WASHINGTON: Global finance chiefs will gather in Washington this week amid intense uncertainty over wars in the Middle East and Europe, a flagging Chinese economy and worries that a coin-toss US presidential election could ignite new trade battles and erode multilateral cooperation.
The International Monetary Fund and World Bank annual meetings are scheduled to draw more than 10,000 people from finance ministries, central banks and civil society groups to discuss efforts to boost patchy global growth, deal with debt distress and finance the green energy transition.
But the elephant in the meeting rooms will be the potential for a Nov. 5 election victory by US Republican presidential candidate Donald Trump to upend the international economic system with massive new US tariffs and borrowing and a shift away from climate cooperation.
“Arguably the most important issue for the global economy — the outcome of the US election — is not on the official agenda this week, but it’s on everyone’s mind,” said Josh Lipsky, a former IMF official who now heads the Atlantic Council’s GeoEconomics Center.
The election “has huge implications on trade policy, on the future of the dollar, on who the next Federal Reserve chair is going to be, and all of those impact every country in the world,” he added.
US Vice President Kamala Harris, the Democratic presidential candidate, is largely expected to continue the Biden administration’s resumption of multilateral cooperation on climate, tax and debt relief issues if she wins next month’s vote.
The meetings, which start on Monday and get into full swing later in the week, will likely be the last for US Treasury Secretary Janet Yellen, who spearheaded much of the Biden administration’s multilateral economic and climate efforts. Yellen has said she is “probably done” with public service at the end of President Joe Biden’s term in office in January.
But growing anti-China trade sentiment and industrial policy plans from wealthy countries, punctuated by the Biden administration’s steep tariff increases on Chinese electric vehicles, semiconductors and solar products, is expected to be a key discussion topic at the meetings.
Lackluster growth
The IMF will update its global growth forecasts on Tuesday. IMF Managing Director Kristalina Georgieva last week flagged a lackluster outlook, saying the world, saddled by high debts, was headed for slow medium-term growth, and pointing to a “difficult future.”
Still, Georgieva said she was “not super-pessimistic” about the outlook, given pockets of resilience, notably in the US and India that are offsetting continued weakness in China and Europe.
While debt defaults among poor countries may have peaked, participants at the annual meetings are expected to discuss the growing problem of scarce liquidity that is forcing some emerging markets saddled with high debt service costs to delay development investments as overseas aid shrinks.
Last year’s IMF and World Bank annual meetings got underway in Morocco as the Palestinian militant group Hamas attacked Israel, killing more than 1,200 people and unleashing conflicts with a death toll of more than 40,000 Gazans, according to Palestinian health authorities.
The economic damage has been largely limited to economies in or adjacent to the conflict: Gaza, the West Bank, Israel, Lebanon, Egypt and Jordan.
“If there was to be an escalation that puts at risk oil and gas delivery, that could have much more significant spillover for the world economy,” Georgieva told Reuters in an interview.
Support for Ukraine also will be a major topic at the meetings, as the G7 wealthy democracies aim to reach a political agreement by the end of October for a $50 billion loan for the Eastern European country backed by frozen Russian sovereign assets. The loan in part is seen as a financial bulwark against a Trump victory next month, as the former US president has threatened to “get out of Ukraine.”
Despite the wall of worry, World Bank and IMF officials intend to spend the week concentrating on the work at hand at the meetings, which coincide with the 80th anniversary of the institutions’ founding in 1944 at Bretton Woods, New Hampshire.
For World Bank President Ajay Banga, that means finding ways to speed up the preparations of projects to use the bank’s expanded lending capacity and refining a new scorecard aimed at improving development outcomes.
“The world is the world right now. And rather than use the meetings to go over what we already seem to know — which is to admire the problem — I’d like to take the annual meetings to doing something about what we can do as institutions,” Banga told reporters last week.
IMF, World Bank meetings clouded by wars, slow economic growth, US election
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IMF, World Bank meetings clouded by wars, slow economic growth, US election
- US election could reshape trade, climate policies
- Anti-China trade sentiment is key topic at meetings
Ukrainian drone attack underway before Azerbaijani plane crash, Russian aviation chief says
- Azerbaijani lawmaker and aviation experts blame Azerbaijan Airlines crash on Russian air defenses
- Crash killed 38 people and left all 29 survivors injured
Russia’s aviation chief said Friday that a Ukrainian drone attack was underway in the Russian region that an airliner was destined for before it diverted and crashed earlier this week.
Dmitry Yadrov, of Rosaviatsia, didn’t comment on statements by an Azerbaijani lawmaker and some aviation experts who blamed Wednesday’s Azerbaijan Airlines crash on Russian air defenses responding to a Ukrainian attack.
The plane was flying from Azerbaijan’s capital of Baku to Grozny, the regional capital of the Russian republic of Chechnya, when it turned toward Kazakhstan and crashed while making an attempt to land there. The crash killed 38 people and left all 29 survivors injured.
Azerbaijan Airlines on Friday blamed the crash on unspecified “physical and technical interference” and announced the suspension of flights to several Russian airports. It didn’t say where the interference came from or provide any further details.
Authorities in Azerbaijan, Kazakhstan and Russia have been tight-lipped about a possible cause pending an official probe. But a member of Azerbaijan’s parliament, Rasim Musabekov, told the Azerbaijani news agency Turan on Thursday that the plane was fired on while in the skies over Grozny and urged Russia to offer an official apology.
Asked about Musabekov’s statement, Kremlin spokesman Dmitry Peskov declined to comment, saying that it will be up to investigators to determine the cause of the crash.
“The air incident is being investigated, and we don’t believe we have the right to make any assessments until the conclusions are made as a result of the investigation,” Peskov said in a conference call with reporters.
Yadrov, the Russian aviation chief, said that as the plane was preparing to land in Grozny in deep fog, Ukrainian drones were targeting the city, prompting authorities to close the area to air traffic.
Yadrov said that after the captain made two unsuccessful attempts to land in Grozny, he was offered other airports but decided to fly to Aktau in Kazakhstan, across the Caspian Sea.
“The situation in the area of Grozny airport was quite difficult,” he said in a statement. “There are many circumstances that it’s necessary to investigate jointly.”
Investigators from Azerbaijan are working in Grozny as part of the crash probe, the Azerbaijani Prosecutor General’s office said in a statement.
As the probe began, some aviation experts pointed out that holes seen in the plane’s tail section suggested that it could have come under fire from Russian air defense systems fending off a Ukrainian drone attack.
Ukrainian drones have previously attacked Grozny and other areas in the country’s North Caucasus.
FlightRadar24 said in an online post that the aircraft faced “strong GPS jamming” that interfered with flight tracking data. Russia has extensively used sophisticated jamming equipment to fend off drone attacks.
Following Wednesday’s suspension of flights from Baku to Grozy and Makhachkala, Azerbaijan Airlines announced Friday that it would also halt service to eight more Russian cities.
The company will continue to operate flights to six Russian cities, including Moscow and St. Petersburg. Those cities also have been repeatedly targeted by Ukrainian drone strikes in the past.
Kazakhstan’s Qazaq Air also announced Friday that it was suspending flights from Astana to the Russian city of Yekaterinburg in the Ural Mountains for a month.
FlyDubai also halted flights to Sochi and Mineralnye Vody in southern Russian until Jan. 5.
The day before, Israel’s El Al carrier suspended flights from Tel Aviv to Moscow citing “developments in Russia’s airspace.” The airline said it would reassess the situation next week.
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Associated Press writer Aida Sultanova contributed to this report from London.
Driver who killed 35 in China car ramming sentenced to death
- On November 11, 62-year-old Fan Weiqiu deliberately drove through people exercising outside a sports complex in his small SUV, the worst attack in China since 2014
BEIJING: A man who killed 35 people in a car attack in the southern Chinese city of Zhuhai last month was sentenced to death on Friday, state media reported.
On November 11, 62-year-old Fan Weiqiu deliberately drove through people exercising outside a sports complex in his small SUV, the worst attack in China since 2014.
He was detained at the scene with self-inflicted knife injuries and fell into a coma, police said at the time.
His case was publicly tried on Friday, state broadcaster CCTV reported, with the verdict reached on the same day.
The court said the defendant’s motives “were extremely vile, the nature of the crime extremely egregious, the methods particularly cruel, and the consequences particularly severe, posing significant harm to society,” state media said.
In front of some of the victims’ families, officials and members of the public, Fan pleaded guilty, it added.
The court found Fan had “decided to vent his anger” over “a broken marriage, personal frustrations, and dissatisfaction with the division of property after divorce,” the report said.
China has this year seen a string of mass casualty incidents — from stabbings to car attacks — challenging its reputation for good public security.
Some analysts have linked the incidents to growing anger and desperation at the country’s slowing economy and a sense that society is becoming more stratified.
Philippine companies secure $100m in deals at Saudi Halal Expo
- Filipino expats in Saudi Arabia were among main drivers of success
- Seafood, precooked meals are Philippines’ top halal export products
MANILA: Philippine companies have secured $100 million in deals at this year’s Saudi Halal Expo in Riyadh, the Department of Trade and Industry said on Friday, marking a milestone in the country’s efforts to tap into the global halal market.
The annual Saudi International Halal Expo was held in Riyadh from Oct. 28 to 30, providing a platform for stakeholders from across the world to see and showcase the latest innovations, research and developments in the global halal market.
The Philippine delegation to the fair was led by the DTI, with exhibitors presenting products that including fruit, food and beverages, as well as supplement sectors to tourism, travel and finance.
The $100 million in deals was achieved from the “participation of Philippine exporters at the Saudi Halal Expo 2024 and B2B (business-to-business) meetings,” Aleem Guiapal, who leads the DTI’s halal industry taskforce, told Arab News.
“Seafood, pre-cooked halal (meals) were the top products.”
One of the main drivers of the success were the more than a million Filipino expats living and working in Saudi Arabia.
“The presence of the overseas Filipino workers in the Middle East is a captured market for Filipino halal products,” he said. “Institutional buyers such as supermarkets and industries also see the value of Filipino ingenuity in our products and cuisine.”
The 64-member Philippine delegation that took part in the expo and business meetings included 12 Filipino companies. They showcased their products under “Halal-friendly Philippines” – a government umbrella brand promoting the country as a halal market hub in the Asia-Pacific region.
The Philippine government welcomed the achievement as proof of the country’s growing international reputation as a provider of halal-certified products and services.
“This success reflects the Philippines’ strategic vision under Bagong Pilipinas to establish a strong and sustainable halal ecosystem that meets global demand,” the DTI’s Secretary Cristina A. Roque said in a statement.
“It is also a testament to the collective efforts of our industries and the government to drive business growth, attract international investments, and create meaningful job opportunities for Filipinos and the global halal community.”
The predominantly Catholic Philippines – where Muslims constitute about 10 percent of the almost 120 million population – has been making efforts to tap into the global halal market, which is estimated to be worth more than $7 trillion.
By increasing its presence and doubling the number of its halal-certified products and services, the Philippine government plans to raise $4 billion in investments and generate about 120,000 jobs by 2028.
India declares week of mourning for former PM Manmohan Singh
- Singh led the country from 2004 to 2014, and was credited with saving India from a financial crisis
- Former leader, the first Sikh to lead the nation, died on Thursday, aged 92
NEW DELHI: Government offices in India lowered the national flag on Friday for a week of mourning for former prime minister Manmohan Singh, whose economic reforms helped transform the country into one of the world’s fastest-growing economies.
The first Sikh to lead the nation, Singh served a rare two terms as prime minister from 2004 to 2014. He died on Thursday at the age of 92.
The government declared a period of mourning until Jan. 1.
“During this period the national flag will be flown at half-mast throughout India where it is regularly flown and there will be no official entertainment during the period of state mourning,” the Ministry of Home Affairs said.
“It has also been decided that the state funeral will be accorded to late Dr. Manmohan Singh.”
Prime Minister Narendra Modi paid tribute to Singh, saying the former leader would be remembered as a “kind-hearted individual, a scholarly economist,” and a leader dedicated to reforms.
“He steered the country out of a financial crisis and paved the way for a new economic direction,” Modi said in a video message.
“His contributions as the prime minister toward the country’s development and progress will always be cherished.”
Singh was born in Gah, now in Pakistan, but his family migrated to India during the partition of the subcontinent in 1947.
He completed his economics degree at the University of Cambridge and earned a doctorate at Oxford with a thesis on the role of exports in India’s economy.
After teaching economics at the University of Punjab, he went to work for the UN Conference on Trade and Development, and later served as economic adviser to the Indian government until he was appointed to head India’s central bank in 1982, and served finance minister from 1991 to 1996.
In the early 1990s, India faced a deep economic crisis, and Singh played a pivotal role in transitioning the country from a closed economy to a more open, liberalized system. This shift set India on a path of sustained growth for decades.
It was also during his term that India signed a landmark civil nuclear deal with the US, despite not being a signatory to the Nuclear Non-Proliferation Treaty. The deal granted India access to advanced American nuclear technology.
“Manmohan Singh will be remembered for initiating economic reforms and aligning the country with the West. The foreign policy crafted during that phase has been pursued vigorously by Narendra Modi,” Sanjay Kapoor, analyst and political editor, told Arab News.
“Among his major achievements are the raising millions of those living below the poverty line and strengthening democratic institutions.”
Singh was asked to take on the prime minister’s job by Sonia Gandhi, who had led the center-left Congress party to a surprise victory in 2004.
“Manmohan Singh Ji led India with immense wisdom and integrity. His humility and deep understanding of economics inspired the nation,” Congress leader Rahul Gandhi said.
“I have lost a mentor and guide. Millions of us who admired him will remember him with the utmost pride.”
China sanctions 7 companies over US military assistance to Taiwan
- The sanctions also come in response to the recent approval of the US government’s annual defense spending bill
- Any assets they have in China will be frozen, and organizations and individuals in China are prohibited from engaging in any activity with them
BEIJING: The Chinese government placed sanctions on seven companies on Friday in response to recent US announcements of military sales and aid to Taiwan, the self-governing island that China claims as part of its territory.
The sanctions also come in response to the recent approval of the US government’s annual defense spending bill, which a Chinese Foreign Ministry statement said “includes multiple negative sections on China.”
China objects to American military assistance for Taiwan and often imposes sanctions on related companies after a sale or aid package is announced. The sanctions generally have a limited impact, because American defense companies don’t sell arms or other military goods to China. The US is the main supplier of weapons to Taiwan for its defense.
The seven companies being sanctioned are Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc. and Oceaneering International Inc., the Foreign Ministry statement said. It said that “relevant senior executives” of the companies are also sanctioned, without naming any.
Any assets they have in China will be frozen, and organizations and individuals in China are prohibited from engaging in any activity with them, it said.
US President Joe Biden last week authorized up to $571 million in Defense Department material and services and military education and training for Taiwan. Separately, the Defense Department announced that $295 million in military sales had been approved.
The US defense bill boosts military spending to $895 billion and directs resources toward a more confrontational approach to China. It establishes a fund that could be used to send military resources to Taiwan in much the same way that the US has backed Ukraine. It also expands a ban on US military purchases of Chinese products ranging from drone technology to garlic for military commissaries.
Zhang Xiaogang, a Chinese Defense Ministry spokesperson, said earlier this week that the US is hyping up the “so-called” threat from China to justify increased military spending.
“US military spending has topped the world and keeps increasing every year,” he said at a press conference. “This fully exposes the belligerent nature of the US and its obsession with hegemony and expansion.”
The Foreign Ministry statement said the US moves violate agreements between the two countries on Taiwan, interfere in China’s domestic affairs and undermine the nation’s sovereignty and territorial integrity.
Taiwan’s government said earlier this month that China had sent dozens of ships into nearby seas to practice a blockade of the island, a move that Taiwan said undermined peace and stability and disrupted international shipping and trade. China has not confirmed or commented on the reported military activity.
