Oil shed some of its massive gains on Tuesday (September 17) as the <a href="https://www.wionews.com/world/dont-need-middle-east-oil-gas-but-will-help-our-allies-says-trump-after-attacks-on-saudi-arabias-aramco-250005">United States</a> flagged the possible release of crude reserves, but the threat of military action over the <a href="https://www.wionews.com/business-economy/international-oil-prices-surge-nearly-20-after-attack-on-saudi-oil-facilities-249978">attacks on Saudi oil</a> facilities kept prices elevated and stocks under pressure.

While equity market losses have not been large, shaky investor confidence continued to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising.

Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the US&nbsp;Federal Reserve on Wednesday (September 18) and the next round of <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">US</a>-China trade talks on Thursday.

The benchmark Nikkei average added 0.2 per cent&nbsp;to 22,021.86 in mid-morning trade to mark its highest level since May 7, as soaring oil prices triggered by attacks on Saudi oil facilities boosted oil and gas-related companies.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per&nbsp;cent.

Chinese shares fell 0.85 per cent, while Australian shares were down 0.27 per cent.

Brent crude, the international benchmark, fell 1.78 per cent to&nbsp;$67.79 per barrel in Asia on Tuesday.

On Monday Brent surged by 14.6 per cent for&nbsp;its biggest one-day percentage gain since at least 1988.

Saturday's attack on Saudi oil facilities has halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since the overthrow of the Iranian Shah in 1979, International Energy Agency data show.

In South Korea, stocks opened slightly lower with the Korea Composite Stock Price Index (KOSPI) down 3.14 points or 0.15 per cent to 2,059.08 points as of 0200 GMT.

China stocks fell on Tuesday as Beijing kept a key money rate unchanged even as recent readings pointed to further downward pressure on the world's second-largest economy.

In Hong Kong, stocks extended falls after credit rating agency Moody's downgraded the island city's outlook.

The Hang Seng index dropped 1.0 per cent, to 26,849.72, while the Hong Kong China Enterprises Index lost 1.0 per cent, to 10,520.42.

Oil shed some of its massive gains on Tuesday (September 17) as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure.

Oil shed some of its massive gains on Tuesday (September 17) as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure. While equity market losses have not been large, shaky investor confidence continued to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising. Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the US Federal Reserve on Wednesday (September 18) and the next round of US-China trade talks on Thursday. The benchmark Nikkei average added 0.2 per cent to 22,021.86 in mid-morning trade to mark its highest level since May 7, as soaring oil prices triggered by attacks on Saudi oil facilities boosted oil and gas-related companies. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent. Chinese shares fell 0.85 per cent, while Australian shares were down 0.27 per cent. Brent crude, the international benchmark, fell 1.78 per cent to $67.79 per barrel in Asia on Tuesday. On Monday Brent surged by 14.6 per cent for its biggest one-day percentage gain since at least 1988. Saturday's attack on Saudi oil facilities has halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since the overthrow of the Iranian Shah in 1979, International Energy Agency data show. In South Korea, stocks opened slightly lower with the Korea Composite Stock Price Index (KOSPI) down 3.14 points or 0.15 per cent to 2,059.08 points as of 0200 GMT. China stocks fell on Tuesday as Beijing kept a key money rate unchanged even as recent readings pointed to further downward pressure on the world's second-largest economy. In Hong Kong, stocks extended falls after credit rating agency Moody's downgraded the island city's outlook. The Hang Seng index dropped 1.0 per cent, to 26,849.72, while the Hong Kong China Enterprises Index lost 1.0 per cent, to 10,520.42.

Oil falls more than 1 per cent as market awaits response to Saudi oil attacks

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix.

The trade war has hardened into a political and ideological battle that runs far deeper than tariffs, trade experts, executives, and officials in both countries say.

China's Communist Party is unlikely to budge on <a href="https://www.wionews.com/business-economy/american-business-community-wants-trade-deal-between-us-china-249649">US</a>&nbsp;demands to fundamentally change the way it runs the economy, while the US&nbsp;won't backtrack on labelling Chinese companies national security threats.

The conflict between the two countries could take a decade to resolve, White House economic adviser <a href="https://www.wionews.com/world/china-us-talks-likely-to-heat-up-in-october-meeting-kudlow-248069">Larry Kudlow</a> warned on September&nbsp;6.

Yu Yongding, an influential former policy adviser to China's central bank, told Reuters that China was in no rush to make a deal.

Presidents Donald Trump and Xi Jinping may hammer out an interim agreement in October to soothe stock markets and claim political victory after this week's lower-level talks.

But any final agreement is "extremely unlikely to meaningfully address the Chinese structural reforms" sought by the US&nbsp;and other countries, said Kellie Meiman Hock, a former US&nbsp;Trade Representative official and managing partner with McLarty Associates, a policy and government consultancy.

Negotiators have made little discernible progress on the many points of disagreement since negotiations broke down in May, sources briefed on the talks say.

Issues divide&nbsp;

Beijing is unwilling to address the way it supports state-owned companies and subsidises their products in coming talks, sources in <a href="https://www.wionews.com/world/us-china-trade-war-to-knock-05-points-off-global-growth-french-finance-minister-247859">China and the US</a> say.

The US&nbsp;continues to label the Chinese tech company Huawei a national security threat, and dangle the threat of new tariffs against China.

"The ultimate result of talks must be the dropping of all tariffs," said He Weiwen, senior fellow, Chongyang Institute for Financial Studies at Renmin University.

"This is the baseline for China." He is not optimistic about the talks' prospects. Since trade negotiations between the world's largest economies collapsed in May, both countries have also broken promises and traded public insults.

The mood is upbeat, but a single Trump tweet could turn that around, analysts say.

"They're locked in this uncomfortable embrace," said William Reinsch, a former senior Commerce Department official and Center for Strategic and International Studies fellow.

"Both presidents have undercut their negotiators and neither side can rely on what the other has said," he said.

 
'Techtonic shift&nbsp; 

Trump's "tough on China" stance has swept in a new way of thinking about Beijing in Washington, despite the unpopularity of many of his other policies.

The US&nbsp;Congress, bitterly divided along partisan lines on most issues, is united about the need for systemic reform in China.

Democrats running against Trump aren't likely to repair the China relationship if they take the White House in 2020.

In a debate on September 12, presidential candidates used terms like corruption and theft to discuss China's trade practices.

"There's been a tectonic shift," said Warren Maruyama, former general counsel for the US&nbsp;Trade Representative's office and a partner with law firm Hogan Lovells.

"The old idea that China was in the middle of free-market economic reforms that would lead them our way is effectively dead," Maruyama said.

"There's bipartisan support for a tougher China policy."

Lawmakers are responding, with several China-related bills making their way through Congress, from legislation to punish Beijing for human rights abuses against Muslims in Xinjiang and to support protesters in Hong Kong.

Additionally, the 2020 National Defense Authorization Act, or NDAA, could include provisions targeting China on issues ranging from technology transfers to the sale of synthetic opioids.

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix.

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix. The trade war has hardened into a political and ideological battle that runs far deeper than tariffs, trade experts, executives, and officials in both countries say. China's Communist Party is unlikely to budge on US demands to fundamentally change the way it runs the economy, while the US won't backtrack on labelling Chinese companies national security threats. The conflict between the two countries could take a decade to resolve, White House economic adviser Larry Kudlow warned on September 6. Yu Yongding, an influential former policy adviser to China's central bank, told Reuters that China was in no rush to make a deal. Presidents Donald Trump and Xi Jinping may hammer out an interim agreement in October to soothe stock markets and claim political victory after this week's lower-level talks. But any final agreement is "extremely unlikely to meaningfully address the Chinese structural reforms" sought by the US and other countries, said Kellie Meiman Hock, a former US Trade Representative official and managing partner with McLarty Associates, a policy and government consultancy. Negotiators have made little discernible progress on the many points of disagreement since negotiations broke down in May, sources briefed on the talks say. Issues divide Beijing is unwilling to address the way it supports state-owned companies and subsidises their products in coming talks, sources in China and the US say. The US continues to label the Chinese tech company Huawei a national security threat, and dangle the threat of new tariffs against China. "The ultimate result of talks must be the dropping of all tariffs," said He Weiwen, senior fellow, Chongyang Institute for Financial Studies at Renmin University. "This is the baseline for China." He is not optimistic about the talks' prospects. Since trade negotiations between the world's largest economies collapsed in May, both countries have also broken promises and traded public insults. The mood is upbeat, but a single Trump tweet could turn that around, analysts say. "They're locked in this uncomfortable embrace," said William Reinsch, a former senior Commerce Department official and Center for Strategic and International Studies fellow. "Both presidents have undercut their negotiators and neither side can rely on what the other has said," he said. 'Techtonic shift Trump's "tough on China" stance has swept in a new way of thinking about Beijing in Washington, despite the unpopularity of many of his other policies. The US Congress, bitterly divided along partisan lines on most issues, is united about the need for systemic reform in China. Democrats running against Trump aren't likely to repair the China relationship if they take the White House in 2020. In a debate on September 12, presidential candidates used terms like corruption and theft to discuss China's trade practices. "There's been a tectonic shift," said Warren Maruyama, former general counsel for the US Trade Representative's office and a partner with law firm Hogan Lovells. "The old idea that China was in the middle of free-market economic reforms that would lead them our way is effectively dead," Maruyama said. "There's bipartisan support for a tougher China policy." Lawmakers are responding, with several China-related bills making their way through Congress, from legislation to punish Beijing for human rights abuses against Muslims in Xinjiang and to support protesters in Hong Kong. Additionally, the 2020 National Defense Authorization Act, or NDAA, could include provisions targeting China on issues ranging from technology transfers to the sale of synthetic opioids.

Trade talks seen as unlikely to mend US-China divide

Donald Trump to meet Indian and Pak PM soon. Watch video to know more.

Donald Trump to meet Indian and Pak PM soon

Corey Lewandowski, President <a href="https://www.wionews.com/world/afghanistan-donald-trump-calls-off-peace-talks-secret-summit-with-taliban-over-terror-attacks-248340">Donald Trump</a>'s former campaign manager and close confidant, is due to testify in Congress on Tuesday despite a White House effort to prevent him from talking about Trump's alleged efforts to impede the federal probe into Russian meddling in the 2016 presidential election.

Late on Monday, the White House instructed Lewandowski not to discuss conversations he had with Trump after he became president, including an exchange at the White House that Democrats view as evidence that Trump obstructed justice and may need to be impeached.

Lewandowski, who is mulling a run for the US Senate, is the first <a href="https://www.wionews.com/world/us-house-steps-up-donald-trump-impeachment-probe-248698">impeachment</a>&nbsp;witness to appear before the House of Representatives Judiciary Committee since former Special Counsel Robert Mueller testified in July about his probe of Russian election interference and Trump's alleged efforts to impede the investigation.

Democrats, who hope to decide whether to recommend Trump's impeachment to the full House by year-end, had intended to grill Lewandowski about an effort by the president to persuade then-Attorney General Jeff Sessions to redirect the Mueller probe away from the 2016 Trump campaign.

The episode is among several incidents contained in Mueller's 448-page Russia investigation report that Democrats view as evidence Trump obstructed justice.

Mueller did not determine whether Trump obstructed justice but did not exonerate him of possible wrongdoing.

White House Counsel Pat Cipollone told the committee in a letter on Monday that Lewandowski could not testify about conversations with Trump after he became president or with his senior advisers.

The White House also ordered two other witnesses, former Trump White House aides Rob Porter and Rick Dearborn, not to testify.

Cipollone's letter said they were "absolutely immune from compelled congressional testimony with respect to matters related to their service as senior advisers to the President."

The Judiciary Committee's chairman, Democrat Jerrold Nadler, denounced the White House move as a "shocking and dangerous assertion of executive privilege and absolute immunity."

"If he were to prevail in this cover-up while the Judiciary Committee is considering whether to recommend articles of impeachment, he would upend the separation of powers as envisioned by our founders," Nadler said in a statement, referring to Trump.

A Lewandowski spokeswoman, who had said earlier that the former campaign manager would cooperate fully with the committee, was not available for comment. 
An attorney for Dearborn said he advised his client to comply with the White House's direction. Porter could not be reached for comment.

Described by Mueller as a Trump "devotee" who has a "close" relationship with the president, Lewandowski has said he intends to defend Trump.

"I want to go and remind the American people that these guys are on a witch hunt," the former campaign manager told Fox News Radio on August 16.

Republicans contend that the Mueller investigation uncovered no evidence of wrongdoing by Trump and denounce the Democrats' impeachment probe as theatrics intended to pander to voters.

In June 2017, Trump met Lewandowski, then a private citizen, at the White House and dictated a message he was to deliver to Sessions.

The message said Sessions should shift the Russia probe's focus to future elections despite his recusal from the investigation.

At a second meeting a month later, Trump asked about the status of the message and said Lewandowski should "tell Sessions he was fired" if he would not meet with the former campaign manager, according to the Mueller report.

Corey Lewandowski, President Donald Trump's former campaign manager and close confidant, is due to testify in Congress on Tuesday despite a White House effort to prevent him from talking about Trump's alleged efforts to impede the federal probe into Russian meddling in the 2016 presidential election.

Corey Lewandowski, President Donald Trump's former campaign manager and close confidant, is due to testify in Congress on Tuesday despite a White House effort to prevent him from talking about Trump's alleged efforts to impede the federal probe into Russian meddling in the 2016 presidential election. Late on Monday, the White House instructed Lewandowski not to discuss conversations he had with Trump after he became president, including an exchange at the White House that Democrats view as evidence that Trump obstructed justice and may need to be impeached. Lewandowski, who is mulling a run for the US Senate, is the first impeachment witness to appear before the House of Representatives Judiciary Committee since former Special Counsel Robert Mueller testified in July about his probe of Russian election interference and Trump's alleged efforts to impede the investigation. Democrats, who hope to decide whether to recommend Trump's impeachment to the full House by year-end, had intended to grill Lewandowski about an effort by the president to persuade then-Attorney General Jeff Sessions to redirect the Mueller probe away from the 2016 Trump campaign. The episode is among several incidents contained in Mueller's 448-page Russia investigation report that Democrats view as evidence Trump obstructed justice. Mueller did not determine whether Trump obstructed justice but did not exonerate him of possible wrongdoing. White House Counsel Pat Cipollone told the committee in a letter on Monday that Lewandowski could not testify about conversations with Trump after he became president or with his senior advisers. The White House also ordered two other witnesses, former Trump White House aides Rob Porter and Rick Dearborn, not to testify. Cipollone's letter said they were "absolutely immune from compelled congressional testimony with respect to matters related to their service as senior advisers to the President." The Judiciary Committee's chairman, Democrat Jerrold Nadler, denounced the White House move as a "shocking and dangerous assertion of executive privilege and absolute immunity." "If he were to prevail in this cover-up while the Judiciary Committee is considering whether to recommend articles of impeachment, he would upend the separation of powers as envisioned by our founders," Nadler said in a statement, referring to Trump. A Lewandowski spokeswoman, who had said earlier that the former campaign manager would cooperate fully with the committee, was not available for comment. An attorney for Dearborn said he advised his client to comply with the White House's direction. Porter could not be reached for comment. Described by Mueller as a Trump "devotee" who has a "close" relationship with the president, Lewandowski has said he intends to defend Trump. "I want to go and remind the American people that these guys are on a witch hunt," the former campaign manager told Fox News Radio on August 16. Republicans contend that the Mueller investigation uncovered no evidence of wrongdoing by Trump and denounce the Democrats' impeachment probe as theatrics intended to pander to voters. In June 2017, Trump met Lewandowski, then a private citizen, at the White House and dictated a message he was to deliver to Sessions. The message said Sessions should shift the Russia probe's focus to future elections despite his recusal from the investigation. At a second meeting a month later, Trump asked about the status of the message and said Lewandowski should "tell Sessions he was fired" if he would not meet with the former campaign manager, according to the Mueller report.

Ex-Trump campaign chief Lewandowski to testify in impeachment hearing

This segment of WION brings to you top stories of the morning from across the globe. Watch this video to get updated with the latest information.

WION Speed News: Watch top national and international news of the morning - September 17th, 2019

Watch in WION Dispatch: Russia says It's ready to help Saudi.

WION Dispatch: Russia says It's ready to help Saudi

Russia is ready to help Saudi Arabia following attacks on the Saudi oil industry if needed, Russian President Vladimir Putin said after talks with leaders of Turkey and Iran in Ankara on Monday, and proposed Russian weapons for purchase.

Putin mocks US defence systems, Says 'Saudis Should Buy Russian Missiles'

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that <a href="https://www.wionews.com/world/iran-dismisses-us-claim-it-was-behind-saudi-oil-attacks-says-ready-for-war-249810">Washington blamed on Iran</a>, which have sent<a href="https://www.wionews.com/world/saudi-races-to-restore-oil-supply-after-strike-blamed-on-iran-249851"> oil prices soaring</a>.

It is the first time the president has hinted at a potential American military response to the drone attacks, which slashed Saudi oil production by half and led both the kingdom and the United States to announce they may tap their strategic reserves.

"Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!" Trump tweeted.

The Tehran-backed Huthi rebels in Yemen, where a Saudi-led coalition is bogged down in a five-year war, claimed Saturday's strikes on two plants owned by state energy giant Aramco.

But US Secretary of State Mike Pompeo pointed the finger squarely at Tehran, saying there was no evidence the "unprecedented attack on the world's energy supply" was launched from Yemen.

"The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression," the top US diplomat said.

That drew an angry response from Tehran, where foreign ministry spokesman Abbas Mousavi said: "Such fruitless and blind accusations and remarks are incomprehensible and meaningless."

The remarks were designed to damage Iran's reputation and provide a pretext for "future actions" against the Islamic republic, he added.

Baghdad, caught between its two main allies -- Tehran and Washington -- also denied any link to the attacks amid media speculation that the drones were launched from Iraq.

Saudi de facto ruler Crown Prince Mohammed bin Salman has said the kingdom is "willing and able" to respond to this "terrorist aggression."

But a tit-for-tat strike on Iranian oil fields is "highly unlikely," Middle East expert James Dorsey told AFP.

"The Saudis do not want an open conflict with Iran. The Saudis would like others to fight that war, and the others are reluctant," said Dorsey, from the S. Rajaratnam School of International Studies in Singapore.

'Genie is out of the bottle'

Oil prices soared by 10 per cent in early Asia trading on Monday, while Saudi Arabia focused on restoring production at the plants.

Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field.

Saudi's energy infrastructure has been hit by the Huthis many times before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply.

"The genie is out of the bottle," said Bill Farren-Price, director of the London-based RS Energy Group.

"It is now clear that Saudi and other Gulf oil facilities are vulnerable to this kind of attack, which means that the geopolitical risk premium for oil needs to rise."

No casualties were reported but the full extent of the damage was not clear.

Aramco also said it will dip into its reserves to offset the disruption. On Saturday, CEO Amin Nasser said that "work is underway" to restore production, but the incident could affect investor confidence ahead of Aramco's stock market debut.

A significant volume of oil production can be restored within days but the company would need weeks to reach full output again, Bloomberg News reported Sunday, citing unnamed sources.

Trump tweeted that he had "authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount" that is "sufficient to keep the markets well-supplied."

The president also "informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States," without naming specific projects.

Loggerheads

Following a phone call between Trump and Prince Mohammed, the White House condemned the attacks on "infrastructure vital to the global economy."

Tehran and Washington have been at loggerheads since May last year, when Trump pulled the US out of a landmark 2015 deal with world powers that promised Iran relief from sanctions in return for curbs on its nuclear program.

Despite the US accusation, the White House said on Sunday Trump may still meet his Iranian counterpart Hassan Rouhani at the upcoming United Nations assembly.

Saudi Arabia has spent billions on military hardware but recent events have underscored the vulnerability of its infrastructure to attack.

The Huthis have staged repeated cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for the Riyadh-led bombing campaign on rebel-held areas in Yemen. 
&nbsp;

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that Washington blamed on Iran, which have sent oil prices soaring.

President Donald Trump said Sunday the US is "locked and loaded" to respond to attacks on Saudi oil infrastructure that Washington blamed on Iran, which have sent oil prices soaring. It is the first time the president has hinted at a potential American military response to the drone attacks, which slashed Saudi oil production by half and led both the kingdom and the United States to announce they may tap their strategic reserves. "Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!" Trump tweeted. The Tehran-backed Huthi rebels in Yemen, where a Saudi-led coalition is bogged down in a five-year war, claimed Saturday's strikes on two plants owned by state energy giant Aramco. But US Secretary of State Mike Pompeo pointed the finger squarely at Tehran, saying there was no evidence the "unprecedented attack on the world's energy supply" was launched from Yemen. "The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression," the top US diplomat said. That drew an angry response from Tehran, where foreign ministry spokesman Abbas Mousavi said: "Such fruitless and blind accusations and remarks are incomprehensible and meaningless." The remarks were designed to damage Iran's reputation and provide a pretext for "future actions" against the Islamic republic, he added. Baghdad, caught between its two main allies -- Tehran and Washington -- also denied any link to the attacks amid media speculation that the drones were launched from Iraq. Saudi de facto ruler Crown Prince Mohammed bin Salman has said the kingdom is "willing and able" to respond to this "terrorist aggression." But a tit-for-tat strike on Iranian oil fields is "highly unlikely," Middle East expert James Dorsey told AFP. "The Saudis do not want an open conflict with Iran. The Saudis would like others to fight that war, and the others are reluctant," said Dorsey, from the S. Rajaratnam School of International Studies in Singapore. 'Genie is out of the bottle' Oil prices soared by 10 per cent in early Asia trading on Monday, while Saudi Arabia focused on restoring production at the plants. Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field. Saudi's energy infrastructure has been hit by the Huthis many times before, but this strike was of a different order, abruptly halting 5.7 million barrels per day (bpd) or about six per cent of the world's oil supply. "The genie is out of the bottle," said Bill Farren-Price, director of the London-based RS Energy Group. "It is now clear that Saudi and other Gulf oil facilities are vulnerable to this kind of attack, which means that the geopolitical risk premium for oil needs to rise." No casualties were reported but the full extent of the damage was not clear. Aramco also said it will dip into its reserves to offset the disruption. On Saturday, CEO Amin Nasser said that "work is underway" to restore production, but the incident could affect investor confidence ahead of Aramco's stock market debut. A significant volume of oil production can be restored within days but the company would need weeks to reach full output again, Bloomberg News reported Sunday, citing unnamed sources. Trump tweeted that he had "authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount" that is "sufficient to keep the markets well-supplied." The president also "informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States," without naming specific projects. Loggerheads Following a phone call between Trump and Prince Mohammed, the White House condemned the attacks on "infrastructure vital to the global economy." Tehran and Washington have been at loggerheads since May last year, when Trump pulled the US out of a landmark 2015 deal with world powers that promised Iran relief from sanctions in return for curbs on its nuclear program. Despite the US accusation, the White House said on Sunday Trump may still meet his Iranian counterpart Hassan Rouhani at the upcoming United Nations assembly. Saudi Arabia has spent billions on military hardware but recent events have underscored the vulnerability of its infrastructure to attack. The Huthis have staged repeated cross-border missile and drone attacks targeting Saudi air bases and other facilities in what they say is retaliation for the Riyadh-led bombing campaign on rebel-held areas in Yemen.

Trump says US 'locked and loaded' after Saudi attacks as oil prices surge

A US Navy destroyer sailed near islands claimed by China in the South China Sea, the US military said, a move likely to anger Beijing. Watch this video to know more.

US destroyer sails in disputed South China Sea amid trade talks

<a href="https://www.wionews.com/videos/iran-how-womens-life-changes-after-fight-for-human-rights-249538">Iran</a> will adopt a policy of maximum crude production if the <a href="https://www.wionews.com/world/iran-says-boltons-departure-will-not-push-tehran-to-talks-with-us-249008">United States</a> lifts sanctions on the country's oil industry, Iranian Oil Minister Bijan Zanganeh said on Saturday.

"Maximum production would be the Iranian Ministry of Petroleum's policy in case (US) sanctions are eased on Iran's oil industry," the ministry's official news website SHANA quoted Zanganeh as saying.

Since exiting from Iran's 2015 nuclear deal with world powers last year, US President Donald Trump has reimposed sanctions on Iran. He has also introduced other limitations, including threats of sanctions against any country importing oil from Iran, causing a more than 80 per cent&nbsp;drop in the OPEC member's oil exports.

"Our oil industry is alive, it is active. The US&nbsp;sanctions cannot stop Iran's oil exports," Zanganeh said.

Trump has pursued a policy of “<a href="https://www.wionews.com/videos/us-blamed-on-iran-after-yemens-drone-attack-on-saudi-oil-facilities-249717">maximum pressure</a>” on Iran to try to force it into broader talks to restrict its ballistic missile program and end its support for proxy forces around the Middle East.

But Iran has ruled out talks until all sanctions imposed on it are lifted. European parties to the deal have struggled to calm the deepening confrontation between Iran and the United States.

Iran will adopt a policy of maximum crude production if the United States lifts sanctions on the country's oil industry, Iranian Oil Minister Bijan Zanganeh said on Saturday.

Iran will adopt a policy of maximum crude production if the United States lifts sanctions on the country's oil industry, Iranian Oil Minister Bijan Zanganeh said on Saturday. "Maximum production would be the Iranian Ministry of Petroleum's policy in case (US) sanctions are eased on Iran's oil industry," the ministry's official news website SHANA quoted Zanganeh as saying. Since exiting from Iran's 2015 nuclear deal with world powers last year, US President Donald Trump has reimposed sanctions on Iran. He has also introduced other limitations, including threats of sanctions against any country importing oil from Iran, causing a more than 80 per cent drop in the OPEC member's oil exports. "Our oil industry is alive, it is active. The US sanctions cannot stop Iran's oil exports," Zanganeh said. Trump has pursued a policy of “maximum pressure” on Iran to try to force it into broader talks to restrict its ballistic missile program and end its support for proxy forces around the Middle East. But Iran has ruled out talks until all sanctions imposed on it are lifted. European parties to the deal have struggled to calm the deepening confrontation between Iran and the United States.

Will adopt maximum crude output policy if US lifts sanctions: Iran

The United States Navy destroyer USS Ramage docked briefly in Lebanon, the US embassy in Beirut said on Sunday, amid heightened regional tensions.

The Arleigh-Burke-class vessel, capable of intercepting ballistic missiles, stopped Saturday for a "one-day goodwill visit on the sidelines of its participation in ongoing efforts to ensure freedom of navigation and free-flow commerce in the eastern Mediterranean", a statement from the US embassy said.

US Ambassador to Lebanon Elizabeth Richard and Vice Admiral James Malloy hosted "an on-board reception for US and Lebanese officials", it added.

During the reception, the vice admiral and ambassador underscored "the ongoing commitment of the United States to be a strong and enduring partner for the Lebanese Armed Forces (LAF), with the goals of enhancing military-to-military cooperation and promoting security and stability in the region", according to the statement.

"This remarkable US ship, docked in this remarkable Lebanese city speaks volumes about the partnership between the US and Lebanese militaries," Richard said.

The US is currently engaged in a stand-off with Iran and its Lebanese ally, the Shiite movement Hezbollah, which has been slapped with US sanctions and classified as a "terrorist" organisation by Washington.

Hezbollah is a key player in Lebanese politics, represented both in parliament and the cabinet.

The movement is militarily involved in the war in neighbouring Syria, has sent fighters to the aid of the Iran-allied regime.

In July, the US imposed sanctions on three senior Hezbollah officials in Lebanon, including two lawmakers, in the first such move against members of parliament.

At the end of August, powerful US financial sanctions were imposed on the Jammal Trust Bank in Lebanon, which was accused of acting as a key financial institution for Hezbollah, an arch-foe of US ally Israel.

The ship's docking comes as tensions spike between Hezbollah and Israel, including an exchange of cross-border fire on September 1.

The United States Navy destroyer USS Ramage docked briefly in Lebanon, the US embassy in Beirut said on Sunday, amid heightened regional tensions. The Arleigh-Burke-class vessel, capable of intercepting ballistic missiles, stopped Saturday for a "one-day goodwill visit on the sidelines of its participation in ongoing efforts to ensure freedom of navigation and free-flow commerce in the eastern Mediterranean", a statement from the US embassy said.

The United States Navy destroyer USS Ramage docked briefly in Lebanon, the US embassy in Beirut said on Sunday, amid heightened regional tensions. The Arleigh-Burke-class vessel, capable of intercepting ballistic missiles, stopped Saturday for a "one-day goodwill visit on the sidelines of its participation in ongoing efforts to ensure freedom of navigation and free-flow commerce in the eastern Mediterranean", a statement from the US embassy said. US Ambassador to Lebanon Elizabeth Richard and Vice Admiral James Malloy hosted "an on-board reception for US and Lebanese officials", it added. During the reception, the vice admiral and ambassador underscored "the ongoing commitment of the United States to be a strong and enduring partner for the Lebanese Armed Forces (LAF), with the goals of enhancing military-to-military cooperation and promoting security and stability in the region", according to the statement. "This remarkable US ship, docked in this remarkable Lebanese city speaks volumes about the partnership between the US and Lebanese militaries," Richard said. The US is currently engaged in a stand-off with Iran and its Lebanese ally, the Shiite movement Hezbollah, which has been slapped with US sanctions and classified as a "terrorist" organisation by Washington. Hezbollah is a key player in Lebanese politics, represented both in parliament and the cabinet. The movement is militarily involved in the war in neighbouring Syria, has sent fighters to the aid of the Iran-allied regime. In July, the US imposed sanctions on three senior Hezbollah officials in Lebanon, including two lawmakers, in the first such move against members of parliament. At the end of August, powerful US financial sanctions were imposed on the Jammal Trust Bank in Lebanon, which was accused of acting as a key financial institution for Hezbollah, an arch-foe of US ally Israel. The ship's docking comes as tensions spike between Hezbollah and Israel, including an exchange of cross-border fire on September 1.

US warship docks in Lebanon amid regional tensions

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster".

 
"Having failed at "max pressure", @SecPompeo's turning to "max deceit". The US &amp; its clients are stuck in Yemen because of the illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster," Zarif said on Twitter.

Javad Zarif Tweet:

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<blockquote class="twitter-tweet" data-lang="en">
Having failed at "max pressure", <a href="https://twitter.com/SecPompeo?ref_src=twsrc%5Etfw">@SecPompeo</a>'s turning to "max deceit" 
 
US &amp; its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. 
 
Blaming Iran won't end disaster. Accepting our April '15 proposal to end war &amp; begin talks may.
— Javad Zarif (@JZarif) <a href="https://twitter.com/JZarif/status/1173162202926333952?ref_src=twsrc%5Etfw">September 15, 2019</a></blockquote>
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&nbsp;

The US&nbsp;Secretary of State Mike Pompeo on Saturday blamed Iran for the drone attacks which hit two of Saudi Arabia's Aramco oil installations and were claimed by Yemen's Iran-aligned Houthi group, saying that "Iran has now launched an unprecedented attack on the world's energy supply."

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster".

Iran's Foreign Minister Mohammed Javad Zarif said on Sunday that the United States and its allies were "stuck in Yemen" and that blaming Tehran "won't end the disaster". "Having failed at "max pressure", @SecPompeo's turning to "max deceit". The US & its clients are stuck in Yemen because of the illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster," Zarif said on Twitter. Javad Zarif Tweet: Having failed at "max pressure", @SecPompeo's turning to "max deceit" US & its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster. Accepting our April '15 proposal to end war & begin talks may. — Javad Zarif (@JZarif) September 15, 2019 × The US Secretary of State Mike Pompeo on Saturday blamed Iran for the drone attacks which hit two of Saudi Arabia's Aramco oil installations and were claimed by Yemen's Iran-aligned Houthi group, saying that "Iran has now launched an unprecedented attack on the world's energy supply."

Iran Foreign Minister Zarif says the US, allies are 'stuck in Yemen'

Japan has agreed to phase out tariffs on <a href="https://www.wionews.com/world/us-wants-to-make-meaningful-progress-in-china-trade-talks-249287">US</a> wine imports as part of a bilateral <a href="https://www.wionews.com/business-economy/american-business-community-wants-trade-deal-between-us-china-249649">trade deal</a> expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday.

Japan will eliminate the tariffs on US wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources.

Japan taxes imported wine at a rate of 15 per cent&nbsp;or 125 yen ($1.16) per litre, whichever is cheaper, according to the Nikkei.

The elimination of the tariff could cut the cost of US wine by about 13 per cent&nbsp;for wine distributors, the Nikkei said.

The trade agreement between the United States and Japan, which is expected to be signed on the sidelines of the UN&nbsp;General Assembly meeting, is also expected to gradually lower tariffs on US&nbsp;beef imports to 9&nbsp;per cent in 2033 from 38.5 per cent&nbsp;now, the Nikkei said.

Officials from Japan's trade ministry were not immediately available for comment.

Last month, the United States and Japan agreed in principle on the core elements of a free-trade deal that would cool a trade dispute between the allies. 
The United States is also trying to de-escalate its year-long trade war with China.

Chinese trade deputies are expected to meet their US&nbsp;counterparts in Washington before minister-level meetings in early October in the US&nbsp;capital. 
&nbsp;

Japan has agreed to phase out tariffs on US wine imports as part of a bilateral trade deal expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday.

Japan has agreed to phase out tariffs on US wine imports as part of a bilateral trade deal expected to be signed at the end of the month, the Nikkei newspaper reported on Sunday. Japan will eliminate the tariffs on US wine within five to seven years after the trade agreement goes into effect, the Nikkei reported without giving its sources. Japan taxes imported wine at a rate of 15 per cent or 125 yen ($1.16) per litre, whichever is cheaper, according to the Nikkei. The elimination of the tariff could cut the cost of US wine by about 13 per cent for wine distributors, the Nikkei said. The trade agreement between the United States and Japan, which is expected to be signed on the sidelines of the UN General Assembly meeting, is also expected to gradually lower tariffs on US beef imports to 9 per cent in 2033 from 38.5 per cent now, the Nikkei said. Officials from Japan's trade ministry were not immediately available for comment. Last month, the United States and Japan agreed in principle on the core elements of a free-trade deal that would cool a trade dispute between the allies. The United States is also trying to de-escalate its year-long trade war with China. Chinese trade deputies are expected to meet their US counterparts in Washington before minister-level meetings in early October in the US capital.

Japan to eliminate tariffs on United States wine in trade deal: Report

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

<a href="https://www.wionews.com/world/oil-rises-as-saudi-signals-opec-cuts-to-continue-under-new-minister-248572">Saudi Arabia</a> has yet to comment on the extent of damage on its <a href="https://www.wionews.com/business-economy/oil-edges-down-on-lower-demand-outlook-us-china-trade-dispute-242428">oil production</a> but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent&nbsp;of global supply has been affected.

Saudi Arabia, the <a href="https://www.wionews.com/business-economy/opec-cuts-2020-oil-demand-forecast-urges-effort-to-avert-a-new-glut-249037">Organization of the Petroleum Exporting Countries</a>' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity.

Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage.

Industry sources have said Saudi Arabia will be able to restore supply within days.

A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US&nbsp;shale production.

The <a href="https://www.wionews.com/business-economy/us-briefly-overtakes-saudi-arabia-as-top-oil-exporter-international-energy-agency-249182">United States has briefly overtaken Saudi Arabia</a> as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer.

Analysts have repeatedly underestimated US&nbsp;output growth gains with the country now producing around 15 per cent&nbsp;of global supply.

Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela.

Both are subject to US&nbsp;sanctions and have seen their exports reduced to a trickle over the past year as US&nbsp;President Donald Trump has tightened sanctions.

Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too.

While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further.

Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019.

WILDCARDS

OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem.

Nigerian exports have also suffered big from disruptions.

Meanwhile, US&nbsp;crude oil production is expected to rise to new records.

However, large US&nbsp;crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide.

The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions.

"We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average.

"Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.

An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers. Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6 per cent of global supply has been affected. Saudi Arabia, the Organization of the Petroleum Exporting Countries' de-facto leader and largest producer, has been long seen as the custodian of the world's spare oil capacity. Spare capacity is the extra oil a producing country can bring onstream and sustain at short notice, providing global markets with a cushion in the event of natural disaster, conflict or any other cause of an unplanned supply outage. Industry sources have said Saudi Arabia will be able to restore supply within days. A prolonged supply outage will have a major bullish impact on oil prices, which in turn will spur further gains in the US shale production. The United States has briefly overtaken Saudi Arabia as the world largest crude exporter this year, only a few years after removing a ban on oil exports because of large needs at home as the world's largest oil consumer. Analysts have repeatedly underestimated US output growth gains with the country now producing around 15 per cent of global supply. Besides the United States, the only countries which have significant spare capacity are Iran and Venezuela. Both are subject to US sanctions and have seen their exports reduced to a trickle over the past year as US President Donald Trump has tightened sanctions. Iran has seen its exports falling by over 2 million bpd since the sanctions have been imposed and Venezuela have seen its exports plummeting too. While analysts expect Venezuelan production to more or less stabilising at current levels of around 700,000-800,000 bpd for the rest of the year, Iranian oil production is forecast to fall further. Energy Aspects has said it expects OPEC spare capacity to fall to below 1 million bpd in the fourth quarter from two million bpd in the second quarter of 2019. WILDCARDS OPEC member Libya is in the middle of a civil war, which threatens its ability to continue pumping oil. Another big Libyan disruption would add to the shocks and highlight the spare capacity problem. Nigerian exports have also suffered big from disruptions. Meanwhile, US crude oil production is expected to rise to new records. However, large US crude output gains and slowing global demand because of a weaker global economy have contributed to a rise in oil stocks worldwide. The International Energy Agency, which coordinates energy policies of industrialised nations, said on Saturday the markets were still well supplies despite the Saudi disruptions. "We are massively oversupplied," said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average. "Having said that, this attack introduces a new, irreversible risk premium into the market," he added.

Global spare oil capacity in United States hands after Saudi outage

<a href="https://www.wionews.com/world/afghanistan-donald-trump-calls-off-peace-talks-secret-summit-with-taliban-over-terror-attacks-248340">US President Donald Trump</a> on Saturday said that it was not a "good idea" for <a href="https://www.wionews.com/south-asia/two-nato-troops-among-10-killed-in-kabul-suicide-attack-taliban-claims-responsibility-247831">Taliban to launch a deadly blast in Kabul</a>, which has claimed 12 lives including an American soldier, and stated that the militant group is aware that they have committed a "big mistake".

"The Taliban has never been hit harder than it is being hit right now. Killing 12 people, including one great American soldier, was not a good idea. There are much better ways to set up a negotiation. The Taliban knows they made a big mistake, and they have no idea how to recover!" Trump tweeted.

Trump had called off the negotiations with the Taliban and cancelled a "secret meeting" with the group's representatives at Camp David in the wake of the Kabul terror attack.

Despite Trump's decision, Secretary of State Mike Pompeo has said that the administration is still working toward a deal but it will not proceed until the Taliban delivers on its commitments.

The US has been negotiating with the Taliban in the last few months at Doha despite the group's reluctance to hold direct talks with the Afghan government, which it views as a US puppet.

Earlier, US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad said that the Trump administration had reached a deal 'in principle'&nbsp;to withdraw over 5,000 troops from Afghanistan in exchange for guarantees by the Taliban to not allow the war-torn country to be used as a base for attacks abroad.&nbsp;

US President Donald Trump on Saturday said that it was not a "good idea" for Taliban to launch a deadly blast in Kabul, which has claimed 12 lives including an American soldier, and stated that the militant group is aware that they have committed a "big mistake".

US President Donald Trump on Saturday said that it was not a "good idea" for Taliban to launch a deadly blast in Kabul, which has claimed 12 lives including an American soldier, and stated that the militant group is aware that they have committed a "big mistake". "The Taliban has never been hit harder than it is being hit right now. Killing 12 people, including one great American soldier, was not a good idea. There are much better ways to set up a negotiation. The Taliban knows they made a big mistake, and they have no idea how to recover!" Trump tweeted. Trump had called off the negotiations with the Taliban and cancelled a "secret meeting" with the group's representatives at Camp David in the wake of the Kabul terror attack. Despite Trump's decision, Secretary of State Mike Pompeo has said that the administration is still working toward a deal but it will not proceed until the Taliban delivers on its commitments. The US has been negotiating with the Taliban in the last few months at Doha despite the group's reluctance to hold direct talks with the Afghan government, which it views as a US puppet. Earlier, US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad said that the Trump administration had reached a deal 'in principle' to withdraw over 5,000 troops from Afghanistan in exchange for guarantees by the Taliban to not allow the war-torn country to be used as a base for attacks abroad.

Not a 'good idea' for Taliban to bomb Kabul: Trump

Led by a dream of marrying on US soil, a young Honduran couple travelled thousands of miles from their home in the port city of La Ceiba, narrowly escaping a kidnapping in Mexico before seeking asylum across the border in Texas.

But the couple, Dexy Maldonado and Marvin Madrid, decided, in the end, to settle for a wedding in less than dream-like conditions.

First, US&nbsp;authorities sent them back to wait for months in a violent region of Mexico for their asylum hearings. Then a <a href="https://www.wionews.com/world/mexico-pushes-back-after-top-us-court-favours-trump-on-shunning-migrants-249280">ruling on Wednesday by the US&nbsp;Supreme Court</a> threatened to scupper their plans -- and those of thousands of other Central American migrants who have traveled through Mexico in pursuit of their own dreams in the United States.

So Maldonado, 20, and Madrid, 28, married on Thursday just over the Rio Grande in a Mexican border town, under open skies at a crowded tent camp in an impromptu religious ceremony -- and without registering the wedding with a government.

"The pastor said it wasn`t `legal, legal,` but it might give us a better chance of staying together," said Maldonado, whom US&nbsp;immigration agents had separated from Madrid after detaining the pair in July with their toddler daughter before returning them to Mexico.

Abrupt shifts in US&nbsp;immigration policy have pitched hundreds of mostly Central American asylum-seekers into a life of limbo in the border city of Matamoros, many of them crammed into tents on the end of a bridge from Brownsville, Texas.

The newlyweds are among at least 42,000 asylum seekers who since January have been sent to troubled Mexican border cities to await hearings with US immigration judges under a US program known as the Migrant Protection Protocols (MPP).

In July, the Trump administration extended MPP to Matamoros, one of two receiver cities in Tamaulipas, an eastern state so riven by drug cartels that the US State Department ranks it as a "level 4" danger zone on a par with Afghanistan or Somalia.

Asylum seekers experienced a harsher blow still with the Supreme Court`s ruling on Wednesday allowing the Trump administration to enforce a ruling that would require anyone who passes through a third country, including Mexico, to seek asylum there instead of the United States. The decision, which allows US authorities to enforce the rule on asylum seekers as litigation challenging its legality proceeds, piles pressure on Mexico and migrants alike.

"It`s a disaster," said Jennifer Harbury, a Texas-based immigration attorney. "No one knows what it`s going to do to MPP."

Marrying between tents and toilets

The Supreme Court ruling fed the anxieties of asylum seekers who had already been returned to Matamoros and were struggling to stay afloat, caught between two worlds in an unforgiving city where jobs are elusive and criminal gangs treat migrants as lucrative trafficking commodities.

By day, many of some two dozen returnees whom Reuters spoke with worried about leaving the relative safety of a sidewalk near the bridge to search for work. By night, some forced themselves to stay awake lest gangsters snatch their children from inside their tents.

Then there was the question of whether to marry.

Maldonado and Madrid were the first of seven asylum-seeking couples who all tied the knot in the camp beside the bridge on Thursday afternoon.

Reverend Isaac Collins, from Charlottesville, Virginia, officiated the brief but emotional ceremony on a patch of parking lot between two portable toilets, three tents, and a sickly tree whose twigs someone clipped off for makeshift bouquets.

Another migrant fashioned Maldonado a wedding ring from aluminum foil. A third shared with other brides her ring with a mermaid tail, Collins said. 
Earlier, lacking other options to bathe, they cooled off from the stifling heat in the murky green waters of the Rio Grande, despite the rashes that many migrants said it caused. Red blotches marked Madrid`s wrist and their 2-year-old daughter`s armpit.

The couple had left Honduras after losing their jobs when authorities raided the used-clothing chain where they worked, alleging the owners used the business to launder drug money.

The two said they departed with a small group led by a self-proclaimed "guide," who asked for no money to take them up through Mexico.

However, as they neared Reynosa, a city about an hour`s drive west of Matamoros, a man apparently known to the guide pulled them off a bus and took them to a site where dozens of other people were being forcibly held, the couple said. They said they escaped, sleeping in ditches until finally crossing the Rio Grande and surrendering to US&nbsp;authorities.

It was not immediately possible for Reuters to verify the details of the apparent kidnapping.

A Department of Homeland Security document reviewed by Reuters shows that Maldonado was "subject to removal" from Texas on July 26 and told to appear at the gateway to Brownsville for a court hearing on September&nbsp;30.

"They told us the rules had changed three days earlier, which is why they sent us back here," Maldonado said.

Even before MPP was expanded to Tamaulipas, rights group Human Rights First documented more than a hundred cases of rape, kidnapping, sexual exploitation and other violent attacks against asylum seekers returned to Mexico under the program.

Madrid has now found work as a part-time laborer after a Mexican construction worker walked into the MPP encampment, looking for hires.

Wary of criminals, Madrid said he decided to try the job for a day, before sticking with it as the best option for his family as they await a court date that lawyers say may now not come.

Led by a dream of marrying on US soil, a young Honduran couple travelled thousands of miles from their home in the port city of La Ceiba, narrowly escaping a kidnapping in Mexico before seeking asylum across the border in Texas.

Led by a dream of marrying on US soil, a young Honduran couple travelled thousands of miles from their home in the port city of La Ceiba, narrowly escaping a kidnapping in Mexico before seeking asylum across the border in Texas. But the couple, Dexy Maldonado and Marvin Madrid, decided, in the end, to settle for a wedding in less than dream-like conditions. First, US authorities sent them back to wait for months in a violent region of Mexico for their asylum hearings. Then a ruling on Wednesday by the US Supreme Court threatened to scupper their plans -- and those of thousands of other Central American migrants who have traveled through Mexico in pursuit of their own dreams in the United States. So Maldonado, 20, and Madrid, 28, married on Thursday just over the Rio Grande in a Mexican border town, under open skies at a crowded tent camp in an impromptu religious ceremony -- and without registering the wedding with a government. "The pastor said it wasn`t `legal, legal,` but it might give us a better chance of staying together," said Maldonado, whom US immigration agents had separated from Madrid after detaining the pair in July with their toddler daughter before returning them to Mexico. Abrupt shifts in US immigration policy have pitched hundreds of mostly Central American asylum-seekers into a life of limbo in the border city of Matamoros, many of them crammed into tents on the end of a bridge from Brownsville, Texas. The newlyweds are among at least 42,000 asylum seekers who since January have been sent to troubled Mexican border cities to await hearings with US immigration judges under a US program known as the Migrant Protection Protocols (MPP). In July, the Trump administration extended MPP to Matamoros, one of two receiver cities in Tamaulipas, an eastern state so riven by drug cartels that the US State Department ranks it as a "level 4" danger zone on a par with Afghanistan or Somalia. Asylum seekers experienced a harsher blow still with the Supreme Court`s ruling on Wednesday allowing the Trump administration to enforce a ruling that would require anyone who passes through a third country, including Mexico, to seek asylum there instead of the United States. The decision, which allows US authorities to enforce the rule on asylum seekers as litigation challenging its legality proceeds, piles pressure on Mexico and migrants alike. "It`s a disaster," said Jennifer Harbury, a Texas-based immigration attorney. "No one knows what it`s going to do to MPP." Marrying between tents and toilets The Supreme Court ruling fed the anxieties of asylum seekers who had already been returned to Matamoros and were struggling to stay afloat, caught between two worlds in an unforgiving city where jobs are elusive and criminal gangs treat migrants as lucrative trafficking commodities. By day, many of some two dozen returnees whom Reuters spoke with worried about leaving the relative safety of a sidewalk near the bridge to search for work. By night, some forced themselves to stay awake lest gangsters snatch their children from inside their tents. Then there was the question of whether to marry. Maldonado and Madrid were the first of seven asylum-seeking couples who all tied the knot in the camp beside the bridge on Thursday afternoon. Reverend Isaac Collins, from Charlottesville, Virginia, officiated the brief but emotional ceremony on a patch of parking lot between two portable toilets, three tents, and a sickly tree whose twigs someone clipped off for makeshift bouquets. Another migrant fashioned Maldonado a wedding ring from aluminum foil. A third shared with other brides her ring with a mermaid tail, Collins said. Earlier, lacking other options to bathe, they cooled off from the stifling heat in the murky green waters of the Rio Grande, despite the rashes that many migrants said it caused. Red blotches marked Madrid`s wrist and their 2-year-old daughter`s armpit. The couple had left Honduras after losing their jobs when authorities raided the used-clothing chain where they worked, alleging the owners used the business to launder drug money. The two said they departed with a small group led by a self-proclaimed "guide," who asked for no money to take them up through Mexico. However, as they neared Reynosa, a city about an hour`s drive west of Matamoros, a man apparently known to the guide pulled them off a bus and took them to a site where dozens of other people were being forcibly held, the couple said. They said they escaped, sleeping in ditches until finally crossing the Rio Grande and surrendering to US authorities. It was not immediately possible for Reuters to verify the details of the apparent kidnapping. A Department of Homeland Security document reviewed by Reuters shows that Maldonado was "subject to removal" from Texas on July 26 and told to appear at the gateway to Brownsville for a court hearing on September 30. "They told us the rules had changed three days earlier, which is why they sent us back here," Maldonado said. Even before MPP was expanded to Tamaulipas, rights group Human Rights First documented more than a hundred cases of rape, kidnapping, sexual exploitation and other violent attacks against asylum seekers returned to Mexico under the program. Madrid has now found work as a part-time laborer after a Mexican construction worker walked into the MPP encampment, looking for hires. Wary of criminals, Madrid said he decided to try the job for a day, before sticking with it as the best option for his family as they await a court date that lawyers say may now not come.

After US court ruling, Honduran newlyweds among migrants clinging to asylum dream

An Iranian Revolutionary Guards commander said on Sunday that US bases and aircraft carriers in the region were within range of Iranian missiles after the <a href="https://www.wionews.com/world/united-states-blames-iran-for-saudi-attacks-pretend-diplomacy-249751">US&nbsp;accused Iran of leading attacks on Saudi oil plants</a>, raising tensions in the Middle East.

Yemen's Iran-aligned Houthi group said it <a href="https://www.wionews.com/videos/drone-attack-at-saudi-arabias-oil-refinery-massive-fire-broke-out-249565">attacked two Saudi Aramco oil plants</a> on Saturday at the heart of Saudi Arabia's oil industry, knocking out more than half the Kingdom`s output.

US Secretary of State Mike Pompeo accused Iran of being behind the attacks, ruling out Yemeni involvement and denouncing Tehran for engaging in false diplomacy.

Pompeo, said on Twitter on Saturday that there was no evidence the attacks came from Yemen.

“Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometres around Iran are within the range of our missiles,” the head of Iran's Revolutionary Guards Corps Aerospace Force Amirali Hajizadeh said on Sunday.

The semi-official Tasnim news agency also quoted him saying that "Iran has always been ready for a "full-fledged" war", without mentioning Saturday's attacks in Saudi Arabia.

One of the plants attacked is the world’s biggest petroleum processing facility.

US&nbsp;President Donald Trump told Saudi de facto ruler Crown Prince Mohammed bin Salman that Washington was ready to work with the kingdom to guarantee its security, according to the White House.

An Iranian Revolutionary Guards commander said on Sunday that US bases and aircraft carriers in the region were within range of Iranian missiles after the US accused Iran of leading attacks on Saudi oil plants, raising tensions in the Middle East.

An Iranian Revolutionary Guards commander said on Sunday that US bases and aircraft carriers in the region were within range of Iranian missiles after the US accused Iran of leading attacks on Saudi oil plants, raising tensions in the Middle East. Yemen's Iran-aligned Houthi group said it attacked two Saudi Aramco oil plants on Saturday at the heart of Saudi Arabia's oil industry, knocking out more than half the Kingdom`s output. US Secretary of State Mike Pompeo accused Iran of being behind the attacks, ruling out Yemeni involvement and denouncing Tehran for engaging in false diplomacy. Pompeo, said on Twitter on Saturday that there was no evidence the attacks came from Yemen. “Everybody should know that all American bases and their aircraft carriers in a distance of up to 2,000 kilometres around Iran are within the range of our missiles,” the head of Iran's Revolutionary Guards Corps Aerospace Force Amirali Hajizadeh said on Sunday. The semi-official Tasnim news agency also quoted him saying that "Iran has always been ready for a "full-fledged" war", without mentioning Saturday's attacks in Saudi Arabia. One of the plants attacked is the world’s biggest petroleum processing facility. US President Donald Trump told Saudi de facto ruler Crown Prince Mohammed bin Salman that Washington was ready to work with the kingdom to guarantee its security, according to the White House.

'US bases, aircraft carriers within our missiles range,' says Iran after Washington blames it for Saudi oil plants attacks

Turkish President Tayyip Erdogan said he will discuss buying US Patriot missiles with President Donald Trump this month, saying his personal bond with the US leader could overcome a <a href="https://www.wionews.com/world/unfair-to-remove-one-of-the-partners-in-f-35-programme-turkey-to-us-236968">crisis caused by Ankara buying Russian air defence</a> systems.

<a href="https://www.wionews.com/world/russia-to-deliver-first-s-400-missile-to-turkey-in-july-reports-230635">Turkey's purchase of the Russian S-400 missile</a> system in July raised the prospect of US&nbsp;sanctions, and the State Department has said an offer to sell Raytheon Co's&nbsp;Patriot missile defence system to Ankara has expired.

However, Erdogan told Reuters he had discussed buying Patriots in a phone call with Trump two weeks ago and would follow up when they meet at the UN General Assembly, which opens next week.

"I said no matter what package of ... S-400s we get, we can buy from you a certain amount of Patriots," Erdogan told Reuters on Friday.

"But I said we have to see conditions that at least match up to the S-400s," Erdogan said, adding that he was referring to the possibility of joint production and favourable lending terms.

"He (Trump) said,&nbsp;'Are you serious?' I said: 'Yes'," Erdogan said, adding that he told Trump they would discuss it in greater detail when they meet.

Asked whether he would also ask Trump to prevent the US&nbsp;Treasury imposing a heavy fine on <a href="https://www.wionews.com/world/turkey-will-turn-elsewhere-if-us-does-not-sell-f-35-fighter-jets-erdogan-238608">Turkey</a>'s mainly state-owned Halkbank for violating US sanctions on Iran, Erdogan said he was confident they could avoid such a "mistake", citing what he said was "a different kind of trust" between the two men.

"In my opinion a country like the USA will not want to hurt its ally <a href="https://www.wionews.com/world/turkey-still-committed-to-purchasing-us-f-35-fighters-foreign-minister-246735">Turkey </a>any more. This is not a rational behaviour," he said in an interview at the Ottoman Dolmabahce palace complex on the Bosphorus in Istanbul.

'Safe zone'

Erdogan and Trump will also discuss plans to establish what Turkey describes as a safe zone along 450 km (280 miles) of Syrian border stretching from the Euphrates river to the Iraq border, a region controlled mainly by US-backed Syrian Kurdish YPG fighters.

On Sunday the two countries launched joint military patrols in the area, but Erdogan says that Washington has dragged its feet in an operation Turkey sees as crucial to driving the YPG, which it designates a terrorist group, away from its border.

Turkey has warned it will act alone if the safe zone is not established this month, raising the prospect of a third Turkish military incursion into northern Syria in three years.

"The peace corridor is the essential thing. We will not allow a terror corridor on our borders and we will take whatever steps are necessary on this subject," he said.

The U.S. alliance with the YPG in Syria has angered NATO member Turkey, which has faced a decades-long insurgency in its mainly Kurdish southeast and fears growing Kurdish military power on its southern border.

"It is Turkey which is fighting with these terror groups... We are your partner in NATO. You give them the weapons for free that you will not sell for money to your NATO ally," he said, referring to US&nbsp;arms supplies to the YPG.

"We are fed up with explaining this... I think Trump must understand us," Erdogan said.

Russia and Iran back Syrian President Bashar al-Assad against rebels who sought his overthrow. The United States, European and Arab allies as well as Turkey have supported different rebel factions.

Assad has regained control of most territory lost in the early stages of the eight-year conflict and has vowed to retake every inch of Syria including the northwestern province of Idlib, where Syrian and foreign radical fighters hold sway alongside other more moderate factions.

Erdogan reiterated a warning that Turkey would be forced to let Syrian refugees on its soil leave for Europe if Western nations did not provide greater support to Turkey and support its plans for a safe zone where Syrians could be settled.

"If you can’t accept this business, we will open the gates. Let them go from there wherever they want," he said.

Establishing the zone 20 miles (32 km) inside northeast Syria would allow refugees in Turkey "to return to their lands, and allow for all their needs - from education, health, shelter - to be met. It will allow them to live on their own lands and break away from the tent life and container cities," he said.

Erdogan said the financial aid Turkey was receiving from the European Union was not sufficient to ease the burden of 3.6 million Syrian refugees who have fled to Turkey since the civil war erupted in 2011.

Turkey says it has spent $40 billion hosting the Syrians, and a deal with the EU to give 6 billion euros to support those efforts was not enough and too slow, a message he would repeat to German Chancellor Angela Merkel at the United Nations.

Erdogan will host the presidents of Russia and Iran on Monday for talks that would focus on securing a lasting truce in Idlib, preventing a fresh refugee wave into Turkey, and asserting control over jihadist fighters there, he said.

Turkish President Tayyip Erdogan said he will discuss buying US Patriot missiles with President Donald Trump this month, saying his personal bond with the US leader could overcome a crisis caused by Ankara buying Russian air defence systems.

Turkish President Tayyip Erdogan said he will discuss buying US Patriot missiles with President Donald Trump this month, saying his personal bond with the US leader could overcome a crisis caused by Ankara buying Russian air defence systems. Turkey's purchase of the Russian S-400 missile system in July raised the prospect of US sanctions, and the State Department has said an offer to sell Raytheon Co's Patriot missile defence system to Ankara has expired. However, Erdogan told Reuters he had discussed buying Patriots in a phone call with Trump two weeks ago and would follow up when they meet at the UN General Assembly, which opens next week. "I said no matter what package of ... S-400s we get, we can buy from you a certain amount of Patriots," Erdogan told Reuters on Friday. "But I said we have to see conditions that at least match up to the S-400s," Erdogan said, adding that he was referring to the possibility of joint production and favourable lending terms. "He (Trump) said, 'Are you serious?' I said: 'Yes'," Erdogan said, adding that he told Trump they would discuss it in greater detail when they meet. Asked whether he would also ask Trump to prevent the US Treasury imposing a heavy fine on Turkey's mainly state-owned Halkbank for violating US sanctions on Iran, Erdogan said he was confident they could avoid such a "mistake", citing what he said was "a different kind of trust" between the two men. "In my opinion a country like the USA will not want to hurt its ally Turkey any more. This is not a rational behaviour," he said in an interview at the Ottoman Dolmabahce palace complex on the Bosphorus in Istanbul. 'Safe zone' Erdogan and Trump will also discuss plans to establish what Turkey describes as a safe zone along 450 km (280 miles) of Syrian border stretching from the Euphrates river to the Iraq border, a region controlled mainly by US-backed Syrian Kurdish YPG fighters. On Sunday the two countries launched joint military patrols in the area, but Erdogan says that Washington has dragged its feet in an operation Turkey sees as crucial to driving the YPG, which it designates a terrorist group, away from its border. Turkey has warned it will act alone if the safe zone is not established this month, raising the prospect of a third Turkish military incursion into northern Syria in three years. "The peace corridor is the essential thing. We will not allow a terror corridor on our borders and we will take whatever steps are necessary on this subject," he said. The U.S. alliance with the YPG in Syria has angered NATO member Turkey, which has faced a decades-long insurgency in its mainly Kurdish southeast and fears growing Kurdish military power on its southern border. "It is Turkey which is fighting with these terror groups... We are your partner in NATO. You give them the weapons for free that you will not sell for money to your NATO ally," he said, referring to US arms supplies to the YPG. "We are fed up with explaining this... I think Trump must understand us," Erdogan said. Russia and Iran back Syrian President Bashar al-Assad against rebels who sought his overthrow. The United States, European and Arab allies as well as Turkey have supported different rebel factions. Assad has regained control of most territory lost in the early stages of the eight-year conflict and has vowed to retake every inch of Syria including the northwestern province of Idlib, where Syrian and foreign radical fighters hold sway alongside other more moderate factions. Erdogan reiterated a warning that Turkey would be forced to let Syrian refugees on its soil leave for Europe if Western nations did not provide greater support to Turkey and support its plans for a safe zone where Syrians could be settled. "If you can’t accept this business, we will open the gates. Let them go from there wherever they want," he said. Establishing the zone 20 miles (32 km) inside northeast Syria would allow refugees in Turkey "to return to their lands, and allow for all their needs - from education, health, shelter - to be met. It will allow them to live on their own lands and break away from the tent life and container cities," he said. Erdogan said the financial aid Turkey was receiving from the European Union was not sufficient to ease the burden of 3.6 million Syrian refugees who have fled to Turkey since the civil war erupted in 2011. Turkey says it has spent $40 billion hosting the Syrians, and a deal with the EU to give 6 billion euros to support those efforts was not enough and too slow, a message he would repeat to German Chancellor Angela Merkel at the United Nations. Erdogan will host the presidents of Russia and Iran on Monday for talks that would focus on securing a lasting truce in Idlib, preventing a fresh refugee wave into Turkey, and asserting control over jihadist fighters there, he said.

Turkey's Erdogan to discuss buying US Patriot missiles with Trump

Felicity Huffman sentenced to 14 days in jail. Watch video to know more.

Felicity Huffman sentenced to 14 days in jail

The US business community wants to see a trade deal between the United States and China so as to end the trade dispute, said Myron Brilliant, executive vice president and head of the international affairs for the US Chamber of Commerce.

Brilliant said this on Wednesday during an interview on the sidelines of the <a href="https://www.wionews.com/world/us-wants-to-make-meaningful-progress-in-china-trade-talks-249287">US-China</a> CEO's Dialogue running from Tuesday to Wednesday in Beijing.

"The two business communities understand there are no winners when you have a trade war, there are only losers.

China will lose, the United States will lose, and the global economy will lose. So we want to encourage our governments to work closely. I'm hopeful that the two countries and the two leaders understand what's at stake, and now it's a question about getting it done. There has to be a sense of urgency," Brilliant said.

"What we need is for truth, a trade truth between the two sides, calmer waters with the long-term goal of having a high standard comprehensive trade agreement. And we need to see compromise, and we need to see the negotiations on the basis of mutual respect on both sides," he said.

The US-China CEO's Dialogue, which was organized by the China Center for International Economic Exchanges and the US Chamber of Commerce, brought 20 business leaders from both countries together to share their views on the on-going trade dispute between the world's two largest economies. 
&nbsp;

The US business community wants to see a trade deal between the United States and China so as to end the trade dispute, said Myron Brilliant, executive vice president and head of the international affairs for the US Chamber of Commerce.

The US business community wants to see a trade deal between the United States and China so as to end the trade dispute, said Myron Brilliant, executive vice president and head of the international affairs for the US Chamber of Commerce. Brilliant said this on Wednesday during an interview on the sidelines of the US-China CEO's Dialogue running from Tuesday to Wednesday in Beijing. "The two business communities understand there are no winners when you have a trade war, there are only losers. China will lose, the United States will lose, and the global economy will lose. So we want to encourage our governments to work closely. I'm hopeful that the two countries and the two leaders understand what's at stake, and now it's a question about getting it done. There has to be a sense of urgency," Brilliant said. "What we need is for truth, a trade truth between the two sides, calmer waters with the long-term goal of having a high standard comprehensive trade agreement. And we need to see compromise, and we need to see the negotiations on the basis of mutual respect on both sides," he said. The US-China CEO's Dialogue, which was organized by the China Center for International Economic Exchanges and the US Chamber of Commerce, brought 20 business leaders from both countries together to share their views on the on-going trade dispute between the world's two largest economies.

American business community wants trade deal between US, China

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn.

A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank's second such cut after lowering rates in July for the first time since 2008. That puts the greater focus on clues about how much further the Fed will go.

“If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell-off," said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. "So long as the Fed plays along with what markets are pricing in think markets will be very stable.”

The Fed's 180-degree pivot from tightening monetary policy last year to easing it has helped drive the stock market's overall strong performance in 2019. The benchmark S&amp;P 500 has climbed 20 per cent this year and is near all-time highs.

The central bank in July cited signs of a global slowdown, simmering US-China trade tensions and a desire to boost too-low inflation as it lowered borrowing costs.

Markets are pricing in a near 90 per cent probability that the Fed will shave another quarter-point from its current overnight lending rate of 2.00 per cent to 2.25 per cent, according to the CME Group's FedWatch tool. There is a roughly 65 per cent probability that the Fed makes at least one more quarter-point cut by the end of the year, according to FedWatch.

"The market is going to want to see a focus that we have a cut and there is likely more coming," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "They want to know that the Fed is vigilant and will act aggressively if needed."

That raises the importance of the newest set of policymakers' rate-path projections - the so-called dot plot - that will be released along with the rate decision. UBS economists said in a note they expect that will shift lower overall for 2019, but project only two cuts total for the year, which could irk both investors and a <a href="https://www.wionews.com/world/turkeys-erdogan-to-discuss-with-trump-buying-us-patriot-missiles-249560">US president</a> eager for a more aggressive posture.

President Donald Trump has frequently criticized the Fed for not cutting rates more swiftly and significantly, with the Fed chair he appointed, Jerome Powell, the primary target of his ire.

The European Central Bank's decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB's move stands to weaken the euro against the dollar and thereby drive up the price of US exports - an issue that especially vexes Trump.

Powell, who will give a news conference after the central bank issues its statement, has made comments in the past that have shaken the market, including in July, when he said the bank's rate cut might not be the start of a lengthy easing campaign to shore up the economy.

"Every meeting has the ability for Jay Powell to say something that upsets markets a little bit,” said Arthur Hogan, chief market strategist at National Securities Corp.

Powell "has had enough practice to know that he does not want to move markets or make news,” he added.

Of the past eight easing cycles since 1981, four have been "insurance" cycles, when economic problems loom but the economy is not in a recession, while four were pre-recession cycles, according to research from Allianz Global Investors.

One year into an easing cycle, the S&amp;P 500 rose an average of 20.4 per cent during insurance cycles, while the index fell an average of 10.2 per cent during pre-recession cycles, according to Allianz.

"Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market," said Mona Mahajan, US investment strategist at Allianz.

The stock market overall has typically responded well to a second rate cut, which Wednesday's would be, with the Dow Jones Industrial Average rising an average of 20.3 per cent one year later, according to Ned Davis Research. The weakest performance has come when the Fed tried and failed to prevent a recession.

The probability of a recession in the next 12 months is nearly 38 per cent, its highest in about a decade, according to the New York Fed's recession indicator, which is based on the US Treasury yield curve. Last month, yields on two-year US bonds exceeded those on 10-year notes, an inversion of the yield curve that is seen as an omen of recession.

An escalation in the US-China tariff war is contributing to economic uncertainty and is top among concerns for stock investors. Late last month, a key speech from Powell was upstaged when Trump issued tweets that heightened trade tensions.

“I do think it’s important that the Fed helps ease financial conditions and helps reduce the probability of recession," SunTrust's Lerner said. "If the tariff fight ratchets up more, then what the Fed does, the effect will be less.

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn.

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn. A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank's second such cut after lowering rates in July for the first time since 2008. That puts the greater focus on clues about how much further the Fed will go. “If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell-off," said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. "So long as the Fed plays along with what markets are pricing in think markets will be very stable.” The Fed's 180-degree pivot from tightening monetary policy last year to easing it has helped drive the stock market's overall strong performance in 2019. The benchmark S&P 500 has climbed 20 per cent this year and is near all-time highs. The central bank in July cited signs of a global slowdown, simmering US-China trade tensions and a desire to boost too-low inflation as it lowered borrowing costs. Markets are pricing in a near 90 per cent probability that the Fed will shave another quarter-point from its current overnight lending rate of 2.00 per cent to 2.25 per cent, according to the CME Group's FedWatch tool. There is a roughly 65 per cent probability that the Fed makes at least one more quarter-point cut by the end of the year, according to FedWatch. "The market is going to want to see a focus that we have a cut and there is likely more coming," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "They want to know that the Fed is vigilant and will act aggressively if needed." That raises the importance of the newest set of policymakers' rate-path projections - the so-called dot plot - that will be released along with the rate decision. UBS economists said in a note they expect that will shift lower overall for 2019, but project only two cuts total for the year, which could irk both investors and a US president eager for a more aggressive posture. President Donald Trump has frequently criticized the Fed for not cutting rates more swiftly and significantly, with the Fed chair he appointed, Jerome Powell, the primary target of his ire. The European Central Bank's decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB's move stands to weaken the euro against the dollar and thereby drive up the price of US exports - an issue that especially vexes Trump. Powell, who will give a news conference after the central bank issues its statement, has made comments in the past that have shaken the market, including in July, when he said the bank's rate cut might not be the start of a lengthy easing campaign to shore up the economy. "Every meeting has the ability for Jay Powell to say something that upsets markets a little bit,” said Arthur Hogan, chief market strategist at National Securities Corp. Powell "has had enough practice to know that he does not want to move markets or make news,” he added. Of the past eight easing cycles since 1981, four have been "insurance" cycles, when economic problems loom but the economy is not in a recession, while four were pre-recession cycles, according to research from Allianz Global Investors. One year into an easing cycle, the S&P 500 rose an average of 20.4 per cent during insurance cycles, while the index fell an average of 10.2 per cent during pre-recession cycles, according to Allianz. "Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market," said Mona Mahajan, US investment strategist at Allianz. The stock market overall has typically responded well to a second rate cut, which Wednesday's would be, with the Dow Jones Industrial Average rising an average of 20.3 per cent one year later, according to Ned Davis Research. The weakest performance has come when the Fed tried and failed to prevent a recession. The probability of a recession in the next 12 months is nearly 38 per cent, its highest in about a decade, according to the New York Fed's recession indicator, which is based on the US Treasury yield curve. Last month, yields on two-year US bonds exceeded those on 10-year notes, an inversion of the yield curve that is seen as an omen of recession. An escalation in the US-China tariff war is contributing to economic uncertainty and is top among concerns for stock investors. Late last month, a key speech from Powell was upstaged when Trump issued tweets that heightened trade tensions. “I do think it’s important that the Fed helps ease financial conditions and helps reduce the probability of recession," SunTrust's Lerner said. "If the tariff fight ratchets up more, then what the Fed does, the effect will be less.

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