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House Armed Services Chairman Denies Pentagon's $1B Transfer for Trump Wall

The U.S. House of Representatives Armed Services Committee on Tuesday denied the Pentagon's plan to shift $1 billion to build a wall on the U.S. border with Mexico, intensifying the conflict over President Donald Trump's signature campaign pledge.

Acting Secretary of Defense Patrick Shanahan announced on Monday that the Department of Defense had shifted $1 billion from other military construction projects in order to help pay for the barrier along the southern border.

Democratic Representative Adam Smith, the committee's chairman, said the committee did not approve the proposed use of Pentagon funds.

"DoD is attempting to circumvent Congress and the American people's opposition to using taxpayer money for the construction of an unnecessary wall, and the military is paying the cost," Smith said in a statement.

Source: NewsMax Politics

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Right-wing opposition sweeps to power in Canada’s oil region, sets up fight with Trudeau

Supporters react to polling results at the UCP election night headquarters in Calgary
Supporters react to polling results at the United Conservative Party (UCP) provincial election night headquarters in Calgary, Alberta, Canada April 16, 2019. REUTERS/Chris Wattie

April 17, 2019

By Nia Williams

CALGARY, Alberta (Reuters) – A right-of-center party that champions the energy industry swept to power in Canada’s main oil-producing province of Alberta on Tuesday, setting up a fight with Prime Minister Justin Trudeau over climate change just months ahead of a federal election.

Television networks predicted the United Conservative Party of Jason Kenney had as expected easily defeated the left-leaning New Democratic Party government of Rachel Notley amid frustration over the economy and a beleaguered energy industry.

In an often belligerent campaign, Kenney promised to stand up for Albertans against Trudeau and other politicians he said were taking the province and its oil and gas for granted.

Notley’s government introduced a carbon tax to help cut emissions of greenhouse gases, a measure Kenney promised to scrap. Trudeau says he will impose a price on carbon on any province without a plan to fight climate change.

Kenney, a 50-year-old former federal Cabinet minister, vowed to take more decisive action on jobs and the economy. Both Kenney and Notley blame Trudeau for a lack of progress on new oil export pipelines.

The NDP ended decades of conservative rule in Alberta when it swept to power in the 2015 election, but inherited an economy hammered by a global crude price crash.

(Writing by Nia Williams and David Ljunggren; Editing by Steve Scherer and Peter Cooney)

Source: OANN

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Sudan’s protesters hope cheerful staying-power will oust army

Sudanese protesters march outside the defence ministry compound in Khartoum
Sudanese protesters march outside the defence ministry compound in Khartoum, Sudan, April 24, 2019. REUTERS/Umit Bektas

April 24, 2019

By Michael Georgy and Khalid Abdelaziz

KHARTOUM (Reuters) – They come from all walks of life, of all ages and many political persuasions. But the thousands of protesters sitting outside the Sudanese Defense Ministry in Khartoum all share one thing: the cheerful conviction that, if they can just stay there long enough, democracy will come about.

Already, their sit-in has prompted the military to topple Omar Hassan al-Bashir, autocratic president of 30 years. Now they believe their good-natured rainbow of resistance can push those same generals to hand over power swiftly to civilians.

A woman in a black full-face Islamic veil discusses the merits of democracy as a man smoking a marijuana joint listens rather vaguely. A vendor sells corn at a discount, making a fortune. One couple mount a podium to take their marriage vows.

“We are lions!” intones a rapper, his audience swaying to the beat.

Unfocused and eclectic it may be, but it only took the crowd – whose numbers swell in the cool of the evening into the hundreds of thousands – five days to bring down Bashir, who was detained by the army on April 11 to the delight of millions.

Now those protesters, spread over about 2 sq km (0.8 square miles) of central Khartoum, want the generals’ Transitional Military Council to bring forward the elections that it promises to hold within two years.

Opposition groups and the military may have been trading threats over the transition, but that has not dampened the cheerful determination of the protesters.

Women outnumber men in the throng, which is a mix of teenagers and older people, conservatives and liberals, doctors, lawyers and artisans.

Designers apply their skills to making banners and placards.

“The motifs are to send a message to the people to support democracy,” said Khalid Ehab, 24, who specializes in banners of fierce-looking people carrying flags.

One young boy sits on a man’s shoulders and sings a song condemning Islamists, who were Bashir’s main support base. Teenagers bang stones against a bridge in solidarity with calls for democracy, and fling water down at passers-by.

STREET FOOD AND FREE SPEECH

Others are more earnest, holding posters of civilians and army officers who were allegedly tortured and killed in Bashir’s prisons.

Osay Awad, 22, used to sell a cob of corn from his battered wooden stall for 15 Sudanese pounds, but out of enthusiasm for the revolution slashed the price to 10.

Business is booming; he sells 500 a day, compared to 170 before the sit-in began, and he hasn’t left the spot since the day after Bashir was toppled.

Like many others, he sleeps on the dusty pavement. Asked what type of leader he would like to see run his country, he says: “I have no candidate. I’m just here to sell corn and support people.”

All the protesters want the old-guard generals out, but many are keen to get the support of young officers; a traditional army song competes with the sound of an opposition figure trying to fire up crowds with promises of a brighter future.

The protesters do want to assert some control. Teenagers frisk anyone entering the area to make sure weapons stay out.

The military leaders have offered some concessions, sacking some officials and announcing the arrest of others, including two of Bashir’s brothers.

But they insist that, while they are willing to accept a civilian transitional government, ultimate authority will remain in their hands until elections are held.

Wejd Mohammed, a medical student covered from head to toe in a niqab, says that “democracy will bring economic prosperity” – getting more attention from her two younger sisters with Sudanese flags painted on their faces than from a man nearby dragging on a joint.

In a scene that would have been unthinkable under Bashir, a member of a rebel group that fought his forces in the desert province of Darfur stands on a makeshift podium and speaks his mind.

“The previous regime took all of our money and made us poor,” he says. “Sudan needs to be one nation.”

(Reporting by Michael Georgy; Editing by Kevin Liffey)

Source: OANN

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EU leaders postpone decision on 2050 climate goal to June

European Union leaders are pushing back a decision on the bloc's efforts to end most emissions of greenhouse gases.

Leaders meeting in Brussels agreed Friday to discuss the EU's long-term plans for tackling climate change at their next summit in June, ahead of a U.N. gathering on the issue in the fall.

Much of the two-day EU summit this week was taken up with haggling over the EU's future relationship with Britain.

Some countries, including France and the Netherlands, had proposed that leaders agree on "an ambitious long-term strategy by 2020 striving for climate neutrality by 2050" in line with the 2015 Paris climate accord's goal of keeping global warming at 1.5 degrees Celsius (2.7 degrees Fahrenheit).

But Germany and some eastern European countries opposed an explicit reference to the year 2050 for curbing emissions.

Source: Fox News World

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Shock Research: Molten Iron Erupts From Volcanoes on Metal Astroids

Metallic asteroids are thought to have started out as blobs of molten iron floating in space. As if that’s not strange enough, scientists now think that as the metal cooled and solidified, volcanoes spewing liquid iron could have erupted through a solid iron crust onto the surface of the asteroid.

This scenario emerged from an analysis by planetary scientists at UC Santa Cruz whose investigation was prompted in part by NASA’s plans to launch a probe to Psyche, the largest metallic asteroid in the solar system. Francis Nimmo, professor of Earth and planetary sciences, said he was interested in the composition of metallic asteroids indicated by analyses of iron meteorites, so he had graduate student Jacob Abrahams work on some simple models of how the asteroids cooled and solidified.

“One day he turned to me and said, ‘I think these things are going to erupt,'” Nimmo said. “I’d never thought about it before, but it makes sense because you have a buoyant liquid beneath a dense crust, so the liquid wants to come up to the top.”

The researchers described their findings in a paper that has been accepted for publication in Geophysical Research Letters.


Dr. “Willie” Soon explains what is going on with the government’s solar observatories and how the threat of a Carrington Event coronal mass ejection is being ignored.

Metallic asteroids originated early in the history of the solar system when planets were beginning to form. A protoplanet or “planetesimal” involved in a catastrophic collision could be stripped of its rocky outer layers, exposing a molten, iron-rich core. In the cold of space, this blob of liquid metal would quickly begin to cool and solidify.

“In some cases it would crystallize from the center out and wouldn’t have volcanism, but some would crystallize from the top down, so you’d get a solid sheet of metal on the surface with liquid metal underneath,” Nimmo said.

As for what the iron volcanoes would look like, Abrahams said it depends on the composition of the melt. “If it’s mostly pure iron, then you would have eruptions of low-viscosity surface flows spreading out in thin sheets, so nothing like the thick, viscous lava flows you see on Hawaii,” he said. “At the other extreme, if there are light elements mixed in and gases that expand rapidly, you could have explosive volcanism that might leave pits in the surface.”

NASA’s Psyche mission is scheduled to launch in 2022 and reach the asteroid in 2026. Signs of past volcanism that researchers could look for include variations in the color or composition of material on the surface, and possibly features that look like volcanic vents. Large volcanic cones are probably unlikely, Abrahams said.

(Photo by Hubble ESA, Flickr)

Unfortunately, because metallic asteroids would have solidified fairly quickly after their formation, there has been plenty of time (billions of years) for any surface features of volcanism to be degraded. “It’s not clear what they might look like now,” Abrahams said.

The best opportunity to find evidence of ferrovolcanism on metallic asteroids might actually come from studying iron meteorites already in collections on Earth, the researchers said.

“There are lots of these metallic meteorites, and now that we know what we’re looking for, we might find evidence of volcanism in them,” Nimmo said. “If material got erupted onto the surface, it would cool very fast, which would be reflected in the composition of the meteorite. And it might have holes in it left by escaping gas.”

When they presented their findings at a recent Lunar and Planetary Science Conference, Abrahams and Nimmo discovered that another research team had independently arrived at similar conclusions about the possibility of ferrovolcanism.

“It’s not a shocking idea, but we’d just never thought about iron volcanism before, so it’s something new and interesting to investigate,” Abrahams said.

This research was supported in part by NASA.


Establishment news attempting damage control after AOC’s speech.

Source: InfoWars

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Reports: Dixon staying put at TCU

FILE PHOTO: NCAA Basketball: NIT Semifinal-Texas vs TCU
FILE PHOTO: Apr 2, 2019; New York, NY, USA; Texas Christian Horned Frogs head coach Jamie Dixon yells out instructions in the first half against the Texas Longhorns at the NIT semifinals at Madison Square Garden. Mandatory Credit: Wendell Cruz-USA TODAY Sports

April 6, 2019

Jamie Dixon will remain at his alma mater, TCU, after UCLA and TCU couldn’t come to an agreement on a buyout for the coach.

The Los Angeles Times reported Friday night that TCU wouldn’t budge from the $8 million buyout on Dixon’s contract and UCLA wouldn’t pay that, despite Dixon being its top candidate.

Dixon, a Los Angeles-area native, had been in talks with UCLA this week to replace Steve Alford, who was fired earlier this season after a 7-6 start.

TCU Chancellor Victor Boschini told TCU student media on Friday that Dixon told him he was staying put.

Boschini said he wouldn’t share the contents of the conversation.

“I don’t want to speak for him, but he’s staying which is good,” he said.

He added: “My interpretation of our conversation is that he (Dixon) plans to stay with us through the entirety of his career and that we don’t have to worry about something like this again.”

Dixon, 53, has 16 years of experience as a Division I head coach with Pittsburgh (2003-16) and TCU (2016-19).

The Horned Frogs’ season ended Tuesday with a 58-44 loss to Texas in the NIT semifinals.

Dixon has compiled a 68-41 record with one NCAA Tournament appearance at TCU and was 328-123 with 11 NCAA bids at Pitt.

Dixon is signed with TCU through 2023-24 after receiving a two-year contract extension last season.

The Bruins previously gauged the interest of other top coaches, including Kentucky’s John Calipari and Virginia’s Tony Bennett.

–Field Level Media

Source: OANN

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Mueller Probe Already Financed Through September

Special Counsel Robert Mueller and the team he assembled to investigate U.S. President Donald Trump and his associates have been funded through the end of September 2019, three U.S. officials said on Monday, an indication that the probe has funding to keep it going for months if need be.

The operations and funding of Mueller's office were not addressed in the budget requests for the next government fiscal year issued by the White House and Justice Department on Monday because Mueller's office is financed by the U.S. Treasury under special regulations issued by the Justice Department, the officials said.

"The Special Counsel is funded by the Independent Counsel appropriation, a permanent indefinite appropriation established in the Department’s 1988 Appropriations Act," a Justice Department spokesman said.

There has been increased speculation in recent weeks that Mueller's team is close to winding up its work and is likely to deliver a report summarizing its findings to Attorney General William Barr any day or week now. Mueller's office has not commented on the news reports suggesting an imminent release.

Representatives of key congressional committees involved in Trump-related investigations say they have received no guidance from Mueller's office regarding his investigation's progress or future plans.

The probe, which began in May 2017, is examining whether there were any links or coordination between the Russian government led by Vladimir Putin and the 2016 presidential campaign of Trump, according to an order signed by Deputy Attorney General Rod Rosenstein.

Critics of the probe, including Trump allies, have suggested the investigation is a misuse of taxpayer funds and should be wrapped up quickly.

Justice Department documents show that Mueller's office reported spending around $9 million during the fiscal year which ran from Oct. 1, 2017 to Sept. 30, 2018. No figures are available for the current fiscal year.

Ninety days before the beginning of a federal government fiscal year, which starts on Oct. 1, special counsels such as Mueller "shall report to the Attorney General the status of the investigation and provide a budget request for the following year," according to the regulations.

Department officials said that under these regulations, a special counsel should request funding for the next fiscal year by the end of June. It is not known if Mueller is preparing such a request for fiscal year 2020.

Russia has denied meddling in the 2016 presidential election. Trump has said there was no collusion between his campaign and Moscow, and has labeled Mueller's investigation a "witch hunt."

Source: NewsMax Politics

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FILE PHOTO: Supporters of the Spain's far-right party VOX wave Spanish flags as they attend an electoral rally ahead of general elections in the Andalusian capital of Seville
FILE PHOTO: Supporters of the Spain’s far-right party VOX wave Spanish flags as they attend an electoral rally ahead of general elections in the Andalusian capital of Seville, Spain April 24, 2019. REUTERS/Marcelo del Pozo/File Photo

April 26, 2019

By John Stonestreet and Belén Carreño

MADRID (Reuters) – Spain’s Vox party, aligned to a broader far-right movement emerging across Europe, has become the focus of speculation about last minute shifts in voting intentions since official polling for Sunday’s national election ended four days ago.

No single party is anywhere near securing a majority, and chances of a deadlocked parliament and a second election are high.

Leaders of the five parties vying for a role in government get final chances to pitch for power at rallies on Friday evening, before a campaign characterized by appeals to voters’ hearts rather than wallets ends at midnight.

By tradition, the final day before a Spanish election is politics-free.

Two main prizes are still up for grabs in the home straight. One concerns which of the two rival left and right multi-party blocs gets more votes.

The other is whether Vox could challenge the mainstream conservative PP for leadership of the latter bloc, which media outlets with access to unofficial soundings taken since Monday suggest could be starting to happen.

The right’s loose three-party alliance is led by the PP, the traditional conservative party that has alternated in office with outgoing Prime Minister Pedro Sanchez’s Socialists since Spain’s return to democracy in the 1970s.

The PP stands at around 20 percent, with center-right Ciudadanos near 14 percent and Vox around 11 percent, according to a final poll of polls in daily El Pais published on Monday.

Since then, however, interest in Vox – which will become the first far-right party to sit in parliament since 1982 – has snowballed.

It was founded in 2013, part of a broader anti-establishment, far-right movement that has also spread across – among others – Italy, France and Germany.

While it is careful to distance itself from the ideology of late dictator Francisco Franco, Vox’s signature policies include repealing laws banning Franco-era symbols and on gender-based violence, and shifting power away from Spain’s regional governments.

TRENDING

According to a Google trends graphic, Vox has generated more than three times more search inquiries than any other Spanish political party in the past week.

Reasons could include a groundswell of vocal activist support at Vox rallies in Madrid and Valencia, and its exclusion from two televised debates between the main party leaders, on the grounds of it having no deputies yet in parliament.

Conservative daily La Vanguardia called its enforced absence from Monday’s and Tuesday’s debates “a gift from heaven”, while left-wing Eldiario.es suggested the PP was haemorrhaging votes to Vox in rural areas.

Ignacio Jurado, politics lecturer at the University of York, agreed the main source of additional Vox votes would be disaffected PP supporters, and called the debate ban – whose impact he said was unclear – wrong.

“This is a party polling over 10 percent and there are people interested in what it says. So we lose more than we win in not having them (in the debates),” he said

For Jose Fernandez-Albertos, political scientist at Spanish National Research Council CSIC, Vox is enjoying the novelty effect that propelled then new, left-wing arrival Podemos to 20 percent of the vote in 2015.

“While it’s unclear how to interpret the (Google) data, what we do know is that it’s better to be popular and to be a newcomer, and that Vox will benefit in some form,” he said.

For now, the chances of Vox taking a major role in government remain slim, however.

The El Pais survey put the Socialists on around 30 percent, making them the frontrunners and likely to form a leftist bloc with Podemos, back down at around 14 percent.

The unofficial soundings suggest little change in the two parties’ combined vote, or the total vote of the rightist bloc.

That makes it unlikely that either bloc will win a majority on Sunday, triggering horse-trading with smaller parties favoring Catalan independence – the single most polarizing issues during campaigning – that could easily collapse into fresh elections.

(Election graphic: https://tmsnrt.rs/2ENugtw)

(Reporting by John Stonestreet and Belen Carreno, Editing by William Maclean)

Source: OANN

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FILE PHOTO: The logo of the OPEC is seen at OPEC's headquarters in Vienna
FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries at OPEC’s headquarters in Vienna, Austria December 5, 2018. REUTERS/Leonhard Foeger/File Photo

April 26, 2019

JOINT BASE ANDREWS, Md. (Reuters) – U.S. President Donald Trump said on Friday he called the Organization of the Petroleum Exporting Countries and told the cartel to lower oil prices.

“Gasoline prices are coming down. I called up OPEC, I said you’ve got to bring them down. You’ve got to bring them down,” Trump told reporters.

(Reporting by Roberta Rampton; Writing by Makini Brice; Editing by Chizu Nomiyama)

Source: OANN

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Sonia Bompastor, director of the Olympique Lyonnais womenÕs Youth Academy, leads a training at the OL Academy near Lyon
Sonia Bompastor, director of the Olympique Lyonnais womenÕs Youth Academy, leads a training at the OL Academy in Meyzieu near Lyon, France, April 16, 2019. REUTERS/Emmanuel Foudrot

April 26, 2019

By Julien Pretot

MEYZIEU, France (Reuters) – Olympique Lyonnais president Jean-Michel Aulas was wringing out his women’s team shirts in the locker room on a rainy London day eight years ago when he decided it was time to take gender equality more seriously.

It was halftime in their Champions League semi-final second leg against Arsenal at Meadow Park with 507 fans watching and Aulas realized that his players did not have a another kit for the second half.

“Next time, there will be a second set just like for the men, that’s how it’s going to work from now on,” he said.

Lyon have since won five Champions League titles to become the most successful women’s team in Europe and recently claimed a 13th consecutive domestic crown.

They visit Chelsea on Sunday in the second leg of their Champions League semi-final, with a fourth straight title in their sights.

At the heart of their achievements is a pervasive ethos that promotes gender equality throughout the club, starting in the youth academy.

In 2013, Aulas appointed former Lyon and France player Sonia Bompastor as head of the Women’s Academy — the female equivalent of one of France’s top youth set-ups that has produced players such as Karim Benzema, Alexandre Lacazette and Hatem Ben Arfa.

At the Youth Academy, girls and boys share the same facilities.

“Pitches, physiotherapy rooms are the same for all,” the 38-year-old Bompastor told Reuters.

As the girls train under the watch of former Lyon and France international Camille Abily, the screams of the boys practicing can be heard nearby.

The boys and girls also benefit from the same psychological support that includes hypnosis sessions and yoga.

“We have a ‘mental ability’ cell and the hypnotist acts on the girls’ subconscious, on their deeply held beliefs after observing them on and off the pitch,” Bompastor added.

SAME TREATMENT

One message the Academy staff are trying to convey is that girls are as good as boys.

“Women’s nature is such that we have low self-esteem. So self-esteem is a big topic for our girls,” said Bompastor.

This is not the case with the boys, she added.

“Some 14, 15-year-old boys still think they would beat our professional players, we tell them this would not be happening. We still need to work on those beliefs,” she said.

Female players also have to face questions that their male counterparts do not, Bompastor explained.

“In France there is a problem with the way women are considered, there are high aesthetic expectations. So we get heavy questions on femininity, intimate questions that men don’t get,” she said.

OL’s Academy has been held up as a shining example for others to follow, even in the U.S., where women’s soccer has a wider audience than in Europe.

“About one third of the (senior women’s) squad comes from the Academy, we have a good balance,” said Bompastor.

“I’m getting tons of requests from American universities and foreign clubs, who want to come and visit our facilities.”

‘ONE CLUB’

The salaries of the senior players is one area where there remains a large discrepancy between Lyon’s men’s and women’s teams.

While the three best-paid women players in the world are at Lyon with Ballon d’Or winner Ada Hegerberg earning 400,000 euros ($445,520) a year, this figure is dwarfed by the around 4 million euros earned annually by men’s player Memphis Depay.

There is, however, a level of interaction between the men’s and women’s players that is not present at many other clubs.

“When you talk about OL you talk about women and men, you talk about one club and you feel it when you are here or outside in the city,” Germany defender Carolin Simon told Reuters.

“We see it when we play in the big stadium. It’s not ‘normal’ for women’s football,” the 26-year-old, who joined the club last year, added.

Lyon’s female players also enjoy respect from their male counterparts, Simon said.

“It’s very cool, it’s a big honor to feel that it doesn’t matter if you are a professional man or woman. We talk with the men, there are handshakes, it’s a good atmosphere and it’s also why we are successful,” said Simon.

“The men respect us and it’s not just for the cameras.”

Her team mate, England’s Lucy Bronze, sees the men’s respect as key to improving women’s football.

“We might not be paid the same but they are just normal with us, they see us as footballers the same as they are,” Bronze told Reuters.

“Being at Lyon has really opened my eyes. To improve women’s football, it starts with having the respect of your male counterparts. It’s the biggest thing because they can influence so many people.”

(Reporting by Julien Pretot; Editing by Toby Davis)

Source: OANN

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FILE PHOTO: Ethiopian migrants, stranded in war-torn Yemen, sit on the ground of a detention site pending repatriation to their home country, in Aden, Yemen
FILE PHOTO: Ethiopian migrants, stranded in war-torn Yemen, sit on the ground of a detention site pending repatriation to their home country, in Aden, Yemen April 24, 2019. REUTERS/Fawaz Salman/File Photo

April 26, 2019

GENEVA (Reuters) – Yemeni authorities have rounded up about 3,000 irregular migrants, predominantly Ethiopians, in the south of the country, “creating an acute humanitarian situation,” the U.N. migration agency said on Friday.

“IOM is deeply concerned about the conditions in which the migrants are being held and is engaging with the authorities to ensure access to the detained migrants,” the International Organization for Migration said.

The migrants are held in open-air football stadiums and in a military camp, it said in a statement.

The detentions began on Sunday in the city of Aden and the neighboring province of Lahj, which are under the control of the internationally recognized government backed by Saudi Arabia and the United Arab Emirates. Iran-aligned Houthi rebels control Sanaa, the capital, and other major urban centers.

Both sides are under international diplomatic pressure to implement a United Nations-sponsored ceasefire deal agreed last year in Sweden and to prepare for a wider political dialogue that would end the four-year-old war.

Thousands of migrants arrive in Yemen every year, mostly from the Horn of Africa, driven by drought and unemployment at home and lured by the wages available in the Gulf.

(Writing by Maher Chmaytelli, Editing by William Maclean)

Source: OANN

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U.S. dollar notes are seen in this picture illustration
U.S. dollar notes are seen in this November 7, 2016 picture illustration. Picture taken November 7. REUTERS/Dado Ruvic/Illustration

April 26, 2019

(Reuters) – Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

1/DOLLAR JUGGERNAUT

The dollar has zipped to near two-year highs, leaving many scratching their heads. To many, it’s down to signs the U.S. economy is chugging ahead while the rest of the world loses steam. After all, Wall Street is busily scaling new peaks day after day.

Never mind the cause, the effect is stark. The euro has tumbled to 22-month lows against the dollar and investors are preparing for more, buying options to shield against further downside. Emerging-market currencies are also in pain, with Turkish lira and Argentine peso both sharply weaker.

Now U.S. data need to keep surprising on the upside or even just meet expectations. The International Monetary Fund sees U.S. growth at 2.3 percent this year. For Germany, the forecast is 0.8 percent. The U.S. economy’s rude health has given rise to speculation the Fed might resume raising interest rates. Unlikely. But as other countries — Canada, Sweden and Australia are the latest — hint at more policy easing, there seems to be one way the dollar can go. Up.

(GRAPHIC: Dollar outperforms G10 FX – https://tmsnrt.rs/2Dz17S5)

2/FED: UP OR DOWN?

Wall Street is near record highs and recession worries are receding, so as we mentioned above, investors might wonder if the Federal Reserve will start raising rates again.

Such a pivot is unlikely after the Fed killed off rate-rise expectations at its March meeting. And the latest Reuters poll all but puts to bed any risk of rates will go up this economic cycle, given inflation remains below the Fed’s alarm threshold and unemployment is the lowest in generations.

Before the March rate-pause announcement, a preponderance of economists penciled in one or more increases this year. But that has flipped. A majority of those surveyed April 22-24 see no further tightening through December and more are leaning toward a cut by the end of next year.

Indeed, interest rate futures imply Fed Funds will be below the current 2.25-2.50 percent target range by this December.

Recent positive consumer spending and exports data have eased market concerns of a sharp economic slowdown. But inflation probably needs to run hot for a long period to panic policymakers off their wait-and-see course.     

(GRAPHIC: Federal funds and the economy – https://tmsnrt.rs/2DzjTZz)

3/HEISEI TO REIWA

Next week ends three decades of Japan’s Heisei era. Heisei, or Achieving Peace, began in 1989 near the peak of a massive stock market bubble and closes with the country trapped in low growth, no inflation, and negative interest rates.

The new era that dawns on May 1 is called Reiwa, meaning Beautiful Harmony. It begins when Crown Prince Naruhito ascends the Chrysanthemum Throne. But do investors really want harmony? What they want to see is a bit of economic growth and inflation to shake up the status quo.

The Bank of Japan’s stimulus toolkit to revive a long-suffering economy is anything but harmonious and yet it’s set to stay. The central bank confirmed recently rates will stay near zero for a long time. But the coming days may not be harmonious or peaceful for currency markets. A 10-day Golden Week holiday kicks off on April 29 and investors are fretting over the risk of a “flash crash” – a violent currency spasm that can occur in times of thin trading turnover.

The year has already seen two yen spikes and many, including Japan’s housewife-trader brigade – so-called Mrs Watanabes – appear to have bought yen as the holiday approaches. Their short dollar/long yen positions recently reached record highs, stock exchange data showed.

(GRAPHIC: Japan stocks: from Hensei to Reiwa – https://tmsnrt.rs/2W6a7Fe)

4/EARNING TURNING

Quarterly earnings were supposed to be the worst in Europe in almost three years, but with a third of results in, things are looking a little rosier.

Two-thirds of companies’ results have beat expectations, and they point to earnings growth of 4.5 percent year-on-year. Financials have delivered the biggest surprises, according to analysis by Barclays.

That might just show how low expectations were. In fact, analysts are still taking a red pen to their estimates.

The latest I/B/E/S data from Refinitiv shows analysts on average expect first-quarter earnings-per-share for STOXX 600-listed companies to fall 4.2 percent. That would be their worst quarter since 2016 and down sharply from an estimated 3.4 percent just a week earlier.

Those estimates may end up being a little too bearish as earnings season goes on, quelling worries that Europe is heading toward a corporate recession.

GSK and Reckitt Benckiser will give the market a glimpse of the health of the consumer products market and spending on everything from toothpaste, washing powder and paracetamol.

(GRAPHIC: Earnings forecasts – https://tmsnrt.rs/2DuO2ZF)

5/WAITING FOR THE OLD LADY

Sterling has gone into the doldrums amid the Brexit delay and unproductive talks between the UK government and the opposition Labour party on a EU withdrawal deal. The resurgent dollar, meanwhile, has taken 2 percent off the pound in April. It is unlikely the Bank of England will be able to rouse it at its May 2 meeting.

Despite robust retail and jobs data of late, the economic picture is gloomy – 2019 growth is likely to be around 1.2 percent, the weakest since 2009, investment is down and Governor Mark Carney says business uncertainty is “through the roof”.

Indeed, expectations for an interest rate increase have been whittled down; Reuters polls forecast rates will not move until early 2020, a calendar quarter later than was forecast a month ago. The hunt for a new governor to replace Carney in October adds more uncertainty to the mix.

The recent run of UK data has fueled hopes of economic rebound. That’s put net hedge fund positions in the pound into positive territory for the first time in nearly a year. The Old Lady of Threadneedle Street might temper some of that optimism.

(GRAPHIC: Sterling positions – https://tmsnrt.rs/2XJwUXX)

(Reporting by Alden Bentley in New York, Vidya Ranganathan in Singapore; Karin Strohecker, Josephine Mason and Saikat Chatterjee in London; compiled by Sujata Rao; edited by Larry King)

Source: OANN

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