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EMERGING MARKETS-Rupiah dives as virus cases surge

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    July 20 (Reuters) - Indonesia's rupiah led declines among emerging Asian currencies on
Monday after the country overtook China with the most confirmed coronavirus cases in East Asia,
while the resignation of a fifth cabinet member in five days hit the Thai baht.
    The rupiah lost 0.8% against the dollar to hit a two-month low, while shares
gave up half a percent, as traders worried that the actual infection rate could be even higher.

    Bank Indonesia, which cut interest rates for the fourth time this year last week, on Monday
forecast an economic contraction of between 4% to 4.8% year-on-year for the second quarter,
predicting a "U-shaped" recovery from the pandemic.
    Southeast Asia's largest economy also increased tax incentives for businesses to cushion the
blow from the virus, but analysts were sceptical of its impact.
    "Tax relief for manufacturing workers and SMEs due to expire in September have been extended
till end-year, but likely would not inspire much confidence about the economic recovery,"
analysts from Maybank wrote in a note.
    In Bangkok, the baht fell 0.4% to its lowest since June 1, as Prime Minister Prayuth
Chan-ocha's office said Minister to the Prime Minister's Office Tewan Liptapanlop would quit.

    That followed calls over the weekend for the government to resign and an ongoing delay in
picking a new central bank chief, which have added to the sudden resignation of Finance Minister
Uttama Savanayana last week.
    Bangkok's benchmark stocks index, however, climbed for the second straight session,
adding 0.3%.
    "The news of a fifth cabinet minister resigning had weighed on sentiment... While the index
retains moderate gains into the afternoon, we are looking at a number of defensive sectors
supporting the gains here reflecting the cautious stance," said IG Market Strategist Jingyi Pan.
    Across the rest of the region, stock markets were mixed as investors awaited cues from
Europe and the United States on further fiscal stimulus to counteract the effects of the
pandemic.            
    "Given the worsening pandemic conditions in the U.S. and the lead up to the elections, one
suspects that the next stimulus package could be hastened to provide timely support, although
the size ... would be the question here," said IG Market Strategist Jingyi Pan.
    Philippine stocks, which have been under pressure as virus cases continue to climb,
recouped some recent losses and gained 0.5%.
    
    HIGHLIGHTS:
    
    ** Indonesian 3-year benchmark yields are down 6.5 basis points at 5.962%
    ** Top losers on the Jakarta stock index include Garuda Metalindo Tbk down
6.99%, Inter Delta Tbk down 6.96% and Eka Sari Lorena Transport Tbk down
6.9%
    ** In the Philippines, top index gainers are Metro Pacific Investments up 4.6%,
Ayala Land up 4.57%, Robinsons Land up 2.82%
    
    
  Asia stock indexes and currencies at 0413 GMT                                             
   COUNTRY      FX RIC    FX DAILY %     FX YTD %       INDEX   STOCKS DAILY %  STOCKS YTD %
    Japan                   -0.34          +1.17                     0.10          -3.96
    China                   -0.03          -0.43                     2.62           8.14
    India                   +0.00          -4.85                     0.98          -9.53
  Indonesia                 -0.81          -5.83                    -0.51          -19.77
  Malaysia                  -0.07          -4.08                    -0.01           0.46
 Philippines                -0.07          +2.52                     0.47          -21.72
   S.Korea                  +0.07          -3.98                     0.03           0.19
  Singapore                 -0.09          -3.34                    -0.33          -19.02
   Taiwan                   +0.32          +2.05                    -0.02           1.51
  Thailand                  -0.35          -5.88                     0.26          -13.72
 
 (Reporting by Shashwat Awasthi and Pranav A K in Bengaluru; Editing by Kim Coghill)

Source: – Reuters

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U.S., UK, Germany clash with China at U.N. over Xinjiang

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The United States, Germany and Britain clashed with China at the United Nations on Wednesday over the treatment of Uyghur Muslims in Xinjiang, angering Beijing by hosting a virtual event that China had lobbied U.N. member states to stay away from.

“We will keep standing up and speaking out until China’s government stops its crimes against humanity and the genocide of Uyghurs and other minorities in Xinjiang,” U.S. Ambassador to the U.N. Linda Thomas-Greenfield told the event, which organizers said was attended by about 50 countries.

Western states and rights groups accuse Xinjiang authorities of detaining and torturing Uyghurs and other minorities in camps. Beijing denies the accusations and describes the camps as vocational training facilities to combat religious extremism.

“In Xinjiang, people are being tortured. Women are being forcibly sterilized,” Thomas-Greenfield said.

Amnesty International secretary general Agnes Callamard told the event there were an estimated 1 million Uyghurs and predominantly Muslim ethnic minorities arbitrarily detained.

In a note to U.N. member states last week, China’s U.N. mission rejected the accusations as “lies and false allegations” and accused the organizers of being “obsessed with provoking confrontation with China.”

While China urged countries “NOT to participate in this anti-China event,” a Chinese diplomat addressed the event.

“China has nothing to hide on Xinjiang. Xinjiang is always open,” said Chinese diplomat Guo Jiakun. “We welcome everyone to visit Xinjiang, but we oppose any kind of investigation based on lies and with the presumption of guilt.”

The event was organized by Germany, the United States and Britain and co-sponsored by Canada, Australia, New Zealand and several other European nations. Germany’s U.N. Ambassador Christoph Heusgen said countries who sponsored the event faced “massive Chinese threats,” but did not elaborate.

British U.N. Ambassador Barbara Woodward described the situation in Xinjiang as “one of the worst human rights crises of our time,” adding: “The evidence … points to a program of repression of specific ethnic groups.”

She called for China to allow “immediate, meaningful and unfettered access” to U.N. human rights chief Michelle Bachelet.

Human Rights Watch executive director Kenneth Roth called out Bachelet for not joining the event.

“I’m sure she’s busy. You know we all are. But I have a similar global mandate to defend human rights and I couldn’t think of anything more important to do than to join you here today,” Roth told the event.

Ravina Shamdasani, deputy spokesperson for the U.N. Human Rights office, said Bachelet – who has expressed serious concerns about the human rights situation in Xinjiang and is seeking access – was unable to participate.

“The High Commissioner continues to engage with the Chinese authorities on the modalities for such a visit,” she said, adding that Bachelet’s office “continues to gather and analyze relevant information and follow the situation closely.”

(Reporting by Michelle NicholsEditing by Chizu Nomiyama, Alison Williams and Elaine Hardcastle)

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Ex-finance minister breached ethics rules in charity dealings

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Former Canadian Finance Minister Bill Morneau breached conflict-of-interest rules by not recusing himself when the government awarded a contract to a charity he had close ties to, independent ethics commissioner Mario Dion said on Thursday.

In a parallel probe, Prime Minister Justin Trudeau was cleared of having broken any ethics rules when WE Charity was tapped to run a C$900 million ($740.9 million) program to help students find work during the COVID-19 pandemic last year.

The charity later walked away from the contract.

Trudeau and Morneau both apologized last year for not recusing themselves during Cabinet discussions involving WE.

Trudeau’s wife, brother and mother had been paid to speak at WE Charity events in previous years, but Dion said this appearance of a conflict of interest was not “real”.

Morneau, on the other hand, was a friend of Craig Kielburger, one of the charity’s founders, Dion said. The charity had “unfettered access” to the minister’s office that “amounted to preferential treatment”, a statement said.

No fines or penalties were levied.

Morneau said on Twitter he should have recused himself. Trudeau said in a statement issued by his office that the decision “confirms what I have been saying from the beginning” that there was no conflict of interest.

Ahead of a possible federal election later this year, the opposition could use the ruling to underscore the government’s uneven track record on ethics. Trudeau has been twice been found in breach of ethics rules in the past.

In August 2019, he was found to have broken rules by trying to influence a corporate legal case, and in December 2017, the previous ethics commissioner said Trudeau had acted wrongly by accepting a vacation on the Aga Khan’s private island.

In a statement, opposition Conservative Party leader Erin O’Toole said: “To clean up Ottawa, Conservatives will impose higher penalties for individuals who break the Conflict of Interest Act and shine a light on Liberal cover-ups and scandals, ending them once and for all.”

The controversy over Morneau’s ties to the charity was a factor in his resignation in August last year, when he also left his parliamentary seat, saying he would not run again. Chrystia Freeland was named to take over for him a day later.

($1 = 1.2147 Canadian dollars)

(Reporting by Steve Scherer; Editing by Frances Kerry and Jan Harvey)

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EU prepares new round of Belarus sanctions from June

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The European Union is readying a fourth round of sanctions against senior Belarus officials in response to last year’s contested presidential election and could target as many as 50 people from June, four diplomats said.

Along with the United States, Britain and Canada, the EU has already imposed asset freezes and travel bans on almost 90 officials, including President Alexander Lukashenko, following an August election which opponents and the West say was rigged.

Despite a months-long crackdown on pro-democracy protesters by Lukashenko, the EU’s response has been narrower than during a previous period of sanctions between 2004 and 2015, when more than 200 people were blacklisted.

The crisis has pushed 66-year-old Lukashenko back towards traditional ally Russia, which along with Ukraine and NATO member states Latvia, Lithuania and Poland, borders Belarus.

Some Western diplomats say Moscow regards Belarus as a buffer zone against NATO and has propped up Lukashenko with loans and an offer of military support.

Poland and Lithuania, where opposition leader Sviatlana Tsikhanouskaya fled to after the election she says she won, have led the push for more sanctions amid frustration that the measures imposed so far have had little effect.

EU foreign ministers discussed Belarus on Monday and diplomats said many more of the bloc’s 27 members now supported further sanctions, but that Brussels needed to gather sufficient evidence to provide legally solid listings.

“We are working on the next sanctions package, which I hope will be adopted in the coming weeks,” said EU foreign policy chief Josep Borrell, who chaired the meeting.

The EU has sought to promote democracy and develop a market economy in Belarus, but, along with the United States, alleges that Lukashenko has remained in power by holding fraudulent elections, jailing opponents and muzzling the media.

Lukashenko, who along with Russia says the West is meddling in Belarus’ internal affairs, has sought to deflect the condemnation by imposing countersanctions on the EU and banning some EU officials from entering the country.

“The fourth package (of sanctions) is likely to come in groups (of individuals), but it will be a sizeable package,” one EU diplomat told Reuters.

More details were not immediately available.

 

(Reporting by Robin Emmott in Brussels, additional reporting by Sabine Siebold in Berlin, editing by Alexander Smith)

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