Emphasising the global significance of the India-Middle East-Europe Economic Corridor (IMEC) launched on Saturday, US President Joe Biden projected it as “a big deal” and a “game-changing investment” for the US.
He highlighted the US’s commitment to investing in the novel rail line extending from Angola towards the Indian Ocean, and envisaged it as a crucial step to foster job creation and enhance food security on a global level. He forecasted the term ‘economic corridor’ to resonate prominently in the forthcoming decade.
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Prime Minister Narendra Modi announced the launch of IMEC on Saturday, the first day of the G20 Summit. The initiative is in collaboration with the UAE, Saudi Arabia, the European Union, France, Italy, Germany, and the US.
PM Modi conveyed that this corridor would be a “major medium of economic integration between India, West Asia, and Europe”, delineating a fresh chapter in global connectivity and sustainable development. Further emphasizing the substantial prospects this project intends to offer, he noted, “This corridor will show a sustainable way to the whole world.”
The collaborative project sets the stage for greater economic integration between nations through its two delineated paths: the east corridor connecting India to the Arabian Gulf and the northern artery binding the Arabian Gulf to Europe.
These corridors, conceived to facilitate smoother transit of goods and services, will leverage a sophisticated network of railways and shipping routes backed by digital and electricity cable networks and clean hydrogen export pipelines.
Anchored under the umbrella of the Partnership for Global Infrastructure Investment (PGII), fostered by the G7 nations, the corridor aims to be a robust counter to China’s Belt and Road Initiative.
The G7’s collective endeavour, facilitated by PGII, will fund infrastructural developments in emerging nations, further nourishing global economic linkages with energy products pivotal in the trade enhancement amongst the participant countries.
Praises for the ‘historic initiative’
European Union President, Ursula von der Leyen, pinpointed the efficiency the corridor promises by significantly reducing travel time by 40%, articulating it as the “most direct connection between India, Middle East, and Europe.”
Meanwhile, Saudi Arabia’s Crown Prince and Prime Minister Mohd bin Salman expressed eagerness towards the fruition of this transformative initiative.
The White House called the envisaged rail infrastructure as a reliable and cost-efficient alternative supplementing current maritime and road transit networks, enhancing global trade potentials exponentially. The participant countries pledged to forge ahead with this historic initiative, committing to a diligent formulation of an action plan within the ensuing 60 days.
To further underscore the imperative of sovereignty, PM Modi, in the company of US President Joe Biden and a consortium of global leaders, echoed the need for respect for all nations’ sovereignty as they unveiled this sea-land connectivity endeavour. This pronounced emphasis was a testament to the shared vision towards counterbalancing the controversial Belt and Road Initiative of China.
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The high-level engagement witnessed the confluence of world leaders including the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, President of the UAE Mohammed bin Zayed Al Nahyan, French President Emmanuel Macron, German Chancellor Olaf Scholz, European Commission President Ursula von der Leyen, Italian Prime Minister Giorgia Meloni, and World Bank chief Ajay Banga. This monumental coalition underscores the global consensus and shared vision for a project of this magnitude and significance.
What is IMEC?
The IMEC project, which bore seeds in discussions as early as May 2023, is envisaged to revolutionize connectivity, bypassing the existing roadblocks in India-Pakistan relations and facilitating rail connectivity between Europe and the Persian Gulf states, possibly extending to Israel in the future.
The operationalization of the ship-cum-train route through the IMEC might offer a vital transit solution for a range of products, enhancing trade efficiencies and carving a sustainable path forward.
As global leaders pen down their commitments in the Memorandum of Understanding, a new chapter in global economic dynamics seems to be on the horizon, promising transformative integration and sustainable avenues for growth, job creation, and trade across Asia, Europe, and the Middle East. It stands as a testament to unity, foresight, and collaborative growth, embodying hope for a future marked by open, secure, and prosperous global relations.
The corridors of IMEC, once operational, are set to mark a milestone in global infrastructure, recalibrating the pulse of trade and economy across continents.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
