The Jim Bakker Show

U.S. warns on Russia’s new space weapons

The sun reflects off the water in this picture taken by German astronaut Alexander Gerst from the International Space Station and sent on his Twitter feed July 17, 2014. REUTERS/Alexander Gerst/NASA/Handout via Reuters

By Stephanie Nebehay

GENEVA (Reuters) – The United States voiced deep suspicion on Tuesday over Russia’s pursuit of new space weapons, including a mobile laser system to destroy satellites in space, and the launch of a new inspector satellite which was acting in an “abnormal” way.

Russia’s pursuit of counterspace capabilities was “disturbing”, Yleem D.S. Poblete, U.S. Assistant Secretary of State for Arms Control, Verification, and Compliance, told the U.N.’s Conference on Disarmament which is discussing a new treaty to prevent an arms race in outer space.

A Russian delegate at the conference dismissed Poblete’s remarks as unfounded and slanderous.

Russian Foreign Minister Sergei Lavrov, at the Geneva forum in February, said a priority was to prevent an arms race in outer space, in line with Russia’s joint draft treaty with China presented a decade ago.

But Russian President Vladimir Putin unveiled in March “six new major offensive weapons systems”, including the Peresvet military mobile laser system, Poblete said.

“To the United States this is yet further proof that the Russian actions do not match their words,” she said.

Referring to a “space apparatus inspector”, whose deployment was announced by the Russian defense ministry last October, Poblete said: “The only certainty we have is that this system has been ‘placed in orbit’.”

She said its behavior on-orbit was inconsistent with anything seen before, including other Russian inspection satellite activities, adding: “We are concerned with what appears to be very abnormal behavior by a declared ‘space apparatus inspector’.”

Russia’s pursuit of counterspace capabilities “is disturbing given the recent pattern of Russian malign behavior,” she said, and its proposed treaty would not prohibit such activity, nor the testing or stockpiling of anti-satellite weapons capabilities.

Alexander Deyneko, a senior Russian diplomat in Geneva, dismissed what he called “the same unfounded, slanderous accusations based on suspicions, on suppositions and so on”.

The United States had not proposed amendments to the Sino-Russian draft treaty, he said.

“We are seeing that the American side are raising their serious concerns about Russia, so you would think they ought to be the first to support the Russian initiative. They should be active in working to develop a treaty that would 100 percent satisfy the security interests of the American people,” he said.

“But they have not made this constructive contribution,” he said.

China’s disarmament ambassador Fu Cong called for substantive discussions on outer space, leading to negotiations.

“China has always stood for peaceful use of outer space and we are against weaponization of outer space, an arms race in outer space, or even more turning outer space into a battle field,” he said.

(Reporting by Stephanie Nebehay; Editing by Richard Balmforth)

More than 100 large wildfires in U.S. as new blazes erupt

Smoke rises over a hillside on fire in Fairfield, California, the U.S., August 10, 2018, in this still image taken from a video obtained from social media. Erika Bjork/Twitter/via REUTERS

(Reuters) – Six large new wildfires erupted in the United States, pushing the number of major active blazes nationwide to over 100, with more expected to break out sparked by lightning strikes on bone-dry terrain, authorities said on Saturday.

More than 30,000 personnel, including firefighters from across the United States and nearly 140 from Australia and New Zealand, were battling the blazes that have consumed more than 1.6 million acres (648,000 hectares), according to the National Interagency Coordination Center.

“We are expecting that there will be more fire-starts today,” Jeremy Grams, lead forecaster with the National Weather Service’s Storm Prediction Center in Oklahoma, said in an interview on Saturday.

FILE PHOTO: A still frame taken from a timelapse video sourced from social media dated August 6, 2018, shows the Holy Fire as seen from Rancho Santa Magarita, California, U.S. ARTHUR WHITING/via REUTERS

He said dry thunderstorms, which produce lightning but little rain, are expected for parts of the Rocky Mountain region, while the U.S. northwest has critical fire weather conditions that include strong winds and low relative humidity.

Firefighters were battling another day of extremely hot temperatures and strong winds on Saturday, the National Interagency Coordination Center said.

The fires have scorched states from Washington to New Mexico, with California among the hardest hit.

A mechanic helping to fight the Carr Fire near Redding in northern California was killed in a car crash on Thursday, the eighth person to die in that conflagration.

The 190,873-acre (77,243-hectare) Carr Fire has destroyed nearly 1,100 homes.

About 100 miles (160 km) southwest of the Carr Fire, about 3,500 firefighters are battling the Mendocino Complex Fire, which has burned 328,226 acres (132,828 hectares) as of Saturday and was the largest fire on record in California.

(Reporting by Jon Herskovitz in Austin, Texas; Editing by Daniel Wallis and Richard Borsuk)

Erdogan tells Turks to buy free-falling lira as Trump doubles metals tariffs

FILE PHOTO: A money changer counts Turkish lira banknotes at a currency exchange office in Istanbul, Turkey August 2, 2018. REUTERS/Murad Sezer/File Photo

By Behiye Selin Taner and Tuvan Gumrukcu

ISTANBUL/ANKARA (Reuters) – President Tayyip Erdogan told Turks on Friday to exchange their gold and dollars into lira, with the country’s currency in free fall after President Donald Trump turned the screws on Ankara by doubling tariffs on metals imports.

The lira has long been falling on worries about Erdogan’s influence over monetary policy and worsening relations with the United States. That turned into a rout on Friday, with the lira diving more than 18 percent at one point, the biggest one-day drop since Turkey’s 2001 financial crisis.

It has also lost more than 40 percent this year, hitting a new record low after Trump took steps to punish Turkey in a wide-ranging dispute.

Trump said he had authorized higher tariffs on imports from Turkey, imposing duties of 20 percent on aluminum and 50 percent on steel. The lira, he noted on Twitter, “slides rapidly downward against our very strong Dollar!”

“Our relations with Turkey are not good at this time!” he said in an early morning post.

Those duties are double the level that Trump imposed in March on steel and aluminum imports from a range of countries.

The White House said he had authorized the move under Section 232 of U.S. trade law, which allows for tariffs on national security grounds.

While Turkey and the United States are at odds over a host of issues, the most pressing disagreement has been over the detention of U.S. citizens in Turkey, notably Christian pastor Andrew Brunson who is on trial on terrorism charges. A delegation of Turkish officials held talks with counterparts in Washington this week but there was no breakthrough.

Waves from the crisis spread abroad, with investors selling off shares in European banks which have large exposure to the Turkish economy.

The lira sell-off has deepened concern particularly about whether over-indebted companies will be able to pay back loans taken out in euros and dollars after years of overseas borrowing to fund a construction boom under Erdogan.

Erdogan’s characteristic defiance in the face of the crisis has further unnerved investors. The president, who says a shadowy “interest rate lobby” and Western credit ratings agencies are attempting to bring down Turkey’s economy, appealed to Turks’ patriotism.

“If there is anyone who has dollars or gold under their pillows, they should go exchange it for lira at our banks. This is a national, domestic battle,” he told a crowd in the northeastern city of Bayburt. “This will be my people’s response to those who have waged an economic war against us.”

“The dollar cannot block our path. Don’t worry,” Erdogan assured the crowd.

“AMERICAN-MADE CRISIS”

Erdogan, elected in June to a new executive presidency, enjoys the support of many Turks even though food, rent, and fuel prices have all surged. “This crisis is created by America,” said Serap, a 23-year-old clerk at a clothes store in central Istanbul.

However, the Istanbul Chamber of Industry expressed its concern about the lira while some economists were less impressed by the government’s handling of the crisis.

“The basic reason the exchange rate has gone off the rails is that confidence in the management of the economy has disappeared both domestically and abroad,” said Seyfettin Gursel, a professor at Turkey’s Bahcesehir University.

“Confidence needs to be regained. It is obvious how it will be done: since the final decision-maker of all policies in the new regime is the president, the responsibility of regaining confidence is on his shoulders.”

Turkey’s sovereign dollar-denominated bonds tumbled with many issues trading at record lows. Hard currency debt issued by Turkish banks suffered similar falls.

Meanwhile, the cost of insuring exposure to Turkey’s sovereign debt through five-year credit defaults swaps has spiraled to the highest level since March 2009, topping levels seen for serial defaulter Greece, which has three bailouts in the last decade.

THE TWEET AND THE SWORD

New Finance Minister Berat Albayrak – Erdogan’s son-in-law – acknowledged that the central bank’s independence was critical for the economy, promising stronger budget discipline and a priority on structural reforms.

Presenting the government’s new economic model, he said the next steps of rebalancing would entail lowering the current account deficit and improving trust.

This did nothing to revive the currency. “The tweet is mightier than the Turkish sword,” Cristian Maggio, head of emerging markets strategy at TD Securities, said in a note to clients. “Albayrak’s plan was uninspiring at best.”

Erdogan, a self-described “enemy of interest rates”, wants cheap credit from banks to fuel growth, but investors fear the economy is overheating and could be set for a hard landing. His comments on interest rates — and his recent appointment of his son-in-law as finance minister — have heightened perceptions that the central bank is not independent.

The central bank raised interest rates to support the lira in an emergency move in May, but it did not tighten at its last meeting.

(Additional reporting by Karin Strohecker, Claire Milhench and Ritvik Carvalho, Lisa Lambert and Susan Heavey; Writing by Humeyra Pamuk and David Dolan; Editing by Dominic Evans, Catherine Evans and David Stamp)

Two police officers among four fatally shot in Canada: authorities

Emergency vehicles are seen at the Brookside Drive area in Fredericton, Canada August 10, 2018 in this picture obtained from social media. Kev Bourque/via REUTERS

By Anna Mehler Paperny

FREDERICTON, New Brunswick (Reuters) – Four people, including two police officers, were killed in a shooting in eastern Canada on Friday in the latest eruption of gun violence across the country that has led to calls for weapons bans in cities.

Police said a suspect was taken into custody just three weeks after a gunman walked down a busy Toronto street, killing two people and wounding 13 others before taking his own life.

Police in Fredericton, a city of about 56,000 that is the capital of the province of New Brunswick, said two of the dead were police officers but gave few details about the circumstances of the shooting and did not release names. They said the suspect was being treated for serious injuries.

Local media images showed emergency vehicles converging on a tree-lined residential street. Nearby facilities were closed and authorities imposed a lockdown for residents before issuing an all-clear message.

“It was scary,” said Marlene Weaver, who was in bed on Friday morning when she heard shots ring out in her neighborhood. “It takes you back to the shooting in Moncton.”

Three RCMP officers were killed and two more were wounded in 2014 in Moncton, New Brunswick, about 195 km (121 miles) from Fredericton, in one of the worst incidents of its kind in Canada.

Gun laws in Canada are stricter than in the United States but a proliferation of weapons has led to an increase in gun-related crimes in recent years.

Canadian Public Safety Minister Ralph Goodale said the Royal Canadian Mounted Police (RCMP) were assisting Fredericton authorities in the investigation.

New Brunswick had only three homicide shootings in 2016, according to Statistics Canada.

“Awful news coming out of Fredericton,” Canadian Prime Minister Justin Trudeau said on Twitter. “My heart goes out to everyone affected by this morning’s shooting. We’re following the situation closely.”

Jeff Magnussen, general manager of a golf course near the site of the shooting, said by phone he heard multiple gunshots before 8 a.m. local time.

“You hear a lot about gun violence in the United States,” he said, “but this morning when I heard those noises, what’s starting to sink in is that those noises were people losing their lives. To have it happen so close to us is shocking. Now we’re becoming the story that nobody wants to hear.”

In the wake of the Toronto bloodshed, the city council voted overwhelmingly to urge the federal government to ban the sale of handguns in the city. Gun laws are under federal jurisdiction.

“Why does anyone in this city need to have a gun at all?” Toronto Mayor John Tory said. Canada’s largest city has had 241 shooting incidents this year, resulting in 30 deaths, a 30 percent increase in fatalities.

On Thursday, Ontario pledged more money for police and to keep suspects behind bars while they await trial on gun crimes charges, as the Canadian province grapples with rising shootings involving domestically obtained weapons.

(Additional reporting by Danya Hajjaji and Allison Martell in Toronto and David Ljunggren in Ottawa; Writing by Bill Trott; Editing by Steve Orlofsky and Jeffrey Benkoe)

After disaster alert failures, U.S. moves toward national system

FILE PHOTO: A U.S. flag flies over a debris field of former houses following Hurricane Irma in Islamorada, Florida, U.S., September 15, 2017. REUTERS/Carlo Allegri/File Photo

By Dan Whitcomb

LOS ANGELES (Reuters) – In California last month, two young children and their great-grandmother died in a wildfire that family members say they never saw coming or heard an alert.

In January, thousands of people were panic-stricken in Hawaii by a false alarm that a ballistic missile was about to strike the islands.

These and other critical failures have prompted a review of disaster alerts in the United States, which largely operate at a local level, underlining the potential need for a nationwide system, as scientists warn changing weather may bring more hurricanes and wildfires.

“For all practical purposes we don’t really have a national warning system,” Dennis Mileti, professor emeritus at the University of Colorado at Boulder, told Reuters.

Mileti, a nationally recognized expert on disaster preparedness, is on a panel the Federal Emergency Management Agency (FEMA) convened this summer to improve the Integrated Public Alert and Warning System, or IPAWS, the platform established a decade ago for all U.S. emergency alerts.

Previewing its findings to Reuters, Mileti said the panel will propose to Congress to revamp national warning systems, and in cases such as ballistic missile alerts, take them out of the hands of local officials.

A half-century ago, before 24-hour cable news networks or the internet, the three main television broadcast stations which could be counted on to issue standard emergency messages to the entire U.S. population

Now, people in the path of natural disasters typically get alerts from a patchwork of state and local agencies, using different platforms and messaging systems, often manned by part-time employees, Mileti said.

For example, in the state of California, warnings are issued by counties that sometimes outsource the job to someone else.

“You don’t get too many good warnings in local communities where” untrained amateurs are in charge, Mileti said.

Human error is another key issue.

Last year, some residents of California’s Sonoma County failed to get timely notice of an approaching wildfire that killed 17 people after authorities, concerned about traffic becoming snarled along evacuation routes, decided not to notify everyone at once.

A community of 10,000 people not in imminent danger from the Carr Fire in Northern California, meanwhile, was evacuated by accident when “somebody hit the wrong button,” Shasta County Sheriff Tom Bosenko told the Sacramento Bee.

And in January, many Hawaiians and tourists fled their homes and hotels when an emergency bulletin – sent by mistake – blared out: “BALLISTIC MISSILE THREAT INBOUND TO HAWAII. SEEK IMMEDIATE SHELTER. THIS IS NOT A DRILL.”

A U.S. government report later blamed the false alarm on human error and inadequate safeguards.

‘RISING THREATS’

California Gov. Jerry Brown, after touring the fiery calamity near Redding on Saturday, called on the state legislature to enact “the best alert system we can get … given the rising threats on the changing of the weather, the climate.”

Many scientists say global warming is not only causing more extreme weather but more expensive disasters and the need for more sophisticated alerting systems.

Hurricanes Harvey, Irma, and Maria combined with wildfires in the West and other calamities to make 2017 the most expensive year on record for disasters in the United States, costing $306 billion, according to the National Oceanic and Atmospheric Administration.

False alarms and human error can pose a problematic cost-benefit equation, said Adam Rose, a Professor at the University of Southern California’s Sol Price School of Public Policy and predictive analysis expert.

“Is it better to be safe and have some evacuations that turn out be unnecessary, which can incur some economic costs and even create a slim danger of death or injury? Or is it better to not be safe enough?”

Mileti said his panel will recommend standardizing warning messages, so people in harm’s way can immediately identify the sender, the danger and what action they should take. Improved training of alert system operators can cut down on human error, he said.

Rather than be told simply to “evacuate,” for example, residents of a community facing flash floods, a tsunami, tornado or flames from a wildfire would be told to leave immediately and to go where they can find safe ground.

Mileti pointed to a National Institute of Standards and Technology investigation into a tornado that devastated Joplin, Missouri, on May 22, 2011, killing over 150 people. It found residents were given only a five-minute warning the twister was about to strike.

“Many of the bodies first responders found were found holding cellphones, trying to get additional information,” Mileti said.

(Reporting by Dan Whitcomb in Los Angeles; editing by Bill Tarrant and G Crosse)

Russia reels, denounces new U.S. sanctions as illegal, unfriendly

FILE PHOTO: National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017. REUTERS/Maxim Shemetov/File Photo

By Andrew Osborn

MOSCOW (Reuters) – Russia condemned a new round of U.S. sanctions as illegal on Thursday after news of the measures sent the rouble tumbling to two-year lows and sparked a wider asset sell-off over fears that Moscow was locked in a spiral of never-ending curbs by the West.

Moscow has been trying with mixed success to improve battered U.S.-Russia ties since Donald Trump won the White House in 2016, and Russia’s political elite was quick to chalk up a summit last month between Trump and Vladimir Putin as a victory.

But initial triumphalism swiftly turned sour as anger over what some U.S. lawmakers saw as an over deferential performance by Trump and his failure to confront Putin over Moscow’s alleged meddling in U.S. politics galvanized a new sanctions push.

Having bet heavily on improving ties with Washington via Trump, Moscow now finds that Trump is under mounting pressure from U.S. lawmakers to show he is tough on Russia ahead of mid-term elections.

In the latest broadside, the U.S. State Department said on Wednesday it would impose fresh sanctions by the month’s end after determining that Moscow had used a nerve agent against a former Russian double agent, Sergei Skripal, and his daughter, Yulia, in Britain, something Moscow denies.

In an early reaction, the Kremlin said the sanctions were illegal and unfriendly and that the U.S. move was at odds with the “constructive atmosphere” of Trump and Putin’s encounter in Helsinki.

The new sanctions come in two tranches. The first, which targets U.S. exports of sensitive national-security related goods, comes with deep exemptions and many of the items it covers have already been banned by previous restrictions.

However, the second tranche, activated after 90 days if Moscow fails to provide “reliable assurances” it will no longer use chemical weapons and allow on-site inspections by the United Nations or other international observer groups, is more serious.

NBC, citing U.S. officials, said the second tranche could include downgrading diplomatic relations, suspending the state airline Aeroflot’s ability to fly to the United States and cutting off nearly all exports and imports.

The State Department’s announcement fueled already worsening investor sentiment about the possible impact of more sanctions on Russian assets and the rouble at one point slid by over 1 percent against the dollar, hitting a two-year low, before recouping some of its losses.

The U.S. move also triggered a sell-off in Russian government bonds and the dollar-denominated RTS index fell to its lowest since April 11.

“There is local panic on the currency market,” BCS Brokerage said in a note. “At times, the number of those who want to ditch the rouble is becoming so high so there is not enough liquidity.”

ILLEGAL

The Kremlin said the new sanctions were “illegal and do not correspond to international law.”

“…Such decisions taken by the American side are absolutely unfriendly and can hardly be somehow associated with the constructive – not simple but constructive – atmosphere that there was at the last meeting of the two presidents,” Kremlin spokesman Dmitry Peskov said.

Washington had become an unpredictable player on the international stage, Peskov added, saying “anything could be expected” from it and that it was important that Russia’s financial system, which he described as stable, was prepared.

In a sign the Kremlin was not eager to escalate an already difficult situation however, Peskov said it was too early to talk about Russian countermeasures.

He criticized the U.S. decision to link the sanctions to the British nerve agent case, an incident the Kremlin has long cast as a Western plot to damage its reputation and provide a pretext for more sanctions.

Skripal, a former colonel in Russia’s GRU military intelligence service, and his 33-year-old daughter were found slumped unconscious on a bench in the southern English city of Salisbury in March after a liquid form of the Novichok type of nerve agent was applied to his home’s front door.

European countries and the United States expelled 100 Russian diplomats after the attack, in the strongest action by Trump against Russia since he came to office.

Konstantin Kosachyov, head of the upper house of parliament’s international affairs committee, was cited by the Interfax news agency as saying it looked like Washington was now behaving like “a police state.”

Dmitri Trenin, director of the Carnegie Moscow Center and a former colonel in the Russian army, said the State Department’s move looked like the latest salvo in what he called a hybrid war.

“Sanctions are the U.S. weapon of choice,” Trenin wrote on Twitter.

“They are not an instrument, but the policy itself. Russia will have to brace for more to come over the next several years, prepare for the worst and push back where it can.”

At variance with Moscow over Ukraine and Syria, Western sanctions have already drastically reduced Western involvement in Russian energy and commodities projects, including large-scale financing and exploration of hard-to-recover and deep water resources.

Proposed U.S. legislation prepared by several senators calls on Trump to widen the sanctions further to include virtually all Russian energy projects and effectively bar Western companies from any involvement in the country.

Introduced by Republican and Democratic senators last week in draft form, Senator Lindsey Graham, one of the measure’s lead sponsors, has called it “the sanctions bill from hell.”

(Additional reporting by Dmitry Zhdannikov, Tom Balmforth, Denis Pinchuk, Andrey Ostroukh; Editing by Richard Balmforth)

U.S. revives sanctions to further damage Iran’s economy

FILE PHOTO: A man walks past an anti-U.S. mural in Tehran, Iran October 13, 2017. Nazanin Tabatabaee Yazdi/TIMA via REUTERS

By Lesley Wroughton

WASHINGTON (Reuters) – The Trump administration expects economic sanctions that it is re-imposing on Iran this week to further cripple the Iranian economy and will aggressively enforce the measures, senior U.S. administration officials said on Monday.

The so-called snapback sanctions, due to come into force early on Tuesday, would target Iranian purchases of U.S. dollars, metals trading and other dealings, coal, industrial-related software and its auto sector.

Iran’s rial currency has lost half its value since April under the threat of revived U.S. sanctions. The plunge in the currency and soaring inflation have sparked sporadic demonstrations in Iran against profiteering and corruption, with many protesters chanting anti-government slogans.

President Donald Trump is aiming to cut off the Iranian leadership’s access to resources, the officials said. The United States also plans to re-introduce potentially more damaging sanctions on Iranian oil in November.

But the U.S. sanctions strategy has several weak spots, especially a reluctance by Europe and China to curtail business with Iran.

The European Union voiced regret on Monday at the looming U.S. sanctions.

Trump warned on Monday of “severe consequences” for people or entities that fail to wind down economic activities with Iran.

“The United States is fully committed to enforcing all of our sanctions, and we will work closely with nations conducting business with Iran to ensure complete compliance,” he said in a statement.

If Iran wants to avoid the reimposition of sanctions it should take up Trump’s offer to negotiate, White House national security adviser John Bolton said on Monday.

Asked on Fox News what Iran’s leaders could do, Bolton said: “They could take up the president’s offer to negotiate with them, to give up their ballistic missile and nuclear weapons programs fully and really verifiably not under the onerous terms of the Iran nuclear deal, which really are not satisfactory.”

“If Iran were really serious they’d come to the table. We’ll find out whether they are or not.”

The sanctions now being brought back were among those lifted under the 2015 deal between world powers and Tehran on curbing Iran’s nuclear program.

Foes for decades, the United States and Iran have been increasingly at odds over Iran’s growing political and military influence in the Middle East since Trump took office in January 2017.

Trump announced this May he would withdraw the United States from the Iran nuclear deal.

Iranian Foreign Minister Mohammad Javad Zarif said on Monday that Trump and U.S. allies Israel and Saudi Arabia have become isolated by their hostile policies toward Tehran, state TV reported.

“Their oppressive policies and violent measures have made them isolated … The world has distanced itself from their hostile policies against Iran,” Zarif was quoted as saying.

The sanctions aim to modify Iran’s behavior and not bring about a “regime change” targeting President Hassan Rouhani, the U.S. officials said. They said the Iranian government’s handling of social and labor protests was a concern.

EUROPE WORRIED

The European Union expressed concern at the new U.S. move.

“We deeply regret the re-imposition of sanctions by the U.S.,” the bloc said in a joint statement with the foreign ministers of France, Germany, and Britain.

One EU measure to mitigate the impact of U.S. sanctions, known as the blocking statute, will come into force on Tuesday.

One U.S. official said the administration was deeply concerned about reports of Iran’s violence against unarmed citizens. “The United States supports the Iranian people’s right to peacefully protest against corruption and oppression without fear of reprisal,” the official added.

The U.S. officials added that Trump was ready to meet with Iran’s leaders at any time to try to forge a new agreement.

Trump “will meet with the Iranian leadership at any time to discuss a real comprehensive deal that will contain their regional ambitions, will end their malign behavior and deny them any path to a nuclear weapon,” one official said.

Asked about possible exemptions to the sanctions, officials said they would examine any requests on a case-by-case basis.

(Reporting by Lesley Wroughton and Lisa Lambert in Washington and Robert-Jan Bartunek and Alissa de Carbonnel in Brussels; Writing by Alistair Bell; Editing by Howard Goller and James Dalgleish)

South Korea’s diehard Trump supporters hail ‘guardian of liberty’

A member of a conservative right-wing civic group attends an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

By Jeongmin Kim and Minwoo Park

SEOUL (Reuters) – Every time an image of U.S. President Donald Trump appears on TV in South Korea, 69-year-old Vietnam War veteran Chung Seung-jin solemnly salutes.

The U.S. flag Chung keeps in his home in Seoul gets similar respect every morning.

Vietnam War veteran Chung Seung-jin poses for photographs after an interview with Reuters at his home in Suwon, South Korea, July 31, 2018. REUTERS/Kim Hong-Ji

“I salute President Trump and the U.S. flag every day to show how much I trust him,” Chung told Reuters as he attended a recent anti-North Korea rally in the sweltering summer heat in downtown Seoul.

“I salute to pay respect to Mr. Trump, supporting his reign as the leader of the world and guardian of liberty.”

For many South Korean conservatives who liked Trump’s initial tough talk against North Korea’s Kim Jong Un, his abrupt embrace of the autocratic leader at their historic Singapore summit in June was nothing short of a betrayal.

Trump, who ridiculed Kim as “rocket man” last year, has since called the North Korean leader “funny” and “smart” and even praised his ability to retain his authoritarian grip on power.

“Trump said Kim is an ‘amazing leader’, thus legitimizing him. This makes us, the patriotic citizens, feel betrayed,” said Cho Won-jin, leader of the right-wing Korean Patriots’ Party.

Members of a conservative right-wing civic group attend an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

But for a colorful handful of Trump supporters who gather regularly on the streets of Seoul to call for aggressive action against North Korea, faith in the U.S. president is unshaken.

“I have saluted Trump today as always with utmost sincerity,” said 76-year-old demonstrator Lee Yoon-jo, nodding at a large picture of a beaming Trump at a demonstration in downtown Seoul.

As he saluted, demonstrators held giant U.S. and South Korean flags in front of the U.S. embassy, alongside banners in Korean and English reading “The United States is a thankful brother country that has been devoted to a free Korea”.

Gratitude for U.S. support in the 1950-1953 Korean War, as well as anti-communist rhetoric used by the South’s military rulers in the 1970s still resonate with many older South Koreans, said analyst Jeong Chan-dae of Sungkonghoe University.

“To these elderly conservatives, the U.S. is more than just an ally and more of a ‘savior’,” he said.

Holding a faded black-and-white photograph from his time he fought alongside American allies in the Vietnam War in 1968, Chung said: “Without the U.S., South Korea would never have been able to exist.”

Trump and Kim met in Singapore in June, where they announced an agreement in which Kim reaffirmed his “unwavering” commitment to denuclearize. Little progress on that front has been made in the weeks since.

A Gallup Korea poll conducted just after the summit found 48 percent of South Korean conservatives thought the meeting went well, compared to 79 percent of progressives.

Standing on a corner in Seoul, surrounded by flags and anti-North Korean banners, the small knot of demonstrators are unfazed by the shift in tone, noting that Trump could still resort to “regime change” if a denuclearisation deal doesn’t pan out.

“President Trump has always masterfully guided and protected South Korea and the free world and always will,” Lee said, again giving a military salute. “Thank you, Mr. President.”

(Reporting by Jeongmin Kim and Minwoo Park; Writing by Josh Smith; Editing by Nick Macfie)

U.S., Turkey agree to try to resolve disputes after relations dive

U.S. Secretary of State Mike Pompeo arrives at Royal Malaysian Air Force base in Subang, Malaysia August 2, 2018. REUTERS/Lai Seng Sin

By David Brunnstrom

SINGAPORE (Reuters) – U.S. Secretary of State Mike Pompeo and Turkish Foreign Minister Mevlut Cavusoglu agreed on Friday to try to resolve a series of disputes, after relations between the NATO allies sank to their lowest point in decades.

Their meeting in Singapore followed Washington’s imposition on Wednesday of sanctions on two Turkish ministers over the case of Andrew Brunson, a U.S. pastor on trial in Turkey for backing terrorism.

State Department spokeswoman Heather Nauert described their conversation on the sidelines of a regional ministers’ meeting as constructive. “They agreed to continue to try to resolve the issues between our two countries,” she said.

Cavusoglu said he had repeated Turkey’s message that “the threatening language and sanctions does not achieve anything”, but added that he and Pompeo would take steps to resolve their differences when they returned home.

“Of course you can’t expect all issues to be resolved in a single meeting,” he told Turkish television channels. “But we have agreed to work together, closely cooperate and keep the dialogue in the coming period,” he added, also describing the talks as very constructive.

Washington imposed sanctions on Justice Minister Abdulhamit Gul and Interior Minister Suleyman Soylu, accusing them of playing leading roles in organizations responsible for the arrest and detention of Brunson, an evangelical Christian who has lived in Turkey for more than two decades. The move sent the Turkish lira to record low.

Within hours Turkey vowed to retaliate ‘without delay’ but since then the tone of comments from Ankara has moderated and so far it has taken no such step. Finance minister Berat Albayrak, who is President Tayyip Erdogan’s son-in-law, also said relations with the United States would never break down, despite the temporary escalation.

Pompeo told reporters the United States had put Turkey on notice “that the clock had run and it was time for Pastor Brunson to be returned”.

“I hope they’ll see this for what it is, a demonstration that we’re very serious,” he said of the sanctions. “We consider this one of the many issues that we have with the Turks.”

“Brunson needs to come home. As do all the Americans being held by the Turkish government. Pretty straightforward. They’ve been holding these folks for a long time. These are innocent people,” he said. “We are going to work to see if we can find a way forward; I am hopeful that we can.”

The United States has also been seeking the release of three locally employed embassy staff detained in Turkey.

ATTEMPTED COUP

Brunson is charged with supporting a group Ankara blames for orchestrating an attempted coup in 2016. He denies the charges but faces up to 35 years in jail.

He was accused of helping supporters of Fethullah Gulen, a U.S.-based cleric who Turkish authorities say masterminded the coup attempt in which 250 people were killed. He was also charged with supporting outlawed Kurdish PKK militants. Gulen denies the allegations.

Turkey has been trying to have Gulen extradited from the United States for two years.

Finance Minister Albayrak said on Thursday the sanctions would have a limited impact on the Turkish economy, although investors’ deepening concern over ties with the United States, also a major trading partner, sent the lira to record lows.

On Friday, the currency fell to 5.1140 against the dollar. The sell-off also hammered Turkish stocks and debt risk profile.

Brunson was in a Turkish prison for 21 months until he was transferred to house arrest last week. On Tuesday, a court rejected his appeal to be released altogether during his trial.

Washington and Ankara are also at odds over the Syrian war, Turkey’s plan to buy missile defenses from Russia and the U.S. conviction of a Turkish state bank executive on Iran sanctions-busting charges this year.

Brunson’s case has resonated with President Donald Trump and particularly with Vice President Mike Pence, who has close ties to evangelical Christians. Pence has been pressing behind the scenes for action, aides said.

(Additional reporting by Humeyra Pamuk in Istanbul; Editing by Nick Macfie, Paul Tait and David Stamp)

U.S. job growth slows in July, unemployment rate dips

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. job growth slowed more than expected in July as employment in the transportation and utilities sectors fell, but a drop in the unemployment rate suggested that the labor market was tightening.

Nonfarm payrolls increased by 157,000 jobs last month, the Labor Department said on Friday. The economy created 59,000 more jobs in May and June than previously reported and needs to generate about 120,000 jobs per month to keep up with growth in the working-age population.

The unemployment rate fell one-tenth of a percentage point to 3.9 percent in July, even as more people entered the labor force in a sign of confidence in their job prospects. The low unemployment rate could allow the Federal Reserve to raise interest rates again in September.

The jobless rate had risen in June from an 18-year low of 3.8 percent in May. Economists polled by Reuters had forecast nonfarm payrolls increasing by 190,000 jobs last month and the unemployment rate falling to 3.9 percent.

The slowdown in hiring last month likely is not the result of trade tensions, which have escalated in recent days, but rather because of a shortage of workers. There are about 6.6 million unfilled jobs in the nation. A survey of small businesses published on Thursday showed a record number in July of establishments reporting that they could not find workers.

According to the NFIB, the vacancies were concentrated in construction, manufacturing and wholesale trade industries. Small businesses said they were also struggling to fill positions that did not require skilled labor.

The Fed’s Beige Book report last month showed a scarcity of labor across a wide range of occupations, including highly skilled engineers, specialized construction and manufacturing workers, information technology professionals and truck drivers.

The shortage of workers is steadily pushing up wages.

Average hourly earnings increased seven cents, or 0.3 percent, in July after gaining 0.1 percent in June. The annual increase in wages was unchanged at 2.7 percent in July.

U.S. stock market futures dipped after the data while the dollar <.DXY> fell against a basket of currencies. Prices of U.S. Treasuries were slightly higher.

TRADE TENSIONS

President Donald Trump’s administration has imposed duties on steel and aluminum imports, provoking retaliation by the United States’ trade partners, including China, Canada, Mexico and the European Union. It has also slapped 25 percent tariffs on $34 billion worth of Chinese imports.

Beijing has fought back by slapping tariffs on U.S. exports to China. On Friday, China’s Commerce Ministry said a new set of proposed import tariffs on $60 billion worth of U.S. goods are rational and restrained and warned that it reserves the right of further countermeasures in the intensifying trade war.

On Wednesday, Trump proposed a higher 25 percent tariff on $200 billion worth of Chinese imports.

Economists have warned that the tit-for-tat import duties, which have unsettled financial markets, could undercut manufacturing through disruptions to the supply chain and put a brake on the strong economic growth.

There have also been concerns that the trade tensions could dampen business confidence and lead companies to shelve spending and hiring plans. But a $1.5 trillion fiscal stimulus, which helped to power the economy to a 4.1 percent annualized growth pace in the second quarter, is assisting the United States in navigating the stormy trade waters.

The Fed left interest rates unchanged on Wednesday while painting an upbeat portrait of both the labor market and economy. The U.S. central bank said “the labor market has continued to strengthen and economic activity has been rising at a strong rate.” It increased borrowing costs in June for the second time this year.

The moderation in employment gains and steady wage growth could ease concerns about the economy overheating, and keep the Fed on a gradual path of monetary policy tightening.

The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding the volatile food and energy components, increased 1.9 percent in June. The core PCE hit the central bank’s 2 percent inflation target in March for the first time since December 2011.

Manufacturing payrolls rose by 37,000 jobs last month after increasing by 33,000 in June. Construction companies hired 19,000 more workers after increasing payrolls by 13,000 jobs in June. Retail payrolls rebounded by 7,100 jobs last month after losing 20,200 in June.

Education and health services added 22,000 jobs last month, the fewest since October 2017, after boosting payrolls by 69,000 jobs in June. July’s slowdown in hiring reflected a loss of 10,800 education services jobs.

Transportation payrolls dropped by 1,300 jobs last month, with transit and ground transportation employment declining by 14,800 jobs. Utilities employment fell for a third straight month and the finance and insurance industry shed 9,400 jobs last month.

Government employment fell by 13,000 jobs in July.

(Reporting by Lucia Mutikani; Editing by Jonathan Oatis and Paul Simao)

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