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The city of Minneapolis said it is "aware of a shooting involving federal law enforcement" near East 34th Street and Portland Avenue, urging people to avoid the area.
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Federal immigration officials have stepped up enforcement activity in Minnesota amid a fraud scandal there that includes many people of Somali origin.
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The protest at the Grand Bazaar represented the latest signal that the demonstrations are likely to continue. Violence surrounding the protests has killed at least 36 people, activists abroad say.
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