Emerging Markets 07 Jun 2017

Qatar paid $1 billion to Middle East groups in a hostage deal: Financial Times

Qatar paid $1 billion to Middle East groups in a hostage deal: Financial Times

London based Financial Times reported that Qatar has paid $1 billion to two terrorist groups that have bases in Iraq and Syria to release its royal family members. The deal according to the newspaper took place in April when 26 members of a Qatari falconry party in southern Iraq were made hostages. The ransom payment to was made to two blacklisted entities in the Middle East – an al-Qaeda affiliate and Iranian security officials. The big money paid to the Iranians and the al Qaeda militants has irked Saudi Arabia and other Arab countries who always had suspicion about the way in which Qatar played its politics, having connection with various militant groups.   Ranso

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Emerging Markets 06 Jun 2017

Saudi Alliance isolates Qatar over extremist and Iran ties

Saudi Alliance isolates Qatar over extremist and Iran ties

A short-term rift in the Arab world has surprised Middle East politics as Saudi Arabia and five other Muslim countries cut ties with Qatar over its reported tie with Arab world’s undeclared rival – Iran and extremist groups. Joint communique by Saudi Arabia, Egypt UAE and Bahrain accused Qatar supporting Islamists and Iran. Yemen and Maldives joined the Saudi effort later. The Arab state’s action comes two weeks after the US President Donald Trump’s visit to the region that hinted a strengthening relationship between the US and the Arab world; sidelining Iran. US President also urged gulf to drive out extreme forces while buying the Saudi argument that Ira

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US and Europe 03 Jun 2017 by Tojo Jose

Climate supporters reinforces against Trump

Climate supporters reinforces against Trump

The US President’s pull-out statement from Paris deal has created a resurgence of support for the deal from various parts of the world except from Russia. Unlikely partners on several issues - China and EU agreed a “green alliance” to take over leadership of the global climate agenda at their Brussels meeting. Donald Tusk, the European Council President, said EU and Beijing agreed to accelerate reduce harmful emissions. China is the world’s largest polluter followed by the US and the EU. Germany's Chancellor Angela Merkel who clashed with Mr Trump few weeks ago has made strong commitment towards Paris. “I say to everyone who values the future of

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US and Europe 02 Jun 2017 by Tojo Jose

Trumps pulls out US from Paris Climate Deal

Trumps pulls out US from Paris Climate Deal

President Trump, who has become a dissident of major global agreements has indicated US withdrawal from the Paris Climate deal. US is world’s leading carbon emitter and also benefitted big from the last phases of carbon led industrialisation. Making the dealation about the exit from the White House, Mr Trump described the Paris accord as an example of an international deal that hurt the US economy. Trump’s ‘America First’ campaign aims at protecting American workers and the climate deal is against it according to him. If the US goes ahead with the exit, the 2015 December signed Paris deal, which is aimed to restrict polluting industries for cutting emissio

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Emerging Markets 31 May 2017 by Tojo Jose

Kabul witnesses the biggest attack in the diplomatic district

Kabul witnesses the biggest attack in the diplomatic district

Indicating the rising dominance of various terrorist groups in the entire Afghanistan, capital Kabul has got one of the biggest bomb explosion in recent years, hitting the diplomatic areas. Around 80 persons are reported dead so far and several hundreds injured in the explosion that took place at Zanbaq square, in Kabul's 10th district, which is a highly secure area near to many government offices and foreign embassies. The bomb explosion took place 8.25 in the morning. Various embassies situated around the site are assessing the damage level. Surprisingly, the attackers carried explosives in a truck implying huge quantity and thus raising questions about the security establishme

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IMF and WTO 23 Apr 2017 by Tojo Jose

IMF leans towards protectionist tones

IMF leans towards protectionist tones

In a fresh development, on the just born trend of embracing protectionism, the IMF pledged to ‘fight global imbalances’, deviating from its conventional rhetoric on fighting protectionism. The global economic regulator’s slanting towards US sponsored economic nationalism came at the end of the International Monetary and Financial Committee (IMFC) meeting. The IMFC is a steering body of the Fund. The communique from the IMFC, released Saturday in Washington, said that officials “are working to strengthen the contribution of trade to our economies”. The term global imbalances indicate displeasure of China’s continuing high trade surplus that cre

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US and Europe 19 Apr 2017 by Tojo Jose

Trump issues executive order for revising the H1 B Visa regime

Trump issues executive order for revising the H1 B Visa regime

Going with the promise of ‘Buy American and Hire American’ election propaganda, President Trump issued an executive order asking for the revision of the H 1B Visa programme. The executive order that is largely expected has ordered federal agencies to look at tightening the H-1B visa programme used to bring high-skilled foreign workers to the US. The H-1B visas are intended for foreign nationals in occupations that generally require higher education, including science, engineering or computer programming. Supporters of Trump points out that the move will ask administrative wings to stop US jobs going to the foreign hands. Only highly skilled jobs can be filled by the f

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US and Europe 18 Apr 2017 by Tojo Jose

Mallya’s arrest and bail - extradition process get started

Mallya’s arrest and bail - extradition process get started

India’s Prime wilful defaulter – Vijay Mallya who ‘escaped’ to Britain, was arrested by Scotland Yard Police today and later was released on bail. The arrest signifies the ‘long British’ process of a possible extradition of the former Rajaya Sabha MP who owes nearly Rs 9000 crore to various Indian banks.   “Officers from the Metropolitan Police’s Extradition Unit this morning arrested a man on an extradition warrant. Viajay Mallya was arrested on behalf of the Indian authorities in relation to the accusations of fraud,” the PTI quoted the Scotland Yard. Mallya’s extradition and his participation in the legal process

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IMF and WTO 20 Mar 2017 by Tojo Jose

Amidst US pressure, G 20 meeting evades wordings against protectionism

Amidst US pressure, G 20 meeting evades wordings against protectionism

G 20 Finance Minister’s meeting concluded at the German spa town of Baden Baden is a break from the past. The meeting witnessed a clash between the resurged US economic nationalism and the rest of the G20 who are worried about the future of globalisation. There was an uneasy air as well as debate about the wording against protectionism. In the past, the G20 was the forum that passes resolution against trade barriers. Last year, the official summit communiqué adopted a tougher language to “resist all forms of protectionism”. But this year, the meeting declared that members were “working to strengthen the contribution of trade to our economies”.

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US and Europe 15 Mar 2017 by Tojo Jose

Fed raises interest rate to accommodate inflation

Fed raises interest rate to accommodate inflation

The US Fed raised its short-term policy rate or the Fed rate by 25 basis points, signaling the continuation of monetary tightening. An explanation accompanied by the rate hike defended the rate hike on the ground of rising inflation. This is only the third time since the financial crisis that the Fed is raising its key rate. The policy rate now rose to 1 per cent. From the view point of the EMEs, the rate hike may bring more volatility in financial markets in near future. Here, the firm stand of the Fed that rate hike decision will be done in three quarters instead of yearly exercise indicate more scope for market turbulence. In the long term, the frequent rate hike may drain aw

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