2015年3月29日 星期日

Latest News Clips 2015.03.30

               
  1. Yemen crisis: Who is fighting whom? 
BBC  26 March 2015 


Yemen unrest 

Yemen is in the grip of its most severe crisis in years, as competing forces fight for control of the country. 
Impoverished but strategically important, the tussle for power in Yemen has serious implications for the region and the security of the West. 
Here are some key questions explained. 
Who is fighting whom? 
In recent months Yemen has descended into conflicts between several different groups, pushing the country "to the edge of civil war", according to the UN's special adviser. 
The main fight is between forces loyal to the beleaguered President, Abdrabbuh Mansour Hadi, and those allied to Zaidi Shia rebels known as Houthis, who forced Mr Hadi to flee the capital Sanaa in February. 

Yemen's security forces have split loyalties, with some units backing Mr Hadi, and others the Houthis and Mr Hadi's predecessor Ali Abdullah Saleh, who has remained politically influential. Mr Hadi is also supported in the predominantly Sunni south of the country by militia known as Popular Resistance Committees and local tribesmen. 
Both President Hadi and the Houthis are opposed by al-Qaeda in the Arabian Peninsula (AQAP), which has staged numerous deadly attacks from its strongholds in the south and south-east. 
The picture is further complicated by the emergence in late 2014 of a Yemen affiliate of the jihadist group Islamic State, which seeks to eclipse AQAP and claims it carried out a series of suicide bombings in Sanaa in March 2015. 
After rebel forces closed in on the president's southern stronghold of Aden in late March, a coalition led by Saudi Arabia responded to a request by Mr Hadi to intervene and launched air strikes on Houthi targets. The coalition comprises five Gulf Arab states and Jordan, Egypt, Morocco, Pakistan and Sudan. 

Why does it matter for the rest of the world? 

What happens in Yemen can greatly exacerbate regional tensions. It also worries the West because of the threat of attacks emanating from the country as it becomes more unstable. 
Western intelligence agencies consider AQAP the most dangerous branch of al-Qaeda because of its technical expertise and global reach. The US has been carrying out operations, including drone strikes, against AQAP in Yemen with President Hadi's co-operation, but the Houthis' advance has meant the US campaign has been scaled back. 
The conflict between the Houthis and the elected government is also seen as part of a regional power struggle between Shia-ruled Iran and Sunni-ruled Saudi Arabia, which shares a long border with Yemen. 

  1. A Window on China’s New Normal 
  MAR 27, 2015 
 
CAMBRIDGE – Every year at this time, China’s government organizes a major conference – sponsored by the Development Research Center, the official think tank of the State Council – that brings together senior Chinese officials, CEOs from major Chinese and Western firms, and a small group of international officials and academics. The China Development Forum (CDF) occurs just after the annual National People’s Congress. 

At the forum, speakers, including the finance minister and the head of the central bank, summarize the Chinese leadership’s current thinking. Officials then listen to comments and suggestions from Western business and academic participants, including a question and answer session with Premier Li Keqiang. 

Although I have been attending the CDF’s meetings for more than a decade, I found this year’s conference substantially different from any in the past. The key difference was the official Chinese recognition that annual real GDP growth has declined permanently from the past three decades’ average rate of nearly 10%. The official estimate is that real GDP grew 7.4% in 2014, and that the rate will probably slow further, to 7%, this year. The Development Research Center presented detailed estimates showing that the growth rate will continue to decline, reaching about 6% by the end of the decade. 

Virtually every Chinese official referred to this slowdown as their country’s “new normal.” They all seemed reconciled to slower growth, which was initially surprising, because officials previously argued that China needed rapid growth to maintain employment and avoid political unrest. They now appear to understand that the declining growth rate will not lead to unemployment, because the slowdown reflects China’s structural shift from export-oriented heavy industrial production to increased production of consumer services, which require more employment to create the same amount of value. 

Stronger growth nevertheless remains necessary, because China is still a relatively low-income country with substantial poverty. Although China’s total real GDP is second only to that of the United States (and might be larger when measured in terms of purchasing power), its per capita income is only about $7,000, or roughly 15% of the US level. And consumption remains low – only about 50% of GDP when government spending is included, and just 35% when limited to household consumer spending. So China has a long way to go to reach its leaders’ goal of achieving a “modern prosperous society.” 

The Chinese see that the “new normal” requires a shift in their growth strategy from factor-driven growth to innovation-driven growth. But it is not clear how that increase in innovation will be achieved. While officials stress reliance on the market, China does not have the venture capital and “angel financing” that facilitates innovation in the US. The authorities may hope that their plan to insure bank deposits will shift deposits from the three largest banks to many smaller banks around the country, facilitating local startups’ access to financing. 

Many other economic problems loom. Officials acknowledged at the CDF that the biggest risks lie in the financial sector, particularly owing to local governments’ very large liabilities. In the past, the government dealt with the problems that these liabilities caused for the banking system by injecting funds into the banks. 

Environmental problems are another powerful drag on China’s current standard of living. But they also represent a potential way to increase GDP should overall demand decline significantly. China acknowledges that high levels of air and water pollution create discomfort and harm the public’s health. Government spending on remedying environmental damage could absorb substantial funds if demand-side weakness exacerbates the expected supply-side slowdown. 

Moreover, the very weak performance of state-owned enterprises, which continue to play a large role in heavy industry and in some service sectors, represents a powerful brake on growth. Although official policy aims to reduce these firms’ role so that “the market can play the decisive role in resource allocation,” shrinking these firms has proved to be difficult, owing to their strong political backing within the Chinese Communist Party. 

  1. Co-Pilot in Germanwings Crash Hid Mental Illness From Employer, Authorities Say 
The New York Times  MARCH 27, 2015 
    
DÜSSELDORF, Germany — Andreas Lubitz, the pilot at the controls of the Germanwings jetliner that crashed into the French Alps on Tuesday, had a mental illness but kept the diagnosis hidden from his employer, the authorities said Friday. 
A psychiatric diagnosis might explain why Mr. Lubitz, a 27-year-old German, did not disclose his full medical record to Germanwings and its parent company, Lufthansa. Lufthansa company policy requires notification of conditions that could affect flying or a pilot’s license. 

Prosecutors said Friday that among the items found at Mr. Lubitz’s home were several doctors’ notes stating that he was too ill to work, including on the day of the crash; one of the notes had been torn up. These documents “support the preliminary assessment that the deceased hid his illness from his employer and colleagues,” the prosecutors said in a statement. 

But there remained considerable confusion about the precise nature and severity of his psychiatric condition. A German hospital said it had evaluated Mr. Lubitz twice in the past two months but added that he had not been there for assessment or treatment of depression. 

The crash killed Mr. Lubitz and the other 149 people on board the Airbus A320 jetliner bound from Barcelona, Spain, to Düsseldorf, Germany, on Tuesday morning. 
Airlines and their regulatory agencies have longstanding processes to screen for pilots whose mental illness could affect their flying ability or even jeopardize the lives of their passengers, crew and people on the ground. But the gatekeeping system in the United States and abroad relies heavily on pilots’ volunteering information about their illnesses. 

The German investigators said they had not found a suicide note or “any indication of a political or religious” nature among the documents from Mr. Lubitz’s apartment in Düsseldorf. They also played down the possibility that his actions were the result of a romantic breakup, saying he was in a long-term relationship. 
“However, documents were secured containing medical information that indicates an illness and corresponding treatment by doctors,” Ralf Herrenbrück, a spokesman for prosecutors in Düsseldorf, said in a statement. 

The Federal Aviation Office of Germany said Friday that a medical certificate issued to Mr. Lubitz that allowed him to fly noted that he had a medical condition, although it did not specify whether it was related to a psychological issue. A history of mental health issues like depression does not preclude being cleared to fly. 
The absentee notes found in Mr. Lubitz’s apartment were from different doctors, suggesting that he sought a second opinion for a recent diagnosis, prosecutors said. 

2015年3月22日 星期日

Latest News Clips 2015.03.23

3/21/3/21/2015                        

  1. Win in Israel Sets Netanyahu on Path to Rebuild and Redefine Government 
New York Times   MARCH 18, 2015 

         



JERUSALEM — Israelis emboldened Prime Minister Benjamin Netanyahu with a clear mandate in balloting on Tuesday, paving the way for him to lead a right-leaning and religious coalition that could be far easier to control, since his own party holds many more seats now. 
But despite the resounding victory after Mr. Netanyahu’s hard-linestatementsin the campaign’s final days, the direction he will take in what would be his fourth term is as much a mystery as the man himself. While the new coalition will almost certainly be more purely conservative, it is also more narrowly tailored, potentially freeing its leader of the constraints that often guided his last government. 
As he puts together a government in the next few weeks, Mr. Netanyahu may no longer have the center-left factions that he relied on to ease Israel’s relations with the world and that pushed him back into negotiations with the Palestinians in 2013. But he also has gotten rid of extremists in his own party, Likud, and shrunk the Jewish Home party, which he often placated over the last two years by expanding settlements in the occupied West Bank. 

Analysts said Mr. Netanyahu would undoubtedly continue his strong opposition to the Iranian nuclear program, but might well limit settlement construction and make other gestures to soothe the Palestinian situation, while also seeking to address calls to lower the cost of living. Crucial players in the coming coalition are a new center-right party and two ultra-Orthodox factions, whose kitchen-table concerns are sure to shift the overall agenda. 
Allies, antagonists and average Israelis have long struggled to understand just what Mr. Netanyahu, a deft political strategist, actually believes in, beyond his passionate commitment to Israel’s security and to the Jewish people. After a campaign widely seen as a referendum on his rule, the result may let Netanyahu be Netanyahu, which his former national security adviser, Uzi Arad, said meant more “tough pragmatism” than “stiff defiance.” 

  1. Fed Creeps Closer to Higher Rate That May Not Arrive for Months 
New York Times   MARCH 18, 2015 

  

Janet L. Yellen, chairwoman of the Federal Reserve, said that while it was unlikely that the Fed would raise a key interest rate at its next meeting in April, there might be increases later. 
 
WASHINGTON — The Federal Reserve on Wednesday moved to the verge of raising interest rates for the first time since the economy fell into recession more than seven years ago, even as officials suggested that the Fed might not pull the trigger until well into the second half of the year. 
In a statement released after a two-day meeting of its policy-making committee, the Fed said that it would consider raising its benchmark rate as early as June, and it removed from the statement a promise that it would be “patient.” 
Yet the Fed tempered that message on Wednesday, including the release of economic forecasts by its senior officials that showed they now think the unemployment rate can still fall significantly without setting off higher inflation. That conveyed an impression that Fed officials may feel less urgency about raising interest rates so soon. 
“Just because we removed the word ‘patient’ from the statement doesn’t mean we’re going to be impatient,” Janet L. Yellen, the Fed’s chairwoman, said at a news conference after the statement’s release. Ms. Yellen said the Fed was not declaring an intention to raise rates in June, “although we can’t rule that out.” 
Her remarks suggested that borrowers have a few more months to take advantage of exceptionally low interest rates on mortgages and car loans, while savers face a few more months of exceptionally meager returns on their low-risk investments. And even after the Fed raises its crucial interest rate, borrowing costs may well remain comparatively low well into the future. 
Investors celebrated like the recipients of a last-minute reprieve. 

The Asian Infrastructure Investment Bank 
  1. The infrastructure gap 
Development finance helps China win friends and influence American allies 
The Economist    Mar 21st 2015 | SINGAPORE 


STRATEGIC rivalry between America and China takes many forms. Rarely does a clear winner emerge. An exception, however, is the tussle over China’s efforts to found a new Asian Infrastructure Investment Bank (AIIB). China has won, gaining the support of American allies not just in Asia but in Europe, and leaving America looking churlish and ineffectual. 

This month first Britain and then France, Germany and Italy said they hoped to join the bank as founding shareholders. China said other European countries such as Luxembourg and Switzerland are thinking of joining the queue. Yet America has been sceptical about the AIIB. Its officials claim they have not “lobbied against” it, but merely stressed how important it is that it abide by international standards of transparency, creditworthiness, environmental sustainability, and so on. 
America’s reservations were certainly taken by officials in the region, however, as admonitions to steer clear of the AIIB. They were enough, at first, to discourage some of its closest Asian allies from joining the initial 21 founding members. Australia, Japan and South Korea all stayed out—though other staunch American friends such as New Zealand, Singapore and Thailand signed up. The joiners argue that China was going to launch the AIIB anyway; better to be on the inside influencing its governance. The Europeans’ accession is likely to encourage changes of heart among the refuseniks. Australia has already indicated it is reconsidering; South Korea seems almost certain to join. 

The AIIB is but one of a number of new institutions launched by China, apparently in frustration at the failure of the existing international order to accommodate its astonishing rise. Efforts to reform the International Monetary Fund are stalled in the American Congress. America retains its traditional grip on the management of the World Bank. The Manila-based Asian Development Bank (ADB) is always directed by a Japanese official. Partly for that reason—that the AIIB would amount to a diminution of Japanese influence in favour of China at a time when their relations are fraught—Japan is sniffy about the new bank. Its cabinet secretary, Yoshihide Suga, this week repeated that Japan will “carefully study” the AIIB’s governance standards. 

  1. How Far Will the Euro Fall? 
MAR 17, 2015 



LONDON – The US dollar is hitting new 12-year highs almost daily, while the euro seems to be plunging inexorably to below dollar parity. Currency movements are often described as the most unpredictable of all financial variables; but recent events in foreign-exchange markets seem, for once, to have a fairly obvious explanation – one that almost all economists and policymakers accept and endorse. 

French President François Hollande, for one, has ecstatically welcomed the plunging euro: “It makes things nice and clear: one euro equals a dollar," he told an audience of industrialists. But it is when things seem “nice and clear" that investors should question conventional wisdom. A strong dollar and a weak euro is certainly the most popular bet of 2015. So is there a chance that the exchange-rate trend may already be overshooting? 

In one sense, the conventional explanation of the recent euro-dollar movement is surely right. The main driving force clearly has been monetary divergence, with the Federal Reserve tightening policy and the European Central Bank maintaining rock-bottom interest rates and launching quantitative easing. But how much of this divergence is already priced in? The answer depends on how many people either are unaware of the interest-rate spread or do not believe that it will widen very far. 

Last year, many investors questioned the ECB's ability to launch a bond-buying program in the face of German opposition, and many others doubted the Fed's willingness to tighten monetary policy, because doing so could choke off the US economic recovery. That is why the euro was still worth almost $1.40 a year ago – and why I and others expected the euro to fall a long way against the dollar. 

But the scope for dollar-bullish or euro-bearish surprises is much narrower today. Does anyone still believe that the US economy is on the brink of recession? Or that the Bundesbank has the power to overrule ECB President Mario Draghi's policy decisions? 

With so much of the monetary divergence now discounted, perhaps we should focus more attention on the other factors that could influence currency movements in the months ahead. 

On the side of a stronger dollar and weaker euro, there seem to be three possibilities. One is that the Fed could raise interest rates substantially faster than expected. Another is that investors and corporate treasurers could become increasingly confident and aggressive in borrowing euros to convert into dollars and take advantage of higher US rates. Finally, Asian and Middle Eastern central banks or sovereign wealth funds could take advantage of the ECB's bond-purchase program to sell increasing proportions of their German, French, or Italian debt and reinvest the proceeds in higher-yielding US Treasury securities.