An alleged sabotage attack on Iranian nuclear facilities will make it harder for diplomats to strike a deal as they look to rescue Iran's 2015 agreement with world powers, an expert says.
Talks on a possible US return to the nuclear deal are due to resume in Vienna on Thursday but are being overshadowed by the incident at the Natanz plant and Iran's subsequent announcement that it would enrich uranium up to 60 per cent.
Eric Brewer, a senior fellow at the Centre for Strategic and International Studies, said on Tuesday the path to an agreement "has only got tougher in the past 48 hours".
In an article for the Royal United Services Institute (Rusi), he said the "tough negotiations", in which European powers have shuttled between the Iranians and a US delegation, are "by no means guaranteed to succeed".
Mr Brewer said it was hard to see how Washington would agree to Iran's demands for the lifting of sanctions to be followed by a verification period before Tehran will accept limits on its nuclear activity.
"Iran has suggested that verifying sanctions removal could include steps such as successfully exporting oil, signing new oil contracts and conducting financial transactions through multiple channels," he said.
"A symbolic delivery of oil is one thing, but waiting for Iran to sign ... new contracts is quite another."
Diplomats in Vienna asked two expert groups to work out how sanctions can be lifted and how Iran can move back in line with the nuclear limits under the deal.
Mr Brewer said the nuclear side of the deal would probably be "easier to work out and less contentious than the sanctions rollback".
But he added that "it is hard to know for sure given that the US and Iran have yet to meet to dig into the details and Washington has not spoken much in public about its objective".
Iran struck the deal with the US, Britain, France, Germany, Russia and China in 2015, but Washington pulled out in 2018 and re-imposed sanctions.
Joe Biden's administration is working towards restoring the deal but the talks are expected to last months.
"It remains to be seen whether the parties can build on the constructive start in Vienna," Mr Brewer said.
"The recent sabotage efforts against Iran’s main enrichment facility will probably make that harder in the short term.
"The US and the remaining parties to the deal will get a better sense this week of whether Iran’s positions are ‘red lines’ or ‘pink lines’."
Russia's ambassador to the International Atomic Energy Agency, Mikhail Ulyanov, said on Tuesday that the next round of talks in Vienna had been postponed until Thursday.
"No doubt that in addition to previous issues the Commission will address the latest steps of Iran in the nuclear field, including 60 per cent enrichment," Mr Ulyanov said.
The United States, which denies any involvement in the Natanz incident, said it was "certainly concerned about these provocative announcements" by Iran.
However, Washington said it expects the talks in Vienna to continue.
"We expect and we have not been alerted of any change in planned attendance in meetings that will resume later this week," said White House press secretary Jen Psaki.
Announcing the 60 per cent enrichment, Iran's chief nuclear negotiator Abbas Araqchi also said Iran would activate 1,000 advanced centrifuge machines at Natanz.
One of the central objectives of the 2015 deal was to extend the time Iran would need to accumulate enough enriched uranium to build a nuclear weapon.
Iran insists it has never sought to obtain or develop nuclear weapons, and that its nuclear technology is for civilian purposes only.
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Ordinary Virtues: Moral Order in a Divided World by Michael Ignatieff
Harvard University Press
Points tally
1. Australia 52; 2. New Zealand 44; 3. South Africa 36; 4. Sri Lanka 35; 5. UAE 27; 6. India 27; 7. England 26; 8. Singapore 8; 9. Malaysia 3
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UAE currency: the story behind the money in your pockets
Indoor Cricket World Cup Dubai 2017
Venue Insportz, Dubai; Admission Free
Fixtures - Open Men 2pm: India v New Zealand, Malaysia v UAE, Singapore v South Africa, Sri Lanka v England; 8pm: Australia v Singapore, India v Sri Lanka, England v Malaysia, New Zealand v South Africa
Fixtures - Open Women Noon: New Zealand v England, UAE v Australia; 6pm: England v South Africa, New Zealand v Australia
CHATGPT%20ENTERPRISE%20FEATURES
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