The Jim Bakker Show

U.S. retail sales beat expectations in January

WASHINGTON, Feb 15 (Reuters) – U.S. retail sales rose more than expected in January as households bought electronics and a range of other goods, pointing to sustained domestic demand that should bolster economic growth in the first quarter.

The Commerce Department said on Wednesday retail sales increased 0.4 percent last month. December’s retail sales were revised up to show a 1.0 percent rise instead of the previously reported 0.6 percent advance.

Last month’s fairly upbeat sales came despite motor vehicle purchases recording their biggest drop in 10 months.

Compared to January last year retail sales were up 5.6 percent.

Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.4 percent after an upwardly revised 0.4 percent gain in December.

These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Economists polled by Reuters had forecast retail sales ticking up 0.1 percent and core sales gaining 0.3 percent last month.

January’s fairly solid retail sales supported views that economic growth will accelerate in the first quarter.

The economy grew at a 1.9 percent annualized rate in the fourth quarter.

Consumer spending is being supported by a tightening labor market, which is gradually boosting wage growth.

That in turn is underpinning economic growth, paving the way for at least two interest rate increases from the Federal Reserve this year.

Fed Chair Janet Yellen told lawmakers on Tuesday that “waiting too long to remove accommodation would be unwise.”

The U.S. central bank has forecast three rate increases this year.

The Fed hiked its overnight interest rate last December by 25 basis points to a range of 0.50 percent to 0.75 percent.

Last month, sales at electronics and appliances stores jumped 1.6 percent, the biggest rise since June 2015, after falling 1.1 percent in December.

Receipts at building material stores increased 0.3 percent.

Sales at clothing stores jumped 1.0 percent, the largest rise in nearly a year.

Department store sales climbed 1.2 percent, the biggest increase since December 2015.

Department store sales have been undercut by online retailers, led by Amazon.com <AMZN.O>.

That has led to some retailers, including Macy’s <M.N>, Sears <SHLD.O> and Abercrombie & Fitch <ANF.N> announcing shop closures.

Sales at online retailers were unchanged last month after soaring 1.9 percent in December.

Receipts at restaurants and bars rose 1.4 percent, while sales at sporting goods and hobby stores shot up 1.8 percent.

Receipts at auto dealerships, however, fell 1.4 percent after vaulting 3.2 percent in December.

Last month’s drop was the biggest since March 2016.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters

Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))

Consumer prices post largest gain in nearly four years

WASHINGTON, Feb 15 (Reuters) – U.S. consumer prices recorded their biggest increase in nearly four years in January as households paid more for gasoline and other goods, suggesting inflation pressures could be picking up.

The Labor Department said on Wednesday its Consumer Price Index jumped 0.6 percent last month after gaining 0.3 percent in December. January’s increase in the CPI was the largest since February 2013.

In the 12 months through January, the CPI increased 2.5 percent, the biggest year-on-year gain since March 2012.

The CPI rose 2.1 percent in the year to December.

Economists polled by Reuters had forecast the CPI rising 0.3 percent last month and advancing 2.4 percent from a year ago.

Inflation is trending higher as prices for energy goods and other commodities rebound as global demand picks up.

The so-called core CPI, which strips out food and energy costs, rose 0.3 percent last month after increasing 0.2 percent in December. That lifted the year-on-year core CPI increase to 2.3 percent in January from December’s 2.2 percent increase.

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

Gradually firming inflation and a tightening labor market could allow the Fed to raise interest rates at least twice this year.

Fed Chair Janet Yellen told lawmakers on Tuesday that “waiting too long to remove accommodation would be unwise.”

The U.S. central bank has forecast three rate increases this year. The Fed hiked its overnight interest rate last December by 25 basis points to a range of 0.50 percent to 0.75 percent.

Last month, gasoline prices surged 7.8 percent, accounting for nearly half of the rise in the CPI. That followed a 2.4 percent increase in December.

Food prices edged up 0.1 percent after being unchanged for six straight months.

The cost of food consumed at home was unchanged after dropping for eight consecutive months.

Within the core CPI basket, rents increased 0.3 percent last month after a similar gain in December.

Owners’ equivalent rent of primary residence gained 0.2 percent in January after increasing 0.3 percent the prior month.

The cost of medical care rose 0.2 percent, with the prices for hospital services and prescription medicine both increasing 0.3 percent. Motor vehicle prices shot up 0.9 percent, the largest rise since November 2009.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters

Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))

Trump to welcome Netanyahu as Palestinians fear U.S. shift

By Luke Baker

WASHINGTON (Reuters) – President Donald Trump prepared to host Israeli Prime Minister Benjamin Netanyahu on Wednesday for talks that could shape the contours of future Middle East policy, as Palestinians warned the White House not to abandon their goal of an independent state.

For decades, the idea of creating a Palestine living peacefully alongside Israel has been a bedrock U.S. position, though the last negotiations broke down in 2014.

But in a potential shift, a senior White House official said on Tuesday that peace did not necessarily have to entail Palestinian statehood, and Trump would not try to “dictate” a solution.

As Trump and Netanyahu prepared to meet, a senior Palestinian official disclosed that on Tuesday, CIA director Mike Pompeo held talks with Palestinian President Mahmoud Abbas in Ramallah, the seat of the Palestinian government in the occupied West Bank.

“(It was) the first official meeting with a high-profile member of the American administration since Trump took office,” said the official, who spoke on condition of anonymity and declined to disclose details of the discussion.

Netanyahu committed, with conditions, to the two-state goal in a speech in 2009 and has broadly reiterated the aim since. But he has also spoken of a “state minus” option, suggesting he could offer the Palestinians deep-seated autonomy and the trappings of statehood without full sovereignty.

Palestinians reacted with alarm to the possibility that Washington might ditch its support for an independent Palestinian nation.

“If the Trump Administration rejects this policy it would be destroying the chances for peace and undermining American interests, standing and credibility abroad,” Hanan Ashrawi, a senior member of the Palestine Liberation Organization, said in response to the U.S. official’s remarks.

“Accommodating the most extreme and irresponsible elements in Israel and in the White House is no way to make responsible foreign policy,” she said in a statement.

Husam Zomlot, strategic adviser to Abbas, said the Palestinians had not received any official indication of a change in the U.S. stance.

“NO GAPS”

For Netanyahu, the talks with Trump will be an opportunity to reset ties after a frequently combative relationship with Democrat Barack Obama.

The prime minister, under investigation at home over allegations of abuse of office, spent much of Tuesday huddled with advisers in Washington preparing for the talks. Officials said they wanted no gaps to emerge between U.S. and Israeli thinking during the scheduled two-hour Oval Office meeting.

Trump, who has been in office less than four weeks and has already been immersed in problems including the forced resignation of his national security adviser, brings with him an unpredictability that Netanyahu’s staff hope will not impinge on the discussions.

During last year’s election campaign, Republican candidate Trump was relentlessly pro-Israel in his rhetoric, promising to move the U.S. embassy from Tel Aviv to Jerusalem, backing David Friedman, an ardent supporter of Jewish settlements, as his Israeli envoy and saying that he would not put pressure on Israel to negotiate with the Palestinians.

That tune, which was music to Netanyahu’s ears and to the increasingly restive right-wing within his coalition, has since changed, making Wednesday’s talks critical for clarity.

Trump appears to have put the embassy move on the backburner, at least for now, after warnings about the potential for regional unrest, including from Jordan’s King Abdullah.

And rather than giving Israel free rein on settlements, the White House has said building new ones or expanding existing ones beyond their current borders would not be helpful to peace.

That would appear to leave Israel room to build within existing settlements without drawing U.S. condemnation, in what is the sort of gray area the talks are expected to touch on.

For the Palestinians, and much of the rest of the world, settlements built on occupied land are illegal under international law. Israel disputes that, but faces increasing criticism over the policy from allies, especially after Netanyahu’s announcement in the past three weeks of plans to build 6,000 new settler homes in the West Bank and East Jerusalem.

(Additional reporting by Matt Spetalnick and Steve Holland in Washington and Maayan Lubell and Jeffrey Heller in Jerusalem; Editing by Mark Trevelyan)

China warns U.S. against fresh naval patrols in South China Sea

China's army in front of South China Sea

BEIJING (Reuters) – China’s Foreign Ministry on Wednesday warned Washington against challenging its sovereignty, responding to reports the United States was planning fresh naval patrols in the disputed South China Sea.

On Sunday, the Navy Times reported that U.S. Navy and Pacific Command leaders were considering freedom of navigation patrols in the busy waterway by the San Diego-based Carl Vinson carrier strike group, citing unnamed defense officials.

Chinese Foreign Ministry spokesman Geng Shuang said tension in the South China Sea had stabilized due to the hard work between China and Southeast Asia countries, and urged foreign nations including the U.S. to respect this.

“We urge the U.S. not to take any actions that challenge China’s sovereignty and security,” Geng told a regular news briefing on Wednesday.

The United States last conducted a freedom of navigation operation in the area in October, when it sailed the guided-missile destroyer USS Decatur near the Paracel Islands and within waters claimed by China.

Dave Bennett, a spokesman for Carrier Strike Group One, said it did not discuss future operations of its units.

“The Carl Vinson Strike Group is on a regularly scheduled Western Pacific deployment as part of the U.S. Pacific Fleet-led initiative to extend the command and control functions of the U.S. 3rd Fleet,” he said.

“U.S. Navy aircraft carrier strike groups have patrolled the Indo-Asia-Pacific regularly and routinely for more than 70 years,” he said.

China lays claim to almost all of the resource-rich South China Sea, through which about $5 trillion worth of trade passes each year.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also claim parts of the waters that command strategic sea lanes and have rich fishing grounds, along with oil and gas deposits.

The United States has criticized Beijing’s construction of man-made islands and build-up of military facilities in the sea, and expressed concern they could be used to restrict free movement.

(Reporting by Philip Wen in Beijing; Additional reporting by Matthew Tostevin in Bangkok; Editing by Ben Blanchard and Clarence Fernandez)

U.S. believes Russia deployed new missile in treaty violation: NYT

Russian military helicopters fly in formation

WASHINGTON (Reuters) – Russia has deployed a new cruise missile despite complaints by U.S. officials that it violates an arms control treaty banning ground-based U.S. and Russian intermediate-range missiles, the New York Times reported on Tuesday, citing unidentified officials.

The newspaper said Russia had secretly deployed the ground-launched SSC-8 cruise missile that Moscow has been developing and testing for several years, despite U.S. complaints that it violated sections of the 1987 Intermediate-range Nuclear Forces treaty.

The Russian Defense Ministry did not immediately respond to requests for comment on the New York Times story.

The U.S. State Department concluded in a July 2014 arms control report that “the Russian Federation is in violation of its obligations under the INF Treaty not to possess, produce, or flight-test a ground-launched cruise missile (GLCM) with a range capability of 500 km to 5,500 km (310 miles to 3,420 miles), or to possess or produce launchers of such missiles.”

Russia accused Washington of conducting “megaphone diplomacy” after the accusation was repeated by the State Department in 2015. Moscow also denied it had violated the INF treaty, which helped end the Cold War between the two countries.

The New York Times said the previous U.S. administration of President Barack Obama had attempted to persuade Moscow to correct the violation while the missile was still in the testing phase.

Instead, Russia has moved ahead with the SSC-8 missile, deploying it as an operational system, the report said.

Russia now has two battalions of the cruise missile, the newspaper quoted administration officials as saying. One is located at Russia’s missile test site at Kapustin Yar in the country’s southeast.

The other cruise missile battalion has been located at an operational base elsewhere in Russia, the Times quoted one unidentified official as saying.

(Reporting by David Alexander; Editing by Susan Heavey and Grant McCool)

Over 680 arrested in U.S. immigration raids; rights groups alarmed

US Immigration officers detaining illegal immigrants

By Julia Edwards Ainsley and Kristina Cooke

WASHINGTON (Reuters) – U.S. immigration officers last week arrested more than 680 people in the country illegally, the homeland security chief said on Monday, in a broad enforcement action that alarmed immigrant rights groups.

U.S. Homeland Security Secretary John Kelly said the operations, conducted in at least a dozen states, were routine and consistent with regular operations carried out by U.S. Immigration and Customs Enforcement, or ICE.

Immigrant rights advocates said the operations, which they describe as raids, were not business as usual, and were more sweeping than operations conducted during the administration of former Democratic President Barack Obama.

Kelly said in a statement that 75 percent of the immigrants arrested have criminal records, ranging from homicide to driving under the influence of alcohol.

He said the operation also targeted people who have violated immigration laws.

Some had ignored final orders of deportation, according to ICE, the agency responsible for immigrant arrests and deportations.

Obama was criticized for being the “deporter in chief” after he deported over 400,000 people in 2012, more than any president in a single year.

In 2014, Obama’s homeland security chief issued a memo directing agents to focus on deporting a narrow slice of immigrants, namely those who had recently entered the country or committed serious felonies. Immigrants who were arrested for driving under the influence of alcohol, for example, were treated as lower priorities for deportation.

Republican President Donald Trump promised to deport 2 million to 3 million migrants with criminal records on taking office.

At a news conference with Canadian Prime Minister Justin Trudeau on Monday, Trump said his administration had “really done a great job” in its recent arrests of immigrants.

“We’re actually taking people that are criminals, very, very, hardened criminals in some cases with a tremendous track record of abuse and problems,” Trump said.

ICE said in a statement on Monday that the operations targeted immigrants in the Midwest, Los Angeles, New York, North Carolina, South Carolina, Georgia and San Antonio.

The ICE statistics revealed regional differences in the profiles of the immigrants arrested. Of the 41 people arrested in New York City and surrounding areas, 93 percent had criminal convictions, while 45 percent of the 51 people arrested in the San Antonio, Texas area did.

Among the 190 people arrested in Georgia, North Carolina and South Carolina, were 17 people who had no criminal convictions or a prior order to leave the country, according to ICE.

In a Jan. 25 executive order, Trump broadened an Obama-era priority enforcement system for immigrants subject to removal from the United States.

“Now it seems like anyone could be arrested,” said Shiu-Ming Cheer, senior staff attorney at the National Immigration Law Center. “The level of fear and anxiety is much higher than I’ve ever seen it.”

(Reporting by Julia Edwards Ainsley and Kristina Cooke; Additional reporting by Emily Stephenson; Editing by Peter Cooney and Lisa Shumaker)

Sanctioned for drugs, Venezuela vice-president slams U.S. ‘aggression’

By Andrew Cawthorne and Alexandra Ulmer

CARACAS (Reuters) – Venezuela’s powerful Vice President Tareck El Aissami on Tuesday called his blacklisting by the United States on drug charges an “imperialist aggression” in the first bilateral flare-up under the administration of U.S. President Donald Trump.

“We shall not be distracted by these miserable provocations,” he added in a series of tweets. “Truth is invincible and we will see this vile aggression dispelled.”

The U.S. Department of Treasury on Monday sanctioned El Aissami and Samark Lopez, whom it identified as his associate, on accusations of masterminding an international network shipping drugs to Mexico and the United States.

Lopez also said the listings appeared politically motivated.

“Mr. Lopez is not a government official and has not engaged in drug trafficking,” he said in a statement on his website describing himself as a “legitimate businessman.”

President Nicolas Maduro’s government has frequently cast U.S. and opposition accusations of drug-trafficking, corruption and human rights abuses as a false pretext to justify meddling in Venezuela and a push to topple him.

Maduro, 54, narrowly won election in 2013 to replace the late Hugo Chavez, but his popularity has plummeted amid an economic crisis in the nation of 30 million people.

Though he frequently lashed out at former U.S. leader Barack Obama, the Venezuelan president has so far refrained from criticizing Trump.

The sanction on El Aissami will dent Maduro’s hopes Trump might avoid confrontation with Venezuela but could also help him by providing a nationalist card to play, said Tulane University academic and Venezuela expert David Smilde.

“This is a tremendous gift to Maduro as it ensures El Aissami’s loyalty. It essentially increases El Aissami’s exit costs and gives him a personal stake in the continuation of ‘Chavismo’,” he said.

“To be clear, El Aissami and others should be held responsible for their actions. However it should be understood this process has pernicious unintended consequences. I think we are effectively witnessing the creation of a rogue state.”

“CRIMINAL” STATE?

El Aissami, 42, whom local media report is of Syrian and Lebanese extraction, grew up poor in the Andean state of Merida and went on to study law and criminology, according to the ruling Socialist Party. He had been both a lawmaker and a state governor before being named vice president last month.

Venezuelan opposition groups have long accused El Aissami of repressing dissent, participating in drug trafficking rings, and supporting Middle Eastern groups such as Hezbollah.

The head of Venezuela’s Democratic Unity opposition coalition, Jesus Torrealba, said on Tuesday that the El Aissami case demonstrated the rotten and “criminal” nature of the state.

Another opposition leader, Henry Ramos, scoffed that Venezuela would no doubt claim drugs had been planted on officials “just like they plant evidence on Venezuelan opponents to make them rot in the regime’s jails.”

Venezuela is holding more than 100 activists in prison, according to local rights groups. The government denies the existence of political prisoners, saying all politicians in jail are there on legitimate charges.

A senior U.S. official said on Monday that El Aissami controlled drug routes by air and sea. The Treasury Department said he oversaw or partially owned narcotics shipments of more than 1,000 kilograms (2,200 pounds)from Venezuela on multiple occasions.

Another U.S. administration official estimated the value of property in Miami linked to El Aissami but now blocked was worth tens of millions of dollars.

The move was a departure from the so-called “soft landing” approach taken by Obama’s White House. At times it had clashed with efforts by the U.S. Justice Department and Drug Enforcement Administration, which worked with informants in Venezuela to nab influential officials for money laundering and drug trafficking.

Since 2015, the Obama administration had sought to use behind-the-scenes diplomacy to ease acrimony with Caracas and the fallout of a string of U.S. drug indictments against Venezuelan officials, such as Interior Minister Nestor Reverol.

“When the right wing attacks us, it shows we are advancing. Nothing and nobody will stop our victorious march to peace,” Reverol tweeted in defense of El Aissami.

(Additional reporting by Diego Ore in Caracas, Lesley Wroughton in Washington; Writing by Andrew Cawthorne; Editing by W Simon; Editing by Lisa Von Ahn)

Trump national security aide Flynn resigns over Russian contacts

By Steve Holland and John Walcott

WASHINGTON (Reuters) – President Donald Trump’s national security adviser, Michael Flynn, resigned late on Monday after revelations that he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office and misled Vice President Mike Pence about the conversations.

Flynn’s resignation came hours after it was reported that the Justice Department had warned the White House weeks ago that Flynn could be vulnerable to blackmail for contacts with Russian ambassador Sergey Kislyak before Trump took power on Jan. 20.

Flynn’s departure was a sobering development in Trump’s young presidency, a 24-day period during which his White House has been repeatedly distracted by miscues and internal dramas.

The departure could slow Trump’s bid to warm up relations with Russian President Vladimir Putin.

Flynn submitted his resignation hours after Trump, through a spokesman, pointedly declined to publicly back Flynn, saying he was reviewing the situation and talking to Pence.

Flynn had promised Pence he had not discussed U.S. sanctions with the Russians, but transcripts of intercepted communications, described by U.S. officials, showed that the subject had come up in conversations between him and the Russian ambassador.

Such contacts could potentially be in violation of a law banning private citizens from engaging in foreign policy, known as the Logan Act.

Pence had defended Flynn in television interviews and was described by administration officials as upset about being misled.

“Unfortunately, because of the fast pace of events, I inadvertently briefed the vice president-elect and others with incomplete information regarding my phone calls with the Russian ambassador. I have sincerely apologized to the president and the vice president, and they have accepted my apology,” Flynn said in his resignation letter.

Retired General Keith Kellogg, who has been chief of staff of the White House National Security Council, was named the acting national security adviser while Trump determines who should fill the position.

Kellogg, retired General David Petraeus, a former CIA director, and Robert Harward, a former deputy commander of U.S. Central Command, are under consideration for the position, a White House official said. Harward was described by officials as the leading candidate.

A U.S. official confirmed a Washington Post report that Sally Yates, the then-acting U.S. attorney general, told the White House late last month that she believed Flynn had misled them about the nature of his communications with the Russian ambassador.

She said Flynn might have put himself in a compromising position, possibly leaving himself vulnerable to blackmail, the official said. Yates was later fired for opposing Trump’s temporary entry ban for people from seven mostly Muslim nations.

CHANGE LESS LIKELY?

A U.S. official, describing the intercepted communications, said Flynn did not make any promises about lifting the sanctions.

But he did indicate that sanctions imposed by President Barack Obama on Russia for its Ukraine incursion “would not necessarily carry over to an administration seeking to improve relations between the U.S. and Russia,” the official said.

Flynn, a retired U.S. Army lieutenant general, was an early supporter of Trump and shares his interest in shaking up the establishment in Washington. He frequently raised eyebrows among Washington’s foreign policy establishment for trying to persuade Trump to warm up U.S. relations with Russia.

A U.S. official said Flynn’s departure, coupled with Russia’s aggression in Ukraine and Syria and Republican congressional opposition to removing sanctions on Russia, removes Trump’s most ardent advocate of taking a softer line toward Putin.

Flynn’s leaving “may make a significant course change less likely, at least any time soon,” the official said.

Another official said Flynn’s departure may strengthen the hands of some cabinet secretaries, including Defense Secretary Jim Mattis and Secretary of State Rex Tillerson.

However, the second official said, Flynn’s exit could also reinforce the power of presidential aides Steve Bannon and Stephen Miller, whom he described as already having the president’s ear.

Congressional Democrats expressed alarm at the developments surrounding Flynn and called for a classified briefing by administration officials to explain what had happened.

“We are communicating this request to the Department of Justice and FBI this evening,” said Democratic representatives John Conyers of Michigan and Elijah Cummings of Maryland.

U.S. Representative Adam Schiff of California, ranking Democrat on the House Permanent Select Committee on Intelligence, said Flynn’s departure does not end the questions over his contacts with the Russians.

“The Trump administration has yet to be forthcoming about who was aware of Flynn’s conversations with the ambassador and whether he was acting on the instructions of the president or any other officials, or with their knowledge,” Schiff said.

The committee’s chairman, Republican Devin Nunes, thanked Flynn for his service.

“Washington D.C. can be a rough town for honorable people, and Flynn — who has always been a soldier, not a politician —deserves America’s gratitude and respect,” he said.

(Additional reporting by Emily Stephenson; Editing by Peter Cooney, Robert Birsel)

Israeli PM seeks ‘no gaps’ with Trump ahead of White House talks

Israeli Prime Minister Benjamin Netanyahu

By Luke Baker

WASHINGTON (Reuters) – Prime Minister Benjamin Netanyahu, preparing for his first meeting with President Donald Trump at the White House, will work with advisers on Tuesday to align Israeli and U.S. thinking on the Middle East and ensure “no gaps” remain.

Staff have cleared most of Tuesday for discussions with Israel’s ambassador to the United States, Ron Dermer, and other senior advisers ahead of Wednesday’s Oval Office meeting. The only event of the day is an evening meeting with U.S. Secretary of State Rex Tillerson.

“There isn’t going to be any daylight, no gaps,” one adviser said as the prime minister left for Washington, the first time Netanyahu, the head of a right-wing coalition, has overlapped with a Republican in the White House in four terms in office.

Those reassurances came as Netanyahu took a cautious line on whether he would support a two-state solution to the Israeli-Palestinian conflict, the bedrock of U.S. diplomacy for two decades, when he sits down with Trump.

During the presidential campaign, Trump was often unabashedly pro-Israel, promising to move the U.S. embassy from Tel Aviv to Jerusalem, backing David Friedman, a supporter of settlements, as his envoy to Israel, and saying that he wouldn’t apply pressure for talks with the Palestinians.

But in the three-and-a-half weeks since taking office, positions have shifted. The embassy transfer has been put on hold as the fallout from such a move, not least the potential for unrest across the Middle East, has been explained, including by Jordan’s King Abdullah during an impromptu visit.

When it comes to settlements, Trump has laid out a more nuanced position, saying that while he does not see them as an obstacle to peace, building new ones or expanding existing ones beyond their current boundaries is “not good”.

And rather than no pressure for peace talks, Trump has said he wants to have a go at the “ultimate deal”. In an interview with newspaper Israel Hayom last week, he urged Israel to act “reasonably” in the Middle East peace process.

LEADERS IN LOCKSTEP

For Netanyahu, under investigation at home in two criminal cases involving allegations of abuse of office, ensuring he and Trump are in lockstep is critical to putting the friction of the Obama administration behind him and laying the ground for a more fruitful relationship with the United States.

At a time when the Middle East is in turmoil and Palestinian politics is fractured by long-standing divisions between the Western-backed Fatah party and the Islamist group Hamas, Israeli officials argue that the time is not ripe for peace.

But while Netanyahu has announced plans for 6,000 more settlement homes, he is also uneasy about pressure from the far-right in his coalition for more dramatic steps, such as the annexation of parts of the West Bank, which the Palestinians want for their own state together with Gaza and East Jerusalem, or the rejection of a Palestinian state altogether.

Netanyahu’s task during the scheduled two-hour meeting with Trump will be to find common ground on both the settlements issue and the prospects for a two-state solution to the conflict: Israel and a Palestine side by side and at peace.

The prime minister committed to the two-state goal in 2009 and has reiterated the position since. But on Monday, a senior minister in his cabinet said no ministers, foremost Netanyahu, truly believed in the emergence of a Palestinian state.

Officials with Netanyahu declined to comment on the remark. But Netanyahu has spoken of a “state minus”, something short of full sovereignty for the Palestinians. It was unclear if the contours of that idea would be discussed with Trump.

As well as Palestinian issues, the two leaders will discuss regional stability and the threat from Iran, with both intent on re-examining and strengthening the nuclear deal with Tehran.

“The alliance between Israel and America has always been extremely strong and it’s about to get even stronger,” Netanyahu said as he prepared to leave Israel on Monday.

“Donald Trump and I see eye-to-eye on the dangers emanating from the region but also on the opportunities. We’ll talk about both as well as upgrading the relations between Israel and the United States in many, many fields.”

Aside from Trump and Tillerson, Netanyahu will meet Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, House Speaker Paul Ryan and Vice President Mike Pence during the Feb. 13-16 visit.

(Writing by Luke Baker; Editing by Mary Milliken)

North Korea says missile launch ‘self-defense’, U.S. demands action

A test-fire of strategic submarine-launched ballistic missile is seen in this undated photo released by North Korea's Korean Central News Agency

By Stephanie Nebehay

GENEVA (Reuters) – North Korea said on Tuesday its missile launches were “self-defense measures”, rejecting U.N. Security Council criticism of its weekend test, but the United States demanded international action against Pyongyang’s weapons programs.

North Korea’s ballistic missile firing on Sunday was its first direct challenge to the international community since U.S. President Donald Trump took office on Jan. 20.

The missile had a range of more than 2,000 kms (1,240 miles), according to South Korea’s intelligence agency. It reached an altitude of about 550 km and flew about 500 km towards Japan before splashing into the sea east of the Korean peninsula.

The U.N. Security Council on Monday denounced the launch, urging members to “redouble efforts” to enforce sanctions against the reclusive state, but gave no indications of any action it might take.

Han Tae Song, the new Ambassador of the Democratic People’s Republic of Korea (DPRK) to the United Nations in Geneva, addressed the U.N.-backed Conference on Disarmament a day after taking up his post.

“The various test fires conducted by DPRK for building up self-defense capabilities are, with no exception, self-defense measures to protect national sovereignty and the safety of the people against direct threats by hostile forces,” Han told the 61-member-state forum.

“My delegation strongly rejects the latest statement of the U.N. Security Council and all U.N. resolutions against my country.”

U.S. Ambassador Robert Wood said: “All efforts to advance North Korea’s nuclear weapons and ballistic missile capabilities must cease,” adding: “If ever there were a situation that called for international collective action to ensure our mutual security, it is this.”

RESTRAINT

China, North Korea’s main ally, said the missile launch violated Security Council resolutions but called on all parties to “exercise restraint”. The way to defuse the situation was through dialogue, China said, calling for a return to talks.

U.S., Japanese and South Korean military officials held a teleconference on Monday in which they condemned the launch as “a clear violation” of multiple Security Council resolutions. The United States “reaffirmed its iron-clad security commitments” to South Korea and Japan, the Pentagon said.

Han said the divided Korean peninsula “remains the world’s biggest hotspot with a constant danger of war”. He condemned joint military exercises carried out annually by South Korea and the United States, as well as what he called “nuclear threats” and blackmail towards his country.

“It is the legitimate self-defense right of the sovereign state to possess strong deterrence to cope with such threat by hostile forces aimed at overthrowing the state and the socialist system,” he said.

South Korea’s Ambassador Choi Kyong-lim said the test showed “the unreasonable nature of the DPRK and their fanatical obsession with the pursuit of nuclear weapons and ballistic missiles”. Japan’s disarmament Ambassador Nobushige Takamizawa urged Pyongyang not to take further “provocative actions” that undermine peace and security in the region.

(Reporting by Stephanie Nebehay; Editing by Janet Lawrence)

Sign up for Jim Bakker Show