Economic
Fed Lifts Rates by 0.75 Point Again
The Federal Reserve continued a sprint to reverse its easy-money policies by approving another unusually large interest rate increase and signaling more rises were likely coming to combat inflation that is running at a 40-year high. Officials agreed unanimously July 27 to lift their benchmark federal-funds rate to a range between 2.25% and 2.5%. But markets rallied after the meeting because Fed Chairman Jerome Powell offered fewer specifics about the magnitude of upcoming rate rises and hinted at an eventual slowdown. Stocks rallied after Mr. Powell’s news conference. The S&P 500 gained 2.6% to close at 4023.61. Yields on the benchmark 10-year Treasury note fell to 2.79%. Given Mr. Powell’s insistence that the Fed has to cause slower growth and accept rising recession risks to bring down inflation, “it is a bit surprising that all assets reacted in such an exuberant manner,” said Michael de Pass, global head of linear rates trading at Citadel Securities. Mr. Powell said July 27 it was too soon to say whether the Fed would dial down the size of its rate increases to a half-percentage point or a quarter-percentage point at its next meeting in September. But he said that at some stage, it would be appropriate to slow the pace of rate increases to assess their cumulative impact on the economy. Click here to read…
China’s Politburo ‘insists’ on zero-Covid, omits mention of GDP growth target
China’s top leadership defended its zero-Covid policy in a tone-setting economic conference on July 28, making it a political priority while calling for a long-term perspective on pandemic control and economic growth ahead of the 20th party congress later this year. However, the 25-member Politburo, which is headed by President Xi Jinping, softened its language on achieving the full-year growth target of “around 5.5 per cent”, which is looking increasingly distant due to periodic coronavirus outbreaks, global recession risks and trade tensions. In its quarterly assessment of the economy, the Politburo made it clear that it wanted to strike a balance between Covid control, economic growth and development – a message unchanged from its April meeting, despite underwhelming growth in the second quarter. “We must review the relationship between pandemic control and economic development comprehensively, systematically and with a long-term perspective,” the official Xinhua News Agency reported on July 28, citing the Politburo statement. “Particularly, it must be reviewed from a political point of view and with political calculations. “Dynamic zero-Covid must be insisted on. Strict control measures must be put in place immediately after the pandemic outbreak. There must be no slackness or tiredness.” Beijing has clung to its rigid pandemic controls when much of the world has moved to live with the virus, citing its duty to save lives. Click here to read…
China’s foreign businesses adapt by looking inward for talent as zero-Covid keeps expats away
Foreign businesspeople, having struggled throughout the pandemic to cope with China’s draconian lockdown measures, are holding out hope that leaders in Beijing will allow for more leeway to address the nation’s economic hardships after this autumn’s critically important 20th Party Congress. Doing so would serve to help bring more expatriates back to China, they say, according to representatives of foreign business chambers operating in the country. And some also say Hong Kong should take the lead in relaxing its quarantine policy – shifting it away from mandatory hotel quarantines. Such compulsory precautions remain a hindrance to some business operations in the international business hub where 94 per cent of the population has received at least two vaccinations against the coronavirus. Meanwhile, business chamber representatives added that the widely reported departure of expatriates from mainland China and Hong Kong has been mainly based on “anecdotal examples”, without official counting or formal numbers reflecting the so-called exodus trend that has dominated headlines in recent months. Middle and senior management groups are among those deciding to leave or delay their return, according to business chambers, and one of their primary concerns is their children’s education. Meanwhile, luring outside talent to Hong Kong and mainland China has also become difficult. Click here to read…
US, Japan launch economic dialogue and agree to cooperate on next-gen semiconductors
Long-time allies the United States and Japan launched a new high-level economic dialogue on July 29 aimed at pushing back against China and countering the disruption caused by Russia’s invasion of Ukraine. The two countries agreed to establish a new joint research center for next-generation semiconductors during the so-called economic “two-plus-two” ministerial meeting in Washington, Japanese Trade Minister Koichi Hagiuda said. US Secretary of State Antony Blinken, US Commerce Secretary Gina Raimondo, Japan’s Foreign Minister Yoshimasa Hayashi and Hagiuda also discussed energy and food security, the officials said in a press briefing. “As the world’s first- and third- largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper,” Blinken told the opening session. Blinken said recent world events, including COVID-19 and the war in Ukraine, had shown the vulnerability of critical supply chains, while a growing number of countries were struggling with debt burdens due to unsustainable and non-transparent lending practices. “The coercive and retaliatory economic practices of the People’s Republic of China force countries into choices that compromise their security, their intellectual property, their economic independence,” he said. Click here to read…
Blackouts bedevil Bangladesh as South Asia forex worries mount
Bangladesh is sinking deeper into a power crisis that has alarming echoes of the electricity woes seen in its politically and economically troubled South Asian neighbors Sri Lanka and Pakistan. Blackouts due to load shedding — when utilities interrupt some electricity supply to avoid overstretching their capacity — have become increasingly common as the country struggles to import enough fuel for its power plants amid rising international prices. This is undercutting claims by Prime Minister Sheikh Hasina’s government that it had solved the power deficiency that once plagued the nation. As recently as late March, the government was boasting that it had made electricity available to 100% of the population. But at the beginning of July, Hasina conceded that the industry faced significant challenges. “Prices have gone up to such an extent that it has now become difficult to keep the power plants running with the gas we have in stock,” she said in an online appearance on July 7.The outages come amid growing worries over the country’s depleting foreign currency reserves, which recently slipped below $40 billion for the first time in about two years. The finance minister this week said that Dhaka is asking the International Monetary Fund for a loan, without specifying the amount, though he insisted the economy was “no way in trouble,” according to Reuters. Click here to read…
OPEC secretary general says Russia’s membership in OPEC+ is vital for success of agreement
OPEC’s new secretary general said that Russia’s membership in OPEC+ is vital for the success of the agreement, Kuwait’s Alrai newspaper reported on July 31, quoting an exclusive interview with Haitham al-Ghais. He said OPEC is not in competition with Russia, calling it “a big, main and highly influential player in the world energy map”, Alrai reported. OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia. Al-Ghais, Kuwait’s former OPEC governor, will head his first OPEC+ meeting on Aug. 3, in which the group will consider keeping oil output unchanged for September, despite calls from the United States for more supply. Although, a modest output increase is also likely to be discussed, eight sources told Reuters last week. AL-Ghais told Alrai that “OPEC doesn’t control oil prices, but it practices what is called tuning the markets in terms of supply and demand,” describing the current state of the oil market as “very volatile and turbulent.” He added of the recent hikes in oil prices: “As for me, I still stress that the recent rise in oil prices is not only related to the developments between Russia and Ukraine.” Click here to read…
Beijing probes leaders of China’s semiconductor industry drive
At least three leading figures linked with China’s effort to develop a domestic chip industry including the country’s minister of industry and information technology have been placed under investigation, Chinese government announcements and local media reports show. Xiao Yaqing, the industry minister, is suspected of violating discipline and laws and has been put under regulatory probe, China’s Central Commission for Discipline Inspection (CCDI) said July 28. No further details were disclosed. The Ministry of Industry and Information Technology is a major agency behind China’s push for a self-reliant chip industry. The latest investigations targeting high-ranking Communist Party officials signal an escalation in Beijing’s crackdown on the technology sector, extending it to the semiconductor industry — the key battleground in the Washington-Beijing tech competition. Chinese media outlet Caixin reported July 28 that Ding Wenwu, president of China Integrated Circuit Industry Investment Fund, is under investigation. The entity, nicknamed the Big Fund, is the country’s primary funding mechanism to build a competitive semiconductor industry. No government record of the probe has been posted. The industry ministry plays a supervisory role in the Big Fund, while the Finance Ministry is the biggest shareholder, according to government records and corporate data platform Qichacha. Click here to read…
Ant Group execs left Alibaba Partnership after China crackdown
Ant Group executives are no longer part of Alibaba Partnership, a body that can nominate the majority of the e-commerce giant’s board, Alibaba’s annual report released on Tuesday showed, as the pair decouple after Beijing’s sweeping regulatory crackdown. Alibaba Group has amended its partnership terms, one that was created in 2010 and comprised a group of people with the power to nominate a majority of Alibaba’s board. The terms now allow only Alibaba employees to be part of the partnership. Employees of Alibaba’s affiliates were no longer partners from May 31, Alibaba said in the filing. Ant said in a statement the move was “part of our continuous efforts to enhance corporate governance.” Seven Ant Group executives including CEO Eric Jing have stepped down from Alibaba Partnership. Others include its chief technology officer and chief people officer. Two of Alibaba’s retired executives also left the partnership, leaving the total number of Alibaba Partners at 29 from 38 in 2021. Alibaba retains a third of Ant, which it spun off in 2011. After a sweeping restructuring by Beijing derailed Ant’s $37 billion initial public offering in 2020, the two companies have taken steps to set strict operational boundaries, Reuters reported. Click here to read…
Russia reduces gas flow to EU via vital pipeline
Gas supply through the Nord Stream 1 pipeline from Russia to Germany has been reduced further to one-fifth of maximum capacity, German gas network operator Gascade confirmed on July 27. According to a statement released by Gascade, as of July 27 morning, “1.28 million cubic meters per hour, or about 20% of Nord Stream’s maximum capacity, has been transported via Nord Stream 1 in accordance with nominations.” Gazprom announced earlier that it would stop the operation of a second Siemens turbine on Wednesday as the pumping equipment was due for an overhaul. The Russian gas giant said on July 26 that after the switch off, supply through the Nord Stream 1 pipeline will not exceed 33 million cubic meters per day. The reduction of supply from Russia has led to a spike in gas prices in Europe, which rose by more than 20%, to the highest levels since March to over $2,500 per thousand cubic meters on Wednesday. This follows a dispute over a Siemens turbine that had been sent to Canada for repairs and was not returned on time due to Ottawa’s sanctions on Moscow. Gazprom cited the delay as the reason for a 60% reduction in gas flow to Germany last month. The part is currently in Germany awaiting shipment to Russia. Click here to read…
EU gas rationing plan won’t suceeed – The Economist
The EU’s gas rationing plan approved on Tuesday may not stand the test of a cold winter, Britain’s The Economist magazine warned on July 27. A “meagre” cut to gas consumption will not solve the continent’s problems, the publication wrote, referring to the plan that will see most EU nations voluntarily reduce their use of natural gas by 15% between August 1 and March 31 next year. The deal was struck as fears grow over a possible halt of Russian gas supplies. At the moment the Nord Stream 1 pipeline, a key artery that carries natural gas from Russia to Germany, is operating at 20% capacity. Russian energy giant Gazprom cites technical issues with turbines as the reason for the reduced flow. However, the EU believes that Moscow is using gas to exert political pressure on the bloc. An alternative route via Ukraine has been restricted by Kiev. The main reason for the rationing is to “ensure that a shortfall of Russian gas does not leave homes unheated or factories shuttered”, The Economist writes, but according to the publication, its success largely depends on the weather. Click here to read…
Timeframe for proposed Russian oil price cap revealed
A price cap mechanism intended to limit Moscow’s revenue from oil exports could be in place by early December, Reuters reported on July 27, citing a senior official within the Group of Seven richest Western economies. December 5 has been named as the date when European Union sanctions banning seaborne imports of Russian crude will come into force, Reuters explains. “The goal here is to align with the timing that the EU has already put in place. We want to make sure that the price cap mechanism goes into effect at the same time,” an unnamed official told the agency. The G7, which includes the United States, Canada, Japan, Germany, France, Italy and Britain, wants to set a price cap on Russian crude to cut Moscow’s income flow and force it to abandon its military operation in Ukraine. They have also been trying to lure China and India, major buyers of Russian crude, to join the deal. The G7 wants the price of Russian crude to be set at a level above production costs but significantly lower than current market prices, Reuters added. Moscow said last week it would stop supplying countries that join the limiting mechanism as a price ceiling would make oil more expensive and hurt Russian producers. Central Bank of Russia Governor Elvira Nabiullina warned that instead of complying with the cap, Russia would redirect its supply to countries that do not impose such a price limit. Click here to read…
Russian Space Station to Replace ISS Will Be Built No Earlier Than 2028
The construction of a new Russian Orbital Service Station (ROSS) will begin no earlier than 2028, Vladimir Solovyov, the general designer for Russian manned systems and the general designer of RSC Energia, said. “We propose to build it in two stages. If the decision on its construction is made before the end of the year, then the first stage will begin in 2028 with the launch of the Science Power Module by the Angara-A5M launch vehicle,” Solovyov said in an interview with the Russian Space magazine. After that, the node and gateway modules will be launched on the same rocket. The first will be similar to the module that is already part of the International Space Station. The second will be used for spacewalks. Earlier, it was reported that the launch of the first module could take place in 2027-2028. “After the docking of the Node Module in 2028, it will be possible to send the first crew from Baikonur by a Soyuz-2.1b launch vehicle on a Soyuz-type spacecraft,” Solovyov said.nFor this, the Soyuz-2.1b rocket would need to be certified for manned flights, he explained. It is a more powerful version of the Soyuz-2.1a currently used in manned cosmonautics, and it will be needed due to the fact that launches into orbit with an inclination of 97 degrees require more energy than to the ISS, which flies at an inclination of 51.6 degrees. Click here to read…
Sony, Samsung duel for image sensor lead
The market for image sensors has become extremely competitive as Sony fights to maintain its lead, Samsung seeks to extend recent gains, Omnivision establishes itself as a strong number 3 and Canon introduces impressive new technology. Consumers should benefit while American high-tech nationalists fret over Asia’s overwhelming presence in the market. Sony, which has dominated the image sensor market for many years, has by its own calculation lost 10 percentage points of market share, dropping from 53% to 43% over the past two years. To reverse this decline, it has launched an aggressive campaign to expand capacity, upgrade its technology and diversify from smartphones into automotive, virtual reality and other applications According to estimates issued by various market research organizations, Samsung has moved up from 18% to at least 22% of the market, propelled by its own cellphone operations, capacity expansion and new customers. Its share of the smartphone market may be as high as 26%. Like Sony, it sees a bright future in assisted driving. OmniVision has increased its market share from just under 10% to as much as 14% as a result of new product development and opportunities in China. An American company with a presence in Europe and Asia, it is now owned by China’s Will Semiconductor. Click here to read…
Meta posts first-ever revenue drop as inflation throttles ad sales
Meta Platforms Inc issued a gloomy forecast after recording its first ever quarterly drop in revenue on July 27, with recession fears and competitive pressures weighing on its digital ads sales. Shares of the Menlo Park, California-based company were down about 4.6 percent in extended trading. The company said it expects third-quarter revenue to fall to $26 billion and $28.5 billion, which would make it a second year-over-year drop in a row. Analysts were expecting $30.52 billion, according to IBES data from Refinitiv. Total revenue, which consists almost entirely of ad sales, fell 1 percent to $28.8 billion in the second quarter ended June 30, from $29.1 billion last year. The figure slightly missed Wall Street’s projections of $28.9 billion, according to Refinitiv. The company, which operates the world’s largest social media platform, reported mixed results for user growth. Monthly active users on flagship social network Facebook came in slightly under analyst expectations at 2.93 billion in the second quarter, an increase of 1 percent year over year, while daily active users handily beat estimates at 1.97 billion. Like many global companies, Meta is facing some revenue pressure from the strong dollar, as sales in foreign currencies amount to less in dollar terms. Meta said it expected a 6 percent revenue growth headwind in the third quarter, based on current exchange rates. Click here to read…
Israel and Jordan advance plans to complete joint industrial park
Israel has announced plans to advance the construction of a previously-approved multimillion-dollar joint industrial park with Jordan, along the two countries’ shared border. The decision for the project, dubbed the “Jordan Gateway”, came during an Israeli government cabinet meeting on July 31. According to an Israeli statement, the idea was first proposed in 1994 when the two countries normalised ties, but the “final details” were agreed upon during a meeting last week between Jordan’s King Abdullah II and acting Israeli Prime Minister Yair Lapid in the Jordanian capital, Amman. “Twenty-eight years since the peace agreement with Jordan, we are taking the good neighbourly relations between our two countries another step forward,” Lapid said on July 31. “This is a breakthrough that will contribute greatly to developing and strengthening the region.” There was no immediate comment from the Jordanian government on the project. Work on the project had already begun in recent years, including the completion of a bridge between the two sides of the park to serve as a crossing. It is located just above the northeastern part of the Israeli-occupied West Bank, close to the Israeli city of Beit She’an, formerly called Beisan prior to the expulsion of its Palestinian residents in 1948 when Israel was established, in what Palestinians refer to as the Nakba, or “catastrophe”. Click here to read…
Strategic
US and Russia hold first top level call since February
Russian Foreign Minister Sergey Lavrov spoke to US Secretary of State Antony Blinken at Washington’s request by phone on July 29, the ministry has confirmed. It was the first conversation between Moscow and Washington’s top diplomats since Russia launched its military offensive in Ukraine in February. Aside from the conflict, they discussed the Ukrainian grain export deal, signed in Turkey last week, and a potential prisoner exchange between the two nations, the ministry reported. Earlier on July 29, Blinken told a news briefing that he had “a frank and direct conversation” with the Russian minister and “pressed the Kremlin to accept the substantial proposal that we put forth on the release of Paul Whelan and Brittney Griner.” Basketball star Brittney Griner and former US Marine Paul Whelan are currently both in Russian custody. Griner was arrested on drug smuggling charges, and Whelan was jailed for espionage. CNN reported earlier they could be exchanged for Russian arms dealer Viktor Bout, who was sentenced to 25 years’ imprisonment by a Manhattan federal court in 2012 on charges of providing aid to a US-designated terrorist organization and conspiring to kill US nationals. Moscow has not confirmed receiving any specific proposals on the matter from the US and instead said Lavrov urged the US to “return to professional dialogue in the form of ‘quiet diplomacy’ without any speculations.” Click here to read…
Xi Jinping urges Chinese Communist Party to step up efforts to ‘win hearts and minds’ in Hong Kong and Taiwan
Chinese President Xi Jinping has urged the Communist Party to find innovative ways to cultivate “patriotic forces” and supporters in Taiwan, Hong Kong and overseas. Analysts said Xi’s call shows China’s ruling party is trying to update its playbook to ensure it remains effective and relevant. State media reported on July 30 that Xi had addressed a conference for senior officials in the United Work Front Department – the body responsible for dealing with non-party individuals and groups both inside and outside China. “[We] must strengthen the building of overseas patriotic forces, cultivate and expand the strength of those who know China and are willing to befriend China, and promote exchanges and mutual learning of Chinese and foreign cultures and civilisations,” he said, according to state news agency Xinhua. He told the conference the United Work Front faced “major changes” in its missions and tasks. “Profound changes unseen in a century in the world are accelerating, and the United Front is becoming more important in safeguarding [China’s] national sovereignty, security and development interests,” Xi said. “In building an all-round modern socialist country and realising the great rejuvenation of the Chinese nation, the role of the United Front … is even more important.” Click here to read…
Pelosi Taiwan visit: region ‘tense’ as Chinese navy watches US warships, holds drills in South China Sea
As tensions mount over US House Speaker Nancy Pelosi’s potential trip to Taiwan, the Chinese navy has been monitoring the USS Ronald Reagan aircraft carrier’s activities in the South China Sea. The nuclear-powered warship was cruising about 185km (115 miles) from the contested Fiery Cross Reef in the Spratlys chain on July 28, according to publicly available satellite images. Two other vessels – identified by Vietnam-based maritime observer Duan Dang as a Chinese Type 052D destroyer and a Type 054A frigate – were seen 27km and 23km away. The Reagan and its carrier strike group left Singapore on July 25 and headed for the South China Sea, as Pelosi’s trip – which she has not confirmed – causes a ruckus, with Beijing warning that the United States will face “forceful measures” if it goes ahead. Beijing sees it as a move that would “seriously violate China’s sovereignty” – it regards Taiwan as part of its territory and has vowed to bring the self-ruled island under its control. The People’s Liberation Army has called on the US to commit to its pledge not to support independence in Taiwan. Pelosi, despite being an American lawmaker and not an official of the executive branch which spearheads foreign policy, has been repeatedly described by Beijing as the “No 3 of the US government”. Click here to read…
Myanmar junta chief to extend emergency rule for 6 months: State media
The head of Myanmar’s junta, Min Aung Hlaing, will extend the state of emergency in the country for a further six months, state media said on Aug 1, reporting that the junta’s national defence and security council had given its approval. The junta first declared a state of emergency after seizing power from the elected government of Aung San Suu Kyi in a coup in February last year. “The members (of the security council) unanimously supported the proposal to extend the period of the declared state of emergency for another six months,” the Global New Light of Myanmar reported. “In our country, we must continue to strengthen the ‘genuine and disciplined multi-party democratic system’ which is the desire of the people,” the paper cited Min Aung Hlaing as saying. Myanmar has been in chaos since the coup, with conflict spreading across the Southeast Asian country after the army crushed mostly peaceful protests in cities. The junta said it had taken power because of voting fraud in a November 2020 general election that was easily won by Nobel laureate Aung San Suu Kyi’s party. Election monitoring groups found no evidence of mass fraud. The military has pledged to hold new elections in August 2023 though the timetable has already slipped and opponents do not believe the planned elections will be free and fair. Click here to read…
Africa Will Play a Bigger Role in Russia’s Foreign Policy, Lavrov Tells Sputnik
Russia is currently developing a new edition in the country’s foreign policy as western nations impose fresh sanctions against Moscow that result in severed political and business ties. The new foreign policy guidelines being developed by the Kremlin should include a provision for enhancing ties between Russia and African countries regardless of the actions that western countries take, Russian Foreign Minister Sergey Lavrov has stated, responding to Sputnik’s question during his joint press conference with Ugandan President Yoweri Museveni. The minister likewise confirmed that the West’s current policy, which mostly boils down to attempts at isolating Moscow and hitting it with sanctions, prompted a greater emphasis on Africa in the yet-to-be-released foreign policy guidelines. “We have our principle, our long-term relations, which do not depend on the current global situation and so, apparently, our work in the sphere of ties with African countries will expand. But given the current situation and the current activities undertaken by the West, objectively the role of the African continent will grow in our work,” Lavrov said. The Russian foreign minister added that apart from the ever-increasing importance of the African line of the Ministry’s work, the western line of work effectively “cancels itself out”.Click here to read…
Anti-Iran Protesters Break Into Baghdad Green Zone, Storm Iraqi Parliament
Thousands of demonstrators chanting anti-Iran slogans stormed the Iraqi capital’s government center and occupied the parliament building July 27, protesting corruption and denouncing the leading candidate to be the country’s next prime minister. The protesters, also voicing support for fiery cleric Moqtada al-Sadr, pulled down concrete walls and poured into the Green Zone, the fortified area where many government ministries and the U.S. Embassy are located, as security personnel did little to stop them. The demonstrators took over the parliament floor, sitting in the chairs of lawmakers and waving Iraqi flags in a chaotic but largely nonviolent show of Iraqi nationalism and opposition to Mohammed Sudani, the nominee of the Coordination Framework bloc, a coalition led by Iran-backed Shiite parties to be the next prime minister. The unrest amounted to a warning that there could be further protests if the government forms under Mr. Sudani, who is widely seen as a close associate of former Prime Minister Nouri al-Maliki, a close ally of Tehran and Mr. Sadr’s fierce rival. Mr. Sudani vowed not to withdraw as nominee for prime minister. “The nomination is a huge responsibility to all of us to rescue Iraq from the current situation,” he said in a statement released by his office. Click here to read…
Iran says it has new ideas on nuclear deal after EU proposes text
Iran has said it has new ideas to restore its 2015 nuclear deal with world powers after the European Union’s coordinator proposed what seems to be a final text to reach an agreement. EU foreign policy chief Josep Borrell said on July 26 that he had proposed a text to restore the landmark accord, which the United States unilaterally abandoned in 2018. “This text represents the best possible deal that I, as facilitator of the negotiations, see as feasible. It is not a perfect agreement, but it addresses all essential elements and includes hard-won compromises by all sides,” he wrote in an article for the Financial Times. “Decisions need to be taken now,” he warned, adding that he sees “no other comprehensive or effective alternative within reach”. Hours later, Iran’s chief negotiator Ali Bagheri Kani wrote in a tweet that Iran has its own ideas to conclude the negotiations “both in substance and form”, which will be shared. He did not elaborate on the nature or timeline of sharing the proposals, but in recent months, Iranian officials have been emphasising that they want a sustainable agreement and guarantees that Iran will enjoy the full economic benefits it was promised under the original deal. Click here to read…
Biden enters the Always Be Closing phase of his first term- POLITICO
After enduring a brutal year dominated by economic angst, legislative setbacks and sinking approval ratings, the president is suddenly on the verge of a turnaround that, the White House believes, could salvage his summer — and alter the trajectory of his presidency. All he needs to do now is close. “There’s just so much at stake here,” said one adviser to senior party leaders, describing how, overnight, a sense of enormity was added to the immediate calendar. Over the next few weeks, the president will have to land centerpieces of his domestic agenda aimed at boosting the nation’s global competitiveness and revamping whole swaths of its economy. Major decisions on student loans and expanding abortion rights hang in the balance. There’s also the matter of containing twin outbreaks of monkeypox and the coronavirus, the last of which Biden just spent five days personally fending off. If that weren’t enough, he’s juggling a slate of foreign affairs challenges as well — headlined by longer-term efforts to reset with Iran on a nuclear deal and negotiate the release of a basketball star and another American jailed in Russia. It’s a massive political to-do list set against the backdrop of a midterm election likely to cost Democrats full control of Washington. Click here to read…
The Pentagon Owns Its Recruiting Crisis
Replenishing the military ranks with qualified personnel is a perennial challenge. It’s no secret, though, that this year our armed forces are fighting uphill to recruit and retain talent. Most of the services are well behind their quotas. But the Army, our largest service, is having the hardest time enticing young Americans. That service will fall short, nearly 20,000 troops from its original target end strength of 485,000 for FY ’22, and next year could be worse. To manage, Army officials have slashed end strength and enlistment goals, while recruiters are offering fat stacks of cash and generous service terms as inducements. So far, nothing is working. The Army’s Chief of Staff, General James McConville, blames the shortfall on competition with the private sector. Others blame upwardly mobile families who would rather their children attend college than wear a uniform. Both are old saws. And this year, they ring hollow. Some civilian jobs do pay more. But for an 18-year-old with only a high school diploma, military compensation is nothing to sneeze at. Instead of blaming their competition, the Pentagon brass might dwell on their tarnished image as the reason fewer young Americans want to join up. Public trust in the military institution has plunged steeply since 2018, according to one poll. Respondents cite politicized leaders, scandals, and the bungled withdrawal from Afghanistan for their loss in confidence. Click here to read…
Doubts grow over Turkey’s huge discovery of rare earths
As Europe struggles to wean itself off Russian energy, another critical issue — the continent’s almost total reliance on China for rare earths to power the clean energy transition — may have been solved by Turkey. The Ankara government announced this month the discovery of a huge deposit of rare earth elements that when processed could be used to make electric vehicles, wind turbines and solar panels. After drilling for more than a decade, Turkish geologists estimated that an area close to the northwestern city of Eskisehir has some 694 million tons of rare earth metals — second only to China’s 800 million tons. Rare earths aren’t actually that scarce but they are attached to other metals, so refining them is a complicated process. The minerals often end up in magnets that have uses in commercial and military technology. While Turkey believes its new deposit is enough to meet the world’s needs for 1,000 years, a lack of clarity about the grade or quality of the metal elements has left many analysts scratching their heads. “If they’re claiming such a big deposit, they would done a lot of drilling and would know what the grade was,” Christopher Ecclestone, a principal and mining strategist at the UK research house Hallgarten & Company, told DW. “So where’s the detail?” Click here to read…
Morocco king favours restoration of diplomatic ties with Algeria
Morocco’s King Mohammed VI has called for a restoration of diplomatic ties with neighbouring Algeria, which broke off diplomatic relations with Rabat last year. During the traditional speech marking the 22nd anniversary of the king’s accession to the throne on July 30, Mohammed said he aspires to establish with Algerian President Abdelmadjid Tebboune normal relations between the “two brotherly peoples”. “I stress once again that the borders that separate the Moroccan and Algerian brothers will never be barriers preventing their interaction and understanding,” the monarch said. He urged Moroccans to “preserve the spirit of fraternity, solidarity and good neighbourliness towards our Algerian brothers” and described the two countries as being more than neighbours. “We consider Algeria’s security and stability as part of Morocco’s security and stability,” Mohammed said. “What affects Morocco will also affect Algeria, because they are complementary twins.” Morocco and Algeria have long been at odds over the disputed territory of Western Sahara, where the Algiers-backed Polisario Front is seeking independence from Rabat’s rule. Algeria broke off diplomatic relations with Morocco in August 2021, accusing Rabat of “hostile acts”. The decision was “completely unjustified”, Rabat said. Click here to read…
Satellite photos show China’s new nuclear test site in Xinjiang
China is expanding its nuclear test facilities in the Xinjiang Uyghur Autonomous Region, an analysis of satellite photographs obtained by Nikkei suggests. Beijing halted explosive tests in the area a quarter of a century ago. Nikkei has viewed satellite photographs with a number of experts that appear to confirm China is strengthening its nuclear testing capability. Extensive coverings have been erected on a mountainside in this arid region, and broken rocks piled up nearby are believed to be evidence of excavation of a new “sixth tunnel” for testing hidden beneath. Power transmission cables and a facility that could be used for storing high-explosives have recently been installed, while unpaved white roads lead from a command post in various directions. The evidence of new construction was detected by a satellite 450 kilometers above Lop Nur, a dried up salt lake in the southeast of Western China’s Xinjiang Uyghur Autonomous Region. Many analysts believe that the secret nuclear testing area is secured by the People’s Liberation Army. “China could conduct nuclear-related tests anytime, especially since the electricity line and road system now connects Lop Nur’s western military nuclear test facilities to new possible test areas in the east,” an expert at AllSource Analysis, a U.S. private geospatial company, told Nikkei. The researcher spoke on condition of anonymity because of the sensitivity of the subject. Click here to read…
Malaysia passes party-hopping ban with election on horizon
Malaysia’s parliament has approved a constitutional amendment that would put a stop to lawmakers hopping between parties while in office, as the country aims to reduce the political uncertainty that has plagued it since the 2018 election. The 222-member lower house on July 28 approved the bill by a two-thirds majority, as required for constitutional changes. Opposition parties also supported the legislation as part of a stability pact they signed with Prime Minister Ismail Sabri Yaakob’s government last year. That deal is due to end this weekend. The party-hopping bill still needs to go through the upper house, before being forwarded to the king for his consent, but these steps are expected to be painless. The parties hope to avoid the tumult that followed the last general election, with the nation cycling through three prime ministers in four years as infighting brought down successive governments. Ismail Sabri, in a statement, said the proposed law is vital to ensure long-term political stability and expressed his “appreciation to all members of parliament comprising those from government, opposition and independents, who have created history today.” The party-hopping law, once in effect, would force elected members of parliament to vacate their seats if they leave their political party, although those who are sacked from their parties would not lose their seats. Click here to read…
Japan’s defense white paper sounds alarm over China-Russia ties
Russia’s invasion of Ukraine has shaken the international order to its core, in Asia and elsewhere across the globe. Japan’s recently released annual defense white paper makes clear the government’s alarm over Moscow’s use of force to unilaterally change the status quo, and urges a strengthening of the nation’s defense capabilities as quickly as possible. Surrounded by China, Russia and North Korea, Japan faces an increasingly dire security environment, and the July 22 white paper presents a largely accurate assessment of the situation. The government will begin full discussions about boosting defense spending and other related issues in preparation for a revision to the National Security Strategy at the end of the year. We hope the government fully explains the need for these changes to the public and that officials will consider the most effective means of implementation. Defense Minister Nobuo Kishi states at the beginning of the paper that the international community now faces its “biggest challenge since World War II.” Russia’s invasion of Ukraine is one factor in this assessment, but Moscow is also worryingly stepping up its military activities in East Asia. The report pays particular attention to the deepening military cooperation between Russia and China, noting that this trend “warrants concern and must continue to be closely watched.” Click here to read…
Three peacekeepers killed in anti-UN protests
Three UN peacekeepers and seven demonstrators have been killed, and at least 50 more people injured in riots, the government of the Democratic Republic of Congo disclosed on July 26. A mob stormed the headquarters and logistics center of the MONUSCO mission in the eastern Congolese city of Goma, forcing the evacuation of the global body’s staff. A civilian was fatally shot outside the UN logistic base on July 26, AFP reported. Congolese government spokesman Patrick Muyaya said that security forces had fired “warning shots” at a crowd in order to stop the attacks on UN troops and staff. The peacekeepers’ base in Goma had been surrounded by hundreds of hostile protesters on July 25, chanting slogans before storming the premises. UN security personnel fired teargas to try and disperse them, while helicopters airlifted the staff from the base. Reporters later saw the crowd smash windows and loot the compound, as well as burn the entrance gate. According to Al Jazeera, the protest was organized by a faction linked to President Felix Tshisekedi’s ruling UDPS party. The rioters demanded the mission’s departure, accusing the peacekeepers of failing to protect civilians. The North Kivu province of eastern Congo has seen a resurgence of fighting in recent months, with the government mainly blaming the Rwandan-backed March 23 militia (M23), one of more than 100 armed groups operating in the areaClick here to read…
Health
China’s Guangdong province rules out special health code for unvaccinated and warns against ‘excessive’ restrictions
Health authorities in the southern Chinese province of Guangdong have rejected a proposal to give unvaccinated citizens a different health code and issued a rare warning against “excessive” Covid restrictions. The Guangdong Provincial Health Commission posted a statement on its website this week ruling out the suggestion from Liu Shixing, a local representative on the National People’s Congress, that those who failed to get vaccinated or tested should be given a “blue health code for easier management”. Currently, China’s data-based real-time health code uses a traffic-light system, where the green code shows the user as “risk-free”, while the red and yellow codes incur travel and other restrictions. One can turn the health code green by getting tested or following quarantine procedures that differ from city to city. In the statement, the Guangdong health authorities said there was no national policy that supports an additional code and a blue code might cause inconvenience for some people because not everyone can get vaccinated “We suggest that all cities should strictly regulate the function of health codes and not expand their scope of application, and caution against excessive restrictions,” the health commission said. Click here to read…
WHO: Japan tops the world in new weekly cases of COVID-19
Japan emerged as the world leader in the number of new weekly COVID-19 cases in the week from July 18 to 24, the World Health Organization (WHO) reported on July 27. Japan accounted for the highest number of new weekly classes with 969,068. It was followed by the United States with 860,097, Germany with 565,518, Italy with 531,327 and France with 508,620. The total of new infection cases worldwide for the period was about 6.61 million. WHO Director-General Tedros Adhanom Ghebreyesus said at a news conference, “COVID-19 deaths have been increasing for the last five weeks, and several countries are reporting increasing trends in hospitalizations following waves of transmission driven by Omicron subvariants.” He added, “We continue to urge all countries to strive for the target of 70 percent vaccination coverage, with a focus on targeted vaccination strategies that prioritize the most vulnerable, which is the most effective way to save lives.” Click here to read…
