USA
India offloading US Treasuries to support national currency and buy gold
22 Oct 2018
The Reserve Bank of India (RBI) is cutting down on its holding of US Treasuries, joining a number of countries which have been dumping US debt to bolster domestic economies.
The country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee.
Foreign portfolio investors (FPI) have pulled out more than $10 billion of their investments in the Indian markets since April. That has resulted in rupee losing more than 10 percent in value against the dollar. “If FPI flows do not revive amid an US-China trade war, the RBI may need to sell another $10-15 billion by March,” said Bank of America Merrill Lynch. According to its report, there could be more pressure on India's central bank to sell US bond holdings in order to meet the dollar demand. Click here to read...
Trade war: Govt sees space for Indian exporters in US
22 Oct 2018
The commerce department is sensing an opportunity for exporters in the US due to the trade war with China and has identified close to 180 items where Indian players can take advantage of the opportunity that has opened up due to higher duties on Chinese products. The products are spread across sectors ranging from engineering goods to auto components and some chemicals, sources told TOI. The department, which is seeking to push Indian exports at a time when the trade deficit is widening, has begun sensitising trade bodies and is asking them to aggressively move to tap the opportunity.
The list includes motors and components used in vehicles apart from specialised chemicals. While the list put together by the government covers Chinese exports of around $8-10 billion, which would be impacted by higher import duties in the US, sources said, Indian exporters could look at grabbing a part of the market. Click here to read...
Migrant caravan a mid-terms game changer?
24 Oct 2018
A group of thousands of South American migrants is slowly making its way through Mexico towards the US border, drawing the ire of President Donald Trump and shaking up the midterm elections campaign with two weeks until polling day.
On Monday, Trump claimed "criminals and unknown Middle Easterners are mixed" into the migrant caravan and floated the possibility of deploying the military to close the US-Mexico border. The president made the infiltration claims shortly after a Fox News segment detailing the unrelated arrest of ISIS fighters in Guatemala aired.
On Twitter, the president blamed Democrats for blocking tougher immigration measures and said he will begin the process of "cutting off or substantially reducing" foreign aid to Guatemala, Honduras and El Salvador in reprisal for those countries failing to do "the job of stopping people from leaving their country and coming illegally to the US".Click here to read...
Pipe bombs investigation turns toward Florida as more Trump critics are targeted
25 Oct 2018
Federal authorities investigating a spate of pipe bombs sent this week to several prominent critics of President Trump have turned their attention to southern Florida, believing that a number of the devices were mailed from there, two people briefed on the matter said Thursday.
The focus on Florida came as three more devices were found, the F.B.I. said. Two were addressed to former Vice President Joseph R. Biden Jr. in Delaware and a third to the actor Robert De Niro, who lives and works in Lower Manhattan. All 10 of the similar-looking packages discovered since Monday bore return addresses from Representative Debbie Wasserman Schultz, a Democrat whose district is in southern Florida. And Kirstjen Nielsen, secretary of the Department of Homeland Security, told Fox News on Thursday that some of the packages were sent from within the state. Click here to read...
US pullout from INF nuclear treaty with Russia also targets China: Trump
24 Oct 2018
President Donald Trump said Monday (Oct 22) that his decision to withdraw from a decades-old atomic accord with Russia was also driven by a need to respond to China's nuclear build-up. "Until people come to their senses, we will build it up," Trump told reporters Monday at the White House, referring to the US nuclear arsenal. "It's a threat to whoever you want. And it includes China. And it includes Russia. And it includes anybody else that wants to play that game."
Beijing is not a signatory to the Intermediate-Range Nuclear Forces Treaty (INF). China for its part Monday called on the United States to "think twice" about its decision to ditch a Cold War-era nuclear weapons treaty with Russia. "It needs to be emphasised that it is completely wrong to bring up China when talking about withdrawal from the treaty," said Chinese foreign ministry spokeswoman Hua Chunying.
The landmark treaty was signed by Ronald Reagan and Mikhail Gorbachev in 1987 and led to nearly 2,700 short and medium-range missiles being eliminated. Click here to read...
An inflection point for America’s democratic future
23 Oct 2018
For the future of American politics, the 2018 congressional elections will likely be the most consequential in over two decades, at least since the 1994 Republican takeover led by Newt Gingrich. Yet regardless of the outcome, do not expect a major improvement in relations between the United States and Europe. In fact, things will likely get worse.
Consider the two possible scenarios. First, the Republicans hold back the Blue Wave. This may seem improbable, but recent polls suggest they will likely maintain control of the Senate, and could hold onto control of the House. Current estimates show Republicans with about the same odds of keeping the House majority as Donald Trump had winning the presidency in 2016.
If the GOP prevails, it will be seen as a reaffirmation of everything Trump has stood for and a vindication of the manner in which he has done so. Trump will have once again defied expectations and made history — doing something presidents from Harry Truman to Barack Obama failed to do — and he will be sure to remind us all every day. Click here to read...
Key numbers and races
23 Oct 2018
As they approach the final weeks until the 2018 mid-term elections, the stakes are high for both the Republican and Democratic parties as they look toward the 116th Congress. Historically speaking, Congressional midterm elections in the United States are often defined by low voter turnouts and a loss of seats for the sitting president’s party. A study by Brookings shows that the last 21 mid-term elections have seen the president’s party average a loss of 30 seats in the House of Representatives and four seats in the U.S. Senate, especially when the President has an approval rating below 50 percent. As such, the mid-term elections are seen by some as a referendum on the President’s party and a moment for significant gains by the minority party.
President Trump’s approval ratings since taking office have remained near 40-45 percent, indicating that the Republicans majorities are in real danger. Furthermore, a September 2018 Pew poll of registered Democrats found that 67 percent of respondents felt renewed enthusiasm about voting for their party as opposed to 36 percent in 2008. Even after the fight over Brett Kavanaugh’s Supreme Court confirmation gave the Republicans a bump in support, many analysts agree this did not significantly reduced support for Democrats. Click here to read...
Trump may revive the Cold War, but China could change the dynamics
22 Oct 2018
Over the past few days, the shape of what many in Europe and the United States call a new Cold War has begun to emerge with threats and nuclear weapons that resemble the old one, punctuated by new dynamics, in part because of the rise of a rich, expanding and nationalist China.
The change was evident as President Trump explained his decision to abandon a 31-year-old arms-control treaty with Russia — hinting he was ready to plunge into a new arms race with both Moscow and Beijing, and as the Justice Department filed charges, for the third time this year, against Russians accused of interfering in American elections. Click here to read...
Super Hornet’s Make-in-India Programme: SASMOS delivers 1000th F/A-18 electrical panel assembly to Boeing
22 Oct 2018’
Bangalore based SASMOS HET Technologies Limited, a leading manufacturer of wiring harness, electro-mechanical assemblies and unit integration products delivered for the US aerospace giant Boeing Company’s the 1000th F/A-18 Super Hornet electrical panel assembly, on schedule. This marks a significant milestone in the `Make-in-India’ initiative and underscores the importance of Indian manufacturers in building the future of aerospace and defense globally. The company has progressed from being a start-up organization to a preferred partner by OEM’s in the industry and created the benchmark in the Harness manufacturing industries in India.
According to Karl Jeppesen, vice president, Boeing Defense, Space & Security Supply Chain, “This delivery is not just an important milestone for SASMOS, but also for Boeing and the Indian industry”; adding that “As Boeing continues to move forward, these are the types of exciting advancements that will enable the Indian aerospace industry to become the economic growth engine defined by Make in India.” Click here to read...
2 US warships pass through Taiwan Strait as ‘freedom of navigation’ feud with China escalates
22 Oct 2018
Two US warships have reportedly passed through the Taiwan Strait, a move that will likely be viewed by Beijing as yet another escalation amid Washington’s ongoing operation to impose freedom of navigation in the South China Sea. The USS Antietam, a guided missile cruiser, and the USS Curtis Wilbur, a guided missile destroyer, traveled through the strait Monday, sailing from south to north, the US Navy said, confirming earlier reports from Taiwan’s Defense Ministry.
The ships’ passage through the strait demonstrates “the US commitment to a free and open Indo-Pacific,” Cmdr. Nate Christensen, a spokesman for US Pacific Fleet, told CNN. The last time US naval vessels passed through the strait was in July. Click here to read...
New US data suggests Indian firms are backing away from the H-1B visa
24 Oct 2018
The Donald Trump administration seems to have finally succeeded in dissuading Indian companies from relying too heavily on H-1B visas.
Only one Indian company, the IT services firm Tata Consultancy Services (TCS), was among the top 10 companies that filed the most labour condition applications (LCAs) before the United States Department of Labor in the year ended Sept. 30, 2018, official data show (pdf). An LCA is a document filed by companies seeking to hire someone on an H-1B visa to the department.
London-headquartered consulting firm Ernst & Young, which filed over 150,000 LCAs in the year, topped the list. Click here to read...
Indian Army looks to buy Àvenger UAV from the US
24 Oct 2018
Now the Indian Army shows interest in the Avenger UAV from the US-based General Atomics. Industry sources confirmed to FE Online that “During the recent 2+2 India-US Strategic Dialogue in New Delhi, the request from the Indian Army for the UAVs was one of the items discussed when the US Secretary of Defence James Mattis met with the Defence Minister Nirmala Sitharaman.”
The first time the request was made by the Indian Army in June 2017, when Mattis was here for a bilateral meeting with Sitharaman. As has been reported by FE earlier, the Trump administration has already started their internal processing for 100 armed drones for the Indian Air Force (IAF). The IAF has sought the jet propelled Avenger Drones (formerly Predator C). Click here to read...
US Navy’s long range maritime reconnaissance aircraft arrives to participate in joint exercise with Indian Navy
24 Oct 2018
A United States Navy P-8A Poseidon Long Range Maritime Reconnaissance aircraft arrived at Goa on October 22, 2018, to participate in a joint exercise with the Indian Navy. According to a statement here on Wednesday, Capt Ray Owens, The United States Naval Attaché to India and Commander Micheal Bulkot, the Detachment Commander called on Rear Admiral Philipose Pynumootil, Flag Officer Commanding Goa Area on October 23, 2018. The detachment comprises 21 members including two women technicians. This detachment marks the maiden visit of a US Navy P-8A aircraft to Goa. The aircraft will take part in a joint Anti- Submarine Warfare exercise along with the Indian Navy’s P-8i aircraft.
US aircraft manufacturer Boeing has made both P-8l and P-8A. Boeing 737 is the commercial version of these aircraft. P-8i and P-8A have a range of 8300 km and speed in excess of 900 kmph. The weapon suite includes Harpoon Anti-Ship missiles and Mk 54 torpedoes. They are also capable of deploying and monitoring sono-buoys which indicate presence of submarines. The other sensors include surface search radars and electronic support measures, electro-optic/ infra red camera and magnetic anomaly detector. Click here to read...
RUSSIA
Kremlin: Putin’s decree opens the door to tit-for-tat response to Ukraine’s
sanctions
23 Oct 2018
Kremlin Spokesman Dmitry Peskov did not rule out that Russia may respond to Ukraine’s sanctions with countermeasures against its economy, individuals and legal entities. "Ukraine is taking measures regarding the economy, legal entities, and individuals. That is why, none of them can be ignore in any way," Peskov said. "The decree instructs the government to draw up an appropriate list and this will be done," he assured.
When asked whether Russia’s countermeasures may affect all Ukrainian people, Peskov referred to President Vladimir Putin, who repeatedly said that "we don’t consider the Ukrainian people as counter-parties for any restrictions." Click here to read...
Putin, Medvedev to meet with Italian Prime Minister and discuss bilateral cooperation
24 Oct 2018
Russian President Vladimir Putin and Prime Minister Dmitry Medvedev will meet on Wednesday with Italian Prime Minister Giuseppe Conte, currently on a state visit to the Russian Federation at the invitation of the Russian leader. Aide to the Russian President Yury Ushakov told reporters that the Russian leader and Italian Prime Minister will meet in Moscow to discuss bilateral cooperation and international issues. He added that this would be Putin’s first contact with the current head of the Italian government.
On the same day, Medvedev and Conte are expected to meet. According to the press service of the Russian Prime Minister, the parties will discuss implementation of major joint projects, as well as topical issues of the Russian-Italian trade, economic, cultural and humanitarian cooperation, progress of major joint projects in the energy sector, industry, high technology and other areas. Click here to read...
What sanctions? US, Japan and India join new Russian LNG project
24 Oct 2018
Russia’s energy major Rosneft will build a new liquefied natural gas (LNG) plant in partnership with US ExxonMobil, Japan's SODECO and India's ONGC Videsh, Reuters reports. The estimated $15 billion cost would be spread among the four firms, according to the news agency’s information. Rosneft, Exxon, SODECO and ONGC Videsh are all partners in the Sakhalin-1 LNG project. The new plant was intended to be built by Rosneft and Exxon, but the project was later joined by Indian and Japanese firms. Sakhalin-1 is led by Exxon with a 30 percent stake. Another 30 percent belongs to SODECO, while Rosneft and ONGC Videsh own 20 percent each. LNG is not a subject of the anti-Russian sanctions, but Russian companies are facing problems with getting loans abroad.
Russia has an ambitious plan doubling its global LNG market share to 20 percent in the next decade. The country has two other LNG plants – Novatek's Yamal LNG and Gazprom's Sakhalin-2. On Tuesday, the Russian Direct Investment Fund (RDIF) announced Saudi Arabia is ready to invest $5 billion in the Arctic LNG 2 project. Novatek is planning to sell up to 40 percent of the project to foreign partners. Click here to read...
AFRICA
West Africa's Ebola outbreak cost $53 billion: Reuters
24 October 2018
An Ebola outbreak that ravaged Sierra Leone, Guinea and Liberia in 2014 cost economies an estimated $53 billion, according to a study in this month's Journal of Infectious Diseases. The study aimed to combine the direct economic burden and the indirect social impact to generate a comprehensive cost of the outbreak, which was the worst in the world.
The outbreak ran from 2013 to 2016 and killed at least 11,300 people, more than all other known Ebola outbreaks combined. The vast majority of cases were in Guinea, Liberia and Sierra Leone. Click here to read...
Sudan's Prime Minister announces 15-month Emergency Economic Reform Plan: Reuters
24 October 2018
Sudan’s Prime Minister Moataz Moussa announced before parliament on Wednesday a 15-month emergency economic reform plan, including further austerity measures, to begin this month.
Sudan’s economy has been struggling since the south seceded in 2011, taking with it three-quarters of oil output and depriving Khartoum of a crucial source of foreign currency. Click here to read...
Africa cancels a Belt and Road Initiative Project for the first time
25 October 2018
Sierra Leone, one of the world’s developing countries, has scrapped plans to build a China funded $318-million airport outside the capital, Freetown. This is the first instance of an African country announcing the cancellation of a China One Belt One Road project. The World Bank and the International Monetary Fund (IMF) both warned earlier that this project may bring an unnecessary debt burden to Sierra Leone.
The mega-project, which was due to be completed in 2022, had been commissioned by former Sierra Leone president Ernest Bai Koroma. But the new president, Julius Maada Bio, has since reassessed the huge loans offered by China to his predecessor. Click here to read...
Ethiopia appoints Sahle-Work Zewde as first female President: The Independent
27 October 208
A week after Prime Minister Abiy Ahmed of Ethiopia filled half his new Cabinet with women in a radical overhaul, the country’s parliament took another step towards gender parity Thursday by appointing the country’s first female president.
Sahle-Work Zewde, 68, a seasoned diplomat who has held positions in the United Nations and worked in peacekeeping operations in Africa, accepted the position after the unprecedented appointments of women to lead the Defence Ministry and the secret intelligence agency, a long-feared state organ that recently got a face-lift. (It is now called the Ministry of Peace.) Click here to read...
Ethiopia announces $7 billion road and power projects: africanews
27 October 2018
Ethiopia announced $7 billion worth of new road and power supply projects on Friday, according to the state-affiliated Fana news agency.
The government’s Public-Private Partnerships Office said the three road and 13 power projects would be launched this fiscal year, after the tendering processes were completed, Fana reported. It did not say how they would be financed or give any other details on the projects. Click here to read...
Thousands pray against 'Civil War' in South Africa: africanews
28 October 2018
Thousands of people gathered on Saturday for a prayer rally in Pretoria, South Africa. They came from all corners of the country, even as far as Namibia and made the trek to Rhino Park airfield, the venue for the rally. They sang praises and rejoiced. Others prayed for South Africa’s leaders and against corruption.
“If we believe the bible standards is the right way to live, why is the Christian party not in power in South Africa? Evil is what happens when good people sit and do nothing”, Matshidiso Nkabinde, a nurse. Click here to read...
eSwatini King appoints MTN Executive as Prime Minister: Reuters
28 October 2018
eSwatini’s King Mswati has appointed Ambrose Dlamini, chief executive of the local unit of telecoms group MTN, as new prime minister of the southern African kingdom, local media reported. Mswati is Africa’s last absolute monarch and has tight political control over the impoverished, land-locked nation formerly known as Swaziland, where political parties are banned. The king chooses the prime minister and government. The Times of Swaziland reported that Mswati made the announcement to supporters on Saturday at his royal residence. Click here to read...
