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Texas police officer, truck driver save teenager threatening to jump from overpass

A police officer and truck driver in Texas are being hailed as heroes after helping to save a boy who was threatening to jump from a bridge during the morning rush hour on Wednesday.

The Arlington Police Department said in a Facebook post the incident happening at the Kelly Elliott Road bridge over Interstate 20 after authorities were alerted about a teenager who was contemplating jumping.

"We wanted to highlight a call where Motor Officer Deric Sheriff came up with an ingenious plan to assist during a crisis intervention this morning," the department said.

VIRGINIA POLICE DOG DUBBED HERO AFTER FINDING CHILDREN LOST IN WOODS 'WITHIN 15 MINUTES'

Sheriff, a 17-year veteran of the department, was working a traffic stop nearby when he heard the call and rushed to help. As Sheriff and another officer tried to stop traffic on the busy highway, he directed a big rig to stage under the overpass.

“I was trying to find a tall enough semi-trailer that would work because there were a couple of flatbeds that would not have been of any use,” Sherriff told FOX4.

The officer was looking to reduce the likelihood that the teen would be seriously injured if he jumped by positioning several trucks with trailers under the bridge.

A police officer in Texas directed a semi-truck to under an overpass on Interstate 20 where a teenager was threatening to jump.

A police officer in Texas directed a semi-truck to under an overpass on Interstate 20 where a teenager was threatening to jump. (Arlington Police Department)

Body camera footage released by the department showed Sheriff's exchange with Dwayne Crawford, the driver of an 18 wheeler.

“As soon as I went under and started under the bridge, I looked up. The young man looks down at me, and I thought, ‘Oh, man. He’s serious,’” Crawford told FOX4. “As soon as I got under the bridge with my tractor and got the trailer under it, I felt a thump.”

TEXAS INFANT’S BODY FOUND IN FLOWER POT AT CEMETERY, POLICE SAY

As the first big rig was getting into position, the teen jumped and landed on top of the trailer.

“I feel good about it,” Crawford said. “The young man’s going to get help. The bottom line: he needed help.”

CLICK HERE FOR THE FOX NEWS APP

Arlington Police Chief Will Johnson praised Sheriff's actions on Twitter.

"APD Motor Officer Deric Sheriff was instrumental in directing the truck driver before the teen jumped & later landed on the trailer," he wrote. "Excellent crisis intervention to help this teen."

Sheriff, who has six children, told FOX4 his idea to save the teenager came from his previous job as a truck driver. He also said he'll never forget saving the boy.

“That’s the whole reason 99.9 percent of us got in this job is to make a difference and to help,” he told FOX4.

If you are in crisis, please call the National Suicide Prevention Lifeline at 1-800-273-TALK (8255), or contact the Crisis Text Line by texting TALK to 741741.

Source: Fox News National

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Report: O'Rourke May Be Leaning Toward Presidential Run

Former Democratic Rep. Beto O’Rourke, D-Texas, appears to be leaning toward making a run for the White House in 2020, Dallas News is reporting.

O’Rourke has been deciding whether to run in the Democratic primaries or challenge Republican Sen. John Cornyn.

Noting his recent comments and out-of-state trips, the website said O’Rourke appears to be aiming at the White House rather than Cornyn. But he is still remaining coy about his intentions.

"I'm trying to figure out how I can best serve this country, where I can do the greatest good for the United States of America, so yeah, I’m thinking through that, and it, you know, may involve running for the presidency, it may involve something else," O'Rourke was quoted by The Texas Tribune while accepting the El Pasoan of the Year award on Tuesday.

But the Dallas News noted he recently made a speaking engagement in Illinois and at the University of Wisconsin. And he also spoke at a Milwaukee college. The website pointed out Wisconsin is a presidential battleground President Donald Trump won in 2016.

O’Rourke narrowly lost to incumbent Sen. Ted Cruz, R-Texas in November. During the campaign he referred to Cruz as an absentee senator, who was not fulfilling his duties to Texas, according to Dallas News.

But, the website said he does not feel the same way about Cornyn, who he has worked with in the past.

O’Rourke met with former President Barack Obama back in November, but has insisted he still has not made up his mind whether to make a run for the White House.

Source: NewsMax Politics

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Pope Francis lifts suspension on Nicaraguan priest, poet

The Vatican's ambassador to Nicaragua says Pope Francis has lifted the suspension imposed in 1983 on Nicaraguan priest and poet Ernesto Cardenal.

A statement from nuncio Waldemar Stanislaw Sommertag Monday says Francis removed the canonical censures imposed on Cardenal. It says the decision came after the 94-year-old Cardenal recently made the request through the nuncio.

Pope John Paul II suspended Cardenal from his priestly duties because he had become culture minister in the leftist Sandinista government of Daniel Ortega after the rebels toppled dictator Anastasio Somoza. John Paul II said that priests could not assume political posts.

Monday's statement noted that Cardenal had respected the suspension for 35 years and long ago abandoned politics.

Cardenal's personal assistant Luz Marina Acosta says Sommertag celebrated Mass with the ailing Cardenal on Sunday.

Source: Fox News World

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Women’s tournament helps Augusta National erase stain

Jennifer Kupcho of the U.S. celebrates a birdie putt on the 18th hole to win the inaugural Augusta National Women's Amateur championship at Augusta National Golf Club in Augusta
Jennifer Kupcho of the U.S. celebrates a birdie putt on the 18th hole to win the inaugural Augusta National Women's Amateur championship at Augusta National Golf Club in Augusta, Georgia, U.S., April 6, 2019. REUTERS/Brian Snyder

April 7, 2019

By Steve Keating

AUGUSTA, Georgia (Reuters) – With the successful staging of the Augusta National Women’s Amateur on Saturday, the home of the Masters removed a little more of the stain left by decades of gender discrimination.

But more polish will be needed if one of the world’s most exclusive clubs hopes to clean the slate entirely.

“You are now part of history of Augusta National along with all the great Masters champions who have been right here in this Butler Cabin,” said Augusta National chairman Fred Ridley as he presented the winner’s trophy to Jennifer Kupcho.

The fact is, however, that women have long been a part of the history of Augusta National, albeit the dark chapter of exclusion.

Founded by Bobby Jones and Clifford Roberts and opened for play in January 1933, Augusta National was a private sanctuary for some of the world’s most powerful white men and for decades immune to outside influences and pressures.

Ron Townsend became the first African-American member in 1990 but it would be another two decades before women were admitted with former U.S. Secretary of State Condoleezza Rice and financier Darla Moore allowed through the doors in 2012.

While the pace remains glacial, change has nonetheless crept into the Augusta DNA.

Club membership is top secret but it is believed that four to six of the 300 or so members are women and have one of the iconic green jackets hanging in their lockers.

Augusta National also hosts the hugely popular Drive, Chip and Putt Championship for both boys and girls and has now put its name and branding muscle to a women’s tournament.

The images of women competing at a club where they had previously been denied entry was a powerful one that was universally applauded.

Some, like activist Martha Burk, who in 2003 led a protest against Augusta National’s men only policy, remain skeptical. She described the event as a “baby step” and “tokenism”.

Certainly it was an emotional day for golfing greats Nancy Lopez, Pak Se-ri, Lorena Ochoa and Annika Sorenstam, who took part in a ceremonial tee shot then watched as 30 young women seized an opportunity that had never been open to them.

“When we were talking I was tearing up,” said Lopez. “I was trying to hold back tears because there’s so much pride involved in this.

“It was just a tremendous feeling to be there and represent amateur golf, professional golf and what golf stands for here at Augusta National.”

“GREAT MOTIVATION”

There was no downplaying the significance of the moment for Lorena Ochoa, who compared it to golf being played at the Olympics.

“It’s going to be a great motivation for the new generations,” she said.

“This is as big as a tournament that you have in your mind — the U.S. Amateur, or the Olympics — that you dream that you want to win.”

Without the Augusta National name attached to it, a tournament of this type would have been one watched by no more than a handful of family and friends.

Instead women’s amateur golf on Saturday found itself in the sporting spotlight.

The final round was broadcast live on national television and a gallery worthy of a major tournament descended on the course to witness a bit of history.

While the golfing world was all but silent in 2003 when Burk was pushing for change, top men’s players were squarely behind the women on Saturday.

Masters champion Bubba Watson, wearing his green jacket, watched from the first tee, while others like Rory McIlroy and Jack Nicklaus offered support on social media.

While Augusta has put its name to the tournament, only one round was played at the iconic course and the question remains as to what happens next for women’s golf and Augusta National.

“This is an historic moment, and hopefully they will continue to carry the torch, and who knows what opportunities will come 10, 15 years from now,” said Sorenstam. “This is just the beginning.

“We are trying to increase the interest in the game of golf, and tournaments like this will certainly do it.

“I’ve never seen so much exposure for a tournament, and to see these girls come up here and step it up and have so much fun and enjoy it, I mean, this is a dream come true.”

(Editing by Nick Mulvenney)

Source: OANN

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Iran’s Zarif warns of consequences of U.S. policy on Revolutionary Guards: IRNA

FILE PHOTO: Iranian Foreign Minister Mohammad Javad Zarif speaks during a news conference with Iraqi Foreign Minister Mohamed Ali Alhakim, in Baghdad
FILE PHOTO: Iranian Foreign Minister Mohammad Javad Zarif speaks during a news conference with Iraqi Foreign Minister Mohamed Ali Alhakim, in Baghdad, Iraq, March 10, 2019. REUTERS/Khalid Al-Mousily/File Photo

April 14, 2019

LONDON (Reuters) – Iranian Foreign Minister Mohammad Javad Zarif said on Sunday he will send letters to the foreign ministers of all countries to notify them that the U.S. designation of the Revolutionary Guards as a terrorist organization will have consequences.

Zarif was quoted by the state news agency IRNA as saying that he has also sent letters to United Nations Secretary-General Antonio Guterres and the United Nations Security Council to protest against “this illegal U.S. measure”.

(Reporting by Bozorgmehr Sharafedin; Editing by Jan Harvey)

Source: OANN

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Report: Romo seeking $10 million a year from CBS

FILE PHOTO - Dallas Cowboys quarterback Tony Romo takes the stage to introduce a performance by Dieks Bentley at the 50th Annual Academy of Country Music Awards in Arlington
FILE PHOTO - Dallas Cowboys quarterback Tony Romo takes the stage to introduce a performance by Dieks Bentley at the 50th Annual Academy of Country Music Awards in Arlington, Texas April 19, 2015. REUTERS/Mike Blake

March 27, 2019

Tony Romo could become the first football analyst to earn $10 million per year.

Sources told the Sporting News that Romo’s team is seeking a contract of “eight figures” to stay as the No. 1 football analyst as CBS. He is under contract to the network through the 2019 season at $4 million annually.

Romo, the former Dallas Cowboys quarterback, retired after the 2016 season and joined Jim Nantz in the booth at CBS in 2017, replacing Phil Simms.

In the 2018 postseason, the 38-year-old Romo became a star for his ability to assess the game situation and predict the plays coaches would call right before they did.

The day after the AFC championship game in January, when Romo seemed to be reading the minds of coaches Bill Belichick and Andy Reid, the New York Post reported that CBS likely would give Romo a “substantial” raise

The Post said John Madden, who bounced around the networks, earned $8 million. Troy Aikman is under contract to Fox for $7.5 million, and Jon Gruden made $6.5 million at ESPN for his appearance on “Monday Night Football” and other platforms before leaving to coach the Raiders, the Sporting News said.

–Field Level Media

Source: OANN

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Trump says he’s prepared to close Mexico border if necessary

FILE PHOTO: President Donald Trump participates in the Prison Reform Summit
FILE PHOTO: U.S. President Donald Trump speaks during the 2019 Prison Reform Summit and First Step Act Celebration at the White House in Washington, U.S., April 1, 2019. REUTERS/Yuri Gripas

April 2, 2019

WASHINGTON (Reuters) – President Donald Trump said on Tuesday he was prepared to close the U.S. southern border if necessary but that Mexico has apprehended thousands of people in recent days and its actions have made a big difference in the immigration situation.

Trump threatened on Friday to close the border with Mexico this week unless Mexico took steps to help the United States with illegal immigration, a move which had threatened to overload U.S. ports of entry in the region.

The administration softened its tone on the issue on Tuesday, saying Mexico was taking greater responsibility for dealing with the immigration flows.

“They have started to do a significant amount more. We’ve seen them take a larger number of individuals” and hold those who have asylum claims in Mexico while they are being processed in the United States, White House spokeswoman Sanders told reporters at the White House.

“We’ve also seen them stop more people from coming across the border so that they aren’t even entering into the United States. So those two things are certainly helpful and we’d like to see them continue,” Sanders said.

Trump hinted at a softening earlier in a Twitter post on Tuesday. “After many years (decades), Mexico is apprehending large numbers of people at their Southern Border, mostly from Guatemala, Honduras and El Salvador,” he said.

He also told reporters at the White House he was still prepared to do that if necessary but that Mexico had apprehended thousands of people in recent days, having a big impact on the border situation.

(Reporting by Steve Holland; Writing by David Alexander; Editing by Alistair Bell)

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)

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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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