Sunday, 27 November 2022

Iran and United State to clash in Qatar

The United States and Iran, diplomatic rivals for more than 40 years, clash on the soccer pitch on Tuesday, their places at the World Cup on the line in a fitting finale for the most politically charged group at this year's tournament.

The national team coaches sidestepped the icy bilateral relations, saying they were focused on the tournament and its ability to bring people together.

Washington and Tehran severed diplomatic relations in 1980 after the Islamic revolution. Ties have been strained in recent years when then-President Donald Trump pulled the United States out of an Iran nuclear deal. The United States killed a top Iranian general in 2020 and Tehran responded with missile strikes at US forces based in Iraq.

“I envision the game being hotly contested for the fact that both teams want to advance to the next round, not because of politics or because of relations between our countries," said US coach Gregg Berhalter.

"The thing about soccer is you meet so many different people from all around the world, and you're united by a common love of the sport. We're soccer players and we're going to compete and they're going to compete and that's it."

Iran's dramatic 2-0 win over Wales and the US team's tense goalless stalemate against England on Friday set up a tantalizing final round of Group B matches.

England, sitting top with four points, face bottom side Wales, meaning the Iran-United States contest will decide which team goes through to the round of 16.

The eagerly awaited meeting is a rematch of the 1998 World Cup group stage contest, dubbed the mother of all games, which Iran won 2-1. In a symbolic moment before that match at Lyon's Stade Gerland, the Iranian players gave white roses, a symbol of peace in the country, to their American opponents.

Overshadowing Iran's World Cup build-up this year has been civil unrest at home over the September death in police custody of 22-year-old Mahsa Amini, arrested for flouting the country's strict Islamic dress code.

Team Melli declined to sing Iran's national anthem in their first game against England in an apparent show of solidarity with protesters. They sang quietly on Friday at the Ahmad bin Ali Stadium, where boos and jeers were heard from Iran supporters.

Amid growing public pressure on players to take a stand over a deadly crackdown on protests, Iran rallied late against Wales to rescue a World Cup campaign that seemed to have flatlined following their 6-2 thrashing by England.

Berhalter, whose exuberant side drew 1-1 with Wales in their group opener, described the match as his team's "first knockout game" of the World Cup and was wary of the threat posed by Iran after their second-half assault against Wales.

"Now we need to be sure that we are good enough to go to the second round," Iran coach Carlos Queiroz said after his team kept alive their hopes of a first ever trip to the knockout stage.

"The US is a brilliant team as well, as we saw them against Wales.

"Our preparation starts with a good rest, refresh the minds and put all the complementary and garbage things outside of our minds and focus on our goal, because what we want to do is to give this gift to Iranian fans."

 

 

 

Saturday, 26 November 2022

China hit by COVID protests

According to Reuters report, protests against China's heavy COVID-19 curbs spread to more cities, including the financial hub Shanghai on Sunday, nearly three years into the pandemic, with a fresh wave of anger sparked by a deadly fire in the country's far west.

The fire on Thursday that killed 10 people in a high-rise building in Urumqi, capital of the Xinjiang region, has sparked widespread public anger. Many internet users surmised that residents could not escape in time because the building was partially locked down, which city officials denied. The fire has fuelled a wave of civil disobedience unprecedented in mainland China since Xi Jinping assumed power a decade ago.

In Shanghai, China's most populous city, residents gathered on Saturday night at Wulumuqi Road - which is named after Urumqi - for a candlelight vigil that turned into a protest in the early hours of Sunday.

As a large group of police looked on, the crowd held up blank sheets of paper - a protest symbol against censorship. Later on, they shouted, “lift lockdown for Urumqi, lift lockdown for Xinjiang, lift lockdown for all of China”, according to a video circulated on social media.

At another point a large group began shouting, “Down with the Chinese Communist Party, down with Xi Jinping", according to witnesses and videos, in a rare public protest against the country's leadership.

The police tried at times to break up the crowd.

Beijing is adhering to a zero-COVID policy even while much of the world tries to coexist with the coronavirus. While low by global standards, China's cases have hit record highs for days, with nearly 40,000 new infections reported on Sunday for the previous day.

China defends Xi's signature zero-COVID policy as life-saving and necessary to prevent overwhelming the healthcare system. Officials have vowed to continue with it despite the growing public pushback and its mounting toll on the world's second-biggest economy.

Widespread public protest is extremely rare in China, where room for dissent has been all-but eliminated under Xi, forcing citizens mostly to vent on social media, where they play cat-and-mouse with censors.

Frustration is boiling just over a month after Xi secured a third term at the helm of China's Communist Party.

"This will put serious pressure on the party to respond. There is a good chance that one response will be repression, and they will arrest and prosecute some protesters," said Dan Mattingly, assistant Professor of political science at Yale University.

Still, he said, the unrest is far from approaching that seen in 1989, when protests across the country culminated in the bloody crackdown in Tiananmen Square.

"Popular sentiment matters," he said. "But as long as there is no split in the elite and as long the PLA (People's Liberation Army) and security services remain on his side he does not face any meaningful risk to his hold on power."

The next few weeks could be China's worst since the early weeks of the pandemic for the economy and the healthcare system, Mark Williams of Capital Economics said in note last week, as containing the outbreak will require additional lockdowns.

In the northwestern city of Lanzhou, residents on Saturday upturned COVID staff tents and smashed testing booths, posts widely shared on social media showed. Protesters said they were put under lockdown even though no one had tested positive.

Videos from Shanghai showed crowds facing police and chanting “Serve the people”, “We want freedom", and “We don’t want health codes”, a reference to the mobile phone apps that must be scanned for entry into public places across China.

The city's 25 million people were put under lockdown for two months earlier this year, an ordeal that provoked anger and protests.

Chinese authorities have since then sought to be more targeted in their COVID curbs, an effort that has been challenged by the surge in infections as the country faces its first winter with the highly transmissible Omicron variant.

On Friday night, crowds took to the streets of Urumqi, chanting "End the lockdown" and pumping their fists in the air after the fire, according to videos on social media.

Many of Urumqi's 4 million residents have been under some of the country's longest lockdowns, barred from leaving their homes for as long as 100 days.

In Beijing, 2,700 km (1,700 miles) away, some residents under lockdown staged small protests or confronted local officials on Saturday over movement restrictions, with some successfully pressuring them into lifting the curbs ahead of a schedule.

A video shared with Reuters showed Beijing residents marching in an unidentifiable part of the capital on Saturday, shouting "End the lockdown"

 

 

 

US creating make or break situation for Iran

United States and its allies across the globe are struggling to support protesters in Iran in what observers say is a make-or-break moment that could tip the scales for regime change in Tehran.  

US President, Joe Biden said in early November that “we’re gonna free Iran. They’re gonna free themselves pretty soon.”  

But outside experts say US policy focused on diplomacy with Tehran over its nuclear program, and the disunity within and outside Iran, puts the favor in the hands of the nation’s current government.  

“The problem is not only the foreign policy decisions of the US. There’s no united front on the end of the protest movement, there is no leadership,” said Ceng Sagnic, Chief Analyst of TAM-C Solutions, a multinational private intelligence company. 

Iran’s leaders have attempted to brutally suppress demonstrators that originally took to the streets protesting the death of Mahsa Amini, after she died in custody of the country’s morality police. Amini was detained for allegedly wearing her headscarf incorrectly.

Since then, protests have grown to include calls for the downfall of the country’s Islamic rulers. 

At least 14,000 people are reported to have been arrested and hundreds are believed to have died in the demonstrations, including dozens of children. The youngest victim is believed to be nine years old.  

“The Iranian government and the regime as a whole have the potential power to suppress the protest movement,” Sagnic said.  

US Special Envoy for Iran, Rob Malley reacted to a recent CNN investigation saying that it documented unspeakable acts of sexual violence by Iranian officials in detention centers. 

“It’s a reminder of what is at stake for the Iranian people – and of the lengths to which the regime will go in its futile attempt to silence dissent,” he tweeted. 

The US, European Union and United Kingdom have imposed sanctions on individuals and entities they have identified as responsible for the violent crackdown on protesters. They’ve sought to ease restrictions on internet access to aid protesters who have had their service cut off. 

Member-states of the United Nations are looking for ways to condemn and isolate the Islamic Republic, the ruling government of which came to power in 1979 following a revolution. Outside Iran, individuals are working to maintain support for the protesters globally.  

The Iranian national soccer team stayed silent when their national anthem played at the World Cup in Qatar, widely viewed as a sign of support for the protesters. Solidarity protests in Berlin, Los Angeles and Washington, DC, last month brought together tens of thousands of the Iranian diaspora and their supporters. 

Shayda Gangi, an Iranian American living in DC, helped launch an exhibit in Georgetown displaying protest art created over the past two months in an effort to keep attention on the struggle of the people of Iran.  

“All these articles being written, all the people who come to these exhibits, and showcase this work, is so important and it’s doing what it’s supposed to do, which is to raise awareness and keep the spotlight on Iran,” she told The Hill.  

The exhibit, which ran for three days, featured more than 100 pieces from artists all over the world, including Iranians living abroad, Italian and Israeli artists, and at least one artist from inside Iran, who sent her work with great secrecy, quickly deleting communication and even blocking the organizers at one point as a security precaution, Gangi said.  

“I tried to put myself in her shoes and think, ‘would I do the same thing?’” Gangi said. “And I don’t know. She was scared and is in Iran, and it’s dangerous, but even with all of that, she was so happy to contribute to this event, and to do what she could do and to send her artwork to be shown.” 

Sherry Hakimi, an Iranian American activist and founder and executive director of a nonprofit focused on gender equality, was one of five Iranian women invited to meet with Secretary of State Antony Blinken and other top State Department officials in October to offer their advice on how the US could best support protesters.  

“I appreciate that senior US leaders have been listening to the calls made by Iranians and Iranian Americans alike,” she told The Hill, but said governments need to be more innovative in how they think about aiding the protesters.  

“These are unprecedented times – this is the first female-led revolution – so meeting the moment requires unprecedented measures.” 

Hakimi said that on top of sanctions and efforts to hold the Islamic Republic accountable at the United Nations, countries should focus on providing health care assistance because injured protesters risk arrest if they seek care at a hospital.  

“I want to see more health care-focused aid being sent to Iran, whether that’s through the Red Cross, Doctors Without Borders, or some other organization or mechanism.

There are parts of Iran where people are no longer able to seek treatment, because the regime has made it impossible — either hospitals won’t treat them or if they do go to a hospital they can risk arrest, which makes things worse,” she said.  

“To me, that seems like one of the most basic things.” 

Human rights groups and news reports have documented accounts from protesters that they are avoiding hospitals for fear of arrest from security forces, and that the Iranian government is using ambulances to infiltrate protests and detain demonstrators.  

The danger for protesters seeking medical help was echoed by Cameron Khansarinia, Policy Director for the nonprofit and nonpartisan National Union for Democracy in Iran (NUFDI), which also helped sponsor the art exhibit in Georgetown.  

“Protesting in Iran is not like protesting in any other country,” he said, referencing the extreme tactics of targeting protesters, the use of live ammunition, detentions, allegations of torture and killings.  

NUFDI is advocating for the US and other governments to explore setting up a “strike fund” to distribute the Islamic Republic’s frozen assets abroad among protesters who have their livelihoods threatened by the government.  

“So providing, at least, a small modicum of financial support to allow these workers to go on strike and allow their families to have bread at the end of the day … are very tangible means by which a foreign government could empower the Iranian people,” he said, calling for governments to devise a “mechanism” to deliver such cash.   

Khansarinia, like others interviewed for this article, described the protests as unprecedented for their massive scale in the face of extreme violence by security authorities.   

The Norway-based Iran Human Rights organization has documented at least 416 people killed, and that includes 51 children. The rights group is also pointing to the government systematically and disproportionately targeting minorities in Iran, in particular in the Baluch and Kurdish ethnic regions. 

The tactic is aimed at seeking to delegitimize the protests as an ethnic, separatist movement, private intelligence analyst Sagnic said. 

“By increasing the oppression in the Kurdish areas, violent tactics, striking Kurdish Peshmerga bases in Iraq, trying to make it more an ethnic issue, something that separates Kurdish groups from the rest of Iran, which is a successful tactic, to be honest,” he said.  

Gangi, who helped organize the Georgetown art exhibit, said that she feels this moment is different because of the scale of support from the international community. 

“This is by far, in my personal experience following these things throughout the years, this is the first time I’ve seen this much support from not just the Iranian community and not just within Iran, but the global community,” she said.   

“With what they’re doing within Iran, with the internet shutdowns, and all the violence — what we’re seeing outside is a small percentage of what’s happening there. I would really just ask everyone to continue to do what they’re doing, and keep the light on, on Iran.” 

 

EU Countries Lambast Gas Price Cap Proposal

European Union Energy Ministers locked horns on Thursday over a proposed gas price cap at 275 euros per megawatt hour (MWh), grappling over its effectiveness at that level and the impact on supplies and incentives to cut consumption.

The long-standing disagreements were holding up other policies to alleviate the acute energy crisis, such as the launch of joint EU gas purchases and a quicker permit process for renewables.

Diplomats said the 27 EU countries agreed on these two in principle but delayed formal approval until another meeting called for December 13, 2022 with proponents of a cap demanding a green light for all three proposals or none at all.

Polish Climate Minister Anna Moskwa called the 275 euro blueprint put forward by the European Commission a joke.

Belgium's Energy Minister Tinne Van der Straeten also chimed in, telling reporters, "The text that is on the table is unsatisfactory ... it doesn't clearly say if it will have an effect on prices."

Their Greek counterpart, Konstantinos Skrekas said a cap of 150-200 euros/MWh would be realistic.

"It could help us reduce gas prices and therefore reduce electricity prices, which is a major challenge in Europe this winter," he said.

Malta was also unhappy with the proposed ceiling. Energy minister Miriam Dalli said the strict conditions needed for the mechanism to kick in made it "next to impossible".

As many as 15 EU states want a set limit to contain energy costs after gas prices soared to record highs in August 2022, driven up by Russia cutting supplies to Europe in the wake of Western sanctions over Moscow's war against Ukraine.

But stiff opposition comes from a smaller but powerful camp led by Germany, the EU's biggest economy. Together with the Netherlands, Sweden, Austria and Finland, they say a cap could shift supply elsewhere and cut incentives to lower consumption.

The Commission proposed to limit the front-month price on the Netherlands' Title Transfer Facility (TTF) gas exchange if it exceeds 275 euros/MWh for two weeks and if the price is more than 58 euros higher from a liquefied natural gas (LNG) global reference for 10 consecutive trading days.

Dutch minister Rob Jetten was highly critical of the plan.

"The proposal is flawed," he said. "There is a lot of risk for damaging the energy security of supply, and also for stability of the financial markets."

German state secretary for climate, Sven Giegold, added, "We still have a lot of work to do."

The Estonian minister was the only one to say the plan was OK, pretty much as a temporary measure and only to address extreme price increases rather than a permanent solution.

The EU has approved a series of measures to mitigate the crisis in recent months, ranging from consumption savings to windfall taxes to claw back profits from energy producers. But the issue of whether and how to cap gas prices has split the bloc.

Ukraine's energy minister was also due to dial in, according to an EU diplomat, to discuss support for his country where the Russian war destroyed civilian infrastructure and incapacitated power and heating systems as winter cold sets in.

 

 

Ghana to buy oil with gold instead of US dollar

Ghana's government is working on a new policy to buy oil products with gold rather than US dollars, Vice-President Mahamudu Bawumia said on Facebook on Thursday.

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

Ghana's Gross International Reserves stood at around US$6.6 billion at the end of September 2022, equating to less than three months of imports cover. That is down from around US$9.7 billion at the end of last year, according to the government.

“If implemented as planned for the first quarter of 2023, the new policy will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency," Bawumia said.

Using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products, he explained.

"The barter of gold for oil represents a major structural change," he added.

The proposed policy is uncommon. While countries sometimes trade oil for other goods or commodities, such deals typically involve an oil-producing nation receiving non-oil goods rather than the opposite.

Ghana produces crude oil but it has relied on imports for refined oil products since its only refinery shut down after an explosion in 2017.

Bawumia's announcement was posted as Finance Minister Ken Ofori-Atta announced measures to cut spending and boost revenues in a bid to tackle a spiraling debt crisis.

In a 2023 budget presentation to parliament on Thursday, Ofori-Atta warned the West African nation was at high risk of debt distress and that the cedi's depreciation was seriously affecting Ghana's ability to manage its public debt.

The government is negotiating a relief package with the International Monetary Fund as the cocoa, gold and oil-producing nation faces its worst economic crisis in a generation.

 

Friday, 25 November 2022

Pakistan Stock Exchange benchmark index closes flat

The uncertainty stemming from the appointment of the next Chief of Army Staff kept Pakistan Stock Exchange under pressure during the week ended on November 25, 2022. The benchmark index ended the week at 42,937, posting 0.48%WoW gain.

Participation in the market remained lackluster, with daily average trading volume at 159.58 million shares, as compared to 186.3 million shares traded in the earlier week.

All eyes had been on the Monetary Policy announcement scheduled for Friday; the State Bank of Pakistan (SBP) decided to increase the policy rate 100bps to 16%.

Other major news flows during the week were: 1) Pakistan’s foreign exchange reserves declined by
US$134 million to US$7.8 billion, 2) fertilizer offtakes plunged by 50.3%YoY in October, 2022, 3) revenue collection target for December 2022 set at PKR 965 billion, 4) FDI dropped 52% to US$348 million during first four months of current financial year, 5) World Bank approved soft loan of US$200 million for Pakistan for green project, 6) Credit default swap shoots up to 92.53% on political unrest and 7) SBP failed in setting up US$400 million oil fund.

The top performing sectors were: Jute, Technology & Communication and Transport, while the least favorite sectors were: Power generation & distribution, Vanaspati & Allied Industries and Cable & Electrical.

Stock-wise, top performers were: INDU, SYS, ENGRO, DAWH and PSEL, while laggards included: HUBC, MUREB, FCEPL, FATIMA and KEL.

Flow wise, Individuals were major buyers with net buy of US$4.8 million, followed by Foreign Investors (US$1.1 million), while Mutual Funds were major sellers during the week, with a net sell of US$2.8 million. Insurance continued to be a seller, with a net sell of US$1.4 million during the week.

The market is expected to remain range-bound in the near future. The 100bps increase in policy rate announced on Friday does not bode well and likely to dampen the outlook for equity markets.

Furthermore, the upcoming maturity of the International
Sukuk of US$1 billion will be in focus, with a positive outcome possibly restoring sentiment regarding Pakistan's external position that would follow the same.

Any development regarding the 9th review by the IMF would remain in the limelight. The market could come under further pressure due to political uncertainty from the continuing long march slated to reach Rawalpindi by November 26, 2022.

Analysts advise clients to stay cautious while building new positions in the market.

US bans Huawei, ZTE equipment sales

According to Reuters, the Biden administration has banned approvals of new telecommunications equipment from China's Huawei Technologies and ZTE because they pose an unacceptable risk to US national security.

The US Federal Communications Commission said on Friday it had adopted the final rules, which also bar the sale or import of equipment made by Chinese surveillance equipment maker Dahua Technology Co, video surveillance firm Hangzhou Hikvision Digital Technology Co and telecoms firm Hytera Communications Corp.

The move represents Washington's latest crackdown on the Chinese tech giants amid fears that Beijing could use them to spy on Americans.

"These new rules are an important part of our ongoing actions to protect the American people from national security threats involving telecommunications," FCC Chairwoman Jessica Rosenworcel said in a statement.

Huawei declined to comment. ZTE, Dahua, Hytera and the Chinese embassy in Washington did not immediately respond to requests for comment.

Hikvision said in a statement that its products don't threaten US security.

"This decision by the FCC will do nothing to protect US national security, but will do a great deal to make it more harmful and more expensive for US small businesses, local authorities, school districts, and individual consumers to protect themselves, their homes, businesses and property," Hikvision said, adding that it will continue to serve US customers in full compliance with US regulations.

Rosenworcel circulated the proposed measure, which effectively bars the firms from selling new equipment in the United States, to the other three commissioners for final approval last month.

The FCC said in June 2021 it was considering banning all equipment authorizations for all companies on the covered list.

That came after a March 2021 designation of five Chinese companies on the so-called covered list as posing a threat to national security under a 2019 law aimed at protecting US communications networks: Huawei, ZTE, Hytera Communications Corp Hikvision and Dahua.

All four commissioners at the agency, including two Republicans and two Democrats, supported Friday's move. The agency said it has authority to revoke prior authorizations, but declined to do so.