Toksabay and Tuvan Gumrukcu; Writing by Daren Butler; Editing by Nick Tattersall)

Trump’s defense chief sees no military collaboration with Russia

US Defense Secretary

By Phil Stewart and Robin Emmott

BRUSSELS (Reuters) – U.S. President Donald Trump’s defense secretary on Thursday said he did not see the conditions for military collaboration with Russia, in a blow to Moscow’s hopes for repairing ties with the United States following Trump’s election.

“We are not in a position right now to collaborate on a military level. But our political leaders will engage and try to find common ground,” Jim Mattis told reporters after talks at NATO headquarters in Brussels.

Asked whether he believed that Russia interfered in U.S. presidential elections, Mattis said: “Right now, I would just say there’s very little doubt that they have either interfered or they have attempted to interfere in a number of elections in the democracies.”

Mattis’ remarks came shortly after his Russian counterpart, Sergei Shoigu expressed readiness to resume cooperation with the Pentagon and the same day Russian President Vladimir Putin said it was in the interests of both nations to restore communications between their intelligence agencies.

“It’s in everyone’s interest to resume dialogue between the intelligence agencies of the United States and other members of NATO,” Putin said, addressing Russia’s Federal Security Service (FSB).

“It’s absolutely clear that in the area of counter-terrorism all relevant governments and international groups should work together.”

Mattis told a closed-door session of NATO on Wednesday that the alliance needed to be realistic about the chances of restoring a cooperative relationship with Moscow and ensure its diplomats could “negotiate from a position of strength”.

That prompted a terse reply from Russia’s Defense Minister Sergei Shoigu.

“Attempts to build a dialogue with Russia from a position of strength would be futile,” Shoigu was quoted as saying by news agency TASS.

Mattis shot back: “I have no need to respond to the Russian statement at all. NATO has always stood for military strength and protection of the democracies and the freedoms we intend to pass on to our children.”

The back-and-forth was the latest indication from the Trump administration that rebuilding U.S. ties with Moscow could be more difficult than Trump might have thought before his election.

U.S. intelligence agencies concluded that Russia hacked and leaked Democratic emails during the presidential campaign as part of efforts to tilt the vote in the Nov. 8 election in Trump’s favor.

Concerns over the extent of Russian interference have been magnified since Trump forced out national security adviser, Michael Flynn, on Monday.

Flynn resigned after disclosures he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office, and that he later misled Vice President Mike Pence about the conversations.

Congressional inquiries into alleged Russian interference in the U.S. elections are gaining momentum as Capitol Hill investigators press intelligence and law enforcement agencies for access to classified documents.

The FBI and several U.S. intelligence agencies are investigating Russian espionage operations in the United States.

They are also looking at contacts in Russia between Russian intelligence officers or others with ties to President Vladimir Putin’s government and people connected to Trump or his campaign.

(This story has been refiled to add Mattis’ first name in second paragraph.)

(Reporting by Phil Stewart; editing by John Stonestreet)

U.S. housing starts drop; permits rise to one-year high

house under construction

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. homebuilding fell in January as the construction of multi-family housing projects dropped, but upward revisions to the prior month’s data and a jump in permits to a one-year high suggested the housing recovery remained on track.

Other data on Thursday showed only a modest increase in the number of Americans filing new applications for unemployment benefits last week, a sign that the labor market was continuing to tighten.

Housing starts fell 2.6 percent to a seasonally adjusted annual rate of 1.25 million units last month, the Commerce Department said. December’s starts were revised up to a rate of 1.28 million units from the previously reported 1.23 million pace.

Homebuilding was up 10.5 percent compared to January 2016. Permits for future construction jumped 4.6 percent in January to a rate of 1.29 million units, the highest level since November 2015. Building permits in the South, where most homebuilding occurs, hit their highest level since July 2007.

With overall permits now outpacing starts, homebuilding is likely to rebound in the coming months. Economists polled by Reuters had forecast groundbreaking activity slipping to a rate of 1.22 million units last month and building permits rising to a 1.23 million pace.

Prices of U.S. Treasuries slid and U.S. stock index futures trimmed losses after the data. The dollar <.DXY> pared losses against a basket of currencies.

LABOR MARKET TIGHTENING

The housing recovery is being driven by a strong labor market, which is boosting employment opportunities for young people and supporting household formation.

In a separate report, the Labor Department said initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 239,000 for the week ended Feb. 11.

Claims have been below 300,000, a threshold associated with a strong job market, for 102 consecutive weeks. That is the longest stretch since 1970, when the labor market was much smaller. The labor market is at or close to full employment, with the unemployment rate at 4.8 percent.

Economists had forecast first-time applications for jobless benefits rising to 245,000 in the latest week. While the labor market is expected to continue to underpin the housing market, higher mortgage rates could slow demand for housing.

A survey on Wednesday showed homebuilders’ confidence slipped in February but remained at levels consistent with a growing housing market. Builders anticipated a slowdown in buyer traffic and continued to grapple with shortages of developed lots and skilled labor.

January’s starts were above the fourth-quarter average, suggesting housing will again contribute to gross domestic product in the first three months of this year.

Homebuilding last month surged 55.4 percent in the Northeast region of the country. It jumped 20.0 percent in the South to the highest level since August 2007. Starts fell 41.3 percent in the West, likely due to the impact of unusually wet weather.

Last month, single-family homebuilding, which accounts for the largest share of the residential housing market, climbed 1.9 percent to a pace of 823,000 units.

Starts for the volatile multi-family housing segment tumbled 10.2 percent to a rate of 423,000 units.

Single-family permits slipped 2.7 percent last month after increasing for five consecutive months. Single-family starts in the South rose to their highest level since August 2007.

Building permits for multi-family units soared 19.8 percent.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. healthcare costs to escalate over next decade: government agency

doctor holds hand of patient

WASHINGTON (Reuters) – The cost of medical care in the United States is expected to grow at a faster clip over the next decade and overall health spending growth will outpace that of the gross domestic product, a U.S. government health agency said on Wednesday.

A report by the U.S. Centers for Medicare and Medicaid Services (CMS) cited the aging of the enormous baby boom generation and overall economic inflation as prime contributors to the projected increase in healthcare spending.

Overall healthcare spending will comprise 19.9 percent of the economy in 2025, up from 17.8 percent in 2015, the report forecast. The pace of growth in U.S. spending on health is expected to pick up in 2017, increasing 5.4 percent over 2016. That compares with an estimated 4.8 percent spending uptick in 2016. Spending for 2016 was estimated at $3.4 trillion.

When the final numbers are in, the growth in prescription drug spending for 2016 is expected to have slowed to 5 percent from 9 percent in 2015. However, CMS has forecast growth of 6.4 percent per year between 2017 and 2025, in part because of spending on expensive newer specialty drugs, such as for cancer and multiple sclerosis.

The projections for 2016 to 2025 were made assuming that the Affordable Care Act (ACA), former President Barack Obama’s signature healthcare law widely known as Obamacare, would remain intact. It does not take into account likely changes to the law.

The Republican-led Congress and President Donald Trump have vowed to repeal and replace the ACA, but a viable replacement plan has yet to emerge.

Trump signed an executive order on his first day in office last month to freeze regulations and enable government agencies to take other steps to weaken Obamacare.

The ACA expanded Medicaid, the government health insurance program for the poor, in more than 30 states and set up private healthcare exchanges that enabled previously uninsured people to buy health insurance. After high enrollment between 2014 and 2015, Medicaid and private health insurance spending were expected to have slowed in 2016.

But spending on Medicare, the government health insurance program for the elderly, is expected to grow between 2017 and 2025 as a larger elderly population requires more medical services.

The overall insured rate of the population is expected to reach 91.5 percent in 2025, up from 90.9 percent in 2015, the report said.

(Reporting By Yasmeen Abutaleb; Editing by Tom Brown)

Protests call for U.S. immigrants to stay home from work, school

People protest against Trump's immigration policy

By Joseph Ax and Liza Feria

NEW YORK/WASHINGTON (Reuters) – Activists are calling on immigrants to protest President Donald Trump’s tough stance on immigration by staying home from work or school on Thursday, not shopping and not eating out, in an effort to highlight the vital role they play in U.S. society.

“A Day Without Immigrants,” which has been largely driven by word of mouth on social media, arose in response to Trump’s vows to crack down on illegal immigration and his executive order, since suspended by a federal judge, to temporarily block entry to people from seven Muslim-majority countries.

The action follows a series of federal raids last week in which more than 680 people illegally in the country were arrested, raising alarm among immigrant rights’ groups.

“Mr. President, without us and without our contribution this country is paralyzed,” read a poster promoting the protest that was widely shared online.

It is not clear how many people plan to participate in the walkout. With few plans for large-scale rallies, it may be hard to estimate how many ultimately do. But one group that expects to be affected, and is in some cases embracing the cause, is restaurant owners.

Celebrity chef Jose Andres, locked in a legal battle with Trump after backing out of a deal to open a restaurant at the businessman-turned-politician’s new hotel in Washington, said he was supporting the strikers on his staff.

“People that never missed one day of work are telling you they don’t want to work on Thursday,” the Spanish-born Andres said in an interview at his restaurant Oyamel, which will be closed on Thursday. “They want to say: ‘Here we are,’ by not showing up. The least I could do was to say: ‘OK, we stand by you.'”

Dozens of restaurants, which rely heavily on immigrant workers, and other businesses in cities such as Philadelphia, New York, Houston and Raleigh, North Carolina, have vowed to shut their doors on Thursday in solidarity with no-show workers.

In New York, the owners of the Blue Ribbon restaurant chain said they would close several eateries despite the economic impact.

“It’s really a show of support for our staff, and as a team and a family as a whole,” said co-owner Eric Bromberg.

More than a dozen restaurants in Washington were planning to close on Thursday, according to social media.

“You have millions of Latinos, millions of immigrants, that somehow feel under attack,” Andres said. “They feel like they’re being pushed aside. They want to be part of the American dream.”

(Reporting by Joseph Ax; Editing by Scott Malone and Peter Cooney)

Russia tells White House it will not return Crimea to Ukraine

Submarine in Crimea

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Wednesday it would not hand back Crimea to Ukraine or discuss the matter with foreign partners after the White House said U.S. President Donald Trump expected the annexed Black Sea peninsula to be returned.

Moscow says an overwhelming majority of Crimeans voted to become part of Russia in a 2014 referendum wanting protection from what the Kremlin cast as an illegal coup in Kiev.

Ukraine says the referendum was a sham held at gunpoint after Russian troops illegally annexed the peninsula, that Russia-friendly president Viktor Yanukovych was ousted by people power, and that Moscow should return Crimea.

“We don’t give back our own territory. Crimea is territory belonging to the Russian Federation,” Maria Zakharova, spokeswoman for the Russian Foreign Ministry, told a news briefing on Wednesday.

The 2014 annexation prompted the United States and the European Union to impose sanctions on Russia, plunging Western relations with the Kremlin to their worst level since the Cold War.

White House spokesman Sean Spicer said on Tuesday that Trump expected and wanted to get along with Russia, but was expecting Moscow to hand Crimea back.

Kremlin spokesman Dmitry Peskov, when asked about Spicer’s comments, said President Vladimir Putin had already explained why Crimeans had turned to Russia.

“The theme of returning Crimea will not be discussed … Russia does not discuss its territorial integrity with foreign partners,” Peskov told a conference call with reporters.

Trump had not raised the Crimean issue in a Jan. 28 phone call with Putin, Peskov noted, saying the Kremlin would try to make contacts with the Trump administration to try to improve ties which he said were in “a lamentable state.”

Vyacheslav Volodin, speaker of the State Duma, the lower house of parliament, told MPs any talk of Crimea’s status amounted to a challenge to Russia’s territorial integrity.

Volodin, a close Putin ally, told the Interfax news agency Trump had promised in his election campaign to work to improve relations with Russia.

“Let’s wait for some first-hand words from the U.S. president,” said Volodin. “When people get elected by voters it’s not merely for warm words and the ability to speak, but for concrete promises … that will be fulfilled.”

(Additional reporting by Maria Tsvetkova/ Alessandra Prentice; editing by John Stonestreet)

Russian jets in ‘unsafe’ encounters with destroyer: U.S. official

Navy ship

WASHINGTON (Reuters) – Multiple Russian military aircraft came close to a U.S. Navy destroyer in the Black Sea on Feb. 10, incidents considered “unsafe and unprofessional,” a U.S. official said on Tuesday.

The Russian Defense Ministry said no such incidents had occurred.

“There were no incidents of any kind on Feb. 10, related to flights by Russian military jets in the Black Sea near the U.S. Navy destroyer Porter,” Russian news agencies cited a spokesman for the Russian Defense Ministry, Major-General Igor Konashenkov, as saying.

But Captain Danny Hernandez, a spokesman for U.S. European Command, cited three separate incidents involving Russian aircraft and the USS Porter. One involved two Russian Su-24 jets, another a separate Su-24, and the third a larger IL-38.

“USS Porter queried all aircraft and received no response,” Hernandez said. “Such incidents are concerning because they can result in accident or miscalculation,” he added.

The incidents involving the Su-24 were considered to be unsafe and unprofessional by the commanding officer of the Porter because of their high speed and low altitude, while the IL-38 flew at an unusually low altitude, Hernandez said.

Another U.S. official, speaking on condition of anonymity, said the lone Su-24 came within 200 yards (meters) of the Porter at an altitude of 300 feet (90 meters).

In April 2016 two Russian warplanes flew simulated attack passes near a U.S. guided missile destroyer in the Baltic Sea so close that they created wake in the water.

(Reporting by Idrees Ali in Washington and Jack Stubbs in Moscow; Editing by James Dalgleish)