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China keeps growth target at 6.5 percent, stays focused on financial risks

BEIJING (Reuters) – China aims to expand its economy by around 6.5 percent this year, the same as in 2017, while pressing ahead with its campaign to reduce risks in the financial system, Premier Li Keqiang said Monday.

The goal was kept unchanged even though the economy grew 6.9 percent last year and exceeded the government’s target. Sources previously told Reuters that China will maintain its growth target at“around 6.5 percent”.

Economists had already expected the world’s second-largest economy to lose some momentum this year as the government deepens its push to contain a build-up in corporate debt, while a war on pollution and a cooling property market weigh on its manufacturers.

Reinforcing views that Beijing’s attention remains firmly fixed on credit risks and better quality growth, when Li unveiled the GDP target he omitted previous wording saying growth could be“higher if possible.”

In his annual work report, Li also said China has cut its budget deficit target for the first time since 2012, suggesting Beijing will be more watchful of fiscal spending while not tapping the brakes so hard that it risks a sharper slowdown.

“Policy wise, the report definitely has a tightening bias,” said Betty Wang, senior China economist at ANZ in Hong Kong.“In line with expectations, the government is pushing through their reform agenda.”

But last week’s escalation in trade tensions with the United States has jumped to the top of the list of uncertainties facing China this year.

President Donald Trump said he would impose hefty tariffs on imported steel and aluminum to protect U.S. producers, risking retaliation from major trade partners like China and sparking fears of a global trade war.

Li said China opposes protectionism and supports the settlement of trade disputes through negotiation, but will“resolutely safeguard” its legitimate rights and interest.

  • China confident it can reach 2018 growth target: cabinet research head
  • China cuts budget deficit ratio for first time since 2012
  • China says supports negotiation to settle trade disputes

Yet, China will keep its yuan currency basically stable, Li said in remarks to the opening of the annual meeting of parliament.

He said a steady rise in import and export volumes can be expected this year, a view unchanged from a year ago. No export target was given for the third straight year.

“We can expect continued recovery of the global economy, but there are also many factors that bring instability and uncertainty,” the premier said.

“The policy changes of the major economies and their spillover effects create uncertainty; protectionism is mounting, and geopolitical risks are on the ascent,” Li said.

China’s economic and financial risks“are generally under control” but more needs to be done to resolve issues such as local government debt, Li said. He also said China will improve supervision over shadow banking, internet finance and financial holding companies, and step up risk controls at financial institutions.

DEFICIT TARGET TRIMMED

Li said China has cut its budget deficit target to 2.6 percent of GDP from 3 percent in 2017. Most analysts had expected it to be maintained or trimmed only slightly.

However, since the economy has been expanding at such a strong pace, analysts said the cut was again more symbolic of Beijing’s intention to further control debt growth.

“The actual figure is even lower than we expected…a 2.6 percent deficit would be about 2.3 trillion yuan ($363.5 billion) in absolute terms, which equals to the 2016 level,” said ANZ’s Wang.“It shows the government’s determination to control leverage in the economy.”

Heavy government infrastructure spending was a major driver behind China’s forecast-beating growth last year, but Beijing has been cracking down recently on some projects launched by local governments as it seeks to curb their spending.

Despite the lower deficit ratio, the absolute amount of the deficit is expected to remain unchanged at 2.38 trillion yuan ($376 billion), according to the finance ministry’s annual budget report.

MONETARY POLICY NEUTRAL

Li also reiterated that China will keep its monetary policy“prudent” and“neutral”, neither too loose nor too tight, and will maintain reasonably steady liquidity, he said.

While the central bank has been gingerly raising money market rates to discourage riskier lending practices, it has also kept markets well supplied with funds when there are worries of a deeper cash squeeze, and bank lending hit a fresh record last year.

Li also said he expects reasonable growth in broad M2 money supply and total social financing this year, without stating a target.

The National Development and Reform Commission, the state planner, said separately that outstanding total social financing (TSF) and M2 will grow at a similar pace this year as in 2017.

TSF grew 12 percent last year, in line with the target, but M2 growth slowed to 8.2 percent, below the goal of around 12 percent. ANZ had expected both targets to be set at 10 percent or lower this year.

“If I remember it right, it’s the first time that they don’t have a specific target in two decades. It shows authorities now prefer a tighter stance on monetary policy,” Wang said.

“Overall both monetary and fiscal policy will be tighter than last year, because the government wants to control financial leverage and overall debt levels.”

China also set its consumer inflation goal at“around 3 percent”, in line with last year, as widely expected.

Stability will be the watchword this year as President Xi Jinping pursues his vision of turning China into a“modestly prosperous” nation by 2020.

To hit the 2020 goal, the economy needs to expand at least 6.3 annually over the next three years, officials have said.

Xi also wants China to become a“strong power” on the world stage by 2050.

In the government’s 2018 budget report, defense spending saw its biggest increase in three years.

China will also continue to cut more steel and coal production, deepening its vow to make“skies blue again”, as Beijing chases quality over dizzying, polluting growth.

The ruling Communist Party last month set the stage for Xi to stay in office indefinitely, with a proposal to remove term limits from the constitution.

Key Xi ally, former top graft buster Wang Qishan, sat on the same row as Standing Committee members on the front stage of the Great Hall, despite having stepped down from the elite seven-man body which runs China in October. He is expected to become vice president, with a specific role dealing with the Trump administration.

Graphic: China’s economic trends – tmsnrt.rs/2iO9Q6a

Reporting by Kevin Yao and Sue-Ling Wong; Additional reporting by Xiaochong Zhang, Elias Glenn, Stella Qiu, Cheng Fang, Lusha Zhang, Shu Zhang, Cate Cadell, Tom Daly, Muyu Xu, Yawen Chen, Christian Shepherd, Ben Blanchard; Writing by Ryan Woo; Editing by Kim Coghill

A US Aircraft Carrier’s Historic Vietnam Port Call Sends a Message to China

(DANANG, Vietnam) — For the first time since the Vietnam War, a U.S. Navy aircraft carrier is paying a visit to a Vietnamese port, seeking to bolster both countries’ efforts to stem expansionism by China in the South China Sea.

Monday’s visit by the USS Carl Vinson, accompanied by a cruiser and a destroyer, brings more than 6,000 crew members to the central coastal city of Danang, the largest such U.S. military presence in Vietnam since the Southeast Asian nation was unified under Communist leadership after the war ended in 1975.

The visit comes at a time when China is increasing its military buildup in the Paracel islands and seven artificial islands in the Spratlys in maritime territory also claimed by Vietnam. China claims most of the South China Sea and has challenged traditional U.S. naval supremacy in the western Pacific.

“The visit of aircraft carrier USS Carl Vinson to Vietnam signifies an increased level of trust between the two former enemies, a strengthened defense relationship between them, and reflects America’s continued naval engagement with the region,” said Le Hong Hiep, a research fellow at the Singapore-based ISEAS-Yusof Ishak Institute.

Read more: ‘We’re Gonna Do What International Law Says We Can Do.’ Aboard the USS Carl Vinson in the South China Sea

The ships’ mission — a “friendship” visit that includes technical exchanges, sports matches and other community activities, according to Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang — marks a fine-tuning, rather than a turning point in relations. The U.S. Navy has staged activities in Vietnam for its Pacific Partnership humanitarian and civic missions in nine of the past 12 years.

Hang said the visit would “continue to promote bilateral relations within the framework of the two countries’ comprehensive partnership and contribute to maintaining peace, stability, security, cooperation and development in the region.”

The United States normalized relations with Vietnam in 1995 and lifted an arms embargo in 2016, and the two former adversaries have steadily improved bilateral relations in all areas, including trade, investment and security.

The inclusion in this week’s visit of an aircraft carrier — a more than 100,000-ton manifestation of U.S. global military projection — reaffirms closer relations as Beijing flexes it political, economic and military muscle in Southeast Asia, and Washington seeks to re-establish its influence.

“Although the visit is mainly symbolic and would not be able to change China’s behavior, especially in the South China Sea, it is still necessary in conveying the message that the U.S. will be there to stay,” Hiep said.

Separately from this week’s mission, U.S. officials have said American warships continue sailing without prior notice close to China-occupied islands and atolls, an aggressive way of signaling to Beijing that it does not recognize its sovereignty over those areas.

Hiep said that the Carl Vinson’s visit is likely to irritate China, but that Beijing will not take it too seriously.

“They understand well the strategic rationale behind the rapprochement between Vietnam and the U.S., which was largely driven by China’s growing assertiveness in the South China Sea,” he said. “However, China also knows that Vietnam is unlikely to side with the U.S. militarily to challenge China.”

Vietnam, while traditionally wary of its huge northern neighbor, shares China’s system of single-party rule and intolerance for political dissent.

Economic relations with the United States in recent years have served as a counterbalance to Vietnam’s political affinity with China.

“The United States now is a very important trading partner with Vietnam and it is the most important destination of Vietnam’s exports,” said Joseph Cheng, a professor of political science at the City University of Hong Kong. “In terms of security, both countries certainly share substantial common interest in the containment of China in view of the territorial dispute between China and Vietnam.”

“However, it seems that Vietnam does not intend to become an ally of the United States. It is basically a kind of hedging strategy, a kind of balance of power strategy,” he said.

The first U.S. Marines arrived in Danang in 1965, marking the beginning of large-scale American involvement in the war, which ended in 1975 with the communist North’s victory, reunifying the country. Some 58,000 American soldiers and an estimated 3 million Vietnamese were killed in the war.

Danang, which was a major U.S. military base during the war, is now Vietnam’s third-largest city and is in the midst of a construction boom as dozens of resorts and hotels pop up along its scenic coastline.

Several Danang residents said Monday that they welcomed the Navy’s visit.

“During the war, I was scared when I saw American soldiers,” said Tran Thi Luyen, 55, who runs a small coffee shop in the city. “Now the aircraft carrier comes with a complete different mission, a mission of peace and promoting economic and military cooperation between the two countries.”

Huynh Quang Nguyen, a taxi driver, echoed the sentiment.

“I’m very happy and excited with the carrier’s visit,” he said. “Increased cooperation between the two countries in economic, diplomatic and military areas would serve as a counterbalance to Beijing’s expansionism.”

The 2018 Oscars’ running jet ski gag was pure genius

After a contentious year in Hollywood — the year of the Harvey Weinstein scandal and the seemingly endless scandals that followed, the year of #MeToo and Time’s Up — it was inevitable that the 2018 Oscars would be somewhat political. And they were, with both grave, serious commentary on diversity and inclusion in Hollywood, and copious derisive jokes aimed at Mel Gibson, “white people with clipboards,” and Donald Trump.

But the real star of the night was a green jet ski, awarded at the end of the evening to Phantom Thread costume designer Mark Bridges to commemorate the fact that his acceptance speech was the shortest one of the night.

For decades now, the Oscar ceremony has been a lengthy affair, usually running three or four hours, and sometimes going overtime. It’s usually made even longer by traditional, tedious “this show is so long” jokes from the hosts. This year, host Jimmy Kimmel went in a different direction in his opening monologue:

Okay, before we start handing out the awards, some history, because we’re going to do things a little bit differently. The first Oscar ceremony lasted, this is true, 15 minutes, from beginning to end. And people still complained.

So if you do win an Oscar tonight, we want you to give a speech. We want you to say whatever you feel needs to be said. Speak from the heart. We want passion. You have an opportunity and a platform to remind millions of people about important things like equal rights and equal treatment. If you want to encourage others to join the amazing students at Parkland at their march on the 24th, do that. If you want to thank a favorite teacher, do that. Or maybe you just want to thank your parents and tell your kids to go to sleep. What you say is entirely up to you. You don’t have to change the world. Do whatever you want.

But with that said, this is a really long show. So here’s what we’re going to do. Not saying you shouldn’t give a long speech, but whoever gives the shortest speech tonight will go home with — Johnny, tell them what they’ll win.


Photo by Kevin Winter/Getty Images

At which point a curtain opened, revealing an $18,000 jet ski, presented game-show style by an announcer and actress Helen Mirren. Throughout the ceremony, Kimmel periodically appeared with a stopwatch, reminding winners that he was timing their speeches, and occasionally commenting on who was in the lead. “Why waste precious time thanking your mom when you could be taking her for the ride of her life on a brand new jet ski?” Kimmel asked at one point.

As running Oscar gags go, the jet ski bit certainly beat some of the draggier ones in recent years, like the tedious 2015 bit where Neil Patrick Harris repeatedly asked actress (and 2018 Best Supporting Actor nominee) Octavia Spencer, who hadn’t been warned in advance, to spend the ceremony watching an onstage box that supposedly contained his Oscar predictions. The jet ski contest likely didn’t actually make any of the speeches shorter — winners like 14-time nominee and first-time winner Roger Deakins, who spend a lifetime working up to an award, aren’t going to waste their moment in the spotlight in order to compete for a prize. “I guess I better say something, or else they’ll give me a jet ski, and I don’t see myself on a jet ski somehow,” joked the 68-year-old Deakins just before beginning his speech.

He wasn’t the only winner to throw in a spontaneous reference to the gag. “Obviously I’m not going to win the ski,” chuckled Gary Oldman, toward the end of his three-minute acceptance speech for Best Actor for Darkest Hour. “Run that clock, Jimmy, I wanna get that ski jet or whatever that was,” Sam Rockwell said, as he fumbled out his speech notes after winning Best Supporting Actor for Three Billboards Outside Ebbing, Missouri.

The entire jet ski idea was inherently pretty silly. Given some of the past controversy over Oscar “goodie bags” — the luxury swag given away to Oscar presenters by companies looking for brand recognition — the idea of awarding an already-rich filmmaker with an ultra-luxury item could potentially be seen as tone-deaf or offensive. And consciously turning the Oscars into a tacky game show in the hopes of getting a few people to shave 30 seconds off their awards speeches wasn’t necessarily in the interest of the dignified tone the ceremony often attempts to reach.

But as “Oscars too long” riffs go, the jet ski business was actually brilliant. For one thing, it put an entirely new spin on an old complaint, one that’s been around at least since the 1970s with very little variation. The “man, this show is long” jokes have always worked against the Oscars, by turning a celebration of film into a series of complaints about having to spend too much time celebrating film. They’ve always had a nagging, petty tone, to the effect of “Why are we even here doing this? We kinda hate it.”

Instead, the jet-ski nonsense turned the complaints into a sort of faux-positive, upbeat rallying cry, a way for Kimmel and the other onstage participants to imply the same sorts of concerns about the show’s length without actually whining about them or being derisive. The gag turned the Oscars into a shared competition instead of a shared complaint.


Photo by Matt Petit/A.M.P.A.S via Getty Images

And it gave audiences a reason, however mild and tongue-in-cheek, to stay invested in every speech, even if they weren’t necessarily familiar with the winner or the film being honored. (At the Oscars viewing party I hosted, some of the attendees started yelling “Jet ski! Jet ski!” after particularly punchy speeches, and speculating over whether, when two or three people won in a team and each gave two-line thank yous, their individual time was up for consideration.)

And perhaps most importantly, after the setup, Kimmel and the show writers and runners didn’t beat the gag into the ground. Just having Kimmel turn up with a stopwatch was enough to remind viewers about the joke. The mid-ceremony business where he upped the ante to include a free trip to Arizona’s Lake Havasu was maybe more than he needed — it raised the question, “How much bigger is this going to get?” But ultimately, the show didn’t beat the joke into the ground any more past that point. And the ceremony’s final moments, where Bridges and Mirren were carted out onstage on the jet ski, were pretty delightful. Their big, goofy grins were a reminder that the Oscars are at their best when people are allowed to have a sense of humor as well as a sense of gravitas.

Kobe Bryant Says Winning an Oscar Better Than NBA Championship and 8 Other Things You Didn’t See on TV

From Warren Beatty and Faye Dunaway redeeming themselves as presenters to The Shape of Water taking home the trophy for “Best Picture,” the 90th Academy Awards brought us an array of exciting moments. But there were many behind the scenes moments that didn’t make the broadcast. From Kobe Bryant declaring his victory “better than a basketball championship” to Frances McDormand commanding her second standing ovation of the night, here are eight backstage moments that you didn’t see on television.

1. Sam Rockwell walked backstage holding his Oscar in his left hand and a beer in his right, clutching both equally as tight. As he climbed up on the podium to field questions from the press, he raised his Oscar over his head, flashing a beaming grin, and taking a celebratory sip of his beer. At the end of Rockwell’s acceptance speech, he dedicated his win to Philip Seymour Hoffman, but the Three Billboards Outside Ebbing, Missouri star didn’t realize that his words about the late actor had made the telecast. When asked about the gesture, he smiled and said, “Oh. You heard that? Good! Because I thought the music was going.” Speaking about Hoffman made Rockwell fight back tears. “He was very close to me and he was an inspiration to all of my peers,” he said. “Whoever was in my age range, Phil Hoffman was the guy.” Rockwell also revealed that in addition to being a celebrated actor, producer and director, Hoffman was a talented athlete. “He was a bit of a jock. He was a wrestler and he played basketball. He inspired me and I could go on for an hour about Phil Hoffman,” he proclaimed.

Rockwell also touched on his award-winning performance as Jason Dixon in Three Billboards Outside Ebbing, Missouri, joking that in real life the characters would have had a very different finale. “They have a lot of work to do, Mildred and Dixon—it’s not like they are all of a sudden redeemed at the end of the movie—and maybe some therapy,” he said, referring to the movie as “a dark fairy tale.” “If it was real life, we would have probably both gone to prison. That’s sort of the way I see it,” noted Rockwell.

2. Nobody was as excited to win an Oscar as Kobe Bryant. After leaving the Academy Award stage, the 18-time NBA All-Star was almost out of breath with excitement when he took the podium in the pressroom. “I feel better than winning a championship to be honest with you. I swear I do!” he exclaimed. “You know growing up as a kid, I dreamt about winning championships and worked really hard to make that dream come true. But then to have something like this come seemingly out of left field [is amazing],” he said. Bryant added that when he first decided to transition from basketball into writing, he had a lot of people scoff. “I said I wanted to be a storyteller and I got a lot of ‘that’s cute. You’ll be depressed when your career is over and you’ll come back to playing.’ I got that a lot,” he says. But Bryant is happy to have proved the naysayers wrong. “To be here now and to have that sense of validation, this is crazy man! It’s crazy!” He also joked that the best part about winning an Oscar vs. an NBA championship is not having to sit in a tub of ice post victory.

Bryant also touched on how learning to write was a different mental process than becoming a hoop shooting mastermind: “When you’re playing basketball, the hardest thing to do is to get out of the way of yourself—to try to disassociate any sense of ego that you have to perform. With writing, it feels like you have to get in a deeper connection with yourself—to better understand the fears and insecurities that are going on below the surface so that in turn you can better communicate those,” he said.

His advice for retired athletes? “Find the thing that you love to do. I wake up in the morning and I can’t wait to write. I can’t wait to get to the studio. When you find the thing that you love to do, everything else tends to make sense,” he says.

The retired NBA star divulged that he and Dear Basketball director Glen Keane have been working on a series of five original novels and that when he first had the idea to start a studio, he phoned Oprah. “She was very gracious enough to spend an hour and some change on the phone with me, walking me through every step of the way. I cannot thank her enough for that.”

(Alberto E. Rodriguez/Getty Images)

3. Frances McDormand brought The Oscars ballroom to its feet and it stayed there well after her speech. And very much in line with her moment of #GirlPower, when she asked the female nominees in attendance to stand, McDormand’s category mates showed their love and appreciation for one another. When the show went to commercial break, Sally Hawkins, Margot Robbie, Saoirse Ronan and Meryl Streep all embraced in one giant adorable group hug. They then took turns embracing each other individually and chatting with one another. There was lots of laughing and a rainbow of smiles. Nicole Kidman wasn’t in the category but she too wanted in on the action. After Streep took her seat, Kidman kicked off her high heels to snuggle up next to The Post actress and the duo began chatting away.

4. Speaking of taking your shoes off, the pumps were the first thing to go as Allison Janney arrived backstage. “I have to take my shoes off,” she proclaimed. She proceeded to do a quick Vanna White and show off her gown. “So usually my dress looks like this but my feet are bleeding,” she proclaimed, before playfully parting ways with her heels. The I,Tonya actress revealed that she has to be at a table read for her CBS show Mom on Monday morning at 10 a.m. and that going back to work was going to be her saving grace.

“I am so happy that I have a job to go to after something like this because it can go to your head. And then to wake up tomorrow and have this whole thing be over, I’m going to have a big crash down after this. So I’m happy that I have the people at Mom to lift me up and keep me going and keep me focused. I’m just happy to have a job to go to tomorrow but this was extraordinary!” she exclaimed.

Janney, who has spoken in the past about almost quitting acting in her early years, revealed that she didn’t “dare to dream” about things like winning an Oscar. “I didn’t want to be disappointed. At a certain point, I had given up thinking this would happen to me because I didn’t get the types of roles that would give me attention like this,” she revealed. But when asked what her inner voice was telling her at this moment, she smiled and said, “Bravo! Good going girl! I’m proud of you.”

Janney raved about I, Tonya screenwriter Steven Rogers for creating such a fitting part for her. To show her appreciation, she’s going to buy him a nice gift. “I think I’m going to get him a Rolex and engrave it on the back,” she said. “I haven’t figured out what. But I need to get him a great present. That’s a start at least!”

5. Frances McDormand got a second standing ovation when she made her way into the Oscars pressroom. “Don’t give me any more attention because it will all go to my head,” she said, with a laugh. The Three Billboards Outside Ebbing, Missouri star then proceeded to explain what she meant when she referenced “inclusion riders” in her acceptance speech: “I just found out about this last week. There has always been available to everybody that does a negotiation on a film an inclusion rider, which says that you can ask for or demand at least 50 percent diversity in not only the casting but also the crew. And so, the fact that we — that I just learned that after 35 years of being in the film business, it’s not — we’re not going back.” she said. The actress also touched on how happy she is to see the diversity movement taking off.

“The whole idea of women trending? Not trending. African-Americans trending? Not trending. It changes now. And I think the inclusion rider has something to do with that. Power in rules!” she explained.

(FREDERIC J. BROWN/AFP/Getty Images)

6. Even though many predicted that Guillermo del Toro would win the Oscar for Best Director, The Shape of Water director revealed backstage that he didn’t prepare a speech ahead of time. “The only time I wrote a speech was in the beginning and I pulled out the paper and I couldn’t read it. I was sweating into my eyes,” he said. As far as the words he exchanged on stage tonight, del Toro says he was speaking from his heart and releasing whatever he was feeling in that moment. And though he got to thank a lot of people, the renowned director joked that he didn’t get to everyone that was on his list. What would he have added to his speech, had he had more time? “I have a lot of cousins, man!” he proclaimed. As far as what he’s doing next, del Toro is taking a pause. “My next stop is I’m going to see my mom and my dad next week. I’m going back home with this too!” he said, as he proudly held his Oscar out for the room of reporters to see.

7. Jordan Peele almost didn’t become a director. “I almost never became a director because there was such a shortage of role models,” he revealed, backstage at the Oscars. “We had, John Singleton, the Hughes Brothers, but they felt like the exception to the rule. I’m so proud to be a part of the beginning of a movement where I feel like the best films in every genre are being brought to me by my fellow black directors. It’s very special and I think that goes for all areas of inclusion. This is a very special time,” he said.

Peele also told the room that the person that he really credits as motivating him to take the leap was Whoopi Goldberg. “When the nominations came out, I had this amazing feeling of looking at the 12-year-old that had this burning in my gut for this type of validation and it instantly realized that an award like this is much bigger than me. This is about paying it forward to the young people who might not believe that  they could achieve the highest honor in whatever craft they push for. You’re not a failure if you don’t get this but I almost didn’t do it because I didn’t know there was a place for me. Whoopi Goldberg in her acceptance speech for Ghost was a huge inspiration to me. When I got nominated, one of the first things I did was reach out and thank her for telling young people they could do this. I’m hoping to do the same,” he said.

8. And Gary Oldman, the man of the hour, said winning his first Oscar was extra special since it was for Darkest Hour. “It feels like it has a special significance. I can’t say what it would be like to win an Oscar any other year but winning an Oscar for playing arguably one of the greatest Brits who ever lived, to win it for playing Winston makes it undoubtedly special.” He called working on the film “an unforgettable experience and a highlight of my career.”

Oldman laughed when a reporter asked him what he thought that Churchill would say to the politicians of today, if her were still alive. “My God. He would give them a good talking to wouldn’t he?” he said, with a laugh, noting that none of today’s leaders look at history. “[Winston] was a big believer that you looked at history to move forward. There was a survey done and young people were asked about Winston Churchill. Many of them thought he was a soldier in the first World War or a dog in a TV commercial in Britain. We don’t teach history anymore do we? They don’t know anything about it,” he said.

Oldman also revealed that having put himself in Churchill’s mindset during the time period of the film made him question how the former UK Prime Minster could sleep at night. “When you are in a position like Winston was in 1940 in the movie where he sends 4,000 men to their death to save 300,000…. I don’t know how you then sleep soundly in your bed on the evening of the day when you send 4,000 innocent men to their death.”

Italy is heading for a hung parliament with a euroskeptic, right-wing party seeing strong gains

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Italy’s parliamentary elections are heading for a hung parliament, with a center-right coalition set to win more seats than the anti-establishment Five Star Movement (M5S).

The election has turned Italian politics on its head, with far-right, anti-establishment and euroskeptic parties seeing strong gains.

As the official vote count continued on Monday morning, after the ballot on Sunday, it showed the Five Star Movement (M5S) would be the largest single party, but a center-right bloc — which features former Prime Minister Silvio Berlusconi’s Forza Italia party — would gain the most seats.

With three-quarters of the vote counted, as of 9:00 a.m. local time, the early results showed that no one party or bloc would have a majority of votes enabling it to govern alone. This signals a potentially long, drawn-out and likely fractious negotiation process in order to form a government.

Government vote data on Monday morning showed the center-right alliance with around 37 percent of the vote and anti-establishment M5S with 32 percent of the vote. The center-left bloc, including the ruling Democratic Party (PD) which took a drubbing in the vote, was seen with 23 percent of the vote.





Euroskeptic Lega sees strong gains

An earlier exit poll indicated that the center-right alliance would gain between 248 to 268 seats in the lower house of parliament, short of the 316 needed for a majority. This center-right bloc is formed of Berlusconi’s Forza Italia and the center-right party Noi con l’Italia, as well as Lega (formerly Lega Nord) and Fratelli d’Italia.

Crucially, the vote count so far appeared to show the anti-immigration and euroskeptic party Lega, led by Matteo Salvini, with a higher share of the vote than Berlusconi’s Forza Italia. This means the party could push its right-wing agenda at a national level in a future coalition government.

Salvini said the result was “historic” for his party, one which has moved away from its roots of campaigning for an independent northern region to campaign on a national level. He tweeted his thanks to voters.

Meanwhile, Italy’s defeated PD party looks likely to end up in opposition. “If this is the result, for us it is a defeat, and we will move into the opposition,” PD lower house leader Ettore Rosato said late on Sunday, according to Reuters.

Expected hung parliament

If the final result is a hung parliament then weeks of talks between the parties could lie ahead. The Italian constitution specifies no time limit for parties to reach an agreement or call a fresh election.

M5S has not entered any coalition, although party leader Luigi Di Maio told CNBC in early February that if the party did not gain a majority to govern alone, it was willing to speak to other parties, although he did not say which ones.

Thus, potentially M5S could link up with other parties to form a coalition large enough to gain a majority in the lower house. Likewise, the center-right alliance could also renegotiate with other parties.

Kit Juckes, chief global strategist at Societe Generale, said that the Italian election had “produced slightly more uncertainty than expected” with the center-right’s success being dominated by Lega Nord’s gains.

“Pretty much all pundits rule out an alliance between Five-star and Lega Nord, expecting instead a protracted period of coalition-building led by the center-right,” he said in a research note.





Closely-watched in Europe

Sunday’s vote is being closely-watched in Europe to see if populist, anti-establishment parties such as M5S could take a governing position in the Italian parliament. Following an election campaign that featured immigration as a hot topic, the vote was seen as test of strength for far-right parties, such as Fratelli d’Italia and Lega, that have campaigned on an anti-immigration stance.

European politicians will be watching the result with concern as it could prompt the euro zone’s third-largest economy to take a more critical and oppositional stance to the European Union and the single currency. Lega leader Salvini has repeatedly called the euro a “failed experiment” and has criticized Europe.

Sunday March 4 had started positively for Europe with Social Democratic Party (SPD) members in Germany voting to approve the party joining a so-called grand coalition with Chancellor Angela Merkel’s conservative bloc, ending political instability there, just as it started in Italy.

Italy’s fragile economy was also a feature in the run-up to the election with somewhat lackluster growth and an unemployment rate of 11.1 percent dominating the debate. On Friday, fourth-quarter gross domestic product (GDP) showed the economy expanded by 0.3 percent from the previous quarter.

The country’s banking system is still mired in non-performing loans amounting to more than 300 billion euros ($368.5 billion). Italy’s debt-to-GDP ratio stood at 133 percent in 2017, according to the International Monetary Fund.

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Confusion in the Florida Senate as AR-15 ban fails to pass

TALLAHASSEE, Fla. — It appeared Florida’s upper chamber had approved a ban on AR-15-style rifles Saturday, but a later roll call vote clarified that it did not have the votes to pass. After it appeared the two-year moratorium on the sale, delivery and transfer of AR-15-style rifles had passed by a voice vote, minutes later, that motion was reconsidered, and ultimately reversed by a roll call vote, with 17 votes in favor of the amendment and 21 against it. 

Democrats had introduced the two-year ban as an amendment to a broader GOP-led bill on gun reforms. The GOP bill imposes safeguards to keep guns out of the hands of mentally ill individuals who might harm themselves or others, and strengthen background checks at the point of sale, among other things. Students and others in Florida have called for stricter gun control measures, in the wake of the Marjory Stoneman Douglas High School shooting that left 17 dead last month. 

That battle over tougher gun measures is waging on in Capitol Hill, too, as Congress struggles to determine what it is the president wants. President Trump has said he wants stronger background checks, gun access restriction for the mentally ill and the ability to arm teachers. 

Mr. Trump also expressed an interest in raising the minimum age for purchasing some firearms to 21, saying Republicans are opposed to considering such a measure because they are “petrified of the NRA.” But the day after Mr. Trump expressed an openness to gun restrictions in a bipartisan meeting with lawmakers, the president met with the NRA. NRA executive director Chris Cox tweeted Thursday night following that meeting that Mr. Trump will not pursue gun control. 

Florida’s senators don’t see eye to eye on gun control measures either. 

Sen. Marco Rubio, a Republican, has pushed a bill to enhance criminal background checks, a bill requiring the FBI to tell states when someone fails a background check, a program for intervening when children are potential threats, and some form of temporary gun-violence restraining order. Sen. Bill Nelson, a Democrat, has pushed for a ban on assault-style rifles. 

On Saturday, lawmakers spent nearly eight hours debating dozens of amendments to the 100-page bill to strengthen school safety procedures and restrict gun purchases. They eventually approved the legislation for a final vote on Monday.

It was clear that senators were divided on the bill, and not just on party lines. While crafted by Republicans, some GOP senators still opposed it because they don’t agree with raising the minimum age to purchase a rifle — from 18 to 21 — or requiring a waiting period to buy the weapons.

Democrats believe the legislation doesn’t go far enough in some ways and too far in others. And while some oppose the bill, others believe it’s at least a first step toward gun safety.

The bill includes provisions to boost school security, establish new mental health programs in schools, and improve communication between schools, law enforcement and state agencies. But much of the debate Saturday revolved around gun control and whether people should have a right to own an assault rifle.

“Every constitutional right that we hold dear has a limitation,” said Democratic Sen. Gary Farmer. “These are just military-style killing machines and the right of self-defense and the ability to hunt will go on.”

Republicans argued that banning such weapons would violate the Second Amendment right to bear arms.

“Our founding fathers weren’t talking about hunting, and they weren’t talking about protecting themselves from the thief down the street who might break in,” said Republican Sen. David Simmons. Simmons said people need guns to protect themselves from a tyrannical government.

“Adolf Hitler confiscated all the weapons — took all the weapons, had a registry of everybody — and then on the night of June 30th, 1934, sent out his secret police and murdered all of his political opponents,” Simmons said. “You think it doesn’t happen in a free society? It does.”

The Legislature wraps up its annual session on Friday. Lawmakers are scrambling to take some kind of action before then. The full House has yet to take up its version of the bill.

Republican Gov. Rick Scott has been lobbying lawmakers to pass his plan to assign at least one law-enforcement officer for every 1,000 students at a school. Scott is opposed to arming teachers.

Cops: Student acted erratically day before he killed his parents at Central Michigan University

A day before a Central Michigan University sophomore from southwest suburban Plainfield fatally shot his parents inside his dorm, he acted erratically, telling a campus police officer that someone was out to kill him, authorities said Saturday, hours before he was formally charged with murder.

James Eric Davis Jr., 19, was arrested without incident shortly after midnight Saturday following an intensive daylong manhunt that included more than 100 police officers scouring the campus area, authorities said. Officers found him after someone aboard a train spotted a person along railroad tracks in Mount Pleasant, and called police.

Davis was taken into custody and later charged with two counts of murder and a felony weapon charge, according to a statement from CMU officials. Davis remained under guard at a hospital Saturday and is expected to be moved to the Isabella County jail when he’s discharged. It was unclear when he might make his first court appearance.

The 2016 Plainfield Central High School graduate is accused of shooting his parents, James Eric Davis Sr. and Diva Jeneen Davis. Davis Sr. was a police officer in west suburban Bellwood and an Illinois National Guard veteran who served in Operation Iraqi Freedom. Diva Davis’ Facebook page identified her as a real estate broker; friends said she was also a breast cancer survivor and had worked as a flight attendant.

Trump praises Chinese president extending tenure ‘for life’

WASHINGTON (Reuters) – U.S. President Donald Trump praised Chinese President Xi Jinping Saturday after the ruling Communist party announced it was eliminating the two-term limit for the presidency, paving the way for Xi to serve indefinitely, according to audio aired by CNN.

“He’s now president for life, president for life. And he’s great,” Trump said, according to audio of excerpts of Trump’s remarks at a closed-door fundraiser in Florida aired by CNN.“And look, he was able to do that. I think it’s great. Maybe we’ll have to give that a shot someday,” Trump said to cheers and applause from supporters.

It is not clear if Trump, 71, was making the comment about extending presidential service in jest. The White House did not respond to a request for comment late Saturday.

U.S. Representative Ro Khanna, a Democrat, said on Twitter that“whether this was a joke or not, talking about being President for life like Xi Jinping is the most unAmerican sentiment expressed by an American President. George Washington would roll over in his grave.”

U.S. presidents by tradition served a maximum of two four-year terms until President Franklin Roosevelt was elected a record four times starting in 1932. An amendment to the U.S. Constitution approved in 1951 limits presidents to two terms in office.

In order to change the current prohibition, it would require initial support of two-thirds of both houses of Congress or support of two-thirds of state legislatures – and then would need to be ratified by three-quarters of the states.

China’s annual parliament gathering kicks off on Monday as Xi presses ahead with efforts to ward off financial risks without undermining the economy. The Communist party announced on Feb 25 the end of the two-term limit for the president – and the parliament is expected to ratify the move.

During the remarks, Trump praised Xi as“a great gentleman” and added:“He’s the most powerful (Chinese) president in a hundred years.” Trump said Xi had treated him“tremendously well” during his visit in November.

Trump has often praised Xi, but in January Trump told Reuters the United States was considering a big“fine” as part of a probe into China’s alleged theft of intellectual property. He has been critical of China’s trade policies.

Trump told The New York Times in December that because of North Korea he had“been soft on China because the only thing more important to me than trade is war.”

Reporting by David Shepardson; Editing by Nick Zieminski