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| Insight - Sanctions-scarred banks may hold back Iran's economic relief | |  By Yeganeh Torbati, Anna Yukhananov and Karen Freifeld WASHINGTON/NEW YORK (Reuters) - Major banks wary of heavy U.S. penalties will be reluctant to restore ties with Iran even if sanctions are lifted in a possible nuclear deal, bank executives and advisers say, likely denting Iran's ambition to attract foreign investment to revive its crippled economy. After years of being frozen out of the global banking system and most trade with the West, Iran is eager for sanctions to be lifted so it can draw in foreign companies and attract investment to upgrade its long-neglected energy sector. Yet without more bank financing and a means of transferring funds in and out of Iran, that commercial potential could remain largely untapped, stunting hopes for a post-agreement investment boom. Banks' reluctance to deal with Iran highlights the risk that its economy will not get quick relief, possibly eroding support for the nuclear deal among Tehran's leadership.
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| Attack on guest house in Afghan capital kills at least five, including two Indians | |  By Mirwais Harooni KABUL (Reuters) - At least one gunman attacked a guest house popular with foreigners in Kabul on Wednesday killing at least five people, including an American and two Indians, in a bold assault that showed Afghanistan still faces security challenges. Authorities cordoned off the area around the Park Palace guest house in Kabul's Kolola Pushta, a diplomatic enclave in the Afghan capital that includes a number of guest houses used by foreigners, immediately after the attack began at about 8:30 p.m. local time (1600 GMT). No one immediately claimed responsibility for the attack, although similar brazen assaults in the past have been carried out by the Taliban and the al Qaeda-linked Haqqani network. The brutal assault was reminiscent of two attacks by Taliban fighters in Kabul last year, one on a restaurant and another on a hotel.
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| Crowds cheer as Burundi army officer says he has deposed absent president | |  By Njuwa Maina BUJUMBURA (Reuters) - A Burundian general said on Wednesday he had deposed President Pierre Nkurunziza for seeking an unconstitutional third term in office and was forming a transitional government, after more than two weeks of protests against the re-election bid. It was hard to establish who was in control in Burundi.
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| Beijing police warn "strange outfits" on subway may cause stampedes | |  Beijing police are patrolling the city's subways and trains to stop people wearing face masks, strange costumes and forming flash mobs, warning commuters that such actions could jeopardise public safety by causing stampedes. State news agency Xinhua said law enforcement teams, which started the patrols on May 1, and have encountered 83 cases of "improper behaviour", including hawking, begging and the distribution of advertising flyers. Costumes and masks are likely to attract the attention of other passengers, Xinhua quoted Liang Jianwei, vice head of the Beijing municipal traffic administration corps, as saying. Passengers should avoid forming flash mobs, the article quoted Liang as saying.
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| Exclusive - Czechs stopped potential nuclear tech purchase by Iran: sources | | | By Louis Charbonneau and Robert Muller UNITED NATIONS/PRAGUE (Reuters) - The Czech Republic blocked an attempted purchase by Iran this year of a large shipment of sensitive technology useable for nuclear enrichment after false documentation raised suspicions, U.N. experts and Western sources said. The incident could add to Western concerns about whether Tehran can be trusted to adhere to a nuclear deal being negotiated with world powers under which it would curb sensitive nuclear work in exchange for sanctions relief. The negotiators are trying to reach a deal by the end of June after hammering out a preliminary agreement on April 2, with Iran committing to reduce the number of centrifuges it operates and agreeing to other long-term nuclear limitations. |
| Abe's cabinet to approve Japan security bills; voters wary, confused | |  Japan's cabinet was set to approve on Thursday bills to implement a drastic shift in security policy allowing the military to fight abroad for the first time since World War Two, although the public is divided and wary of the change. The planned changes, reflected in new U.S.-Japan defence guidelines unveiled last month, set the stage for Japan to play a bigger role in the bilateral alliance as Tokyo and Washington face challenges such as China's growing military assertiveness. Prime Minister Shinzo Abe's cabinet adopted a resolution last July reinterpreting the pacifist constitution to drop a self-imposed ban on exercising the right of collective self-defence, or militarily aiding a friendly country under attack. Abe is expected to hold a news conference after his cabinet approves the bills following the formal sign-off by his Liberal Democratic Party and its more dovish partner, the Komeito party.
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