Huawei 5G row: Government 'cannot exclude' criminal investigation

WT Special Report(wp/bbc):::

The government "cannot exclude" a criminal investigation into leaks from a National Security Council meeting.

Culture Secretary Jeremy Wright condemned leaks to the Daily Telegraph from the meeting about using Huawei technology for the UK's 5G network.

Ex-Defence Secretary Sir Michael Fallon said the matter was "too serious" for a standard leaks inquiry and said the police must be called in.

The National Security Council is made up of senior cabinet ministers.

Chaired by the prime minister, it meets weekly to discuss government objectives concerning national security - with other ministers, officials, and senior figures from the armed forces and intelligence invited when needed.

Former National Security Adviser Lord Ricketts told the BBC it was the first time anyone had committed a major leak from the NSC since its inception in 2010.

He said he was in favour of a full inquiry, possibly involving MI5 investigators, "to make the culprit feel very uncomfortable".

And Sir Michael, who was defence secretary between 2014 and 2017, said everyone who was at the meeting should be subject to a "proper Scotland Yard investigation", saying the leak was "completely shocking" and it was an "offence to divulge secret information from the most secret of all government bodies, which is the National Security Council".

"It needs to be stopped and the only way to stop it is to investigate it thoroughly," he said.

BBC security correspondent Gordon Corera said he understood an inquiry was being carried out by the government into the leak.

Theresa May's official spokesman declined to confirm this, but said: "The prime minister is clear that the protection of information on matters of national security is of the highest importance."

Earlier Jeremy Wright told MPs: "We cannot exclude the possibility of a criminal investigation here and everyone will want to take seriously that suggestion."

He said that security officials "need to feel they can give advice to ministers, which ministers will treat seriously and keep private, and if they do not feel that they will not give us that advice and government will be worse as a result".

Former Attorney General Dominic Grieve said if a minister was responsible "they should be sacked immediately". The Conservative MP said there had been "some posturing around on a whole range of issues" and members of his party "preparing themselves for leadership bids".

But he said some ministers had behaved "outrageously badly" due to the breakdown of collective responsibility in cabinet.

The members of the National Security Council include the prime minister, home secretary, foreign secretary, and defence secretary, among others.

What was the leak about?

Ministers were deciding whether or not to allow equipment from Huawei to be used to construct the new 5G data network - a decision that could have long-term consequences for national security.

There are fears that giving the Chinese company a key role could open the UK network to espionage.

But Huawei has denied there is any risk of spying or sabotage, or that it is controlled by the Chinese government.

According to the Daily Telegraph, Huawei would be allowed to help build the "non-core" parts of the UK's 5G network, such as antennas.

There has been no formal confirmation of Huawei's role in the 5G network and No 10 said a final decision would be made at the end of spring.

The leak from Tuesday's National Security Committee meeting is both serious and unprecedented.

Lord Ricketts, a former National Security Adviser in David Cameron's government, confirmed there had never before been a "major, deliberate leak" immediately following an NSC meeting.

He is in favour of a formal investigation while others go further, calling for a criminal inquiry involving the police and MI5.

So, just why is it so serious?

Because the NSC is supposed to be the one place in Whitehall where highly sensitive secret intelligence can be openly shared with ministers.

Those present will have signed the Official Secrets Act, clearing them to handle secret intelligence.

Breaking that "circle of trust" risks undermining the work of Britain's three intelligence agencies - GCHQ, MI5 and MI6 - potentially putting agents in danger.

Historically, leak inquiries rarely find the culprit, although in this case there may be an electronic trail that would expose the leaker.

What they will do, however, says Lord Ricketts, is to put the fear of God up the culprit, thereby discouraging them from ever doing it again.

Why are people worried about Huawei?

There have been warnings in the US since at least 2012 that equipment from Huawei poses a security threat.

Last year a UK government report said it could provide "only limited assurance" that the company's infrastructure did not pose a threat to national security.

Now the US wants its allies in the "Five Eyes" intelligence grouping - the UK, Canada, Australia and New Zealand - to exclude the company.

Australia last year blocked its networks from using Huawei's 5G gear.

What is 5G?

5G is the next (fifth) generation of mobile internet connectivity, promising much faster data download and upload speeds, wider coverage and more stable connections.

Existing spectrum bands are becoming congested, leading to breakdowns - particularly when many people in one area are trying to access services at the same time.

5G is also much better at handling thousands of devices simultaneously, from phones to equipment sensors, video cameras to smart street lights.

Current 4G mobile networks can offer speeds of about 45mbps (megabits per second) on average. Experts say 5G - which is starting to be introduced in the UK this year - could achieve browsing and downloads up to 20 times faster.

UK warns against all but essential Sri Lanka travel

Diplomatic correspondent(wp/bbc):::

The UK is advising against all but essential travel to Sri Lanka after the Easter Sunday bombings in which more than 350 people died.

The Foreign Office says terrorists are very likely to try to carry out indiscriminate attacks there, including in places visited by foreigners.

David McGreavy: Mum fears seeing triple child killer

Pic-Elsie Ralph sits with her three children (l-r) Paul, Samantha and Dawn

Pic-David McGreavy was sentenced in 1973

A woman says she fears seeing the man who murdered her three children, after he was cleared for release from prison.

David McGreavy killed Elsie Urry's children, Paul Ralph, four, Dawn, two, and nine-month-old Samantha at their Worcester home in 1973.

He would be subject to exclusion zones, including where Ms Urry lives, but she said she could bump into him elsewhere.

The Parole Board said a victim was entitled to request for conditions to be added to a release licence.

McGreavy, who was dubbed the "Monster of Worcester", was 21 at the time of the murders and was the family's lodger. He impaled the children's bodies on railings.

There would be zones related to Worcester, Malvern, Droitwich and where Ms Urry lives in Hampshire.

Asked where she would want included, she told BBC Hereford and Worcester: "I go to Basingstoke... with my brother, where they live, and things like that and it doesn't... cover that does it?"

She said she could not understand why the authorities were even considering releasing McGreavy.

"There's people in prison who have done murders, not half as bad as what he's done, and yet they haven't been put up for parole, so why should he get it?"

In 2016 Mrs Urry told the BBC she had written to the Parole Board several times to oppose plans to release McGreavy over the course of a number of years.

Ms Urry now said she had a fear she could bump into him in the street, if she visited friends and family.

"In the back of my head I just feel that if I did bump into him - and because I'd kept him in for these extra years - would that create a problem?"

Asked if she had had conversations about where she hoped he would not be able to go, Ms Urry said: "Nobody asked me. Nobody gave me that choice."

A Parole Board statement regarding exclusion zones said: "The Parole Board panel considering the case will decide if the request (for a zone) is necessary and proportionate for the prisoner to be safely managed in the community.

"If the panel does not approve the request, or give an adapted version of it, they will explain that in the parole decision.

"This will be passed on to the victim by their victim liaison officer, in accordance with the Victims' Code of Practice."

A Parole Board report has said McGreavy had "changed considerably" over 45 years in jail.

Homicides in England and Wales hit highest in a decade

Crime reporter(wp/reuters):::
The number of homicides in England and Wales hit their highest level in a decade, official statistics showed on Thursday, as authorities struggle to halt a surge in fatal stabbings.

The Office for National Statistics said homicides - which includes murders and manslaughter - had been rising since March 2014, in contrast to falling numbers over the previous decade.

While still rare in Britain, the sharp rise in murders, especially from knife-crime, has put pressure on Prime Minister Theresa May, whose government has been focused on trying to leave the European Union.

The government said it had given police extra powers and billions of pounds of extra funding.

“Too many people are still falling victim to serious violence, which is why we will continue our urgent and unprecedented action to reverse this terrible trend,” junior minister Nick Hurd said.

The Labour Party said the government was “in denial” about the impact of police funding cuts.

Reductions in police staffing levels during May’s time as Home Secretary were a big issue during campaigning for the 2017 election, at which she lost her majority.

Since then, the number of homicides has increased further.

Police-recorded statistics showed a 6 percent rise in homicides to 732 in the year ending December 2018, the highest levels since the year to March 2008.

The figures for 2017 were pushed up by militant attacks in London and Manchester which killed 36 people.

Excluding casualties from those attacks, there was a 12 percent increase in homicides in 2018.

Official statistics published last month showed there were 285 fatal stabbings in England and Wales in 2018, the highest level since records began more than 70 years ago.

Police say the surge in knife crime in a country where guns are hard to obtain has been driven by several factors, including rivalries between drug gangs, cuts to youth services and provocations on social media.

Goldman, Bank of England and stock exchange targeted by climate activists in London

Banking reporter(wp/reuters):::
Environmental activists glued themselves to the London Stock Exchange, blocked roads near the Bank of England and protested outside banks such as Goldman Sachs on Thursday to try to force Britain to help avert what they cast as a climate cataclysm.

The Extinction Rebellion group has caused mass disruption across London, blocking Marble Arch, Oxford Circus and Waterloo Bridge, smashing a door at the Shell building and shocking lawmakers with a semi-nude protest in parliament.

On Thursday, they turned their attention to London’s financial district, known as the City - home to more international banks than any other and the global centre for foreign exchange trading.

In streets beside the Bank of England, around 20 activists blocked the road singing Bob Marley’s “One Love”.

Outside Goldman Sachs European headquarters, protesters blocked Fleet Street, lying on the ground. One held a placard saying “No jobs on a dead planet” and others chanted: “What do we want? Climate justice. When do we want it? Now.”

At the London Stock Exchange’s headquarters, seven protesters dressed in black suits and red ties were blocking the revolving doors of the building. They held signs reading “Tell the truth” and “You can’t eat money”.

In Canary Wharf, five protesters from the group climbed aboard a train at the Docklands Light Railway (DLR) station and unfurled a banner which read: “Business as usual = Death”. One glued herself to a train.

“Its bizarre we have to do this in order for governments to listen to the scientists,” said Diana Warner, 60, who glued her hand to the train.

“I’ve got children who are grown up so I can do this, so I’m doing it for everyone who can’t.”

The activists plan protests outside other banks including Rothschild, Nomura, Deutsche Bank, Royal Bank of Canada and Rabobank, according to a protest planning document seen by Reuters.

In the past 11 days, the group has brought iconic parts of central London to a standstill in what activists have described as the biggest act of civil disobedience in modern British history.

Sources at major banks said security staff had been fully briefed on their status as possible targets but had no plans to enhance security to deal with the disruption.

Extinction Rebellion advocates non-violent civil disobedience to force governments to reduce carbon emissions and avert what it says is a global climate crisis that will bring starvation, floods, wildfires and social collapse.

LONDON CALLING?

Police said 1,088 arrests had been made since the main protests began. The final day of protests is focusing on the international financial sector, which has made London its home.

“So we’re here today to highlight that there are people and businesses trading in ecological destruction in that building behind us,” Adam Woodhall, a 48-year-old spokesman for the group, said outside the London Stock Exchange.

“We want the people in this building and around the world that in the financial industry to understand the impact that they are having on our futures. They are trading and making money in our futures.”

The group is demanding the government declare a climate and ecological emergency, reduce greenhouse gas emissions to net zero by 2025 and create a citizen’s assembly of members of the public to lead on decisions to address climate change.

In 2017, total United Kingdom greenhouse gas emissions were 43 percent lower than in 1990 and 2.6 percent lower than 2016, according to government statistics.

The group said they would end their protests in London on Thursday and would end their blockades at Parliament Square and Marble Arch.

However, they promised more protests in the future, saying direct action was the only way to bring the issue to public attention.

UK regulator blocks Sainsbury's £7.3 billion Asda takeover

Business reporter(wp/reuters):::
Britain’s competition regulator on Thursday blocked Sainsbury’s proposed 7.3 billion pound takeover of Walmart owned Asda - a huge blow to the supermarket groups who wanted to combine to overtake market leader Tesco.

The Competition and Markets Authority (CMA) ruling is also a major setback for Sainsbury’s Chief Executive Mike Coupe, the architect of the deal and the group’s boss since 2014.

Coupe made unwanted headlines when he was caught on camera singing: “We’re in the money” shortly after the deal was announced last April. Analysts said questions will be raised over his future after it failed to win approval.

The deal would have resulted in a substantial lessening of competition at both a national and local level, with prices rising in stores, online and at petrol stations, the CMA said.

Coupe took issue with the CMA’s analysis.

“The specific reason for wanting to merge was to lower prices for customers,” he said in a statement.

“The CMA’s conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market. The CMA is today effectively taking 1 billion pounds out of customers’ pockets.”

Sainsbury’s, Walmart and Asda said they had mutually agreed to terminate the transaction, opting not to challenge the CMA’s ruling through the courts.

As well as leapfrogging Tesco, the deal would have given Walmart a way to exit Britain, one of the weakest performers in its global portfolio.

Shares in Sainsbury’s were down 5.1 percent at 0820 GMT, extending their losses over the last three months to 23 percent.

WORSE OFF SHOPPERS

After delivering a damning provisional report in February, the CMA’s final report was equally stern, finding that UK shoppers and motorists would be worse off if Sainsbury’s and Asda combined.

“We have concluded that there is no effective way of addressing our concerns, other than to block the merger,” said Stuart McIntosh, chair of the CMA inquiry group.

Sainsbury’s share of the UK grocery market has dropped from 15.8 percent to 15.3 percent in the last year, while Asda’s has fallen from 15.6 percent to 15.3 percent, according to data from market researcher Kantar.

All of the big four grocers have lost share to German discounters Aldi and Lidl, which now have a combined 13.6 percent share. Tesco has 27.4 percent.

Sainsbury’s and Asda have argued that their share of the total market for food was smaller than the data indicated because of the emergence of new players like delivery services, but the regulator was not persuaded.

Coupe said he was confident in Sainsbury’s strategy, which focuses on own-brand products, and on the quality, provenance and ethical credentials of its food.

Judith McKenna, CEO of Walmart International, said she was disappointed by the CMA’s ruling.

“Our focus now is continuing to position Asda as a strong UK retailer delivering for customers. Walmart will ensure Asda has the resources it needs to achieve that,” she said.

IMPLICATIONS

The implications of the deal failing are likely to be significant. Some analysts believe Sainsbury’s will have to undergo a major shake-up that could see new chairman Martin Scicluna part company with Coupe.

Analysts at Jefferies believe the risk of a reinvigorated market leader Tesco continuing to recover customers historically lost to Sainsbury’s needs addressing with urgency.

Earlier this month Sainsbury’s lost its status as Britain’s No. 2 supermarket group by market share to Asda, according to Kantar data. Tesco in contrast is gaining momentum, reporting a 34 percent jump in full-year operating profit on April 10.

With one potential exit route from Britain for Walmart blocked, analysts have said the U.S. group might instead consider a stock market listing of Asda or try to sell it to private equity.

The Sunday Times reported in February that private equity group KKR was mulling an offer for Asda.

But both of these avenues are problematic.

“The problem with the idea of private equity is that the only way PE makes money is to have its own exit and there isn’t one because you can’t break-up Asda now,” one senior UK supermarket director told Reuters.

“The problem with an IPO is – what growth prospects are you selling? The story to investors is not a very good one,” he said, adding that Walmart may decide to run Asda as a profit centre and simply instruct CEO Roger Burnley to make them more money.