China on Monday renewed its call for the United States and South Korea to suspend joint military drills as the two nations began annual war games that have infuriated nuclear-armed Pyongyang.

&quot;The current situation on the Korean peninsula is highly sensitive and fragile, which requires the directly concerned parties including South Korea and US to make joint efforts to ease the tensions,&quot; Chinese foreign ministry spokeswoman Hua Chunying said.&nbsp;

Beijing has pleaded for a resumption of long-dormant six-nation talks to peacefully resolve the nuclear crisis.

But its proposal for North Korea to suspend its arms programmes in return for the United States to halt military drills in the region has been ignored.

&quot;We don&#39;t think the joint exercise will be conducive to easing the current tensions. And we urge relevant parties to (seriously consider) the suspension-for-suspension proposal,&quot; Hua told a regular press briefing.&nbsp;

Tens of thousands of South Korean and US troops are taking part in the &quot;Ulchi Freedom Guardian&quot; joint military drills, a largely computer-simulated exercise that runs for two weeks in the South.

Around 17,500 US troops will participate in the drills, a cutback from last year.

When asked to comment on the troop cutback, Hua only said that China has &quot;noted the reduction of the US forces&quot;, but reiterated that military exercises would not help to reduce tensions.&nbsp;

The annual drills are viewed by Pyongyang as a highly provocative rehearsal for invasion, and it always meets them with threats of strong military counteraction.

Only weeks ago it said it was considering firing a salvo of missiles towards the US Pacific territory of Guam.

Pyongyang tested two intercontinental ballistic missiles (ICBM) last month that appeared to bring much of the US within range.

That sparked a grim warning by President Donald Trump that Washington could rain &quot;fire and fury&quot; on the North.

Leader Kim Jong-Un last week delayed the Guam strike plan, but warned it could go ahead depending on Washington&#39;s next move.

Beijing has pleaded for a resumption of long-dormant six-nation talks to peacefully resolve the nuclear crisis

China on Monday renewed its call for the United States and South Korea to suspend joint military drills as the two nations began annual war games that have infuriated nuclear-armed Pyongyang. "The current situation on the Korean peninsula is highly sensitive and fragile, which requires the directly concerned parties including South Korea and US to make joint efforts to ease the tensions," Chinese foreign ministry spokeswoman Hua Chunying said. Beijing has pleaded for a resumption of long-dormant six-nation talks to peacefully resolve the nuclear crisis. But its proposal for North Korea to suspend its arms programmes in return for the United States to halt military drills in the region has been ignored. "We don't think the joint exercise will be conducive to easing the current tensions. And we urge relevant parties to (seriously consider) the suspension-for-suspension proposal," Hua told a regular press briefing. Tens of thousands of South Korean and US troops are taking part in the "Ulchi Freedom Guardian" joint military drills, a largely computer-simulated exercise that runs for two weeks in the South. Around 17,500 US troops will participate in the drills, a cutback from last year. When asked to comment on the troop cutback, Hua only said that China has "noted the reduction of the US forces", but reiterated that military exercises would not help to reduce tensions. The annual drills are viewed by Pyongyang as a highly provocative rehearsal for invasion, and it always meets them with threats of strong military counteraction. Only weeks ago it said it was considering firing a salvo of missiles towards the US Pacific territory of Guam. Pyongyang tested two intercontinental ballistic missiles (ICBM) last month that appeared to bring much of the US within range. That sparked a grim warning by President Donald Trump that Washington could rain "fire and fury" on the North. Leader Kim Jong-Un last week delayed the Guam strike plan, but warned it could go ahead depending on Washington's next move.

US-South Korea military drills not conducive towards easing tensions: China

The United States said on Monday it was sharply scaling back its visa services in Russia after Moscow cut the number of its diplomatic staff in retaliation over new US sanctions.

The US embassy in Russia said in a statement it was suspending all nonimmigrant visa operations across Russia on Aug. 23 and that they would resume on Sept. 1 &quot;on a greatly reduced scale.&quot;

The move means Russian citizens wanting to visit the United States for tourism will have to travel to Moscow and will no longer be able to&nbsp;use local US consulates outside the Russian capital.

Russian President Vladimir Putin, reacting to new sanctions imposed by the US Congress, has ordered Washington to cut its diplomatic and technical staff in Russia by 755 people by Sept. 1.

Meanwhile, Russian Foreign Minister Sergei Lavrov said on Monday that a US decision to sharply scale back its visa services in Russia was an attempt to stir up ill-feeling among ordinary Russians against the authorities.

He added that Russia would carefully study the US decision and promised that Moscow would not take out its anger on ordinary US citizens.

US took the move after Moscow cut the number of its diplomatic staff in retaliation over new US sanctions

The United States said on Monday it was sharply scaling back its visa services in Russia after Moscow cut the number of its diplomatic staff in retaliation over new US sanctions. The US embassy in Russia said in a statement it was suspending all nonimmigrant visa operations across Russia on Aug. 23 and that they would resume on Sept. 1 "on a greatly reduced scale." The move means Russian citizens wanting to visit the United States for tourism will have to travel to Moscow and will no longer be able to use local US consulates outside the Russian capital. Russian President Vladimir Putin, reacting to new sanctions imposed by the US Congress, has ordered Washington to cut its diplomatic and technical staff in Russia by 755 people by Sept. 1. Meanwhile, Russian Foreign Minister Sergei Lavrov said on Monday that a US decision to sharply scale back its visa services in Russia was an attempt to stir up ill-feeling among ordinary Russians against the authorities. He added that Russia would carefully study the US decision and promised that Moscow would not take out its anger on ordinary US citizens.

US scales back visa services in Russia after diplomatic row

As communities across the United States redouble efforts to remove Confederate monuments from public spaces after a far-right rally in Virginia turned deadly, city leaders now face another conundrum: what to do with the statues.

President Donald&nbsp;Trump&nbsp;described them on Thursday as &quot;beautiful statues and monuments,&quot; part of the history and culture of the country that will be &quot;greatly missed.&quot;

But they are seen by many Americans as symbols of racism and glorifications of the Confederate defense of slavery in the Civil War, fueling the debate over race and politics in America.

Cities are speeding up their removal since Saturday&#39;s rally in Charlottesville, Virginia, where a suspected white supremacist crashed a car into a crowd, killing one woman, during protests against the removal of a statue of Robert E. Lee, who headed the Confederate army in the American Civil War.

Since Monday, officials in Baltimore and Gainesville, Florida, have taken down statues while another was torn from its plinth by protesters in Durham, North Carolina. Calls for more to be removed have grown louder.

This has created an additional headache for cities and spurred another debate: how to dispose of the statues once they are taken down.

Some have suggested museums, others putting them in Confederate cemeteries and one city councilman proposed using their metal to make likenesses of civil rights leaders.

&quot;Melting them down and using the materials to make monuments for Frederick Douglass, Thurgood Marshall, Harriet Tubman would be powerful!&quot; Baltimore city councilman Brandon Scott wrote on Twitter this week. The mayor&#39;s office said that was unlikely.

Unlike eastern Europe

The debate contrasts sharply with how Eastern Europe handled thousands of statues following the collapse of Communism in the late 1980s and early 1990s. Often pulled down by angry mobs, some of the statues ended up in dumpsters and others in museums to teach people the evils of totalitarian regimes. In Budapest, a for-profit park hosts about 40 statues of communist heroes such as Karl Marx.

In the US South, the debate still rages between those nostalgic for the past and those who view the monuments as painful reminders of slavery.

There are more than 700 Confederate statues in the United States according to the Southern Poverty Law Center, most of them created in the 1910s and 1920s, decades after the Civil War ended. They were intended to reassert the power of white people, said Jonathan Leib, Chair of Political Science and Geography at Old Dominion University in Virginia.

&quot;They&#39;re visible, tangible expressions of power,&quot; he said on Thursday.

In Birmingham, Alabama, Mayor William Bell ordered workers to hide a Confederate statue behind plywood boards, while the city challenges a state law banning the removal of such monuments.

&quot;They represent acts of sedition against the United States of America and treason against the United State of America,&quot; he told Reuters on Wednesday.

But sympathies persist, as both lawmakers and citizens resist plans to remove them.

&quot;I absolutely disagree with this sanitization of history,&quot; Kentucky Governor Matt Bevin, a Republican, told WVHU radio on Tuesday.

Proper context

For now, many of the removed statues gather dust in warehouses or, as in the case of New Orleans, sit disassembled in a city scrap yard, where two were found by local reporters.

In Baltimore, statues are now in storage, according to the mayor&#39;s spokesman Anthony McCarthy, who said they will likely end up in a Confederate cemetery or a museum.

Many&nbsp;city legislators have expressed&nbsp;interest in&nbsp;relocating&nbsp;statues to museums, where they might be viewed as historical artifacts and not rallying points for racism.

Anna Lopez Brosche, city council president in Jacksonville, Florida, encouraged the removal of Confederate statues from public property&nbsp;on Monday&nbsp;and proposed placing them where they will be &quot;historically contextualized.&quot;

In Lexington, Kentucky, Mayor Jim Gray has proposed removing statues from one city park, formerly the site of a slave auction block and whipping post.

Meanwhile, a statue removed in Gainesville, Florida,&nbsp;on Monday&nbsp;is being returned to a local chapter of the United Daughters of the Confederacy, which erected it in 1904.&nbsp;

The group, founded in 1894 by women descended from Confederate soldiers, put up many of the statues as part of their goal to display what they call &quot;a truthful history&quot; of the Civil War and mark places &quot;made historic by Confederate valor.&quot;

Some historians argue that, as in Eastern Europe, the Confederate monuments should be preserved, but in the proper context.

&quot;A slave whipping post isn&#39;t something we want up, just out in public without interpretation,&quot; said W. Fitzhugh Brundage, American History professor at the University of North Carolina.

&quot;But on the other hand, if you have it in the Smithsonian where people can see it and it can be properly interpreted, it&#39;s a valuable teaching tool.&quot;

Since Monday, officials in Baltimore and Gainesville, Florida, have taken down statues while another was torn from its plinth by protesters in Durham, North Carolina. Calls for more to be removed have grown louder

As communities across the United States redouble efforts to remove Confederate monuments from public spaces after a far-right rally in Virginia turned deadly, city leaders now face another conundrum: what to do with the statues. President Donald Trump described them on Thursday as "beautiful statues and monuments," part of the history and culture of the country that will be "greatly missed." But they are seen by many Americans as symbols of racism and glorifications of the Confederate defense of slavery in the Civil War, fueling the debate over race and politics in America. Cities are speeding up their removal since Saturday's rally in Charlottesville, Virginia, where a suspected white supremacist crashed a car into a crowd, killing one woman, during protests against the removal of a statue of Robert E. Lee, who headed the Confederate army in the American Civil War. Since Monday, officials in Baltimore and Gainesville, Florida, have taken down statues while another was torn from its plinth by protesters in Durham, North Carolina. Calls for more to be removed have grown louder. This has created an additional headache for cities and spurred another debate: how to dispose of the statues once they are taken down. Some have suggested museums, others putting them in Confederate cemeteries and one city councilman proposed using their metal to make likenesses of civil rights leaders. "Melting them down and using the materials to make monuments for Frederick Douglass, Thurgood Marshall, Harriet Tubman would be powerful!" Baltimore city councilman Brandon Scott wrote on Twitter this week. The mayor's office said that was unlikely. Unlike eastern Europe The debate contrasts sharply with how Eastern Europe handled thousands of statues following the collapse of Communism in the late 1980s and early 1990s. Often pulled down by angry mobs, some of the statues ended up in dumpsters and others in museums to teach people the evils of totalitarian regimes. In Budapest, a for-profit park hosts about 40 statues of communist heroes such as Karl Marx. In the US South, the debate still rages between those nostalgic for the past and those who view the monuments as painful reminders of slavery. There are more than 700 Confederate statues in the United States according to the Southern Poverty Law Center, most of them created in the 1910s and 1920s, decades after the Civil War ended. They were intended to reassert the power of white people, said Jonathan Leib, Chair of Political Science and Geography at Old Dominion University in Virginia. "They're visible, tangible expressions of power," he said on Thursday. In Birmingham, Alabama, Mayor William Bell ordered workers to hide a Confederate statue behind plywood boards, while the city challenges a state law banning the removal of such monuments. "They represent acts of sedition against the United States of America and treason against the United State of America," he told Reuters on Wednesday. But sympathies persist, as both lawmakers and citizens resist plans to remove them. "I absolutely disagree with this sanitization of history," Kentucky Governor Matt Bevin, a Republican, told WVHU radio on Tuesday. Proper context For now, many of the removed statues gather dust in warehouses or, as in the case of New Orleans, sit disassembled in a city scrap yard, where two were found by local reporters. In Baltimore, statues are now in storage, according to the mayor's spokesman Anthony McCarthy, who said they will likely end up in a Confederate cemetery or a museum. Many city legislators have expressed interest in relocating statues to museums, where they might be viewed as historical artifacts and not rallying points for racism. Anna Lopez Brosche, city council president in Jacksonville, Florida, encouraged the removal of Confederate statues from public property on Monday and proposed placing them where they will be "historically contextualized." In Lexington, Kentucky, Mayor Jim Gray has proposed removing statues from one city park, formerly the site of a slave auction block and whipping post. Meanwhile, a statue removed in Gainesville, Florida, on Monday is being returned to a local chapter of the United Daughters of the Confederacy, which erected it in 1904. The group, founded in 1894 by women descended from Confederate soldiers, put up many of the statues as part of their goal to display what they call "a truthful history" of the Civil War and mark places "made historic by Confederate valor." Some historians argue that, as in Eastern Europe, the Confederate monuments should be preserved, but in the proper context. "A slave whipping post isn't something we want up, just out in public without interpretation," said W. Fitzhugh Brundage, American History professor at the University of North Carolina. "But on the other hand, if you have it in the Smithsonian where people can see it and it can be properly interpreted, it's a valuable teaching tool."

US cities wrestle with Confederate statues' fate

Former world number one golfer Tiger Woods had five different drugs in his system when he was arrested on suspicion of driving under the influence in May, according to an ESPN report on Monday.

ESPN, which cited a copy of the toxicology report, said Woods had Hydrocodone, the generic form of a painkiller branded as Vicodin; Hydromorphone, a painkiller known as Dilaudid; Alprazolam, a mood and sleep drug known as Xanax; Zolpidem, a sleep drug known as Ambien; and Delta-9 carboxy THC, the active ingredient in marijuana, in his system.

It is not known if Woods had prescriptions for all of the medications. Medical marijuana is legal in Florida.

Woods, who is second on the all-time list with 14 major titles, checked into a clinic in June for treatment to help deal with prescription drugs.

He said last month he had completed treatment.

&quot;As I previously said, I received professional help to manage my medications,&quot; Woods said in a statement.

&quot;Recently, I had been trying on my own to treat my back pain and a sleep disorder, including insomnia, but I realise now it was a mistake to do this without medical assistance.

&quot;I am continuing to work with my doctors, and they feel I&#39;ve made significant progress. I remain grateful for the amazing support that I continue to receive and for the family and friends that are assisting me.&quot;

Police found Woods stopped on the side of a Palm Beach-area road in his Mercedes-Benz at about 3 a.m. (0700 GMT) on May 29.

He had &quot;extremely slow and slurred speech&quot; after being awakened by a police officer but was cooperative and told officers he takes several prescriptions, including Xanax, according to a police report.

Woods, who had been heading away from his home, could not remember where he was going and told police he was returning from Los Angeles.

A blood test showed he had the painkiller Vicodin and the antidepressant Xanax in his system but no alcohol. He was charged with driving under the influence and improperly stopping his vehicle.

In a statement after his arrest, Woods apologised to fans and blamed the incident on prescription medication he was taking to manage pain from a recent back surgery.

In a statement after his arrest, Woods apologised to fans and blamed the incident on prescription medication he was taking to manage pain from a recent back surgery

Former world number one golfer Tiger Woods had five different drugs in his system when he was arrested on suspicion of driving under the influence in May, according to an ESPN report on Monday. ESPN, which cited a copy of the toxicology report, said Woods had Hydrocodone, the generic form of a painkiller branded as Vicodin; Hydromorphone, a painkiller known as Dilaudid; Alprazolam, a mood and sleep drug known as Xanax; Zolpidem, a sleep drug known as Ambien; and Delta-9 carboxy THC, the active ingredient in marijuana, in his system. It is not known if Woods had prescriptions for all of the medications. Medical marijuana is legal in Florida. Woods, who is second on the all-time list with 14 major titles, checked into a clinic in June for treatment to help deal with prescription drugs. He said last month he had completed treatment. "As I previously said, I received professional help to manage my medications," Woods said in a statement. "Recently, I had been trying on my own to treat my back pain and a sleep disorder, including insomnia, but I realise now it was a mistake to do this without medical assistance. "I am continuing to work with my doctors, and they feel I've made significant progress. I remain grateful for the amazing support that I continue to receive and for the family and friends that are assisting me." Police found Woods stopped on the side of a Palm Beach-area road in his Mercedes-Benz at about 3 a.m. (0700 GMT) on May 29. He had "extremely slow and slurred speech" after being awakened by a police officer but was cooperative and told officers he takes several prescriptions, including Xanax, according to a police report. Woods, who had been heading away from his home, could not remember where he was going and told police he was returning from Los Angeles. A blood test showed he had the painkiller Vicodin and the antidepressant Xanax in his system but no alcohol. He was charged with driving under the influence and improperly stopping his vehicle. In a statement after his arrest, Woods apologised to fans and blamed the incident on prescription medication he was taking to manage pain from a recent back surgery.

Woods had five drugs in system at time of DUI arrest: Report

The Japanese Self Defence Force (JSDF) and Third Division US Marines, took part in a live-fire joint exercise on Wednesday (Aug 16) in the northern Japanese city of Eniwa, Hokkaido, as part of Northern Viper 17-- the largest-scale military drill to be held between the two countries.

The exercise was also the first to be held in Hokkaido, as an effort to strengthen the US-Japan alliance by training together on unfamiliar ground.

Although the drills are not related to the latest tension on the Korean peninsula, it is taking place as unease between North Korea and the US are escalating and with US troops based in Okinawa, where the bulk of US forces in the region are based.

The 18-day live fire exercise which include rocket artillery drills and live-fire operations, will run through August 28 and will involve 3,500 troops.

Although the drills are not related to the latest tension on the Korean peninsula, it is taking place as unease between North Korea and the US are escalating

The Japanese Self Defence Force (JSDF) and Third Division US Marines, took part in a live-fire joint exercise on Wednesday (Aug 16) in the northern Japanese city of Eniwa, Hokkaido, as part of Northern Viper 17-- the largest-scale military drill to be held between the two countries. The exercise was also the first to be held in Hokkaido, as an effort to strengthen the US-Japan alliance by training together on unfamiliar ground. Although the drills are not related to the latest tension on the Korean peninsula, it is taking place as unease between North Korea and the US are escalating and with US troops based in Okinawa, where the bulk of US forces in the region are based. The 18-day live fire exercise which include rocket artillery drills and live-fire operations, will run through August 28 and will involve 3,500 troops.

US, Japan conduct joint military drill in Hokkaido

The United States said on Friday that it wants India and China to have a dialogue over the Dokalam stand-off.&nbsp;

&quot;It&#39;s a situation that we have certainly followed closely,&quot; US state department spokesperson Heather Nauert told reporters at a news conference.&nbsp;

&quot;As you know, we have relationships with both governments. We continue to encourage both parties to sit down and have conversations about that. And I&#39;ll just leave it at that,&quot; Nauert added.

Tensions are high as India and China have been locked in a face-off in the Doklam area for the last 50 days.

The stand-off ensued after &nbsp;Indian troops stopped the Chinese Army from constructing a road in the region.&nbsp;

Tensions are high as India and China have been locked in a face-off in the Doklam area for the last 50 days

The United States said on Friday that it wants India and China to have a dialogue over the Dokalam stand-off. "It's a situation that we have certainly followed closely," US state department spokesperson Heather Nauert told reporters at a news conference. "As you know, we have relationships with both governments. We continue to encourage both parties to sit down and have conversations about that. And I'll just leave it at that," Nauert added. Tensions are high as India and China have been locked in a face-off in the Doklam area for the last 50 days. The stand-off ensued after Indian troops stopped the Chinese Army from constructing a road in the region.

Dokalam stand-off: US calls for India-China dialogue

Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea.

MSCI&#39;s gauge of stocks across the globe shed 0.77 per cent, on track for its third straight day of declines as it pulled further back from all-time highs.

The Japanese yen hit an eight-week high against the US&nbsp;dollar, while spot gold also reached a two-month high.

North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific island territory of Guam in an unusually detailed threat that further heightened tensions with the United States.

The rise in geopolitical tensions this week, which heightened after US President Donald Trump on Tuesday warned North Korea that it would face &quot;fire and fury&quot; if it threatened the United States, has drawn investor attention away from second-quarter corporate earnings season, which is winding down.

&quot;The story today is North Korea and there was nothing in the earnings that was bullish enough to pull people away from focusing on North Korea,&quot; said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&amp;P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94.

Shares of US department stores Kohl&#39;s and Macy&#39;s were weak after their results.

The pan-European FTSEurofirst 300 index lost 1.19 per cent.

Shares of staffing firm Adecco slumped 6.4 per cent after its results.

In currencies, the yen strengthened 0.64 per cent versus the greenback at 109.37 per dollar.

&quot;The yen is the big story really. Risk aversion is still very much a concern for markets,&quot; said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto.

The dollar index, which measures against a basket of currencies, fell 0.05 per cent.

The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase.

US Treasury long-dated yields dropped to six-week lows, pressured by US-North Korea tensions and the weak data that further reduced expectations of an interest rate hike in December.

Benchmark 10-year notes last rose 5/32 in price to yield 2.2255 per cent, from 2.242 per cent late on Wednesday.

The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday.

In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day.

Spot gold added 0.7 per cent to $1,285.70 an ounce.

&quot;For now, the uptrend is very much intact in gold, reacting to external geopolitical events,&quot; said Jonathan Butler, commodities analyst at Mitsubishi in London.

The Japanese yen hit an eight-week high against the US?dollar, while spot gold also reached a two-month high

Stocks around the world fell sharply on Thursday and investors moved into the yen, gold and other safe-haven assets amid more aggressive talk between the United States and North Korea. MSCI's gauge of stocks across the globe shed 0.77 per cent, on track for its third straight day of declines as it pulled further back from all-time highs. The Japanese yen hit an eight-week high against the US dollar, while spot gold also reached a two-month high. North Korea said it was completing plans to fire four intermediate-range missiles over Japan to land near the US Pacific island territory of Guam in an unusually detailed threat that further heightened tensions with the United States. The rise in geopolitical tensions this week, which heightened after US President Donald Trump on Tuesday warned North Korea that it would face "fire and fury" if it threatened the United States, has drawn investor attention away from second-quarter corporate earnings season, which is winding down. "The story today is North Korea and there was nothing in the earnings that was bullish enough to pull people away from focusing on North Korea," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94. Shares of US department stores Kohl's and Macy's were weak after their results. The pan-European FTSEurofirst 300 index lost 1.19 per cent. Shares of staffing firm Adecco slumped 6.4 per cent after its results. In currencies, the yen strengthened 0.64 per cent versus the greenback at 109.37 per dollar. "The yen is the big story really. Risk aversion is still very much a concern for markets," said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto. The dollar index, which measures against a basket of currencies, fell 0.05 per cent. The dollar weakened after news that US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. US Treasury long-dated yields dropped to six-week lows, pressured by US-North Korea tensions and the weak data that further reduced expectations of an interest rate hike in December. Benchmark 10-year notes last rose 5/32 in price to yield 2.2255 per cent, from 2.242 per cent late on Wednesday. The 30-year bond last rose 5/32 in price to yield 2.8107 per cent, from 2.818 per cent late on Wednesday. In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day. Spot gold added 0.7 per cent to $1,285.70 an ounce. "For now, the uptrend is very much intact in gold, reacting to external geopolitical events," said Jonathan Butler, commodities analyst at Mitsubishi in London.

As North Korea rattle drags down stocks, value of gold and yen rise

Asian equity markets extended a global slide on Friday as tensions ramped up between the United States and North Korea, sending investors fleeing to less risky assets such the yen, the Swiss franc and US&nbsp;Treasuries.

Wall Street closed sharply lower after US&nbsp;President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US&nbsp;allies after it disclosed plans to fire missiles over Japan to land near the US&nbsp;Pacific territory.

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan skidded 1.4 per cent in its third session of declines to a near one-month low, heading for a 2.1 per cent drop for the week.

Australian shares were down 1.3 per cent, set for a weekly loss of 0.5 per cent. Japanese markets were closed for a holiday.

&quot;What has changed this time is that the scary threats and war of words between the US&nbsp;and North Korea have intensified to the point that markets can&#39;t ignore it,&quot; said Shane Oliver, head of the investment strategy at AMP Capital in Sydney.

&quot;Of course it&#39;s all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger.&quot;

Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off.

Trump took specific aim at North Korean leader Kim Jong Un on Thursday, saying he had &quot;disrespected our country greatly&quot; and would not be &quot;getting away with it.&quot;

South Korea&#39;s KOSPI fell 1.8 per cent to a 9 1/2-week low, taking its losses this week to nearly 2.7 per cent.

The Korean won also continued to skid, sliding 0.4 per cent to 1,146.2, below its 200-day moving average.

Chinese blue-chips lost 0.9 per cent, while Hong Kong&#39;s Hang Seng was 1.6 per cent lower.

If North Korea launches an attack that threatens the United States,&nbsp;then China should stay neutral, but if the United States attacks first and tries to overthrow North Korea&#39;s government China will stop them, a Chinese state-run newspaper said on Friday.

&quot;This situation is beginning to develop into this generation&#39;s Cuban Missile crisis moment, with recent leaked intelligence reports alleging that North Korea now has miniaturised its nuclear warheads, which extends the range of its missiles, and potentially brings US&nbsp;targets into reach,&quot; ING&#39;s chief Asia economist Robert Carnell said in a research note on Friday.

&quot;While the US&nbsp;President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution,&quot; Carnell said.

Trump&#39;s threat earlier this week, to unleash &quot;fire and fury&quot; on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors.

Trump&#39;s second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks. These have ranged from an investigation into Russia&#39;s possible interference in the 2016 US&nbsp;presidential election, to concerns about China&#39;s risky debt levels, to stubbornly low inflation in the US.

The CBOE Volatility Index, the most widely followed barometer of expected near-term US&nbsp;stock market volatility, rose the most in about 12 weeks. The index closed at 16.04 overnight, the highest level since Nov. 8, when Trump was elected president.

The Chinese volatility gauge jumped by the most since January 2016. It was at its highest level in more than seven months.

On Wall Street overnight, the Nasdaq retreated 2.1 per cent, while the S&amp;P 500 was down 1.4 per cent, and the Dow Jones Industrial Average pulled back 0.9 per cent.[.N]

US&nbsp;stock futures were 0.1 per cent lower on Friday.

The MSCI World index slipped 0.1 per cent, extending Thursday&#39;s 1.1 per cent drop, its biggest one-day slide since May 17, hurt by the escalating US-North Korea tensions.

The dollar extended losses against the yen to hit a new two-month low. It was down 0.2 per cent at 108.96 yen, after retreating 0.7 per cent on Thursday.

The yen is perceived as a safe haven because Japan is the world&#39;s biggest creditor country and investors there have tended to repatriate funds in times of crisis.

Low US&nbsp;Treasury yields are also weighing on the dollar. The yield on the benchmark 10-year Treasury fell as low as 2.197 per cent, its lowest level since June 28, before inching back to 2.201 per cent.

The dollar pulled back 0.1 per cent to $0.9635 Swiss francs on Friday, after dropping as much as 1.2 per cent to a two-week low overnight.

The dollar was steady against a basket of six major currencies at 93.385 after falling 0.2 per cent on Thursday, with disappointing US&nbsp;inflation and jobs data adding to the greenback&#39;s woes.

US&nbsp;producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week.

Markets are now focused on US&nbsp;consumer price data for July, due later in the session.

Spot gold prices were unchanged at $1,286.27 an ounce, after touching a two-month high earlier. They have soared over 2 per cent in the previous two sessions, and are set for a weekly gain of 2.26 per cent.

US&nbsp;crude futures extended losses from Thursday when they tumbled 2 per cent on fears of slowing demand and lingering concerns over a global oversupply.

They were down 0.7 per cent at $48.24 per barrel, on track for a weekly loss of 2.7 per cent.

Global benchmark Brent lost 0.7 per cent to $51.53, after Thursday&#39;s 1.5 per cent drop. It is poised to end the week down 1.7 per cent.

Wall Street closed sharply lower after US?President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US?allies after it disclosed plans to fire missiles over Japan to land near the US?Pacific territory

Asian equity markets extended a global slide on Friday as tensions ramped up between the United States and North Korea, sending investors fleeing to less risky assets such the yen, the Swiss franc and US Treasuries. Wall Street closed sharply lower after US President Donald Trump issued a new round of fiery rhetoric, warning Pyongyang against attacking Guam or US allies after it disclosed plans to fire missiles over Japan to land near the US Pacific territory. MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.4 per cent in its third session of declines to a near one-month low, heading for a 2.1 per cent drop for the week. Australian shares were down 1.3 per cent, set for a weekly loss of 0.5 per cent. Japanese markets were closed for a holiday. "What has changed this time is that the scary threats and war of words between the US and North Korea have intensified to the point that markets can't ignore it," said Shane Oliver, head of the investment strategy at AMP Capital in Sydney. "Of course it's all come at a time when share markets are due for a correction so North Korea has provided a perfect trigger." Many markets have climbed to record or multi-year highs, leaving them vulnerable to a sell-off. Trump took specific aim at North Korean leader Kim Jong Un on Thursday, saying he had "disrespected our country greatly" and would not be "getting away with it." South Korea's KOSPI fell 1.8 per cent to a 9 1/2-week low, taking its losses this week to nearly 2.7 per cent. The Korean won also continued to skid, sliding 0.4 per cent to 1,146.2, below its 200-day moving average. Chinese blue-chips lost 0.9 per cent, while Hong Kong's Hang Seng was 1.6 per cent lower. If North Korea launches an attack that threatens the United States, then China should stay neutral, but if the United States attacks first and tries to overthrow North Korea's government China will stop them, a Chinese state-run newspaper said on Friday. "This situation is beginning to develop into this generation's Cuban Missile crisis moment, with recent leaked intelligence reports alleging that North Korea now has miniaturised its nuclear warheads, which extends the range of its missiles, and potentially brings US targets into reach," ING's chief Asia economist Robert Carnell said in a research note on Friday. "While the US President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution," Carnell said. Trump's threat earlier this week, to unleash "fire and fury" on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors. Trump's second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks. These have ranged from an investigation into Russia's possible interference in the 2016 US presidential election, to concerns about China's risky debt levels, to stubbornly low inflation in the US. The CBOE Volatility Index, the most widely followed barometer of expected near-term US stock market volatility, rose the most in about 12 weeks. The index closed at 16.04 overnight, the highest level since Nov. 8, when Trump was elected president. The Chinese volatility gauge jumped by the most since January 2016. It was at its highest level in more than seven months. On Wall Street overnight, the Nasdaq retreated 2.1 per cent, while the S&P 500 was down 1.4 per cent, and the Dow Jones Industrial Average pulled back 0.9 per cent.[.N] US stock futures were 0.1 per cent lower on Friday. The MSCI World index slipped 0.1 per cent, extending Thursday's 1.1 per cent drop, its biggest one-day slide since May 17, hurt by the escalating US-North Korea tensions. The dollar extended losses against the yen to hit a new two-month low. It was down 0.2 per cent at 108.96 yen, after retreating 0.7 per cent on Thursday. The yen is perceived as a safe haven because Japan is the world's biggest creditor country and investors there have tended to repatriate funds in times of crisis. Low US Treasury yields are also weighing on the dollar. The yield on the benchmark 10-year Treasury fell as low as 2.197 per cent, its lowest level since June 28, before inching back to 2.201 per cent. The dollar pulled back 0.1 per cent to $0.9635 Swiss francs on Friday, after dropping as much as 1.2 per cent to a two-week low overnight. The dollar was steady against a basket of six major currencies at 93.385 after falling 0.2 per cent on Thursday, with disappointing US inflation and jobs data adding to the greenback's woes. US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year, while another set showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Markets are now focused on US consumer price data for July, due later in the session. Spot gold prices were unchanged at $1,286.27 an ounce, after touching a two-month high earlier. They have soared over 2 per cent in the previous two sessions, and are set for a weekly gain of 2.26 per cent. US crude futures extended losses from Thursday when they tumbled 2 per cent on fears of slowing demand and lingering concerns over a global oversupply. They were down 0.7 per cent at $48.24 per barrel, on track for a weekly loss of 2.7 per cent. Global benchmark Brent lost 0.7 per cent to $51.53, after Thursday's 1.5 per cent drop. It is poised to end the week down 1.7 per cent.

Global stocks, dollar extend slide as tensions between US-North Korea escalate

Any new military conflict with North Korea would likely escalate quickly to the use of nuclear weapons, bringing catastrophic casualties not seen since World War Two and an untold economic impact worldwide, former U.S. defence officials and experts say.

While the United States has maintained an uneasy calm with North Korea for more than six decades and spikes in tensions are not new, recent supercharged rhetoric between the unpredictable U.S. President Donald Trump and North Korean leader Kim Jong Un have heightened the risk of miscalculation that could make that nightmare a reality, they say.

<a href="http://www.wionews.com/world/military-option-with-north-korea-locked-and-loaded-trump-18908" target="_blank">Also read:&nbsp;Military option with North Korea &#39;locked and loaded&#39;</a>

On Thursday, North Korea upped the ante by saying it would complete plans by mid-August to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam, after Trump said that any threats by Pyongyang would be &quot;met with fire and fury like the world has never seen.&quot;

<a href="http://www.wionews.com/world/fire-and-fury-warning-to-north-korea-maybe-not-enough-trump-18872" target="_blank">Also read: &#39;Fire and fury&#39;&nbsp;warning to North Korea maybe not enough, says Trump</a>

The exchange followed a United Nations resolution tightening sanctions on North Korea after it tested two intercontinental ballistic missiles designed to carry nuclear warheads to the United States.

Trump said on Thursday his fire and fury comment was not tough enough.

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<h5>While the United States has maintained an uneasy calm with North Korea for more than six decades and spikes in tensions are not new, recent supercharged rhetoric between the unpredictable US President Donald Trump and North Korean leader Kim Jong Un have heightened the risk of miscalculation that could make that nightmare a reality</h5>
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Despite the war of words, for now the U.S. military says there has been no change in its readiness posture in South Korea or elsewhere in Asia. Analysts say they have seen no evidence of any increased alert in North Korea.

But they warned the bluster could raise the risk of miscalculation that could result in conflict far beyond the scale of the 1950-53 Korean War, which claimed the lives of more than 50,000 Americans and millions of Koreans and ended in an armed truce, not a peace treaty.

&quot;The major thing people are talking about is miscalculation - we could easily stumble into something with the rhetoric being so heated,&quot; said Philip Yun, a Korea expert who was an Asia adviser under former President Bill Clinton.

Yun, now executive director of the Ploughshares Fund, an anti-proliferation initiative, said the risks were exacerbated by the &quot;credibility problem&quot; Trump has acquired due to his frequent off-the-cuff remarks that often appear to go counter to the more measured remarks of his officials.

&quot;In nuclear deterrence, credibility is everything and there&#39;s a situation that if no-one takes you seriously, you have to do something to make sure you are taken seriously, and that&#39;s where the miscalculation can happen,&quot; Yun said.

With hundreds of thousands of troops and huge arsenals arrayed on both sides of a tense demilitarized zone, the Korean peninsula has long been a tinder box.

North Korea&#39;s acquisition of nuclear weapons and its hell-for-leather development of an array of missiles to deliver them, have raised the stakes further.

Catastrophic casualties

Even a conventional clash could cause catastrophic casualties, given the thousands of North Korean artillery pieces ranged along the border, at least 1,000 of which are capable of reaching the densely populated South Korean capital Seoul and its metropolitan area, home to some 25 million people.

&quot;It would be very difficult to eliminate that threat before the artillery fire could create a lot of damage on the southern side,&quot; David Shear, who served as the senior U.S. defence official for east Asia under former president Barack Obama, told Reuters.

&quot;I take projections of casualties of thousands to tens of thousands quite seriously and that&#39;s just in South Korea - it&#39;s possible North Korea could attack Japan as well.&quot;

The real danger of any preemptive U.S. strikes against North Korea&#39;s weapons sites would be that Pyongyang, whose conventional forces are considered no match for those of the United States and its allies, might resort to using its chemical and biological weapons and ultimately its nuclear arsenal.

Then there is the potential for casualties running into the millions.

&quot;If they did launch they could potentially wipe out cities in South Korea and Japan, and in the longer term maybe reach the U.S. West Coast and even further inland,&quot; said Hans Kristensen, director of the Nuclear Information Program at the Federation of American Scientists.

Even if everything went right for the Pentagon, a U.S. strike campaign against North Korea would take up to a week to be effective, said Kristensen.

A former U.S. military officer who served multiple tours in South Korea and Japan said that to succeed completely, it would take at least a month, given how well protected and dispersed North Korean targets were.

&quot;And it would provoke a massive North Korean reaction, even when they spotted preparation for such a strike, or the instant one began.&quot;

Yun said the catastrophe would not just be human.

&quot;If we had a war, think about what it means. You are talking South Korea, the 11th largest economy in the world, Japan, the third largest economy, and you are talking about ground troops on the Korean peninsula.

&quot;Donald Trump&#39;s agenda would be consumed by this. Nothing else would get done. It&#39;s against his interest and it&#39;s not really an option.&quot;

 
&nbsp;

Any conflict would likely escalate quickly to the use of nuclear weapons

Any new military conflict with North Korea would likely escalate quickly to the use of nuclear weapons, bringing catastrophic casualties not seen since World War Two and an untold economic impact worldwide, former U.S. defence officials and experts say. While the United States has maintained an uneasy calm with North Korea for more than six decades and spikes in tensions are not new, recent supercharged rhetoric between the unpredictable U.S. President Donald Trump and North Korean leader Kim Jong Un have heightened the risk of miscalculation that could make that nightmare a reality, they say. Also read: Military option with North Korea 'locked and loaded' On Thursday, North Korea upped the ante by saying it would complete plans by mid-August to fire four intermediate-range missiles over Japan to land near the U.S. Pacific island territory of Guam, after Trump said that any threats by Pyongyang would be "met with fire and fury like the world has never seen." Also read: 'Fire and fury' warning to North Korea maybe not enough, says Trump The exchange followed a United Nations resolution tightening sanctions on North Korea after it tested two intercontinental ballistic missiles designed to carry nuclear warheads to the United States. Trump said on Thursday his fire and fury comment was not tough enough. While the United States has maintained an uneasy calm with North Korea for more than six decades and spikes in tensions are not new, recent supercharged rhetoric between the unpredictable US President Donald Trump and North Korean leader Kim Jong Un have heightened the risk of miscalculation that could make that nightmare a reality × Despite the war of words, for now the U.S. military says there has been no change in its readiness posture in South Korea or elsewhere in Asia. Analysts say they have seen no evidence of any increased alert in North Korea. But they warned the bluster could raise the risk of miscalculation that could result in conflict far beyond the scale of the 1950-53 Korean War, which claimed the lives of more than 50,000 Americans and millions of Koreans and ended in an armed truce, not a peace treaty. "The major thing people are talking about is miscalculation - we could easily stumble into something with the rhetoric being so heated," said Philip Yun, a Korea expert who was an Asia adviser under former President Bill Clinton. Yun, now executive director of the Ploughshares Fund, an anti-proliferation initiative, said the risks were exacerbated by the "credibility problem" Trump has acquired due to his frequent off-the-cuff remarks that often appear to go counter to the more measured remarks of his officials. "In nuclear deterrence, credibility is everything and there's a situation that if no-one takes you seriously, you have to do something to make sure you are taken seriously, and that's where the miscalculation can happen," Yun said. With hundreds of thousands of troops and huge arsenals arrayed on both sides of a tense demilitarized zone, the Korean peninsula has long been a tinder box. North Korea's acquisition of nuclear weapons and its hell-for-leather development of an array of missiles to deliver them, have raised the stakes further. Catastrophic casualties Even a conventional clash could cause catastrophic casualties, given the thousands of North Korean artillery pieces ranged along the border, at least 1,000 of which are capable of reaching the densely populated South Korean capital Seoul and its metropolitan area, home to some 25 million people. "It would be very difficult to eliminate that threat before the artillery fire could create a lot of damage on the southern side," David Shear, who served as the senior U.S. defence official for east Asia under former president Barack Obama, told Reuters. "I take projections of casualties of thousands to tens of thousands quite seriously and that's just in South Korea - it's possible North Korea could attack Japan as well." The real danger of any preemptive U.S. strikes against North Korea's weapons sites would be that Pyongyang, whose conventional forces are considered no match for those of the United States and its allies, might resort to using its chemical and biological weapons and ultimately its nuclear arsenal. Then there is the potential for casualties running into the millions. "If they did launch they could potentially wipe out cities in South Korea and Japan, and in the longer term maybe reach the U.S. West Coast and even further inland," said Hans Kristensen, director of the Nuclear Information Program at the Federation of American Scientists. Even if everything went right for the Pentagon, a U.S. strike campaign against North Korea would take up to a week to be effective, said Kristensen. A former U.S. military officer who served multiple tours in South Korea and Japan said that to succeed completely, it would take at least a month, given how well protected and dispersed North Korean targets were. "And it would provoke a massive North Korean reaction, even when they spotted preparation for such a strike, or the instant one began." Yun said the catastrophe would not just be human. "If we had a war, think about what it means. You are talking South Korea, the 11th largest economy in the world, Japan, the third largest economy, and you are talking about ground troops on the Korean peninsula. "Donald Trump's agenda would be consumed by this. Nothing else would get done. It's against his interest and it's not really an option."

Any new Korean war could quickly escalate to catastrophe

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US&nbsp;inventories bolstered expectations that the long-oversupplied market was moving toward balance.

Brent crude futures&nbsp;were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT).

US&nbsp;West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel.

US&nbsp;crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market.

This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.

&quot;Today&rsquo;s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt,&quot; said Abhishek Kumar, Senior Energy Analyst at Interfax Energy&rsquo;s Global Gas Analytics in London. &quot;Nevertheless, the country&rsquo;s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains.&quot;

The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said.

&quot;The market has been tightening and the refinery margins are strong,&quot; said PetroMatrix managing director Olivier Jakob, saying the US&nbsp;stock draw offered a boost to prices. &quot;You add geopolitical risk premium for Venezuela, and you&#39;ve got a strong market.&quot;

Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.

President Nicolas Maduro&#39;s opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil.&nbsp;

Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd.

But analysts said the current oil price rally could encourage more production, particularly from the United States.

&quot;Relieved bulls should be careful what they wish for. Any price rebound will only embolden US&nbsp;shale producers at a time when rumours have started to emerge that the US&nbsp;shale boom is slowing,&quot; PVM oil analyst Stephen Brennock said in a note.

US?West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50 a barrel, as a fall in US inventories bolstered expectations that the long-oversupplied market was moving toward balance. Brent crude futures were up 58 cents or 1.2 per cent to $50.78 a barrel by 1:59 p.m. EDT (1759 GMT). US West Texas Intermediate futures rose 68 cents or 1.4 per cent to $48.57 a barrel. US crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday. Crude inventories fell 7.2 million barrels in the week ending July 21, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market. This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier. "Today’s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt," said Abhishek Kumar, Senior Energy Analyst at Interfax Energy’s Global Gas Analytics in London. "Nevertheless, the country’s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains." The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said. "The market has been tightening and the refinery margins are strong," said PetroMatrix managing director Olivier Jakob, saying the US stock draw offered a boost to prices. "You add geopolitical risk premium for Venezuela, and you've got a strong market." Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests. President Nicolas Maduro's opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil. Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilised at 1.8 million bpd. But analysts said the current oil price rally could encourage more production, particularly from the United States. "Relieved bulls should be careful what they wish for. Any price rebound will only embolden US shale producers at a time when rumours have started to emerge that the US shale boom is slowing," PVM oil analyst Stephen Brennock said in a note.

Oil jumps to near 8-week high after big draw in US crude stocks

U.S. President Donald Trump and North Korean leader Kim Jong-Un are playing a dangerous game of brinkmanship.

North Korea got the world&rsquo;s attention &ndash; and Trump&rsquo;s &ndash; when it <a href="http://www.independent.co.uk/news/world/asia/north-korea-missile-icbm-pentagon-trump-not-seen-before-a7825541.html">successfully launched</a> an intercontinental ballistic missile for the first time on July 4. In response, the United Nations <a href="https://www.washingtonpost.com/world/national-security/un-imposes-new-sanctions-on-north-korea-following-missile-tests/2017/08/05/dc382962-7a29-11e7-8f39-eeb7d3a2d304_story.html">approved new economic sanctions</a> against North Korea which, predictably, inspired a bellicose response from the rogue regime.

Trump <a href="http://www.foxnews.com/world/2017/08/08/north-korea-trump-ratchet-up-tension-with-threats-fire-hours-apart.html">threatened</a> that further provocations will be met with &ldquo;fire and fury and frankly power, the likes of which this world has never seen before.&rdquo;

In response, North Korea issued a threat of its own &ndash; <a href="https://www.yahoo.com/news/north-korea-says-seriously-considering-plan-strike-guam-222757124.html">missile strikes</a> on the U.S. territory of Guam.

With tensions escalating, it is important to be realistic about how we can get out of this mess.

In short, any non-military solution will rely on China choosing to apply its massive economic leverage over the North Korean regime. This is a point that Trump clearly recognizes. In July, he tweeted that Chinese trade with North Korea &ldquo;<a href="https://twitter.com/realDonaldTrump/status/882560030884716544">rose 40 per cent in the first quarter</a>,&rdquo; highlighting China&rsquo;s reluctance to punish North Korea for its pursuit of nuclear weapons.

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Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us - but we had to give it a try!
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/882560030884716544">5 July 2017</a></blockquote>
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While the <a href="https://www.washingtonpost.com/news/worldviews/wp/2017/07/05/the-messy-data-behind-chinas-growing-trade-with-north-korea/?utm_term=.41435ab3f758">poor quality of the data</a> hinders a detailed analysis, Trump&rsquo;s overall sentiment is correct. China has increased its trade with North Korea in recent years and done little to forestall North Korea&rsquo;s nuclear ambitions besides backing the most recent round of U.N. sanctions. China&rsquo;s foremost objective seems to be promoting greater stability from its volatile neighbor.

Yet a quick look at the data, however murky, shows just how much leverage China has if it wishes to use it.

In general, exports from one country to another <a href="http://www.cepii.fr/pdf_pub/wp/2013/wp2013-27.pdf" style="background-color: rgb(255, 255, 255);">can be mostly explained</a> by the distance between them and the sizes of their markets, a pattern that holds for China and North Korea.

Geographically, they share a long border, which makes China a natural, though not inevitable, partner for trade. As a case in point, North Korea also shares a long border with South Korea, but these countries have almost no trade between them. In addition, North Korea shares a small border with Russia, with whom it has little, though ever-increasing, trade, as I discuss below.

China&rsquo;s large market, proximity and &ndash; most importantly &ndash; willingness to trade with North Korea has led to a situation in which North Korea has become highly dependent on trade with what has become its primary patron. <a href="http://atlas.media.mit.edu/en/profile/country/prk/">About half</a> of North Korean exports and imports go directly to and from China and most of the rest of its trade is handled indirectly by Chinese middlemen.

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North Korea&rsquo;s dependence on its neighbor has grown hand-in-hand with China&rsquo;s increasing economic dominance of East Asia, which gained momentum 15 years ago when China <a href="https://www.wto.org/english/thewto_e/countries_e/china_e.htm">joined the World Trade Organization</a>. Since then, both Chinese gross domestic product, as well as its annual trade with North Korea, have increased nearly tenfold, to around <a href="http://data.worldbank.org/country/china">US$11 trillion</a> and <a href="http://atlas.media.mit.edu/en/profile/country/prk/">$6 billion</a>, respectively.

North Korea <a href="http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/chn/prk/show/2015/">imports nearly everything</a> from China, from rubber tires to refined petroleum to pears, with no single category dominating. Meanwhile, <a href="http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/chn/prk/show/2015/">coal constitutes about 40 per cent</a> of North Korean exports to China, followed by &ldquo;non-knit men&rsquo;s coats.&rdquo;

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Time to use that leverage?

However, recent events &ndash; such as the use of front companies by Chinese firms to <a href="http://www.reuters.com/article/us-northkorea-nuclear-usa-idUSKCN11W1SL">evade sanctions</a> imposed on North Korea and China&rsquo;s <a href="http://english.chosun.com/site/data/html_dir/2017/01/05/2017010501412.html">reluctance to cut off</a> energy supplies to the country &ndash; have led to some uncertainty about the extent to which China is willing to use this economic leverage to rein in North Korea&rsquo;s military ambitions.

On one hand, <a href="https://www.nytimes.com/2017/02/18/world/asia/north-korea-china-coal-imports-suspended.html">China claims</a> that coal imports from North Korea have recently been stopped as part of an effort to punish the regime for recent missile tests and the <a href="http://www.cnn.com/2017/02/20/asia/kim-jong-nam-death-timeline/index.html">suspected assassination of Kim Jong-nam</a>, the estranged half-brother of North Korean leader <a href="https://theconversation.com/what-makes-kim-jong-un-tick-77143">Kim Jong Un</a>. If true, this would be an important signal of China&rsquo;s willingness to support U.S. concerns about the missile program as it would represent a loss of <a href="http://atlas.media.mit.edu/en/profile/country/prk/">about a third</a> ($930 million) of North Korea&rsquo;s import revenue.

However, there is evidence that coal shipments in fact <a href="http://www.slate.com/blogs/the_slatest/2017/07/05/trump_tried_to_make_china_to_do_his_bidding_against_north_korea_and_is_shocked.html">never ceased</a>. And, in any case, China <a href="https://www.washingtonpost.com/news/worldviews/wp/2017/07/05/the-messy-data-behind-chinas-growing-trade-with-north-korea/?utm_term=.41435ab3f758">may have dramatically increased</a> its imports of iron ore from North Korea to offset the lost coal revenues.

This is consistent with the idea that China carefully considers the resources and revenue that are available to the North Korean regime at any moment, and uses trade as a lever to control them. In this way, China walks a fine line between providing too many resources, and thus allowing the regime to prosper, and not enough resources, such that North Korea is in danger of collapsing. Ultimately, trade may be used as a lever to do some light scolding, but China&rsquo;s overwhelming concern is preventing North Korea&rsquo;s collapse.

Further evidence that China has tight control over the North Korean economy comes from <a href="https://c4ads.org/reports/">a recent report</a> from <a href="https://c4ads.org">C4ADS</a>. The research group found close, and often common, ownership ties between most of the major Chinese companies who do business with North Korea. This suggests that trade with North Korea is highly centralized and thus easily controlled.

Russia: North Korea&rsquo;s other &lsquo;friend&rsquo;

China is not the only country that North Korea trades with, though the others currently pale in comparison. Other top export destinations include India ($97.8 million), Pakistan ($43.1 million) and Burkina Faso ($32.8 million). In terms of imports, India ($108 million), Russia ($78.3 million) and Thailand ($73.8 million) currently sell the most to North Korea.

Russia, in particular, may soon complicate <a href="http://www.cbsnews.com/videos/nikki-haley-says-u-s-will-propose-tougher-sanctions-against-north-korea/">U.S. efforts to isolate the regime</a>. While still small, <a href="https://www.usatoday.com/story/news/world/2017/06/05/russia-boosts-trade-north-korea-china-cuts/102389824/">Russian trade with North Korea increased</a> 73 per cent over the first two months of 2017 compared with the same period of the previous year.

But whereas China is legitimately worried that an economic crisis in North Korea could lead to a flood of refugees or all-out war, Russia likely sees engagement with North Korea in much simpler terms, namely as an additional way to gain geopolitical advantage relative to the U.S.

A way out?

Nearly all experts agree that there is no easy way to &ldquo;solve&rdquo; the North Korea problem. However, one plausible approach is to encourage South Korea and Japan to begin to develop nuclear weapons programs of their own and to only discontinue these programs if China takes meaningful steps to use its trade with North Korea to reign in the regime.

Threatening to introduce new nuclear powers to the world is clearly risky, however stable and peaceful South Korea and Japan currently are. But China is highly averse to having these economic and political rivals acquire nuclear capabilities, as it would threaten China&rsquo;s ongoing pursuit of regional control. In short, this is a sensitive pressure point that could be used to sway the Chinese leadership.

One way or another, China must become convinced that the costs of propping up the North Korean regime through trade are higher than the costs of an increased probability that the regime will collapse.

&nbsp;

This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/china-is-the-key-to-avoiding-nuclear-fire-and-fury-in-north-korea-82257">original article</a>.

China has increased its trade with North Korea in recent years and done little to forestall North Korea?s nuclear ambitions.

U.S. President Donald Trump and North Korean leader Kim Jong-Un are playing a dangerous game of brinkmanship. North Korea got the world’s attention – and Trump’s – when it successfully launched an intercontinental ballistic missile for the first time on July 4. In response, the United Nations approved new economic sanctions against North Korea which, predictably, inspired a bellicose response from the rogue regime. Trump threatened that further provocations will be met with “fire and fury and frankly power, the likes of which this world has never seen before.” In response, North Korea issued a threat of its own – missile strikes on the U.S. territory of Guam. With tensions escalating, it is important to be realistic about how we can get out of this mess. In short, any non-military solution will rely on China choosing to apply its massive economic leverage over the North Korean regime. This is a point that Trump clearly recognizes. In July, he tweeted that Chinese trade with North Korea “rose 40 per cent in the first quarter,” highlighting China’s reluctance to punish North Korea for its pursuit of nuclear weapons. Trade between China and North Korea grew almost 40% in the first quarter. So much for China working with us - but we had to give it a try! — Donald J. Trump (@realDonaldTrump) 5 July 2017 × While the poor quality of the data hinders a detailed analysis, Trump’s overall sentiment is correct. China has increased its trade with North Korea in recent years and done little to forestall North Korea’s nuclear ambitions besides backing the most recent round of U.N. sanctions. China’s foremost objective seems to be promoting greater stability from its volatile neighbor. Yet a quick look at the data, however murky, shows just how much leverage China has if it wishes to use it. In general, exports from one country to another can be mostly explained by the distance between them and the sizes of their markets, a pattern that holds for China and North Korea. Geographically, they share a long border, which makes China a natural, though not inevitable, partner for trade. As a case in point, North Korea also shares a long border with South Korea, but these countries have almost no trade between them. In addition, North Korea shares a small border with Russia, with whom it has little, though ever-increasing, trade, as I discuss below. China’s large market, proximity and – most importantly – willingness to trade with North Korea has led to a situation in which North Korea has become highly dependent on trade with what has become its primary patron. About half of North Korean exports and imports go directly to and from China and most of the rest of its trade is handled indirectly by Chinese middlemen. North Korea’s dependence on its neighbor has grown hand-in-hand with China’s increasing economic dominance of East Asia, which gained momentum 15 years ago when China joined the World Trade Organization. Since then, both Chinese gross domestic product, as well as its annual trade with North Korea, have increased nearly tenfold, to around US$11 trillion and $6 billion, respectively. North Korea imports nearly everything from China, from rubber tires to refined petroleum to pears, with no single category dominating. Meanwhile, coal constitutes about 40 per cent of North Korean exports to China, followed by “non-knit men’s coats.” Time to use that leverage? However, recent events – such as the use of front companies by Chinese firms to evade sanctions imposed on North Korea and China’s reluctance to cut off energy supplies to the country – have led to some uncertainty about the extent to which China is willing to use this economic leverage to rein in North Korea’s military ambitions. On one hand, China claims that coal imports from North Korea have recently been stopped as part of an effort to punish the regime for recent missile tests and the suspected assassination of Kim Jong-nam, the estranged half-brother of North Korean leader Kim Jong Un. If true, this would be an important signal of China’s willingness to support U.S. concerns about the missile program as it would represent a loss of about a third ($930 million) of North Korea’s import revenue. However, there is evidence that coal shipments in fact never ceased. And, in any case, China may have dramatically increased its imports of iron ore from North Korea to offset the lost coal revenues. This is consistent with the idea that China carefully considers the resources and revenue that are available to the North Korean regime at any moment, and uses trade as a lever to control them. In this way, China walks a fine line between providing too many resources, and thus allowing the regime to prosper, and not enough resources, such that North Korea is in danger of collapsing. Ultimately, trade may be used as a lever to do some light scolding, but China’s overwhelming concern is preventing North Korea’s collapse. Further evidence that China has tight control over the North Korean economy comes from a recent report from C4ADS. The research group found close, and often common, ownership ties between most of the major Chinese companies who do business with North Korea. This suggests that trade with North Korea is highly centralized and thus easily controlled. Russia: North Korea’s other ‘friend’ China is not the only country that North Korea trades with, though the others currently pale in comparison. Other top export destinations include India ($97.8 million), Pakistan ($43.1 million) and Burkina Faso ($32.8 million). In terms of imports, India ($108 million), Russia ($78.3 million) and Thailand ($73.8 million) currently sell the most to North Korea. Russia, in particular, may soon complicate U.S. efforts to isolate the regime. While still small, Russian trade with North Korea increased 73 per cent over the first two months of 2017 compared with the same period of the previous year. But whereas China is legitimately worried that an economic crisis in North Korea could lead to a flood of refugees or all-out war, Russia likely sees engagement with North Korea in much simpler terms, namely as an additional way to gain geopolitical advantage relative to the U.S. A way out? Nearly all experts agree that there is no easy way to “solve” the North Korea problem. However, one plausible approach is to encourage South Korea and Japan to begin to develop nuclear weapons programs of their own and to only discontinue these programs if China takes meaningful steps to use its trade with North Korea to reign in the regime. Threatening to introduce new nuclear powers to the world is clearly risky, however stable and peaceful South Korea and Japan currently are. But China is highly averse to having these economic and political rivals acquire nuclear capabilities, as it would threaten China’s ongoing pursuit of regional control. In short, this is a sensitive pressure point that could be used to sway the Chinese leadership. One way or another, China must become convinced that the costs of propping up the North Korean regime through trade are higher than the costs of an increased probability that the regime will collapse. This article was originally published on The Conversation. Read the original article.

China is the key to avoiding nuclear 'fire and fury' in North Korea

The United States is speaking out with a unified message on North Korea, the US State Department insisted Wednesday, playing down divergent comments from President Donald Trump and Secretary of State Rex Tillerson.

&quot;Whether it&#39;s the White House, the State Department, the Department of Defense, we are speaking with one voice,&quot; said State Department spokeswoman Heather Nauert.

&quot;And the world is, in fact, speaking with one voice, and we saw that as it came out of the UN Security Council with the resolution that passed less than a week ago&quot; approving more sanctions against Pyongyang, she said.

She was speaking after Trump warned North Korean leader Kim Jong-Un that he faced &quot;fire and fury&quot; over his weapons and ballistic missile programs.

Trump, enjoying a working holiday at his New Jersey golf course, went on to boast that the US nuclear arsenal was &quot;more powerful than ever.&quot; &nbsp;&nbsp;

As tensions on the Korean peninsula flared, Tillerson took a very different tone, insisting there was &quot;no immediate threat&quot; from North Korea.&nbsp;

Nauert said Trump&#39;s remarks fit into a &quot;pressure campaign&quot; to force North Korea to back off from its nuclear development and further missile tests.&nbsp;

&quot;That campaign is working,&quot; she said, adding that Trump and Tillerson held an hour-long phone conversation after the president&#39;s comments.

&quot;Let&#39;s consider what is alarming,&quot; she said. &quot;What is alarming, two ICBM tests in less than a month, two nuclear tests that took place last year.&quot;

Trump, enjoying a working holiday at his New Jersey golf course, went on to boast that the US nuclear arsenal was 'more powerful than ever'

The United States is speaking out with a unified message on North Korea, the US State Department insisted Wednesday, playing down divergent comments from President Donald Trump and Secretary of State Rex Tillerson. "Whether it's the White House, the State Department, the Department of Defense, we are speaking with one voice," said State Department spokeswoman Heather Nauert. "And the world is, in fact, speaking with one voice, and we saw that as it came out of the UN Security Council with the resolution that passed less than a week ago" approving more sanctions against Pyongyang, she said. She was speaking after Trump warned North Korean leader Kim Jong-Un that he faced "fire and fury" over his weapons and ballistic missile programs. Trump, enjoying a working holiday at his New Jersey golf course, went on to boast that the US nuclear arsenal was "more powerful than ever." As tensions on the Korean peninsula flared, Tillerson took a very different tone, insisting there was "no immediate threat" from North Korea. Nauert said Trump's remarks fit into a "pressure campaign" to force North Korea to back off from its nuclear development and further missile tests. "That campaign is working," she said, adding that Trump and Tillerson held an hour-long phone conversation after the president's comments. "Let's consider what is alarming," she said. "What is alarming, two ICBM tests in less than a month, two nuclear tests that took place last year."

US on North Korea: 'speaking with one voice'

Japan could legally intercept a North Korean missile headed towards Guam, defence minister Itsunori Onodera said on Thursday in remarks reported by Kyodo news service.

Onodera told a lower house of parliament committee that Japan would be allowed to hit a missile headed towards the US&nbsp;Pacific territory if it was judged to be an existential threat to Japan, Kyodo said.

This is a reiteration of the Japanese government&#39;s position.

Experts say Japan does not currently have the capability to shoot down a missile flying over its territory headed for Guam.

&nbsp;

Defence minister Itsunori Onodera reportedly told a lower house of parliament committee that Japan would be allowed to hit a missile headed towards the US?Pacific territory if it was judged to be an existential threat to Japan

Japan could legally intercept a North Korean missile headed towards Guam, defence minister Itsunori Onodera said on Thursday in remarks reported by Kyodo news service. Onodera told a lower house of parliament committee that Japan would be allowed to hit a missile headed towards the US Pacific territory if it was judged to be an existential threat to Japan, Kyodo said. This is a reiteration of the Japanese government's position. Experts say Japan does not currently have the capability to shoot down a missile flying over its territory headed for Guam.

Japan could legally intercept a Guam-bound North Korea missile: Report

Indian shares fell for a third consecutive session on Wednesday, dragged down by financial and healthcare stocks, as escalating tensions on the Korean peninsula hit regional markets.

Asian shares and US stock futures slipped after Pyongyang said it is considering plans to attack Guam, just hours after <a href="http://www.wionews.com/world/north-korea-threatens-strike-on-guam-after-trumps-fire-and-fury-warning-18729">US President Donald Trump told North Korea</a> that any threat to the United States would be met with &quot;fire and fury.&quot;

Analysts said any fall in domestic equities could be limited. Shares have hit records highs this year on prospects of improving earnings and economic and fiscal reforms from the government.

&quot;Global news flow is weighing heavy on the markets. I don&#39;t think there is more than 4-5 pct downside from the levels we&#39;ve seen recently,&quot; said Gaurang Shah, head investment strategist, Geojit Financial Services.

The broader NSE Nifty was down 0.29 per cent at 9,949.50 as of 0528 GMT, while the benchmark BSE&nbsp;Sensex&nbsp;was 0.38 per cent lower at 31,893.61.

Drugmaker Sun Pharmaceutical Industries&#39; shares slumped as much as 5 per cent to their lowest in over four years after unit Taro Pharmaceutical Industries June-qtr profit halved to $54.5 million.

The Nifty Pharma index fell as much as 2.2 per cent to its lowest in over two months.

Nifty Bank index was trading 0.5 per cent lower, after falling nearly a per cent in the last two sessions.

Asian shares and US stock futures slipped after Pyongyang said it is considering plans to attack Guam, just hours after US President Donald Trump told North Korea that any threat to the United States would be met with "fire and fury."

Indian shares fell for a third consecutive session on Wednesday, dragged down by financial and healthcare stocks, as escalating tensions on the Korean peninsula hit regional markets. Asian shares and US stock futures slipped after Pyongyang said it is considering plans to attack Guam, just hours after US President Donald Trump told North Korea that any threat to the United States would be met with "fire and fury." Analysts said any fall in domestic equities could be limited. Shares have hit records highs this year on prospects of improving earnings and economic and fiscal reforms from the government. "Global news flow is weighing heavy on the markets. I don't think there is more than 4-5 pct downside from the levels we've seen recently," said Gaurang Shah, head investment strategist, Geojit Financial Services. The broader NSE Nifty was down 0.29 per cent at 9,949.50 as of 0528 GMT, while the benchmark BSE Sensex was 0.38 per cent lower at 31,893.61. Drugmaker Sun Pharmaceutical Industries' shares slumped as much as 5 per cent to their lowest in over four years after unit Taro Pharmaceutical Industries June-qtr profit halved to $54.5 million. The Nifty Pharma index fell as much as 2.2 per cent to its lowest in over two months. Nifty Bank index was trading 0.5 per cent lower, after falling nearly a per cent in the last two sessions.

Sensex dips over Korea tension

In his fresh warning to North Korea, President Donald Trump has said that the US nuclear arsenal had grown more powerful than ever before.&nbsp;

&quot;My first order as President was to renovate and modernise our nuclear arsenal. It is now far stronger and more powerful than ever before,&quot; Trump wrote on Twitter, adding that &quot;hopefully we will never have to use this power.&quot;

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<blockquote class="twitter-tweet" data-lang="en">
My first order as President was to renovate and modernize our nuclear arsenal. It is now far stronger and more powerful than ever before....
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/895252459152711680">August 9, 2017</a></blockquote>
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...Hopefully we will never have to use this power, but there will never be a time that we are not the most powerful nation in the world!
&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/895254168570605568">August 9, 2017</a></blockquote>
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The US President&#39;s comments come a day after the <a href="http://www.wionews.com/world/guam-keeps-its-cool-after-north-korea-strike-threat-18781">verbal war between North Korea and the United States.</a> North Korea had threatened a nuclear war on the US after Trump&#39;s <a href="http://www.wionews.com/world/north-korea-threatens-strike-on-guam-after-trumps-fire-and-fury-warning-18729">&quot;fire and fury&quot;</a>&nbsp;reaction to Korea&#39;s nuclear ambitions.&nbsp;

US Secretary of State Rex Tillerson justified Trump&#39;s rhetoric of &quot;fire and fury&quot; saying President Donald Trump was simply using the language &quot;that Kim Jong-Un would understand&quot;. He added while talking to journalists, that Kim doesn&#39;t seem to understand diplomatic language.

Germany intervened in the mounting war of words between the two&nbsp;countries, urging them to show &quot;restraint&quot;. It came down on the side of the US and called North Korea the clear &quot;provocateur in this case and the source of our worries&quot;. &nbsp;&nbsp;

The German foreign ministry, Martin Schaefer, urged United Nations Security Council to &quot;thoroughly implement&quot; the latest round of sanctions against North Korea.

He stressed on continuing the diplomatic efforts among the countries and ensured it as the only way to contain the North Korean threat.&nbsp;

He added that Germany will consult with the United States and China &quot;to find the right approach to dealing with the existential danger to the region and the world posed by nuclear proliferation and threats from North Korea&quot;.&nbsp;

The North&#39;s main ally China warned against &quot;words and actions&quot; that would stoke tensions.

France meanwhile praised Trump&#39;s &quot;determination&quot; in standing up to Pyongyang.

&nbsp;

The comments have come a day after the verbal war between North Korea and the United States

In his fresh warning to North Korea, President Donald Trump has said that the US nuclear arsenal had grown more powerful than ever before. "My first order as President was to renovate and modernise our nuclear arsenal. It is now far stronger and more powerful than ever before," Trump wrote on Twitter, adding that "hopefully we will never have to use this power." My first order as President was to renovate and modernize our nuclear arsenal. It is now far stronger and more powerful than ever before.... — Donald J. Trump (@realDonaldTrump) August 9, 2017 × ...Hopefully we will never have to use this power, but there will never be a time that we are not the most powerful nation in the world! — Donald J. Trump (@realDonaldTrump) August 9, 2017 × The US President's comments come a day after the verbal war between North Korea and the United States. North Korea had threatened a nuclear war on the US after Trump's "fire and fury" reaction to Korea's nuclear ambitions. US Secretary of State Rex Tillerson justified Trump's rhetoric of "fire and fury" saying President Donald Trump was simply using the language "that Kim Jong-Un would understand". He added while talking to journalists, that Kim doesn't seem to understand diplomatic language. Germany intervened in the mounting war of words between the two countries, urging them to show "restraint". It came down on the side of the US and called North Korea the clear "provocateur in this case and the source of our worries". The German foreign ministry, Martin Schaefer, urged United Nations Security Council to "thoroughly implement" the latest round of sanctions against North Korea. He stressed on continuing the diplomatic efforts among the countries and ensured it as the only way to contain the North Korean threat. He added that Germany will consult with the United States and China "to find the right approach to dealing with the existential danger to the region and the world posed by nuclear proliferation and threats from North Korea". The North's main ally China warned against "words and actions" that would stoke tensions. France meanwhile praised Trump's "determination" in standing up to Pyongyang.

Trump now threatens North Korea with US nuclear might

The Pacific island of Guam remained calm a day after the apocalyptic threats from Korea.

The threats followed after the US President Donald Trump had warned North Korea with <a href="http://www.wionews.com/world/north-korea-threatens-strike-on-guam-after-trumps-fire-and-fury-warning-18729">&quot; fire and fury&quot; over its nuclear ambitions</a>. Korea reverted saying it was considering missile strikes near US strategic military installations on Guam.

Governor Eddie Calvo assured the residents of Guam of their safety. He said that Guam and Washington are working together to secure the Pacific island.

George Charfauros, the territory&#39;s homeland security adviser said there was just a 0.000001 per cent chance of the North Korean missile hitting Guam.

The threat did not scare the people in Chelsea as it was like any other ordinary day for them. &quot;I haven&#39;t heard people talk about it. The customer traffic is normal. They&#39;re just buying school supplies because the school&#39;s just opened&quot; a shop worker in Chelsea told AFP.&nbsp;

Guam, a US island territory, is a popular tourist destination. The island is inhabited by around 6000 US troops and houses two US military installations, the Andersen Air Force Base and the Naval Base Guam.

Nationalists claim that it is because of the US military that the island attracts potential threats.&nbsp;

However, Calvo dismissed the claims saying the island is safe because of the US military presence.

&quot;Those who are against the military will keep that distinction and make that argument. In the same manner, those who support the presence of the military on Guam will argue that this is what keeps us safe,&quot; he said.

The governor also said that he has been assured by the White House that a strike on the territory would be considered an attack on the United States, adding that Guam is American soil inhabited by 200,000 Americans.&nbsp;

The verbal war between US and Korea has forced Germany to intervene and request United Nations Security Council to &quot;thoroughly implement&quot; the latest round of sanctions against North Korea.

The German foreign ministry spokesman Martin Schaefer has asked &quot;all sides to restraint&quot; stressing that Germany saw North Korea as the clear &quot;provocateur in this case and the source of our worries&quot;. &nbsp;&nbsp;

&nbsp;

The threats followed after the US President Donald Trump had warned North Korea with 'fire and fury' over its nuclear ambitions

The Pacific island of Guam remained calm a day after the apocalyptic threats from Korea. The threats followed after the US President Donald Trump had warned North Korea with " fire and fury" over its nuclear ambitions. Korea reverted saying it was considering missile strikes near US strategic military installations on Guam. Governor Eddie Calvo assured the residents of Guam of their safety. He said that Guam and Washington are working together to secure the Pacific island. George Charfauros, the territory's homeland security adviser said there was just a 0.000001 per cent chance of the North Korean missile hitting Guam. The threat did not scare the people in Chelsea as it was like any other ordinary day for them. "I haven't heard people talk about it. The customer traffic is normal. They're just buying school supplies because the school's just opened" a shop worker in Chelsea told AFP. Guam, a US island territory, is a popular tourist destination. The island is inhabited by around 6000 US troops and houses two US military installations, the Andersen Air Force Base and the Naval Base Guam. Nationalists claim that it is because of the US military that the island attracts potential threats. However, Calvo dismissed the claims saying the island is safe because of the US military presence. "Those who are against the military will keep that distinction and make that argument. In the same manner, those who support the presence of the military on Guam will argue that this is what keeps us safe," he said. The governor also said that he has been assured by the White House that a strike on the territory would be considered an attack on the United States, adding that Guam is American soil inhabited by 200,000 Americans. The verbal war between US and Korea has forced Germany to intervene and request United Nations Security Council to "thoroughly implement" the latest round of sanctions against North Korea. The German foreign ministry spokesman Martin Schaefer has asked "all sides to restraint" stressing that Germany saw North Korea as the clear "provocateur in this case and the source of our worries".

Guam keeps its cool after North Korea strike threat

Russia may impose counter-measures on the United States after US President Donald Trump signed into law a new round of economic sanctions on Moscow, the Russian foreign ministry said on Wednesday.

The new US penalties were short-sighted and risked harming global stability, it said in a statement on its website.

&quot;It&#39;s high time to realise that threats and attempts to exert pressure on Russia will not make it change its course or sacrifice its national interests,&quot; the statement read.

US President Donald Trump signed into law a new round of economic sanctions on Moscow that targets the Russian energy sector

Russia may impose counter-measures on the United States after US President Donald Trump signed into law a new round of economic sanctions on Moscow, the Russian foreign ministry said on Wednesday. The new US penalties were short-sighted and risked harming global stability, it said in a statement on its website. "It's high time to realise that threats and attempts to exert pressure on Russia will not make it change its course or sacrifice its national interests," the statement read.

Russia may impose counter-measures on US after new sanctions: foreign ministry

The United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, but only on the understanding that it can never be a nuclear power, Secretary of State Rex Tillerson said on Tuesday.

Speaking to reporters at the State Department days after Pyongyang tested its second intercontinental ballistic missile (ICBM), Tillerson reiterated that Washington sought to persuade North Korea to give up its missile and nuclear weapons programs through peaceful pressure.

&quot;We do not seek a regime change, we do not seek a collapse of the regime, we do not seek an accelerated reunification of the peninsula, we do not seek an excuse to send our military north of the 38th Parallel,&quot; Tillerson said.

&quot;We are not your enemy ... but you are presenting an unacceptable threat to us, and we have to respond. And we hope that at some point they will begin to understand that and we would like to sit and have a dialogue with them.&quot;

However, &quot;a condition of those talks is there is no future where North Korea holds nuclear weapons or the ability to deliver those nuclear weapons to anyone in the region, much less the (U.S.) homeland,&quot; he said.

North Korea has vowed to develop a nuclear-tipped missile capable of hitting the United States and U.S. officials said the latest test had shown it may now be able to reach most of the country.

Tillerson repeated calls for North Korea&#39;s neighbour and ally China, which has urged a resumption of talks with Pyongyang, to use its influence to create the conditions for &quot;productive dialogue.&quot;

He said other options were &quot;not particularly attractive.&quot;

President Donald Trump&#39;s administration has said all options are on the table in dealing with North Korea, including military ones. However, given the potential for massive casualties from North Korean retaliation in allied South Korea and Japan and among U.S. troops there, it has stressed the need for a diplomatic solution.

Earlier on Tuesday, a leading Republican senator, Lindsey Graham, said Trump had told him he was willing to go to war with North Korea &quot;if they continued to try to hit America with an ICBM.&quot;

&quot;He&#39;s told me that. I believe him. If I were China, I would believe him, too, and do something about it. You can stop North Korea, militarily or diplomatically,&quot; he said on NBC&#39;s &quot;Today Show.&quot;

&quot;There is a military option: To destroy North Korea&#39;s programme and North Korea itself,&quot; Graham said. &quot;I prefer the diplomatic approach. But they will not be allowed to have a missile to hit America with a nuclear weapon on top.&quot;

Asked about Graham&#39;s remarks, White House spokeswoman Sarah Sanders reiterated that the administration was &quot;keeping all options on the table.&quot;

'We are not your enemy... but you are presenting an unacceptable threat to us, and we have to respond,' Secretary of State Rex Tillerson said

The United States does not seek to topple the North Korean government and would like dialogue with Pyongyang at some point, but only on the understanding that it can never be a nuclear power, Secretary of State Rex Tillerson said on Tuesday. Speaking to reporters at the State Department days after Pyongyang tested its second intercontinental ballistic missile (ICBM), Tillerson reiterated that Washington sought to persuade North Korea to give up its missile and nuclear weapons programs through peaceful pressure. "We do not seek a regime change, we do not seek a collapse of the regime, we do not seek an accelerated reunification of the peninsula, we do not seek an excuse to send our military north of the 38th Parallel," Tillerson said. "We are not your enemy ... but you are presenting an unacceptable threat to us, and we have to respond. And we hope that at some point they will begin to understand that and we would like to sit and have a dialogue with them." However, "a condition of those talks is there is no future where North Korea holds nuclear weapons or the ability to deliver those nuclear weapons to anyone in the region, much less the (U.S.) homeland," he said. North Korea has vowed to develop a nuclear-tipped missile capable of hitting the United States and U.S. officials said the latest test had shown it may now be able to reach most of the country. Tillerson repeated calls for North Korea's neighbour and ally China, which has urged a resumption of talks with Pyongyang, to use its influence to create the conditions for "productive dialogue." He said other options were "not particularly attractive." President Donald Trump's administration has said all options are on the table in dealing with North Korea, including military ones. However, given the potential for massive casualties from North Korean retaliation in allied South Korea and Japan and among U.S. troops there, it has stressed the need for a diplomatic solution. Earlier on Tuesday, a leading Republican senator, Lindsey Graham, said Trump had told him he was willing to go to war with North Korea "if they continued to try to hit America with an ICBM." "He's told me that. I believe him. If I were China, I would believe him, too, and do something about it. You can stop North Korea, militarily or diplomatically," he said on NBC's "Today Show." "There is a military option: To destroy North Korea's programme and North Korea itself," Graham said. "I prefer the diplomatic approach. But they will not be allowed to have a missile to hit America with a nuclear weapon on top." Asked about Graham's remarks, White House spokeswoman Sarah Sanders reiterated that the administration was "keeping all options on the table."

US to North Korea: Let's talk, 'at some point'

Russian foreign minister Sergei Lavrov told US counterpart Rex Tillerson Friday that Moscow remained ready to work with Washington despite striking back at new sanctions being readied approved by Congress.&nbsp;

&quot;Lavrov confirmed that our country is still ready to normalise bilateral relations with the US and to cooperate on the most important international issues,&quot; Russia&#39;s foreign ministry said after a phone call between the two top diplomats.

&quot;However this is possible only on the basis of equality, mutual respect and a balancing interests,&quot; the ministry said.&nbsp;

Russia's foreign ministry said after a phone call between the two diplomats that the cooperation is 'possible only on the basis of equality, mutual respect'

Russian foreign minister Sergei Lavrov told US counterpart Rex Tillerson Friday that Moscow remained ready to work with Washington despite striking back at new sanctions being readied approved by Congress. "Lavrov confirmed that our country is still ready to normalise bilateral relations with the US and to cooperate on the most important international issues," Russia's foreign ministry said after a phone call between the two top diplomats. "However this is possible only on the basis of equality, mutual respect and a balancing interests," the ministry said.

Russia 'still ready' to cooperate with US: Lavrov to Tillerson

One week before Barack Obama leaves the White House, the debate about his foreign policy legacy is already in full swing. Analysts in Washington, D.C. say his strategy towards South Asia is a mix of successes and failures. The key pillar of his approach to the entire region has been developing the relationship between India and the US.

These deeper ties are reflected in the strong personal relationship between Obama and India&rsquo;s Prime Minister, Narendra Modi.

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&ldquo;It is true that Obama and I have a special friendship, a special wavelength,&rdquo; Modi told The Wall Street Journal in May 2016. Asia analysts say the motivation behind these deeper ties is to position India as a counterbalance against the region&rsquo;s other key power.

&ldquo;I think there&rsquo;s a very strong desire on the part of the Obama administration to look to India as a key partner in Asia to help push back against the rising influence and activities of China,&rdquo; said Michael Kugelman, a Senior Associate for South Asia at the Wilson Center in Washington, D.C.

China has been aggressively pushing its claims in the South China Sea, with the US countering by sending regular air and sea patrols through the disputed waters. In the wider region, Obama&rsquo;s outgoing administration is also facing allegations of a muddled approach to Afghanistan.

&ldquo;The biggest fault when it comes to the Obama administration in Afghanistan is not clearly articulating US objectives. A lot of people in this country don&rsquo;t really know why US troops are still in Afghanistan, fighting and dying there,&rdquo; said Mr Kugelman.

President-elect Donald Trump has previously declared that the US is &ldquo;getting out of the nation-building business.&rdquo; Although that mindset could signal a shift in the US presence in Afghanistan, the signs are that Trump&rsquo;s new administration will not seek to drastically change the relationship with India.

James Mattis, Donald Trump&rsquo;s pick for his new defence secretary, this week said strategic ties with India are &ldquo;of utmost importance&rdquo; to the US.

Fears of visa restrictions for highly-skilled Indians who want to work in the US have the potential to sour that relationship. But many believe the single biggest obstacle to even deeper ties between New Delhi and Washington is Pakistan.

&ldquo;It&rsquo;s going to be very difficult for the US and India to get to that point where they talk about a genuine strategic partnership if the US continues on having a workable relationship with Pakistan, particularly with the Pakistani security establishment,&rdquo; said Mr Kugelman.

After a year of increasing tensions along the Line of Control, the Trump administration now faces a four-year tightrope walk to maintain its twin relationships with New Delhi and Islamabad.

(WION)

The key pillar of his approach to the region was developing the relationship between India and the US

One week before Barack Obama leaves the White House, the debate about his foreign policy legacy is already in full swing. Analysts in Washington, D.C. say his strategy towards South Asia is a mix of successes and failures. The key pillar of his approach to the entire region has been developing the relationship between India and the US. These deeper ties are reflected in the strong personal relationship between Obama and India’s Prime Minister, Narendra Modi. It’s going to be very difficult for the US and India to get to that point where they talk about a genuine strategic partnership if the US continues on having a workable relationship with Pakistan, particularly with the Pakistani security establishment × “It is true that Obama and I have a special friendship, a special wavelength,” Modi told The Wall Street Journal in May 2016. Asia analysts say the motivation behind these deeper ties is to position India as a counterbalance against the region’s other key power. “I think there’s a very strong desire on the part of the Obama administration to look to India as a key partner in Asia to help push back against the rising influence and activities of China,” said Michael Kugelman, a Senior Associate for South Asia at the Wilson Center in Washington, D.C. China has been aggressively pushing its claims in the South China Sea, with the US countering by sending regular air and sea patrols through the disputed waters. In the wider region, Obama’s outgoing administration is also facing allegations of a muddled approach to Afghanistan. “The biggest fault when it comes to the Obama administration in Afghanistan is not clearly articulating US objectives. A lot of people in this country don’t really know why US troops are still in Afghanistan, fighting and dying there,” said Mr Kugelman. President-elect Donald Trump has previously declared that the US is “getting out of the nation-building business.” Although that mindset could signal a shift in the US presence in Afghanistan, the signs are that Trump’s new administration will not seek to drastically change the relationship with India. James Mattis, Donald Trump’s pick for his new defence secretary, this week said strategic ties with India are “of utmost importance” to the US. Fears of visa restrictions for highly-skilled Indians who want to work in the US have the potential to sour that relationship. But many believe the single biggest obstacle to even deeper ties between New Delhi and Washington is Pakistan. “It’s going to be very difficult for the US and India to get to that point where they talk about a genuine strategic partnership if the US continues on having a workable relationship with Pakistan, particularly with the Pakistani security establishment,” said Mr Kugelman. After a year of increasing tensions along the Line of Control, the Trump administration now faces a four-year tightrope walk to maintain its twin relationships with New Delhi and Islamabad. (WION)

Obama's South Asia legacy? Some hits, some misses

The United States on Monday launched the first salvo in the renegotiation of the 23-year-old North American Free Trade Agreement (NAFTA), saying its top priority for the talks was shrinking the US&nbsp;trade deficit with Canada and Mexico.

In a much-anticipated document sent to lawmakers, US Trade Representative Robert Lighthizer said he would seek to reduce the trade imbalance by improving access for US&nbsp;goods exported to Canada and Mexico under the three-nation pact.

For the first time in a US&nbsp;trade deal, the administration also said it wants an &quot;appropriate&quot; provision to deter currency manipulation by trading partners. The move appeared aimed at future trade deals rather than specifically at Canada and Mexico, which are not considered currency manipulators.

The 17-page document asserted that no country should manipulate its currency exchange rate to gain an unfair competitive advantage, an often-cited complaint about China in past years.

Shortly before the release of the document, President Donald Trump lashed out against trade deals and unfair trade practices, saying he would take more legal and regulatory steps during the next six months to protect American manufacturers.

Canadian Minister of Foreign Affairs Chrystia Freeland said the US&nbsp;list was &quot;part of its internal process&quot; although a source familiar with the Canadian government&#39;s thinking said the document was &quot;not earth shattering.&quot;

The source said officials from the United States, Mexico and Canada would meet in Washington on Tuesday to discuss logistics of the talks. No date has been announced for the NAFTA talks, but they are expected in mid-August.

Mexico&#39;s economy ministry said in a statement it would work &quot;to achieve a constructive negotiation process that will allow trade and investment flows to increase and consolidates cooperation and economic integration to strengthen North American competitiveness&quot;.

Speaking on condition of anonymity, a senior Mexican government official said the list of priorities was &quot;not as bad as I was expecting&quot; and welcomed that the United States was not pushing to impose punitive tariffs, as Trump has threatened.

Trade experts have argued that shrinking the yawning US&nbsp;trade deficit will not be achieved through trade deals but rather by boosting US&nbsp;savings.

&quot;The first bullet point shows their preoccupation with bilateral trade deficits and that&#39;s unfortunate,&quot; said Chad Bown, a senior fellow and trade expert at the Peterson Institute for International Economics. &quot;There&#39;s not much that trade policy and trade agreements can do to change those. That&#39;s more of a macroeconomic issue.&quot;

Among the priorities, Lighthizer said the administration would seek to eliminate a trade dispute mechanism that has largely prohibited the United States from pursuing anti-dumping and anti-subsidy cases against Canadian and Mexican firms.

There was no mention of active disputes between the United States and Canada over softwood lumber and dairy products, but the document targeted a range of agricultural non-tariff barriers, including subsidies and unfair pricing structures, that are currently at the heart of those standoffs.

USTR said it would seek to strengthen NAFTA&#39;s rules of origin to ensure that the pact&#39;s benefits do not go to outside countries and to &quot;incentivize&quot; the sourcing of US&nbsp;goods. It offered no details on such incentives and did not specify how much of a product&#39;s components must originate from NAFTA countries.

&nbsp;

AUTOMAKERS SUPPORT STANCE

Matt Blunt, president of the American Automotive Policy Council, a group representing US&nbsp;automakers, welcomed the decision to include objectives on the removal of regulatory barriers and the provision on currency manipulation.

A spokesman for Ford Motor Co said: &quot;Foreign currency manipulation is the 21st century trade barrier, and we strongly support the inclusion of this top-tier issue in the US&nbsp;negotiating objectives for NAFTA.&quot;

The document also outlined plans to upgrade standards for labor and the environment and govern digital trade. Canada and Mexico have already agreed to upgrade these areas as part of the defunct Trans-Pacific Partnership trade deal.

Earlier on Monday, AFL-CIO President Richard Trumka said NAFTA had been an &quot;unequivocal failure&quot; and should be completely renegotiated although he stopped short of calling on Trump to abandon the agreement if there was no agreement.

&quot;We will do everything we can to make this a good agreement and to hold the president at his word and make sure we get a renegotiation,&quot; the head of the 12.5-million-strong union umbrella group told a conference call with reporters.

&quot;If it comes out that it is not a good deal, no deal is better than a bad deal,&quot; Trumka said.

NAFTA has quadrupled trade among the three countries, surpassing $1 trillion in 2015, but the US&nbsp;trade deficit with Mexico exceeded $63 billion last year.

For the first time in a US?trade deal, the Trump administration also said it wants to deter trade partners from currency manipulation

The United States on Monday launched the first salvo in the renegotiation of the 23-year-old North American Free Trade Agreement (NAFTA), saying its top priority for the talks was shrinking the US trade deficit with Canada and Mexico. In a much-anticipated document sent to lawmakers, US Trade Representative Robert Lighthizer said he would seek to reduce the trade imbalance by improving access for US goods exported to Canada and Mexico under the three-nation pact. For the first time in a US trade deal, the administration also said it wants an "appropriate" provision to deter currency manipulation by trading partners. The move appeared aimed at future trade deals rather than specifically at Canada and Mexico, which are not considered currency manipulators. The 17-page document asserted that no country should manipulate its currency exchange rate to gain an unfair competitive advantage, an often-cited complaint about China in past years. Shortly before the release of the document, President Donald Trump lashed out against trade deals and unfair trade practices, saying he would take more legal and regulatory steps during the next six months to protect American manufacturers. Canadian Minister of Foreign Affairs Chrystia Freeland said the US list was "part of its internal process" although a source familiar with the Canadian government's thinking said the document was "not earth shattering." The source said officials from the United States, Mexico and Canada would meet in Washington on Tuesday to discuss logistics of the talks. No date has been announced for the NAFTA talks, but they are expected in mid-August. Mexico's economy ministry said in a statement it would work "to achieve a constructive negotiation process that will allow trade and investment flows to increase and consolidates cooperation and economic integration to strengthen North American competitiveness". Speaking on condition of anonymity, a senior Mexican government official said the list of priorities was "not as bad as I was expecting" and welcomed that the United States was not pushing to impose punitive tariffs, as Trump has threatened. Trade experts have argued that shrinking the yawning US trade deficit will not be achieved through trade deals but rather by boosting US savings. "The first bullet point shows their preoccupation with bilateral trade deficits and that's unfortunate," said Chad Bown, a senior fellow and trade expert at the Peterson Institute for International Economics. "There's not much that trade policy and trade agreements can do to change those. That's more of a macroeconomic issue." Among the priorities, Lighthizer said the administration would seek to eliminate a trade dispute mechanism that has largely prohibited the United States from pursuing anti-dumping and anti-subsidy cases against Canadian and Mexican firms. There was no mention of active disputes between the United States and Canada over softwood lumber and dairy products, but the document targeted a range of agricultural non-tariff barriers, including subsidies and unfair pricing structures, that are currently at the heart of those standoffs. USTR said it would seek to strengthen NAFTA's rules of origin to ensure that the pact's benefits do not go to outside countries and to "incentivize" the sourcing of US goods. It offered no details on such incentives and did not specify how much of a product's components must originate from NAFTA countries. AUTOMAKERS SUPPORT STANCE Matt Blunt, president of the American Automotive Policy Council, a group representing US automakers, welcomed the decision to include objectives on the removal of regulatory barriers and the provision on currency manipulation. A spokesman for Ford Motor Co said: "Foreign currency manipulation is the 21st century trade barrier, and we strongly support the inclusion of this top-tier issue in the US negotiating objectives for NAFTA." The document also outlined plans to upgrade standards for labor and the environment and govern digital trade. Canada and Mexico have already agreed to upgrade these areas as part of the defunct Trans-Pacific Partnership trade deal. Earlier on Monday, AFL-CIO President Richard Trumka said NAFTA had been an "unequivocal failure" and should be completely renegotiated although he stopped short of calling on Trump to abandon the agreement if there was no agreement. "We will do everything we can to make this a good agreement and to hold the president at his word and make sure we get a renegotiation," the head of the 12.5-million-strong union umbrella group told a conference call with reporters. "If it comes out that it is not a good deal, no deal is better than a bad deal," Trumka said. NAFTA has quadrupled trade among the three countries, surpassing $1 trillion in 2015, but the US trade deficit with Mexico exceeded $63 billion last year.

US makes lower trade deficit top priority in NAFTA talks

The United States, Russia and Jordan have reached a crucial ceasefire and &quot;de-escalation agreement&quot;&nbsp;in southwestern Syria, US secretary of state Rex Tillerson said on Friday.

Tillerson announced the deal after a meeting&nbsp;between US President Donald Trump and Russian President Vladimir Putin on the sidelines of the G20 summit in Hamburg.&nbsp;

The ceasefire&nbsp;goes into effect on Sunday,&nbsp;Russian foreign minister Sergei Lavrov, who was also present at the meeting, said.&nbsp;

Tillerson said the area covered by the ceasefire affects Jordan&rsquo;s security and is a &ldquo;very complicated part of the Syrian battlefield&rdquo;.

&ldquo;It is (a) well-defined agreement on who will secure this area,&rdquo; he told the media,&nbsp;

Prior to leaving for the G20 summit in Hamburg, Germany, Tillerson had said the US was prepared to discuss joint&nbsp;efforts with Russia in order to stabilise the situation in Syria,&nbsp;

(with inputs from Reuters)

&nbsp;

The United States, Russia and Jordan have brokered a crucial ceasefire deal in southwest Syria that goes into effect on Sunday

The United States, Russia and Jordan have reached a crucial ceasefire and "de-escalation agreement" in southwestern Syria, US secretary of state Rex Tillerson said on Friday. Tillerson announced the deal after a meeting between US President Donald Trump and Russian President Vladimir Putin on the sidelines of the G20 summit in Hamburg. The ceasefire goes into effect on Sunday, Russian foreign minister Sergei Lavrov, who was also present at the meeting, said. Tillerson said the area covered by the ceasefire affects Jordan’s security and is a “very complicated part of the Syrian battlefield”. “It is (a) well-defined agreement on who will secure this area,” he told the media, Prior to leaving for the G20 summit in Hamburg, Germany, Tillerson had said the US was prepared to discuss joint efforts with Russia in order to stabilise the situation in Syria, (with inputs from Reuters)

US, Russia and Jordan reach ceasefire deal for southwest Syria

US President Donald Trump said Friday he still wants Mexico to pay for a planned border wall, as he met his Mexican counterpart for the first time as head of state.

Asked at the start of the meeting with Enrique Pena Nieto on the sidelines of the G20 summit in Hamburg, Germany, if he still wanted Mexico to cough up the cash, Trump declared: &quot;Absolutely&quot;.

But Mexican Foreign Minister Luis Videgaray, who took part in the meeting, said the wall issue -- as agreed -- did not come up in the actual talks, and that he and Pena Nieto did not even hear Trump&#39;s comment.

&quot;It wasn&rsquo;t part of our conversation (with Trump),&quot; he told Mexico&rsquo;s Radio Formula.

&quot;We didn&#39;t touch on that subject in our conversation, which lasted about half an hour -- partly because we have a well-known, significant difference of opinion on that,&quot; he said.

&quot;Both sides had a prior agreement that the issue would not be on the agenda. If he made that comment, he must have made it very quietly, because I didn&#39;t hear it.&quot;

Building a wall between Mexico and the United States to stop illegal immigration and the inflow of drugs -- and Mexico paying for it -- was a signature campaign pledge of Trump&#39;s in last year&#39;s election.

The Trump administration has yet to make serious headway on getting it built or even on who will foot the hefty bill for the 3,200-kilometre (2,000-mile) barrier.

Under pressure from Democrats, the US Congress has so far refused to commit funding, agreeing only to finance maintenance on existing parts of a border fence.

The real battle will play out starting in October when 2018 budget negotiations begin in earnest.

Last month Trump suggested covering the wall with solar panels and to use the energy to cover some of the construction costs.

&quot;And this way, Mexico will have to pay much less money. And that&#39;s good. Right?&quot;, Trump told a crowd in Texas on June 22. &quot;Pretty good imagination, right? My idea!&quot;

US-Mexico relations

US-Mexican relations have meanwhile nosedived since Trump entered the White House in January.

In January, Pena Nieto cancelled a trip to Washington in response to Trump&#39;s insistence on the issue, plunging the countries&#39; relations into their biggest crisis in decades.

In addition Trump has angered Mexico with attacks on Mexican immigrants as &quot;criminals, drug dealers and rapists&quot; and his insistence on holding tough new trade negotiations with its southern neighbour.

Since the cancellation of the trip, the two leaders have since spoken by phone, and a series of high-level meetings between the two countries have eased the tension.

Trump first met Pena Nieto in August 2016 when he was still a presidential candidate.

In their Hamburg encounter Friday, before the comment about the wall, both presidents delivered statements with Trump hailing the &quot;successful day&quot; at the G20 so far.

&quot;We&#39;re negotiating NAFTA (the North American Free Trade Agreement) and some other things with Mexico and we&#39;ll see how it all turns out, but I think we&#39;ve made very good progress,&quot; Trump said.

Pena Nieto, through a translator, said that the meeting will help the two countries continue a &quot;flowing dialogue&quot;, in particular &quot;for the security of both nations, especially for our borders.&quot;

The Mexican president noted that &quot;migration&quot; is an issue that has &quot;occupied&quot; both administrations. He added that it was a &quot;co-responsibility to deal with organised crime issues.&quot;

Trump made the comments in response to a question he was asked at the start of the meeting. Nieto was sitting next to him

US President Donald Trump said Friday he still wants Mexico to pay for a planned border wall, as he met his Mexican counterpart for the first time as head of state. Asked at the start of the meeting with Enrique Pena Nieto on the sidelines of the G20 summit in Hamburg, Germany, if he still wanted Mexico to cough up the cash, Trump declared: "Absolutely". But Mexican Foreign Minister Luis Videgaray, who took part in the meeting, said the wall issue -- as agreed -- did not come up in the actual talks, and that he and Pena Nieto did not even hear Trump's comment. "It wasn’t part of our conversation (with Trump)," he told Mexico’s Radio Formula. "We didn't touch on that subject in our conversation, which lasted about half an hour -- partly because we have a well-known, significant difference of opinion on that," he said. "Both sides had a prior agreement that the issue would not be on the agenda. If he made that comment, he must have made it very quietly, because I didn't hear it." Building a wall between Mexico and the United States to stop illegal immigration and the inflow of drugs -- and Mexico paying for it -- was a signature campaign pledge of Trump's in last year's election. The Trump administration has yet to make serious headway on getting it built or even on who will foot the hefty bill for the 3,200-kilometre (2,000-mile) barrier. Under pressure from Democrats, the US Congress has so far refused to commit funding, agreeing only to finance maintenance on existing parts of a border fence. The real battle will play out starting in October when 2018 budget negotiations begin in earnest. Last month Trump suggested covering the wall with solar panels and to use the energy to cover some of the construction costs. "And this way, Mexico will have to pay much less money. And that's good. Right?", Trump told a crowd in Texas on June 22. "Pretty good imagination, right? My idea!" US-Mexico relations US-Mexican relations have meanwhile nosedived since Trump entered the White House in January. In January, Pena Nieto cancelled a trip to Washington in response to Trump's insistence on the issue, plunging the countries' relations into their biggest crisis in decades. In addition Trump has angered Mexico with attacks on Mexican immigrants as "criminals, drug dealers and rapists" and his insistence on holding tough new trade negotiations with its southern neighbour. Since the cancellation of the trip, the two leaders have since spoken by phone, and a series of high-level meetings between the two countries have eased the tension. Trump first met Pena Nieto in August 2016 when he was still a presidential candidate. In their Hamburg encounter Friday, before the comment about the wall, both presidents delivered statements with Trump hailing the "successful day" at the G20 so far. "We're negotiating NAFTA (the North American Free Trade Agreement) and some other things with Mexico and we'll see how it all turns out, but I think we've made very good progress," Trump said. Pena Nieto, through a translator, said that the meeting will help the two countries continue a "flowing dialogue", in particular "for the security of both nations, especially for our borders." The Mexican president noted that "migration" is an issue that has "occupied" both administrations. He added that it was a "co-responsibility to deal with organised crime issues."

G20: Trump says he 'absolutely' wants Mexico to pay for border wall in meeting with President Nieto

US President Donald Trump and Russian President Vladimir Putin are set to size each other up in person for the first time on Friday in what promises to be the most highly anticipated meeting on the sidelines of the G20 summit.

Trump has said he wants to find ways to work with Putin, a goal made more difficult by sharp differences over Russia&#39;s actions in Syria and Ukraine, and allegations Moscow meddled in the 2016 US&nbsp;presidential election.

That means every facial expression and physical gesture will be analysed as much as any words the two leaders utter as the world tries to read how well Trump, a real estate magnate and former reality television star, gets along with Putin, a former spy.

The fear is that the Republican president, a political novice whose team is still developing its Russia policy, will be less prepared than Putin, who has dealt with the past two US&nbsp;presidents and scores of other world leaders.

&quot;There&#39;s nothing ... the Kremlin would like to see more than a (US) president who will settle for a grip and a grin and walk away saying that he had this fabulous meeting with the Kremlin autocrat,&quot; Representative Adam Schiff, the top Democrat on the House of Representatives&#39; Intelligence Committee, said in an interview on MSNBC.

As investigations at home continue into whether there was any collusion between Trump&#39;s presidential campaign and Russia the US president has come under pressure to take a hard line against the Kremlin.

Moscow has denied any interference and Trump says his campaign did not collude with Russia.

On Thursday, Trump won praise from at least one Republican hawk in the US&nbsp;Congress after his speech in Warsaw in which he urged Russia to stop its &quot;destabilising activities&quot; and end its support for Syria and Iran.

&quot;This is a great start to an important week of American foreign policy,&quot; said Republican Senator Lindsey Graham, who has often been critical of Trump on security issues.

But earlier in the day, Trump declined to say definitively whether he believed US&nbsp;intelligence officials who have said that Russia interfered in the 2016 election.

&quot;I think it was Russia but I think it was probably other people and/or countries, and I see nothing wrong with that statement. Nobody really knows. Nobody really knows for sure,&rdquo; Trump said at a news conference, before slamming Democratic former President Barack Obama for not doing more to stop hacking.

Senators&#39; concerns&nbsp;

Ahead of Trump&rsquo;s meeting with Putin, three US senators wrote to Trump to express &ldquo;deep concern&rdquo; about reports that his administration planned to discuss the return to Russia of diplomatic compounds in Maryland and New York that were seized by the Obama administration last year in response to alleged Russian election meddling.

Republican Senators Johnny Isakson and Marco Rubio and Democratic Senator Jeanne Shaheen said returning the facilities would &quot;embolden&quot; Putin and encourage further efforts by Russia to interfere in Western elections. All three are on the Senate Foreign Relations Committee.

The White House declined to offer details on what Trump would request of Putin and what he might offer in exchange for cooperation.

US&nbsp;Secretary of State Rex Tillerson said Trump wanted to talk about how the two countries can work together to stabilise war-ravaged Syria.

&quot;The United States is prepared to explore the possibility of establishing with Russia joint mechanisms for ensuring stability, including no-fly zones, on-the-ground ceasefire observers, and coordinated delivery of humanitarian assistance,&quot; Tillerson said before leaving the United States to join Trump in Germany.

Trump was also grappling with a response to North Korea&#39;s successful test of an intercontinental ballistic missile, which analysts say had a long enough range to reach Alaska.

Curbing Pyongyang&#39;s nuclear ambitions has been Trump&#39;s most pressing foreign policy priority, and he met with leaders from Japan and South Korea on Thursday evening to discuss it. He is also slated to meet with Chinese President Xi Jinping at the G20.

&quot;I&rsquo;d like to see the president figure out how to engage Russia on North Korea,&rdquo; said Representative Francis Rooney, a Republican from Florida who is on the House Foreign Affairs Committee.

&quot;What I suggested to the president here a while back was that since we have all these conflicting issues about Russia right now and we&rsquo;re still reeling from the fact that they took Crimea, maybe this is an opportunity to reset the Russia relationship in a positive manner,&rdquo; Rooney said in an interview.

Ahead of Trump?s meeting with Putin, three US senators wrote to Trump to express 'deep concern'?about reports that his administration planned to discuss the return to Russia of diplomatic compounds in Maryland and New York that were seized by the Obama administration last year in response to alleged Russian election meddling

US President Donald Trump and Russian President Vladimir Putin are set to size each other up in person for the first time on Friday in what promises to be the most highly anticipated meeting on the sidelines of the G20 summit. Trump has said he wants to find ways to work with Putin, a goal made more difficult by sharp differences over Russia's actions in Syria and Ukraine, and allegations Moscow meddled in the 2016 US presidential election. That means every facial expression and physical gesture will be analysed as much as any words the two leaders utter as the world tries to read how well Trump, a real estate magnate and former reality television star, gets along with Putin, a former spy. The fear is that the Republican president, a political novice whose team is still developing its Russia policy, will be less prepared than Putin, who has dealt with the past two US presidents and scores of other world leaders. "There's nothing ... the Kremlin would like to see more than a (US) president who will settle for a grip and a grin and walk away saying that he had this fabulous meeting with the Kremlin autocrat," Representative Adam Schiff, the top Democrat on the House of Representatives' Intelligence Committee, said in an interview on MSNBC. As investigations at home continue into whether there was any collusion between Trump's presidential campaign and Russia the US president has come under pressure to take a hard line against the Kremlin. Moscow has denied any interference and Trump says his campaign did not collude with Russia. On Thursday, Trump won praise from at least one Republican hawk in the US Congress after his speech in Warsaw in which he urged Russia to stop its "destabilising activities" and end its support for Syria and Iran. "This is a great start to an important week of American foreign policy," said Republican Senator Lindsey Graham, who has often been critical of Trump on security issues. But earlier in the day, Trump declined to say definitively whether he believed US intelligence officials who have said that Russia interfered in the 2016 election. "I think it was Russia but I think it was probably other people and/or countries, and I see nothing wrong with that statement. Nobody really knows. Nobody really knows for sure,” Trump said at a news conference, before slamming Democratic former President Barack Obama for not doing more to stop hacking. Senators' concerns Ahead of Trump’s meeting with Putin, three US senators wrote to Trump to express “deep concern” about reports that his administration planned to discuss the return to Russia of diplomatic compounds in Maryland and New York that were seized by the Obama administration last year in response to alleged Russian election meddling. Republican Senators Johnny Isakson and Marco Rubio and Democratic Senator Jeanne Shaheen said returning the facilities would "embolden" Putin and encourage further efforts by Russia to interfere in Western elections. All three are on the Senate Foreign Relations Committee. The White House declined to offer details on what Trump would request of Putin and what he might offer in exchange for cooperation. US Secretary of State Rex Tillerson said Trump wanted to talk about how the two countries can work together to stabilise war-ravaged Syria. "The United States is prepared to explore the possibility of establishing with Russia joint mechanisms for ensuring stability, including no-fly zones, on-the-ground ceasefire observers, and coordinated delivery of humanitarian assistance," Tillerson said before leaving the United States to join Trump in Germany. Trump was also grappling with a response to North Korea's successful test of an intercontinental ballistic missile, which analysts say had a long enough range to reach Alaska. Curbing Pyongyang's nuclear ambitions has been Trump's most pressing foreign policy priority, and he met with leaders from Japan and South Korea on Thursday evening to discuss it. He is also slated to meet with Chinese President Xi Jinping at the G20. "I’d like to see the president figure out how to engage Russia on North Korea,” said Representative Francis Rooney, a Republican from Florida who is on the House Foreign Affairs Committee. "What I suggested to the president here a while back was that since we have all these conflicting issues about Russia right now and we’re still reeling from the fact that they took Crimea, maybe this is an opportunity to reset the Russia relationship in a positive manner,” Rooney said in an interview.

All eyes on Trump-Putin meeting at G20

The United States and South Korea on Wednesday conducted a joint military exercise &ldquo;as a strong message of warning&rdquo; to North Korea after it successfully launched its first intercontinental ballistic missile (ICBM). 
&nbsp; 
The live-fire training was held at the order of South Korean President Moon Jae-In, Yonhap news agency said. 
&nbsp; 
The missiles deployed in the drill feature &quot;deep strike precision capability,&quot; enabling the United States and South Korea &quot;to engage the full array of time critical targets under all weather conditions,&quot; the US military&nbsp;

The UN Security Council will hold an emergency meeting today, AFP cited diplomats as saying.

UN Secretary-General Antonio Guterres strongly condemned the launch, warning that it &quot;constitutes a dangerous escalation of the situation&quot;.&nbsp;

US secretary of state, Rex Tillerson, confirmed North Korea had conducted its first test of an intercontinental ballistic missile (ICBM) and called for global action against the regime. 
&nbsp; 
&quot;The United States strongly condemns North Korea&#39;s launch of an intercontinental ballistic missile. Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world,&quot; Tillerson said. 
&nbsp; 
&quot;As we, along with others, have made clear, we will never accept a nuclear-armed North Korea,&quot; he added. 
&nbsp; 
North&rsquo;s leader Kim Jong-Un said the missile test was a 4th of July gift to &ldquo;American bastards&rdquo;. 
&nbsp; 
North Korea&#39;s official news agency announced that the ICBM is capable of carrying a &quot;large, heavy nuclear warhead&quot; that can survive re-entry into the Earth&#39;s atmosphere. 
&nbsp; 
The North&#39;s Academy of Defence Science, which developed the missile, said it reached an altitude of 2,802 kilometres and flew 933 kilometres, calling it the &quot;final gate to rounding off the state nuclear force.&quot; 
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Some experts said such a missile could reach Alaska or go even further toward the US mainland. But there was widespread skepticism of the North&#39;s claim of the missile being able to &quot;strike any place in the world.&quot;

(With AFP inputs) 
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The UN Security Council will hold an emergency meeting today

The United States and South Korea on Wednesday conducted a joint military exercise “as a strong message of warning” to North Korea after it successfully launched its first intercontinental ballistic missile (ICBM). The live-fire training was held at the order of South Korean President Moon Jae-In, Yonhap news agency said. The missiles deployed in the drill feature "deep strike precision capability," enabling the United States and South Korea "to engage the full array of time critical targets under all weather conditions," the US military The UN Security Council will hold an emergency meeting today, AFP cited diplomats as saying. UN Secretary-General Antonio Guterres strongly condemned the launch, warning that it "constitutes a dangerous escalation of the situation". US secretary of state, Rex Tillerson, confirmed North Korea had conducted its first test of an intercontinental ballistic missile (ICBM) and called for global action against the regime. "The United States strongly condemns North Korea's launch of an intercontinental ballistic missile. Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world," Tillerson said. "As we, along with others, have made clear, we will never accept a nuclear-armed North Korea," he added. North’s leader Kim Jong-Un said the missile test was a 4th of July gift to “American bastards”. North Korea's official news agency announced that the ICBM is capable of carrying a "large, heavy nuclear warhead" that can survive re-entry into the Earth's atmosphere. The North's Academy of Defence Science, which developed the missile, said it reached an altitude of 2,802 kilometres and flew 933 kilometres, calling it the "final gate to rounding off the state nuclear force." Some experts said such a missile could reach Alaska or go even further toward the US mainland. But there was widespread skepticism of the North's claim of the missile being able to "strike any place in the world." (With AFP inputs)

US, South Korea conduct joint military drill in response to North Korea's ICBM launch

Russia and China joined diplomatic forces on Tuesday and called on North Korea, South Korea and the United States to sign up to a Chinese de-escalation plan designed to defuse tensions around Pyongyang&#39;s missile programme.

The plan would see North Korea suspend its ballistic missile programme and the United States and South Korea simultaneously call a moratorium on large-scale missile exercises, both moves aimed at paving the way for multilateral talks.

The initiative was set out in a joint statement from the Russian and Chinese foreign ministries issued shortly after President Vladimir Putin and Chinese President Xi Jinping held wide-ranging talks in the Kremlin.

&quot;The situation in the region affects the national interests of both countries,&quot; the joint statement said. &quot;Russia and China will work in close coordination to advance a solution to the complex problem of the Korean Peninsula in every possible way.&quot;

North Korea said on Tuesday it had successfully test-fired an intercontinental ballistic missile (ICBM) for the first time, which flew a trajectory that experts said could allow a weapon to hit the US&nbsp;state of Alaska.

Russia and China both share a land border with North Korea and have been involved in past efforts to try to calm tensions between Pyongyang and the West.

Moscow and Beijing used the same joint declaration to call on Washington to immediately halt deployment of its THAAD anti-missile system in South Korea, a move Washington says is necessitated by the North Korean missile threat.

The statement said Washington was using North Korea as a pretext to expand its military infrastructure in Asia and risked upsetting the strategic balance of power in the area.

&quot;The deployment ... of THAAD will cause serious harm to the strategic security interests of regional states, including Russia and China,&quot; the statement said.

&quot;Russia and China oppose the deployment of such systems and call on the relevant countries to immediately halt and cancel the process of deployment.&quot;

The plan would see North Korea suspend its ballistic missile programme and the US & South Korea simultaneously stop large-scale missile exercises

Russia and China joined diplomatic forces on Tuesday and called on North Korea, South Korea and the United States to sign up to a Chinese de-escalation plan designed to defuse tensions around Pyongyang's missile programme. The plan would see North Korea suspend its ballistic missile programme and the United States and South Korea simultaneously call a moratorium on large-scale missile exercises, both moves aimed at paving the way for multilateral talks. The initiative was set out in a joint statement from the Russian and Chinese foreign ministries issued shortly after President Vladimir Putin and Chinese President Xi Jinping held wide-ranging talks in the Kremlin. "The situation in the region affects the national interests of both countries," the joint statement said. "Russia and China will work in close coordination to advance a solution to the complex problem of the Korean Peninsula in every possible way." North Korea said on Tuesday it had successfully test-fired an intercontinental ballistic missile (ICBM) for the first time, which flew a trajectory that experts said could allow a weapon to hit the US state of Alaska. Russia and China both share a land border with North Korea and have been involved in past efforts to try to calm tensions between Pyongyang and the West. Moscow and Beijing used the same joint declaration to call on Washington to immediately halt deployment of its THAAD anti-missile system in South Korea, a move Washington says is necessitated by the North Korean missile threat. The statement said Washington was using North Korea as a pretext to expand its military infrastructure in Asia and risked upsetting the strategic balance of power in the area. "The deployment ... of THAAD will cause serious harm to the strategic security interests of regional states, including Russia and China," the statement said. "Russia and China oppose the deployment of such systems and call on the relevant countries to immediately halt and cancel the process of deployment."

Russia and China tell N Korea, US and S Korea to embrace de-escalation plan

A tentative deal to cut nearly $600 million from the UN peacekeeping budget was reached on Wednesday, capping weeks of tough negotiations over US demands for a sharp reduction in costs, UN diplomats said.

Under the deal agreed by a budget committee of the General Assembly, the United Nations will spend $7.3 billion on peacekeeping in the coming year, down from the current $7.87 billion -- roughly a seven percent cut -- according to diplomats familiar with the negotiations.

The United States, the biggest financial contributor to UN peacekeeping, had sought a nearly $1 billion cut to the bill and the European Union had also pushed for savings to bring costs down to $7.3 billion.

Hardest hit by the cuts will be the UN missions in Sudan&#39;s troubled region of Darfur and in the Democratic Republic of Congo, the two costliest operations with budgets that run over $1 billion.

The closure of the UN mission in Haiti in October will also generate savings.

A Security Council diplomat who spoke on condition of anonymity said, however, there will be &quot;cuts across the board&quot; in the 13 missions as a result of US pressure.

But French Ambassador Francois Delattre said the cuts will allow the missions to continue their peacekeeping work &quot;while being more efficient.&quot;

&quot;The savings proposed in the budget have been carefully targeted,&quot; Delattre told AFP.

Washington pays 28.5 percent of the peacekeeping budget and 22 percent of the UN&#39;s core budget of $5.4 billion.

US Ambassador Nikki Haley wants to bring the US share of the peacekeeping budget down to 25 percent. China, Japan, Germany and France are the four biggest peacekeeping financial backers after the United States.

The budget deal falls short of what UN Secretary-General Antonio Guterres was seeking. &nbsp;He had put forward a budget of $7.97 billion for the year which runs from July 1 to June 30, 2018.

It also drops below the budget proposal of African countries which had sought $7.7 billion.

The deal is expected to be approved by the UN General Assembly on Friday.&nbsp;

Big cuts to Darfur mission

The Security Council is expected to vote as early as Thursday on significant cuts to the 17,000-strong joint African Union-UN mission in Darfur known as UNAMID.

Britain on Wednesday circulated a draft resolution that provides for a two-stage drawdown over the next 12 months, in line with the recommendations of a joint AU-UN report released last month.

The measure would cut UNAMID force levels to reach 8,735 troops and 2,500 police by June 2018, a 44 percent cut in military personnel and nearly 30 percent in police, according to the draft text obtained by AFP.

The drawdown, however, could be reviewed if the Sudanese government fails to ensure protection in those areas from where the peacekeepers will withdraw.

Under the proposed measure, Guterres will report to the council after six months on whether &quot;conditions on the ground remain conducive to further reductions.&quot;

The draft resolution welcomes a &quot;reduction in military confrontations between government forces and rebel groups,&quot; but rights groups maintain that the conflict in Darfur is far from over.

Human Rights Watch has criticised the proposed cuts as &quot;misguided,&quot; saying civilians in Darfur still need protection.

Darfur has been engulfed in conflict since 2003, when ethnic minority insurgents mounted a rebellion against President Omar al-Bashir, complaining that his Arab-dominated government was marginalising the region.

The council is expected to vote this week on the UN mission in Mali, but that peace operation is not expected to face drastic cuts.

(AFP)

The United States, the biggest financial contributor to UN peacekeeping, had sought a nearly $1 billion cut to the bill

A tentative deal to cut nearly $600 million from the UN peacekeeping budget was reached on Wednesday, capping weeks of tough negotiations over US demands for a sharp reduction in costs, UN diplomats said. Under the deal agreed by a budget committee of the General Assembly, the United Nations will spend $7.3 billion on peacekeeping in the coming year, down from the current $7.87 billion -- roughly a seven percent cut -- according to diplomats familiar with the negotiations. The United States, the biggest financial contributor to UN peacekeeping, had sought a nearly $1 billion cut to the bill and the European Union had also pushed for savings to bring costs down to $7.3 billion. Hardest hit by the cuts will be the UN missions in Sudan's troubled region of Darfur and in the Democratic Republic of Congo, the two costliest operations with budgets that run over $1 billion. The closure of the UN mission in Haiti in October will also generate savings. A Security Council diplomat who spoke on condition of anonymity said, however, there will be "cuts across the board" in the 13 missions as a result of US pressure. But French Ambassador Francois Delattre said the cuts will allow the missions to continue their peacekeeping work "while being more efficient." "The savings proposed in the budget have been carefully targeted," Delattre told AFP. Washington pays 28.5 percent of the peacekeeping budget and 22 percent of the UN's core budget of $5.4 billion. US Ambassador Nikki Haley wants to bring the US share of the peacekeeping budget down to 25 percent. China, Japan, Germany and France are the four biggest peacekeeping financial backers after the United States. The budget deal falls short of what UN Secretary-General Antonio Guterres was seeking. He had put forward a budget of $7.97 billion for the year which runs from July 1 to June 30, 2018. It also drops below the budget proposal of African countries which had sought $7.7 billion. The deal is expected to be approved by the UN General Assembly on Friday. Big cuts to Darfur mission The Security Council is expected to vote as early as Thursday on significant cuts to the 17,000-strong joint African Union-UN mission in Darfur known as UNAMID. Britain on Wednesday circulated a draft resolution that provides for a two-stage drawdown over the next 12 months, in line with the recommendations of a joint AU-UN report released last month. The measure would cut UNAMID force levels to reach 8,735 troops and 2,500 police by June 2018, a 44 percent cut in military personnel and nearly 30 percent in police, according to the draft text obtained by AFP. The drawdown, however, could be reviewed if the Sudanese government fails to ensure protection in those areas from where the peacekeepers will withdraw. Under the proposed measure, Guterres will report to the council after six months on whether "conditions on the ground remain conducive to further reductions." The draft resolution welcomes a "reduction in military confrontations between government forces and rebel groups," but rights groups maintain that the conflict in Darfur is far from over. Human Rights Watch has criticised the proposed cuts as "misguided," saying civilians in Darfur still need protection. Darfur has been engulfed in conflict since 2003, when ethnic minority insurgents mounted a rebellion against President Omar al-Bashir, complaining that his Arab-dominated government was marginalising the region. The council is expected to vote this week on the UN mission in Mali, but that peace operation is not expected to face drastic cuts. (AFP)

UN agrees to cuts in Peacekeeping budget

The White House said Monday that Syria appears to be planning another chemical weapons attack.&nbsp;

It also warned Syrian President Bashar al-Assad that he would pay &quot;a heavy price&quot; if it carried out such an attack.&nbsp;

Reuters reported that a statement from the White House said preparations by Syria were similar to those undertaken before an April 4 chemical attack that killed dozens of civilians and prompted President Donald Trump to order a cruise missile strike on a Syrian air base.

After the chemical attack, Trump had ordered the firing of 59 Tomahawk cruise missiles at the Shayrat air base in Syria from where he said the attack had been launched.&nbsp;

At the time, US officials had described the strike as a &quot;one-off&quot;.&nbsp;

Trump&#39;s interventions in Syria however up the risk of armed conflict with Russia and Iran, Assad&#39;s two main backers.&nbsp;

Since the April strike, the US has hit&nbsp;Iranian-backed militia in Syria a number of times and also shot down a drone threatening US-led coalition forces.&nbsp;

Earlier this month, it also shot down a Syrian jet. 
&nbsp;

A statement from the White House said preparations by Syria were similar to those undertaken before an April 4 chemical attack that killed dozens of civilians

The White House said Monday that Syria appears to be planning another chemical weapons attack. It also warned Syrian President Bashar al-Assad that he would pay "a heavy price" if it carried out such an attack. Reuters reported that a statement from the White House said preparations by Syria were similar to those undertaken before an April 4 chemical attack that killed dozens of civilians and prompted President Donald Trump to order a cruise missile strike on a Syrian air base. After the chemical attack, Trump had ordered the firing of 59 Tomahawk cruise missiles at the Shayrat air base in Syria from where he said the attack had been launched. At the time, US officials had described the strike as a "one-off". Trump's interventions in Syria however up the risk of armed conflict with Russia and Iran, Assad's two main backers. Since the April strike, the US has hit Iranian-backed militia in Syria a number of times and also shot down a drone threatening US-led coalition forces. Earlier this month, it also shot down a Syrian jet.

US says Syria appears to be planning another chemical weapons attack

India and the US have called on Pakistan to stop its soil from being used as a terror launchpad, Indian foreign secretary S Jaishankar said at a Ministry of External Affairs media briefing after Prime Minister Narendra Modi met with President Donald Trump.&nbsp;

Jaishankar said India and the US, in a joint statement, have called on Pakistan to expeditiously bring to justice perpatrators of terror attacks like 26/11, Pathankot, and other cross-border attacks perpetrated by Pakistan-based terror groups.&nbsp;

Jaishankar added that the designation of Hizbul Mujahideen chief Syed Salahuddin as a &quot;global terrorist&quot; before the Modi-Trump meeting was &quot;a strong signal from the administration&quot;.&nbsp;

Watch video of the media briefing below:&nbsp;

<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/do2MWlq1dmk" width="560"></iframe>

Jaishankar added that terrorism was identified as a key challenge in the Trump-Modi meeting.&nbsp;

And that discussions were also held on the Nuclear Suppliers Group and the United Nations Security Council.&nbsp;

The meeting between the two leaders, said Jaishankar, was cordial, focused and open.&nbsp;

There was a great degree of ease, he said.&nbsp;

Both leaders emphasised the importance of free and fair trade, Jaishankar added.&nbsp;

Jaishankar also added that President Trump had accepted Prime Minister Modi&#39;s invitation to visit India.&nbsp;

But he said he had no further details about the possible visit at the moment.&nbsp;

Indian foreign secretary S Jaishankar said India and the US, in a joint statement, have called on Pakistan to expeditiously bring to justice perpatrators of terror attacks like 26/11 & Pathankot

India and the US have called on Pakistan to stop its soil from being used as a terror launchpad, Indian foreign secretary S Jaishankar said at a Ministry of External Affairs media briefing after Prime Minister Narendra Modi met with President Donald Trump. Jaishankar said India and the US, in a joint statement, have called on Pakistan to expeditiously bring to justice perpatrators of terror attacks like 26/11, Pathankot, and other cross-border attacks perpetrated by Pakistan-based terror groups. Jaishankar added that the designation of Hizbul Mujahideen chief Syed Salahuddin as a "global terrorist" before the Modi-Trump meeting was "a strong signal from the administration". Watch video of the media briefing below: Jaishankar added that terrorism was identified as a key challenge in the Trump-Modi meeting. And that discussions were also held on the Nuclear Suppliers Group and the United Nations Security Council. The meeting between the two leaders, said Jaishankar, was cordial, focused and open. There was a great degree of ease, he said. Both leaders emphasised the importance of free and fair trade, Jaishankar added. Jaishankar also added that President Trump had accepted Prime Minister Modi's invitation to visit India. But he said he had no further details about the possible visit at the moment.

India & US have called on Pakistan to stop its soil from being used as terror launchpad: MEA

Four Arab states currently boycotting Qatar for allegedly supporting terorrism have sent the country a lot of 13 demands, according to one of the countres&#39; officials who spoke to Reuters.

The&nbsp;boycott, launched on June 5, entails each of the&nbsp;countries&nbsp;cutting economic, diplomatic and travel ties with Doha The four nations who made the list of demands include&nbsp;Saudi Arabia, the United Arab Emirates (UAE), Egypt and Bahain.&nbsp;

&nbsp;

The list of demands

Reuters reports that the four nations demand that Qatar:

Close the TV station&nbsp;Al Jazeera.&nbsp;

Reduce&nbsp;their ties with Iran.

Close&nbsp;a Turkish military base in Qatar.&nbsp;

Declare that it is cutting off ties with terrorist, sectarian and ideological organisations like the Muslim Brotherhood, Islamic State, al Qaeda, Hezbollah, and Jabhat Fateh al Sham.&nbsp;

Must also surrender anybody designated as a terorrist on its territory.

Must stop interfering in the four countries&#39; domestic and foreign affairs&nbsp;

Stop&nbsp;giving Qatari nationality to citizens of the four countries

Pay reparations to these countries for any damage or costs incurred over the past few years because of Qatari policies, he added

More, if Qatar does agree to meet this list of demands, the four countries will monitor compliance with monthly reports in the first year, then&nbsp;three-month reports in the following year, then annual reports in the next decade, said an official to Reuters without offering further clarification.

&nbsp;

Qatar&#39;s response

Qatar has denied that they are guilty of what the four Arab nations accuse them of: Funding terorrism, creating regional instability &nbsp;and warming up to revolutionary theocracy Iran.

Earlier this week the foreign minister said Qatar would not negotiate with the four states unless they first lifted their measures. Reuters was not able to reach him for comment.&nbsp;

&nbsp;

What if Qatar says no?

The countries give Doha 10 days to comply, failing which the list becomes &quot;void&quot;, the official said without elaborating. This suggests that the&nbsp;offer to end the dispute in return for meeting the thirteen demands may&nbsp;no longer be on the table.

&nbsp;

How are others responding?

Donald Trump has called Qatar a &quot;high level sponsor of terrorism&quot;, but also offered to mediate to help these parties resolve their differences. Days after Trump plainly said&nbsp;Qatar sponsors terrorism, the US sold them $12 billion in weapons.

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The US accuses Qatar of supporting terrorism and then turns around and sells F-15 fighters, and continues to use the Al Udeid Air Base. Clearly politics is all very well but nothing can halt the business of America. WION brings you this report (WION)
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Turkey has so far taken Qatar&#39;s side. It has launched ships carrying aid in the form of food to Qatar, and yesterday sent a small a small group soldiers and even armoured vehicles. Turkey&#39;s president Tayyip Erdogan met with Saudi Arabia&#39;s leaders in an effort to calm the regional tension.&nbsp;

The concessions are not just numerous but large, and if Qatar agrees their compliance will be monitored closely for ten years

Four Arab states currently boycotting Qatar for allegedly supporting terorrism have sent the country a lot of 13 demands, according to one of the countres' officials who spoke to Reuters. The boycott, launched on June 5, entails each of the countries cutting economic, diplomatic and travel ties with Doha The four nations who made the list of demands include Saudi Arabia, the United Arab Emirates (UAE), Egypt and Bahain. The list of demands Reuters reports that the four nations demand that Qatar: Close the TV station Al Jazeera. Reduce their ties with Iran. Close a Turkish military base in Qatar. Declare that it is cutting off ties with terrorist, sectarian and ideological organisations like the Muslim Brotherhood, Islamic State, al Qaeda, Hezbollah, and Jabhat Fateh al Sham. Must also surrender anybody designated as a terorrist on its territory. Must stop interfering in the four countries' domestic and foreign affairs Stop giving Qatari nationality to citizens of the four countries Pay reparations to these countries for any damage or costs incurred over the past few years because of Qatari policies, he added More, if Qatar does agree to meet this list of demands, the four countries will monitor compliance with monthly reports in the first year, then three-month reports in the following year, then annual reports in the next decade, said an official to Reuters without offering further clarification. Qatar's response Qatar has denied that they are guilty of what the four Arab nations accuse them of: Funding terorrism, creating regional instability and warming up to revolutionary theocracy Iran. Earlier this week the foreign minister said Qatar would not negotiate with the four states unless they first lifted their measures. Reuters was not able to reach him for comment. What if Qatar says no? The countries give Doha 10 days to comply, failing which the list becomes "void", the official said without elaborating. This suggests that the offer to end the dispute in return for meeting the thirteen demands may no longer be on the table. How are others responding? Donald Trump has called Qatar a "high level sponsor of terrorism", but also offered to mediate to help these parties resolve their differences. Days after Trump plainly said Qatar sponsors terrorism, the US sold them $12 billion in weapons. The US accuses Qatar of supporting terrorism and then turns around and sells F-15 fighters, and continues to use the Al Udeid Air Base. Clearly politics is all very well but nothing can halt the business of America. WION brings you this report (WION) × Turkey has so far taken Qatar's side. It has launched ships carrying aid in the form of food to Qatar, and yesterday sent a small a small group soldiers and even armoured vehicles. Turkey's president Tayyip Erdogan met with Saudi Arabia's leaders in an effort to calm the regional tension.

Arab states send Qatar 13 demands to end crisis, official says

US President Donald Trump offered support for emerging technologies including unmanned aerial vehicles and next generation wireless networks in a meeting with the chiefs of AT&amp;T and General Electric and other business leaders.

The White House brought together venture capitalists and executives from the telecommunications and drone, or unmanned aerial system, industries to discuss how the government can speed technologies to market.

The meeting, which lasted more than three hours including breakout sessions, is part of Trump&#39;s effort to tap industry experts on how to boost US competitiveness in various fields and create jobs.

On Monday, Trump met with the heads of 18 US &nbsp;technology companies including Apple, Amazon.com &nbsp;and Microsoft Corp seeking their help to make the government&#39;s computing systems more efficient. He will meet with energy industry leaders next week.

&quot;We want them to create new companies and lots of jobs,&quot; Trump told the executives &quot;We&#39;re going to give you the competitive advantage that you need.&quot;

In attendance were Chief executives of several drone companies including Kespry, AirMap, Airspace, Measure UAS, Trumbull Unmanned, and PrecisionHawk.

Drone makers argued that the administration should move faster to approve broader commercial use of drones and noted that the Transportation Department does not require automakers to win pre-approval of self-driving vehicle technologies.

Senior executives at Xcel Energy, Verizon Communications, and CenturyLink also took part. Venture capital firms included Revolution LLC, headed by AOL co-founder Steve Case, 500 Startups, Cayuga Ventures, Epic Ventures and Lightspeed Ventures.

Obama administration rules opened the skies to low-level small drones for education, research and routine commercial use. The Trump administration is considering whether to expand drone use for deliveries beyond the view of an operator. Security issues would need to be addressed.

The Federal Aviation Administration in March estimated that by 2021 the fleet of small hobbyist drones will more than triple and commercial drones will grow tenfold to about 442,000.

Last year, regulators cleared the way for next-generation 5G wireless networks, with expected speeds at least 10 times and maybe 100 times faster than today&#39;s 4G networks. Testing is under way and deployment is expected around 2020 but infrastructure hurdles remain.

Wireless signals need to be much faster and more responsive to allow advanced technologies such as virtual surgery or remote control of machinery. 5G networks could help to wirelessly connect devices such as thermostats or washing machines.

The White House brought together venture capitalists and executives from the telecommunications and drone industries to discuss how the government can speed technologies to market

US President Donald Trump offered support for emerging technologies including unmanned aerial vehicles and next generation wireless networks in a meeting with the chiefs of AT&T and General Electric and other business leaders. The White House brought together venture capitalists and executives from the telecommunications and drone, or unmanned aerial system, industries to discuss how the government can speed technologies to market. The meeting, which lasted more than three hours including breakout sessions, is part of Trump's effort to tap industry experts on how to boost US competitiveness in various fields and create jobs. On Monday, Trump met with the heads of 18 US technology companies including Apple, Amazon.com and Microsoft Corp seeking their help to make the government's computing systems more efficient. He will meet with energy industry leaders next week. "We want them to create new companies and lots of jobs," Trump told the executives "We're going to give you the competitive advantage that you need." In attendance were Chief executives of several drone companies including Kespry, AirMap, Airspace, Measure UAS, Trumbull Unmanned, and PrecisionHawk. Drone makers argued that the administration should move faster to approve broader commercial use of drones and noted that the Transportation Department does not require automakers to win pre-approval of self-driving vehicle technologies. Senior executives at Xcel Energy, Verizon Communications, and CenturyLink also took part. Venture capital firms included Revolution LLC, headed by AOL co-founder Steve Case, 500 Startups, Cayuga Ventures, Epic Ventures and Lightspeed Ventures. Obama administration rules opened the skies to low-level small drones for education, research and routine commercial use. The Trump administration is considering whether to expand drone use for deliveries beyond the view of an operator. Security issues would need to be addressed. The Federal Aviation Administration in March estimated that by 2021 the fleet of small hobbyist drones will more than triple and commercial drones will grow tenfold to about 442,000. Last year, regulators cleared the way for next-generation 5G wireless networks, with expected speeds at least 10 times and maybe 100 times faster than today's 4G networks. Testing is under way and deployment is expected around 2020 but infrastructure hurdles remain. Wireless signals need to be much faster and more responsive to allow advanced technologies such as virtual surgery or remote control of machinery. 5G networks could help to wirelessly connect devices such as thermostats or washing machines.

Trump meets wireless, drone executives on new technologies

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