Morning Read Thursday January 10, 2019


 


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Pompeo in Egypt amid concerns over US Mideast policyU.S. Secretary of State Mike Pompeo held talks with Egyptian leaders in Cairo on Thursday as he continued a nine-nation Mideast tour aimed at reassuring America’s Arab partners that the Trump administration is not walking away from the region and will maintain pressure on Iran.

Amid confusion and concern over plans to withdraw U.S. forces from Syria, Pompeo met with Egypt’s President Abdel-Fattah el-Sissi and Foreign Minister Sameh Shoukry to discuss security and economic cooperation. He was later to deliver a speech on the administration’s broader Mideast objectives focused on combatting threats from Iran.

Pompeo said on Twitter that his meeting with el-Sissi had been “productive.” He added that “the U.S. stands firmly with Egypt in its commitments to protecting religious freedom and in the fight against terrorism that threatens all of our friends in the Middle East.”

 

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Australia man charged over suspicious parcels sent to diplomatic offices

Australian police said on Thursday they had arrested a 48-year-old man for sending as many as 38 suspicious packages to diplomatic embassies and consulates across the country.

The man was charged with sending dangerous articles through a postal service and the maximum penalty for the offense is 10 years imprisonment, the Australian Federal Police (AFP) said in a statement. There was no ongoing threat to the general public, the AFP said.

Police have so far recovered 29 of the 38 parcels but are yet to determine the exact composition of the material in them.

Australian media reported on Wednesday the parcels appeared to contain plastic bags of concrete and asbestos, with “asbestos” written on at least one of the bags. The Age newspaper reported that one firefighter was seen outside the South Korean consulate carrying a large plastic bag with the word “asbestos” written on it. [REUTERS]

Israel Ready to Confront Foreign Cyber Attacks in April ElectionsIsrael is prepared to prevent any foreign attempts to interfere in its April elections, Prime Minister Benjamin Netanyahu said Wednesday, after the head of Israel’s internal security agency warned that a foreign country intends to meddle in the vote.

“Israel is ready to foil any cyber intervention,” Mr. Netanyahu said Wednesday at a meeting of his Likud party at Israel’s parliament. “We are ready for any incident, and there is no country more prepared than we are.”

Russia “does not intervene and does not intend to intervene in elections in any country in the world,” Dmitry Peskov, a Kremlin spokesman, said Wednesday. Russia’s embassy in Israel tweeted Mr. Peskov’s comment along with a graphic saying “Keep calm and blame Russia or Russian hackers.” [WSJ]

China’s Xi hopes US, N. Korea will ‘meet halfway’

Chinese President Xi Jinping offered North Korean leader Kim Jong Un firm backing in deadlocked nuclear talks with the United States and reasserted Beijing’s key role in the wider process, according to the two allies’ state media Thursday.

Kim visited Beijing by train this week for two days of talks with Xi seen as a strategy session ahead of a second summit between the North Korean leader and US President Donald Trump.

At their first meeting in Singapore in June, Kim and Trump signed a vaguely worded document with Kim pledging to work towards the “denuclearisation of the Korean peninsula”.

But progress has since stalled with Pyongyang and Washington disagreeing over what that means. [AFP]

Pompeo, in Iraq, seeks to reassure Kurds on Syria withdrawalSecretary of State Mike Pompeo sought Wednesday to reassure U.S.-backed Kurdish forces in Syria that they will be safe after American troops withdraw from the country.

Amid confusion over plans to implement President Donald Trump’s pullout order and threats from Turkey to attack the Kurds, Pompeo made an unannounced stop in Iraq while on a weeklong trip to the Middle East aimed at assuaging the fears of Washington’s Arab partners that the U.S. is abandoning the region or walking away from the fight against the Islamic State group.

“These have been folks that have fought with us and it’s important that we do everything we can to ensure that those folks that fought with us are protected,” Pompeo said of the Kurds while visiting Irbil, the capital of Iraq’s semi-autonomous Kurdistan region, after talks in Baghdad.

“Erdogan has made commitments; he understands that – I think he uses the language – he talks about he has no beef with the Kurds. We want to make sure that that’s the case, and I’m confident that as Ambassador Jeffrey and others travel through the region in the days ahead, we’ll make real progress on that,” Pompeo said. [AP]

Jewish employees affected by the government shutdown are getting some help from this organization

Jewish federal employees who are struggling with expenses due to the government shutdown can now find some relief. The Hebrew Free Loan Association of Greater Washington approved an emergency program last week to provide loans of up to $2,000 per household to affected Jews living in the Washington, D.C., area.

Several people have applied and two have been approved, the organization’s president, David Farber, told JTA on Wednesday. The association has allocated some $30,000 to the program, and it’s reaching out to local synagogues and Jewish organizations to help in case the demand extends beyond that threshold.

In an effort to aid the struggling workers, the organization has expedited the approval process and relaxed some of its requirements for those seeking loans. Workers will have to pay back the loans when the shutdown ends; they are expected to receive their back pay. [JTA]

Air travel fears mount as U.S. government shutdown drags onU.S. airport security workers and air traffic controllers working without pay warned that security and safety could be compromised if a government shutdown continues beyond Friday, when some workers will miss their first paychecks.

As the effects of the shutdown began to ripple out, the Trump administration insisted that air travel staffing was adequate and travelers had not faced unusual delays. But union officials said some Transport Security Administration (TSA) officers, who carry out security screening in airports, had already quit because of the shutdown and others were considering quitting.

“The loss of (TSA) officers, while we’re already shorthanded, will create a massive security risk for American travelers since we don’t have enough trainees in the pipeline or the ability to process new hires,” American Federation of Government Employees TSA Council President Hydrick Thomas said. “If this keeps up there are problems that will arise – least of which would be increased wait times for travelers.”

Aviation unions, airport and airline officials and lawmakers will hold a rally on Thursday outside Congress urging an end to the shutdown. [REUTERS]

Rare penny found in school cafeteria expected to fetch $1.7M at auctionA Massachusetts teenager found a rare penny in his lunch change and kept it for more than seven decades until his recent death — without ever knowing it may be one of the most valuable US coins of all time.

The lucky piece could fetch up to $1.7 million when it hits the auction block later this week, according to reports Tuesday.

The 1943 Lincoln penny — one of 20 accidentally pressed in copper that year — was discovered by 16-year-old Don Lutes Jr. in his school cafeteria in March 1947, according to Sarah Miller of Heritage Auctions in Dallas. “This is the most famous error coin in American numismatics, and that’s what makes this so exciting,” Miller told Fox News.

In the ’40s, copper was a strategically valuable metal needed to make shell casings and other implements for World War II. [NYP]

Iran says it holds US Navy veteran, 1st arrest of Trump eraIran confirmed it is holding U.S. Navy veteran Michael R. White at a prison in the country, making him the first American known to be detained under President Donald Trump’s administration.

Although the circumstances of White’s detention remain unclear, Iran in the past has used its detention of Westerners and dual nationals as leverage in negotiations.

The semi-official Tasnim news agency, believed to be close to the country’s paramilitary Revolutionary Guard, reported the confirmation Wednesday, citing Foreign Ministry spokesman Bahram Ghasemi. “An American citizen was arrested in the city of Mashhad some time ago and his case was conveyed to the U.S administration on the first days” of his incarceration, Ghasemi was quoted as saying. [AP]

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Democrat-Controlled Legislature Starts 2019 SessionThe New York state Legislature gaveled into its 2019 session Wednesday in historic fashion as Democrat Andrea Stewart-Cousins became the first woman to lead the state Senate.
Stewart-Cousins, of Yonkers, takes over the Senate as a record-high 70 women are serving in the 213-seat Legislature. The veteran lawmaker, first elected in 2006, was tapped to lead the Senate after Democrats wrested control of the chamber from Republicans in the November elections.

“We are going to tell the rest of the country that New York is about opportunities — not barriers, not walls, not divisions,” she told a packed Senate chamber before ticking off several legislative priorities for the year, such as early voting, new campaign finance limits, the elimination of cash bail and the new rules giving child abuse victims more time to file lawsuits or seek charges against their abusers.

Carl Heastie, a Bronx Democrat, was elected speaker of the Assembly for a third time.

Wednesday saw the session’s first kerfuffle as Republicans unsuccessfully pushed back on a Democratic plan to create a new ethics committee — led by Democrats — that would have the power to investigate allegations of misconduct by lawmakers. Republicans demanded even representation on the panel but were rebuffed. [HAMODIA]

 

Fireball spotted in sky above New YorkIt’s not a bird, plane or Superman. A bright fireball dazzled onlookers from New York to North Carolina when it streaked across the sky early Wednesday morning.

More than 190 people reported seeing the gleaming rock between 6:35 a.m. and 6:45 a.m., in seven states on the East Coast, according to the American Meteor Society, a not-for-profit that tracks meteor sightings.

Video posted on Twitter shows what appears to be the fireball dipping down in the clear blue sky over West New York in Hudson County, N.J.

One person reported seeing the astronomical event in Flushing, Queens, at 6:35 a.m., and two minutes later, another lucky onlooker spotted the fireball from Pelham Parkway in the Bronx, AMS said. [NYP]

Mayor de Blasio Aims to Make New York First U.S. City to Require Paid VacationMayor Bill de Blasio proposed legislation on Wednesday that would require employers to provide paid vacation, making New York the first city in the nation to mandate this type of leave.

The bill would help the more than 500,000 full- and part-time workers who don’t get paid time off, and would guarantee such leave for 3.4 million employees citywide, the mayor’s office said.

“New Yorkers need a break,” Mr. de Blasio said at a news conference announcing the bill at City Hall. “If you work hard and you don’t get a break, that’s not fair. That’s not fair for the people who do the work, and that’s not fair for the families who never get to see them,” the mayor said.

Under the proposed legislation, companies and businesses with more than five employees would have to offer 10 days of paid time off a year, according to the city. Part-time employees also would be offered limited paid leave, with the number of days off depending on hours worked. Employees would qualify to receive paid time off after working 120 days for the company; unused time could be carried over to the next year. [WSJ]

New Jersey doubles security funding for nonpublic schoolsNew Jersey has doubled its security funding for nonpublic schools, earning praise from two Orthodox Jewish groups.

Gov. Phil Murphy, a Democrat, signed into law this week a bill that brings the funding to $22.6 million from $11.3 million, or to $150 a student from $75 a student. The measure had passed the state Legislature with unanimous bipartisan support.

Teach NJ, an advocacy group affiliated with the Orthodox Union, and Agudath Israel of America had joined with Christian and Muslim groups in advocating for the funding. “This is an enormous win for children and educators in New Jersey’s nonpublic schools and for everyone who cares about safeguarding our school environment,” Teach NJ Chairman Sam Moed said.

“Every child deserves to be able to go to school without having to be afraid that they are vulnerable to security threats,” said Duvy Gross, co-chairman of the Agudah’s New Jersey office.

Murphy signed the bill at Yeshiva Bais Hillel in Passaic. [JTA]

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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]

Trump Storms Out of White House Meeting With Democrats on ShutdownPresident Trump stormed out of a White House meeting with congressional leaders on Wednesday after Speaker Nancy Pelosi said she would not fund a border wall even if he agreed to reopen the government, escalating a confrontation that has shuttered large portions of the government for 19 days and counting.

Stunned Democrats emerged from the meeting in the White House Situation Room declaring that the president had thrown a “temper tantrum” and slammed his hands on the table before leaving with an abrupt “bye-bye.” Republicans disputed the hand slam and blamed Democratic intransigence.

When the meeting was over, talks to reopen the government appeared to be in disarray. The contentious, brief and futile session underscored an impasse that is looking each day like an insurmountable gulf between the two sides. Mr. Trump will visit the border on Thursday in McAllen, Tex., leaving little hope of a resolution for a shutdown that will tie the longest in the nation’s history on Friday.

“It wasn’t even a high-stakes negotiation; it was a petulant president of the United States,” Ms. Pelosi said as she returned to the Capitol. “A person who would say, ‘I’ll keep government shut down for weeks, months or years unless I get my way.’”

Mr. Trump called the exercise “a total waste of time.” “I asked what is going to happen in 30 days if I quickly open things up, are you going to approve Border Security which includes a Wall or Steel Barrier? Nancy said, NO. I said bye-bye,” he posted on Twitter. [NYT]

A beefed-up White House legal team prepares aggressive defense of Trump’s executive privilege as investigations loom large A beefed-up White House legal team is gearing up to prevent President Trump’s confidential discussions with top advisers from being disclosed to House Democratic investigators and revealed in the special counsel’s long-awaited report, setting the stage for a potential clash between the branches of government.

The strategy to strongly assert the president’s executive privilege on both fronts is being developed under newly arrived White House Counsel Pat Cipollone, who has hired 17 lawyers in recent weeks to help in the effort. He is coordinating with White House lawyer Emmet Flood, who is leading the response to special counsel Robert S. Mueller III’s report on his now-20-month-long investigation into Russian interference in the 2016 campaign. Flood is based in White House Counsel’s Office but reports directly to Trump.

Trump aides say White House lawyers are focused on preserving a legal protection routinely invoked by presidents of both parties. There is a growing sense that the special counsel’s closely held investigation could come to culmination soon. Some Trump advisers think Mueller could deliver the confidential report explaining his findings to senior Justice Department officials next month. Under the rules authorizing the special counsel, the attorney general can then decide whether to share the report or parts of it with Congress and the public.

Rudolph W. Giuliani, one of Trump’s personal attorneys, said the president’s lawyers have made clear to Justice Department officials that they want to see Mueller’s completed report before the department decides what to share with Congress. Their aim: to have a chance to argue whether they believe some parts should remain private under executive privilege, Giuliani said. [WASHPOST]

House Democrats ready subpoena for acting attorney generalThe new Democratic chairman of the House Judiciary Committee, Rep. Jerry Nadler of New York, is readying a subpoena to compel acting Attorney General Matthew Whitaker to testify later this month, a move that could become one of the first investigative actions of the new House majority that has promised to provide oversight of the Trump administration.

“We’re preparing the subpoena,” Nadler told ABC News. The order could be issued within days if Whitaker and committee Democrats can’t reach an agreement on a hearing date.

Democrats have grown frustrated with Whitaker and the Justice Department because, they say, after committing to appear in January in a November phone call with Nadler and House Oversight Committee Chairman Elijah Cummings, D-Md., Whitaker’s office has not agreed on a specific date to testify this month, citing scheduling difficulties related to the ongoing government shutdown, according to a source familiar with the discussions. [ABCNEWS]

Tom Steyer, Billionaire Impeachment Activist, Won’t Run Against Trump

Tom Steyer, the California billionaire who has crusaded for President Trump’s impeachment, said on Wednesday that he would not join the pack of Democrats running for president in 2020 and would instead redouble his efforts to topple Mr. Trump before the election.

Mr. Steyer’s decision came as a surprise even to some of his political confidants. He had made deliberate preparations in recent months to seek the White House, running television ads in the early primary states, recruiting potential staff members and even designating a campaign manager for a possible run.

But Mr. Steyer began informing aides early this week that he would not be a candidate after all, after concluding that he could have a greater political impact through his impeachment activism, several advisers to Mr. Steyer said. Mr. Steyer intends to spend at least $40 million on impeachment efforts in the coming year — money that might otherwise have been directed toward a campaign for the Democratic presidential nomination.

“Most people come to Iowa around this time to announce a campaign for president,” Mr. Steyer said in prepared remarks, which were obtained by The New York Times. “But I am proud to be here to announce that I will do whatever it takes, for as long as it takes, to remove a president.” Mr. Steyer, 61, left himself some wiggle room to change his mind on 2020, saying in prepared remarks that he had decided against running “at this time.” [NYT]

Washington’s oldest synagogue building takes a ride to a new museum

The oldest synagogue in Washington, D.C. was literally picked up and physically moved to a new location Wednesday.

A historic section of the Adas Israel synagogue was loaded onto a remote-controlled platform and moved, in a process that takes several hours. It was taken from its spot near the Supreme Court and Capitol building to the corner of 3rd and F Streets, about a mile away.

There, it will become part of the new Capital Jewish Museum.

Kara Blond, the museum’s executive director, said the institution wanted to “literally embrace this historic building, connecting up the old with the new.” This is the third time the synagogue has moved since it was built in 1876.

As for the Capital Jewish Museum, its artifacts will include a lace collar worn by Supreme Court Justice Ruth Bader Ginsburg and a banner carried by Jewish lobbyist Hyman Bookbinder during the 1963 March on Washington. [CNN]

 
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Wall Street extends rally as chipmakers rebound

Wall Street rallied for a fourth session on Wednesday, propelled by Apple, chipmakers and other trade-sensitive stocks after signs of progress in trade talks between the United States and China.

The benchmark S&P 500 .SPX, now in its longest daily winning streak in nearly four months, is up about 10 percent from a 20-month low it touched around Christmas, lifted by hopes for a deal between the world’s two largest economies, which eased some worries over the impact of the trade spat on global growth.

Market participants were also encouraged by strong U.S. jobs data and recent indications the U.S. Federal Reserve is in no rush to raise interest rates. [REUTERS]

Fed Is Unlikely to Raise Rates in Next Months, Minutes ShowFederal Reserve officials signaled they are unlikely to raise interest rates for at least a few months while they assess the impact of recent market volatility on the U.S. economy.

Officials were already growing more cautious about their policy path when they agreed to raise rates last month, according to minutes of their Dec. 18-19 meeting. The minutes, released Wednesday, indicated officials thought they could be close to ending their recent series of rate increases.

Their decision to raise rates last month by a quarter percentage point to a range between 2.25% and 2.5% was unanimous and followed sustained calls from President Trump to keep rates steady.

The minutes revealed that Fed officials thought concerns over slowing global growth and trade tensions that roiled markets in the run-up to the meeting made “the extent and timing of further policy firming less clear than earlier.” [WSJ]

U.S. Government Shutdown Freezes IPO Market, Imperiling Expectations for 2019

The government shutdown is threatening to spoil what was poised to be a banner year for IPOs. The partial closure of the Securities and Exchange Commission is forcing companies that were seeking to list shares in January to push back their plans, according to bankers and lawyers. They include biotechnology firms Gossamer Bio Inc., Alector Inc. and Blackstone Group LP’s Alight Solutions LLC.

It now looks likely that no major company will tap the U.S. IPO market this month. Since 1995, there have been just three years that had a new-issue drought in January, according to Dealogic data. That happened as a result of choppy markets in 2003, 2009 and 2016, which went on to be some of the weakest years for initial public offerings on record, the data show.

As part of the shutdown, currently the second-longest on record, the SEC has furloughed thousands of employees and stopped reviewing and approving all new and pending corporate registration statements, including proposed IPO filings, according to the agency’s shutdown plan and other notices on its website. Dozens of SEC accountants and lawyers who review IPO paperwork are prohibited from reading email or calling deal lawyers seeking to discuss complex disclosure questions. [WSJ]

De Blasio: I will lobby for vacancy tax on landlords of empty storefrontsMayor Bill de Blasio on Wednesday vowed to lobby Albany to pass a vacancy tax that would penalize landlords who leave shopfronts empty.

It feels to me as a New Yorker…it used to be there were some storefronts vacant – and for a limited period of time – and now you have lots of storefronts vacant for years. And that’s a blight on neighborhoods,” the mayor said at an unrelated City Hall press conference.

“It also hurts retailers — especially newer retailers — because those properties being made available at a fair price would help retailers to start up. It’s an artificial attempt to jack up the rents by taking properties off the market.”

Manhattan’s overall vacancy rates doubled from 2.1 to 4.2 percent between 2012 and 2017, according to a City Council report last year. [NYP]

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