Tag Archives: President Joe Biden

Why Saudi Arabia Is So Quiet About Iran’s Protests

Expressions of support for Iranian protesters have been pouring in from around the world—from leaders such as President Joe Biden, the former first lady Michelle Obama, French President Emmanuel Macron, and New Zealand Prime Minister Jacinda Ardern—as the protests, well into their second month, remain defiant and have even gained in intensity. But aside from some media coverage, those nations closest to Iran, its Gulf neighbors, have remained conspicuously silent. Most striking of all is the lack of any official response from Saudi Arabia—which one would expect to be cheering along the popular revolt against a regime that Riyadh considers its archenemy.

The Saudi silence stems from lessons the kingdom absorbed during the events that turned the Persian monarchy into an Islamic Republic: Wait until the outcome is clear, and then wait some more. The protests that brought down the shah in 1979 unfolded over more than a year. Although today’s protests have become the greatest challenge to the Islamic Republic since that time, no rapid conclusion seems likely; hence the Saudi policy of watchful waiting. Back then, the Saudis also misjudged the outcome after their ally the shah was deposed, because they believed that they could work with his successor, Ayatollah Ruhollah Khomeini—only to find he was an adversary. Whatever the outcome this time, Saudi Arabia seems certain to reserve judgment while buttressing its own position.

The House of Saud may consider that position already better secured by the recent reforms introduced by Crown Prince Mohammed bin Salman. In important respects, the kingdom has leapt into the 21st century: Women can drive, the hijab is no longer enforced, and the religious police have largely disappeared. Saudi Gen Zers of both sexes can mix in public, dance at raves, go to movie theaters, and cheer at football stadiums. The contrast with Iran is sharp. There, the Gen Zers are rising up against a repressive, ideologically driven regime that continues to enforce an outdated Islamic lifestyle, depriving them of fun and pleasure while failing to provide them with jobs and opportunities.

So if the Saudis are studiedly saying little, that silence may be underpinned by a quiet satisfaction. Right now, their record of managing such social pressures looks a lot better.

The events of today represent a stunning reversal of the situation in the 1960s, when the shah reportedly sent King Faisal bin Abdulaziz Al Saud a series of letters urging him to modernize and “make the schools mixed women and men. Let women wear miniskirts. Have discos. Be modern. Otherwise I cannot guarantee you will stay in your throne.” The king wrote back telling the shah he was wrong: “You are not the shah of France. You are not in the Élysée. You are in Iran. Your population is 90 percent Muslim.”

Such a candid and cordial exchange between the rulers of the two countries is hard to credit now, but before 1979, Saudi Arabia and Iran were regional partners—twin pillars in America’s Cold War efforts in the Middle East to contain the Soviet Union. The two monarchies—one Sunni, the other Shiite—were even allies in an intelligence partnership known as the Safari Club, which ran clandestine operations and fomented coups around Africa to roll back Soviet influence.

Given this relationship, the Saudis initially viewed the protests that engulfed Iran after 1977 as an internal affair, and refrained from comment. But as the movement to depose the shah grew, both Riyadh and Washington worried that a pro-Soviet regime dominated by leftists and nationalists would take over.

In early 1979, Saudi Arabia’s Crown Prince Fahd bin Abdulaziz Al Saud openly expressed support for the shah as Iran’s legitimate ruler. But by mid-January, the shah was gone, and within two weeks, Khomeini flew back triumphantly to Tehran. The secular revolutionaries thought they could exploit the ayatollah’s religious support and control him. They were wrong. Khomeini effectively hijacked the revolution and turned Iran into an Islamic Republic.

Saudi Arabia moved quickly to accept the outcome, relieved to see a man who spoke the language of religion rise to the top instead of leftist revolutionaries. Saudi Arabia congratulated Iran’s new prime minister, Mehdi Bazargan, and lauded the Iranian revolution for its solidarity with “the Arab struggle against the Zionist enemy.” In April, Prince Abdullah bin Abdulaziz Al Saud, the kingdom’s future ruler, spoke of his relief that the new Iran was “making Islam, not heavy armament, the organizer of cooperation” between their two countries.

Before long, though, the Saudis were facing an insurrection from their own zealots. In November 1979, religious extremists laid siege to the Holy Mosque in Mecca for two weeks. The deeply conservative kingdom had just begun relaxing some of its strictures with the recent introduction of television and cinemas. Those controversial advances now came to an abrupt end. Fearing that it might meet the same fate as the shah, the House of Saud staked its future on Sunni puritanism, further empowering the clerical establishment and pouring money into the religious police.

And little did the Saudis know what Khomeini had in store. Soon, the ayatollah was exporting the Islamic revolution around the region, wielding religion as a weapon and challenging the House of Saud’s position as leader of the Muslim world. If the Saudis had read Khomeini’s early writings, they would have had some inkling of his disdain for them. To counter Iran’s efforts to extend its influence, the Saudis promoted the kingdom’s brand of ultraorthodox Sunni Islam from Egypt to Pakistan.

As the Iranian revolution transformed the region, the shock of suddenly facing an implacable enemy instilled in the Saudis a visceral fear of popular uprisings—either within their own kingdom or in any neighboring country. This dread was still uppermost in their mind in 2011, when they watched millions of protesters throng the streets to bring down another American-backed leader, this time in the Arab world—Egypt’s Hosni Mubarak—during the Arab uprisings.

Today, Saudi Arabia and its neighbors would welcome a change of leadership in Iran, but uncertainty about the outcome governs Saudi caution. The protests are unlikely to lead to the wholesale overthrow of the ayatollahs in the short to medium term. So will the regime attempt to defuse internal pressures by giving in to some of the demands, reining in the religious police, focusing more on Iran’s domestic politics and economy and less on regional hegemony? Or will the current leadership come down hard on the protesters, causing the regime to step up internal repression and support for proxy militias in the region?

Given the pressure at home, the Islamic Republic may well unleash some of its allies to launch diversionary attacks against regional adversaries. Already, in September, Iran attacked Kurdish areas in northern Iraq with ballistic missiles. In October, Saudi Arabia shared intelligence with the U.S. that warned of an imminent attack on the kingdom—Riyadh is concerned that its currently fraught relationship with the U.S. could make it more vulnerable to an attack. (The October report contained no specific details, but the U.S. did raise the level of alert of its forces in the region.)

The official Saudi silence about the protests belies a somewhat more active posture: The royal court is thought to be funding Iran International, a London-based Persian TV channel, set up in 2017 as an opposition station and now beaming images of the protests back into Iran. Although satellite dishes are illegal, an estimated 70 percent of Iranian households own one, and Iran International has become a vital source of information inside the country and for the diaspora.

The Islamic Republic has repeatedly called on Saudi Arabia to shut down the station. “This is our last warning, because you are interfering in our internal affairs through these media,” the commander in chief of the Islamic Revolutionary Guard Corps, Hossein Salami, said last month. “You are involved in this matter and know that you are vulnerable.” The warning was repeated by the supreme leader’s military adviser, Major General Yahya Safavi, and Iranian authorities arrested a woman accused of links to the station.

The channel also reports on news from the region and from inside Saudi Arabia, where life for young Saudis has been so transformed in recent years. In early March 2020, the kingdom organized a “Persian Night” of music in the celebrated desert venue of Al Ula, inviting such major Iranian figures as the singer Andy to perform even as they’re banned from performing in their own country. Broadcast on Iran International television, the event was emblematic of the House of Saud’s aptitude at reading the times and social trends—in contrast to the limitations of Iran’s rulers, both the shah and the ayatollahs. The Saudis like to draw such comparisons to show how Iran is lagging behind.

But inside the kingdom, the new social and cultural reforms, and the rapid pace of their implementation, are not to everyone’s taste in the conservative monarchy—which is why the new freedoms also have strict limits. Under bin Salman, Saudi Arabia has become more authoritarian. Aside from the high-profile killing of the journalist Jamal Khashoggi, murdered in the Saudi consulate in Istanbul, the kingdom has cracked down on anyone remotely critical of the changes. These include such minimal-seeming threats as a young Saudi mother of two studying in Leeds who was jailed while visiting home for retweeting Saudi dissidents and spreading “false” information, and a U.S.-Saudi dual national who was sentenced to 16 years in prison after sending out critical tweets.

Looking at events in Iran, the Saudi crown prince may be congratulating himself for defusing the social discontent that had been building inside the kingdom for years. But he will likely continue to do so quietly—notwithstanding Iran International’s coverage—because the ultimate lesson from 1979 is that geopolitical fallout from the coming changes within Iran will wash over the region. And any interregnum will be messy.



Read original article here

Senate Democrats pass Inflation Reduction Act; House to vote next

WASHINGTON D.C. — Democrats pushed their election-year economic package to Senate passage Sunday, a hard-fought compromise less ambitious than President Joe Biden’s original domestic vision but one that still meets deep-rooted party goals of slowing global warming, moderating pharmaceutical costs and taxing immense corporations.

The estimated $740 billion package heads next to the House, where lawmakers are poised to deliver on Biden’s priorities, a stunning turnaround of what had seemed a lost and doomed effort that suddenly roared back to political life. Democrats held united, 51-50, with Vice President Kamala Harris casting the tie-breaking vote.

“It’s been a long, tough and winding road, but at last, at last we have arrived,” said Senate Majority Leader Chuck Schumer, D-N.Y., ahead of final votes.

“The Senate is making history. I am confident the Inflation Reduction Act will endure as one of the defining legislative measures of the 21st century.”

Senators engaged in a round-the-clock marathon of voting that began Saturday and stretched late into Sunday afternoon. Democrats swatted down some three dozen Republican amendments designed to torpedo the legislation. Confronting unanimous GOP opposition, Democratic unity in the 50-50 chamber held, keeping the party on track for a morale-boosting victory three months from elections when congressional control is at stake.

“I think it’s gonna pass,” Biden told reporters as he left the White House early Sunday to go to Rehoboth Beach, Delaware, ending his COVID-19 isolation. The House seemed likely to provide final congressional approval when it returns briefly from summer recess on Friday.

The bill ran into trouble midday over objections to the new 15% corporate minimum tax that private equity firms and other industries disliked, forcing last-minute changes.

Despite the momentary setback, the “Inflation Reduction Act” gives Democrats a c ampaign-season showcase for action on coveted goals. It includes the largest-ever federal effort on climate change – close to $400 billion – caps out-of-pocket drug costs for seniors on Medicare to $2,000 a year and extends expiring subsidies that help 13 million people afford health insurance. By raising corporate taxes, the whole package is paid for, with some $300 billion extra revenue for deficit reduction.

Barely more than one-tenth the size of Biden’s initial 10-year, $3.5 trillion rainbow of progressive aspirations in his Build Back Better initiative, the new package abandons earlier proposals for universal preschool, paid family leave and expanded child care aid. That plan collapsed after conservative Sen. Joe. Manchin, D-W.Va., opposed it, saying it was too costly and would fuel inflation.

Nonpartisan analysts have said the “Inflation Reduction Act” would have a minor effect on surging consumer prices.

Republicans said the measure would undermine an economy that policymakers are struggling to keep from plummeting into recession. They said the bill’s business taxes would hurt job creation and force prices skyward, making it harder for people to cope with the nation’s worst inflation since the 1980s.

“Democrats have already robbed American families once through inflation, and now their solution is to rob American families a second time,” Senate Minority Leader Mitch McConnell, R-Ky., argued. He said spending and tax increases in the legislation would eliminate jobs while having insignificant impact on inflation and climate change.

In an ordeal imposed on all budget bills like this one, the Senate had to endure an overnight “vote-a-rama” of rapid-fire amendments. Each tested Democrats’ ability to hold together a compromise negotiated by Schumer, progressives, Manchin and the inscrutable centrist Sen. Kyrsten Sinema, D-Ariz.

Progressive Sen. Bernie Sanders, I-Vt., offered amendments to further expand the legislation’s health benefits, and those efforts were defeated. Most votes were forced by Republicans and many were designed to make Democrats look soft on U.S.-Mexico border security and gasoline and energy costs, and like bullies for wanting to strengthen IRS tax law enforcement.

Before debate began Saturday, the bill’s prescription drug price curbs were diluted by the Senate’s nonpartisan parliamentarian. Elizabeth MacDonough, who referees questions about the chamber’s procedures, said a provision should fall that would impose costly penalties on drug makers whose price increases for private insurers exceed inflation.

It was the bill’s chief protection for the 180 million people with private health coverage they get through work or purchase themselves. Under special procedures that will let Democrats pass their bill by simple majority without the usual 60-vote margin, its provisions must be focused more on dollar-and-cents budget numbers than policy changes.

But the thrust of their pharmaceutical price language remained. That included letting Medicare negotiate what it pays for drugs for its 64 million elderly recipients, penalizing manufacturers for exceeding inflation for pharmaceuticals sold to Medicare and limiting beneficiaries out-of-pocket drug costs to $2,000 annually.

The bill also caps Medicare patients’ costs for insulin, the expensive diabetes medication, at $35 monthly. Democrats wanted to extend the $35 cap to private insurers but it ran afoul of Senate rules. Most Republicans voted to strip it from the package, though in a sign of the political potency of health costs seven GOP senators joined Democrats trying to preserve it.

The measure’s final costs were being recalculated to reflect late changes, but overall it would raise more than $700 billion over a decade. The money would come from a 15% minimum tax on a handful of corporations with yearly profits above $1 billion, a 1% tax on companies that repurchase their own stock, bolstered IRS tax collections and government savings from lower drug costs.

Sinema forced Democrats to drop a plan to prevent wealthy hedge fund managers from paying less than individual income tax rates for their earnings. She also joined with other Western senators to win $4 billion to combat the region’s drought.

Several Democratic senators joined the GOP-led effort to exclude some firms from the new corporate minimum tax.

The package keeps to Biden’s pledge not to raise taxes on those earning less than $400,000 a year.

It was on the energy and environment side that compromise was most evident between progressives and Manchin, a champion of fossil fuels and his state’s coal industry.

Clean energy would be fostered with tax credits for buying electric vehicles and manufacturing solar panels and wind turbines. There would be home energy rebates, funds for constructing factories building clean energy technology and money to promote climate-friendly farm practices and reduce pollution in minority communities.

Manchin won billions to help power plants lower carbon emissions plus language requiring more government auctions for oil drilling on federal land and waters. Party leaders also promised to push separate legislation this fall to accelerate permits for energy projects, which Manchin wants to include a nearly completed natural gas pipeline in his state.

Copyright © 2022 by The Associated Press. All Rights Reserved.



Read original article here

President Biden’s Trip to Chicago Postponed as Negotiations Continue on Key Legislation – NBC Chicago

President Joe Biden’s expected trip to Chicago has been postponed and will be rescheduled, a White House official has confirmed to NBC News.

NBC 5 Political Reporter Mary Ann Ahern reported the story Tuesday afternoon, citing a source with knowledge of the president’s plans.

The president had been slated to visit the city on Wednesday to highlight a Chicago business that had enforced a COVID vaccine mandate, according to a Chicago Sun-Times report.

According to a White House official, Biden’s trip to Chicago will be rescheduled.

“In meetings and calls over the weekend and through today, President Biden has been engaging with members of Congress on the path forward for the Build Back Better Act and the Bipartisan Infrastructure Deal,” the official told NBC News’ Geoff Bennett and Kelly O’Donnell. “He will now remain at the White House tomorrow to continue working on advancing these two pieces of legislation to create jobs, grow the economy, and make investments in families, rather than failed giveaways to the rich and big corporations.”

Chicago Mayor Lori Lightfoot and Illinois Gov. J.B. Pritzker have both praised area businesses requiring vaccinations for customers in both the city and state, though they have stopped short of issuing mandates citywide or statewide. Certain groups are required to get vaccinated in the state, however, including health care workers, teachers and higher education students.

“I applaud those venues requiring vaccination proof or a negative test to get admittance,” Lightfoot said earlier this month. “I think we’ll see more of that. This is a conversation happening across every industry sector, and we support it.”

New York City, San Francisco and New Orleans are among the cities that have started requiring proof of vaccination for public indoor spaces.

President Joe Biden says he takes responsibility for the issues at the U.S.-Mexico border, and says the images of border patrol agents were “outrageous.”

Biden earlier this month unveiled a so-called “action plan” aimed at confronting the COVID-19 surge being driven by the spread of the delta variant, which will require vaccinations for millions of workers across the country.

The expansive rules mandate that all employers with more than 100 workers require them to be vaccinated or test for the virus weekly, affecting about 80 million Americans. And the roughly 17 million workers at health facilities that receive federal Medicare or Medicaid also will have to be fully vaccinated.

Biden is also requiring vaccination for employees of the executive branch and contractors who do business with the federal government — with no option to test out. That covers several million more workers.

Read original article here

Microsoft, BlackBerry, GE, Leon Black – 5 Things You Must Know

Here are five things you must know for Tuesday, Jan. 26:

1. — Stock Futures Move Higher on Solid Earnings

Stock futures moved mostly higher Tuesday following solid earnings reports from Johnson & Johnson  (JNJ) – Get Report, 3M  (MMM) – Get Report and General Electric  (GE) – Get Report.

Equities had wavered for most of the premarket session on the possibility that a U.S. coronavirus relief package could be delayed. 

Contracts linked to the Dow Jones Industrial Average rose 56 points, S&P 500 futures rose 2 points and Nasdaq futures were down 7 points ahead of earnings reports from some of the biggest tech companies.

Senate Majority Leader Chuck Schumer said Monday an aid package was unlikely before mid-March. That is when federal unemployment benefits authorized by last $900 billion package will expire.

President Joe Biden said he was open to negotiations on his proposed $1.9 trillion plan to send $1,400 to most Americans and deliver other support for the economy, including funds for vaccine distribution.

A bipartisan group of senators already have voiced opposition to the size of Biden’s plan.

The coronavirus pandemic, meanwhile, has killed more than 421,000 in the U.S. and concerns have been growing about the bumpy rollout of vaccines in the country. Biden said he anticipates vaccines will be available to anyone in the U.S. by spring, but to meet that projection vaccine makers will have to sharply increase production.

Stocks finished mixed on Monday amid questions about whether the Biden White House will be able to deliver another round of stimulus. The S&P 500 and Nasdaq, however, did manage to close at record highs.

2. — Tuesday’s Calendar: Microsoft and AMD Earnings, Federal Reserve Meeting

General Electric  (GE) – Get Report reported fourth-quarter adjusted earnings of 8 cents a share, 1 cent below analysts’ estimates. Total revenue of $21.93 billion topped forecasts.

Johnson & Johnson  (JNJ) – Get Report posted stronger-than-expected fourth- quarter earnings and said Tuesday it would provide an update on its vaccine development progress “soon.”

“We continue to progress our Covid-19 vaccine candidate and look forward to sharing details from our Phase 3 study soon. Johnson & Johnson was built for times like these, and I am extremely confident in our ability to deliver lasting value and continued innovation in 2021 and for years to come,” said CEO Alex Gorsky.

Earnings reports are also expected Tuesday from Microsoft  (MSFT) – Get Report, Advanced Micro Devices  (AMD) – Get Report, Starbucks  (SBUX) – Get Report, Verizon  (VZ) – Get Report, Lockheed Martin  (LMT) – Get Report, American Express  (AXP) – Get Report, 3M  (MMM) – Get Report, Xilinx  (XLNX) – Get Report, Raytheon Technologies  (RTX) – Get Report and Texas Instruments  (TXN) – Get Report.

Microsoft, Advanced Micro Devices and Starbucks are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

The U.S. economic calendar on Tuesday includes the first day of a two-day meeting of the Federal Reserve. The central bank isn’t expected to move on interest rates and has signaled it will keep them near zero through 2023.

Mark Heppenstall, chief investment officer at Penn Mutual Asset Management, said the central bank likely will reiterate its “commitment to prolonged monetary accommodation” at the meeting.

“Uncertainty surrounding the pandemic’s near-term course and signs of weakening labor markets suggest recent taper talk by Fed officials is still premature,” Heppenstall added, referring to when the Fed might  begin tapering asset purchases.

The calendar also includes the Case-Shiller Home Price Index for November at 9 a.m. ET and Consumer Confidence for January at 10 a.m.

3. — Leon Black Will Step Down as CEO of Private-Equity Giant Apollo

Leon Black, the founder and CEO of private-equity giant Apollo Global Management  (APO) – Get Report, will step down as chief executive after it was revealed he made larger-than-expected payments to Jeffrey Epstein, the disgraced financier.

Black paid Epstein $158 million in fees for trust- and estate-tax planning in the five years to 2017, far more than was previously known, according to a report from law firm Dechert. 

The review by Dechert found no evidence that Black was involved in the criminal activities of the late Epstein, who was indicted in 2019 on federal sex-trafficking charges involving underage girls. Epstein committed suicide in prison while awaiting child sex charges.

Apollo also never retained Epstein for any services, the report concluded. 

Black wrote in a letter to Apollo’s fund investors that he would cede the role of CEO to co-founder Marc Rowan on or before his 70th birthday on July 31, while retaining the role of chairman. 

The Wall Street Journal was first to report on the contents of the report and letter.

Shares of Apollo Global rose 3.86% to $47.65 in after-hours trading on Monday.

4. — BlackBerry Shares Surge Again

BlackBerry  (BB) – Get Report was jumping more than 11% in premarket trading Tuesday, following the stock’s more than 28% gain in the previous session as it received a boost from retail traders and was being heavily mentioned on online message boards such as Reddit.

BlackBerry, the security software and services company, said in a statement that it was unaware of reasons for the stock move.

Shares of BlackBerry rose 11.87% to $20.17 in premarket trading Tuesday. The stock has gained 172% so far in 2021.

BlackBerry Rises Again, Gets Lift From Expanded Baidu Partnership

Analysts at RBC cut the stock to underperform from sector perform, citing valuation and saying there has been no change to the company’s fundamental outlook. Analyst Paul Treiber maintained his price target at $7.50.

BlackBerry has become a favorite on the Reddit message board, much like GameStop  (GME) – Get Report and Express  (EXPR) – Get Report.

What Is Happening to GameStop Stock? Jim Cramer Explains

5. — Apple Lead Hardware Engineer Shifting to ‘New Project’

Apple  (AAPL) – Get Report said its leading hardware engineer, Dan Riccio, was moving to a new project and will be replaced by John Ternus, currently a vice president of hardware engineering.

Riccio has been with Apple since 1998 and has worked on most of the company’s major products over that time, from the first iMac computers to the latest 5G phones.

Apple didn’t specify what project Riccio will lead. But recent speculation has focused on efforts by the company to develop a high-end virtual reality headset, or augmented reality glasses.

Apple is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.



Read original article here