Donald Trump pulls US from Iran nuclear deal, Obama says ‘serious mistake’

Agencies
May 9, 2018

Washington, May 9: President Donald Trump announced Tuesday the US will pull out of the landmark nuclear accord with Iran, declaring he’s making the world safer but dealing a profound blow to allies and deepening the president’s isolation on the world stage. “The United States does not make empty threats,” he said in a televised address from the White House Diplomatic Room.

Trump said the 2015 agreement, which included Germany, France and Britain, was a “horrible one-sided deal that should never ever have been made.” He added that the United States “will be instituting the highest level of economic sanction.”

Former President Barack Obama called Trump’s decision to pull out of the Iran deal, which had been brokered by Obama’s administration, a “serious mistake” that will erode America’s global credibility. He said Tuesday that Trump’s decision to withdraw is “misguided,” especially because Iran has been complying.

Obama also warned: “The consistent flouting of agreements that our country is a party to risks eroding America’s credibility, and puts us at odds with the world’s major powers.”

The former US president said that without the deal, the US “could eventually be left with a losing choice between a nuclear-armed Iran or another war in the Middle East.” The deal remains a model for what diplomacy can accomplish, including when it comes to North Korea, he said.

Trump’s decision means Iran’s government must now decide whether to follow the US and withdraw or try to salvage what’s left of the deal. Iran has offered conflicting statements about what it may do — and the answer may depend on exactly how Trump exits the agreement.

One official briefed on the decision said Trump would move to reimpose all sanctions on Iran that had been lifted under the 2015 deal, not just the ones facing an immediate deadline.

Supporters of trying to fix the agreement had hoped Trump would choose a piecemeal approach that could leave more room for him to reverse himself and stay in if he could secure the additional restrictions on Iran that European nations have tried unsuccessfully to negotiate with Trump. Still, the administration planned to allow a grace period of at least three months and possibly up to six months so that businesses and governments can wind down operations that would violate the reimposed US sanctions, officials said.

As administration officials briefed congressional leaders about Trump’s plans Tuesday, they emphasized that just as with a major Asia trade deal and the Paris climate pact that Trump has abandoned, he remains open to renegotiating a better deal, one person briefed on the talks said.

The Iran agreement, struck in 2015 by the United States, other world powers and Iran, lifted most US and international sanctions against the country. In return, Iran agreed to restrictions on its nuclear program making it impossible to produce a bomb, along with rigorous inspections.

In a burst of last-minute diplomacy, punctuated by a visit by Britain’s top diplomat, the deal’s European members gave in to many of Trump’s demands, according to officials, diplomats and others briefed on the negotiations. Yet they still left convinced he was likely to re-impose sanctions.

Trump spoke with French President Emmanuel Macron and Chinese leader Xi Jinping about his decision Tuesday. The British foreign secretary traveled to Washington this week to make a last-minute pitch to the U.S. to remain in the deal, according to a senior British diplomat. The diplomat, who spoke on condition of anonymity, said the British objective will remain to uphold and maintain the deal.

Hours before the announcement, European countries met to underline their support for the agreement. Senior officials from Britain, France and Germany met in Brussels with Iran’s Deputy Foreign Minister for Political Affairs, Abbas Araghchi.

If the deal collapses, Iran would be free to resume prohibited enrichment activities, while businesses and banks doing business with Iran would have to scramble to extricate themselves or run afoul of the US American officials were dusting off plans for how to sell a pullout to the public and explain its complex financial ramifications.

In Iran, many were deeply concerned about how Trump’s decision could affect the already struggling economy. In Tehran, President Hassan Rouhani sought to calm nerves, smiling as he appeared at a petroleum expo. He didn’t name Trump directly, but emphasized that Iran continued to seek “engagement with the world.”

“It is possible that we will face some problems for two or three months, but we will pass through this,” Rouhani said.

Under the most likely scenario, Trump would allow sanctions on Iran’s central bank — intended to target oil exports — to kick back in, rather than waiving them once again on Saturday, the next deadline for renewal, said individuals briefed on Trump’s deliberations.

Then the administration would give those who are doing business with Iran a six-month period to wind down business and avoid breaching those sanctions.

Depending on how Trump sells it — either as an irreversible US pullout, or one final chance to save it — the deal could be strengthened during those six months in a last-ditch effort to persuade Trump to change his mind. The first 15 months of Trump’s presidency have been filled with many such “last chances” for the Iran deal in which he’s punted the decision for another few months, and then another.

Even Trump’s secretary of state and the UN agency that monitors nuclear compliance agree that Iran, so far, has lived up to its side of the deal. But the deal’s critics, such as Israel, the Gulf Arab states and many Republicans, say it’s a giveaway to Tehran that ultimately paves the path to a nuclear-armed Iran several years in the future.

Iran, for its part, has been coy in predicting its response to a Trump withdrawal. For weeks, Iran’s foreign minister had been saying that a re-imposition of US sanctions would render the deal null and void, leaving Tehran little choice but to abandon it as well. But on Monday, Rouhani said Iran could stick with it if the European Union, whose economies do far more business with Iran than the US, offers guarantees that Iran would keep benefiting.

For the Europeans, Trump’s withdrawal constitutes dispiriting proof that trying to appease him is futile.

Although the US and Europeans made progress on ballistic missiles and inspections, there were disagreements over extending the life of the deal and how to trigger additional penalties if Iran were found violating the new restrictions, US officials and European diplomats have said. The Europeans agreed to yet more concessions in the final days of negotiating ahead of Trump’s decision, the officials added.

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News Network
May 22,2020

May 22: A Pakistan International Airlines (PIA) flight on its way from Lahore to Karachi, crashed in the area near Jinnah International Airport on Friday, according to Civil Aviation Authority officials.

Geo News reported that the plane crashed at the Jinnah Ground area near the airport as it was approaching for landing. There were more than 90 passengers on board the Airbus aircraft. Black smoke could be seen from afar at the crash site, say eye witnesses.

There were no immediate reports on the number of casualties. The aircraft arriving from the eastern city of Lahore was carrying 99 passengers and 8 crew members, news agency AP said, quoting Abdul Sattar Kokhar, spokesman for the country’s civil aviation authority.

Witnesses said the Airbus A320 appeared to attempt to land two or three times before crashing in a residential area near Jinnah International Airport.

Flight PK-303 from Lahore was about to land in Karachi when it crashed at the Jinnah Garden area near Model Colony in Malir, just a minute before its landing, Geo News reported.

Local television reports showed smoke coming from the direction of the airport. Ambulances were on their way to the airport.

News agency said Sindh’s Ministry of Health and Population Welfare has declared emergency in all major hospitals of Karachi due to the plane crash.

It’s the second plane crash for Pakistani carrier in less than four years. The airline’s chairman resigned in late 2016, less than a week after the crash of an ATR-42 aircraft killed 47 people. The incident comes as Pakistan was slowly resuming domestic flights in the wake of the coronavirus pandemic, Bloomberg reported.

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News Network
March 6,2020

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

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News Network
July 1,2020

Washington, Jul 1: The United States has approved four coronavirus vaccine candidates for clinical trials, Food and Drug Administration (FDA) head Stephen Hahn told reporters.

"Four vaccines have been approved for moving into clinical trials... and another six are in the pipeline for us to review," Hahn said during a press briefing on Tuesday.

The US Administration launched in May Operation Warp Speed, a joint project of Health and Defense Departments, which aims to deliver 300 million doses of a vaccine for COVID-19 by January 2021.

The country's top pandemics expert Anthony Fauci warned on Tuesday, however, that there is no certainty the United States will be able to develop a vaccine against COVID-19 that works and will be safe.

Data on vaccine effectiveness, he added, may be available in the winter or early next year.

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