Kremlin says almost all dialogue with U.S. frozen: RIA

Kremlin spokesman

MOSCOW/WASHINGTON (Reuters) – The Kremlin said on Wednesday almost all communications channels between Russia and the United States have been frozen but the U.S. State Department disputed that statement.

Kremlin spokesman Dmitry Peskov said Russia did not expect the incoming U.S. administration to quickly reject enlargement of the North Atlantic Treaty Organization and that almost all communication with the United States had ceased, according to Russia’s RIA news agency.

U.S. President-elect Donald Trump questioned during his election campaign whether the U.S. should protect allies seen as spending too little on defense, raising fears he could withdraw funding for NATO at a time of heightened tensions with Moscow. Russia has said it would take countermeasures in response to any expansion of the 28-member military alliance.

“Almost every level of dialogue with the United States is frozen,” RIA quoted Peskov as saying. “We don’t communicate with one another, or (if we do) we do so minimally.”

State Department spokesman John Kirby quickly rejected Peskov’s statement.

‎”It’s difficult to know exactly what is meant by this comment, but diplomatic engagement with Russia continues across a wide range of issues,” Kirby said in an emailed statement to Reuters. “That we have significant differences with Moscow on some of these issues is well known, but there hasn’t been a break in dialogue.”

U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov spoke by phone on Tuesday regarding the situation in Syria, Kirby said.

Separately, the Pentagon said it had held a video conference with counterparts at the Russian defense ministry to ensure the two sides’ air operations do not come into conflict with each other in Syria. Such discussions with Russia are held regularly as U.S. warplanes conduct daily air strikes against Islamic State in Syria.

RIA, citing an interview it said Peskov gave to Russia’s Mir TV station, quoted him as saying he did not know whether President Vladimir Putin would seek re-election in 2018.

“Everyone’s heads are aching because of work and with projects and nobody is thinking or talking about elections,” Peskov said.

Most Kremlin-watchers expect Putin to run for the presidency again.

(Reporting by Peter Hobson in Moscow and Yeganeh Torbati and Lesley Wroughton in Washington; Editing by Andrew Osborn and Richard Chang)

Trump wins U.S. Electoral College vote

U.S. President-elect Donald Trump gestures as he speaks during a USA Thank You Tour event in Mobile, Alabama,

By Eric M. Johnson and Jon Herskovitz

SEATTLE/AUSTIN, Texas (Reuters) – Republican Donald Trump prevailed in U.S. Electoral College voting on Monday to officially win election as the next president, easily dashing a long-shot push by a small movement of detractors to try to block him from gaining the White House.

Trump, who is set to take office on Jan. 20, garnered more than the 270 electoral votes required to win, even as at least half a dozen U.S. electors broke with tradition to vote against their own state’s directives, the largest number of “faithless electors” seen in more than a century.

The Electoral College vote is normally a formality but took on extra prominence this year after a group of Democratic activists sought to persuade Republicans to cross lines and vote for Democratic nominee Hillary Clinton. She won the nationwide popular vote even as she failed to win enough state-by-state votes in the acrimonious Nov. 8 election.

Protesters briefly disrupted Wisconsin’s Electoral College balloting. In Austin, Texas, about 100 people chanting: “Dump Trump” and waving signs reading: “The Eyes of Texas are Upon You” gathered at the state capitol trying to sway electors.

In the end, however, more Democrats than Republicans went rogue, underscoring deep divisions within their party. At least four Democratic electors voted for someone other than Clinton, while two Republicans turned their backs on Trump.

With nearly all votes counted, Trump had clinched 304 electoral votes to Clinton’s 227, according to an Associated Press tally of the voting by 538 electors across the country.

“I will work hard to unite our country and be the President of all Americans,” Trump said in a statement responding to the results.

The Electoral College assigns each state electors equal to its number of representatives and senators in Congress. The District of Columbia also has three electoral votes. The votes will be officially counted during a joint session of Congress on Jan. 6.

When voters go to the polls to cast a ballot for president, they are actually choosing a presidential candidate’s preferred slate of electors for their state.

‘FAITHLESS ELECTORS’

The “faithless electors” as they are known represent a rare break from the tradition of casting an Electoral College ballot as directed by the outcome of that state’s popular election.

The most recent instance of a “faithless elector” was in 2004, according to the Congressional Research Service. The practice has been very rare in modern times, with only eight such electors since 1900, each in a different election.

The two Republican breaks on Monday came from Texas, where the voting is by secret ballot. One Republican elector voted for Ron Paul, a favorite among Libertarians and former Republican congressman, and another for Ohio Governor John Kasich, who challenged Trump in the race for the Republican nomination.

Republican elector Christopher Suprun from Texas had said he would not vote for Trump, explaining in an op-ed in the New York Times that he had concerns about Trump’s foreign policy experience and business conflicts.

On the Democratic side, it appeared to be the largest number of electors not supporting their party’s nominee since 1872, when 63 Democratic electors did not vote for party nominee Horace Greeley, who had died after the election but before the Electoral College convened, according to Fairvote.org. Republican Ulysses S. Grant had won re-election in a landslide.

Four of the 12 Democratic electors in Washington state broke ranks, with three voting for Colin Powell, a former Republican secretary of state, and one for Faith Spotted Eagle, a Native American elder who has protested oil pipeline projects in the Dakotas.

Bret Chiafalo, 38, of Everett, Washington, was one of three votes for Powell. He said he knew Clinton would not win but believed Powell was better suited for the job than Trump.

The founding fathers “said the electoral college was not to elect a demagogue, was not to elect someone influenced by foreign powers, was not to elect someone who is unfit for office. Trump fails on all three counts, unlike any candidate we’ve ever seen in American history,” Chiafalo said in an interview.

‘GREAT ANGST’

Washington’s Democratic governor, Jay Inslee, said after the vote that the Electoral College system should be abolished. “This was a very difficult decision made this year. There is great angst abroad in the land,” Inslee said.

Twenty-four states have laws trying to prevent electors – most of whom have close ties to their parties – from breaking ranks.

In Maine, Democratic elector David Bright first cast his vote for Clinton’s rival for the party nomination, Senator Bernie Sanders of Vermont, who carried the state in the party nominating contest. His vote was rejected, and he voted for Clinton on a second ballot.

In Hawaii, one of the state’s four Democratic electors cast a ballot for Sanders in defiance of state law binding electors to the state’s Election Day outcome, according to reports from the Los Angeles Times and Honolulu Star-Advertiser newspapers.

In Colorado, where a state law requires electors to cast their ballots for the winner of the state’s popular vote, elector Michael Baca tried to vote for Kasich – but was replaced with another elector.

In Minnesota, one of the state’s 10 electors would not cast his vote for Clinton as required under state law, prompting his dismissal and an alternate to be sworn in. All 10 of the state’s electoral votes were then cast for her.

(Additional reporting by Tom Hals in Wilmington, Del., Keith Coffman and Rick Wilking in Denver, and Roberta Rampton, David Morgan and Julia Harte in Washington; Editing by Alistair Bell and Peter Cooney)

U.S. housing starts tumble from nine-year high

A carpenter works on a new home at a residential construction site in the west side of the Las Vegas Valley in Las Vegas

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. homebuilding fell more than expected in November, tumbling from a nine-year high as construction activity declined broadly, which could prompt further downward revisions to fourth-quarter economic growth estimates.

Groundbreaking on new housing projects dropped 18.7 percent to a seasonally adjusted annual rate of 1.09 million units, the Commerce Department said on Friday. Last month’s percentage decline was the largest in nearly two years.

Housing starts data is very volatile month-to-month.

There were, however, some silver linings in the report. October’s starts were revised up to a 1.34 million-unit rate, the highest since July 2007. In addition, building permits for single-family homes, the largest segment of the market, rose to a nine-year high in November.

Economists had forecast housing starts slipping to a 1.23 million-unit rate last month from October’s previously reported 1.32 million pace. Coming on the heels of data this week showing weak retail sales and industrial production in November, the plunge in groundbreaking activity could result in fourth-quarter gross domestic product forecasts being trimmed again.

The Atlanta Federal Reserve is forecasting GDP rising at a 2.4 percent annualized rate in the fourth quarter after increasing at a brisk 3.2 percent rate in the third quarter.

U.S. Treasury debt prices rose on the data, while the dollar was little changed against a basket of currencies.

Starts fell in all four regions last month. October’s surge in homebuilding had widened the gap between permits and starts. As such, a drop in housing starts was widely anticipated to bring them more in line with permits.

The housing market remains on solid ground even as mortgage rates have jumped to more than two-year highs following the election of Donald Trump as the next president.

A survey on Thursday showed homebuilders’ confidence in December hitting its highest level since July 2005, with builders anticipating strong sales.

Trump’s surprise victory last month led to a surge in U.S. government bond yields amid investor concerns that the business mogul’s proposed expansionary fiscal policy agenda could fan inflation. Mortgage rates closely track movements in U.S. Treasury yields.

Since the Nov. 8 presidential election, the fixed 30-year mortgage rate has increased about 60 basis points to average 4.16 percent in the week ending Dec. 15, the highest since October 2014, according to data from mortgage finance firm Freddie Mac.

Last month, single-family home building, which accounts for the largest share of the residential housing market, fell 4.1 percent to an 828,000-unit pace. Single-family starts rose to a nine-year high in October.

The housing market is being supported by a tightening labor market, which is starting to drive up wages.

Housing starts for the volatile multi-family segment tumbled 45.1 percent to a 262,000-unit pace.

Permits for future construction fell 4.7 percent in November. Single-family permits rose 0.5 percent last month to their highest level since November 2007. Building permits for multi-family units dropped 13.0 percent.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

McConnell will not give timeline for Obamacare replacement

U.S. Senate Majority Leader Mitch McConnell (R-KY) participates in a ceremony to unveil a portrait honoring retiring Senate Minority Leader Harry Reid (D-NV) on Capitol Hill in Washington, U.S.

By Patricia Zengerle

WASHINGTON (Reuters) – U.S. Senate Majority Leader Mitch McConnell said on Monday the Senate will move to repeal President Barack Obama’s healthcare law shortly after Jan. 1, but declined to give a timeline for a plan to replace it.

McConnell said the Senate would vote as soon as it returns from its year-end recess to repeal Obamacare. “And then we will work expeditiously to come up with a better program than current law, because current law is simply unacceptable and not sustainable,” he said.

Asked repeatedly, McConnell did not give any timeline for when the Republicans would offer their own plan. He said they would be consulting with different “stakeholders.”

Donald Trump’s election as U.S. president last month means Republicans will control the White House, Senate and House of Representatives in 2017. The new Congress goes to work on Jan. 3; Trump will be sworn in on Jan. 20.

Republicans in both the Senate and House of Representatives say they want to repeal Obamacare early in 2017.

But Republicans have not agreed on how quickly the Obamacare repeal should go into effect. A delay would give them time to work on a replacement, instead of throwing millions of Americans out of their health insurance with no substitute.

(Reporting by Patricia Zengerle; Editing by Chizu Nomiyama and Matthew Lewis)

Looking ahead to Trump presidency, Netanyahu refocusses on Iran

Israel's Prime Minister Benjamin Netanyahu participates in a forum hosted by the Center for American Progress in Washington November

By Jeffrey Heller

JERUSALEM (Reuters) – Israel’s Benjamin Netanyahu has resumed his attacks on a nuclear deal with Iran, seeking Donald Trump’s help to smash a cornerstone of the Obama administration’s foreign policy legacy.

Following up on remarks he made this month to a Washington think tank, the conservative Israeli prime minister said on CBS’s “60 Minutes” on Sunday “there are ways, various ways of undoing” last year’s accord.

The Republican president-elect is also no fan of the deal between Iran and six world powers under which Tehran agreed to suspend a suspected drive to develop atomic weapons in return for a lifting of most sanctions against it.

During the U.S. election campaign, Trump called the pact – against which Netanyahu lobbied long and hard – a “disaster” and “the worst deal ever negotiated”. But he has also said it would be hard to overturn an agreement enshrined in a U.N. resolution.

Asked if he had any ideas on how to unravel the deal, Netanyahu said on the television program: “Yeah, I have about five things in my mind”. Pressed for specifics, he said: “I’ll talk about it with President Trump.”

That discussion will likely take place soon after Trump’s Jan. 20 inauguration. Shortly after the election, Netanyahu said he and Trump had agreed to meet at the first opportunity.

Scrapping the deal would, at the very least, be complicated.

“It’s difficult to see the advantage for the U.S. in abrogating the deal at this stage,” said Jacob Parakilas, an expert on U.S. foreign policy at Chatham House, a London-based think tank.

“It would be nearly impossible to convince Europe, Russia and China to restore their sanctions on Iran in the absence of clear evidence of Iranian violations of the deal. So any sanctions the U.S. restored would have much less impact on the Iranian economy,” he said.

Yair Lapid, an Israeli opposition leader, said he doubted whether the deal could be undone given “the Chinese, Russians and Europeans are already in Iran signing deals”, and he said any discussion on it should take place “behind closed doors”.

In the run-up to Trump’s inauguration, Netanyahu has been laying the groundwork for a closer relationship with Trump.

The two met in September on the sidelines of the U.N. General Assembly in New York, when the Israeli leader also held talks with Democratic presidential candidate Hillary Clinton. A week after the election, Netanyahu sent his U.S. ambassador, Ron Dermer, to see the president-elect and his transition team.

Dermer hailed Trump as “a true friend of Israel”.

CHEMISTRY

Netanyahu has used similar language to describe Obama, but the superlatives have done little to mask a lack of personal chemistry and a relationship strained by policy differences over Iran and Jewish settlement on occupied land.

In recent months, however, Netanyahu had largely refrained from attacking the Iran deal as Israel finalised a 10-year, $38 billion military aid package with the Obama administration.

Nearly a year ago, the commander of Israel’s armed forces, Lieutenant-General Gadi Eisenkot, offered a nuanced view of a deal that Netanyahu had dubbed a historic mistake. The agreement, Eisenkot said in a speech, presented many risks but also “many opportunities”.

Trump, himself, could also face opposition from within his new administration to cancelling the Iran deal.

James Mattis, the former general who Trump said he intends to nominate as secretary of defence, has called for strict enforcement of the agreement but stopped short of calling for its abrogation.

“It may be possible in time to build up support for a multilateral restoration of sanctions,” Parakilas said. “But at the moment that’s just not really the case – and ending U.S. participation in the deal right now would make it more, not less, difficult.”

Last year, before the agreement was signed, Netanyahu angered the White House by addressing the U.S. Congress, where he argued that the deal would pave Iran’s path to nuclear arms.

Three years earlier, he famously held up a cartoon bomb at the United Nations, drawing a red line just below a label reading “final stage” to a nuclear device.

But Netanyahu seemed to backtrack in the interview.

Asked if Iran, which has denied seeking atomic weapons, would move quickly towards a bomb if the agreement was undone, Netanyahu said that was not the case prior to its signing.

“I think Iran didn’t rush to the bomb before there was a deal,” he said.

“Really?” his questioner asked.

“No, because they were afraid of retribution,” Netanyahu said.

(Editing by Luke Baker and Alison Williams)

U.S. senators urge Trump to take tough line on Russia over Ukraine

U.S. Senator Richard Durbin (D-IL) (C) talks with reporters after the weekly Democratic caucus policy luncheon at the U.S. Capitol in Washington, U.S.

By Patricia Zengerle

WASHINGTON (Reuters) – A bipartisan group of 27 U.S. senators sent a letter to President-elect Donald Trump on Thursday urging him to take a tough line against Russia over what they termed its “military land grab” in Ukraine.

The letter, whose 12 Republican and 15 Democratic signatories included some leading foreign policy voices from Trump’s Republican party, was an early sign that lawmakers will publicly assert themselves on international matters where they disagree with his White House.

The New York property developer becomes president on Jan. 20.

Trump signaled during his campaign that he might take a softer line in dealings with Moscow, repeatedly praising Russian President Vladimir Putin’s leadership. Putin said recently Trump confirmed to him that he was willing to mend ties.

“In light of Russia’s continued aggression and repeated refusal to respect Ukraine’s territorial integrity and sovereign right to choose its own destiny, we also renew our call for the United States to increase political, economic and military support for Ukraine,” said the letter, led by Senators Richard Durbin, a Democrat, and Rob Portman, a Republican, who are co-chairmen of the Senate Ukraine caucus.

In the letter, seen by Reuters before its public release, the senators also said they believe Russia’s annexation of Crimea should not be accepted and the United States should not lift sanctions imposed on Russia for its behavior in eastern Ukraine.

President Barack Obama and Putin have had a challenging relationship, with stark differences over Russia’s actions in Ukraine and Syria. Tensions have risen more with Obama’s Democratic Party in particular over cyber attacks attributed to Russia during the U.S. presidential election.

Among Republican senators who signed the letter were John McCain, chairman of the Senate Armed Services Committee, and Lindsey Graham, head of the appropriations subcommittee that oversees the State Department.

A majority of Republicans and Democrats on the Senate Foreign Relations Committee, including ranking Democrat Ben Cardin, signed the letter. Jack Reed, the top Democrat on Senate Armed Services, also did so.

(Reporting by Patricia Zengerle; Editing by Leslie Adler and Alistair Bell)

Putin curbs anti-Western rhetoric, says wants to get on with Trump

Russian President Vladimir Putin delivers a speech during his annual state of the nation address at the Kremlin in Moscow, Russia,

By Katya Golubkova and Denis Pinchuk

MOSCOW (Reuters) – President Vladimir Putin struck an unusually conciliatory tone in his annual state of the nation address on Thursday, saying Moscow wanted to get on with the incoming U.S. administration and was looking to make friends not enemies.

Putin has used previous set-piece speeches to lash out at the West and the United States in particular, but he reined in his criticism this time round and focused most of his speech on domestic social and economic issues.

“We don’t want confrontation with anyone. We don’t need it. We are not seeking and have never sought enemies. We need friends,” Putin told Russia’s political elite gathered in one of the Kremlin’s grandest halls.

“We are ready to cooperate with the new U.S. administration. We have a shared responsibility to ensure international security.”

Any U.S.-Russia co-operation would have to be mutually beneficial and even-handed, he said.

Putin has spoken previously of his hope that U.S. President-elect Donald Trump may help restore tattered U.S.-Russia relations, and analysts said he was unlikely to want to dial up anti-Western rhetoric before Trump’s inauguration in January.

The Russian leader said he was hoping to find common ground with Washington on fighting global terrorism in particular.

That was a reference to Syria where Moscow is backing President Bashar al-Assad, while the outgoing U.S. administration has supported anti-Assad rebels.

Russia hopes Trump will give Russia a freer hand there and cooperate militarily to fight Islamic State.

Putin’s tone may have been softer than usual, but he still made it clear that Russia would continue to robustly stand up for its own interests.

Complaining about what he said were “myths” about Russian aggression and Russian meddling in other countries’ elections, he said Moscow wanted to independently decide its own fate.

“We will build our future without advice from anyone else,” said Putin.

The main target of Putin’s speech appeared to be the Russian people though.

His message was that the worst of a grinding economic crisis was in the past and that it was now time to focus on improving living standards by investing more heavily in education and health.

The next presidential election takes place in 2018, and though he has not said yet if he will seek another term, Putin is widely expected to run.

(Additional reporting by Andrey Kuzmin, Maria Tsvetkova, Andrey Ostroukh, Polina Devitt, Maria Kiselyova, Dasha Korsunskaya; Writing by Andrew Osborn; Editing by Christian Lowe)

Iran warns of retaliation if U.S. breaches nuclear deal

Iran Supreme Leader

By Bozorgmehr Sharafedin

BEIRUT (Reuters) – Extending U.S. sanctions on Iran for 10 years would breach the Iranian nuclear agreement, Iran Supreme Leader Ayatollah Khamenei said on Wednesday, warning that Tehran would retaliate if the sanctions are approved.

The U.S. House of Representatives re-authorized last week the Iran Sanctions Act, or ISA, for 10 years. The law was first adopted in 1996 to punish investments in Iran’s energy industry and deter Iran’s pursuit of nuclear weapons.

The Iran measure will expire at the end of 2016 if it is not renewed. The House bill must still be passed by the Senate and signed by President Barack Obama to become law.

Iran and world powers concluded the nuclear agreement, also known as JCPOA, last year. It imposed curbs on Iran’s nuclear program in return for easing sanctions that have badly hurt its economy.

“The current U.S. government has breached the nuclear deal in many occasions,” Khamenei said, addressing a gathering of members of the Revolutionary Guards, according to his website.

“The latest is extension of sanctions for 10 years, that if it happens, would surely be against JCPOA, and the Islamic Republic would definitely react to it.”

The U.S. lawmakers passed the bill one week after Republican Donald Trump was elected U.S. president. Republicans in Congress unanimously opposed the agreement, along with about two dozen Democrats, and Trump has also criticized it.

Lawmakers from both parties said they hoped bipartisan support for a tough line against Iran would continue under the new president.

President-elect Trump once said during his campaign that he would “rip up” the agreement, drawing a harsh reaction from Khamenei, who said if that happens, Iran would “set fire” to the deal.

The House of Representatives also passed a bill last week that would block the sale of commercial aircraft by Boeing <BA.N> and Airbus <AIR.PA> to Iran.

The White House believes that the legislation would be a violation of the nuclear pact and has said Obama would veto the measure even if it did pass the Senate.

(Reporting by Bozorgmehr Sharafedin, editing by Larry King)

Dow hits record high as financial stocks rise

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S.,

By Tanya Agrawal

(Reuters) – The Dow Jones Industrial average opened at a record high on Monday, driven by financial stocks, after the index capped off its best week since 2011 following Donald Trump’s unexpected victory in the U.S. presidential election.

Since Trump’s triumph last Tuesday, investors have been betting on his campaign promises to simplify regulation in the health and financial sectors and boost spending on infrastructure.

The financial index rose 2.18 percent to its highest level since 2008. Goldman Sachs and JPMorgan provided the biggest boost to both the S&P 500 and the Dow.

The Nasdaq Composite was little changed, weighed down by tech giants Apple, Facebook and Microsoft.

Stock markets around the world were affected by a continued selloff in the global bond market as investors looked for more clarity regarding Trump’s policies.

The risk of faster domestic inflation and wider budget deficits if Trump goes on a spending binge sent yields on U.S. Treasury and other benchmark global bonds higher. The dollar index surged to an 11-month high.

Yields on the U.S. 10-year Treasury notes climbed to their highest since January on Monday at 2.30 percent, while 30-year paper shot above 3 percent.

“The bond market could subject the Trump rally to a halt,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

“The prospect of higher inflation due to higher fiscal spending under the Trump administration has caused bonds to sell off and while higher inflation is good for the U.S. economy in the long run, it is seen as a negative factor in the short term because this market is used to near zero interest rates.”

At 9:45 a.m. EDT the Dow Jones industrial average was up 44.14 points, or 0.23 percent, at 18,891.8.

The S&P 500 was up 2.23 points, or 0.1 percent, at 2,166.68.

The Nasdaq Composite was down 0.67 points, or 0.01 percent, at 5,236.44.

Six of the 11 major S&P sectors were lower, with the utilities index’s 0.93 percent fall leading the decliners.

A host of U.S. Federal Reserve officials are scheduled to make appearances on Monday, including Dallas Fed President Rob Kaplan, Richmond Fed President Jeffrey Lacker and San Francisco Fed President John Williams.

The central bank is widely expected to raise interest rates at its December meeting, with traders pricing in an 81 percent chance, according to CME Group’s FedWatch tool.

Fed Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates.

Oil prices were at around three-month lows as the prospect of another year of oversupply and weak prices overshadowed chances that OPEC would reach a deal to cut output. [O/R]

Harman International rose 25.5 percent to $109.99 after Samsung Electronics announced an $8 billion deal to buy the company.

Mentor Graphics surged as much as 18.9 percent to a record high of $36.50 after Siemens agreed to buy the company in a $4.5 billion deal.

Advancing issues outnumbered decliners on the NYSE by 1,503 to 1,281. On the Nasdaq, 1,654 issues rose and 822 fell.

The S&P 500 index showed 65 new 52-week highs and two new lows, while the Nasdaq recorded 291 new highs and 10 new lows.

(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)

Victorious Trump arrives in Washington for Obama meeting

U.S. President Barack Obama delivers a statement the morning after Donald Trump was elected as the next U.S. president in Washington,

By Jeff Mason and Steve Holland

WASHINGTON (Reuters) – U.S. President Barack Obama will host President-elect Donald Trump at the White House on Thursday to take the first public step in a transition of power after a bitterly fought election campaign that ended with the Republican businessman’s surprise victory.

The two men have had almost no one-on-one contact previously. Trump led the “birther” movement that questioned Obama’s U.S. citizenship and has pledged to overturn the Democrat’s signature policy achievements after he takes office on Jan. 20

Obama campaigned vigorously for Trump’s Democratic rival, former Secretary of State Hillary Clinton, and called Trump both temperamentally unfit for the presidency and dangerously unprepared to have access to U.S. nuclear codes.

They will seek to put that history behind them, at least for the cameras, during a meeting in the Oval Office at 11 a.m. (12.00 p.m. ET.) First lady Michelle Obama will also meet privately with Trump’s wife, Melania, in the White House residence.

Trump’s private plane, emblazoned with his surname on the side, landed at Washington’s Reagan National Airport after a short flight from New York.

On Wednesday, Obama said that despite his major differences with the New York real estate magnate, he would follow the lead of former Republican President George W. Bush in 2008 and ensure a smooth handover to Trump.

“Eight years ago, President Bush and I had some pretty significant differences, but President Bush’s team could not have been more professional or more gracious in making sure we had a smooth transition,” Obama said. “So I have instructed my team to follow the example that President Bush’s team set.”

Trump spent Wednesday focusing on that transition during meetings with his staff at Trump Tower in New York.

While Democratic politicians in Washington were urging cooperation with the newly-elected president, anti-Trump demonstrators across the United States late on Wednesday were showing no sign of conciliation.

“Not my president,” shouted hundreds in New York. Demonstrators sat down on a highway interchange in Los Angeles blocking traffic and 1,800 people in Chicago chanted “No Trump! No KKK! No racist USA” outside the Trump International Hotel and Tower.

Republican Chris Christie, who is leading Trump’s transition team, on Thursday told NBC’s “Today” program, “We heard a lot about the peaceful transfer of power during this election, and I think you’ll see that symbolized today.”

During the campaign Trump hinted that he might not accept the result if he lost to Clinton.

Asked whether Trump would apologize to the president for questioning his birthplace and legitimacy, the New Jersey governor, who could end up with a job in the Trump administration, said the controversy was just politics, adding: “They have a lot more important things to talk about.”

After taking office, Trump will enjoy Republican majorities in both chambers of the U.S. Congress that could help him implement his legislative agenda and scrap or roll back Obama policies that he dislikes, such as the “Obamacare” healthcare law, the nuclear deal with Iran and U.S. participation in the Paris agreement to fight global warming.

TRANSITION OF POWER

White House spokesman Josh Earnest said Obama would brief Trump about the benefits of those policies during their meeting.

Trump said after his victory that he would work to heal the divisions set off by the bitter campaign. Clinton urged her disappointed supporters to give Trump an “open mind” and Obama said he was rooting for his successor.

The White House has laid out its plan to ensure a smooth transition, including giving representatives selected by Trump briefings on the work of U.S. federal agencies.

Trump and his senior aides will also start to receive daily briefings by U.S. intelligence officials, the White House said. The Obama administration also plans two “interagency exercises” for Trump’s team aimed at handling and responding “to major domestic incidents.”

Later on Thursday, Trump will hold separate meetings with the Republican leaders in Congress, U.S. House of Representatives Speaker Paul Ryan and Senate Majority Leader Mitch McConnell.

Ryan and Trump shared a strained relationship during the campaign, although they both ultimately said they supported each other. McConnell also kept a distance from Trump for most of the campaign.

Trump and Ryan will “discuss how they can hit the ground running in a Trump administration” at the meeting, which will also include Vice President-elect Mike Pence, according to a Republican source.

Pence, who served in the House, is expected to be a conduit between U.S. lawmakers and Trump, who has never before held public office. Vice President Joe Biden will hold a separate meeting with Pence at the White House on Thursday.

(Additional reporting by Susan Heavey and Susan Cornwell; Editing by Peter Cooney and Alistair Bell)