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Biden nominates former Mastercard CEO Ajay Banga to head World Bank

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US President Joe Biden nominated former Mastercard Inc (MA.N) CEO Ajay Banga to lead the World Bank, betting the India-born executive’s ties to the private sector and emerging markets will jump-start the 77-year-old institution’s overhaul to better address climate change, Reuters reported.

Biden’s nomination on Thursday of Banga, 63, now a US citizen, all but assures he will assume a job that oversees billions of dollars of funding, as it races to help developing countries address climate change.

The World Bank (WB) on Wednesday said it expects to select a new president by early May to replace David Malpass, who announced his resignation last week after months of controversy sparked by his initial refusal to say if he accepted the scientific consensus on climate change, and pressure by Treasury Secretary Janet Yellen for him to adopt “bolder” reforms, read the report.

“I think the speed of the nomination, less than 48 hours after the WB board launched the process, reflects a desire to discourage any challengers and wrap it up quickly,” said Scott Morris, a senior fellow at the Center for Global Development and a former US Treasury official.

Biden noted Banga’s decades of experience building global companies and public-private partnerships to fund responses to climate change and migration and said he had a proven track record working with global leaders, Reuters reported.

“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Biden said in a statement, hailing the business executive’s Indian roots and knowledge of the challenges facing developing countries and ability to mobilize private capital to tackle big problems.

Banga’s work in India and other emerging markets, his “obsession” with expanding financial inclusion, and his deep knowledge of new technologies could help bridge the divide between rich countries and emerging markets, said Luis Alberto Moreno, who worked closely with Banga while serving as president of the Inter-American Development Bank.

“He can really be a force for change,” Moreno said, noting that Banga enjoyed the trust of financial markets.

India was expected to support Banga’s candidacy, according to Krishnamurthy Subramanian, the former top economic adviser to the Indian government who now serves as India’s executive director at the International Monetary Fund. “It’s an elegant solution.”

DIVERSITY

The bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund (IMF), but developing countries and emerging markets have pushed to widen those choices.

Banga’s nomination is the first to be made public, but the bank will accept nominations from other member countries through March 29. Germany, another major shareholder, this week said the job should go to a woman since the bank has never been headed by a woman, Reuters reported.

A senior US administration official said they did not know if other countries would nominate candidates for the post.

Asked about Washington’s decision not to nominate a woman, the official said Banga had “a personal conviction and excellent track record promoting diversity, equity and inclusion in the work that he does” and would bring that view to the bank.

But Jeff Hauser, who heads the progressive Revolving Door Project, demanded Biden retract the nomination of a top official from a “rapacious international private equity firm” who had previously worked only in private sector firms.

“Neither private equity, nor MasterCard, nor Citigroup, nor PepsiCo, nor Nestlé, nor Dow promote shared prosperity. They all do vastly more to exacerbate inequality than to fight it,” he said in a statement.

Oxfam International said the next bank president should be chosen through a transparent global process. “The World Bank is not a US bank, a commercial bank, or a private equity firm. For a job of this stature, we need more than a tap on the shoulder from President Biden.”

Banga is vice chair of General Atlantic, a US private equity firm that administration officials said has invested over $800 million in EV charging solutions, solar power and sustainable farming, read the report.

He retired in December 2021 after 12 years at the helm of Mastercard, where administration officials noted that he helped 500 million unbanked people join the digital economy, averted layoffs of the bank’s 19,000 employees during the COVID-19 pandemic, and led work on climate, gender and sustainable agriculture.

Vice President Kamala Harris said Banga brought “great insight, energy and persistence” to his role as co-chair of the Partnership for Central America, which has mobilized $4.2 billion in public, private and nonprofit funds to advance economic opportunity in northern Central America.

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North Korea’s Kim says country will exercise its position as nuclear state, KCNA reports​​

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North Korean leader Kim Jong ‌Un said exercising the country’s position as a nuclear state is the only way to cope with an unpredictable and complicated global security situation, KCNA state news agency reported on Tuesday.

“Unimaginable, astonishing incidents and events” are occurring because of the “gangster-like” greed of hegemonic forces, making confrontations around the world more ​violent, Kim said, blaming the U.S. for worsening bloodshed in Europe and the Middle East, Reuters reported.

He was speaking at a ​Central Committee meeting of the ruling Workers’ Party, running from Saturday to Monday, KCNA said.

Kim accused the U.S. ⁠and South Korea of making the security situation on the Korean Peninsula more dangerous by steadily upgrading their combined nuclear posture, ​the only purpose of which, he said, is to attack North Korea.

“To steadily expand and strengthen the nuclear forces … and to thoroughly ​exercise the position of a nuclear weapons state is the most correct and unique way to actively and confidently cope with the unpredictable international military and political situation getting complicated in multiple ways,” KCNA said.

KCNA did not elaborate on specific actions regarding the country’s nuclear arsenal that might be taken.

Kim ​also ordered the buildup of conventional weapons and accelerated construction of a 10,000-ton strategic guided missile cruiser, KCNA said.

Yang Moo-jin, a professor at ​the University of North Korean Studies in Seoul, said the comments underscore Pyongyang’s continued rejection of denuclearisation and push for recognition as a nuclear ‌state.

“North Korea ⁠is once again reaffirming that denuclearisation talks are off the table,” Yang said, adding it would only engage in negotiations “as a nuclear weapons state on an equal footing,” potentially focusing on arms reduction rather than dismantlement.

Such talks would imply acceptance of a minimum deterrent and require sanctions relief, he said, fundamentally differing from phased denuclearisation proposals, such as those raised by South Korean President Lee Jae Myung ​to U.S. President Donald Trump ​at the G7.

Yang said that ⁠references in the party meeting to the U.S.-South Korea Nuclear Consultative Group, a body aimed at deterring North Korea’s nuclear threat, and Seoul’s ambitions to develop a nuclear-powered submarine were being used by ​Pyongyang to justify its nuclear buildup.

North Korea has defied a slew of sanctions imposed by both ​the United Nations ⁠and the U.S. between 2006 and 2017 banning Pyongyang from developing nuclear weapons and ballistic missiles to deliver them. Its stance has alarmed regional powers.

It has declared itself a nuclear state and has said nothing would convince it to abandon its atomic weapons, despite years of ⁠diplomatic efforts ​by the U.S., China and South Korea.

The party meeting also highlighted a push ​to modernise the coal industry and redevelop mining communities, which Kim described as a strategic priority.

“Coal effectively remains North Korea’s main energy resource,” Yang said, noting plans ​to upgrade the industry aimed at easing chronic energy shortages.

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UK’s Starmer says he will resign

Less than two years after he won a landslide election victory that promised to end chaos in British politics, Starmer said it was clear that his party wanted him to go.

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Prime Minister Keir Starmer said on Monday he would resign, with a new ​leader to be in place by the time parliament returns in September, paving the way for Britain to have its seventh leader ‌in 10 years.

Less than two years after he won a landslide election victory that promised to end chaos in British politics, Starmer said it was clear that his party wanted him to go, Reuters reported.

“The question my party is asking now ​is whether I am best placed to lead us into the next general election, I have heard the answer of my parliamentary party ​to that question, and I accept that answer with good grace,” he said.

PRESSURE HAD BEEN BUILDING FOR MONTHS

The threat to ⁠Starmer, which had been building for months, increased sharply on Friday when Burnham, the Greater Manchester mayor, decisively won a parliamentary election to return to Westminster, ​beating a candidate from Nigel Farage’s Reform UK party, which has led national opinion polls for more than a year.

That victory gave hope to Labour lawmakers that ​Burnham, a career politician known for his communication skills, could transform the fortunes of a party that has lost support under Starmer, whose popularity ratings have sunk to the lowest for any British leader.

Starmer thanked his colleagues for their support, his voice cracking with emotion as he also paid tribute to his wife and children.

The pound and British government ​bonds were steady in the immediate aftermath of Starmer’s announcement, which investors had widely expected.

Despite the attempt at a smooth handover, the change is not ​without risk.

Beyond saying that the country needs fundamental change and to bring down the cost of living, Burnham has yet to make clear his approach to foreign affairs, the economy ‌and defence.

Like ⁠Starmer, he could find he has little room to manoeuvre, hemmed in by bond market investors opposed to any additional borrowing, and confronted by an angry electorate which believes the country is not working properly.

Britain already has the highest borrowing costs in the Group of Seven wealthy nations due to its high debt and interest payments, years of anaemic economic growth, its struggles to cut spending and the need to invest in areas like defence.

Investors spoken to by Reuters were divided over whether Burnham, ​who said last September that Britain ​had to get “beyond this thing of ⁠being in hock to the bond markets” would respect the need to reassure markets.

He has since said he was misrepresented.

“In our view, a Burnham premiership would inherit a precarious fiscal situation with few tools to deliver meaningful change,” ​economists at Citibank said on Friday.

STARMER HAD PLEDGED TO FIGHT ANY CHALLENGE

Starmer had said on Friday he would stand ​in any formal Labour ⁠leadership contest that sought to replace him. But that appeared to change over the weekend.

Whoever replaces Starmer will become Britain’s seventh prime minister since the Brexit vote to leave the European Union which took place 10 years ago this week.

That level of turnover – the highest in Britain in nearly two centuries – underlines the struggle of maintaining the ⁠support of ​voters angry at successive failures to improve living standards, public services and tackle illegal immigration.

The political ​advisory group Eurasia had said the best outcome could be for Starmer to say he will step down in September, enabling him to attend a UK-European Union reset summit in July and ​give Burnham time to prepare for government.

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Trump envoy, Iranian minister head to Switzerland for talks

The development may signal that both sides intend to begin technical negotiations aimed at securing a permanent ​truce.

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US envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi were both headed to Switzerland for talks, Axios said on Friday, as a ceasefire in Lebanon appeared to revive efforts to turn an interim Iran war pact ​into a lasting regional deal, Reuters reported.

Israel and Hezbollah agreed to a ceasefire in Lebanon on Friday after escalating fighting cast doubt over U.S.-Iran talks critical to reopening the Strait of Hormuz ‌and stabilising oil supplies.

That followed a 14-point memorandum the two sides signed this week to halt fighting and open a 60-day window to resolve disputes over Iran’s nuclear program, as well as other thorny issues needed to forge a more durable deal.

U.S. Vice President JD Vance canceled plans on Thursday to travel to Switzerland for the talks, however, amid rising tension in Lebanon between Israel and Hezbollah, a militant group backed by Iran.

With the ceasefire in place, Witkoff is heading to Switzerland to join Jared Kushner, President ​Donald Trump’s son-in-law, who is already there, Axios said. Araqchi plans to travel there on Saturday, it added.

The development may signal that both sides intend to begin technical negotiations aimed at securing a permanent ​truce.

The White House did not respond to questions about Witkoff’s travel.

A senior U.S. official said the ceasefire took effect around 4 p.m. (1300 GMT) in Lebanon following an ⁠exchange of fire, adding that negotiators for the United States and Qatar had worked out the agreement with help from Iran, read the report.

Two sources from Hezbollah and a senior Israeli official confirmed the ceasefire to Reuters.

“If Hezbollah does not ​attack us, then for us it is not a time of war,” the Israeli official said, adding that Israel would keep its forces in southern Lebanon, where it has occupied an area along its northern border.

Two Lebanese security ​sources said Israel had carried out a dozen airstrikes in the first hour of the ceasefire but none were recorded after 5 p.m.

Lebanon’s health ministry said Israeli strikes after midnight into Friday had killed 47 people and wounded 97, while the Israeli military said four soldiers had been killed in an incident in Lebanon, without giving further details.

The conflict in Lebanon could weigh on negotiations because ending fighting there is a condition for the broader U.S.-Iran accord.

Following Wednesday’s signing of the memorandum of understanding, preparations ​for technical talks at the Swiss mountaintop resort of Buergenstock were well advanced when the White House said on Thursday that Vance would not attend.

The Swiss foreign ministry said the talks had been postponed but Switzerland stood ready ​to facilitate them and preparatory work was continuing.

The broad interim deal requires the United States, Iran and their allies to declare an immediate and permanent termination of military operations on all fronts, including in Lebanon.

Israel, left out of the talks, says ‌it is ⁠not party to the deal.

Araqchi, in a telephone call with his Pakistani counterpart on Friday, said the United States would be responsible for any violation of its commitments under the deal, including ending the fighting in Lebanon, his ministry said.

Lebanon was sucked into the regional war when Hezbollah opened fire at Israel on March 2, prompting it to launch an offensive against the group and invade the south of the country.

Lebanese President Joseph Aoun condemned the latest Israeli attacks but said the escalation would not hinder efforts to reach a comprehensive ceasefire.

The U.S. State Department said Secretary of State Marco Rubio spoke to Aoun and reiterated the need to disarm ​Hezbollah, while reaffirming U.S. support for a “fully sovereign” Lebanese state.

It ​said they also discussed holding a next round ⁠of Israel-Lebanon negotiations in Washington from June 23 to June 25. The Lebanese presidency said a comprehensive ceasefire was a fundamental pillar for these talks.

The Iran war, which began on February 28 with U.S. and Israeli air attacks on Iran, has killed at least 7,000 people, mostly in Iran and Lebanon. It also ​pushed up energy prices, stoking inflation worldwide.

Brent crude ticked higher on Friday, but was set for a weekly fall of about 8% after the Lebanon ceasefire, and oil ​shipments through the Strait of ⁠Hormuz picked up after the signing of this week’s deal.

The strait carried nearly a fifth of global crude oil and liquefied natural gas supplies before it was blockaded by Iran during the war.

The body set up by Iran to manage the strait said on Friday it would waive planned fees during the interim deal’s negotiation period.

The MoU foresees relief for Iran from economic sanctions, the unfreezing of assets worth tens of billions of dollars and immediate U.S. waivers for its exports ⁠of oil. It ​also provides for a $300-billion reconstruction fund for Iran and other financial incentives.

Trump again defended the deal after criticism in Washington, including some ​from Republican allies in Congress who question whether he conceded too much to end a war unpopular with most Americans ahead of midterm elections in November.

“The War has diminished Iran!” he wrote on social media on Friday, adding, “We didn’t meet out of desperation, Iran did. They ​are FINISHED! We’ll play out the 60 days. They get no money, not 10 cents!”

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