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British intelligence provided the tip-off that led to the arrest of a retired Austrian army officer on suspicion of spying for Russia, an Austrian newspaper has claimed.

The tip-off was politically motivated and came amid British displeasure at the Austrian government’s refusal to distance itself from Russia in the wake of the Skripal poisoning, Kleine Zeitung newspaper alleged. 

British and Austrian authorities declined to confirm or comment on the claims. Sebastian Kurz, the Austrian chancellor, said last week the case had been brought to authorities’ attention by a tip-off from a “friendly intelligence service”.

The suspect, an unnamed 70-year-old retired colonel in the Austrian army, is being held on charges of spying for Russia over a 20-year period. He is alleged to have passed details of Austrian weapons systems and other secrets to Russia in exchange for payments of €300,000 (£260,000).

The case has severely shaken normally warm relations between Austria and Russia. Mr Kurz, who previously spoke of wanting his country to be a “bridge” between Russia and the West, has demanded an explanation from Moscow.

Initial reports last week suggested the tip-off came from Germany. But Kleine Zeitung quoted an unnamed “senior officer” in the Austrian army as saying it had come from Britain.

The officer believes British intelligence acted deliberately in order to distance Austria from Russia, the newspaper claimed.

Austria was one of few Western countries not to expel any Russian diplomats in the wake of the Skripal poisoning affair in Salisbury, and senior figures in the Austrian government have close links to Russia.

Vladimir Putin was a guest at the wedding of Karin Kneissl, the Austrian foreign minister, in August, and danced with her in front of the cameras. Ms Kneissl has cancelled a planned trip to Russia in the wake of the spying arrest.

Britain has not commented on the claims, but government sources said last week: “It is interesting that this a spying operation against a country that has a mixed reputation when it comes to its relationship with Russia. 

“This is another Russian intelligence operation against a European nation. An operation that was exposed, once again, as a result of European cooperation. Russian behaviour continues to be egregious and widespread. The threat is a reality.”

Austrian opposition parties have accused the far-Right Freedom Party (FPÖ), which is junior partner in the country’s coalition government, of being too close to Russia.

“One of the biggest security risks is the links between with the Russian leadership and the FPÖ,” Peter Pilz, leader of the opposition Pilz List party said last week.

While Ms Kneissl, who danced with Mr Putin at her wedding, is officially independent, she was nominated as foreign minister by the Freedom Party. The party also controls the Austrian interior and defence ministries.

Russia has reacted angrily to the allegations and accused Austria of “megaphone diplomacy”.

"We are accused and asked to apologise for something we know nothing about,” Sergei Lavrov, the Russian foreign minister said last week.

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Russian prosecutors on Monday accused Bill Browder, a prominent critic of Vladimir Putin, of ordering the murder of lawyer Sergei Magnitsky and several other business associates – the latest in a string of efforts to discredit one of the most vocal advocates of sanctions against the regime.

Magnitsky, a lawyer working for Mr Browder, was arrested in 2008 after uncovering evidence of large-scale tax fraud among Russian officials. He died a year later in a Moscow prison, after he was reportedly assaulted and denied proper medical treatment. Mr Browder, once an early supporter of Mr Putin, has since lobbied tirelessly for sanctions against the Russian president and his entourage.

Mr Browder, the British head of investment fund Hermitage Capital Management, branded the accusations "Kafka-esque". Writing on social media, he cast them as a vendetta waged by Mr Putin for his lobbying, which in 2012 led to US sanctions on Russia in what is widely known as the Magnitsky Act.

"I really struck a nerve with the Magnitsky Act," Mr Browder said. 

The accusations come as Interpol, an international body for coordinating national police efforts, meets this week to elect a new president. A report published by The Sunday Times said a Russian Interior Ministry official is expected to win, sparking concern that Moscow may use the organisation to target critics and dissidents residing beyond Russian police jurisdiction.

“Russia has made seven abusive attempts to have me arrested since 2013 on politically motivated charges,” Mr Browder told Newsweek. “If Russia is allowed to take over Interpol it is like the mafia taking over global law enforcement.”

In May, Mr Browder was briefly arrested in Madrid by Spanish police acting on an Interpol Red Notice issued by Russia, but was released amid an international outcry. The Council of Europe has previously accused Moscow of abusing the Interpol system to pursue "political goals", referencing its pursuit of the British financier.

Prosecutors also said at a press conference in Moscow on Monday that Mr Browder is being formally charged with operating a vast international money laundering empire, calling again for his arrest. These charges were used to argue that Magnitsky was a member of this organisation, giving Mr Browder motive to order his death, the Interfax news agency reported.

In an odd parallel to the recent case surrounding the poisoning of former Russian spy Sergei Skripal, prosecutors said there was evidence Magnitsky and three other deceased former Browder associates showed evidence of poisoning by a “toxic inorganic aluminum compound,” Interfax reported.  Only the US, France and Italy have studied such compounds they said, not Russia.

China has flaunted its advanced stealth fighter jets with full missile loads for the first time as Beijing flexed its military might at its biennial air show.

Two Chinese J-20s – China’s answer to the US F-22s and F-35s – roared over the crowds in Zhuhai, a southern Chinese city, with its bomb bay doors open to show off four long-range air-to-air missiles inside, and two short-range combat missiles under the wings.

But despite state media describing the flyover as a “stunning aerial display”, the move masked the crucial fact that China’s fighter jets are still using Russian-made engines, even after reportedly spending $4.4 billion developing the J-20.

“China made a point at this air show about…

Donald Trump has threatened to strip more reporters of their White House passes and said Ronald Reagan would have handled CNN’s Jim Acosta in the same way as he doubled down over the row. 

The US president denied that a video showing the heated exchange with Mr Acosta circulated by the White House press secretary had been distorted, saying it had simply been zoomed in. 

And he continued to personally criticise journalists, questioning Mr Acosta’s intellect and calling CNN contributor April Ryan a “loser” and a “very nasty person”. 

The comments, made to reporters outside the White House before Mr Trump flew to Paris for World War One commemorations, further escalate this week’s clash with members of the press. 

On Wednesday, Mr Trump lashed out at Mr Acosta after being repeatedly challenged and interrupted on immigration, calling him a “very rude person” and asking him to put down the microphone. Later that day his White House credentials were revoked. 

On Thursday. Sarah Sanders, the White House press secretary, circulated a video of the exchange which zoomed in and looped a point where Mr Acosta’s arm comes into contact with that of a White House intern who reached to take away his microphone.

 

A video verification expert told The Telegraph that the footage had been manipulated.

On Friday, Mr Trump made no attempt to deflate the row when asked how long Mr Acosta would be left “in the penalty box”. 

Mr Trump said: “I think Jim Acosta is a very unprofessional man. He does this with everybody. He gets paid to do that, you know, he gets paid to burst in. He’s a very unprofessional guy. 

“Whether it was me or Ronald Reagan or anybody else he would have done the same thing. Look, I don’t think he’s a smart person but he’s got a loud voice.”

Asked if the removal of Mr Acosta’s press credentials was permanent, the president said: “As far as I’m concerned I haven’t made that decision, but it could be others also. 

“When you’re in the White House, this is a very sacred place to be, this is a very special place. You have to treat the White House with respect, you have to treat the presidency with respect.”

Mr Trump then went on to criticise Ms Ryan, an African-American journalist who works for American Urban Radio Networks and also regularly appears on CNN, a broadcaster Mr Trump dislikes. She also clashed with Mr Trump in Wednesday’s press conference. 

Mr Trump said: “I mean you talk about somebody that’s a loser, she doesn’t know what the hell she’s doing. She gets publicity and then she gets a pay raise or she gets a contract with I think CNN. 

“But she’s very nasty and she shouldn’t be, she shouldn’t be. You’ve got to treat the White House and the office of the presidency with respect.”

The president also dismissed the suggestion that the footage Ms Sanders had shared on Twitter of his exchange with Mr Acosta during the post-midterms press conference was doctored. 

“No one manipulated, gimme a break,” Mr Trump said. He added: “When you say doctored you’re a dishonest guy. They gave a close up view, that’s not doctoring.” 

The White House Correspondents’ Association [WHCA] has strongly criticised the removal of Mr Acosta’s credentials, as have many leading US journalists and politicians. 

Olivier Knox, the WCHA president, said earlier this week: "Journalists may use a range of approaches to carry out their jobs and the WHCA does not police the tone or frequency of the questions its members ask of powerful senior government officials, including the President.”

Donald Trump has provided the special counsel’s office with written answers to questions about his knowledge of Russian interference in the 2016 election, his lawyers said on Tuesday.

The step – the first time the US president has directly cooperated with the investigation – is a milestone in a months-long negotiation between Mr Trump’s lawyers and special counsel Robert Mueller’s team over whether and when the president would sit for an interview.

It represents the first time the president is known to have described to investigators his knowledge of key moments under scrutiny by prosecutors. If Mr Mueller finds the answers satisfactory, the responses may also help stave off a potential subpoena fight over Mr Trump’s testimony.

The compromise outcome, nearly a year in the making, offers some benefit to both sides. Mr Trump avoids, at least for now, a potentially risky and unpredictable sit-down with prosecutors, while Mr Mueller secures a set of on-the-record statements whose accuracy the president and his lawyers will be expected to stand by for the duration of the investigation.

"The president today answered written questions submitted by the special counsel’s office," attorney Jay Sekulow said in a statement. "The questions presented dealt with issues regarding the Russia-related topics of the inquiry. The president responded in writing."

Mr Sekulow said in a follow-up message that the legal team would not release copies of the questions and answers or discuss correspondence with the special counsel’s office.

Mr Mueller’s team may well press for additional information.

Investigators months ago presented Mr Trump’s legal team with dozens of questions they wanted to ask the president related to whether his campaign coordinated with the Kremlin to tip the 2016 election and whether he sought to criminally obstruct the Russia probe by actions including the firing of former FBI director James Comey.

Mr Mueller’s office agreed to accept written responses to questions about potential Russian collusion and tabled, for the moment, obstruction-related inquiries. They left open the possibility that they would follow up with additional questions on obstruction, though Mr Trump’s lawyers – who had long resisted any face-to-face interview – had been especially adamant that the Constitution shielded him from having to answer any questions about actions he took as president.

Another of Mr Trump’s lawyers, Rudy Giuliani, said on Tuesday the lawyers continue to believe that "much of what has been asked raised serious constitutional issues and was beyond the scope of a legitimate inquiry." He said Mr Mueller’s office had received "unprecedented cooperation from the White House."

"It is time to bring this inquiry to a conclusion," Mr Giuliani said.

Profile | Robert Mueller

The precise questions and answers that Mr Trump gave to Mr Mueller weren’t immediately clear, though the president told reporters last week that he had prepared the responses himself.

Mr Trump told Fox News in an interview that aired on Sunday that he was unlikely to answer questions about obstruction, saying: "I think we’ve wasted enough time on this witch hunt and the answer is probably, we’re finished."

Mr Trump joins a list of recent presidents to be questioned as part of a criminal investigation.

In 2004, George W. Bush was interviewed by special counsel Patrick Fitzgerald’s office during an investigation into the leaked identity of a CIA officer. In 1998, President Bill Clinton testified before a federal grand jury in independent counsel Ken Starr’s Whitewater investigation.

"It’s very extraordinary if this were a regular case, but it’s not every day that you have an investigation that touches upon the White House," said Solomon Wisenberg, a Washington lawyer who was part of Starr’s team and conducted the grand jury questioning of Mr Clinton.

At a glance | Who has been charged by the Russia investigation

Mr Mueller could theoretically still look to subpoena the president if he feels the answers are not satisfactory. But Justice Department leaders, including acting Attorney General Matthew Whitaker – who now oversees the investigation and has spoken pejoratively of it in the past – would have to sign off on such a move, and it’s far from clear that they would. It’s also not clear that Mr Mueller’s team would prevail if a subpoena fight reaches the Supreme Court.

"Mueller certainly could have forced the issue and issued a subpoena, but I think he wants to present a record of having bent over backwards to be fair," Mr Wisenberg said.

The Supreme Court has never ruled on whether a president can be subpoenaed to testify in a criminal case. Mr Clinton was subpoenaed to appear before the Whitewater grand jury, though investigators withdrew the subpoena once he agreed to appear voluntarily.

Other cases involving Presidents Richard Nixon and Mr Clinton have presented similar issues for the justices that could be instructive now.

In 1974, for instance, the court ruled that Nixon could be ordered to turn over subpoenaed audio recordings, a decision that hastened his resignation from office. The court in 1998 said Mr Clinton could be questioned under oath in a sexual harassment lawsuit brought by Paula Jones.

OTTAWA — The Canadian economy contracted 0.1 per cent in January, hurt by unscheduled maintenance shutdowns in the oilpatch and weakness in the real estate sector following mortgage rule changes, Statistics Canada said Thursday.

The agency said the drop in real gross domestic product for January compared with growth of 0.2 per cent in December.

Economists had expected an increase of 0.1 per cent for the first month of the year, according to Thomson Reuters.

“This year started off with more of a whimper than a bang, at least from a growth perspective,” TD Bank senior economist Brian DePratto wrote in a report.

“As usual though, the trend is more important than the noise. Clearly the pace of economic activity has moderated from last year’s red-hot first half performance, but this is to be expected in an economy with little slack remaining.’

Watch: What could happen if Donald Trump pulls out of NAFTA

Goods-producing industries fell 0.4 per cent in January, while services-producing industries was essentially unchanged for the month.

Overall, the mining, quarrying, and oil and gas extraction sector posted its biggest drop since May 2016 as it fell 2.7 per cent in January.

Non-conventional oil extraction fell 7.1 per cent due to unscheduled maintenance shutdowns, while conventional oil and gas extraction fell 0.5 per cent on lower crude petroleum and natural gas extraction.

Mining excluding oil and gas extraction fell 0.8 per cent in January.

Meanwhile, real estate and rental and leasing fell 0.5 per cent after six consecutive months of growth.

The output of offices of real estate agents and brokers posted its largest monthly decline since November 2008 as it fell 12.8 per cent in January in the wake of the implementation of new mortgage rules, including stress-testing for uninsured mortgages.

Statistics Canada said lower activity in real estate contributed to a 0.1 per cent drop in the professional, scientific and technical services sector as legal, accounting and related services contracted 1.9 per cent.

CCP, the developer of Eve Online, is making a new action MMO.

The company’s London-based team is behind the unannounced action MMO (the main developer of Eve Online is based in Reykjavik in Iceland).

CCP mentioned the game as part of an announcement it is using Unreal Engine 4 for all of its currently unannounced projects. But that’s all we know for now – we don’t know which platforms this action MMO is for or when it’s due out.

It’s a busy time for CCP. Not only does it have ongoing development of Eve Online to contend with, it’s building an Eve Online-inspired multiplayer shooter called Project Nova, a mobile game called Eve: War of Ascension and now this unannounced action MMO.

OTTAWA — The federal government is putting billions of dollars behind its bid for reconciliation with Indigenous Peoples in Canada as a whole, but also addressing the distinct and individual needs of First Nations, Inuit and Metis.

Tuesday’s budget earmarks $4.7 billion over the next five years, the bulk of it aimed at supporting Indigenous children and families, investments in housing and health and propelling First Nations toward self-government.

Improving Canada’s relationship with Indigenous Peoples is the most pressing factor to ensure the country’s future is better than its past, Finance Minister Bill Morneau said, emphasizing the need to speed up self-determination based on the recognition of Indigenous rights.

“When it comes to renewing the relationship between Canada and Indigenous Peoples, we have a responsibility to do better, and to do more,” Morneau told the House of Commons in his budget speech, his third since the Liberals formed government in 2015.

“Our shared future is one where Indigenous Peoples are in control of their own destiny, making their own decisions about their future.”

The budget commits about $1.4 billion over the next six years to support Indigenous children in foster care and to promote family reunification.

The money follows an emergency summit on the issue held earlier this year between the Liberals and Indigenous leaders.

Indigenous children under the age of 14 comprise less than eight per cent of all children in Canada, but they make up more than half of all children in foster care.

Assembly of First Nations National Chief Perry Bellegarde applauded the hundreds of millions of dollars set aside for child welfare, housing, health services and skills development. “I think it’s continued growth and movement in the right direction when it comes to First Nations people.”

The federal government has finally agreed to honour its commitments to invest in child and family services on reserves, the Canadian Centre for Policy Alternatives said in a statement.

“There is a substantial new commitment to Indigenous health care funding, particularly in remote communities,” it said. “What is noticeably missing is more detail and funding for on-reserve housing.”

A separation in the types and levels of support for First Nations, Inuit and Metis reflects the Liberal government’s shift two years ago to engage with each community and respond to their specific wish lists.

Inuit communities will see $27.5 million over five years toward eliminating tuberculosis in the North, $82 million over 10 years to roll out a health survey and $400 million over 10 years for housing. Metis will get $10 million to collect and process health data, as well as $500 million over 10 years to develop a housing strategy.

The Liberals have also committed to spend more than $100 million over five years to help Indigenous groups engage with plans to develop a new legal framework for reconciliation based on recognizing rights and reconstituting nations.

A fund set up by Gord Downie, the former Tragically Hip frontman and outspoken advocate on First Nations issues, will receive a one-time investment of $5 million to promote reconciliation and educate Canadians about the legacy of the residential school system.

Parks Canada will also see $23.9 million over five years to integrate more Indigenous content into its material, which the government says follows through on one of the 94 calls to action that came out of the Truth and Reconciliation Commission.

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Up to 145 pilot whales have died in a mass stranding on a remote part of a small New Zealand island, authorities said on Monday.

The stranding was discovered by a hiker late on Saturday on Stewart Island, 19 miles off the southern coast of the South Island.

Half of the whales were already dead and due to the condition of the remaining whales and the remote, difficult to access location, the decision was made to euthanise the remainder.

"Sadly, the likelihood of being able to successfully re-float the remaining whales was extremely low," said Ren Leppens, the Department of Conservation’s operations manager on Stewart Island.

"The remote location, lack of nearby personnel and the whales’ deteriorating condition meant the most humane thing to do was to euthanise.

"However, it’s always a heart-breaking decision to make."

It was one of four strandings discovered on New Zealand shores over the weekend.

Whale strandings are relatively common on New Zealand shores, with the conservation department responding to an average 85 incidents a year, mostly of single animals.

On Sunday, 10 pygmy killer whales stranded at 90 Mile Beach at the top of the North Island. Two have since died and attempts will be made Tuesday to re-float the survivors.

A sperm whale which beached on nearby Doubtless Bay died overnight on Saturday, while the body of a dead female pygmy sperm whale was found at Ohiwa on the west coast of the North Island.

Exactly why whales and dolphins strand is not fully known but factors can include sickness, navigational error, geographical features, a rapidly falling tide, being chased by a predator, or extreme weather.

TORONTO — When University of Toronto engineering professor Parham Aarabi first began researching face tracking technology, it never occurred to him that his resulting startup would later be snapped up by the world’s biggest cosmetics company, L’Oreal.

In fact, Aarabi thought the initial application of what is now ModiFace’s lip and eye tracking capabilities would be speech recognition in noisy environments, he said.

“What happened was I realized, and we initially realized, that this technology had a lot of use for cosmetic simulations,” said Aarabi, ModiFace’s chief executive, in an interview. “For example, showcasing lipstick products, because we had the exact boundary of the lips.”

On Friday, 11 years after Aarabi founded the Toronto-based startup, L’Oreal announced it was acquiring ModiFace as part of its digital acceleration strategy.

The Paris-based beauty behemoth, whose 34 brands include Maybelline and Lancome as well as its namesake beauty products line, did not disclose financial terms of the acquisition.

ModiFace’s technology is already being used by 100 brands and allows customers to try on beauty products such as lipstick or eyeshadow or do skin diagnoses via mobile app, online or in-store augmented reality mirrors. For example, customers can try on different hair colour shades by taking a photo or using their smartphone or webcam’s video capabilities before making a purchase online or at the counter.

ModiFace uses artificial intelligence to help track the user’s face and detect where the eyes and lips are, he said. AI is also used to track data, including colour selections and how that pertains to face and eye shape, said Aarabi.

‘New page’ of the beauty industry

The Toronto-based firm will be part of L’Oreal’s Digital Services Factory, a dedicated network to design and develop new digital services for the group’s brands, L’Oreal said.

“With its world-class team, technologies and sustained track record in terms of beauty tech innovations, ModiFace will support the reinvention of the beauty experience around innovative services to help our customers discover, try and chose products and brands,” said Lubomira Rochet, L’Oreal’s chief digital officer in a statement. “We at L’Oreal and ModiFace want to pioneer this new page of the beauty industry.”

ModiFace now employs nearly 70 engineers, researchers and scientists, who have submitted more than 200 scientific publications and registered over thirty patents.

In addition to beauty brands, ModiFace is also being used by the likes of Samsung, which has equipped its newest Galaxy S9 smartphones with its augmented reality technology. Aarabi said ModiFace also has a partnership with virtual bulletin board platform Pinterest, but would not disclose more details as it is not public yet.

Even after its 100 per cent acquisition, ModiFace will remain based in Toronto to stay close to the University of Toronto where Aarabi continues to be a professor and where the firm has established research partnerships.

Last April, ModiFace invested $4 million to fund student internships and research at the university’s engineering department.

“ModiFace became what it is because of the excellent engineering talent in Toronto… It’s a great place to have a tech company. We’re very much not only interested in staying here, but also growing here as well,” said Aarabi.

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