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Sen. Bernie Sanders enters the 2020 presidential race

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Source: InfoWars

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Kathy Griffin Among First Name In Covington Catholic Lawsuits

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McCabe says Rosenstein was 'absolutely serious' about secretly recording Trump; Booker speaks out on Smollett

Welcome to Fox News First. Not signed up yet? Click here.

Developing now, Monday, Feb. 18, 2019

McCABE SAYS DEPUTY AG ROSENSTEIN 'ABSOLUTELY SERIOUS' ABOUT SECRETLY RECORDING TRUMP: The former FBI deputy director said in an interview broadcast Sunday that Deputy Attorney General Rod Rosenstein "was not joking" when he suggested secretly recording President Donald Trump in the Oval Office following the May 2017 dismissal of FBI Director James Comey.

McCabe, speaking to CBS News' "60 Minutes," recounted a conversation soon after Comey's firing about the ongoing Russia investigation in which he said Rosenstein told him: "I never get searched when I go into the White House. I could easily wear a recording device. They wouldn't know it was there."

"Now, he was not joking," McCabe said of Rosenstein's comments. "He was absolutely serious. And in fact, he brought it up in the next meeting we had."

CLICK HERE TO GET THE FOX NEWS APP

CORY BOOKER 'WITHHOLDING JUDGMENT ON SMOLLETT CASE AFTER CALLING IT 'ATTEMPTED MODERN-DAY LYNCHING': Democratic presidential candidate Cory Booker told reporters Sunday that he would withhold judgment on the alleged attack on "Empire" actor Jussie Smollett after calling the incident "an attempted modern-day lynching" when it was first reported last month ... Booker cited the deadly shooting at a Pittsburgh synagogue this past October as well as the June 2015 shooting at a historically black church in Charleston, S.C.

FILE: Actor and singer Jussie Smollett attends the "Empire" FYC Event in Los Angeles. 

FILE: Actor and singer Jussie Smollett attends the "Empire" FYC Event in Los Angeles.  (Richard Shotwell/Invision/AP)

"I’m gonna withhold until all the information actually comes out from on-the-record sources," the senator from New Jersey said after meeting with voters in Rochester, N.H. "We know in America that bigoted and biased attacks are on the rise in a serious way, and we actually even know-- in this country-- that since 9/11, the majority of the terrorist attacks on our soil have been right-wing terrorist attacks -- the majority of them white supremacist attacks."

RUSH LIMBAUGH: SPENDING BILL WAS EFFORT BY SOME REPUBLICANS TO SABOTAGE TRUMP: Conservative talk radio host Rush Limbaugh, speaking to "Fox News Sunday," charged that the compromise spending bill recently signed by President Trump to avert another partial government shutdown was little more than a disguised effort by some Republicans to torpedo his 2020 presidential candidacy...The radio host rejected claims that Trump is unduly influenced by right-wing media figures and "wackos" -- an accusation that resurfaced amid the ongoing border wall funding dispute.

"Both parties have people that are still trying to get rid of Donald Trump," Limbaugh said, asserting that Democrats are also working to guarantee a "permanent underclass of voters" who are "uneducated" and "don't even speak" English.

  • WATCH: Rush Limbaugh on whether Trump is justified in taking executive action to secure funding for his border wall

BILL DE BLASIO CORRECTS OCASIO-CORTEZ'S CLAIMS ABOUT SPENDING AMAZON TAX BREAK MONEY: New York City Mayor Bill de Blasio suggested on Sunday that critics of the potential Amazon campus New York City — such as Democratic Rep. Alexandria Ocasio-Cortez — got the facts wrong over the money behind the tax breaks ... The Democratic mayor said: “And that $3 billion that would go back in tax incentives was only after we were getting the jobs and getting the revenue.”

On Sunday morning, de Blasio responded in the affirmative when Chuck Todd of NBC News’ “Meet the Press” asked if the tax breaks offered to Amazon weren’t “money you had over here. And it was going over there.”

THE SOUNDBITE

SOMETHING WAS AMISS - “This is a duly elected president, someone who the entire country said we want to be our president, and here we see that yet again people cannot accept the results of an election. And by the way, the president knew that something was amiss, he’d been saying from the very beginning, something’s going on within in the FBI, something’s wrong within my justice department. He knew and everybody said, “oh, he’s crazy.” No, he wasn’t. This is exactly the thing that he was talking about happening. It’s disgraceful and I think he needs to answer a lot of questions.” – Lara Trump, on “Fox & Friends,” discussing former FBI Deputy Director Andrew McCabe’s admission that he ordered an obstruction of justice probe against President Donald Trump. WATCH

TODAY’S MUST-READS

New Yorkers fleeing to Florida need to leave their terrible blue state policies behind as well

How Amazon's Jeff Bezos and the National Enquirer went to war

Florida boy, 11, arrested after refusing to recite 'racist' Pledge of Allegiance: report.

MINDING YOUR BUSINESS

Student-loan payment may soon come directly out of your paycheck

IRS refund frenzy: Democrats blast Trump Treasury for 'goosing' paychecks

Amazon vs Ocasio-Cortez: 25K NYC job promise had holes

If Joe Biden runs, his presidency goes through Wall Street

Married filing taxes jointly vs. separately: Pros and cons

STAY TUNED

On Fox Nation:

Dr. Drew reacts to Jonah Hill's comments on "UN-PC" - Dr. Drew Pinsky urged actor Jonah Hill to "double-down" on his traditional form of comedy on Fox Nation's "UN-PC" after Hill said in a recent interview that he wants to "challenge traditional masculinity" in his films. Watch a preview of the show now.

Not a subscriber? Click here to join Fox Nation today!

On Fox News:

Fox & Friends, 6 a.m. ET: Special guests include Scott Stephenson, president of the Museum of the American Revolution; Cyndi Zagieboylo, president and CEO of National MS Society; Chef John Doherty, former executive chef at the Waldorf Astoria hotel in New York City for 23 years, owner and chef at Black Barn Restaurant; Spencer Brown, Young America Foundation.

Outnumbered Overtime with Harris Faulker, 1 p.m. ET:  Guests include Ash Wright, GOP strategist, Sr. advisor to George P. Bush, former political director at the Republican Party of Texas.

Your World with Neil Cavuto, 4 p.m. ET: Special guest: Melissa Armo, founder of the educational firm "The Stock Swoosh."

The Story with Martha MacCallum, 7 p.m. ET: Guests include: Katie Pavlich, FNC contributor, and Juan Williams, co-host of "The Five."

Tucker Carlson Tonight, 8 p.m. ET: Elizabeth Wagmeister, Page Six TV.

Hannity, 9 p.m. ET:  Gregg Jarrett, attorney, and Fox News anchor.

On Fox News Radio:

The Fox News Rundown podcast: "Trump Will Defend National Emergency Declaration" - President Trump and his advisers defend the use of a national emergency declaration to get funding for a border wall. FOX News Contributor and CEO of 32 Advisors, Robert Wolf, discusses what happens next. Famous for his role of Lt. Dan in Forrest Gump, Gary Sinise has been traveling the world and supporting the United States military through his work with his foundation. He joined the podcast to talk about his experiences, and about what he’s learned. Plus, commentary by FOX’s Senior Judicial Analyst Andrew Napolitano.

Want the Fox News Rundown sent straight to your mobile device? Subscribe through Apple PodcastsGoogle Play, and Stitcher.

The Brian Kilmeade Show, 9 a.m. ET: Guests include: Rich Lowry discusses President Trump's national emergency and the 2020 race; Amb. Dennis Ross, former special assistant to President Barack Obama, on Iran; Jonah Goldberg on McCabe, Trump's national emergency and the 2020 race; Former Mississippi Gov. Haley Barbour on McCabe and the national emergency; American historian Jay Winick discusses Presidents' Day.

#TheFlashback

2009: President Barack Obama launched a $75 billion foreclosure rescue plan aimed at saving homes.

1988: Anthony M. Kennedy was sworn in as an associate justice of the U.S. Supreme Court.

1997: Astronauts on the space shuttle Discovery completed their tune-up of the Hubble Space Telescope after 33 hours of spacewalking; the Hubble was then released using the shuttle's crane.

Fox News First is compiled by Fox News' Bryan Robinson. Fox News' Bradford Betz contributed to this edition. Thank you for joining us! Have a good day! We'll see you in your inbox first thing Tuesday morning.

Source: Fox News National

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Israeli court sentences soldiers for abusing Palestinians

Three Israeli soldiers charged with abusing Palestinian detainees have been sentenced to six and a half months in prison under a plea deal with a military court.

The court approved the plea bargain late Sunday after the soldiers confessed to severely abusing two Palestinian suspects. The agreement, which avoided more serious assault charges, calls for the soldiers to serve 190 days in prison followed by probation, and demotes the soldiers in rank. The defense welcomed the plea deal, saying it would likely not show up on the soldiers' permanent records.

The Palestinians who were abused were arrested for allegedly assisting gunmen involved in a West Bank attack that killed two Israeli soldiers from the same unit in December.

Two more soldiers are still negotiating plea bargains in the case.

Source: Fox News World

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Drones to deliver vaccines, blood and drugs across Ghana

A woman packs a box of vaccines to be delivered by a Zipline drone, in Ghana
A woman packs a box of vaccines to be delivered by a Zipline drone, in Ghana April 22, 2019. Gavi/2019/Isaac Griberg/Handout via REUTERS

April 24, 2019

By Kate Kelland

LONDON (Reuters) – Hundreds of drones will begin delivering life-saving vaccines, blood and medicines to patients in Ghana this week in the largest scheme of its kind, the global vaccine alliance GAVI said on Wednesday.

Medics will place orders by text message when supplies run dry, said GAVI chief executive Seth Berkley.

Drones will then fly in from four distribution centers, hover over health posts and drop deliveries using tiny parachutes.

“The idea is that these four distribution centers can make up to 600 on-demand delivery flights a day,” Berkley told reporters in a telephone briefing. “And that can expand up to 2,000 (a day) over time.”

The aim is for deliveries to arrive within 30 minutes, Berkley added, meaning emergency treatments such anti-snake venom or rabies shots could arrive in time to save lives.

The project – led by Zipline, a California-based robotics company – is designed to deliver to around 2,000 health facilities serving 12 million people across the west African country.

It is backed by the non-profits GAVI and the Bill & Melinda Gates Foundation, as well as several companies including the parcel delivery firm UPS and the pharmaceutical giant Pfizer.

Up to 12 routine and emergency vaccines will be available, including shots for yellow fever, polio, measles, meningitis and tetanus, as well as 148 blood products and other critical medicines. The drones fly autonomously and can carry up to 1.8 kilograms of cargo, GAVI said.

Zipline said a similar but smaller project had made more than 13,000 deliveries of blood products since it was launched in Rwanda in 2016 – about a third of them for emergency life-saving treatment.

(Reporting by Kate Kelland; Editing by Andrew Heavens)

Source: OANN

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House panel chairman gives IRS April 23 deadline on Trump taxes

U.S. President Trump departs on travel to the Texas from the White House in Washington
U.S. President Donald Trump talks to reporters as he departs for travel to Texas from the White House in Washington, U.S., April 10, 2019. REUTERS/Kevin Lamarque

April 13, 2019

WASHINGTON (Reuters) – The Democratic chairman of the U.S. House Ways and Means Committee on Saturday set a new April 23 deadline for the Internal Revenue Service to comply with his request for six years of President Donald Trump’s personal and business tax returns.

In a letter to IRS Commissioner Charles Rettig, Ways and Means Chairman Richard Neal said the tax agency’s failure to comply with the new deadline would be interpreted as a denial of his request. The Trump administration has already failed to comply with an earlier April 10 deadline set by Neal.

(Reporting by David Morgan; Editing by James Dalgleish)

Source: OANN

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Marist Poll: 'Dramatic Shift' Among Americans on Abortion

The latest Marist Poll has found Americans are equally likely to identify as pro-life as pro-choice, a double-digit shift from just last month, Axios reports.

Marist, in a poll commissioned by the Catholic group the Knights of Columbus, asked respondents about their views on abortion and compared the results to a similar poll from last month.

  • February poll: 47 percent pro-choice, 47 percent pro-life.
  • January poll: 55 percent pro-choice, 38 percent pro-life.

The poll also found most Americans, 80 percent, think abortion should be restricted to the first three months of a pregnancy.

Both New York and Virginia have passed measures on abortion in recent weeks, primarily concerning late-term abortion, which Marist Poll director Barbara Carvalho credits with changing Americans' attitudes on abortion.

"The recent legal changes to late-term abortion and the debate which followed have not gone unnoticed by the general public," Carvalho said in a press release.

"Current proposals that promote late-term abortion have reset the landscape and language on abortion in a pronounced – and very measurable – way," she continued.

The most significant shift, according to Carvalho, was found among young Democrats.

  • February: 34 percent of Dems under 45 identify as pro-life, 61 percent as pro-choice.
  • January: 20 percent identified as pro-life, 75 percent as pro-choice.

"This has been a measure that has been so stable over time," Carvalho told Axios. "To see that kind of change was surprising. And the increased discussion [of late-term abortion] in the public forum in the past month appears to have made the biggest difference in how people identify on the issue."

Marist surveyed 1,008 adults from Feb. 12 to Feb. 17 by phone, with a margin of error of 3.5 percentage points.

Source: NewsMax America

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Members of The Cranberries, bassist Mike Hogan, drummer Fergal Lawler and guitarist Noel Hogan speak to Reuters during an interview in London
Members of The Cranberries, bassist Mike Hogan, drummer Fergal Lawler and guitarist Noel Hogan speak to Reuters during an interview in London, Britain, April 24, 2019. REUTERS/Gerhard Mey

April 26, 2019

By Hanna Rantala

LONDON (Reuters) – Irish rockers The Cranberries are saying goodbye with their final album released on Friday, a poignant tribute to lead singer Dolores O’Riordan who died last year.

“In the End” is the eighth studio album from the band that rose to fame in the early 1990s with hits likes “Zombie” and “Linger”, and includes the final recordings by O’Riordan, who drowned in a London hotel bath in January 2018 due to alcohol intoxication.

Work on the album began during a 2017 tour and by that winter, O’Riordan and guitarist Neil Hogan had penned and demoed 11 tracks.

With O’Riordan’s vocals recorded, Hogan, bassist Mike Hogan and drummer Fergal Lawler completed the album in tribute to her.

“When we realized how strong the songs were, that was the deciding factor really… There was no point… trying to ruin the legacy of the band,” Noel Hogan said in an interview.

“It was obvious that Dolores wanted this album done because when you hear the album, you hear the songs and how strong they are, and she was very, very excited to get in and record this.”

The Cranberries formed in Limerick in 1989 with another singer. O’Riordan replaced him a year later and the group went on to become Ireland’s best-selling rock band after U2, selling more than 40 million records.

O’Riordan, known for her strong distinctive voice singing about relationships or political violence, was 46 when she died.

“She was actually in quite a good place mentally. She was feeling quite content and strong and looking forward to a new phase of her life,” Lawler said.

“A lot of the lyrics in this album are about things ending… people might read into it differently but it was a phase of her personal life that she was talking about.”

The group previously announced their intention to split after the release of “In The End”.

“We are absolutely gutted we can’t play (the songs) live because that’s something that’s been a massive part of this band from day one,” Noel Hogan said.

“A few people have said to us about maybe even doing a one off where you have different vocalists… as kind of guests of ours. A year ago that’s definitely something we weren’t going to entertain but I don’t know, I think it’s something we need to go away and take time off for the summer and have a think about.”

Critics have generally given positive reviews of the album; NME described it as “(seeing) the band’s career go full-circle” while the Irish Times called it “an unexpected late career high and a remarkable swan song for O’Riordan”.

Their early songs still play on the radio. This week, “Dreams” was performed at the funeral of journalist Lyra McKee, who was shot dead in Londonderry last week as she watched Irish nationalist youths attack police following a raid.

“We wrote them as kids, as a hobby and 30 years later they are on radio and on TV, like all the time… That’s far more than any of us ever thought we would have,” Noel Hogan said.

“That would make Dolores really happy because she was very precious about those songs. Her babies, she called them and to have that hopefully long after we’re gone… that’s all any band can wish for.”

(Reporting by Hanna Rantala; additoinal reporting by Marie-Louise Gumuchian; Writing by Marie-Louise Gumuchian; Editing by Susan Fenton)

Source: OANN

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2020 Democratic presidential candidate Elizabeth Warren participates in the She the People Presidential Forum in Houston
2020 Democratic presidential candidate Elizabeth Warren participates in the She the People Presidential Forum in Houston, Texas, U.S. April 24, 2019. REUTERS/Loren Elliott

April 26, 2019

By Joshua Schneyer and M.B. Pell

NEW YORK (Reuters) – Senator Elizabeth Warren will introduce a bill Friday that offers new protections for U.S. military families facing unsafe housing, following a series of Reuters reports revealing squalid conditions in privately managed base homes.

The Reuters reports and later Congressional hearings detailed widespread hazards including lead paint exposure, vermin infestations, collapsing ceilings, mold and maintenance lapses in privatized base housing communities that serve some 700,000 U.S. military family members.

(View Warren’s military housing bill here. https://tmsnrt.rs/2Dy5aht)

(Read Reuters’ Ambushed at Home series on military housing here. https://www.reuters.com/investigates/section/usa-military)

The Massachusetts Democrat’s bill would mandate both regular and unannounced spot inspections of base homes by certified, independent inspectors, holding landlords accountable for quickly fixing hazards. The military’s privatization program for years allowed real estate firms to operate base housing with scant oversight, Reuters found, leaving some tenants in unsafe homes with little recourse against landlords.

The bill would also require the Department of Defense and its private housing operators to publish reports annually detailing housing conditions, tenant complaints, maintenance response times and the financial incentives companies receive at each base. The provisions aim to enhance transparency of housing deals whose finances and operations the military had allowed to remain largely confidential under a privatization program since the late 1990s.

The measure would also require private landlords to cover moving costs for at-risk families, and healthcare costs for people with medical conditions resulting from unsafe base housing, ensuring they receive continuing coverage even after they leave the homes or the military.

“This bill will eliminate the kind of corner-cutting and neglect the Defense Department should never have let these private housing partners get away with in the first place,” Warren said in a statement Friday.

The proposed legislation comes after February Senate hearings where Warren, a member of the Senate Armed Services Committee who is seeking the Democratic nomination for the 2020 U.S. presidential election, slammed private real estate firms for endangering service families, and sought answers about why military branches weren’t providing more oversight.

Her legislation would direct the Defense Department to allow local housing code enforcers onto federal bases, following concerns they were sometimes denied access. Warren’s office said a companion bill in the House of Representatives would be introduced by Rep. Deb Haaland, Democrat of New Mexico.

In response to the housing crisis, military branches are developing a tenant bill of rights and hiring hundreds of new housing staff. The branches recently dispatched commanders to survey base housing worldwide for safety hazards, resulting in thousands of work orders and hundreds of tenants being moved. The Defense Department has pledged to renegotiate its 50-year contracts with private real estate firms.

Congress has been quick to take its own measures. Earlier legislation proposed by senators Dianne Feinstein and Kamala Harris of California, along with Mark Warner and Tim Kaine of Virginia, would compel base commanders to withhold rent payments and incentive fees from the private ventures if they allow home hazards to persist.

(Editing by Ronnie Greene)

Source: OANN

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FILE PHOTO: Offices of Deloitte are seen in London
FILE PHOTO: Offices of Deloitte are seen in London, Britain, September 25, 2017. REUTERS/Hannah McKay/File Photo

April 26, 2019

By Noor Zainab Hussain and Tanishaa Nadkar

(Reuters) – Deloitte quit as Ferrexpo’s auditor on Friday, knocking its shares by more than 20 percent, days after saying it was unable to conclude whether the iron ore miner’s CEO controlled a charity being investigated over its use of company donations.

Blooming Land, which coordinates Ferrexpo’s Corporate Social Responsibility (CSR) program, came under scrutiny after auditors found holes in the charity’s statements.

Ferrexpo on Tuesday said findings of an ongoing independent investigation launched in February indicated some Blooming Land funds could have been “misappropriated”. It did not provide any details or publish its findings.

Shares in Ferrexpo, the third largest exporter of pellets to the global steel industry, were 23.4 percent lower at 206.1 pence at 1022 GMT following news of Deloitte’s resignation.

“Ferrexpo’s shares are deeply discounted vs peers … following the resignation of Deloitte, we expect downside risks to dominate Ferrexpo’s shares near term.” JP Morgan analyst Dominic O’Kane said in a note on Friday.

Swiss-headquartered Ferrexpo did not provide a reason for the resignation of Deloitte, which declined to comment, while Blooming Land did not respond to a request for comment.

Funding for Blooming Land’s CSR activities is provided by one of Ferrexpo’s units in Ukraine and Khimreaktiv LLC, an entity ultimately controlled by Ferrexpo’s CEO and majority owner Kostyantin Zhevago, Ferrexpo said on Tuesday.

Ferrexpo’s board has found that Zhevago did not have significant influence or control over the charity, but Deloitte said it was unable reach a conclusion on this.

Reuters was not immediately able to contact Zhevago.

In a qualified opinion, a statement addressing an incomplete audit, Deloitte said it had been unable to conclude whether $33.5 million of CSR donations to Blooming Land between 2017 and 2018 was used for “legitimate business payments for charitable purposes”.

Deloitte said on Tuesday that total CSR payments made to Blooming Land by Ferrexpo since 2013 total about $110 million.

Ferrexpo, whose major mines are in Ukraine, has said that the investigation was ongoing and new evidence pointed to potential discrepancies.

Zhevago, 45, who ranked 1,511 on Forbes magazine’s list of billionaires for 2019 with a net worth of $1.4 billion, owns the FC Vorskla soccer club and has been a member of Ukraine’s parliament since 1998.

(Reporting by Noor Zainab Hussain and Tanishaa Nadkar in Bengaluru and additional reporting by Pavel Polityuk in Kiev; editing by Gopakumar Warrier, Bernard Orr)

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Children walk past a damaged building in the aftermath of the Cyclone Kenneth in Pemba
Children walk past a damaged building in the aftermath of the Cyclone Kenneth in Pemba, Mozambique April 26, 2019 in this still image obtained from social media. SolidarMed via REUTERS ATTENTION EDITORS – THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT. NO RESALES. NO ARCHIVES

April 26, 2019

By Emma Rumney and Stephen Eisenhammer

JOHANNESBURG/LUANDA (Reuters) – Cyclone Kenneth killed at least one person and left a trail of destruction in northern Mozambique, destroying houses, ripping up trees and knocking out power, authorities said on Friday.

The cyclone brought storm surges and wind gusts of up to 280 km per hour (174 mph) when it made landfall on Thursday evening, after killing three people in the island nation of Comoros.

It was the most powerful storm on record to hit Mozambique’s northern coast and came just six weeks after Cyclone Idai battered the impoverished nation, causing devastating floods and killing more than 1,000 people across a swathe of southern Africa.

The World Food Programme warned that Kenneth could dump as much as 600 millimeters of rain on the region over the next 10 days – twice that brought by Cyclone Idai.

One woman in the port town of Pemba died after being hit by a falling tree, the Emergency Operations Committee for Cabo Delgado (COE) said in a statement, while another person was injured.

In rural areas outside Pemba, many homes are made of mud. In the main town on the island of Ibo, 90 percent of the houses were destroyed, officials said. Around 15,000 people were out in the open or in “overcrowded” shelters and there was a need for tents, food and water, they said.

There were also reports of a large number of homes and some infrastructure destroyed in Macomia district, a mainland district adjacent to Ibo.

A local group, the Friends of Pemba Association, had earlier reported that they could not reach people in Muidumbe, a district further inland.

Mark Lowcock, United Nations under-secretary-general for humanitarian affairs, warned the storm could require another major humanitarian operation in Mozambique.

“Cyclone Kenneth marks the first time two cyclones have made landfall in Mozambique during the same season, further stressing the government’s limited resources,” he said in a statement.

FLOOD WARNINGS

Shaquila Alberto, owner of the beach-front Messano Flower Lodge in Macomia, said there were many fallen trees there, and in rural areas people’s homes had been damaged. Some areas of nearby Pemba had no power.

“Even my workers, they said the roof and all the things fell down,” she said by phone.

Further south, in Pemba, Elton Ernesto, a receptionist at Raphael’s Hotel, said there were fallen trees but not too much damage. The hotel had power and water, he said, while phones rang in the background. “The rain has stopped,” he added.

However Michael Charles, an official for the International Federation of the Red Cross and Red Crescent Societies (IFRC), said heavy rains over the next few days were likely to bring a “second wave of destruction” in the form of flooding.

“The houses are not all solid, and the topography is very sandy,” Charles said.

In the days after Cyclone Idai, heavy inland rains prompted rivers to burst their banks, submerging entire villages, cutting areas off from aid and ruining crops. There were concerns the same could happen again in northern Mozambique.

Before Kenneth hit, the government and aid workers moved around 30,000 people to safer buildings such as schools, however authorities said that around 680,000 people were in the path of the storm.

(Reporting by Emma Rumney and Stephen Eisenhammer; Writing by Emma Rumney; Editing by Janet Lawrence and Alexandra Zavis)

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A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai
FILE PHOTO: A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas

April 26, 2019

By Manoj Kumar and Nidhi Verma

NEW DELHI (Reuters) – Surging global oil prices will pose a first big challenge to India’s new government, whoever wins an election now under way, especially as domestic prices have been allowed to lag, meaning consumers are in for a painful surge as they catch up.

For oil-import dependent India, higher global prices could lead to a weaker rupee, higher inflation, the ruling out of interest rate cuts and could further weigh on twin current account and budget deficits, economists warned.

But compounding the future pain, state-run fuel suppliers and retailers have held off passing on to consumers the higher prices during a staggered general election, which began on April 11 and ends on May 23, according to sources familiar with the situation.

That delay is expected to be unwound once the election is over. And there could be additional price increases to make up for losses or profits missed during the period of delayed increases, the sources said.

In some major Asian countries, such as Japan and South Korea, pump prices are adjusted periodically so they move largely in tandem with international crude prices.

That was what was supposed to happen in India but the election means there have been many days when pump prices have been unchanged.

In New Delhi, for example, while crude oil prices have gone up by nearly $9 a barrel, or about 12 percent, in the past six weeks, gasoline prices have only risen by 0.47 rupees a liter, or 0.6 percent.

State-controlled fuel suppliers and retailers declined to say why they had delayed price increases, or discuss whether there has been any pressure from the government of Prime Minister Narendra Modi.

A government spokesman declined to comment.

The opposition Congress party said Modi’s government was violating its own policy of daily price revision by advising the state oil companies to hold prices steady.

“The government should cut fuel taxes otherwise consumers will have to pay much higher oil prices once the elections are over,” said Akhilesh Pratap Singh, a senior leader of the Congress party.

(GRAPHIC: India Polls: Fuel price hike lags crude surge – https://tmsnrt.rs/2XLlxik)

Nitin Goyal, treasurer at the All India Petroleum Dealers Association, representing fuel stations in 25 states, said prices were similarly held down for 19 days in the southern state of Karnataka last year, when it held state assembly elections.

Only for them to surge after the vote.

“Consumers should be ready for a rude shock of a massive jump in retail prices, similar to the level we have seen in the Karnataka state election,” Goyal said.

‘CREDIT NEGATIVE’

Sri Paravaikkarasu, director for Asia oil at Singapore-based consultancy FGE, said retail prices of gasoline and gasoil prices would have been up to 6 percent, or about 4 rupee, higher if they had been allowed to rise in line with global prices.

“Indian pump prices have failed to keep up with the recent uptrend in crude prices,” Paravaikkarasu said.

“With the country’s general elections underway, the incumbent government has been keeping pump prices relatively unchanged.”

India had switched to a daily price revision in June 2017 from a revision every two weeks, as the government allowed retailers to set prices.

But the government faced protests last October when retailers raised prices by up to 10 rupees a liter after the crude oil price went above $80 a barrel, forcing it to cut fuel taxes.

Global prices rose to their highest level in 2019 on Thursday, days after the United States announced all Iran sanction waivers would end by May, pressuring importers including India to stop buying Tehran’s oil. [O/R]

Higher oil prices will mean Asia’s third largest economy is likely to see growth of less than 7 percent rate this fiscal year, economists said. Growth slowed to 6.6 percent in the October-December quarter, the slowest in five quarters.

Rating agency CARE has warned that a 10 percent rise in global oil prices could increase demand for dollars, putting pressure on the rupee and widening the current account deficit.

India’s oil import bill rose by nearly one-third in the fiscal year ending March 31 to $140.5 billion, against $108 billion the previous year.

“The increase in international oil prices is a credit negative for the Indian economy,” ICRA, the Indian arm of the Fitch rating agency, said in a note.

“Every $10/ bbl increase in crude oil prices increases the fiscal deficit by about 0.1 percent of GDP.”

Any big price rise would also build a case for the central bank to keep rates steady, or even raise them.

The Reserve Bank of India’s Monetary Policy Committee, which cut the benchmark policy repo rate by 25 basis points this month, warned that rising oil and food prices could push up inflation.

Policymakers are worried that a sustained increase in the oil price in the range of $70-75/barrel or higher can move the rupee down by 3-4 percent on an annual basis.

The rupee has depreciated by 1.24 percent against the dollar since a year high in mid-March.

($1 = 70.1800 Indian rupees)

(Reporting by Manoj Kumar and Nidhi Verma; Editing by Martin Howell and Rob Birsel)

Source: OANN

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