Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Tesla’s Roadster Takes Flight, Enters Orbit

Billionaire CEO Elon Musk is off to a big 2018. He’s chief executive of both SpaceX and Tesla. His space-travel company launched off the planet and into orbit a roadster from his electric car company. It was the latest milestone for an executive who looks to revolutionize space travel and technology. Arash Arabasadi reports.

As Brexit ‘Cliff-Edge’ Fears Grow, France Courts Japanese Firms in Britain

There are growing fears that Britain could be headed for a so-called cliff-edge exit from the European Union, as big differences remain between Brussels and London over the shape of any deal. It comes as Japan warns its businesses may pull out of Britain if they face higher costs after Brexit. A leaked government analysis suggests that economic growth in Britain will decline by up to 8 percent after it leaves the bloc. Henry Ridgwell reports from London.

CIA Denies Being Bilked by Russian Promising Trump Info 

The CIA on Saturday categorically denied reports that it was fleeced by a mystery Russian who promised compromising information on U.S. President Donald Trump.

The secretive agency rarely issues any kind of comment, but came out to deny the report in The New York Times and a similar one in The Intercept, an online journal focusing on national security issues.

“The fictional story that CIA was bilked out of $100,000 is patently false,” the Central Intelligence Agency said in a statement sent to AFP.

“The people swindled here were James Risen and Matt Rosenberg,” the CIA said, referring to Times reporter Rosenberg, who wrote the story, and Risen, a former Times reporter who authored The Intercept’s article.

Both reports appeared Friday.

The president tweeted approvingly that the Times article shows a need to “drain the swamp” in Washington.

Worthy of a le Carre novel

In a story worthy of a John le Carre novel that included secret USB-drive handovers in a small Berlin bar and coded messages delivered over the National Security Agency’s Twitter account, CIA agents spent much of last year trying to buy back from the Russians hacking programs stolen from the NSA, the Times reported.

The seller, who was not identified but had suspected links to both cyber criminals and Russian intelligence, tantalized the U.S. spies with an offer of the NSA hacking tools that had been advertised for sale online by a group called the Shadow Brokers.

Some of the tools, developed by the NSA to break into the computers of U.S. rivals, were used by other hackers last year to crack or infect computer systems around the world. The Times described the Americans as desperate to get the tools back.

Reached through a chain of intermediaries, the seller reportedly wanted $1 million after quickly dropping his opening demand of about $10 million.

The $100,000 was an initial payment by U.S. agents still dubious he really had what he was promising.

In its report, the Times cited U.S. and European intelligence officials, the Russian, and communications the newspaper reviewed.

The seller also repeatedly pressed U.S. agents with offers of compromising materials, or kompromat, on Trump, the Times said.

‘Off the books’

But an investigation was under way in Washington on possible links between Moscow and Trump’s 2016 election campaign, and the U.S. agents reportedly did not want to get involved in anything that smelled of the politics back home.

U.S. intelligence officials say that Russia interfered with the election to help elect Trump, and that it continues to use disinformation to sow confusion in the American political system.

The Intercept reported that the “off-the-books communications channel” with Russia created rifts in the CIA. The agency is led by Trump loyalist Mike Pompeo, but many of its staffers are still smarting over Trump’s repeated harsh comments about the intelligence community’s role in the Russia meddling investigation.

Special Counsel Robert Mueller is probing the possible links between Trump’s presidential campaign and Moscow, as well as possible obstruction of justice.

Democratic Congressman Ted Lieu said in a tweet Friday that Risen’s article “suggests the CIA Director fears getting information damaging to @realDonaldTrump that is being offered by Russians.”

If that’s true, Lieu said, “the CIA Director needs to explain his actions to Congress. He took an oath to the Constitution, not to Trump.”

Trump on Saturday referred favorably to the Times article about the Russian who “sold phony secrets on ‘Trump’ to the US,” and noted the operative reportedly had drastically lowered his original price.

“I hope people are now seeing and understanding what is going on here. It is all now starting to come out — DRAIN THE SWAMP!” he tweeted, in a reference to what he sees as a need for reform.

Trump has frequently criticized the Times, which has published numerous investigative reports about him and his administration, calling it a “failing” newspaper providing “fake news.”

Trump has repeatedly denied any collusion with Russia.

The Times reported that, in the end, the deal with the Russian broke down last month as the Russian failed to come up with any of the sought-after NSA materials, and the Trump-related material was either already known or untrustworthy.

The Russian was told by the Americans to leave Western Europe and not return, according to the Times.

OxyContin Maker Purdue Pharma to Stop Promoting Opioids

OxyContin maker Purdue Pharma LP said Saturday that it has cut its sales force in half and will stop promoting opioids to physicians, following widespread criticism of the ways that drugmakers market addictive painkillers.

The drugmaker said it will inform doctors Monday that its sales representatives will no longer be visiting physician offices to discuss its opioid products. It will now have about 200 sales representatives, Purdue said.

“We have restructured and significantly reduced our commercial operation and will no longer be promoting opioids to prescribers,” the Stamford, Connecticut-based company said in a statement.

New marketing push

Doctors with opioid-related questions will be directed to its medical affairs department. Its sales representatives will now focus on Symproic, a drug for treating opioid-induced constipation, and other potential non-opioid products, Purdue said.

Opioids were involved in more than 42,000 overdose deaths in 2016, according to the U.S. Centers for Disease Control and Prevention.

Amid the opioid epidemic, Purdue and other drugmakers have been fighting a wave of lawsuits by states, counties and cities that have accused them of pushing addictive painkillers through deceptive marketing.

The lawsuits have generally accused Purdue of significantly downplaying the risk of addiction posed by OxyContin and of engaging in misleading marketing that overstated the benefits of opioids for treating chronic, rather than short-term, pain.

Lawsuits in 14 states

At least 14 states have sued the privately held Purdue. Most recently, Alabama Attorney General Steve Marshall filed a lawsuit Tuesday accusing Purdue of deceptively marketing prescription opioids to generate billions of dollars in sales.

Purdue is also facing a federal investigation by the U.S. Attorney’s Office in Connecticut.

Purdue has denied the allegations in the various lawsuits.

It has said its drugs are approved by the U.S. Food and Drug Administration and account for only 2 percent of all opioid prescriptions.

Purdue and three executives previously pleaded guilty in 2007 to federal charges related to the misbranding of OxyContin and agreed to pay a total of $634.5 million to resolve a U.S. Justice Department probe.

That year, Purdue also reached a $19.5-million settlement with 26 states and the District of Columbia. It agreed in 2015 to pay $24 million to resolve a lawsuit by Kentucky.

Experts: More Stock Volatility Ahead, but No Reason to Panic

It’s been a tough week on Wall Street. The Dow Jones Industrial average closed more than 300 points higher Friday, after plunging more than 1,000 points the day before, the second steepest decline in history. The biggest dive happened Monday when the blue chip index fell more than 1,100 points. It’s enough to make even the most experienced investors swoon. But does this mean the end of the nine-year bull market? Is it time to worry? Mil Arcega spoke with economic analysts to get some answers.

State Department: No One Drives a Wedge Between US and South Korea

With the launch of the 2018 Winter Olympics in Pyeongchang, South Korea, U.S. State Department spokesperson Heather Nauert dismissed concerns that U.S. efforts to counter North Korea’s “charm offensive” could create a rift with South Korea. But some analysts are expressing concern that tough talk from Vice President Mike Pence on Pyongyang could put the U.S. on a collision course with its long-time ally, South Korea. VOA diplomatic correspondent Cindy Saine reports from the State Department.

Report: Military Probe Calls for Fewer Ground Missions in West Africa After Niger Ambush

The New York Times is reporting that a draft military investigation into the deaths of U.S. soldiers in Niger last year calls for the Pentagon to reduce the number of ground missions in West Africa.

Military officials with knowledge of the findings told the newspaper the investigation also concludes that commanders in the field should have less authority to send troops on potentially high-risk patrols. Higher-level commanders will now need to approve certain missions that carry a higher risk.

No drawdown in Libya, Somalia

The officials say U.S. troops will continue to carry out joint patrols with local military forces, but say military officials will more thoroughly vet such missions, according to the paper. The officials said missions would not be scaled back in Libya or Somalia, where U.S. troops have been working with local forces to fight Islamic State and al-Shabab militants.

The draft investigation findings have not yet been released to the public.

The Times said the military investigation describes a string of errors that led to the deaths of the Americans, including bad decision-making and a breakdown in communication.

​October ambush in Niger

Pentagon and Nigerien defense officials said Islamic State fighters ambushed their forces Oct. 4, killing four American soldiers, four Nigerien soldiers and a Nigerien interpreter.

In the attack, a group of 12 members of a U.S. Special Operations Task Force had accompanied 30 Nigerian forces on a reconnaissance mission from the capital city of Niamey to an area near Tongo Tongo.

Members of the team had just completed a meeting with local leaders and were walking back to their vehicles when they were attacked, U.S. officials told VOA.

The soldiers said the meeting ran late, and some suspected the villagers were intentionally delaying their departure, one of the officials said.

About 1,300 U.S. military personnel work in the Lake Chad Basin — Niger, Nigeria, Cameroon and Chad — to help strengthen local militaries and counter Boko Haram, al-Qaida, IS and other extremist groups.

Ride-Sharing Uber and Self-Driving Car Firm Waymo Settle Legal Battle

Ride-sharing giant Uber and the self-driving car company Waymo have agreed to settle their legal battle over allegedly stolen trade secrets.

The surprise agreement Friday came as lawyers for the companies prepared to wrap up the first week of the case’s jury trial in San Francisco, California.

As part of the agreement, Uber will pay $245 million worth of its own shares to Waymo.

Waymo sued Uber last year, saying that one of its former engineers who later became the head of Uber’s self-driving car project took with him thousands of confidential documents.

After the lawsuit was filed, Uber fired the employee and fell behind on its plans to roll out self-driving cars in its ride-sharing service.

Waymo, a company hatched from Google, says the settlement also includes an agreement that Uber cannot use Waymo confidential information in its technology.

“We have reached an agreement with Uber that we believe will protect Waymo’s intellectual property now and into the future. We are committed to working with Uber to make sure that each company develops its own technology,” Waymo said in a statement.

Uber’s new CEO, Dara Khosrowshahi, expressed regret for the company’s actions in a statement Friday.

“While we do not believe that any trade secrets made their way from Waymo to Uber, nor do we believe that Uber has used any of Waymo’s proprietary information in its self-driving technology, we are taking steps with Waymo to ensure our Lidar and software represents just our good work,” Khosrowshahi said in a statement.

Lidar is a laser-based system that helps self-driving cars to navigate their surroundings.

The trial so far included testimony from former Uber chief executive Travis Kalanick, who denied any attempt to steal trade secrets from Waymo.

Uber has faced a series of recent struggles, including public accusations of sexual harassment at the company and accusations it used software to thwart government regulators.

2nd White House Aide Resigns After Accusations of Domestic Abuse

The White House confirmed late Friday that a second staff member had resigned over allegations of domestic abuse.

Spokesman Raj Shah said David Sorenson, a speechwriter for the Council on Environmental Quality, resigned Friday. Two days earlier White House Staff Secretary Rob Porter stepped down amid accusations by both his former wives that he had abused them.

Sorensen denied the abuse allegations, which were first reported Friday by The Washington Post. Sorenson’s ex-wife had told the Post that he was violent and emotionally abusive during their short marriage.

Trump on Porter

President Donald Trump said Friday that he is very sad at Porter’s resignation.

“He says he’s innocent, and I think you have to remember that,” Trump told reporters in the Oval Office on Friday. “He said very strongly yesterday that he’s innocent, so you’ll have to talk to him about that.”

The president did not mention the former wives or their claims that Porter physically and psychologically abused them.

Security clearance concerns

The revelations about Porter have raised fresh questions about the attitude of senior White House staff toward allegations of improper behavior by employees. It has also cast a spotlight on the practice of allowing staff without security clearances to work in and around the Oval Office.

Porter had only an interim clearance while holding one of the most sensitive jobs in the White House, where he controlled the flow of information to the president. A full clearance had been held up while the FBI investigated abuse allegations by his two former wives.

Trump Friday wished his former aide well, noting that Porter had done “a very good job in the White House.”

Porter’s swift resignation followed publication in Britain’s Daily Mail of a picture of his first wife, Colbie Holderness, with a black eye allegedly suffered when Porter punched her in 2005 while the couple was on vacation in Italy.

Holderness and Porter’s second wife, Jennifer Willoughby, were both quoted by the tabloid as saying Porter’s consistent abuse was the reason for their respective divorces.

​Kelly under scrutiny

The Porter matter has intensified scrutiny of White House Chief of Staff John Kelly, a former army general brought in to bring order to an administration that had been seen as chaotic under previous chief, Reince Priebus.

Media reports say Kelly apparently had prior knowledge of Porter’s inappropriate behavior. Critics say Kelly should have been more concerned about employees working without security clearances.

Kelly has also come under fire for appearing to defend Porter when the allegation of abuse first surfaced. He issued a statement Wednesday calling Porter “a man of true integrity and honor.”

“I can’t say enough good things about him,” Kelly wrote. “He is a friend, a confidant and a trusted professional. I am proud to serve alongside him.”

Later, as the picture of Holderness with the black eye circulated on the Internet, Kelly amended his original statement, saying, “I was shocked by the new allegations released today against Rob Porter. There is no place for domestic violence in our society.”

Porter resigns

A day after Kelly and Press Secretary Sarah Sanders spoke warmly of Porter, his departure was announced with a terse comment. 

“He was terminated yesterday and his last day was yesterday,” Shah, the deputy press secretary said Thursday. Shah characterized the departure as a resignation, however, rather than a firing.

Porter, a Rhodes scholar and Harvard-educated lawyer, played an important role in deciding which articles and policy proposals were given to the president for his review.

Porter had a hand in writing Trump’s recent State of the Union address, and news photos and videos often showed images of him with other members of the White House inner circle. Several news agencies have reported that he is currently romantically linked with another close Trump aide, White House Communications Director Hope Hicks.

Porter issued a statement Wednesday denying the accusations.

“These outrageous allegations are simply false,” he said. “I took the photos given to the media nearly 15 years ago and the reality behind them is nowhere close to what is being described. I have been transparent and truthful about these vile claims, but I will not further engage publicly with a coordinated smear campaign.”

Russians Held for ‘Mining Bitcoin’ At Top Nuclear Lab

Engineers at Russia’s top nuclear research facility have been detained after they attempted to mine bitcoin on its computers, Russian news agencies reported Friday.

Several employees at the Russian Federal Nuclear Center in the city of Sarov have been detained after making “an attempt to use the work computing facilities for personal ends, including for so-called mining,” a spokeswoman for the center, Tatiana Zalesskaya, told Interfax news agency.

“Their activities were stopped in time,” she added.

“The bungling miners have been detained by the competent authorities. As far as I know, a criminal case has been opened regarding them,” she added, without saying how many were detained.

The center is overseen by Rosatom, the Russian nuclear agency, and works on developing nuclear weapons.

Such attempts “at our enterprises will be harshly put down, this activity technically has no future and is punishable as a crime,” the center’s spokeswoman said.

In 2011, the center switched on a new supercomputer with a capacity of 1 petaflop, which at the time made it the twelfth most powerful in the world, Russian television reported.

During the Cold War, Sarov was a top-secret city in the Nizhny Novgorod region, about 500 kilometers (300 miles) east of Moscow. Its Soviet-era name was Arzamas-16.

The center was the birthplace of the Soviet Union’s first nuclear weapons.

Sarov is still a closed city whose inhabitants are subject to travel restrictions.

Vladimir Putin visited the nuclear research center in 2012 while campaigning for president.

US Stocks Slump After Opening Higher in Last Trading Session of Turbulent Week

U.S. stocks slumped Friday afternoon after opening higher in the last trading session of a turbulent week in which the Dow Jones industrial average and the Standard & Poor’s 500 Index plunged into correction territory for the first time in two years.

The Dow, the more broad-based S&P 500 and the technology-laden NASDAQ composite were all about one percent lower in afternoon trading.

Earlier Friday, global stock indexes closed out the week in negative territory, deepening the weeklong sell-off. France’s CAC 40 Index fell 1.2 percent, Britain’s FTSE 100 Index lost seven-tenths of one percent and Germany’s DAX finished 1.2 percent lower.

Asian benchmarks fell more sharply. China’s Shanghai Composite Index plummeted 4 percent, Tokyo’s Nikkei 225 retreated 2.3 percent and Hong Kong’s Hang Seng Index lost just over 3 percent.

The U.S. sell-off began a week ago after the U.S. Labor Department reported wages grew rapidly in January, sparking concern of higher inflation and lower corporate profits.

European markets were rattled by a signal from the Bank of England that it may boost interest rates in response to a strong global economy.

Despite this week’s heavy losses, U.S. benchmarks are still posting strong gains over the past year. As of Friday morning, the Dow was 19 percent higher, the S&P was up 12.5 percent and the NASDAQ was ahead by more than 19 percent.

Many Wall Street observers had been expecting a correction — a drop in stock values of 10 percent or more over the most recent record high — because the market is currently in the middle of its second-longest bull run, or market that is expected to rise, of all time. Until now, the booming market had not seen a correction in two years, an unusually long time.

Congress Reaches Budget Compromise, But No Deal Yet on ‘Dreamers’

The U.S. Congress has approved spending bill and two year budget agreement which has been signed by President Donald Trump, ending a brief government shutdown. The deal ended weeks of uncertainty as well as Democratic hopes of linking passage of the budget with a solution for 1.8 million undocumented immigrants brought to the U.S. as children. VOA congressional correspondent Katherine Gypson reports on the immigration fight ahead on Capitol Hill.

Kenya’s Flower Producers Eye US Market

Kenya’s cut-flower industry has blossomed since the 1980s, and now holds the biggest market share for exports to Europe. Kenya’s flower producers are hoping direct flights set to open between Nairobi and New York City could help them put down roots in a new market — the United States.

On the cutting floor of a factory in Naivasha, about a hundred workers dressed in red smocks stand at sorting tables, some with blades at the ready. The remnants of their work lay scattered about on the gray cement floor. 

Naivasha is Kenya’s floriculture heartland and workers at Van den Berg Kenya are trimming, packing and refrigerating bundles of roses. 

With Valentine’s Day just around the corner, this is the busiest time of year for flower growers in Kenya — the world’s fourth-largest exporter of cut flowers, with most of the exports going to Europe, Australia and Japan.  

“We saw good growth of up to about 10 percent up to the year 2008,” said Jane Ngige, the outgoing CEO of Kenya Flower Council, which represents 115 of about 150 registered growers. “And, since then, it’s stabilizing at about 2 percent.”

Kenya’s cut-flower industry may be set to grow once again with direct flights opening in October to the United States. 

Kenya’s flower growers have been anticipating the direct flights for a few years now, according to Ngige. 

“And what we’re looking at is an opportunity to diversify our markets to the American market. And, we’re also looking — not to compete with the South Americans, who are the main producers or the main suppliers of flowers for North America — but look at complimenting the product. Because, our products are very different,” Ngige said.

Kenyan roses have a smaller head-size than the Columbian flowers that dominate the U.S. market, say growers in Naivasha, but Kenya’s varietals and low production costs could give it an edge. 

While a small fraction of Kenya’s flowers currently end up in the U.S., the air freight stopover in Europe is a costly barrier to greater market access. 

The managing director of Flamingo Horticulture Kenya, Jonathan Ralling, agrees that direct flights are a good opportunity — if there is enough cargo space. 

“I think it will depend on how much freight is available, in terms of what can leave the country, and also of course how competitive Kenya can be against the South American exporters, which are very, very strong in terms of the U.S.,” Ralling said.

There are 100,000 workers directly employed in Kenya’s flower industry, but Kenya Flower Council says indirect services and products account for another 400,000 jobs, providing livelihoods for around two million people. 

The hope is that, with better access to the U.S. consumer market, Kenya’s flower industry — and the number of people it supports — can only grow. 

Trump Signs Budget Agreement, Ending US Government Shutdown

U.S. President Donald Trump has signed a sweeping bipartisan budget bill, ending a brief government shutdown and adding hundreds of billions of dollars in spending on domestic programs, disaster aid and the military.

Trump signed the measure without fanfare after it received final congressional approval in the early hours of Friday morning.

White House officials said the lack of a signing ceremony indicated Trump’s displeasure with the last-minute additions that will further add to the government’s ballooning deficit. In two subsequent morning tweets, he took aim at Democrats, who had demanded more domestic spending in return for the votes needed to win enough bipartisan support to pass the deal.

The House voted in the wee hours of the morning, 240-186, to approve the measure, which funds the government through March 23. Hours earlier, the Senate had voted 71-28 in favor.

The deal gives appropriations committees in both houses of Congress time to craft a detailed spending plan that will fund the government through September of 2019.

Several lawmakers on the left and right opposed the bill, including conservative Republicans who objected to the large spending increases. Progressive Democrats protested the omission of language that would end the threat of deportation for more than one million young undocumented immigrants, known as “Dreamers,” who were brought to the United States as children.

Trump ordered an end to the Obama-era Deferred Action for Childhood Arrivals program last year. Participants face deportation when the program expires March 5 unless Congress takes action.

Trump, in his third tweet of the day, applauded the exclusion of the Dreamers, or recipients of the DACA provision, from the spending bill. “Fortunately, DACA not included in this Bill, negotiations to start now!” he wrote.

Republican and Democratic legislative leaders praised the deal.

“This is a great victory for our men and women in uniform. Republicans and Democrats joined together to finally give our troops the resources and our generals the certainty to plan for the future,” said House Speaker Paul Ryan.

Senate Minority Leader Chuck Schumer, who had opposed earlier versions of the bill that cut domestic and disaster relief spending, also claimed victory.

“What makes Democrats proudest of this bill is that after a decade of cuts to programs that help the middle class, we have a dramatic reversal,” Schumer said. “Funding for education, infrastructure, fighting drug abuse, and medical research will all, for the first time in years, get very significant increases, and we have placed Washington on a path to deliver more help to the middle class in the future.”

Dreamers’ plight

While Schumer and the Democrats yielded on the DACA issue, Republican leaders gave assurances that overhauling America’s immigration system remains high on their agenda.

Senate Majority Leader Mitch McConnell has promised to start Senate floor debate on immigration reform, including a fix for DACA recipients, as soon as spending issues are resolved.

Speaker Ryan gave a similar assurance Thursday, saying, “To anyone who doubts my commitment to solve this problem and bring up a DACA and immigration reform bill, do not. We will bring a solution to the floor, one that the president will sign.”

A single Republican senator had held up passage of the budget bill Thursday, forcing the brief government shutdown, to underscore his fear that increasing spending by hundreds of billions of dollars would explode America’s already rising federal deficit and add to the nation’s more than $20 trillion national debt.

“The reason I’m here tonight is to put people on the spot,” Kentucky Senator Rand Paul said in a fiery floor speech that went on for hours. “I want people to feel uncomfortable. I want them to have to answer people at home who said, How come you were against President [Barack] Obama’s deficits and then how come you’re for Republican deficits?'”

Michael Bowman contributed to this report.

Watch related video by VOA’s Katherine Gypson:


Pence in Pyeongchang for Olympics Opening Ceremonies

U.S. Vice President Mike Pence arrived in Pyeongchang, South Korea, Friday to attend the opening ceremonies of the 2018 Winter Olympics.

Earlier Friday, Pence traveled to the South Korean Navy’s 2nd Fleet Command in Pyeongtaek, 70 kilometers south of Seoul, to visit a memorial for the South Korean warship Cheonan, which was sunk by an explosion blamed on the North. Nearly 50 sailors aboard the Cheonan were killed.

“Our objective here today is to stand with our allies. But is also to stand up for the truth. And to recognize that whatever images may emerge against the powerful backdrop and idealism of the Olympics, North Korea has to accept change,” Pence told reporters at the naval base before heading to the Olympic Games venue.

“They have to abandon their nuclear ambitions. They have to end the day of provocation and menacing. And frankly they have to end an appalling record of human rights that you heard first-hand today, the world community,” he added.

The vice president also met with North Korean defectors while in Pyeongtaek.

At the Olympics

U.S. officials have not ruled out the possibility that the vice president might meet a North Korean official at the Olympics. North Korean state media said Thursday there was no intention on the North Korean side for such talks to take place.

Pence said his team had not requested a meeting, but that if it did happen, he would continue his message that North Korea must entirely abandon its nuclear and ballistic missile efforts and will remain under pressure until it does so.

South Korean President Moon Jae-in said South Korea sees hosting the Olympics as a way to improve diplomatic relations with North Korea. He has referred to the games as the “Olympic Games of peace.”

Ahead of the opening ceremony in Pyeongchang, Pence, Moon and Japanese Prime Minister Shinzo Abe attended a reception for about 200 dignitaries hosted by the South Korean president.

According to the vice president’s office, Pence stopped by many tables at the reception, “but did not come across the North Korea delegation.”

Vow to South Korea

On Thursday, Pence said in a meeting with Moon that Washington would “bring maximum pressure to bear on North Korea” until they abandon their nuclear weapons program.

Meeting with Moon at the Blue House in Seoul, Pence reaffirmed to longtime ally South Korea the U.S. commitment to economically and diplomatically isolate North Korea in order to achieve the goal of a denuclearized Korean Peninsula.

On Thursday, while in Japan, Pence stopped at Yokota Air Base in western Tokyo, where he gave a pointed speech against North Korea.

He said the United States will act with “vigilance and resolve” in the face of North Korea’s nuclear and ballistic missile threats, and reiterated the Trump administration’s warning that while its seeks peace, “all options are on the table.”

About 54,000 personnel are stationed at the U.S. base. Pence toured the facility and met with Air Force Lt. Gen. Jerry Martinez, commander of U.S. Forces Japan. He also was briefed on the capabilities of the base if “diplomacy fails.”

Pence said North Korea has repeatedly responded to overtures from the world with broken promises and provocations. He highlighted his earlier announcement that the United States would continue to intensify what he called a “maximum pressure campaign” and keep it in place until North Korea abandons its nuclear and ballistic missile programs.

“We’re standing in a country that has literally seen ballistic missiles overfly their land twice in a single month. And they’ve seen multiple ballistic missiles land within their economic zone in the Sea of Japan,” Pence later told reporters.

“American forces, the Self-Defense Forces of Japan are ready for any eventuality. And we will continue to make it clear to all parties that the United States and our allies in this region stand ready at a moment’s notice to defend our people and defend our way of life,” he added.

Republicans, Democrats Fight Over Infrastructure Plans

U.S. House of Representatives Democrats on Thursday proposed $1 trillion in new infrastructure spending over 10 years — five times the amount President Donald Trump is expected to offer in his upcoming plan to spur states and cities to seed new public works projects.

Trump will outline his long-awaited plan to use $200 billion to try to generate at least $1.5 trillion in infrastructure improvements over 10 years next Monday, a White House official confirmed earlier this week.

But Democrats want far more government spending, including $100 billion on schools alone as well as billions to expand rural broadband internet service, improve airports, mass transit, roads and ports, boost energy efficiency and improve aging water systems.

House Democratic Leader Nancy Pelosi said Trump’s plan was a “disappointment” and spends too little federal money. The plan “shifts the burden onto cities and states,” she added.

A leaked document last month disclosed administration plans to reduce federal cost-sharing for projects to no more than 20 percent of the costs from the traditional 80 percent.

The Trump administration has previously rejected Democrats’ call to spend $1 trillion in new government spending as not fiscally responsible.

On Wednesday, Democratic and Republican congressional leaders unveiled a spending deal that includes an additional $20 billion over two years “to invest in infrastructure, including programs related to rural water and wastewater, clean and safe drinking water, rural broadband, energy, innovative capital projects, and surface transportation.”

Specific spending details will be left up to members of Congress when they write legislation later this year.

Trump will meet with state and local officials Monday to tout his plan, which includes $100 billion in incentives for state and local projects, $50 billion in grants for rural projects, $30 billion for government lending programs and $20 billion for transformative projects, sources briefed on the matter said.

Trump plans a separate meeting with congressional leaders later next week and is expected to travel to Florida for an infrastructure event next Friday, two officials said.

One big question is how improvements will be paid for.

Democrats did not propose a specific funding mechanism Thursday, and the Trump administration has said it plans to rely on spending cuts to pay for the plan. The White House has not ruled out potential new revenue streams, such as an increase in the gas tax.

US Faith Leaders Urge Trump to Curb Efforts to Limit Refugees

More than 500 evangelical Christian leaders and pastors in the United States called Thursday for President Donald Trump to curb his effort to limit the number of refugees he is allowing into the country.

The church officials are part of World Relief, a global Christian humanitarian organization. They voiced concern about the sharp cutback in the number of refugees to the United States. They say the number declined from nearly 97,000 in 2016 to about 33,000 last year.

Trump has limited the number of refugees the U.S. has accepted as part of his effort to thwart potential terrorists from moving to the nation.

Faith leaders ‘troubled’

In a letter to Trump and members of Congress, the faith leaders said, “We are troubled by the dramatic reduction in arrivals of refugees to the United States,” saying the number this year could fall to the lowest since the refugee resettlement program was started in 1980. 

They said the reduction was occurring “at a time when there are more refugees in the world than ever before in recorded history. Our prayer is that the U.S. would continue to be a beacon of hope for those fleeing persecution.”

The church leaders, who have generally been supportive of Trump’s presidency, acknowledged that “we live in a dangerous world and affirm the crucial role of government in protecting us from harm and setting the terms on refugee admissions. However, compassion and security can coexist, as they have for decades. While we are eager to welcome persecuted Christians, we also welcome vulnerable Muslims and people of other faiths or no faith at all.”

They said Trump’s order to limit the number of refugees entering the U.S. is “robbing families of hope and a future.”

Call for protection of young refugees

The faith leaders also called for protection against the deportation of young immigrants brought illegally into the U.S. years ago by their parents.

Trump also has called for allowing 1.8 million of these immigrants to be allowed to stay in the U.S. after he ended a program started by former President Barack Obama to protect them from being returned to their native countries.

In exchange, Trump wants Congress to fund construction of a wall along the U.S. border with Mexico to thwart further illegal migration and an end to other programs that have allowed hundreds of thousands of other foreign nationals to move legally to the U.S.

Congress is expected to soon debate immigration policy changes, but it is unclear what might be adopted or what legislation Trump might be willing to accept. 

Trump’s Poll Rating Improves After Months of Stagnation

President Donald Trump has been getting a bump up in the polls in recent days, likely thanks to growing public optimism about the U.S. economy.

The latest Quinnipiac University poll has President Donald Trump’s approval rating at 40 percent, his best showing in seven months in that survey. The Gallup weekly tracking poll also had Trump at 40 percent. The last time that happened was mid-September. The Real Clear Politics polling average now has Trump at slightly above 42 percent, a notable change after months of weak readings in the mid to high-30’s.

But political analysts have been quick to caution any presidential progress in the polls could be undone by continuing attacks aimed at opposition Democrats and the ongoing investigation into possible collusion between Russia and Trump’s presidential campaign in 2016.

Blasting Democrats

Trump took his economic message to a factory in Ohio recently where he highlighted the impact of his tax cuts. But the president also took a swipe at Democrats who withheld their applause at his recent State of the Union Address.

“They were like, death, and un-American, un-American.Somebody said treasonous. I mean, yeah I guess, why not? Can we call that treason? Why not?,” he said.

It was a sharp deviation in tone from Trump’s recent address to Congress where he raised the prospect of bipartisanship.

“I call upon all of us to set aside our differences, to seek out common ground and to summon the unity we need to deliver for the people,” a line that generated applause in the House chamber.

Trump’s slightly improving poll numbers suggest voters are beginning to give him some credit for the surging economy. But the attacks on Democrats could undermine his efforts to reach out and broaden his base of support beyond Trump loyalists.

“You know, if Trump is smart he will try to move to the center and make deals with Democrats,” said Jim Kessler of the center-left advocacy group Third Way. “But they have not shown an ability to go more than a week without some disaster occurring. So until they are able to string a couple of weeks together, I expect chaos.”

Russia probe

Trump and some of his Republican allies in Congress also continue to complain about the Russia probe.Dueling Republican and Democratic staff memos have sharpened the divide over whether there was any political motivation to initiate the investigation into Russian election meddling.But Democrats see that as a concerted effort to undermine the investigation led by special counsel Robert Mueller.

“They do not quit with all these conspiracy theories, with all these ridiculous fomentations,” said Senate Democratic leader Chuck Schumer this week. “They do not quit, perhaps because they are afraid of what a real investigation, which Mueller is doing and will continue to do, will reveal.”

The Mueller probe shows no signs of ending anytime soon and the longer it looms over the administration, the more it could become a factor in the November midterm congressional midterm elections.

“That does overhang his presidency,” said John Fortier with the Bipartisan Policy Center in Washington.” We do not know the timing.We do not know the revelations that will come out and it could be a big bombshell one way or the other as we proceed this year.”

Looming midterms

Presidential approval ratings can have a big impact on midterm voting. The party that holds the White House traditionally loses congressional seats in midterms, and those losses are magnified when the president’s approval is under 50 percent. In Trump’s case, he has struggled throughout the first year of his presidency to stay near 40 percent, and that has a lot of Republicans worried about their chances to hold their majority in the House of Representatives. Democrats need to pick up 24 seats in the House to retake the majority.

Republicans hold a 51 to 49 seat edge in the Senate.But Democrats are defending 26 of the 34 seats at stake in the November election and ten of the seats they hold are states that voted for Trump in 2016.

Another good indicator for the midterms is the generic ballot question where voters are asked which party they would prefer to represent them in Congress. Democrats currently have an edge on that question over Republicans by about six points, according to the Real Clear Politics average of several surveys. But that is down from a double-digit Democratic advantage in December, suggesting the strong economy and the slight uptick in Trump’s approval rating might be helping Republicans.

US Stocks Fall on Concern of Rising Rates, Inflation

U.S. stocks tumbled again Thursday as investors continued to fret about the possibility of rising inflation and higher interest rates. 

For the second time in four days, the Dow Jones industrial average sank more than 1,000 points, or 4.2 percent, to end Thursday day at 23,860.

The Standard and Poor’s Index, the benchmark for many index funds, also shed 100.66 points, or 3.8 percent, to close at 2,581. It last hit that low in mid-November.

The two indexes have dropped 10 percent from their all-time highs, set on January 26. That means they are in what is known on Wall Street as a “correction,” fueled by fears that a long stretch of low interest rates and tame inflation, which helped driven up stock prices, might be coming to an end.

As the day wore on, it became evident major U.S. stock indexes were headed toward their fifth loss in the last six days, erasing big gains in the first weeks of the new year.

Stocks began to tumble last Friday after the U.S. Labor Department reported wages grew rapidly in January, sparking concern of higher inflation and lower corporate profits.

Earlier in Europe, stock prices declined and bond yields increased after the Bank of England said it may boost interest rates in response to a strong global economy. Britain’s FTSE-100 Index fell 1.5 percent and Germany’s DAX plunged 2.6 percent.

The picture was brighter in Asia, where Japan’s Nikkei 225 Index climbed just over 1 percent, South Korea’s Kospi Index rose five-tenths of one percent, and Hong Kong’s Hang Seng Index gained four-tenths of one percent. 

Twitter Turns First Profit, But Problems Remain

Twitter says it had first quarterly profit in history and returned to revenue growth in the fourth quarter.

 

Its stock increased in pre-market trading Thursday.

 

Though the results beat Wall Street’s cautious expectations, they don’t solve the company’s broader problems.

 

It’s been dealing with abuse, fake accounts and attempts by Russian agents to spread misinformation. The troubles have been compounded by stagnant user growth.

 

And with a prominent executive leaving shortly, and the CEO splitting its time with another company, Twitter’s now facing questions about just who is minding the store.

 

Twitter has said it’s dealing with the problems. The company has introduced a slew of new measures to weed out abusive accounts. Still, critics say the company is playing whack-a-mole with its problems, with often inadequate responses.

 

China’s January Exports, Imports Surge; US Trade Deficit Grows

China’s export growth accelerated in January amid mounting trade tension with Washington while imports surged as factories stocked up ahead of the Lunar New Year holiday.

Exports rose 11.1 percent compared with a year earlier to $200.5 billion, up from December’s 10.9 percent growth, trade data showed Thursday. Imports surged 36.9 percent to $180.1 billion, up from the previous month’s 4.5 percent.

China’s politically sensitive trade surplus with the United States widened by 2.3 percent from a year ago to $21.9 billion, while its global trade gap narrowed by 60 percent to $20.3 billion.

“Export growth remained robust in January, indicating steady global demand momentum,” said Louis Kuijs of Oxford Economics in a report.

“While we expect the favorable external setting to continue to support China’s exports, rising U.S.-China trade friction remains a key risk,” Kuijs said. “We expect the U.S. administration to scale up on measures impeding imports from China.”

US import duties

Beijing’s steady accumulation of multibillion-dollar trade surpluses with the United States has prompted demands for import controls.

President Donald Trump’s administration has increased duties on Chinese-made washing machines, solar modules and other goods it says are being sold at improperly low prices. It is set to announce results of a probe into whether Beijing improperly pressures foreign companies to hand over technology, which could lead to further penalties.

Exports to the United States rose 12.1 percent in January from the same time last year to $37.6 billion while imports of U.S. goods rose 26.5 percent to $15.7 billion, according to the General Administration of Customs of China.

Exports to the European Union, China’s biggest trading partner, rose 11.6 percent to $33.7 billion while purchases of European goods rose 44.4 percent to $23.8 billion. China reported a $9.9 billion trade surplus with the EU but that was down 29.8 percent from a year earlier.

Trade war accusations

Chinese authorities have accused Trump of threatening the global trade regulation system by taking action under U.S. law instead of through the World Trade Organization. Beijing has filed a challenge in the WTO against Washington’s latest trade measures.

Beijing announced an anti-dumping investigation last weekend of U.S. sorghum exports. In response to suggestions the move was retaliation for Trump’s increase tariffs, Chinese government spokespeople say it is a normal regulatory step.

January’s import growth was driven in part by demand from factories that are restocking before shutting down for the two-week holiday. Each year, the holiday falls at different times in January or February, distorting trade data.

Forecasters expect Chinese demand to weaken this year as Beijing tightens controls on lending to slow a rise in debt. That is a blow to its Asian neighbors, for which China is the biggest export market, and for suppliers of iron ore and other commodities such as Brazil and Australia.

Dutch Bank to Pay $369 Million in Drug Cartel Money-Laundering

Dutch lender Rabobank’s California unit agreed Wednesday to pay $369 million to settle allegations that it lied to regulators investigating allegations of laundering money from Mexican drug sales and organized crime through branches in small towns on the Mexico border.

The subsidiary, Rabobank National Association, said it doesn’t dispute that it accepted at least $369 million in illegal proceeds from drug trafficking and other activity from 2009 to 2012. It pleaded guilty to one count of conspiracy to defraud the United States for participating in a cover-up when regulators began asking questions in 2013.

The penalty is one of the largest U.S. settlements involving the laundering of Mexican drug money, though it’s still only a fraction of the $1.9 billion that Britain’s HSBC agreed to pay in 2012. It surpasses the $160 million that Wachovia Bank agreed to pay in 2010.

Three execs behind cover-up

Under the agreement, the company will cooperate with investigators. The federal government agreed not to seek additional criminal charges against the company or recommend special oversight.

The settlement describes how three unnamed executives ignored a whistleblower’s warnings and orchestrated the cover-up. Two of the executives were fired in 2015 and one retired that year.

“Settling these matters is important for the bank’s mission here in California,” said Mark Borrecco, the subsidiary’s chief executive.

In 2010, Mexico proposed new limits on cash deposits at the country’s banks, resulting in more tainted deposits at Rabobank branches in Calexico and Tecate, according to the plea agreement. Accounts in the two border towns soared more than 20 percent after Mexico’s crackdown, and bank officials knew the money was likely tied to drug trafficking and organized crime.

Risky customers escaped scrutiny, including one in Calexico who funneled more than $100 million in suspicious transactions. Customers in Tecate withdrew more than $1 million in cash a year from 2009 to 2012, often in amounts just under federal reporting requirements.

“The cartels probably thought these were sleepy towns, no one’s going to notice,” said Dave Shaw, head of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in San Diego. “When you bring in $400 million, someone is going to notice. The bank should have known and they just chose not to report any suspicious activity.”

Punishment for cover-up, not crime

Heather Lowe, legal counsel and government affairs director at research and advocacy group Global Financial Integrity, said the illegal activity bore similarities to what happened with HSBC and Wachovia.

But those banks were charged with laundering Mexican drug proceeds, while Rabobank only acknowledged covering it up.

“It seems in this case we have the bank taking the hit for lying but not for the violations themselves,” said Lowe, who expects the three unnamed executives will be prosecuted.

A whistleblower alerted two of the three executives to suspicious activity in 2012 and shared her concerns with the bank’s “executive management group,” according to the plea agreement. She also spoke with regulators amid concerns in the company that the government scrutiny could endanger a pending merger. She was fired in July 2013.

The government has a cooperating witness in former compliance officer George M. Martin, who agreed in December to cooperate with authorities in a deal that delayed prosecution for two years.

Martin, a vice president and anti-money laundering investigations manager, acknowledged he oversaw policies and practices that blocked or stymied probes into suspicious transactions and said he acted at the direction of supervisors, or at least with their knowledge.

Martin told investigators that he and others allowed millions of dollars to pass through the bank.

Rabobank, based in Utrecht, Netherlands, said last month that it set aside about 310 million euros ($384 million) to settled allegations against its subsidiary. Sentencing is scheduled May 18.