China outgrowing 'Factory of the World' tag as reliance on imports dips

President Donald Trump talked tough against Mexico, and then essentially agreed to renew the existing trade deal and called that a victory. If only the China spat could end the same way. It won’t. That’s because the gulf between Beijing and Washington is not just caused by recent rhetoric and tariffs. It also goes beyond national security concerns. The inevitable clash stems from how the American and Chinese economies have evolved over decades. Relative to China, Mexico hasn’t shifted much. It has been and remains mortgaged commercially, diplomatically and culturally to its northern neighbour. The White House is fond of citing the merchandise trade deficit with China that America racks up each year. In 2017, it amounted to $375 billion. Sure, it’s big. But the fixation with that number misses the broader point.

Singapore likely to be the venue for Trump-Kim meeting in June

US President Donald Trump and North Korea's Kim Jong Un are likely to meet in Singapore next month, reports said Monday, as anticipation builds for unprecedented talks between the mercurial leaders.

Trump said at the weekend that the two sides had settled on a date and location for the summit -- the first between a sitting US president and a North Korean leader -- without providing details.

"We'll be announcing it soon," Trump told reporters. The landmark summit will take place in "mid-June", South Korea's Chosun Ilbo daily reported Monday, citing diplomatic sources who quoted Trump's National Security Advisor John Bolton.

The newspaper suggested that the possibility of Singapore hosting the landmark meeting had "increased greatly", after a decision by Trump to host South Korean president Moon Jae-in at the White House later this month, without giving further explanation.

Bolton met his South Korean counterpart Chung Eui-yong in Washington late last week to discuss plans for both locations, according to local media reports.

A similar report on the weekend from South Korea's Yonhap news agency also said Singapore was firming as the favoured location for the summit.

Verification a critical factor in North Korea denuclearisation programme

North Korean leader Kim Jong Un has pledged to dismantle his nuclear test site, and supposedly, he’s even inviting the international press into his usually off-limits kingdom to witness the extravaganza. The gesture is meant to prove he’s serious about eliminating his weapons program – and he wants all the world to see it.

But be warned: This could be a show of the dog-and-pony variety. Some experts claim the site has already been pulverized by previous tests and is now of little use. If that’s the case, Kim’s move, at best, may be merely symbolic; at worst, it could be a ruse, meant to convince a hopeful world that he’s ditching his nukes when he’s not. How can we know what the truth really is?

And here we find the one factor that may kill off any nuclear deal with North Korea: verification.

The U.S. and South Korea will need to be assured the North Koreans are doing what they say they’re doing. Any agreement will have to include some sort of process to inspect Pyongyang’s nuclear facilities and verify that every aspect of Kim’s weapons-making program has been eliminated.

Will Trump meet Kim? Uncertainty prevails as N Korea yet to accept invite

Uncertainty lingers over the first-ever meeting between the United States' President Donald Trump and North Korean leader Kim Jong Un as Washington is yet to hear directly from Pyongyang on the invitation extended by Kim via South Korean intermediaries.

"We've not heard anything directly back from North Korea, although we expect to hear something directly from them," the New York Daily News reported, citing Secretary of State Rex Tillerson as telling reporters on Monday in Nigeria's Abuja, when asked about plans for the meeting, likely to take place in May.

Tillerson also stated that no venue for the meeting had been agreed upon, adding, "I think it's going to be very important that those conversations are held quietly" between the two nations.

According to the report, White House press secretary Sarah Huckabee Sanders on Friday said the meeting wouldn't take place "until we see concrete actions that match the words and the rhetoric of North Korea."

As Saudis go nuclear, US seeks an edge over power rivals China, Russia

At a meeting of the International Atomic Energy Agency in Vienna last September, word spread that Saudi Arabia had identified a handful of countries that could build two nuclear reactors in the kingdom. The US wasn’t among them -- until Energy Secretary Rick Perry buttonholed the Saudi delegates and told them America wanted in.

Within weeks, a mostly US consortium headed by Westinghouse Electric Co. had joined the race. Its executives have visited the kingdom. So has Perry, whose intervention was described by two people who attended the meeting. In the next few months, the Saudis are expected to narrow the field to two or three bidders.

A glance at the current list of contenders shows the geopolitical perils that accompany this business opportunity. American allies South Korea and France are on it -- and so are China and Russia, recently designated by the Pentagon as the main US threats. Reactor-building could become another arena of superpower rivalry.

WH denies report of Trump saying he has a good relationship with Kim

The White House has denied and corrected a quote attributed to President Donald Trump that suggested he had good contacts with North Korean leader Kim Jong-Un.
"I probably have a very good relationship with Kim Jong- Un," Trump was quoted as telling The Wall Street Journal in an interview on Thursday, refusing to confirm whether the two had spoken.
"I have relationships with people. I think you people are surprised."
But Press Secretary Sarah Sanders insisted -- in a Twitter meme -- that Trump was misquoted.
"President Trump said, I'D probably have a very good relationship with Kim Jong Un of North Korea. I'D -- I'D -- I'D.

NOT I!" the message read, with "I'D" in red ink, under a red banner reading "FAKE NEWS."
Mockingly mimicking the newspaper's front page, it then reads "THE WALL STREET JOURNAL -- FAKE NEWS IS AT IT AGAIN! -- FALSELY QUOTING PRESIDENT TRUMP."
Washington and Pyongyang are in a standoff over North Korea's missile and nuclear programs, which could be used to target the United States and its allies.
READ MORE

US working 'very closely' to ensure India's NSG membership, reaffirms envoy

The US is working "very closely" with international partners to secure India's Nuclear Suppliers Group membership, its envoy Kenneth Juster said on Thursday and hoped that New Delhi would join the Australia Group on chemical and biological weapons in the "very near future".

India has been seeking entry into the 48-member elite nuclear club, which controls nuclear trade, but China has repeatedly stonewalled its bid.

Juster acknowledged that the US and India faced challenging and complicated issues related to the transfer of sensitive US technology with both military and conventional applications.

"India sought increased access to this technology, while the US wanted to ensure that any transfers would be used solely by the designated recipients for the agreed-upon purposes.

"This required a sophisticated system of export controls, which India, candidly, did not have at the time," Juster said in his first policy speech since taking over as the US ambassador to India.

The initial interactions on the subject were "quite formal and somewhat strained due to the wide gulf" in the positions of the two nations, Juster acknowledged.

He said the US had moved from a restrictive policy on the export of dual-use items to India to a much more "liberal one".

READ MORE

China to build second foreign naval base near Gwadar in Pakistan

After Djibouti, China is planning to build its second foreign naval base in Pakistan, according to a South China Morning Post (SCMP) report.

The base is most likely to come up near Gwadar, according to Beijing-based military analyst Zhou Chenming.

"China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port," SCMP quoted Chenming as saying.

"It's a common practice to have separate facilities for warships and merchant's vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services," Chenming added.

Another source, which is close to the People's Liberation Army, has also confirmed the development.

"Gwadar port can't provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support," the source told the SCMP.

The SCMP story came after a report, which appeared on the Washington-based website The Daily Caller, a few days ago indicated the same.

US Army Reserve colonel Lawrence Sellin (retired) had stated that a consensus was reached in one of the meetings between Chinese and Pakistani military officers that a military base would come up on the Jiwani peninsula near Gwadar and close to the Iranian border.
READ MORE

US jobless claims decline for third straight week as labor market tightens

The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting a rapid tightening of the labor market that bolsters expectations the Federal Reserve will raise interest rates next week.

While another report on Thursday showed layoffs announced by U.S.-based employers rising to a seven-month high in November, the overall trend in job cuts remained low.

"Layoffs on the part of corporations are few and far between as good help is hard to find this far along in one of the longest economic expansions in the record books," said Chris Rupkey, chief economist at MUFG in New York.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 236,000 for the week ended Dec. 2, the Labor Department said on Thursday. It was the third straight weekly decline in claims.

Economists polled by Reuters had forecast claims rising to 240,000 in the latest week. Last week marked the 144th straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was smaller.

The labor market is near full employment, with the jobless rate at a 17-year low of 4.1 percent. Labor market tightness is seen encouraging the Fed to hike interest rates at the Dec. 12-13 policy meeting. The U.S. central bank has increased borrowing costs twice this year.
READ MORE

S&P, Dow move higher as bank stocks climb again

The S&P 500 and the Dow indexes rose in morning trading on Wednesday as bank stocks added to gains following strong economic data and encouraging comments from Federal Reserve officials that sealed the case for a December rate increase.
JPMorgan climbed 1.9 percent and Bank of America rose 2.2 percent, making the S&P financial index the biggest gainer among S&P 500 sectors.

Fed chair nominee Jerome Powell said on Tuesday the case for a December rate hike was coming together and also hinted at lighter bank regulation, while Fed chair Janet Yellen said on Wednesday that a strengthening economy will warrant continued rate increases.

"Economic data has been very strong and the economy looks as good now as it ever has," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

The second revision of third-quarter gross domestic product showed growth increased at a 3.3 annual rate, up from the previously reported 3 percent.

The Fed's preferred gauge of inflation, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.4 percent in the third quarter, in line with the forecast by economists polled by Reuters.

Investors are keeping a keen eye on progress on US tax bill. Senate Republicans on Tuesday rammed forward the bill, which corporate America is hoping will slash business tax rates, in an abrupt, partisan committee vote that set up a full vote by the Senate as soon as Thursday.
READ MORE

Woman who showed middle finger to Trump's motorcade gets fired

The woman cyclist, whose picture went viral after she gave United States President Donald Trump's motorcade the middle finger, has been fired.

Juli Briskman, was cycling through Sterling, Virginia last month when the U.S. President and his motorcade, en route to his golf course, passed her.

She responded by sticking up her middle finger as they zoomed past.

Her one-fingered salute had been captured by photographer Brendan Smialowski, working for Agence France-Presse (AFP) and Getty Images, reported the Telegraph.

This has now cost the 50-year-old marketing executive her job.

According to the reports, Briskman told her bosses at Akima, a government contractor, that she was the woman in the photo.

On Halloween she was fired, and escorted from the building, with her bosses saying they wanted her to "be professional".

"I wasn't even at work when I did that," she said. "But they told me I violated the code of conduct policy."

Briskman, mother to two teenagers, was unrepentant, however.

"I'd do it again," she said.
READ MORE

Millions of leaked Paradise Papers reveal where the elite hide their money

It’s called the Paradise Papers: the latest in a series of leaks made public by the International Consortium of Investigative Journalists shedding light on the trillions of dollars that move through offshore tax havens.

The core of the leak, totaling more than 13.4 million documents, focuses on the Bermudan law firm Appleby, a 119-year old company that caters to blue chip corporations and very wealthy people. Appleby helps clients reduce their tax burden; obscure their ownership of assets like companies, private aircraft, real estate and yachts; and set up huge offshore trusts that in some cases hold billions of dollars.

The New York Times is part of the group of more than 380 journalists from over 90 media organizations in 67 countries that have spent months examining the latest set of documents.

As with the Panama Papers, the Paradise Papers leak came through a duo of reporters at the German newspaper Süddeutsche Zeitung and was then shared with I.C.I.J., a Washington-based group that won the Pulitzer Prize for reporting on the millions of records of a Panamanian law firm. The release of that trove of documents led to the resignation of one prime minister last year and to the unmasking of the wealth of people close to President Vladimir V. Putin of Russia.

The predominantly elite clients of Appleby contrast with those of Mossack Fonseca — the company whose leaked records became the Panama Papers — which appeared to be less discriminating in the business it took on. Much of the material makes for dull reading: Spreadsheets, prospectuses and billing statements abound. But amid these are documents that help reveal how multinational companies avoid taxes and how the superrich hide their wealth. The records date back to 1950 and up to 2016.
READ MORE

Paradise Paper leaks reveal US commerce chief, UK queen's offshore investments

US Commerce Secretary Wilbur Ross has business ties to a shipping firm linked to Vladimir Putin's inner circle, according to a vast leak of financial documents that also revealed Britain's Queen Elizabeth II's investments in tax havens.

It was also revealed that Canadian Prime Minister Justin Trudeau's top fundraiser and senior advisor Stephen Bronfman, heir to the Seagram fortune, moved some $60 million to offshore tax havens with ex-senator Leo Kolber.

The findings have emerged as part of the Paradise Papers released by the US-based   (ICIJ), which was behind the Panama Papers made public last year.

There is no suggestion that Ross, Bronfman or the queen's private estate acted illegally.

But Ross's ties to Russian entities raise questions over potential conflicts of interest, and whether they undermine Washington's sanctions on Moscow.

The revelations about Bronfman could spell trouble for Trudeau, who was elected two years ago riding on the coattails of promises to reduce economic inequality and tax avoidance.

In the case of Queen Elizabeth's private estate, critics may question whether it is appropriate for the British head of state to invest in offshore tax havens.

READ MORE

Democracy without dignity: A Confucian critique of Donald Trump

The events of recent weeks have marked the point of absolute contrast between the world’s two most important countries and their leaders.

In China, President Xi Jinping has consolidated his power throughout the 19th Congress of the Communist Party of China (CPC), beginning with the bravura performance of a three-and-a-half hour opening speech, during which he sipped on not a drop of water.

By the end of the Congress, he was confirmed in his position for another five years, his supporters were elected to key government positions and his thinking was established as part of the CPC’s ruling doctrine for decades to come.

On the other side of the Pacific, witness the continuing omni-shambles of the Trump administration, now officially embroiled in a criminal investigation as it seemingly stumbles from scandal to scandal, one tweet at a time:
READ MORE

New US home sales spike 18.9%, hit 10-year high in September

Sales of new US single-family homes unexpectedly rose in September, hitting their highest level in nearly 10 years, offering hope that the housing market was regaining speed after appearing to stall recent months.

The Commerce Department said on Wednesday new home sales surged 18.9 per cent to a seasonally adjusted annual rate of 667,000 units last month amid an increase in all four regions. That was the highest level since October 2007 and followed August's upwardly revised sales pace of 561,000 units.

The percent gain was the largest since January 1992. August's sales pace was previously reported at 560,000 units.

Economists polled by Reuters had forecast new home sales, which account for 11 per cent of overall home sales, falling 0.9 per cent to a pace of 555,000 units last month.

New home sales, which are drawn from permits, are volatile on a month-to-month basis. Sales soared 17.0 per cent on a year-on-year basis in September. The housing market has trod water for much of this year, amid shortages of homes available for sale, skilled labour and suitable land for building.

Activity was also hampered by Hurricanes Harvey and Irma, which weighed on homebuilding in September and hurt sales of previously owned homes in the South. Housing is expected to have been a drag on economic growth in the third quarter.
READ MORE

Trump warns McCain after his speech on 'half-baked' American foreign policy

President Donald Trump on Tuesday issued a warning shot after Republican Senator John McCain questioned "half-baked, spurious nationalism" in America's foreign policy.

Trump said in a radio interview with WMAL in Washington that "people have to be careful because at some point I fight back." The president added "I'm being very, very nice but at some point I fight back and it won't be pretty."

McCain, a former Navy pilot who spent 5 years in a Vietnam prisoner of war camp and is battling brain cancer, offered a simple response to Trump: "I have faced tougher adversaries."

In Philadelphia last night, the six-term Republican senator from Arizona received an award for a lifetime of service and sacrifice to the country.

In addition to recalling his more than two decades of military service and his imprisonment during the war, McCain took a moment to go a step further than the night's other speakers, who lamented what many described as a fractured political climate.
READ MORE

Foreigners scramble out of Iraqi Kurdistan ahead of retaliatory flight ban

Foreigners scrambled to leave Iraqi Kurdistan on Friday hours before the start of a flight ban imposed by Baghdad in retaliation for an independence referendum that has sent regional tensions soaring.

Iraq's central government has ordered a halt to all international flights to and from the autonomous region from 6:00 pm (local time) on Friday after Iraqi Kurds overwhelmingly voted for independence.

Washington has said it would be willing to facilitate talks between the Iraqi Kurdish authorities and Baghdad to calm escalating tensions over the 92-percent "yes" vote, as a top Shiite cleric called for solving the crisis in an Iraqi court.

Neighbouring Turkey and Iran also strongly opposed the vote, fearing it would inflame the separatist aspirations of their own sizable Kurdish population.

Ankara has threatened a series of measures including blocking crucial oil exports from the region via Turkey.

The Kurds have condemned the flight suspension as "collective punishment".

Today, Iraqi Kurdistan's transport ministry sent a letter to Baghdad asking to "open negotiations" on flights but was still awaiting a reply, a ministry spokesman said.
READ MORE

1 killed, 4 injured after student opens fire at Washington state school

One student was killed and four others injured on Wednesday in a shooting at a high school near Spokane in the US state of Washington.

e student was killed and three others were wounded when a fellow student described as obsessed with school shootings opened fire Wednesday morning at Freeman High School near Spokane, Wash., authorities said.

The shooting took place shortly after 10:00 am (GMT) at Freeman High School in Rockford, Spokane County, in Eastern Washington state, Xinhua news agency reported.

More than an hour later, Spokane County Sheriff's Office updated its posting on Twitter social network, announcing:

#Freeman School NOT an active scene-1 person detained. #Spokane

— SpokaneSheriffOffice (@SpokaneSheriff) September 13, 2017.
READ MORE

Macron warns against 'escalating tensions' over N Korea, urges dialogue

French President Emmanuel Macron on Saturday warned against an "escalation of tensions" over North Korea amid a growing war of words between Washington and Pyongyang.

In a statement, Macron voiced his "concern at the ballistic and nuclear threat coming from North Korea", saying the international community needed to work to get Pyongyang "resume the path of dialogue without conditions".
READ MORE

Japan sets up missile defence over North Korea threat to Guam

Japan is deploying its Patriot missile defence system after North Korea threatened to fire ballistic missiles over the country towards the US Pacific territory of Guam, reports said on Saturday.

Regional tensions are mounting as Washington and Pyongyang ratchet up their war of words, with President Donald Trump warning Pyongyang would "truly regret" any hostile action against the US.

The defence ministry started deploying the Patriot Advanced Capability-3 (PAC-3) system in Shimane, Hiroshima and Kochi in western Japan, which Pyongyang warned could be along its missiles' flight path, public broadcaster NHK said.

It was also to deploy the anti-missile system in neighbouring Ehime, NHK said.

Television footage showed military vehicles carrying launchers and other equipment for the surface-to-air system entering a Japanese base in Kochi before dawn.
READ MORE