Former Afghan president calls decision to drop massive U.S. bomb ‘treason’

Former Afghan president Hamid Karzai speaks during an interview in Kabul, Afghanistan September 13, 2016. Picture taken on September 13, 2016.REUTERS/Omar Sobhani

By Mirwais Harooni

KABUL (Reuters) – Former Afghan president Hamid Karzai accused his successor on Saturday of committing treason by allowing the U.S. military to drop the largest conventional bomb ever used in combat during an operation against Islamic State militants in Afghanistan.

Karzai, who also vowed to “stand against America”, retains considerable influence within Afghanistan’s majority Pashtun ethnic group, to which President Ashraf Ghani also belongs. His strong words could signal a broader political backlash that may endanger the U.S. military mission in Afghanistan.

Afghan defense officials have said the 21,600-pound (9,797-kg) GBU-43, dropped late on Thursday in the eastern province of Nangarhar, had killed nearly 100 suspected militants, though they acknowledged this was an estimate and not based on an actual body count.

“How could you permit Americans to bomb your country with a device equal to an atom bomb?” Karzai said at a public event in Kabul, questioning Ghani’s decision. “If the government has permitted them to do this, that was wrong and it has committed a national treason.”

Ghani’s office said the strike had been closely coordinated between Afghan and U.S. forces and replied to Karzai’s charges with a statement saying: “Every Afghan has the right to speak their mind. This is a country of free speech.”

Public reaction to Thursday’s strike has been mixed, with some residents near the blast praising Afghan and U.S. troops for pushing back the Islamic State militants.

While the bomb has been described as one of the largest non-nuclear devices ever used, its destructive power, equivalent to 11 tonnes of TNT, pales in comparison with the relatively small atomic bombs dropped on Japan in 1945, which had blasts equivalent to between 15,000 and 20,000 tonnes of TNT.

A combination of still images taken from a video released by the U.S. Department of Defense on April 14, 2017 shows (clockwise) the explosion of a MOAB, or "mother of all bombs", when it struck the Achin district of the eastern province of Nangarhar, Afghanistan, bordering Pakistan where U.S. officials said a network of tunnels and caves was being used by militants linked to Islamic State. U.S. Department of Defense/Handout via REUTERS

A combination of still images taken from a video released by the U.S. Department of Defense on April 14, 2017 shows (clockwise) the explosion of a MOAB, or “mother of all bombs”, when it struck the Achin district of the eastern province of Nangarhar, Afghanistan, bordering Pakistan where U.S. officials said a network of tunnels and caves was being used by militants linked to Islamic State. U.S. Department of Defense/Handout via REUTERS

“VIOLATION OF OUR SOVEREIGNTY”

During Karzai’s tenure as president, his opposition to airstrikes by foreign military forces helped to sour his relationship with the United States and other Western nations.

As the Kabul government, split between Ghani and his rival Abdullah Abdullah under a U.S.-brokered power-sharing deal, remains fragile, Karzai’s political interventions draw close attention. Ghani has failed to build the kind of domestic following that Karzai still has despite stepping down in 2014.

Karzai said he planned to “stand against America”, a stance he compared to decisions earlier in his life to fight against the Soviets and later the Taliban regime.

“I decided to get America off my soil,” he said. “This bomb wasn’t only a violation of our sovereignty and a disrespect to our soil and environment, but will have bad effects for years.”

While Karzai did not elaborate on how he would oppose the United States, his stance may pose problems for Ghani’s administration, which is heavily reliant on the United States and other foreign donors for aid and military support.

On Friday, the top U.S. commander in Afghanistan, General John Nicholson, defended the strike, saying the decision to use the bomb was based on military needs, not political reasons.

Afghan troops, backed by U.S. warplanes and special forces, have been battling militants linked to Islamic State in eastern Afghanistan for years.

The most recent operation began in March and continued until troops hit Islamic State fighters entrenched in booby-trapped tunnels in a remote mountain region, leading commanders to call for the use of the GBU-43 bomb.

(Writing by Josh Smith; Editing by Gareth Jones)

Hackers release files indicating NSA monitored global bank transfers

FILE PHOTO: Swift code bank logo is displayed on an iPhone 6s among Euro banknotes in this picture illustration January 26, 2016. REUTERS/Dado Ruvic/File Photo - RTS11WHG

By Clare Baldwin

(Reuters) – Hackers released documents and files on Friday that cybersecurity experts said indicated the U.S. National Security Agency had accessed the SWIFT interbank messaging system, allowing it to monitor money flows among some Middle Eastern and Latin American banks.

The release included computer code that could be adapted by criminals to break into SWIFT servers and monitor messaging activity, said Shane Shook, a cyber security consultant who has helped banks investigate breaches of their SWIFT systems.

The documents and files were released by a group calling themselves The Shadow Brokers. Some of the records bear NSA seals, but Reuters could not confirm their authenticity.

The NSA could not immediately be reached for comment.

Also published were many programs for attacking various versions of the Windows operating system, at least some of which still work, researchers said.

In a statement to Reuters, Microsoft <MSFT.O>, maker of Windows, said it had not been warned by any part of the U.S. government that such files existed or had been stolen.

“Other than reporters, no individual or organization has contacted us in relation to the materials released by Shadow Brokers,” the company said.

The absence of warning is significant because the NSA knew for months about the Shadow Brokers breach, officials previously told Reuters. Under a White House process established by former President Barack Obama’s staff, companies were usually warned about dangerous flaws.

Shook said criminal hackers could use the information released on Friday to hack into banks and steal money in operations mimicking a heist last year of $81 million from the Bangladesh central bank.

“The release of these capabilities could enable fraud like we saw at Bangladesh Bank,” Shook said.

The SWIFT messaging system is used by banks to transfer trillions of dollars each day. Belgium-based SWIFT downplayed the risk of attacks employing the code released by hackers on Friday.

SWIFT said it regularly releases security updates and instructs client banks on how to handle known threats.

“We mandate that all customers apply the security updates within specified times,” SWIFT said in a statement.

SWIFT said it had no evidence that the main SWIFT network had ever been accessed without authorization.

It was possible that the local messaging systems of some SWIFT client banks had been breached, SWIFT said in a statement, which did not specifically mention the NSA.

When cyberthieves robbed the Bangladesh Bank last year, they compromised that bank’s local SWIFT network to order money transfers from its account at the New York Federal Reserve.

The documents released by the Shadow Brokers on Friday indicate that the NSA may have accessed the SWIFT network through service bureaus. SWIFT service bureaus are companies that provide an access point to the SWIFT system for the network’s smaller clients and may send or receive messages regarding money transfers on their behalf.

“If you hack the service bureau, it means that you also have access to all of their clients, all of the banks,” said Matt Suiche, founder of the United Arab Emirates-based cybersecurity firm Comae Technologies, who has studied the Shadow Broker releases and believes the group has access to NSA files.

The documents posted by the Shadow Brokers include Excel files listing computers on a service bureau network, user names, passwords and other data, Suiche said.

“That’s information you can only get if you compromise the system,” he said.

ATTEMPT TO MONITOR FLOW OF MONEY

Cris Thomas, a prominent security researcher with the cybersecurity firm Tenable, said the documents and files released by the Shadow Brokers show “the NSA has been able to compromise SWIFT banking systems, presumably as a way to monitor, if not disrupt, financial transactions to terrorists groups”.

Since the early 1990s, interrupting the flow of money from Saudi Arabia, the United Arab Emirates and elsewhere to al Qaeda, the Taliban, and other militant Islamic groups in Afghanistan, Pakistan and other countries has been a major objective of U.S. and allied intelligence agencies.

Mustafa Al-Bassam, a computer science researcher at University College London, said on Twitter that the Shadow Brokers documents show that the “NSA hacked a bunch of banks, oil and investment companies in Palestine, UAE, Kuwait, Qatar, Yemen, more.”

He added that NSA “completely hacked” EastNets, one of two SWIFT service bureaus named in the documents that were released by the Shadow Brokers.

Reuters could not independently confirm that EastNets had been hacked.

EastNets, based in Dubai, denied it had been hacked in a statement, calling the assertion “totally false and unfounded.”

EastNets ran a “complete check of its servers and found no hacker compromise or any vulnerabilities,” according to a statement from EastNets’ chief executive and founder, Hazem Mulhim.

In 2013, documents released by former NSA contractor Edward Snowden said the NSA had been able to monitor SWIFT messages.

The agency monitored the system to spot payments intended to finance crimes, according to the documents released by Snowden.

Reuters could not confirm whether the documents released Friday by the Shadow Brokers, if authentic, were related to NSA monitoring of SWIFT transfers since 2013.

Some of the documents released by the Shadow Brokers were dated 2013, but others were not dated.

The documents released by the hackers did not clearly indicate whether the NSA had actually used all the techniques cited for monitoring SWIFT messages.

(Additional reporting by Tom Bergin in London; Dustin Volz and John Walcott in Washington; Joseph Menn in San Franciso; and Jim Finkle in Buffalo, New York.; Editing by Brian Thevenot and Cynthia Osterman)

North Korea displays apparently new missiles as U.S. carrier group approaches

Military vehicles carry missiles with characters reading 'Pukkuksong' during a military parade marking the 105th birth anniversary of country's founding father, Kim Il Sung in Pyongyang, April 15, 2017. REUTERS/Damir Sagolj

By Sue-Lin Wong and James Pearson

PYONGYANG/SEOUL (Reuters) – North Korea displayed what appeared to be new long-range and submarine-based missiles on the 105th birth anniversary of its founding father, Kim Il Sung, on Saturday, as a nuclear-powered U.S. aircraft carrier group steamed towards the region.

Missiles appeared to be the main theme of a giant military parade, with Kim’s grandson, leader Kim Jong Un, taking time to greet the commander of the Strategic Forces, the branch that oversees the missile arsenal.

A U.S. Navy attack on a Syrian airfield this month with Tomahawk missiles raised questions about U.S. President Donald Trump’s plans for reclusive North Korea, which has conducted several missile and nuclear tests in defiance of U.N. sanctions, regularly threatening to destroy the United States.

Kim Jong Un, looking relaxed in a dark suit and laughing with aides, oversaw the festivities on the “Day of the Sun” at Pyongyang’s main Kim Il Sung Square.

Goose-stepping soldiers and marching bands filled the square, next to the Taedonggang River that flows through Pyongyang, in the hazy spring sunshine, followed by tanks, multiple-launch rocket systems and other weapons.

Single-engine propeller-powered planes flew in a 105 formation overhead.

Unlike at some previous parades attended by Kim, there did not appear to be a senior Chinese official in attendance. China is North Korea’s lone major ally but has spoken out against its missile and nuclear tests and has supported U.N. sanctions. China on Friday again called for talks to defuse the crisis.

Weapons analysts said they believed some of the missiles on display were new types of intercontinental ballistic missiles (ICBM).

The North has said it has developed and would launch a missile that can strike the mainland United States but officials and experts believe it is some time away from mastering all the necessary technology.

“EARLY DAYS”

North Korea showed two new kinds of ICBM enclosed in canister launchers mounted on the back of trucks, suggesting Pyongyang was working towards a “new concept” of ICBM, said Melissa Hanham, a senior research associate at the U.S.-based Middlebury Institute of International Studies at Monterey, California.

“However, North Korea has a habit of showing off new concepts in parades before they ever test or launch them,” Hanham said.

“It is still early days for these missile designs.”

The Pukkuksong submarine-launched ballistic missiles (SLBM) were also on parade. It was the first time North Korea had shown the missiles, which have a range of more than 1,000 km (600 miles), at a military parade.

Displaying more than one of the missiles indicates North Korea is progressing with its plan to base a missile on a submarine, which are hard to detect, said Joshua Pollack, editor of the Washington-based Nonproliferation Review.

“It suggests a commitment to this program,” said Pollack. “Multiple SLBMs seems like a declaration of intent to advance the program.”

North Korea, still technically at war with the South after their 1950-53 conflict ended in a truce but not a treaty, has on occasion conducted missile or nuclear tests to coincide with big political events and often threatens the United States, South Korea and Japan.

Choe Ryong Hae, a close aide to Kim Jong Un, addressed the packed square with a characteristically bellicose warning to the United States.

“If the United States wages reckless provocation against us, our revolutionary power will instantly counter with annihilating strike, and we will respond to full-out war with full-out war and to nuclear war with our style of nuclear strike warfare,” he said.

PENCE TO VISIT SOUTH

State news agency KCNA said the Trump administration’s “serious military hysteria” had reached a “dangerous phase which can no longer be overlooked”.

The United States has warned that a policy of “strategic patience” with North Korea is over. U.S. Vice President Mike Pence travels to South Korea on Sunday on a long-planned 10-day trip to Asia.

China has also stepped up economic pressure on North Korea. It banned all imports of North Korean coal on Feb. 26 under U.N. sanctions, cutting off the North’s most important export product.

China’s national airline, Air China, weeks ago canceled some flights to Pyongyang due to poor demand but it has not suspended all flights there, it said on Friday, denying a report by Chinese state broadcaster CCTV that all flights run by the airline between the two cities were to be suspended.

China’s Global Times newspaper, which is published by the People’s Daily, the Communist Party’s official paper, said North Korea must have felt the shockwave from the 11-ton “mother of all bombs” dropped by U.S. forces on Islamic State-linked fighters in Afghanistan on Thursday.

“It would be nice if the bomb could frighten Pyongyang, but its actual impact may just be the opposite,” it said in an editorial.

North Korea on Friday denounced the United States for bringing “huge nuclear strategic assets” to the region as the USS Carl Vinson strike group with a flag-ship nuclear-powered aircraft carrier steamed closer.

In Dandong, China’s main border post with North Korea, hundreds of North Koreans gathered at a cultural center carrying floral displays.

With the men wearing pins adorned with photos of Kim Il Sung, and the women in brightly colored traditional dress, crowds lined up to bow to portraits of their state founder before touring an exhibition of photos and North Korean paintings.

KCNA was gushing in its praise of Kim Il Sung, recalling the time he met former U.S. president Jimmy Carter in 1994.

“Former U.S. President Jimmy Carter was so fascinated by his personality as to say that Kim Il Sung is greater than that George Washington, Thomas Jefferson and Abraham Lincoln put together, eulogizing him as the great sun god of human destiny.” it said.

(Additional reporting by Jack Kim, Minwoo Park in SEOUL, Natalie Thomas and Damir Sagolj in PYONGYANG, Michael Martina in BEIJING and Philip Wen in DANDONG.; Writing by Nick Macfie; Editing by Robert Birsel and Stephen Coates)

CIA chief calls WikiLeaks a ‘hostile intelligence service’

Central Intelligence Agency Director Mike Pompeo speaks at The Center for Strategic and International Studies in Washington, U.S. April 13, 2017. REUTERS/Eric Thayer

By Warren Strobel and Mark Hosenball

WASHINGTON (Reuters) – CIA Director Mike Pompeo on Thursday called WikiLeaks a “hostile intelligence service,” using his first public speech as spy agency chief to denounce leakers who have plagued U.S. intelligence.

Pompeo, in an address at the Center for Strategic and International Studies think tank, called WikiLeaks founder Julian Assange “a fraud” and “a coward.”

“It is time to call out WikiLeaks for what it really is, a non-state hostile intelligence service often abetted by state actors like Russia,” Pompeo said.

He said Russia’s GRU military intelligence service used Wikileaks to distribute material hacked from Democratic National Committee computers during the 2016 U.S. presidential election.

U.S. intelligence agencies have concluded that Russia stole the emails and took other actions to tilt the election in favor of eventual winner Donald Trump, a Republican, against Democratic candidate Hillary Clinton.

Pompeo and President Donald Trump, who chose him to head the CIA, have not always been so critical of WikiLeaks. During a campaign rally last October, Trump praised the group for releasing hacked emails from the DNC by saying, “I love WikiLeaks.”

In July, Pompeo, than a Republican member of the House of Representatives, mentioned it in a Twitter post referring to claims that the DNC had slanted the candidate-selection process to favor Clinton. “Need further proof that the fix was in from Pres. Obama on down? BUSTED: 19,252 Emails from DNC Leaked by Wikileaks.”

WikiLeaks has published secret documents from the U.S. government and others and says its mission is to fight government secrecy and promote transparency. Pompeo said it has “encouraged its followers to find jobs at CIA in order to obtain intelligence.”

Assange has been holed up in the Ecuadorean Embassy in London since 2012, after taking refuge there to avoid extradition to Sweden over allegations of rape, which he denies.

Two of Assange’s lawyers and a Wikileaks spokesman did not immediately respond to requests for comment on Pompeo’s remarks.

Pompeo’s speech on Thursday follows a series of damaging leaks of highly sensitive CIA and National Security Agency material.

In March, WikiLeaks published thousands of pages of internal CIA discussions that revealed hacking techniques the agency had used against iPhones, Android devices and other targets.

Pompeo also had harsh words for Edward Snowden, the former National Security Administration contractor who downloaded thousands of documents revealing some of the electronic eavesdropping agency’s most sensitive programs and shared them with journalists.

“More than a thousand foreign targets, people, groups, organizations, more than a thousand of them changed or tried to change how they communicated as a result of the Snowden disclosures,” Pompeo said. “That number is staggering.”

U.S. intelligence agencies have struggled to deal with “insider threats” – their own employees or contractors who steal classified materials and, in some cases, publicize them.

In response to a question, Pompeo disputed Russia’s account of a chemical weapons attack in Syria that prompted retaliatory cruise missile strikes by Trump last week.

Moscow has said that Syrian rebels, rather than the Syrian government, were responsible.

“None of the (accounts) have an ounce of truth in them,” Pompeo said, calling Russian President Vladimir Putin “a man for whom veracity doesn’t translate into English.”

(Additional reporting by Eric Walsh; Editing by Eric Beech and Bill Trott)

‘Right time’ to use huge bomb in Afghanistan: U.S. general

The GBU-43/B Massive Ordnance Air Blast (MOAB) bomb is pictured in this undated handout photo. Elgin Air Force Base/Handout via REUTERS

By Hamid Shalizi and Josh Smith

KABUL (Reuters) – The top U.S. military commander in Afghanistan said on Friday the decision to deploy one of the largest conventional bombs ever unleashed in combat was a purely tactical decision made as part of the campaign against Islamic State-linked fighters.

As many as 36 suspected Islamic State militants were killed in the strike on Thursday evening, Afghan defense officials said, adding there were no civilian casualties.

The strike came as U.S. President Donald Trump dispatches his first high-level delegation to Kabul, amid uncertainty about his plans for the nearly 9,000 American troops stationed in Afghanistan.

Nicknamed “the mother of all bombs,” the weapon was dropped from an MC-130 aircraft in the Achin district of the eastern province of Nangarhar bordering Pakistan.

Nicholson said he was in constant communication with officials in Washington, but the decision to use the 21,600-pound (9,797-kg) GBU-43 bomb was based on his assessment of military needs and not broader political considerations.

“This was the first time that we encountered an extensive obstacle to our progress,” he said of a joint Afghan-U.S. operation that has been targeting Islamic State since March.

“It was the right time to use it tactically against the right target on the battlefield.”

Afghan and U.S. forces were at the scene of the strike and reported that the “weapon achieved its intended purpose,”, Nicholson said.

Afghan Defence Ministry spokesman Dawlat Waziri said no civilians were harmed in the massive blast that targeted a network of caves and tunnels that had been heavily mined.

“No civilian has been hurt and only the base, which Daesh used to launch attacks in other parts of the province, was destroyed,” Waziri said in a statement.

He was using an Arabic term that refers to Islamic State, which has established a small stronghold in eastern Afghanistan and launched deadly attacks on the capital, Kabul.

The GBU-43 is a GPS-guided munition that had never before been used in combat since its first test in 2003, when it produced a mushroom cloud visible from 20 miles (32 km) away.

The bomb’s destructive power, equivalent to 11 tonnes of TNT, pales in comparison with the relatively small atomic bombs dropped on Japan at the end of World War Two, which had blasts equivalent to between 15,000 and 20,000 tonnes of TNT.

At a village about 3 miles (5 km) from the remote, mountainous area where the bomb was dropped, witnesses said the ground shook, but homes and shops appeared unaffected.

“Last night’s bomb was really huge, when it dropped, everywhere, it was shaking,” said a resident, Palstar Khan, adding that he believed no civilians were in the area hit.

He praised the strike, saying killing Islamic State fighters was a “positive move.”

Other residents said they saw militants climbing up and down the mountain every day, making occasional visits to the village.

“They were Arabs, Pakistanis, Chinese and local insurgents coming to buy from shops in the bazaar,” said resident Raz Mohammad.

‘TESTING GROUND’

On Friday, the village was swarming with Afghan and international troops, as helicopters and other aircraft flew overhead.

Afghan President Ashraf Ghani’s office said in a statement the attack was a part of a joint operation by Afghan and international troops.

“Afghan and foreign troops closely coordinated this operation and were extra cautious to avoid any civilian casualties,” it said.

But former president Hamid Karzai condemned the use of the weapon on Afghan soil.

“This is not the war on terror, but the inhuman and most brutal misuse of our country as testing ground for new and dangerous weapons,” he said on social media network Twitter.

The Taliban also denounced the bombing.

“Using this massive bomb cannot be justified and will leave a material and psychological impact on our people,” the Taliban, who compete with Islamic State in Afghanistan, said in a statement.

American officials said the bomb had been positioned for possible use in Afghanistan for “some time” since the administration of former president Barack Obama.

The United States has steadily intensified its air campaign against Islamic State and Taliban militants in Afghanistan, with the Air Force deploying nearly 500 weapons in the first three months of 2017, up from 300 in the corresponding 2016 period.

Thursday’s strike was not the first time Islamic State fighters have been targeted by heavy American bombardment in Nangarhar, where a U.S. special forces soldier was killed battling militants a week ago.

Last year, B-52 bombers operating out of Qatar flew at least two missions in Afghanistan for the first time since 2006.

Such aircraft can carry as much as 70,000 pounds (32,000 kg)of bombs, missiles, or other weapons on each mission.

In March, U.S. forces conducted 79 “counterterror strikes” against Islamic State in Nangarhar, killing as many as 200 militants, according to the U.S. military command in Kabul.

U.S. military officials estimate there are about 600 to 800 Islamic State fighters in Afghanistan, mostly in Nangarhar, but also in the neighboring province of Kunar.

The United Nations has raised concerns that the American air campaign is swelling civilian casualties in Afghanistan.

Last year, air strikes by international forces caused at least 127 civilian deaths and 108 injuries, up from 103 deaths and 67 injuries in 2015, the United Nations said.

(Reporting by Hamid Shalizi; Writing by Josh Smith; Editing by Clarence Fernandez)

Trump signs resolution allowing U.S. states to block family planning funds

U.S. President Donald Trump waves as he boards Air Force One at Joint Base Andrews outside Washington, U.S., before traveling to Palm Beach, Florida for the Good Friday holiday/Easter weekend, April 13, 2017. REUTERS/Yuri Gripas

By Lisa Lambert

WASHINGTON (Reuters) – President Donald Trump on Thursday signed a resolution that will allow U.S. states to restrict how federal funds for contraception and reproductive health are spent, a move cheered by anti-abortion campaigners.

“This is a major pro-life victory,” said the most powerful Republican in the House of Representatives, Speaker Paul Ryan, adding that a regulation enacted under Democratic former President Barack Obama had forced states to fund Planned Parenthood, a national non-profit that provides contraception, health screenings, and abortions.

Under the Congressional Review Act, which allows lawmakers to repeal newly minted rules, both the House and Senate had passed a resolution killing Obama’s regulation that had protected federal grants for clinics in states wanting to block the funding.

States such as Texas in recent years have kept the grants from going to clinics as part of the country’s longstanding fight over abortion. Broadly, many Republicans seek to restrict abortion or make it illegal while Democrats have fought to keep abortion legal.

The resolution had narrowly passed the U.S. Congress, with Vice President Mike Pence called to the Senate on March 30 to break a tie vote in the chamber, where Republicans hold a slim majority. The federal government can never again create a “substantially similar” regulation under the review law.

The grants, known as “Title X” funds, were already barred from going directly to abortion services but under the now-null regulation Planned Parenthood clinics were assured they could receive money even in the face of state objections.

“Allowing states to withhold Title X funding from family planning clinics won’t make anyone safer or healthier – it will instead place essential services out of reach,” said Diane Horvath-Cosper, a medical doctor and fellow at Physicians for Reproductive Health, adding that for many people the clinics are the only place where they can receive affordable health services such as disease testing.

(Reporting by Lisa Lambert; Editing by Frances Kerry)

U.S. drops ‘mother of all bombs’ on Islamic State in Afghanistan

The GBU-43/B is launched from a MC-130E Combat Talon I at Eglain Air Force Base in Florida on November 21, 2003. REUTERS/U.S. Air Force photo/Handout/File photo

By Idrees Ali

WASHINGTON (Reuters) – The United States dropped a massive GBU-43 bomb, the largest non-nuclear bomb it has ever used in combat, in eastern Afghanistan on Thursday against a series of caves used by Islamic State militants, the military said.

It was the first time the United States has used this size of bomb in a conflict. It was dropped from a MC-130 aircraft in the Achin district of Nangarhar province, close to the border with Pakistan, Pentagon spokesman Adam Stump said.

Also known as the “mother of all bombs,” the GBU-43 is a 21,600 pound (9,797 kg) GPS-guided munition and was first tested in March 2003, just days before the start of the Iraq war.

The security situation in Afghanistan remains precarious, with a number of militant groups trying to claim territory more than 15 years after the U.S. invasion which toppled the Taliban government.

General John Nicholson, the head of U.S. and international forces in Afghanistan, said the bomb was used against caves and bunkers housing fighters of the Islamic State in Afghanistan, also known as ISIS-K.

It was not immediately clear how much damage the device did.

White House spokesman Sean Spicer opened his daily news briefing speaking about the use of the bomb and said, “We targeted a system of tunnels and caves that ISIS fighters used to move around freely, making it easier for them to target U.S. military advisers and Afghan forces in the area.”

Last week, a U.S. soldier was killed in the same district as the bomb was dropped while conducting operations against Islamic State.

“The United States takes the fight against ISIS very seriously and in order to defeat the group, we must deny them operational space, which we did,” Spicer said.

He said the bomb was used at around 7 p.m. local time and described the device as “a large, powerful and accurately delivered weapon.” The United States took “all precautions necessary to prevent civilian casualties and collateral damage,” he said.

U.S. officials say intelligence suggests Islamic State is based overwhelmingly in Nangarhar and neighboring Kunar province.

Estimates of its strength in Afghanistan vary. U.S. officials have said they believe the movement has only 700 fighters but Afghan officials estimate it has about 1,500.

Islamic State’s offshoot in Afghanistan is suspected of carrying out several attacks on minority Shi’ite Muslim targets.

The Afghan Taliban, which is trying to overthrow the U.S.-backed government in Kabul, are fiercely opposed to Islamic State and the two group have clashed as they seek to expand territory and influence.

(Reporting by Idrees Ali and Will Dunham; Editing by Alistair Bell)

Dollar rises after sliding on Trump remarks on currency, rates

FILE PHOTO: U.S. dollar notes are seen in this November 7, 2016 picture illustration. REUTERS/Dado Ruvic/Illustration/File Photo

By Dion Rabouin

NEW YORK (Reuters) – The U.S. dollar rose on Thursday, rebounding after a slide that investors considered overdone following remarks by President Donald Trump that the currency was getting too strong and he would prefer the Federal Reserve to keep interest rates low.

The greenback and U.S. Treasury yields took a heavy hit after Trump’s comments to the Wall Street Journal, in which he said the strength of the dollar would hurt the economy.

But after losing 0.6 percent on Wednesday – its biggest one-day fall in more than three weeks – the dollar recovered on Thursday against a basket of major currencies <=USD> that tracks its value, rising 0.3 percent.

“Clearly, I think it was oversold yesterday,” said Peter Ng, senior currency trader at Silicon Valley Bank in Santa Clara, California. “The market was very sensitive to headlines given how nervous it has become due to geopolitical risk.”

Trading was also thinner than usual because of the impending Good Friday holiday in the U.S. and Europe this week, Ng said.

Having hit a five-month low of 108.73 yen in early Asian trading, the dollar steadied at 109.20 yen. <JPY=>

“Yes, it was negative what (Trump) said…but it’s not a big surprise – it wasn’t a U-turn in his rhetoric on the exchange rate so far,” said Commerzbank currency strategist Thu Lan Nguyen in Frankfurt.

“The question is: is he able to influence monetary policy in order to get a weaker dollar? That is still an open question.”

Trump’s remarks went against a long-standing practice of both U.S. Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It is also unusual for a president to talk about the value of the dollar, a subject usually left to the U.S. Treasury secretary.

The dollar has shed 1.7 percent against the yen so far this week, its fourth week lower against the safe-haven Japanese currency in five, as a rise in tensions in Asia and Europe prompted yen buying.

Investors are concerned about the upcoming French presidential election as well as possible U.S. military action against Syria and North Korea, and an escalation of tensions with Russia.

The euro fell 0.5 percent to $1.0619 <EUR=> after touching a one-week high in overnight trading.

The dollar was little changed against China’s offshore yuan <CNH=D3>, after falling to a six-day low on Wednesday. It had risen to a one-month high at the start of the week.

(Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Bernadette Baum)

Wall Street flat as investors assess earnings, Trump comments

Traders work on the floor of the New York Stock Exchange (NYSE) in the Manhattan borough of New York, New York, U.S., April 4, 2017. REUTERS/Brendan McDermid

By Yashaswini Swamynathan

(Reuters) – U.S. stocks were little changed on Thursday as investors assessed the first rush of bank earnings and President Donald Trump’s remarks on the dollar’s strength and interest rates.

Shares of JPMorgan <.JPM.N> and Citigroup <C.N> rose about 1 percent after the two banks reported better-than-expected quarterly profits.

However, Wells Fargo <WFC.N> slipped 2.5 percent after reporting a big drop in mortgage banking revenue.

The earnings reports come in the wake of a frenetic rally in bank shares that started after Trump’s election as U.S. president on hopes that he would rein in banking regulations and introduce other business friendly policies.

At 10:01 a.m. EDT the Dow Jones industrial average <.DJI> was down 0.58 points, flat, at 20,591.28, the S&P 500 <.SPX> was up 0.68 points, or 0.028999 percent, at 2,345.61 and the Nasdaq Composite <.IXIC> was up 10.40 points, or 0.18 percent, at 5,846.56.

“Investors will (be) faced with another day of market uncertainties as bank earnings, geopolitical worries and Trump’s comments on the greenback are being reflected in the volatility index that is flashing trouble ahead,” Peter Cardillo, chief market economist at First Standard Financial, wrote in a note.

Trump told the Wall Street Journal on Wednesday that the dollar “was getting too strong” and that he would like to see interest rates stay low.

The S&P 500 financial index <.SPSY> was up 0.2 percent, while five other S&P sectors were down.

Nine of the 11 major S&P sectors were lower, led by a 0.4 percent decline in financials. Bank of America <BAC.N> and Goldman Sachs <GS.N> are due to report results next week.

Shares of Applied Optoelectronics <AAOI.O> jumped nearly 23 percent to $50.15 after the company said it expected first-quarter earnings to exceed its forecast.

Trading volumes could be lower than usual on Thursday ahead of the Good Friday holiday.

Declining issues outnumbered advancers on the NYSE by 1,403 to 1,186. On the Nasdaq, 1,201 issues fell and 1,163 advanced.

The S&P 500 index showed two 52-week highs and no lows, while the Nasdaq recorded 10 highs and 27 lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

United passenger launches legal action over forceful removal

A video screengrab shows passenger David Dao being dragged off a United Airlines flight at Chicago O'Hare International Airport in this video filmed by @JayseDavid April 9, 2017. Jayse D. Anspach via REUTERS

By Alana Wise

NEW YORK (Reuters) – Lawyers for the passenger dragged from a United Airlines plane in Chicago filed an emergency request with an Illinois state court on Wednesday to require the carrier to preserve video recordings and other evidence related to the incident.

Citing the risk of “serious prejudice” to their client, Dr. David Dao, the lawyers want United and the City of Chicago, which runs O’Hare International Airport, to preserve surveillance videos, cockpit voice recordings, passenger and crew lists, and other materials related to United Flight 3411.

Chicago’s Aviation Department said on Wednesday that two more officers had been placed on leave in connection with the April 9 incident, during which airport security officers dragged Dao from his seat aboard a United jet headed for Louisville, Kentucky. One officer was placed on leave on Tuesday.

Paul Callan, a civil and criminal trial lawyer in New York, said the public outcry over Dao’s treatment would likely push the airline to a quick and generous settlement.

“Because United has such a catastrophic PR problem, this case has a much greater value than such a case would normally have,” he said.

United Chief Executive Oscar Munoz on Wednesday apologized to Dao, his family and United customers in an ABC News interview, saying the company would no longer use law enforcement officers to remove passengers from overbooked flights.

“This can never, will never happen again,” he said.

Munoz is under pressure to contain a torrent of bad publicity and calls for boycotts against United unleashed by videos that captured Dao’s rough treatment by airline and airport security staff.

Dao was removed to make room for additional crew members, United said.

Footage from the incident shows Dao, bloodied and disheveled, returning to the cabin and repeating: “Just kill me. Kill me,” and “I have to go home.”

As of Tuesday, Dao was still in a Chicago hospital recovering from his injuries, his lawyer said.

On Wednesday, United said it would compensate all passengers on board the flight the cost of their tickets.

Munoz said United would be examining the way it compensates customers who volunteer to give up seats on overbooked planes, adding that it would likely not demand that seated passengers surrender their places.

Some U.S. lawmakers called for new rules that could make it more difficult for airlines to overbook flights as a tool for increasing revenue.

U.S. President Donald Trump said it was “horrible” that Dao was dragged off the flight, according to an interview from the Wall Street Journal. Rather than calling for an end to the practice of overselling, Trump said that instead, there should be no upper limit to incentives carriers can offer passengers in exchange for their seats on overbooked flights.

Republican and Democratic leaders of the Senate committee that oversees transportation have questioned United’s actions.

But Delta Air Lines Inc CEO Ed Bastian on Wednesday defended overbooking as “a valid business practice” that does not require additional oversight by the government.

“It’s not a question, in my opinion, as to whether you overbook,” Bastian said on a call with analysts. “It’s how you manage an overbook situation.”

The backlash from the incident resonated around the world, with social media users in the United States, China and Vietnam calling for boycotts of the No. 3 U.S. carrier by passenger traffic and an end to the practice of overbooking flights.

Shares of United Continental closed 1.1 percent lower at $69.93. They fell as much as 4.4 percent on Tuesday.

Two online petitions calling for Munoz to step down as CEO had more than 124,000 signatures combined by Wednesday afternoon. Munoz told ABC he had no plans to resign over the incident.

(Reporting by Alana Wise in New York; Additional reporting by David Shepardson in Washington, and Jonathan Stempel in New York; Editing by Lisa Von Ahn and Richard Chang)