Colin Powell embarks upon eternal journey

General Colin Powell, the first black American, former US Secretary of State and Chairman of the Joint Chiefs of Staff, passed away on Monday due to complications from Covid 19. He was fully vaccinated. 

"We want to thank the medical staff at Walter Reed National Medical Center for their caring treatment,” the Powell family said in a statement posted on Facebook. “We have lost a remarkable and loving husband, father, grandfather and a great American,” the family added.

Powell, born on April 5, 1937, in New York City, was raised by Jamaican immigrant parents in the South Bronx. The family said the former chairman of the Joint Chiefs of Staff had been fully vaccinated and was receiving treatment at Walter Reed National Medical Center. Powell reportedly had been diagnosed with multiple myeloma, a type of cancer. 

Following a decorated military career that included tours in Vietnam, Powell held key military and diplomatic positions throughout government, serving under both Democratic and Republican presidents. Powell endorsed then-candidate Joe Biden in the 2020 presidential election.

Former President George Bush, who tapped Powell to serve as his secretary of State, said he was “deeply saddened” by the military leader’s death.

“Laura and I are deeply saddened by the death of Colin Powell.

He was a great public servant, starting with his time as a soldier during Vietnam. Many Presidents relied on General Powell’s counsel and experience,” Bush said in a statement.

“He was National Security Adviser under President Reagan, Chairman of the Joint Chiefs of Staff under my father and President Clinton, and Secretary of State during my Administration. He was such a favorite of Presidents that he earned the Presidential Medal of Freedom — twice. He was highly respected at home and abroad. And most important, Colin was a family man and a friend. Laura and I send Alma and their children our sincere condolences as they remember the life of a great man,” he added.

Powell first joined the Reagan administration in 1987 as national security adviser, becoming the first Black individual to serve in the role. He later transitioned to chairman of the Joint Chiefs of Staff in 1989, a position he held for four years under former Presidents George Bush and Clinton. 

Calls for Powell to wage a presidential bid ramped up ahead of the 1996 election following the US-led coalition’s win in the Gulf War. He ultimately passed on a campaign of his own, concluding that he did not have a “passion” for elected politics.

The four-star general reentered the political sphere in 2001, when he was tapped by George Bush to serve as secretary of State, breaking another barrier and becoming the first Black American to serve in the role. He served in the post until 2005.

Powell led the US on the diplomatic front in the aftermath of the September 11, 2001, terrorist attacks, helping to secure support from other countries for the war on terror and invasion of Afghanistan. The secretary also faced criticism for his push for invading Iraq in 2003.

In a speech before the United Nations in February 2003, Powell showed what he said was evidence from US intelligence that illustrated that the Iraqi military was misleading United Nations inspectors and concealing weapons of mass destruction.

“There can be no doubt that Saddam Hussein has biological weapons and the capability to rapidly produce more, many more,” Powell said in his speech.

Inspectors, however, later said that weapons of mass destruction did not exist in Iraq.

In 2005, two years after Powell’s speech before the UN, a government report concluded that the intelligence community was “dead wrong” in its claim that Iraq was holding weapons of mass destruction prior to the United States' invasion.

Powell later said his speech before the UN was a “blot” on his record and recognized that it would be a part of his legacy, adding that he regretted delivering the remarks.

“I regret it now because the information was wrong — of course I do,” Powell told CNN’s Larry King in November 2010. “But I will always be seen as the one who made the case before the international community.” “I swayed public opinion, there's no question about it,” he added.

In his memoir “It Worked for Me,” published in 2012, Powell again discussed the speech, writing that “the event will earn a prominent paragraph in my obituary," according to CNN.

Powell studied at the City College of New York, where he participated in ROTC.

After graduating in 1958, Powell joined the US Army and was twice deployed to South Vietnam, where he was wounded twice.

Powell waded into the political arena during the Trump administration, announcing after the January 6 attack on the Capitol that he no longer considered himself a Republican.

Asked by CNN’s Fareed Zakaria if he believes “fellow Republicans” who have not criticized former President Trump “encouraged, at least, this wildness to grow and grow,” Powell said, “They did, and that’s why I can no longer call myself a Republican.”

“I’m not a fellow of anything right now. I’m just a citizen who has voted Republican, voted Democrat throughout my entire career, and right now I’m just watching my country and not concerned with parties,” he said.

 “I do not know how he was able to attract all of these people. They should have known better, but they were so taken by their political standing and how none of them wanted to put themselves at political risk. They would not stand up and tell the truth or stand up and criticize him or criticize others,” he added.

  

Iranian trade with neighbors up 52%YoY

The value of Iran’s non-oil trade with its 15 neighbors rose to US$22.588 billion in the first six months of the current Iranian calendar year, posting 52% increase year on year (YoY). This was stated by the spokesman of the Islamic Republic of Iran Customs Administration (IRICA).

The Islamic Republic traded over 47.222 million tons of commodities with the neighboring countries in the mentioned year, IRIB quoted Ruhollah Latifi.

The volume of the traded goods in the mentioned period also increased by 37% as compared to the figure for the previous year’s same period.

Iran traded a total of 79.104 million tons of non-oil products worth US$44.926 billion with its trade partners during this period.

Trade with neighboring countries in the first half of the year accounted for 60% and 50% of the country’s total non-oil trade during the said period, in terms of weight and value, respectively.

The country exported over 36.087 million tons of non-oil goods worth more than US$11.218 billion to the neighboring countries in the period under review, while imported more than 19.138 million tons of goods worth over US$11.369 billion.

Iraq was Iran’s top export destination, importing $3.840 billion worth of commodities from the Islamic Republic, while the lowest volume of exports was made to Saudi Arabia with only US$39,000, according to Latifi.

After Iraq, the main export destinations for Iranian products and goods were Turkey, the United Arab Emirates (UAE), Afghanistan and Pakistan.

On the other hand, the highest volume of Iran's imports from neighboring countries was made from the UAE with US$7.305 billion, followed by Turkey, Russia, Iraq and Oman.

Increasing non-oil exports to the neighboring countries is one of the major plans that the Iranian government has been pursuing in recent years.

Iran shares land or water borders with 15 countries namely UAE, Afghanistan, Armenia, Azerbaijan, Bahrain, Iraq, Kuwait, Kazakhstan, Oman, Pakistan, Qatar, Russia, Turkey, Turkmenistan, and Saudi Arabia.

According to IRICA, Iran currently exports non-oil commodities to 40 European countries, 21 Asian countries, 28 African countries, and 12 American countries, while importing from 41 European countries, 31 Asian countries, 12 American countries, and 11 countries in Africa.

Egypt an emerging global logistics hub

The government of Egypt has introduced a fully automated customs process aimed at significantly improving processing time and reducing costs for companies exporting goods to Egypt. 

The new trade facilitation technology—the Advance Cargo Information (ACI) system—was successfully implemented on October 1 across all of Egypt’s ports, and is being applied to all goods imported into the country.

By using digital methods underpinned by block chain technology, the new customs system dispenses with paper documents, enabling goods to be checked and cleared before they reach Egyptian ports. The technology also strengthens risk management systems, identifying goods before they are shipped.

At the time of its launch, 38,700 exporters from around the world were registered to the new system, which has been broadly welcomed by Egypt’s trade partners. “This new trade facilitation technology will make it simpler, easier and cheaper for all companies exporting goods to Egypt,” said Jan Noether, CEO of the German-Arab Chamber of Commerce (AHK Egypt). “It shows that Egypt is not only open for business, but serious about maximizing its location at the crossroads of the world to become one of the world’s great trading economies.”

Independent evaluation shows that Egypt’s customs processing times have already improved by 55%.

Egypt is Africa’s second-largest importer; responsible for total imports in 2019 valued at $76.4 billion, and it is the world’s largest importer of wheat and asphalt. The biggest exporting countries to Egypt are China, the United States, Saudi Arabia, Germany and Turkey.

At the launch of ACI, in Cairo, H.E. Dr. Mohamed Maait, Egypt’s Minister of Finance, described the implementation of ACI as “a crucial step in our plans to transform Egypt’s trade infrastructure. This new technology will make it much easier for companies all over the world to trade with Egypt, helping to deliver the government’s plan to create the most advanced logistics hub in the region.”

“The implementation of the Advance Cargo Information system is a crucial step in our plans to transform Egypt’s trade infrastructure. This new technology will make it much easier for companies all over the world to trade with Egypt, helping to deliver the government’s plan to create the most advanced logistics hub in the region.”

 In April 2019, the Egyptian government launched the National Single Window for Foreign Trade Facilitation (Nafeza), a single digital trade portal for all import, export and transit operations that links all of Egypt’s ports. The transformation program has also included the establishment of high-tech logistics centers in Cairo, East and West Port Said, Port Tawfik, Ain Sokhna, Damietta, Dakhilah and Alexandria to ensure that port facilities are transiting goods efficiently.

An evaluation shows that Egypt’s customs processing times have already improved by 55% since the portal was launched—a significant step in realizing the objective of reducing customs clearance time to less than one day.

Nafeza is part of an ambitious economic program to drive the wholesale modernization of the Egyptian economy. This initiative includes a $4 billion overhaul of Egypt’s ports, involving 58 wide-ranging projects that include the construction of new berths, trading yards and wharves as well as the dredging of shipping lanes and port docks. Plans are also in progress to develop a series of dry ports that will connect Egypt’s seaports to inland locations.

The dry port connections are part of a major railway and road expansion program—comprising more than 2,000 projects—set to be completed by 2024. Flagship projects include a highway linking Egypt with nine other African countries to boost Egypt’s exports to the continent, and a high-speed railway between Egyptian ports on the Red Sea and the Mediterranean coast. In line with Egypt Vision 2030, launched in February 2016, Egypt plans to almost double trade in goods and services, from 37% of the economy to 65%.

In 2020, Egypt attracted the second-highest level of foreign direct investment in the Arab world and was the biggest recipient of FDI funds in Africa.

Egypt’s infrastructure upgrades are part of a broader package of economic reforms to improve the country’s business environment and attract investment. Despite the impact of the pandemic, particularly on the country’s vital tourism sector, the Egyptian economy was one of the few emerging markets to experience growth last year. Egypt’s exports in June were up nearly 50% from the same month last year, while its trade deficit fell by over a quarter, according to data from the country’s Central Agency for Public Mobilization and Statistics. In 2020, Egypt attracted the second-highest levels of foreign direct investment in the Arab world, and was the biggest recipient of FDI funds in Africa.

Egypt is Africa’s top manufacturing hub, accounting for 22% of the continent’s value added in this sector, according to OECD, and the country’s reforms seek to boost the country’s manufacturing base. A key component of the economy, manufacturing is set to expand further as the country develops new sectors such as Covid vaccine and electric car production.

The OECD has also recognized, in a report published in July, that a growing number of firms are choosing Egypt as their production base for the African continent and the Middle East, and benefiting from the large number of free-trade agreements signed between Egypt and African, Arab, European and Latin American countries.

Aukus pact attracts mixed response from Asia

It’s been nearly a month since the United States, Britain and Australia stunned the world with their new Aukus pact that will deliver a fleet of nuclear-powered submarines to Canberra. China reacted with rage, angered by what it saw as a clear move by the West to further encircle it. 

France, meanwhile, felt deeply betrayed by Australia’s eleventh hour decision to cancel a long-standing submarine deal with it in place of the new deal. Others have quietly applauded Aukus, and there are some governments that have maintained a stoic silence. 

It is necessary to critically review the diverse responses to one of the most significant security developments in recent decades. 

Asia’s varied reactions to the Aukus security pact between Australia, Britain and the United States offered a fresh indication of just how diverse the region is when it comes to their outlook on the future of the region’s balance of power.

Expectedly, reactions from Australia were particularly fulsome, given that Canberra is the biggest beneficiary of the pact. 

Under the deal, Australia will become only the second country after Britain to receive nuclear-powered submarine technology from the US. 

Prime Minister, Scott Morrison’s government plans to have a fleet of eight nuclear-powered submarines operationally ready in the 2040s.

Among Australia’s foreign policy elite, the move — which resulted in the scrapping of an earlier order for French diesel-powered submarines — was an urgent necessity given fears about increasing Chinese naval assertions in the neighbourhood.

On the opposite end of the spectrum, China responded in blistering fashion and lost no time in painting the pact as the latest effort by the West to strategically encircle the Asian superpower.

Beijing described the deal as “extremely irresponsible”, and mainland analysts echoed that view. 

Lu Xiang, a US-China scholar at the Chinese Academy of Social Sciences, told soon after the deal was announced that it indicated that Australia was “tying itself completely to America’s chariot”.

Reactions by governments elsewhere in Asia put in focus how they viewed the deal through the prism of their own national interests. 

In India, for example, some strategic watchers lamented: what about us? In their view, New Delhi should have been offered the US nuclear submarine technology first, given their intensifying strategic ties in recent years. 

In Japan, contrastingly, the Aukus deal was welcomed amid anxieties over whether Tokyo’s defensive-minded military had the ability to contend with increasing Chinese assertions. 

The government stated publicly that it welcomed the three Western allies strengthening “their commitment to the region”.

Reactions from Southeast Asia -home to the deftest of geopolitical fence sitters - naturally was mixed. 

Singapore, seen as one of Washington’s closest strategic partners in the region, was cautious not to be effusive about the pact. Instead, officials said they understood why the deal was struck and hoped it would contribute constructively to regional peace. 

Neighbouring Malaysia, meanwhile, said it was concerned the pact would “catalyze a nuclear arms race” in the Indo-Pacific.

The Philippines offered what appeared to be a full throated support, with Foreign Secretary Teodoro Locsin saying he viewed Australia’s submarine procurement plan as an “enhancement of a near-abroad ally’s ability to project power” to “restore and keep the balance” of power in the region. It would be foolhardy to consider these positions as set in stone, however. 

Thus far, countries that have maintained strategic silence or offered support for Aukus appear to have taken at face value Australia’s promise that the pact is not aimed at third parties, including China.

But if there is increased volatility in the South China Sea and other hotspots arising from the deal, expect countries to alter their positions quickly. There are after all no permanent friends or enemies in Asian geopolitics — only permanent interests.

Pakistan Stock Exchange witnesses return of feel good factor

The feel good factor returned to Pakistan Stock Exchange (PSX). The benchmark index gained 345 points during the week to close at 44,822 level on Friday, up 0.8% WoW. Rising hope of revival of IMF program and civil-military leadership reaching consensus over the appointment of new ISI chief fueled the market performance.

Commercial Banks emerged as the outperformers during the week amid increased likelihood of further rate hikes in the upcoming Monetary Policy Announcement, gaining 3.6%WoW, followed by Pharmaceutical and Cement sectors, up 2.0%WoW and 1.6%WoW respectively, owing to revision in prices. Participation during the week improved with average daily traded volume rising to 342 million shares, from 266 million shares traded a week ago. Cement prices increased by Rs45/bag to Rs710/bag whereas Automobile sales jumped 68%YoY to 82,000 units.

Other major news flow during the week included: 1) GoP agreeing to withdraw GST exemptions worth Rs334 billion in order to revive IMF program, 2) Country receiving US$8 billion in remittances during 1QFY22, up 12.5 percent, 3) Country retiring foreign Sukuk worth US$1.0 billion, 4) Cotton prices surging to Rs14,500 per mound in local market, 5) Expats invested US$2.4 billion in RDA and 6) ENGRO announcing plan to invest up to US$1.8 billion under petrochemical policy.

Top performers of the market were: GATI, ABL, FFBL, HBL, and LOTCHEM, while laggards included: HASCOL, KAPCO, ANL, TRG and JLICL.

Top volume leaders included WTL, UNITY, TELE, TREET and HASCOL.

Flow wise, Insurance remained the major buyers with (net buy of US$12.2 million) followed by Mutual Funds (net buy of USD3.4 million) while Companies stood on the other side with (net sell of US$3.3 million) followed by Individuals (net sell of US$3.2 million).

With the onset of the result season, the market performance will be dictated by the corporate profitability where analysts expect the earnings to grow. Furthermore, the formal announcement of the new ISI head will also help settle jitters on the bourse.

The GoP is also under negotiations with IMF to revive its plan and any developments on the hike in energy tariffs and withdrawal of tax exemptions will also be closely tracked.

Market participants should look to invest in the Banks where possibility of further interest rate hikes could bring the sector into limelight. Major result announcements during next week include PTC, SSGC, PABC and UBL.

Pakistan Stock Exchange witnesses return of feel good factor

The feel good factor returned to Pakistan Stock Exchange (PSX). The benchmark index gained 345 points during the week to close at 44,822 level on Friday, up 0.8% WoW. Rising hope of revival of IMF program and civil-military leadership reaching consensus over the appointment of new ISI chief fueled the market performance.

Commercial Banks emerged as the outperformers during the week amid increased likelihood of further rate hikes in the upcoming Monetary Policy Announcement, gaining 3.6%WoW, followed by Pharmaceutical and Cement sectors, up 2.0%WoW and 1.6%WoW respectively, owing to revision in prices. Participation during the week improved with average daily traded volume rising to 342 million shares, from 266 million shares traded a week ago. Cement prices increased by Rs45/bag to Rs710/bag whereas Automobile sales jumped 68%YoY to 82,000 units.

Other major news flow during the week included: 1) GoP agreeing to withdraw GST exemptions worth Rs334 billion in order to revive IMF program, 2) Country receiving US$8 billion in remittances during 1QFY22, up 12.5 percent, 3) Country retiring foreign Sukuk worth US$1.0 billion, 4) Cotton prices surging to Rs14,500 per mound in local market, 5) Expats invested US$2.4 billion in RDA and 6) ENGRO announcing plan to invest up to US$1.8 billion under petrochemical policy.

Top performers of the market were: GATI, ABL, FFBL, HBL, and LOTCHEM, while laggards included: HASCOL, KAPCO, ANL, TRG and JLICL.

Top volume leaders included WTL, UNITY, TELE, TREET and HASCOL.

Flow wise, Insurance remained the major buyers with (net buy of US$12.2 million) followed by Mutual Funds (net buy of USD3.4 million) while Companies stood on the other side with (net sell of US$3.3 million) followed by Individuals (net sell of US$3.2 million).

With the onset of the result season, the market performance will be dictated by the corporate profitability where analysts expect the earnings to grow. Furthermore, the formal announcement of the new ISI head will also help settle jitters on the bourse.

The GoP is also under negotiations with IMF to revive its plan and any developments on the hike in energy tariffs and withdrawal of tax exemptions will also be closely tracked.

Market participants should look to invest in the Banks where possibility of further interest rate hikes could bring the sector into limelight. Major result announcements during next week include PTC, SSGC, PABC and UBL.

Time to take action against Islamic State Khorasan in Afghanistan and Pakistan

The Islamic State-Khorasan (IS-K) group claimed the suicide bombing of a Shiite mosque in the Afghan city of Kandahar on Friday that killed at least 41 people and wounded scores more. The jihadist group said that two suicide bombers carried out separate attacks on different parts of the mosque while worshippers prayed inside.

"The first suicide bomber detonated his explosive vest... in a mosque hallway, while the second suicide bomber detonated his explosive vest in the mosque's centre," the statement said.

The assault in the southern city -- the Taliban's spiritual heartland -- came just a week after a deadly suicide attack on Shiite worshippers at a mosque in northern Kunduz, which was also claimed by the IS group.

The Taliban, which seized control of Afghanistan in mid-August after overthrowing the US-backed government, has its own history of persecuting Shiites.

But the new Taliban-led government has vowed to stabilize the country, and in the wake of the Kunduz attack promised to protect the Shiite minority now living under its rule.

Shiites are estimated to make up roughly 10% of the Afghan population. Many of them are Hazara, an ethnic group that has been persecuted in Afghanistan for decades.

The Islamic State – Khorasan is an affiliate of the Islamic State (IS) active in South Asia and Central Asia. Some media sources also use the terms ISK (or IS–K), ISISK (or ISIS–K), IS–KP or Daesh–Khorasan in referring to the group. ISKP has been active in Afghanistan and its area of operations includes Pakistan, Tajikistan and India where they claimed attacks, as well as Sri Lanka, the Maldives and Bangladesh where individuals have pledged allegiance to it. ISKP and the Taliban consider each other enemies.

The group was created in January 2015 by disaffected Taliban in eastern Afghanistan, although its membership includes individuals from various countries notably Pakistan, Bangladesh, India and Myanmar. Its initial leaders, Hafiz Saeed Khan and Abdul Rauf Aliza, were killed by US forces in July 2016 and February 2015, respectively. Subsequent leaders have also been killed; its leader Abdullah Orokzai was captured in April 2020 by Afghanistan's intelligence service.

ISKP has conducted numerous high-profile attacks against civilians mostly in Afghanistan and Pakistan. In July 2018, ISKP bombings killed 149 in Mastung, Pakistan. In May 2021, an ISKP bombing killed 90 in Kabul. In August 2021, ISKP killed 13 American military personnel and at least 169 Afghans during the US evacuation of Kabul, which marked the highest number of U.S. military deaths in an attack in Afghanistan since 2011.

 

Supply chain backlog at ports in United States to linger on until summer of 2022

According to The Epoch Times, despite announcement by US President Joe Biden the severely backlogged Port of Los Angeles would expand into 24/7 operating hours—similar to the Port of Long Beach. However, port officials are saying the backlog will continue until the summer of 2022.

Noel Hacegaba, Deputy Executive Director of the Port of Long Beach, said expanding the ports’ operating hours will not impact the supply chain disruptions given the continued shortage of truck drivers, chassis equipment, and warehouse operations and space.

“We think it’ll be summer of 2022 before we clear all 60 ships,” Hacegaba told The Epoch Times. “Of course, if we take some measures now and everyone in the supply chain starts expanding their hours of operation … we’re going to get there sooner.”

Hacegaba showed optimism that expanding port hours of operation will encourage the rest of the supply chain to step up their efforts.

“If we had the warehouse capacity, if we had enough truck drivers, enough trucks, enough chassis, to pull those containers, we wouldn’t have the 60 ships which are effectively serving as warehouses on the water. I mean, that’s what they’re doing. They’re storing these containers,” Hacegaba said.

Other experts are more pessimistic about the about the impact of Biden’s announcement, saying it will require a lot more than just the ports to solve the backlog.

“I think the Biden Administration looked at the low-hanging fruit and finally took action,” said Sal Mercogliano, a Professor of maritime industry policy at the US Merchant Marine Academy out of New York. “The move is better late than never, but should have been addressed sooner than this.”

Mercogliano said addressing one end of the supply chain does not solve the problem.

“Everything must be done simultaneously,” including not only addressing the current shortage of truck drivers, but increasing operations of receiving retailers as well, he said.

In a virtual briefing, Port of Los Angeles Executive Director Gene Seroka said he was happy to be working with the Biden Administration on addressing the backlog, but was unsure about when 24/7 operations would commence and if all seven terminals at the port would follow the suit.

“The anticipation is that everybody will be 24/7, but those discussions are ongoing … it’s matching up commitments with how we need to service these folks. The dwell times have been super high, we’ve got to push this cargo out as quickly as we can [and] take advantage of that latent capacity when we’re not using our gates and matching that up with truck power, chassis, and corresponding exports and imports,” Seroka said.

When Seroka was asked when the first terminal would begin operating 24/7, he said more discussions will need to take place.

The two ports, which are responsible for about 40% of all imports into the United States, are on track to get more than 20 million container units this year, Hacegaba said, which is significantly more than 17.5 million units in 2020.