The United Arab Emirates has promised “robust actions” against money-laundering and terrorist financing after the Middle East financial hub was placed on a grey list of countries subject to heightened scrutiny.

The wealthy Gulf state, which includes the freewheeling trade-to-tourism hub Dubai, was named on the Paris-based Financial Action Task Force’s 23-strong list on Friday, joining the likes of Yemen, Syria and South Sudan.

Grey-list countries are “actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing”, the global watchdog said in a statement.

UAE officials said they would strive to meet a list of requirements laid down by the taskforce, including increasing prosecutions and identifying sanctions evasion.

“The UAE takes its role in protecting the integrity of the global financial system extremely seriously,” the UAE’s Executive Office of Anti-Money Laundering and Countering the Financing of Terrorism said in a statement.

“The UAE will continue its ongoing efforts to identify, disrupt and punish criminals and illicit financial networks,” it added, pledging “robust actions and ongoing measures… to secure the stability and integrity of the country’s financial system”.

The resources-rich UAE has become a nexus connecting the Middle East, Europe, Central Asia and Asia. Dubai has the world’s busiest airport in terms of international passenger traffic, and one of the busiest sea ports.

While the desert country has successfully diversified its economy rather than relying on oil, experts and international organisations have long criticised a failure to crack down on murky financial transactions.

Source:  AFP

Oil prices broke above $100 a barrel for the first time since 2014, stock markets slumped and the rouble hit a record low on Thursday after Russian President Vladimir Putin launched an invasion of Ukraine.

Markets displayed all the predictable reactions. Europe’s main stock markets opened 2.5%-4% lower and benchmark government bonds, the dollar, Swiss franc, Japanese yen and gold all rallied in a move to safety.

Putin said he had authorised what he called a special military operation and the Ukraine government accused Moscow of launching a full-scale invasion.

The United States and its allies will impose “severe sanctions” on Russia after the attacks, U.S. President Joe Biden said. Europe’s leaders said they would freeze assets and shut Russian banks out of its financial markets. Russian and Ukraine markets went in freefall.

The rouble weakened nearly 7% to an unprecedented 86.98 per dollar and there were 10% plus falls on the Moscow stock exchange when it opened after an initial suspension. The Russian central bank then ordered a ban on short selling and over-the-counter markets until further notice.

The equities rout had started with a 2.6% dive for pan-Asian indexes. Europe’s STOXX 600 index then fell 2.75% – hitting its lowest since May 2021 and 10% below a January record high.

The German DAX fell 3.7%, bearing the brunt of the sell-off due to heavy reliance on Russian energy supplies and the amounts its companies sell to Russia. The surge in oil prices helped limit losses on the UK’s commodity-heavy FTSE 100, although it still slumped 2.3% and futures markets pointed to similar falls for Wall Street later.

S&P 500 e-minis were down 2% and Nasdaq futures were 2.8% lower, which if it materialises, would confirm the tech-focused index it is in a so-called ‘bear’ market.

“In the past when you have had geopolitical flareups you tend to have a very volatile periods on markets then normalisation, but it’s difficult to assess when we will get that,” said LGIM portfolio manager Justin Onuekwusi.

The dollar index was up 0.5%, in the currency markets.

Assets have seen a sharp increase in volatility over the deepening crisis, with the Cboe Volatility Index, known as Wall Street’s fear gauge, up more than 55% over the past nine days.

Brent crude futures, jumped more than 3.5% to shoot past $100 a barrel for the first time since September 2014.

West Texas Intermediate leapt 4.6% to $96.22 per barrel, its highest since August 2014, while gold jumped more than 1.7% to hit its highest level since early January 2021.

That dive for safety also saw yields on Germany’s AAA-rated government bonds drop eight basis points to 1.139%, the lowest in three weeks.. the benchmark U.S. 10-year yield was down sharply too, going as low as 1.86% from its U.S. close of 1.977% before edging back up to 1.90%.

Investors have also been grappling with the prospect of imminent policy tightening by the U.S. Federal Reserve aimed at combating surging inflation. The question now is whether the conflict will give central bankers a reason to delay those moves or whether the further rise in energy priced could spur them on.

While expectations of an aggressive 50-basis-point hike at the Fed’s March meeting have eased, Fed funds futures continue to point to at least six rate hikes this year.

“Markets are now more adequately pricing in the risk of something horrific happening. That combined with the uncertainty is a horrible environment to be in. No one wants risk exposure when that’s floating around,” said Rob Carnell, head of Asia Pacific research at ING.

Source: REUTERS

Qatar’s emir said major gas exporting nations were working to ensure “credible and reliable” supplies as he hosted a forum overshadowed by the worsening crisis in Ukraine on Tuesday.

Sheikh Tamim bin Hamad Al-Thani said the 11-nation Gas Exporting Countries Forum, which includes Russia, was striving to preserve stability in world markets, which have been rocked by growing fears of a conflict.

But the group made no immediate promise of extra production for Western Europe, which has sought alternatives to Russian gas as the crisis drives up prices and threatens supplies.

Russia is a key member of the forum, which is taking place after Moscow ordered troops into two rebel regions of Ukraine, prompting international condemnation.

Russian Energy Minister Nikolay Shulginov made no reference to the tensions but he told the forum that “Russian companies are fully committed to existing contracts” for gas supplies.

Russia currently accounts for 40 percent of gas used in Europe, and Qatar five percent.

The United States has asked Qatar to help Europe if Russian gas is cut. But Qatar and other producing countries insist that there are no major reserves that can be diverted to Europe, now paying record prices, unless existing customers, mainly in Asia, agree to give up promised supplies.

Qatar’s emir said forum countries were “working hard to ensure a credible and reliable supply of natural gas to world markets and preserve the stability of those markets”.

The emir and other speakers called for closer contacts with consumer markets to ensure a stable supply of gas, which the forum has been pushing as an essential part of the global drive towards cleaner energy.

The summit was also attended by presidents and prime ministers from Algeria, Iran, Mozambique, Equatorial Guinea and Trinidad and Tobago.

Iran’s President Ebrahim Raisi said his country wanted to increase production and exports but was being held back by what he called “cruel and unnatural” US sanctions against his country.

Major powers are negotiating with Iran to revive an accord regulating its controversial nuclear programme that could provide relief from the crippling sanctions.

Even before the sharp rise in energy prices over the past year, the major gas-producing nations had said they needed long-term contracts to ensure a guaranteed supply to consumers.

The European Union has until recently resisted 10, 15 and 20 year contracts typical in the industry. But Qatar and others say that the massive investment needed to increase production meant they need long term deals.

Source: AFP

President Vladimir Putin unveiled a new Russian gas deal with China at a meeting with President Xi Jinping in Beijing on Friday, promising to increase Moscow’s far east exports at a time when Putin is at odds with European customers over Ukraine.

Russia, already Beijing’s No. 3 gas supplier, has been strengthening ties with China, the world’s biggest energy consumer, reducing its dependence on its traditional European energy customers.

“Our oilmen have prepared very good new solutions on hydrocarbon supplies to the People’s Republic of China,” Putin said in a meeting with Xi to discuss closer cooperation. “And a step forward was made in the gas industry, I mean a new contract on supplying 10 billion cubic metres (bcm) per year to China from Russia’s Far East,” said Putin, who was in Beijing to attend the Winter Olympics.

Putin has accused the United States of stoking tensions over Russia’s neighbour Ukraine, which seeks NATO membership. More than 100,000 Russian troops have amassed near the border with Ukraine. Western countries accuse Moscow of planning an invasion, which it denies.

Russia is Europe’s biggest provider of natural gas, and Western countries are worried that already strained supplies could be interrupted in the event of a conflict. However, the new deal with Beijing would not let Moscow divert gas otherwise bound for Europe, as it involved gas from the Pacific island of Sakhalin, unconnected to Russia’s European pipeline network.

Russian gas giant Gazprom said in a statement that it plans to increase gas exports to China to 48 billion cubic metres a year, including via the newly agreed pipeline which will deliver 10 bcm annually from Russia’s Far East.

Under previous plans, Russia aimed to supply China with 38 bcm by 2025. The announcement did not specify when it would reach the new 48 bcm target.

An industry source told Reuters earlier on Friday that Gazprom, which has a monopoly on Russian gas exports by pipeline, had agreed a 30-year contract with China’s CNPC, with the first gas to flow through the new pipeline in two or three years.

Power of Siberia

Russia now sends gas to China via its Power of Siberia pipeline, which began pumping supplies in 2019, and by shipping liquefied natural gas (LNG). It exported 16.5 billion cubic metres (bcm) of gas to China in 2021, including 10.5 bcm via the Power of Siberia pipeline, a network that is also separate from the pipelines that send gas to Europe.

Putin is accompanied by several Russian officials and business executives, including Igor Sechin, head of oil giant Rosneft. Alexei Miller, the head of Gazprom is not in the delegation. Rosneft and CNPC signed a deal on supplying 100 million tonnes of oil to China through Kazakhstan for 10 years, the Russian company said, effectively prolonging the existing deal.

Source: REUTERS

The world’s 10 wealthiest men doubled their fortunes during the first two years of the coronavirus pandemic as poverty and inequality soared, a report said on Monday.

Oxfam said the men’s wealth jumped from $700 billion to $1.5 trillion, at an average rate of $1.3 billion per day, in a briefing published before a virtual mini-summit of world leaders being held under the auspices of the World Economic Forum.

A confederation of charities that focus on alleviating global poverty, Oxfam said the billionaires’ wealth rose more during the pandemic more than it did the previous 14 years, when the world economy was suffering the worst recession since the Wall Street Crash of 1929.

It called this inequality “economic violence” and said inequality is contributing to the death of 21,000 people every day due to a lack of access to healthcare, gender-based violence, hunger and climate change.

The pandemic has plunged 160 million people into poverty, the charity added, with non-white ethnic minorities and women bearing the brunt of the impact as inequality soared.

The report follows a December 2021 study by the group which found that the share of global wealth of the world’s richest people soared at a record pace during the pandemic.

Oxfam urged tax reforms to fund worldwide vaccine production as well as healthcare, climate adaptation and gender-based violence reduction to help save lives.

The group said it based its wealth calculations on the most up-to-date and comprehensive data sources available, and used the 2021 Billionaires List compiled by the US business magazine Forbes.

Forbes listed the world’s 10 richest men as: Tesla and SpaceX chief Elon Musk, Amazon’s Jeff Bezos, Google founders Larry Page and Sergey Brin, Facebook’s Mark Zuckerberg, former Microsoft CEOs Bill Gates and Steve Ballmer, former Oracle CEO Larry Ellison, US investor Warren Buffet and the head of the French luxury group LVMH, Bernard Arnault.

Source: AFP

Over 4,500 flights were cancelled around the world by Saturday and thousands more were delayed as the highly infectious Omicron variant disrupted holiday travel, according to tracking website Flightaware.

One route, however, was thankfully not affected: Santa was on track delivering presents to children across the globe, air defense officials assured US President Joe Biden.

According to Flightaware.com, at least 2,000 flights were cancelled worldwide on Christmas Day, including roughly 700 originating from or headed to US airports, with more than 1,500 delays as of 0720 GMT.

On Friday, there were around 2,400 cancellations and almost 11,000 delays. The site also reported over 600 cancellations for Sunday.

Pilots, flight attendants and other staff have been calling in sick or having to quarantine after exposure to Covid, forcing Lufthansa, Delta, United Airlines and many other carriers to cancel flights during one of the year’s peak travel periods.

Flightaware data showed United cancelled around 200 flights on both Friday and Saturday, or 10 percent of those that were scheduled.

“The nationwide spike in Omicron cases this week has had a direct impact on our flight crews and the people who run our operation,” United said in a statement on Friday.

“As a result, we’ve unfortunately had to cancel some flights and are notifying impacted customers in advance of them coming to the airport,” the airline said, adding that it was working to rebook passengers.

Similarly, Delta cancelled at least 260 flights Saturday and around 170 on Friday, saying it has “exhausted all options and resources — including rerouting and substitutions of aircraft and crews to cover scheduled flying.”

“We apologize to our customers for the delay in their holiday travel plans,” the company said.

Eleven Alaska Airlines flights were axed, after employees said they were potentially exposed to Covid-19 and had to self-isolate in quarantine.

The cancellations added to the pandemic frustration for many Americans eager to reunite with their families over the holidays, after last year’s Christmas was severely curtailed.

Chinese airlines accounted for the highest number of cancellations with China Eastern scrapping around 480 flights or over 20 percent of its flight plan, and Air China grounding 15 percent of its total scheduled departures at around 0720 GMT Saturday.

Huge travel bump

According to estimates from the American Automobile Association, more than 109 million Americans were scheduled to travel by plane, train or automobile between December 23 and January 2, a 34 percent increase since last year.

But most of those plans were made before the outbreak of the Omicron variant, which has become the dominant strain in the United States, overwhelming some hospitals and healthcare workers.

Luckily, Omicron did not affect Santa’s travel plans, according to the North American Aerospace Defense Command (NORAD), which has tracked St. Nick’s Christmas journey for over 60 years.

Major General Eric Kenny, commander of the Canadian NORAD region, told AFP that Santa had distributed over two billion gifts and was above Pakistan around 1800 GMT.

“Santa is doing very well so far,” Kenny said. “He’s been at it for many hours already and will go throughout the evening as well.”

Biden and First Lady Jill Biden also spoke to NORAD officials via video conference Friday to ensure Father Christmas’ trip was going smoothly.

Biden then spoke, also via video call, to several American families, asking children what presents they wanted and telling them that they had to be in bed before midnight, otherwise Santa would not come.

But in a sign of deep political divisions plaguing American society, the event then took a sour turn, when a father, to whom Biden had just wished happy holidays, launched an insult at him.

According to journalists present at the event, the father said “Merry Christmas” followed by “Let’s go Brandon!” The phrase has been used by supporters of Donald Trump as a euphemism for a derogatory remark against the current president.

Source: AFP

The supply chain troubles caused by Brexit and the pandemic have been so bad for Satyan Patel that the shelves at his convenience store in central London are seriously lacking water and soft drinks.

“Last week I ran out of Coca-Cola. I haven’t had large bottles of Evian for three weeks,” said Patel.

“Without products, there’s no business. With empty shelves like this, no one is going to come in the shop anyway,” he added.

A wide range of businesses have suffered through shortages for several months in the UK — from milkshakes at McDonald’s to beer at a pub chain to mattresses at Ikea.

But shoppers are also facing empty shelves for things as basic as water and milk at UK supermarkets and grocery stores.

The coronavirus crisis has severely disrupted the global supply chain, but Britain’s divorce from the European Union late last year has exacerbated the problem in the UK.

Shops are not getting products delivered to them as rules making it harder to hire EU citizens has left haulage companies with a drastic shortage of lorry drivers.

Many people who returned to their home countries from Britain during the lockdown have not returned.

Co-op, a cooperative supermarket group, said it was “impacted by some patchy distribution” to its deliveries but it was working with suppliers to re-stock quickly.

The group said it was recruiting 3,000 temporary workers “to keep depots working to capacity and stores stocked as quickly as possible”.

– Where’s the milk? –

According to recent estimates, the UK currently faces a shortage of about 100,000 lorry drivers.

“We had already decided to reduce our stock because of Covid… but now we’re finding it hard to get some products as well because they’re just not available,” Patel said.

At a supermarket near his store, the soft drinks aisle was a little short of bottles and cans but other shelves were full.

But 22-year-old sales assistant Toma said the situation was grim.

“We don’t have stock, we have nothing in our warehouse,” said Toma, who declined to give her last name.

“We have gaps everywhere,” she said. “Sometimes we receive only a certain amount (of some products). We don’t even have water.”

The shortages began when the pandemic hit and got worse after Brexit came into force on January 1, Toma said.

Some customers complain to supermarket staff and “say it’s us to blame”, she added.

At another major supermarket in southeast London, water bottles were sparse and milk was missing from shelves.

Frozen-food group Iceland and retail giant Tesco have warned of Christmas shortages.

Iceland head Richard Walker said the company has reduced deliveries as it has 100 fewer drivers than it needs.

“Every day we are missing around 10 percent of the stock we have ordered into our depots,” he wrote in a blog, adding that “when things were at their worst” its sole bread supplier was unable to deliver to as many as 130 stores per day.

– ‘Perfect storm’ –

Shortages of goods in the UK “will probably last for a while and may even intensify further”, according to a note by Capital Economics, a research consultancy.

A report this week from the Confederation of British Industry cited the Road Haulage Association as saying it would take at least 18 months to train enough Heavy Goods Vehicle (HGV) drivers to replace those who have left.

For the CBI, the dual effects of Brexit and Covid-19 are a “perfect storm”.

Stock levels in relation to expected sales fell by more than 20 percent to a record low across the retail and distribution sector in August, according to the CBI.

The group has urged the government to be more flexible on immigration and add skilled lorry drivers to a list of professions that are short on workers.

Road transport companies and businesses dependent on deliveries are offering bonuses and higher wages in an attempt to retain drivers, but the moves have raised concern that they could contribute to rising inflation.

Ryan Koningen, a 49-year-old project manager at a company in the City of London, said his colleagues often discussed the situation and “the question of costs: will they rise because drivers are paid premiums?”

He too said he had noticed shortages of “day-to-day products”.

Source: AFP

China said on Friday that it has imposed counter-sanctions on U.S. individuals including former U.S. commerce secretary Wilbur Ross in response to recent U.S. sanctions on Chinese officials in Hong Kong.

The sanctions are the first imposed by China under its new anti-foreign sanction law, passed in June, and come days before U.S. Deputy Secretary of State Wendy Sherman is due to visit China amid deeply strained ties.

China also imposed unspecified “reciprocal counter-sanctions” on current and former representatives of a range of organisations, including the Congressional-Executive Commission on China and the U.S.-China Economic and Security Review Commission.

Other institutions named included the National Democratic Institute for International Affairs, the International Republican Institute, Human Rights Watch (HRW), and the Washington-based Hong Kong Democracy Council (HKDC).

“The U.S. side concocted the so-called Hong Kong business advisory, baselessly smeared Hong Kong’s commercial environment, and illegally sanctioned Chinese officials in Hong Kong,” China’s Foreign Ministry said in a statement.

“These actions seriously violated international law and the basic principles of international relations, and seriously interfered in China’s internal affairs,” the ministry said.

White House press secretary Jen Psaki told a regular news briefing that the United States was “undeterred” by China’s move, which came after Washington last week issued its business advisory for Hong Kong and imposed sanctions on more Chinese officials over Beijing’s crackdown on democracy in the former British colony.

“These actions are the latest examples of how Beijing punishes private citizens, companies and civil society organizations as a way to send political signals,” Psaki said, adding that they illustrated the very risks about which the U.S. government had warned.

Ross could not be immediately reached for comment.

It was the second time this year that China has imposed sanctions on officials who served under former President Donald Trump, who adopted a tough line on Beijing and confronted it over trade, business practices, human rights and other issues.

Around the time Biden was sworn in as president in January, China announced sanctions against outgoing Secretary of State Mike Pompeo and 27 other top Trump officials.

The Biden administration called that move “unproductive and cynical.”

Biden has sought to rally allies and partners to help counter what the White House says are China’s increasingly coercive economic and foreign policies.

But U.S. officials say Sherman’s trip over the weekend to China, where she is due to meet Chinese State Councillor and Foreign Minister Wang Yi, is an effort to ensure that competition between the two powers does not spill over into conflict.

Some of the groups hit by Beijing largely dismissed any negative impact of the sanctions. The HKDC said on Twitter that being targeted by China’s ruling Communist Party was the “best validation” of its fight for Hong Kong’s pro-democracy movement.

“HKDC and Six Individuals in the US Recognized by PRC Ministry of Foreign Affairs for Human Rights Advocacy”

Human Rights Watch’s China director Sophie Richardson, who was sanctioned by China by name on Friday, called the move “hollow.”

“These are diplomatic tantrums that are designed to distract attention away from Beijing’s complicity in crimes against humanity,” she said, referring to China’s alleged human rights abuses in its western region of Xinjiang. China has dismissed the accusations.

(REUTERS)

The World Trade Organization kicked off a ministerial meeting Thursday aimed at breathing life into drawn-out negotiations towards banning subsidies that favour overfishing, but numerous sticking points remain.

Before the meeting, WTO chief Ngozi Okonjo-Iweala voiced cautious optimism that trade ministers from the organisation’s 164 member states could finally move towards clinching a “historic” agreement after 20 years of negotiations.

“While no one expects a miracle, the meeting represents a golden opportunity to bring the negotiations within striking distance of a deal,” she said in an editorial published Wednesday in Project Syndicate.

“A failure to do so would jeopardise the ocean’s biodiversity and the sustainability of the fish stocks on which so many depend for food and income.”

The talks aim to ban subsidies that contribute to illegal and unregulated fishing, as well as to overfishing, threatening the sustainability of fish stocks and the industry.

While fishing should in theory be held in check by the environment, with low fish stocks pushing up costs, subsidies can keep unprofitable fleets at sea.

It is widely agreed that action is needed to protect a crucial resource that millions of people depend on for their livelihoods.

In 2017, the Food and Agriculture Organization estimated that one third of global fish stocks were overfished.

Global fisheries subsidies are meanwhile estimated at between $14 billion and $54 billion a year, according to the WTO.

But two decades of negotiations have stumbled over a range of issues, including a UN demand that developing countries and the poorest nations receive special treatment.

After missing the last UN deadline to reach an agreement by December 2020, talks have intensified in recent months however.

– ‘Historic’ –

Okonjo-Iweala, who took the reins of the global trade body in March, has made clinching the long-awaited fisheries deal by the end of this year a priority.

Thursday’s meeting, which is taking place virtually due to Covid restrictions, is focusing on a draft text presented in May by Colombian ambassador Santiago Wills, who chairs the WTO fisheries subsidies negotiations.

Okonjo-Iweala voiced optimism that “marathon discussions” on the text, which according to Wills proposes “compromise language” in a range of areas, would succeed.

“We are on the cusp of forging an agreement at the WTO that is historic in more ways than one,” she said, stressing that a deal would also show that “members can come together and act on issues of the global commons.”

Reaching any kind of an agreement at the WTO can be hard, because all decisions require a consensus among all member states.

But observers said there had been a clear boost in momentum towards finding a deal.

“We have never had more political attention on the issue, (nor) the degree of political attention from a director general, and the degree of commitment from WTO members to really advanced this text,” Alice Tipping of the International Institute for Sustainable Development told reporters in Geneva.

– Special treatment? –

But a number of sticking points remain and NGOs warn against rushing to the finish line at any cost.

“It’s critical that WTO members do not sacrifice environmental outcomes for the sake of speed when negotiating a fisheries subsidies agreement,” Isabel Jarrett of The Pew Charitable Trusts told AFP.

One of the main stumbling blocks has been a UN demand that developing countries and the poorest nations receive so-called special and differential treatment, or SDT.

While special treatment for the poorest countries is widely accepted, demands from some self-identified developing countries to be exempt from subsidy constraints has proved difficult to swallow.

Many of the major fishing nations are considered developing countries by WTO, including China, which has one of the world’s biggest fishing fleets.

An EU official told reporters this week that a declaration from China that it was prepared to assume “full commitments without claiming SDT” would be “very helpful” to the talks.

There is also disagreement over how broad the fisheries deal should be.

There appears to be consensus around excluding fish-farming and continental fishing from subsidy constraints.

But some developing countries are calling for fuel subsidies, including through tax deduction schemes like those widely used in the EU, to be included in the deal — something the bloc flatly rejects.

Source: AFP