Dollar index holds near 14-year high

US Dollar

By Richard Leong

NEW YORK (Reuters) – The dollar was little changed on Monday versus a basket of currencies, holding near a 14-year peak buttressed by expectations of fiscal stimulus from U.S. President-elect Donald Trump and a faster pace of interest rate increases.

The greenback scaled back from its highest since early February against the yen as data that showed Japan’s export performance improved strongly in November spurred a burst of profit-taking.

The dollar, which has rallied since Trump’s win on Nov. 8, will likely trade in a tight range in coming days on dwindling liquidity, analysts said.

Profit-taking and lower U.S. Treasury yields <US2YT=RR> <US10YT=RR> would keep the greenback from rising further, they said.

“The dollar would be reasonably sideways between now and the end of the year,” said Jason Leinwand, founder and chief executive officer of FirstLine FX in Randolph, New Jersey.

The dollar index <.DXY> which measures the greenback versus the euro, yen and four other currencies, was up 0.03 percent at 102.98. On Dec. 15, it reached 103.56 which was its highest since Dec 2002.

Traders await a speech from Fed Chair Janet Yellen at 1:30 p.m. (1830 GMT) for possible hints that last week’s Fed meeting, where policy-makers signaled the central bank could increase interest rates three times in 2017, was interpreted by markets as more hawkish than had been intended. [FED/DIARY]

U.S. interest rates futures implied traders saw about a 46 percent chance the Fed would hike at least three times in 2017 with the next increase likely in June, according to CME Group’s FedWatch program. <FFM7> <FFZ7>

Prospects of more rate hikes supported bullish bets on the dollar. Data released on Friday showed dollar net long positions were little changed on Dec. 13. Net shorts on the yen rose to their largest since early December last year. [IMM/FX]

The Bank of Japan started a two-day policy meeting on Monday, at which it is expected to keep its 10-year government bond yield target <JP10YT=RR> as the weaker yen helps Japan’s economic prospects, a Reuters poll showed on Friday.

“The speed of the yen’s weakening was likely much faster than the BOJ anticipated,” said Ayako Sera, market economist at Sumitomo Mitsui Trust Bank in Tokyo.

The dollar was down almost 0.9 percent at 117.13 yen <JPY=> after climbing to 118.66 yen on Dec. 15 which was the highest since Feb. 2, according to Reuters data showed.

(In Dec 19 item, corrects spelling of last name to Leinwand, not Weinwand, in 5th paragraph)

(Additional reporting by Jemima Kelly in London and Tokyo markets team; Editing by Chizu Nomiyama)

U.S. ready to confront Beijing on South China Sea: admiral

Guided missile destroyer in South China Sea

By Colin Packham

SYDNEY (Reuters) – The United States is ready to confront China should it continue its overreaching maritime claims in the South China Sea, the head of the U.S. Pacific fleet said on Wednesday, comments that threaten to escalate tensions between the two global rivals.

China claims most of the resource-rich South China Sea through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

The United States has called on China to respect the findings of the arbitration court in The Hague earlier this year which invalidated its vast territorial claims in the strategic waterway.

But Beijing continues to act in an “aggressive” manner, to which the United States stands ready to respond, Admiral Harry Harris, head of the U.S. Pacific Command, said in a speech in Sydney.

“We will not allow a shared domain to be closed down unilaterally no matter how many bases are built on artificial features in the South China Sea,” he said. “We will cooperate when we can but we will be ready to confront when we must.”

The comments threaten to stoke tensions between the United States and China, already heightened by President-elect Donald Trump’s decision to accept a telephone call from Taiwan’s president on Dec. 2 that prompted a diplomatic protest from Beijing.

Asked about Harris’s remarks, Chinese Foreign Ministry spokesman Geng Shuang said the situation in the South China Sea was currently stable, thanks to the hard work of China and others in the region.

“We hope the United States can abide by its promises on not taking sides on the sovereignty dispute in the South China Sea, respect the efforts of countries in the region to maintain peace and stability in the South China Sea region and do more to promote peace and stability there,” he told a daily news briefing.

The United States estimates Beijing has added more than 3,200 acres (1,300 hectares) of land on seven features in the South China Sea over the past three years, building runways, ports, aircraft hangars and communications equipment.

In response, the United States has conducted a series of freedom-of-navigation operations in the South China Sea, the latest of which came in October.

The patrols have angered Beijing, with a senior Chinese official in July warning the practice may end in “disaster”.

Harris said it was a decision for the Australian government whether the U.S. ally should undertake its own freedom-of-navigation operations, but said the United States would continue with the practice.

“The U.S. fought its first war following our independence to ensure freedom of navigation,” said Harris. “This is an enduring principle and one of the reasons our forces stand ready to fight tonight.”

(Additional reporting by Ben Blanchard in Beijing; Editing by Lincoln Feast and Jacqueline Wong)

Exclusive: Top U.S. spy agency has not embraced CIA assessment on Russia hacking – sources

Padlock with the word hack, a representation of cyber attacks

By Mark Hosenball and Jonathan Landay

WASHINGTON (Reuters) – The overseers of the U.S. intelligence community have not embraced a CIA assessment that Russian cyber attacks were aimed at helping Republican President-elect Donald Trump win the 2016 election, three American officials said on Monday.

While the Office of the Director of National Intelligence (ODNI) does not dispute the CIA’s analysis of Russian hacking operations, it has not endorsed their assessment because of a lack of conclusive evidence that Moscow intended to boost Trump over Democratic opponent Hillary Clinton, said the officials, who declined to be named.

The position of the ODNI, which oversees the 17 agency-strong U.S. intelligence community, could give Trump fresh ammunition to dispute the CIA assessment, which he rejected as “ridiculous” in weekend remarks, and press his assertion that no evidence implicates Russia in the cyber attacks.

Trump’s rejection of the CIA’s judgment marks the latest in a string of disputes over Russia’s international conduct that have erupted between the president-elect and the intelligence community he will soon command.

An ODNI spokesman declined to comment on the issue.

“ODNI is not arguing that the agency (CIA) is wrong, only that they can’t prove intent,” said one of the three U.S. officials. “Of course they can’t, absent agents in on the decision-making in Moscow.”

The Federal Bureau of Investigation, whose evidentiary standards require it to make cases that can stand up in court, declined to accept the CIA’s analysis – a deductive assessment of the available intelligence – for the same reason, the three officials said.

The ODNI, headed by James Clapper, was established after the Sept. 11, 2001, attacks on the recommendation of the commission that investigated the attacks. The commission, which identified major intelligence failures, recommended the office’s creation to improve coordination among U.S. intelligence agencies.

In October, the U.S. government formally accused Russia of a campaign of cyber attacks against American political organizations ahead of the Nov. 8 presidential election. Democratic President Barack Obama has said he warned Russian President Vladimir Putin about consequences for the attacks.

Reports of the assessment by the CIA, which has not publicly disclosed its findings, have prompted congressional leaders to call for an investigation.

Obama last week ordered intelligence agencies to review the cyber attacks and foreign intervention in the presidential election and to deliver a report before he turns power over to Trump on Jan. 20.

The CIA assessed after the election that the attacks on political organizations were aimed at swaying the vote for Trump because the targeting of Republican organizations diminished toward the end of the summer and focused on Democratic groups, a senior U.S. official told Reuters on Friday.

Moreover, only materials filched from Democratic groups – such as emails stolen from John Podesta, the Clinton campaign chairman – were made public via WikiLeaks, the anti-secrecy organization, and other outlets, U.S. officials said.

“THIN REED”

The CIA conclusion was a “judgment based on the fact that Russian entities hacked both Democrats and Republicans and only the Democratic information was leaked,” one of the three officials said on Monday.

“(It was) a thin reed upon which to base an analytical judgment,” the official added.

Republican Senator John McCain said on Monday there was “no information” that Russian hacking of American political organizations was aimed at swaying the outcome of the election.

“It’s obvious that the Russians hacked into our campaigns,” McCain said. “But there is no information that they were intending to affect the outcome of our election and that’s why we need a congressional investigation,” he told Reuters.

McCain questioned an assertion made on Sunday by Republican National Committee Chairman Reince Priebus, tapped by Trump to be his White House chief of staff, that there were no hacks of computers belonging to Republican organizations.

“Actually, because Mr. Priebus said that doesn’t mean it’s true,” said McCain. “We need a thorough investigation of it, whether both (Democratic and Republican organizations) were hacked into, what the Russian intentions were. We cannot draw a conclusion yet. That’s why we need a thorough investigation.”

In an angry letter sent to ODNI chief Clapper on Monday, House Intelligence Committee Chairman Devin Nunes said he was “dismayed” that the top U.S. intelligence official had not informed the panel of the CIA’s analysis and the difference between its judgment and the FBI’s assessment.

Noting that Clapper in November testified that intelligence agencies lacked strong evidence linking Russian cyber attacks to the WikiLeaks disclosures, Nunes asked that Clapper, together with CIA and FBI counterparts, brief the panel by Friday on the latest intelligence assessment of Russian hacking during the election campaign.

(Editing by Yara Bayoumy and Jonathan Oatis)

U.S. court puts Obamacare case on hold until Trump takes office

President-elect Donald Trump

By Lawrence Hurley

WASHINGTON (Reuters) – A federal appeals court on Monday brought to an end President Barack Obama’s bid to overturn a ruling that threatens to gut his signature healthcare law by putting the case on hold until after President-elect Donald Trump, who aims to repeal Obamacare, takes office.

The Obama administration had appealed a judge’s May ruling favoring the challenge filed by Republicans in the U.S. House of Representatives against a key part of the 2010 law. But the U.S. Court of Appeals for the District of Columbia Circuit agreed to a request by the Republicans to delay its consideration of the government’s appeal until after Trump takes office on Jan. 20.

The Obama administration opposed the move.

If the law is repealed by Congress, the case would be moot. The court’s decision to put the case on hold will not have an immediate effect on the law, as the lower court ruling was put on hold pending the appeal. The court said both sides should provide an update on the status of the case by Feb. 21.

The challenge targeted government reimbursements to insurance companies to compensate them for reductions that the law required them to make to customers’ out-of-pocket medical payments.

Trump has said he favors repealing and replacing Obamacare but would consider retaining certain elements.

The law has enabled millions of previously uninsured Americans to obtain health insurance, but Republicans condemn Obamacare as a government overreach and have mounted a series of legal challenges.

The Obama administration appealed U.S. District Judge Rosemary Collyer’s ruling that the government cannot spend billions of dollars in federal funds without congressional approval to provide subsidies under the healthcare law to private insurers to help people afford medical coverage.

The House Republicans argued that the administration violated the U.S. Constitution because it is the legislative branch, not the executive branch, that authorizes government spending.

The Obama administration has interpreted the provision as a type of federal spending that does not need to be explicitly authorized by Congress.

The U.S. Supreme Court in 2012 and 2015 issued major rulings authored by conservative Chief Justice John Roberts that preserved Obamacare and rejected conservative challenges.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

With Dakota denial, outlook for U.S. pipelines turns murky

People celebrate the temporary win of the North Dakota Pipeline

By Liz Hampton

HOUSTON (Reuters) – The U.S. Army’s denial of an easement for the Dakota Access Pipeline, after permitting and legal obligations were followed, sets an uncertain precedent for new projects despite President-elect Donald Trump’s promise to support energy infrastructure.

The decision came after months of protests by the Standing Rock Sioux tribe and others who said the line could desecrate tribal grounds, or a spill could contaminate drinking water.

While most of the 1,172-mile (1,885-km) pipeline is complete, Energy Transfer Partners, the line’s owner, needed an easement from the U.S. Army Corps of Engineers (USACE) to drill under Lake Oahe. The lake, a water source formed by a dam on the Missouri River, has been the focus of protesters.

The Army’s intervention sets an unsettling precedent, analysts and industry groups told Reuters, because Energy Transfer had undergone the necessary environmental reviews and permitting processes to move ahead with construction.

“I think it sends a horrible signal to anyone wanting to invest in a project and I strongly suspect those policies will be discontinued on Jan. 20th,” said Brigham McCown, the former head of the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) under George W. Bush, referring to the inauguration of President-elect Donald Trump.

Still, the decision to deny the easement tempers some of the optimism pipeline companies assumed following the election of Trump, who is seen as more supportive of oil and gas projects.

Energy Transfer Partners said in a statement the decision was politically motivated and it did not intend to reroute the line.

(For graphic on the Dakota Access Pipeline, click http://tmsnrt.rs/2cqkRJ7)

DELAYS &amp; RISING COSTS

Beyond the federal approval issues, state and local governments have also mobilized against pipelines. Earlier this year, Georgia’s state legislature passed a bill to restrict pipeline developments, stopping a gasoline line from Florida to South Carolina from being built.

Energy Transfer chief executive Kelcy Warren, a donor to Trump’s campaign, said his election was a positive. Last week Trump for the first time voiced support for the Dakota Access project.

Trump has also said he would support TransCanada Corp’s Keystone XL, which the Obama Administration rejected last year.

Denying permits for an already-approved pipeline adds a new level of uncertainty to projects. Oil companies have already been facing growing resistance from environmental groups that have resulted in delays or unanticipated costs.

Equipment used for the Dakota Access line has been set on fire, and in October, a group of protesters turned off valves on pipelines transporting oil from Canada to the United States. Together, those lines had capacity to move some 2.8 million barrels per day of oil.

“Until you see that Trump has a track record of approving things and showing that things can get built in time, it’s tough to say it’s not a murky environment for pipelines,” said Sarp Ozkan, manager of energy analytics for Drillinginfo.

That means pipelines could face higher risk premiums and have a harder time getting volume commitments from shippers that underpin such projects, Ozkan said.

Energy Transfer has said it expects to lose almost $84 million each month the Dakota Access pipeline is delayed, and that losing shippers could result in its cancellation, according to a court filing.

“I think midstream companies will hope that each project can be decided based on necessary permitting approvals, but there will be increased risk where agencies like USACE are involved,” said Sandy Fielden, director of research in commodities and energy at Morningstar.

While the Standing Rock Sioux have said they would support a rerouting of the line, others, such as the Indigenous Environmental Network (IEN), want it canceled.

“Given Trump’s support of the Dakota Access, and the Keystone XL, we remain cautious,” said Dallas Goldtooth, a spokesman for IEN.

(Reporting by Liz Hampton in Houston; Editing by Tom Hogue)

Netanyahu to discuss ‘bad’ Iran deal with Trump, Kerry stresses settlements

Benjamin Netanyahu

By Jeffrey Heller and Arshad Mohammed

JERUSALEM/WASHINGTON (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Sunday he would discuss with Donald Trump the West’s “bad” nuclear deal with Iran after the U.S. president-elect enters the White House.

Speaking separately to a conference in Washington, Netanyahu and U.S. Secretary of State John Kerry clashed over the Iran deal and Israel’s settlement construction on the occupied West Bank, which Kerry depicted as an obstacle to peace.

During the U.S. election campaign, Trump, a Republican, called last year’s nuclear pact a “disaster” and “the worst deal ever negotiated”. He has also said it would be hard to overturn an agreement enshrined in a U.N. resolution.

“Israel is committed to preventing Iran from acquiring nuclear weapons. That has not changed and will not change. As far as President-elect Trump, I look forward to speaking to him about what to do about this bad deal,” Netanyahu told the Saban Forum, a conference on the Middle East, in Washington, via satellite from Jerusalem. Trump takes office on Jan. 20.

Netanyahu has been a harsh critic of the nuclear deal, a legacy foreign policy achievement for Democratic President Barack Obama. But he had largely refrained from attacking the pact in recent months as Israeli and U.S. negotiators finalised a 10-year, $38 billion military aid package for Israel.

Before the nuclear agreement, Netanyahu, a conservative, strained relations with the White House by addressing the U.S. Congress in 2015 and cautioning against agreeing to the pact.

The Obama administration promoted the deal as a way to suspend Tehran’s suspected drive to develop atomic weapons. In return, Obama agreed to lift most sanctions against Iran. Tehran denies ever having considered developing nuclear arms.

Under the deal, Iran committed to reducing the number of its centrifuges by two-thirds, capping its level of uranium enrichment well below the level needed for bomb-grade material, reducing its enriched uranium stockpile from around 10,000 kg to 300 kg for 15 years, and submitting to international inspections to verify its compliance.

“The problem isn’t so much that Iran will break the deal, but that Iran will keep it because it just can walk in within a decade, and even less … to industrial-scale enrichment of uranium to make the core of an arsenal of nuclear weapons,” Netanyahu told the forum.

‘NO, NO, NO AND NO’

Appearing later in person, Kerry defended the deal, arguing its monitoring provisions provided the ability to detect any significant uptick in Iran’s nuclear programs, “in which case every option that we have today is available to us then.”

Kerry pushed Israel to rein in construction of Jewish settlements on West Bank land it occupied in a 1967 war that the Palestinians want for a state. He also bluntly rejected the idea advanced by some Israelis that Israel might make a separate peace with Arab nations that share its concerns about Iran.

“No, no, no and no,” Kerry said. “There will be no advance and separate peace with the Arab world without the Palestinian process and Palestinian peace.”

On settlements, Kerry said: “There’s a basic choice that has to be made by Israelis … and that is, are there going to be continued settlements … or is there going to be separation and the creation of two states?”

The central issues to be resolved in the conflict include borders between Israel and a future Palestinian state, the future of Jewish settlements in the West Bank, which most nations regard as illegal, the fate of Palestinian refugees and the status of Jerusalem.

(Additional reporting by Larry King; Editing by Peter Cooney)

Obama, trying to protect legacy, unlikely to act on Mideast peace

President Obama and Benjamin Netanyahu

By Arshad Mohammed and Matt Spetalnick

WASHINGTON (Reuters) – U.S. President Barack Obama, keen to preserve his legacy on domestic health care and the Iran nuclear deal, is not expected to make major moves on Israeli-Palestinian peace before leaving office, U.S. officials said on Thursday.

One official, who spoke on condition of anonymity, said the last word on the president’s failed peace effort might come from Secretary of State John Kerry at an appearance on Sunday at an annual Middle East conference in Washington.

Obama’s aides are wary of being seen picking a fight with Donald Trump at a time when he hopes to persuade the Republican President-elect to preserve parts of his legacy, including the Iran nuclear deal, Obamacare and the opening to Cuba.

While Obama has yet to present his final decision, several officials said he had given no sign that he intended to go against the consensus of his top advisers, who have mostly urged him not to take dramatic steps, a second official said.

“There is no evidence that there is any muscle behind (doing) anything,” said a third official.

Putting new pressure on Israel could be seen as a vindictive parting shot by Obama at Israeli Prime Minister Benjamin Netanyahu, the first official said, noting they have had a testy relationship.

There is concern that Trump, in response, might over-react in trying to demonstrate his own pro-Israel credentials, for example by moving the U.S. Embassy to Jerusalem from Tel Aviv, a step that would enrage Palestinians and create an international furor.

Officials said Obama has weighed enshrining his own outline for a deal in a U.N. Security Council resolution that would live on after he gives way to Trump on Jan. 20. Another idea was to give a speech laying out such parameters.

These options appear to have lost steam.

Kerry, who led the last round of peace talks that collapsed in 2014, appears on Sunday at the Saban Forum conference of U.S., Israeli and Arab officials.

Officials could not rule out that Obama might also talk about Israeli-Palestinian diplomacy before he leaves office. The White House and the Israeli embassy declined comment.

The central issues to be resolved in the conflict include borders between Israel and a future Palestinian state, the fate of Jewish settlements in the West Bank, which most nations regard as illegal, the fate of Palestinian refugees and the status of Jerusalem.

Israeli officials remain concerned that Obama and his aides have not explicitly ruled out some kind of last-ditch U.S. action, either at the United Nations or in another public forum.

U.S. officials said Obama could also have his hand forced, notably if another nation like France put forward a U.N. Security Council resolution condemning Israeli settlement activity as illegal or illegitimate, daring Washington to veto it as it did a similar French-proposed resolution in 2011.

U.S. ambassador to Israel Dan Shapiro, asked if Washington would again veto a French proposal, told Israel’s Army Radio: “We will always oppose unilateral proposals.”

He added: “If there is something more balanced, I cannot guess what the response will be.”

(Additional reporting by Jeffrey Heller in Jerusalem; Editing by Yara Bayoumy and James Dalgleish)

FBI to gain expanded hacking powers as Senate effort to block fails

Password on Computer Screen

By Dustin Volz

WASHINGTON (Reuters) – A last-ditch effort in the Senate to block or delay rule changes that would expand the U.S. government’s hacking powers failed Wednesday, despite concerns the changes would jeopardize the privacy rights of innocent Americans and risk possible abuse by the incoming administration of President-elect Donald Trump.

Democratic Senator Ron Wyden attempted three times to delay the changes, which will take effect on Thursday and allow U.S. judges will be able to issue search warrants that give the FBI the authority to remotely access computers in any jurisdiction, potentially even overseas. His efforts were blocked by Senator John Cornyn of Texas, the Senate’s second-ranking Republican.

The changes will allow judges to issue warrants in cases when a suspect uses anonymizing technology to conceal the location of his or her computer or for an investigation into a network of hacked or infected computers, such as a botnet.

Magistrate judges can currently only order searches within the jurisdiction of their court, which is typically limited to a few counties.

In a speech from the Senate floor, Wyden said that the changes to Rule 41 of the federal rules of criminal procedure amounted to “one of the biggest mistakes in surveillance policy in years.”

The government will have “unprecedented authority to hack into Americans’ personal phones, computers and other devices,” Wyden said.

He added that such authority, which was approved by the Supreme Court in a private vote earlier this year, but was not subject to congressional approval, was especially troubling in the hands of an administration of President-elect Trump, a Republican who has “openly said he wants the power to hack his political opponents the same way Russia does.”

Democratic Senator Chris Coons of Delaware and Republican Senator Steve Daines of Montana also delivered speeches voicing opposition to the rule changes.

The U.S. Justice Department has pushed for the changes to the federal rules of criminal procedure for years, arguing they are procedural in nature and the criminal code needed to be modernized for the digital age.

In an effort to address concerns, U.S. Assistant Attorney General Leslie Caldwell wrote a blog post this week arguing that the benefits given to authorities from the rule changes outweighed any potential for “unintended harm.”

“The possibility of such harm must be balanced against the very real and ongoing harms perpetrated by criminals – such as hackers, who continue to harm the security and invade the privacy of Americans through an ongoing botnet, or pedophiles who openly and brazenly discuss their plans to sexually assault children,” Caldwell wrote.

A handful of judges in recent months had dismissed evidence brought as part of a sweeping FBI child pornography sting, saying the search warrants used to hack suspects’ computers exceeded their jurisdiction.

The new rules are expected to make such searches generally valid.

Blocking the changes would have required legislation to pass both houses of Congress, then be signed into law by the president.

(Reporting by Dustin Volz, editing by G Crosse)

Assad, allies aim to seize all Aleppo before Trump takes power

A Syrian government soldier gestures a v-sign under the Syrian national flag near a general view of eastern Aleppo after they took control of al-Sakhour neigbourhood in Aleppo, Syria

By Laila Bassam and Ellen Francis

BEIRUT (Reuters) – The Syrian army and its allies aim to seize all eastern Aleppo from rebels by the time U.S. President-elect Donald Trump takes office in January, sticking by a Russian-backed timeline for the operation after big gains in recent days, a senior official in the military alliance fighting in support of Damascus said.

The official who declined to be identified in order to speak freely indicated however that the next phase of the Aleppo campaign could be more difficult as the army and its allies seek to capture more densely populated areas of the city.

The rebels have lost more than a third of the area they held in eastern Aleppo in the last few days of a government assault that has killed hundreds of people and uprooted thousands more. For the rebels, it is one of the gravest moments of the war.

Rebels meanwhile fought fiercely to stop government forces advancing deeper into the opposition-held enclave on Tuesday, confronting pro-Assad militias who sought to move into the area from the southeast, a rebel official said.

The attack on eastern Aleppo threatens to snuff out the most important urban center of the revolt against President Bashar al-Assad, who has been firmly on the offensive for more than a year thanks to Russian and Iranian military support.

Capturing rebel-held eastern Aleppo would be the biggest victory to date for Assad in the conflict that has killed hundreds of thousands of people since it arose out of protests against his rule nearly six years ago.

As Russia and Iran have stuck steadfastly by Assad, the rebels say their foreign backers including the United States have left them to their fate in their besieged enclave of eastern Aleppo, Syria’s biggest city before the civil war.

 

Syrian government soldiers walk near a general view of eastern Aleppo after they took control of al-Sakhour neigbourhood in Aleppo,

Syrian government soldiers walk near a general view of eastern Aleppo after they took control of al-Sakhour neigbourhood in Aleppo, Syria in this handout picture provided by SANA on November 28, 2016. SANA/Handout via REUTERS

Government forces backed by Shi’ite militias from Iran, Lebanon and Iraq punched into the rebel-held area from the northeast last week. The senior, pro-Assad official said the rebel lines had collapsed more quickly than expected.

“The Russians want to complete the operation before Trump takes power,” said the official, repeating a previous timetable which pro-Damascus sources had said was drawn up to mitigate the risks of any shift in U.S. policy towards the war in Syria.

Trump has indicated that he may abandon support for Syrian rebels who have received military aid from states including the United States, Turkey, Saudi Arabia and Qatar, and could even cooperate with Russia against Islamic State in the country.

He will be inaugurated as president on January 20.

The United States has offered aid including military support to some rebel groups under President Barack Obama, though the rebels have always said this backing has fallen well short of what they need against better armed government forces.

THE WEST “CAN’T DO ANYTHING”

The rebel official said the outgoing U.S. administration was paying little attention to Syria. Assad and his allies were “trying to exploit the current circumstances, unfortunately, and the Western states can’t do anything”, he said.

France, another backer of the opposition, called for an immediate U.N. Security Council meeting to discuss Aleppo.

“More than ever before, we need to urgently put in place means to end the hostilities and to allow humanitarian aid to get through unhindered,” French Foreign Minister Jean-Marc Ayrault said in a statement.

Russia has consistently blocked attempts by Western states to take action in the Security Council against Damascus.

A bomb hangs on a parachute while falling over the rebel-held besieged al-Qaterji neighbourhood of Aleppo, Syria.

A bomb hangs on a parachute while falling over the rebel-held besieged al-Qaterji neighbourhood of Aleppo, Syria. REUTERS/Abdalrhman Ismail

Accounts from eastern Aleppo, where the United Nations says at least 250,000 civilians are trapped with no access to the outside world, point to a dire humanitarian situation. People have been forced to scavenge in the garbage for food as aid supplies have run out, and all the hospitals in eastern Aleppo have been repeatedly bombed.

The civil defense rescue service that operates in eastern Aleppo said on Monday it had nearly run out fuel to power the equipment it has been using to pull people from the rubble of bombed-out buildings.

Pummeled by air strikes, artillery and ground attacks, the rebels were forced on Monday to withdraw to more defensible lines along a highway that runs through Aleppo, hoping that it would be harder for the government side to make further gains.

The rebel official with one of the main Aleppo rebel groups said the opposition fighters had managed to stabilize new frontlines, but were fighting to stop pro-government militias that sought to advance from the south.

FIERCE BATTLES

“There is no progress but the bombardment and battles remain fierce, particularly in Aziza” in southeastern Aleppo, said the official with the Jabha Shamiya rebel group, which fights under the Free Syrian Army banner. “Yesterday evening there was a big mobilization by Iranian militias in Aziza,” the official added.

The government and its allies gradually besieged the rebel-held sector of Aleppo this year before abandoning a ceasefire to launch a fierce assault in September.

The latest fighting has forced thousands to flee. Some have crossed the frontline to government-held areas, others have sought refuge in a Kurdish-controlled part of the city, and many more have fled deeper into the remaining rebel-held area.

Air strikes on Bab al-Nairab, a district in the rebel-held area, killed at least 10 people and left dozens more wounded or missing, the Syrian Observatory for Human Rights and the civil defense rescue service said. The Syrian military could not be reached for comment.

The civil defense said government planes struck as people were trying to flee the neighborhood on foot, killing 25.

The United Nations humanitarian chief and relief coordinator said up to 16,000 people had been displaced in eastern Aleppo.

The U.N. envoy for Syria, Staffan de Mistura, said he could not say how long eastern Aleppo would hold out.

“Clearly, I cannot deny – this is a military acceleration and I can’t tell you how long eastern Aleppo will last,” he told the European Parliament.

Russia said that the army’s breakthrough in Aleppo had dramatically altered the situation on the ground, allowing more than 80,000 civilians to access humanitarian aid after years of what it described as being used by militants as human shields.

“During the last 24 hours, thanks to very well-prepared and careful actions, Syrian soldiers were able to radically change the situation,” Major-General Igor Konashenkov, a defense ministry spokesman, said in a statement.

“Practically half of the territory occupied by rebels in recent years in the eastern part of Aleppo has been completely liberated.”

A medic in eastern Aleppo who gave his name as Abu al-Abbas said however there was “intense fear of collective annihilation”.

“This week I’ve changed locations three times,” he added, speaking on Monday using a social networking site. “In the shelter, we had dead people who we couldn’t take out because the bombardment was so intense,” he said.

(Additional reporting by Tom Perry and Angus McDowall in Beirut, Suleiman al-Khalidi in Amman, Andrew Osborn and Katya Golubkova in Moscow, John Irish in Paris, Stephanie Nebehay and Tom Miles in Geneva; writing by Tom Perry; editing by Peter Graff)

U.S. protesters march against Trump presidency for fifth day

Protests on Las Vegas Strip

By Alexander Besant

NEW YORK (Reuters) – Demonstrators in major U.S. cities took to the streets on Sunday for a fifth straight day to protest President-elect Donald Trump, whose campaign manager said President Barack Obama and Democrat Hillary Clinton should do more to support a peaceful transition.

Following several nights of unrest, crowds of people marched in parks in New York City, San Francisco and Oakland, California, according to social media.

A few thousand joined a march at the south end of Manhattan’s Central Park, beginning at a Trump property on Columbus Circle and walking toward the real estate mogul’s skyscraper headquarters less than a mile (1.6 km) away.

They chanted: “Say it loud, say it clear, immigrants are welcomed here,” and held signs such as “White silence = violence” and “Don’t mourn, organize.”

One protester said demonstrators were reclaiming what the American flag he was holding stood for.

“The flag means freedom of speech, freedom of religion, equal protection under the law and other values like diversity, respecting differences, freedom of assembly and freedom of the press,” said Daniel Hayman, 31, of Seattle, who was in New York for work. “We’re trying to reclaim the flag and push forward those values.”

Thousands in several cities have demonstrated since the results from Tuesday’s election showed Trump, a Republican, lost the popular tally but secured enough votes in the 538-member Electoral College to win the presidency, surprising the world.

Largely peaceful demonstrators in urban areas have said Trump threatens their civil and human rights. They have decried Trump’s often inflammatory campaign rhetoric about illegal immigrants, Muslims and women, as well as allegations, which he denies, that the former reality TV star sexually abused women.

Dozens have been arrested, including 71 in Portland, Oregon, on Saturday night, according to police, and a handful of police injured.

‘LET’S MAKE WAVES’

In San Francisco on Sunday, about 1,000 people marched through Golden Gate Park toward a beach where they chanted: “Let’s make waves.” They held signs such as “I resist racism” and “Down with the Trumps.”

Across the bay in Oakland, thousands of protesters joined a festival-like atmosphere, holding peace signs and blowing soap bubbles in the sunshine. Many had brought their children, aiming to hold hands around the 3.4-mile (5.5-km) circumference of Lake Merritt in a popular urban park.

Civil rights groups have monitored violence against U.S. minorities since Trump’s win, citing reports of attacks on women in Islamic head scarves, of racist graffiti and of bullying of immigrant children. They have called on Trump to denounce the attacks.

Trump said he was ‘so saddened’ to hear of instances of violence by some of his supporters against minorities, according to a transcript released on Sunday of an interview with the CBS program ’60 Minutes.’

‘THIS MAN IS OUR PRESIDENT’

Kellyanne Conway, Trump’s campaign manager, said on Fox News on Sunday that she was sure many of the protesters were paid professionals, although she offered no proof.

Suggesting a double standard, Conway said on NBC’s “Meet the Press” that if Clinton had won the election and Trump supporters had protested, “people would be freaking out that his supporters were not accepting election results.”

“It’s time really for President Obama and Secretary Clinton to say to these protesters: ‘This man is our president,'” she said.

Republican House of Representatives Speaker Paul Ryan told CNN on Sunday that protests were protected by the First Amendment as long as they were peaceful.

Neither Obama nor Clinton has called for an end to the protests. Obama told Trump at the White House on Thursday that he was going to help Trump succeed, “because if you succeed, then the country succeeds.”

Clinton told supporters at a New York hotel on Wednesday: “Donald Trump is going to be our president. We owe him an open mind and the chance to lead.”

Trump on Sunday attacked the New York Times for coverage he said was “very poor and highly inaccurate.”

“The @nytimes sent a letter to their subscribers apologizing for their BAD coverage of me. I wonder if it will change – doubt it?” Trump wrote on Twitter.

The newspaper published a letter in Sunday’s editions from publisher Arthur Sulzberger and executive editor Dean Baquet, not apologizing, but thanking readers for their loyalty and asking how news outlets underestimated Trump’s support.

The Times plans to “hold power to account, impartially and unflinchingly” during the Trump presidency, they wrote.

(Additional reporting by Alana Wise in Washington, Beck Diefenbach in San Francisco and Noah Berger in Oakland, Calif.; Writing by David Ingram; Editing by James Dalgleish and Peter Cooney)