The Jim Bakker Show

U.S. gasoline prices tumble as Harvey subsides

A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/File Photo

By Ron Bousso

LONDON (Reuters) – Benchmark U.S. gasoline prices slumped on Monday to pre-Hurricane Harvey levels as oil refineries and pipelines in the U.S. Gulf Coast slowly resumed activity, easing supply concerns.

Brent crude oil futures were flat at $52.75 by 1340 GMT, paring earlier losses after a powerful North Korean nuclear test triggered a shift away from crude markets to assets perceived to be safer, such as gold.

U.S. West Texas Intermediate crude futures, however, were up 34 cents at $47.63 barrel as U.S. demand, hit by reduced refinery activity since Harvey made landfall on Aug. 25, recovered.

NYMEX gasoline futures were down 3.2 percent at $1.6916 a gallon, levels last seen on Aug. 25, the day Harvey struck, crippling production and causing widespread flooding.

Still, damage to the oil infrastructure in the Gulf Coast hub by Harvey appeared less extensive than some had feared.

Harvey has now been downgraded to a tropical storm.

A number of major refineries, which convert crude oil into refined products such as gasoline and jet fuel, as well as distribution pipelines, were gradually resuming operations on Monday.

Valero Energy’s 225,000 barrels per day (bpd) Texas City refinery was the only plant reported to be running at normal rates so far.

At the same time, about 5.5 percent of the U.S. Gulf of Mexico’s oil production, or 96,000 barrels of daily output, remained shut on Sunday, down from a peak of more than 400,000 bpd last week.

“The disruptions from Hurricane Harvey in the U.S. Gulf Coast are gradually clearing. In the broader scheme of things, it appears that so far the energy industry was spared major damages to assets and infrastructure,” analysts at Vienna-based JBC Energy said in a note.

“However, some Houston area refineries will likely remain offline for some time longer.”

Traders booked dozens of gasoline tankers over the past week from Asia and Europe to the United States and Latin America in order to plug supply shortages in the wake of the shutdowns.

European gasoline refining margins dropped by nearly a fifth on Monday.

And while the U.S. government tapped its strategic oil reserves for the first time in five years last week, the head of the International Energy Agency (IEA) said the global energy watchdog still sees no need for a coordinated international release of oil stocks after Harvey.

Texas Governor Greg Abbott estimated damage at $150 billion to $180 billion, calling it more costly than Hurricanes Katrina or Sandy, which hit New Orleans in 2005 and New York in 2012 respectively.

Traders were nervously watching developments in North Korea, where the military conducted its sixth and most powerful nuclear test over the weekend. Pyongyang said it had tested an advanced hydrogen bomb for a long-range missile, prompting the threat of a “massive” military response from the United States if it or its allies were threatened.

That put downward pressure on crude as traders moved money out of oil – seen as high-risk markets – into gold futures traditionally viewed as a safe haven for investors. Spot gold prices rose for a third day, gaining 0.9 percent on Monday.

Overall trading activity in the oil futures market was expected to be low on Monday due to the U.S. Labor Day public holiday.

(Additional reporting by Henning Gloystein in Singapore; Editing by Louise Heavens)

U.S. envoy says North Korean leader ‘begging for war’ as U.N. mulls sanctions

Secretary of Defense James Mattis (L) makes a statement outside the West Wing of the White House in response to North Korea's latest nuclear testing, as Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford listens, in Washington, U.S., September 3, 2017

By Christine Kim and Michelle Nichols

SEOUL/UNITED NATIONS (Reuters) – The United States on Monday said countries trading with North Korea were aiding its “dangerous nuclear intentions” as the United Nations Security Council mulled tough new sanctions and the isolated regime showed signs of planning more missile tests.

South Korea said it was talking to Washington about deploying aircraft carriers and strategic bombers to the Korean peninsula following the North’s sixth and most powerful nuclear test on Sunday.

At a Security Council meeting, U.S. Ambassador Nikki Haley said North Korea’s Kim Jong Un was “begging for war” and urged the 15-member group to adopt the strongest possible measures to deter him.

“War is never something the United States wants. We don’t want it now. But our country’s patience is not unlimited. We will defend our allies and our territory,” Haley said.

“The United States will look at every country that does business with North Korea as a country that is giving aid to their reckless and dangerous nuclear intentions,” she said.

Haley said the United States will circulate a new Security Council resolution on North Korea this week and wants a vote on it next Monday.

China, a top trading partner with North Korea, and Russia called for a peaceful resolution to the crisis.

“China will never allow chaos and war on the (Korean) Peninsula,” said Liu Jieyi, the Chinese ambassador to the United Nations.

Russia said peace in the region was in jeopardy.

“A comprehensive settlement to the nuclear and other issues plaguing the Korean peninsula can be arrived at solely through political diplomatic channels,” Russia’s U.N. Ambassador Vassily Nebenzia said.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs. Typically, China and Russia only view a test of a long-range missile or a nuclear weapon as a trigger for further possible U.N. sanctions.

U.S. President Donald Trump had asked to be briefed on all available military options, according to his defense chief.

Officials said activity around missile launch sites suggested North Korea planned more missile tests.

“We have continued to see signs of possibly more ballistic missile launches. We also forecast North Korea could fire an intercontinental ballistic missile,” Jang Kyoung-soo, acting deputy minister of national defense policy, told a parliament hearing on Monday.

North Korea tested two ICBMs in July that could fly about 10,000 km (6,200 miles), putting many parts of the U.S. mainland within range and prompting a new round of tough international sanctions.

MILITARY EXERCISES

South Korea’s air force and army conducted exercises involving long-range air-to-surface and ballistic missiles on Monday following the North’s nuclear test on Sunday, its joint chiefs of staff said in a statement.

In addition to the drill, South Korea will cooperate with the United States and seek to deploy “strategic assets like aircraft carriers and strategic bombers”, Jang said.

South Korea’s defense ministry also said it would deploy the four remaining launchers of a new U.S. missile defense system after the completion of an environmental assessment by the government.

The rollout of the controversial Terminal High Altitude Area Defense (THAAD) system at a site south of the South Korean capital, Seoul, which is vehemently opposed by neighboring China and Russia, had been delayed since June.

At the Security Council, neither Russia nor China mentioned their long-held opposition to THAAD or the prospect of further U.N. sanctions in the wake of North Korea’s nuclear test.

North Korea said it tested an advanced hydrogen bomb for a long-range missile on Sunday, prompting a warning from U.S. Defense Secretary Jim Mattis of a “massive” military response from the United States if it or its allies were threatened.

People walk past a street monitor showing a news report about North Korea’s nuclear test in Tokyo, Japan, September 3, 2017. REUTERS/Toru Hanai

Trump has previously vowed to stop North Korea developing nuclear weapons and said he would unleash “fire and fury” if it threatened U.S. territory

Despite the tough talk, the immediate focus of the international response was on tougher economic sanctions.

Diplomats have said the Security Council could now consider banning North Korean textile exports and its national airline, stop supplies of oil to the government and military, prevent North Koreans from working abroad and add top officials to a blacklist to subject them to an asset freeze and travel ban.

Asked about Trump’s threat to punish countries that trade with North Korea, Chinese Foreign Ministry spokesman Geng Shuang said China has dedicated itself to resolving the North Korean issue via talks, and China’s efforts had been recognized.

“What we absolutely cannot accept is that on the one hand (we are) making arduous efforts to peacefully resolve the North Korean nuclear issue, and on the other hand (our) interests are being sanctioned or harmed. This is both not objective and not fair,” he told a regular briefing.

On possible new U.N. sanctions, and whether China would support cutting off oil, Geng said it would depend on the outcome of Security Council discussions.

China’s state-run Xinhua news agency said in an editorial that North Korea was “playing a dangerous game of brinkmanship” and it should wake up to the fact that such a tactic “can never bring security it pursues”.

SKEPTICISM

While South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe agreed on Monday to work with the United States to pursue stronger sanctions, Russia voiced scepticism.

Russian Deputy Foreign Minister Sergei Ryabkov said sanctions on North Korea had reached the limit of their impact. Any more would be aimed at breaking its economy, so a decision to impose further constraints would become dramatically harder, he told a BRICS summit in China.

South Korea says the aim of stronger sanctions is to draw North Korea into dialogue. But, in a series of tweets on Sunday, Trump also appeared to rebuke South Korea for that approach.

“South Korea is finding, as I have told them, that their talk of appeasement with North Korea will not work, they only understand one thing!” Trump said on Twitter.

Still, Trump’s response was more orderly and less haphazard than he had offered after North Korea’s previous hostile actions.

His handling of its latest nuclear test reflected a more traditional approach to crisis management, which U.S. officials said illustrated the influence of Mattis and the new White House chief of staff, retired Marine Corps General John Kelly.

Japanese and South Korean stock markets both closed down about 1 percent on Monday, while safe-haven assets including gold and sovereign bonds ticked higher, but trade was cautious. U.S. stock markets were closed for the Labor Day holiday.

“Assuming the worst on the Korean peninsula has not proven to be a winning trading strategy this year,” said Sean Callow, a senior foreign exchange strategist at Westpac Bank.

“Investors seem reluctant to price in anything more severe than trade sanctions, and the absence of another ‘fire and fury’ Trump tweet has helped encourage markets to respond warily.”

South Korea’s finance minister vowed to support financial markets if instability showed signs of spreading to the real economy.

(Additional reporting by Shin-hyung Lee, Hyunjoo Jin and Cynthia Kim in SEOUL, Steve Holland, David Brunnstrom, Tim Ahmann, David Shepardson and John Walcott in WASHINGTON, John Ruwitch in SHANGHAI, Wayne Cole and Swati Pandey in SYDNEY; Writing by Lincoln Feast and Jeff Mason; Editing by Robert Birsel and Paul Simao)

Backed to the wall, Cambodia’s opposition urges world to help

Mu Sochua, Deputy President of the Cambodia National Rescue Party (CNRP), listens during an interview with Reuters in Phnom Penh, Cambodia September 4, 2017.

By Matthew Tostevin

PHNOM PENH (Reuters) – Foreign donors must open their eyes to Cambodia’s “false democracy” and put more pressure on Prime Minister Hun Sen after the arrest for treason of his main rival, Kem Sokha, a top opposition figure said on Monday.

Mu Sochua, known internationally for campaigns against sex trafficking and for women’s rights, said the opposition had done as much as it could and would not call for demonstrations because it believed in non-violence.

Now the world had to save Cambodia, which has taken decades to recover from the Khmer Rouge genocide, she said.

“There isn’t true peace. There has always been a false democracy,” said Mu Sochua, 63, who is one of three deputies to Kem Sokha in the Cambodia National Rescue Party (CNRP).

“The international community have been willing to close their eyes and play along with it. Right now all the red lines have been crossed,” she told Reuters in an interview in Phnom Penh.

Kem Sokha was arrested on Sunday and accused of plotting treason with the United States in an escalating crackdown on Hun Sen’s critics that has also targeted independent media and rights groups in the run-up to an election next year.

Kem Sokha’s lawyer had been allowed to visit him for the first time on Monday and he seemed to be OK, she said.

The opposition party was not calling for cuts in aid or trade, Mu Sochua said. But donors needed to make clear what they could do and convince Hun Sen that he would have no legitimacy from a flawed election.

“We are asking for the immediate and unconditional release of Mr Kem Sokha,” she said. “We hope the international community will come up to our expectations.”

She welcomed statements from both the United States and European Union, which have criticized the arrest of Kem Sokha and questioned whether next year’s elections can be fair.

HUN SEN DEFIANT

But Hun Sen, who has pulled in billions of dollars in Chinese loans and become one of Beijing’s closest regional allies, has only condemned foreign interference.

“We can’t allow any group to destroy the peace we hold in our hands by being the puppets of foreigners,” said Hun Sen, 65, a former Khmer Rouge soldier who has ruled Cambodia for more than three decades.

Mu Sochua said the opposition wanted dialogue with the ruling Cambodian People’s Party under the auspices of countries that signed and guaranteed peace accords in Paris in 1991: the biggest world powers, Asian powers and Southeast Asian states.

“We have done everything possible,” she said. “When there is use of force by a corrupt judiciary we are very vulnerable. That’s why we’re saying ‘don’t defend the opposition, defend Cambodia’.”

Opposition party leaders met on Sunday to discuss the next steps after Kem Sokha’s arrest, but with few obvious options.

They would definitely not call for protests, Mu Sochua said. Replacing Kem Sokha would not happen either.

“That’s exactly in the scenario of Mr Hun Sen,” she said, raising the possibility of an election boycott if Kem Sokha were not released.

“That would be a last resort. We cannot pretend that we will go into something that will totally destroy the party and we cannot be part of the destruction of democracy in Cambodia,” she said.

Kem Sokha, 64, only became leader in February after his predecessor, Sam Rainsy, resigned in the face of a new law to ban any party whose leader has been found guilty of a crime.

Sam Rainsy lives in France to escape a defamation conviction.

Parties were then banned from even having links to convicted criminals, prompting the CNRP to go around old posters with paint brushes to obliterate Sam Rainsy’s picture. Party officials are not allowed to mention his name.

“Maybe when Mr Kem Sokha is convicted we can’t mention his name either, but then who’s next?” Mu Sochua said.

“In the minds of the Cambodian people, we know who is our leader in our hearts.”

(Additional reporting by Prak Chan Thul; Editing by Robert Birsel)

South Korea warns that North may launch ICBM after nuclear test

South Korean troops fire Hyunmoo Missile into the waters of the East Sea at a military exercise in South Korea September 4, 2017.

By Christine Kim and David Brunnstrom

SEOUL/WASHINGTON (Reuters) – South Korea said on Monday it was talking to the United States about deploying aircraft carriers and strategic bombers to the Korean peninsula after signs North Korea might launch more missiles in the wake of its sixth and largest nuclear test.

The U.N. Security Council was set to meet later on Monday to discuss new sanctions against the isolated regime. U.S. President Donald Trump had also asked to be briefed on all available military options, according to his defense chief.

Officials said activity around missile launch sites suggested North Korea planned more missile tests.

North Korea tested two ICBMs in July that could fly about 10,000 km (6,200 miles), putting many parts of the U.S. mainland within range and prompting a new round of tough international sanctions.

In addition to the drill, South Korea will cooperate with the United States and seek to deploy “strategic assets like aircraft carriers and strategic bombers”, Jang said.

South Korea’s defense ministry also said it would deploy the four remaining launchers of a new U.S. missile defense system after the completion of an environmental assessment by the government.

The rollout of the controversial Terminal High Altitude Area Defense (THAAD) system at a site south of the South Korean capital, Seoul, is vehemently opposed by neighboring China and Russia, had been delayed since June.

TOUGH TALK

North Korea said it tested an advanced hydrogen bomb for a long-range missile on Sunday, prompting a warning of a “massive” military response from the United States if it or its allies were threatened.

“We are not looking to the total annihilation of a country, namely North Korea,” U.S. Defense Secretary Jim Mattis said after meeting Trump and his national security team.

“But as I said, we have many options to do so.”

Trump has previously vowed to stop North Korea developing nuclear weapons and said he would unleash “fire and fury” if it threatened U.S. territory

Despite the tough talk, the immediate focus of the international response was expected to be on tougher economic sanctions.

Diplomats have said the U.N. Security Council could now consider banning North Korean textile exports and its national airline, stop supplies of oil to the government and military, prevent North Koreans from working abroad and add top officials to a blacklist to subject them to an asset freeze and travel ban.

On possible new U.N. sanctions, and whether China would support cutting off oil, Geng said it would depend on the outcome of Security Council discussions.

Chinese state-run Xinhua news agency said in an editorial North Korea was “playing a dangerous game of brinkmanship” and it should wake up to the fact that such a tactic “can never bring security it pursues”.

While South Korean President Moon Jae-in and Japanese Prime Minister Shinzo Abe agreed on Monday to work with the United States to pursue stronger sanctions, Russia voiced scepticism.

South Korea says the aim of stronger sanctions is to draw North Korea into dialogue. But, in a series of tweets on Sunday, Trump also appeared to rebuke South Korea for that approach.

“South Korea is finding, as I have told them, that their talk of appeasement with North Korea will not work, they only understand one thing!” Trump said on Twitter.

Still, Trump’s response was more orderly and less haphazard than he had offered to other hostile actions by North Korea.

His handling of its latest nuclear test reflected a more traditional approach to crisis management, which U.S. officials said illustrated the influence of Mattis and new White House chief of staff, retired Marine Corps General John Kelly.

MARKETS CAUTIOUS

Japanese and South Korean stock markets both closed down about 1 percent on Monday, while safe haven assets including gold and sovereign bonds ticked higher, but trade was cautious. [MKTS/GLOB]

“Assuming the worst on the Korean peninsula has not proven to be a winning trading strategy this year,” said Sean Callow, a senior foreign exchange strategist at Westpac Bank.

“Investors seem reluctant to price in anything more severe than trade sanctions, and the absence of another ‘fire and fury’ Trump tweet has helped encourage markets to respond warily.”

South Korea’s finance minister vowed to support financial markets if instability showed signs of spreading to the real economy.

Sunday’s test had registered with international seismic agencies as a man-made earthquake near a test site. Japanese and South Korean officials said the tremor was about 10 times more powerful than the one picked up after North Korea’s previous nuclear test a year ago.

China’s National Nuclear Safety Administration said data from radiation monitoring stations near the North Korean border showed no impact on “China’s environment or populace”.

Australian Prime Minister Malcolm Turnbull said that, while North Korea was not a puppet state of China, Beijing needed to do more to pressure its neighbor.

“The Chinese are frustrated and dismayed by North Korea’s conduct, but China has the greatest leverage, and with the greatest leverage comes the greatest responsibility,” he told the Australian Broadcasting Corp on Monday.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Shin-hyung Lee, Hyunjoo Jin, Cynthia Kim in SEOUL, Steve Holland and John Walcott in WASHINGTON, John Ruwitch in SHANGHAI, Wayne Cole and Swati Pandey in SYDNEY; Writing by Lincoln Feast; Editing by Paul Tait, Robert Birsel)

Retail U.S. gasoline prices surge as refineries warn of shortages after Harvey

A note is left on a gas pump in the aftermath of Hurricane Harvey in Cedar Park, Texas, U.S., September 1, 2017. REUTERS/Mohammad Khursheed

By Julia Simon

NEW YORK (Reuters) – Retail U.S. gasoline prices rose 2.8 percent from Friday to Saturday as refineries warned customers about fuel-supply shortages caused by Hurricane Harvey.

They were at $2.59 a gallon, according to motorists advocacy group AAA. It represents a 16.7 percent rise in the average price from a year ago.

Prices have risen more than 17.5 cents since Aug. 23, before the storm began.

Average prices in Texas, the epicenter of the storm, rose more than 3 percent from Friday to Saturday, and are up 12 percent from a week ago.

Refiner Motiva has warned customers along the route of the largest U.S. fuel pipeline to prepare for shortages after Harvey shut refineries and cut supply to the line, said a source at a fuel distributor supplied by Motiva.

Harvey shut refineries that can process up to 4.4 million barrels per day (bpd) of crude. The plants shut down include Motiva’s 603,000 bpd facility in Port Arthur, Texas, the largest refinery in the country.

Nearly half of the U.S. refining capacity is in the Gulf Coast, a region with proximity to plentiful crude supplies including Texan oil fields and also Mexican and Venezuelan oil imports.

“The refineries were built on the Gulf Coast with the idea that we’re going to import,” said Sandy Fielden, director of oil and products research at Morningstar in Austin, Texas, “That’s why we’re having problems today because that’s where they were all built.”

The reduction in fuel supplies has forced the Colonial Pipeline, which supplies fuel from refineries near the Gulf of Mexico to the U.S. Northeast, to reduce supplies.

Convenience store and gas station chain Circle K, a big buyer from Motiva, said the company was working with a limited supply.

Some crude oil pipelines have restarted operations. Magellan Midstream Partners <MMP.N> announced late Friday that it resumed operations on its BridgeTex and Longhorn crude oil pipelines. The two pipelines transport around 675,000 barrels per day (bpd) of West Texas crude oil into East Houston.

The company says it expects to resume service on its Houston crude oil distribution system over the weekend.

U.S. crude production continues to stall following the storm. As of Friday, volume of crude production still shut-in had declined to about 153,000 bpd, down from 324,000 bpd just two days ago.

(Reporting by Julia Simon Editing by Jeremy Gaunt)

U.S., South Korea agree to revise missile treaty in face of North Korean threats

The intercontinental ballistic missile Hwasong-14, in this photo released July 4, 2017.

SEOUL (Reuters) – U.S. President Donald Trump agreed with South Korean President Moon Jae-in to revise a joint treaty capping the development of the South’s ballistic missiles, Moon’s office said on Saturday, amid a standoff over North Korea’s missile and nuclear tests.

Trump also gave “conceptual” approval to the purchase by the South of billions of dollars of U.S. military hardware, the White House said.

The South wants to raise the missile cap to boost its defenses against the reclusive North, which is pursuing missile and nuclear weapons programs in defiance of international warnings and UN sanctions.

“The two leaders agreed to the principle of revising the missile guideline to a level desired by South Korea, sharing the view that it was necessary to strengthen South Korea’s defense capabilities in response to North Korea’s provocations and threats,” South Korea’s presidential Blue House said.

Impoverished North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and its main ally, the United States.

North Korea sharply raised regional tension this week with the launch of its Hwasong-12 intermediate-range ballistic missile that flew over Japan and landed in the Pacific.

That followed the test launch of two long-range ballistic missiles in July in a sharply lofted trajectory that demonstrated a potential range of 10,000 km (6,000 miles) or more that would put many parts of the U.S. mainland within striking distance.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

South Korea’s development of its ballistic missiles is limited to range of 800 km (500 miles) and payload weight of 500 kg (1,100 pounds) under a bilateral treaty revised in 2012.

South Korea has said it wants to revise the agreement to increase the cap on the payload.

The two countries agreed to the cap as part of a commitment to a voluntary international arms-control pact known as the Missile Technology Control Regime, aimed at limiting the proliferation missiles and nuclear weapons.

The two leaders pledged to continue to apply strong diplomatic and economic pressure on North Korea and to make all necessary preparations to defend against the growing threat by the North, the White House said.

The White House did not mention the voluntary bilateral agreement but said the two leaders agreed to strengthen their defense cooperation and South Korea’s defense capabilities.

Trump “provided his conceptual approval of planned purchases by South Korea of billions of dollars in American military equipment”, the White House said.

Trump, who has warned that the U.S. military is “locked and loaded” in case of further North Korean provocation, reacted angrily to the latest missile test, declaring on Twitter that “talking is not the answer” to resolving the crisis.

North Korea defends its weapons programs as necessary to counter perceived U.S. aggression, such as recent air maneuvers with South Korean and Japanese jets.

(Reporting by Jack Kim in Seoul and Eric Beech in Washington; Editing by Nick Macfie)

Labor activists target Midwest politicians opposing wage increases

FILE PHOTO: Protest signs are pictured in SeaTac, Washington just before a march from SeaTac to Seattle aimed at the fast food industry and raising the federal minimum wage and Seattle's minimum wage to $15 an hour December 5, 2013. REUTERS/David Ryder/File Photo

By Chris Kenning

CHICAGO (Reuters) – U.S. activists plan protests in up to 400 cities across the United States on Monday’s Labor Day holiday to demand a minimum wage of $15 an hour, and are targeting politicians in Midwestern battleground states who have blocked such salary increases.

The demonstrations, backed by the Service Employees International Union, will focus on hospital and home care workers, joining the fast-food and janitorial staffers who have protested since the “Fight for $15” movement started in 2012.

The movement has helped to spur politicians in a growing number of cities such as New York, Seattle, Minneapolis and Washington, D.C., to adopt measures that over time raise minimum wages to $15 an hour.

Organizers are also increasing pressure on legislatures and governors, particularly in the Midwest, that have blocked or rolled back increases.

The increased focus on politicians who oppose wage increases may capture some of the populist job-related voter discontent in traditionally Democratic Midwest states that helped U.S. President Donald Trump win the White House, said Dick Simpson, a political science professor at the University of Illinois at Chicago.

“The minimum wage issue is one (issue) they can immediately identify with because it affects their pocketbook with every paycheck,” he said.

Republican Governor Scott Walker of the presidential swing state of Wisconsin is among those targeted, as is Illinois Republican Governor Bruce Rauner, who last month vetoed raising the minimum wage to $15 by 2022, saying it would hurt employment and businesses.

“I’m doing 40 hours of campaigning and knocking on doors and making phone calls, whatever it takes to get Walker out of office,” Milwaukee hospital worker Margie Breelove said.

A voter-engagement drive, also slated to begin on Monday, seeks thousands of workers to pledge to volunteer 40 hours leading up to the 2018 elections.

The idea is to support candidates, most of them Democrats, for state legislatures or governor who favor wage hikes and union rights in such states as Iowa, Michigan, Ohio, Wisconsin and Illinois, along with other areas outside the Midwest.

“It’s not just about taking out people that have been rigging the rules against us, it’s backing candidates who are prepared to support our agenda,” SEIU President Mary Kay Henry said in a telephone interview.

Representatives for the governors of Wisconsin, Missouri and Illinois did not respond to requests for comment on Friday.

Opponents of raising the current federal minimum hourly wage of $7.25 argue that it hurts businesses. The federal minimum wage was last increased in 2009.

But supporters of an increase say the current level is not enough to live on and helps fuel the need for social safety-net programs. They point to studies showing little impact on jobs.

Under a law approved last year, California set a $15 target for all workers, which it plans to reach in 2023. New York state is also gradually increasing its minimum wage to $15 an hour for all workers. Cities, including Minneapolis, have also approved such legislation.

However, since 2016, eight states, including Alabama, Kentucky and Iowa, have passed laws pre-empting local wage laws, according to the Economic Policy Institute.

St. Louis’ minimum wage, which had increased to $10 an hour, recently reverted to $7.70 after the legislature prohibited cities from creating separate wage laws. Missouri Governor Eric Greitens had opposed the increase.

(Reporting by Chris Kenning; Editing by Jonathan Oatis)

Russia, digesting U.S. diplomatic retaliation, pledges ‘harsh’ response

The entrance to the building of the Consulate General of Russia is shown in San Francisco, California, U.S., August 31, 2017. REUTERS/Stephen Lam

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Friday it would respond harshly to any U.S. measures designed to hurt it, a day after the United States told Moscow to close its San Francisco consulate and buildings in Washington and New York.

The warning, from Foreign Minister Sergei Lavrov, came as Russia said it was weighing a response to the U.S. move that will force it to shutter two trade missions in the United States as well as the San Francisco consulate by Sept. 2.

“We’ll react as soon as we finish our analysis,” Lavrov told students in Moscow. “We will respond harshly to things that damage us.”

Separately, a top Kremlin aide complained the U.S. demarche pushed bilateral ties further into a blind alley and fuelled a spiral of tit-for-tat retaliatory measures.

U.S. President Donald Trump took office in January, saying he wanted to improve U.S.-Russia ties which were at a post-Cold War low. But since then, ties have frayed further after U.S. intelligence officials said Russia had meddled in the presidential election, something Moscow denies.

Trump, himself battling allegations his associates colluded with Russia, grudgingly signed new sanctions on Moscow into law this month which had been drawn up by Congress.

When it became clear those measures would become law, Moscow ordered the United States to cut its diplomatic and technical staff in Russia by more than half, to 455 people.

Lavrov hinted on Friday that Russia might look at ordering further reductions in U.S. embassy staff, suggesting Moscow had been generous last time by allowing Washington to keep “more than 150” extra people.

He said Russia had cut the U.S. numbers to tally with the number of Russian diplomats in the United States, but that Moscow had generously included more than 150 Russian staff who work at Russia’s representation office at the United Nations.

Lavrov said Moscow still hoped for better relations and blamed Trump’s political foes for the deteriorating situation.

“I want to say that this whole story with exchanging tit-for-tat sanctions was not started by us,” Lavrov said.

“It was started by the Obama administration to undermine U.S.-Russia relations and to not allow Trump to advance constructive ideas or fulfil his pre-election pledges.”

Barack Obama, then outgoing president, expelled 35 suspected Russian spies in December and seized two Russian diplomatic compounds. President Vladimir Putin paused before responding, saying he would wait to see how Trump handled Russia.

“We thought this administration could exercise common sense, but unfortunately the Russophobes in Congress are not allowing it to,” said Lavrov, who complained that the United States had only given Moscow 48 hours to comply with its latest demands.

(Additional reporting by Denis Pinchuk; Editing by Robin Pomeroy)

More than four million Time Warner Cable records exposed in leak

(Reuters) – More than four million records of users of Time Warner Cable’s MyTWC app were found unsecured on an Amazon server last month, digital security research center Kromtech Security Center said in a blog post on Friday.

The files — more than 600 gigabytes in size containing sensitive information such as transaction ID, user names, Mac addresses, serial numbers, account numbers — were discovered on Aug. 24 without a password by researchers of Kromtech.

“A vendor has notified us that certain non-financial information of legacy Time Warner Cable customers who used the MyTWC app became potentially visible by external sources,” Charter Communications Inc <CHTR.O>, Time Warner Cable’s parent, said in an email.

The information was removed immediately after the discovery and the incident is being investigated, Charter said.

The breach was eventually linked to BroadSoft Inc <BSFT.O>, a communications company, whose unit developed the MyTWC app.

Broadsoft did not immediately respond to a request for comment.

(Reporting by Laharee Chatterjee and Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)

Islamic State convoy in Syria appears to have turned back, U.S.-led coalition says

A convoy of Islamic State fighters and their families begin to depart from the Lebanon-Syria border zone in Qalamoun, Syria August 28, 2017.

By Angus McDowall

BEIRUT (Reuters) – A convoy of Islamic State fighters appears to have turned back after U.S.-led airstrikes thwarted its attempt to reach territory held by the militant group in eastern Syria, the head of U.S.-led forces fighting Islamic State said on Thursday.

More than 300 lightly armed IS fighters and about 300 family members were evacuated from Syria’s western border with Lebanon under a ceasefire agreement involving the ultra-hardline group, the Syrian army and the Lebanese Shi’ite group Hezbollah.

On Thursday they sought to move into IS-held territory from a new location after U.S.-led strikes on Wednesday stopped them joining forces with their jihadist comrades, a commander in the pro-Syrian government military alliance said.

However, U.S. Army Lieutenant General Stephen Townsend, the commander of U.S.-led forces fighting Islamic State, told a Pentagon briefing that the convoy had turned back into Syrian government territory.

“When I walked into this conference about an hour ago, the buses were on the move. They had turned and had driven back into regime-held areas,” he told reporters via a video teleconference from Baghdad.

“We haven’t struck the convoy. But we have struck every ISIS fighter and/or vehicle that has tried to approach that convoy. And we’ll continue to do that,” he said.

The coalition opposes experienced combatants being moved to a battle zone in which it is active, and used warplanes on Wednesday to halt the convoy by damaging the road ahead. It also struck fighters on their way to meet the convoy.

A commander in the pro-Syrian government military alliance said the convoy had headed north towards the town of Sukhna on Thursday after being halted in the desert and would try to reach Deir al-Zor province, close to the border with Iraq.

Two sources familiar with U.S. policy on Syria said the airstrikes did not signal a more aggressive military approach, and were intended to prevent the IS fighters in the convoy reinforcing their comrades in Deir al-Zor.

But the standoff shows the tangled nature of a war theater divided into several overlapping conflicts, and where the engagement of local, regional and global powers is further complicated by a mosaic of alliances and enmities.

Six years into Syria’s civil war, in which Islamic State has seized swathes of land, the jihadist group is on the retreat across the region, losing ground to an array of foes.

In Syria, the government of President Bashar al-Assad has rapidly gained ground this year as the army advanced eastwards, backed by Russia and allied Iran-backed militia including Hezbollah, towards its besieged enclave in Deir al-Zor.

But in the north, the United States — which opposes Assad, Iran and Hezbollah — has led a coalition backing Kurdish and Arab militias as they assault Islamic State’s former Syrian capital of Raqqa.

NASRALLAH VISITED DAMASCUS

Hezbollah-affiliated media have reported that the Syrian town of Al-Bukamal, close to the border with Iraq, is the final destination for the convoy.

Hezbollah has been one of Assad’s closest allies in the war and it trumpeted the departure of Islamic State, after that of two other militant groups, from the Lebanon border as a “day of liberation”.

On Thursday, Hezbollah leader Sayyed Hassan Nasrallah said Assad had only reluctantly agreed to the evacuation after Nasrallah visited Damascus to request it, a rare public acknowledgement that he had traveled outside Lebanon.

Iraq’s Prime Minister, Haider al-Abadi, said it was “unacceptable” to ferry more jihadist fighters from another battlefront in Syria to the edge of Iraqi territory, prompting a statement from Hezbollah defending the move.

Iraq has formed a dedicated intelligence operations room to monitor and track the jihadists, a senior Interior Ministry official told state media, saying the convoy included “elite commanders” of Islamic State.

After it was blocked from moving eastwards on Wednesday, the convoy headed north within government territory to try to move into Islamic State land from a new location, the commander in the pro-Assad alliance said.

The commander added that the convoy would head on again after an exchange of dead combatants and prisoners. The bodies of an Iranian killed in the fighting and two other dead fighters were to be swapped for 25 wounded IS fighters traveling with the convoy, the commander said.

In Tehran, the country’s Revolutionary Guards said on their website that the dead Iranian, whom they identified as Mohsen Hojaji, would be returned at an unspecified date for a funeral and burial.

LIFE ON BUSES “GETTING KIND OF HARD”?

The fighters retained light weapons but left heavier arms in their enclave after being evacuated from western Lebanon following heavy fighting there.

“I would imagine life getting kind of hard on those buses after two and a half days or more, largely cooped up in those buses driving around in the desert,” Townsend said.

Such deals have increasingly been used by the Syrian army and its allies to press besieged rebels to surrender their enclaves and to relocate to insurgent-held territory elsewhere, but this is the first such deal involving Islamic State.

In the process, Islamic State revealed the fate of nine Lebanese soldiers it took captive in its border enclave in 2014, as well as surrendering a Hezbollah prisoner.

An official in the Syrian Arab Red Crescent, which is helping with the exchange, has entered Islamic State territory to accompany the prisoner back to the government-held area, the commander in the pro-Assad military alliance said.

Hezbollah-aligned al Akhbar newspaper in Lebanon reported on Thursday that some IS leaders in eastern Syria did not want members of the group who had surrendered territory to be welcomed back into their self-declared caliphate.

(Reporting by Leila Bassam and Sarah Dadouch in Beirut, Ahmed Rasheed in Baghdad, Idrees Ali, David Alexander and John Walcott in Washington, and Dubai Newsroom, Writing by Angus McDowall, Editing by Timothy Heritage)

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