Trump to reveal Iran deal's fate amid low hopes for survival

Agencies
May 8, 2018

Washington, May 8: President Donald Trump is preparing to tell the world whether he plans to follow through on his threat to pull out of the landmark nuclear accord with Iran and almost surely ensure its collapse.

There are no signs that European allies enlisted to "fix" the deal had persuaded him to preserve it.

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 is likely to re-impose sanctions and walk away from the deal he has lambasted since his days as a presidential candidate.

As they braced for an expected withdrawal Tuesday, US officials were dusting off plans for how to sell a pullout to the public and explain its complex ramifications to the global financial world, said the officials and others, who weren't authorized to speak ahead of an announcement and requested anonymity.

Building up anticipation for the big reveal, Trump announced on Twitter he would disclose his decision at 2 p.m., with an announcement set for the Diplomatic Room of the White House. With uncharacteristic discipline, he kept the decision confined to a small group within the White House National Security Council, leaving even many his aides guessing what he had decided.

An immense web of sanctions, written agreements and staggered deadlines make up the 2015 nuclear deal struck by the U.S., Iran and world powers. So Trump effectively has several pathways to pull the United States out of the deal by reneging on its commitments.

Under the most likely scenario, Trump will allow sanctions on Iran's central bank — intended to target its oil exports — to kick back in, rather than waiving them once again on Saturday, the next deadline for renewal, said the individuals briefed on Trump's deliberations. Then the Trump administration would give those who are doing business with Iran a six-month grace period to wind down business and avoid running afoul of those sanctions.

Depending on how Trump sells it — either as an irreversible U.S. pullout, or one final chance to save it — the deal could ostensibly 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.

Other US sanctions don't require a decision until later, including those on specific Iranian businesses, sectors and individuals that will snap back into place in July unless Trump signs another waiver. A move on Tuesday to restore those penalties ahead of the deadline would be the most aggressive move Trump could take to close the door to staying in the deal.

Even Trump's secretary of state and the U.N. 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 U.S. sanctions would render the deal null and void, leaving Tehran little choice but to abandon it as well.

But yesterday President Hassan Rouhani said Iran could stick with it if the European Union, whose economies do far more business with Iran than the U.S., offers guarantees that Iran would keep benefiting.

It is far from clear that Europe can credibly provide that assurance. Even with the deal in place, Iran complained constantly that European banks and businesses were staying away out of fear they'd be punished by the United States.

The global financial system is so interconnected and so dependent on New York that it's nearly impossible to conduct business that doesn't touch the US financial system. That gives Trump incredible leverage if he threatens that anyone doing business with Iran will be cut off from the United States.

For the Europeans, a Trump withdrawal would also constitute dispiriting proof that trying to appease the mercurial American president is an exercise for naught.

The three EU members of the deal — Britain, France and Germany — were insistent from the start that the deal could not be re-opened. After all, it was the U.S. that brokered the agreement in 2015 and rallied the world behind it. But all that was under President Barack Obama, whose global legacy Trump has worked to chip away at since taking office.

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News Network
March 10,2020

Mar 10: Indian energy tycoon Mukesh Ambani is no longer Asia’s richest man, relinquishing the title to Jack Ma after oil prices collapsed along with global stocks.

The rout, exacerbated by mounting fears that the spread of the novel coronavirus will thrust the world into a recession, erased $5.8 billion from Ambani’s net worth on Monday and pushed him to No. 2 on the list of Asia’s richest people, according to the Bloomberg Billionaires Index. Ma, the Alibaba Group Holding Ltd. founder who relinquished the No. 1 ranking in mid-2018, is back on top with a $44.5 billion fortune, about $2.6 billion more than Ambani.

Oil plunged the most in 29 years on Monday as Saudi Arabia and Russia vowed to pump more in a struggle for market share. The slump comes just as the coronavirus is spurring the first decline in demand in more than a decade. That raises questions about whether Ambani’s flagship Reliance Industries Ltd. will be able to cut net debt to zero by early 2021, as he has pledged. The plan hinges on a proposal to sell a stake in the group’s oil and petrochemicals division to Saudi Arabian Oil Co., the world’s biggest crude producer.

While the coronavirus has curtailed some of tech giant Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps.

Reliance Industries, by comparison, has no such silver lining. The Indian conglomerate’s shares plunged 12% on Monday, the most since 2009, extending this year’s decline to 26%. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.

Ma reclaims crown after Reliance shares were pummeled in 2020.

Few of the world’s billionaires fared well in Monday’s collapse as the S&P 500 Index and Dow Jones Industrial Average each plunged more than 7.5%, the most since the 2008 financial crisis, threatening to end the longest bull market in history. But no one did worse than those whose fortunes are underpinned by oil. Wildcatter Harold Hamm’s fortune was cut almost in half to $2.4 billion and fellow oil magnate Jeff Hildebrand lost $3 billion, bumping both from Bloomberg’s 500-member wealth ranking.

In a pivot toward new businesses such as telecommunications, technology and retail, Ambani’s Reliance Industries has piled on billions of dollars of debt over the years.

It spent almost $50 billion -- most of it funded by borrowings -- to build Reliance Jio Infocomm Ltd., which became India’s No. 1 wireless carrier within about three years of its debut. As the mobile venture took off, Ambani also unveiled plans for an e-commerce empire to rival Amazon.com Inc. in India.

Addressing concerns over the liabilities, Ambani pledged in August to cut the group’s net debt to zero from about $21 billion as of last March. The Aramco deal is crucial to that plan for which Reliance Industries has valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20% stake that’s for sale.

Signs of a potential delay to that deal unnerved some investors, hammering the stock since it touched a record high on Dec. 19.

Reliance Industries expected the Aramco transaction to be completed by March, but people familiar with the matter said in February that talks were still ongoing to bridge differences between the two parties over the deal’s structure.

Adding to the uncertainty, Indian Prime Minister Narendra Modi’s administration has petitioned a court to halt the proposed stake sale, threatening a key source of funds needed to pare net debt.

But Ambani, 62, may soon bounce back from the setback, said Harish H.V., managing partner at ECube Investment Advisors in Bengaluru, India.

“The game isn’t over,” he said. “Ambani has successfully built a robust business model which would keep him in the game. Moreover, his telecom business will start yielding results in coming years.”

Comments

SmR
 - 
Tuesday, 10 Mar 2020

The curses of the bank depositors savings which vanished with collapsing economy and fraudlent seems to have gradully affecting riches of Ambani's.

 

AU
 - 
Tuesday, 10 Mar 2020

in Holy Quran Allah says; but they plan and Allah plans, and Allah is the best planners..(Surah Al Anfal 8:30)

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News Network
January 19,2020

Shirdi, Jan 19: Shirdi in Maharashtra will remain closed for an indefinite period from today in the wake of state Chief Minister Uddhav Thackeray's decision to develop Pathri town in Parbhani district as Sai Baba's birthplace.

However, Deepak Madukar Muglikar, Chief Executive Officer of Shri Saibaba Sansthan Trust, has said that Sai Baba Temple in Shirdi will remain open today and will not be impacted by the closure of the city.

"There are some reports in media that Sai Temple in Shirdi will remain closed on January 19. I want to clarify that it is just a rumor. Temple will remain open on January 19," Mr Muglikar said.

A call has been given for indefinite closure of Shirdi after Mr Thackeray's reported comment terming Pathri in Parbhani as Sai Baba's birthplace.

"Devotees will not face any difficulty if they come to Shirdi," said B Wakchaure, member of Saibaba Sansthan Trust.

Uddhav Thackeray has recently announced that Pathri will be developed as the birthplace of Sai Baba for religious tourism and also took a review meeting of the development plans in the Parbhani district.

One of the most popular religious destinations in the country, Saibaba Temple in Shirdi witnesses lakh of devotees visiting the holy site every year.

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News Network
January 1,2020

New Delhi, Jan 1: In the backdrop of huge losses borne by airlines, Aviation Minister Hardeep Singh Puri has said the government is concerned that more airlines will shut down if predatory pricing continues. "Some predatory pricing is taking place" in airfares, the minister told reporters on Tuesday. Mr Puri however ruled out any plan by the government to regulate airfares. The remarks come amid high competition in the country's aviation sector, struggling against high fuel prices and other operating costs.

"The interesting thing that we have observed is that on Delhi-Mumbai route 20 years ago, the average fare was Rs 5,100. Today, the average fare is Rs 4,600. Some predatory pricing is taking place. It means people are selling tickets below their cost," he said.

"One of our concerns is that if there is predatory pricing, then the airlines will stop functioning. This is not Air India's problem only. Jet Airways got shut down. Before that, it was Kingfisher airline," he said.

IndiGo and SpiceJet - two of the country's biggest airlines - reported losses of Rs 1,062 crore and Rs 463 crore respectively in the second quarter of 2019-20. Other airlines have also reported losses in the quarter that ended on September 30, 2019.

Asked if predatory pricing is the reason for the ill health of the airlines, the minister said, "No, there are many reasons... Predatory pricing is one of the factors. But the profitability of an airline is dependent on (a) number of things."

Asked if the trend of predatory pricing has come down after regular discussion with the airlines, he said, "Yes, absolutely."

"It is (a) constant battle. An ideal situation from an airline's point of view is that they grow and they are also able to charge more fares. What fares they charge is their business. Our advice to them is to charge realistic fares," he added. "It should not be too high. And it is not in your business interests if you are imposing predatory fares."

The minister also said that the government is not planning to regulate fares. "No regulation. It has to be done within deregulation system.... If I put a cap on fare, the airline will start charging that cap only... that cap will become the normal fare... So, within a deregulated structure, we have to bring about an equilibrium," the minister said.

"Government, periodically, at my level or at secretary''s level, we sit down with the main aircraft operators and tell them it is in your interest not to allow such practices which undermine the civil aviation sector."

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