Tag Archives: United States

U.S. private sector adds 263,000 jobs in March: ADP

FILE PHOTO: People wait in line to attend TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson/File Photo

(Reuters) – U.S. private employers added 263,000 jobs in March, more than the number they hired in February and well above economists’ expectations, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 187,000 jobs, with estimates ranging from 110,000 to 225,000.

Private payroll gains in the month earlier were revised down to 245,000 from the originally reported 298,000.

The report is jointly developed with Moody’s Analytics.

The ADP figures come ahead of the U.S. Labor Department’s more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.

Economists polled by Reuters are looking for U.S. private payroll employment to have grown by 175,000 jobs in March, down from 227,000 the month before. Total non-farm employment is expected to have risen by 180,000.

The unemployment rate is forecast to stay steady at the 4.7 percent recorded a month earlier.

(Reporting by Richard Leong; Editing by Meredith Mazzilli)

North Korea test-fires missile into sea ahead of Trump-Xi summit

FILE PHOTO: A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014. REUTERS/Denis Balibouse/File Photo

By Ju-min Park and Jack Kim

SEOUL (Reuters) – North Korea test-fired a ballistic missile into the sea off its east coast on Wednesday, South Korea’s military said, ahead of a summit between U.S. and Chinese leaders who are set to discuss Pyongyang’s increasingly defiant arms program.

The missile flew about 60 km (40 miles) from its launch site at Sinpo, a port city on North Korea’s east coast, the South Korean Office of the Joint Chiefs of Staff said in a statement. Sinpo is home to a North Korean submarine base.

The launch comes just a day before the start of a summit between U.S. President Donald Trump and Chinese President Xi Jinping, where talks about adding pressure on the North to drop its arms development will take center stage.

“The launch took place possibly in consideration of the U.S. -China summit, while at the same time it was to check its missile capability,” a South Korean official told Reuters about the military’s initial assessment of the launch.

The missile was fired at a high angle and reached an altitude of 189 km (117 miles), the official said.

Any launch of objects using ballistic missile technology is a violation of U.N. Security Council resolutions. The North has defied the ban, saying it infringes on its sovereign rights to self-defense and the pursuit of space exploration.

The launch drew swift condemnation from Japan, with Prime Minister Shinzo Abe saying further provocative action was possible.

Japan’s Chief Cabinet Secretary Yoshihide Suga described the launch as “extremely problematic” and said Tokyo had lodged a strong protest.

South Korea’s foreign ministry also condemned the launch as a blunt challenge to a series of U.N. Security Council resolutions targeting North Korea’s nuclear and missile program. Seoul called a National Security Council meeting and vowed to respond strongly in case of further provocations.

In a terse statement, U.S. Secretary of State Rex Tillerson said: “The United States has spoken enough about North Korea. We have no further comment.”

Trump wants China to do more to exert its economic influence over unpredictable Pyongyang to restrain its nuclear and missile programs.

China has denied it has any outsized influence on Pyongyang and Foreign Ministry spokeswoman Hua Chunying ruled out the chance of a link between the launch and the summit, saying, “I can’t see any certain connection between these two things.”

Ahead of the U.S.-China summit in Florida, Trump had threatened to use crucial trade ties with China to pressure Beijing into more action on North Korea.

A senior U.S. White House official said Trump wanted to work with China and described the discussions over North Korea as a test for the U.S.-Chinese relationship.

ICBM THREAT

North Korea could choose to continue with missile-related activities through next week, when the isolated and impoverished country celebrates the 105th anniversary of the birth of the state’s founder, Kim Il Sung.

It has used the anniversary in previous years to test-fire the intermediate-range Musudan ballistic missile and to launch long-range rockets to try to put satellites into orbit.

An expert on the North’s political strategy warned against reading too much political significance into the timing of the tests ahead of the U.S-China summit.

“They may have taken the summit into account to pick a day but, to me, it is more likely to catch up with its own missile development roadmap for their technical needs,” said Kim Dong-yub, a military expert at Kyungnam University’s Institute of Far Eastern Studies in Seoul.

North Korea failed in an attempt to launch a ballistic missile from its east coast two weeks ago. Earlier in March, it fired four missiles towards Japan, some of which came as close as 300 km (190 miles) to the Japanese coast.

It has also conducted two nuclear weapons tests since January 2016, all in defiance of U.N. sanctions.

The U.S. and South Korean militaries said initial assessments indicated the latest launch was of a KN-15 medium-range ballistic missile, which would be the same kind North Korea test-launched in February.

Pyongyang tested a new type of medium- to long-range ballistic missile in February, which it later said was an upgraded, extended-range version of its submarine-launched ballistic missile (SLBM).

North Korea has carried out several SLBM tests near Sinpo.

“While it is entirely possible it was the land-based KN-15, it very well could have been a test of their SLBM system that was conducted on land,” said Dave Schmerler, an expert at the California-based James Martin Center for Nonproliferation Studies.

The North is believed to be developing an intercontinental ballistic missile (ICBM) that could hit the United States and its leader, Kim Jong Un, has vowed to test-launch one at any time.

Experts and officials in the South and the United States believe Pyongyang is still some time away from mastering all the technology needed for an operational ICBM system, such as re-entry into the atmosphere and subsequent missile guidance.

– For a graphic on ‘North Korea’s missile launch’ click : https://tinyurl.com/mb6ennc

– For a graphic on ‘Nuclear North Korea’ click : https://tinyurl.com/mpxs45r

(Additional reporting by James Pearson in Seoul, Kaori Kaneko in Tokyo and Idrees Ali in Washington; Editing by Lincoln Feast and Clarence Fernandez)

UK and Swedish watchdogs warn of international cyber attack

A magnifying glass is held in front of a computer screen in this picture illustration taken in Berlin May 21, 2013. REUTERS/Pawel Kopczynski

STOCKHOLM (Reuters) – A large-scale cyber attack from a group targeting organizations in Japan, the United States, Sweden and many other European countries through IT services providers has been uncovered, the Swedish computer security watchdog said on Wednesday.

The cyber attack, uncovered through a collaboration by Britain’s National Cyber Security Centre, PwC and cyber security firm BAE Systems, targeted managed service providers to gain access to their customers’ internal networks since at least May 2016 and potentially as early as 2014.

The exact scale of the attack, named Cloud Hopper from an organization called APT10, is not known but is believed to involve huge amounts of data, Sweden’s Civil Contingencies Agency said in a statement. The agency did not say whether the cyber attacks were still happening.

“The high level of digitalization in Sweden, along with the amount of services outsourced to managed service providers, means that there is great risk that several Swedish organizations are affected by the attacks,” the watchdog said.

The agency said those behind the attacks had used significant resources to identify their targets and sent sophisticated phishing e-mails to infect computers.

It also said Swedish IP addresses had been used to coordinate the incursions and retrieve stolen data and that APT10 specifically targeted IT, communications, healthcare, energy and research sectors.

(Reporting by Johan Ahlander; Editing by Niklas Pollard and Stephen Powell)

Trump talks healthcare with Republican critic on golf course

Senator Rand Paul (R-KY) speaks to an aide after playing golf with U.S. President Donald Trump at the White House in Washington, U.S., April 2, 2017. REUTERS/Joshua Roberts

By Jan Pytalski

STERLING, Va. (Reuters) – President Donald Trump golfed with a vocal Republican critic of his healthcare push on Sunday, as he insisted efforts to repeal and replace President Barack Obama’s signature healthcare law were not dead.

Senator Rand Paul and Office of Management and Budget Director Mick Mulvaney joined the president at Trump National Golf Club outside of Washington. The trio was “discussing a variety of topics, including healthcare,” said White House Deputy Press Secretary Stephanie Grisham.

The outing came hours after Trump tweeted that talks to rework the nation’s healthcare law were still under way.

“Anybody (especially Fake News media) who thinks that Repeal & Replace of ObamaCare is dead does not know the love and strength in R Party!” Trump tweeted early on Sunday.

“Talk on Repealing and Replacing ObamaCare are, and have been, going on, and will continue until such time as a deal is hopefully struck,” he added in a second message.

Republican-led efforts to replace Obama’s healthcare law were thrown into disarray 10 days ago after Republican leaders in the House of Representative had to withdraw their own legislation ahead of a vote due to insufficient support from conservative and moderate members of their own party.

Trump had worked towards the bill’s passage, but Paul had been a prominent critic and had aligned himself with the conservative House Freedom Caucus, a group that helped torpedo Trump’s first major legislative effort.

On Thursday, Trump had threatened to defeat members of the group in next year’s congressional elections if they continued to defy him.

In an interview published on Sunday by the Financial Times, Trump was adamant he wanted to get a healthcare bill passed, and said he would turn his back on the Freedom Caucus and negotiate with Democrats if that is what it took.

“If we don’t get what we want, we will make a deal with the Democrats,” he said.

(Writing by Pete Schroeder; Editing by Mary Milliken and Andrea Ricci)

Homeland Security announces steps against H1B visa fraud

FILE PHOTO: U.S. Department of Homeland Security emblem is pictured at the National Cybersecurity & Communications Integration Center (NCCIC) located just outside Washington in Arlington, Virginia September 24, 2010. REUTERS/Hyungwon Kang

By Julia Edwards Ainsley

WASHINGTON (Reuters) – The U.S. Department of Homeland Security announced steps on Monday to prevent the fraudulent use of H1B visas, used by employers to bring in specialized foreign workers temporarily, which appeared to fall short of President Donald Trump’s campaign promises to overhaul the program.

A White House official said Trump may still do more on the program.

Trump had promised to end the lottery system for H1B visas, which gives each applicant an equal chance at 65,000 positions each year.

Lobbyists for businesses who rely on H1B visas, commonly used by the tech sector, had expected Trump to upend the lottery in favor of a system that prioritized workers who are highly skilled and would be highly paid in the United States.

The lottery for fiscal year 2018 opened on Monday without changes.

The start of the lottery was seen by those watching the issue as the unofficial deadline for the Trump administration to enact H1B visa reform, and the failure to meet that deadline signals that Trump’s promised overhaul of the system may be off the table or long delayed.

“More oversight is a good start, but employers can still use the program legally to depress wages and replace American workers. That falls short of the promises President Trump made to protect American workers,” said Peter Robbio, a spokesman for Numbers USA, a Washington-based group that advocates for limiting immigration into the United States.

The Trump administration has taken other steps to crackdown on H1B visa abuse, such as issuing a Justice Department warning to employers and announcing plans to increase transparency on applicants.

“These are important first steps to bring more accountability and transparency to the H1B system,” a White House official said. “The administration is considering several additional options for the president to use his existing authority to ensure federal agencies more rigorously enforce all aspects of the program.”

Tech companies rely on the program to bring in workers with special skills and have lobbied for an expansion of the number of H1B visas awarded.

Proponents of limiting legal immigration, including Trump’s senior adviser Stephen Miller, have argued the program gives jobs that Americans could fill to foreign workers at a less expensive cost.

The measures announced by DHS on Monday focus on site visits by U.S. authorities to employers who use H1B visas.

In future site visits, U.S. Citizenship and Immigration Services agents will investigate incidents where an employer’s basic business information cannot be validated; businesses that have a high ratio of H1B employees compared with U.S. workers; and employers petitioning for H1B workers who work off-site.

(Editing by Matthew Lewis)

Iran rejects U.S. terror claim by Mattis, blames Saudi

U.S. Defense Secretary James Mattis arrives as his meeting with Ajit Doval, National Security Advisor of India, at the Pentagon in Washington, U.S., March 24, 2017. REUTERS/Yuri Gripas

DUBAI (Reuters) – Iran rejected an allegation by U.S. Defense Secretary James Mattis that it was “the primary exporter of terrorism” and said on Saturday that the main source was U.S. ally Saudi Arabia.

“Some countries led by America are determined to ignore the main source of Takfiri-Wahhabi terrorism and extremism,” foreign ministry spokesman Bahram Ghasemi was quoted by Iran’s state news agency IRNA as saying.

He was referring to hardline Sunni Muslim groups and Saudi Arabia’s official Wahhabi school of Islam.

Saudi Arabia denies backing terrorism and has cracked down on jihadists at home, jailing thousands, stopping hundreds from traveling to fight abroad and cutting militant finances.

Shi’ite Muslim power Iran and Saudi Arabia, bastion of Sunni Islam and a close U.S. ally, are longstanding religious and political arch rivals and often accused each other of backing terrorism. Relations are fraught as they back each other’s foes in regional wars such as in Yemen, Iraq and Syria.

“Giving a wrong address when referring to the roots and the financial and intellectual resources of terrorism is a main reason for a lack of success by international anti-terror efforts,” Ghasemi added.

Ghasemi was reacting to remarks by Mattis on Friday when he was asked about comments he made in 2012 that the three main threats the United States faced were “Iran, Iran, Iran”.

“At the time when I spoke about Iran I was a commander of U.S. Central Command and that (Iran) was the primary exporter of terrorism, frankly, it was the primary state sponsor of terrorism and it continues that kind of behavior today,” Mattis told reporters.

(Reporting by Dubai newsroom; editing by Alexander Smith)

Tillerson meets wife of U.S. pastor jailed in Turkey

U.S. Secretary of State Rex Tillerson speaks during a news conference in Ankara, Turkey, March 30, 2017. REUTERS/Umit Bektas

ANKARA (Reuters) – U.S. Secretary of State Rex Tillerson met with the wife of a jailed American pastor, Andrew Brunson, in the Turkish capital Ankara on Thursday night, a State Department official said on Friday.

Brunson is a missionary who has been held in Turkey since October on charges of being part of a terrorist organization, according to news reports.

‎”Secretary of State Tillerson wanted to make sure he met with Mrs. Brunson to share the most recent information he had on Pastor Brunson’s case,” the official said.

“The Secretary ‎committed to staying in touch with Mrs. Brunson regarding the case moving forward,” the official said.

The pastor and his wife, Norine Brunson, were initially detained on immigration violation charges in October, when they were operating a small Christian church in the city of Izmir on Turkey’s western coast, media reports say.

Turkish media reports say Brunson has been charged with membership of the Gulenist Terror Organisation, the term which Turkish authorities uses to refer to the network of U.S.-based Islamic cleric Fethullah Gulen.

Ankara accuses Gulen and his followers of being behind an attempted coup in Turkey last July. Gulen rejects the allegations.

Tillerson was in Ankara to meet Turkish President Tayyip Erdogan and senior government ministers for talks which focused on the conflict in neighboring Syria.

Foreign Minister Mevlut Cavusoglu told a joint news conference with Tillerson that Ankara expected Washington to take concrete steps on the extradition of Gulen, calling for his detention in the United States.

(Reporting by Lesley Wroughton; Writing by Daren Butler; Editing by David Dolan)

U.S. Zika vaccine begins second phase of testing

FILE PHOTO: A pair of Aedes albopictus mosquitoes are seen during a mating ritual while the female feeds on a blood meal in a 2003 image from the Centers for Disease Control (CDC). REUTERS/Centers for Disease Control/James Gathany/Handout via Reuters

By Julie Steenhuysen

CHICAGO (Reuters) – Researchers have begun the second phase of testing of a Zika vaccine developed by U.S. government scientists in a trial that could yield preliminary results as early as the end of 2017.

Dr. Anthony Fauci, director of the National Institutes of Allergy and Infectious Diseases (NIAID), said on Friday the $100 million trial has already been funded and will proceed, irrespective of the $7 billion in cuts to the National Institutes of Health (NIH) budget proposed by the Trump Administration over the next 18 months.

In a conference call with reporters, Fauci would not comment on the proposed cuts because it is not clear yet what the actual budget will be. Both Democratic and Republican lawmakers oppose cuts to the NIH, which funds 21 institutes, including NIAID.

NIH Director Dr. Francis Collins is scheduled to speak with President Donald Trump later on Friday. “I will certainly be talking to Francis Collins when he returns from the White House,” Fauci said.

Zika typically causes mild symptoms, but when the virus infects a pregnant women, she can pass it to her fetus, causing a variety of birth defects including microcephaly, in which the baby’s head is abnormally small.

Fauci said the current Zika vaccine candidate had cleared preliminary safety hurdles, and would now enter testing for efficacy, which would occur in two phases.

The first phase will continue testing for safety and evaluate the vaccine’s ability to stimulate the immune system to develop antibodies to fight Zika. It will also test different doses to see which works best.

The second phase, set to begin in June, will attempt to determine if the vaccine can actually prevent Zika infection.

Several companies are developing Zika vaccines, including Sanofi SA, GlaxoSmithKline Plc and Takeda Pharmaceuticals.

In the NIAID study, researchers aim to enroll at least 2,490 healthy volunteers in areas with confirmed or potential active transmission of Zika by mosquitoes. These include parts of the continental United States, Puerto Rico, Brazil, Peru, Costa Rica, Panama and Mexico. They will receive either the vaccine, or a placebo, and be followed for two years.

If enough people are exposed to the virus, Fauci said they could get an effectiveness signal as early as the end of this year. The trial is expected to be completed by 2019.

Fauci said the government is already in discussions with pharmaceutical companies that would share the costs of the final stage of testing and handle manufacturing.

Zika is primarily transmitted by mosquitoes, but it can also be transmitted sexually. According to Centers for Disease Control and Prevention, 5,182 people in the continental United States have been infected by Zika either locally or through travel to places where the virus is spreading. Another 38,303 cases have been reported in U.S. territories, including Puerto Rico.

(Reporting by Julie Steenhuysen; editing by Diane Craft)

China downplays tensions with U.S. as Xi prepares to meet Trump

Chinese President Xi Jinping and U.S. President Donald Trump. REUTERS/File Photos

By Ben Blanchard and David Lawder

BEIJING/WASHINGTON (Reuters) – Beijing sought to play down tensions with the United States and put on a positive face on Friday, as the U.S. administration slammed China on a range of business issues ahead of President Xi Jinping’s first meeting with President Donald Trump.

Trump set the tone for what could be a tense meeting at his Mar-a-Lago retreat next week by tweeting on Thursday that the United States could no longer tolerate massive trade deficits and job losses.

Trump said the highly anticipated meeting, which is also expected to cover differences over North Korea and China’s strategic ambitions in the South China Sea, “will be a very difficult one.”

Ahead of the meeting, Trump will sign executive orders on Friday aimed at identifying abuses that are causing massive U.S. trade deficits and clamping down on non-payment of anti-dumping and anti-subsidy duties on imports, his top trade officials said.

Separately, the U.S. Trade Representative’s office, controlled by the White House, said Beijing’s industrial policies and financial support for industries such as steel and aluminum have resulted in over-production and a flood of exports that have distorted global markets and undermined competitive companies.

Seeking to downplay the rift, Chinese Foreign Ministry spokesman Lu Kang reiterated a desire for cooperation on trade.

“With regard to the problems existing between China and the United States in trade relations, both sides should in a mutual respectful and mutual beneficial way find appropriate resolutions, and ensure the stable development of Sino-U.S. trade relations,” he told a daily news briefing.

The leaders of the world’s two largest economies are scheduled to meet next Thursday and Friday for the first time since Trump assumed office on Jan. 20.

Speaking earlier at a briefing on the Xi-Trump meeting, Chinese Vice Foreign Minister Zheng Zeguang acknowledged the trade imbalance, but said it was mostly due to differences in their two economic structures and noted that China had a trade deficit in services.

“China does not deliberately seek a trade surplus. We also have no intention of carrying out competitive currency devaluation to stimulate exports. This is not our policy,” Zheng said.

CONCILIATORY TONE

State news agency Xinhua also struck a conciliatory tone.

“Of course, it would be naive to believe that the two sides can bridge their differences in a single diplomatic meeting,” it said in an English language commentary on Friday.

“Yet as long as the two nations can maintain their good faith, which they have shown recently, to talk and to make concessions based on mutual respect, then no difference would be too difficult to iron out.”

Trump has frequently accused China of keeping its currency artificially low against the dollar to make Chinese exports cheaper, and “stealing” American manufacturing jobs.

The yuan fell 6.5 percent last year in its biggest annual loss against the dollar since 1994, knocked by pressure from sluggish economic growth and a broadly strong U.S. currency.

Trump has resisted acting on a campaign promise to declare China a currency manipulator on his first day in office, but tensions have persisted over how his administration’s China policy would evolve.

While apprehensive about a trade war, the American business community in China has grown more vocal.

Fear of retaliation had once made business lobbies eschew more forceful U.S. trade policies toward China, but such groups have increasingly urged the Trump administration to take targeted action to address market access imbalances.

Zheng said domestic consumption in China will increase as it pursues economic reforms, helping to raise demand for foreign goods and services, including those from the United States.

“This also helps ameliorate the trade imbalance between China and the United States,” he said.

The trade imbalance could be resolved by improved cooperation, Zheng said, urging Washington to lift restrictions on civilian technology exports to China and create better conditions for Chinese investment in the United States.

The USTR report, however, accused China of using a range of measures to engineer the transfer of foreign technology to local firms. It said these include denying financial or regulatory approvals to companies using foreign-owned intellectual property or that do not conduct research or manufacture products in China.

The report also brought up longstanding complaints about online piracy of movies, books, music, video games and software in China as well as a ban on U.S. beef that has been in place since 2003.

(Additional reporting by Christian Shepherd and Michael Martina in BEIJING; Editing by Lincoln Feast)

Consumer spending slows; inflation pushing higher

A customer shops at a Walmart Supercenter in Rogers, Arkansas June 6, 2013. REUTERS/Rick Wilking

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer spending barely rose in February amid delays in the payment of income tax refunds, but the biggest annual increase in inflation in nearly five years supported expectations of further interest rate hikes this year.

The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of U.S. economic activity, edged up 0.1 percent. That was the smallest gain since August and followed an unrevised 0.2 percent rise in January.

Economists had expected a 0.2 percent increase.

The government delayed the issuing of tax refunds this year as part of efforts to combat fraud. Spending last month was held back by a 0.1 percent dip in purchases of big-ticket items like automobiles. While unseasonably warm weather reduced households’ heating bills, it restricted spending last month.

Weak consumer spending suggested that economic growth slowed further in the first quarter. Gross domestic product increased at a 2.1 percent annualized rate in the fourth quarter, stepping down from the July-September quarter’s brisk 3.5 percent pace.

Despite signs of moderate growth, the Federal Reserve is expected to raise interest rates at least twice more this year. The U.S. central bank raised its benchmark overnight interest rates by a quarter of a percentage point this month.

Prices for U.S. Treasuries fell on the data, while the dollar was little changed against a basket of currencies. U.S. stock index futures were slightly lower.

With consumer confidence at 16-year highs and labor market tightness pushing up wage growth, the moderation in spending is likely to be temporary. Even with economic growth slowing at the start of the year, inflation is rising.

The personal consumption expenditures (PCE) price index gained 0.1 percent last month after jumping 0.4 percent in January. That lifted the year-on-year rate of increase in the PCE price index to 2.1 percent, the biggest gain since April 2012. The PCE price index rose 1.9 percent in January.

Excluding food and energy, the so-called core PCE price index increased 0.2 percent last month after rising 0.3 percent in January. In the 12 months through February, the core PCE price index increased 1.8 percent after a similar gain in January.

The core PCE is the Federal Reserve’s preferred inflation measure and is running below its 2 percent target. Inflation is now in the upper end of the range that Fed officials in March felt would be reached this year.

Rising price pressures are also eating into consumer spending. When adjusted for inflation, consumer spending fell 0.1 percent in February after declining 0.2 percent in January.

That suggests a sharp deceleration in the pace of consumer spending after a robust 3.5 percent growth rate in the fourth quarter.

Personal income rose 0.4 percent last month after advancing 0.5 percent in January. Wages increased 0.5 percent, the biggest gain in five months.

Income at the disposal of households after accounting for inflation increased 0.2 percent after dipping 0.1 percent in January. Savings rose to a five-month high of $808.0 billion from $770.9 billion in January.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)