World

US, Russian spy chiefs meet on Moscow nuclear threat

The US and Russian spy chiefs held a rare face-to-face meeting in Ankara Monday on Moscow’s nuclear threats in Ukraine and Americans held prisoner by the Kremlin, the White House said.

In what appeared to be the highest-level direct talks between officials of the two countries since Russia invaded Ukraine in February, Central Intelligence Agency Director William Burns met with Sergei Naryshkin, head of Russia’s SVR foreign intelligence service.

Turkish President Recep Tayyip Erdogan’s spokesman confirmed the meeting, and Kremlin spokesman Dmitri Peskov said it came as “an initiative of the American side,” according to Russian media.

Peskov declined to provide details on the contents.

But the White House said Burns, formerly Washington’s ambassador in Moscow, was delivering a warning against Russia’s threat to make use of tactical nuclear weapons in the Ukraine war.

The CIA chief’s message was “on the consequences of the use of nuclear weapons by Russia, and the risks of escalation to strategic stability,” according to a White House statement.

The United States has warned for months over Russian threats to use tactical nuclear weapons in Ukraine if its own territorial integrity was threatened.

On September 21, Putin said Western nations were seeking to “destroy” his country, and made what was widely taken as a threat to employ nuclear weapons.

“When the territorial integrity of our country is threatened, we will certainly use all the means at our disposal to protect Russia and our people. This is not a bluff,” Putin said.

– ‘Unjustly’ detained Americans –

The White House National Security Council statement Monday stressed that Burns was not in Ankara to discuss ways to end the war in Ukraine, where Russian forces have been beaten back in nine months of grinding conflict but still occupy large swathes of territory.

“He is not conducting negotiations of any kind. He is not discussing settlement of the war in Ukraine,” the statement said.

“We firmly stick to our fundamental principle: nothing about Ukraine without Ukraine,” it said.

The statement said the two officials were also discussing the issue of US citizens detained “unjustly” in Russia.

Russia has imprisoned US basketball star Brittney Griner, arrested last year in Moscow on drug charges, as well as Paul Whelan, an auto supply company official who was convicted of spying after his arrest in 2018. 

Washington has reportedly offered a prisoner swap, with speculation that it is willing to exchange jailed Russian arms dealer Viktor Bout for the Americans.

Last week US President Joe Biden voiced hope that his Russian counterpart Vladimir Putin would negotiate “more seriously” to free Griner, who was sent to a penal colony on a nine-year sentence after her appeal in Russian courts failed.

“My hope is that now that the election is over that Mr. Putin will be able to discuss with us and be willing to talk more seriously about prisoner exchange,” Biden said.

According to Turkey’s Anadolu news agency, the two spy chiefs met as guests of Turkish National Intelligence.

Erdogan has made his country an important broker for talks between the two sides, especially on the issue of allowing essential grain exports from Ukraine, which were blocked by the Russian navy early in the war.

Mexico president slams mass protest against electoral reform

Mexican President Andres Manuel Lopez Obrador on Monday criticized a mass protest against his proposed electoral reforms as an attempt by his opponents to return to corrupt old ways.

“Those who demonstrated… did so in favor of corruption, racism, classism and discrimination — that’s the bottom line,” Lopez Obrador told reporters a day after tens of thousands marched in Mexico City.

The president, who regularly accuses his predecessors of corruption, insisted that his plan sought to “strengthen democracy.”

Protesters demanded a halt to the proposed reform that they say will undermine the National Electoral Institute, the independent body which organizes the country’s elections.

Some carried banners that read, “I am not corrupt, class-conscious, racist or hypocritical,” referring to adjectives the president used earlier to describe those who planned to take part.

Lopez Obrador alleges that the INE endorsed fraud when he ran unsuccessfully for the presidency in 2006 and 2012, before winning in 2018.

Under his proposal, the INE would be replaced by a new body with members chosen by voters instead of lawmakers and with a smaller budget.

Political parties would also have less money for campaigning.

The proposed reform, which involves amending the constitution, requires support from at least two-thirds of lawmakers in Congress, and Lopez Obrador’s political opponents have vowed to oppose the changes.

Lopez Obrador criticized the participation of opposition politicians such as former president Vicente Fox of the conservative National Action Party in Sunday’s protest.

The president’s plan would also reduce the number of seats in the lower house of congress from 500 to 300, and those in the Senate from 128 to 96.

The next presidential election is scheduled for 2024, and the constitution limits presidents to a single six-year term.

Fed vice chair says 'appropriate soon' to slow rate hikes

It likely will be “appropriate soon” for the US central bank to slow the pace of interest rate increases, Federal Reserve Vice Chair Lael Brainard said Monday.

Her comments came as red-hot consumer prices, which have squeezed American households, showed signs of easing, and after the Fed delivered a fourth straight super-sized rate hike to cool the economy.

But with inflation still hovering at the highest level in recent decades, the Fed still has “additional work to do both on raising rates” and tamping down high prices, she said in the event with Bloomberg.

The closely-watched consumer price index released last week showed US inflation logged its lowest annual increase since January, fueling hopes that soaring costs will start to pull back.

The Fed has raised the benchmark lending rate six times this year, but there is a growing chorus of voices recently, including some Fed officials, advocating for smaller steps in coming months.

– ‘More deliberate’ –

Brainard acknowledged that Fed policymakers have raised rates “very rapidly” in recent months, adding that it will take time for tightening to flow through to the economy.

“By moving forward at a pace that’s more deliberate, we’ll be able to assess more data and be better able to adjust the path of rates to bring inflation down,” she said.

Russia’s war in Ukraine this year has sent food and fuel prices soaring, and the annual inflation rate hit a blistering 9.1 percent in June — its highest in four decades — but slowed to 7.7 percent in October.

The US central bank has moved forcefully to lower demand and bring prices down, despite fears that it could trigger a recession.

– Regulating crypto –

Brainard also weighed in on the fallout from the stunning collapse of cryptocurrency platform FTX, which declared bankruptcy in the United States, expressing the need for regulation in the industry.

The situation at the company has reverberated across the digital currency landscape, and Brainard said: “It reinforces I think, this need to make sure that crypto finance … needs to be under the regulatory perimeter.”

She stressed that digital currencies are “no different than traditional finance in the risks that it exposes investors to.”

Cash-strapped FTX filed for bankruptcy on Friday and its high-profile founder and chief executive Sam Bankman-Fried resigned after Binance, the world’s biggest cryptocurrency platform, scrapped a takeover bid, sending chills across the cryptocurrency world.

FTX has been considered the world’s second-largest cryptocurrency platform, at one point valued at $32 billion.

Trump's words 'endangered' Americans before US Capitol riot, Pence says

Former president Donald Trump’s inflammatory words before and during last year’s US Capitol insurrection endangered Americans including his own deputy Mike Pence, the former vice president said in a television interview set to air Monday.

“The president’s words that day at the rally (before the riot) endangered me and my family and everyone at the Capitol,” Pence told ABC News.

Pence reportedly is laying the groundwork for a presidential run in 2024. It would pit him against his former boss, who has convened the media to his palatial Florida home on Tuesday night reportedly to announce his own White House bid.

Pence’s interview to be broadcast on ABC’s “World News Tonight” coincides with the release Tuesday of his memoir, “So Help Me God.”

The veteran Republican told the network that Trump, speaking on January 6, 2021 at a park near the White House, incited the crowd before it marched toward the Capitol: “The president’s words were reckless. It was clear he decided to be part of the problem.”

Pence said he was “angered” when he read a Trump tweet that day asserting that the vice president “didn’t have the courage to do what should have been done” to keep Trump in office by blocking Congress’s certification of Joe Biden’s 2020 election victory.

“I turned to my daughter, who was standing nearby, and I said, ‘It doesn’t take courage to break the law. It takes courage to uphold the law,'” Pence told the network.

The vice president was on Capitol Hill at the time, and US Secret Service officers evacuated him from the US Senate chamber where he narrowly avoided an encounter with rioters who had stormed into the complex.

Pence has largely kept mum about his interactions with Trump in the run-up to the January 6 mob attack — until this month.

In an excerpt from his memoir, published last week by the Wall Street Journal, Pence said he spoke with Trump by phone on New Year’s Day 2021 and conveyed his refusal to take part in a plan to keep Trump in power.

“‘You’re too honest,'” Pence said Trump told him. “Hundreds of thousands are gonna hate your guts…. People are gonna think you’re stupid.'”

US offers $10 mn rewards for Somalia's Al-Shabaab

The United States said Monday it was increasing its reward for information about key leaders of Somalia’s Al-Shabaab to $10 million apiece, a move that follows a spate of deadly attacks by the jihadist group.

The US State Department also said it was for the first time offering a reward of up to $10 million for information “leading to the disruption of the financial mechanisms” of the Al-Qaeda affiliate.

Al-Shabaab fighters have stepped up attacks in the Somali capital Mogadishu and other parts of the country in the face of a widescale offensive against the group by the new government of President Hassan Sheikh Mohamud.

The US said it was offering up to $10 million each for information leading to the identification of Al-Shabaab “emir” Ahmed Diriye, second-in-command Mahad Karate and Jehad Mostafa, a US citizen who it said had various roles in the group.

“These key leaders of Al-Shabaab are responsible for numerous terrorist attacks in Somalia, Kenya and neighbouring countries that have killed thousands of people,” said a poster issued by the US with pictures of the three men.

UN human rights chief Volker Turk said earlier Monday that more than 600 civilians had been killed this year in attacks largely attributed to the group.

At least 613 civilians have been killed and 948 injured so far in 2022, according to the latest United Nations figures — the highest since 2017 and a more-than 30-percent rise from last year.

In the deadliest attack in five years, twin bombings on October 29 claimed by Al-Shabaab killed at least 121 people and injured 333 others in Mogadishu, the UN said, citing Somali figures.

– ‘All-out war’ –

The group, which was designated a foreign terrorist organisation by the State Department in March 2008, has been seeking to overthrow the fragile foreign-backed government in Mogadishu for about 15 years.

Its fighters were driven out of Mogadishu in 2011 by an African Union force, but the group still controls swathes of countryside and continues to wage deadly strikes on civilian, political and military targets.

In August, following a 30-hour siege on a Mogadishu hotel that killed at least 21 people, Mohamud declared “all-out war” on the jihadists, who espouse a strict version of sharia or Islamic law.  

The US statement said Diriye, who has been leader since September 2014 after the killing of Ahmed Abdi Godane in a US strike, was designated by the US as a “specially designated global terrorist” in April 2015, and slapped with UN sanctions the same year.

Karate, who was also designated a terrorist in April 2015 and also faces UN sanctions, continues to lead some Al-Shabaab operations, the US said.

He also “maintains some command responsibility over Amniyat, the group’s intelligence and security wing, which oversees suicide attacks and assassinations in Somalia, Kenya, and other countries in the region, and provides logistics and support for al-Shabaab’s terrorist activities”.

Mostafa, a US citizen who once lived in California, has been a military instructor at Al-Shabaab training camps, as well as a leader of foreign fighters, a leader in the group’s media wing, an intermediary with other “terrorist organisations,” and a leader in the use of explosives in attacks, the US said. 

In December 2019, he was indicted in a US court on various charges linked to Al-Shabaab.

“The FBI assesses Mostafa to be the highest-ranking terrorist with US citizenship fighting overseas.”

In May, US President Joe Biden decided to restore a military presence in Somalia, approving a request from the Pentagon, which deemed his predecessor Donald Trump’s rotation system too risky and ineffective.

Wall Street rally peters out as dollar rises

Wall Street stocks slipped Monday following last week’s global surge as the dollar advanced against major rivals. 

The dollar crept higher as traders urged caution over expectations that the Federal Reserve would pull back from massive US interest hikes as inflation cools in the world’s biggest economy.

US stocks had bounded higher last week on the prospect the Fed might be able to let up on its aggressive interest rate hikes, with the tech-heavy Nasdaq jumping 8.1 percent and the blue-chip Dow rising 4.1 percent.

But Wall Street turned lower on Monday with the Dow slipping 0.1 percent in late morning trading, and the Nasdaq shedding 1.0 percent.

“This morning … there is a little bit of questioning as to whether the market overreacted last week,” said Briefing.com analyst Patrick O’Hare.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said “the burst of euphoria which erupted… at the end of last week is ebbing away after fresh warnings that the fight against inflation is still a hard slog yet to be won.”

Investors will get a look this week whether that cooling has spread to consumers, with US retail sales data due out on Wednesday. Earnings figures from major retailers Walmart and Target will also provide a window into how inflation is impacting consumer spending, a major driver of the US economy.

European stocks finished higher, where data helped improved sentiment.

“There was good news from the eurozone as industrial production came in better than expected this morning,” said market analyst Fawad Razaqzada at City Index and FOREX.com.

While the eurozone is widely seen as heading for a recession, the data showed a month-on-month gain of 0.9 percent in September, while analysts had expected practically no gain.

The pound briefly fell by more than one percent against the dollar as the Thursday presentation of the budget by Chancellor of the Exchequer Jeremy Hunt approaches.

“The pound has also come under pressure ahead of this weeks budget statement with all manner of reports that the Chancellor will impose new taxes on business that will deter future investment in energy security,” CMC Markets analyst Michael Hewson said.

Sentiment also won a lift from China, which is relaxing some of its strict Covid-19 restrictions that have hammered growth in the world’s second largest economy.

Authorities have also reportedly unveiled a 16-point plan to support the beleaguered property sector, a major component of the country’s economic engine.

The industry has come under immense pressure since China imposed a number of restrictions in 2020 aimed at reeling in debt as major developers teetered on the brink of collapse.

The latest moves indicate that China’s leadership is beginning to focus on supporting the economy, a crucial driver of global growth, according to analysts.

Nomura’s Lu Ting warned, however, that the “measures may have little direct impact on stimulating home purchases”.

Hong Kong’s stock exchange ended more than one percent higher Monday — having soared over seven percent Friday.

Oil prices fell.

“Crude oil prices have slipped back, after OPEC cut its oil demand forecast for the rest of this year, and 2023, by 100,000 barrels, citing concerns about rising inflation and interest rates,” CMC Markets’s Michael Hewson said.

“Increasing Covid cases within China alongside a rebound in the US dollar are also weighing on prices,” he added.

– Key figures around 1530 GMT –

New York – Dow: DOWN 0.1 percent at 33,705.83 points

London – FTSE 100: UP 0.9 percent at 7,385.17 (close)

Frankfurt – DAX: UP 0.6 percent at 14,313.30 (close)

Paris – CAC 40: UP 0.2 percent at 6,609.17 (close)

EURO STOXX 50: UP 0.5 percent at 3,887.51

Tokyo – Nikkei 225: DOWN 1.1 percent at 27,963.47 (close)

Hong Kong – Hang Seng Index: UP 1.7 percent at 17,619.71 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,083.40 (close)

Euro/dollar: DOWN at $1.0341 from $1.0361 on Friday

Pound/dollar: DOWN at $1.1723 from $1.1839 

Dollar/yen: UP at 140.39 yen from 138.70 yen

Euro/pound: UP at 88.14 pence from 87.49 pence

West Texas Intermediate: DOWN 1.9 percent at $87.26 per barrel

Brent North Sea crude: DOWN 1.4 percent at $94.63 per barrel

burs-rl/yad

French wife of Chrysler Building billionaire owner entitled to £37 mn under prenup

The estranged wife of the billionaire owner of New York’s Chrysler Building is entitled to more than 37 million pounds ($43 million) under the terms of prenuptial agreements, a judge in London said Monday.

Michael Fuchs, 62, and Alvina Collardeau-Fuchs 47, who are in the process of divorcing, lived the “billionaire lifestyle” during their marriage with a string of luxury properties around the world.

Money was “never a concern” and the couple enjoyed “fully staffed homes” in fashionable locations such as the Hamptons, New York City, Paris, Miami, Cap d’Antibes, Capri and London, according to rulings and evidence given to London’s High Court.

Fuchs, who is originally from Germany but moved to the United States in the 1990s, and French former journalist Collardeau-Fuchs married in New York in 2012 and went on to have two children.

But after the couple separated in 2020, the High Court was asked to rule on how much Collardeau-Fuchs was entitled to.

Fuchs’ lawyers had argued his estranged wife should receive 30 million pounds while she claimed it should be more than 45 million.

At one hearing, the court heard that Fuchs had enjoyed an “extraordinarily successful career” and owned a “very significant amount of prime mid-town Manhattan real estate”.

The Art Deco Chrysler Building on the East Side of Manhattan, one of New York’s most distinctive landmarks, is owned by Fuchs’ company.

However, Fuchs said the value of his fortune had plummeted recently due to the turbulent economic climate.

Fuchs said he believed the correct sum to provide for his two young children should be 350,000 pounds a year, compared to the 1.2 million pounds requested.

He argued he did not want to smother his children in luxuries which could make them “jaded”, adding that he wanted them to “learn the value of money”.

The couple spent much of their time travelling by private plane or in first class and staying in luxury hotels or villas “at significant cost”.

At one point after they separated, Collardeau-Fuchs’s spending had topped $270,000 in a single month, prompting Fuchs to try to impose a limit of $20,000.

Following the breakdown of the marriage, Collardeau-Fuchs had remained at the family home in west London in a “substantial” six-floor property with an indoor underground swimming pool.

Fuchs has said the property is worth £30.2 million.

According to the judge, Nicholas Mostyn, the family’s “custom of unrestrained expenditure” had been extended to their litigation with “prodigious amounts” spent on their legal battle.

Figures showed their combined lawyers’ bills had topped 4.3 million pounds.

UK to end deployment of 300 troops to UN mission in Mali

Britain announced Monday that it would cut short its troop deployment with the UN’s peacekeeping mission in Mali after relations with the country’s Russian-backed junta soured.

“I can announce that the UK contingent will… now be leaving the MINUSMA mission earlier than planned,” Defence Minister James Heappey told parliament, referring to the UN Multidimensional Integrated Stabilization Mission in Mali.

“Two coups in three years have undermined international efforts to advance peace,” he said.

“This government cannot deploy our nation’s military to provide security when the host country’s government is not willing to work with us to deliver lasting stability and security.”

Heappey accused Mali of working with the Russian mercenary group Wagner, and actively seeking to “interfere” with the UN mission and French-led operations there.

“The Malian government’s partnership with Wagner group is counterproductive to lasting stability and security in their region,” he said.

Bamako has previously denied turning to Wagner’s paramilitaries, acknowledging only the support of Russian military “instructors.”

Britain dispatched 300 troops to Mali in December 2020 to join MINUSMA, a force drawn from dozens of countries aiming to bolster the troubled Sahel nation.

It was originally planned that they would remain there for three years, but they will now pull out within the next six months, under the ministry’s plans.

Alongside faltering relations with Mali’s military leaders, an Islamist insurgency that first erupted in the country’s north in 2012 has now spilled over into neighbouring Niger and Burkina Faso.

The epicentre of the conflict — which has killed thousands of people and displaced millions — now appears to be in Burkina Faso, according to Britain’s defence ministry.

France pulled its troops out of Mali earlier this year amid growing friction with the junta in Bamako, while Sweden announced in March it would be leaving the MINUSMA mission.

Heappey insisted the UK troop drawdown did not mean Britain would abandon security commitments to the region.

“We’ve been working closely with our allies to consider options for rebalancing our deployment alongside France, the EU and other like-minded allies,” he told MPs.

Interested parties will meet next week in Ghana in the first major gathering in support of the so-called Accra Initiative, he noted.

The West African-led plans aim to prevent further contagion of the insurgency into Ivory Coast, Ghana, Togo, Benin and Niger, and tackling the growing levels of violence in Burkina Faso.

“The UK will continue its commitment to Mali and the Sahel through our humanitarian, stabilisation and development assistance, working in close coordination with partners,” Heappey added.

Amazon founder Bezos says will donate most of fortune to charity

Amazon founder Jeff Bezos has for the first time said he would give away most of his $124 billion fortune to charity, but warned that doing so effectively will be hard.

The pledge matches similar commitments by some of the world’s richest people, including Bill and Melinda Gates, Elon Musk, and others.

In a CNN interview released Monday, Bezos said he and his partner Lauren Sanchez were “building the capacity to be able to give away this money.”

Asked whether he intended to give away most of his wealth within his lifetime, the 58-year-old Bezos said: “Yeah, I do.”

Bezos has been under pressure to make the pledge after his ex-wife, author MacKenzie Scott, in 2019 committed to donate half her vast wealth after their divorce.

She had signed up to something called the Giving Pledge, an initiative created in 2010 by the Gates and Warren Buffet that has the world’s richest people commit to giving the majority of their wealth to charitable causes.

The Giving Pledge currently has over 230 signatories from 28 countries, including Saudi Prince Alwaleed bin Talal and Russian steel magnate Vladimir Potanin.

Bezos previously pledged $10 billion to set up the Bezos Earth Fund, which he launched in 2020 to help fight climate change and preserve wildlife.

The online tycoon told CNN he intended to maximize returns in his philanthropy, a priority also put forward by Facebook founder Mark Zuckerberg, who is a signatory to the Giving Pledge.

“It’s not easy,” Bezos said in the joint interview with Sanchez. “Building Amazon was not easy…and I’m finding — and I think Lauren is finding the same thing — that charity, philanthropy is very similar.”

“There are a bunch of ways that I think you could do ineffective things,” he added.

Bezos and Sanchez on Saturday announced they were giving Dolly Parton $100 million to give to charities of her choosing.

The country queen was the third recipient of the Bezos Courage and Civility Award, which previously went to Spanish chef Jose Andres and CNN commentator Van Jones. 

Bezos said that Parton “gives with heart” and praised the singer of “Jolene” and “9-to-5” on her promotion of children’s literacy.

The 76-year-old Parton was inducted into the Rock & Roll Hall of Fame earlier this month.

Bezos stepped down as chief executive of Amazon in 2021. He owns the Washington Post and the space tourism company Blue Origin.

Ex-football player in custody after US college shooting

Police on Monday arrested a former US college football player suspected of shooting dead three ex-teammates at the University of Virginia, a few hours south of the US capital.

The latest outburst of campus gun violence came as four people were found dead in a separate incident near the University of Idaho.

Police chief Timothy Longo told a news conference that a 22-year-old student at the University of Virginia, Christopher Darnell Jones Jr, had been taken into custody on suspicion of carrying out the shooting Sunday night.

“I don’t have information with respect to how he was apprehended,” Longo said.

The shooting took place on a bus while students were returning from a field trip, according to UVA president Jim Ryan, who said all three victims were members of the college football team.

Two other students were wounded, Ryan said, and one of them was in critical condition.

The campus in Charlottesville, Virginia, about 100 miles (160 kilometers) southwest of Washington, had been locked down while helicopters and police searched for Jones.

The shelter-in-place order was lifted hours later but “a large police presence will remain,” the UVA Office of Emergency Management tweeted.

“This is a traumatic incident for everyone in our community, and we have cancelled classes for today,” Ryan said in a statement.

Jones is a former UVA football player listed on the Cavaliers’ 2018 roster as a first-year running back.

The three victims were identified as Cavaliers wide receivers Lavel Davis Jr and Devin Chandler and linebacker D’Sean Perry.

In 2007, Virginia Tech became the scene of the worst school shooting on record in the United States when a 23-year-old student killed 32 students and faculty members before committing suicide.

After Sunday’s UVA shooting, US Senator Tim Kaine of Virginia said he was “heartbroken to hear of another Virginia community devastated by gun violence.”

– Idaho college homicide –

More than 2,000 miles to the west in the Rocky Mountain state of Idaho, police were investigating a separate incident in which four students were found dead Sunday in a home near the University of Idaho campus, believed to be the “victims of homicide.”

Officers responded to a call in the town of Moscow, near the University of Idaho, about an unconscious individual.

“Upon arrival, officers discovered four individuals who were deceased,” police said in a statement.

Authorities did not release other details including the cause of death.

“It is with deep sadness that I share with you that the university was notified today of the death of four University of Idaho students living off-campus believed to be victims of homicide,” University of Idaho president Scott Green said in a statement.

Meanwhile near Michigan’s largest city Detroit, police were scouring Oakland University early Monday “to pursue two armed suspects on campus,” the school said in a Twitter statement as they urged students and faculty to stay away.

The school later gave an “all clear.”

The Detroit Free Press reported that the incident began when suspects driving stolen vehicles crashed on an interstate and ran onto the Oakland campus to evade capture.

School shootings are alarmingly common as part of a broader wave of gun violence in the United States, where the proliferation of firearms has skyrocketed in recent years.

In May an 18-year-old gunman burst into Robb Elementary School in Uvalde, Texas, with a semi-automatic rifle and killed 19 students and two teachers, in an attack that shocked the nation and renewed calls for gun reform.

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