Morning Read Friday January 11 2019


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Trump closer to declaring emergency; 800,000 won’t get paidU.S.President Donald Trump is edging closer to declaring a national emergency to fund his long-promised border wall, as pressure mounts to find an escape hatch from the three-week impasse that has closed parts of the government, leaving hundreds of thousands of workers without pay.

Some 800,000 workers, more than half of them still on the job, were to miss their first paycheck on Friday under the stoppage, and Washington was close to setting a dubious record for the longest government shutdown in the nation’s history. 

Trump was consulting with White House attorneys and allies about using presidential emergency powers to take unilateral action to construct the wall over the objections of Congress. He claimed his lawyers told him the action would withstand legal scrutiny “100 percent.”

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Israel opens segregated West Bank highway near Jerusalem

Israel inaugurated a new highway in the occupied West Bank on Thursday that features a large concrete wall segregating Israeli and Palestinian traffic.

One side of Route 4370 — located northeast of Jerusalem — will be open to Israeli vehicles only, while the other half will only be open to Palestinian traffic. Critics have branded it an “apartheid” highway, saying it is part of a segregated road system that benefits Jewish settlers.

The highway was built as part of a planned ring road east of Jerusalem that would connect the northern and southern West Bank. Construction began in 2005, but the 5-kilometer (3-mile) road lay unfinished for years until 2017.

Israeli officials inaugurating the new road on Wednesday touted it as a means of better connecting West Bank settlements north of Jerusalem to the city. Israeli Public Security Minister Gilad Erdan called the highway “an example of the ability to create coexistence between Israelis and Palestinian while guarding (against) the existing security challenges.” [ABCNEWS]

Israel’s political parties kick off tumultuous election seasonAs Israel’s national election season kicks off, the governing Likud party and the once dominant Labor party celebrated the beginning of campaign season with events attended by thousands of supporters.

Supporters of Israeli Prime Minister Benjamin Netanyahu’s Likud party, or “Likudniks” as they are often called, gathered at the Club Hotel in the southern port city of Eilat for an unofficial weekend retreat featuring many famous faces representing the party in Israel’s current government.

Meanwhile, Labor leader Avi Gabbay on Thursday night addressed a crowd of thousands at the Tel Aviv Fairgrounds for the Labor party convention and kick-off campaign event leading up to April elections – hoping to convince the crowd he is the party’s best chance to defeat Netanyahu.

Gabbay used his opportunity to address his party faithful at the convention by calling for Yesh Atid leader Yair Lapid and Former IDF chief-of-staff Benny Gantz not to join a coalition led by Netanyahu. [i24NEWS]

In Cairo, Pompeo blasts Obama’s Middle East policies

Secretary of State Mike Pompeo on Thursday accused Barack Obama of sowing chaos by abandoning the Middle East to Islamist militants and Iranian influence in a blistering critique of the former president’s policies even as Pompeo’s boss, President Donald Trump, moves to pull American troops out of Syria.

In a speech at the American University in Cairo, Pompeo dispensed with a U.S. diplomatic tradition of avoiding public airing abroad of domestic disputes by blasting Obama at the site of a landmark 2009 speech by Trump’s predecessor aimed at improving relations with the Islamic world.

Pompeo presented America as “a force for good in the Middle East” and suggested Obama saw the United States as “a force for what ails the Middle East.” The address by the chief American diplomat drew criticism from former U.S. officials and analysts who accused him of misreading history and camouflaging Trump’s own desire to reduce U.S. commitments in the region.

“What did we learn from all of this? We learned that when America retreats, chaos often follows. When we neglect our friends, resentment builds. And when we partner with our enemies, they advance,” Pompeo said. Pompeo did not mention Obama by name but called him “another American” who had also given a speech in the capital of the Arab world’s most-populous nation. [REUTERS]

Increasingly isolated Venezuelan president begins new termVenezuelan President Nicolas Maduro began a new term on Thursday with the economy in ruins and his regime more isolated than ever as regional leaders declared his re-election illegitimate and shunned his inauguration.

The 56-year-old socialist leader was sworn in by Supreme Court president Maikel Moreno as an audience of hundreds, including a handful of South American leftist leaders and Venezuela’s military top brass, cheered and applauded. “I swear on behalf of the people of Venezuelan … I swear on my life,” Maduro said solemnly as he took the oath of office for a second six-year term.

After donning the presidential sash — as well as a ceremonial gold chain bearing the key to the sarcophagus containing the remains of Venezuela’s revolutionary leader Simon Bolivar — an ebullient Maduro turned to salute the crowd with a V-sign.

Maduro was re-elected last May in voting boycotted by the majority of the opposition and dismissed as fraudulent by the United States, European Union and Organization of American States (OAS). “The US will not recognize the Maduro dictatorship’s illegitimate inauguration,” national security advisor John Bolton tweeted Thursday. [AFP]

Robert Mueller met with Trump’s pollster

Special counsel Robert Mueller sought information directly last year from one of Donald Trump’s campaign pollsters who is also a former business associate of Paul Manafort’s.

Mueller’s team met with pollster Tony Fabrizio in February 2018, an interview that has not been previously reported and takes on new significance after Manafort’s attorneys revealed Tuesday that Mueller’s team is still interested in how Manafort shared polling data with his Russian intelligence-linked colleague.

CNN journalists observed Fabrizio leaving the special counsel’s office on the first of February last year and have since confirmed he was meeting with Mueller’s team. At the time, the special counsel had been digging into Manafort’s finances and political work ahead of his trial.

In a filing Tuesday, Manafort’s attorneys tried to redact the fact that prosecutors knew Manafort shared polling data related to the 2016 presidential election with his Russian intelligence-linked associate Konstantin Kilimnik while Manafort was running Trump’s presidential campaign. The information was supposed to remain secret because it’s part of an ongoing investigation, but it was revealed because of a formatting error in the filing.

Fabrizio’s involvement with Mueller is intriguing because he’s one of the few people in Manafort’s orbit with knowledge of the inner-workings of the Trump campaign as well as Manafort’s Eastern European connections. [CNN]

Payday without pay hits federal workers as shutdown drags onPayday will come Friday without any checks for about 800,000 federal employees affected by the government shutdown, forcing workers to scale back spending, cancel trips, apply for unemployment benefits and take out loans to stay afloat.

The shutdown, which enters its 21st day Friday, will be the longest in history by this weekend and is forcing many American families to make tough decisions. It’s especially hard for workers who don’t have enough savings to cover their mortgages and other bills.

Roughly federal 420,000 employees were deemed essential and are working unpaid. An additional 380,000 are staying home without pay. While furloughed federal workers have been given back pay in previous shutdowns, it’s not guaranteed that will happen this time. Government contractors, who have been placed indefinitely on unpaid leave, don’t get compensated for lost hours.

Most of the government workers received their last paycheck two weeks ago, and Friday will be the first payday with no money. On Thursday, federal workers called for an end to the shutdown during rallies planned in such places as Denver and Ogden. [AP]

The romaine lettuce E. coli outbreak is officially overAn outbreak of E. coli traced to romaine lettuce is officially over, federal health officials said Wednesday.

No one has become ill since December and all potentially affected lettuce is off the shelves now, the Centers for Disease Control and Prevention said. In all, 62 people got sick in the U.S. and 29 in Canada. “This outbreak appears to be over as of January 9, 2019,” the CDC said in a statement. It said 25 were ill enough to be hospitalized, although no one has died.

The outbreak was traced to farms in California, and so far, one farm in particular was found to have E. coli with the same DNA fingerprint. “CDC identified the outbreak strain of E. coli 0157:H7 in sediment collected within an agricultural water reservoir on an Adam Bros. Farming Inc. farm in Santa Barbara County, which was identified in the traceback investigation,” the agency said. But officials said one farm could not have been the source of all the contamination. The Food and Drug Administration said it was continuing its investigation. [NBCNEWS]

Wisconsin lawsuit challenges Republican moves to curb incoming DemocratA coalition of left-leaning Wisconsin groups filed a lawsuit on Thursday seeking to throw out several laws passed by the Republican-led legislature following the November election that weakened the powers of the newly elected Democratic governor.

Outgoing Republican Governor Scott Walker signed the bills into law in mid-December, despite criticism from Democrats that the efforts were a last-minute power grab before Democrat Tony Evers, who defeated Walker, took office this month.

Republicans defended the moves, and similar maneuvers in Michigan and North Carolina, as good-faith efforts to ensure the legislative and executive branches remain equals. [REUTERS]

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Spirit Airlines turned our flight into an anti-Semitic nightmare: coupleA Borough Park couple is accusing Spirit Airlines of turning a trip to Florida into an anti-Semitic “nightmare” from start to finish — calling them “retarded” as the plane took off, harassing them throughout the flight, and having cops escort them off the plane after landing.

Chana and Yisroel Beck arrived at Newark Airport on Tuesday along with their 6-week-old, 2-year-old and 3-year-old daughters, eager to embark on their weeklong trip to Fort Lauderdale. “It was our first family trip, a nice, beautiful vacation that turned into a traumatic experience — a nightmare from the way we were treated and how we were escorted off without being told what we did wrong,” Chana, 25, told The Post on Thursday.

She said a gate agent allowed them to take their FAA-approved Doona baby carriage onto the aircraft, but that things took a wrong turn when two flight attendants at the plane entrance saw it. “One of them said, ‘There is no way this is coming on. I don’t care who approved it at the gate. I’m the boss here and I’m going to decide if it comes on or not,’” Chana said about a flight attendant. She said she and Yisroel, 28, complied and folded the carriage, which they initially were allowed to take to their seats because it can convert into a car seat.

A crew member then said, “’I’m not going to discuss this — this seat is going off the plane now,’” Chana said.

A fellow flier who witnessed the tumult said he overheard a steward utter “those retarded Jews” in conversation with a female flight attendant before the plane took off [NYP]

De Blasio promises faster buses, expanded 3K, tenant protections at 2019 State of the CityAn expansion of the NYC Ferry, a new Mayor’s Office to Protect Tenants, a plan to speed up MTA buses and free eyeglass for all pre-K and first graders were some of the promises Mayor Bill de Blasio made at his 2019 State of the City, reiterating his message to make New York the fairest big city in America.

The mayor first highlighted some wins from 2018, reiterating how homicides dropped to the lowest numbers seen since 1951 and how the NYPD made 140,000 fewer arrests in 2018 compared to 2014, the year de Blasio took office.

Traffic fatalities also dropped to a record low in 2018, with the lowest deaths reported since 1910, the mayor said, and New York permanently housed more than 2,000 homeless residents.

Looking ahead to 2019 and beyond, de Blasio announced big plans highlighting worker protections. Some announcements came earlier this week, like guaranteed health care for all New Yorkers and mandated paid personal time off for all workers. [METRO]

Nazi who lived in Queens for decades dies months after he’s deported to GermanyA Nazi war criminal who was recently booted from his home in Queens and deported to Germany has died.

Jakiw Palij, 95, worked as a guard at the Nazi German Trawniki SS camp in occupied Poland. In 2004, the Department of Justice convinced a federal judge to strip Palij of his U.S. citizenship. Afterward, an immigration judge ordered he be deported to Germany, Poland or Ukraine.
But those countries for years refused to take in the concentration camp guard.

In August, he was finally deported by federal immigration agents.

“It’s the closure survivors of the Holocaust needed,” said former Assemblyman Dov Hikind. “It also goes to show that our efforts in seeking justice were not in vain, and reinforces our commitment to ridding the world of any last vestige of Nazism regardless of where it may exist. He certainly did not deserve to die on blessed American soil, but rather in a country closer to where he committed his abhorrent crimes.” [NYDN]

Councilman Proposes Panel to Assess NYPD’s Handling of Hate GroupsIn response to a rise in hate crimes in New York City last year, a Queens councilman announced legislation on Wednesday that would create a task force to evaluate the New York Police Department’s strategy for combating hate groups.

Rory Lancman, the Democratic chair of the city council’s committee on the justice system, said the panel’s goal would be to study acts of violence committed by hate groups and produce recommendations for improving security procedures. The task force would include officials from the NYPD, the city’s Office of Emergency Management and members appointed by the city council and Mayor Bill de Blasio.

The NYPD recorded 361 hate crimes in 2018, a 6.5% increase from the 339 in 2017. [WSJ]

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Facing gridlock, GOP senators seek big immigration deal to end shutdownStaring at a prolonged government shutdown, Republican senators are privately planning to court Democratic senators on an immigration deal that would give President Donald Trump money for his border wall and include several measures long-sought by Democrats, according to sources familiar with the matter.

After Trump stormed out of a White House meeting with congressional leaders, GOP senators privately gathered in Sen. Lindsey Graham’s office Wednesday to discuss a way out of the logjam. The long-shot idea: propose an immigration deal that would include $5.7 billion for Trump’s border wall along with several provisions that could entice Democrats.

Those items include changes to help those who are a part of the Deferred Action for Childhood Arrivals program as well as immigrants from El Salvador and other countries impacted by the Temporary Protected Status program – along with modifications to H-2B visas. The plan is in its very early stages. Its chances of success are still very uncertain at best, Republicans cautioned.

GOP senators pitched the idea to senior White House adviser Jared Kushner, who said if they came up with a proposal that got Trump his border wall money and could pass the Senate, the White House would be open to more discussions on the matter, the source said. He did not say Trump would endorse such a plan. [CNN]

On the border, Trump turns political in making case for his wallWearing a “Make America Great Again” campaign hat, and criticizing his Democratic antagonists in Congress and their 2020 presidential hopefuls, President Donald Trump on Thursday made the case again for a border wall during a roundtable with law enforcement officials near the U.S.-Mexico line in McAllen, Texas.

“They say a wall is medieval. So is a wheel,” Trump said of his critics. “A wheel works and a wall works.”

Trump mostly listened to praise from participants, including Sens. John Cornyn and Ted Cruz, R-Texas, and presentations from law enforcement officers who used seized drugs, guns and money to illustrate their points about dangerous contraband being brought across the border.

Reviving a theme from a central tenet of his campaign for Republican candidates in last year’s midterm elections, which flipped the House into Democratic hands and increased the GOP majority in the Senate by two seats, Trump charged that Democrats are embracing crime by refusing to give him the money he needs to build a wall. “Nobody’s going to win the battle of ‘strong borders and no crime’ as opposed to ‘open borders and crime doesn’t matter,'” he said. [NBCNEWS]

Michael Cohen, Trump’s former lawyer, to testify publicly before Congress President Donald Trump’s former lawyer Michael Cohen will testify before the House Oversight Committee, the first major move by House Democrats to haul in a member of Trump’s team connected to special counsel Robert Mueller’s investigation, according to a schedule published by the committee.

Cohen has agreed to testify publicly before the panel on February 7, according to a statement from Cohen. In a statement to CNN, Cohen said he agreed to testify “in furtherance of my commitment to cooperate and provide the American people with answers.” “I look forward to having the privilege of being afforded a platform with which to give a full and credible account of the events which have transpired,” Cohen said.

House Oversight Committee Chairman Elijah Cummings, a Maryland Democrat, said that Mueller cleared Cohen’s testimony before it was agreed to. “He’ll have a chance to tell his side of the story, and we’ll have a chance to question him. The American people deserve that,” Cummings said. “We don’t want to do anything to interfere with the Mueller investigation.” [CNN]

Rep. Steve King goes on defense: ‘I reject white nationalism. I reject white supremacy’Rep. Steve King, R-Iowa, did not deny making inflammatory comments to the New York Times about white nationalism and white supremacy — though he insisted in an interview that he rejects both of those mindsets.

“I reject white nationalism. I reject white supremacy. It’s not part of any of my ideology. I reject anyone who carries that ideology,” the Iowa Republican told NBC News in his Capitol Hill office. King said that he was really talking about “the continuation of applying labels onto people as freely as they are.”

King faced widespread criticism following a recent interview with The New York Times in which he said: “White nationalist, white supremacist, Western civilization — how did that language become offensive?.. Why did I sit in classes teaching me about the merits of our history and our civilization?”

Asked why he made that comment, King told NBC Thursday, “That was in the context of a long interview for the New York Times.” [NBCNEWS]

Sen. Gillibrand eyes Troy, New York, for 2020 campaign base

Democratic Sen. Kirsten Gillibrand is looking at basing a potential 2020 presidential campaign in Troy, New York, a small upstate city on the banks of the Hudson River, according to multiple people familiar with the discussions.

The search for a headquarters is the strongest signal yet that the New York senator will soon enter a presidential race that could ultimately draw dozens of candidates. The selection of Troy, 150 miles (240 kilometers) north of Manhattan, could allow Gillibrand to highlight her roots in upstate New York, where she was born and later represented in Congress before being appointed to the Senate.

Gillibrand’s representatives didn’t comment Thursday on her choice of headquarters.

If Gillibrand enters the race, she will join what is expected to be a historically large field, and one that could include many of her Senate colleagues. Massachusetts Sen. Elizabeth Warren has already formed an exploratory committee and is moving quickly with trips across the landscape of early primary states. Other members of the Senate’s Democratic caucus, including California Sen. Kamala Harris, New Jersey Sen. Cory Booker and Vermont Sen. Bernie Sanders, are all weighing their own presidential bids and are expected to announce decisions in the upcoming weeks. [TIMESUNION]

Six unidentified Holocaust victims to be given unprecedented Jewish funeral in UK

The remains of six unidentified Holocaust victims are to be given a formal Jewish burial after being stored at London’s Imperial War Museum (IWM) for decades.

The victims will be laid to rest in a Jewish cemetery in Hertfordshire on January 20, just one week before Holocaust Memorial Day. It is believed to be the first time that victims of the Holocaust will be buried in the UK.

Melvyn Hartog, Head of United Synagogue Burial — the burial society overseeing the ceremony — told CNN that burying the remains of the victims is a “unique and holy responsibility.” He said that following the funeral service the remains will be taken to their final resting place, and Holocaust survivors will be invited to fill the graves with earth.

The ash and bone fragments, believed to be from five adults and a child, have been stored at the IWM since January 1997, when a private donor bequeathed a number of Holocaust-related items to the museum. The remains of the victims were collected at Auschwitz-Birkenau concentration camp by a Holocaust survivor.

The museum, which has a license to hold human tissue, will soon hand over the remains to the Office of the Chief Rabbi and the United Synagogue — a union of British Orthodox Jewish synagogues — having consulted the Chief Rabbi, Ephraim Mirvis and the Auschwitz museum in Poland. The IWM told CNN the museum decided to relinquish the remains after conducting a review of all the items in its archives relating to the Holocaust, ahead of the construction of new World War II and Holocaust Galleries at the museum, which are due to open in 2021. [CNN]

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S&P 500 posts first 5-day winning streak since September

Stocks rose on Thursday, but gains were capped as disappointing holiday sales from Macy’s and a revenue guidance cut from American Airlines pressured retail and airline shares. Fear that the U.S. government shutdown might continue for a long time also weighed on stocks.

The S&P 500 climbed 0.4 percent to 2,596.64 — notching its first five-day winning streak since September — as the real estate and industrials sectors outperformed. The Dow Jones Industrial Average also posted a five-day winning streak, rising 122.80 points to 24,001.92 as Boeing outperformed. The Nasdaq Composite gained 0.4 percent to 6,986.07.

Macy’s shares tanked more than 18 percent — their worst day ever — after reporting its same-store sales grew by just 1.1 percent in November and December. The company also cut its earnings and revenue forecast for fiscal 2018. [CNBC]

Strong Economy Can’t Save Macy’s From Retail ShiftsMacy’s and other mall-based retailers said sales petered out at the end of the year as they continued to lose customers to discounters and e-commerce, highlighting how not all chains are positioned to benefit from a strong U.S. economy.

The year-end results—and a weak profit outlook from Macy’s—clouded what have been upbeat expectations for the holiday sales season with consumers showing a hearty willingness to spend.

The news Thursday spooked investors, who sent shares of Macy’s down nearly 18%, the department store’s worst one-day decline on record. Rival Kohl’s Corp. KSS -4.81% and mall stalwart L Brands Inc., LB -4.39% the owner of Victoria’s Secret, also posted tepid holiday sales, triggering a broader selloff in retail stocks.

“The holiday season began strong—particularly during Black Friday and the following Cyber Week, but weakened in the mid-December period,” Macy’s Chief Executive Jeff Gennette said. The negative sentiment weighed on shares of discounters. [WSJ]

Banner Oak Capital Partners teams up to build 1.3M sf vertical warehouse

Three investors are bringing a Texas-sized warehouse to Brooklyn. Banner Oak Capital Partners, the investment advisor for the Texas teachers’ pension fund, has joined Dov Hertz and Bridge Development Partners on their plan to redevelop an 18-acre industrial park in Sunset Park. The trio closed Thursday on the $255 million purchase of the Sunset Industrial Park along the Gowanus Canal, the partners told The Real Deal.

Apollo Commercial Real Estate Finance provided a $200 million acquisition loan for the property, which has an address of 75-81 20th Street.

The new owners plan to demolish existing buildings on the campus and build a four-story distribution center of up to 1.3 million-square-feet, which they’re billing as the largest of its kind in the United States.

“This will be a groundbreaking project for the U.S. industrial market, not only because of the building’s unprecedented design — essentially, four separate, stacked distribution centers — but also because of the enormous benefit it will have from a ‘last mile’ standpoint,” Jeff Milanaik of Bridge Development Partners said in prepared remarks. [TRD]

GM’s Cadillac will introduce EV in fight against Tesla – sourcesCadillac is expected to become General Motors Co’s (GM.N) lead electric vehicle brand as the largest U.S. automaker gears up to introduce a new model under that luxury marquee to challenge Tesla Inc (TSLA.O), two people briefed on the matter said Thursday.

GM is set to announce Friday as part of an investor update that a Cadillac will be the first vehicle based on its forthcoming “BEV3” platform, the people said. The vehicle platform is the basis for vehicle underpinnings, including the battery system and other structural and mechanical parts.

GM is not expected to disclose on Friday additional details, including precisely when the Cadillac EV will be built, whether it will be a crossover or sedan, or where it will be assembled, the sources said. [REUTERS]

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