Category Archives: United Airline News

GE’s New CEO Slashes Dividend, Plans to Focus on Power, Aviation, Health

General Electric Co.’s new boss is dramatically reshaping the company and slashing the dividend as he looks to pull the manufacturing icon out of one of the deepest slumps in its 125-year history. The moves failed to win over investors.

John Flannery

Chief Executive Officer John Flannery plans to narrow GE’s focus around power, aviation and health-care equipment while exiting businesses such as lighting and locomotives that have defined the company for decades. He’s also trimming the size of the board, revising the compensation program and chopping the quarterly dividend in half — only the second cut since the Great Depression.

The sweeping changes announced Monday underscore the severity of the challenges facing the new CEO, who is grappling with a stock that has lost $100 billion in market value this year. Plagued by poor cash flow amid slumping markets in power generation and oil-field equipment, GE is by far the biggest loser on the Dow Jones Industrial Average this year.

“Whether investors will consider these actions sufficient to form a bottom for the stock remains to be seen, but there is no doubt that the plan outlined today marks a new era for GE,” Deane Dray, an analyst at RBC Capital Markets. “That said, does it go far enough?”

The shares dropped 3.8 percent to $19.71 at 10:12 a.m. in New York after plunging as much as 7.3 percent, the biggest intraday decline in two years. GE fell 35 percent this year through Nov. 10.

Flannery already has made changes to top management, sought deep cost cuts and welcomed a representative of activist investor Trian Fund Management to GE’s board. Over the next two years, GE will explore options to exit its majority stake in Baker Hughes, a provider of oil-field equipment and services. GE’s lighting business traces its origins to the company’s formation by Thomas Edison.

“The GE of the future is going to be a more focused industrial company,” Flannery, who took over in August from Jeffrey Immelt, said in a presentation. “Soon we’re going to be proud of the performance.”

Flannery, who previously ran GE’s unit manufacturing medical scanners and other health equipment, said last month that the company would divest at least $20 billion of businesses.

Lowered Forecast

The moves follow a broad portfolio reshaping in recent years as Immelt sold most of GE’s finance and consumer operations. Still, the latest steps will keep most of the current company intact and stop short of the full-scale breakup some analysts have recently called for.

Earnings next year will be $1 to $1.07 a share, GE said. That represents a significant decline from the $2 target that management has been discussing for several years. The new outlook is closer to analysts’ expectations, which were $1.18 on average before Monday’s announcement, according to estimates compiled by Bloomberg.

The forecast became a point of contention this year as Immelt suggested in May that $2 a share would be tough to reach, a month after Trian, which has been one of GE’s largest shareholders since 2015, said it believed GE could exceed the target.

GE will shrink the size of its board to 12 from 18 directors amid criticism from some investors and analysts over the size. Of the remaining members, three will be new to the board, GE said.

Dividend Decision

The quarterly payout will drop 50 percent to 12 cents a share, the Boston-based company said in a statement Monday, in a move that will save about $4.2 billion a year. GE last reduced the dividend in 2009 as it struggled with fallout from the financial crisis.

“We understand the importance of this decision to our shareowners and we have not made it lightly,” Flannery said in the statement. “We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation.”

GE in October slashed its expectations for 2017 profit and cash flow as Flannery called the company’s performance “completely unacceptable.”

Investors have been bracing for a dividend cut as GE’s slide deepened in recent weeks. The payout had been recovering from a dramatic 68 percent cut in 2009, after Immelt for weeks had said the payout was safe. Immelt has called slashing the dividend “the worst day of my tenure as CEO.”

The US’s most secretive intelligence agency was embarrassingly robbed and mocked by anonymous hackers

  • The New York Times on Sunday published a detailed look
    at how the National Security Agency, the US’s largest and most
    secretive intelligence agency, had been deeply infiltrated over
    the past year.
  • Expensive NSA cyberweapons are now for sale to hostile
    countries and have already been used in cyberattacks against
    the public.
  • Now doubt surrounds the NSA, and experts wonder whether
    the agency can do its job at all.


nsaReuters

The National Security Agency, the US’s largest and most secretive
intelligence agency, has been deeply infiltrated by anonymous
hackers, as detailed in a New
York Times exposé
published Sunday.

The NSA, which compiles massive troves of data on US citizens and
organizes cyberoffensives against the US’s enemies, was deeply
compromised by a group known as the Shadow Brokers, which has
made headlines in the past year in connection to the breach,
whose source remains unclear.

The group now posts cryptic, mocking messages pointed toward the
NSA as it sells the cyberweapons, created at huge cost to US
taxpayers, to any and all buyers, including US adversaries like
North Korea and Russia.

“It’s a disaster on multiple levels,” Jake Williams, a
cybersecurity expert who formerly worked on the NSA’s hacking
group, told The Times. “It’s embarrassing that the people
responsible for this have not been brought to justice.”

“These leaks have been incredibly damaging to our intelligence
and cybercapabilities,” Leon Panetta, the former director of the
Central Intelligence Agency, told The Times. “The fundamental
purpose of intelligence is to be able to effectively penetrate
our adversaries in order to gather vital intelligence. By its
very nature, that only works if secrecy is maintained and our
codes are protected.”

Furthermore, a wave of cybercrime has been linked to the release
of the NSA’s leaked cyberweapons.

Another NSA source who spoke with The Times described the attack
as being at least in part the NSA’s fault. The NSA has long
prioritized cyberoffense over securing its own systems, the
source said. As a result the US now essentially has to start over
on cyberinitiatives, Panetta said.


Read the full story at
The New York Times here.

Texas church members gather for 1st time since attack

Hundreds of people will gather in the tiny town of Sutherland Springs, Texas, on Sunday to worship with surviving members of a local church where a shooting rampage left more than two dozen people dead.

Members of the First Baptist Church will hold a church service for the first time since a gunman opened fire inside the small church a week earlier in the worst mass shooting in Texas history.

Initial plans called for gathering at a community center could house a few dozen people. But when organizers realized about 500 people were planning to attend, the service was moved outside to a baseball park.

Church representatives also plan to eventually open a public memorial inside the church, where 26 empty chairs have been placed. Authorities have put the official death toll at 26 victims because one of the 25 people killed was pregnant. Church officials have said the building will likely be demolished.

North Korean insults to US leaders are nothing new — but Trump’s deeply personal reactions are


President Trump takes part in a bilateral meeting at the Presidential Palace in Hanoi, Vietnam, on Sunday. (Reuters/Jonathan Ernst)

In a string of tweets fired off Sunday morning from Hanoi, Vietnam, President Trump responded with sarcastic insults to a recent message from the North Korean government that had referred to him as “old.”

“Why would Kim Jong-un insult me by calling me ‘old,’ when I would NEVER call him ‘short and fat?'” Trump wrote in his tweet, referring to the leader of North Korea’s ruling dynasty. “Oh well, I try so hard to be his friend — and maybe someday that will happen!”

The message marks an unusually personal escalation of the tensions between the United States and North Korea over Pyongyang’s weapons program. It is also another sign of the change in rhetoric used to address North Korea since Trump took office: Though North Korea has long been known for hurling bellicose insults at world leaders, rarely have those world leaders responded in kind.

Of course, Trump is a not your average world leader. The current president is a pugnacious social media user often willing to respond with his own harsh words when he feels wronged. As a spokeswoman for his wife, Melania Trump, put it earlier this year, when Trump is attacked “he will punch back 10 times harder.”

Whether this instinct to hit back could help his self-described efforts toward becoming Kim’s friend in the future — or harm them — is unclear.

The North Korean message that aggrieved Trump was released by the country’s foreign ministry on Saturday and described Trump’s 12-day tour of Asia as “a warmonger’s trip for confrontation with our country, trying to remove our self-defensive nuclear deterrent.” The statement also criticized the “reckless remarks by an old lunatic like Trump will never scare us or stop our advance.”

The North Korean government has insulted Trump personally numerous times. Its state-run media has run a number of unflattering descriptions of Trump, including the memorable use of the word “dotard” in September. It has frequently referred to Trump as “old” and accused him of being a “war maniac” and a “lunatic.”

These insults come at a time of heightened tension between Washington and Pyongyang. North Korea has pushed ahead with its weapons program over the past few months, conducting a number of long-range missile tests, plus a nuclear bomb test, since Trump took office.

However, the insults also fit into a long tradition of insulting American leaders. In 2014, the U.S. government criticized a lengthy racist screed published by North Korea’s State-run Korean Central News Agency that had referred to President Barack Obama as a “dirty fellow,” among other things.

In recent years, North Korea has also insulted former secretaries of state John F. Kerry (“hideous lantern jaw”) and Hillary Clinton (both a “schoolgirl” and a “pensioner”), while the entire administration of President George W. Bush was referred to as “a bunch of tricksters and political imbeciles.” The Americans have not responded with their own public insults, though Bush did privately call Kim’s father, Kim Jong Il, a “pygmy” in 2002 according to reports at the time.

Trump’s descriptions of North Korea’s current leader have varied, and he has even been positive at times —  describing him as a “pretty smart cookie” in April. But as tensions with North Korea have escalated, so too has the harshness of the American president’s rhetoric, with Trump dismissively referring to Kim as “little rocket man” and warning of “fire and fury” if North Korean threats continued — a statement which perhaps inadvertently echoed North Korean propaganda.

Some had worried that Trump would use similarly personal and angry language while in South Korea last week and run the risk of inciting the North. However, though his speech to South Korea’s National Assembly was deeply critical of North Korea, it was less bombastic and more measured than his previous statements.

That speech was drawn up carefully with the input of others in Trump’s administration. Trump, however, is a famously impulsive tweeter.

Worse still, for both sides the insults may pick on sensitive spots. Trump is the oldest first-term president in U.S. history and more than twice the age of the North Korean leader. Meanwhile, Kim’s height is estimated to be five-foot-seven, and he is rumored to suffer health problems due to his weight.

More on WorldViews

Trump’s ‘fire and fury’ statement echoes North Korea’s own threats

GOP rushes to cut ties to Moore

Republicans are rushing to cut ties with Senate candidate Roy Moore (R-Ala.) as fears mount that the disturbing allegations against him will tarnish the party’s brand and imperil other GOP candidates running for office.

Moore has denied the bombshell allegations laid out in a Washington Post story, in which three women went on the record to claim that he courted them as teenagers while he was an attorney in his 30s. One woman claimed that Moore molested her when she was a 14-year-old girl.

Republicans are calling on Moore to drop out of the race even though the GOP wouldn’t be able to get another candidate on the ticket to run against Democrat Doug Jones before the Dec. 12 election. Moore says he will not drop out of the race and is still considered the favorite to win in deep red Alabama.

Nationally, Republicans are worried that Moore will be a drag on a party that already faces stiff electoral headwinds as they seek to keep a majority in the House in 2018.

For as long as he is in the race, and especially if he is elected, Democrats say they will tie the allegations against Moore and his past controversial remarks on race and gay marriage to all Republicans running for office.

Some Republicans are comparing the Moore problem to the one the party faced in 2012, when Rep. Todd Akin (R-Mo.) and Indiana treasurer Richard Mourdock made comments about rape during their Senate campaigns that dogged the party throughout the election cycle.

“We all saw what happened with Akin and Mourdock in 2012, where their comments caused issues for the entire party,” said Ryan Williams, a GOP operative and veteran of Mitt Romney’s 2012 campaign. “This is a bigger scandal that will force Republicans across the country to distance themselves from him. That will continue until he drops out. If he gets elected, then we have another problem.”

In the immediate aftermath of the revelations, many Republicans, including Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMcConnell expects Paul to return to Senate next week Former Hill staff calls for mandatory harassment training Gaming the odds of any GOP tax bill getting signed into law MORE (R-Ky.), declared that Moore should exit the race if the allegations against him are true.

It quickly became clear that that response would not be sufficient and that Republicans would remain vulnerable to Moore doing reputational damage to their party until they rejected him entirely.

“Hiding behind “if true” is a disgraceful and gutless response to the serious reports of Roy Moore’s sexual assaults,” said Allison Teixeira Sulier, the spokesperson for the liberal opposition research group American Bridge. “Republicans are showing their true colors once again by enabling a sexual predator in the name of partisan politics and it’s disgusting to watch. Voters are going to hold the entire party accountable.”

By Friday, the urgency to rid the party of Moore’s presence intensified, with establishment Republicans like 2012 presidential nominee Mitt Romey and Sen. John McCainJohn Sidney McCainGOP rushes to cut ties to Moore GOP strategist: ‘There needs to be a repudiation’ of Roy Moore by Republicans World leaders reach agreement on trade deal without United States: report MORE (R-Az.) saying unequivocally that he needs to drop out of the race.

“This cannot be who we are,” tweeted Sen. Jeff FlakeJeffrey (Jeff) Lane FlakeGOP rushes to cut ties to Moore Flake on Moore defenders: ‘This cannot be who we are’ GOP senators raise concerns over tax plan MORE (R-Az.), a first-term senator who has been vocal about his misgivings with the direction the party is headed in the age of President Trump.

Rep. Adam KinzingerAdam Daniel KinzingerGOP rushes to cut ties to Moore GOP lawmaker: Senate should expel Moore if he wins Moore defends himself as pressure mounts MORE (R-Ill.) suggested in a Friday interview on CNN that the Senate could expel Moore if he wins the elections. That would require a two-thirds vote in the upper chamber.

Republicans running in Democratic or swing-districts, like Reps. Barbara ComstockBarbara Jean ComstockWilson endorses Foxx as next House Education chairman House transfers DC Metro board appointments to DOT Dems target DC-area GOP rep on Metro funding MORE (R-Va.) and Carlos CurbeloCarlos Luis CurbeloBipartisan duo offer criminal justice reform legislation Live coverage: Day two of the Ways and Means GOP tax bill markup Trump administration cancels immigration benefits for 5K people MORE (R-Fla.), condemned Moore and demanded he drop out of the race.

“This man is despicable and should step down,” Curbelo tweeted.

Comstock faces reelection in a district Hillary ClintonHillary Diane Rodham ClintonGOP rushes to cut ties to Moore Papadopoulos was in regular contact with Stephen Miller, helped edit Trump speech: report Bannon jokes Clinton got her ‘ass kicked’ in 2016 election MORE carried by 10 points and in a state where Democrats won sweeping electoral victories from the governor’s mansion down on Tuesday. Clinton carried Curbelo’s district by 16 points and the Florida Republican is a perennial target for Democrats.

In a Friday interview on Sean Hannity’s radio show, Moore called the allegations “completely false and misleading.”

He denied ever coming into contact with the 14-year-old girl. Moore did not deny dating girls that were under 18 – which is legal in Alabama – but said he does not remember “specific dates” and that being romantically involved with a teenager while he was in his 30s would be “out of my customary behavior.” 

Moore has his defenders, who have called into question why the women in the story would remain silent for decades and only tell their stories weeks before the election.

Breitbart News chairman Stephen Bannon, who backed Moore in the primary against Sen. Luther StrangeLuther Johnson StrangeGOP rushes to cut ties to Moore Cruz’s Democratic challenger fundraises off support of Roy Moore Moore digs in amid mounting GOP criticism MORE (R-Ala.), blamed the media. Bannon and his allies believe the controversy will pass, noting that Trump won the presidential election despite Republicans abandoning him in the wake of the “Hollywood Access” tape that caught him making lewd remarks about grabbing women.

“’The Bezos-Amazon-Washington Post that dropped that dime on Donald TrumpDonald John TrumpDems win from coast to coast Falwell after Gillespie loss: ‘DC should annex’ Northern Virginia Dems see gains in Virginia’s House of Delegates MORE, is the same Bezos-Amazon-Washington Post that dropped the dime this afternoon on Judge Roy Moore,” he told an audience in New Hampshire on Thursday night. “Now is that a coincidence? That’s what I mean when I say [the media is the] opposition party, right? It’s purely part of the apparatus of the Democratic Party. They don’t make any bones about it.”

In Alabama, state and local officials are firing back at what they view as elite media and Washington politicians in a frenzy to take down one of their own. 

“[Alabamians] don’t take kindly to people from outside our state coming down here and telling us what we should do,” said Alabama Republican strategist Jonathan Gray.

But national Republicans are worried about the consequences of Moore staying in the race and potentially getting elected.

One former high-level GOP aide said Moore would “absolutely” hurt the party’s brand and that he was certain to be used in Democratic attack ads against Republican candidates.

A Harvard-Harris survey released last month found the GOP’s approval rating is at an all-time low of 29 percent, while Democrats are at 39.

“That could be a floor [for Republicans] given the current hyper-partisan environment,” said Monmouth University pollster Patrick Murray.

Republicans don’t want to find out how much lower they can go.

“I felt like in 2012, Republicans were afraid to say Akin was [wrong]. We’re in this era now where I think a lot of Republicans are willing to say it now,” said a national Republican strategist.

“I’m worried, but this is an opportunity to show a majority of Americans that the Republican Party does not stand for pedophilia and all these bigoted comments that he stands for.”

Ben Kamisar and Lisa Hagen contributed

 

 

US soldier in Niger ambush was bound and apparently executed, villagers say

The body of Sgt. La David Johnson, one of four U.S. soldiers killed in an ambush by Islamist militants in Niger last month, was found with his arms tied and a gaping wound at the back of his head, according to two villagers, suggesting that he may have been captured and then executed.

Adamou Boubacar, a 23-year-old farmer and trader, said some children tending cattle found the remains of the soldier Oct. 6, two days after the attack outside the remote Niger village of Tongo Tongo, which also left five Nigerien soldiers dead. The children notified him.

When Boubacar went to the location, a bushy area roughly a mile from the ambush site, he saw Johnson’s body lying face down, he said. The back of his head had been smashed by something, possibly a bullet, said Boubacar. The soldier’s wrists were bound with rope, he said, raising the possibility that the militants — whom the Pentagon suspects were affiliated with the Islamic State — seized Johnson during the firefight and held him captive.

The villagers’ accounts come as the Niger operation is under intense scrutiny in the United States, with lawmakers expressing concern that they have received insufficient or conflicting information about what happened. The Pentagon is conducting an investigation into the attack in Niger, where the U.S. military is helping the Nigerien government confront a threat by militants associated with the Islamic State and al-Qaeda.

Boubacar, a resident of Tongo Tongo, said in a phone interview that he informed the village’s chief after seeing Johnson’s body. “His two arms were tied behind his back,” he said. The chief called Nigerien military forces, who dispatched troops to retrieve Johnson’s remains.

The village chief of Tongo Tongo, Mounkaila Alassane, confirmed the account in a separate phone interview.

“The back of his head was a mess, as if they had hit him with something hard, like a hammer,” recalled Alassane, who said he also saw the body. “They took his shoes. He was wearing only socks.”

A U.S. military official with knowledge of the investigation into the ambush acknowledged that Johnson’s body appeared viciously battered but cautioned against reaching any conclusions until the probe is completed.

“When the Americans received Johnson, his hands were not tied,” said the U.S. official, who spoke on the condition of anonymity to discuss a sensitive matter.

The two Tongo Tongo villagers said they also saw the bodies of the three other American soldiers — Staff Sgts. Bryan Black, Jeremiah Johnson and Dustin Wright — who U.S. officials say were killed in action. One was slumped inside the team’s pickup truck, they said. The bodies of the other two were on the ground, one clutching a walkie-talkie, they said.

They were wearing T-shirts and boxer shorts, the two men said. It was unclear whether the militants had stripped off their uniforms.

The accounts could help explain why it to took two days to find Johnson’s body, while the other men’s remains were retrieved several hours after the battle. Johnson’s widow has said that the U.S. military advised her not to view his corpse, a suggestion often made when remains are badly disfigured.

The widow, Myeshia Johnson, has emerged as a prominent figure in the uproar over the Niger attack, accusing President Trump of acting cavalierly about her husband in a condolence call, a charge the White House has denied. She also has complained of receiving little information about what happened to her spouse.

FBI and U.S. military investigators have arrived in this impoverished West African nation to try to determine what happened in the Oct. 4 assault on an 11-member Army Special Forces team and 30 Nigerien troops. Among the questions they are addressing: Were there intelligence lapses? Did the unit have adequate equipment? Was the extremist threat properly assessed before the mission?

The case has received enormous attention in the United States because of conflicting accounts over whether the soldiers were on a low-risk patrol or had changed plans and set out in pursuit of Islamist insurgents. Questions also have been raised about why the team was lightly armed, given the danger in the area.

The Pentagon has said the soldiers were on a routine reconnaissance mission. Under U.S. military rules, American troops in Niger are not supposed to go on combat missions in the country, but they can “advise and assist” on missions with local forces where the chance of enemy contact is low.

A senior Nigerien security official said in an interview that the military unit made a critical error by deciding to spend the night along the volatile Mali-Niger border. That allowed the militants to surveil the unit and plan the ambush that occurred the following morning outside Tongo Tongo as the team was heading back to their base, he said.

In fact, the official said, the team was initially on a one-day mission.

“The schedule they did was to come back the first day, but they did not,” Mohamed Bazoum, Niger’s interior minister, said in the interview. “They stayed there. And because they stayed there for all the night, the jihadists were able to target them” and follow them.

In an Oct. 23 briefing with journalists, Gen. Joseph F. Dunford Jr., the chairman of the Joint Chiefs of Staff, acknowledged that the unit stayed away from its base overnight between Oct. 3 and 4. But he said, “I think a probably more accurate description than ‘stayed overnight’ was they caught a couple of hours of sleep after the 3rd and before they completed their mission on the 4th.”

He noted that previous joint patrols in the region had occurred without fatalities. There are roughly 800 U.S. troops in Niger, about a third of whom are Special Forces who take part in the “advise and assist” missions.

“Are they taking risks?” said Dunford. “They are. Are they taking risks that are unreasonable or not within their capabilities? I don’t have any reason to believe that.”

Col. Mark Cheadle, the top spokesman for the U.S. military’s Africa Command, said overnight stays by U.S. soldiers advising local forces in Niger were ­“mission-dependent.” He declined to respond to the interior minister’s charge or the villagers’ recollections of Johnson’s remains, deferring to senior U.S. military officials who have said answers would be provided after a thorough investigation.

Bazoum oversees Niger’s internal security and works closely with both the Nigerien military and U.S. and other Western forces in the country. Normally, he said, such joint reconnaissance missions along the Niger-Mali border do not stretch over two days. Some news accounts, citing U.S. officials, have reported at least 29 joint missions in the past six months along the border.

When asked how many of those missions lasted two days, Cheadle said in an email that he could not provide a breakdown for security reasons, “but what I can say is that U.S. forces are prepared for overnight stays should the mission require it.”

The U.S. military official with knowledge of the ambush investigation said that it increasingly appears that the soldiers’ mission did change after they left their base in the capital, Niamey. The unit, the official said, apparently was rerouted to help another military team target a top Islamic State militant named Dadou, who was code-named “Naylor Road” by the U.S. military. But bad weather prevented the commandos from reaching the area. The unit continued to search for the militant and his fighters and eventually spent the night on the border, he said.

It was not clear why a team mostly armed with rifles was ordered to assist an operation to nab a dangerous extremist.

Niger’s defense minister and Sgt. Abdou Kané, a Nigerien soldier who survived the ambush, told The Washington Post last week that the mission was not purely to gather information but also to capture or kill enemy combatants inside Mali.

The U.S. official said the unit was never inside Mali but was operating along the border, essentially a line in the sand.

Bazoum, the interior minister, said the team’s miscalculations also included lingering too long in Tongo Tongo on the way back to base. The unit had stopped to replenish its water supplies on the morning of Oct. 4, and the U.S. soldiers spent time discussing medical care for the village kids, according to Kané and Alassane, the Tongo Tongo chief. The Nigerien soldiers cooked and ate breakfast.

“It was very easy for the jihadists to mobilize themselves and have a number of fighters more than the number that composed the mission,” Bazoum said.

“There was a big failure of intelligence by both the Nigeriens and the Americans,” he added. “The Americans are supposed to have more means, more information than us. But it is our country. Our intelligence service should know that this area was not so safe. They could have told them to hurry up, to not spend time staying in Tongo Tongo.”

Around 11:40 a.m. on Oct. 4, the team was ambushed outside the village by more than 50 militants with heavy weapons, according to Kané and Nigerien and U.S. officials. The soldiers began to run out of ammunition, said Bazoum.

Air support from French Puma helicopters and French jets took an hour or longer to arrive. When it did, the militants fled, said witnesses.

It was not clear exactly how Johnson’s body wound up in the field a mile away. Dunford has said Johnson became “separated” from his colleagues.

The day after Johnson’s remains were found, Alassane was arrested on charges of aiding the militants. He was released recently, said Bazoum, because of lack of evidence.

The Latest: NK calls Trump ‘old lunatic,’ ‘warmonger’

HANOI, Vietnam — The Latest on President Donald Trump’s visit to Asia (all times local):

7:25 p.m.

North Korea’s Foreign Ministry on Saturday issued its first official statement on President Donald Trump’s trip to Asia, slamming Trump for trying to denuclearize the North.

The ministry said that Trump’s trip “is a warmonger’s trip for confrontation with our country, trying to remove our self-defensive nuclear deterrent.”

It accused Trump of trying to demonize North Korea, keep it apart from the international community and undermine its government.

The ministry said, “Reckless remarks by an old lunatic like Trump will never scare us or stop our advance. On the contrary, all this makes us more sure that our choice to promote economic construction at the same time as building up our nuclear force is all the more righteous, and it pushes us to speed up the effort to complete our nuclear force.”

North Korea is not known to have tested any of its missiles or nuclear devices since Sept. 15, a relative lull after a brisk series of tests earlier this year.

___

7:20 p.m.

Russian President Vladimir Putin is brushing off recent reports that the US commerce secretary had interest in a company that does business with a major Russian company with possible ties to Putin relatives.

Reports this week said Wilbur Ross is a shareholder in a shipping company that relies on the Russian company Sibur for much of its revenue. A man reported to be one of Putin’s sons-in-law is believed to be a major Sibur shareholder.

Putin said Saturday that “This is nothing more than business. It never had and does not have any relation with politics.”

Putin also rejected any Russian connection to the recently indicted former campaign manager of President Donald Trump, Paul Manafort.

Manafort is charged with offenses including failing to register as a foreign agent while advising the party of Viktor Yanukovych, the Russia-friendly Ukrainan president who was ousted amid massive street protests in 2014.

__

6:55 p.m.

Russian President Vladimir Putin says the lack of a formal meeting with President Donald Trump at a conference in Vietnam reflects continuing tense relations between their countries.

Putin and Trump had several brief exchanges Friday night and Saturday as world leaders gathered for the Asia-Pacific Economic Cooperation conference. They did not have a formal, one-on-one meeting.

Russian news agencies quoted Putin as saying that the lack of a formal meeting shows that U.S.-Russia relations have “not yet emerged from the state of crisis.”

But he was also quoted as blaming the absence of a sit-down on scheduling conflicts and “certain matters of the protocol” that couldn’t be worked out.

___

5:50 p.m.

President Donald Trump says he didn’t see Japanese Prime Minister Shinzo Abe (shin-zoh AH’-bay) take a tumble on the golf course.

But he says, if it was Abe, “I’m very impressed because (Abe is) better than any gymnast I’ve ever seen.”

Trump made the remarks to reporters aboard Air Force One as it headed toward Hanoi, Vietnam, for meetings and a state banquet.

Japan’s TV Tokyo aired footage of a player identified as Abe trying repeatedly to hit his ball out of a steep bunker. As he finally made the shot, Trump began walking away, and Abe ran up the side of the bunker to catch up.

But just as the 63-year-old prime minister stepped onto the grass, he slipped, making a backward flip down into the sand. He quickly stood up and picked up his cap.

___

5:35 p.m.

President Donald Trump says Russia President Vladimir Putin once again denied meddling in the 2016 election during their conversations Saturday at a summit in Vietnam.

And Trump still won’t say definitively whether he believes Putin.

Trump told reporters aboard Air Force One that every time Putin sees him he says: “I didn’t do that.”

Says Trump: “And I believe, I really believe that when he tells me that he means it.”

Multiple U.S. intelligence agencies have concluded that Moscow meddled in the 2016 election to try to help Trump win. Multiple investigations are also under way to determine whether Trump campaign officials colluded with them.

Trump dismissed the heads of those agencies as “political hacks.” He says there’s plenty of reason to be suspicious of their findings.

___

5:30 p.m.

President Donald Trump is blaming Democrats for creating an “artificial barrier” to U.S.-Russian relations by accusing Russia of meddling in the 2016 election.

Trump tells reporters aboard Air Force One en route to Hanoi that the allegations, which he’s dismissed as a witch hunt in the past, are damaging his ability to work with Russia. And he says that’s putting lives at stake.

He says the “artificial barrier” gets in the way of putting global pressure on North Korea to abandon its nuclear weapons program.

Without that obstacle, Trump says, “we could really be helped a lot, tremendously with Russia having to do with North Korea.”

He goes on to say that, “If we can save many, many, many lives by making a deal with Russia having to do with Syria, and then ultimately getting Syria solved and getting Ukraine solved and doing other things, having a good relationship with Russia’s a great, great thing. And this artificial Democratic hit job gets in the way,” he says, adding that, “people will die because of it.”

___

5:25 p.m.

President Donald Trump has landed in Hanoi, Vietnam, as he heads toward the end of his first official visit to Asia.

Trump is attending a state banquet Saturday, before Sunday meetings with Vietnam’s president and prime minister. He next stops in the Philippines before heading back to the U.S.

Trump spent the first half of Saturday meeting with world leaders gathered in the seaside city of Danang for the Asia-Pacific Economic Cooperation summit.

Trump has been hammering leaders on trade and urging them to do more to pressure North Korea to abandon its nuclear program.

He was also seen chatting on several occasions with Russian President Vladimir Putin.

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4:15 p.m.

Russian President Vladimir Putin and President Donald Trump say they welcome President Bashar Assad’s “recent statement of commitment” to the Geneva process for resolving the conflict in Syria.

Putin and Trump met on the sidelines of the Asia Pacific Economic Cooperation conference in Vietnam.

Assad’s commitment to the process, in line with a UN Security Council resolution, implies “constitutional reform and free and fair elections under the supervision of the United Nations” in which all Syrians can participate, including those in the diaspora, a Kremlin statement said.

Trump and Putin also reaffirmed support for de-escalation zones in Syria, including one in the southwest that was agreed to in the presidents’ previous meeting in July in Germany. They also called on UN members to increase humanitarian aid contributions for Syria.

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3:50 p.m.

The Kremlin says Russian President Vladimir Putin and President Donald Trump have reaffirmed their countries’ intentions to defeat the Islamic State group in Syria.

The leaders reached an agreement during the Asia-Pacific Economic Cooperation conference in Vietnam on Saturday.

A Kremlin statement says they agreed to support existing communications channels to ensure the security of the U.S. and Russian armed forces, as well as to prevent dangerous incidents involving the forces of partners fighting IS. The Kremlin says they confirmed that these efforts will continue until the final defeat of IS.

The Kremlin says they also agreed that the Syrian conflict “does not have a military solution,” and that final resolution must come in the framework of the so-called Geneva Process.

The White House so far has not commented.

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3:40 p.m.

President Donald Trump and Russian President Vladimir Putin may not be having a formal meeting while they’re in Vietnam for an economic summit, but they appear to be chumming it up nonetheless.

Snippets of video from the Asia-Pacific Economic Cooperation conference Saturday show the two leaders chatting and shaking hands at events, including the traditional world leaders’ group photo.

U.S. intelligence agencies concluded last year that Russia meddled in the 2016 presidential election in order to help Trump win. Putin has denied interfering in the election.

Later Saturday, Trump heads to the capital city of Hanoi to attend a state banquet.

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Lebanon’s Aoun tells Saudi envoy Hariri must return

BEIRUT (Reuters) – President Michel Aoun told Saudi Arabia’s envoy on Friday that Saad al-Hariri must return to Lebanon and the circumstances surrounding his resignation as prime minister while in Saudi Arabia were unacceptable, presidential sources said.

The Lebanese authorities believe Hariri is being held in Saudi Arabia, two top Lebanese government officials, a senior politician close to Hariri and a fourth source told Reuters on Thursday, amid a deepening crisis pushing Lebanon onto the frontlines of a power struggle between Saudi Arabia and Iran.

Riyadh says Hariri, a long-time Saudi ally, is a free man and it had nothing to do with his decision to announce his resignation on Saturday while in Saudi Arabia.

Since Hariri’s announcement, Saudi Arabia has accused Lebanon and its Shi‘ite Hezbollah movement of declaring war on it. Riyadh has advised Saudi citizens not to travel to Lebanon, or if already there to leave as soon as possible. Other Gulf states have also issued travel warnings.

Those steps have raised concern that Riyadh could take measures against the tiny Arab state, which hosts 1.5 million Syrian refugees.

Lebanon, where Sunnis, Shi‘ites, Christians and Druze, all backed by rival regional powers, fought a civil war from 1975-1990, maintains a governing system designed to ensure each group is represented.

The shock resignation of Sunni political leader Hariri has thrust Lebanon back to the center of a regional struggle between the Sunni monarchy of Saudi Arabia and Shi‘ite Islamist Iran, whose powerful Lebanese Shi‘ite ally Hezbollah has major sway.

An “international support group” of countries concerned about Lebanon, which includes the United States, Russia and France, appealed for Lebanon “to continue to be shielded from tensions in the region”. In a statement, they also welcomed Aoun’s call for Hariri to return.

During the meeting with the Saudi envoy, Aoun expressed concern over reports about Hariri’s circumstances and urged clarification, presidential sources said.

Hariri, whose father, a long-serving prime minister, was killed by a bomb in 2005, said in his resignation that he feared assassination and blamed Iran for meddling in Lebanon’s affairs.

His resignation unraveled a political deal among rival factions that made him prime minister and Aoun, a political ally of Hezbollah, head of state last year. The coalition government included Hezbollah, a heavily armed military and political organization.

In the first direct Western comment on Hariri’s status, France and Germany both said on Friday they did not believe Hariri was being held against his will.

“Our concern is the stability of Lebanon and that a political solution can be put in place rapidly,” French Foreign Minister Jean-Yves Le Drian told Europe 1 radio.

“As far as we know, yes: we think (Hariri) is free of his movements and it’s important he makes his own choices,” he said.

JUMBLATT SEES NO ALTERNATIVE TO HARIRI

On Thursday, Hariri’s Future Movement political party said his return home was necessary to uphold the Lebanese system, describing him as prime minister and a national leader.

Aoun has refused to accept the resignation until Hariri returns to Lebanon to deliver it to him in person and explain his reasons.

Top Lebanese Druze politician Walid Jumblatt said on Friday it was time that Hariri returned to Lebanon. After a week of absence, “be it forced or voluntary”, it was “time for Sheikh Saad to return,” Jumblatt said on Twitter. “By the way, there is no alternative to him,” he added.

Hezbollah leader Sayyed Hassan Nasrallah is expected to address the crisis at 3 p.m. (1300 GMT) in a public address to mark a religious occasion.

Saudi Arabia considers Iranian-allied Hezbollah to be its enemy in conflicts across the Middle East, including Syria and Yemen.

The Saudi foreign minister accused Hezbollah of a role in the launching of a ballistic missile at Riyadh from Yemen on Saturday. Saudi Arabia’s Crown Prince Mohammed bin Salman said Iran’s supply of rockets to militias in Yemen was an act of “direct military aggression” that could be an act of war.

The resignation of Hariri, who as well as a politician is a business tycoon with major investments in Saudi Arabia, also comes as Riyadh has rounded up dozens of senior princes and businessmen in a corruption investigation.

Reporting by Dominiqu Vidalon and John Irish in Paris, Sarah Dadouch and Tom Perry in Beirut; Writing by Tom Perry; Editing by Peter Graff

Senate Tax Plan Diverges From House Version, Highlighting Political Pressures

Senators Mike Lee, Republican of Utah, and Marco Rubio, Republican of Florida, said the bill did not go far enough in increasing the child tax credit, which rose to $1,650 per child in the Senate version, from $1,600 in the House bill, and would now be available to families making up to $1 million a year, a leap from a current income limit of $110,000. “The Senate is not going to pass a bill that isn’t clearly pro-family,” they said in a joint statement, “so we look forward to working with our colleagues to get there.”

Stocks tumbled on the news that the corporate rate cut may be delayed. The Standard Poor’s 500-stock index fell 0.4 percent and the Nasdaq 100 slipped 0.5 percent.

“The Street definitely felt like there was some connection between tax policy and the market reaction, which was pretty severe,” said Les Funtleyder, a portfolio manager at E Squared Capital Management in New York.

FreedomWorks, a conservative advocacy group, called the Senate’s plan to delay the corporate tax cut “unacceptable.”

Still, several business groups and Republican leaders applauded the movement in both chambers. The influential National Federation of Independent Business, which represents small businesses and had opposed the House bill, reversed course and said it backed both an amended House bill and the Senate version. Other groups shook off the delayed rate cut and embraced the Senate plan.

“It’s been a week of remarkable progress,” said Michael A. Steel, a former House leadership aide who is a managing director for Hamilton Place Strategies, a consultancy in Washington.

Republican leaders expressed optimism that they could quickly address concerns and resolve the competing political pressures facing their lawmakers in the Senate and House.

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“This will be met with Senate consternation and all kinds of things,” said Representative Peter Roskam of Illinois, who oversees the Ways and Means tax policy subcommittee. “But when it comes down to it, what we’re on the verge today is winning an argument — winning an argument about the future of our economy and what our worldview is.”

The bill set for introduction in the Senate Finance Committee includes seven income brackets, scuttling some of the simplicity that House drafters used to sell their bill, which reduced the number of brackets to four.

It would keep the bottom tax bracket for individuals at 10 percent, which the House had raised to 12 percent, and would reduce the top rate for high earners to 38.5 percent, down from the current rate of 39.6 percent, which the House had maintained. Like the House bill, the Senate’s version plans to roughly double the standard deduction and expand the child tax credit.

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Mitch McConnell, the Senate majority leader, at the Capitol on Thursday. Republican lawmakers unveiled their tax bill and hope to send it to President Trump’s desk by Christmas.

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Tom Brenner/The New York Times

The starkest example of the competing priorities is the state and local tax deduction, which is heavily used in high-tax states like New York, New Jersey and California, which are represented by Democrats in the Senate but have some Republican representatives in the House. The Senate completely eliminates the valuable tax break, which allows taxpayers to deduct state and local income, sales and property taxes. The House bill would still allow individuals to deduct property taxes up to $10,000.

Some House Republicans have already rejected that limitation as too strict and the Senate’s complete elimination could further spook those members, whose political future could be imperiled if they pass a plan that actually increases their constituents’ tax bills.

“Every state should be a winner in tax reform, and in my opinion, that would not be the case if the Senate view were to prevail,” said Representative Leonard Lance, Republican of New Jersey. “I’m not voting for the $10,000, so I’m certainly not voting for zero,” Mr. Lance said.

The bill would add $1.5 trillion to federal budget deficits over a decade, without accounting for additional economic growth it might spur, according to the Joint Committee on Taxation. But Senate staff members suggested that the Finance Committee would need to make changes to ensure it does not lose revenue after 10 years, and thus stays in compliance with the procedural rules that would allow the bill to pass on a party-line vote.

In another significant departure from the House bill, the Senate would not create a special, lower top rate for so-called pass-through entities, which are businesses whose profits are distributed to their owners and taxed as individual income. Instead, the Senate would create a 17.4 percent deduction on income taxes for pass-through owners of all income levels, effectively cutting rates both on rich owners and on middle-class small-business owners who would not have benefited from the House’s original lower pass-through rate. For service-providing pass-throughs, it would phase out that benefit for individuals with income above $75,000 and for married couples with income above $150,000.

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On Thursday, in the face of pushback from fellow Republican lawmakers, small businesses and other industry groups, Representative Kevin Brady of Texas, who leads the Ways and Means Committee, unveiled a 29-page amendment making further revisions to the House’s tax plan. The amendment restores the adoption tax credit, which the House tax plan had planned to repeal. It also creates a new, lower tax rate for certain business owners.

Under the new provision, the first $37,500 of business income would be taxed at 9 percent, rather than 12 percent, for an unmarried individual earning less than $75,000 through a pass-through business. For a married couple, the dollar amounts would be double.

The Senate is also including a provision to prevent large multinational corporations from stashing profits overseas. The bill will propose a new business tax on American and foreign companies — effectively a minimum tax on their income earned in the United States — while also levying a 12.5 percent tax on income that American companies receive overseas from their intellectual property.

Preliminary estimates indicate the provision would raise more than $130 billion in tax revenue over 10 years to help offset revenue lost from rate cuts, committee staff members said. The original House approach, which would have levied a 20 percent “excise tax” on payments between American and foreign companies that are affiliated with each other, would have raised an estimated $155 billion in revenue.


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