Tariff

June 9, 2017

Complex negotiations to cause business headaches

Farm lobbies in the EU and the UK are already ringing alarm bells about upcoming talks, reports Geoff Kitney. Here is a single example of the complexity facing the UK as it…

China builds huge wartime military command centre in Beijing
China’s military is building a massive complex in western Beijing that US intelligence believes will serve as a wartime command centre far larger than the Pentagon, according to current and former American officials. Satellite images obtained by the FT that are being examined by US intelligence show a roughly 1,500-acre construction site 30km south-west of Beijing with deep holes that military experts assess will house large, hardened bunkers to protect Chinese military leaders during any conflict - including potentially a nuclear war. Several current and former US officials said the intelligence community was closely monitoring the site, which would be the world’s largest military command centre - and at least 10 times the size of the Pentagon. Based on an assessment of satellite images obtained by the FT, major construction started in mid-2024. Three people familiar with the situation said some intelligence analysts had dubbed the project “Beijing Military City”. Financial Times, January 30

Israel strikes 'multiple' Hezbollah targets in Lebanon's Beqaa Valley
Israel's military said on Friday it struck "multiple" Hezbollah targets in Lebanon's Beqaa Valley, two months into a fragile ceasefire with the Lebanese group. The strikes come a day after eight more hostages were freed from the Gaza Strip by Hamas-led militants in a sometimes chaotic process that briefly delayed Israel's release of 110 Palestinian prisoners. France 24, January 31

Diverging from the Fed, ECB cuts interest rates as growth stagnates
The European Central Bank cut interest rates on Thursday, for the fifth consecutive time, amid slowing growth in the region’s economy. Policymakers lowered the bank’s key rate a quarter point to 2.75 per cent as inflation remained relatively close to their 2 per cent target. The move comes a day after the US Federal Reserve held rates steady, as the economic outlook of the United States and Europe diverge. “The disinflation process is well on track,” Christine Lagarde, the president of the ECB, said, adding that she expected inflation to return to the target during the course of this year. Annual inflation in the eurozone was 2.4 per cent in December, slightly higher than the previous month as energy prices rose. New York Times, January 31

Apple beats income forecast but iPhone sales stall in China
Apple reported slower-than-expected iPhone sales in the first quarter as the Californian company was hit by a decline in demand for its products from China. Revenue from iPhone sales dipped by 0.8 per cent to $69.1 billion in the three months to the end of December, despite Apple unveiling artificial intelligence features. Overall revenue rose 3.9 per cent to $124.3 billion, in line with Wall Street expectations. Net income rose 7.1 per cent to $36.3 billion, ahead of consensus analyst forecasts of $35.6 billion. The Times, January 31

Nearly half of Danes see US as threat and 78% oppose Greenland sale, poll shows
Almost half of Danish people now consider the US to be a considerable threat to their country and the overwhelming majority oppose Greenland leaving to become part of the US, new polling has found. The research by YouGov, shared exclusively with the Guardian, comes after weeks of tension between Denmark, Greenland and the US over Donald Trump’s repeated assertions that he plans to take control of the autonomous territory, which is part of the Danish kingdom. The Arctic island, which has a population of 57,000 people, was formerly ruled as a colony by Denmark, which continues to control its foreign and security policy. Trump’s interest in Greenland comes at a time of growing momentum for its pre-existing independence movement. The poll of just over 1,000 people in Denmark, conducted between 15 and 22 January, found that 46% considered the US to be either “a very big threat” or “a fairly big threat” to Denmark. The Guardian, January 31

NHS to offer 'groundbreaking' sickle cell gene therapy
A gene-editing therapy for sickle cell disease, with a price tag of £1.65m, is to be offered to patients on the NHS in England. About 50 people a year with the inherited blood disorder are likely to receive it, experts say. Prof Bola Owolabi, of NHS England, called it a "monumental step forward", and said the one-off treatment Casgevy, also known as Exa-cel, "holds a very real prospect of a cure". A confidential agreement has been made with manufacturer Vertex on how much the NHS will pay. Campaigners have described the treatment as "groundbreaking" and its availability on the NHS as a "milestone". Sickle cell disease can be life-threatening and cause recurring intense pain, when blood vessels become blocked by misshapen red cells. About 15,000 people in England live with the condition, which mainly affects people of Black African and Black Caribbean heritage. BBC news, January 31

EU debates return to Russian gas as part of Ukraine peace deal
European officials are debating whether Russian pipeline gas sales to the EU should be restarted as part of a potential settlement to end the war against Ukraine, according to people familiar with discussions. Advocates of buying Russian gas argue it would bring down high energy prices in Europe, encourage Moscow to the negotiating table, and give both sides a reason to implement and maintain a ceasefire. But raising the idea of reopening flows of Russian gas into Europe, even in preliminary discussions, has already sparked a backlash among Ukraine’s closest allies in the EU. Three of the officials briefed on the talks said the idea had been endorsed by some German and Hungarian officials, with support from other capitals that saw it as a way to reduce European energy costs. “There is pressure from some big member states on energy prices and this is one way to bring those down, of course,” said one official. Financial Times, January 30

Far-right vote on asylum rocks German parliament
Germany's parliament descended into heckles and recriminations on Wednesday after a "firewall" against working with the far-right cracked. A non-binding motion calling for tougher border and asylum rules passed with support from the far-right Alternative for Germany (AfD). During the stormy session, politicians of various parties hurled criticism and blame at each other. Conservative CDU leader Friedrich Merz, who tabled the plans, defended his actions as "necessary". But Chancellor Olaf Scholz slammed the move as an "unforgivable mistake". Merz now plans to propose actual legislation on Friday - again with possible AfD backing - aimed at curbing immigration numbers and family reunion rights. But his proposed measures are highly unlikely to come into effect this side of February's snap election and - if they did - could clash with EU law. Referring to the AfD's support for the motion, the CDU leader told the Bundestag that a policy wasn't wrong just because the "wrong people back it". "How many more children have to become victims of such acts of violence before you also believe there is a threat to public safety and order?" he asked. The CDU leader - tipped to be Germany's next chancellor because of his party's leading position in the polls - has also insisted he has neither sought nor wants AfD support. BBC news, January 29

Trump reverses order to freeze federal funds
The White House yesterday walked back President Trump’s order to freeze trillions of dollars in federal grants and loans. A federal judge had on Tuesday temporarily blocked the order after it caused mass confusion across the country. The Trump administration had struggled to explain the funding freeze, a decision that interrupted the Medicaid system, which provides health care to millions of low-income Americans. Karoline Leavitt, the White House press secretary, wrote on social media:“This is NOT a rescission of the federal funding freeze”. She said the president’s executive orders on federal funding “remain in full force and effect, and will be rigorously implemented”. The decision by the Trump administration to pull the directive was a significant reversal. New York Times, January 30

Ex-rebel leader Ahmed al-Sharaa declared president of Syria
The leader of the rebel group that deposed Bashar al-Assad’s regime in Syria has been declared the country’s interim president. Ahmed al-Sharaa, who formerly led the Islamist rebel group Hayat Tahrir al-Sham, was declared president for an unspecified transitional period on Wednesday as the constitution was suspended. Sharaa, whose nom de guerre was Abu Mohammed al-Jolani, was also empowered to form a temporary legislative council for a transitional period, according to the announcements made during a meeting of armed groups in Damascus. The Times, January 30

Passenger plane collides midair with military helicopter in Washington DC
An American Airlines plane carrying 60 passengers and four crew collided with a military helicopter during landing at Ronald Reagan National Airport near Washington on Wednesday, causing both aircraft to crash into the Potomac River. A number of professional figure skaters, including former world champions Yevgenia Shishkova and Vadim Naumov, were on board. There was no confirmed information on casualties. France 24, January 30

People in England with severe dust mite allergy to be offered daily pill on NHS
Thousands of people in England who live with severe dust mite allergy are to be offered a first-of-its-kind daily pill to treat the condition on the NHS. In final draft guidance published on Thursday, the National Institute for Health and Care Excellence has given the green light to a drug shown to reduce symptoms and improve quality of life. The tablet - 12 SQ-HDM SLIT, also known as Acarizax and made by ALK-Abelló - works by increasing the body’s resistance to house dust mites and is of particular benefit to people whose symptoms do not respond enough to treatment such as steroid nasal sprays and antihistamines. By taking a regular fixed amount of house dust mite allergy extract every day, the body can become less sensitive to the effect of dust mites, cutting the symptoms of the allergic reaction over time. The Guardian, January 30

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Complex negotiations to cause business headaches