Saudi mass arrests jolt markets, play to ire over corruption

Saudi mass arrests jolt markets, play to ire over corruption

By Katie Paul and Stephen Kalin

RIYADH (Reuters) – Most major Gulf stock markets slid early on Tuesday on jitters about Saudi Arabia’s sweeping anti-graft purge, a campaign seen by critics as a populist power grab but by ordinary Saudis as an overdue attack on the sleaze of a moneyed ultra-elite.

U.S. President Donald Trump endorsed the crackdown, saying some of those arrested “have been ‘milking’ their country for years”, but some Western officials expressed unease about the possible reaction in Riyadh’s opaque tribal and royal politics.

Authorities detained dozens of top Saudis including billionaire Prince Alwaleed bin Talal in a move widely seen as an attempt by Crown Prince Mohammed bin Salman to neuter any opposition to his lightening ascent to the pinnacle of power.

Admirers see it as an assault on the endemic theft of public funds in the world’s top oil exporter, an absolute monarchy.

“Corruption should have been fought a long time ago, because it’s corruption that delays society’s development,” Riyadh resident Hussein al-Dosari told Reuters.

“God willing, everything that happened … is only the beginning of what is planned,” said Faisal bin Ali, adding he wanted to see “correcting mistakes, correcting ministries and correcting any injustices against the general population.”

But some analysts see the arrests as the latest in a string of moves shifting power from a consensus-based system dispersing authority among the ruling Al Saud to a governing structure centered around 32-year-old Prince Mohammed himself.

Investors worry that his campaign against corruption — involving the arrests of the kingdom’s most internationally-well known businessmen — could see the ownership of businesses and assets become vulnerable to unpredictable policy shifts.

INVESTOR NERVES

The Saudi stock index .TASI was down 1.6 percent after 75 minutes of trade. Shares linked to people detained in the investigation led falls. [L5N1ND2CR]

Among them, Prince Alwaleed’s Kingdom Holding plunged by its 10 percent daily limit, bringing its losses in the three days since the investigation was announced to 21 percent.

In Dubai, where Saudis have been significant investors, the index slipped 0.6 percent. The index in Abu Dhabi, less exposed to Saudi money, inched up 0.1 percent. But Kuwait continued to slide, with its index losing 3.8 percent.

The show of investor nerves coincided with sharply heightened strains between Riyadh and Tehran, reflected in a fresh denunciation of adversary Iran by Prince Mohammed over its role in Yemen, and by continuing mutual acrimony over political turmoil in Lebanon, another cockpit of Iranian-Saudi rivalry.

Displaying an apparently undimmed taste for navigating several challenges simultaneously, Prince Mohammed said Iran’s supply of rockets to militias in Yemen is an act of “direct military aggression” that could be an act of war.

He was speaking in a phone call with British Foreign Minister Boris Johnson after Saudi air defense forces intercepted a ballistic missile they said was fired toward Riyadh on Saturday by the Houthis.

Saudi-led forces, which back the internationally-recognized government, have been targeting the Houthis in a war which has killed more than 10,000 people and triggered a humanitarian disaster in one of the region’s poorest countries.

Iran has denied it was behind the missile launch, rejecting the Saudi and U.S. statements condemning Tehran as “destructive and provocative” and “slanders”.

The coincidence of heightened Saudi-Iranian tensions and Saudi domestic political upheaval has stirred unease among some Western governments and analysts about the emergence of an impromptu policy-making style under Prince Mohammed.

“He seems to be pushing the creation of a personalized system of rule without the checks and balances that have typically characterized the Saudi system of governance,” wrote Marc Lynch, professor of political science and international affairs at George Washington University, in the Washington Post.

“In both domestic and foreign affairs, he has consistently undertaken sudden and wide-ranging campaigns for unclear reasons which shatter prevailing norms.”

PIVOTAL POWER BASE

Among those held in the anti-graft purge was Prince Miteb bin Abdullah, who was replaced as minister of the National Guard, a pivotal power base rooted in the kingdom’s tribes. That recalled a palace coup in June that ousted Mohammed bin Nayef as heir to the throne.

A former senior U.S. intelligence official cautioned that given the National Guard’s loyalties, Prince Mohammed, widely known as MbS, could face a backlash.

“I find it difficult to believe that it (National Guard) will simply roll over and accept the imposition of new leadership in such an arbitrary fashion.”

But the crackdown may go some way to soothing public disgust over financial abuses by the powerful, some Saudis say.

“There is no doubt that it (the detentions) soothes the anger of the regular citizen who felt that such names and senior leaders who appeared in the list were immune from legal accountability,” said a Saudi-based political analyst Mansour al-Ameer.

“Its spread to the general population is evidence that no one is excluded from legal accountability, and this will eventually benefit the citizen and (national) development.”

(Reporting by Gulf team, Writing by William Maclean,Editing by Jon Boyle)

Lapse in background check database allowed Texan church gunman to buy weapons: Pentagon

Lapse in background check database allowed Texan church gunman to buy weapons: Pentagon

By Jon Herskovitz and Lisa Maria Garza

SUTHERLAND SPRINGS, Texas (Reuters) – The man who committed the deadliest mass shooting in Texas history was able to buy guns legally from a sporting goods store because a prior domestic violence conviction was never entered into an FBI database used in background checks, officials said.

Devin Kelley, the gunman in Sunday’s massacre at a church in rural southeastern Texas, was found guilty by court-martial of assaulting his first wife and a stepson while assigned to a U.S. Air Force logistics readiness unit in 2012, the Pentagon disclosed on Monday.

The Air Force also acknowledged that it had failed to transmit information about Kelley’s conviction to the National Criminal Information Center (NCIC) system, a U.S. government data bank used by licensed firearms dealers to check prospective gun buyers for criminal backgrounds.

Texas Department of Public Safety spokesman Freeman Martin put the number of victims killed in the attack at 26, including the unborn child of a pregnant woman who died. The dead otherwise ranged in age from 18 months to 77 years.

Twenty others were wounded, 10 of whom remained in critical condition late on Monday, officials said.

Two handguns were found in Kelley’s getaway vehicle, where he died of a self-inflicted gunshot wound to the head after a failed attempt to flee from the scene of Sunday’s shootings, Martin told a news conference on Monday night.

The Air Force opened an inquiry into how it handled the former airman’s criminal record, and the U.S. Defense Department has requested a review by its inspector general to ensure that other cases “have been reported correctly,” Pentagon officials said.

Firearms experts said the case involving Kelley, 26, who spent a year in military detention before his bad-conduct discharge from the Air Force in 2014, had exposed a previously unnoticed weak link in the system of background checks.

It is illegal under federal law to sell a gun to someone who has been convicted of a crime involving domestic violence against a spouse or child.

A sporting goods retail outlet said Kelley passed background checks when he bought a gun in 2016 and a second firearm this year.

Neither the NCIC nor two related databases contained any information that would have barred Kelley from legally buying any of three weapons police recovered from their investigation of the slayings, said Christopher Combs, special agent in charge of the Federal Bureau of Investigation office in San Antonio.

Mass shooting at Texas church – http://tmsnrt.rs/2lZg61c

‘TEXAS HERO’

Police said Kelley stormed into the First Baptist Church in Sutherland Springs, Texas, dressed in black and wearing a human-skull mask, and opened fire on worshippers with a Ruger AR-556 semi-automatic rifle.

Kelley was shot twice – in the leg and torso – by another man, Stephen Willeford, who lived nearby and confronted Kelley with his own rifle as the gunman emerged from the church.

Kelley managed to flee in a sport utility vehicle as Willeford waved down a passing motorist, Johnnie Langendorff. The two then gave chase in Langendorff’s pickup truck until Kelley’s vehicle crashed in a ditch.

Martin later hailed Willeford as “our Texas hero,” crediting him with preventing further carnage in Sunday’s rampage, which ranks as the deadliest mass shooting by a lone gunman in the state and one of the five most lethal in modern U.S. history.

Authorities also said Kelley had been involved in a domestic dispute of some kind with the parents of his second wife, whom he married in 2014, and had sent threatening text messages to his mother-in-law before the shooting.

Although his in-laws were known to occasionally attend services at the church Kelley attacked, Wilson County Sheriff Joe Tackitt said family members were not present on Sunday.

The attack stunned Sutherland Springs, a community of about 400 people. One family, the Holcombes, lost eight members from three generations in the attack, including Bryan Holcombe, an assistant pastor who was leading the service, a relative said.

The first shots came through the windows of the church, according to an account related to CNN by the son of one of the survivors, 73-year-old Farida Brown, who was shot in both legs. The assailant then stalked inside and sprayed the pews with gunfire, walking up and down the aisles targeting people even as they ran for cover or lay on the floor.

Farida Brown was in the last pew, beside a woman who was shot multiple times, her son, David Brown, said.

“She was pretty certain she was next, and her life was about to end. Then somebody with a gun showed up at the front of the church, caught the shooter’s attention. He left and that was the end of the ordeal,” David Brown told CNN.

Martin said investigators found hundreds of spent shell casings inside the church after the shooting, as well as 15 empty 30-round ammunition magazines.

Major shootings in the U.S. – http://tmsnrt.rs/2AgtU9E

(Additional reporting by Jane Ross in Sutherland Springs, Texas; Bernie Woodall in Fort Lauderdale, Florida; and Peter Szekely in New York; Writing by Scott Malone and Steve Gorman; Editing by Jeffrey Benkoe, Lisa Shumaker and Paul Tait)

U.N. calls for Saudi-led coalition to re-open aid lifeline to Yemen

U.N. calls for Saudi-led coalition to re-open aid lifeline to Yemen

By Stephanie Nebehay

GENEVA (Reuters) – The United Nations urged the Saudi-led coalition fighting in Yemen to re-open an aid lifeline to bring imported food and medicine into Yemen, whose 7 million people are facing famine in a country that is already the world’s worst humanitarian crisis.

The Saudi-led coalition fighting the Houthi movement in Yemen said on Monday it would close all air, land and sea ports to the Arabian Peninsula country to stem the flow of arms from Iran.

The Saudis and their allies say the Houthis get weapons from their arch-foe, Iran. Iran denies the charges and blames the conflict in Yemen on Riyadh.

Humanitarian operations – including U.N. aid flights – are currently “blocked” because air and sea ports in Yemen are closed, Jens Laerke of the U.N. Office for the Coordination for Humanitarian Affairs (OCHA) told a news briefing on Tuesday.

The Saudi-led coalition has told the world body to “inform all commercial vessels at Hodeidah and Saleef ports to leave”, he said, referring to Red Sea ports controlled by the Houthis.

“We call for all air and sea ports to remain open to ensure food, fuel and medicines can enter the country,” Laerke said.

“The situation is catastrophic in Yemen, it is the worst food crisis we are looking at in the world today, 7 million people are on the brink of famine, millions of people being kept alive by our humanitarian operations,” he said.

The price of fuel jumped 60 percent “overnight” in Yemen and the price of cooking gas doubled, as long lines of cars are reported forming at petrol stations, he added.

“We hear reports this morning of prices of cooking gas and petrol for cars and so on is already spiraling out of control,” he said. “So this is an access problem of colossal dimensions right now.”

Rupert Colville, U.N. human rights spokesman, said the office would study whether the blockade amounted to “collective punishment”, banned under international law but hoped that it would be temporary.

The U.N. human rights office was deeply concerned at a series of attacks in Yemen over the past week that have killed dozens of civilians, including children, at markets and homes, he said.

These included at least nine air strikes on the Houthi-held city of Sanaa since Saturday, when a missile was fired from Yemen toward the Saudi capital of Riyadh, he said.

The World Health Organization (WHO) also called for medical aid to be allowed to enter Yemen to combat a cholera epidemic which has caused 908,702 suspected cases and 2,194 deaths since the outbreak began in April, WHO spokeswoman Fadela Chaib said.

(Reporting by Stephanie Nebehay,; editing by Larry King)

Kentucky accuses Endo of contributing to opioid epidemic

Kentucky accuses Endo of contributing to opioid epidemic

By Nate Raymond

(Reuters) – Kentucky accused units of Endo International Plc on Monday of contributing to drug overdoses and an opioid epidemic by deceptively marketing its painkiller Opana ER, the latest lawsuit by state or local governments against the drugmaker.

Kentucky Attorney General Steve Beshear said the lawsuit would seek to hold Endo responsible for illegally building a market for the long-term use of opioids in the state as part of an effort to boost corporate profits.

The lawsuit, filed in a state court in Kentucky, said Endo sought to overstate the benefits of using Opana for the long-term treatment of chronic pain while downplaying the risk of addiction, helping to fuel a public health epidemic.

“My office refuses to sit back and watch families be torn apart while opioid manufacturers like Endo line their pockets at the expense of our communities and our future,” Beshear said in a statement.

Endo’s chief legal officer, Matthew Maletta, said in a statement that Beshear’s allegation that the drugmaker was trying to profit at the expense of people’s health was “patently offensive.”

“We intend to vigorously defend the company against the claims set forth in this lawsuit,” Maletta said.

According to the U.S. Centers for Disease Control and Prevention, opioids were involved in over 33,000 deaths in 2015, the latest year for which data is available. The death rate has continued rising, according to estimates.

Endo has faced a wave of similar lawsuits over the opioid epidemic by Louisiana, New Mexico, Missouri, Mississippi and Ohio, as well as several cities and counties. Many of those cases target other drugmakers as well.

In July, Endo agreed to withdraw the long-acting opioid painkiller Opana ER from the market after the U.S. Food and Drug Administration declared that its benefit did not outweigh public health risks associated with opioid abuse.

In a statement, Beshear called the removal of Opana ER from the market an important step but said that Endo’s practices had already by then harmed people in his state. His office’s lawsuit seeks penalties and compensatory and punitive damages.

(Reporting by Nate Raymond in Boston; Editing by Tom Brown and Grant McCool)

Vietnam’s neighbors, ASEAN, targeted by hackers: report

Vietnam's neighbors, ASEAN, targeted by hackers: report

SINGAPORE (Reuters) – A hacking group previously linked to the Vietnamese government or working on its behalf has broken into the computers of neighboring countries as well as a grouping of Southeast Asian nations, according to cybersecurity company Volexity.

Steven Adair, founder and CEO, said the hacking group was still active, and had compromised the website of the Association of Southeast Asian Nations (ASEAN) over several high-profile summit meetings. ASEAN is holding another summit of regional leaders in the Philippines capital Manila this week.

In May, cybersecurity company FireEye reported that the group, which it calls APT32 and is also known as OceanLotus, was actively targeting foreign multinationals and dissidents in Vietnam. FireEye said at the time the group’s activity was “of interest to the nation of Vietnam.”

Adair told Reuters he had no basis to definitely say who was behind the group but said its capabilities rivalled those of most other advanced persistent threat (APT) groups, a term often used to refer to hacker groups that are believed to have state support.

“What we can say is that this is a very well resourced attacker that is able to conduct several simultaneous attack campaigns.”

Vietnamese officials did not immediately respond to requests for comment. But Hanoi has in the past denied accusations of cyber-attacks against organizations or individuals, and said it would prosecute any cases.

Adair said it was not clear how much information the group had stolen. “We do not really have anything on the scale of data theft, but we can tell you the scale and reach of the sites they have compromised is very far reaching,” he said.

Volexity said in a report that the group had compromised websites of ministries or government agencies in Laos, Cambodia and the Philippines so they would load malicious code onto the computers of targeted victims.

This code would then direct them to a Google page which asked for their permission to access their Google account. If the user agrees, the hackers then have access to their contacts and emails.

The ministries included Cambodia’s ministries of foreign affairs, the environment, the civil service and social affairs, as well as its national police. In the Philippines it had compromised the websites of the armed forces and the office of the president.

Three ASEAN websites, and the websites of dozens of Vietnamese non-government groups, individuals and media, were similarly targeted. The group also infected websites belonging to several Chinese oil companies.

Officials at ASEAN’s headquarters in Jakarta were not immediately available for comment.

Kirt Chanthearith, a spokesman for the Cambodian national police, said the police website was hacked about six months ago but he did not know who was responsible. “It was hacked and we lost some data”, he said, without giving further details.

Officials in Thailand said they were not aware of any hacking of government or police websites.

In Manila, Allan Cabanlong, executive director of the Cybercrime Investigation and Coordination Centre, said there was no damage to government web sites in the Philippines but authorities were taking preventive measures.

“We’ve taken measures like cyber hygiene programs,” he told Reuters. “We are conducting due diligence in the Philippines and we are clearing our network.”

(Reporting by Jeremy Wagstaff; Additional reporting by Chansy Chhorn in PHNOM PENH, Matthew Tostevin in HANOI, Patpicha Tanakasempipat and Suphanida Thakral in BANGKOK, Agustinus Beo Da Costa in JAKARTA and Neil Jerome Morales in MANILA; Editing by Raju Gopalakrishnan)

Colorado man charged with murder in suburban Denver Walmart shooting

Colorado man charged with murder in suburban Denver Walmart shooting

By Keith Coffman

BRIGHTON, Colo. (Reuters) – A Colorado man who prosecutors say walked into a Walmart store in a Denver suburb and opened fire seemingly at random, killing three people, was charged on Monday with multiple counts of murder and attempted murder.

Scott Ostrem, 47, was told during a brief hearing in Adams County District Court in Brighton that he had been charged with six counts of murder and 30 counts of attempted murder.

The six murder counts include two for each slain victim, under different legal theories.

No one else was wounded in the attack, but prosecutors said the attempted murder charges referred to other people in the store who could have been struck by gunfire.

The charges could make Ostrem eligible for the death penalty if he is convicted. Adams County District Attorney Dave Young told reporters outside court that he had not decided whether to seek it.

“The (victims’) families will certainly be a part of that determination,” Young said, adding that additional charges could be filed in the case.

The defendant, who was shackled and dressed in yellow and white jail garb, gave one-word answers to the judge. He did not enter a plea.

Police said they had yet to establish a motive for the rampage last Wednesday, which took place amid a string of U.S. mass shootings that have renewed calls for restrictions on gun ownership.

Early accounts of multiple casualties also revived painful memories for the Denver area.

In 2012, a gunman killed 12 people at a midnight screening of the Batman movie “The Dark Knight Rises” at a theater in the suburb of Aurora. The shooter, James Holmes, is serving a dozen consecutive life sentences without the possibility of parole.

In 1999, two high school seniors fatally shot 12 fellow students and a teacher at Columbine High School in suburban Jefferson County. The pair, Eric Harris and Dylan Klebold, then committed suicide in the campus library.

(Reporting by Keith Coffman; Additional reporting by Dan Whitcomb in Los Angeles; Editing by Alistair Bell and Peter Cooney)

Islamic State claims attack on TV station in Afghan capital

Islamic State claims attack on TV station in Afghan capital

By Mirwais Harooni

KABUL (Reuters) – Militant group Islamic State on Tuesday claimed responsibility for an attack on a television station in Kabul, in which gunmen disguised as police killed a security guard and opened fire on staff, the latest assault on media workers in Afghanistan.

Afghan special forces suppressed the attack on Shamshad TV, a private Pashto-language broadcaster based close to the national stadium, after about two hours, but police said at least two people had been killed and 20 wounded.

“People dressed in police clothes came in and initially threw hand grenades, which killed one of our guards and wounded another,” Abed Ehsas, Shamshad’s news director told broadcaster Tolo News TV.

“After that, others got into our building and started firing. Some of our colleagues were hit, though, thank God, many others managed to get out. Some were wounded by gunshots, falling glass and when they jumped from high floors.”

During the attack, a special forces unit blasted a hole in the concrete wall around the compound and entered the site amid a crack of gunfire. At least one attacker was killed during the operation, while another was killed at the compound entrance.

In a statement on its news agency Amaq, Islamic State claimed responsibility, without giving evidence. The group, based mainly in the eastern province of Nangarhar, has claimed a number of attacks on civilian targets in the Afghan capital.

Shortly after the beginning of the attack, the Taliban’s main spokesman, Zabihullah Mujahid, issued an immediate denial of involvement.

Suicide attacks have become a grimly familiar part of daily life in Kabul, now considered one of the most dangerous places in Afghanistan for civilians. But it was also the latest in a series targeting Afghan journalists and media workers.

Last year a Taliban suicide bomber killed seven members of Afghanistan’s largest private television station, Tolo. In May, Islamic State claimed responsibility for a suicide attack on state broadcaster RTA in the eastern city of Jalalabad..

Tuesday’s attack, which underlined the impression of chronic insecurity in Kabul, took place about three weeks after a series of attacks including one on a Shi’ite mosque in the city in which more than 50 people were killed.

Shamshad TV halted normal programming during the attack, transmitting only a still image. But it resumed broadcasting after about two hours, saying the incident had ended and staff trapped in the building rescued by police.

(Additional reporting by Mirwais Harooni, Hamid Shalizi, Samar Zwak, James Mackenzie and Mostafa Hashem in CAIRO; Editing by Nick Macfie)

Philippines hunts for possible new Islamic State ’emir’ in South East Asia

Philippines hunts for possible new Islamic State 'emir' in South East Asia

By Manuel Mogato

MANILA (Reuters) – Philippine authorities were on the lookout on Monday for a Malaysian who could be the new leader of pro-Islamic State groups in Southeast Asia, security chiefs said, following the deaths of several high-profile regional extremists.

The army terminated combat operations in southern Marawi two weeks ago after killing what it believed were the last remnants of a rebel alliance that held parts of the lakeside city for five months.

Following the country’s biggest security crisis in decades, troops have made significant gains in the week since they killed Isnilon Hapilon, a leader of the Abu Sayyaf group and anointed “emir” of Islamic State in Southeast Asia.

His assumed deputy, Malaysian Mahmud Ahmad, was also believe killed, as was Omarkhayan Maute, a top operative in the alliance.

“We are still looking for Amin Baco,” Defence Secretary Delfin Lorenzana said, describing the Malaysian as the likely new “successor as the emir of those terrorists”.

More than 1,100 people – mostly militants – were killed and 350,000 displaced by the Marawi unrest, a crisis that shocked predominantly Catholic Philippines and led to unease about Islamic State gaining traction in Muslim parts of the island of Mindanao.

Police chief Ronaldo dela Rosa said he received similar information that Baco, an expert bomb-maker, had assumed the role of Islamic State’s point man.

Experts say Baco was trained under Malaysian militant Zulkifli bin Hir, alias Marwan, who was killed in 2015 in a clash in marshlands in Maguindanao province that left 44 police commandoes dead.

The information that Baco could be in charge came from an Indonesian arrested in Marawi last week, dela Rosa said.

Despite declaring the end of operations, troops are still fighting some hold-outs hiding amid the ruins of a city battered by months of air strikes. Troops have since killed nine gunmen in Marawi, Colonel Romeo Brawner said on Monday, emphasizing why residents were being kept out of the pulverized battle zone.

Baco was reported to have been killed in Marawi but intelligence sources said he had fled.

“He could be somewhere on Jolo island or in nearby Maguindanao,” an army colonel familiar with Islamist militant groups in Mindanao, told Reuters.

He said Baco had been in the Philippines for a long time and had links with regional extremist group Jemaah Islamiah. He was married to a daughter of a local militant sub-leader.

As early as 2011, he was facilitating movements into the Philippines of funds, arms and fighters from Indonesia and Malaysia, but his links to the Islamic State network were not known to be strong, another military intelligence official said.

He said Baco was in a position to take over because of his familiarity with extremists from various groups in Mindanao.

(Writing by Neil Jerome Morales and Manuel Mogato; Editing by Martin Petty and Michael Perry)

Egypt Western Desert attack exposes front outside Sinai

Egypt Western Desert attack exposes front outside Sinai

By Patrick Markey and Ahmed Mohamed Hassan

CAIRO (Reuters) – A deadly attack on the police in Egypt’s Western Desert claimed by a new militant group risks opening up another front for security forces far beyond the remote northern Sinai, where they have battled a stubborn Islamic State insurgency since 2014.

A little-known group called Ansar al-Islam claimed responsibility for the Oct. 21 attack. Analysts and security sources said the heavy weapons and tactics employed indicated ties to Islamic State or more likely an al Qaeda brigade led by Hesham al-Ashmawy, a former Egyptian special forces officer turned jihadist.

President Abdel Fattah al-Sisi has already suggested fighters from Islamic State will move into Egypt and neighboring Libya now that the group in on the retreat in Iraq and Syria after a string of losses.

Security is key for Sisi, a former military commander who presents himself as a bulwark against Islamist militants, as he looks set to seek re-election next year.

Claims of a new front with possible ties to Ashmawy and al Qaeda would increase risks the security forces face in the Western Desert, where militants can already take advantage of the terrain and the porous Libyan border, security sources, analysts and residents say.

Two security sources and a medical source said evidence showed one militant killed in a follow-up raid was a former military officer and second-in-command to Ashmawy, whose allegiance switched from Islamic State in the Sinai to al Qaeda, and who has been based in Libya since 2014.

“If he has been involved with what appears to have been a heavily armed and wholly unexpected operation on the Egyptian side of the Egypt-Libya border, that’s of great concern,” said H.A. Hellyer, an Egypt expert and senior non-resident fellow at the Atlantic Council.

An interior ministry official said he could neither confirm nor deny the validity of the Ansar al-Islam claim as it was being investigated. Prosecutors are also investigating the attack.

Two Homeland Security officers said militants in the Western Desert appeared more professional than in Sinai. The officers, who work on gathering intelligence, said militants tied to Ashmawy could draw on experience of members who once were in the Thunderbolt elite army unit, or former police.

“Ashmawy and four other former officers have experience in fighting, surveillance, and planning so the group they have with them is dangerous,” one officer said, referring to Ashmawy’s brigade commanders.

START OF A CAMPAIGN?

It remains unclear exactly what happened when an Egyptian police convoy ran into an apparently well-planned ambush by a heavily armed militant group in a remote, desert area 135 km (85 miles) southwest of Cairo.

Three security sources told Reuters at the time that dozens of police officers and conscripts were killed. But the interior ministry refuted that figure the next day and said 16 police and conscripts died, including some high-ranking officers.

One part of the operation was hit by rockets and heavy weapons, officials and sources said. The lead and rear vehicles were hit first, immobilizing the convoy, security sources said.

On Oct. 28, the interior ministry replaced several senior security officials in charge of the area where the attack happened, including a homeland security chief and a Giza province security chief, though no reason was given.

On Oct. 31, the army launched air strikes against the militants it said were responsible, killing dozens and rescuing a kidnapped and wounded policeman.

The new group gave no evidence of its Oct. 21 claim, and it said the oasis attack was the start of a campaign against Sisi’s government. It gave a list of grievances but no evidence on the size of its operations or its abilities.

Ansar al-Islam’s statement was carried by another group with al Qaeda links, Guardians of Sharia, whose social media feeds also carry statements from al Qaeda chief Ayman al-Zawahri.

Three security sources in the Giza area said they believe the attack may have been the work of Ashmawy’s militants.

Egyptian authorities believe he fled to Libya in 2014. He has strong ties in the Libyan city of Derna, where he operates an al Qaeda cell with other former Egyptian officers.

He has been blamed for high-profile attacks such as the killing in June 2015 of Egypt’s top public prosecutor in a car bomb. But moving into Egypt would also raise questions about whether he had shifted his area of operations.

Both Islamic State and al Qaeda have brigades operating in North Africa, where they have competed for space in Libya, especially in Derna, and sometimes operated alongside each other in small brigades in countries like Tunisia and Algeria.

Oded Berkowitz, an intelligence analyst for risk consulting group MAX Security, said assessing the new group’s capabilities or loyalties was difficult, but there could be an effort by al Qaeda to benefit from Islamic State’s decline to bolster its presence and recruits locally.

“There is a strong al Qaeda presence in Libya that can support such an endeavor in Egypt. Usually, a militant group in decline (IS) and an increase in competition between two groups translates into a more aggressive stance, and attempts at larger and more quality attacks,” he said.

SINAI TO NORTH

Egypt’s security forces are battling several militant groups, but have been focused on an Islamic State affiliate that has killed hundreds of police and soldiers in the northern Sinai and has now begun staging attacks outside the peninsula.

But the Western Desert, a vast region making up more than half of Egypt’s territory, has always been a security headache with arms flowing across the frontier from Libya.

Militant groups have found shelter across the border in the chaos that followed the fall of Muammar Gaddafi in 2011.

Residents, businessmen and security sources around the area of the ambush say they have seen a heightened militant presence over the last two years, with militants sometimes openly driving along highways at night, and carrying out hit-and-run attacks.

“It’s closer for them to bring the weapons from Libya and it’s closer for them to carry out their operations, then flee to Libya or hide out in the desert,” said one Egyptian military intelligence officer working in Farafra Oasis area near the Oct. 21 attack.

Egypt’s continuing struggle against Islamist insurgencies at home contrasts with Islamic State’s big losses in Iraq and Syria. In Libya’s southern Sahara, Islamic State shows signs of a revival after losing Sirte city a year ago.

U.S. forces carried out air strikes in Libya in September – the first for almost a year – to destroy an Islamic State camp.

When Islamic State leader Abu Bakr Al-Baghdadi in September urged followers to stand fast after defeats in Iraq and Syria, he mentioned Sinai and Sirte as places where they should fight.

Islamic State, which some experts had suspected was involved, included details of the Oct. 21 attack in its Al-Nabaa news bulletin, but without any claim of responsibility.

The Western Desert attack came as Egypt hopes a peace agreement between Palestinian rivals Fatah and Hamas on the Gaza Strip across its Sinai border can help stabilize that area and curb supplies to militants on the peninsula.

“Militants are able to move in the Western Desert easier than they do in Sinai, due to the open geographic nature,” one police officer working in the area said. “It’s not like Sinai, which you can cordon off.”

Attacks in Egypt: http://tmsnrt.rs/2hO9VIQ

(Editing by Giles Elgood)

At North Korea’s doorstep, Trump warns of U.S. power while also striking conciliatory note

At North Korea's doorstep, Trump warns of U.S. power while also striking conciliatory note

By Steve Holland, Matt Spetalnick and Christine Kim

SEOUL (Reuters) – President Donald Trump on Tuesday warned North Korea he was prepared to use the full range of U.S. military power to stop any attack, but in a more conciliatory appeal than ever before he urged Pyongyang to “make a deal” to end the nuclear standoff.

Speaking on North Korea’s doorstep during a visit to Seoul, Trump said that while “we hope to God” not to have to resort to the use of full U.S. military might, he was ready to do whatever was necessary to prevent the “North Korean dictator” from threatening millions of lives.

“We cannot allow North Korea to threaten all that we have built,” Trump said after talks with South Korean President Moon Jae-in, who has supported diplomatic outreach to Pyongyang.

But at times taking a more measured, less confrontational tone, Trump also urged North Korea to “do the right thing” and added that: “I do see some movement,” though he declined to elaborate.

“It really makes sense for North Korea to come to the table and make a deal,” Trump told reporters at a joint news conference with Moon.

Despite Trump’s renewed threats against North Korea, it was a far cry from the more strident approach he has pursued in recent months, including his previous dismissal of any diplomatic efforts with Pyongyang as a waste of time.

North Korean leader Kim Jong Un has made clear, however, that he has little interest in negotiations, at least until he has developed a nuclear-tipped missile capable of hitting the U.S. mainland.

Landing earlier at Osan Air Base outside Seoul, the president and First Lady Melania Trump stepped down from Air Force One onto a red carpet as he began a 24-hour visit that could aggravate tension with North Korea.

He then flew by helicopter to Camp Humphreys, the largest U.S. military base in the country, and met U.S. and South Korean troops, along with Moon.

The White House billed Trump’s trip as intended to demonstrate U.S. resolve over a hardline approach to the North Korean nuclear and missile threats.

But many in the region had expressed fear that any further bellicose rhetoric by Trump toward Pyongyang could increase the potential for a devastating military conflict.

TRUMP PRAISE FOR MOON

Trump praised Moon for “great cooperation” despite differences in the past over how to confront North Korea and over a trade pact between the United States and South Korea.

At the news conference, the leaders said they had agreed to renegotiate the trade agreement in a timely fashion.

In formal talks after an elaborate welcoming ceremony outside the presidential Blue House in Seoul, Moon told Trump he hoped his visit would relieve some of South Koreans’ anxiety over North Korea.

Pyongyang’s recent nuclear and missile tests in defiance of U.N. resolutions and an exchange of insults between Trump and Kim have raised the stakes in the most critical international challenge of Trump’s presidency.

At the news conference, Trump said Pyongyang must understand the “unparalleled strength” that Washington had at its disposal.

He cited three U.S. aircraft carrier strike groups that are converging on the Western Pacific for exercises as well as a nuclear submarine he said was also in position.

Trump has rattled some U.S. allies with his vow to “totally destroy” North Korea if it threatens the United States and by deriding Kim as a “Rocket Man on a suicide mission.”

Kim responded by calling Trump a “mentally deranged U.S. dotard.”

Trump’s senior aides privately have since urged him to avoid “personalizing” the conflict any further, U.S. officials say.

On the second leg of his five-nation trip, Trump toured the sprawling Camp Humphreys garrison, which lies about 100 km (60 miles) from the border with reclusive North Korea, and met commanders and troops.

The base visit gave him a first-hand view of the massive military assets the United States has in place in South Korea, but it also could serve as a reminder of the cost in U.S. military lives – as well as the potential massive South Korean civilian losses – if the current crisis spirals into war.

“MAY YOUR DREAMS COME TRUE”

Trump wrapped up his first day with a dinner hosted at the Blue House, dining on grilled sole, beef ribs and chocolate cake while being serenaded by a K-pop singer with an orchestra in the background.

“Mr President, may your dreams come true,” Trump said to Moon, raising his glass in a toast.

North Korea has not conducted a missile test for 53 days, the longest such lull in testing this year. North Korean state media has not commented on Trump’s arrival in the South.

South Korea’s spy agency said last week that North Korea may be preparing another missile test, raising speculation that such a launch could be timed for Trump’s trip to the region.

U.S. officials have said privately that intercepting a test missile is among options under consideration, though there is disagreement within the administration about the risks.

Trump had previously criticized Moon over his support for diplomatic engagement with Pyongyang – something the U.S. president once called “appeasement” – but both leaders used Tuesday’s news conference to stress common ground.

Moon urged maximum pressure from sanctions against North Korea to force it to negotiate abandonment of its nuclear program, something Pyongyang says it will never give up.

Several hundred supporters and protesters lined the streets of downtown Seoul as Trump’s motorcade passed by en route to the Blue House, waving flags and posters, with some saying, “No Trump, No War, Yes Peace,” while others cheered, “Trump! Trump!”

will deliver a speech on Wednesday to South Korea’s National Assembly expected to focus heavily on his North Korea policy, which has stressed sanctions and military pressure instead of diplomatic engagement with Pyongyang.

The North accuses the United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, of planning to invade and regularly threatens to destroy it and its Asian allies. Washington denies any such intention.

(Additional reporting by Soyoung Kim, James Pearson, Josh Smith and Hyonhee Shin in Seoul, Phil Stewart and Idrees Ali in Washington; writing by Matt Spetalnick; Editing by Clarence Fernandez and Nick Macfie)