Economic
Big oil’s huge losses raise prospect of mega mergers
Exxon Mobil, Chevron, BP and Shell recorded more than $50bn in losses between them last year, as the pandemic-driven crash in oil demand crushed crude prices and forced them to slash their spending plans. Reports last week that Exxon and Chevron discussed what would have been the biggest industrial merger in history during the depths of last year’s market bust are a measure of the panic that swept through the sector. A tie-up between the US supermajors would make “eminent sense,” according to one Houston energy banker, creating a more profitable oil portfolio to compete with low-cost Middle Eastern and Russian suppliers. Such a deal could also free up capital to spend on the low-carbon technologies investors are demanding. But scale is a key driver — part of a “last man standing” strategy for survival even if oil demand shrinks over the coming decades. A combined Exxon and Chevron, for example, could produce close to 6m barrels a day, more than any OPEC country other than Saudi Arabia. Click here to read...
Taiwan senses opportunity to bolster relations with west after chip shortages
Taiwan’s top trade official has called the global shortage of auto chips an opportunity for Taipei to build closer relations with western nations. “Everyone sees this situation and thinks that they cannot ignore Taiwan any longer,” John Deng, Taiwan’s trade representative, told the Financial Times. “This is definitely beneficial to Taiwan’s trade agenda.” The remarks follow weeks of lobbying by various governments with Taiwan, a hub for global semiconductor production, for more capacity to be allocated to automobile chips. In January, Peter Altmaier, the German economy minister asked his Taiwanese counterpart Wang Mei-hua to help ensure that Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, would prioritise chips for use in cars. Tokyo and Washington have also been in touch with both the Taiwanese government and TSMC directly over the shortage. Click here to read...
Global food inflation fears grow as UN index hits highest level since 2014
Global food prices rose for an eighth consecutive month in January to their highest since July 2014, the United Nations food agency said on Feb 04, as economies continue to battle fallout from the COVID-19 pandemic. The Food and Agriculture Organization's food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 113.3 points last month December's 108.6, revised up from 107.5. Jumps in cereals, sugar and vegetable oils led the rise; the agency said.Some governments are taking action to tackle surging domestic food prices, although such moves drive global values higher by reducing supplies for international markets. The consequence is already evident in grain prices, such as corn, hitting multi-year highs. Grain-consuming giant China is stockpiling supplies, while Argentina has suspended sales of maize for export until Feb. 28. Russia is imposing taxes on exports of wheat, barley and maize. The World Bank said in December that food price increases, combined with reduced incomes, had aggravated chronic and acute hunger, hitting vulnerable households in almost every country. Click here to read...
Nigerian woman poised to lead WTO with US support
Nigeria's Ngozi Okonjo-Iweala was poised to become the first African and first woman to lead the embattled World Trade Organization, after a South Korean rival withdrew on Feb 05 and the U.S. reversed its previous opposition. The government of President Joe Biden expressed its strong support for Okonjo-Iweala in a statement late on Feb 05, lauding her experience at the World Bank and leading Nigeria's finance ministry, and pledging to work with her on needed reforms. The twin developments ended months of uncertainty over the leadership of the global trade body, and cleared the way for WTO members to conclude a consensus-based process and confirm Okonjo-Iweala as the next WTO director-general. The U.S. administration of former President Donald Trump had blocked Okonjo-Iweala's candidacy after a WTO selection panel recommended her as chief in October. The decision required consensus. Okonjo-Iweala said she was looking forward to the conclusion of the race and moving forward with needed reforms."There is vital work ahead to do together," the former World Bank executive said in a statement. Click here to read...
EU urged to quit energy treaty as companies sue over climate action
The EU is facing calls to quit an international energy treaty that gives multinationals the power to sue governments, with critics calling the agreement a serious legal roadblock to Europe’s ambitious climate targets. The Netherlands is the latest EU member state to face litigation under the Energy Charter Treaty (ECT) after German energy group RWE last week said it was suing the Dutch government for €1.4bn in damages over the country’s decision to phase out coal by 2030. The ECT is an international agreement dating from the mid-1990s that established a framework for cross-border co-operation in the energy industry. It includes a controversial mechanism investor-state dispute arbitration that allows international investors to take legal action against signatories. The charter has more than 50 member countries, including the EU bloc. Italy, which withdrew from the agreement in 2016, is the only member to have done so. Click here to read...
A global nuclear phaseout or renaissance?
There are currently 413 nuclear reactors in operation in 32 countries around the globe. According to the annual World Nuclear Industry Status Report (WNISR), nuclear power accounted for about 10% of global electricity demand in 2019, the highest share being 17.5% in 1996. The US currently has 94 nuclear reactors — more than any other country in the world. But the future of nuclear power in the US is uncertain. Although there are concepts for a new generation of reactors, it is questionable whether they can one day generate electricity as cheaply as the renewable energy sector. There is no final repository for highly radioactive waste in the US. It is stored on-site at the power plants. As Russia no longer wants to subsidize the construction of nuclear power plants in its own country, new domestic construction projects are uncertain. Instead, the state corporation Rosatom wants to focus on building reactors abroad in the future. China is the world leader in the construction of new nuclear power plants. In the last 10 years, 37 reactors have come online. Click here to read...
Less consumption, more recycling needed for goals
Countries worldwide will not meet their targets to slash planet-warming emissions unless they cut unnecessary consumption and shift urgently to circular economies that reuse resources, environment ministers and top executives said this week. In a circular economy, materials - such as metals, minerals and plastic - are recycled to cut back on waste and pollution harming the Earth's environment and climate. Only 8.6 percent of the 100 billion tons of materials utilized each year are put back into service, according to Amsterdam-based social enterprise Circle Economy. Dutch environment minister Stientje van Veldhoven said changing that should be "much higher on the political agenda." "What we need to get out there, with much more force, is the incredible importance of a circular economy as an instrument to reach our climate goals," she told a webinar hosted by the World Resources Institute (WRI), a US-based research group. Click here to read...
China signals compartmentalizing trade from politics with US
In a high-profile speech on China-US relations, Yang Jiechi, director of the Office of the Central Commission for Foreign Affairs, signalled that trade issues could be compartmentalized from political disputes, which is also in line with China's overall foreign policy stance of managing differences while seeking common ground. That could be a realistic and promising path for the two countries to start to untangle a complex set of troubles in the bilateral relationship, which hit rock bottom under Trump, as trade and economic cooperation has been a bright spot, even during such a tough time, analysts noted. "On trade, China stresses that trade issues should not be politicized, and the concept of 'national security' should not be abused," Yang said in a speech to the National Committee on US-China Relations. Yang also said that China always welcomes US investment, while calling on the US to also provide a fair, open and non-discriminatory environment for Chinese companies. Click here to read...
China building Indonesia into an EV powerhouse
Chief investment minister Luhut Panjaitan has few concerns about China’s iron grip on Indonesia’s nickel industry as other major investors flock to a country with the range of mineral elements needed to turn it into one of the world’s leading producers of lithium batteries and electric cars. “We invited everybody and no-one came, except the Chinese,” the minister said in a wide-ranging interview that reflected the retired general’s consuming vision of Indonesia as a modern industrialized state. “So they’re welcome and they are easy to deal with.” It is not the first time he has defended China’s growing role in the Indonesian economy. While European interest often remains focused on just one level of the manufacturing process, the hard-charging Chinese are developing a fully-integrated supply chain, from stainless steel and lithium batteries to even copper wire and other finished products. As Panjaitan puts it, “All the way down.” Click here to read...
US threat to reimpose sanctions on Myanmar may drive up prices of rare earth, Chinese insiders say
China's rare earths imports have remained unaffected by the political event in Myanmar, according to industry insiders, but the long-term impact, including potential US sanctions on the country, may weigh on rare earth price. China's rare earth market has been heavily dependent on the ores from Myanmar, which previously contributed around half of China's total heavy rare earth consumption, analysts said. Chen Zhanheng, an industry insider told the Global Times that Myanmar has taken a crucial role in the provision of heavy rare earth in China since authorities levelled up environmental standards in 2015. In 2020, more than half of the heavy rare earth was imported from Myanmar, according to Chen. "Mining of heavy rare earth is largely restricted in China, despite the fact that has always been strong demand," Chen said, adding last year, the total domestic production is less than 10,000 tons. According to Chen, the political event in Myanmar has not affected the supply chain from the rare earths mines to Chinese market, because most of the mines are located in the north of the country and are under control of the Myanmar army. Click here to read...
China issues anti-monopoly guidelines on platform economy
The Anti-Monopoly Committee of the State Council, China's cabinet, introduced a thorough guideline to regulate anti-monopoly practices on Feb 07, encouraging business operators in the online platform economy to report any monopolistic moves. It also said that authorities will waive or mitigate penalties if the operators meet certain standards. An industry observer who declined to be identified told the Global Times that the committee's move is a warning to all of China's giant internet-based platforms, including e-commerce, food delivery and express delivery, to strictly abide by the new law. These companies will be placed under constant supervision and scrutiny by the regulators. For example, if the lucrative online lending business of Ant Group is not scrutinized on a regular basis, the rising debt risks generated on the platform may one day make it a "too big to fail" financial beast, the kind that will need a government bailout if it encounters severe problems, the observer continued. Click here to read...
Hyundai, Kia say Apple car deal is off, puncturing investor dream
South Korea's Hyundai Motor said on Feb 08 it is not now in talks with Apple on autonomous electric cars, just a month after it confirmed early-stage talks with the tech giant, sending the automaker's shares skidding. Wiping US$2.4 billion off its market value, Hyundai stock slumped 4.3 per cent. Shares in its affiliate Kia Corp, which had been tipped in local media reports as the likely operational partner for Apple, tumbled 12.8 per cent - a US$4.7 billion hit. The announcement brings the curtain down on weeks of internal divisions at Hyundai Motor - parent to both automakers - about the potential tie-up, with some executives raising concerns about becoming a contract manufacturer for the US tech giant in a tie-up reminiscent of electronics firm Foxconn's role in making device for Apple like the iPhone. "We are receiving requests for cooperation in joint development of autonomous electric vehicles from various companies, but they are at early stage and nothing has been decided," the automakers said on Feb 08, in compliance with stock market rules requiring regular updates to investors regarding market rumours. Click here to read...
The great GameStop conspiracy
The great GameStop short squeeze involved the biggest market manipulation in stock market history. A handful of yet-to-be-identified operators used day traders’ social media sites like Reddit’s WallStreetBets as a screen for the mother of all short squeezes.By piling into heavily shorted, small-capitalization zombie stocks with depressed prices and low trading volumes, the cabal pumped up their prices to the point that established long-short equity funds had to cover their shorts. By salting the social media sites with rumours, the cabal drove small day traders into the target stocks as a screen for their operation. As the big players exit – which they began to do Feb 04 – the small day traders will be wiped out. The short squeeze stocks whose sudden flight crushed some long-established hedge funds began tanking today, with the two favourites, Gamestop and AMC, down 35% and 54% respectively. Identifying the perpetrators is a matter for the Securities and Exchange Commission, which has the technology to trace the trades back to their beneficial owners. Click here to read...
Strategic
Quad group prepares 1st meeting of leaders to keep China in check
The United States, Japan, Australia and India are working to arrange the first meeting of their leaders under the so-called Quad framework amid China's growing clout in the region, a source from one of the countries involved said. The move comes as the new administration of U.S. President Joe Biden appears eager to build on renewed attention to the grouping of the four major Indo-Pacific democracies, with his National Security Adviser Jake Sullivan calling it "a foundation upon which to build substantial American policy in the Indo-Pacific." According to the source, the United States has already proposed to other countries the idea of holding an online meeting of the Quad leaders. India is the only Quad member that shares a land border with China and operates outside of U.S.-led security alliances. During the envisioned meeting, the participants are expected to discuss cooperation for the realization of a "free and open Indo-Pacific" amid concerns over China's maritime assertiveness in the region. China may react with displeasure, as it sees the framework as an attempt to contain it. Click here to read...
Japan lawmakers want 'Taiwan Relations Act' of their own
Legislators from Japan's ruling party called for a new law on Feb 05 similar to the Taiwan Relations Act in the U.S., looking to help Taipei defend itself amid Beijing’s repeated incursions into Taiwan's airspace. Chinese planes have entered Taiwan's southwestern air defense identification zone almost daily since U.S. President Joe Biden took office Jan. 20. Multiple Chengdu J-10 and Shenyang J-11 fighter jets entered the zone on Sunday."Tensions have not subsided," Masahisa Sato, head of the Liberal Democratic Party's Foreign Affairs Division, said in a meeting with party members on Feb 05.Sato announced the establishment of a "Taiwan project team," which he will lead, to discuss policies related to the island and how Japan can coordinate with the U.S. in the security field. Its inaugural meeting could come next week. One idea that emerged at Feb 05's meeting was to have legislation similar to the Taiwan Relations Act of 1979, which the U.S. Congress passed to coincide with Washington's establishment of diplomatic relations with the People's Republic of China. The act let Americans and Taiwanese maintain substantial, though not diplomatic, relations. Click here to read...
American troops in Germany serve our ‘mutual interest,’ Berlin says, after Biden freezes planned withdrawal
US soldiers stationed in Germany are an integral part of Trans-Atlantic friendship, Berlin has said, after President Joe Biden put a halt to the Trump administration's plan to relocate thousands of troops from the country. “We have always been convinced that the stationing of American troops here in Germany serves European and Trans-Atlantic security and is, therefore, in our mutual interest,” spokesperson for the German government Steffen Seibert told reporters on Feb 05. Seibert praised the decades of Berlin's military cooperation with the US. “This is part of the Trans-Atlantic friendship,” he said, adding, though, that the deployment of soldiers overseas is Washington’s internal affair. His remarks came a day after Biden confirmed the US is stopping the partial withdrawal of troops from Germany planned by his predecessor Donald Trump. Biden clarified that the final decision will depend on the US Secretary of Defense’s review of America's military presence and movements. Click here to read...
Sri Lanka drops India and Japan from port partnership
Sri Lanka has pushed Japan and India out of a port project in its capital of Colombo, opting instead to move forward alone, amid pressure by unions at the facility. The country's cabinet decided Feb 01 that the East Container Terminal at the Port of Colombo would be wholly owned by the Sri Lanka Ports Authority, scrapping the original partnership in a move that has bewildered and frustrated its erstwhile partners. The three countries had signed a memorandum of understanding in May 2019 to develop the terminal. Sri Lanka would have held a 51% stake in the development and operation of the facilities, with India and Japan owning the rest. President Gotobaya Rajapaksa had said just last month that the project would move forward as planned, and India's Adani Group conglomerate had been slated to take part. "We have told the Sri Lankan government that this unilateral decision is regrettable," said a senior official at the Japanese Embassy in Sri Lanka. An Indian government spokesman urged the Sri Lankan government to return to the deal, saying "all sides should continue to abide by the existing understandings and commitment," the Press Trust of India reported. Click here to read...
Taliban call fighters back from winter lull early as talks stall
Amid growing distrust over the future of peace talks with the administration of new U.S. President Joe Biden, Taliban leaders have called commanders back from their winter break earlier than usual, a leader of the group told Nikkei Asia. In winter, roads are blocked, and mountains are covered with snow in parts of the war-ravaged country that slows fighting and the Taliban usually allow many of its commanders to put down their weapons. The long break lasts until a "spring offensive" is declared, normally in late April or early May, which marks the beginning of the annual fighting season."Commanders have received instructions from the leadership [to return to their positions, and leaders have] arranged some financial support for their families," the Taliban senior official said. The directive indicates the insurgents are making advance preparations for the fighting season, just as intra-Afghan negotiations in Qatar are stalemated. Najia Anwari, spokesperson for the Afghan Ministry for Peace, said on Feb 06 that the Taliban representatives have not yet returned to the negotiations, blaming them for the impasse in the fragile process. The Taliban have not commented on Najia's remarks. Click here to read...
UN welcomes U.S. intent to revoke Houthi designation
The United Nations on Feb 06 welcomed the announcement of U.S. intention to revoke the designation of the Houthi movement in Yemen as a terrorist organization. The revocation will provide profound relief to millions of Yemenis who rely on humanitarian assistance and commercial imports to meet their basic survival needs. It will help ensure that much-needed essential goods reach them without significant delays, said Stephane Dujarric, spokesman for UN Secretary-General Antonio Guterres, in a note to correspondents. At a time when Yemen is at significant risk of famine, maintaining commercial imports and humanitarian assistance in adequate quantities is essential, said the note. The designation came at the very last days of the previous U.S. administration led by Donald Trump. The new administration said Feb 05 that it would revoke the designation. Click here to read...
US ending aid to Saudi-led forces in Yemen, but questions persist
United States President Joe Biden last week announced plans to end US support for Saudi Arabia’s “offensive operations” in war-torn Yemen, including ceasing relevant arms sales to the government in Riyadh. The move signalled a distinct shift in Washington’s approach to the conflict and a renewed emphasis on reaching a diplomatic solution to the years-long war, which has caused what the United Nations describes as the world’s worst humanitarian crisis. But since the announcement on Feb 04, the Biden administration has released few details on what support to Saudi Arabia-led coalition forces in Yemen it plans to end – or how it will differentiate it from other US assistance and arms sales to Saudi Arabia. “The United States provides spare parts, munitions, technical assistance, all kinds of things to the Saudi military, which enable its offensive operations,” Bruce Riedel, a senior fellow at the Brookings Institution, told Al Jazeera. That support included the creation of a joint US-Saudi “planning cell” to coordinate military and intelligence assistance, technical support for US-purchased air fleets, and initially, in-air refuelling of Saudi aircraft. Click here to read...
Palestinians launch postcodes in assertion of sovereignty
The Palestinian Authority (PA) has announced Feb 07 it will begin using its own postal codes, a move at easing the delivery of parcels in the occupied territories, as well as asserting sovereignty. International mail sent to or from the occupied West Bank currently has to pass through Jordan or Israel. In both cases, mail intended for the occupied West Bank has to be cleared by Israel, which controls the entry of goods and customs into the occupied territory. But the PA said Feb 07 it had asked the Universal Postal Union to notify its member states that Palestinian postal codes were coming into force.According to the PA, the postcode project would help establish a Palestinian addressing system that would facilitate Palestinian mail and would constitute an essential component of an infrastructure that will enable the public and private sectors to provide services in a manner that depends on geographical location. “From April, postal items that do not bear a Palestinian postal code will not be processed,” Palestinian Minister of Communications Ishaq Sidr told reporters in Ramallah, the occupied West Bank headquarters of the Palestinian Authority. Click here to read...
Germany's Merkel says Nord Stream 2 project unaffected by Navalny case
German Chancellor Angela Merkel said Feb 05 that Germany's attitude towards the Nord Stream 2 pipeline is, for the present, "unaffected" by Russia's treatment of its opposition leader Alexei Navalny. At a press conference after an online meeting with French President Emmanuel Macron, Merkel reiterated that the stance of the German government on the gas line project has not been changed. The Nord Stream 2 pipeline is designed to transport natural gas from Russia to Germany through the Baltic Sea. The 1,230-kilometer pipeline could deliver 55 billion cubic meters of gas per year. Merkel added that it is vital to maintain channels of dialogue with Russia. "Despite all the differences, it is nevertheless strategically advisable to remain in contact on many geo-strategic issues," she said. Click here to read...
Myanmar military appoints ministers after ousting Suu Kyi in coup
After ousting the democratically elected government in a coup d’état on Feb 01, Myanmar's military got on with the task of naming a new cabinet. Many of the 11 ministers appointed served in the administration of former President Thein Sein from 2011 to 2016 -- a time when foreign investment flowed into a country that was becoming a fledgling democracy. Commander-in-Chief Min Aung Hlaing appointed Wunna Maung Lwin to his previous position of foreign minister, and Finance Minister Win Shein was appointed as Minister of Planning, Finance and Industry, according to military-affiliated television.The military also appointed Aung Naing Oo, who served in both Thein Sein's cabinet and the government of Aung San Suu Kyi's National League for Democracy, as Minister of Investment and External Economic Relations. The appointment of the experienced minister shows the military appears to be seeking to minimize the negative impact of a potential fall in foreign investment. Click here to read...
Following the money behind Myanmar’s coup
By seizing absolute power, Myanmar coup leader Senior General Min Aung Hlaing has protected his and his family’s financial interests and the military’s unscrutinized economic domination. Among other goals, the military’s commander-in-chief apparently hopes he has protected himself, his family, and military colleagues from possible investigation over their extensive, lucrative financial deals and economic holdings, sources say. “His financial interests must be considered as a motive for his coup,” the Justice for Myanmar campaign group of activists said in a statement. “Senior General Min Aung Hlaing has ultimate authority over Myanmar’s two military conglomerates – Myanmar Economic Corporation (MEC) and Myanmar Economic Holdings Limited (MEHL),” the group noted.MEC and MEHL are reportedly invested in Myanmar’s commercial port activity, container depots, jade and ruby mining, real estate, construction and other lucrative sectors. Click here to read...
Biden says US won't lift sanctions to bring Iran to talks
US President Joe Biden said he won't lift sanctions against Iran as long as the Islamic republic is not adhering to its nuclear deal commitments. Asked whether he would halt sanctions to convince Iran to return to the bargaining table, Biden offered a clear reply in a CBS interview aired Feb 07: "No." The journalist then asked if the Iranians would first have to stop enriching uranium, which drew an affirmative nod from Biden. The 2015 landmark deal has been hanging by a thread since Donald Trump's decision to withdraw from it in 2018 and re-impose sanctions on Tehran. Tehran a year later suspended its compliance with most key nuclear commitments to the deal. The Biden administration has expressed willingness to return to the deal but insisted that Tehran first resume full compliance. On Jan 4, Iran announced it has stepped up its uranium enrichment process to 20 per cent purity, far above the 3.67 per cent level permitted by the deal, but far below the amount required for an atomic bomb. Click here to read...
UN court reveals it can hear case to overturn US sanctions on Iran
The UN's top court has said it can hear Iran's bid to overturn US nuclear sanctions reimposed by former US president Donald Trump, prompting "disappointment" in Washington, which had argued the issue lies outside its jurisdiction. Iran's foreign minister swiftly hailed Feb 03's decision as a "victory" in the case launched three years ago at the International Court of Justice (ICJ) in The Hague. Tehran alleges that Trump, when he was US president, breached a 1955 friendship treaty between the two countries by pulling out of a 2015 nuclear deal - to the dismay of European allies - and reactivating the sanctions. Washington had said the Hague-based ICJ did not have jurisdiction and must throw out the case. It also argued the sanctions were necessary because Iran posed a "grave threat" to international security.ICJ President Abdulqawi Ahmed Yusuf said the tribunal "finds consequently that it has jurisdiction.... to entertain the application filed by the Islamic Republic of Iran." Click here to read...
Davos 2021 summit in Singapore to be postponed, again
The World Economic Forum (WEF) said Feb 03 that its annual meeting, which has already been postponed and moved from Switzerland to Singapore, will be pushed back again due to pandemic-related challenges. The annual gathering of the world's political, economic, and business elite is traditionally held each January in the Alpine village of Davos.While a virtual meeting of world leaders was held in January, the physical meeting had already been moved due to the COVID-19 crisis and rescheduled to take place in Singapore in May. But on Feb 03, organizers said it would now be postponed again until August 17-20. They stressed in a statement that "current global travel restrictions have made planning difficult for an in-person meeting in the first half of the year". "Furthermore, differing quarantine and air transport regulations have increased the lead time necessary to ensure that participants globally can make arrangements to join." Xi and Biden are expected to meet during Davos Singapore. Click here to read...
Installation of domestically developed gas station starts in South China Sea
A domestically developed deep water semi-submersible oil production and storage facility weighing 100,000 tons arrived at a gas drilling field off the coast of South China's Hainan Province on Feb 06 and installation work started, marking another crucial step in China's deep sea oil exploration and production. The project will supply one-quarter of the gas demand in the Guangdong-Hong Kong-Macao Greater Bay Area. The station, named Deep Sea No.1, is said to be the world's largest. It was independently developed and built by China National Offshore Oil Corp (CNOOC), China's largest offshore oil and gas producer. Construction on Deep Sea No.1 started in May 2019. It was delivered on January 14 and travelled for 18 days to its destination at the Lingshui 17-2 gas field off Hainan, according to CNOOC. The Lingshui 17-2 gas field is China's first self-operated deep water gas field, with operations reaching a depth of 1,500 meters on average, according to CNOOC. Click here to read...
Philippines says it will meet US to iron out differences on troop deal
The Philippines and the United States will meet this month to iron out differences over a two-decade-old Visiting Forces Agreement (VFA), Manila's top diplomat said, amid renewed concerns in the region over China's assertive maritime agenda. The Philippines in November suspended its decision to terminate the VFA for a second time to allow it to work with Washington on a long-term mutual defence pact. "The suspension was intended that we should continue working and I am narrowing down the issues and soon we will meet...and iron out whatever differences we have," Foreign Affairs Secretary Teodoro Locsin told ANC news channel onFeb 08, adding a meeting was likely in the last week of February.He declined to elaborate on the terms of a potential agreement. The VFA provides the legal framework under which US troops can operate on a rotational basis in the country and experts say without it their other bilateral defence agreements, including the Mutual Defence Treaty (MDT), cannot be implemented. Last month, US Secretary of State Antony Blinken stressed the importance of the MDT and its clear application if Manila came under attack in the South China Sea. Click here to read...
Medical
EU’s Borrell hails Russian vaccine as ‘good news for mankind’
The EU’s top diplomat Josep Borrell on Feb 05 hailed the success of Russia’s Sputnik V coronavirus vaccine, adding that he hoped it could be certified for use in the bloc. “It’s good news for the whole of mankind because it means we will have more tools to fight the pandemic,” he said after talks with Russian Foreign Minister Sergei Lavrov in Moscow. Lavrov said Washington and Moscow had agreed to “see if there is room for acting together” on vaccines and that several European countries were “interested in producing the vaccine on their territory.” Click here to read...
Russia pulls ahead of China in Central Asia vaccine diplomacy
As Kazakhstan kicks off its coronavirus inoculation program with Russia's Sputnik V shot and Turkmenistan prepares to start a similar campaign, Russia is pulling ahead of China in the battle to win Central Asian hearts and minds through vaccine diplomacy. During the pandemic, Beijing has utilized its soft power by delivering much-needed medical supplies and other assistance to the countries of Central Asia, where it is a growing influence as an investor and trading partner. However, Russia traditionally regards the region as its own backyard and is reasserting its presence on the vaccination front. Kazakhstan became the first Central Asian country to start a mass vaccination drive this past week using Sputnik V supplies imported from Russia. Kazakhstan will also be producing the vaccine at a pharmaceutical plant in the city of Karaganda. A prominent factor favouring Russia's vaccine is the distrust of China felt by the public in Kazakhstan. In recent years there have been protests against perceived Chinese expansionism and Beijing's growing influence in the country. So the use of a Chinese-produced vaccine would likely be met with hostility. Click here to read...
WHO says Africa to receive 90 mln COVID-19 vaccine doses in February
Nearly 90 million COVID-19 vaccine doses negotiated through the COVAX facility will be shipped in Africa beginning from February, a senior World Health Organization (WHO) official said Feb 04. Matshidiso Moeti, WHO Regional director for Africa, said the arrival of the vaccines will mark a critical milestone in the continent's quest to contain the pandemic."Africa has watched other regions start COVID-19 vaccination campaigns from the side-lines for too long," Moeti said in a statement issued in Nairobi. "This planned rollout is a critical first step to ensuring the continent gets equitable access to vaccines. We know no one will be safe until everyone is safe." According to WHO, COVAX on Jan. 30 notified African countries about the planned shipment of the first batch of COVID-19 vaccine doses to pave way for the largest ever mass inoculation drive in the continent. According to Moeti, there are plans to vaccinate at least 20 percent of African population by ensuring up to 600 million doses are available by the end of 2021. Click here to read...
China, Russia steal a vaccine diplomacy march
The Covid-19 pandemic has brought about an unprecedented mobilization of advanced biotechnology on a worldwide scale. By any measure, progress in developing, testing and deploying vaccines has proceeded with breathtaking speed. All is not well, however.Production capacities are wholly inadequate to meet the demand, with the lion’s share of vaccines going to wealthy countries while developing countries face less certain fates. Russia and China are rising to the rich versus poor challenge by supplying much-needed vaccines to nations that would otherwise be far down on the global list. While the US and EU remain preoccupied with their own Covid-19 problems, Russian and Chinese companies are forming partnerships with each other and countries around the world. Russia’s Sputnik V vaccine, originally poo-pooed in the West as a mere publicity stunt by President Vladimir Putin, has not only proved to be one of the most effective vaccines – providing over 90% protection – but also is inexpensive and easy to use. Unlike many of other Covid-19 vaccines, Sputnik V can be stored in ordinary refrigerators at between two and eight degrees centigrade. Together, a first and second (booster) dose cost a mere US$20. Click here to read...
EU vaccine kerfuffle exposes bloc divides
For weeks, the European Union (EU) lashed out at about everybody but itself over the continent-wide shortage of anti-coronavirus vaccines. Among its complaints: at least one drug company had breached a sales contract with the EU. EU officials got the company, AstraZeneca, to overcome commercial privacy concerns and publish the contract. Curiously, the two sides agreed to redact parts of the contract perhaps of most interest to EU taxpayers and to millions of people fearful of contagion: the price the EU paid and the delivery schedule and amounts of vaccines to be delivered. This, even though the EU said the document’s release showed that “transparency and accountability are important to help build the trust of European citizens.” The whole document was available only on a “need to know basis.” If all this was meant to bolster confidence, it failed. Criticism of the EU’s vaccine performance is widespread in Europe and rising. At one extreme, critics predict the end of the EU’s grand project of ever-closer political union. Click here to read...
South Africa halts AstraZeneca COVID-19 vaccine shots, UK says it prevents death
South Africa halted the rollout of AstraZeneca's COVID-19 vaccinations after data showed it gave minimal protection against mild infection from one variant, but Britain said the shot still stopped death and serious illness. COVID-19 has killed 2.3 million people and turned normal life upside down for billions but new variants of the virus have raised fears that the world could be locked in a cat-and-mouse battle for years with the pathogen. Researchers from the University of Witwatersrand and the University of Oxford said in a prior-to-peer analysis that the AstraZeneca vaccine provided minimal protection against mild or moderate infection from the so-called South African variant among young people. Professor Shabir Madhi, lead investigator on the AstraZeneca trial in South Africa, said the vaccine's similarity to another produced by Johnson & Johnson, which reduced severe disease by 89 per cent, suggested it would still prevent serious illness or death. Click here to read...
