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House votes to condemn Trump's transgender military ban

The House delivered a rebuke to President Donald Trump on Thursday by voting to condemn his administration's move to restrict transgender men and women from military service.

A non-binding resolution opposing Trump's transgender ban passed 238-185. Every Democrat supported the resolution, while nearly every Republican voted against it. Five Republicans broke ranks and voted in favor: Brian Fitzpatrick of Pennsylvania, Trey Hollingsworth of Indiana, Will Hurd of Texas, John Katko of New York and Tom Reed of New York.

The Trump administration's policy bars people who have undergone gender transition from enlisting. It also requires military personnel to serve as their biological gender unless they began a gender transition under less restrictive Obama administration rules. The policy is being challenged in court.

Rep. Joe Kennedy, D-Mass., the resolution's sponsor, said Trump's policy amounts to "targeted discrimination." He said the House was voting to tell transgender people "that they cannot be banned from military service because of who they are."

The top Republican on the House Armed Services Committee, Rep. Mac Thornberry of Texas, opposed the resolution and said the vote attempted to politicize U.S. service members. Thornberry said because the resolution does not change law or policy it was a "messaging bill" that detracted from "serious issues that need to be discussed."

Ahead of the vote many Democratic lawmakers placed transgender pride flags outside their offices on Capitol Hill, including House Speaker Nancy Pelosi, who spoke from the floor in support of the resolution.

"There is no moral justification for this ban which violates every value of our American democracy," Pelosi said Thursday.

Under the Obama administration, the Pentagon announced that transgender people already serving in the military would be allowed to serve openly. Trump reversed that policy beginning in 2017 with a tweet that the government would not allow "Transgender individuals to serve in any capacity in the U.S. Military."

The Pentagon has said that over 900 men and women have been diagnosed with "gender dysphoria," a discomfort with their birth gender. A 2016 survey estimated that about 1 percent of active duty service members, around 9,000 men and women, identify as transgender.

Speaking from the House floor ahead of the vote, Armed Services Chair Adam Smith, D-Wash., said the Trump administration policy is "primarily based on ignorance and bias against the transgender community."

"We have the best military in the world," Smith said. "We need highly qualified people to serve and to single out a particular group — to discriminate against them and to say they cannot serve — is bad for national security."

Source: Fox News National

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Jaguar recovery plan envisions sprawling habitat areas

A plan by wildlife officials to bolster the endangered jaguar population in the U.S. Southwest and Mexico by establishing two sprawling habitat areas drew criticism Wednesday from environmental groups.

The final recovery plan for the large cats was released by the U.S. Fish and Wildlife Service.

It calls for one habitat area from western Mexico into southern Arizona and southwest New Mexico. The other would stretch from eastern Mexico to northern Argentina.

Mexico as well as countries in Central and South America would be primarily responsible for monitoring jaguar movements within their territory, according to the plan.

Environmental groups slammed the plan. Michael Robinson of the Center for Biological Diversity called it "feeble" because it "relies entirely on Mexico to ensure the cats' survival."

Robinson says the ability of the animals to roam the proposed area straddling the U.S. and Mexico could be stymied if the Trump administration builds a wall along the border.

Even with gaps to accommodate jaguars, a wall would cut off the possibility of the animals recovering in their native range, he said.

Defenders of Wildlife said the U.S. agency is overlooking millions of acres of potential habitat farther north in the U.S.

Jaguars are currently found in 19 countries, but only seven male jaguars have been seen in Arizona and New Mexico since 1996. The animals have been protected under the U.S. Endangered Species Act since 1997.

Shrinking habitats, insufficient prey, poaching and retaliatory killings over livestock deaths are some of the things that have contributed to the jaguar's decline in the U.S. Southwest over the past 150 years.

The Center for Biological Diversity released video in 2017 of a male jaguar spotted on camera in southern Arizona. Conservationists had hoped it would turn out to be the first female jaguar to be seen in decades.

Source: Fox News National

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2020 Dems Pledge to Rejoin Iran Nuclear Agreement

Several candidates for the Democratic nomination for president in 2020 have vowed to reenter the nuclear agreement with Iran that President Donald Trump withdrew the U.S. from last year.

The candidates, including Sens. Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass., and Kamala Harris, D-Calif., as well as less-known contenders like Florida mayor Wayne Messam and spiritual teacher Marianne Williamson, all told Al-Monitor that they will seek to rejoin the agreement if elected.

A spokesperson for Warren said that “as long as Iran continues to abide by the terms of the deal, she would return to it as president in order to prevent Iran from obtaining a nuclear weapon.”

A Sanders aide said that, “as president, Sen. Sanders would rejoin the JCPOA and would also be prepared to talk to Iran on a range of other issues, which is what Trump should’ve done instead of simply walking away. Rejoining the JCPOA would mean meeting the United States’ commitments under the agreement, and that includes sanctions relief.”

Harris’ spokesperson said that the senator “would rejoin the Iran deal if the US could verify Iran is not cheating and is complying with the strict requirements detailed in the agreement.”

However, other Democrats like Sens. Cory Booker, of New Jersey, Amy Klobuchar of Minnesota and Kirsten Gillibrand of New York, Hawaii Rep. Tulsi Gabbard and former Texas Rep. Beto O’Rourke failed to respond to Al-Monitor’s question.

Source: NewsMax Politics

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War Room – 2019-Mar-18, Monday – France To Ban Yellow Vest Protests To Save Macron's Presidency

As Globalism around the world is being defeated, any and all protest of Globalism are being snuffed out. From France banning Yellow Vest protests to the internet censorship, the fight for National Sovereignty is in full effect. We also look at how the media continues to try and divide the people on identity and policy.

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Source: The War Room

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Climate-change protesters target London Stock Exchange and Canary Wharf

The Extinction Rebellion protest in London
A protester glues her hand to a train during the Extinction Rebellion protest in London, Britain April 25, 2019. REUTERS/Dylan Martinez

April 25, 2019

By Dylan Martinez and Emily G Roe

LONDON (Reuters) – Environmental activists glued themselves to the London Stock Exchange and climbed onto the roof of a train at Canary Wharf on the final day of protests aimed at forcing Britain to take action to avert what they cast as a global climate cataclysm.

The Extinction Rebellion group has caused mass disruption in recent weeks 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.

At London Stock Exchange’s headquarters on Thursday, six protesters dressed in black suits and red ties were blocking the revolving doors of the building.

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

“Extinction Rebellion to focus on the financial industry today,” the group said in a statement. The “aim is to demand the finance industry tells the truth about the climate industry and the devastating impact the industry has on our planet.”

Police said 1088 arrests have been made since the main protests began last Monday.

The group 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.

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.

(Writing by Andrew MacAskill; editing by Guy Faulconbridge)

Source: OANN

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Smollett damage control seen in internal email from Foxx's office as she defends 'alternative prosecution model'

An internal email from the office of Cook County State’s Attorney Kim Foxx, obtained by Fox News on Wednesday, asked assistant state's attorneys to dig for any examples to bolster Foxx’s claim that the dropped charges in the Jussie Smollett case weren’t as uncommon or shocking as they seemed.

The email read in part, “We are looking for examples of cases, felony preferable, where we, in (exercising) our discretion, have entered into verbal agreements with defense attorneys to dismiss charges against an offender if certain conditions were met...”

The email added, “Nobody is in trouble, we are just looking for further examples of how we, as prosecutors, use our discretion in a way that restores the victim…”

It was not clear who sent it, and exactly when it was sent. Foxx recused herself from the case last February but defended her office offering Smollett “an alternative prosecution model” in a series of interviews Wednesday.

An internal email from Kim Foxx’s office obtained by Fox News asked workers to dig for examples bolstering Foxx’s claim that the dropped charges in the Jussie Smollett case weren’t as uncommon or shocking as they seemed. (Getty, File)

An internal email from Kim Foxx’s office obtained by Fox News asked workers to dig for examples bolstering Foxx’s claim that the dropped charges in the Jussie Smollett case weren’t as uncommon or shocking as they seemed. (Getty, File)

Illinois Attorney Rod Drobinski told Fox News that because a special prosecutor was not appointed in the Smollett case, there were appearances of impropriety on behalf of Foxx's office. “Even the prosecutor said it was a strong case. That makes it even more unusual that they didn’t demand that he admit to what he did as part of this dismissal.”

CHICAGO FRATERNAL ORDER OF POLICE: 'BAFFLED' SMOLLETT CHARGES DROPPED, 'INTERESTED IN HAVING FEDERAL AUTHORITIES' LOOK INTO CASE

Foxx has been defending the decision by her staff to drop charges against the “Empire” actor after investigators revealed he allegedly staged a racist, anti-gay attack.

Foxx told Fox 32 on Wednesday she believed the matter was handled properly for a case of its kind. She pointed to Smollett forfeiting his $10,000 bond and doing community service.

“When we look at similarly situated people charged with this offense, without a background, I think in this case, justice was, um, appropriate,” Foxx told Fox 32 Chicago. “He was availed to an alternative prosecution model that anyone without these riches, without this fame, would also be availed to.”

Cook County prosecutors dismissed all charges but still maintained Smollett lied about being attacked in downtown Chicago on Jan. 29. And Mayor Rahm Emanuel has called the dropping of charges “a whitewash.”

Smollett’s attorney, Patricia Brown Holmes, said in a statement: “We are disappointed the local authorities have continued their campaign against Jussie Smollett after the charges against him have been dropped. The facts are clear.  The Assistant State’s Attorney appeared in court and dismissed the charges. Mr. Smollett forfeited his bond. The case is closed. No public official has the right to violate Mr. Smollett’s due process rights. Mr. Smollett, like every citizen, is innocent until proven guilty in a court of law. Mr. Smollett is entitled to the same Constitutional protections as any citizen charged by the government with a crime— including the right to speak freely about his innocence, the right to be viewed as innocent until proven guilty in a court of law, and the right to hold the State to its burden of proving him guilty beyond a reasonable doubt.  None of that has occurred in this case.”

The National District Attorneys Association, which claims to represent roughly 2,700 prosecutors’ offices around the country, heavily criticized Foxx in a statement to Fox News.

“First, when a chief prosecutor recuses him or herself, the recusal must apply to the entire office, not just the elected or appointed prosecutor. This is consistent with best practices for prosecutors’ offices around the country,” the statement began.

CLICK HERE FOR THE FOX NEWS APP

It added, “Second, prosecutors should not take advice from politically connected friends of the accused. Each case should be approached with the goal of justice for victims while protecting the rights of the defendant. Third, when a prosecutor seeks to resolve a case through diversion or some other alternative to prosecution, it should be done so with an acknowledgement of culpability on the part of the defendant. A case with the consequential effects of Mr. Smollett’s should not be resolved without a finding of guilt or innocence.”

The statement concluded: “Fourth, expunging Mr. Smollett’s record at this immediate stage is counter to transparency. Law enforcement will now not be able to acknowledge that Mr. Smollett was indicted and charged with these horrible crimes and the full record of what occurred will be forever hidden from public view. Finally, we believe strongly that hate crimes should be prosecuted vigorously but the burden of proof should not be artificially increased due to the misguided decisions of others.”

The Associated Press contributed to this report.

Source: Fox News National

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Goldman Sachs raises chances of no-deal Brexit after UK PM’s late reprieve

The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the NYSE in New York
The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 18, 2018. REUTERS/Brendan McDermid

March 22, 2019

LONDON (Reuters) – Goldman Sachs on Friday lowered its expectations of UK Prime Minister Theresa May’s Brexit deal getting ratified, and hiked its estimate of the chances of a “no-deal” exit from the European Union.

The changes to the bank’s previous predictions came after the EU agreed to grant the UK a short reprieve, until April 12, before Britain could lurch out of the EU if May fails to persuade lawmakers to back her withdrawal treaty.

“By postponing Brexit day by at least a fortnight, the UK and the EU have kept all options in play, for now,” wrote Goldman Sachs analysts.

They cut the chances of May’s deal being ratified to 50 percent from 60 percent, and raised the chances of a “no-deal” Brexit to 15 percent from 5 percent.

Goldman Sachs’ estimate of the probability of Brexit not happening at all remained unchanged, at 35 percent.

(Reporting by Helen Reid, Editing by Josephine Mason)

Source: OANN

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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)

Source: OANN

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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)

Source: OANN

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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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