Britain says Abbas Holocaust remarks ‘deeply concerning’

FILE PHOTO: Palestinian President Mahmoud Abbas waves in Ramallah, in the occupied West Bank May 1, 2018. Picture taken May 1, 2018. REUTERS/Mohamad Torokman

LONDON (Reuters) – Britain said on Thursday that recent remarks by Palestinian President Mahmoud Abbas on the Holocaust were “deeply concerning” and unhelpful to peace in the region.

Israel has accused Abbas of anti-Semitism and Holocaust denial after the Palestinian leader suggested in a speech that historic persecution of European Jews had been caused by their conduct.

“Palestinian President Abbas’s comments at the Palestinian National Congress were deeply concerning. Any attempt to justify or explain away any element of the Holocaust is unacceptable,” Britain’s Middle-East minister Alistair Burt said in a statement.

“President Abbas has shown a commitment to non-violence and a two-state solution. But his recent rhetoric does not serve the interests of the Palestinian people and is deeply unhelpful to the cause of peace.”

(Reporting by William James, editing by Estelle Shirbon)

Crash of U.S. military plane in Georgia kills all nine on board

The site of a military plane crash is seen in Savannah, Georgia. JAMES LAVINE/via REUTERS

By Phil Stewart

(Reuters) – All nine people on board were killed when a Puerto Rico Air National Guard cargo plane crashed on Wednesday near Savannah, Georgia, scattering fiery debris over a highway and railroad tracks, authorities said on Thursday.

Officials said the plane, a Hercules WC-130, was believed to be around 50 years old but was in good mechanical condition, and was making what had been scheduled to be its last flight. Officials said it was too soon to speculate about the cause of the crash. The WC-130 is a transport workhorse of the U.S. military.

The plane went down at about 11:30 a.m. (1530 GMT), shortly after takeoff from the Savannah/Hilton Head International Airport, about 175 miles (280 km) southeast of Atlanta, officials said.

All nine crew members died, Brigadier General Isabelo Rivera, assistant general of the Puerto Rico Air National Guard, said in a statement, adding their names will not be released until their relatives have been notified.

Rivera said the National Guard and U.S. Air Force had launched an investigation, and that it was too early to talk about what may have caused the crash.

The plane, which was on a training mission, was headed to the Aerospace Regeneration and Maintenance Group in Tucson, Arizona and was going to be essentially retired after Wednesday’s flight, Major Paul Dahlen, spokesman for the Puerto Rico National Guard, told Pentagon reporters.

“It was basically its last flight,” Dahlen said. “Although it was an older aircraft, it was in good mechanical condition. I think it was 50-plus years old, but it was still, with all of the modern updates of a regular (WC-130).”

Of the nine people on board, five were crew members and four were passengers who were military maintenance and operations personnel, all from the Puerto Rico Air National Guard.

The four-engine plane sent up a towering cloud of black smoke, with a tail wing coming to rest on a highway median, television images showed. A witness, Michael Garrett, told WSAV-TV on Wednesday the plane was upside down before it crashed.

“That plane really flipped over on its back, slowly, like it was in slow motion,” Garrett said.

Gena Bilbo, spokeswoman for the Effingham County Sheriff’s Department, told reporters it was “an absolute miracle” that no vehicles were hit in the busy intersection at the crash site.

The crash was at least the fifth fatal accident involving a U.S. military aircraft since early April.

In July last year 16 service members were killed in a WC-130 crash in Mississippi.

(Reporting by Phil Stewart in Washington; Additional reporting by Ian Simpson in Washington, Bernie Woodall in Fort Lauderdale, Fla, and Gina Cherelus in New York; Editing by Peter Cooney and Frances Kerry)

With Jews largely gone from Iraq, memories survive in Baghdad and Israel

A Jewish holy scroll is seen on display at the Babylonian Jewry Heritage Center in Or Yehuda, Israel, April 16, 2018. REUTERS/Amir Cohen

By Maher Chmaytelli, Jeffrey Heller and Stephen Farrell

BAGHDAD/JERUSALEM (Reuters) – Behind the high concrete walls of Baghdad’s Jewish cemetery, Violette Saul lies at rest under a weathered and cracked tombstone, one of the last memorials to an ancient community that is now all but extinct.

The Iraqi nurse was buried a decade ago alongside thousands of others in the sands of a country where her community thrived for more than 2,500 years.

Drive west to the shores of the Mediterranean – just a day’s journey geographically but a world away politically – and there is a lament inscribed at the entrance to the Babylonian Jewry Heritage Centre in Israel – “The Jewish community in Iraq is no more”.

It is no accident that such a somber epitaph to Iraq’s Jews should be found in Israel, where tens of thousands of them fled after 1948 amid the violent spasms that accompanied the birth of that state.

That transplanting of an educated, vibrant and creative community unquestionably enriched Israel, which celebrates its 70th anniversary on Wednesday.

But it also denuded Iraq of a minority that had long contributed to its political, economic and cultural identity.

In 1947, a year before Israel’s birth, Iraq’s Jewish community numbered around 150,000. Now their numbers are in single figures. And they are missed.

Ziyad al-Bayati, an Iraqi Muslim who looks after the rarely visited graveyard near the East Baghdad neighborhood Sadr City, said his father used to reminisce about an Iraq in which ethnic communities lived together.

It was a time, Bayati said, that predated the turmoil around Israel’s creation, the wars of later years, and the 2003 U.S.-led invasion that toppled Saddam Hussein and unleashed years of sectarian bloodshed.

“My father used to say it was the good times when people lived peacefully side by side,’ said Bayati, 48. “There is no concern shown for the cemetery, (even if) the culture of people here is to respect the dead and their graves.”

The chronology of Jews in Iraq stretches back some 4,000 years to the biblical patriarch Abraham of Ur, and to the Babylonian monarch Nebuchadnezzar, who sent Jews into exile there more than 2,500 years ago.

OLD LAND TO NEW LAND

The creation of Israel in 1948 and its successive defeats of Arab armies caused further bursts of popular anger and violence against Jews, an episode of history that is written in graves n the cemetery, where five Iraqi Jews accused of spying for Israel now lie side by side.

Between 1950 and 1952 about 125,000 Iraqi Jews were airlifted to Israel. Each came with one suitcase, and all had to give up their Iraqi citizenship.

Aharon Ben Hur, 84, who immigrated from Iraq to Israel in 1951, is seen in his house in Rehovot, Israel, April 16, 2018. Picture taken April 16, 2018. REUTERS/Amir Cohen

Aharon Ben Hur, 84, who immigrated from Iraq to Israel in 1951, is seen in his house in Rehovot, Israel, April 16, 2018. Picture taken April 16, 2018. REUTERS/Amir Cohen

For one of them, Aharon Ben Hur, memories of Iraq are bitter. Now 84 and the owner of two falafel restaurants in Tel Aviv, he recalled the 1941 Farhud pogrom that killed more than 180 Jews during the Jewish festival of Shavuot. His father and younger brother were among them.

“They were thrown from the second floor. My father died ten days later and the boy almost immediately. He held him in his hands, and they threw them down 100 stairs. I was saved,” Ben Hur said.

He left early, in 1951. Some hung on much longer. Emad Levy, 52, was the last of Baghdad’s Jews to immigrate to Israel, in 2010.

“We kept our tradition, the holidays, the synagogue,” he told Reuters during the build-up to Israel’s Independence Day. “But it’s not the joy you feel here during a holiday, walking down the street where most people are Jewish.”

Levy is among perhaps 600,000 Israelis, out of a population of some 8.8 million, who can claim a measure of Iraqi ancestry, according to the heritage center in the town of Or Yehuda near Tel Aviv.

Inside a building built in the style of a traditional two-story Jewish home in Baghdad, there are displays of religious and cultural artefacts of Jewish life in Iraq through the centuries. Visitors walk through the reconstructed crooked alleys of Baghdad’s Jewish quarter and view a scaled-down replica of the city’s Great Synagogue.

Exhibits at the museum depict a hard landing for the Iraqi immigrants in the early years of Israel, where Ashkenazim, or Jews of European descent, were the ruling elite and Sephardim, Jews with roots in the Middle East, faced prejudice.

One photo shows Iraqi newcomers being sprayed with DDT pesticide. A tent has been erected on the floor, showing how the immigrants were initially housed.

But it also records how Iraqi Jews have gone on to become generals in the Israeli military, cabinet ministers, legislators, business executives, entertainers and celebrated writers.

Few expect ever to go back, amid the violent turmoil that still envelops Iraq, Syria, Yemen, and other countries which once had thriving Jewish communities.

An Iraqi man walks inside a Jewish cemetery in the Sadr City district of Baghdad, Iraq April 1, 2018. Picture taken April 1, 2018. REUTERS/Wissm Al-Okili

An Iraqi man walks inside a Jewish cemetery in the Sadr City district of Baghdad, Iraq April 1, 2018. Picture taken April 1, 2018. REUTERS/Wissm Al-Okili

Now aged 90, Zevulun Hareli joined a Jewish self-defense underground movement in Iraq, and recalls the fate of some of his fellow Zionists in 1948.

“They were children, 14 or 15. They were tortured. They were hanged. Their genitals were burned,” said Hareli, who immigrated to Israel in 1949. “Iraq said Zionism is a crime.”

Some still harbor more positive sentiments. Edwin Shuker, who was born in Iraq, has made several visits to the Baghdad cemetery in recent years, sometimes bringing people who want to say Kaddish – the Jewish prayer for the dead – over the graves.

He says he is welcomed by Iraqis when he goes back, and encounters nostalgia for a time when Iraq included a “mosaic” of minorities.

“No-one is going to move back,” concedes Shuker, 62, who had to escape Iraq in 1971. “However there are many who would be very receptive to visiting their shrines and where there ancestors are buried. The Iraqi Jewish community is the most ardent Jewish community, probably anywhere, that is so attached to its birthplace, because of its history.”

(Writing by Maher Chmaytelli and Jeffrey Heller; Additional reporting by Maayan Lubell in Jerusalem; Editing by Andrew Heavens)

U.S. returns thousands of smuggled ancient artifacts to Iraq

A man photographs artifacts on display, as U.S. Immigration and Customs Enforcement (ICE) hosts an event to return several thousand ancient artifacts to the Republic of Iraq, at the Iraqi ambassador's residence in Washington, DC, U.S., May 2, 2018. REUTERS/Kevin Lamarque

By Gina Cherelus

(Reuters) – About 3,800 artifacts, including Sumerian cuneiform tablets dating to 2100 B.C., that were illegally smuggled to retailer Hobby Lobby Stores Inc were returned to Iraqi officials in Washington on Wednesday.

U.S. Immigration and Custom Enforcement officials signed over the artifacts to Iraqi Ambassador Fareed Yasseen at his Washington residence, with some of the artifacts laid out on a table.

“We will continue to work together to prevent the looting of antiquities and ensure that those who would attempt to profit from this crime are held accountable,” said ICE Acting Director Thomas Homan.

Hobby Lobby, the Oklahoma City-based arts-and-crafts retailer, agreed in July to surrender the antiquities it received and pay $3 million to settle civil proceedings brought by the U.S. Justice Department. Shipping labels on the packages the artifacts arrived in described them as “tile samples,” federal prosecutors said.

The company had purchased more than 5,500 artifacts, according to court documents. It agreed that if it receives any of the remaining antiquities or learns where they are, it must notify the federal government, according to court documents.

Hobby Lobby’s president, Steve Green, is the founder of the Museum of the Bible, which opened in Washington in 2016. Privately held Hobby Lobby has said the seized artifacts were not intended for the museum. It has not said what it planned to do with them.

The forfeited packages included tablets with cuneiform script, one of the earliest systems of writing in ancient Mesopotamia. Many of the tablets come from the ancient city of Irisagrig and date to 2100 B.C. through 1600 B.C. primarily, known as the Ur III and Old Babylonian periods.

Justice Department officials have said Hobby Lobby’s 2010 purchase of $1.6 million in ancient artifacts through dealers in the United Arab Emirates and Israel was “fraught with red flags,” saying the company had ignored warnings that the items could have been looted from archaeological sites in Iraq.

When the company disclosed its settlement with the Justice Department in July, Green said Hobby Lobby should have “carefully questioned how the acquisitions were handled.”

A representative of the company did not respond to a request for comment on Wednesday.

Hobby Lobby and the Green family drew headlines in 2014 when the Supreme Court ruled the craft store chain and Conestoga Wood Specialties of Pennsylvania could refuse to cover contraceptives in their employees’ health insurance due to its owners’ religious beliefs.

(Reporting by Gina Cherelus in New York; editing by Scott Malone, Bill Trott and Jonathan Oatis)

Another 49 Central Americans from caravan cross U.S. border

People traveling with a caravan of migrants from Central America line up for eat at a camp near the San Ysidro checkpoint, after U.S. border authorities allowed the first small group of women and children entry from Mexico on Monday night, in Tijuana, Mexico May 1, 2018. REUTERS/Edgard Garrido

By Delphine Schrank

TIJUANA, Mexico (Reuters) – Forty-nine Central Americans from a migrant caravan that angered President Donald Trump crossed into the United States to seek asylum on Wednesday morning, while dozens more woke to a rainy, cold third day camped outside a U.S. port of entry.

The 49 migrants, including a first group of mostly women, children and transgender people who had been waiting at the U.S. gate for about 15 hours, were let through by midday, according to the group’s organizers, raising the total number of migrants who had crossed to 74.

Since Monday, border officials have allowed only a trickle at a time to cross the U.S. border, saying that the busy San Ysidro crossing to San Diego is saturated and the rest must wait their turn.

More than 100 members of the caravan, most from Honduras, Guatemala and El Salvador, have been camped in a square near the entrance of the San Ysidro pedestrian bridge that leads from Mexico to the United States, waiting for their turn to enter the facility.

A group of people travelling with a caravan of migrants from Central America line up to eat at a camp near the San Ysidro checkpoint, after U.S. border authorities allowed the first small group of women and children entry from Mexico overnight, in Tijuana, Mexico May 1, 2018. REUTERS/Edgard Garrido

A group of people travelling with a caravan of migrants from Central America line up to eat at a camp near the San Ysidro checkpoint, after U.S. border authorities allowed the first small group of women and children entry from Mexico overnight, in Tijuana, Mexico May 1, 2018. REUTERS/Edgard Garrido

At least 28 migrants who made it into the United States on Wednesday had been next on the list. Late Tuesday they had anxiously filed through the walkway to the U.S. gate.

Two by two, some walked up to a U.S. Customs and Border Protection officer standing in the gate to ask if they might pass through.

First to try was a man and his small nephew, a football under his arm; then a mother and child; then a women with her grandsons.

Turned away, they bedded down in a small space pressed up against metal bars separating them from the United States, bundled against the cold under blankets and sheets of tarpaulin tenting.

No one knew when, or how many of them, would next be allowed through.

Among them was Reina Isabel Rodriguez, who had fled Honduras with her grandsons. Throughout the caravan’s 2,000-mile (3,220-km) odyssey from southern Mexico, the possibility that U.S. officials might reject her plea for asylum, and of being separated from the boys for not being their biological parent, had never seemed so real.

“I’m scared, I’m so scared, I don’t want to be sent home,” she said, tears streaming down her face. Christopher, 11, watched her with anguish, and Anderson, 7, sat at her feet, his head drooping, a toy robot in his lap.

Rodriguez was among the many migrants of the caravan who told Reuters they were forced from their homes by Central America’s brutal Mara street gangs, along with other life-threatening situations.

Trump’s administration, however, cites a more than tenfold rise in asylum claims in the past seven years, growing numbers of families and children and a shift to more Central Americans as signs that people are fraudulently taking advantage of the system.

Trump wants to tighten U.S. law to make it harder for people to claim asylum. For now though, despite his orders to keep such migrant caravans out of the country, international and U.S. law obliges the government to listen to people’s stories and decide whether they deserve shelter.

The U.S. Department of Justice said on Monday it launched prosecutions against 11 “suspected” caravan members on charges of crossing the border illegally.

About half of them are represented by the federal public defender in San Diego, according to the office’s chief trial attorney, Shereen Charlick, including three women who had planned to present themselves and their children to make asylum claims at the official border port of entry.

Long lines at the entry point led the women and their children to try crossing a few miles away, she said, where they were apprehended by immigration authorities. Defense lawyers are trying to track down the location of their children, Charlick said.

She said some of the mothers apprehended are no longer with their children, and that lawyers in the office are trying to figure out how they were separated.

Nicole Ramos, an attorney advising caravan members in Mexico, said she did not believe the individuals facing U.S. criminal charges were part of the caravan group.

“Quite a few people have claimed to be part of the caravan, including a sizable contingent of Guatemalan men who were never part,” Ramos said.

(Reporting by Delphine Schrank, editing by Robert Birsel and Jonathan Oatis)

Iowa passes ‘fetal heartbeat’ abortion ban, most restrictive in U.S.

Opponents of a California law, requiring anti-abortion pregnancy centers to post signs notifying women of the availability of state-funded contraception and abortion, hold a rally in front of the U.S. Supreme Court in Washington, U.S., March 20, 2018. REUTERS/Andrew Chung

By Barbara Goldberg

(Reuters) – Iowa’s Republican-controlled legislature passed the most restrictive abortion ban in the United States on Wednesday, outlawing the procedure after a fetal heartbeat is detected, often at six weeks and before a woman realizes she is pregnant.

The Senate voted 29-17 to pass the House of Representatives-approved bill, according to the legislature’s online voting tallies. The bill now goes to Republican Governor Kim Reynolds, an abortion opponent, who has not said publicly whether she will sign it into law.

The legislation is aimed at triggering a challenge to Roe v. Wade, the U.S. Supreme Court’s 1973 landmark decision which established that women have a constitutional right to an abortion, activists on both sides of the issue said.

Abortion opponents aim to land abortion questions back in front of the nation’s top court, where they believe the 5-4 conservative majority could sharply curtail abortion access or ban it outright.

“We created an opportunity to take a run at Roe v. Wade – 100 percent,” said Republican state Senator Rick Bertrand of Sioux City, who said the legislation is designed to be “thrust into the court” that has become more conservative following President Donald Trump’s appointment of Justice Neil Gorsuch.

Spokeswoman Becca Lee of Planned Parenthood of the Heartland, which supports access to abortion, called it an “intentionally unconstitutional ban on 99 percent of safe, legal abortion, designed to challenge Roe v. Wade.”

“The bill weaponizes fetal heartbeat, which is by all accounts an arbitrary standard that bans abortion long before the point of fetal viability,” Lee said in an email to Reuters.

Mississippi’s Republican governor in March signed into law a bill banning abortion after 15 weeks with some exceptions, sparking an immediate court challenge by abortion rights advocates.

A similar court challenge is underway in Kentucky, which in April enacted a ban on a common abortion procedure from the 11th week of pregnancy.

The newest Iowa bill, which the state Senate passed early Wednesday after overnight wrangling by lawmakers, requires any woman seeking an abortion to undergo an abdominal ultrasound to screen for a fetal heartbeat. If one is detected, healthcare providers are barred from performing an abortion.

Among the few exceptions are if the woman was raped or a victim of incest and has reported that to authorities.

The bill would ban most abortions in the state and was passed in the final days of the Iowa legislative session.

(Reporting by Barbara Goldberg in New York; editing by Scott Malone and Jonathan Oatis)

Note from Editor:  Links to our shows with  Janet Porter and Congressman Tom DeLay.

Join the Fight to Save Babies 

Heartbeats, the miracle of Life 

Too many cancer drugs? Crowded market gives investors pause

FILE PHOTO: A scientist prepares protein samples for analysis in a lab at the Institute of Cancer Research in Sutton, July 15, 2013. REUTERS/Stefan Wermuth/File Photo

By Ben Hirschler

LONDON (Reuters) – In London’s world-famous Great Ormond Street children’s hospital, Dr. Karin Straathof is excited about a new cell-based medicine that offers hope for toddlers with incurable nerve tissue cancer.

Her progress with a handful of children for whom standard care does not work reveals the promise of modern cancer drugs, an increasingly crowded pharmaceuticals field from which investors must try to select future winners.

The new therapy using engineered white blood cells has shown anti-tumor activity in the hardest to treat neuroblastoma patients.

“The beauty is that it is very specific in targeting the cancer cells, while leaving healthy tissue unharmed,” Straathof told Reuters, after presenting her early findings at a science meeting in Chicago in April. “It’s an important step forward.”

Autolus – the small British biotech company developing the chimeric antigen receptor T-cell or CAR-T treatment – is equally excited, and is planning a potential IPO on Nasdaq.

But Autolus is far from alone in pursuing CAR-T therapy. In fact, CAR-T treatment – part of the wider field of cancer immunotherapy – is one of the hottest areas of drug research today, with multiple firms piling in.

The biotech dollars are flooding in not only in Europe and the United States but also in China which, with 162 clinical trials, now boasts more CAR-T studies than the United States, according to a Reuters analysis of the latest data.

With over 2,000 drugs in the cancer immunotherapy space, the competitive landscape has never been more crowded as each firm seeks its own proprietary version of often similar drugs.

Overall, researchers are working on more than 5,200 cancer drugs, up 7.6 percent from a year ago, according to the Pharmaprojects database. The sheer number is stretching the ability of scientists to find enough patients to test them on.

Cancer now makes up 34.1 percent of the total drug industry pipeline, up from 26.8 percent in 2010, as companies divert resources into a promising sector where new treatments can often fetch more than $100,000 a year.

‘MORE CIRCUMSPECT’

With the first two CAR-T treatments from Novartis and Gilead Sciences winning U.S. approval last year for rare blood cancers, the promise of such smart medicine is real and life-changing – especially if it can be made to work in solid tumors, as Straathof’s work suggests is possible.

However, the wholesale rush by pharmaceutical and biotech companies into the cancer area poses a dilemma for investors.

A flood of similar products makes it hard for investors to pick those companies that will achieve commercial success.

“More competition means you should be more circumspect,” said Nooman Haque, head of life sciences at Silicon Valley Bank in London, which provides financing for start-ups and venture capitalists.

“The traditional investment thesis in biotech is to have a differentiated medicine with not many competitors, which helps drive value. Here the problem is that even if there is a big patient benefit, there are questions as to how long your advantage lasts and what your commercial edge will be.”

Pharmaceutical executives are not blind to the issue, although each hopes to find a winning formula in immunotherapy – the fastest-growing part of the $100 billion-a-year cancer drug market, with sales expected to top $25 billion by 2021, according to analyst forecasts compiled by Thomson Reuters.

Roche <ROG.S> CEO Severin Schwan, head of the world’s top cancer company, says he expects “an enormous drop-out”, while Sanofi’s  outgoing research head Elias Zerhouni warned analysts last week that duplication of effort would shrink the time available for drugmakers to recoup their  investments.

“The cycle of innovation has been shortened significantly,” agrees Aiman Shalabi, chief medical officer at the non-profit Cancer Research Institute. “There is no doubt we are seeing fast follow-on and many identical agents hitting the same targets.”

The good news for society is that patients will find out much faster than in the past if new approaches work. But that means doctors can rapidly switch to alternatives, leading to increased product churn and uncertainty over future sales.

COMBINATION STUDIES

Twenty years ago, when Roche launched its state-of-the-art cancer drugs Herceptin and Rituxan, it enjoyed years without rivals. Today, there are multiple versions of new drugs targeting molecular pathways with acronyms such as PD-1/L1, PARP and CDK, as well as CAR-T.

“You’re either first or you’re best or you’re nowhere because it has become such a race,” said Paul Major, an investment manager at BB Healthcare Trust, who is cautious about investing in cancer immunotherapy.

Lydia Haueter at Pictet Asset Management is also wary, pointing out there are already five PD-1/L1 drugs on the market – from Merck, Bristol-Myers Squibb, Roche, AstraZeneca and Pfizer – and more are coming.

“It seems everybody has a PD-1, so we especially don’t go for those kind of cancer companies,” she said.

Some drugmakers like GlaxoSmithKline <GSK.L> and Novartis that missed the initial PD-1/L1 wave are trying to make a virtue of looking ahead to the next phase of cancer immunotherapy, particularly drug combinations.

Yet last month’s failure of a combination study using a next-generation drug from Incyte with Merck’s PD-1 Keytruda shows that adding a new agent is no slam dunk for expanding the reach of immune-boosting medicine.

At Great Ormond Street, Straathof is less concerned about doubling up on research and more focused on getting effective, affordable cures – and she hopes automated processes will eventually bring down today’s sky-high drug prices.

“I’m not too worried about duplication. It’s important to not ask the same question in two trials but I think there are a lot of questions to be addressed because there is a lot of nuance in the system.”

(Reporting by Ben Hirschler; Editing by Pravin Char)

Cyberwarfare, populism top ‘black swan’ events at Milken conference

Thomas Barrack, Executive Chairman, Colony Northstar, speaks at the Milken Institute's 21st Global Conference in Beverly Hills, California, U.S. May 1, 2018. REUTERS/Lucy Nicholson

By Anna Irrera

BEVERLY HILLS, Calif. (Reuters) -Cyberwarfare and populism are some of the top risks that could threaten global stability and financial markets in the years ahead, investors and policymakers warned at the annual Milken Institute Global Conference this week, as they characterized them as black swan events.

Thomas Barrack, founder and executive chairman of Colony Northstar, said cybersecurity was his greatest concern because “if the system itself is hacked or breaks or causes trauma, I am not sure what happens.”

Representative Ed Royce, chairman of the U.S. House of Representatives Foreign Affairs Committee, echoed the sentiment, saying that “Russian weaponization of information” has been one of his main concerns.

“The impact that is having in terms of the effect on the democratic process there (in Eastern Europe) is very concerning,” Royce said. “Indeed, worldwide Russian efforts in this regard need to be effectively countered, and it’s been many years since we’ve done anything effective.”

Royce, who also expressed concerns about the proliferation of nuclear weapons, called for more aggressive action.

“We need on social media and with respects to our sanctions push-back and make them (Russia) feel the price for doing this,” Royce said.

American intelligence agencies have said that Russia interfered in the 2016 U.S. presidential race to try to help Donald Trump win the presidency. Trump has repeatedly denied receiving help from Moscow for his election campaign, and Russian has denied meddling in the election.

While government and business leaders worldwide have become more aware of cybersecurity risks, the threat may still be underappreciated, some speakers said.

“The cyberwarfare in this world is completely unknown, uncontemplated and has to be grasped as we think about where we are going,” Mary Callahan Erdoes, chief executive officer of JPMorgan Asset Management, said on Monday.

Others cited rising populism in the West as one of the biggest risks for the global economy and market stability.

“My black swan is politics, politics in the West which is getting bust,” said Peter Mandelson, a former European trade commissioner and British first secretary of state. “And bust politics has two effects. It generates populist nationalist pressures on government and regulators, draws them more into the economy, onto the backs of businesses and makes decision-making by investors and businesses much more difficult.”

Although speakers did share what might keep them up at night in the coming months, the outlook was generally upbeat at the event, with Citigroup Inc <C.N> CEO Michael Corbat describing the current state of affairs as being “OK.”

Ironically, the mood was so positive that some speakers worried about excessive optimism.

“I am really concerned regarding the overwhelming optimism, which we observed over the past two days,” said Hiro Mizuno, chief investment officer for Japan’s Government Pension Investment Fund. “People say nothing matters to the capital markets, so that is scary.”

Chris Stadler, managing partner at CVC Capital, added: “When you sit here and…you talk about all these things hitting on all cylinders and you don’t know what could change it, you’re coming close to an event.”

(Reporting by Anna Irrera; Additional reporting by Liana Baker; Editing by Jennifer Ablan and Leslie Adler)

Colombian vet charged in U.S. with smuggling heroin in puppies’ bellies

Drug Enforcement Administration photo shows puppies as DEA announces an indictment charging Andres Lopez Elorez with conspiring to import and distribute heroin into the U.S. by surgically implanting these puppies with liquid heroin 12 years ago, in this image released in New York, U.S., on May 1, 2018. DEA/Handout via REUTERS

By Jon Herskovitz

(Reuters) – A veterinarian from Colombia was charged with illegally smuggling narcotics into the United States by surgically implanting packets of liquid heroin into the bellies of puppies, U.S. prosecutors said on Tuesday.

Andres Lopez Elorez was arraigned in a federal court in Brooklyn on Tuesday on an indictment of conspiring to import and distribute heroin into the United States, the U.S. Attorney’s Office for the Eastern District of New York said.

Elorez, 38, pleaded not guilty, U.S. news reports said.

His court-appointed lawyer, Mitchell Dinnerstein, said his client “doesn’t have any real connection” to the United States, the New York Times reported. Dinnerstein was not immediately available for comment.

Elorez faces up to life imprisonment if convicted, U.S. prosecutors said.

“Dogs are man’s best friend and, as the defendant is about to learn, we are drug dealers’ worst enemy,” Richard Donoghue, U.S. attorney for the Eastern District of New York, said in a statement.

Elorez is suspected of taking part in a conspiracy to bring drugs into the country more than a decade ago, prosecutors said.

The puppies, mostly purebred dogs including Labrador retrievers, had their bellies cut open and heroin stitched in. They were then exported to the United States with the smugglers hoping the dogs’ pedigrees would help ease their path through customs, the U.S. Drug Enforcement Administration has said.

A 2005 raid in Colombia found 10 dogs to be used as drug couriers who were rescued, but many puppies died in the operation, it said.

Elorez was arrested in Spain and extradited to the United States, prosecutors said.

“He betrayed a veterinarian’s pledge to prevent animal suffering when he used his surgical skills in a cruel scheme to smuggle heroin in the abdomens of puppies,” Donoghue said.

(Reporting by Jon Herskovitz; Editing by Paul Tait)

South Korea says it wants U.S. troops to stay regardless of any treaty with North Korea

FILE PHOTO: U.S. army soldiers take part in a U.S.-South Korea joint river-crossing exercise near the demilitarized zone separating the two Koreas in Yeoncheon, South Korea, April 8, 2016. REUTERS/Kim Hong-Ji

By Christine Kim

SEOUL (Reuters) – South Korea said on Wednesday the issue of U.S. troops stationed in the South is unrelated to any future peace treaty with North Korea and that American forces should stay even if such an agreement is signed.

“U.S. troops stationed in South Korea are an issue regarding the alliance between South Korea and the United States. It has nothing to do with signing peace treaties,” said Kim Eui-kyeom, a spokesman for the presidential Blue House, citing President Moon Jae-in.

The Blue House was responding to media questions about a column written by South Korean presidential adviser and academic Moon Chung-in that was published earlier this week.

Moon Chung-in said it would be difficult to justify the presence of U.S. forces in South Korea if a peace treaty was signed after the two Koreas agreed at an historic summit last week to put an end to the Korean conflict.

However, Seoul wants the troops to stay because U.S. forces in South Korea play the role of a mediator in military confrontations between neighboring superpowers like China and Japan, another presidential official told reporters on condition of anonymity earlier on Wednesday.

Presidential adviser Moon Chung-in was asked not to create confusion regarding the president’s stance, Kim said.

The United States currently has around 28,500 troops stationed in South Korea, which North Korea has long demanded be removed as one of the conditions for giving up its nuclear and missile programs.

However, there was no mention in last week’s declaration by Moon Jae-in and North Korean leader Kim Jong Un of the withdrawal of U.S. forces from South Korea. Kim and Moon Jae-in pledged to work for the “complete denuclearisation” of the Korean peninsula.

U.S. troops have been stationed in South Korea since the Korean War, which ended in 1953 in an armistice that left the two Koreas technically still at war.

Moon Jae-in and Kim have said they want to put an end to the Korean conflict, promising there will be “no more war” on the Korean peninsula.

(Reporting by Christine Kim; Editing by Paul Tait)