British MPs have called for Iran's Revolutionary Guard Corps to be labelled a terror group and to prevent the country developing missiles capable of carrying nuclear warheads. Reuters
British MPs have called for Iran's Revolutionary Guard Corps to be labelled a terror group and to prevent the country developing missiles capable of carrying nuclear warheads. Reuters
British MPs have called for Iran's Revolutionary Guard Corps to be labelled a terror group and to prevent the country developing missiles capable of carrying nuclear warheads. Reuters
British MPs have called for Iran's Revolutionary Guard Corps to be labelled a terror group and to prevent the country developing missiles capable of carrying nuclear warheads. Reuters

Manama Dialogue: Germany calls for updated nuclear deal to stop Iran threat


Mina Aldroubi
  • English
  • Arabic

The Iranian nuclear deal will not be enough to stop the challenges posed by Tehran, Germany’s Secretary of State Miguel Berger said on Saturday.

The 2015 deal – known formally as the Joint Comprehensive Plan of Action, or JCPOA – gave Iran relief from sanctions in return for curbs on its nuclear programme.

“We have seen non-compliance in important areas of the agreement over longer periods of time but going back to full compliance will not be enough, we have to update the agreement,” Mr Berger said during the annual Manama Dialogue, organised by International Institute for Strategic Studies in Bahrain, which focuses on regional security challenges.

Although the European Union and United States were the main drivers behind the deal, US President Donald Trump unilaterally withdrew from the accord in 2018 and has reimposed crippling sanctions on Tehran as part of a "maximum pressure" campaign.

US president-elect Joe Biden has signalled that Washington could rejoin the deal as a starting point for follow-on negotiations if Iran returned to compliance.

“We have to wait for the ideas of the new US administration,” said Mr Berger, whose country currently holds the EU presidency.

Iran's ballistic missiles and its role in the region can only be addressed with “firm reaction such as sanctions, but with a regional security structure”, Mr Berger said.

“We need to make progress in the months ahead in order to move towards compliance in the JCPOA and tackle the challenge of regional security,” he said.

Germany's Foreign Minister Heiko Maas told Spiegel magazine that an accord to limit Tehran's nuclear prowess was needed "because we distrust Iran".

"A form of 'nuclear agreement plus' is needed, which also lies in our interest," said Mr Maas said.

Bahrain's Foreign Minister Abdullatif Al Zayani said officials from the region must be consulted on changes to the nuclear pact.

"The JCPOA amendments should address areas of concern to the region including Iran’s missiles programme, interference in domestic affairs, and support for militias," Mr Al Zayani said.

The Manama Dialogue is held annually at Bahrain’s Ritz Carlton hotel. In-person attendance is limited this year because of Covid-19 pandemic, with many sessions conducted online.

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