G20 financial chiefs flag global economic ‘soft landing’, warn of risks from war

Brazil's Economy Minister Fernando Haddad (L) speaks next to US Treasury Secretary Janet Yellen after signing an agreement during the G20 economic ministers' meeting in Rio de Janeiro on July 26, 2024. (AFP)
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Updated 27 July 2024
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G20 financial chiefs flag global economic ‘soft landing’, warn of risks from war

  • Communique avoids mention of wars in Gaza and Ukraine, to sidestep disagreements between Russia and major Western nations
  • Communique avoids mention of wars in Gaza and Ukraine, to sidestep disagreements between Russia and major Western nations

RIO DE JANEIRO: G20 financial leaders said on Friday the global economy was likely heading for a “soft landing,” but warned wars and escalating conflicts could endanger this outlook, while more global cooperation could make growth stronger.
In a joint communique after a two-day meeting in Brazil, finance ministers and central bankers from the Group of 20 major economies also committed to resist protectionism in trade and stressed the need to reduce economic inequalities.
Last month, the World Bank forecast that the global economy would avoid a third consecutive decline in growth since a major post-pandemic jump in 2021, with 2024 growth stabilising at 2.6 percent, in line with 2023, but warned that overall output would remain well below pre-pandemic levels through 2026.
“We are encouraged by the increasing likelihood of a soft landing of the global economy, although multiple challenges remain,” the communique said. “Downside risks include wars and escalating conflicts,” it said.
By avoiding explicit mention of the conflicts in Ukraine and Gaza, diplomats have worked to sidestep the disagreements between Russia and major Western nations that derailed a consensus at the finance chiefs’ gathering in February.
To defuse the disagreement, Brazil drafted a chair statement on geopolitical issues, stressing that these matters will be addressed by G20 leaders in November.
“The G20 made a wise decision to put geopolitical issues in their place to allow the cooperation agenda to move forward,” Brazil Finance Minister Fernando Haddad told a news conference.
Haddad also hailed the group’s first-ever declaration calling for cooperation to effectively tax the world’s largest fortunes, although that separate joint statement papered over disagreements about the right forum to advance the agenda.
The G20 communique said economic activity had proved to be more resilient than expected in many parts of the world, but the recovery had been highly uneven across countries, contributing to the risk of economic divergence.

Balance of risks
The document flagged risks to the economic outlook that remain broadly balanced, with more economic cooperation, faster-than-expected disinflation and technological innovations, like the safe development of Artificial Intelligence (AI), cited among upside risks.
But at the same AI tech could also turn out to be a downside risk to growth, the document said, along with economic fragmentation and persistent inflation keeping interest rates higher for longer, extreme weather events, and excessive debt.
Climate change and significant loss of biodiversity were key topics of concern, the G20 financial leaders agreed, warning that if poorer nations had to shoulder more of the cost of fighting climate change, it would make global inequality worse.
“We reiterate the understanding that the cost of inaction is greater than the cost of action,” the communique said.
The document also stepped-up language calling for a reform of the International Monetary Fund, that would give emerging and developing economies a bigger say in the lender of last resort.
The G20 communique underlined the “urgency and importance of realignment in quota shares to better reflect members’ relative positions in the world economy.” G20


UK to supply 225m in military equipment to Kyiv

Updated 51 min 52 sec ago
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UK to supply 225m in military equipment to Kyiv

  • The new package will include £92 million for equipment to bolster Ukraine’s navy, including small boats, reconnaissance drones and uncrewed surface vessels, the defense ministry said in a statement

LONDON: Britain on Thursday unveiled a package of £225 million ($286 million) in new military aid to Ukraine for next year, including drones, boats and air defense systems.
The move came after the UK’s Defense Secretary John Healey visited Kyiv on Wednesday, holding talks with his Ukrainian counterpart Rustem Umerov and vowing to step up British support to Ukraine in 2025.
Three years since Russian President Vladimir Putin ordered the invasion of Ukraine “the depths of his miscalculation are clearer than ever, as the brave people of Ukraine continue to defy all expectations with their unbreakable spirit,” Healey said.
“But they cannot go it alone,” Healey added, vowing the UK’s support for Kyiv was “ironclad” and Britain would always stand “shoulder to shoulder to ensure Putin cannot win.”
In July, the new Labour government vowed to commit £3 billion a year in military aid to Ukraine until 2030-2031.
The new package will include £92 million for equipment to bolster Ukraine’s navy, including small boats, reconnaissance drones and uncrewed surface vessels, the defense ministry said in a statement.
A further £68 million will be used for air defense equipment including radars, and 1,000 counter-drone electronic warfare systems at a cost of £39 million would be supplied to the Ukrainian army.
Healey said the UK would also boost a training program for Ukrainian soldiers run with key allies on British soil known as Operation Interflex, under which 51,000 recruits have been trained since mid-2022.
“With Putin resorting to sending as many as 2,000 Russian soldiers to their deaths on the battlefield each day, it is critical that Ukraine is supported with a supply of properly trained and equipped soldiers,” the ministry statement said.
Umerov thanked the UK for its support and said in a statement that the “stable delivery of ammunition, especially for artillery, is critically important for our defense efforts.”
He added the two men had reviewed the results of the use of Storm Shadow missiles, without providing details.
London gave Kyiv the green light to launch the UK-supplied, long-range missiles into Russia for the first time in November.
Ukrainian President Volodymyr Zelensky was due to meet NATO chief Mark Rutte and key European leaders in Brussels late Wednesday to strategise over Russia’s war ahead of Donald Trump’s return to power in the United States.
Western backers are seeking to shore up Ukraine’s forces as Kyiv’s fatigued troops are losing ground across the frontline and Moscow has deployed North Koreans to the battlefield.


Russia repels Ukrainian missile attack in Rostov, governor says

Updated 19 December 2024
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Russia repels Ukrainian missile attack in Rostov, governor says

MOSCOW: Russian air defense systems repelled a Ukrainian attack in which 10 missiles were fired at the Rostov region of southern Russia, local governor Yuri Slyusar said on Wednesday.
A Ukrainian official said the attack targeted a chemical plant that supplied rocket fuel to Russia’s armed forces.
Slyusar, writing on the Telegram messaging app, said air defense units downed 10 missiles in the attack. Fragments from one missile triggered a fire in a house in the village of Malenkaya Kamenka and smashed windows in others.
He said there were no casualties and emergency services were at the scene. He made no mention of any industrial target.
Slyusar later said Russian air defenses had repelled an attack by seven Ukrainian drones at around midnight (2100 GMT). According to preliminary information, there were no casualties or damage, he added.
Andriy Kovalenko, the head of Ukraine’s official Center Against Disinformation, wrote on Telegram that the initial attack focused on the Kamensky chemical plant “which produces rocket fuel specializing in solid fuel components for rocket engines.”
The plant, he said, also produced explosive materials and components for ammunition.
Kovalenko posted a brief video showing a fire and smoke outside a fenced compound.
Reuters could not independently verify accounts of the incident from either side.
Unofficial Russian and Ukrainian blogs suggested the attack might have involved Western-supplied missiles, but there was no official confirmation from either side.
In Ukraine’s southern Zaporizhzhia region, partly occupied by Russian forces, the Russia-installed governor, Yevgeny Balitsky, said air defense units had downed four Ukrainian missiles fired at occupied areas of the region.
Initial analysis, he said, showed British-supplied Storm Shadow missiles had been used.
Reuters could not independently verify his account.


Trump brings chaos back to Washington by attempting to kill bipartisan budget deal

Updated 19 December 2024
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Trump brings chaos back to Washington by attempting to kill bipartisan budget deal

WASHINGTON: President-elect Donald Trump delivered a probable death blow to bipartisan congressional budget negotiations on Wednesday, rejecting the measure as full of giveaways to Democrats and increasing the risk of a government shutdown right before Christmas.
“Republicans must GET SMART and TOUGH. If Democrats threaten to shut down the government unless we give them everything they want, then CALL THEIR BLUFF,” Trump said in a joint statement with JD Vance, the vice president-elect.
It was a display of dominance from a president-elect still a month away from inauguration who remains hundreds of miles away at his Mar-a-Lago resort in Florida. It reinjected a sense of chaos and political brinkmanship that was reminiscent of his first term in office.
The episode also showcased the influence of Elon Musk and Vivek Ramaswamy, who spent the day attacking the budget legislation as full of excessive spending. They kicked up a storm on social media — Musk even threatened to support primary challenges against anyone who voted for the measure — before Trump decided to weigh in himself.
“Kill the Bill!” Musk wrote on his social media platform X as he gleefully reposted messages from Republican House members who vowed not to back the bill.
Trump’s allies were overjoyed by his intervention, viewing it as the fulfillment of his promise to shake up Washington. But lawmakers were also left bewildered by how a crucial bipartisan deal could fall apart so quickly just days before the deadline. There are also questions about the future of Trump-backed House Speaker Mike Johnson, who was pushing the budget legislation and is up for reelection for his post in just a couple of weeks.


UK terror threat ‘smoldering’ amid potential fallout from Syria

Updated 19 December 2024
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UK terror threat ‘smoldering’ amid potential fallout from Syria

  • National counterterrorism coordinator says situation has never been more complex and ‘history tells us that, unfortunately, any instability creates space for extremism’
  • Border officials on high alert for possibility that British Daesh members and supporters might attempt to return to the UK

LONDON: The threat of terrorism in the UK has been described as “smoldering” amid the potential fallout from the collapse this month of the Assad regime in Syria.

Counterterrorism police fear uncertainty about Syria’s future could fuel extremist attacks in the UK, and border officials are on high alert for the possibility that British Daesh members and supporters might attempt to return to the country.

Deputy Assistant Commissioner Vicki Evans, the UK’s national counterterrorism coordinator, said the current terror threat in the country is “smoldering” and has never been more complex, given the dangers posed by extremists, state-sponsored plots and planned attacks from individuals with no obvious ideology.

“Events in Syria are certainly something that are a focus and something that all of us need to think about,” she said.

“It’s that stark reminder that we need to focus on old enemies of peace and security as well as the new. History tells us that, unfortunately, any instability creates space for extremism, for violence and acts of terror.”

Although the British government has engaged diplomatically with Syria’s new de facto leader, Ahmad Al-Sharaa, Evans noted that his organization, Hayat Tahrir Al-Sham, remains a banned terrorist group under UK law and anyone who demonstrates support for it could face terror-related charges. She said no one has been arrested so far for such activity but would neither confirm nor deny whether anybody is under investigation.

Evans also revealed that counterterrorism police are increasingly finding images of extreme violence, pornography, misogyny and gore, which sometimes fuel terror plans, in the online viewing histories of suspects as young as 10 years old.

“It’s a pick-and-mix of horror. These sorts of grotesque fascinations with violence and harmful views that we’re seeing are increasingly common,” she said.

“We most definitely need to think differently about how we stop that conveyor belt of young people who are seeing and being exposed to this type of material and, unfortunately, sometimes then going on to commit horrific acts.”


North Korea slams ‘reckless’ US-led criticism of involvement in Ukraine

Updated 19 December 2024
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North Korea slams ‘reckless’ US-led criticism of involvement in Ukraine

SEOUL: North Korea on Thursday lashed out at the United States and its allies for criticizing its support for Russia’s war in Ukraine, including the deployment of troops, rejecting what it called a “reckless provocation.”
In a statement carried by the official Korean Central News Agency, a foreign ministry spokesman said the declaration by 10 nations and the European Union was “distorting and slandering” Pyongyang’s “normal cooperative” ties with Moscow.