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Senate plans votes to end shutdown, but solution still far off

A visitor walks by the U.S. Capitol on day 32 of a partial government shutdown as it becomes the longest in U.S. history in Washington, U.S., January 22, 2019. REUTERS/Jim Young

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – The Republican-led U.S. Senate planned votes on Thursday for competing proposals to end the partial government shutdown – both of which were likely to fail – as lawmakers and the White House sniped at each other over how to break their monthlong impasse.

Just hours before the Senate was scheduled to vote, there were signs that lawmakers might consider new ideas for ending the 34-day shutdown, which was triggered by Trump’s demand for money to fund his long-promised wall on the U.S.-Mexico border. The shutdown has left hundreds of thousands of government workers furloughed or working without pay.

House of Representatives Speaker Nancy Pelosi, a Democrat, told reporters that she was willing to meet face-to-face with Republican President Donald Trump to discuss the issue.

Her comment came one day after she announced that Trump’s State of the Union speech in the House chamber, scheduled for Tuesday, would not occur until the shutdown ended, despite the president’s plans to come. Trump, who considered giving the speech at another venue, conceded late on Wednesday and said he would deliver the speech in the House in the “near future.”

Trump wants $5.7 billion for the border barrier, opposed by Democrats, as part of any legislation to fund about a quarter of the federal government.

The longest such shutdown in U.S. history has left 800,000 federal workers, as well as private contractors, without pay and struggling to make ends meet, with the effects on government services and the economy reverberating nationwide.

U.S. Commerce Secretary Wilbur Ross on Thursday urged furloughed federal workers to seek loans to pay their bills while adding in a CNBC interview that he couldn’t understand why they were having trouble getting by.

Pelosi denounced the comments.

“Is this the, ‘Let them eat cake’ kind of attitude or ‘Call your father for money?’ or ‘This is character building for you?'” Pelosi asked at a news conference.

She said she did not understand why Ross would make the comment “as hundreds of thousands of men and women are about to miss a second paycheck tomorrow.”

Trump had a response for Pelosi as well.

“Nancy just said she ‘just doesn’t understand why?’ Very simply, without a Wall it all doesn’t work. Our Country has a chance to greatly reduce Crime, Human Trafficking, Gangs and Drugs. Should have been done for decades. We will not Cave!” he said in a tweet.

VOTES PROCEED

Meanwhile, Senate Majority Leader Mitch McConnell planned a vote on Thursday afternoon on a Democratic proposal to fund the government for three weeks that does not include wall funding.

Its prospects looked dim in the Republican-majority Senate, although at least one conservative senator reportedly plans to back it. The Democratic-controlled House has passed similar bills but Trump has rejected legislation that does not include the wall funding.

McConnell has previously said he would not consider legislation that Trump did not support. The fact that he is willing to allow a vote suggests he may be trying to persuade lawmakers of both parties to compromise.

Republican Senator Cory Gardner intends to vote for the bill, the Denver Post said, citing the lawmaker’s spokesman. Gardner’s representatives could not be reached for immediately for comment.

McConnell also planned to hold a vote on a separate bill that includes wall funding and a temporary extension of protections for “Dreamers,” hundreds of thousands of people brought to the United States illegally as children, to reflect an offer Trump made on Saturday.

Democrats have dismissed Trump’s offer, saying they would not negotiate on border security before reopening the government and would not trade a temporary extension of the immigrants’ protections in return for a permanent border wall they have called ineffective, costly and immoral.

McConnell’s calculation may be that if both bills fail, Republicans and Democrats would be convinced to seek a deal.

One possibility emerged on Wednesday when House Democratic leaders floated the idea of giving Trump most or all of the money he seeks for security along the Mexican border but that could not be used to build a wall.

Representative James Clyburn, the No. 3 House Democrat, said Democrats could fulfill Trump’s request for $5.7 billion for border security with technological tools such as drones, X-rays and sensors, as well as more border patrol agents.

A Reuters/Ipsos poll last week found more than half of Americans blamed Trump for the shutdown even as he has sought to shift blame to Democrats after saying last month he would be “proud” to close the government for border security.

(Reporting by Richard Cowan and Susan Cornwell; additional reporting by Susan Heavey and Roberta Rampton; Writing by Jeff Mason; Editing by Bill Trott)

U.S. government shutdown enters its 26th day as talks paralyzed

FILE PHOTO: Following a weekend snowstorm, the dome of the U.S. Capitol is seen in the distance as a jogger stops to photograph the Washington Monument in Washington U.S., January 14, 2019. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump on Wednesday is expected to sign legislation providing 800,000 federal employees with back pay when the partial government shutdown ends, even through a conclusion to the impasse remains no where in sight.

As the shutdown stretches into its 26th day, Trump is also scheduled to meet with a bipartisan group of lawmakers at 11:30 a.m..

Whether the meeting is related to the shutdown was not immediately clear, however. Neither the White House nor lawmakers’ offices immediately responded to a request for details.

The shutdown began on Dec. 22, after Trump insisted he would not sign legislation funding a quarter of government agencies unless it included more than $5 billion for a wall along the U.S. border with Mexico.

The wall was a signature campaign promise of his before the 2016 presidential election. Trump said at the time Mexico would pay for it but has since reversed himself, denying that he ever said Mexico would directly foot the bill for the wall.

On Wednesday, Trump continued to blame Democrats for the standoff and trumpet his support of the wall, writing in a post on Twitter that wall projects around the world “have all been recognized as close to 100% successful. Stop the crime at our Southern Border!”

It was not immediately clear what wall projects he was referring to.

His tweets appear unlikely to move Democrats, who have controlled the House of Representatives since Jan. 3. Trump also needs the support of at least some Democrats in the Senate to pass funding legislation.

Senate Democrats have planned an event on the steps of the Capitol intended to highlight the havoc of the shutdown is wreaking, as 800,000 federal workers are furloughed – meaning they are forced to stay home, or work without pay – and contractors do not receive payments.

Economists have estimated that each week the shutdown continues will shave off 0.1 percent of economic growth.

More than half of Americans blame Trump for the government shutdown, according to a Reuters/Ipsos poll. A separate poll found the shutdown has affected four in 10 Americans, far beyond the 800,000 federal employees directly feeling the impact of the funding lapses.

(Reporting by Makini Brice; Editing by Steve Orlofsky)

Trump, Democrats dig in over ending government shutdown

U.S. President Donald Trump speaks to reporters about border security in the Briefing Room at the White House in Washington, U.S., January 3, 2019. REUTERS/Carlos Barria

By Richard Cowan and Susan Heavey

WASHINGTON (Reuters) – President Donald Trump and congressional leaders gathered at the White House on Friday to try to end a 2-week-old partial U.S. government shutdown but all parties were entrenched over his demand for $5 billion to build a wall on the border with Mexico.

About 800,000 federal workers have been unpaid due to the closure of about a quarter of the federal government as Trump withholds his support for new funding until he secures the money for the wall that he promised to construct during his election campaign.

The wall, Trump has argued, is needed to stem the flow of illegal immigrants and drugs over the border. When he ran for president in 2016, Trump vowed Mexico would pay for the wall, which it has refused to do.

Democratic congressional leaders arrived at the White House for the meeting with Trump but it was unclear how much progress might be made.

It is the first showdown between Trump and Democrats since they took over the U.S. House of Representatives on Thursday after victories in last November’s elections.

“The president isn’t going to back off,” White House spokeswoman Sarah Sanders told reporters before the talks began.

The Senate on Friday adjourned until Tuesday afternoon in a sign that the shutdown would likely not end before then.

Ahead of the meeting, House Speaker Nancy Pelosi sought to separate the issue of the wall and government funding and called on Trump and his fellow Republicans in the Senate to reopen agencies as border talks continue.

“The wall and the government shutdown really have nothing to do with each other,” Pelosi, who has rejected any funding for what she has called an “immoral” border wall, said at an event hosted by MSNBC.

About 800,000 federal employees have either been furloughed or are working without pay because of the shutdown.

It is showing signs of straining the country’s immigration system and has been blamed for worsening backlogs in courts and complicating hiring for employers.

Trump continued to promote the wall in tweets to keep the pressure on Democrats on Thursday even as they gained significant power with their takeover of the House at the start of a new Congress.

TRUMP LETTER

Trump sent a letter to all members of Congress on Friday “on the need to secure our borders,” the White House said.

“Absolutely critical to border security and national security is a wall or a physical barrier that prevents entry in the first place,” Trump wrote.

Late on Thursday, the House passed two Democratic bills to immediately reopen government agencies for varying lengths of time, despite a White House veto threat.

Senate Majority Leader Mitch McConnell, a Republican, has rejected the House effort saying the president would not sign into law, although the Senate last month approved identical legislation.

“We’re in the same place … Any viable compromise will need to carry the endorsement of the president before it receives a vote in either house of Congress,” McConnell said, speaking on the Senate floor Friday morning.

But he may face pressure from within his caucus from vulnerable Republicans up for re-election in 2020.

“We should pass a continuing resolution to get the government back open. The Senate has done it last Congress, we should do it again today,” U.S. Senator Cory Gardner told The Hill on Thursday.

His colleague Susan Collins also called for the Senate to pass the funding bills, while several other Republicans urged an end to the shutdown, the Hill and New York Times reported.

Pelosi on Friday urged McConnell to bring the measures up for a vote. “The president can sign or not but he should never say, ‘I’m not even going to put it on the president’s desk,'” she told MSNBC, noting Congress can pass bills without Trump’s support.

Legislation can become law with a veto-proof majority of lawmakers’ support or if the president does not sign it or veto it within 10 days.

Vice President Mike Pence on Thursday suggested that in exchange for the wall, the White House could work with Democrats on so-called Dreamer immigrants who were brought to the United States illegally as children – an idea Trump had rejected.

“It’s being talked about,” Pence told Fox News.

Democrats back other border security measures aside from the wall, and their two-bill package passed Thursday includes $1.3 billion for border fencing and $300 million for other border security items such as technology and cameras.

In a Dec. 11 meeting with Pelosi and Democratic Senate Leader Chuck Schumer, Trump said he would be “proud” to shut the government over the security issue and would not blame Democrats. He has since said they are responsible.

A Reuters/Ipsos opinion poll last week showed that 50 percent of the public blame Trump for the shutdown and 7 percent blame Republican lawmakers, against 32 percent who blame Democrats.

(Reporting by Richard Cowan; Additional reporting by Susan Heavey, Susan Cornwell and Lisa Lambert; Writing by Alistair Bell; Editing by Bill Trott)

Congress works to avert shutdown but still no money for Trump wall

FILE PHOTO: Workers on the U.S. side, work on the border wall between Mexico and the U.S., as seen from Tijuana, Mexico, December 13, 2018. REUTERS/Carlos Garcia Rawlins

By Richard Cowan and Ginger Gibson

WASHINGTON (Reuters) – The U.S. Congress on Thursday steered toward preventing a partial federal shutdown as leaders hoped for final passage of a temporary government funding bill that still leaves President Donald Trump without money for his promised border wall.

Trump attacked Democrats again for not supporting the wall and said he would not sign any legislation that does not include it, possibly threatening the spending bill that Congress is negotiating.

It was not clear, however, whether Trump was referring to the funding bill that passed the Senate late on Wednesday that is to be debated by the House or Representatives, or whether the warning was aimed at legislation Democrats might advance next year.

The White House was not immediately available for comment.

Rank-and-file House Republicans left a closed-door meeting with their leaders giving conflicting views on whether Trump would sign into law the bill that would keep about 25 percent of federal programs operating beyond midnight on Friday when existing money expires.

The House is expected to act on the legislation later this week.

“The Democrats, who know Steel Slats (Wall) are necessary for Border Security, are putting politics over Country,” Trump said on Twitter on Thursday morning. “What they are just beginning to realize is that I will not sign any of their legislation, including infrastructure unless it has perfect Border Security. U.S.A. WINS!”

Trump appeared to be referring to legislation Democrats might try to advance in 2019, when they take control of the House from Republicans.

In a late-night session on Wednesday, the Senate approved a bill to provide money to keep a series of programs operating through Feb. 8. But it defied the president by refusing to give him any of the $5 billion he demanded to build a wall along the U.S.-Mexico border, his key campaign promise.

Last week in a meeting with Democratic House leader Nancy Pelosi and Senate leader Chuck Schumer Trump had said he would be “proud to shut down the government for border security.”

SEVEN-WEEK EXTENSION

Congress’ midnight Friday deadline was for funneling money to finance federal law enforcement activities, airport security screenings, space exploration, and farm programs, to name a few.

But instead of resolving the budget impasse with a funding bill to keep several federal agencies operating through next September, the end of this fiscal year, the Senate approved only a seven-week extension of existing funds.

Democrats and several of Trump’s own Republicans have balked at money for a wall that the president argues would stop the illegal flow of immigrants and drugs into the United States.

With Democrats taking control of the House on Jan. 3, it will be even harder for Trump to win money for a border wall.

“When House Democrats assume control in two weeks, my primary focus will be to pass reasonable spending legislation that does not fund President Trump’s wasteful wall,” said Democratic Representative Nita Lowey, who in 2019 will chair the House Appropriations Committee, which writes government funding legislation.

Meantime, Trump administration officials were looking for ways to build the wall, which the president initially had pledged Mexico would pay for, by reassigning money already doled out to U.S. agencies for other projects.

The White House has not provided details of that effort but leading Democrats have warned that shifting funds around in such a way would have to be approved by Congress.

Republican Representative Mark Meadows, the leader of a group of hard-right conservatives, told reporters that if this temporary spending bill is enacted, Republican candidates in 2020 will suffer.

“He (Trump) campaigned on the wall” in 2016, Meadows said. “It was the center of his campaign … the American people’s patience is running out,” he said.

(Reporting by Richard Cowan and Ginger Gibson; Additional reporting by Lisa Lambert and Susan Heavey; Editing by Michael Perry and Bill Trott)

Former President George H.W. Bush remembered for role in Cold War, Iraq

A flag is draped over the gate to the neighborhood of the home of former President George H.W. Bush, a day after he passed away in Houston, Texas, U.S. December 1, 2018. REUTERS/Gary McWilliams

By Gary McWilliams and Bill Trott

HOUSTON/WASHINGTON (Reuters) – Tributes to former U.S. President George H.W. Bush, who died at the age of 94, poured in from around the world on Saturday as global leaders honored him for his role in helping to end the Cold War and reduce the threat of nuclear annihilation.

FILE PHOTO: Republican presidential candidate Mitt Romney (L) picks up the formal endorsement of former President George H.W. Bush and former first lady Barbara Bush in Houston March 29, 2012. REUTERS/Donna Carson/File Photo

Bush, the 41st U.S. president who served in the office from 1989 to 1993, also routed President Saddam Hussein’s Iraqi army in the 1991 Gulf War but lost his chance for a second term in the White House after breaking a no-new-

taxes pledge.

“Many of my memories are linked to him,” said Mikhail Gorbachev, the last leader of the Soviet Union, with whom Bush signed a strategic arms reduction treaty that scaled back the two countries’ nuclear arsenals.

“We happened to work together in years of great changes. It was a dramatic time demanding huge responsibility from everyone,” Russia’s Interfax news agency quoted Gorbachev as saying.

Bush, who also served for eight years as U.S. vice president during Ronald Reagan’s two-term presidency and earlier as head of the CIA, died on Friday night at his home in Houston. His death was announced by his longtime spokesman Jim McGrath.

FILE PHOTO: U.S. President George H.W. Bush laughs while attending the annual White House Correspondents Association Awards dinner in Washington May 21, 1988. REUTERS/Stelios Varias/File Photo

Speaking in Buenos Aires, U.S. President Donald Trump called Bush “a high-quality man.”

“He was a very fine man. I met him on numerous occasions. He was just a high-quality man who truly loved his family,” Trump told reporters at a G20 summit in Buenos Aires. “He was a terrific guy and he’ll be missed. He led a full life, and a very exemplary life, too.”

The White House said a state funeral will be held on Wednesday at the National Cathedral in Washington. Trump, who plans to attend the funeral with first lady Melania Trump, also designated Wednesday as a national day of mourning and ordered the lowering of the American flag for 30 days.

Former U.S. presidents lauded Bush. “His administration was marked by grace, civility and social conscience,” Jimmy Carter, a Bush predecessor and now the oldest living former president at 94, said in a statement.

Barack Obama described Bush as “a patriot and humble servant” while Bill Clinton, who defeated Bush in the 1992 presidential election, recalled his “great long life of service, love and friendship.”

FILE PHOTO: George H. W. Bush, in uniform as a Naval Aviator Cadet, is pictured in this early 1943 handout photo obtained by Reuters November 30, 2012. George Bush Presidential Library and Museum/Handout via REUTERS/File Photo

Bush, a U.S. naval aviator during World War Two, was the father of former President George W. Bush, who served two terms in the White House in the 2000s, and former Florida Governor Jeb Bush, who unsuccessfully sought the 2016 Republican nomination for president. Like his sons, he was a Republican.

After falling short of his party’s presidential nomination in 1980, Bush ran for the presidency again in 1988 and defeated Massachusetts Democrat Michael Dukakis, winning 40 of the 50 U.S. states.

His death came seven months after that of his wife, former first lady Barbara Bush, to whom he was married for 73 years. He was admitted to a Houston hospital with a blood infection that led to sepsis a day after her funeral in April.

“The entire Bush family is deeply grateful for 41’s life and love, for the compassion of those who have cared and prayed for Dad, and for the condolences of our friends and fellow citizens,” George W. Bush said in a statement.

Trump said he spoke on Saturday to George W. Bush and Jeb Bush about their father’s death.

At a gate outside the Houston neighborhood where the Bushes lived, residents on Saturday created a makeshift memorial by laying flowers before a U.S. flag.

“They weren’t just the president and former first lady, they were part of the neighborhood,” said Ellen Prelle, who added a poinsettia and remembered the former first couple as involved and caring.

At the G20 summit in Buenos Aires, German Chancellor Angela Merkel recalled visiting him in the White House. “He was the father or one of the fathers of German reunification and we will never forget that,” she said.

Bush served as president during the fall of the Berlin Wall in 1989.

“His ethos of public service was the guiding thread of his life and an example to us all,” said British Prime Minister Theresa May. “In navigating a peaceful end to the Cold War, he made the world a safer place for generations to come.”

Russian President Vladimir Putin said Bush “faithfully served his country all his life – with a gun in his hand during the war years and in high government roles in peacetime,” according to Russian state news agency TASS.

FILE PHOTO: U.S. President George H. W. Bush waves goodbye to U.S. Marines and members of the British 7th Armoured Brigade as they conclude a Thanksgiving Day visit with troops in the Saudi desert November 22, 1990. REUTERS/Rick Wilking/File Photo

EXTENSIVE POLITICAL RESUME

George Herbert Walker Bush, a Connecticut Yankee who came to Texas to be an oilman, died as the patriarch of a Republican political dynasty. He and George W. Bush were only the second father and son to hold the office of president, after John Adams (1797-1801) and John Quincy Adams (1825-1829).

His second son, Jeb, undertook his own campaign for the presidency in 2015 before dropping out. Bush’s father, Prescott Bush, was a U.S. senator from Connecticut.

Trump signed an order closing the federal government on Wednesday in a show of respect for Bush. The New York Stock Exchange and Nasdaq will also be closed on Wednesday in his honor.

Bush’s body will arrive at the U.S. Capitol on Monday and lie in state through Wednesday morning. The public will be able to line up to view Bush’s casket continuously from Monday evening until Wednesday morning.

Trump said the presidential plane will be flown to Houston to bring Bush’s body to Washington after Trump returns from Argentina. Bush’s body will be returned to Houston on Wednesday and a service will be held on Thursday at St. Martin’s Episcopal Church there.

Bush’s casket will then travel by train from nearby Spring, Texas to College Station. He will be buried on Thursday on the grounds of his presidential library at Texas A&M University, the school said. He will be buried in a family plot next to his late wife.

Bush had first sought the presidency in 1980, campaigning on experience gathered as a U.S. congressman from Texas, envoy to China, director of the Central Intelligence Agency, United Nations ambassador and chairman of the Republican National Committee.

Reagan, the former actor and California governor, vanquished Bush in the Republican primaries but chose him as his running mate, hoping Bush’s reputation as a moderate would balance his own hard, conservative image.

The high points of Bush’s presidency included the end of the Cold War, which brought the dissolution of the Soviet Union and its hold on former Eastern Bloc countries.

“He was the only one of the world leaders at the time (who) did so much to overcome communism and help Poland,” said Lech Walesa, the former head of Poland’s Solidarity trade union who led protests and strikes that shook communist rule in the 1980s.

“He will remain in hearts and memory forever,” Walesa said on Twitter.

Bush won a decisive victory in ousting Saddam’s Iraqi army from Kuwait, bringing him popularity at home, and made progress on Middle East peace. But Bush’s foreign affairs victories were overshadowed by a stagnant economy at home. He broke his “read my lips” pledge not to raise taxes and lost his 1992 re-election bid to Clinton, a Democrat.

Bush, who was born on June 12, 1924, in Milton, Massachusetts, grew up wealthy, attending elite schools but putting off college so he could enlist in the Navy at 18. He flew 58 missions off aircraft carriers in World War Two and survived being shot down over the Pacific Ocean.

After returning from the war, he married Barbara Pierce, with whom he would have six children. After he graduated from Yale University on an accelerated schedule, the Bushes headed to the oil fields of West Texas.

It was there that Bush became involved in politics, first losing a U.S. Senate race in 1964 before winning election to the U.S. House of Representatives in 1966.

After two terms and another failed Senate bid in 1970, he was appointed by President Richard Nixon as U.S. ambassador to the United Nations. In 1974, President Gerald Ford made him an envoy to China and later director of the CIA.

Bush did not endorse fellow Republican Trump, the eventual winner of the 2016 presidential election who attacked both Jeb and George W. Bush during his campaign. He did not publicly say whom he voted for in the election, but a source told CNN he went for Trump’s Democratic opponent, Hillary Clinton.

Bush did send Trump a letter in January 2017 saying he would not be able to attend his inauguration because of health concerns but wishing him the best.

(Reporting by Gary McWilliams in Houston; Bill Trott, David Morgan, David Shepardson and Humeyra Pamuk in Washington; Steve Gorman in Los Angeles; Roberta Rampton in Buenos Aires; Mark Heinrich in London; Andrew Osborn in Moscow; and Marcin Goclowski in Warsaw; Editing by Alistair Bell, Jonathan Oatis and Will Dunham)

Trump tastes election defeat but finds some wins at White House watch party

Sunset is seen over the White House, on the day of the U.S. midterm election, in Washington, D.C., U.S., November 6, 2018. REUTERS/Carlos Barria

By Steve Holland

WASHINGTON (Reuters) – By the time President Donald Trump and his team tucked into hamburgers and hot dogs at a White House election watch party on Tuesday night, he was ready for the bad news.

His closest aides tried to focus him on the positives.

Working on just a few hours’ sleep after a heavy final day of campaigning, Trump spent much of Tuesday on the phone, checking in with friends and advisers, talking to state and national Republican Party officials and White House aides to get a picture of what to expect.

What he heard from them was that Republicans would likely lose control of the House of Representatives but hang on to control of the Senate, adding seats to its majority there.

So when word came in that the projections were broadly correct, it did not come as a shock.

“It’s disappointing but it’s not surprising,” said Trump senior adviser Kellyanne Conway.

The House loss meant Trump will face investigations into his tax returns, his businesses and his administration by Democratic lawmakers. His legislative agenda, including a vague proposal for a middle-class income tax cut, is likely stalled.

At his watch party, Trump was upbeat. In his only public comment on Tuesday night, he tweeted: “Tremendous success tonight. Thank you to all!”

He followed up with a tweet on Wednesday morning taking credit for Republican wins.

“Those that worked with me in this incredible Midterm Election, embracing certain policies and principles, did very well. Those that did not, say goodbye! Yesterday was such a very Big Win, and all under the pressure of a Nasty and Hostile Media!,” Trump said.

In another message on Twitter, Trump said he had received congratulations “from foreign nations (friends) that were waiting me out, and hoping, on Trade Deals. Now we can all get back to work and get things done!” He did not name any countries.

BLAME FOR HOUSE SETBACKS

One Trump adviser said the president was probably not prepared for the onslaught of investigations that Democrats were likely to launch.

“I don’t think he fully comprehends what this means by giving the gavel to (Democratic House leader) Nancy Pelosi and her cronies,” the adviser said, asking to remain unidentified.

Some Trump advisers were already anonymously assigning blame for the expected loss of about 30 House seats, focusing on Corry Bliss, head of a political action committee that distributed money to House Republican candidates, and Republican National Committee Chair Ronna McDaniel.

There was also grousing about House Speaker Paul Ryan, who announced plans to resign at the end of the year instead of leaving sooner.

But there was some satisfaction among Trump and his aides that the losses were not as bad as had been projected by strategists who said a Democratic “blue wave” would take away 40 House seats.

The party that controls the White House usually loses seats in the first congressional midterm elections two years after a presidential victory. President Barack Obama’s Democrats lost 63 seats in 2010.

“Trump should be feeling good right now. They finished strong. They picked up seats in the Senate and they minimized the ‘blue wave’ in the House. These midterms are historically tough for a White House,” said Republican strategist Scott Reed.

Trump and his advisers felt that adding at least two seats to the Republicans’ Senate majority helped blunt the impact of the House outcome.

BURGERS AND BIG SCREENS

For Trump, the evening unfolded at a watch party in the White House residence, where the East Room and the State Dining Room were set up with large-screen TVs. Buffet tables were laden with some of Trump’s favorite foods.

The guest list included major donors Sheldon Adelson, Harold Hamm and Stephen Schwartzman, Cabinet members like Steven Mnuchin of Treasury and Kirstjen Nielsen of Homeland Security, evangelical leader Jerry Falwell, top aides like Conway, his wife Melania and children Ivanka, Eric and Donald Trump Jr., Ivanka’s husband Jared Kushner, and Vice President Mike Pence.

Cheers rang out among the guests when Republican victories were scored, particularly when Democrat Andrew Gillum conceded defeat in the Florida governor’s race.

Trump was described by aides as content in how he performed on the campaign trail, not prone to soul-searching, and believing his focus on illegal immigration – he warned of an “invasion” from a caravan of Central American migrants weaving through Mexico – had helped give his candidates a needed boost.

Trump held 30 get-out-the-vote rallies in the past two months, including 11 in the last six days across eight states, the last three on Monday when he returned to the White House about 3 a.m.

Aides said the president was delighted at the projected victories by Republican Senate candidates he had campaigned for, such as Marsha Blackburn of Tennessee, Rick Scott of Florida, Mike Braun of Indiana and Josh Hawley of Missouri, as well as Republican Brian Kemp’s victory in the Georgia governor’s race.

White House spokeswoman Sarah Sanders said Trump’s agenda remained the same, and that he would be willing to work with Democrats on immigration, the opioid crisis and funding infrastructure projects.

(Reporting by Steve Holland; Editing by Kieran Murray, Peter Cooney and Chizu Nomiyama)

Authorities probing suspicious packages sent to Hillary Clinton, Obama

Democratic U.S. presidential candidate Hillary Clinton stands onstage with her husband former President Bill Clinton (L) after speaking during her California primary night rally held in the Brooklyn borough of New York, U.S., June 7, 2016. REUTERS/Shannon Stapleton

By Makini Brice and Gabriella Borter

WASHINGTON/NEW YORK (Reuters) – Federal authorities are investigating suspicious packages sent to the White House, former U.S. President Barack Obama and former Democratic presidential candidate Hillary Clinton, the U.S. Secret Service and a person familiar with the matter said on Wednesday.

A suspicious package addressed to the White House was intercepted at an off-site facility, the source told Reuters.

The suspicious packages sent to the two top Democrats as well as a bomb sent to one of their major donors came roughly two weeks ahead of the high-stakes Nov. 6 election that will determine whether Republicans maintain control of Congress in a nation that has become deeply polarized.

The package to Clinton was found late Tuesday while the one addressed to Obama was found early Wednesday, both during routine mail screenings, the Secret Service said. Both Obama and Clinton were not at risk, they added.

The White House, in a statement, condemned the attempted attacks on Obama and Clinton.

“These terrorizing acts are despicable, and anyone responsible will be held accountable to the fullest extent of the law,” White House spokeswoman Sarah Sanders said. “The United States Secret Service and other law enforcement agencies are investigating and will take all appropriate actions to protect anyone threatened by these cowards.”

The FBI said it was investigating the packages.

“The packages were immediately identified during routine mail screening procedures as potential explosive devices and were appropriately handled as such,” the Secret Service said in a statement.

The package addressed to Clinton at her home in the New York suburb of Chappaqua was an explosive device, the New York Times reported.

The discovery of the packages came after a small bomb was found earlier this week at the home of billionaire liberal donor George Soros in the New York City suburb of Katonah, about 10 miles from the Clintons’ home.

“Nothing made it to their home,” Bill Clinton’s spokesman said in an email. A spokesman for Hillary Clinton referred queries to the Secret Service statement.

A spokeswoman for the Obamas declined to comment.

Chappaqua police said authorities in New Castle assisted the FBI, the Secret Service and Westchester County police with the investigation into the package sent to Clinton.

“The matter is currently under federal investigation,” the police said in a statement, referring questions to the FBI.

The device sent to Clinton was similar to the one found on Monday at Soros’ home, the Times reported, citing a law enforcement official.

(Reporting by Makini Brice and Steve Holland in Washington and Gabriella Borter in New York; Additional reporting by Subrat Patnaik in Bengaluru; Writing by Susan Heavey; Editing by Jeffrey Benkoe)

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)

Anniversary of fatal Charlottesville rally puts city, D.C. on edge

White nationalists participate in a torch-lit march on the grounds of the University of Virginia ahead of the Unite the Right Rally in Charlottesville, Virginia on August 11, 2017. Picture taken August 11, 2017. REUTERS/Stephanie Keith

By Joseph Ax and Makini Brice

(Reuters) – Joan Fenton knows she will not make much money at her Charlottesville gift shop this weekend when the downtown district will be virtually locked down for the anniversary of last year’s deadly white nationalist rally. But like many other owners, she will be open anyway.

“They want to be open in solidarity with the community,” Fenton said. “They feel that not being here is giving in to fear and terror.”

Officials in Charlottesville have vowed a massive police presence – with some 1,000 personnel assigned – to deter any violence.

The “Unite the Right” rally last August, called to protest the removal of a Confederate statue, turned the picturesque Virginia college town into a chaotic scene of street brawls, and one woman was killed when an Ohio man rammed his car into a crowd of counterprotesters.

The organizer of last year’s event, white nationalist Jason Kessler, was denied a permit in Charlottesville this year but has secured permission to hold a demonstration on Sunday in Washington, across the street from the White House.

Washington officials said on Thursday that police were ready for the rally as well as five planned counterprotests that could attract close to 2,000 people in all.

Officers will endeavor to keep the two sides separate, Metropolitan Police Chief Peter Newsham said. Guns will be prohibited from the demonstration area.

Larry Hogan, the Republican governor of neighboring Maryland, said on Friday that “hate has no place in our society,” and that he had directed state agencies to work with their counterparts in Washington and Virginia to ensure the safety of all citizens.

“As we face this invasion of vile and perverted ideology infesting our region, we stand united in our conviction that a diverse and inclusive Maryland is a stronger Maryland,” he said.

UNPRECEDENTED LOCKDOWN

Amid continuing controversy over President Donald Trump’s views on race, the events will likely revive memories of his comments after Charlottesville when he said both sides were to blame for the violence. The remarks sparked criticism from across the political spectrum as the Republican president refused to condemn the white nationalists.

In Charlottesville, officials have announced an unprecedented lockdown of the bustling downtown district. Vehicles are prohibited, and pedestrians will be allowed in at only two checkpoints, where police will confiscate contraband.

Prohibited items include everything from metal pipes and swords to fireworks and skateboards.

Guns, however, can still be legally carried. After last year’s violence, the city asked the state legislature to ban firearms from major public events, but the bill failed to advance.

It is not clear whether any white nationalists will come to Charlottesville this weekend, but officials said they were preparing for any contingency. Police were widely criticized after last year’s event, where some officers did not intervene to stop fistfights and other mayhem.

Virginia’s Democratic governor, Ralph Northam, pre-emptively declared a state of emergency on Wednesday, a procedural move that freed up additional resources.

Many business owners have said the plan is too restrictive and will cost them significant revenue on what would normally be a busy summer weekend. Merchants already suffered a downturn after last year’s event; sales tax revenue dropped 11 percent in September 2017 compared with the year before, according to city figures.

(Reporting by Joseph Ax in New York and Makini Brice in Washington; Editing by Cynthia Osterman and Jonathan Oatis)

Massive U.S. defense policy bill passes without strict China measures

U.S. Army soldiers carry a large U.S. flag as they march in the Veterans Day parade on 5th Avenue in New York November 11, 2014. REUTERS/Mike Segar

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. Senate passed a $716 billion defense policy bill on Wednesday, backing President Donald Trump’s call for a bigger, stronger military and sidestepping a potential battle with the White House over technology from major Chinese firms.

The Senate voted 87-10 for the John S. McCain National Defense Authorization Act or NDAA. The annual act authorizes U.S. military spending but is used as a vehicle for a broad range of policy matters as it has passed annually for more than 50 years.

Since it cleared the House of Representatives last week, the bill now goes to Trump, who is expected to sign it into law.

While the measure puts controls on U.S. government contracts with China’s ZTE Corp and Huawei Technologies Co Ltd because of national security concerns, the restrictions are weaker than in earlier versions of the bill.

This angered some lawmakers, who wanted to reinstate tough sanctions on ZTE to punish the company for illegally shipping products to Iran and North Korea.

In another action largely targeting China, the NDAA strengthens the Committee on Foreign Investment in the United States (CFIUS), which reviews proposed foreign investments to weigh whether they threaten national security.

Lawmakers from both parties have been at odds with the Republican Trump over his decision to lift his earlier ban on U.S. companies selling to ZTE, allowing China’s second-largest telecommunications equipment maker to resume business.

But with his fellow Republicans controlling both the Senate and House, provisions of the NDAA intended to strike back at Beijing and opposed by the White House were softened before Congress’ final votes on the bill.

Separately, the NDAA authorizes spending $7.6 billion for 77 F-35 Joint Strike Fighter jets, made by Lockheed Martin Corp.

And it would prohibit delivery of the advanced aircraft to fellow NATO member Turkey at least until after the production of report, another measure that was stricter in earlier versions of the bill.

U.S. officials have warned Ankara that a Russian missile defense system Turkey plans to buy cannot be integrated into the NATO air and missile defense system. They are also unhappy about Turkey’s detention of an American pastor.

The fiscal 2019 NDAA was named to honor McCain, the Armed Services Committee chairman, war hero, long-time senator and former Republican presidential nominee, who has been undergoing treatment for brain cancer.

(Reporting by Patricia Zengerle, additional reporting by Roberta Rampton; Editing by James Dalgleish and David Gregorio)

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