Gold hits record high as US-China ties worsen, Asia stocks helped by technology

News Network
July 27, 2020

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Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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News Network
March 25,2024

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A teenager who led over 100 people to safety during Friday’s terrorist attack at a Moscow concert hall, has been hailed as a hero. 15-year-old Islam Khalilov, who worked part-time in one of the cloakrooms at Crocus City, recounted the events of the tragic evening to the Ruptly video agency.

The concert venue situated just outside of Moscow was packed ahead of a performance by the Russian rock band Picnic, when a group of terrorists armed with assault rifles forced their way into the building. They fired indiscriminately at fleeing people and then set the concert hall on fire.

According to the latest estimates, the attack has claimed the lives of at least 137 people, with about 180 injured.

Khalilov told the video agency that “it was when people started running from the escalator, from the stairway” that he realized that an emergency was occurring. The teenager said that he was acting on “instincts” at the time and used his thorough knowledge of the premises to quickly arrange visitors’ evacuation toward another building within the Crocus City complex.

“I started shouting all across the foyer, all across Crocus City Hall - ‘Folks, there’s a shooting! All run to the expo!’ – and I was showing where they had to go and was helping everyone,” he explained.

According to the cloakroom attendant, “there was a stampede, and everyone was in shock at first. No one knew what to do and where to go.”

Khalilov added that he himself was running behind the entire group to make sure he had not left anyone behind.

The teenager admitted to being “really scared” all along, but still managed to make the right use the instructions he’d previously been given on how to evacuate patrons in case of an emergency.

He told Ruptly that, at one point, he had caught a glimpse of one of the terrorists.

“I saw one, [he was] bearded and in green fatigues, he was walking around with an assault rifle,” the teenager recounted.

He also recalled seeing a man getting fatally shot by one of the assailants, adding that he “can’t stop thinking about it.”

The 15-year-old said he doesn’t consider himself a hero, and that he was just doing his job.

Explaining what helped him overcome fear, Khalilov reasoned that “It’s better to sacrifice yourself than to let a hundred people die.”

After Khalilov’s feat had been reported-on by several Russian media outlets, his favorite football club, FC Spartak Moscow, invited him to a meeting where he was presented with free passes to their matches.

Popular Russian rap artist Morgenstern said he had transferred 1,000,000 rubles ($11,000) to the teenager – something that Khalilov has confirmed to media.

The leader of Russia's Muslims, Mufti Ravil Guynutdin, has announced that Khalilov would receive a medal for his bravery.

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News Network
March 18,2024

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New Delhi, Mar 18: The Election Commission on Monday afternoon issued orders for the removal of six Home Secretaries - including the top bureaucrats from Gujarat, Bihar, and Uttar Pradesh.

The poll panel also directed the transfer of West Bengal's Director-General of Police, the top cop of a state that has seen several instances of poll-related violence in recent years. The poll panel further said a shortlist of three potential replacements had to be prepared and submitted by 5 pm.

The re-shuffle, not an uncommon move by the Election Commission before major polls, also includes the transfer of the Jharkhand, Himachal Pradesh, and Uttarakhand Home Secretaries, as well as senior officials attached to the offices of the Mizoram and Himachal Pradesh Chief Ministers.

In addition, Iqbal Singh Chahal, who is Commissioner of the Brihanmumbai Municipal Corporation, and other officials in municipalities across Maharashtra, have been removed too.

All of this comes less than a month before the 2024 Lok Sabha poll; the ECI on Saturday said voting will begin on April 19 and run over seven phases till June 1.

This is, in fact, the first bureaucratic re-jig by the ECI since it announced polling dates.

The ECI's move comes after a meeting of Chief Election Commissioner Rajiv Kumar and his two associates, the newly-appointed Gyanesh Kumar and Sukhbir Singh Sandhu. This step comes as part of the poll panel's commitment to ensure a level playing field for all political parties in the forthcoming Lok Sabha and Assembly elections, as well as by-polls for 26 seats in 13 states.

Sources said the personnel removed were found to be holding dual charge in the offices of the respective chief ministers of each state, and this could compromise, or be seen to be compromising, required neutrality, particularly in relation to law-and-order before, during and after polling.

Bengal's ruling Trinamool has not yet reacted to the removal of DGP Rajiv Malik, who is seen by some to be close to Chief Minister Mamata Banerjee's party. In the past, the state government has questioned the last-minute re-shuffle of senior civil service and police officials so close to an election, arguing it actually hampers prep work since the new faces need time to adjust to the post.

Bengal has frequently witnessed violence during polling season; in June last year over a dozen people were killed across the state as voting for a panchayat election was underway.

The Trinamool accused the opposition of instigating violence and criticised central forces for their failure to protect voters, while the Congress claimed the state had let thugs loose on the people.

While announcing the dates on Saturday, the Chief Election Commissioner said the poll panel would take a very dim view of any violence during the election. Mr Kumar said the ECI is prepared to come down hard on any such incident. "We're putting political parties on notice," he declared.

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News Network
March 18,2024

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Russian President Vladimir Putin claimed a landslide victory in the just-concluded presidential polls, securing him a fifth term in power. While Putin hailed the results as an indication of "trust" and "hope" in him, critics panned the polls for its preordained nature.

As early results poured in, Putin won 87.8% of the vote, the highest-ever result in Russia's post-Soviet history, Reuters quoted Public Opinion Foundation (FOM) exit polls. The Russian Public Opinion Research Centre (VCIOM) put Putin on 87%. 

If he completes the term, the 71-year-old President will also script history as Russia's longest-serving leader for more than 200 years, overtaking Josef Stalin. 

While Communist candidate Nikolai Kharitonov finished second with just under 4%, newcomer Vladislav Davankov third, and ultra-nationalist Leonid Slutsky fourth, partial results suggested.

In his victory speech, Putin said he would prioritise resolving tasks associated with Russia's "special military operation" in Ukraine and would strengthen the Russian military. 

"We have many tasks ahead. But when we are consolidated - no matter who wants to intimidate us, suppress us - nobody has ever succeeded in history, they have not succeeded now, and they will not succeed ever in the future," said Putin. He was welcomed by his supporters to the stage with "Putin Putin" chants. He also hailed the results as an indication of "trust" and "hope" in him.

Later, while interacting with reporters, Putin also warned the West that a direct conflict between Russia and the U.S.-led NATO military alliance would mean the planet was one step away from World War Three but said hardly anyone wanted such a scenario. "It is clear to everyone, that this will be one step away from a full-scale World War Three. I think hardly anyone is interested in this," Putin told reporters after winning the biggest-ever landslide in post-Soviet Russian history.

Meanwhile, the Western world condemned the elections, stating the polls were neither free nor fair. While Germany called it a "pseudo-election" under an authoritarian ruler reliant on censorship, repression and violence, UK Foreign Secretary Lord Cameron condemned "the illegal holding of elections on Ukrainian territory".

Ukraine's President Volodymyr Zelensky said, "The Russian dictator is simulating another election".

Earlier during the elections, heeding an opposition call to protest, hundreds of  Russians crowded outside polling stations at noon Sunday, on the last day of the elections. The associates of Alexei Navalny, the critic of Putin who died earlier this month in an Arctic prison, had urged people who were unhappy with Putin or the war in Ukraine to go to the polls at noon on Sunday. Many turned up and lines outside a number of polling stations both inside Russia and at its embassies around the world appeared to swell at that time.

Among those heeding the call was Yulia Navalnaya, Navalny's widow, who joined a long line in Berlin. She later told reporters that she cast her vote and wrote her late husband's name on the ballot.  Asked whether she had a message for Putin, Navalnaya replied: "Please stop asking for messages from me or from somebody for Mr. Putin. There could be no negotiations and nothing with Mr. Putin, because he's a killer, he's a gangster."

One woman in Moscow, who said her name was Yulia, told the AP that she was voting for the first time. "Even if my vote doesn't change anything, my conscience will be clear ... for the future that I want to see for our country," she said. Like others, she didn't give her full name because of security concerns.

Another Moscow voter, who also identified himself only by his first name, Vadim, said he hoped for change, but added that "unfortunately, it's unlikely".

More acts of rebellion were reported on Saturday too. Cases were filed against at least 15 people for pouring dye in ballot boxes, started fires or lobbing Molotov cocktails at polling stations. Ella Pamfilova, the head of Russia’s CEC, said 29 polling stations across 20 regions in Russia were targeted, including eight arson attempts.

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