US homeland security proposes face scans for citizens

WASHINGTON - The Trump administration intends to propose a regulation next year that would require all travelers - including U.S. citizens - to be photographed when entering or leaving the United States, according to the administration's regulatory agenda.

The proposed regulation, slated to be issued in July by the Homeland Security Department, would be part of a broader system to track travelers as they enter and exit the United States.

The plan has already drawn opposition from some privacy advocates. Jay Stanley, a senior policy analyst with the American Civil Liberties Union, blasted the idea in a written statement on Monday.

"Travelers, including U.S. citizens, should not have to submit to invasive biometric scans simply as a condition of exercising their constitutional right to travel," he said.

The Trump administration contends in its regulatory agenda that the face scan requirement will combat the fraudulent use of U.S. travel documents and aid the identification of criminals and suspected terrorists.

The public typically has 30 to 60 days to comment on a proposed US regulation. The federal agency then needs to review and respond to comments, a process that can be time-consuming for major regulations.

The Trump administration also said in its regulatory agenda that it plans to issue a separate fast-track regulation this month that would allow the entry-exit project to move beyond a pilot status.

US Customs and Border Protection, which is part of DHS, has already conducted pilot programs that collect photographs and fingerprints from foreign travelers.

A 2018 internal audit found technical and operational problems during a pilot program at nine U.S. airports. The problems raised questions about whether DHS would meet a self-imposed deadline to confirm all foreign departures at the top 20 U.S. airports by fiscal year 2021.

The non-partisan Pew Research Center estimated in 2006 that 45 percent of immigrants in the United States without legal status entered on a valid visa but did not depart when it expired.

source: news.abs-cbn.com

Facing criticism over deportations, US to look again at some deferral requests

WASHINGTON - The Trump administration, facing criticism over deportations from lawmakers and civil rights groups, said on Monday it would reopen consideration of some deferral requests for compelling circumstances such as medical conditions.

In August, the US Citizenship & Immigration Services (USCIS) said it was "no longer entertaining" such requests from people outside the US military, but on Monday said it would reopen and complete cases that were pending on Aug. 7, the day the new policy took effect.

The agency said it still believed it was appropriate to hand over responsibility for such work to Immigration and Customs Enforcement (ICE), enabling its own staff to focus more efficiently on other legal immigration applications.

Nearly 130 Democratic US senators and members of Congress last week sent a letter Acting Homeland Security Secretary Kevin McAleenan and Ken Cuccinelli, director of USCIS, protesting what they called a "cruel" and "inhumane" move.

"Individuals requesting deferred action from USCIS are among the most vulnerable. Children and families submit such requests due to severe medical conditions like cancer, epilepsy, cerebral palsy, muscular dystrophy, and cystic fibrosis," the lawmakers wrote. "In many cases, the treatments are life-saving."

They said letters sent out by USCIS in early August summarily denying the requests gave people 33 days to leave the country, and said they face forcible removal and denial of future visas if they did not comply.

The decision caused fear and confusion, the lawmakers said, warning it could force people to return to countries where lack of necessary medical care threatened their lives. They asked DHS, USCIS and ICE to answer a list of 14 detailed questions about the policy shift. The agency sent out letters in early August informing those who had requested deferred action about the new policy, but providing few details on how to submit requests with ICE.

Deferred action is a discretionary determination to temporarily postpone the removal from the United States of a person who is illegally present, and occurs on a case-by-case basis, factoring in medical conditions and other circumstances.

USCIS said those denied requests that were pending on Aug. 7 did not have removal orders pending, and had not been targeted for deportation. (Reporting by Andrea Shalal; Editing by David Gregorio)

source: news.abs-cbn.com

FedEx offers cautious 2020 outlook as CEO slams US, China on trade

NEW YORK -- FedEx warned Tuesday that its fiscal 2020 earnings outlook remains clouded by trade war uncertainty as the company's chief executive criticized the Trump administration's lurch towards protectionism.

Overall the company is projecting 2020 diluted earnings-per-share to be down by a "mid-single-digit" percentage point compared with the 2019 level.

FedEx expects higher operating income in fiscal 2020 from its domestic package and freight shipping services as growing e-commerce activity fuels higher revenues.

But operating income is expected to be dented at FedEx Express, its international shipping division, in part because of trade uncertainty. 

"We've been very disappointed over the last few years with the assumptions that we made on the growth of international trade, particularly with the Trump administration," Chief Executive Fred Smith said on a conference call with financial analysts.

"The United States policy since 1934... was to expand international trade and now we have a huge dispute with China where the US has basically become protectionist, defined as 'I'll make everything I need in my own borders.'"

Smith, long an outspoken advocate of free trade, also took issue with China's policy on trade, which he described as "mercantilist."

US President Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 gathering in Japan later this week, an occasion that investors are hoping will bring the two countries closer to agreement after months of tariffs, countermeasures and threats.

Smith said the company remained committed to operating in China and "completely dedicated" to complying with Chinese laws. 

He said the company has experienced more audits "to some degree" at its Guangzhou hub in the wake of the US-China dispute.

FedEx again apologized over delivery problems involving Chinese telecommunications giant Huawei following a US crackdown on the company that Trump has linked to the US-China trade war.

Smith said the company's newly-filed lawsuit against the Commerce Department over export restrictions was not directly related to the Huawei case but was due to a broader set of government actions that are "opaque" and put too much onus on delivery companies.

On Monday, FedEx sued the US Commerce Department over export restrictions it said impose an "impossible burden" on delivery firms and asked a US District Court to block enforcement of the measures.

FedEx says the US rules makes shippers liable for packages that could violate the restrictions, even if the shipper has no prior knowledge of the problem.

FedEx reported a net loss of $2 billion for the quarter ending May 31, compared with $1.1 billion in profits in the year-ago period. 

The company cited lower international revenues and $316 million in costs associated with a voluntary employee buyouts as factors in the loss.

Revenues rose three percent overall to $17.8 billion.

Shares rose 0.7 percent to $157.05 in after-hours trading.

source: news.abs-cbn.com

CNN sues White House over revoked credentials of correspondent Reuters

WASHINGTON - CNN filed a lawsuit on Tuesday against the Trump administration over the revocation of press credentials for White House correspondent Jim Acosta, whose questions and reporting have been a frequent target of criticism by President Donald Trump.

"We have asked this court for an immediate restraining order requiring the pass be returned to Jim, and will seek permanent relief as part of this process," CNN said in a statement. "While the suit is specific to CNN and Acosta, this could have happened to anyone. If left unchallenged, the actions of the White House would create a dangerous chilling effect for any journalist who covers our elected officials."

source: news.abs-cbn.com

Global stocks mostly rise on China stimulus, earnings

NEW YORK -- Global stock markets mostly rallied on Tuesday, helped by Chinese stimulus plans and a batch of generally strong US earnings from Google parent Alphabet and others.

In Europe, London's benchmark FTSE 100 index closed 0.7 percent higher, with Frankfurt's DAX 30 climbing 1.1 percent and the Paris CAC 40 up 1 percent.

On Wall Street, both the Dow and S&P 500 finished solidly higher. But the Nasdaq ended marginally negative as an early-session rally fizzled at midday in a move analysts attributed to profit taking. 

"Stock markets are enjoying a decent move higher...receiving a dual boost in sentiment from a proposed Chinese fiscal stimulus and a better than expected set of results from Google-parent company Alphabet," said David Cheetham, chief market analyst at traders XTB.

While Alphabet suffered a dip in second-quarter profits due to a fine from the European Union, it posted a bigger-than-expected 26 percent jump in revenues to $32.7 billion in an earnings report released after Wall Street closed on Monday.

Its shares rose 3.5 percent.

"With earnings season upon us, there is a growing feeling that markets will be able to focus on a positive corporate trajectory rather than the persistent fears over the potential damage of global trade arising from further tariffs," said IG market analyst Joshua Mahony.

'TARIFFS ARE THE GREATEST'

However, tensions persist over a global trade war.

With European Commission President Jean-Claude Juncker heading to Washington on Wednesday to meet US President Donald Trump and try to avert an escalation of tit-for-tat tariffs, the US leader tweeted: "Tariffs are the greatest!"

In a separate tweet he claimed that "countries that have treated us unfairly on trade for years are all coming to Washington to negotiate."

On Tuesday, the Trump administration announced $12 billion in aid for farmers who have been the primary targets of retaliation by trading partners following Trump's moves, the first acknowledgement that Trump's controversial approach on trade is having a downside for everyday Americans.

Meanwhile, in a bid aimed at shielding China's economy -- the world's second-largest -- from a worsening trade row with Washington, Beijing on Tuesday signalled it would shift to a looser fiscal policy.

Shanghai's main stocks index jumped 1.6 percent in response, while the yuan hit a 13-month low versus the dollar.

The program also lent support to London-listed mining companies like BHP Billiton, Rio Tinto, and Glencore, all of which gained around five percent and stand to benefit from higher Chinese demand for metals.

In Europe meanwhile, shares in French car giant PSA surged 14.9 percent after the owner of Peugeot drove profits higher thanks in part to a major turnaround for its Opel-Vauxhall brand.

KEY FIGURES AT 2100 GMT (5 a.m. Tuesday in Manila)

New York - Dow: UP 0.7 percent at 25,241.94 (close)

New York - S&P 500: UP 0.5 percent at 2,820.40 (close)

New York - Nasdaq: DOWN less than 0.1 percent at 7,840.77 (close)

London - FTSE 100: UP 0.7 percent at 7,709.05 (close)

Frankfurt - DAX 30: UP 1.1 percent at 12,689.39 (close)

Paris - CAC 40: UP 1.0 percent at 5,434.19 (close)

EURO STOXX 50: UP 1.0 percent at 3,487.28 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 22,510.48 (close)

Hong Kong - Hang Seng: UP 1.4 percent at 28,662.57 (close)

Shanghai - Composite: UP 1.6 percent at 2,905.56 (close)

Euro/dollar: DOWN at $1.1682 at $1.1692 

Pound/dollar: UP at $1.3144 from $1.3101 at 2100 GMT

Dollar/yen: DOWN at 111.20 yen from 111.35 yen

Oil - Brent Crude: UP 38 cents at $73.44 per barrel

Oil - West Texas Intermediate: UP 63 cents at $68.52 per barrel

source: news.abs-cbn.com

US 'opening fire' on world with tariff threats, says China

BEIJING -- The United States is "opening fire" on the world with its threatened tariffs, China warned on Thursday, saying it would respond the instant US measures go into effect as Beijing ramped up the rhetoric in a bitter trade dispute.

The Trump administration's tariffs on $34 billion of Chinese imports are due to go into effect at 0401 GMT on Friday, which is just after midday in Beijing.

US President Donald Trump has threatened to escalate the trade conflict with tariffs on as much as $450 billion worth of Chinese goods if China retaliates, with the row roiling financial markets including stocks, currencies and the global trade of commodities from soybeans to coal.

China has said it would not "fire the first shot", but its customs agency made clear on Thursday that Chinese tariffs on US goods would take effect immediately after US duties on Chinese goods kick in.

Speaking at a weekly news conference, Commerce Ministry spokesman Gao Feng warned the proposed US tariffs would hit international supply chains, including foreign companies in the world's second-largest economy.

"If the US implements tariffs, they will actually be adding tariffs on companies from all countries, including Chinese and US companies," Gao said.

"US measures are essentially attacking global supply and value chains. To put it simply, the US is opening fire on the entire world, including itself," he said.

"China will not bow down in the face of threats and blackmail and will not falter from its determination to defend free trade and the multilateral system."

Asked whether US companies would be targeted with "qualitative measures" in China in a trade war, Gao said the government would protect the legal rights of all foreign companies in the country.

"We will continue to assess the potential impact of the US-initiated trade war on companies and will help companies mitigate possible shocks."

Gao said China's foreign trade was expected to continue on a stable path in the second half of the year, though investors fear a full-blown Sino-US trade war would deal a body blow to Chinese exports and its economy.

Foreign companies accounted for $20 billion, or 59 percent, of the $34 billion of exports from China that will be subject to new US tariffs, with US firms accounting for a significant part of that 59 percent, Gao said.

China's plans to impose tariffs on hundreds of US goods targets some top US exports, including soybeans, sorghum and cotton, threatening US farmers in states that backed Trump, such as Texas and Iowa.

Chinese buying of soybeans has ground almost to a halt ahead of the duties, while Chinese farmers worry the penalties and tighter supplies will drive up costs, squeeze margins and ultimately inflate retail prices of pork, the country's top-selling meat.

In the latest sign that the risk of penalties is hitting trade, a vessel carrying US coal and heading for China was diverted on Wednesday to Singapore.

GLOBAL RISKS

The World Trade Organization warned on Wednesday that trade barriers being erected by major economies could jeopardize the global economic recovery, with their effects already starting to show.

Adding to the tensions, a Chinese court this week temporarily barred Micron Technology Inc from selling its main semiconductor products in the world's biggest memory chip market, citing violation of patents held by Taiwan's United Microelectronics Corp (UMC).

Beijing has made the semiconductor sector a key priority under its "Made in China 2025" strategy, which has shifted up a gear after a US ban on sales to Chinese phone maker ZTE Corp underscored China's lack of domestic chips.

Chinese stocks slipped on Thursday and the yuan gave back some of its recent gains against the dollar as a targeted cut of reserve requirements for banks took effect amid the heightened trade tensions.

China's central bank moved to calm jittery markets on Tuesday after the yuan hit its lowest level in almost a year.

A trade war with the United States could hit China's export machine. Second-quarter economic growth is expected to have slowed slightly, a Reuters poll showed, as Beijing seeks to mitigate the impact from a de-risking drive and the trade dispute with the United States.

CHINA MEDIA LAMBASTES US

On Thursday, China's state media continued to lambaste the United States.

The widely read Global Times tabloid said in an editorial that China must prepare for containment by the United States.

"With strong manufacturing capability and huge market potential, China's development is difficult to suppress. But the country will encounter more barriers in future development, to which we should learn to adapt," it said.

"While the Trump administration is anxious about gains and losses, Chinese people have unfaltering confidence in China's future."

Both Chinese and US business sources in China said there appeared to be little hope that the tariffs could be averted.

"I'm afraid not, for now," said Tu Xinquan, a trade expert at Beijing's University of International Business and Economics, who has advised the Chinese government.

A US industry source said: "There is a 99 percent chance that tariffs go into force on Friday."

"Frankly, I don't know what action China could take at the moment that would allow the US to not impose tariffs," the US source said, adding that there was no evidence the 2 governments had any substantive engagement at the moment that could lead to the shelving of duties.

A senior Western diplomat told Reuters that there was no sign of any talks at the moment between the two countries, even via back channels.

The industry source said China had been unable to address the Trump administration's concerns about Chinese trade policies in at least 5 key areas, including forced technology transfers, Chinese industrial overcapacity, government subsidies, SOE reform, and Beijing's restrictions in the cloud computing industry.

source: news.abs-cbn.com

Global political tensions flatten yields, roil stocks

NEW YORK - Simmering political tensions roiled stocks and bonds across the globe on Wednesday, with US yield curves continuing to flatten and stock markets closing in the red as industrial companies took a beating.

Despite strong economic data out of China and the United States this week, markets struggled to shake a hangover from news that US President Donald Trump was looking to impose tariffs on up to $60 billion of Chinese imports.

On Wednesday, a White House spokeswoman said the Trump administration is pressing China to cut its trade surplus with the United States by $100 billion.

Trump also spooked investors on Tuesday by firing Secretary of State Rex Tillerson, who was viewed as a supporter of free trade.

"There's trade war talk going on," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "We saw people taking profit amidst the uncertainty."

The Dow Jones Industrial Average fell 248.91 points, or 1 percent, to end at 24,758.12, the S&P 500 lost 15.83 points, or 0.57 percent, to 2,749.48 and the Nasdaq Composite dropped 14.20 points, or 0.19 percent, to 7,496.81.

Additionally on Wednesday, the Russian Foreign Ministry said it would retaliate after 23 of its diplomats were expelled by British Prime Minister Theresa May over a chemical attack on a former Russian double agent in England that May blamed on Moscow.

That helped continue a trend of flattening yield curves on US government bonds, with the spread between two- and 10-year Treasury yields down 3.2 basis points to 55.3 basis points.

The spread between five- and 30-year yields was down 3.8 basis points to 44.4 basis points.

Benchmark 10-year U.S. Treasury notes last rose 9/32 in price to yield 2.817 percent, from 2.848 percent late on Tuesday.

The 30-year bond last rose 28/32 in price to yield 3.056 percent, from 3.101 percent Tuesday.

Germany's 10-year government bond yield fell to a 1-1/2-month low on the trade war fears, while Italian borrowing costs rose after right-wing leader and aspiring prime minister Matteo Salvini reiterated his party's view that the euro was a flawed currency.

Salvini also said he was open to forming any sort of coalition government as long as it did not include the Democratic Party.

His comments, along with the ongoing trade war concerns, sent European stocks slightly into the red despite a banner day for Adidas and a strong showing for mining stocks.

Adidas, the German sports fashion company, gained more than 11 percent on Wednesday after announcing a share buyback of up to 3 billion euros.

Yet the pan-European FTSEurofirst 300 index lost 0.14 percent and MSCI's gauge of stocks across the globe shed 0.46 percent.

Wall Street's losses were driven largely by plunges at industrial companies like Boeing, which tumbled 2.5 percent, leading losers on the Dow.

That was despite encouraging economic news that had spurred the US indexes to open higher on Wednesday morning.

China reported industrial output expanding at a surprisingly faster pace at the start of the year. Fixed asset investment also beat forecasts, while retail sales improved.

Political uncertainty outweighed that, said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "Given the rearrangement that has made to his cabinet ... it's being read as a lot more protectionist now than it was two weeks ago."

Emerging market stocks, meanwhile, lost 0.42 percent.

Oil prices were choppy, up slightly in the afternoon after losing ground through the morning.

US crude rose 0.35 percent to $60.92 per barrel and Brent was last at $64.84, up 0.31 percent.

The dollar index rose 0.1 percent, with the euro down 0.18 percent to $1.2367.

source: news.abs-cbn.com

Trump administration orders purge of Kaspersky products

WASHINGTON - The Trump administration on Wednesday told U.S. government agencies to remove Kaspersky Lab products from their information systems, saying it was concerned the Moscow-based cyber security firm was vulnerable to Kremlin influence.

The decision represents a sharp response to what U.S. intelligence agencies have described as a national security threat posed by Russia in cyberspace, following an election year marred by allegations that Moscow weaponized the internet in an attempt to influence its outcome.

In a statement, Kaspersky Lab rejected the allegations, as it has done repeatedly in recent months, and said its critics were misinterpreting Russian data-sharing laws that only applied to communications services.

“No credible evidence has been presented publicly by anyone or any organization as the accusations are based on false allegations and inaccurate assumptions,” the company said.

The Department of Homeland Security issued a directive to federal agencies ordering them to identify Kaspersky products on their information systems within 30 days and begin to discontinue their use within 90 days.

“The Department is concerned about the ties between certain Kaspersky officials and Russian intelligence and other government agencies, and requirements under Russian law that allow Russian intelligence agencies to request or compel assistance from Kaspersky and to intercept communications transiting Russian networks,” the agency said in a statement.

The department said it would provide Kaspersky with the opportunity to submit a written response to address the allegations. The agency said other entities claiming commercial interests affected by the directive could also submit information

Kaspersky Lab has repeatedly denied that it has ties to any government and said it would not help a government with cyber espionage.

However, the company has not been able to shake off the allegations. Last week, Best Buy Co (BBY.N), the No.1 U.S. electronics retailer, said it was pulling Kaspersky Lab’s cyber security products from its shelves and website.

Rob Joyce, the White House cyber security coordinator, said Wednesday at the Billington CyberSecurity Summit that the Trump administration made a “risk-based decision” to order Kaspersky Lab’s products removed from federal agencies.

Asked by Reuters whether there was a smoking gun showing Kaspersky Lab had provided intelligence to the Russian government, Joyce replied: ”As we evaluated the technology, we decided it was a risk we couldn’t accept.”

Some cyber security experts have warned that blacklisting Kaspersky Lab could prompt a retaliation from Russian President Vladimir Putin. Joyce said those concerns were a factor but that a “tough decision” ultimately had to be made to protect government systems.

The direct financial impact of the decision will likely be minimal for Kaspersky Lab, one of the world’s leading antivirus software companies, which was founded in 1997 and now counts over 400 million global customers.

Federal contracting databases reviewed by Reuters show only a few hundred thousand dollars in purchases from Kaspersky, and an employee told Reuters in July the company’s federal government revenue was “miniscule.”

But Kaspersky also sells to federal contractors and third-party software companies that incorporate its technology in their products, so its technology may be more widely used in government than it appears from the contracting databases, U.S. officials say.

The decision by the Trump administration came as the U.S. Senate was planning to vote as soon as this week on a defense policy spending bill that includes language that would ban Kaspersky Lab products from being used by U.S. government agencies.

Democratic Senator Jeanne Shaheen, who had led efforts in Congress to crack down on Kaspersky Lab, applauded the Trump administration’s announcement.

“The strong ties between Kaspersky Lab and the Kremlin are alarming and well-documented,” Shaheen said, adding that she expected Congress to act soon to reinforce the decision by passing legislation.

Eugene Kaspersky, the company’s co-founder and chief executive, attended a KGB school, and the company has acknowledged doing work for the Russian intelligence agency known as the FSB. But he has adamantly denied charges his company conducts espionage on behalf of the Russian government.

source: news.abs-cbn.com

DACA scrapping affects 5,000 Filipino 'dreamers' in U.S.

The legal fight has begun for the Deferred Action for Childhood Arrivals with more than a dozen states suing the Trump administration over its decision to end the Obama-era immigration policy. As Annalisa Burgos tells us, it's a battle that may decide the fate of hundreds of thousands of young immigrants, including Filipinos. – The World Tonight, ANC, September 7, 2017

source: news.abs-cbn.com

China says weapons won't stop unification with Taiwan

BEIJING - China's Defense Ministry said on Thursday it was futile for Taiwan to think it could use arms to prevent unification, as the self-ruled democratic island looks to fresh arms sales by the United States amid what it sees as a growing Chinese threat.

China has never renounced the use of force to bring under its control what it deems a wayward province, and Taiwan's defence ministry says China has more than 1,000 missiles directed at the island.

The Trump administration is crafting a big new arms package for Taiwan that could include advanced rocket systems and anti-ship missiles to defend against China, U.S. officials said earlier this month, a deal sure to anger Beijing.

China is deeply suspicious of Taiwan President Tsai Ing-wen, believing she wants to push the island towards formal independence, a red line for China. She says she wants to maintain peace with China.

"Separatist Taiwan independence forces and their activities are the greatest threat to peace and stability in the Taiwan Strait," Chinese Defence Ministry spokesman Wu Qian told a monthly news briefing.

"It is futile to 'use weapons to refuse unification', and is doomed to have no way out," he added, without elaborating.

Defeated Nationalist forces fled to Taiwan after losing a civil war to the Communists in 1949.

Proudly democratic Taiwan has shown no interest in being ruled by autocratic China.

(Reporting by Ben Blanchard; Editing by Clarence Fernandez)

source: news.abs-cbn.com

James Mattis sworn in as Trump's defense secretary

WASHINGTON, United States – Retired Marine general James Mattis was sworn in Friday as US defense secretary, praising intelligence agencies and calling for stronger ties with allies in a break from positions taken by President Donald Trump.

Mattis was confirmed by a 98-1 vote earlier Friday in the first action taken by US senators after Trump took the oath of office, and was sworn in by Vice President Mike Pence.

"Together with the intelligence community we are the sentinels and guardians of our nation," Mattis said in a statement to the Department of Defense -- tipping his cap to the agencies that Trump has sharply criticized as they investigate claims of Russian interference in the US election.

"Every action we take will be designed to ensure our military is ready to fight today and in the future."

"Recognizing that no nation is secure without friends, we will work with the State Department to strengthen our alliances," he said, a contrast to Trump's recent branding of the NATO military alliance as "obsolete."

Lawmakers passed a special waiver allowing Mattis, who retired in 2013, to serve before a customary seven-year limit on former military personnel assuming the Pentagon's top post.

John Kelly, another retired Marine general, was also confirmed and sworn in to head the Department of Homeland Security.

"These uniquely qualified leaders will immediately begin the important work of rebuilding our military, defending our nation and securing our borders," Trump said in a statement.

"I am proud to have these two American heroes join my administration."

Mattis has won accolades from both parties and many in the armed forces, and his path to Trump's cabinet was relatively uncontroversial compared to that of other nominees.

A cornerstone of US democracy is that civilians, not people in uniform, control the military, and the commander-in-chief is the president.

Some in Congress initially raised eyebrows because Mattis, a 66-year-old Washington state native, had only retired from active duty in 2013.

The waiver allowing him to take the top Pentagon post was only granted once before, for the famous World War II general George Marshall who served under President Harry Truman from 1950-1951.

Mattis is known as a colorful commander and famed for his pugnacious aphorisms. The media dubbed him "Mad Dog" for his battle-hardened swagger and the sort of blunt language Marines are famous for.

He has been quoted as saying, "Be polite, be professional, but have a plan to kill everyone you meet."

But Mattis also has a well-known cerebral side: he issued reading lists to Marines under his command, and instructed them that the most important territory on a battlefield is the space "between your ears."

While Mattis sailed through his confirmation, Democratic lawmakers are putting up stiff resistance to other Trump cabinet picks, including nominees to head the departments of education and health and human services.

Mattis replaces Ashton Carter, a longtime Pentagon bureaucratic warrior who served as former president Barack Obama's fourth defense secretary.

source: news.abs-cbn.com

Dollar resumes ascent, Asia keeps wary eye on yuan

SYDNEY - The US dollar held on to broad gains on Tuesday, resuming its ascent after last week's brief wobble as the prospect of rising US interest rates this year kept sentiment bullish on the long-run.

A holiday in Japan made for quiet early trade, leaving the dollar steady at 117.36 yen but well up on Friday's trough of 116.05.

Against a basket of currencies, the dollar was firm at 102.800 having climbed 0.6 percent overnight.

The euro was sulking at $1.0461 despite strong manufacturing data for the currency bloc, having surrendered all of Friday's brief spike to $1.0700.

A dearth of liquidity was largely behind the wild swings, though the market is now so long dollars that it is vulnerable to sudden corrections.

Data released on Friday showed speculators increasing their bets on the dollar in the week up to last Tuesday after cutting positions for the first time since October in the previous week.

The greenback had soared to 14-year highs in December on speculation the US Federal Reserve will hike rates as many as three times this year, and that President-elect Donald Trump will stoke growth and inflation with debt-funded tax cuts.

Treasury yields have jumped in anticipation while central banks in the euro zone and Japan are still working to keep their short-term yields deep in negative territory.

As a result, US two-year debt pays 200 basis points more than German debt and 138 basis points more than Japanese paper.

"Following a period of consolidation between now and late January, we believe the USD will put on another 10 percent of gains over the next eighteen months," said Richard Grace, chief currency strategist at CBA.

Grace argued Trump's proposed plans for a US company tax cut could be particularly bullish for the dollar since it would likely encourage a wave of repatriation by domestic firms and demand for US equities by foreign investors.

"We anticipate some twelve-to-eighteen months of USD strength, beginning when the Trump Administration gets its tax cuts through the Congress," he added, citing late March as likely timing for passage.

Dealers are also keeping a wary eye on the yuan as annual quotas covering how much foreign currency Chinese individuals can buy are reset this week.


China's foreign exchange regulator said on Saturday that the $50,000 annual individual quota will remain unchanged, but some banks have told customers that purchases of foreign currency for buying property, securities and life insurance were not allowed.

The new rules on overseas currency transfers are not capital controls, the official Xinhua news agency reported,

There has been talk investors could rush to sell the yuan fearing further depreciation in the currency, forcing the country's central bank to run down its reserves to head off a self-fulfilling spiral.

Some in the market have hedged that risk by shorting the Australian dollar, typically used as a liquid proxy for the yuan. The Aussie was stuck at $0.7179 on Tuesday, just above the recent seven-month trough of $0.7160.

source: news.abs-cbn.com

Asia flat following weaker Wall Street as Treasury yields rise

SINGAPORE - Asian shares were flat in early trade on Friday following mostly sluggish sessions on Wall Street and Europe, as 10-year US Treasury yields surged to near 18-month highs and crude futures soared to 16-month highs.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed, but remained on track to end the week up 0.6 percent.

Japan's Nikkei, which jumped to an 11-month high on Thursday, slipped 0.6 percent early on Friday as the yen strengthened. It is set for a weekly gain of 0.1 percent.

Yields on 10-year US Treasuries touched 2.492 percent on Thursday, the highest since June 2015, after data showed factory activity accelerating in November and construction spending at a seven-month high in October.

The strong data boosted the case for higher interest rates, expectations for which have already jumped on promises of fiscal stimulus from the incoming Trump administration and rising oil prices, both potential contributors to inflation.

Investors are now looking to November's employment report due later in the session for further evidence of improvement in the economy.

Global benchmark Brent futures jumped to a 16-month high of $54.53 a barrel on Thursday after the Organization of Petroleum Exporting Countries agreed its first output cuts since 2008. Russia also agreed to join output cuts for the first time in 15 years.

US crude, which climbed 13 percent on Wednesday and Thursday combined, extended the gains to Friday, climbing 0.2 percent to $51.17. It is on track for an increase of 11.1 percent this week.

"Support for energy stocks may carry through today as oil prices continue to rise in response to OPEC's production agreement," Ric Spooner, chief market analyst at CMC Markets in Sydney, wrote in a note.

While the increase in risk appetite helped lift the Dow Jones Industrial Average to a record closing high, the S&P 500 and the Nasdaq ended the day with losses as expensive technology stocks pulled back.

Earlier, European markets also had a lackluster session, with the STOXX 600 down 0.3 percent at the close after pulling back from the previous session's three-week high.

Investors remained nervous ahead of a constitutional referendum in Italy and a presidential election in Austria this weekend.

"A weak lead from US markets, Italy's referendum and tonight's release of U.S. jobs data all provide reasons for the stock market to close the week in cautious, wait-and-see mode," Spooner said.

The dollar, which hit the highest level since February versus the yen earlier on Thursday, retreated after weekly jobless claims, which hit a 43-year low in mid-November, rose to its highest level in five months last week.

Despite the increase, claims remained below the 300,000 threshold, which is associated with a healthy labor market, for the 91st straight week, and layoffs fell 12 percent during the month.

The dollar closed down 0.3 percent on Thursday and was trading 0.1 percent lower at 113.78 yen early on Friday, but remains on track for a weekly gain of 0.5 percent.

The dollar index, which tracks the greenback against a basket of six major global peers, also slipped 0.1 percent on Friday, extending losses for the week to 0.6 percent.

The British pound touched a near-two-month high versus the dollar on Thursday after Brexit minister David Davis said Britain would consider paying into the European Union budget for market access.

Sterling was steady at $1.2585 in early Asian trade on Friday.

The euro also strengthened on Thursday, rising 0.7 percent, and was steady at $1.06640 on Friday.

source: news.abs-cbn.com