NYT : U.S. Accuses Russia of Sending Warplanes to Libya

U.S. Accuses Russia of Sending Warplanes to Libya
The unusually sharp assertion by a senior American commander underscored the Pentagon’s concern about Moscow’s growing influence in the country’s sprawling war.

CAIRO — The U.S. military accused Russia of covertly deploying at least 14 fighter jets to Libya last week to support Russian mercenaries fighting alongside a beleaguered commander in his campaign to oust the government from Tripoli, the capital.

The deployment of the fighter jets appeared to confirm the Kremlin’s deepening role in the sprawling proxy war, where its Libyan ally, the commander Khalifa Hifter, suffered a series of major losses last week that dealt a heavy blow to his campaign.

The warplanes were repainted at a base in Syria, en route to Libya, to camouflage their Russian origin, the United States Africa Command said in a statement accompanied by 15 photos, including satellite images, that showed the planes in the air and at an air base in Libya.

“For too long, Russia has denied the full extent of its involvement in the ongoing Libyan conflict,” said Gen. Stephen Townsend, the commander of the United States Africa Command. “Well, there is no denying it now.”

The unusually blunt and public criticism by a senior American commander underscored the Pentagon’s broader concern about Moscow’s growing influence in Libya.

Until now, Russia has flexed its muscles in Libya through the Wagner Group, a Kremlin-backed private military company whose mercenaries provided a major boost to Mr. Hifter’s assault on Tripoli last fall at a moment when his own forces were faltering.

But last week, Turkey, which intervened in January to support the United Nations-backed government in Tripoli, rolled back Mr. Hifter’s advance with a succession of victories. Turkish drones pummeled Mr. Hifter’s supply lines and allowed government fighters to capture a strategic air base west of Tripoli.

Over the weekend, Libyan social media was flooded with images of Russian mercenaries said to be employed by the Wagner Group retreating from the front lines south of Tripoli. After spending a night in the town of Bani Walid, they were flown to Al Jufra air base, deep inside Hifter-controlled eastern Libya, which is also where the squadron of Russian planes landed.

Mr. Hifter, 76, a one-time C.I.A. asset who tried to overthrow Libya’s longtime dictator, Col. Muammar el-Qaddafi, in the 1980s, has been fighting for power in Libya since 2014. Based in Benghazi, in the east of the country, he is trying to oust the U.N.-backed government in Tripoli, in the west, with the help of foreign backers including the United Arab Emirates, Egypt and Russia.
Mr. Hifter’s allies have operated at one remove from the fighting until now, with supplies of money, weapons and mercenaries. Analysts said the arrival of Russian air power in Libya could have profound implications.

“Not only could Russian air power change the military balance in Libya itself, but this could be the first step in a gradual escalation to what eventually becomes a permanent Russian military deployment in the country,” said Michael Kofman, director of the Russia program at the Center for Naval Analysis.

The defense committee of Russia’s legislature, the Duma, dismissed the U.S. allegations as untrue, Interfax, a Russian news agency, reported.

It quoted Andrei Krasov, the deputy head of the committee, as saying “Russia’s position is well known,” and was focused on “ending the bloodshed in Libya.” All sides in the conflict, he said, should “refrain from using weapons and sit at the negotiating table.”

Maj. Karl Wiest, an Africa Command spokesman, said that over several days in the past two weeks, Russian military pilots had flown MiG-29 and SU-24 warplanes with Russian Federation Air Force markings to Khmeimim air base in Syria.

There, the MiGs were repainted and emerged with no national markings.

The Russian pilots continued their journey to Libya, where the Pentagon said it expected the jets would be flown by Wagner Group pilots. It was unclear if the jets had carried out any military strikes in support of Wagner or Mr. Hifter.

A Western diplomat working on Libya said the deployment appeared to be a ploy by the Kremlin to force Turkey to slow its assault on Mr. Hifter. The threat of retaliation — the diplomat called it “a gun on the table” — could help ensure the safe withdrawal of Russian fighters while Mr. Hifter’s forces regroup, he said.

There was circumstantial evidence from the battlefield to support that view this past weekend. Russian mercenaries were able to retreat from the Tripoli front lines without being attacked by Turkish-supplied drones, reports said, hinting at an informal agreement between Ankara and Moscow.

The maneuvers by Russia and Turkey, and the unusual assertion by the Pentagon, reflect more than ever that the conflict in oil-rich Libya has become a proxy war driven by foreign sponsors battling for resources, access to oil or an edge in a broader geostrategic competition.

The presence of military forces from both countries opens the possibility of open clashes. Until now, Turkish and Russian leaders have appeared to view Libya as a place to divide the spoils, rather than go openly to war.

Both President Recep Tayyip Erdogan of Turkey and President Vladimir V. Putin of Russia have strategic and economic interests in Libya. Mr. Erdogan agreed to support the Tripoli government only after it signed an agreement ceding key maritime rights to Turkey in the eastern Mediterranean, a major hub of gas exploration.

For Mr. Putin, Libya offers a chance to expand his footprint in the Middle East, prompting American fears that it could be the site of a permanent military presence close to the southern flanks of Europe.

>>> TradeGate Pre-MArket Indications

DAX:
  • MTU Aero (MTX TH) +2.4%
  • Deutsche Bank (DBK TH) +1.9%
  • Bayer (BAYN TH) +1%
  • Fresenius SE (FRE TH) +1%
  • Daimler (DAI TH) +0.9%
  • Infineon (IFX TH) -0.8%
MDAX:
  • Aroundtown (AT1 TH) +5.2%
    • Aroundtown First Quarter Adjusted Ebitda EU237.2 Mln, +32% Y/y
  • Deutsche PBB (PBB TH) +3.9%
    • Deutsche PBB Non-Deal Roadshow Set By Commerzbank for May 27
  • CTS Eventim (EVD TH) +3.1%
  • Airbus (AIR TH) +2%
  • Siemens Healthineers (SHL TH) +1.6%
  • Hella (HLE TH) -0.6%
    • Hella Cut to Hold at MainFirst; PT 36 euros
  • Telefonica Deutschland (O2D TH) -0.9%
  • TAG Immobilien (TEG TH) -1.7%
    • LEG Immobilien and TAG Terminate Talks on Combination
SDAX:
  • Indus Holding (INH TH) +3.1%
  • Leoni (LEO TH) +3.1%
  • Corestate (CCAP TH) +3%
  • Encavis (CAP TH) +2.5%
    • Encavis Maintains Full Year Oper Ebitda Above EU220 Mln
  • Sixt (SIX2 TH) +2.4%
  • LPKF (LPK TH) -1.1%
    • LPKF Roadshow Scheduled By Hauck & Aufhaeuser for May 27
  • Borussia Dortmund (BVB TH) -2.6%

FT : Von der Leyen seeks to rally Europe behind “next generation” recovery plan

Von der Leyen seeks to rally Europe behind “next generation” recovery plan
The European Commission president will make her pitch for a huge increase in spending power

Brussels will boldly go on Wednesday where no European Commission has gone before, with plans for an unprecedented borrowing spree aimed at funding the post-corona recovery. 

The plans will be unveiled before the European Parliament this afternoon by commission president Ursula von der Leyen, who will advocate an EU-level effort to pump money into regions that have suffered the most from the health and economic emergency, tying the fund and the next EU budget together in a recovery package.

The package has been branded “Next Generation EU” by the commission, whose president appears to have a soft spot for sci-fi terminology, having previously dubbed the EU budget the “mother ship” of Europe’s economic rebound. 

Ms von der Leyen has been clear that the EU’s long-term survival depends on how it responds to the crisis. The same fears stalk the corridors of power in Paris and Berlin. Italy, Spain and other countries on the frontline are watching closely for what Europe delivers in their moment of need. 

But the package will have to be a political balancing act that also keeps on board “frugal” northerns wary of ramped-up EU spending, as well as central and eastern European countries that do not want to see large amounts of funds redirected at their expense. 

Ms von der Leyen will get to her feet in the European Parliament at around 1.30pm Brussels time. According to people familiar with the plans, she will propose a recovery fund that more than matches Franco-German proposals from earlier this month for €500bn of EU borrowing on capital markets to finance grants. On top of this will be further borrowing to finance loans to member states — with discussions around €200bn. 

As reported by the FT, the commission hopes it can convince member states to rally behind new taxes to raise revenue for the EU budget, helping it pay off its debts over the years to come.

One bright spot for Ms von der Leyen is that over the past couple of days both Denmark and Sweden have said that they are prepared to negotiate when it comes to the recovery fund — signalling a potential softening among the EU’s budget hawks. The two countries, along with the Netherlands and Austria, form the “frugal four” of EU budget hardliners. The group cosigned a paper over the weekend calling for the recovery fund to be limited to providing loans. 

Sweden’s finance minister Magdalena Andersson told the FT on Tuesday that the “discussion has only just started”.

“It wasn’t like the French-German proposal was embraced by everyone in the European Union, and neither was our proposal embraced by everyone,” she said. “I think that’s a very common start of discussion in the European Union. And then at the end of the day, you would agree on something.”

But the recovery fund is only part of what is at stake. There is also the matter of the EU’s next seven-year, €1tn budget, which must be agreed for the recovery fund to become operational. EU leaders already spent a frustrating two days in February holed up in Brussels trying and failing to get a budget deal, not least because of the complications of filling the financial hole left behind by Brexit.

Speaking to reporters on Tuesday, Amélie de Montchalin, France’s Europe minister, said Paris was wary that the frugals could seek to rein in the EU budget as a quid pro quo for yielding on the recovery fund. The four countries have baulked at everything from the proposed abolition of their national budget rebates to attempts to grow the EU’s spending pot as a percentage of gross national income.

“We will not rob Peter to pay Paul,” Ms de Montchalin said, stressing that both parts of the package are vital. “What I don’t want is an arbitrage between the two tools: the recovery fund and the budget.”

“The real risk is that Europe fragments if we do not invest in our future,” she said. “The crisis has shown that previous arguments in favour of budget cuts do not hold . . . heavy cuts can no longer be defended.”

Star Trek’s signature board game is three-dimensional chess. It’s good training for negotiating about money in Brussels.

>>> What to look at today - 27th of May 2020

Asian stocks were mostly higher after a mixed start Wednesday, as investors weigh hopes for economic recovery against deepening U.S.-China strains. The yuan retreated.
Japanese shares led gains, with news on plans for a second fiscal-stimulus package giving fresh encouragement for bulls. Futures on the S&P 500 gained, after the index closed at an 11-week high. Jamie Dimon, head of America’s biggest bank, counted himself among the optimists Tuesday, saying there could be a “fairly rapid recovery.” China’s onshore and offshore yuan slipped to the lowest in about eight months in wake of the latest Sino-American flare-up.
US After Hours TSCO +7.7% jumps on strong guidance; UEPS -13.8%, VSAT -7.8% down in earnings; DPZ +0.5% ticks higher as comps start to accelerate in Q2

Nikkei +0.85% Hang Seng -0.39% CSI -0.29% Shanghai -0.05% Shenzen -0.24%

Eur$ 1.0955 CNH 7.1750 CNY 7.1588 JPY 107.53 GBP 1.2314 CHF 0.9670 RUB 70.8899 WTI$34.24 -0.23%

S&P +0.58% Nasdaq +0.64% EuroStoxx +0.30% Dax +0.40% FTSE +0.54% SMI -0.25%


Macro :
- U.S. Mulls Sanctions on Chinese Officials, Firms Over Hong Kong
- Protesters Shout Pro-Independence Slogans: Hong Kong Update
- ECB Can Boost Stimulus If Outlook Warrants, Schnabel Says (1)

Keep an eye on :
- ADP FP : ADP Asks Early End of 2016-2020 Economic Regulation Agreement
- AF FP : Air France-KLM Seeks to Cut Staff, French Capacity in Revamp
- ARGX BB : Argenx to Offer $500m Shares Said to Trade On May 28
- AT1 GY : Aroundtown First Quarter Adjusted Ebitda EU237.2 Mln, +32% Y/y
- ATL IM : UniCredit Gave Approval to EU1.25b Loan to Autostrade: Radiocor
- AAG GY : Aumann Maintains Full Year Revenue EU180 Mln to EU200 Mln
- BARN SW : Barry Callebaut to Buy GKC Foods in Australia; No Terms
- BONEX SS : BoneSupport to Offer Up to 10m Shrs
- CAI AV : CA Immo First Quarter Net Income EU33.5 Mln vs. EU5.4 Mln Y/Y
- CO FP : Casino to Open 300 Neighborhood Supermarkets, CEO Tells Figaro
- CBK GY : Commerzbank to Launch up to EU3 Billion AT1 Issuance Program
- DNO NO : DNO Sees 2020 Company Working Production 88,000 Boepd
- DOF NO : DOF First Quarter Ebitda NOK804 Mln, +62% Y/y
- EDF FP : EDF Moves Closer to Second New Nuclear Project in Britain
- ELIOR FP : Elior Estimates Lost Rev. to Have 30% Hit on FY Adj. Ebita
- CAP GY : Encavis Maintains Full Year Oper Ebitda Above EU220 Mln
- IFX GY : *INFINEON ANNOUNCES CAPITAL INCREASE OF ABOUT EU1B THROUGH ABB
- IPS FP : Ipsos Says Orders Down Slightly Above 10% First 5 Months of 2020
- FCA IM : *INTESA BOARD SAID TO BACK EU6.3B STATE-BACKED LOAN TO FIAT
- FII FP : Lisi Automotive to Sell German Unit Mohr + Friedrich GmbH
- LEG GY : LEG Immobilien and TAG Terminate Talks on Combination
- LPK GY : Bantleon Subsidiary Mulls Options to Sell 18% Stake in LPKF
- DRLCO DC : Maersk Drilling Keeps Forecasts for Ebitda Pre-items
- NEXI IM : Nexi Holders Mercury UK Holdco to Offer 55m Shrs, Priced 55m Shares at EU14.20/Share
- NOKIA FH : Nokia Shuts Plant in India as Employees Test Virus Positive: ET
- UG FP : PSA to Produce Asia-Sourced EV Components in France by 2022
- PEXIP NO : Pexip First Quarter Revenue NOK150.1 Mln
- POS AV : PORR First Quarter Loss Before Income Taxes EU25.5 Mln
- PRY IM : Prysmian Wins EU270m Contract for Submarine Interconnection
- RNO FP : Renault to Announce Plan to Cut 5,000 Jobs by 2024: Le Figaro
- ROG SW : Roche: Phase III Archway Study Result Positive
- RYA ID : Ryanair Maps Growth Plan With 737 Max Jets While Rivals Shrink
- SGO FP : Saint-Gobain Completes Sale of Sika Shares for CHF2.56b
- SAN FP : *SANOFI TO SELL REGENERON STOCK AT $515.00 PER SHARE
- SDR LN : Schroders Favors Credit in Shift Away From Government Bonds
- SESG FP : Intelsat Joins SES in Committing to C-Band Auction of Airwaves
- SIKA SW : Saint-Gobain Completes Sale of Sika Shares for CHF2.56b (15.2mil Sh. @ CHF168.42 ~ 10.75% of Sika)
- SRAIL SW : Stadler Rail Holder to Sell 5 Million Shares: Terms Stadler Rail Share Sale Demand Exceeds Supply: Terms
- TKTT FP : Tarkett Obtains Additional €245M of Credit Lines from 7 Banks
- TCH FP : Technicolor in Talks on New Financing, Plans Debt-to-Equity Swap
- UBI IM : UBI Starts Action to Declare Intesa Takeover Bid No Longer Valid
- VOW GY : VW in Final Talks to Buy 50% of Anhui Jianghuai for $491m: Rtrs
- WDP BB : WDP Investors Opt for About 55% of Shares for Optional Dividend
- YPSN SW : Ypsomed Full Year Ebit CHF9.3 Mln, -87% Y/y, Est. CHF9.01 Mln

>>> Europe : Brokers Upgrades & Downgrades - 27th of May 2020

>>> Up
* Aena Raised to Buy at Goldman; PT 147 euros
* BNP Paribas Raised to Overweight at Morgan Stanley; PT 41 euros
* CNP Assurances Raised to Buy at HSBC; PT 14.60 euros
* Deutsche Wohnen PT Raised to 60 euros at Deutsche Bank
* E.On Raised to Add at AlphaValue
* Eurofins Scientific Raised to Buy at Jefferies; PT 700 euros
* KWS Saat Raised to Buy at Pareto Securities; PT 69 euros
* Ricardo Raised to Buy at HSBC; PT 430 pence
* Rockwool Raised to Overweight at Barclays; PT 2,000 kroner
* Shop Apotheke PT Raised to 140 euros at Deutsche Bank
* Unite Group Raised to Overweight at JPMorgan; PT 900 pence

>>> Down
* Bertrandt Cut to Hold at Bankhaus Metzler; PT 37 euros
* Electrolux Cut to Hold at DNB Markets; PT 160 kronor
* Fraport Cut to Sell at Goldman; PT 33 euros
* Hella Cut to Hold at MainFirst; PT 36 euros
* ISS Cut to Underperform at Jefferies; PT 80 kroner
* Kingspan Cut to Underweight at Barclays; PT 42 euros
* Pearson Cut to Sell at Berenberg; PT 400 pence

>>> Initiation
* Nordex Reinstated Buy at Jefferies; PT 12 euros
* SMA Solar Reinstated Hold at Jefferies; PT 29 euros

>>> Call
* Adidas, Brenntag, Kion, SKF Added to Berenberg’s Large-Cap Picks
* Burberry PT, EPS Estimates Cut at Citi on Tougher Mid-Term View
* Eurofins Gets Street-High PT at Jefferies on Re-Rating Potential
* European Insurance Stocks’ Underperformance is Unwarranted: RBC
* French, Benelux Bank Outlook Uncertain, BNP Paribas Raised: MS
* Pearson Cut at Berenberg on ‘Severe’ Enrollment Disruption

(ZH) Coronavirus Uses Same Strategy As HIV To Evade, Cripple Immune System: Chin

Coronavirus Uses Same Strategy As HIV To Evade, Cripple Immune System: Chinese Study Finds

Back on February 1, when the coronavirus pandemic was only just starting to attract broader attention and the China-influenced mainstream media was still politically inclined to minimize the severity of the disease before pulling a sharp U-turn and now going full bore with a narrative of just how dangerous it is for the Trump administration to reopen the economy (because if the economy recovers by November, Trump just might get re-elected), we published an article referencing an Arxiv pre-print which found that the covid-19 genome contained "HIV Insertions", stoking fears that the virus was an artificially created bioweapon. While the mere suggestion that this virus was man-made - nevermind sharing discrete segments of its genetic structure with HIV - sparked outrage among the well-paid mercenary enforcers of the First Amendment known as "fact-checkers" who are employed by such biased organizations as Twitter and Facebook to stifle any line of inquiry that runs contrary to whatever dominant narrative has been blessed by the Zuckerbergs and Dorseys of the world, it was none other than the man who discovered the HIV virus back in 1983, that confirmed our suspicions saying that "the virus was man-made."
As we reported in April, Professor Luc Montagnier, the 2008 Nobel Prize winner for Medicine, claimed that SARS-CoV-2 is a manipulated virus that was accidentally released from a laboratory in Wuhan, China, and added that the WUhan laboratory, known for its work on coronaviruses, tried to use one of these viruses as a vector for HIV in the search for an AIDS vaccine.
Needless to say, since this narrative was destructive to China and all those self-proclaimed experts who had vowed there is no way the Wuhan virus was i) manmade, ii) released by a Chinese lab and iii) had HIV-insertions, the story was quickly buried and never received as much as a minute of airtime in conventional media sources.
That may all change now, as a result of the third, and perhaps most startling yet twist in the bizarre saga of the coronavirus, after the South China Morning Post reported that a new study by Chinese scientists has found that the novel coronavirus uses the same strategy to evade attack from the human immune system as HIV.

Specifically, both viruses remove marker molecules on the surface of an infected cell that are used by the immune system to identify invaders, the researchers said in a non-peer reviewed paper titled "The ORF8 Protein of SARS-CoV-2 Mediates Immune Evasion through Potently Downregulating MHC-I", posted on pre-print website bioRxiv.org on Sunday (a paper which the great hordes of amateur epidemiologists will make sure is promptly taken down or else their carefully planted propaganda may be obliterated). They warned that this commonality could mean Sars-CoV-2, the clinical name for the virus, could be around for some time, like HIV.
Separately, virologist Zhang Hui and a team from Sun Yat-sen University in Guangzhou also said their discovery added weight to clinical observations that the coronavirus was showing “some characteristics of viruses causing chronic infection”.
Some more details on the Hui study: the researchers collected killer T cells from five patients who had recently recovered from Covid-19; those immune cells are generated by people after they are infected with Sars-CoV-2, and whose job is to find and destroy the virus. But the killer T cells used in the study were not effective at eliminating the virus in infected cells. When the scientists took a closer look they found that a molecule known as major histocompatibility complex, or MHC, was missing.
The molecule is an identification tag usually present in the membrane of a healthy cell, or in sick cells infected by other coronaviruses such as severe acute respiratory syndrome, or Sars. It changes with infections, alerting the immune system whether a cell is healthy or infected by a virus. However, there is one notable disease that makes MHC molecules disappears from the cell surface: HIV.
The coronavirus removes these markers by producing a protein known as ORF8, which binds with MHC molecules, then pulls them inside the infected cell and destroys them, the researchers said.
ORF8, which is also known to play an important role in viral replication, is the gene that is targeted by most commercial test kits to detect viral loads in nose or oral swabs.

Needless to say, the absence of MHC makes the creation of vaccines against covid problematic, although the study authors had a suggestion: while drugs used to treat Covid-19 patients mainly target enzymes or structural proteins needed for viral replication, Zhang and his team suggested compounds be developed “specifically targeting the impairment of MHC by ORF8, and therefore enhancing immune surveillance for Sars-CoV-2 infection”.
And here is where things gets very messy for the frauds known as "fact-checkers" who - without any actual facts or knowledge - threw up all over our February report that the coronavirus shared genetic material with HIV: while the mainstream media did everything in its power to censor any suggestions that Covid and HIV having genetic similarities (after all who wants to be threatened by an airborne version of AIDS) now it is none other than the South China Morning Post which writes that "earlier studies found the spike protein of the new coronavirus had a structure that allowed it to enter many types of human cells and bind with them. The same structure was also found in HIV, but not in other coronaviruses found in animals such as bats and pangolins."
Oops, the SCMP will have a a lot of explaining for reporting on, you know, the facts.
But wait there's more. Another study by researchers in New York and Shanghai also found that the Sars-CoV-2, sometimes called the "Wu Flu" could kill T cells, or as the SCMP puts it "the discovery came after autopsies in China found immune system destruction similar to that caused by AIDS."
At this point, the SCMP has pointed out all the exact same facts - that the coronavirus not only shares genetic material with HIV, but also evades and cripples the immune system in a similar way to HIV - that got the "highly respected" StatNews to accuse Zero Hedge of spreading an "infodemic." We wonder if StatNews author John Gregory will append his "analysis" now that actual "facts" have emerged showing that it's not the infodemic we should be afraid of, but the censordemic.
* * *
Of course, if covid and HIV share a similar approach to hiding from, and crippling the host immune system, kiss any hope for a vaccine - or cure - goodbye. Four decades after HIV – a virus that attacks the immune system – emerged, it has killed about 32 million people globally and there is still no vaccine or drug that can completely cure the disease.
Which begs the question: who were the real conspiracy theorists - those who reported the facts, or all those countless "mainstream" publications who sought to stifle the facts, by accusing us - and many others - of peddling conspiracy theories. For the answer, we go back to what HIV-discovered Montagnier said in April: “Conspirators are the opposite camp, hiding the truth,” he said without wanting to accuse anyone, but hoping that the Chinese will admit to what he believes happened in their laboratory. "In any case, the truth always comes out, it is up to the Chinese government to take responsibility."
And while we admire Montagnier's optimism,we are not holding our breath until the truth finally does come out. Until then, the SCMP may want to watch the bank of its social media accounts - can't have the peasants realizing they were lied to all along. Twitter, for example, has developed a nasty habit of immediately banning anyone who dares to tell the truth about anything.
The full paper is below (link). Read it before it mysteriously disappears.