France confirms suspected mastermind of Paris attacks killed in raid

By John Irish and Gregory Blachier

PARIS (Reuters) – The suspected mastermind of last week’s Paris attacks was killed in the police raid of an apartment north of the capital, French officials said on Thursday.

Abdelhamid Abaaoud, a 28-year-old Belgian militant who had boasted of mounting attacks in Europe for the Islamic State, was accused of orchestrating last Friday’s coordinated bombings and shootings in the French capital, which killed 129 people.

“It was his body we discovered in the building, riddled with bullets,” a statement from the Paris prosecutor said, a day after the pre-dawn raid. The prosecutor later added that it was unclear whether Abaaoud had detonated a suicide belt.

Prime Minister Manuel Valls broke the news in Parliament to applause from lawmakers who were voting on Thursday to extend the country’s state of emergency for another three months.

“We know today … that the mastermind of the attacks – or one of them, let’s remain cautious – was among those dead,” Valls told reporters. Confirmation that Abaaoud was in Paris will focus more attention on European security services, who ahead of Friday’s attacks had thought he was still in Syria.

“This is a major failing,” said Roland Jaquard at the International Observatory for Terrorism.

Early on Wednesday morning, investigations led police to the house where Abaaoud was holed up in the Paris suburb of St. Denis. Heavily armed officers stormed the building before dawn, triggering a massive firefight and multiple explosions.

Officials had said on Wednesday that two people were killed in the raid, including a female suicide bomber who blew herself up. Forensic scientists were trying to determine whether a third person had died. Eight people were arrested.

Two police sources and a source close to the investigation told Reuters the St. Denis cell had been planning a fresh attack on Paris’s La Defense business district. A source close to the investigation said the female bomber who was killed might have been Abaaoud’s cousin.

Investigators believe the attacks – the deadliest in France since World War Two – were set in motion in Syria, with Islamist cells in neighboring Belgium organizing the mayhem.

The victims came from 17 different countries, many of them young people out enjoying themselves at bars, restaurants, a concert hall and a soccer stadium near where Wednesday’s police raid took place.

Islamic State, which controls swathes of territory in Syria and Iraq, has claimed responsibility, saying the attacks were in retaliation for French air raids against their positions over the past year.

France has called for a global coalition to defeat the extremists and has launched air strikes on Raqqa, the de-facto Islamic State capital in northern Syria, since the weekend. Russia has also targeted the city in retribution for the downing of a Russian airliner last month that killed 224.

The Russian air force on Wednesday carried out a “mass strike” on Islamic State positions around Syria, including Raqqa, Russian news agencies reported.

INTERNATIONAL COORDINATION

Paris and Moscow are not coordinating their air strikes in Syria, but French President Francois Hollande is due to meet Russian President Vladimir Putin in Moscow on Nov. 26 to discuss how their countries’ militaries might work together.

Two days before that, Hollande will meet in Washington with U.S. President Barack Obama to discuss the role of a U.S.-led coalition in any unified effort against Islamic State.

France is one of several European countries participating in the U.S.-led coalition’s strikes against Islamic State targets in Iraq, and two months ago became the only European country to join strikes in Syria as well.

Obama on Thursday reiterated the U.S. position that eradicating the group was tied up with ending the civil war in Syria, which could not happen as long as President Bashar al-Assad was in power.

“Bottom line is, I do not foresee a situation in which we can end the civil war in Syria while Assad remains in power,” he told reporters in Manila on the sidelines of the annual Asia-Pacific Economic Cooperation (APEC) summit.

(Reporting and writing by Crispian Balmer, Andrew Callus and Ingrid Melander; Editing by John Irish and Peter Graff)

Two die in police raid targeting suspected Paris attack mastermind

By Antony Paone and Emmanuel Jarry

SAINT DENIS, France (Reuters) – A woman suicide bomber blew herself up and another militant died on Wednesday when police raided an apartment in the Paris suburb of St. Denis seeking suspects in last week’s attacks in the French capital.

Three sources told Reuters the raid stopped a jihadist cell that had been planning an attack on Paris’s business district, La Defense, after coordinated bombings and shootings killed 129 across the city.

Officials said police had been hunting Abdelhamid Abaaoud, a Belgian Islamist militant accused of masterminding the Nov. 13 carnage, but more than nine hours after the launch of the pre-dawn raid it was still unclear if they had found him.

Seven people were arrested in the operation, which started with a barrage of gunfire, including three people who were pulled from the apartment, officials said.

“It is impossible to tell you who was arrested. We are in the process of verifying that. Everything will be done to determine who is who,” Paris prosecutor Francois Molins said at the end of the operation.

Molins said the assault was ordered after phone taps and surveillance operations led police to believe that Abaaoud might have been in St. Denis, near to the soccer stadium which was site of one of the attacks that hit Paris last week.

Investigators believe the attacks — the worst atrocity in France since World War Two — was set in motion from Syria, with Islamist cells in neighboring Belgium organizing the mayhem.

Local residents spoke of their fear and panic as the shooting started in St. Denis just before 4.30 a.m. (0330 GMT).

“We could see bullets flying and laser beams out of the window. There were explosions. You could feel the whole building shake,” said Sabrine, a downstairs neighbor from the apartment that was raided.

She told Europe 1 radio that she heard the people above her talking to each other, running around and reloading their guns.

Another local, Sanoko Abdulai, said that as the operation gathered pace, a young woman detonated an explosion.

“She had a bomb, that’s for sure. The police didn’t kill her, she blew herself up…,” he told Reuters, without giving details. Three police officers and a passerby were injured in the assault. A police dog was also killed.

 

FLEEING RAQQA

Islamic State, which controls swathes of territory in Syria and Iraq, has claimed responsibility for the Paris attacks, saying they were in retaliation for French air raids against their positions over the past year.

France has called for a global coalition to defeat the radicals and has launched three large air strikes on Raqqa — the de-facto Islamic State capital in northern Syria.

Russia has also targeted the city in retribution for the downing of a Russian airliner last month that killed 224 people.

The Syrian Observatory for Human Rights monitoring group said on Wednesday the bombardments have killed at least 33 Islamic State militants over the past three days.

Citing activists, the Observatory said Islamic State members and dozens of families of senior members had started fleeing Raqqa to relocate to Mosul in neighboring Iraq.

French prosecutors have identified five of the seven dead assailants from Friday – four Frenchmen and a man who was fingerprinted in Greece last month after arriving in the country via Turkey with a boatload of refugees fleeing the Syria war.

Police believe two men directly involved in the assault subsequently escaped, including Salah Abdeslam, 26, a Belgian-based Frenchman who is accused of having played a central role in both planning and executing the deadly mission.

French authorities said on Wednesday they had identified all the Nov. 13 victims. They came from 17 different countries, many of them young people out enjoying themselves at bars, restaurants, a concert hall and a soccer stadium.

Until Wednesday morning, officials had said Abaaoud was in Syria. He grew up in Brussels, but media said he moved to Syria in 2014 to fight with Islamic State. Since then he has traveled back to Europe at least once and was involved in a series of planned attacks in Belgium foiled by the police last January.

Two police sources and a source close to the investigation told Reuters that the St. Denis cell was planning a fresh attack. “This new team was planning an attack on La Defense,” one source said, referring to a high-rise neighborhood on the outskirts of Paris that is home to top banks and businesses.

A man in St. Denis told reporters that he had rented out the besieged apartment to two people last week.

“Someone asked me a favor, I did them a favor. Someone asked me to put two people up for three days and I did them a favor, it’s normal. I don’t know where they came from I don’t know anything,” the man told Reuters Television.

He was later arrested by police.

 

AIRCRAFT CARRIER

Paris and Moscow are not coordinating their air strikes in Syria, but French President Francois Hollande is due to meet Russian President Vladimir Putin in Moscow on Nov. 26 to discuss how their countries’ militaries might work together.

Hollande is due to meet U.S. President Barack Obama in Washington two days before that to push for a concerted drive against Islamic State.

Obama said in Manila on Wednesday he wanted Moscow to shift its focus from propping up Syria’s government to fighting the group and would discuss that with Putin.

Russia is allied to Syrian President Bashar al-Assad, while the West says he must go if there is to be a political solution to Syria’s prolonged civil war.

Russian Foreign Minister Sergei Lavrov said on Wednesday that Western nations had to drop their demands for Assad’s exit if they wanted to build a coalition against Islamic State.

But Hollande said countries should set aside their sometimes diverging national interests to battle their common foe.

“The international community must rally around that spirit. I know very well that each country doesn’t have the same interests,” he told an assembly of city mayors on Wednesday.

He confirmed that a French aircraft carrier group would set sail later in the day and head to the eastern Mediterranean to intensify the number of strikes on militant targets in Syria. Russia has said its navy will cooperate with this mission.

 

(Additional reporting by Andrew Callus, Matthias Blamont, Marine Pennetier, Emmanuel Jarry, Marie-Louise Gumuchian, Jean-Baptiste Vey, Chine Labbé, Svebor Kranjc, John Irish in Paris, Alastair Macdonald and Robert-Jan Bartunek in Brussels, and Matt Spetalnick in Manila, Victoria Cavaliere and Dan Whitcomb in Los Angeles, Amran Abocar in Toronto and Dan Wallis in Denver; Writing by Alex Richardson and Crispian Balmer; Editing by Andrew Callus and Sonya Hepinstall)

France, Russia strike Islamic State in Syria, EU aid invoked

By Chine Labbé and Crispian Balmer

PARIS (Reuters) – France and Russia staged air strikes on Islamic State targets in northern Syria on Tuesday, punishing the group for attacks in Paris and against a Russian airliner that together killed 353 people.

Islamic State has claimed responsibility for a coordinated onslaught in Paris on Friday and the downing of a Russian charter jet over Sinai on Oct. 31, saying they were in retaliation for French and Russian air raids in Iraq and Syria.

Still reeling from the Paris carnage that killed 129, most of them young people, France formally requested European Union assistance in its fight against the militants and British Prime Minister David Cameron edged closer to extending military action against Islamic State in Syria.

Police investigating the worst atrocity in France since World War Two discovered two safe houses in Paris where they believe the militants launched their assault. Underlining the widening scope of the probe, police in Germany said they arrested five suspects, including two women.

In Moscow, the Kremlin acknowledged that a bomb had destroyed a Russian airliner last month, killing 224 people. President Vladimir Putin vowed to hunt down those responsible and intensify air strikes against Islamists in Syria.

“Our air force’s military work in Syria must not simply be continued,” he said. “It must be intensified in such a way that the criminals understand that retribution is inevitable.”

Western officials said Russia launched a “significant number” of strikes in Syria on Tuesday hitting the Islamic State stronghold of Raqqa. In a separate action, apparently not coordinated, French warplanes targeted Raqqa for a second day.

French President Francois Hollande has said he will see Putin and U.S. President Barack Obama in the coming days to try to convince them to join a grand coalition against Islamic State which controls swathes of Syria and Iraq.

Russia began air strikes in Syria at the end of September. It has always said its main target is Islamic State, but most of its bombs in the past have hit territory held by other groups opposed to its ally, Syrian President Bashar al-Assad.

 

MANHUNT

In Brussels, Defence Minister Jean-Yves Le Drian invoked the EU’s mutual assistance clause for the first time since the 2009 Lisbon Treaty introduced the possibility, saying he expected help with French operations in Syria, Iraq and Africa.

“This is firstly a political act,” Le Drian told a news conference after a meeting of EU defense chiefs.

The 28 EU member states accepted the French request but it was not immediately clear what assistance would be forthcoming.

A manhunt was continuing in France and Belgium on Tuesday for one of the eight attackers in the Paris assault.

French police staged 128 raids overnight in the hunt for accomplices and Islamist militant networks, Interior Minister Bernard Cazeneuve said. Police found a third Belgian-licensed car believed to have been used by the attackers and sealed off the area around it in Paris’ 18th district.

Cazeneuve told France Info radio police were making rapid progress in their investigation but declined to give details.

One top suspect, Frenchman Salah Abdeslam, 26, remains at large after escaping back to Belgium early on Saturday and eluding a police dragnet in the Brussels neighborhood of Molenbeek, where he lived with his two brothers.

One of the brothers blew himself up outside a Paris cafe on Friday, seriously injuring many bystanders.

Hollande, who has declared a state of emergency, met visiting U.S. Secretary of State John Kerry on Tuesday to press his call for the U.S.-led and Russian-led coalitions to join forces.

Kerry told reporters afterwards that Islamic State was losing territory in Syria and Iraq, but said increased co-ordination with Moscow would require progress in a political drive to end the war. That process is complicated by a U.S. demand that Assad steps down as president.

 

“DON’T SCAPEGOAT REFUGEES”

The U.N. refugee agency and Germany’s police chief urged European countries not to demean or reject refugees because one of Friday’s Paris bombers was believed to have slipped into Europe among migrants registered in Greece.

“We are deeply disturbed by language that demonizes refugees as a group,” U.N. spokeswoman Melissa Fleming said after government officials in Poland, Slovakia and the German state of Bavaria cited the Paris attacks as a reason to refuse refugees.

The head of Germany’s Federal Criminal Office said there was no sign that Islamist militants had entered Germany posing as an asylum seeker to commit an attack.

French Prime Minister Manuel Valls said Paris would spare no expense to reinforce and equip its security forces and law enforcement agencies to fight terrorism, even though that was bound to involve breaching European budget deficit limits.

“We have to face up to this, and Europe ought to understand,” he told France Inter radio.

The European Commission said it would show understanding to France if additional security spending pushed up its deficit.

As France geared up for a long war, the British prime minister said he would present a “comprehensive strategy” for tackling Islamic State to parliament. British war planes have been bombing the militants in Iraq, but not Syria.

“It is in Syria, in Raqqa, that Isil has its headquarters and it is from Raqqa that some of the main threat against this country are planned and orchestrated,” Cameron said, referring to Islamic State by one of its many acronyms.

“Raqqa, if you like, is the head of the snake.”

French prosecutors have identified five of the seven dead assailants from Friday night — four Frenchmen and a foreigner fingerprinted in Greece among refugees last month.

In addition to the suspect on the run, police believe at least four other people helped organize the mayhem.

Investigators believe the attacks may have been ordered by Abdelhamid Abaaoud, a Belgian national now living in Syria where he has become an Internet propagandist for Islamic State under the nom de guerre Abu Omar al-Belgiki — the Belgian.

Belgian media have reported that Salah Abdeslam spent time in jail for robbery five years ago alongside Abaaoud.

Police in France named two of the French attackers as Ismael Omar Mostefai, 29, from Chartres, southwest of Paris, and Samy Amimour, 28, from the Paris suburb of Drancy.

France believes Mostefai, a petty criminal who never served time in jail, visited Syria in 2013-2014. His radicalization underlined the trouble police face trying to capture an elusive enemy raised in its own cities.

 

(Additional reporting by Laurence Frost, Maya Nikolaeva, Julien Ponthus, Patrick Vignal and David Brunnstrom; Writing by Paul Taylor and Crispian Balmer; Editing by Sonya Hepinstall)

France police raid homes, vow it’s ‘just the beginning’

By Chine Labbé and Crispian Balmer

PARIS (Reuters) – Police raided homes of suspected Islamist militants across France overnight arresting 23 people, and investigators identified a Belgian national living in Syria as the possible mastermind behind Friday’s attacks in Paris.

Much of France came to a standstill at midday for a minute’s silence to remember the 129 killed in the co-ordinated suicide bombings and shootings. Metro trains stopped, pedestrians paused on pavements and office workers stood at their desks.

Prosecutors have identified five of the seven dead assailants — four Frenchmen and a foreigner fingerprinted in Greece last month. His role in the carnage has fueled speculation that Islamic State took advantage of a recent wave of refugees fleeing Syria to slip militants into Europe.

Police believe one attacker is on the run, and are working on the assumption that at least four people helped organize the mayhem, the worst atrocity in France since World War Two, which appears to have been organized in neighboring Belgium.

Belgian police arrested at least one person after a four-hour siege on Monday at a house in the Brussels district of Molenbeek, home to many Muslim immigrants, but failed to find a man believed to have played a key role in the assault.

“We know that more attacks are being prepared, not just against France but also against other European countries,” French Prime Minister Manuel Valls told RTL radio. “We are going to live with this terrorist threat for a long time.”

Islamic State, which claimed responsibility for the attacks in retaliation for French airstrikes in Iraq and Syria, warned in a video on Monday that any country hitting it would suffer the same fate, promising specifically to target Washington.

French warplanes bombed Islamic State training camps and a suspected arms depot in its Syrian stronghold Raqqa late on Sunday — its biggest such strike since it started assaults as part of a U.S.-led mission launched in 2014.

Interior Minister Bernard Cazeneuve told reporters police had arrested nearly two dozen people and seized arms, including a rocket launcher and automatic weapons, in 168 raids overnight. Another 104 people were put under house arrest, he said.

“Let this be clear to everyone, this is just the beginning, these actions are going to continue,” Cazeneuve said.

 

NATIONAL MOURNING

A source close to the investigation said Belgian national Abdelhamid Abaaoud, currently in Syria, was suspected of having ordered the Paris operation. “He appears to be the brains behind several planned attacks in Europe,” the source told Reuters.

RTL Radio said Abaaoud was a 27-year-old from Molenbeek. He was also reported by media to have been involved in a series of planned attacks in Belgium which were foiled by the police last January.

Police in Brussels have detained two suspects and are hunting Salah Abdeslam, a 26-year-old Frenchman based in the Belgian capital, who is one of three brothers believed to have been involved in the plot.

Schools and museums in Paris re-opened on Monday after a 48-hour shutdown, but some popular tourist sites, including Disneyland and the Eiffel Tower, remained closed.

French tourism-related stocks fell sharply on fears visitors might shun Paris, one of the most visited cities in the world, but the country’s blue-chip CAC 40 index was steady, with no long-term economic impact seen.

Police have named two French attackers — Ismael Omar Mostefai, 29, from Chartres, southwest of Paris, and Samy Amimour, 28, from the Paris suburb of Drancy. A source close to the investigation named two other French assailants as Bilal Hadfi and Ibrahim Abdeslam.

A Turkish government official said Ankara had notified France twice in December 2014 and June 2015 about Mostefai, who entered Turkey in 2013 with no record of him leaving again. France only called back about him after Friday’s events.

“This is not a time to play the blame game, but we are compelled to share (this) information to shed light on (Mostefai’s) travel history,” the Turkish official said.

France now believes Mostefai was in Syria from 2013-2014 and his radicalization underlined the trouble France faces trying to capture an illusive enemy that grew up in its own cities.

“He was a normal man,” said Christophe, his neighbor in Chartres. “Nothing made you think he would turn violent.”

Latest official figures estimate that 520 French nationals are in the Syrian and Iraqi war zones, including 116 women. Some 137 have died in the fighting, 250 have returned home and around 700 have plans to travel to join the jihadist factions.

The man stopped in Greece in October was carrying a Syrian passport in the name of Ahmad Al Mohammad. Police said they were still checking to see if the document was authentic, but said the dead man’s fingerprints matched those on record in Greece.

Greek officials said the passport holder had crossed from Turkey to the Greek islands last month and then registered for asylum in Serbia before heading north, following a route taken by hundreds of thousands of asylum seekers this year.

The news revived a furious row within the European Union on how to handle the flood of Middle Eastern and African refugees. Senior Polish and Slovak officials dismissed an EU plan to relocate asylum seekers across the bloc, saying the violence underlined their concerns about taking in Muslims.

Britain announced on Monday it would boost its intelligence agency staff by 15 percent and more than double spending on aviation security to defend against Islamist militants plotting attacks from Syria.

A source in Prime Minister David Cameron’s office said police had foiled one attack in Britain last month.

Valls said the French authorities would use every means at their disposal to counter the Islamist threat, adding that mosques harboring extremists would be shuttered and foreigners expelled if they “held unacceptable views against the republic”.

France is home to some five million Muslims, many of them descendants from Algerian and Moroccan immigrants.

 

(Additional reporting by Emmanuel Jarry, John Irish, Leigh Thomas, Ingrid Melander, Marine Pennetier, Geert De Clercq and Claire Watson in Paris; Yves Herman, Robert-Jan Bartunek, Philip Blenkinsop and Alastair Macdonald in Brussels; writing by Crispian Balmer; Editing by Sonya Hepinstall)

World shows solidarity, tightens security after Paris attacks

LONDON (Reuters) – World leaders responded to Friday’s bloody attacks in Paris with outrage and defiant pledges of solidarity, but several countries said they would tighten security, especially at their borders, and a few urged their citizens not to travel to France.

Islamic State claimed responsibility on Saturday for the coordinated assault by gunmen and bombers that killed 127 people across Paris. President Francois Hollande said the attacks amounted to an act of war against France.

Several countries said they had stepped up their own security in response to the attacks, including Belgium and Switzerland, which border France. France’s neighbor to the south, Spain, said it was maintaining its state of alert at level 4 on a five-point scale.

Dutch Prime Minister Mark Rutte said the Netherlands would tighten security at its borders and airports, and said the Dutch were “at war” with Islamic State.

“Our values and our rule of law are stronger than their fanaticism,” he said.

Belgium imposed additional frontier controls on road, rail and air arrivals from France and Belgian Prime Minister Charles Michel asked Belgians on Saturday not to travel to Paris unless necessary. Hong Kong also issued a travel alert for France.

Bulgaria imposed additional frontier controls on road and transit traffic.

London Metropolitan Police Service’s assistant commissioner Mark Rowley told the BBC that policing across Britain would be strengthened but said there would be no change to the threat level which currently stood at the second-highest category.

New York, Boston and other cities in the United States bolstered security on Friday night, but law enforcement officials said the beefed-up police presence was precautionary rather than a response to any specific threats.

The United States and Russia, divided on many issues including the war in Syria that has fueled Islamist violence, voiced their support for the French people on Friday night.

“Once again we’ve seen an outrageous attempt to terrorize innocent civilians,” U.S. President Barack Obama said. “We stand prepared and ready to provide whatever assistance that the government and the people of France need.”

“Those who think that they can terrorize the people of France or the values that they stand for are wrong,” Obama said.

 

CONDOLENCES

Russian President Vladimir Putin sent his condolences to Hollande and all the people of France following the “horrible terrorist attacks in Paris”, the Kremlin said in a statement.

“Russia strongly condemns this inhumane killing and is ready to provide any and all assistance to investigate these terrorist crimes.”

Egypt’s President Abdel Fattah al-Sisi said Egypt stood in solidarity with France and supported counter-terrorism efforts.

“Terrorism recognizes no boundaries or religion, and claims the lives of innocent people in different parts of the world,” a statement from the presidency’s office said.

Saudi Arabia’s highest religious body condemned the attacks as contrary to Islamic values.

“Terrorists are not sanctioned by Islam and these acts are contrary to values of mercy it brought to the world,” said a statement by the Council of Senior Scholars carried by the Saudi Press Agency on Saturday.

The Western defense alliance NATO said it stood with France, a founder member. Secretary-General Jens Stoltenberg said, “We stand strong and united in the fight against terrorism. Terrorism will never defeat democracy.”

In Brussels the leaders of European Union institutions, which have been trying to coordinate security responses since the Islamist attacks in Paris in January, joined the chorus of support.

“I am confident the authorities and the French people will overcome this new trial,” European Commission President Jean-Claude Juncker said.

But in a sign of potential divisions ahead, Poland’s European affairs minister designate said after the attacks in Paris, Warsaw would not be able to accept migrants under European Union quotas.

In September, Poland backed a European Union plan to share out 120,000 refugees, many of them fleeing the war in Syria, across the 28-nation bloc.

Now, “in the face of the tragic acts in Paris, we do not see the political possibilities to implement (this),” said Konrad Szymanski, who takes up his position on Monday as part of a government formed by last month’s election winner, the conservative and euroskeptic Law and Justice (PiS) party.

 

(Writing by Alastair Macdonald and Sonya Hepinstall; Editing by Giles Elgood)

Islamic State claims Paris attacks that killed 127

By Ingrid Melander and Marine Pennetier

PARIS (Reuters) – Islamic State claimed responsibility on Saturday for a coordinated assault by gunmen and bombers that killed 127 people at locations across Paris, which President Francois Hollande said amounted to an act of war against France.

In the worst attack, a Paris city hall official said four gunmen systematically slaughtered at least 87 young people at a rock concert at the Bataclan concert hall before anti-terrorist commandos launched an assault on the building. Dozens of survivors were rescued, and bodies were still being recovered on Saturday morning.

Some 40 more people were killed in five other attacks in the Paris region, the official said, including an apparent double suicide bombing outside the Stade de France national stadium, where Hollande and the German foreign minister were watching a friendly soccer international.

The assaults came as France, a founder member of the U.S.-led coalition waging air strikes against Islamic State in Syria and Iraq, was on high alert for terrorist attacks.

It was the worst such attack in Europe since the Madrid train bombings of 2004, in which 191 died.

Hollande said the attacks had been organized from abroad by Islamic State “barbarians”, with internal help. Sources close to the investigation said a Syrian passport had been found near the body of one of the suicide bombers.

“Faced with war, the country must take appropriate action,” Hollande said after an emergency meeting of security chiefs. He also announced three days of national mourning.

Former president Nicolas Sarkozy added in a statement: “The war we must wage should be total.”

During a visit to Vienna, U.S. Secretary of State John Kerry said “we are witnessing a kind of medieval and modern fascism at the same time.”

In its claim of responsibility, Islamic State said the attacks were a response to France’s campaign against its fighters.

It also distributed an undated video in which a militant said France would not live peacefully as long it took part in U.S.-led bombing raids against them.

“As long as you keep bombing you will not live in peace. You will even fear traveling to the market,” said a bearded Arabic-speaking militant, flanked by other fighters.

A French government source told Reuters there were 127 dead, 67 in critical condition and 116 wounded. Six attackers blew themselves up and one was shot by police. There may have been an eighth attacker, but this was not confirmed.

The attacks, in which automatic weapons and explosives belts were used, lasted 40 minutes.

“The terrorists, the murderers, raked several cafe terraces with machine-gun fire before entering (the concert hall). There were many victims in terrible, atrocious conditions in several places,” police prefect Michel Cadot told reporters.

 

STATE OF EMERGENCY

After being whisked from the stadium near the blasts, Hollande declared a national state of emergency, the first since World War Two. Border controls were temporarily reimposed to stop perpetrators escaping.

Local sports events were suspended, department stores closed, the rock band U2 canceled a concert, and schools, universities and municipal buildings were ordered to stay shut on Saturday. Some rail and air services were expected to run.

Sylvestre, a young man who was at the Stade de France when bombs went off there, said he was saved by his cellphone, which he was holding to his ear when debris hit it.

“This is the cell phone that took the hit, it’s what saved me,” he said. “Otherwise my head would have been blown to bits,” he said, showing the phone with its screen smashed.

French newspapers spoke of “carnage” and “horror”. Le Figaro’s headline said: “War in the heart of Paris” on a black background with a picture of people on stretchers.

Emergency services were mobilized, police leave was canceled, 1,500 army reinforcements were drafted into the Paris region and hospitals recalled staff to cope with the casualties.

Radio stations warned Parisians to stay at home and urged residents to give shelter to anyone caught out in the street.

The deadliest attack was on the Bataclan, a popular concert venue where the Californian rock group Eagles of Death Metal was performing. Some witnesses in the hall said they heard the gunmen shout Islamic chants and slogans condemning France’s role in Syria.

The hall is near the former offices of the satirical weekly Charlie Hebdo. France has been on high alert since Islamist gunmen attacked the paper and a kosher supermarket in January, killing 18 people.

Those attacks briefly united France in defense of freedom of speech, with a mass demonstration of more than a million people. But that unity has since broken down, with far-right populist Marine Le Pen gaining on both mainstream parties by blaming immigration and Islam for France’s security problems.

It was not clear what political impact the latest attacks would have less than a month before regional elections in which Le Pen’s National Front is set to make further advances.

The governing Socialist Party and the National Front suspended their election campaigns.

U.S. President Barack Obama and German Chancellor Angela Merkel led a global chorus of solidarity with France. U.N. Secretary-General Ban Ki-moon condemned the “despicable attacks” while Pope Francis called the killings “inhuman”.

France ordered increased security at its sites abroad. Italy, Russia, Belgium, Hungary and the Netherlands also tightened security measures.

Poland, meanwhile, said that the attacks meant it could not now take its share of migrants under a European Union plan. Many of the migrants currently flooding into Europe are refugees from Syria.

Julien Pearce, a journalist from Europe 1 radio, was inside the concert hall when the shooting began. In an eyewitness report posted on the station’s website, Pearce said several very young individuals, who were not wearing masks, entered the hall during the concert, armed with Kalashnikov assault rifles and started “blindly shooting at the crowd”.

“There were bodies everywhere,” he said.

 

POINT-BLANK

The gunmen shot their victims in the back, finishing some off at point-blank range before reloading their guns and firing again, Pearce said, after escaping into the street by a stage door, carrying a wounded girl on his shoulder.

Toon, a 22-year-old messenger who lives near the Bataclan, was going into the concert hall with two friends at around 10.30 p.m. (2130 GMT) when he saw three young men dressed in black and armed with machine guns. He stayed outside.

One of the gunmen began firing into the crowd. “People were falling like dominoes,” he told Reuters. He saw people shot in the leg, shoulder and back, with several lying on the floor, apparently dead.

Two explosions were heard near the Stade de France in the northern suburb of Saint-Denis, where the France-Germany soccer match was being played. A witness said one of the detonations blew people into the air outside a McDonald’s restaurant opposite the stadium.

In central Paris, shooting erupted in mid-evening outside a Cambodian restaurant in the capital’s 10th district.

Eighteen people were killed when a gunman opened fire on Friday night diners sitting at outdoor terraces in the popular Charonne area nearby in the 11th district.

The prosecutor mentioned five locations in close proximity where shootings took place around the same time.

 

(Additional reporting by Geert de Clercq, Jean-Baptiste Vey, Emmanuel Jarry, Elizabeth Pineau, Julien Pretot and Bate Felix Tabi-Tabe; Writing by Giles Elgood; Editing by Sonya Hepinstall)

Reuters: Wall St. dips as jobs data boosts odds of December rate hike

Photo courtesy of Reuters/Brendan McDermid

By Abhiram Nandakumar

(Reuters) – U.S. stock indexes were little changed in choppy morning trading on Friday after a stronger-than-anticipated jobs report hardened the chance that the Federal Reserve would finally raise interest rates in December.

Eight of the 10 major S&P sectors were lower, with the interest-rate sensitive utilities sector’s <.SPLRCU> 3.42 percent decline easily the worst. The financials sector <.SPSY> was up 1.25 percent, led by bank stocks.

Job growth in October was the best since December 2014, while the unemployment rate fell to 5 percent, the lowest since April 2008. The jobless rate is now at a level many Fed officials view as consistent with full employment.

“In the short term, this is likely to trigger increased volatility, but if rates edge up and the world doesn’t end, markets will start gaining confidence,” said Robert Craig, Private Client Investment Manager at MB Capital in London.

“For a while now, it has felt like the Fed has wanted to clear the psychological hurdle of that first rate rise, and it’s now got that opportunity.”

Traders raised the odds of a hike in December to 70 percent from the 58 percent just before the jobs data was released, according to the CME Group’s FedWatch program.

The dollar <.DXY> rose to a 6-1/2 month high after the data.

Higher rates increase borrowing costs for companies, while a strong dollar hurts their income from overseas markets.

At 10:44 a.m. ET, the Dow Jones industrial average <.DJI> was up 2.34 points, or 0.01 percent, at 17,865.77.

The S&P 500 <.SPX> was down 5.03 points, or 0.24 percent, at 2,094.9 and the Nasdaq Composite index <.IXIC> was up 5.21 points, or 0.1 percent, at 5,132.95.

Among financial stocks, JPMorgan <JPM.N> rose 3 percent and gave the biggest boost to the S&P 500, followed by Bank of America <BAC.N>, up 3.8 percent and Citigroup <C.N>, up 3.2 percent.

Goldman <GS.N> rose 3.3 percent and was the biggest influence on the Dow, followed by Disney <DIS.N>, which was up 2.6 percent after reporting a higher-than-expected profit.

Exxon <XOM.N> was down 1.5 percent to $83.59, the biggest drag on the S&P, after the New York attorney general launched an investigation into whether the company misled the public and shareholders about the risks of climate change.

Energy stocks <.SPNY> fell 1 percent as crude oil prices slipped. Chevron <CVX.N> shed 2 percent and weighed the most on the Dow.

TripAdvisor <TRIP.O> slumped 10 percent to $74.82, while Kraft Heinz <KHC.O> was down 4 percent at $72.49 after both reported quarterly results below estimates. Kraft was the biggest drag on Nasdaq.

Declining issues outnumbered advancing ones on the NYSE by 2,222 to 758. On the Nasdaq, 1,452 issues fell and 1,126 advanced.

The S&P 500 index showed 11 new 52-week highs and six new lows, while the Nasdaq recorded 107 new highs and 50 new lows.

 

(Reporting by Abhiram Nandakumar in Bengaluru, additional reporting by Charles Mikolajczak; Editing by Savio D’Souza)

Cameron says bomb likely caused Russian airliner crash

Photo courtesy of Reuters/Mohamed Abd El Ghany

By Paul Sandle

LONDON (Reuters) – Britain said on Thursday there was a significant possibility that Islamic State’s Egyptian affiliate was behind a suspected bomb attack on a Russian airliner that killed 224 people in the Sinai Peninsula.

Russia dismissed the claim as speculation and Egypt said there was no indication so far that a bomb was to blame.

The topic is sensitive for Russia, whose warplanes have launched raids against Islamic State in Syria, and for Egypt, which depends heavily on revenues from tourism.

Asked if he thought Islamic State was responsible, Foreign Secretary Philip Hammond said: “ISIL-Sinai have claimed responsibility for bringing down the Russian aircraft, they did that straight away after the crash.

“We’ve looked at the whole information picture, including that claim, but of course lots of other bits of information as well, and concluded that there is a significant possibility,” he said on Sky television.

British Prime Minister David Cameron said it was more likely than not that a bomb was to blame.

“We cannot be certain that the Russian airliner was brought down by a terrorist bomb, but it looks increasingly likely that that was the case,” Cameron said.

U.S. and European security sources say evidence now suggests that a bomb planted by Islamic State’s Egypt affiliate – Sinai Province – was the likely cause of the crash. The sources stressed they had reached no final conclusions about the crash.

Britain, Ireland and the Netherlands banned flights to and from Sharm al-Sheikh, where the doomed flight originated, while Germany urged travelers to avoid the Sinai Peninsula.

Dmitry Peskov, a spokesman for President Vladimir Putin, said Russian planes were still flying to and from Sharm al‐Sheikh.

“Theories about what happened and the causes of the incident can only be pronounced by the investigation,” Peskov said.

“So far, we have heard nothing (like this) from the investigation. Any kind of similar assumptions like this are based on information that has not been checked or are speculation.”

 

EXPLOSIVE MATERIAL

Egypt’s civil aviation minister, Hossam Kamal, said of the explosion theory: “The investigation team does not have yet any evidence or data confirming this hypothesis.”

However, the head of Russian aviation agency Rosaviatsia said investigators would examine whether there was any explosive material on the plane. Alexander Neradko said the investigation would reach initial conclusions in a few months.

Russia’s Kogalymavia airline, which operated the crashed plane, said three of its four remaining A321 jets had passed safety checks by Russia’s state transport agency, while the fourth would be checked shortly.

Russia, an ally of Syrian President Bashar al-Assad, launched air raids against opposition groups in Syria including Islamic State on Sept. 30.

Islamic State has called for war against both Russia and the United States in response to their air strikes in Syria. The hardline group, which also has a presence in Egypt’s neighbor Libya, is waging a campaign of suicide bombings and shootings in Egypt designed to topple the government of President Abdel Fattah al-Sisi.

The Egyptian leader is currently on a state visit to Britain, which like other Western powers sees Cairo as critical to efforts to counter militancy.

A senior Russian lawmaker said Britain’s decision to stop flights from Sharm was motivated by London’s opposition to Russia’s actions in Syria, the RIA Novosti news agency reported.

“There is geopolitical opposition to the actions of Russia in Syria,” said Konstantin Kosachev, a senior member of Russia’s upper house of parliament, when asked about Britain’s decision.

If a bomb killed the 224 passengers and crew aboard the Airbus A321 <AIR.PA>, that would almost certainly undermine Egypt’s tourism industry, which is still recovering from years of political turmoil.

At Sharm airport, security appeared to have been tightened on Thursday with security forces patrolling the terminals and not allowing drivers, tour agents or others to loiter while awaiting tourist arrivals, a witness said.

Islamic State, which controls swathes of Iraq and Syria and is battling the Egyptian army in the Sinai Peninsula, said again on Wednesday that it brought down the airplane, adding it would eventually tell the world how it carried out the attack. Egypt dismissed a similar claim of responsibility for the crash by Islamic State on Saturday.

 

TOURISM WORRIES

Caution among Egyptian officials in assessing the cause of the crash has not eased anxiety among tourism companies that handle visitors to Egypt’s ancient sites and Red Sea resorts.

Shares in Thomas Cook <TCG.L> opened down 2.1 percent after Britain canceled flights to Sharm, dealing a blow to the tourism industry on which Egypt relies to earn hard currency.

Sisi has described Islamist militancy as an existential threat to the Arab world and the West, and has repeatedly called for greater international efforts to combat the militants.

Britain said it was working with airlines and Egyptian authorities to put in place additional security and screening measures to allow Britons in Sharm to get home. It hoped flights bound for Britain could leave on Friday.

Security experts and investigators have said the plane is unlikely to have been struck from the outside and Sinai-based militants are not believed to possess the technology to shoot down a jet cruising above 30,000 feet.

Sinai Province has killed hundreds of Egyptian soldiers and police since Sisi, as army chief, toppled Islamist President Mohamed Mursi in 2013 after mass protests against his rule.

Sisi was elected president last year on promises he would stabilise Egypt and rebuild its shattered economy. Critics say his tough crackdown on Islamists will only create more radicals in Egypt, which has fought militants for decades.

 

(Additional reporting by Jack Stubbs in Moscow; Writing by Michael Georgy; Editing by Tom Heneghan, Giles Elgood and Pravin Char)

Special Report: Exposed – Beijing’s cover global radio network

Photo courtesy of Reuters/Navesh Chitrakar

By Koh Gui Qing and John Shiffman

BEIJING/WASHINGTON (Reuters) – In August, foreign ministers from 10 nations blasted China for building artificial islands in the disputed South China Sea. As media around the world covered the diplomatic clash, a radio station that serves the most powerful city in America had a distinctive take on the news.

Located outside Washington, D.C., WCRW radio made no mention of China’s provocative island project. Instead, an analyst explained that tensions in the region were due to unnamed “external forces” trying “to insert themselves into this part of the world using false claims.”

Behind WCRW’s coverage is a fact that’s never broadcast: The Chinese government controls much of what airs on the station, which can be heard on Capitol Hill and at the White House.

WCRW is just one of a growing number of stations across the world through which Beijing is broadcasting China-friendly news and programming.

A Reuters investigation spanning four continents has identified at least 33 radio stations in 14 countries that are part of a global radio web structured in a way that obscures its majority shareholder: state-run China Radio International, or CRI.

Many of these stations primarily broadcast content created or supplied by CRI or by media companies it controls in the United States, Australia and Europe. Three Chinese expatriate businessmen, who are CRI’s local partners, run the companies and in some cases own a stake in the stations. The network reaches from Finland to Nepal to Australia, and from Philadelphia to San Francisco.

At WCRW, Beijing holds a direct financial interest in the Washington station’s broadcasts. Corporate records in the United States and China show a Beijing-based subsidiary of the Chinese state-owned radio broadcaster owns 60 percent of an American company that leases almost all of the station’s airtime.

China has a number of state-run media properties, such as the Xinhua news agency, that are well-known around the world. But American officials charged with monitoring foreign media ownership and propaganda said they were unaware of the Chinese-controlled radio operation inside the United States until contacted by Reuters. A half-dozen former senior U.S. officials said federal authorities should investigate whether the arrangement violates laws governing foreign media and agents in the United States.

 

“SERIOUS INQUIRY”

A U.S. law enforced by the Federal Communications Commission (FCC) prohibits foreign governments or their representatives from holding a radio license for a U.S. broadcast station. Under the Communications Act, foreign individuals, governments and corporations are permitted to hold up to 20 percent ownership directly in a station and up to 25 percent in the U.S. parent corporation of a station.

CRI itself doesn’t hold ownership stakes in U.S. stations, but it does have a majority share via a subsidiary in the company that leases WCRW in Washington and a Philadelphia station with a similarly high-powered signal.

Said former FCC Chairman Reed Hundt: “If there were allegations made about de facto Chinese government ownership of radio stations, then I’m sure the FCC would investigate.”

U.S. law also requires anyone inside the United States seeking to influence American policy or public opinion on behalf of a foreign government or group to register with the Department of Justice. Public records show that CRI’s U.S. Chinese-American business partner and his companies haven’t registered as foreign agents under the law, called the Foreign Agents Registration Act, or FARA.

“I would make a serious inquiry under FARA into a company rebroadcasting Chinese government propaganda inside the United States without revealing that it is acting on behalf of, or it’s owned or controlled by China,” said D.E. “Ed” Wilson Jr., a former senior White House and Treasury Department official.

CRI headquarters in Beijing and the Chinese embassy in Washington declined to make officials available for interviews or to comment on the findings of this article.

Justice Department national security spokesman Marc Raimondi and FCC spokesman Neil Grace declined to comment.

Other officials at the FCC said the agency receives so many license applications that it only launches a probe if it receives a complaint. People familiar with the matter said no such complaint has been lodged with the FCC about the CRI-backed network in the United States.

 

BUILDING “SOFT POWER”

Chinese President Xi Jinping, who has chafed at a world order he sees as dominated by the United States and its allies, is aware that China struggles to project its views in the international arena.

“We should increase China’s soft power, give a good Chinese narrative and better communicate China’s message to the world,” Xi said in a policy address in November last year, according to Xinhua.

CRI head Wang Gengnian has described Beijing’s messaging effort as the “borrowed boat” strategy – using existing media outlets in foreign nations to carry Chinese propaganda.

The 33 radio stations backed by CRI broadcast in English, Chinese or local languages, offering a mix of news, music and cultural programs. Newscasts are peppered with stories highlighting China’s development, such as its space program, and its contribution to humanitarian causes, including earthquake relief in Nepal.

“We are not the evil empire that some Western media portray us to be,” said a person close to the Communist Party leadership in Beijing who is familiar with the CRI network. “Western media reports about China are too negative. We just want to improve our international image. It’s self-protection.”

In some ways, the CRI-backed radio stations fulfill a similar advocacy role to that of the U.S.-run Voice of America. But there is a fundamental difference: VOA openly publishes the fact that it receives U.S. government funding. CRI is using front companies that cloak its role.

A few of the programs broadcast in the United States cite reports from CRI, but most don’t. One program, The Beijing Hour, says it is “brought to you by China Radio International.”

Some shows are slick, others lack polish. While many segments are indistinguishable from mainstream American radio shows, some include announcers speaking English with noticeable Chinese accents.

The production values vary because the broadcasts are appealing to three distinct audiences: first-generation Chinese immigrants with limited English skills; second-generation Chinese curious about their ancestral homeland; and non-Chinese listeners whom Beijing hopes to influence.

One thing the programs have in common: They generally ignore criticism of China and steer clear of anything that casts Beijing in a negative light.

A top-of-the-hour morning newscast on Oct. 15, broadcast in Washington and other U.S. cities, was identified only as “City News.” It reported that U.S. officials were concerned about cyber attacks, including one in which the personal information of about 20 million American government workers was allegedly stolen. The broadcast left out a key element: It has been widely reported that U.S. officials believe China was behind that hack.

Last year, as thousands of protesters demanding free elections paralyzed Hong Kong for weeks, the news on CRI-backed stations in the United States presented China’s point of view. A report the day after the protests ended did not explain why residents were on the streets and carried no comments from protest leaders. The demonstrations, a report said, had “failed without the support of the people in Hong Kong.”

Many of these stations do not run ads and so do not appear to be commercially motivated.

 

THREE SURROGATES

Around the world, corporate records show, CRI’s surrogates use the same business structure. The three Chinese businessmen in partnership with Beijing have each created a domestic media company that is 60 percent owned by a Beijing-based group called Guoguang Century Media Consultancy. Guoguang, in turn, is wholly owned by a subsidiary of CRI, according to Chinese company filings.

The three companies span the globe:

• In Europe, GBTimes of Tampere, Finland, has an ownership stake in or provides content to at least nine stations, according to interviews and an examination of company filings.

• In Asia-Pacific, Global CAMG Media Group of Melbourne, Australia, has an ownership stake in or supplies programming to at least eight stations, according to corporate records.

• And in North America, G&E Studio Inc, near Los Angeles, California, broadcasts content nearly full time on at least 15 U.S. stations. A station in Vancouver also broadcasts G&E content. In addition to distributing CRI programming, G&E produces and distributes original Beijing-friendly shows from its California studios.

In a Sept. 16 interview at his offices near Los Angeles, G&E president and CEO James Su confirmed that CRI subsidiary Guoguang Century Media holds a majority stake in his company and that he has a contract with the Chinese broadcaster. He said that a non-disclosure agreement bars him from divulging details.

Su said he complies with U.S. laws. G&E doesn’t own stations, but rather leases the airtime on them. “It’s like a management company that manages a condominium,” he said.

Su added that he is a businessman, not an agent for China. “Our U.S. audience and our U.S. public has the choice,” Su said. “They can choose to listen or not listen. I think this is an American value.”

GBTimes CEO Zhao Yinong, who spearheads the European arm of the expatriate radio operation, confirmed that he receives several million euros a year from CRI. In an interview in Beijing, Zhao said he was “not interested in creating a false China” and he had “nothing to hide.”

Tommy Jiang, the head of CAMG, the Australian-based company that owns and operates stations in the Asia-Pacific region, declined to comment.

 

BORN IN A CAVE

CRI has grown remarkably since its founding in 1941. According to its English-language website, its first broadcast was aired from a cave, and the news reader had to frighten away wolves with a flashlight. Today, CRI says it broadcasts worldwide in more than 60 languages and Chinese dialects.

CRI content is carefully scripted, with the treatment of sensitive topics such as the banned Falun Gong spiritual group adhering strictly to the government line. Those restrictions might make China’s soft-power push an uphill battle with audiences in places like Houston, Rome or Auckland.

But CRI does have something to offer station owners. Since 2010, CRI’s broadcast partner in the United States has struck deals that bailed out struggling community radio stations, either by purchasing them outright or paying tens of thousands of dollars a month to lease virtually all their airtime. The latter is known as “time-brokering” and is the method G&E used to take to the air in Washington.

The 195-foot towers broadcasting Beijing’s agenda throughout the Washington region are located in suburban Loudoun County, Virginia, near Dulles International Airport. They pump out a 50,000-watt signal, the maximum for an AM station in the United States.

The towers went live in 2011. In the previous five decades, before the Chinese got involved, the station was known as WAGE, and it used smaller equipment and broadcast mostly local news and talk.

At just 5,000 watts, the signal didn’t carry far. This didn’t matter much until the 1990s, when Loudoun County boomed into a bedroom community for Washington. Commuters would lose the signal halfway to the capital.

In 2005, an American company called Potomac Radio LLC purchased the station and added some nationally syndicated programming. Potomac Radio president Alan Pendleton said his company had a history of leasing time to ethnic programmers, including an hour a day to CRI on another station. Revenue at WAGE continued to fall, however, and in 2009, it went off the air.

“It was a painful, painful experience,” said Pendleton. “We were losing millions of dollars a year down the drain.”

 

LOUDOUN COUNTY’S “LAST HOPE”

Saying they hoped to resurrect the station, other Potomac Radio executives asked Loudoun County in 2009 for permission to erect three broadcast towers on land owned by a county utility, records show. The new towers would boost the station’s signal tenfold to 50,000 watts, reaching into Washington.

In their application, Potomac Radio executives argued that the new towers offered the “last hope to retain Loudoun County’s only” radio station. The paperwork made no mention of plans to lease airtime to Su and CRI.

Potomac Radio also invoked the attacks of Sept. 11, 2001, a day when the station provided “critical information to county businesses and parents” as mobile phone service became overloaded. The new towers would contribute to public safety, proponents said.

The county Board of Supervisors approved the towers. In the days before the station came back on air in April 2011, Potomac Radio sought FCC permission to change the name to WCRW.

Asked about the initials, Pendleton confirmed that they stand for China Radio Washington. The change was his idea, not CRI’s, he said.

Loudoun County officials were surprised when the amped-up station returned as WCRW and began broadcasting G&E and CRI content about China.

“It was all very deceptive,” said Kelly Burk, a county supervisor at the time. “They presented it as all about being about local radio, and never let on what they were really up to.”

Potomac Radio’s Pendleton said there was no deception. His company was approached by CRI several months after the county approved the towers, he said.

Pendleton said he didn’t know that G&E was 60 percent owned by a subsidiary of the Chinese government until Reuters informed him. But the arrangement complies with FCC law, he said, because G&E leases the airwaves instead of owning the station.

In any event, he said, CRI is open about its goals: to present a window into Chinese culture and offer Chinese points of view on international affairs.

“If you listen to other state-sponsored broadcasters,” especially Russia’s, “they’re really insidious,” Pendleton said. “CRI’s not like that at all.”

Pendleton said he has no input in WCRW content: He simply rebroadcasts whatever programs arrive from CRI’s man in America, G&E founder James Su.

 

CHINA’S “PROXY”

James Yantao Su was born in Shanghai in 1970, the year China launched its first satellite. He moved to the United States in 1989, he said, ultimately settling in West Covina, a suburb of Los Angeles, and became a U.S. citizen.

By the early 2000s, Su was a moderately successful media entrepreneur. But after his 2009 deal to create G&E, in which the Chinese state-owned subsidiary has a majority stake, his fortunes rose.

Today, the 44-year-old owns or co-owns real estate and radio stations worth more than $15 million, according to a Reuters analysis of U.S. corporate, property, tax and FCC records. His projects include English and Chinese-language stations, a magazine, a newspaper, four apartment buildings, condos at the Trump International Hotel in Las Vegas, a film festival and a charity that last year donated $230,000 to an orphanage in China.

Two of his primary companies are G&E Studio and EDI Media Inc. G&E dedicated a page on its website to showcase CRI as a “close” partner, but it recently deleted the page after Reuters made inquiries. EDI’s site says it has become “China’s outward media and advertising proxy” in the United States.

In 2013, the Chinese government presented Su with a special contribution award at a media event for Chinese broadcasters.

Other ties are not as visible: The key disclosure that G&E is 60 percent owned by Guoguang Century – the Beijing firm that’s 100 percent owned by CRI – is contained in a footnote in a lengthy FCC filing made on behalf of another Su company, Golden City Broadcast, LLC.

Su declined to discuss his business career in detail. An early highlight, though, was a speech he gave in 2003, when he was in his early thirties.

Covered by China’s state-run media, the speech laid out Su’s vision for a business that could be profitable and also help China project its message in the United States. The business would need to be structured to comply with U.S. ownership laws and would “endorse China’s ideology,” Su was quoted as saying.

In the same speech, he spoke of his fellow expats’ affinity for China. “The sense of belonging to China among countrymen residing abroad and their endorsement of China’s current policies grow with each day,” Su said, according to Xinhua.

In 2008, Su gave an address in which he criticized U.S. media for focusing their China coverage on issues such as human rights.

The media were misleading “the American masses’ objective understanding of China, even engendering hostile emotions,” Su said, according to a China National Radio report.

It was in 2009 that Su’s vision really began to take shape. That year, records show, Su created G&E Studio.

 

“UNFILTERED REAL NEWS”

G&E now broadcasts in English and Chinese on at least 15 U.S. stations, including Salt Lake City, Atlanta, Philadelphia, Houston, Honolulu and Portland, Oregon.

The content is largely the same on each station, produced either by CRI from Beijing or by G&E from California.

A typical hour on most stations begins with a short newscast that can toggle between China news and stories about violent crimes in the United States. Besides the overtly political coverage, topics range from global currency fluctuations and Chinese trade missions to celebrity wardrobe analysis and modern parenting challenges.

While Su owns a minority share of G&E, he has structured his radio station holdings in various ways. According to the most recent FCC records, he is the majority owner of at least six stations, such as the one in Atlanta, which he purchased for $2.1 million in 2013.

In other cases he leases airtime. In Washington, for instance, he leases virtually all the time on WCRW for more than $720,000 a year through G&E. A Philadelphia station is leased under a similar arrangement for at least $600,000 a year.

A spokeswoman for Su said Reuters’ description of the extent of his network is “generally correct.”

Su declined to describe how he makes money when most of the U.S. stations air virtually no commercials. He also declined to say how he got the money to finance his radio leases and acquisitions.

His stations, Su said, offer the American public an alternative viewpoint on Chinese culture and politics. He has “no way to control” what CRI broadcasts on the stations, he said, nor is he part of any plan to spread Chinese propaganda.

“We are only telling the unfiltered real news to our audience,” he said.

On Oct. 29, WCRW carried a program called “The Hourly News.” Among the top stories: Senior Chinese and U.S. naval commanders planned to speak by video after a U.S. Navy ship passed close by China’s new artificial islands in the South China Sea.

Washington and its allies see the island-building program as a ploy to grab control of strategic sea lanes, and the Navy sail-by was meant to counter China’s territorial claims.

WCRW omitted that side of the story.

The admirals are holding the talks, the announcer said, “amid the tension the U.S. created this week.”

 

(Edited by Bill Tarrant and Peter Hirschberg. Reported by Koh Gui Qing in Beijing and John Shiffman in Washington and Los Angeles. Additional reporting by Benjamin Kang Lim and Joseph Campbell in Beijing, Ritsuko Ando in Tokyo, Gopal Sharma and Ross Adkin in Kathmandu, Mirwais Harooni in Kabul, Joyce Lee in Seoul, Eveline Danubrata and Arzia Tivany Wargadiredja in Jakarta, Mohammed Shihar in Colombo, Khettiya Jittapong and Pairat Temphairojana in Bangkok, Terrence Edwards in Ulan Bator, Theodora D’cruz in Singapore, Diane Chan in Hong Kong, Jane Wardell and Ian Chua in Sydney, Balazs Koranyi and Harro Ten Wolde in Frankfurt, Jussi Rosendahl in Helsinki, Sara Ledwith in London, Julia Fioretti in Brussels, Can Sezer in Istanbul, Andrius Sytas in Vilnius, Kole Casule in Skopje, Renee Maltezou in Athens, Margarita Antidze in Tbilisi, Radu-Sorin Marinas in Bucharest, Geert De Clercq in Paris, Marton Dunai in Budapest, Ed Cropley in Johannesburg, Selam Gebrekidan in New York, Anna Driver in Houston, Renee Dudley in Boston, Brian Grow in Atlanta, David Storey in Washington and Euan Rocha in Toronto.)

Cyber security stocks get filip from Talk hack attack

Photo courtesy of Reuters/Stefan Wermuth

LONDON (Reuters) – The hacking scandal at broadband provider TalkTalk has heightened interest in stocks and companies dealing in cyber security, with some fund managers betting on more growth in the sector.

British police said on Friday that they had arrested a second teenager in connection with the breach at TalkTalk, which may have led to the theft of personal data from among the company’s more than 4 million customers.

TalkTalk was not the first such incident, but traders and investors said it should re-ignite interest in companies offering protection against hack attacks.

Market research firm Gartner has estimated that global spending on IT security is set to increase 8.2 percent in 2015 to $77 billion. Corporations around the world will spend $101 billion on information security in 2018, Gartner says.

That has caught the attention of financial markets. The ISPY exchange-traded-fund, which lets investors hold a basket of cyber security stocks – such as Cisco Systems and Sophos Group – has risen around 3 percent.

“As cyber crime continues to grow, governments and companies are prioritising cyber security as an essential investment. This is a sector we can expect to dominate headlines and corporate budgets,” said Kris Monaco, the head of ISE ETF Ventures.

Others focused on some relatively small British stocks whose shares have risen, in contrast to those of TalkTalk whose stock has fallen 6 percent in the last week.

Falanx Group has climbed 15 percent over that same period. NCC Group and Corero Network Security – an offshoot of the former Corero software business – have risen 3 percent.

Corero’s products include software that protects against attacks on Internet sites and domain addresses.

NCC has similar services, including one to test how vulnerable a company is to “phishing” – where internal emails are hacked by someone posing as an employee or outside contact – while Falanx has services monitoring clients’ computer infrastructure for signs of suspicious activity.

John Blamire, a former British Army officer who is chief executive at Falanx, said customer interest had risen since the attack on TalkTalk.

“Incidents such as the one at TalkTalk actively brings attention to organizations such as ours,” he said.

To be sure, stocks such as these would carry the usual risks associated with “small cap” stocks with a relatively small market valuation – less liquidity, which can then make them more prone to a slump and harder to sell than bigger stocks.

Nevertheless, they have attracted some big-name investment houses, with Liontrust Asset Management holding a near 10 percent stake in NCC while Blackrock Investment Management has a near 3 percent holding in Corero. Both Liontrust and Blackrock declined to comment on those holdings.

Mark Slater, chief investment officer at Slater Investments, holds around 3 million NCC shares in his company’s portfolio, and he expected NCC and others to continue to grow.

“The nature of the Internet makes it open to attack. These problems are not going to go away.”

(By Sudip Kar-Gupta; Reporting by Sudip Kar-Gupta; Editing by Lionel Laurent, Larry King)