Trump will hold White House news conference on coronavirus on Wednesday

WASHINGTON (Reuters) – U.S. President Donald Trump said he will hold a news conference on the coronavirus at 6 p.m. (2300 GMT) on Wednesday, as infections surge globally and U.S. health officials urge Americans to prepare for it to spread in the United States.

(Reporting by Makini Brice and Susan Heavey; Editing by Andrew Heavens)

After raucous welcome in India, Trump clinches $3 billion military equipment sale

By Steve Holland and Aftab Ahmed

NEW DELHI (Reuters) – U.S. President Donald Trump said on Tuesday that India will buy $3 billion worth of military equipment, including attack helicopters, as the two countries deepen defense and commercial ties in an attempt to balance the weight of China in the region.

India and the United States were also making progress on a big trade deal, Trump said. Negotiators from the two sides have wrangled for months to narrow differences on farm goods, medical devices, digital trade and new tariffs.

Trump was accorded a massive reception in Indian Prime Minister Narendra Modi’s home state on Monday, with more than 100,000 people filling into a cricket stadium for a “Namaste Trump” rally.

On Tuesday, Trump sat down for one-on-one talks with Modi followed by delegation-level meetings to try and move forward on issues that have divided them, mainly the festering trade dispute.

After those meetings, Trump said his visit had been productive with the conclusion of deals to buy helicopters for the Indian military. India is buying 24 SeaHawk helicopters from Lockheed Martin equipped with Hellfire missiles worth $2.6 billion and also plans a follow-on order for six Apache helicopters.

India is modernizing its military to narrow the gap with China and has increasingly turned to the United States over traditional supplier, Russia.

Trump said the two countries were also making progress on a trade deal, which had been an area of growing friction between them.

“Our teams have made tremendous progress on a comprehensive trade agreement and I’m optimistic we can reach a deal that will be of great importance to both countries,” said Trump in remarks made alongside Modi.

The two countries had initially planned to produce a “mini deal”, but that proved elusive.

Instead both sides are now aiming for a bigger package, including possibly a free trade agreement.

Trump said he also discussed with Modi, whom he called his “dear friend”, the importance of a secure 5G telecoms network in India, ahead of a planned airwaves auction by the country.

The United States has banned Huawei, arguing the use of its kit creates the potential for espionage by China – a claim denied by Huawei and Beijing – but India, where telecoms companies have long used network gear from the Chinese firm, is yet to make a call.

Trump described Monday’s rally in Ahmedabad and again praised Modi and spoke of the size of the crowd, claiming there were “thousands of people outside trying to get in..

“I would even imagine they were there more for you than for me, I would hope so,” he told Modi. “The people love you…every time I mentioned your name, they would cheer.”

In New Delhi, Trump was given a formal state welcome on Tuesday at the red sandstone presidential palace with a 21-cannon gun salute and a red coated honor guard on horseback on a smoggy day.

HUG GETS TIGHTER

India is one of the few big countries in the world where Trump’s personal approval rating is above 50% and Trump’s trip has got wall-to-wall coverage with commentators saying he had hit all the right notes on his first official visit to the world’s biggest democracy.

They were also effusive in their praise for Modi for pulling off a spectacular reception for Trump.

“Modi-Trump hug gets tighter,” ran a headline in the Times of India.

But in a sign of the underlying political tensions in India, violent protests broke out in Delhi on Monday over a new citizenship law that critics say discriminates against Muslims and is a further attempt to undermine the secular foundations of India’s democracy. They say the law is part of a pattern of divisiveness being followed by Modi’s Hindu nationalist Bharatiya Janata Party.

At least 7 people were killed and about 150 injured in the clashes that took place in another part of the capital, away from the center of the city where Modi is hosting Trump.

In his speech on Monday, Trump extolled India’s rise as a stable and prosperous democracy as one of the achievements of the century. “You have done it as a tolerant country. And you have done it as a great, free country,” he said.

Delhi has also been struggling with high air pollution and on Tuesday the air quality was moderately poor at 193 on a government index that measures pollution up to a scale of 500. The WHO considers anything above 60 as unhealthy.

(Reporting by Steve Holland, Aftab Ahmed, Neha Dasgupta; Writing by Sanjeev Miglani Editing by Raju Gopalakrishnan)

U.S. Supreme Court skeptical of law against encouraging illegal immigration

By Andrew Chung

WASHINGTON (Reuters) – U.S. Supreme Court justices on Tuesday signaled skepticism toward a federal law that made it a felony to encourage illegal immigrants to come or stay in the United States as they heard a bid by President Donald Trump’s administration to revive the measure after it was struck down by a lower court.

The nine justices heard arguments in the administration’s appeal after the San Francisco-based 9th U.S. Circuit Court of Appeals invalidated the law as a violation of the U.S. Constitution’s First Amendment guarantee of free speech.

Conservative and liberal justices alike expressed concern that the decades-old law may be too broad, repeatedly pressing the administration about what kind of speech could be criminalized.

Chief Justice John Roberts, a conservative, asked whether it would be illegal for a grandmother to tell a grandchild who was in the United States unlawfully, “I encourage you to stay.” Other justices wondered about the work of lawyers or charities and whether their speech could be impaired.

The case involves Evelyn Sineneng-Smith, a U.S. citizen who ran an immigration consultancy in San Jose, California, and was convicted of violating the law.

It is one of a number of immigration-related appeals the Supreme Court is handling during its term that ends in June. The justices in November heard Trump’s bid to rescind a program that protects from deportation hundreds of thousands of young people known as “Dreamers” who were brought to the United States illegally as children.

Trump has made restricting both legal and illegal immigration a centerpiece of his presidency and his re-election bid this year.

Sineneng-Smith was convicted in 2013 of violating the law, which bars inducing or encouraging an illegal immigrant to “come to, enter or reside” in the United States, including for financial gain. She also was convicted of mail fraud, and was sentenced to 18 months in prison and three years of supervised release.

A federal grand jury in 2010 charged Sineneng-Smith, accusing her of making money by duping illegal migrants into paying her to file frivolous visa applications while remaining in the country indefinitely. Her business primarily served Filipinos who worked as home healthcare providers.

The 9th Circuit in 2018 ruled that the law must be struck down because it is overly broad, prompting the Trump administration’s appeal to the Supreme Court.

The administration said the law is not meant to catch protected speech, but rather to stop people who would facilitate or solicit illegal immigration and enrich themselves by doing so.

The law threatens anything that could inspire or embolden illegal immigrants, including the thousands of messages of support for Dreamers that flooded the internet after the justices heard arguments in that case last November, the Electronic Frontier Foundation, a civil rights group, said in a court filing.

(Reporting by Andrew Chung; Editing by Will Dunham)

Assange tried to call White House, Hillary Clinton over data dump, his lawyer says

By Michael Holden

LONDON (Reuters) – Julian Assange tried to contact Hillary Clinton and the White House when he realized that unredacted U.S. diplomatic cables given to WikiLeaks were about to be dumped on the internet, his lawyer told his London extradition hearing on Tuesday.

Assange is being sought by the United States on 18 counts of hacking U.S. government computers and an espionage offense, having allegedly conspired with Chelsea Manning, then a U.S. soldier known as Bradley Manning, to leak hundreds of thousands of secret documents by WikiLeaks almost a decade ago.

On Monday, the lawyer representing the United States told the hearing that Assange, 48, was wanted for crimes that had endangered people in Iraq, Iran and Afghanistan who had helped the West, some of whom later disappeared.

U.S. authorities say his actions in recklessly publishing unredacted classified diplomatic cables put informants, dissidents, journalists and human rights activists at risk of torture, abuse or death.

Outlining part of his defense, Assange’s lawyer Mark Summers said allegations that he had helped Manning to break a government password, had encouraged the theft of secret data and knowingly put lives in danger were “lies, lies and more lies”.

He told London’s Woolwich Crown Court that WikiLeaks had received documents from Manning in April 2010. He then made a deal with a number of newspapers, including the New York Times, Britain’s Guardian and Germany’s Der Spiegel, to begin releasing redacted parts of the 250,000 cables in November that year.

A witness from Der Spiegel said the U.S. State Department had been involved in suggesting redactions in conference calls, Summers said.

However, a password that allowed access to the full unredacted material was published in a book by a Guardian reporter about WikiLeaks in February 2011. In August, another German newspaper reported it had discovered the password and it had access to the archive.

PEOPLE’S LIVES “AT RISK”

Summers said Assange attempted to warn the U.S. government, calling the White House and attempting to speak to then- Secretary of State Clinton, saying “unless we do something, people’s lives are put at risk”.

Summers said the State Department had responded by suggesting that Assange call back “in a couple of hours”.

The United States asked Britain to extradite Assange last year after he was pulled from the Ecuador embassy in London, where he had spent seven years holed up avoiding extradition to Sweden over sex crime allegations which have since been dropped.

Assange has served a prison sentence in Britain for skipping bail and remains jailed pending the U.S. extradition request

Supporters hail Assange as an anti-establishment hero who revealed governments’ abuses of power, and argue the action against him is a dangerous infringement of journalists’ rights. Critics cast him as a dangerous enemy of the state who has undermined Western security.

(Reporting by Michael Holden; Editing by Gareth Jones)

U.S. says Iran may have suppressed ‘vital details’ on coronavirus outbreak

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Tuesday said the United States was “deeply concerned” Iran may have covered up details about the spread of coronavirus, and he called on all nations to “tell the truth” about the epidemic.

“The United States is deeply concerned by information indicating the Iranian regime may have suppressed vital details about the outbreak in that country,” Pompeo told reporters, as he also criticized Beijing for what he characterized as the censorship of media and medical professionals.

“All nations, including Iran, should tell the truth about the coronavirus and cooperate with international aid organizations,” he said.

Iran’s coronavirus death toll rose to 16 on Tuesday, the highest outside China, increasing its international isolation as nations from South Korea to Italy accelerated emergency measures to curb the epidemic’s global spread.

Believed to come from wildlife in Wuhan city late last year, the flu-like disease has infected 80,000 people and killed 2,663 in China. But the World Health Organization (WHO) says the epidemic there has peaked and has been declining since Feb. 2.

Beijing last week revoked the credentials of three Wall Street Journal correspondents over a column China said was racist, and the United States has said it was considering a range of responses to their expulsion.

Pressed on what steps the Trump administration might take, Pompeo declined to provide any details beyond saying a broad range of options were on the table.

“Expelling our journalists exposes once again the government’s issue that led to SARS and now the coronavirus – namely censorship. It can have deadly consequences,” Pompeo said, referring to the 2002-2003 outbreak of severe acute respiratory syndrome.

“If China permitted its own and foreign journalists and medical personnel to speak and investigate freely, Chinese officials and other nations would have been far better prepared to address the challenge” of coronavirus, he added.

Pompeo said that despite the coronavirus epidemic, the United States planned to move forward and host a special meeting with the 10-member Association of Southeast Asian Nations (ASEAN) in Las Vegas in March.

(Reporting by Humeyra Pamuk; Writing by Tim Ahmann; Editing by Chizu Nomiyama and Paul Simao)

Rate futures surge as coronavirus seen pushing Fed to ease

(Reuters) – U.S. interest rates futures surged to their highest levels since last fall as a global sell-off in stocks and panicked buying of government bonds fueled growing expectations that the Federal Reserve will soon be forced to respond with interest rate cuts.

The fed funds futures contract tied to the Fed’s July policy meeting reflected a probability of more than 80% that the central bank’s benchmark overnight lending rate would be at least a quarter percentage point lower after that meeting’s conclusion. It currently stands at 1.50%-1.75% after three rate cuts last year.

The moves come as Italy, South Korea and Iran all reported sharp increases in the number of coronavirus infections.

(Reporting By Dan Burns; Editing by Alex Richardson)

Trump says U.S. may give farmers more money until trade deals ‘kick in’

Trump: U.S. may give farmers more aid until trade deals ‘kick in’
WASHINGTON (Reuters) – The United States may give American farmers additional money until trade deals with China, Mexico, Canada and other countries fully go into effect, President Donald Trump said on Friday.

“If our formally targeted farmers need additional aid until such time as the trade deals with China, Mexico, Canada and others fully kick in, that aid will be provided by the federal government,” Trump wrote in a Twitter post entirely in capital letters.

It was not immediately clear how large the aid package would be or how long it would last.

The Trump administration set aside a $16 billion aid package to farmers in 2019, and $12 billion a year earlier. In January, Agriculture Secretary Sonny Perdue said farmers should not expect another bailout package in 2020.

Trump is seeking re-election in the Nov. 3 presidential election. Farmers form a key part of his electoral base, but they have been badly bruised by low commodity prices and Trump’s tit-for-tat tariff dispute with China.

The White House declined to comment. The Department of Agriculture and the U.S. Trade Representative’s office did not immediately respond to requests for comment.

Last month, Trump signed a trade deal with Canada and Mexico into law, along with a separate Phase 1 accord with China that went into effect in mid-February.

Canada has not yet ratified the deal and experts had been skeptical that China, which had pledged to increase its purchases of U.S. goods by $200 billion over two years, would be able to meet the goal even before a coronavirus outbreak hit the country’s imports and exports.

(Reporting by Makini Brice; editing by Susan Heavey and Bernadette Baum)

‘Historic’ U.S.-Taliban pact to be signed soon, says Taliban leader

KABUL (Reuters) – The Taliban’s deputy leader said the group would soon sign a agreement with the United States to reduce violence for seven days, adding that militant commanders were “fully committed” to observing the “historic” accord.

“That we today stand at the threshold of a peace agreement with the United States is no small milestone,” Sirajuddin Haqqani wrote in an opinion piece in the New York Times, in the first significant public statement by a Taliban leader on the accord for a week-long reduction in violence (RIV).

The agreement in principle, which was struck during negotiations between U.S. and Taliban representatives in Qatar, could lead to a withdrawal of American troops from Afghanistan.

“Achieving the potential of the agreement, ensuring its success and earning lasting peace will depend on an equally scrupulous observance by the United States of each of its commitments,” wrote Haqqani, who is also head of the Pakistan-linked Haqqani Network.

Clashes between Afghan forces and Taliban fighters have continued, but Afghanistan’s acting interior minister said on Tuesday an agreement to cut violence would be enforced within five days.

Haqqani also addressed fears about Afghanistan becoming once again a springboard for Islamist militants, calling such concerns “inflated.”

Writing about how women’s rights in Afghanistan would look if foreign forces left, Haqqani envisioned an “Islamic system” in which “the rights of women that are granted by Islam — from the right to education to the right to work — are protected.”

The Taliban banned women from education and work and only let them leave their homes in the company of a male relative. Overnight, women disappeared behind the all-enveloping burqa, their activities restricted to their homes.

Haqqani stressed in the piece the need for a complete withdrawal of foreign forces. Officials in Afghanistan and the United States have said a certain number of troops would remain in the country to ensure stability.

The Afghan presidential palace reacted strongly to the article.

“It is sad that the (New York Times) has given their platform to an individual who is on a designated terrorist list. He and his network are behind ruthless attacks against Afghans and foreigners,” Sediq Sediqqi, a palace spokesman, told Reuters.

Meanwhile, recently reelected Afghan President Ashraf Ghani met U.S. special envoy Zalmay Khalilzad for the second time in 24 hours on Thursday to discuss issues related to peace talks and the details of the RIV, Sediqqi said on Twitter.

(Reporting by Abdul Qadir Sediqi in Kabul; Writing by Gibran Peshimam; Editing by Helen Popper)

Fed policymakers cautiously optimistic on U.S. economy despite new risks, minutes show

By Lindsay Dunsmuir

WASHINGTON (Reuters) – Federal Reserve policymakers were cautiously optimistic about their ability to hold interest rates steady this year, minutes of the central bank’s last policy meeting showed, even as they acknowledged new risks caused by the coronavirus outbreak.

The readout on Wednesday of the policy discussion, at which policymakers unanimously voted to keep interest rates unchanged in a target range of between 1.50% and 1.75%, also showed Fed officials were skeptical about any big rethink of the central bank’s inflation target.

“Participants generally saw the distribution of risks to the outlook for economic activity as somewhat more favorable than at the previous meeting,” the Fed said in the minutes of the Jan. 28-29 meeting. It went on to say the current stance of monetary policy was likely to remain appropriate “for a time.”

Coming into this year the Fed had made clear that, after three interest rate cuts in 2019, it plans to hold interest rates steady, barring a significant change in the U.S. economic outlook.

Policymakers have pointed to U.S. consumer spending levels, dissipating U.S-China trade tensions and loose financial conditions as supporting their view, but how long such an upbeat assessment can last has already been tested by escalating concern about the global economic impact of the coronavirus outbreak that started in China.

On Monday Apple Inc <AAPL.O> issued a revenue warning due to the disruption the epidemic is causing to its supply chain. China, the world’s second-largest economy, is still struggling to get its manufacturing sector back up and running after imposing severe travel restrictions to contain the flu-like virus.

Fed Chair Jerome Powell said last week it was too early to tell if the knock-on economic impact on the United States would be severe or sustained enough to cause the Fed to change its current path.

Since the outbreak began investors have brought forward their bets of when the Fed will cut interest rates again, to around June of this year. In the minutes, policymakers said the threat “warranted close watching.”

Despite that, Fed officials offered a fairly upbeat assessment of the economy, expecting consumer spending to “likely remain on a firm footing,” job gains to expand at a healthy pace, continued moderate economic expansion and inflation returning to its 2% goal. The Fed is forecasting the economy growing 2.0% this year.

That is at odds with some economic data released since the meeting. The Commerce Department reported last week a slowdown in consumer spending in January. Business investment has also experienced a deepening downturn and the U.S. manufacturing sector remains weak.

As part of a discussion on rethinking the Fed’s inflation goal during the central bank’s review of its main policy tools, there were vocal doubts about adopting an inflation range.

“Most participants expressed concern that introducing a symmetric inflation range … could be misperceived as a signal that the Committee was comfortable with continued misses below its symmetric inflation objective,” the Fed said.

BALANCE SHEET

Elsewhere in the minutes, Fed policymakers discussed how to handle its growing balance sheet. The Fed has been buying $60 billion monthly of U.S. Treasury bills since October to increase the level of reserves in the banking system in response to a liquidity crunch.

Powell has said the Fed would aim to begin scaling back that amount sometime in the April-June period, when the level of reserves in the banking system would likely be deemed adequate.

After that, “regular open market operations would be required over time in order to accommodate trend growth in the Federal Reserve’s liabilities and maintain an ample supply of reserves,” Fed policymakers noted in the minutes.

The Fed also expects to continue offering support in the market for repurchase agreements, or repo, at least through April but in the minutes staff floated a plan that included phasing out the term repo operations after April. Those policymakers who commented on the plan were comfortable with the idea, according to the minutes.

Several policymakers asked for more discussion “before long” on the possibility of creating a standing repo facility, which would allow banks to borrow cash as needed at a fixed rate.

(Reporting by Lindsay Dunsmuir in Washington; Additional reporting by Jonnelle Marte in New York; Editing by Andrea Ricci and Matthew Lewis)

China revokes three Wall Street Journal reporters’ credentials

By Huizhong Wu

BEIJING (Reuters) – China has revoked the press credentials of three journalists with the Wall Street Journal after the newspaper declined to apologize for a column with a headline calling China the “real sick man of Asia,” the foreign ministry said on Wednesday.

Spokesman Geng Shuang said Beijing made “stern representations” to the paper over the Feb. 3 column, which China criticized as racist and denigrating its efforts to combat a coronavirus epidemic, but the paper had failed to apologize or investigate those responsible.

“The Chinese people do not welcome media that publish racist statements and maliciously attack China,” Geng told a daily briefing.

“In light of this, China has decided to revoke the press cards of the three Wall Street Journal correspondents in Beijing, starting today.”

He did not identify the journalists. The Wall Street Journal said its deputy bureau chief, Josh Chin, and reporters Chao Deng and Philip Wen, had been ordered to leave within five days. Chin and Deng are U.S. citizens and Wen is Australian.

U.S. Secretary of State Michael Pompeo condemned China’s action.

“Mature, responsible countries understand that a free press reports facts and expresses opinions. The correct response is to present counter arguments, not restrict speech,” Pompeo said in a statement.

The Foreign Correspondents’ Club of China also expressed “deep concern and strong condemnation” over the move.

“The action taken against the Journal correspondents is an extreme and obvious attempt by the Chinese authorities to intimidate foreign news organizations by taking retribution against their China-based correspondents,” it said.

China’s move came after the United States said on Tuesday it would begin treating five Chinese state-run media entities with U.S. operations the same as foreign embassies.

Among these are the Xinhua news agency, China Global Television Network and China Daily Distribution Corp, which will be required to register employees and U.S. properties with the State Department.

Geng said China opposed the new rules and Beijing reserved the right to respond.

China declined to renew credentials of another Wall Street Journal reporter last year.

A person with direct knowledge of the situation told Reuters at the time that officials at China’s foreign ministry, which accredits foreign journalists, had expressed displeasure at a story co-written by the reporter.

The June 30 report said Australian authorities were looking into the activities of one of President Xi Jinping’s cousins as part of investigations into organized crime, money laundering and alleged Chinese influence-peddling.

Foreigners are not allowed to work as journalists in China without official credentials, which are required to obtain a residence visa.

(Reporting by Huizhong Wu; additional reporting by Brenda Goh in Shanghai and Tony Munroe in Beijing, and Susan Heavey in Washington; Writing by Se Young Lee; Editing by Kim Coghill and Clarence Fernandez)