Morning Read Wednesday January 9 2019


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Rod Rosenstein expected to depart DOJ in coming weeks Deputy Attorney General Rod Rosenstein is expected to leave his role in the coming weeks. around the time William Barr, Trump’s nominee for attorney general, would take office following a Senate confirmation.

Sources told ABC News Rosenstein wants to ensure a smooth transition to his successor and would accommodate the needs of Barr, should he be confirmed.

Rosenstein apparently had long been thinking he would serve about two years, and there was no indication that he was being forced out at this moment by the president.

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Pompeo starts Middle East visit to ramp up pressure on Iran

The Trump administration is doubling down on commercial and diplomatic efforts in the coming weeks to “put real pressure on Iran,” U.S. Secretary of State Mike Pompeo said at the start of a Mideast tour Tuesday.

Pompeo is meeting with U.S. allies in the region, including stops in Jordan, Egypt and several Gulf nations, to coordinate an anti-Iran campaign.

Pompeo contended Tuesday that the planned withdrawal from Syria would not complicate the administration’s anti-Iran campaign. He said U.S. allies in the region, including Jordan, agree on what they view as the “enormous risk” Iran poses for the region. “The president’s decision to withdraw our folks from Syria in no way impacts our capacity to deliver on that,” he said in a joint news conference with Jordanian Foreign Minister Ayman Safadi. “You will see in the coming days and weeks that we are doubling not only our diplomatic but our commercial efforts to put real pressure on Iran to achieve what it is we set out for them back in May.” [AP]

Launching Yesh Atid election campaign, Lapid vows to oust ‘dangerous’ NetanyahuAfter bursting onto the political scene with a surprisingly strong showing in Israel’s 2013 election, Yair Lapid said he was bound for the prime minister’s office. Five years later, after two years in government and nearly four in the opposition, the Yesh Atid chairman on Tuesday launched his party’s latest election campaign, which he promised would finally take him there.

Packed into the emblematically named “Miracle Hall” in the central Israeli town of Rishon Lezion, a stronghold for the centrist party, Lapid told exuberant party activists that after the long wait, “This is our time. I am running to be prime minister of Israel.”

After failing to build on his first election success (19 seats) with a relatively poor outcome in the 2015 ballot (11 seats), Lapid said Tuesday that the upcoming April vote would be different — if not because of his own party or achievements, then because the alternative is too “dangerous.”

“We’re here to win. There is too much at stake,” he said to the cheers of the some 450 people in the hall that felt — perhaps purposefully — too small and overcrowded. “We will win because most of the citizens of Israel don’t want a prime minister who is only interested in his own indictments,” he added emphatically. [TOI]

EU hits Iran with sanctions after murder plots

The EU hit Iran’s intelligence services with sanctions Tuesday after accusing Tehran of being behind plots to assassinate regime opponents on Dutch, Danish and French soil.

The move by the 28-nation bloc was announced as the Dutch government said it believed Iran was behind the murders of two dissidents in 2015 and 2017. “Very encouraging that (the) EU has just agreed on new targeted sanctions against Iran in response to hostile activities and plots being planned and perpetrated in Europe, including Denmark,” Danish Prime Minister Lars Lokke Rasmussen said.

The “EU stands united — such actions are unacceptable and must have consequences,” he tweeted.

Sanctions include the freezing of funds and other financial assets of the Iranian intelligence ministry and individuals, officials said.

But Iran’s Foreign Minister Mohammad Javad Zarif pointed the finger at European nations he said were harbouring terrorists. “Accusing Iran does not release Europe from its responsibility for hosting terrorists,” he said in a tweet. [AFP]

May defeated in parliament, MPs create new obstacle to no-deal BrexitBritish Prime Minister Theresa May’s government suffered a defeat in parliament on Tuesday when MPs who oppose leaving the European Union without an accord won a vote on creating a new obstacle to a no-deal Brexit.

The 303 to 296 defeat means that the government needs explicit parliamentary approval to leave the EU without a deal before it can use certain powers relating to taxation law. May’s office had earlier played down the technical impact of defeat.

The defeat highlights May’s weak position as leader of a minority government, a divided party, and a critical parliament just days before she is due to hold a pivotal vote on whether to approve the Brexit deal she has negotiated with the EU.

“This vote is an important step to prevent a no-deal Brexit. It shows that there is no majority in Parliament, the Cabinet or the country for crashing out of the EU without an agreement,” opposition leader Jeremy Corbyn of the Labour Party said. Speaking before the vote, Treasury minister Robert Jenrick said the proposal’s only impact would be to make the country “somewhat less prepared” for a no-deal outcome. [REUTERS]

TSA Workers Forced to Work Without Pay During Shutdown Are Already Quitting, Union Says

Airport security screeners, forced to work without pay during the government shutdown, have been calling out sick. But now the mad-as-hell workers are actually quitting their jobs. That’s according to union officials representing Transportation Security Administration officers, who will miss their first paycheck since the government ground to a halt Dec. 22 over a budget and border wall impasse.

“Some of them have already quit and many are considering quitting the federal workforce because of this shutdown,” Hydrick Thomas, head of the American Federation of Government Employees’ TSA Council, said in a statement Tuesday.

The loss of 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. Our TSOs already do an amazing job without the proper staffing levels, but if this keeps up there are problems that will arise—least of which would be increased wait times for travelers.”

Because the security officers are considered essential employees, they have to work regardless of whether they get paid. Some have called out sick, whether in protest or to work another job. One TSA worker at JFK International Airport in New York told The Daily Beast that at least 15 of his coworkers have called out since the shutdown began on Dec. 22—and he might be next. [DAILYBEAST]

Trump administration promises food stamp benefits will continue through February despite shutdownThe Trump administration pledged Tuesday that Americans will receive food stamps through February despite the partial government shutdown, but officials could not promise those benefits will continue if the shutdown lasts until March.

Congress has only approved funding for the Supplemental Nutrition Assistance Program through January, fueling concern food benefits used by 38 million Americans would expire amid the budget stalemate in Washington.

In a call with reporters on Tuesday, Agriculture Department officials said that they will give states the money for February’s food stamps ahead of time — by Jan. 20 – to circumvent the expiration of federal appropriations. States, which administer the SNAP program, will have to ask for the money to be allocated earlier than they normally would.

SNAP beneficiaries will not see cuts to their benefits through the end of February even if the shutdown continues, said Brandon Lipps, acting deputy undersecretary for Food, Nutrition and Consumer Services. But Trump administration officials could not guarantee that food stamp benefits would be paid if the shutdown extends beyond February, instead blaming Congress for not giving Trump money for his proposed wall along the U.S.-Mexico border. [WASHPOST]

Mexican fuel shortage threatens Super Bowl snackSuper Bowl fans may have to go without guacamole this year if avocado farmers in Mexico cannot send their fruit to the United States because of a prolonged fuel shortage.

Like clockwork, Mexican producers ship thousands of tonnes of avocado to the United States in early February every year, where guacamole is a staple living room snack on Super Bowl Sunday. But the Mexican government’s efforts to clamp down on years of mounting fuel theft has a prompted a week-long fuel shortage that has left many states in central and western Mexico high and dry.

Among those states is Michoacan, the country’s main avocado grower. Producers there expect to ship 120,000 tonnes for this Super Bowl, 20,000 tonnes more than last year. “Our three most important weeks of the year are this one and the next two. This is when we ship for Super Bowl week,” said Ramon Paz, spokesman for APEAM, a business association representing Mexican avocado producers and exporters. “We have from now to January 24, 25 to ship all that volume. If we don’t ship it (by then), we can’t do so later,” Paz said.

So far, 27,000 tonnes have been sent to the United States for the Super Bowl, which will be held on Feb. 3 in Atlanta, Georgia. The annual football championship is the most-watched U.S. television broadcast of the year, regularly drawing more than 100 million viewers. [REUTERS]

Cancer Deaths Decline 27% Over 25 YearsDeaths from cancer dropped 27% over a quarter century, meaning an estimated 2.6 million fewer people died of the disease during that period, according to a new report from researchers at the American Cancer Society.

For most of the 20th century, overall cancer deaths rose, driven mainly by men dying from lung cancer, researchers noted. But since the peak in 1991, the death rate has steadily dropped 1.5% a year through 2016, primarily because of long-running efforts to reduce smoking, as well as advances in detection and treatment of cancer at earlier stages, when prognosis for recovery is generally better.

Amid the good news about the decline in the overall death rate, there are also some troubling signs that researchers said need to be addressed. Endometrial cancer has increased, and about 60% of cases are attributed to obesity, according to Rebecca Siegel, strategic director of surveillance information services at the American Cancer Society and the lead author of the new report. “We are probably only seeing the tip of the iceberg regarding the influence of the obesity epidemic on cancer rates,” Ms. Siegel said. [WSJ]

New laws to prevent NYC school bus abuses seen in 2018 crisisLawmakers are poised to pass sweeping legislation to improve the city’s yellow school bus service in the wake of the disastrous yellow school bus crisis of 2018.

The City Council will vote Wednesday on a set of eight laws created in response to the record number of busing problems since the start of the school year that began in September, in which city kids faced delays of more than four hours and were subjected to bus staffers who committed serious crimes.

The new laws will mandate the use of GPS tracking systems on school buses so parents can see where their kids are going and require school bus drivers to carry two-way radio systems to communicate with families and dispatchers.

They’ll also require the city to issue public reports on the quality of school bus service, test busing routes and notify families of kids’ busing routes before the start of the school year, among other things. [NYDN]

Bill would require NYC developers to disclose relationships with politiciansDevelopers who want to do business with the city would be required to publicly disclose previous relationships with government officials under a bill being introduced Wednesday at the City Council.

“Well-connected developers should not be getting sweetheart deals on the taxpayers’ dime,” said Councilman Ben Kallos (D-Manhattan), the bill’s sponsor.

Under the bill, the city’s Department of Housing Preservation and Development would be required to give the Council the “compliance package” submitted by prospective developers for mandatory background checks.

The filing details a company’s previous history with existing government officials, a company’s efforts to hire locally, ownership interests and other information Kallos said should be disclosed prior to public hearings. [NYP]

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Dean and Adam Skelos begin prison sentencesThe once-powerful former State Senate Majority Leader Dean Skelos and his son Adam Skelos began serving their four-year sentences in federal prison Tuesday, officials said.

The Skeloses, convicted on corruption charges for using Dean Skelos’ position in state government to shake down companies for $300,000 in payments to Adam, turned themselves in to federal authorities Tuesday as ordered by a federal judge, officials said.

Dean Skelos reported to Federal Correctional Institute Otisville in upstate Orange County and Adam Skelos reported to his assigned prison, FCI Danbury in Connecticut, the Federal Bureau of Prisons said Tuesday afternoon.

Dean Skelos, 70, a Rockville Centre Republican who served in the State Legislature for 30 years, was sentenced to four years and three months in prison. Adam Skelos, 36, also of Rockville Centre, was sentenced to four years. [NEWSDAY]

NYC to Fund Health Care for All, Including the Undocumented, Mayor SaysMayor Bill de Blasio proposed a $100 million plan that he said would provide affordable “healthcare for all,” reaching about 600,000 undocumented immigrants, low-income residents not enrolled in Medicaid and young workers who consider current insurance plans too expensive.

The proposed city-funded health insurance option would assign a primary care doctor to each plan participant and help patients find specialists if needed. People will be able to enroll in the plan later this year, either by going to the city Website,, or by calling 311, its telephone information center.

The plan, which de Blasio dubbed “NYC Care,” will offer public health insurance on a sliding price scale based on income, the mayor said during an interview Monday morning on MSNBC. De Blasio said the plan, which would be financed out of the city’s public health budget, would ultimately be cost effective in reducing hospital emergency room visits by uninsured patients and by improving the city’s public health. [BLOOMBERG]

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In Oval Office address, Trump declares border crisis while Democrats say he has “chosen fear”Speaking from the Oval Office on Tuesday night, President Donald Trump accused Democrats in Congress of refusing to acknowledge the crisis on the border. “The federal government remains shutdown for one reason and one reason only — because Democrats will not fund border security,” he said. “The only solution is for Democrats to pass a spending bill that defends our borders and reopens the government.”

Trump argued that the U.S.-Mexico border has served as a “pipeline” for illegal drugs and that it was a “crisis of the heart and crisis of the soul.”

Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., accused Trump of using “the backdrop of the Oval Office to manufacture a crisis” in his prime-time address to the nation. “We can secure our border without an expensive, ineffective wall. And we can welcome legal immigrants and refugees without compromising safety and security,” said Schumer during the brief official Democratic response to the president’s remarks. “The symbol of America should be the Statue of Liberty, not a 30-foot wall.”

“There is an obvious solution: separate the shutdown from the arguments over border security,” Scumer said, standing beside Pelosi in the Capitol. “There is bipartisan legislation — supported by Democrats and Republicans — to re-open government while allowing debate over border security to continue.”

Their statements came on the 18th day of the federal government shutdown, which began Dec. 22, after Democrats and Republicans failed to reach a compromise and break the impasse over the president’s $5.7 billion border wall funding request. [NBCNEWS]



Behind the scenes of Trump’s prime time address

In taking his argument to a national television audience and on a trip to the Texas border he plans to take on Thursday, Mr. Trump hoped to reframe the debate. After spending much of the first two weeks of the shutdown cloistered in the White House, he has now opted to use the powers of the presidency to focus public attention on his ominous warnings about the border.

Yet privately, Mr. Trump dismissed his own new strategy as pointless. In an off-the-record lunch with television anchors hours before the address, he made clear in blunt terms that he was not inclined to give the speech or go to Texas, but was talked into it by advisers, according to two people briefed on the discussion who asked not to be identified sharing details.

“It’s not going to change a damn thing, but I’m still doing it,” Mr. Trump said of the border visit, according to one of the people, who was in the room. The trip was just a photo opportunity, he said. “But,” he added, gesturing at his communications aides, Bill Shine, Sarah Huckabee Sanders and Kellyanne Conway, “these people behind you say it’s worth it.” [NYT]

White House Aides Fear Trump Has Turned the Border Wall into His Alamo

Inside the West Wing, Trump has told aides he’s prepared to stake his presidency on making a last stand. “He has convinced himself he can’t win re-election in 2020 unless he gets a lot of the wall built. It’s fundamental to his id,” a former West Wing official said. “The problem is, the Democrats know that.”

Trump’s aides fear he has given himself no way out. “The president put himself in a box,” the former official in touch with the White House told me. “The problem is there’s no endgame. Right now the White House is at a seven on the panic scale. If this thing goes on past the State of the Union they’re going to be at an 11.”

Acting chief of staff Mick Mulvaney, installed in the job just before Christmas, may already be looking at escape routes. Unlike his long-suffering predecessor, John Kelly, Mulvaney has indicated he’s prepared to walk away if things go south with the president. “Mick has both eyes open,” said a person who spoke with Mulvaney recently. “So far, Trump has been more DIY than ever before. It’s a continuation of where things left off with Kelly. Mulvaney is not going to stick around and get ground up.” [VANITYFAIR]

Dems block Senate bill on Israel boycotts, citing shutdown

Senate Republicans’ first bill of the new Congress was intended to insert the legislative branch into President Donald Trump’s Middle East policy — but also to drive a wedge between centrist and liberal Democrats over attitudes toward Israel.

The bipartisan package backed by Senate Majority Leader Mitch McConnell, R-Ky., had initially drawn widespread support ahead of Tuesday’s vote. It included measures supporting Israel and Jordan and slapping sanctions on Syrians involved in war crimes at a time of growing unease in Congress over the Trump administration’s shifts in the region. But Democrats are split over the addition of Republican Sen. Marco Rubio’s “Combatting BDS Act,” which seeks to counter the global Boycott, Divest and Sanctions movement against Israel over its treatment of Palestinians and the settlements.

For now, the package has stalled on a vote of 56-44, not enough to clear the 60-vote hurdle needed to advance.

Coming amid the partial government shutdown, Democrats said they will block the bill until government is reopened. Senate Minority Leader Chuck Schumer opposed proceeding to the legislation. Other Democratic senators who supported the substance of the bill followed suit. Sen. Ben Cardin, D-Md., tweeted that the Senate “should not take up any bills unrelated to reopening the government” until the shutdown is resolved. [WASHPOST]

Wall Street executives are hearing from Cory Booker, Kamala Harris and other Democrats as they gauge interest in possible 2020 presidential campaigns

Wall Street executives have heard from several potential 2020 Democratic candidates for president, including Sens. Cory Booker and Kamala Harris, as recently as last month, CNBC has learned.

The revelation of communication between Wall Street donors and possible Democratic candidates threatens to exacerbate tension between the liberal wing of the party, which is increasingly outspoken against the influence of corporate money in politics, and moderates who are seen as more business-friendly. A CNBC report last week about New York Sen. Kirsten Gillibrand’s outreach to Wall Street triggered outrage on the left.

Billionaire and Blackstone Chief Operating Officer Jonathan Gray; Robert Wolf, CEO and founder of economic advisory firm 32 Advisors, and Mark Gallogly, a founder of private investment firm Centerbridge Partners, are just a few of the Democratic financiers who have spoken with 2020 hopefuls about a wide range of topics, including the upcoming campaign, according to people with direct knowledge of the matter.

Wolf, a former advisor to former President Barack Obama, including as a member of the President’s Economic Recovery Advisory Board, said he had been in touch with 2020 hopefuls — but declined to name the individual lawmakers. “I am meeting with possible candidates often but don’t want to name names until he or she announces,” Wolf said in a text message to CNBC. [CNBC]

New law excuses Brazilian Jewish students from exams, classes on Shabbat and holidays

A new law in Brazil allows Jewish and non-Jewish students to skip school exams and classes for religious reasons.

The students are permitted to be absent on any date in which, according to their religious precepts, the exercise of activities is prohibited, according to the legislation. For Jewish students, it means Shabbat and holidays such as Passover, Rosh Hashanah and Yom Kippur.

“It’s a legitimate demand from the part of the Brazilian population that keeps the Sabbath,” Fernando Lottenberg, president of the Brazilian Israelite Confederation, told JTA on Monday. “It is yet another important victory for the Jewish community and all those involved in this struggle, including the Adventists.” The Seventh-day Adventist Church, like Judaism, has Saturday as its Sabbath.

Effective in 60 days, the law was signed Thursday by Brazil’s new president, Jair Bolsonaro, a right-wing non-Jewish politician who is ardently pro-Israel and a friend of many in the Jewish community.
Absences must be requested in advance. Missed exams and classes must be provided on an alternative date or replaced by written assignments or research activities, according to the law.

In 2016, some 76,000 Sabbath-observant applicants of Brazil’s annual national high school exam were confined to classrooms between 1 p.m. to 7 p.m. on Saturday in order to start the test after sunset without the possibility of cheating. [JTA]

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Global Growth to Lose Momentum This Year, World Bank Says

The World Bank cut its forecasts for global growth in 2019 and 2020, citing a worsening set of factors from trade tensions to financial-market instability to currency challenges in a number of emerging markets.

The bank lowered its semiannual estimate of the global growth rate by 0.1 percentage point in both years, with cuts coming to the outlook for both advanced economies and emerging markets. The bank had previously expected most major economies to slow, and now expects that slowdown to be somewhat more significant.

The bank now sees global growth of 2.9% in 2019, and now says that the global economy grew by 3% in 2018; in June, it said the global economy would expand by 3.1% last year. The bank now expects the U.S. to slow to 2.5% in 2019. By 2020, growth will be 1.7%, the bank estimates, a 0.3 percentage point cut from its June forecast. [WSJ]

Stocks gain under the ‘first five days’ rule, setting up for a good 2019 performanceWhen stocks bounce at the beginning of the year, history shows the market is more often up than down at year-end. Therefore, this year’s early January performance could be a good omen.

Stocks finished Tuesday with a gain, with the S&P 500 up 2.6 percent at 2,574, in the first five days of the year. Stock Trader’s Almanac has studied the “first five days” phenomena going back to 1950 and finds that when stocks finish that period higher, the S&P 500 has been positive 82 percent of the time at year-end with an average gain of 13.3 percent.

“Positive investor and trader behavior at the beginning of the year shows that there are good economic and market readings out there,” said Jeff Hirsch, the editor-in-chief of Stock Trader’s Almanac.

A solid first five days is a good start to the month of January, which also is its own market barometer or performance predictor. A higher January should mean a higher year, and that’s the thinking behind the Wall Street saying: “So goes January, so goes the year.” [CNBC]

Renters save millions after L train shutdown scrapped

Tenants who signed leases in sweetheart deals in North Brooklyn amid the looming threat of an L train shutdown saved a staggering $26.5 million – and will come out as the “biggest winners,” thanks to Gov. Andrew Cuomo’s 11th-hour plan calling off the closure. According to newly released data from StreetEasy, there were roughly 20,000 homes for rent listed on the real estate website in the area last year.

Renters who signed leases in Bushwick, Williamsburg and Greenpoint — and would have been affected by the dreaded L train closure — saved an estimated minimum of $6.4 million “compared to what they’d have paid if there were no shutdown and rents had remained flat,” according to the report published Tuesday.

“If we assume rents in Williamsburg would have grown at the same rate as the rest of Brooklyn — 3.3 percent cumulatively since April 2016 — total renter savings rises to $26.5 million,” StreetEasy senior economist Grant Long wrote in the report. [NYP]

Irving Langer’s E&M just sold off another big Harlem portfolioLess than a month after selling a more than $250 million apartment portfolio, Irving Langer’s E&M Associates is at it again.

The company is selling 21 residential and retail buildings in Harlem to Black Spruce Management and NYC Housing Partnership for $76.25 million, according to sources familiar with the deal.

The properties span three city blocks and 215,000 square feet overall, and they are mostly located along Adam Clayton Powell Boulevard. They contain 224 residential units and 30 retail stores. E&M, one of the largest multifamily owners in the city, had bought the properties for $66.7 million in 2014 from the Denver-based real estate investment trust AIMCO.

The Real Deal reported in February that Isaac Kassirer was in contract to acquire the portfolio for $85 million, but this deal ultimately fell through. [TRD]

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