UK banks behind schedule in post-Brexit preparations: ECB

Sabine Lautenschlaeger attends at a news conference at the ECB in Frankfurt October 26, 2014. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) – British-based banks seeking to relocate to the European Union before Britain leaves the bloc are behind schedule in their preparations for the move, a European Central Bank supervisor said on Wednesday.

International banks based in London risk losing access to the EU’s single market once Britain leaves it in 2019, forcing many to consider moving parts of their businesses to the bloc and seek a license from the ECB, the sector’s watchdog.

But Sabine Lautenschlaeger, who represents the ECB’s supervisory arm on the central bank’s board, said progress had been slower than hoped.

“Frankly, the banks are not as far advanced as we would like them to be,” Lautenschlaeger said in a newsletter article.

“Of the banks that have indicated an interest in relocating operations to the euro area, a number of the larger banks have made progress in their planning. But we have not seen many final decisions yet.”

She added the ECB would not grant licenses to “empty shells” and would take a tough stance on “back-to-back transactions”, where a bank would conduct trades out of its EU base but process and risk manage them at its London office.

“While we do not rule out this practice per se, ultimately we expect banks to manage relevant parts of their risks locally and independently,” Lautenschlaeger said.

Lautenschlaeger also said she expected banks moving to the EU to update their recovery plans, which kick in if they fail, “shortly” after moving.

(Reporting By Francesco Canepa; Editing by Angus MacSwan)

Hamburg attacker was known to security forces as Islamist: minister

Security forces and ambulances are seen after a knife attack in a supermarket in Hamburg, Germany, July 28, 2017. REUTERS/Morris Mac Matzen

HAMBURG (Reuters) – The migrant who killed one person and injured six others in a knife attack in a Hamburg supermarket on Friday was an Islamist known to German security forces, who say they believed he posed no immediate threat, the city-state’s interior minister said on Saturday.

A possible security lapse in a second deadly militant attack in less than a year, and two months before the general election, would be highly embarrassing for German intelligence, especially since security is a main theme in the Sept. 24 vote.

A Tunisian failed asylum seeker killed 12 people by driving a truck into a Christmas market in Berlin in December, slipping through the net after intelligence officers who had monitored him reached the conclusion he was no threat.

Hamburg Interior Minister Andy Grote told a news conference on Saturday that Friday’s 26-year-old attacker was registered in intelligence systems as an Islamist but not as a jihadist, as there was no evidence to link him to an imminent attack.

He also said the attacker, a Palestinian asylum seeker who could not be deported as he lacked identification documents, was psychologically unstable.

The Palestinian mission in Berlin had agreed to issue him with documents and he had agreed to leave Germany once these were ready, a process that takes a few months.

“What we can say of the motive of the attacker at the moment is that on the one side there are indications that he acted based on religious Islamist motives, and on the other hand there are indications of psychological instability,” Grote said.

“The attacker was known to security forces. There was information that he had been radicalized,” he said.

“As far as we know … there were no grounds to assess him as an immediate danger. He was a suspected Islamist and was recorded as such in the appropriate systems, not as a jihadist but as an Islamist.”

Prosecutors said the attacker pulled a 20-centimetre knife from a shelf at the supermarket and stabbed three people inside and four outside before passers-by threw chairs and other objects at him, allowing police to arrest him.

A 50-year-old man died of his injuries. None of the other six people injured in the attack is in a life-threatening condition.

Chancellor Angela Merkel is seeking a fourth term in office in September. Her decision in 2015 to open Germany’s doors to more than one million migrants has sparked a debate about the need to spend more on policing and security.

Tunisian asylum seeker Anis Amri, who could not be deported because he lacked identification documents, carried out his attack at a Christmas market in Berlin in December after security agencies stopped monitoring him because they could not prove suspicions that he was planning to purchase weapons.

(Reporting by Frank Witte in Hamburg; Writing by Joseph Nasr in Berlin; Editing by Andrew Bolton)

One dead in knife attack in Hamburg supermarket, motive unclear

Security forces are seen after a knife attack in a supermarket in Hamburg, Germany, July 28, 2017. REUTERS/Morris Mac Matzen

BERLIN (Reuters) – One person was killed in an attack by a lone knifeman in a supermarket in the northern German city of Hamburg on Friday, and four more were injured when the man fled the scene, police said.

The police said the man had suddenly started attacking customers in the shop, with no immediate indication of any political or religious motive. Officers detained him near the site.

“We have no clear information as to the motive or the number of wounded,” Hamburg police said in a tweet. “It was definitely a lone attacker.” They said initial reports about a possible robbery had not been substantiated.

Police said passersby tackled the man after he fled the scene, injuring him slightly, before plain clothes police officers could take him into custody.

Police have been on high alert in Germany since a spate of attacks on civilians last year, including a December attack on a Berlin Christmas market, when a hijacked truck plougher into the crowds, killing 12 and injuring many more.

Security has been a campaign issue ahead of Sept. 24 parliamentary elections, in which Chancellor Angela Merkel is expected to win a fourth term in office.

Newspaper Bild showed a picture of the alleged Hamburg attacker sitting in the back of a police car, his face concealed with a bloodied shroud.

A video on its website showed a helicopter landed outside the supermarket with armed police in body armor patrolling the neighborhood.

(Reporting By Thomas Escritt and Andrea Shalal; Editing by Michelle Martin and Toby Davis)

U.S. general says allies worry Russian war game may be ‘Trojan horse’

U.S Army Europe Commanding General Ben Hodges speaks during the inauguration ceremony of bilateral military training between U.S. and Polish troops in Zagan, Poland, January 30, 2017. REUTERS/Kacper Pempel

By Andrea Shalal

BERLIN (Reuters) – U.S. allies in eastern Europe and Ukraine are worried that Russia’s planned war games in September could be a “Trojan horse” aimed at leaving behind military equipment brought into Belarus, the U.S. Army’s top general in Europe said on Thursday.

Russia has sought to reassure NATO that the military exercises will respect international limits on size, but NATO and U.S. official remain wary about their scale and scope.

U.S. Army Lieutenant General Ben Hodges, who heads U.S. Army forces in Europe, told Reuters in an interview that allied officials would keep a close eye on military equipment brought in to Belarus for the Zapad 2017 exercise, and whether it was removed later.

“People are worried, this is a Trojan horse. They say, ‘We’re just doing an exercise,’ and then all of a sudden they’ve moved all these people and capabilities somewhere,” he said.

Hodges said he had no indications that Russia had any such plans, but said greater openness by Moscow about the extent of its war games would help reassure countries in eastern Europe.

A senior Russian diplomat strongly rejected allegations that Moscow could leave military equipment in Belarus.

“This artificial buffoonery over the routine Zapad-2017 exercises is aimed at justifying the sharp intensification of the NATO bloc (activities) along the perimeter of Russian territory,” Russian Deputy Foreign Minister Grigory Karasin told the Interfax news agency on Friday.

NATO allies are nervous because previous large-scale Russian exercises employed special forces training, longer-range missiles and unmanned aerial vehicles.

Such tactics were later used in Russia’s annexation of Crimea in 2014, its support for separatists in eastern Ukraine and in its intervention in Syria, NATO diplomats say.

Hodges said the United States and its allies had been very open about a number of military exercises taking place across eastern Europe this summer involving up to 40,000 troops, but it remained unclear if Moscow would adhere to a Cold War-era treaty known as the Vienna document, which requires observers for large-scale exercises involving more than 13,000 troops.

Some NATO allies believe the Russian exercise could number more than 100,000 troops and involve nuclear weapons training, the biggest such exercise since 2013.

Russia has said it would invite observers if the exercise exceeded 13,000 forces.

Hodges said NATO would maintain normal rotations during the Russian war game, while carrying out previously scheduled exercises in Sweden, Poland and Ukraine.

The only additional action planned during that period was a six-week deployment of three companies of 120 paratroopers each to Estonia, Latvia and Lithuania for “low-level” exercises, Hodges said.

“We want to avoid anything that looks like a provocation. This is not going to be the ‘Sharks’ and the ‘Jets’ out on the streets,” Hodges said in a reference to the gang fights shown in the 1961 film “West Side Story” set in New York City.

(Reporting by Andrea Shalal; Additional reporting by Dmitry Solovyov in Moscow; Editing by Hugh Lawson)

Foreign hackers probe European critical infrastructure networks

Cables and computers are seen inside a data centre at an office in the heart of the financial district in London, Britain

By Mark Hosenball

LONDON (Reuters) – Cyber attackers are regularly trying to attack data networks connected to critical national infrastructure systems around Europe, according to current and former European government sources with knowledge of the issue.

The sources acknowledged that European infrastructure data networks face regular attacks similar to those which the Washington Post newspaper said on Sunday had been launched by Russian government hackers against business systems of U.S. nuclear power and other companies involved in energy production.

One former senior British security official said it was an “article of faith” that Russian government hackers were seeking to penetrate UK critical infrastructure though the official said he could not cite public case studies.

A European security source acknowledged that UK authorities were aware of the latest reports about infrastructure hacking attempts and that British authorities were in regular contact with other governments over the attacks.

UK authorities declined to comment on the extent of any such attempted or successful attacks in Britain or elsewhere in Europe or to discuss what possible security measures governments and infrastructure operators might be taking.

The Washington Post said recent attempted Russian hacking attacks on infrastructure related systems in the United States appeared to be an effort to “assess” such networks.

But there was no evidence that hackers had actually penetrated or disrupted key systems controlling operations at nuclear plants.

The Post cited several U.S. and industry officials saying that this was the first time hackers associated with the Russian government are known to have tried to get into US nuclear power companies.

The newspaper said that in late June the Federal Bureau of Investigations (FBI) and the U.S. Homeland Security Department warned energy companies that unnamed foreign hackers were trying to steal login and password information so they could hack into networks.

U.S. officials have acknowledged that many key computer systems which run critical infrastructure ranging from power grids to transportation networks originally were not built with strong security protection against outside hackers.

Security experts in the U.S. and Europe acknowledge that the development and evolution of security measures to protect critical infrastructure system against outside intruders has often run behind the ability of hackers to invent tools to get inside such systems.

 

(Editing by Richard Balmforth)

 

G20 communique agreed apart from climate issue: EU officials

Delegates attend the official dinner at the Elbphilharmonie Concert Hall during the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Kay Nietfeld

By Paul Carrel and Noah Barkin

HAMBURG (Reuters) – World leaders meeting for a summit in Germany have agreed every aspect of a joint statement apart from the section on climate where the United States is pushing for a reference to fossil fuels, European Union officials said on Saturday.

The officials said aides had worked until 2 a.m. to finalize a communique for the Group of 20, overcoming differences on trade after U.S. officials agreed to language on fighting protectionism.

“The outcome is good. We have a communique. There is one issue left, which is on climate, but I am hopeful we can find a compromise,” said one EU official, speaking on condition of anonymity. “We have all the fundamentals.

“We have a G20 communique, not a G19 communique,” he added.

The section that needs to be resolved by the leaders relates to the U.S. insistence that there be a reference to fossil fuels, the official said.

With the final statement almost nailed down, the summit marked a diplomatic success for Chancellor Angela Merkel as she finessed differences with U.S. President Donald Trump, who arrived at the two-day summit isolated on a host of issues.

Trump, who on Friday found chemistry in his first face-to-face meeting with Russian President Vladimir Putin, congratulated Merkel for her stewardship of the summit.

“You have been amazing and you have done a fantastic job. Thank you very much chancellor,” he said.

Trump and Putin on Friday discussed alleged Russian meddling in the U.S. election but agreed to focus on future ties rather than dwell on the past, a result that was sharply criticized by leading Democrats in Congress.

For Merkel, the summit is an opportunity to show off her diplomatic skills ahead of a federal election in September, when she is seeking a fourth term in office.

She treated the leaders to a concert at Hamburg’s Elbphilharmonie on Friday night, where they listened to Beethoven while their aides began their all night slog to work out a consensus on trade that had eluded the leaders.

Trade policy has become more contentious since Trump entered the White House promising an “America First” approach.

The trade section in the statement the aides thrashed out read: “We will keep markets open noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination, and continue to fight protectionism including all unfair trade practices and recognize the role of legitimate trade defense instruments in this regard.”

CLIMATE CLASH

Climate change policy proved a sticking point, with the United States pressing for inclusion of wording about which other countries had reservations.

That passage read: “… the United States of America will endeavor to work closely with other partners to help their access to and use of fossil fuels more cleanly and efficiently …”

The climate section took note of Trump’s decision last month to withdraw the United States from the landmark Paris climate accord aimed at combating climate change, and reaffirmed the commitment of the other 19 members to the agreement.

Merkel chose to host the summit in Hamburg, the port city where she was born, to send a signal about Germany’s openness to the world, including its tolerance of peaceful protests.

As the leaders met on Saturday, police helicopters hovered overhead. Overnight, police clashed with anti-capitalist protesters seeking to disrupt the summit.

In the early morning, heavily armed police commandos moved in after activists had spent much of Friday attempting to wrest control of the streets from more than 15,000 police, setting fires, looting and building barricades.

The summit is being held only a few hundred meters from one of Germany’s most potent symbols of left-wing resistance, a former theater called the “Rote Flora” which was taken over by anti-capitalist squatters nearly three decades ago.

Police said 200 officers had been injured, 134 protesters temporarily detained and another 100 taken into custody.

(Writing by Paul Carrel; Editing by Noah Barkin and Janet Lawrence)

Hamburg police fear further violence on final day of G20 summit

German riot police officers walk in front of protesters during demonstrations at the G20 summit in Hamburg, Germany, July 8, 2017. REUTERS/Fabian Bimmer

By Joseph Nasr

HAMBURG (Reuters) – German police braced for a third day of violent clashes with anti-capitalist protesters bent on disrupting the G20 summit of global leaders in Hamburg port, after radicals torched cars, smashed shops and injured officers overnight.

While around 100,000 protestors have staged peaceful marches since Thursday, a hard core of the Black Bloc militants from across Europe have looted stores, set fire to street barricades and hurled bottles and paving slabs.

The head of Hamburg police said he was shocked by the “wave of destructive anger”, riots and arson committed by demonstrators since Thursday.

“We have clear indications it is highly likely that these violent perpetrators will mix in with today’s demonstration ‘G20 – not welcome!’ said Ralf Martin Meyer. “It is to be expected that again, no peaceful protest will be possible.”

The anti-globalisation Attac movement plans a demonstration of up to 100,000 people on the final day of the summit. Police said some 21,000 people had already gathered.

“Today we will bring our criticism of the G20 and our alternatives for fair global policies onto the streets,” said Attac’s Thomas Eberhardt-Koester.

“We want to respond to the police violence and senseless destruction of last night,” he added.

In the last three days, more than 200 police officers have been injured. Some 143 people have been arrested and 122 taken into custody. The number of injured protestors was not available. On Friday night, special armed police had been deployed with sub-machine guns.

World leaders and officials are putting the final touches to a joint statement on issues ranging from trade to climate change on Saturday, the final day of the summit.

Merkel had wanted to show her commitment to free speech by hosting G20 leaders in Hamburg, a port city with a strong radical tradition, but images of burning cars and shops and streets awash with debris have raised questions about that strategy.

Hamburg residents inspected the destruction on Saturday and said they were angry the summit was taking place there.

“Merkel underestimated the protests. The least she can do now is come visit (the district of) Sternschanze and see the damage for herself,” said Kai Mertens, a 50-year-old programmer.

“We are a very liberal district. But what they did here has nothing to do with the G20 or opposition to politics. They were hooligans and many were foreigners,” added Mertens.

Police from across Germany have been brought to Hamburg to reinforce the local force. A 27-year old German suspected of attempted murder after pointing a laser pointer at a police helicopter was due to face a judge on Saturday, said police.

(Writing by Madeline Chambers; Editing by Jon Boyle)

Trump again demands more NATO spending, mulls ‘severe things’ on North Korea

U.S. President Donald Trump speaks as Polish President Andrzej Duda and Croatian President Kolinda Grabar-Kitarovic listen during the Three Seas Initiative Summit in Warsaw, Poland July 6, 2017. REUTERS/Carlos Barria

By Marcin Goclowski and Roberta Rampton

WARSAW (Reuters) – U.S. President Donald Trump once more urged NATO allies in Europe on Thursday to spend more on defense, on a visit to Poland that had been billed as an opportunity for him to patch up relations after a tense alliance summit in May.

He also said Washington was thinking about “severe things” in response to North Korea’s test-launch this week of an intercontinental ballistic missile with the potential to reach Alaska.

Trump told a joint news conference with Polish President Andrzej Duda on Thursday that it was “past time” for all countries in the alliance to “get going” on their financial obligations.

The White House had said Trump would use the stopover in Warsaw to showcase his commitment to the North Atlantic Treaty Organisation, which he once called “obsolete”, bemoaning allies’ repeated failure to spend the recommended 2 percent of GDP on defense.

He had unnerved allies in May, not least those in the east concerned about Russia’s more assertive military posture, by failing to explicitly endorse the principle of collective defense enshrined in the NATO treaty.

While he did not directly mention that principle in Warsaw, he did say that the United States was working with Poland to address Russia’s “destabilising behavior”. Duda for his part said he believed Trump took Poland’s security seriously.

Trump said the United States would confront the threat from North Korea very strongly, and that nations must publicly demonstrate to North Korea that there were consequences for bad behavior.

Trump has this week expressed frustration that North Korea’s neighbor China has not put more pressure on Pyongyang, notably through trade, to try to rein in its weapons program.

Trump said “something” would have to be done about North Korea. He said he did not draw “red lines”, but that Washington would take a look over the coming weeks and months with regard to North Korea.

En route to a potentially fractious G20 summit in Germany, Trump was due to take part in a gathering of leaders from central Europe, Baltic states and the Balkans, an event convened by Poland and Croatia to boost regional trade and infrastructure.

Trump said the United States strongly backed their “Three Seas” initiative.

(Writing by Kevin Liffey; editing by Ralph Boulton)

Turkey’s opposition leader launches court challenge as he marches to Istanbul

Supporters of Turkey's main opposition Republican People's Party (CHP) leader Kemal Kilicdaroglu walk with a giant Turkish flag on the 19th day of a protest, dubbed "justice march", against the detention of the party's lawmaker Enis Berberoglu, near Izmit, Turkey, July 3, 2017. REUTERS/Umit Bektas

By Daren Butler

ISTANBUL (Reuters) – Turkey’s main opposition leader launched a European court appeal on Tuesday over an April vote that granted President Tayyip Erdogan sweeping powers, stepping up his challenge to the government as he led a 425 km (265 mile) protest march.

Erdogan accuses the protesters, marching from Ankara to Istanbul, of “acting together with terrorist groups”, referring to Kurdish militants and followers of a U.S.-based cleric who Ankara says was behind last year’s coup.

Kemal Kilicdaroglu, head of the main opposition Republican People’s Party (CHP), hit back on Tuesday, defending his “justice march” and accusing the government of creating a one-party state in the wake of the failed putsch on July 15.

On the 20th day of his march, triggered by the jailing of a CHP deputy on spying charges, Kilicdaroglu signed an appeal to the European Court of Human Rights against the election board’s decision to accept unstamped ballots in the April 16 referendum.

“Turkey has rapidly turned into a (one-)party state. Pretty much all state institutions have become branches of a political party,” he told reporters. “This is causing profound harm to our democratic, parliamentary system.”

Kilicdaroglu, 68, wearing a white shirt and a baseball cap with the word ‘justice’ printed on it, then set out on the latest leg of the march from the city of Izmit, around 100 km (60 miles) along the coast to the east of central Istanbul.

The protest has gained momentum as it passes through northwest Turkey’s countryside and representatives of the pro-Kurdish HDP, parliament’s third largest party, joined the march on Monday near the jail of its former co-leader Figen Yuksekdag.

There are deep divisions among opposition parties but Yuksekdag, stripped of her parliamentary status in February, issued a statement from her cell on Monday calling for them to put those differences aside.

“We must set up the shattered scales of justice again and fight for this together,” she wrote, saying justice had hit “rock bottom” with the jailing of 11 HDP lawmakers and around 100 mayors.

The party rejects charges of ties to the Kurdistan Workers Party (PKK) militant group, designated a terrorist group by Ankara and its Western allies, which launched an insurgency in 1984 in which more than 40,000 people have been killed.

“TERROR GROUP” ACCUSATIONS

As the protesters advance, Erdogan has stepped up his attacks on the march, saying the CHP was longer acting as a political opposition.

“We can see that they have reached the point of acting together with terror groups and those powers which provoke them against our country,” he said in a speech to officials from his ruling AK Party on Saturday.

“The path which you are taking is the one of Qandil, the one of Pennsylvania,” he said, referring to the northern Iraqi mountains where the PKK is based and the U.S. state where Erdogan’s ally-turned-foe Fethullah Gulen lives.

Kilicdaroglu launched his march in Ankara on June 15 after Enis Berberoglu was jailed for 25 years for espionage, becoming the first lawmaker from the party imprisoned in a government crackdown in the wake of the attempted coup.

Since the purge began, more than 50,000 people have been jailed pending trial, 150,000 have been suspended or dismissed from their jobs. Ankara has also shut down 130 media outlets and some 160 journalists are in prison, according to union data.

In April a referendum was held on constitutional changes that sharply widened Erdogan’s presidential authority and the proposals won 51.4 percent approval in a vote, which has triggered opposition challenges including the latest CHP move.

Opposition parties have said the poll was deeply flawed and European election observers said the decision to allow unstamped ballot papers to be counted had removed a main safeguard against voting fraud.

(Additional reporting by Gulsen Solaker; Writing by Tuvan Gumrukcu and Daren Butler; Editing by David Dolan and Richard Balmforth)

Poland did not invite refugees, has right to say ‘no’: Kaczynski

Leader of ruling party Jaroslaw Kaczynski gestures during a Law and Justice party congress in Przysucha, Poland July 1, 2017. Agencja Gazeta/Slawomir Kaminski via REUTERS

WARSAW (Reuters) – Poland has a moral right to say ‘no’ to refugees, the country’s most powerful politician said on Saturday.

Jaroslaw Kaczynski, head of the ruling party Law and Justice (PiS), gave his views on immigration at a party convention in Przysucha, 100 km (60 miles) south of Warsaw.

“We have not exploited the countries from which these refugees are coming to Europe these days, we have not used their labor force and finally we have not invited them to Europe. We have a full moral right to say ‘no’,” Kaczynski said in a speech broadcast on television.

Last month the European Commission launched a legal case against Poland, Hungary and the Czech Republic for refusing to take in asylum seekers, highlighting the feud within the 28-nation bloc over how to deal with migration.

Kaczynski, who has criticized the European Union’s relocation schemes for migrants on many occasions, also said that the PiS could not be accused of being anti-European, as it backed Poland’s joining the block in 2004 and now appreciates the inflow of EU funds.

“The fact that we appreciate them (the funds), does not mean that we have lost the right to various assessments, including those regarding the historical context,” Kaczynski said, adding that Poland has never received any compensation for the losses it suffered during the Second World War.

During his 70-minute speech, the PiS leader suggested the government increase social spending if the economic situation allows. He also said there was a need to reduce the share of foreign capital in the media sector.

(Reporting by Agnieszka Barteczko and Pawel Sobczak; Editing by Stephen Powell)