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No-deal Brexit is ‘simply crazy’: Irish EU commissioner

FILE PHOTO: European Commissioner for Agriculture and Rural Development Phil Hogan holds a news conference on the CAP post-2020 in Brussels
FILE PHOTO: European Commissioner for Agriculture and Rural Development Phil Hogan holds a news conference on the Common Agricultural Policy (CAP) post-2020, in Brussels, Belgium June 1, 2018. REUTERS/Yves Herman/File Photo

April 8, 2019

BRUSSELS (Reuters) – A ‘no-deal’ Brexit makes no sense and is the worst possible Brexit outcome, European Agriculture Commissioner Phil Hogan said on Monday.

Asked about comments made by some in the British Conservative Party, such as the party’s leader in the House of Commons, that a no-deal Brexit would be “not nearly as grim” as many people think, Irishman Hogan replied:

“Despite the madness of Brexit, I still believe that common sense might prevail. I hope it does. No deal makes no sense. It’s simply crazy. There’s too much at stake.”

“There’s no such thing as a good outcome in relation to Brexit, but I believe that a no-deal Brexit is the worst of all outcomes.”

(Reporting by Philip Blenkinsop; editing by Francesco Guarascio)

Source: OANN

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Brexit options: Stick close to EU, crash out, think again

Britain is running out of time and options for Brexit.

U.K. lawmakers have three times rejected the divorce deal struck between Prime Minister Theresa May's government and the European Union. They also voted on a series of alternatives, from leaving the bloc without a deal to holding second referendum on Britain's EU membership.

All the options were defeated. The U.K. now faces a deadline of April 12 to present the EU with a new Brexit plan or crash out of the bloc that night.

British lawmakers plan another round of votes Monday to see whether they can come to an agreement on a way for Britain to leave the bloc. And May hasn't given up hope of persuading Parliament to back her Brexit deal if she asks a fourth time.

A look at the most likely options:

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EU CUSTOMS UNION

The option that came closest to success in last week's "indicative votes" in Parliament called for Britain to remain in a customs union with the EU after it leaves.

May has always ruled that out, because sticking to EU trade rules would limit Britain's ability to forge new trade deals around the world.

But it would ensure U.K. businesses can continue to trade with the EU, and would solve many of the problems that bedevil May's deal. In particular, it would remove the need for customs posts and border checks between Ireland and Northern Ireland.

The option has been put forward again for a vote on Monday, alongside variations including remaining in the customs union and the EU's single market for goods and services, and staying in the single market but not the customs union. It's a confused picture not guaranteed to produce a majority for anything.

But if a customs union pledge was agreed by Parliament, it would likely be welcomed by the EU and would allow Britain to leave the bloc in an orderly fashion in the next few months.

May, however, is under pressure from pro-Brexit members of her government not to tack toward a softer Brexit.

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NEW BREXIT REFERENDUM

Another option with significant support is for any Brexit deal to be put to public vote in a "confirmatory referendum." The idea came within 27 votes of winning last week, and is backed by opposition parties, plus some of May's Conservatives.

Her government has ruled out holding another referendum on Britain's EU membership, saying voters made their decision to leave the bloc in 2016.

But with Parliament and May's Cabinet divided, a new plebiscite could be seen as the only way to move forward.

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NO DEAL

Parliament has voted repeatedly to rule out a no-deal Brexit — but that remains the default position unless a deal is approved, Brexit is canceled or the EU grants Britain another extension.

Most politicians, economists and business groups think leaving the world's largest trading bloc without an agreement would be disastrous. It would impose tariffs on trade between Britain and the EU, bring customs checks that could cause gridlock at ports, and might spark shortages of essential goods.

Brexiteer lawmakers in Britain's governing Conservative Party dismiss this as "Project Fear" and argue for what they call a "clean Brexit." They have urged May not to compromise and to ramp up preparations to leave the bloc without an agreement on April 12.

May has said repeatedly she does not believe Parliament would allow a no-deal Brexit to happen.

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LONG DELAY OR NO EXIT

The alternative to a "no-deal" departure is to delay Brexit for at least several months, and possibly more than a year, while Britain sorts out the mess. The EU is frustrated with the impasse, and has said it will only grant another postponement if Britain comes up with a whole new Brexit plan.

The bloc is reluctant to have a departing Britain participate in the May 23-26 European parliament elections, but that would have to be done if Brexit is delayed. Still, EU Council President Donald Tusk has urged the bloc to give Britain a Brexit extension if it plans to change course.

A long delay raises the chances of an early British election, which could rearrange Parliament and break the political deadlock. It also keeps alive the possibility that Britain does not leave the bloc.

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MAY'S BREXIT DEAL

After almost two years of negotiations, Britain and the EU struck a divorce deal in November, laying out the terms of Britain's departure from the bloc and giving a rough outline of future relations.

But it has been roundly rejected by lawmakers on both sides of Britain's Brexit divide. Pro-Brexit lawmakers think it keeps Britain too closely tied to EU rules. Pro-EU legislators argue it is worse than the U.K.'s current status as an EU member.

Parliament has thrown it out three times, although the latest defeat, by 58 votes, was the narrowest yet. It was rejected even after May won over some pro-Brexit lawmakers by promising to quit if it was approved.

May is considering one last push, pitting her deal against whatever is agreed upon by Parliament, in hopes that hold-out Brexiteers would back her deal rather than a softer option.

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Follow AP's full coverage of Brexit at: https://www.apnews.com/Brexit

Source: Fox News World

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Deloitte quits as Ferrexpo auditor after charity inquiry, shares plunge

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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Minnesota dentist charged with setting fire to neighbor's boathouse after footprints led to his home

A Minnesota dentist who police say eventually admitted to torching a neighbor’s dilapidated boathouse reportedly “looked as if he were a deer in headlights” after investigators indicated that they were onto him.

The claim about Creekview Dental CEO John Michael Haag, found in a criminal complaint filed in St. Croix County Circuit Court, came after police on Feb. 2 traced a set of footprints from the charred-out boathouse back to Haag’s home near Bass Lake in New Richmond, Wisconsin.

JEHOVAH'S WITNESS HALLS IN WASHINGTON STATE TARGETED BY ARSON ATTACKS, AT LEAST 5 SINCE MARCH

“The tracks angled every ten feet or so as if the suspect was turning around and checking behind him,” one deputy wrote in the complaint, according to the Twin Cities Pioneer Press.

The boathouse is said to be at the center of a dispute between its owner and a local lake association group, in which Haag is the treasurer. In draft meeting minutes from June 2018, Haag brought up state planning guidelines as to how “ideally things should ‘blend'” along the edges of the lake and indicated a desire to remove the structure, the newspaper added.

FIGHT OVER CHEEZ-ITS LEADS TO GEORGIA HOUSE ARSON, REPORT SAYS

Wallace Cudd, the boathouse’s owner, told the Twin Cities Pioneer Press that it has been falling apart over the past few years and after working with the Wisconsin Department of Natural Resources, it was agreed that he would have until the end of this winter to get rid of the boathouse.

But on Feb. 2, Cudd says he had to wake up around 2:15 a.m. to extinguish the fire out of concerns that it would “spread to trees and other properties” in the area.

Haag initially denied that he started the inferno, but later confessed after police visited his house to obtain information for a warrant, the newspaper says.

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“It was me, I did it, I started the fire,” Haag reportedly said to officers before handing over a jacket, balaclava, and boots that matched the pattern on the footprints leading to his home, among other items he says he wore on the night of the blaze. Two open gas cans also were found.

New Richmond is near Wisconsin's border with Minnesota. On the website for Haag's dental business, located in Woodbury, Minnesota, it says he "enjoys the opportunity to make a difference in people’s lives by helping them smile with confidence."

Haag now is set to appear March 8 for a preliminary court hearing and faces a maximum sentence of 40 years in prison and a $100,000 fine if convicted on an arson charge.

Source: Fox News National

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Social media services blocked in Sri Lanka after deadly attacks, group says

Sri Lankan authorities have blocked most social media services in the country following attacks that killed more than 200 people on Easter, according to officials and a group that monitors Internet censorship.

Sri Lankan officials said Sunday they were blocking social media temporarily to curtail the spread of false information and ease tensions until their investigation is concluded.

POPE CELEBRATES EASTER SUNDAY AMID BLOODSHED IN SRI LANKA

More than 200 people were killed and hundreds more wounded in eight bomb blasts that rocked churches and luxury hotels in or near Sri Lanka’s capital on Easter Sunday — the deadliest violence the South Asian island country has seen since a bloody civil war ended a decade ago.

Defense Minister Ruwan Wijewardena described the bombings as a terrorist attack by religious extremists, and police said 13 suspects were arrested, though there was no immediate claim of responsibility. Wijewardena said most of the blasts were believed to have been suicide attacks.

“People were being dragged out,” said Bhanuka Harischandra, of Colombo, a 24-year-old founder of a tech marketing company who was going to the city’s Shangri-La Hotel for a meeting when it was bombed. “People didn’t know what was going on. It was panic mode.”

He added, “There was blood everywhere.”

The NetBlocks observatory said it detected an intentional nationwide blackout of popular services including Facebook, YouTube, WhatsApp and Instagram.

The group said the country also was blocking messaging apps.

Facebook said in a statement that people rely on its services to communicate with loved ones and it was committing to maintaining service in the country.

Harischandra, who witnessed the attack at the Shangri-La Hotel, said there was “a lot of tension” after the bombings, but added: “We’ve been through these kinds of situations before.”

He said Sri Lankans are “an amazing bunch” and noted that his social media feed was flooded with photos of people standing in long lines to give blood.

NetBlocks director Alp Toker said such post-attack shutdowns are often ineffective and can end up creating an information vacuum that's easily exploited.

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“Having experienced the open and welcoming Sri Lanka during my last week traveling through the country, I had a sense that the country was turning the corner, and in particular those in the tourism industry were hopeful for the future,” said Peter Kelson, a technology manager from Sydney.

“Apart from the tragedy of the immediate victims of the bombings, I worry that these terrible events will set the country back significantly,” he said.

The Associated Press contributed to this report.

Source: Fox News World

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Missouri official investigates day care 'fight club' claims

Missouri Attorney General Eric Schmitt is launching his own investigation of a St. Louis day care center where two workers were accused of facilitating a "fight club" among small children.

The announcement Wednesday came two weeks after St. Louis prosecutors dropped criminal charges against the former Adventure Learning Center workers.

Schmitt's office says it served the day care with a "civil investigative demand" Tuesday to get the center to turn over documents.

The day care's attorney did not immediately respond to a message for comment.

Tena Dailey and Mickala Guliford were charged in November with endangering the welfare of a child after video surfaced from December 2016 showing small boys punching each other. The case went to a grand jury before charges were dropped, with prosecutors citing "insufficient evidence."

Source: Fox News National

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One of world’s rarest whale species has mini-baby boom off New England coast

An endangered species of whale is experiencing a mini-baby boom in New England waters, researchers on Cape Cod have said.

The North Atlantic right whale is one of the rarest species of whale on the planet, numbering only about 411. But the Center for Coastal Studies in Provincetown, Mass.,  said Friday its aerial survey team spotted two mom and calf pairs in Cape Cod Bay a day earlier. That brings the number seen in New England waters alone this year to three.

145 WHALES DIE ON NEW ZEALAND ISLAND

That's big news because the whale's population has been falling, and no calves were seen last year. In all, seven right whale calves have been seen so far this year.

The whales give birth off Georgia and Florida in the winter and travel to feeding grounds off New England in the early spring, including the Gulf of Maine, a body of water that touches Massachusetts, New Hampshire, Maine and Canada.

Cape Cod Bay is part of the Gulf of Maine and is a critically important feeding ground. The animals often feed close to shore, providing watchers on land "unbeatable views of one of the rarest of marine mammals," the Center for Coastal Studies said in a statement.

CLICK HERE FOR THE FOX NEWS APP

It's illegal to get within 1,500 feet of the animals without a federal research permit, so boaters are discouraged from attempting to get close to the whales.

Source: Fox News National

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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)

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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)

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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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