Tag Archives: US

Afghan Muslim arrested for killings that shook New Mexico’s Islamic community

ALBUQUERQUE, N.M., Aug 9 (Reuters) – A Muslim immigrant from Afghanistan has been arrested as the prime suspect in the serial killings of four Muslim men that rattled the Islamic community of New Mexico’s largest city, police said on Tuesday.

After days bolstering security around Albuquerque-area mosques, seeking to allay fears of a shooter driven by anti-Muslim hate, police said on Tuesday they had arrested 51-year-old Muhammad Syed, one among the city’s Islamic immigrant community.

Authorities said the killings may have been rooted in a personal grudge, possibly with intra-Muslim sectarian overtones.

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All four victims were of Afghan or Pakistani descent. One was killed in November, and the other three in the last two weeks.

A search of the suspect’s Albuquerque home uncovered “evidence that shows the offender knew the victims to some extent, and an inter-personal conflict may have led to the shootings,” police said in a statement announcing the arrest.

Investigators are still piecing together motives for the killings of the four men, Deputy Commander Kyle Hartsock of the Albuquerque Police Department said at a news conference.

In response to reporters’ questions, Hartsock said sectarian animus by the suspect toward his fellow Muslim victims may have played a role in the violence. “But we’re not really clear if that was the actual motive, or if it was part of a motive, or if there is just a bigger picture that we’re missing,” he said.

Syed has a record of criminal misdemeanors in the United States, including a case of domestic violence, over the last three or four years, Hartsock said.

Police credited scores of tips from the public in helping investigators locate a car that detectives believed was used in at least one of the killings and ultimately track down the man they called their “primary suspect” in all four slayings.

Syed was formally charged with two of the homicides: those of Aftab Hussein, 41, and Muhammed Afzaal Hussain, 27, killed on July 26 and Aug. 1, respectively, Albuquerque Police Chief Harold Medina told the briefing.

The latest victim, Nayeem Hussain, 25, a truck driver who became a U.S. citizen on July 8, was killed on Friday, hours after attending the burial of the two men slain in July and August, both of them of Pakistani descent.

The three most recent victims all attended the Islamic Center of New Mexico, Albuquerque’s largest mosque. They were all shot near Central Avenue in southeastern Albuquerque.

The first known victim, Mohammad Ahmadi, 62, a native of Afghanistan, was killed on Nov. 7, 2021, while smoking a cigarette outside a grocery store and cafe that he ran with his brother in the southeastern part of the city.

BULLET CASINGS

Police said the two killings with which Syed was initially charged were tied together based on bullet casings found at the two murder scenes, and the gun used in those shootings was later found in his home.

According to police, detectives were preparing to search Syed’s residence in southeastern Albuquerque on Monday when he drove from the residence in the car that investigators had identified to the public a day earlier as a “vehicle of interest.”

Albuquerque and state authorities have been working to provide extra police presence at mosques during times of prayer as the investigation proceeded in the city, home to as many as 5,000 Muslims out of a total population of 565,000.

The ambush-style shootings of the men have terrified Albuquerque’s Muslim community. Families went into hiding in their homes, and some Pakistani students at the University of New Mexico left town out of fear.

Imtiaz Hussain, whose brother worked as a city planning director and was killed on Aug. 1, said news of the arrest reassured many in the Muslim community.

“My kids asked me, ‘Can we sit on our balcony now?’ and I said, ‘Yes,’ and they said, ‘Can we go out and play now?’ and I said, ‘Yes,'” he said.

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Reporting by Andrew Hay in Albuquerque, New Mexico and Steve Gorman in Los Angeles; Additional reporting by Rami Ayyub in Washington; Tyler Clifford in New York and Dan Whitcomb in Los Angeles; Editing by Jonathan Oatis, Cynthia Osterman, Daniel Wallis and Raju Gopalakrishnan

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Musk sells Tesla shares worth $6.9 billion, cites chance of forced Twitter deal

Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China January 7, 2019. REUTERS/Aly Song

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Aug 10 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk sold $6.9 billion worth of shares in the electric vehicle maker, saying the funds could be used to finance a potential Twitter deal if he loses a legal battle with the social media platform.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” he said in a tweet late on Tuesday.

Musk in early July tore up his April 25 agreement to buy Twitter for $44 billion. Twitter has sued Musk to force him to complete the transaction, dismissing his claim that he was misled about the number of spam accounts on the social media platform as buyer’s remorse in the wake of a plunge in technology stocks. The two sides head to trial on Oct. 17.

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“Street will read through this poker move that chances of Twitter deal more likely now,” Dan Ives, an analyst at Wedbush Securities, tweeted.

In other comments on Twitter on Tuesday, Musk said “yes” when asked if he was done selling Tesla stock, and also said he would buy Tesla stock again if the Twitter deal does not close.

Tesla did not immediately respond to a Reuters request for comment.

Musk, the world’s richest person, sold $8.5 billion worth of Tesla shares in April and had said at the time there were no further sales planned. But since then, legal experts had suggested that if Musk is forced to complete the acquisition or settle the dispute with a stiff penalty, he was likely to sell more Tesla shares.

Musk sold about 7.92 million shares between Aug.5 and Aug.9, according to multiple filings. He now owns 155.04 million Tesla shares or just under 15% of the automaker according to Reuters calculations.

The latest sales bring total Tesla stock sales by Musk to about $32 billion in less than one year.

Tesla shares have risen nearly 15% since the automaker reported better-than-expected earnings on July 20, also helped by the Biden administration’s climate bill that, if passed, would lift the cap on tax credits for electric vehicles.

Musk also teased on Tuesday that he could start his own social media platform. When asked by a Twitter user if he had thought about creating his own platform if the deal didn’t close, he replied: “X.com”

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Reporting by Hyunjoo Jin in San Francisco and Akriti Sharma in Bengaluru; Additional reporting by Shubham Kalia and Shivam Patel; Editing by Edwina Gibbs

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Emmett Till death: Grand jury declines to indict Carolyn Bryant Donham

A Leflore County grand jury last week heard seven hours of testimony from investigators and witnesses but said there was insufficient evidence to indict Carolyn Bryant Donham on charges of kidnapping and manslaughter, according to a statement from District Attorney Dewayne Richardson.

The grand jury heard the testimony from witnesses detailing the investigation of the case from 2004 to the present day and considered both charges, according to the statement.

“After hearing every aspect of the investigation and evidence collected regarding Donham’s involvement, the Grand Jury returned a ‘No Bill’ to the charges of both Kidnapping and Manslaughter,” the statement said. “The murder of Emmett Till remains an unforgettable tragedy in this country and the thoughts and prayers of this nation continue to be with the family of Emmett Till.”

Family members of Emmett, whose killing in the Jim Crow-era South spurred the civil rights movement in America, said earlier this summer that they had unearthed an unserved arrest warrant for Bryant Donham, her late husband and his brother.

The warrant is dated August 29, 1955, and signed by the Leflore County clerk. The image of the warrant shows the current clerk certified the document as authentic on June 21.

A note on the back of the warrant says Bryant Donham was not arrested because she could not be located at the time, according to the New York Times, which cited filmmaker Keith A. Beauchamp, who was part of the team that discovered the warrant. CNN reached out to Bryant Donham at the time but didn’t hear back.

A cousin who witnessed Emmett’s abduction, Rev. Wheeler Parker Jr., said Tuesday that state officials have assured the family no stone would be left unturned in the fight for justice.

“They kept their promise by bringing this latest piece of evidence before the grand jury. This outcome is unfortunate, but predictable, news,” he said in the statement. “The prosecutor tried his best, and we appreciate his efforts, but he alone cannot undo hundreds of years of anti-Black systems that guaranteed those who killed Emmett Till would go unpunished, to this day.”

Another cousin, Deborah Watts, said the decision not to indict Bryant Donham was very disappointing but said the family refuses to give up

“We vow that the pursuit of accountability and Justice For Emmett Till will continue,” she said. “Emmett Till’s death will not be in vain. “

While Emmett’s killing remains a touchstone moment in the United States’ long struggle with racial injustice and inequality, to this day, no one has been held criminally responsible.

Emmett, who lived in Chicago, was visiting relatives in Mississippi when he had his fateful encounter with then-20-year-old Carolyn Bryant in the summer of 1955. Accounts from that day differ, but witnesses alleged Emmett whistled at the woman at the market she owned with her husband in the town of Money.

Four days later, Roy Bryant and J.W. Milam later took Emmett from his bed in the middle of the night, ordered him into the back of a pickup and beat him before shooting him in the head and tossing his body into the Tallahatchie River.

But they were both acquitted of murder by an all-White jury following a trial in which Carolyn Bryant testified that Emmett grabbed and verbally threatened her. The jury deliberated for barely an hour.

The men later admitted to the killing in a 1956 interview with Look magazine.

Emmett’s death captured attention far beyond Mississippi after a photo of his mutilated body was published in Jet Magazine and spread around the world. His mother, Mamie Till-Mobley, had demanded he have an open-casket funeral so the entire world could see her son’s injuries and the results of racial terrorism — a decision that helped fuel the civil rights movement.

Milam died in 1980 and Bryant died in 1994. Bryant Donham is in her late 80s.

In 2007, a Mississippi grand jury declined to indict Bryant Donham on charges. And according to archived FBI documents, Milam and Roy Bryant were arrested on a kidnapping charge in 1955, but a grand jury failed to indict them. “The original court, District Attorney, and investigative records related to the 1955 investigation have been apparently lost,” the FBI said in a 2006 report.

Bryant Donham testified in 1955 that Emmett grabbed her hand, her waist and propositioned her, saying he had been with “White women before.” But years later, when professor Timothy Tyson raised that trial testimony in a 2008 interview with Bryant Donham, he claimed she told him, “That part’s not true.”

The prospect that the woman at the center of Emmett’s case had recanted her testimony — which the US Justice Department said in a memo would contradict statements she made during the state trial in 1955 and later to the FBI — sparked calls for authorities to investigate the case anew.
The DOJ, which had already re-examined and closed the case in 2007, reopened the probe into Emmett’s killing in 2018. But the case was closed in December after the DOJ’s Civil Rights Division concluded it could not prove Bryant Donham had lied. When questioned directly, Bryant Donham adamantly denied to investigators that she had recanted her testimony.
Emmett’s legacy, however, lives on: In March, President Joe Biden signed into law the landmark Emmett Till Antilynching Act, which made lynching a federal hate crime.

CNN’s Amy Simonson, Jamiel Lynch, Sara Sidner, Tina Burnside, Dakin Andone, Devon Sayers, Elizabeth Joseph and Eliott C. McLaughlin contributed to this report.

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Nasdaq closes lower as chipmaker Micron’s warning renews tech rout

  • Micron falls on lowered revenue forecast
  • Semiconductor stocks drop for third session
  • Novavax tumbles after cutting revenue view by half

NEW YORK, Aug 9 (Reuters) – The Nasdaq closed down on Tuesday after a dismal forecast from Micron Technology pulled chip makers and tech stocks lower as investors await U.S. inflation data that could lead the Federal Reserve to further tighten its efforts to curb inflation.

High inflation numbers on Wednesday, following last week’s blowout jobs report, would likely stop the Fed from easing interest rates hikes anytime soon and halt the market’s rally off mid-June lows.

Traders see a 68.5% chance of the Fed raising rates by 75 basis points in September, in what would be its third big hike in a row.

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Adding to concerns of a tight labor market and runaway inflation, data on Tuesday showed an acceleration of unit labor costs in the second quarter, which suggested strong wage pressures will help keep inflation elevated. read more

Unit labor costs – the price of labor per single unit of output – rose at a 10.8% rate, following a 12.7% rate of growth in the first quarter, the Labor Department said.

“We’re still seeing wage pressure building, using last Friday’s job data as a gauge,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office.

Chang remains cautious about the market’s outlook. “I don’t think it’s going to be a set of numbers that will change the Fed’s policy course,” he said.

Inflation at the moment is primarily supply driven, so the traditional central bank playbook of tightening rates to crimp demand will not be as effective as previous cycles, said Jean Boivin, head of the BlackRock Investment Institute.

“We’re going to see central banks being surprised by inflation. They will have to sound hawkish on the back of this,” Boivin told the Reuters Global Markets Forum.

The Dow Jones Industrial Average (.DJI) fell 58.13 points, or 0.18%, to 32,774.41, while the S&P 500 (.SPX) lost 17.59 points, or 0.42%, to 4,122.47 and the Nasdaq Composite (.IXIC) dropped 150.53 points, or 1.19%, to 12,493.93.

Volume on U.S. exchanges was 10.64 billion shares, compared with the 10.94 billion average for the full session over the past 20 trading days.

Seven of the 11 major S&P 500 sectors fell, led by a 1.5%decline in consumer discretionary (.SPLRCD). Value stocks (.IVX) closed flat, while the growth index (.IGX) slid 0.8%.

The jobs data from last Friday eroded some of the bullish arguments that the Fed would “pivot” to a neutral policy stance, followed by rate cuts early next year, Chang said.

“You have some strategists and technicians capitulating, saying the bottom is behind us, this is a new bull market now,” he said. “Typically in a bear market, a summer rally is not unusual.”

Micron Technology Inc (MU.O) slid 3.7% after the memory-chipmaker cut its current-quarter revenue forecast and warned of negative free cash flow in its next quarter as demand wanes for chips in PCs and smartphones. read more

YTD performance

Micron’s dismal forecast, a day after Nvidia Corp (NVDA.O) warned of weakness in its gaming business, knocked the Philadelphia Semiconductor index (.SOX) down 4.57%, its biggest single-day decline since June 16 as all 30 components fell. The index has lost 7% the past three days.

President Joe Biden signed a sweeping bill to provide $52.7 billion in subsidies for U.S. semiconductor production and research, a measure that gained bipartisan support to combat China’s investment in technology. read more

“It’s utterly discounted,” said Michael Shaoul, chief executive officer at Marketfield, on why chip stocks were unfazed by the bill.

Rate-sensitive growth and technology stocks slipped as U.S. Treasury yields climbed.

Despite a choppy recovery, the benchmark S&P 500 (.SPX) is down 13.5% this year after hitting a record high in early January as surging consumer prices, hawkish central banks and geopolitical tensions weigh.

Stronger-than-expected earnings from corporate America have been a positive, with 77.5% of S&P 500 companies beating earnings estimates, according to Refinitiv data as of Friday.

Occidental Petroleum (OXY.N) rose 4.0% after Warren Buffett’s Berkshire Hathaway (BRKa.N) increased its stake to 20.2% of outstanding shares. Occidental’s shares have more than doubled in price this year. read more

U.S. vaccine maker Novavax (NVAX.O) slumped 29.6% after it halved its annual revenue forecast as it does not expect further sales of its COVID-19 shot this year in the United States amid a global supply glut and soft demand. read more

Declining issues outnumbered advancing ones on the NYSE by a 1.91-to-1 ratio; on Nasdaq, a 2.41-to-1 ratio favored decliners.

The S&P 500 posted four new 52-week highs and 30 new lows; the Nasdaq Composite recorded 42 new highs and 66 new lows.

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Reporting by Herbert Lash in New York and Bansari Mayur Kamdar in Bengaluru; Additional reporting by Aniruddha Ghosh in Bengaluru; Editing Arun Koyyur, Shounak Dasgupta and Lisa Shumaker

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Oil settles lower as halted Russian pipeline flows appear temporary, demand fears rise

Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

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  • Russia oil exports halted via southern leg of Druzhba pipeline
  • EU puts forward ‘final’ text to resurrect Iran nuclear deal
  • API data shows crude oil inventories up last week – sources
  • Dollar edges lower as traders await U.S. inflation report
  • Recession, demand expectations also weigh on market

NEW YORK, Aug 9 (Reuters) – Oil prices settled slightly lower on Tuesday after a see-saw session as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.

Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4%. U.S. West Texas Intermediate (WTI) crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%. During the session, both benchmarks rose and fell by more than $1 a barrel.

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Ukraine halted oil flows on the Druzhba oil pipeline to parts of central Europe because Western sanctions had prevented a payment from Moscow for transit fees from going through.

Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany was uninterrupted.

Oil initially moved higher on the pipeline news and expectations that the shutdown would tighten supplies, but prices reversed course as details became clearer around what caused the disruption and that flows were expected to resume within days. read more

“Considering the fact it is not the Russian side shutting down pipe, but the Ukrainian side, it would figure to be a situation that can resolved sooner rather than later,” Bob Yawger, director of energy futures at Mizuho in New York, said in a note.

Prices were pressured by talks of a last-ditch effort by European nations to revive the Iran nuclear accord. On Monday, the European Union put forward a “final” text to revive the 2015 Iran deal. A senior EU official said a final decision on the proposal, which needs U.S. and Iranian approval, was expected within “very, very few weeks”.

Talks have dragged on for months without a deal.

Iran’s crude exports, according to tanker trackers, are at least 1 million barrels per day below their rate in 2018 when former U.S. President Donald Trump exited the nuclear agreement.

Oil is now down more than $40 from its peak following Russia’s invasion of Ukraine, which took Brent briefly to $139 a barrel.

U.S. crude oil inventories were also signaling slacking demand, according to market sources citing American Petroleum Institute figures. Crude stocks rose by about 2.2 million barrels for the week ended Aug. 5. Analysts had forecast a small 400,000-barrel drop in crude inventories. Official government data is due on Wednesday at 10:30 a.m. EDT.

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Additional reporting by Alex Lawler, Sonali Paul and Emily Chow
Editing by Louise Heavens, Mark Potter, Barbara Lewis and David Gregorio

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Micron’s warning of weak demand rattles chip stocks

Micron Technology’s solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis/File Photo

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Aug 9 (Reuters) – Micron Technology (MU.O) cut its current-quarter revenue forecast on Tuesday and warned of a negative free cash flow in the coming three months as customer inventories pile up amid waning demand for chips used in PCs and smartphones.

The dismal forecast comes a day after Nvidia (NVDA.O) warned of weakness in its gaming business, accentuating fears of the first chip industry downturn since 2019.

That sent Micron’s shares and the Philadelphia SE Semiconductor index (.SOX) down 5.7% and 4.3%, as investors looked past U.S. President Joe Biden signing a landmark bill for $52.7 billion in subsidies for semiconductor production and research. Micron Chief Executive Sanjay Mehrotra was among the attendees at the signing. read more

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Micron also announced a $40 billion investment in memory chip manufacturing in the United States, but said capital expenditure was expected to decrease in fiscal 2023 from 2022.

Fourth-quarter revenue is likely to come in at or below the low end of the company’s prior forecast. Its earlier range of $6.8 billion to $7.6 billion had fallen short of Wall Street targets in June. read more

Micron, which last reported negative free cash flow in 2020 during the early days of the pandemic, warned it could see significant sequential declines in revenue and margins in its first quarter due to a fall in shipments.

Surging prices have forced consumers to curb their spending on electronic gadgets, prompting production revaluations at companies sitting on excess inventory of chips and other components in anticipation of strong post-pandemic demand.

Shipments of PCs are expected to drop 9.5% this year, according to IT research firm Gartner.

That, and cooling demand for smartphones, has drawn demand-related warnings from Micron and others including Intel (INTC.O), Advanced Micro Devices (AMD.O), Qualcomm (QCOM.O) and Nvidia Corp (NVDA.O).

Micron is seeing cloud, industrial and automotive customers also make “inventory adjustments” due to macro uncertainty, finance chief Mark Murphy said at the Keybanc Technology Leadership forum on Tuesday.

“It’s a challenging setup for this quarter.”

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Reporting by Chavi Mehta in Bengaluru; Editing by Anil D’Silva and Devika Syamnath

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AppLovin offers to buy video game software maker Unity in $17.5 bln deal

People play “Pokemon GO” on the Pokequan GoBoat Adventure Cruise in the Occoquan River in the small town of Occoquan, Virginia, U.S. August 14, 2016. REUTERS/Sait Serkan Gurbuz

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Aug 9 (Reuters) – Gaming software company AppLovin Corp (APP.O) on Tuesday made an offer to buy peer Unity Software Inc (U.N) in a $17.54 billion all-stock deal, looking to tap into growing demand for three-dimensional gaming.

Both companies make software used to design video games. Game-making software has also been expanding to new technologies such as the so-called metaverse, or immersive virtual worlds.

Unity’s software has been used to build some of the most-played games such as “Call of Duty: Mobile,” and “Pokemon Go”, while AppLovin provides helps developers to grow and monetize their apps.

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The enterprise value of the deal is $20 billion. AppLovin will offer $58.85 for each Unity share, which represents a premium of 18% to Unity’s Monday closing price.

Shares of Unity rose 7%, while those of AppLovin fell 14% before the opening bell.

Under the proposed deal, Unity will own 55% of the combined company’s outstanding shares, representing about 49% of the voting rights.

AppLovin Chief Executive Officer Adam Foroughi said the combined company will have the potential to generate an adjusted operating profit of over $3 billion by the end of 2024.

“Unity is one of the world’s leading platforms for helping creators turn their inspirations into real-time 3D content,” Foroughi said.

Last week, Reuters reported that Unity was in talks to spinoff its China unit to expand in one of the world’s biggest markets for video games.

Palo Alto, California-based AppLovin, backed by KKR and Co (KKR.N) went public last year, cashing in on the surge in demand for video games from people staying at home due to the COVID-19 pandemic.

AppLovin’s offer, however, comes as game developers and console makers warn of a slowdown in the sector as decades-high inflation and easing of cOVID-19 restrictions lead gamers to pick outdoor activities.

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Reporting by Eva Mathews and Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty

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Russia puts Iranian satellite into orbit

  • This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.

MOSCOW, Aug 9 (Reuters) – Russia launched an Iranian satellite into orbit on Tuesday from southern Kazakhstan, just three weeks after President Vladimir Putin and Supreme Leader Ayatollah Ali Khamenei pledged to work together against the West.

The remote Khayyam sensing satellite, named after the 11th Century Persian poet and philosopher Omar Khayyam, was launched by a Russian Soyuz rocket from the Baikonur Cosmodrome in Kazakhstan and entered orbit successfully, Russia’s space agency said.

Iran’s space agency has received the first telemetry data sent from the satellite, the official IRNA news agency said. read more

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Tehran has rejected claims the satellite could be used by Moscow to boost its intelligence capabilities in Ukraine, saying Iran will have full control and operation over it “from day one.”

The Washington Post reported last week that U.S. officials are concerned by the fledgling space cooperation between Russia and Iran, fearing the satellite will not only help Russia in Ukraine but also provide Iran “unprecedented capabilities” to monitor potential military targets in Israel and the wider middle east.

Iran says the satellite is designed for scientific research including radiation and environmental monitoring for agricultural purposes.

Russia has sought to deepen its ties with Iran since Feb. 24, when the Kremlin ordered tens of thousands of troops into Ukraine, prompting the United States and its allies to impose the most severe sanctions in recent history.

In July, Putin visited Iran in his first international trip outside the former Soviet Union since the start of Russia’s military campaign in Ukraine.

While there, Khamenei told Putin that Tehran and Moscow needed to stay vigilant against “Western deception”. read more

Space has been one field where the United States and Russia have traditionally maintained cooperation and strong ties despite geopolitical tensions between Moscow and Washington.

Roscosmos and NASA recently inked a deal to carry each other’s astronauts to the International Space Station (ISS), but Moscow has made noises about quitting the ISS at some stage in the future. read more

Putin recently removed the outspoken Dmitry Rogozin as head of Roscosmos, replacing him with a former defence advisor in a shake-up of the agency. read more

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Reporting by Reuters; editing by Guy Faulconbridge

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Taiwanese foreign minister says China drills part of a game-plan for invasion

TAIPEI, Aug 9 (Reuters) – Taiwan’s foreign minister said on Tuesday that China was using the military drills it launched in protest against U.S. House Speaker Nancy Pelosi’s visit as a game-plan to prepare for an invasion of the self-ruled island.

Joseph Wu, speaking at a press conference in Taipei, offered no time-table for a possible invasion of Taiwan, which is claimed by China as its own.

He said Taiwan would not be intimidated even as the drills continued with China often breaching the unofficial median line down the Taiwan Strait.

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“China has used the drills in its military play-book to prepare for the invasion of Taiwan,” Wu said.

“It is conducting large-scale military exercises and missile launches, as well as cyberattacks, disinformation, and economic coercion, in an attempt to weaken public morale in Taiwan.

“After the drills conclude, China may try to routinise its action in an attempt to wreck the long-term status quo across the Taiwan Strait,” Wu said.

Such moves threatened regional security and provided “a clear image of China’s geostrategic ambitions beyond Taiwan”, Wu said, urging greater international support to stop China effectively controlling the strait.

A Pentagon official said on Monday that Washington was sticking to its assessment that China would not try to invade Taiwan for the next two years. read more

Wu spoke as military tensions simmer after the scheduled end on Sunday of four days of the largest-ever Chinese exercises surrounding the island – drills that included ballistic missile launches and simulated sea and air attacks in the skies and seas surrounding Taiwan.

China’s Eastern Theatre Command announced on Monday that it would conduct fresh joint drills focusing on anti-submarine and sea assault operations – confirming the fears of some security analysts and diplomats that Beijing would keep up the pressure on Taiwan’s defences.

A person familiar with security planning in the areas around Taiwan described to Reuters on Tuesday a continuing “standoff” around the median line involving about 10 warships each from China and Taiwan.

“China continued to try to press in to the median line,” the person said. “Taiwan forces there have been trying to keep the international waterways open.”

As Pelosi left the region last Friday, China also ditched some lines of communication with the United States, including theatre level military talks and discussions on climate change.

Taiwan started its own long-scheduled drills on Tuesday, firing howitzer artillery out to sea in the southern county of Pingtung.

U.S. President Joe Biden, in his first public comments on the issue since Pelosi’s visit, said on Monday he was concerned about China’s actions in the region but he was not worried about Taiwan. read more

“I’m concerned they are moving as much as they are,” Biden told reporters in Delaware, referring to China. “But I don’t think they’re going to do anything more than they are.”

Under Secretary of Defense for Policy Colin Kahl also said the U.S. military would continue to carry out voyages through the Taiwan Strait in the coming weeks.

China has never ruled out taking Taiwan by force and on Monday Chinese foreign ministry spokesman Wang Wenbin said that China was conducting normal military exercises “in our waters” in an open, transparent and professional way, adding Taiwan was part of China.

Taiwan rejects China’s sovereignty claims, saying only the Taiwanese people can decide the island’s future.

(This story was refiled to fix typo in para 10)

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Reporting by Sarah Wu and Yimou Lee in Taipei; Writing by Greg Torode, Editing by Raju Gopalakrishnan

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EXCLUSIVE Russia starts stripping jetliners for parts as sanctions bite

  • This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Aug 8 (Reuters) – Russian airlines, including state-controlled Aeroflot (AFLT.MM), are stripping jetliners to secure spare parts they can no longer buy abroad because of Western sanctions, four industry sources told Reuters.

The steps are in line with advice Russia’s government provided in June for airlines to use some aircraft for parts to ensure the remainder of foreign-built planes can continue flying at least through 2025.

Sanctions imposed on Russia after it sent its troops into Ukraine in late February have prevented its airlines from obtaining spare parts or undergoing maintenance in the West.

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Aviation experts have said that Russian airlines would be likely to start taking parts from their planes to keep them airworthy, but these are the first detailed examples.

At least one Russian-made Sukhoi Superjet 100 and an Airbus A350, both operated by Aeroflot, are currently grounded and being disassembled, one source familiar with the matter said.

The source declined to be identified due to the sensitivity of the issue.

The Airbus A350 is almost brand new, the source said.

Most of Russia’s fleet of aircraft consists of Western passenger jets.

Equipment was being taken from a couple of Aeroflot’s Boeing 737s and Airbus A320s, as the carrier needs more spare parts from those models for its other Boeing 737s and Airbus A320s, the source said.

The Russian Ministry of Transport and Aeroflot did not reply to requests for comment.

‘MATTER OF TIME’

Russian-assembled Sukhoi Superjets are also heavily dependent on foreign parts. An engine has already been removed from one Superjet to allow another Superjet to continue flying, the first source said.

To be sure, engines are frequently swapped between aircraft and are usually supplied under separate contracts, industry experts said. They are not considered part of the core airframe.

It is “only a matter of time” before Russia-based planes are cannibalised, a Western aviation industry source said.

Newer generations of jets – A320neo, A350 and Boeing 737 MAX and 787 – have technology that has to be constantly updated.

Within a year of the sanctions coming into effect, it will be a “challenge” to keep modern jets in service even for Russia’s highly developed and competent engineering base, Western sources have said. read more

The practice of removing parts to keep another plane flying is commonly known as turning the disused planes into “Christmas trees”. Although relatively rare, it is most often linked to financial difficulties and has never happened on the same scale as the widespread reshuffle being predicted in Russia in order to address the impact of sanctions.

Jetliners may be made operational again provided parts taken away are put back, though this would not necessarily reconstitute the traceability needed for jets to re-enter global markets.

Many parts have a limited life that must be logged.

Nearly 80% of Aeroflot’s fleet consists of Boeings (BA.N) and Airbuses (AIR.PA) – it has 134 Boeings and 146 Airbuses, along with nearly 80 Russia-made Sukhoi Superjet-100 planes as of end last year, based on the latest data available.

According to Reuters calculations based on data from Flightradar24, some 50 Aeroflot planes – or 15% of its fleet, including jets stranded by sanctions – have not taken off since late July.

Three out of seven Airbus A350s operated by Aeroflot, including one now being used for parts, did not take off for around three months, the Flightradar24 data shows.

Russian carriers flying fewer routes due to Western sanctions means there are unused jets grounded that can be stripped, a second industry source said.

“Western manufacturers understand that almost all Superjets are being operated in Russia,” said Oleg Panteleev, head of the Aviaport aviation think-tank. “You can simply stop producing and shipping spare parts – and it will hurt.”

DISMANTLING

The Russian aviation industry’s development plan up to 2030 estimated that Russia could face the biggest challenges with A350 and Bombardier Q series as maintenance on them is carried out overseas.

The Russian government’s advice envisages “partial dismantling of a certain parts of the aircraft fleet”, which would keep two thirds of the foreign fleet operational by end-2025.

The main challenge will be keeping engines and sophisticated electronic equipment in working order, said Panteleev.

“It will be hard to get them repaired,” he said.

Aeroflot, once among the world’s top airlines but now reliant on state support, experienced a 22% fall in traffic in the second quarter of this year from a year ago, the company’s data showed, after sanctions prevented it from flying to most Western destinations.

Securing supplies from countries which have not imposed sanctions on Russia is unlikely to help, as companies from Asia and the Middle East fear a risk of secondary sanctions against them by Western governments, the sources said.

“Each single part has its own (unique) number and if the documents will have a Russian airline as the final buyer, then no one would agree to supply, neither China nor Dubai,” the first source said, adding that all parts have to be made known to Boeing and Airbus before they are supplied to the end-user.

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Reporting by Reuters;
Editing by Josephine Mason, Matt Scuffham and Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

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