NEW DELHI // The Afghan president, Hamid Karzai, on a two-day visit to New Delhi, agreed to increase security cooperation with India yesterday, part of a larger push by the Afghan leader for increased ties amid rising tension between Afghanistan and India's arch-rival, Pakistan.
Mr Karzai's visit, which also highlights India's pursuit of a major role in Afghanistan, comes after heightened anti-Pakistani rhetoric in Afghanistan following the assassination of the country's's top peacemaker last month.
Afghan officials say the killing of Burhanuddin Rabbani, former president and head of the High Peace Council, was planned by Pakistan-supported Taliban militants in the Pakistani city of Quetta.
The Indian prime minister, Manmohan Singh, speaking after meeting Mr Karzai, condemned Mr Rabbani's assassination and, in a veiled reference to Pakistan's involvement in his killing, said Afghans "deserve to live in peace and decide their future themselves, without outside interference, coercion and intimidation". Mr Karzai, in a televised address the day before he left for New Delhi, also had stern words for Pakistan: "After all the destruction and misery, the double game towards Afghanistan and the use of terrorism as an excuse still continue."
Observers said Mr Karzai's India tour is aimed at sending Pakistan the message that Afghanistan is capable of pursuing an independent foreign policy free of Pakistani influence, and is willing to reach out even to Pakistan's rivals.
Mangal Sherzad, a professor at Nangarhar University in eastern Afghanistan, said: "Karzai is making this visit in a very crucial time, when Afghanistan-Pakistan relations are under storm clouds, and perhaps Karzai thinks it is the right time to get help from India."
Yesterday Mr Singh and Mr Karzai signed a memoranda of understanding that would grant Indian companies mining and hydrocarbon contracts for up to US$6 billion (Dh22bn), with investments in railroads, mines and a steel plant in Bamiyan province.
In May, India added $500 million in aid to the $1.5bn it is already spending on infrastructure and police training. On Monday, India offered to further help train Afghan police to prevent terrorist attacks.
Saeed Naqvi, a distinguished fellow at the Observer Research Foundation, a New Delhi-based think tank where Mr Karzai will deliver a speech today, believes that the growing unpopularity of Pakistan provides an opportunity for India. While Pakistan has been blamed by Afghans for much of the violence in their country, India is seen as a benign benefactor, he said: "Indians have done nothing but build hospitals and schools."
With the US looking to withdraw most of its troops and the US Congress looking to curtail foreign aid, Afghanistan has few options for economic aid. "This is diplomacy by default," said Mr Naqvi. "India has a non-lethal profile in Afghanistan, which is working to their advantage now."
Rahul Roy-Chaudhury, the senior fellow for South Asia at the International Institute for Strategic Studies in London, said India is reaping the benefits of playing a slow game of influence in Afghanistan. "India's policy towards Afghanistan as a country has been that it can't have an exit strategy. Unlike western countries, India has long-term interests."
Mr Roy-Chaudhury worries, however, that the most controversial deal signed during the visit, an agreement to increase military training of Afghan forces by India, could lead to increased violence if not properly handled.
While India has been training Afghan police officers in India for some time, a new deal would reportedly include sending Indian military trainers to Afghanistan, a move sure to upset Islamabad.
He is also cautious about reading too much into Mr Karzai's relationship with India. "It is inconceivable that we are looking at a new strategy focusing more on India," Mr Roy-Chaudhry said. "Karzai told Singh that Kabul was his second home, but he has also called Pakistan [Afghanistan's] conjoined twin. India is important, but Pakistan is more important to Afghanistan."
Pakistan has in recent weeks also faced pressure from US officials, who said last month's 20-hour assault on the US Embassy in Kabul was the work of the Haqqani network, a militant group the US says is backed by Pakistan's Inter-Services Intelligence (ISI) spy agency.
* Erin Cunningham reported from Kabul
foreign.desk@thenational.ae
UAE currency: the story behind the money in your pockets
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
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Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
THE SPECS
Engine: 6.0-litre, twin-turbocharged W12
Transmission: eight-speed automatic
Power: 626bhp
Torque: 900Nm
Price: Dh1,050,000
On sale: now
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
2019 Asian Cup final
Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Final round
25 under - Antoine Rozner (FRA)
23 - Francesco Laporta (ITA), Mike Lorenzo-Vera (FRA), Andy Sullivan (ENG), Matt Wallace (ENG)
21 - Grant Forrest (SCO)
20 - Ross Fisher (ENG)
19 - Steven Brown (ENG), Joakim Lagergren (SWE), Niklas Lemke (SWE), Marc Warren (SCO), Bernd Wiesberger (AUT)
RESULTS
%3Cp%3E%3Cstrong%3E9pm%3A%20Maiden%20(PA)%20Dh70%2C000%20(Dirt)%202%2C000m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Mubhir%20Al%20Ain%2C%20Antonio%20Fresu%20(jockey)%2C%20Ahmed%20Al%20Mehairbi%20(trainer)%3Cbr%3E%3Cstrong%3E9.30pm%3A%20Handicap%20(TB)%20Dh70%2C000%20(D)%202%2C000m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Exciting%20Days%2C%20Oscar%20Chavez%2C%20Doug%20Watson%3Cbr%3E%3Cstrong%3E10pm%3A%20Al%20Ain%20Cup%20%E2%80%93%20Prestige%20(PA)%20Dh100%2C000%20(D)%202%2C000m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Suny%20Du%20Loup%2C%20Marcelino%20Rodrigues%2C%20Hamad%20Al%20Marar%3Cbr%3E%3Cstrong%3E10.30pm%3A%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C800m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Jafar%20Des%20Arnets%2C%20Oscar%20Chavez%2C%20Ahmed%20Al%20Mehairbi%3Cbr%3E%3Cstrong%3E11pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(D)%201%2C600m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Taj%20Al%20Izz%2C%20Richard%20Mullen%2C%20Ibrahim%20Al%20Hadhrami%3Cbr%3E%3Cstrong%3E11.30pm%3A%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C400m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Majdy%2C%20Antonio%20Fresu%2C%20Jean%20de%20Roualle%3Cbr%3E%3Cstrong%3E12am%3A%20Maiden%20(PA)%20Dh70%2C000%20(D)%201%2C400m%3C%2Fstrong%3E%3Cbr%3EWinner%3A%20Hamloola%2C%20Sam%20Hitchcott%2C%20Salem%20Al%20Ketbi%3C%2Fp%3E%0A
LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”