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First grain shipment since Russian invasion leaves Ukraine

By - Aug 02,2022 - Last updated at Aug 02,2022

This photo taken on Tuesday shows the Sierra Leone-flagged dry cargo ship Razoni, carrying a cargo of 26,000 tonnes of corn, departing from the Black Sea port of Odesa (AFP photo)

KYIV — The first shipment of Ukrainian grain since the Russian invasion in February left the port of Odessa on Monday morning under a landmark deal to lift Moscow's naval blockade in the Black Sea. 

United Nations chief Antonio Guterres, who brokered the plan along with Turkey, welcomed the announcement while Kyiv said it would bring "relief for the world" if Moscow held up its side of the accord.

The five-month halt of deliveries from war-torn Ukraine — one of the world's biggest grain exporters — has contributed to soaring food prices, hitting the world's poorest nations especially hard.

Officials said the Razoni cargo ship, registered in Sierra Leone, was making its way through a specially cleared corridor in the mine-infested waters of the Black Sea with 26,000 tonnes of maize on board. 

"It is expected in Istanbul on August 2. It will then continue its journey after it has been inspected in Istanbul," the Turkish foreign minister said in a statement.

Other convoys would follow, respecting the maritime corridor and the agreed formalities, the statement said.

Last month, Ukraine and Russia signed the breakthrough pact — the first significant accord involving the warring sides since the invasion — with Turkey and the United Nations aimed at getting millions of tonnes of trapped Ukrainian grain to world markets.

But Russian strikes on the Odessa Port the day after the deal was signed sparked outrage from Ukraine's allies and cast doubt over the accord.

Guterres, according to a UN statement, "hopes that this will be the first of many commercial ships moving in accordance with the initiative signed, and that this will bring much-needed stability and relief to global food security, especially in the most fragile humanitarian contexts".

 

Ships 'waiting to leave' 

 

"Ensuring that existing grain and foodstuffs can move to global markets is a humanitarian imperative," he added.

Guterres also said that the World Food Programme was planning to "purchase, load and ship an initial 30,000 metric tons of wheat out of Ukraine on a UN-chartered vessel", and there would be further details in the coming days.

Ukrainian Foreign Minister Dmytro Kuleba said on Monday marked a "day of relief for the world, especially for our friends in the Middle East, Asia, and Africa, as the first Ukrainian grain leaves Odessa after months of Russian blockade".

The Kremlin on Monday hailed it as a "very positive" development and a "good opportunity to test the effectiveness of the mechanisms that were agreed during talks in Istanbul". 

However, the long-awaited consignment  is just the beginning of a backlog and Ukraine Infrastructure Minister Oleksandr Kubrakov said 16 more ships were already "waiting for their turn" to leave Odessa. 

"These are the ships that were blocked from the beginning of Russia's full-scale invasion," he said, adding that new requests for ships to dock and load were coming continuously.

"We are planning to reach full efficiency of shipments of agricultural products during the following weeks," he added.

The departure of the Razoni comes one day after Ukrainian agricultural magnate Oleksiy Vadatursky, 74, and his wife Raisa were killed when a missile struck their house in the battle-scarred city of Mykolaiv in the south.

Vadatursky owned major grain exporter Nibulon and was previously decorated with the prestigious "Hero of Ukraine" award.

Mykolaiv — which has been attacked frequently — is the closest Ukrainian city to the southern front where Kyiv's forces are looking to launch a major counter-offensive to recapture territory lost after Russia's February invasion.

The governor said on Monday that three people had been injured in "massive" Russian shelling overnight that damaged homes and damaged humanitarian supplies.

Despite progress on the grain exports, there was also Russian shelling in the war-scarred east of the country, where Russian troops have been fighting deeper into the Donbas region.

The head of the industrial Donetsk region, Pavlo Kyrylenko said Russian shelling over the past 24 hours had killed three people.

The Razoni's departure came after Russian authorities in the Crimean Black Sea peninsula — seized by Moscow from Ukraine in 2014 — said a small explosive device from a commercial drone, likely launched nearby, hit the navy command in Sevastopol.

The local mayor blamed "Ukrainian nationalists" for the attack that forced the cancellation of festivities marking Russia's annual holiday celebrating the navy.

Ukraine's navy accused Russia of staging the attacks as a pretext to cancel the festivities.

Kingdom’s oil bill 68.1 per cent higher in five months

By - Aug 02,2022 - Last updated at Aug 02,2022

AMMAN — The Kingdom’s oil bill in the first five months of 2022 increased by 68.1 per cent compared with the figures of the same period of 2021, according to the Department of Statistics (DoS).

According to the DoS data, cited by the Jordan News Agency, Petra, the value of the oil bill in the January-May period went up to JD1.392 billion, from JD828 million during the same period of the previous year. This week, the government’s fuel pricing committee raised the prices of several fuel derivatives for August.

 

 

 

 

Trade deficit rises — DoS

By - Aug 02,2022 - Last updated at Aug 02,2022

AMMAN — The Kingdom's trade deficit during the first five months of this year rose by 31.7 per cent as it reached JD4.15 billion compared to JD3.15 billion at the end of the same period last year, the Department of Statistics (DoS) said on Monday.

According to a DoS report on foreign trade, cited by the Jordan News Agency, Petra, the volume of total exports in the January-May period of 2022 increased by 41.2 per cent with JD3.362 billion, compared with the same period of 2021, when it stood at JD2.381billion.

The value of national exports also increased in the first five months of the year by 43.4 per cent, or JD3.073 billion, compared with 2021’s corresponding period, when it reached JD2.143 billion, according to the DoS data.

The report also revealed that the value of re-exports stood at JD289 million in the first five months of 2022, at a 21.2 per cent increase, compared with the same period of 2021, when it totaled JD237 million. The country’s imports rose by 35.8 per cent to JD7.513 billion, compared with JD5.532 billion, the DoS figures showed.

The DoS said total exports’ coverage for imports in the first five months of the year stood at 43.1 per cent, compared with 44.8 per cent in the same period of 2021. In May, the Kingdom’s national exports reached JD589.8 million up from JD511.7 million, recording a15.3 per cent increase.

ASE receives majority of listed companies’ quarterly results

By - Aug 02,2022 - Last updated at Aug 02,2022

AMMAN — Ninety-six per cent of Amman Stock Exchange (ASE) listed companies have provided it with their quarterly reports for the period ending on June 30, in accordance with the regulations observed in this regard, according to ASE Chief Executive Officer Mazen Wathaifi.

This percentage reflects listed companies’ compliance with the laws and regulations and their compliance with the principles of transparency and disclosure, he noted.

The reports revealed that listed companies’ net profit after tax saw a "significant improvement", he said, adding that the results call for optimism. He urged all companies listed on the ASE to provide their interim reports within the designated period.

US tech titans stumble after pandemic boom

By - Aug 02,2022 - Last updated at Aug 02,2022

SAN FRANCISCO — Amazon and Apple were a relative bright spot in a week of otherwise lackluster earnings results for an industry reckoning with the end of heady pandemic-era growth.

A crowded period of quarterly financial releases from the world's biggest tech firms has been marred by misses and uncertainty — making it clear that the boom triggered by COVID-19 restrictions on getting about has tipped toward downturn.

As people are freed from pandemic lifestyles that had them relying on the internet for shopping, playing, working and learning, inflation is pushing up prices and COVID-19 is causing temporary shutdowns of factories in China relied on by tech firms.

Recession fears, a strong dollar, shrinking advertising budgets and inflation — headwinds are coming from every direction at the moment. 

"When you think about the number of challenges in the quarter, we feel really good about the growth that we put up," Apple Chief Executive Tim Cook said on an earnings call.

For Apple, product sales tallied $63.4 billion in a drop from the same period a year earlier, but the dip was more than made up for by services revenue that climbed to $19.6 billion, earnings figures showed.

Demand for iPads and Mac computers exceeded supply in the recently-ended quarter, the main cause being pandemic restrictions that caused "plant closures and plants running at less than full utilisation", Cook noted.

Apple was also hobbled by an ongoing shortage of computer chips, Cook said.

Meanwhile, US chip giant Intel reported disappointing earnings battered by its own missteps as well as economic conditions — a post-COVID drop in demand and "supply dislocations in China and other parts of the supply chain", executives said on an earnings call.

Amazon beat sales estimates to reach $121 billion in the quarter, and revenue climbed at its cloud-computing platform Amazon Web Services.

The retailer has made progress reducing ranks of employees that had been beefed up to handle online shopping that surged during the pandemic, executives said."Amazon managed pretty well through the second quarter despite tough macro conditions and added costs weighing on its bottom line," said analyst Andrew Lipsman.

Apple, Microsoft and Facebook-owner Meta have talked of the strong dollar eating into earnings, since when America's currency gains too much value, it can make products more expensive overseas or eat away at a beneficial exchange rate.

Meta pointed to the greenback's role in the firm's first year-on-year revenue decline since going public in 2012.

 

Not much good news 

 

In addition to the generally bumpy economic times, firms such as Netflix and Meta are fighting fierce competition from rivals — and both reported losing some ground.

Meta lost about two million monthly users between quarters, and Netflix shed nearly a million paying customers.

Yet, Netflix stock is up about a per cent in the past five days, with investors potentially hopeful after the firm projected a coming rebound in subscribers.

Markets seemed similarly assuaged despite Google parent Alphabet missing on revenue and profit.

The Silicon Valley giant's bad news was not unexpected, as the flow of online ad dollars that fuels the company's fortunes has slowed as inflation, war and other troubles vex the overall economy.

"Still, with its tremendous market share in search advertising, Google is relatively well positioned to weather the rough waters that lie ahead," said analyst Evelyn Mitchell.

As advertisers have tightened their belts, and Apple's privacy changes have bitten into firms' sales of costly but highly targeted ads, the damage was uneven.

Meta's income has taken a beating, and with a share price that has lost about half its value since February, it's clear that investors are still wary about the company's future.

"The good news, if we can call it that, is that its competitors in digital advertising are also experiencing a slowdown," said analyst Debra Aho Williamson.

Snapchat's parent firm, for example, reported that its loss in the recently ended quarter nearly tripled to $422 million, despite revenue increasing 13 per cent under "more challenging" conditions than expected.

"We are not satisfied with the results we are delivering, regardless of the current headwinds", California-based Snap said in a letter to investors last week.

IMF says debt plan should unblock $1.3 billion for Zambia

By - Aug 02,2022 - Last updated at Aug 02,2022

This file photo taken on January 26 shows the seal for the International Monetary Fund in Washington, DC (AFP photo)

WASHINGTON — The International Monetary Fund (IMF) said on Saturday that an agreement by Zambia's creditors to restructure the African country's crushing debt load has helped clear the way for the release of $1.3 billion in IMF-support funds.

Managing director Kristina Georgieva said she welcomed a statement from the Official Creditor Committee for Zambia, which has met virtually under join French-Chinese leadership with IMF and World Bank staff observing. 

Its support "for Zambia's envisaged IMF-supported programme, together with its commitment to negotiate debt restructuring terms, accordingly, provides the IMF with official financing assurances", Georgieva said. 

She said she strongly endorsed the committee's call "for private creditors and other official bilateral creditors to commit to comparable debt treatments".

The restructuring, the IMF said, should involve the same terms for creditor countries and private lenders — in exchange for Lusaka's commitment to undertake profound economic reform.

In 2020, as the COVID-19 pandemic battered Africa, Zambia became the first country on the continent to default on its foreign debt — estimated at $17.3 billion.

Last December, Zambia reached tentative agreement with IMF staff to provide $1.3 billion in support funds, but only if it took credible steps to reduce its debt load to levels deemed sustainable.

In a statement Saturday, Georgieva said that the IMF Executive Board could now "consider approval of a Fund-supported program for Zambia and unlock much-needed financing from Zambia's development partners".

The IMF chief added: "International partners are coming together to help countries resolve their debt issues, sending a strong signal to other countries looking to restore debt sustainability, achieve sustainable growth and poverty reduction."

Lusaka, for its part, welcomed the official progress.

Finance Minister Situmbeko Musokotwane said in a statement that Zambia was committed to implementing necessary reforms, to being transparent about its debt, and to dealing with its creditors in a fair and equitable way.

Since the election last year of President Hakainde Hichilema, the country has made progress in restoring relations with donors.

Cyprus tourism rebounds after two tough years of pandemic

By - Jul 31,2022 - Last updated at Jul 31,2022

Beachgoers relax at Nissi Beach in the Cypriot resort town of Ayia Napa, one of the Mediterranean island's top tourist destinations, on July 17 (AFP photo)

AYIA NAPA, Cyprus — Beside sparkling Mediterranean waters at the Cypriot resort town of Ayia Napa, the bars are bouncing with foam dance parties as tourist numbers rebound following two tough years of pandemic.

But one key nationality is effectively missing: Russian visitors, as the once lucrative market has been hit by European Union sanctions imposed after Moscow invaded Ukraine.

"This year, we expected 800,000 Russian tourists," said Haris Loizides, head of the Cyprus Hotel Association. 

The Russian market "was wiped out from one day to the next", said Christos Angelides, head of the Pancyprian Association of Hotel Managers. "Nobody was prepared for this huge change."

The key tourism sector, which had contributed 2.68 billion euros ($2.72 billion) in 2019, 15 per cent of gross domestic product, is still counting the cost of the disastrous years of COVID travel chaos.

In 2019, before the start of the COVID-19 pandemic, one fifth of the tourists were Russians — 782,000 out of 3.9 million — making it the holiday island's second largest market after Britain.

Last year, despite tough COVID travel restrictions, that share rose to more than 25 per cent, with arrivals from Russia totalling nearly 520,000 out of 1.93 million.

Operators had hoped this summer would see Russian numbers return to pre-pandemic levels.

 

Flight bans, banking sanctions 

 

Some 18,000 Russians are resident in Cyprus, many in the seaside town of Limassol — dubbed by some "Moscow on the Med".

But, with EU sanctions on Russia continuing and with no let-up in the bloodshed on Ukraine's battlefields, just 17,000 Russian tourists came to Cyprus between January and June. 

"Our hotel is doing well, but others — who had 100 per cent Russian clientele — are not," said Angelides, who is also manager of the Napa Mermaid Hotel.

Nicosia and Moscow have close political and cultural ties, but when Russia sent troops into Ukraine, the Cypriot parliament unanimously passed a resolution condemning the invasion.

Cyprus, the EU's most easterly member, backed the bloc's actions on Moscow, including a flight ban and sanctions barring some Russian banks from the SWIFT financial system.

The tourism ministry says fewer Russian visitors could mean some $600 million in potential lost earnings.

Overall, tourist arrivals in Cyprus are bouncing back, thanks to strong demand in other key markets following the lifting of coronavirus restrictions.

From January to June, Cyprus recorded 1.2 million visitors, nearly five times the level last year, and the white sand beaches at Ayia Napa are crowded with sunseekers and partygoers.

But that is still 25 per cent down on the same period of 2019, when 1.63 million tourists came to Cyprus.

"We have somewhat limited the damage, but it is impossible to replace this huge number of customers," Angelides added.

 

'Big gap' 

 

In the first half of this year, British tourists made up nearly two-fifths of visitors, followed by "Israelis", making up 7 per cent of visitors, then Poland, Germany and Greece.

"There have been many attempts by several sectors to encourage tourists from other markets, such as the German, Polish, Italian and French markets," said Charis Papacharalambous, spokesman of the Association of Cyprus Travel Agents.

But it was still "very difficult to fill the big gap" left by Russian tourists, he added, with industry experts fearing the impact may still worsen, since many Russians previously preferred to visit later in the year.

For Loizides, from the island's Hotel Association, the war in Ukraine has also provided another problem.

Surging global costs of fuel sparked by the conflict have driven electricity prices higher. 

With tourists turning air conditioning on full blast to counter the sweltering heat of Cyprus, hotels are struggling with "astronomical bills", Loizides said.

"The EU must remedy this situation and help companies, especially at a time when inflation is raging," he added.

Saudi Arabia’s GDP climbs nearly 12% in Q2

By - Jul 31,2022 - Last updated at Jul 31,2022

RIYADH — Saudi Arabia's year-on-year economic growth hit nearly 12 per cent for the second quarter, led by a surging oil sector, the government's statistics agency said on Sunday. 

The Middle East's largest economy has benefited from a spike in oil prices triggered by Russia's invasion of Ukraine, and has largely resisted appeals from Western countries to raise output in order to bring prices down. 

Growth in the second quarter was 11.8 per cent compared to the same period last year, according to initial "flash" estimates published by the General Authority for Statistics. 

"This dynamic growth was mainly due to the increasing in oil activities by 23.1 percent," the agency said. 

Non-oil economic activities grew by 5.4 per cent and government services grew by 2.2 per cent compared to the second quarter of 2021, it said. 

The Ukraine war and the resulting rise in crude prices has been a boon to oil-producing states like Saudi Arabia, the world's biggest crude exporter whose gross domestic product is expected to grow by 7.6 per cent in 2022, according to the International Monetary Fund. 

As the war got underway, Saudi Arabia and the United Arab Emirates stressed their commitment to the OPEC+ oil alliance, which Riyadh and Moscow lead, underscoring Riyadh's and Abu Dhabi's increasing independence from long-standing ally Washington. 

The OPEC+ group is to meet on Wednesday.

The main US contract, West Texas Intermediate crude, surged by more than 5 per cent on Friday to rise back above $100 per barrel.

Lebanese face long 'insulting' queues to buy bread

By - Jul 31,2022 - Last updated at Jul 31,2022

BEIRUT — In Lebanon, Khalil Mansour has to queue for hours every day just to buy bread for his family and some days he can't afford any.

In a country which once boasted the nickname "Switzerland of the Middle East" for its thriving banking sector before financial crisis hit in 2019, the chronic shortage of the staple of the Lebanese diet has been hard to take.

Lebanon defaulted on its national debt in 2020 and its currency has lost around 90 per cent of its black market value.

The World Bank has branded the financial crisis one of the worst since the 19th century while the United Nations now considers four out five Lebanese to be living under the poverty line.

Faced with demands from international creditors for painful reforms in return for the release of new aid, the embattled government has been forced to end subsidies on most essential goods — although not so far on wheat.

The price of subsidised bread has gone up, although by less than if there were no subsidy, but bakeries have started rationing the staple.

A bag of flat Arabic pitta-like bread now officially sells for 13,000 Lebanese pounds (43 US cents). On the black market it costs more than 30,000.

"Last week I went without bread for three days because I cannot afford to pay 30,000," said Mansour, 48.

For Mansour and most Lebanese, buying bread means standing for hours in long queues outside bakeries and sometimes, when their turn comes, the bakeries have run out of bread.

"Today I queued for three hours, yesterday two-and-a-half. What next?" Mansour said on Friday outside a Beirut bakery.

"I have to feed my family. What else can I do?" asked Mansour, who earns the equivalent of $50 a month working in a pastry shop.

 

'Wild West' 

 

Most bakeries limit the sale of bread to one or two bags per customer, and each bag contains six flatbreads.

Subsidised bread is often bought in large quantities and sold again on the black market by unscrupulous dealers.

"The queues have become worse over the past two weeks," said bakery owner Mohammed Mehdi. "We are facing huge shortages."

The 49-year-old said the bakery business had become like the "Wild West". "Some customers come armed with guns and knives," he complained.

Lebanese media carry frequent reports of fights breaking out at bakeries, and even shots fired by customers demanding more bread.

In Taalbaya, in eastern Lebanon, a customer stormed a bakery on Tuesday furious he could not buy more bread, one report said.

The client shoved an employee then ransacked the bakery, forcing the army to intervene, it added.

"What is happening is an insult... and it is even more difficult than the petrol shortage" that gripped Lebanon last year, Mehdi said.

Lebanon imports 80 per cent of its wheat from war-torn Ukraine, according to industry figures.

But the country's capacity to store wheat took a heavy blow when a deadly blast at Beirut Port in August 2020 severely damaged the country's main grain silos.

The government and bakeries have traded blame for the bread shortage.

Bakeries accuse cash-strapped authorities of failing to provide enough subsidised flour.

The economy ministry denies the claim and has accused bakeries of hoarding subsidised flour to use in unsubsidised products such as sweets.

Authorities also claim that the presence in Lebanon of more than one million refugees from war-torn Syria is partly to blame for Lebanon's economic collapse.

Some Lebanese have even gone as far as accusing Syrian refugees of buying subsidised bread to sell on the black market, fuelling resentment against the refugees and demands for them to go home.

There have been reports of some bakeries imposing separate queues for Lebanese and Syrians.

This has prompted the UN refugee agency to voice its concern.

"Lebanon is witnessing an increase in tensions and incitement between different communities, leading to localised violence in the streets, including against refugees," the UNHCR warned on Friday.

Uber courts drivers by letting them pick rides

By - Jul 31,2022 - Last updated at Jul 31,2022

Uber, whose logo is seen in this photo, on Friday said it will let drivers in the US see trip details before deciding whether to accept them (AFP file photo)

SAN FRANCISCO — Uber on Friday said it will let drivers in the United States see trip details before deciding whether to accept them — a new feature long sought by drivers.

A common lament by drivers at the app-summoned ride platform has been that they have to accept a request before learning where trips will take them, or how profitable they will be.

"Our new trip request screen makes it easier for drivers to decide if a trip is worth their time and effort by providing all the details — including exactly how much they'll earn and where they're going — upfront," chief executive Dara Khosrowshahi said in a blog post.

Revealing details only once a driver had accepted a trip was seen as a way to ensure riders would get picked up promptly, and not be snubbed because they were headed to locations deemed undesirable by drivers.

But Khosrowshahi said drivers have made it clear that they want more flexibility and choice.

Uber said the new feature, called Upfront Fares, was tested in several cities and was a success with drivers while resulting in shorter wait times for passengers.

The ride-sharing firm will also shift from sending drivers a single ride request at a time, to letting them pick from a list of detailed passenger requests in an area.

Uber is engaged in a long-term effort to prove that its business model is socially and economy viable.

The "gig economy" — which uses temporary independent contractors for short-term tasks — has grown rapidly since Uber's launch in 2009 and is promoted as a flexible way for people to earn money without the constraints of a full-time job.

But there has been growing backlash in countries around the world about the conditions and dangers gig workers face.

Uber driver ranks — which shrank during the COVID-19 pandemic — have not rebounded as quickly as demand for rides, and soaring fuel costs have made the gigs less attractive.

The firm in March announced a surcharge on both rides and Uber Eats meal deliveries that would go directly to drivers to help offset high fuel prices.

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