Tag Archives: scrambles

Russia Scrambles to Reconnect Supply Lines to Crimea After Bridge Explosion

Russian rockets slammed into the southeastern Ukrainian city of Zaporizhzhia overnight as Moscow raced to restore transportation links to Crimea after a major explosion damaged the bridge connecting the peninsula to the Russian mainland.

The strikes on Zaporizhzhia killed at least 17 people and injured 40 others, according to Anatoly Kurtev, president of the city council. Dozens of apartment buildings were damaged or destroyed, and the death toll was expected to rise, authorities said.

Zaporizhzhia, which is about 30 miles from the front lines where Ukrainian and Russian forces are fighting, has become a constant target of Russian shelling in recent days. On Friday, another rocket attack on a residential area also killed 17 people.

“The Russians are not able to respond on the battlefield and therefore hit the cities in the rear,”

Anton Gerashchenko,

an adviser to Ukrainian President

Volodymyr Zelensky,

wrote on Twitter Sunday morning.

Russian Defense Ministry officials didn’t immediately comment.

The weekend’s explosion on the 12-mile bridge that links Russia to Crimea did serious damage to a critical supply line that Moscow uses to move food and fuel to the peninsula, which it seized in 2014, and to support its troops fighting in southern Ukraine.

The bridge, opened by President

Vladimir Putin

to great fanfare in 2018, is also symbolically important—celebrated as a monument to the might of the Russian state and its aim of permanently holding on to the annexed Ukrainian territory.

Security footage shows a blast on the bridge connecting Crimea to Russia, a symbol of Moscow’s occupation of the peninsula. Russian officials blamed Kyiv, while Ukrainian officials welcomed the explosion but didn’t take responsibility. Photo: AFP/Getty Images

Officials in Moscow said transport links across the bridge were gradually being restored and that alternative means of moving essential supplies—such as ferry services—would be found.

Moscow blamed the damage on Ukraine. Kyiv hasn’t claimed responsibility for the attack, though Ukrainian officials have publicly celebrated the results of the explosion.

On Sunday, Russia’s Ministry of Transport said long-distance passenger and freight trains were again departing Crimea and crossing the bridge into Russia. Russian authorities didn’t say whether trains would begin moving from Russia into Crimea. Cars were also being permitted to cross the bridge, but it remained closed to trucks.

Russia also said it was restarting ferry service across the Kerch Strait separating Russia and Crimea to carry passengers and freight. Before the construction of the bridge, ferries were the main direct link connecting the two sides of the strait.

Experts said they were unsure whether the bridge remained structurally sound enough to support heavy vehicles.

A Ukrainian soldier stands on a destroyed Russian tank in Shakhtarsk, a city in eastern Ukraine’s Donetsk region.



Photo:

ZOHRA BENSEMRA/REUTERS

David MacKenzie, a senior technical director at COWI Holding A/S, a Denmark-based company that designs and builds some of the world’s largest and longest bridges, said it would take several months for Russia to be able to fully restore the damaged spans of the bridge.

Restrictions on truck and train traffic would likely remain because of concerns that the bridge’s substructure has been damaged, Mr. MacKenzie said.

The bridge explosion triggered outrage among some senior lawmakers, as well as ordinary Russians. But Russian state media sought to play down the event, refraining from calling it an attack and airing television interviews with cheerful train passengers expressing gratitude that service had been restored and voicing confidence in using the bridge.

The damage to the bridge will test the Russian military’s logistics, which are heavily reliant on rail transport and were already strained. Russian forces in southern Ukraine are trying to fight off Ukrainian counterattacks and hold on to territory they took in the first weeks of the war.

Ukraine, using long-range Himars rocket systems supplied by the U.S., has already disabled most bridges across the Dnipro River, which separates the Russian-occupied city of Kherson and its surroundings from other Russian-held territory.

Emergency workers extinguish a fire after a missile struck a house in the eastern city of Bakhmut.



Photo:

anatolii stepanov/Agence France-Presse/Getty Images

Ukraine has made steady progress in the region over the past month, though its advances have been slower than in the northeast, where it forces retook thousands of square miles of territory in just a few days last month.

On Saturday, Ukraine used Himars rockets to destroy a railway hub used by the Russian military in the southern part of the Donetsk region, which could have served as another resupply route to the occupied south.

The Institute for the Study of War, a Washington-based think tank, said the damage to the bridge wouldn’t permanently disrupt Russian supply lines, but is likely to cause significant problems in the short term.

“Russian forces will likely still be able to transport heavy military equipment via the railroad,” the institute wrote. “Russian officials will likely intensify security checks on all vehicles crossing the bridge, however, adding delays to the movement of Russian military equipment, personnel, and supplies to Crimea.”

Write to Ian Lovett at ian.lovett@wsj.com and Ann M. Simmons at ann.simmons@wsj.com

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White House scrambles to avert looming railroad strike

White House officials are holding emergency meetings in a desperate scramble to avert a national railroad strike that is days away from shutting down much of the country’s transportation infrastructure, according to three people familiar with the matter.

Biden administration officials have started preparing for a potential shutdown and have warned that a strike could seriously damage the U.S. economy, while also warning it could hurt Democrats in the upcoming midterm elections, two of the people said. Labor Secretary Marty Walsh was part of meetings led by the White House National Economic Council last week, and President Biden is also personally tracking the matter, the two people said. Transportation Secretary Pete Buttigieg is also involved in trying to broker the impasse.

The stalemate pits two of Biden’s top priorities against each other. The president has been an adamant defender of union workers but does not want a breakdown in the nation’s transportation infrastructure that would disrupt commuter and passenger services.

Largest private-sector nurses strike in U.S. history begins in Minnesota

The administration has little time to act: The nationwide rail shutdown is set to go into effect on Friday, and labor and management have been at an impasse over difficult issues such as sick time and penalties for missing work.

The freight industry has warned that the first national rail strike in decades would shut down 30 percent of the country’s freight and “halt most passenger and commuter rail services.” The Brotherhood of Maintenance of Way Employes, a division of the Teamsters, on Sunday announced a tentative agreement with national rail carriers, leaving only two of the 12 unions without a deal in place. But those are the two biggest rail unions in the country, representing 57,000 engineers and conductors.

Concerns about the political impact of a labor shutdown extend to parts of the administration as well. Farm groups have clamored for an agreement to be swiftly reached, as their operations could be heavily impacted. The administration has already faced criticism over its handling of the nation’s transportation infrastructure, which was wracked last year by supply chain snarls and this year by a spike in cancellations and delays at the nation’s airports. Some administration officials fear squandering the Biden economic victories of August that have helped increase Democrats’ poll numbers.

The Federal Railroad Administration, a part of the Transportation Department, has estimated that failure to reach an agreement could cost the U.S. economy as much as $2 billion per day in lost economic output. U.S. Chamber of Commerce President and CEO Suzanne P. Clark on Monday said a strike would be an “economic disaster” with “catastrophic economic impacts,” calling for urgent action to resolve the standoff.

“The last thing they want right now is a major strike in a key sector like this,” said Dean Baker, a White House ally and economist and co-founder of the Center for Economic and Policy Research, a liberal think tank. “I think Biden is going to be pushing really hard to get a deal. He’ll presumably push on the employer side but I’m sure he’ll push the union side as well … though there’s a question of how hard he’ll be willing to push the workers.”

Still, the president has made supporting unions one of the top priorities throughout his administration. Many Biden aides are sympathetic to workers’ complaints of poor working conditions and unjust treatment by management, and are reluctant to lean too aggressively on labor leaders to end the strike.

At issue is the recommendation of the Presidential Emergency Board, which is run by three Biden appointees. The board outlined wage hikes and annual bonuses in a 124-page report that were between the demands of the union and management, and were generous enough to peel off 10 of the labor unions that represent a subset of railway workers who do not operate trains.

But the remaining two unions slated to strike are infuriated by the board’s lack of strong proposals related to certain working conditions that they say are “destroying the lives” of their members, such as facing penalties for taking any time off. Labor groups say engineers and conductors have been fired for going to routine doctor’s appointments or family members’ funerals, and can be on call for 14 consecutive days without a break, for up to 12 hours. They are also afforded no sick days.

“We’re facing the potential of a strike because the railroad refuses to grant one single day of sick time,” said Ron Kaminkow, a member of the Brotherhood of Locomotive Engineers and Trainmen, one of the unions that has not reached an agreement. “It’s about the phone rings at 2 a.m. to be at work at 4 a.m. after just 10 hours of rest prior. It’s about not knowing when you’re coming home and being penalized with discipline up to firing if you need to go to the doctor.”

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Taiwan scrambles 29 jets to warn away Chinese planes in its air defence zone

Chinese and Taiwanese national flags are displayed alongside a military airplane in this illustration taken April 9, 2021. REUTERS/Dado Ruvic/Illustration

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TAIPEI, June 21 (Reuters) – Taiwan scrambled jets on Tuesday to warn away 29 Chinese aircraft in its air defence zone, including bombers that flew to the south of the island and into the Pacific, in the latest uptick in tensions and largest incursion since late May.

Taiwan, which China claims as its own territory, has complained for the past two years or so of repeated missions by the Chinese air force near the democratically governed island, often in the southwestern part of its air defence identification zone, or ADIZ, close to the Taiwan-controlled Pratas Islands.

Taiwan calls China’s repeated nearby military activities “grey zone” warfare, designed to both wear out Taiwanese forces by making them repeatedly scramble, and also to test Taiwanese responses.

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The latest Chinese mission included 17 fighters and six H-6 bombers, as well as electronic warfare, early warning, antisubmarine and an aerial refuelling aircraft, Taiwan’s defence ministry said.

Some of the aircraft flew in an area to the northeast of the Pratas, according to a map the ministry provided.

However, the bombers, accompanied by an electronic warfare and an intelligence gathering aircraft, flew into the Bashi Channel which separates Taiwan from the Philippines and into the Pacific before turning back to China on the route they came in.

Taiwan sent combat aircraft to warn away the Chinese aircraft, while missile systems were deployed to monitor them, the ministry said, using standard wording for its response.

It was the largest incursion since Taiwan reported 30 Chinese aircraft in its ADIZ on May 30. The largest to date this year occurred on Jan. 23, involving 39 aircraft. read more

There was no immediate comment from China, which has in the past said that such moves were drills aimed at protecting the country’s sovereignty.

A U.S. State Department spokesperson told Reuters in an email that Beijing should “cease its military, diplomatic, and economic pressure and intimidation against Taiwan”.

China launched its third aircraft carrier on Friday, the Fujian, named after the province opposite Taiwan. read more

China’s military said last month it had conducted an exercise around Taiwan as a “solemn warning” against its “collusion” with the United States.

That came after U.S. President Joe Biden angered China by appearing to signal a change in a U.S. policy of “strategic ambiguity” on Taiwan by saying the United States would get involved militarily if China were to attack the island.

China has stepped up pressure on Taiwan to accept its sovereignty claims. The Taipei government says it wants peace but will defend itself if attacked.

No shots have been fired and the Chinese aircraft have not been flying in Taiwan’s air space, but in its ADIZ, a broader area Taiwan monitors and patrols that acts to give it more time to respond to any threats.

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Reporting by Ben Blanchard in Taipei and Michael Martina in Washington; Editing by Frank Jack Daniel and Mark Heinrich

Our Standards: The Thomson Reuters Trust Principles.

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Japan scrambles jets after Russian, Chinese warplanes near airspace during Quad

TOKYO, May 24 (Reuters) – Japan scrambled jets after Russian and Chinese warplanes neared its airspace on Tuesday, when Tokyo was hosting the leaders of the Quad grouping of countries that includes the United States, Defence Minister Nobuo Kishi said.

Tokyo conveyed “grave concerns” to both Russia and China through diplomatic channels, Kishi said at a news conference that was broadcast online.

He characterised the incident as a likely provocation by both Beijing and Moscow on a day when U.S. President Joe Biden, Indian Prime Minister Narendra Modi and Australia’s newly elected leader, Anthony Albanese, were meeting in Tokyo.

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“We believe the fact that this action was taken during the Quad summit makes it more provocative than in the past,” he said, adding it was the fourth such incident since November.

Two Chinese warplanes flew over the Sea of Japan from the East China Sea and were then joined by two Russian warplanes for a flight together toward the East China Sea, Kishi said.

Later, the two Chinese warplanes were replaced by another pair believed to be Chinese, which then flew with the Russians on a long flight toward the Pacific Ocean, he said.

A Russian reconnaissance plane also flew over the open sea from the northern island of Hokkaido to the Noto peninsula on Japan’s main island, he said.

None of the aircraft entered into Japan’s airspace, he said.

Russia and China both confirmed they conducted a joint patrol. Russia’s defence ministry said the patrol lasted 13 hours over the Japanese and East China seas.

The exercise was part of an “annual military cooperation plan”, China’s defence ministry said.

Separately, South Korea’s military said it scrambled fighters after at least four Chinese and four Russian warplanes entered its air defence zone on Tuesday. read more

It was not immediately clear if the two events were related or if any of the same warplanes were involved.

The four leaders of the Quad – an informal grouping led by Washington – on Tuesday stressed their determination to ensure a free and open Indo-Pacific region in the face of an increasingly assertive China. read more

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Reporting by Nobuhiro Kubo; additional reporting by Satoshi Sugiyama; Writing by David Dolan; Editing by Andrew Heavens and Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

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White House scrambles for ways to protect abortion

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In the hours after a leaked Supreme Court document signaled the court was poised to overturn Roe v. Wade in the coming weeks, President Biden vowed to fight to protect access to abortion.

“We will be ready when any ruling is issued,” Biden said in a statement Tuesday.

But in marathon meetings and phone calls among White House officials, government lawyers, outside advisers and federal agency officials, a sobering reality settled in: There’s little the White House can do that will fundamentally alter a post-Roe landscape. While officials have spent months planning for the possibility the court would overturn the landmark ruling, the leaked document caught the White House off guard. Officials are discussing whether funding, whether through Medicaid or another mechanism, could be made available to women to travel to other states for an abortion, according to outside advisers who spoke on the condition of anonymity to describe internal discussions, but many doubt whether that is feasible.

Congress can guarantee abortion access nationwide by making the protections under Roe v. Wade law, but there is widespread recognition inside the White House that this path has been foreclosed for now. Democrats hold a razor-thin Senate majority, and key Democrats have made it clear they will not support eliminating the filibuster, which requires 60 votes for the passage of most legislation, to protect Roe v. Wade.

“A lot of what the Biden administration could do would be window dressing, in that ultimately we’re going to have a system of conflicting access to reproductive health and rights depending upon the state you live in,” said Lawrence Gostin, the director of the O’Neill Institute for National and Global Health Law at Georgetown Law, who has been advising the White House on its options. “And there’s very little that Biden can do about that.”

Biden officials spent much of Tuesday panicked as they realized how few tools they had at their disposal, according to one outside adviser briefed on several meetings. Now officials are fervently debating a number of executive and regulatory actions the administration could take to make it easier for women in red states — particularly poor women — to access abortion care, according to three outside advisers.

But officials privately recognize that nearly any administrative action would face legal challenges from Republican attorneys general, and that many of those challenges could succeed. Even if they don’t, they could tie up the action for months.

“Every single thing they do is going to get legally challenged, and every [government] lawyer agrees,” said one outside adviser, speaking on the condition of anonymity to disclose private conversations. “A bunch of attorneys general will mobilize, and [the administration] will lose.” That is in large part because a court that overturns Roe is unlikely to look kindly on actions designed to circumvent that ruling.

Biden has pressed Congress to codify Roe v. Wade, the only mechanism outside the Supreme Court — or a constitutional amendment, which seems even less likely — that could protect abortion rights. But Democrats concede that effort seems out of reach. Democrats would have to vote to eliminate the filibuster to guarantee a right to abortion with a simple majority, but Sen. Joe Manchin III (D-W.Va.) and Sen. Kyrsten Sinema (D-Ariz.) have said they will not back such a rule change.

Democrats called to enshrine Roe v. Wade as law on May 3 in response to the leaked Supreme Court draft opinion proposing to overturn the landmark abortion case. (Video: Blair Guild/The Washington Post)

Draft abortion ruling puts a new spotlight on confirmation hearings

Inside the White House, some officials, including Biden, also worry that if Democrats suspend or kill the filibuster to codify Roe, Republicans would simply reverse that next time they take control of Congress and the presidency, outlawing abortion nationwide.

The agency with the most power to increase access to abortion is the Department of Health and Human Services, which oversees the Medicaid program. One option under discussion is whether the administration could provide funding through Medicaid or another mechanism that would make money available to women to travel to other states for an abortion, the outside advisers said.

Some Republican-led states have said they will make it illegal for women to travel elsewhere to get abortions, but it’s unclear whether such a policy would be upheld by the courts.

The administration has also said the Justice Department will challenge various state laws and rules that aim to restrict or ban abortion. But if the court throws out Roe as anticipated, such cases could face an uphill battle.

The administration did take a big step last December, when the Food and Drug Administration decided to allow abortion pills to be prescribed via telehealth appointments and then mailed to the recipient. Previously, a woman had to pick up the medication at hospitals, clinics or doctors’ offices. And the administration had recently created $6.6 million in “Dire Need” grants, which provide funding to expand access to emergency contraception and family-planning services.

The effort to overturn Roe thrusts Biden into a central, and at times uncomfortable, role as a champion of protecting abortion access. A Catholic, Biden initially opposed Roe v. Wade, saying the court went too far in its decision, and his views on the issue evolved slowly throughout his political career.

During the 2020 presidential primary, he found himself at odds with Democratic voters for his support of the Hyde Amendment, which prohibits federal funds for abortion, and he withdrew that support after fierce backlash from Democratic activists.

Abortion has always been complicated for Biden. Now he finds himself leading the fight.

As president, Biden did not use the word “abortion” until he put out a statement Tuesday morning after the draft opinion leaked late Monday. In that statement, Biden made it clear he believed the right response was to elect more lawmakers who support abortion rights, rather than trying to work around the ruling through executive actions.

“If the court does overturn Roe, it will fall on our nation’s elected officials at all levels of government to protect a woman’s right to choose. And it will fall on voters to elect pro-choice officials this November,” Biden said. “At the federal level, we will need more pro-choice Senators and a pro-choice majority in the House to adopt legislation that codifies Roe, which I will work to pass and sign into law.”

Still, Biden has directed various offices — including the Gender Policy Council, the White House Counsel’s Office and the Domestic Policy Council — to work on plans for blunting the impact of the Court’s likely decision. The White House declined to make any officials in those offices available for an interview to discuss their efforts to protect abortion rights should the Supreme Court overturn Roe v. Wade.

Biden advisers also see abortion rights as a potentially galvanizing issue for voters ahead of November’s midterm elections. In what is shaping up to be a difficult year for Democrats on the ballot, party leaders and activists hope that if the Supreme Court overturns Roe, Democratic voters will express their anger at the ballot box.

Biden and his allies have tried to draw a sharper contrast with Republicans in recent weeks, and abortion is likely to become a central part of that argument, as they warn that giving Republicans power would result in a series of additional far-reaching actions.

“What are the next things that are going to be attacked? Because this MAGA crowd is really the most extreme political organization that’s existed in American history — in recent American history,” Biden said Wednesday.

A leaked draft opinion on May 2 shows that the Supreme Court is poised to overturn federal abortion protections. Here’s what would happen. (Video: Joshua Carroll/The Washington Post)

By about a 2-to-1 margin, a majority of Americans say the Supreme Court should uphold Roe, according to a Washington Post-ABC News poll conducted last week. The poll found that 54 percent of Americans think the 1973 decision should be upheld, while 28 percent believe it should be overturned.

Republicans have passed increasingly restrictive antiabortion laws in recent years, emboldened by a Supreme Court that now has a 6-to-3 conservative majority. President Donald Trump also elevated a series of hard-line conservative judges, creating anxiety among liberals about how far Republicans will be able to go with laws that not only make abortion illegal but possibly also punish anyone who enables the procedure, including doctors and parents.

The Supreme Court earlier this year declined to block a Texas law that effectively banned abortions after six weeks of pregnancy — before most women know they are pregnant — and allowed private citizens to sue anyone who “aids or abets” an abortion after a fetal heartbeat can be detected, which is usually around six weeks.

While officials hope easier access to the abortion pill will help mitigate the impact of the Supreme Court decision, they know it will be of limited use and many women will still struggle to obtain it. The FDA’s action late last year eased restrictions on a drug called mifepristone, part of a two-drug regimen for ending early pregnancies.

The combination consists of mifepristone, which blocks the hormone progesterone, which is needed for pregnancy, and misoprostol, which empties the uterus. The medication is approved as safe and effective for use in the first 10 weeks of pregnancy, although it is sometimes used “off label” after that. While the pill is highly effective, it can have side effects, including nausea and pelvic pain.

In a speech Tuesday, Vice President Harris delivered a forceful rebuke of Republican-led efforts to restrict abortion access, outlining the stakes in November’s elections as she revised her prescheduled remarks after the Supreme Court’s draft opinion leaked.

“Those Republican leaders who are trying to weaponize the use of the law against women — well, we say, ‘How dare they?’” she said at a conference hosted by Emily’s List, a group that backs Democratic women who support abortion rights. “How dare they tell a woman what she can do and cannot do with her own body? How dare they? How dare they try to stop her from determining her own future?”

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The NYT Scrambles To Fix Lost Wordle Streaks After Migration

Photo: NurPhoto (Getty Images)

You may know The New York Times for its reputation as the paper of record and the paper of recommending-you-put-peas-in-guac. But now the Gray Lady has joined the likes of EA, Bungie, 343 Industries, and other developers of live-service games as it rapidly tries to extinguish fires for its newly acquired puzzle game, Wordle.

In the event you’ve been offline for the past two months, Wordle is an immensely popular daily head-scratcher played by, per web traffic and social media volume, literally everyone with an internet connection. It was initially developed by Josh Wardle, a Brooklyn-based software engineer, conceptualized as a breezy way for his partner to pass the time during a daily pandemic that shows no signs of abating (maybe ever). Wardle sold it to The New York Times last month. He walked away with a sum in “the low seven figures.”

Wordle has taken the world by storm due to how easy it is to pick up. Your mission, should you choose to accept it every day, is to guess that day’s five-letter word. Incorrect letters are marked as gray, correct letters marked as green, and correct but incorrectly placed letters marked as yellow. You have six tries to guess the word. Players proudly flaunt their victories on Twitter and cherish their “streaks,” earned by successfully completing the Wordle for subsequent days, weeks, months, and, eventually, centuries. (Yes, Wordle will outlive us all.)

Wordle’s migration to The New York Times went down this week, and while the game itself seems to have made it over just fine, some players haven’t seen their streaks carry over.

The problems were first spotted yesterday afternoon, with the Times noting it was looking into the matter. Streak data wasn’t stored by Wardle and isn’t stored by the Times, so errors popped up on the user-facing end, since that data is stored locally, a combination of the user’s device, browser, and URL they use to access the game, Jordan Cohen, executive director of comms for the Times, told Kotaku via email. Yesterday evening, the Times identified a fix, and says it’s largely remedied by now.

“As of Friday morning, we believe that stats and streaks should be carried over for the vast majority of Wordle players,” Cohen said. “We are seeing some reports of users continuing to have issues, and are investigating and engaging with these users.”

If you’re still not seeing yours, you need only open Wordle in the same browser on the same device you typically play on. If that doesn’t do the trick, the Times suggests using the URL you initially used to access the game, which should automatically redirect you to where the paper lets Wordle live. (Wordle was initially hosted on “https://www.powerlanguage.co.uk.” Now, it’s “https://www.nytimes.com/games/wordle/index.html.”)

“Not everyone will be redirected immediately. We expect the overall audience of Wordle players to redirect gradually, as the old site may be still cached for many of them,” Cohen said. “This is expected, and when the cache expires (over the next few days) they will be redirected.”

Provided you can’t get your streak back, well, look at it as the chance for a fresh start. To that end, you could brush up on our tips for the game, or you could just fall back on the mathematically determined “best” starting word.

But the easiest way to build up a new streak might be an unintentional bug that popped up after Wordle’s migration: In rare cases, Cohen said, some players experienced a repeated puzzle today. Hey, take your wins where you can get ‘em.

 



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China’s Evergrande scrambles to avoid new default, Shimao hoists ‘for sale’ sign

A man walks past a wall carrying the logo of Shimao Group, with residential buildings and the financial district of Pudong seen in the background, in Shanghai, China January 1, 2013. Picture taken January 1, 2013. REUTERS/Stringer

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  • Shimao puts assets on the block, ratings slashed again
  • Evergrande extends deadline for bond payment deferral
  • R&F next in focus with $750 mln debt payment on Thursday

HONG KONG/LONDON, Jan 10 (Reuters) – China’s property sector saw more drama on Monday after reports Shimao – investment grade-rated until a couple of months ago – had put all its projects up for sale, and Evergrande attempted to avoid another high-profile default.

More unwelcome surprises this month have meant no let up in the Chinese property crisis that wiped over a trillion dollars off the sector last year.

Monday’s twists saw Shimao Group’s credit rating cut again by both S&P and Moody’s after it unexpectedly defaulted on a “trust loan” last week, although its shares surged nearly 20% (0813.HK) on reports it was in talks about asset sales with state-backed giant China Vanke. read more

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China Evergrande (3333.HK), the world’s most indebted developer that first triggered the turmoil last year, said it had moved out of its Shenzhen headquarters to cut costs. read more

The company kept a glimmer of hope alive that its first “onshore” Chinese yuan bond default might still be avoided by extending until Thursday a deadline for bondholders to agree to a six-month, 4.5 billion yuan ($157 million) payment deferral. read more

Chinese property firms have faced unprecedented pressure over the last six months following efforts by Beijing to curb overborrowing in the sector.

Reuters reported last week that the government now plans to make it easier for state-backed property developers to buy up assets of struggling private rivals. read more

But the sector’s cash crunch is expected to intensify too with firms needing to make nearly $40 billion of international bond payments over the next six months according to brokerage Nomura, including almost $1.5 billion this week alone.

One of those likely to be highlighted alongside Evergrande on Thursday will be Guangzhou R&F Properties (2777.HK). Its bonds have slumped to deeply distressed levels ahead of a $750 million bond payment due that day . It also has a number of unfinished mega projects in global cities like London.

“I think the worst might be yet to come” said Himanshu Porwal, emerging markets corporate credit analyst at Seaport Global.

“A lot will depend on what the Chinese government does in terms of liquidity measures… But it has been four months already so I don’t know what they would be waiting for.”

China high yield crushed by property collapse

NEW LOWS

The woes of recent days have seen ICE’s China high-yield debt index (.MERACYC), which is dominated by homebuilders, hit an all-time low, while Evergrande and fellow-defaulter Kaisa have seen their bonds ejected from J.P. Morgan’s closely followed emerging market corporate debt index.

S&P and Moody’s both cut Shimao’s rating deeper into the junk category on Monday and warned of potential for a further downgrade.

S&P, which had rated Shimao investment grade as recently as November, cut it by a full two notches. It said, “The decline is worse than we previously anticipated. We now assess the company’s liquidity to be weak.”

Moody’s and Fitch also downgraded Yuzhou Group (1628.HK) due to increased refinancing risk while Moody’s withdrew the rating of another firm, Yango, due to “insufficient information.”

Separately, small developer Modern Land (1107.HK), which missed payment for its 12.85% notes due in October said in a filing on Monday that it has received notices from certain noteholders demanding early repayment of their senior notes.

The developer said it has been discussing a waiver with these creditors and has appointed financial advisers to formulate a plan. It is also in talks on a restructuring plan for $1.3 billion of its offshore bonds, the firm added.

Modern Land shares, which resumed trading after being suspended since Oct. 21, sank 40% in Hong Kong to HK$0.23.

“It’s going to be the peak of repayment period and we’ll see more developers default,” said Kington Lin, managing director of the asset management department at Canfield Securities Limited.

“The market is watching how many SOEs (state-owned enterprises) will get more M&A loans to help the developers in distress.”

Chinese property firms face big bills

(This story refiles to add dropped letter in first paragraph)

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Reporting by Clare Jim and Donny Kwok in Hong Kong, Samuel Shen in Shanghai and Marc Jones in London; ; Editing by Kim Coghill, Shri Navaratnam, Tomasz Janowski and Cynthia Osterman

Our Standards: The Thomson Reuters Trust Principles.

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Airlines Cancel Hundreds More Flights as Virus Scrambles Air Travel

Over 1,000 flights in the United States, and thousands more globally, were canceled Sunday as the Omicron variant of the coronavirus sickened crews during one of the year’s busiest weekends for travel.

As of midday Sunday, more than 1,000 flights with at least one stop in the United States, and over two times as many around the world, had been canceled, according to FlightAware, which provides aviation data.

Sunday’s bleak track record followed thousands of global flight cancellations on Christmas Eve and Christmas Day. The cancellations threatened to disrupt travel plans at a time when many fly to spend the Christmas holiday with their families. In the United States, the tradition appeared to rebound this year: Roughly two million people passed through screening checkpoints each day last week, according to the Transportation Security Administration, and the numbers on Christmas Eve and Christmas Day were nearly double the equivalent figures last year.

Ten percent of JetBlue flights, 5 percent of Delta Air Lines flights, 4 percent of United Airlines flights and 2 percent of American Airlines flights on Sunday had been canceled by midday, according to FlightAware.

Derek Dombrowski, a JetBlue spokesman, confirmed the approximately 110 cancellations reported by FlightAware. JetBlue, he said, entered the holiday season with its highest staffing levels since the onset of the pandemic but, he added, the airline has “seen an increasing number of sick calls from Omicron.”

A United spokeswoman confirmed the roughly 100 canceled flights reported by FlightAware, citing “crew staffing concerns.”

A spokeswoman said Sunday afternoon that Delta had canceled 161 flights and anticipated canceling another 40, along with another 40 on Monday. Earlier this weekend, Delta attributed the spate of cancellations to “winter weather” and “the Omicron variant.”

A spokesman for American Airlines referred an inquiry to FlightAware, which reported 76 cancellations Sunday.

Southwest Airlines canceled just 59 flights, or 1 percent. The cancellations were caused entirely by weather, said Dan Landson, a Southwest spokesman. “We haven’t had any operational issues related to Covid,” he said in an email. Along with United, Delta and American, Southwest is one of the four largest U.S. carriers.

As the Omicron variant spreads rapidly, the United States is experiencing a sharp rise in Covid cases. Its daily average on Christmas of roughly 201,000 daily cases, according to The New York Times’s coronavirus tracker, exceeds the average case load during this summer’s peak, which was driven by the Delta variant.

An airline trade group has asked the Centers for Disease Control and Prevention to shorten the recommended isolation period for fully vaccinated employees who test positive to a maximum of five days from 10 days before they can return with a negative test.

“Swift and safe adjustments by the C.D.C. would alleviate at least some of the staffing pressures and set up airlines to help millions of travelers returning from their holidays,” said Mr. Dombrowski, of JetBlue. The flight attendants’ union, however, has urged that reductions in recommended isolation times should be decided on “by public health professionals, not airlines.”

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White House scrambles to explain Afghanistan chaos while Biden remains defiant

In the first, he sat alone at Camp David, staring upwards at a bank of video monitors surrounded by 18 empty leather chairs. Even some White House officials wondered whether the imagery, including him in a polo shirt, was helpful.

Three days later, when Biden was back at the White House, the picture was much different. He sat in suit and tie at the head of the Situation Room conference table, mask hanging off one ear as he scowled toward the assembled members of his national security team. The same team assembled a day later to “manage efforts in Afghanistan,” the White House said.

At the same time, officials have sought to proceed with their regular business, scheduling an announcement on Covid vaccine boosters for Wednesday and making clear Biden was still focused on his domestic agenda, including the infrastructure bill making its way through Congress. He spoke Thursday with Democratic lawmakers not about Afghanistan, but about his jobs and infrastructure agenda — a sign the President is intent on maintaining forward momentum, despite the calamity in Kabul.

Biden’s aides still believe the vast majority of the public supports the President’s decision to withdraw troops from Afghanistan, and believe his explanations that there was never a good time to end the war will resonate once the shock of the initial chaos has passed. And they have sought to highlight other achievements this week — like new pandemic-era low unemployment claims and vaccination rates ticking back up — that have been obscured by the Afghanistan crisis.

Yet Biden’s well-known stubborn streak was also on display this week, which one White House official acknowledged was not beneficial as he sought to explain and manage the crisis and seek to restore the credibility of his government.

So far, the President’s reflexive response to the crisis to deflect blame and reject criticism has done little to quiet the questions swirling about whether he properly prepared for the Taliban’s takeover. It has tarnished what had been a carefully-honed image of competence, and Biden’s own explanations for what happened — that the chaos was inevitable and the Afghan army was to blame — belie the empathy that is his chief political characteristic.

Two officials said Biden is scheduled to give remarks on Afghanistan before leaving the White House Friday, during which Biden could tout progress in evacuating people from the country and reiterate his confidence in the decision to end America’s longest war. He’s expected to decamp to his Wilmington, Delaware, home for the weekend, but a second attempt at a Rehoboth Beach vacation on his August calendar — originally set for next week — has been postponed, according to a source with knowledge of Biden’s travel plans.

During this week’s meetings in the White House Situation Room, Biden has focused primarily on bringing order to an unruly situation that he insisted this week was inevitable. He has demanded during tense meetings that his national security team find ways to bring order to the Kabul International Airport, and by Thursday, American warplanes were shuttling thousands of American citizens and Afghans fleeing the Taliban out of the country. Biden has been updated on limitations for how many non-citizens can be brought to the US and options for third-country destinations.

Biden instructed top military commanders who are facilitating the evacuation from Kabul that he doesn’t want to see any empty seats on planes, according to a senior official familiar with the directive, who said the President made clear in the meeting he wants every flight leaving the airport filled to capacity. An official cautioned that, given the chaotic nature of the evacuation, the presidential directive doesn’t always mean it will happen for every flight.

“I told ’em, ‘Get ’em on the planes. Get them out. Get them out. Get their families out if you can,'” Biden said, describing the instructions he delivered to his team in an interview with ABC News.

Caught off guard

The increased pace of evacuations and relative calm inside the Kabul airport was a marked improvement from the start of the week. From the moment the Taliban entered the presidential palace in Kabul on Sunday, it became clear that Biden’s own predictions from last month for how the withdrawal would proceed were wrong. White House officials began discussing then when and how Biden should return from Camp David, the mountainside retreat where he’d originally planned to spend most of this week with members of his family.

Administration officials in Washington had trouble ascertaining what precisely was happening on the ground in Kabul for much of Sunday. Briefing lawmakers by phone, senior officials including Secretary of State Antony Blinken and Defense Secretary Lloyd Austin could provide only the broad outlines of what the situation looked like, according to people familiar with the call.

Even as American diplomats fled the embassy to set up shop inside the Kabul airport, Biden’s aides were wary of putting the President in front of cameras before knowing exactly what was unfolding 6,700 miles away. Officials did determine by Sunday morning they had little choice but to admit they were caught off guard by the speed of the Taliban’s advance.

The next morning, images of desperate Afghans clinging to the fuselage of a departing C-17 cargo plane, some of them falling to their deaths after it took off, left many of Biden’s aides heartbroken and shaken.

“We were stunned,” one senior White House official said.

By midday, Biden had finalized an address to the nation that he flew back to the White House to deliver from the East Room.

In it, he acknowledged the Afghan government’s downfall came more quickly than anticipated, conceding the end of the war was “hard and messy.” But he also cast blame elsewhere: on the Afghan army for collapsing, the country’s president for fleeing and the last administration for tying his hands.

“I stand squarely behind my decision,” he said. “After 20 years, I’ve learned the hard way that there was never a good time to withdraw US forces.”

His remarks did little to quiet critics. A senior White House official said a day later that “there is no second-guessing of the President’s strategy,” but acknowledged that far more had to be done to explain how the crisis escalated and the government was blindsided by the Taliban’s surge.

Still, the official stressed the administration was focused “on looking forward, not looking back.”

“Yes, our competence is being questioned,” the official told CNN. “The only way to fix that is to stabilize the airport and safely withdraw Americans and our partners to the best of our ability.”

Having it both ways

Attempting to contain the fallout of the US’ harried exit, Biden has often tried to have it both ways. He declared “the buck stops with me,” yet he also shifted blame to his predecessor and to an Afghan government and military unwilling to stand up to the Taliban.

He promised not to “shrink from my share of responsibility for where we are today,” yet he also insisted the roundly panned US exit could not have been handled better. And even as he claimed the US had prepared for “every contingency,” he also concluded that chaos in Kabul was inevitable.

The defiance was especially striking in light of Biden’s pledge to Americans to acknowledge mistakes and “take responsibility for what I do and say,” a vow that was meant as a contrast to his predecessor, former President Donald Trump, who never took responsibility for his administration’s failings.

Behind the scenes, White House officials have been wary of characterizing the lightning fast fall of Kabul as an “intelligence failure” even as they acknowledged they did not anticipate the rapid takeover. On Wednesday, Chairman of the Joint Chiefs of Staff Gen. Mark Milley said even the most concerning US intelligence estimates of a rapid collapse of the US-backed government in Kabul spoke of “weeks to months.”

A senior White House official said there are no plans for anyone to be fired or resign over how the exit unfolded, as some critics have suggested.

Congressional critics

Biden’s speech also did little to allay the growing demands from members of Congress for answers from the administration about what went wrong. An aide to House Speaker Nancy Pelosi said she has requested several briefings from the White House on Afghanistan, including an unclassified virtual briefing for all House members on Friday and a Tuesday morning in-person classified briefing when Congress returns from its summer recess next week.

All senators will receive an unclassified virtual briefing from Blinken, Austin and Milley on Friday afternoon, two Senate officials said. And the so-called “Gang of 8,” which includes top House and Senate leaders and intelligence committee chairs, is also due to be briefed by administration officials soon.

White House officials have taken seriously the pointed questions even from some Democrats — including Sen. Mark Warner of Virginia, the Democratic chairman of the Intelligence Committee, who said he and other lawmakers had “tough, but necessary questions about why we weren’t better prepared for a worst-case scenario involving such a swift and total collapse of the Afghan government and security forces.”

Top White House aides have been communicating with Democratic lawmakers this week, including by sending a set of talking points on Monday in an effort to contain the criticism coming from some of Biden’s allies. But the points contained some factual errors and were missing important context — like claiming there are no “boots on the ground” in Syria, despite around 900 troops still there.

But two decades after the war began, many veterans are now members of Congress, with pointed criticism and tough questions of their own that go well beyond any talking points from the administration.

“I’m not sitting here on TV and criticizing President Biden because I’m trying to get attention or something. This is just the right thing to do,” said Democratic Rep. Seth Moulton of Massachusetts, a Marine who served in Iraq. “So I don’t really care whether the President wants to talk with me or not. I just want him to execute this mission. I want him to get it right.”

The questions of competency go beyond the events of the past week.

Democratic Rep. Jason Crow of Colorado, a former Army Ranger who served in Afghanistan, said the administration must answer for why the evacuation of American citizens and Afghan allies didn’t start earlier this summer.

“I’m still trying to figure out what their plan was,” Crow said. “We could have been so much further ahead.”

Across the government, major questions remain unanswered about how Americans in other parts of Afghanistan will get to Kabul for flights out. White House officials have quietly inquired with the Pentagon over ways to help those not within the capital city. And those trying to access the airport still must pass through a gauntlet of Taliban checkpoints, and the scene just outside the facility remains volatile.

Asked how many American citizens remain in Afghanistan on Thursday, Pentagon press secretary John Kirby answered frankly: “I don’t know.” Pressed on the same matter, State Department spokesman Ned Price also couldn’t say.

At the White House, Biden huddled Thursday morning with members of his national security team, who were seen arriving to the West Wing around 10 a.m. ET. The White House also made a point of telling reporters Biden was focused on other areas of his agenda, including Covid and his “Build Back Better” agenda, which he was phoning members of Congress to discuss.

After going 48 hours after Kabul fell without speaking with a foreign counterpart, Biden placed calls on Tuesday and Wednesday to British Prime Minister Boris Johnson and German Chancellor Angela Merkel, and was expected to speak with France’s Emmanuel Macron by the end of the week. He will face the entire Group of 7 in a virtual session next week that was scheduled due to the emergency unfolding in Afghanistan.

Like Biden, those leaders are now scrambling to extricate the Afghan workers who assisted during the war as interpreters, guards and fixers. Thousands of Afghans who supported the US war effort remain mired in paperwork and red tape, unable to benefit from the safe passage they were promised by the American government. Why the effort to evacuate those Afghans did not begin earlier this year has become the subject of scrutiny for members of Congress, who warned the administration repeatedly that it was lagging behind.

Administration officials have said Afghanistan’s ousted president Ashraf Ghani — who surfaced this week in the United Arab Emirates after fleeing Kabul on Sunday — had pleaded with Biden to hold off on a mass evacuation earlier this week, saying it could erode confidence in his government.

They have also pointed to various hurdles that slowed the processing of the “special applicant visas,” including a massive Covid outbreak at the US embassy in Kabul. And an official said Biden’s deputy national security adviser Jonathan Finer had chaired 11 meetings on SIVs between April 13 and August 6.

Still, the backlog has prompted anger and sparked an informal network of former US service members and diplomats to try and secure safe passage for their former colleagues.

And after describing photos of desperate Afghans as “gut-wrenching” on Monday, by Wednesday Biden appeared largely dismissive of the images of crowded warplanes and falling bodies: “That was four days ago, five days ago!” he said in the ABC News interview, two days after the incident occurred.

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Tyson Scrambles to Regain Chicken Profit as New Competitor Looms

(Bloomberg) — Tyson Foods Inc., the top poultry producer in the U.S., is racing to get its chicken unit back on track as a new, formidable competitor emerges.

The third and sixth biggest U.S. chicken companies, Sanderson Farms Inc. and Wayne Farms Inc., are combining in a $4.53 billion deal, according to a statement Monday from buyers Cargill Inc. and Continental Grain Co. The deal comes as Tyson’s chicken unit posted a loss in its third quarter amid a series of headaches including high feed prices, production challenges and millions in legal costs stemming from price-fixing lawsuits.

A bigger, better version of Sanderson Farms isn’t good news for Tyson. The company is “arguably the best chicken producer in the country, and perhaps the world,” JPMorgan Chase & Co. analysts including Ken Goldman said in a note. Returns over the years have been better than Tyson’s, and its market share increased as a result.

“Chicken is our top priority for me and for our company,” Tyson Chief Executive Officer Donnie King told analysts in a call Monday to discuss financial results. “We continue to be laser-focused and making progress in restoring the competitiveness of our chicken segment.”

Tyson Foods executives declined to comment on competitors, saying they’re focused on improving their own business.

The merger with Wayne Farms is also striking because of the recent attention that antitrust in the meat sector is attracting. The industry is growing ever more concentrated, and meat companies have argued that only scale can provide the world with affordable meat amid increasing demand. Still, legislators in the U.S. have begun scrutinizing the industry more than usual, and debating whether protein companies are too big and too few. In particular, the U.S. Department of Justice has charged several now-former executives of chicken companies with price-fixing.

Despite its chicken woes, booming demand for beef from restaurants reopening in the U.S. helped the company to beat estimates for both sales and profits. Tyson reported adjusted third-quarter earnings per share of $2.70, compared to an average estimate of $1.63, while sales came in at $12.48 billion compared with estimates for $11.49 billion.

Elevated prices for feed, freight and packaging also mean Tyson is getting squeezed by inflation, which it estimated at 14% in the quarter. Some of that will be offset by price gains expected next month.

“Costs are hitting us faster than we can get pricing at this point,” King said.

Shares for the meat giant rose as high as 6% to $75.39, while Sanderson Farms touched a record $195.97.

Other highlights in Tyson’s earnings include:

The company’s operating income declined due to higher legal fees, weather and Covid-19-related disruption and problems with hatching rates in the chicken unit.For fiscal 2021, Tyson estimates $325 million in expenses associated with the impact of COVID-19 with some becoming permanent over time.

(Updates throughout including CEO comment in fourth paragraph.)

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