Afghan President Karzai eyes active ‘retirement’

KABUL: When outgoing Afghan leader Hamid Karzai moves out of the presidential palace post-elections to take up residence next door, he will be relinquishing power but not influence, as he seeks an active public role in his "retirement" years.

Karzai is due to step down in the coming weeks after Saturday´s run-off election, paving the way for Afghanistan´s first democratic transfer of power. The elections are meant to signal a fresh start for Afghanistan after the 13-year rule of Karzai dominated by the US-led military intervention that followed the fall of the Taliban in 2001.Karzai´s relations with the US have collapsed, his regime is accused of massive corruption, and the country is still beset by the Taliban insurgency as NATO troops pull out and aid money declines.

But any prediction that the new president can turn the page decisively looks misplaced.

"The truth is that President Karzai built up such a vast patronage network that he has to stay influential to keep his people happy," said Bette Dam, a Dutch author who interviewed Karzai extensively for her forthcoming book on the president.

"He is looking for ways to continue (wielding) influence, and help his network of people to hold power. Many governors and government officials are in contact with him about how to achieve this."

Karzai, then aged only 44, became a global star when he was selected to lead Afghanistan after the ousting of the repressive 1996-2001 Taliban regime.

Charismatic, fluent in English, and dressed in a colourful cape and lambskin hat, Karzai wowed world leaders and convinced the United States that he was the perfect partner to tackle Islamist militancy after the 9/11 attacks.

’Tribal leader’
But such sentiments evaporated as the insurgency raged on for a decade, casualties mounted, billions of aid dollars were spent to limited effect, and Karzai launched increasingly bitter criticism of the US intervention.

Now, after serving the maximum two terms, he seems ready to take on a role somewhere between chief powerbroker and father of the nation.

"The US and others always thought Karzai was ´one of us´, and it is true that rather than a warlord, he is an English-speaking diplomat and a politician who can easily connect with the West," said Dam, an expert on the Pashtun tribal structures behind Karzai´s influence.

"But the way I got to know Karzai, he is more like a tribal leader with a lot of power deals to keep well maintained. He understands Westerners, but I wonder whether the West understands him and his tribal politics."

Karzai largely kept his vow to stay out of the ongoing election -- in public at least -- and it may be some time before his "retirement" plans become clear.

Much will depend on his successor -- either former foreign minister Abdullah Abdullah or ex-World Bank economist Ashraf Ghani, both of whom have worked under him but now have prickly relations with their former boss.

"We think he might want to be a ´emeritus professor´ type of figure," one senior US military figure who declined to be named told.

"We accept he is going to still be around, but we already moved on some time ago to looking at the new president."

Frankly, it will be a relief he is no longer in the palace.

After a series of bitter verbal spats with Washington, Karzai refused to sign an agreed text allowing a small force of US soldiers to stay in Afghanistan after 2014 to help with military training and counter-terrorism.

Disney eyes bigger plans with Shanghai

WASHINGTON: American entertainment giant Disney is set to pour an additional USD 800 million into its Disney Shanghai, its first theme park on the Chinese mainland, officials said today.

CEO Bob Iger said the deal, with Shanghai Shendi Group, will total an investment of USD 5.5 billion, and the additional funds will be to boost the park's capacity and attractions.

"Since we first broke ground in Shanghai we've been very impressed with the growth of China's economy, especially the rapid expansion of the middle class and the significant increase in travel and tourism," Iger said in a statement.

"Our accelerated expansion, including additional attractions and entertainment, will allow us to welcome more guests for a spectacular Disney experience on opening day."

Disney says it is decidedly upbeat about 330 million people being within a three-hour range of the park in Shanghai, the economic capital of the world's second largest economy.

Under terms of their deal, Shanghai Shendi Group will continue to hold a 57-per cent stake and Disney the other 43.

Started in 2011, Disneyland Shanghai will be the company's fourth theme park outside the United States after Paris, Tokyo and Hong Kong.

Asian shares mixed, eyes on Ukraine crisis

HONG KONG: Asian markets were mixed on Friday, with another upbeat lead from Wall Street overshadowed by concerns about the Ukraine crisis.

The euro maintained its momentum after a pick-up on Thursday fuelled by a healthy consumer confidence reading from Germany, while the dollar also edged higher against the yen.

Tokyo added 0.77 percent and Sydney was up 0.24 percent but Hong Kong dipped 0.55 percent, Seoul was 0.30 percent lower and Shanghai eased 0.10 percent.

US shares ended mostly higher on Thursday following another round of impressive corporate results as well as a second strong month of durable goods orders in March indicating the economy is rebounding from its winter slump.

The Nasdaq climbed 0.52 percent, boosted by a rally in Apple, which rose more than eight percent on better-than-expected earnings. The S&P 500 added 0.17 percent and the Dow was unchanged.

However, traders remain on edge over the situation in Eastern Europe. Russia on Thursday ordered new military exercises on the border of Ukraine and warned of "consequences" after Kiev launched a deadly assault against pro-Kremlin rebels occupying a flashpoint town.

Later US Secretary of State John Kerry accused Russia of a "full-throated effort to actively sabotage the democratic process through gross external intimidation" and described the military exercises as "threatening".

He also said Moscow had broken an agreement signed last week in Geneva aimed at easing tensions, adding that refusal to take any steps to end the crisis would "not just be a grave mistake, it will be an expensive mistake".

The veteran diplomat added "we are ready to act" as Washington tees up new economic sanctions against Moscow.

On currency markets the euro edged up to $1.3833 and 141.65 yen from $1.3830 and 141.53 yen in New York, boosted by news that the Ifo economic institute´s closely watched German business climate index rose in April following a dip in March.

The dollar fetched 102.41 yen, against 102.32 yen in New York late Thursday.

Traders were largely unmoved by data showing Japanese inflation rose for a 10th straight month in March, with rising energy costs behind the increase.

Oil prices rose. New York´s main contract, West Texas Intermediate for June delivery, was up seven cents at $102.01 and Brent North Sea crude for June climbed 16 cents to $110.49.

Gold fetched $1,291.96 an ounce at 0240 GMT compared with $1,271.96 on Thursday. (AFP)

Asian shares mixed, eyes on Ukraine crisis

HONG KONG: Asian markets were mixed on Friday, with another upbeat lead from Wall Street overshadowed by concerns about the Ukraine crisis.

The euro maintained its momentum after a pick-up on Thursday fuelled by a healthy consumer confidence reading from Germany, while the dollar also edged higher against the yen.

Tokyo added 0.77 percent and Sydney was up 0.24 percent but Hong Kong dipped 0.55 percent, Seoul was 0.30 percent lower and Shanghai eased 0.10 percent.

US shares ended mostly higher on Thursday following another round of impressive corporate results as well as a second strong month of durable goods orders in March indicating the economy is rebounding from its winter slump.

The Nasdaq climbed 0.52 percent, boosted by a rally in Apple, which rose more than eight percent on better-than-expected earnings. The S&P 500 added 0.17 percent and the Dow was unchanged.

However, traders remain on edge over the situation in Eastern Europe. Russia on Thursday ordered new military exercises on the border of Ukraine and warned of "consequences" after Kiev launched a deadly assault against pro-Kremlin rebels occupying a flashpoint town.

Later US Secretary of State John Kerry accused Russia of a "full-throated effort to actively sabotage the democratic process through gross external intimidation" and described the military exercises as "threatening".

He also said Moscow had broken an agreement signed last week in Geneva aimed at easing tensions, adding that refusal to take any steps to end the crisis would "not just be a grave mistake, it will be an expensive mistake".

The veteran diplomat added "we are ready to act" as Washington tees up new economic sanctions against Moscow.

On currency markets the euro edged up to $1.3833 and 141.65 yen from $1.3830 and 141.53 yen in New York, boosted by news that the Ifo economic institute´s closely watched German business climate index rose in April following a dip in March.

The dollar fetched 102.41 yen, against 102.32 yen in New York late Thursday.

Traders were largely unmoved by data showing Japanese inflation rose for a 10th straight month in March, with rising energy costs behind the increase.

Oil prices rose. New York´s main contract, West Texas Intermediate for June delivery, was up seven cents at $102.01 and Brent North Sea crude for June climbed 16 cents to $110.49.

Gold fetched $1,291.96 an ounce at 0240 GMT compared with $1,271.96 on Thursday. (AFP)

Dollar holds steady, eyes on Obama Asia tour

TOKYO: The dollar held steady against the yen in Asia on Wednesday, with traders looking for developments in US-Japan free trade talks as President Barack Obama starts an Asian tour.

In Tokyo midday trade, the greenback changed hands at 102.57, a touch down from 102.60 yen in New York Tuesday afternoon, while the euro bought $1.3809 and 141.66 yen, against $1.3804 and 141.65 yen.

Akira Moroga, manager of forex product group of Aozora Bank, said with Obama due in Tokyo later Wednesday investors will be keeping an eye on signs of progress in the vast Trans-Pacific Partnership (TPP) trade pact.

Work on the deal has stalled recently, with Washington and Tokyo at loggerheads over tariffs on Japanese agricultural products. Any signs of progress could help boost the Nikkei and stoke yen selling, Moroga said.

Also on Wednesday, Bank of Japan governor Haruhiko Kuroda repeated his view that there was no imminent need to expand its stimulus programme to reach an inflation target of 2.0 percent next year.

"At this point, there is nothing more to say than we will continue the quantitative and qualitative easing programme in its current form until we achieve our goal to generate stable 2.0 percent inflation," Kuroda told a parliamentary session.

The Australian dollar fell to 93.14 US cents from 93.75 cents after data showed Australian inflation was lower than expected in the first three months of the year. The figures raise the possibility the country´s central bank will lower interest rates to boost the faltering economy.

Also on investors´ radars is the crisis in Ukraine, which on Tuesday relaunched military operations against pro-Kremlin separatists, hours after US Vice President Joe Biden ended a two-day Kiev visit in which he warned Russia over its actions in the former Soviet republic.

US eyes ’talk and trade’ to repair relations with India

NEW DELHI: The first senior US government official to visit India after a damaging diplomatic row said Thursday the two countries should focus on "talk and trade" as they look to get their partnership back on track.
In December, Indian consulate official Devyani Khobragade was arrested and strip-searched in New York on suspicion of visa fraud, enraging Indian authorities who claimed that she had diplomatic immunity.
The incident fuelled a bitter row between the world's two largest democracies, which have overcome Cold War suspicions to embrace each other as trading partners and strategic allies in recent years.
Nisha Desai Biswal, US assistant secretary of state for South and Central Asian Affairs, acknowledged problems in a speech in the Indian capital but urged both sides to overcome their differences.
"We're addressing these concerns head-on as good partners do," she said, adding: "The solution is to talk and trade."
The lack of transparency in Indian tax laws, red tape, and weak protection of intellectual property rights were discouraging investments in India, Biswal said as she listed a series of US concerns.
She also highlighted that India has ranked a dismal 134 out of 189 countries in world rankings for hospitable places to "invest and start a new business".
Annual trade between India and the US currently stands at $100 billion but the two sides have pledged to increase this figure five-fold over the next decade.
While highlighting India's strategic importance, Biswal said the US was eager for better relations between the South Asia giant and its neighbours to the west -- Pakistan and Afghanistan -- and central and southeastern Asia.
"In the coming years, the most important step India can take to promote greater connectivity is to normalise trade with Pakistan," she said.
Meanwhile, a leading Indian business body hit out at growing pressure from within the US for Washington to sanction India over alleged drug patent and other intellectual property rights abuses.
The Federation of Indian Chambers of Commerce and Industry (FICCI) said the country adhered fully to international treaty obligations to safeguard intellectual property rights.
The US Chamber of Commerce last month urged the Office of the United States Trade Representative (USTR) to label India a "Priority Foreign Country", a classification given to those seen as the worst at safeguarding intellectual property rights.
The chamber's move was designed to "create pressure on India" to increase intellectual property protection beyond the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement administered by the World Trade Organization, the FICCI said.
The US campaign "aims to protect private corporate interests over national interests", added the Indian trade body.
India's laws are tougher on drug patent-holders than those in many other countries as it seeks to make medicines more affordable for its vast poor population.
But foreign drugmakers have accused India of failing to respect intellectual property rights so that it can promote its own generics industry -- a charge New Delhi strongly denies.

Ireland eyes new big player to boost banking sector

DUBLIN: Ireland would like a "significant" new bank with a big balance sheet to enter its lending market this year to drive competition in the diminished sector, finance minister Michael Noonan said on Saturday.

Ireland's banking crisis, which helped push the country into an European Union-International Monetary Fund bailout that it completed last year, led to the closure or merger of half of the country's domestic banks and the exit of a slew of foreign lenders.

It has also left the country with only three SME lenders of scale, state-owned Allied Irish Banks, Royal Bank of Scotland's Ulster Bank and Bank of Ireland, which counts the Irish state as a 14 percent shareholder. "We are talking about a bank with a big balance sheet.

A third significant player," Noonan told reporters at his Fine Gael party's annual conference after he said in a speech that he would like to see a third viable bank in the country.

"I'm exploring it. I know there are people interested. In the course of this year, it would be nice to get these things done before banking union," he said, referring to the European Union's plan for a more integrated banking system.

Noonan added that he absolutely wanted mortgage lender permanent tsb (ptsb), currently the third domestic-owned bank in the country behind Bank of Ireland and AIB, to remain part of the banking sector.

Noonan's comments come after Flip, a proposed European bank, kicked off formal fundraising to raise 100 million euros to allow them cash in on Ireland's newly-concentrated banking market and slowly recovering economy.

However Noonan said he was looking for a much bigger lender than Flip and ptsb to enter the market and that he was sending a signal out that there is a space to do so.

"They were talking about 100 million (euros), 100 million wouldn't capitalise a bank," Noonan said, referring to the Flip proposal. "The amount of money they were talking about was far too small."

"There's a general agreement to the principle that the two pillar banks, Bank or Ireland and AIB, are insufficient as players in the market to give the kind of competition that a growing economy might need."