Iran Push to Recover Bad Debt Highlights Black Hole but Signals New Era

Iranian president Hassan Rouhani.Reuters

Iran's push to recover bad debts shows the extent of potentially corrupt lending practices under the previous administration.

A reported surge in underperforming bank loans made during the tenure of Mahmoud Ahmadinejad's presidency is being interpreted as an indication that loans were made as political favours, Reuters reported. The increase in bad loans also ties in with the period of tougher US economic sanctions on Iran.

President Hassan Rouhani's administration said bad debt in the country's banking system had reached a critical level and blamed political cronyism under Ahmadinejad.

According to central bank statistics, 15.6% of loans in state and private banks were at risk of not being recovered.

Iranian authorities have launched a bid to recover part of the $33bn outstanding. A list of 575 names of the largest defaulters was handed to the judiciary.

Vice-president Eshagh Jahangiri said bad debt in the banking system amounted to 820 trillion rials ($33bn), the official IRNA news agency said. That would mark a twelvefold increase in non-performing bank loans from 70 trillion rials in 2005, when Ahmadinejad took office, Hamshahri newspaper reported.

Central bank governor Valiollah Seif said that bad debt had reached 15.6% of total bank loans. That figure would put Iran in similar territory to Italy in terms of percentage of bad debt according to World Bank data.

"The banking system is in a critical situation, bordering alarm," Jahangiri said. He blamed soaring bad debt on an "upsurge in rent-seeking" – hinting at cronyism under Ahmadinejad.

While the issue highlights an economic black hole in Iran's banking system, some analysts believe the move signals a turning point for Iran.

Tehran-based economist Rocky Ansari said that the move suggested a collaborative political climate exists in Rouhani's Iran.

"There is a lot of determination between the government, parliament and judiciary to go after these people," Ansari told Reuters.

"The environment is ripe for them to cooperate closely."

Turkey's Erdogan Eyes Putin-Style Presidential Bid

Turkey's first directly elected president will be a more powerful figure than the current largely ceremonial role, PM Recep Tayyip Erdogan saidReuters

The ruling party of Turkey's prime minister Recep Tayyip Erdogan has started consultations over its presidential choice during a three-day camp in a luxury hotel amid tight security.

With Erdogan locked in a tit-for-tat war against the movement of Fethullah Gulen, an influential cleric in self-exile in the US, the issue of Turkey's presidency and who wins it has even more significance for the future of the country.

The energetic prime minister has flagged that he will express his intentions this month. Those with experience of his increased authoritarian style, which ignited the Gezi Park protests last year, suggest that he might be seeking a Putin-style presidential bid.

Erdogan is barred by the rules of his party from standing for a fourth term as prime minister and, although the party could amend those rules, he has made little secret of his ambition to become president.

Turkey's presidency, currently held by the dovish Abdullah Gul, has always been largely ceremonial but this August elections will see the head of state elected directly by the people for the first time.

It is true that Turkish prime ministers are the ones who pull the strings in government committees, command MPs and lead AK party decisions. But Erdogan's idiosyncratic personality and his ability to defy rules and even constitutional rights - as his recent ban of Twitter shows - confirms that he would not be sitting on a backbench or attending gala dinner with other head of states, but would continue to play an active role in running the country.

The leader of the opposition Nationalist Movement Party (MHP), Devlet Bahceli, has maintained that Erdogan should resign as prime minister if he runs for the presidency.

AK scored 44% in administrative elections in April but lost two million votes compared to the 2011 general elections.

Since then, a power struggle with the Hizmet movement of Gulen has emerged after a wave of high-profile arrests. Forty-seven businessmen and politicians, including the sons of three cabinet ministers, were put in custody on corruption and bribery charges.

Erdogan accused is 70-year-old former ally, who commands a global empire of media outlets, private schools and charities, of trying to topple his government through the graft probe and to have built a parallel state in Turkey, infiltrating police and the judiciary.

A formal request for Gulen to be extradited from his retreat in Pennsylvania is being drafted by Ankara.

To some, Erdogan's allegations of a parallel state verge on paranoia. The AK party meeting, for instance, was moved from the traditional location of a hotel in Kizilcahamam, a district of Ankara, because it belongs to a businessman close to the Gulen movement.

Gulen, who proposes a moderate and modern interpretation of Islam, has extensive influence in the Turkish police and judiciary.

Security forces are said to have raided the location of the AK summit in Afyonkarahisar to search for covert listening and surveillance devices. Members of the party were requested to leave their families at home.

With the general elections in sight in summer 2015, August's presidential elections may prove to be Erdogan's peak - or the start of his downward slope.

Chinese Premier Li Keqiang: No Strings to our Relationship with Africa

A worker works at the Lauzoua manganese mine, some 180 km (112 miles) from Abidjan, Ivory Coast(Reuters)

Chinese premier Li Keqiang has said that China's support for African development will have no strings attached.

Li pledged that China would not seek to meddle in the continent's internal affairs while expanding its economic influence on the continent.

"All China's support for Africa will come with no political strings attached," Li said at the World Economic Forum on Africa event being held in Abuja.

"We will not interfere with Africa's internal affairs or ask something impossible of Africa," he said on a visit to the Nigerian capital.

Li has unveiled a number of economic announcements in the past few days that suggest China will boost its links with the continent.

At a meeting in Addis Ababa on Monday, Li pledged an extra $12bn in aid for the continent, while offering to share advanced technology linked to the development of high-speed rail.

The Chinese premier has also promised to quadruple investment and bolster trade ties across the continent during his four-country tour. Li said that trade between China and Africa will double to $400bn annually by 2020, while Chinese investment will quadruple to $100bn.

Chinese Premier Li Keqiang speaks at the opening of the World Economic Forum on Africa event in Abuja on 8 May(Reuters)

"Since entering the new century, China and Africa have seized the historic opportunities presented by the deepening of globalization, worked together and helped each other to achieve a win-win outcome," Li said on Wednesday.

China's biggest investments in Africa have targeted the mining and manufacturing sectors.

Journalists Wreck Jordanian TV's Debate Show Studio in Live Brawl over Syria

Journalists Shaker al-Johari and Mohammad al-Jayousi fight during Jordan's 7 Stars TV's show Between Opposing OpinionsYouTube

Two guests on a Jordanian debate programme let their opinions get the better of them and smashed up the studio after they got into a fight live on-air.

Journalists Shaker al-Johari and Mohammad al-Jayousi were discussing the Syrian crisis on 7 Stars TV's Between Opposing Opinions when the debate got a bit too heated.

Jayousi accused Johari of being "deviant" in his backing of the revolution in Syria.

Johari retorted that his colleague was paid for cheerleading President Bashar al-Assad. Jayousi then shouted: "Shut up".

The pair jumped up out of their seats and started wrestling around the desk, pulling off the table top and jabbing it at each other.

Show host Zuhair al-Azza unsuccessfully tried to calm them down. Production staff intervened but Johari managed to aim a kick at his opponent before he was pulled away.

No action was taken against the pair.

Bring Back Our Girls: Michelle Obama and Celebrities Join Twitter Campaign Against Boko Haram

Michelle Obama has added her voice to calls for the safe return of nearly 300 kidnapped Nigerian schoolgirls. The US first lady posted a photo of herself in the White House holding a sign that says "#BringBackOurGirls". The tweet was signed "-mo," indicating that she sent it herself.

Mrs Obama is the latest high profile figure to join the campaign to rescue the girls who were abducted by Boko Haram, a Nigerian Islamist terror group.

Our prayers are with the missing Nigerian girls and their families. It's time to #BringBackOurGirls. -mo http://ift.tt/1orl7WP

— The First Lady (@FLOTUS) May 7, 2014

#Malala stands in solidarity with Nigerians & people everywhere calling for action to #BringBackOurGirls http://ift.tt/1q3JgYa

— Malala Fund (@MalalaFund) May 4, 2014

Shout! Participate! Show that you care! #BringBackOurGirls http://ift.tt/1nrrkST

— AmyPoehlerSmartGirls (@smrtgrls) May 7, 2014

It's been two weeks since the kidnapping of 234 Nigerian girls and they still aren't home #bringbackourgirls http://ift.tt/1iKszMq

— Mary J. Blige (@maryjblige) April 30, 2014

Respect and Love our mothers, daughters and sisters. #BringBackOurGirls http://t.co/agI0NKmJYb | http://ift.tt/1nrrkSW

— Ziggy Marley (@ziggymarley) May 8, 2014

If 200+ young girls had been kidnapped in Europe/America, the world would have acted by now. Get in there and get them. #BringBackOurGirls

— Piers Morgan (@piersmorgan) May 5, 2014

#BringBackOurGirls (3/3) http://ift.tt/1fvSx75

— Chris Brown (@chrisbrown) May 1, 2014

Its time 2 #BringBackOurGirls & put a stop 2 violence! Get info on how U can help —> http://t.co/ys5uItaNMy

— Queen Latifah (@IAMQUEENLATIFAH) May 7, 2014

Access to education is a basic right & an unconscionable reason to target innocent girls. We must stand up to terrorism. #BringBackOurGirls

— Hillary Clinton (@HillaryClinton) May 4, 2014

Together let's continue to raise awareness for the plight of the kidnapped Nigerian school girls #BringBackOurGirls http://ift.tt/1nrrjhL

— Kelly Hoppen MBE (@IMKellyHoppen) May 8, 2014

Children are the reward of life. Rescue our Nigerian sisters. The world is watching, Make your voice heard. Retweet! #BringBackOurGirls

— Wyclef Jean (@wyclef) May 2, 2014

Are YOU with @KevinFrazier & @TheaAndrews? Tweet us YOUR #BringBackOurGirls photo & spread the word http://ift.tt/1nrrkT0

— The Insider (@TheInsider) May 8, 2014

Great White Shark Eats Dinghy: 'We're Gonna Need a Bigger Boat'

Great white shark biting inflatable boat off South African coast.MaxAnimal·

Footage of a great white shark munching on an inflatable boat carrying a team of wildlife documentary filmmakers has been captured and posted online.

The MaxAnimal Productions film crew had been shooting off the coast of South Africa when they spotted a shark swimming towards them with an underwater camera.

It then surfaces and begins chewing on the crew's inflatable boat, taking a chunk out of the side as it starts to deflate.

Writing on their YouTube channel, the team said: "Why does a rubber inflatable boat sink in the ocean? Because a Great White Shark has just taken a Chunk out of it!

"Is the scariest part when the Shark eyes our folks on the boat? Ah Yeah. Great White Sharks are amazing creatures. They should be respected and protected.

"The awesome Great White can grow to 21 feet in length. It is the apex predator of the sea. Except for maybe the Orca. Great Whites have been around for over 15 million years. Are they the offspring of the Megalodon? Not sure. Science is still working on that."

Viewers were keen to point out that the shark was not attacking the boat and was more likely biting out of curiosity.

"The shark's eyes weren't rolled back into its head, thus it was not making an attack. It bit the boat out of curiosity. As sharks lack suitable limbs, the only way for them to examine a new object is by biting it," one user said.

Hong Kong's Billionaire Kwok Brothers Plead Not Guilty in Graft Case

Raymond Kwok, co-chairman of developer Sun Hung Kai Properties, walks into the High Court in Hong KongReuters

Hong Kong property tycoons Thomas and Raymond Kwok pleaded not guilty in a lawsuit alleging that the billionaire brothers paid bribes to the city state's former No. 2 official.

Rafael Hui, the Hong Kong government's chief secretary from June 2005 to June 2007, received payments and loans of more than HK$35m ($4.5m, £2.7m, €3.2m) from the billionaires, according to prosecutors.

The Kwok brothers are running Sun Hung Kai Properties, Hong Kong's second-largest property developer. They have a net worth of $12.6bn and rank fifth among Hong Kong billionaires, according to Forbes' latest rich list.

Sun Hung Kai developed a number of well-known commercial and residential properties in Hong Kong.

Hui, a board member at Sun Hung Kai Properties and a former Hong Kong Stock Exchange official are also on trial, and all pleaded not guilty as well.

They were arrested by anti-corruption officers more than two years ago along with Hui and two others in the graft case, which is one of the biggest in Hong Kong's history.

Hui faces eight counts including misconduct in public office and bribery, while Raymond and Thomas face four and three charges, respectively.

All of the accused have been out on bail.

The jury trial is scheduled to last for 70 days.

The case received widespread attention in Hong Kong, where illegal tie-ups between government officials and business magnets have always been a concern.

The former British colony's Independent Commission Against Corruption (ICAC), which arrested the people, was created by the colonial government and is credited with successfully curbing graft in the city in the 1970s.

Hot Shots Photos of the Day: Bear Surgery, City Wrestling, Football Melons

Mango, a 19-year-old Syrian brown bear, is prepared for surgery on his slipped disc at the Ramat Gan Safari near Tel Aviv.Reuters

A young miner leads his team of donkeys back to the coal face underground in Choa Saidan Shah, Punjab province, Pakistan. Coal miners in Chao Saidan Shah use donkeys to transport coal from the depths of the mines to the surface. The donkeys make around 20 trips per day carrying sacks weighing about 20 kg (44 lbs) eachReuters

An Amur tiger walks over the new Big Cat Crossing at the Philadelphia Zoo in Pennsylvania.Reuters

This NASA composite image shows the NGC 2024 cluster at the centre of the Flame Nebula, about 1,400 light years from Earth.Nasa/Reuters

A mock missing persons poster with a picture of Mayor Rob Ford is seen in Toronto. Ford gained global notoriety last year after he admitted he had smoked crack, bought illegal drugs and driven after drinking, but refused to step down.Reuters

A model poses with a vivid yellow 100.09-carat diamond and a 103.46-carat diamond ring at a Sotheby's auction preview in Geneva.Reuters

Conchita Wurst of Austria performs during a dress rehearsal before the second semi final of the Eurovision Song Contest in Copenhagen, Denmark.Getty

Ovi, of Paula Seling & Ovi from Romania, performs at a dress rehearsal before the second semi-final of the Eurovision Song Contest in Copenhagen, Denmark.Getty

Cadets attend a prayer service to commemorate Soviet war victims, while kneeling near their remains. Students from the General Yermolov Cadet School in western Russia took part in an operation to find and rebury remains of Red Army soldiers killed during World War Two.Reuters

Watermelons with carved images of Argentina's Lionel Messi, Portugal's Cristiano Ronaldo and Brazil's Neymar are seen at San Raphael hotel in Sao Paulo.Reuters

Manchester City's Stevan Jovetic celebrates after scoring a goal against Aston Villa at the Etihad Stadium in Manchester.Reuters

Brent Metcalf of the USA takes on Magomed Kurbanaliev of Russia during the Beat the Streets Wrestling Exhibition at Times Square in New York City.Getty

Flames engulf a house owned by former tennis pro James Blake (inset) in Tampa, Florida. Four people were found dead in the mansion owned by Blake, police said. Blake was not inside; officials said Blake was renting the home to someone else.Reuters

Members of Venezuela's national guard react after a Molotov cocktail is thrown at them by anti-government students during clashes at Metropolitan University in Caracas.Reuters

Forces loyal to Syria's President Bashar al-Assad pose for a picture after their release by rebels, in the al-Meridian district of Aleppo. They were freed as part of a larger deal which saw the last remaining Syrian rebels in Homs evacuate their positions and free captives in several locations in northern Syria.Reuters

US President Barack Obama tours a tornado-damaged area of Vilonia, Arkansas.AFP

Archbishop Desmond Tutu speaks to the media as he arrives to cast his vote during the South African election in Cape Town.Reuters

A young novice Buddhist monk puts on his robe as he walks down stairs after eating dinner at the Thiksey Monastery in Ladakh, India.Getty

Yuan Faces Appreciation Pressure as China Trade Revives

Chinese YuanReuters

China's exports and imports rebounded in April leading to a significantly-increased trade surplus, which is expected to contain weakening in the yuan.

On a year-on-year basis, exports and imports rose 0.9% and 0.8%, respectively, in April, reversing from declines of 6.6% and 11.3% in March. Analysts expected a 2.8% decline in exports and a 2% decline in imports for April.

Trade surplus rose to $18.46bn (£10.9bn, €13.3bn) from $7.7bn in March.

Exports to the US and EU rebounded to 12.0% and 15.1%, respectively in April, while that to Hong Kong declined by 31.4% due to the crackdown on round-tripping activities.

The rebound in imports was primarily due to higher demand for iron ore. Iron ore import volume rose 24.2% year-on-year in April, up from 14.6% in March.

The higher import volume reflects that market concerns over China's commodity demand are overdone, according to economists from ANZ bank.

The second-largest economy recorded unprecedented economic growth over the past three decades, primarily due to the growth in exports and investment.

China has been looking to reduce its dependence on export and investment for growth and targeting to increase domestic consumption to make its growth more stable and sustainable.

The economy expanded 7.4% in the first quarter, down from 7.7% in the previous quarter.

Analysts were of the opinion that the country's growth would slow down further due to its reforms to increase consumption.

The latest data shows signs of recovery in the economy, and comes in support of the measures undertaken by the government.

Impact on Yuan

The improvement in trade surplus is likely to put appreciation pressure on the yuan, which has recently weakened against the US dollar.

"As the trade surplus widened significantly, the depreciation pressure of the RMB could be eased somewhat," said ANZ economists.

They added that the currency will start strengthening in the second half of 2014.

"With China's exports consolidating and most of its [manufacturing indexes] marginally higher in April than March, there is a good chance that the People's Bank of China will allow the yuan to recover some of the first quarter's depreciation in the second quarter of 2014," said Bill Adams, senior international economist for PNC Financial Services Group.

The yuan strengthened 0.08% against the US dollar and is trading at 6.23 as at 8:00 am GMT.

Standard Chartered Boosts Headcount Despite Profit Slump

Standard Chartered Boosts Headcount Despite Profit SlumpReuters

Standard Chartered's finance director Richard Meddings said on a conference call that the bank there was a "slight increase" in headcount over the first quarter of 2014 despite a slump in profits.

The London-based bank, which makes more than 90% of its profits in Asia, Africa, and the Middle East, said in its interim management statement that operating profit fell by a "high single-digit percentage" amid weakness in emerging market currencies.

It also blamed its financial markets business for the profit stumble in its interim management statement.

"Despite a somewhat challenging external environment, we continue to support our clients' growth, whilst managing tightly our costs, risks and capital," said Peter Sands, CEO at Standard Chartered.

"Our performance so far this year is in line with our expectations. On 1 April we completed the reorganisation announced in January. These changes align the organisation to reflect our refreshed strategic priorities."

Airline Price War to Intensify as AirAsia Set to Take Off in India

AirAsiaReuters

AirAsia India, a joint venture between Malaysian budget carrier AirAsia, Indian conglomerate Tata Group and investment firm Telestra Tradeplace, has received the nod from India's Directorate General of Civil Aviation (DGCA) to start operations in the country.

It will be the first airline with foreign investment operating in the country.

The Indian regulator issued the air operator permit to the company, which has completed all other formalities to start services. Mittu Chandilya, CEO of AirAsia India, confirmed the development in a tweet.

Boom! 1815hrs(IST) todayAirAsiaIndia was born.So proud of my team.Who is ready to revolutionize Air Travel in India? http://ift.tt/1kY07q5

— Mittu Chandilya (@MittuChandilya) May 7, 2014

Twitter

Nevertheless, the company did not say when the service would be launched in India.

India opened up its high-growth aviation market for foreign investment in 2012 as part of its economic reforms, allowing foreign carriers to invest up to 49% in local airlines.

While the sector is said to have significant growth prospects, domestic carriers have been suffering losses due to intense price competition and volatile fuel prices.

According to the Centre for Asia Pacific Aviation (CAPA), India's aviation sector suffered a combined loss of $1.3bn (£766m, €934m) in the financial year ended in March.

AirAsia is currently the biggest budget carrier in Asia, and is well known for its strategies to maintain low airline costs.

Chandilya said his company is trying to become "the lowest-cost" airline in the country.

The entry of AirAsia into the Indian market is expected to intensify the price war in the country and further harm airlines' profitability, according to some industry experts.

"Domestic airlines continue to be very precariously placed and AirAsia's entry will further challenge the existing airlines," said Kapil Kaul, South Asia CEO at CAPA.

Domestic airlines, including IndiGo, Jet Airways (India) Ltd, SpiceJet Ltd and GoAir had earlier asked the DGCA to deny license to AirAsia. The regulator, however, dismissed the demand.

Meanwhile, the Tata Group has also formed a 51:49 joint venture with Singapore Airlines to launch an airline. The company is awaiting the air operating permit to start commercial operations.

Thai Opposition Calls for 'Final Fight' to Install New Government

Thailand's dismissed prime minister Yingluck Shinawatra greets her supporters as she leaves the Permanent Secretary of Defence office in Bangkok.Reuters

Thailand's anti-government protesters are preparing for a final fight on Friday to install a new government, even as the Red Shirts have called for a rally in support of dismissed prime minister Yingluck Shinawatra.

The protesters, who have been demanding the removal of the prime minister for the last six months, moved quickly after Yingluck's Puea Thai party named deputy premier Niwattumrong Boonsongpaisan as her replacement.

"Tomorrow we will take steps towards appointing a new government," protest spokesman Akanat Promphan told AFP.

"After the Constitutional Court's decision yesterday we decided to move up our schedule.... the government has lost all legitimacy and any claim it has to govern the country," Promphan added, insisting that the Puea Thai party's move to cling to power had no legitimacy.

“After the Constitutional Court's decision yesterday we decided to move up our schedule ... the government has lost all legitimacy and any claim it has to govern the country.”

- Akanat Promphan, spokesman for Thai anti-government protesters

The court ruled on Wednesday that Yingluck had violated regulations while transferring the chief of the National Security Council in 2001 and that she should be removed from office.

The Thai opposition, which has consistently said Yingluck was running a proxy government in favour of her powerful brother and former prime minister, Thaksin Shinawatra, had brought several other charges relating to abuse of power against her.

However, the supporters of Yingluck, Thailand's first female prime minister, have said the ruling was the result of a "conspiracy" against the democratically elected government.

Thailand has been in turmoil ever since anti-government protesters stormed the streets of the capital in November 2013 demanding Yingluck's resignation.

Political experts have said the latest developments could worsen the long-running power struggle between supporters of Thaksin and his royalist detractors.

The opposition's move to appoint a new prime minister "is the red line not to be crossed," Thailand-based author and academic David Streckfuss said, according to the Bangkok Post.

The protest leaders have said they would stage a "final fight", looking to ride the wave of the court ruling against Yingluck and seal a final victory in their struggle.

However, it was not clear if their move would have legal backing, the Post reported, adding that the constitution has an article that allows the appointment of a new executive body by the Senate.