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UK to offer 10,500 post-Brexit visas to counter growing worker crisis

By - Sep 26,2021 - Last updated at Sep 26,2021

A security guard assists drivers queuing to fill up at a Tesco petrol station in Camberley, west of London, on Sunday (AFP photo)

LONDON — Britain will issue up to 10,500 temporary work visas to lorry drivers and poultry workers to ease chronic staff shortages, the government announced on Saturday, in a U-turn on post-Brexit immigration policy.

The short-term visas, to run from next month until late December, come as ministers grapple with a huge shortfall in drivers and some other key workers that has hit fuel supplies and additional industries.

A tanker drivers shortage has caused large queues at petrol stations in recent days, as people ignore government pleas not to panic-buy fuel after some garages closed due to the lack of deliveries. 

The decision to expand the critical worker visa scheme is a reversal by Prime Minister Boris Johnson, whose government had tightened post-Brexit immigration rules insisting that Britain's reliance on foreign labour must end.

It had resisted the move for months, despite an estimated shortage of around 100,000 heavy goods vehicle (HGV) drivers and warnings from various sectors that supplies would run short.

Transport Secretary Grant Shapps nevertheless insisted he was taking action "at the earliest opportunity" and that a broader package of measures announced would ensure pre-Christmas preparations "remain on track".

"The industries must also play their part with working conditions continuing to improve and the deserved salary increases continuing to be maintained in order for companies to retain new drivers," he added.

Millions of pounds for 'skills bootcamps' 

The new measures will focus on rapidly expanding the number of new domestic drivers, and include deploying ministry of defence driving examiners to help provide thousands of extra tests over the next 12 weeks.

Meanwhile, the education ministry and partner agencies will spend millions of pounds training 4,000 people to become HGV drivers, creating new so-called "skills bootcamps" to speed up the process.

Nearly 1 million letters will also be sent to all drivers who currently hold an HGV licence, asking any not currently driving to come back to work.

Johnson has been under increasing pressure to act, after the pandemic and Brexit combined to worsen the haulier shortage and other crises emerged, including escalating energy prices.

As well as threatening timely fuel supplies, the lack of lorry drivers has hit British factories, restaurants and supermarkets in recent weeks and months.

US burger chain McDonald's ran out of milkshakes and bottled drinks last month, fast-food giant KFC was forced to remove some items from its menu, while restaurant chain Nando's temporarily shut dozens of outlets due to a lack of chicken. 

Supermarkets are also feeling the heat, with frozen-food group Iceland and retail king Tesco warning of Christmas product shortages.

This week it was the turn of the fuel sector, with growing lines of cars clogging the approaches to petrol stations following some closures and panic-buying, particularly in southeast England.

Drivers appeared less than reassured on Saturday, as queues again formed for fuel.

Mike Davey, 56, had been waiting more than half an hour to fill up at a petrol station run by the supermarket chain Tesco in Kent, southeast of London.

"I just want to get some fuel to get to work. People are just like filling up jerry cans — it's ridiculous," he said. 

"Maybe they need to bring some army drivers in," Davey added.

The government has so far resisted calls to deploy soldiers to help deliver petrol directly.

As part of the measures announced, taxpayers will also help pay for some adult HGV license applications in the next academic year — which can cost thousands of pounds — through an adult education budget fund.

Uber unveils pension scheme for UK drivers

By - Sep 26,2021 - Last updated at Sep 26,2021

LONDON — US ride-hailing giant Uber on Friday launched a pension scheme for its UK drivers after a court ruled they were entitled to workers' rights.

"Uber has announced that it will start rolling out its pension plan to all eligible drivers in the UK," the Silicon Valley company said in a statement.

The announcement comes after Uber granted its UK drivers worker status in March, with associated rights also including a minimum wage and holiday pay.

That move followed a Supreme Court ruling that Uber's 70,000 drivers across Britain were entitled to the rights.

Under the pension scheme, Uber will contribute 3 per cent of a driver's earnings as long as drivers pay in a minimum of five per cent.

Uber has also invited rival app-based private hire and ride-hailing operators to help it establish a cross-industry scheme.

"We want to ensure that all eligible drivers can benefit no matter who they earn with," said Jamie Heywood, regional general manager of Northern and Eastern Europe at Uber.

"Today I am extending an invitation to work with operators such as Bolt, Addison Lee and Ola."

He added that this would allow "drivers to save for their futures whilst working across multiple platforms".

Sudan says it will talk with protesters over oil shutdown

By - Sep 26,2021 - Last updated at Sep 27,2021

Member of Sudan's sovereign council Shams Al Din Kabashi (2nd left) meets with protest representatives, following his arrival with a delegation to the city of Port Sudan, on Sunday (AFP photo)

KHARTOUM — Sudan's transitional government on Sunday sent a senior delegation to the Red Sea trade hub of Port Sudan to negotiate with demonstrators threatening the country's fuel supplies and revenue.

Information Minister Hamza Baloul confirmed the team's arrival while another senior official, who preferred to remain anonymous, said "the delegation won't come back [to the capital Khartoum] before solving the crisis".

A protest leader announced on September 20 that dozens of demonstrators, objecting to parts of a peace deal with rebel groups, had blocked the main container and oil export terminals in Port Sudan.

By Saturday, Sudan's Oil Minister Gadein Ali Obeid warned of "an extremely grave situation" with two pipelines blocked by the protesters.

One transports oil exports from South Sudan while the other handles Sudanese crude imports.

Sudan had reserves to last only for 10 days, Obeid's ministry said.

Neighbouring South Sudan produces around 162,000 barrels of oil per day, which are transported by pipeline to Port Sudan and then shipped to global markets.

The Khartoum government receives around $25 for every barrel of oil sold from the South, according to official figures. 

The delegation to Port Sudan, the country's main seaport, is headed by sovereign council member Shams Al Din Kabashi and other ministers.

Sudan formed the joint civilian-military sovereign ruling council months after the ouster of Omar Al Bashir, Sudan’s authoritarian ruler for 30 years, in April 2019.

It serves alongside a transitional government, headed by civilian Prime Minister Abdalla Hamdok, which last October signed a peace agreement with several rebel groups.

But the eastern protesters, from Sudan's Beja minority, say that the deal with rebels from the Darfur region, Blue Nile and South Kordofan states ignored their interests. 

Speaking in Khartoum on Sunday, sovereign council chief Abdel Fattah Al Burhan described the protesters' demands as "a political matter that must be dealt with politically".

While impeding access to Port Sudan, the protesters late last week also blocked the entrance to the city's airport and a bridge linking Kassala with the rest of the country.

IMF chief says she 'did not pressure anyone' while at World Bank

By - Sep 25,2021 - Last updated at Sep 25,2021

In this file photo taken on January 20, 2020, International Monetary Fund Managing Director Kristalina Georgieva attends a World economic outlook during the annual meeting of the World Economic Forum in Davos (AFP photo)

WASHINGTON — After an investigation found she used her senior role at the World Bank to manipulate data in favour of China, IMF Managing Director Kristalina Georgieva on Friday issued a statement again denying misconduct and rejecting the report.

"Let me be clear: the conclusions are wrong. I did not pressure anyone to alter any reports. There was absolutely no quid pro quo related to funding for the World Bank of any kind," Georgieva wrote in a statement. 

An independent investigation released last week found that during her time as World Bank CEO, Georgieva was among top officials who pressured staff into changing data to China's benefit in the 2018 edition of its closely watched Doing Business report.

The bank has since scrapped the report, while the US Treasury called the findings "serious".

In a statement released through US strategic communications firm SKDK rather than through the IMF, Georgieva, who took the top job at the Washington-based crisis lender in 2019, pledged changes to her management style.

"As much as I have strived to be open and inclusive, I was very sorry to learn that some staffers felt their concerns were not heard. Moving forward, I will make sure to be even more attentive to hearing staff views," she wrote.

The probe from an outside law firm found that Georgieva along with her associate Simeon Djankov, a former Bulgarian finance minister who created the report, and Jim Yong-kim, then-president of the bank, pressured staff to change the calculation of China's ranking to avoid angering Beijing.

The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital.

Nobel Laureate Paul Romer, who was chief economist for the World Bank during her time there and later resigned after raising separate concerns about the Doing Business rankings, said "the kind of intimidation this report describes was real" and said Georgieva arranged a "whitewash" of his criticisms.

Shanta Devarajan, a former acting chief economist of the World Bank, defended Georgieva, writing on Twitter that she specified that China's data should be verified without compromising the rankings' integrity.

"The changes to China's score were either correcting coding errors or judgment calls on questions where judgment was required," he said on Thursday.

"At no point did I feel I was being pressured," he said, adding the allegation Georgieva tampered with the data "is beyond credulity".

oil spikes on supply tensions

By - Sep 25,2021 - Last updated at Sep 25,2021

 

LONDON — Brent oil prices jumped on Friday close to a three-year peak, boosted by tight supplies, particularly in the United States, analysts said.

In late afternoon deals, European benchmark Brent North Sea crude for delivery in November struck $77.87 per barrel — reaching a high last seen on October 29, 2018.

"The price rise is being facilitated by limited supply coupled with robust demand, causing the oil market to tighten noticeably," said Commerzbank analyst Carsten Fritsch.

Brent prices later stood at $77.68, up 0.6 per cent from Thursday.

New York's West Texas Intermediate (WTI) crude for November rose 0.4 per cent to $73.60 a barrel.

Global supplies have been disrupted because US production remains hampered by ongoing fallout from Hurricane Ida in the Gulf of Mexico and Louisiana.

The United States is both the world's largest consumer and producer of crude oil.

"Underpinning the latest bout of price strength is a tightening supply backdrop," added PVM analyst Stephen Brennock. "Latest weekly data showed [US] domestic crude stocks fell to their lowest level in three years amid continued production outages in the Gulf of Mexico."He concluded: "Hurricane Ida may be long gone but it is still causing problems for the US."

Huawei executive freed in Canada after deal with US prosecutors

Resolution of the case removes a deep thorn in the relationship between Beijing, Washington and Ottawa

By - Sep 25,2021 - Last updated at Sep 25,2021

Huawei chief financial officer Meng Wanzhou (centre) talks to media at British Columbia Supreme Court after her extradition hearing ended in her favour, in Vancouver British Columbia, Canada on Friday (AFP photo)

SHENZHEN, China — Huawei executive Meng Wanzhou was headed home from Vancouver on Saturday as two Canadians released from prison in China reportedly arrived in Calgary, ending a bitter diplomatic row that has poisoned ties for three years.

Meng and the two Canadians — former diplomat Michael Kovrig and businessman Michael Spavor — were detained in a bitter spat critics have called "hostage diplomacy". 

Meng, the 49-year-old daughter of Ren Zhengfei, the billionaire founder of Chinese telecoms giant Huawei, was granted release in a Vancouver court hearing after three years of house arrest in Canada while fighting extradition to the United States.

This came hours after US prosecutors announced an agreement under which fraud charges against her are to be suspended and eventually dropped.

She then quickly boarded a flight to the city of Shenzhen, returning to China for the first time since her arrest at Vancouver's international airport at the behest of US authorities in December 2018.

Meanwhile, Canadian Prime Minister Justin Trudeau announced that the two detained Canadians had left Chinese airspace, adding they had gone through "an unbelievably difficult ordeal".

They arrived back in Calgary, western Canada on Saturday, and were shown on TV being greeted and hugged by Trudeau.

The "two Michaels" — as they have been dubbed by international media — were detained just days after Meng on what Ottawa has contended were "trumped up" espionage charges. 

In turn, Beijing called Meng's case "a purely political incident".

US Secretary of State Antony Blinken said "the US Government stands with the international community in welcoming the decision" to release the men.

Speaking to reporters before heading to China, Meng said: "Over the past three years, my life has been turned upside down. It was a disruptive time for me as a mother, wife and a company executive."

China's foreign ministry spokeswoman Hua Chunying said Saturday that the detention of Meng was an "incident of political persecution against a Chinese citizen".

"The so-called 'fraud' allegation against Meng Wanzhou is totally fabricated," she said, according to state broadcaster CCTV.

Huawei's 'princess' 

The resolution of the case removes a deep thorn in the relationship between Beijing, Washington and Ottawa, with China accusing the US of a political attack on one of its technology titans. 

Beijing also accused Ottawa of doing Washington's bidding by arresting and holding Meng, known inside Huawei as the "princess" of the company and its possible future leader.

Washington had accused her of wire fraud and deceiving HSBC bank, saying she tried to hide violations of US sanctions on Iran by Huawei affiliate Skycom.

But on Friday, US prosecutors settled for Meng agreeing to a statement of facts in the case.

In exchange, they agreed to defer the charges until 2022, and then drop them if Meng abides by the terms of the agreement.

In China, news of Meng's agreement was being scrubbed from the Internet.

State news agency Xinhua said she was returning to China "through unremitting efforts of the Chinese government", while the editor of state-run Global Times said she had been "finally released on a not guilty plea".

A red banner hanging at Shenzhen airport arrivals hall read "Welcome home Meng Wanzhou" and a crowd of about 200 supporters gathered waving Chinese flags and banners.

Some chanted 'Go Huawei!'

"I think China is going to... turn Meng Wanzhou's release into a big victory, a diplomatic victory," said Jean-Pierre Cabestan, professor of Political Science at Hong Kong Baptist University.

He said the government would build a propaganda campaign to "ignore the accusations against her and give the illusion that she was wrongly accused of crimes she never committed".

'Hostage diplomacy' 

The charges and Meng's arrest were enmeshed in a broader campaign against Huawei. Washington says the firm has close links to the Chinese government and military, accusations it denies.

The company on Saturday said it will "continue to defend itself against the allegations" in US courts.

Caught in between, Ottawa sought to rally allies, including Washington, to hike pressure on Beijing to release the two Canadians.

Both were put on trial in March this year. In August, Spavor was sentenced to 11 years in prison, while there had been no decision in Kovrig's case.

"All the while Beijing has insisted that this is not a case of hostage diplomacy — but now they have made it abundantly clear that it is a hostage exchange," said Lynette Ong, associate professor of political science at the University of Toronto.

"I think it will probably send the wrong lesson to China — that hostage diplomacy works."

Stocks rally with Fed closer to tapering emergency support

By - Sep 23,2021 - Last updated at Sep 23,2021

LONDON — Stock markets rallied on Thursday after the Federal Reserve moved closer to unwinding its huge emergency stimulus.

Equities have won back ground from last week's sharp falls, thanks also to easing concerns over troubled Chinese property giant Evergrande.

Stocks had tumbled over fears that the group could collapse, leading to possible contagion around the world.

Ratings agency Fitch on Thursday cut its growth forecast for China's economy this year, citing a slowdown in the country's colossal property sector.

But focus remained firmly on central banks, with the Bank of England keeping rates and stimulus measures in place at its own meeting Thursday.

It comes a day after the Fed said it expects to "soon" be ready to start tapering stimulus put in place at the start of the pandemic via bond purchases -- a key driver of the global economic and equity rebound.

London's stock market fell slightly, while the pound rose.

Across the Atlantic, Wall Street opened higher, with the Dow Jones Industrial Average and tech-heavy Nasdaq both gaining in early trades.

The dollar weakened on profit-taking.

"US stocks are extending yesterday's solid rebound from Monday's tumble, with the markets continuing to digest yesterday's Fed monetary policy decision," Charles Schwab analysts wrote.

Looking ahead, "markets are volatile amid the flared-up real estate debt concerns out of China, Fed tapering expectations... and the continuing stalemate among lawmakers on whether to raise the debt ceiling" in Washington, they added.

"The Delta variant (of coronavirus) and supply chain challenges continue to fester".

Fed chief Jerome Powell warned US lawmakers to lift the country's debt ceiling to avoid the government running out of cash and failing to service its debt obligations, which could lead to a default and spark a financial crisis.

In Asia, Hong Kong closed up more than one per cent, with Evergrande's share price surging by around one-quarter.

US jobless claims rise again amid Delta, hurricane

By - Sep 23,2021 - Last updated at Sep 23,2021

New applications for US unemployment benefits rose for the second straight week last week, according to government data released on Thursday (AFP file photo)

WASHINGTON — New applications for US unemployment benefits rose for the second straight week last week, according to government data on Thursday, as the economy grapples with the Delta variant of Covid-19 that has made businesses skittish again.

Initial claims for jobless aid rose just 16,000 in the week ended September 18, to 351,000, seasonally adjusted, the Labour Department reported, which was above analysts' expectations.

After spiking into the millions as the pandemic began in March 2020, the closely watched metric of labour market health has been on a downward trend for most of this year, but the recent uptick takes it back to its level of about a month ago.

Rather than a sign of the Delta variant's disruptions, Ian Shepherdson of Pantheon Macroeconomic said last week's increase was more likely a consequence of seasonal adjustments in the data and the impact of Hurricane Ida which caused a backlog at state unemployment offices.

"The trend in claims likely will continues to fall, slowly, but the seasonals likely will prevent new lows until November," he wrote in an analysis.

The report also showed another 15,162 new claims, without seasonal adjustment, submitted under the Pandemic Unemployment Assistance (PUA) programme, likely backlogged applications for the emergency aid for freelance workers, which expired two weeks ago.

Nearly 11.3 million people were receiving aid under all government programmes as of the week that ended on September 4.

That was the last week when the PUA and the Pandemic Emergency Unemployment Compensation programme for the long-term jobless were available. At the time, there were 4.9 million and 3.6 million people on the programmes, respectively.

Sony to take on Disney in India with media merger

By - Sep 22,2021 - Last updated at Sep 22,2021

MUMBAI — Sony's India unit will merge with ZEE Entertainment, the major local broadcaster said on Wednesday, as the battle for eyeballs with international streaming services heats up.

The merged entity — which analysts say is likely to rival market leader Star and Disney India in terms of viewership and channel offerings — could create the country's biggest entertainment network.

"We have unanimously provided an in-principle approval to the proposal [from Sony] and have advised the management to initiate the due diligence process," ZEE Entertainment said in a statement to investors.

Sony Pictures Networks India will hold a majority stake of 52.93 per cent in the merged entity following a proposed capital infusion of $1.58 billion, the statement added.

Shares in the subscription TV network jumped by 30 per cent on the announcement.

The new entity will be publicly listed on Indian stock exchanges.

India, home to 1.3 billion people, has attracted leading US streaming giants Netflix, Amazon's Prime Video and Disney's Hotstar, keen to tap into the growth in online audiences.

The entertainment market — valued at $24 billion by accountancy giant EY — is already one of the world's biggest, while smartphone adoption is forecast to expand further in coming years.

Sony and ZEE Entertainment currently operate 75 channels in English, Hindi and 10 Indian regional languages, which are broadcast in 173 countries.

"There is a big opportunity in terms of synergies as Sony is doing well in sports and mainstream GEC [general entertainment channels] whereas ZEE has a strong recall in the regional genre, which is less or absent for Sony," Elara Capital media analyst Karan Taurani said.

"Both have a very strong movie catalogue which can be used for OTT [over-the-top web platforms] and TV offerings."

Sony's sports offerings in India include cricket, UFC, WWE wrestling and UEFA football. It also recently showed the Tokyo Olympics.

The merger will also combine subscription-based streaming platforms SonyLIV and ZEE5.

ZEE5 is the biggest publisher of original digital content in India, having released more than 75 original shows in 2020-21 according to the company's annual report.

Google to spend $2b on New York City office

By - Sep 22,2021 - Last updated at Sep 22,2021

An exterior view of the St John’s Terminal building is seen in New York on Wednesday (AFP photo)

NEW YORK — Google announced on Tuesday plans to buy a New York City office building for $2.1 billion, confirming its push into America's largest city despite the pandemic teleworking trend. 

According to Real Capital Analytics, quoted by the Wall Street Journal, this is the largest real estate purchase in the United States for an office building since the beginning of global spread of COVID-19. 

Google already rents the premises in Manhattan, which are located on the site of a former railroad terminal in the Hudson Square neighbourhood. 

The Silicon Valley giant envisions a campus with a total surface area of 160,000 square metres by mid-2023 that will serve as its New York headquarters for sales and partnerships. 

The final site is to be spread over three buildings between Hudson Street and Washington Street, with construction of two of them already completed.

The company, whose headquarters are in Mountain View, California, has made other billion-dollar purchases in New York City, including the $2.4 billion it plunked down on the Chelsea Market building. 

"Google has been fortunate to call New York City home for more than 20 years, during which time we have grown to 12,000 employees," said the group's CFO Ruth Porat in a statement. 

New York Mayor Bill de Blasio welcomed the news saying, "Google is leading the way here in our economic comeback."

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