So Far Trump And Obama Don’t Act Much Different When It Comes To Iran

(THIS ARTICLE IS COURTESY OF CNN)

New York (CNN) As a candidate, President Donald Trump pulled no punches in his criticism of the Obama administration’s multilateral pact with Tehran to curb the Iranian nuclear program. The deal stank, he said then.

Now his secretary of state is, for the time being, certifying it.
“I’ve been doing deals for a long time, I’ve been making lots of wonderful deals — great deals — that’s what I do. Never, ever, ever in my life have I seen any transaction so incompetently negotiated as our deal with Iran. And I mean, never.”
It was September 9, 2015, a few months into his presidential campaign, and Trump was in Washington, where he was addressing a rally against the Obama administration’s historic nuclear pact with Tehran. Trump by then had established himself as a Republican primary player. Texas Sen. Ted Cruz welcomed his rival to the event, reasoning that where Trump went, the cameras followed.

Trump: "I've been doing deals for a long time"

Trump: “I’ve been doing deals for a long time” 05:06
That much has remained the same. But when it comes to the Iran deal, Trump has, for the moment, changed. Blaring skepticism has given way to (yet another) pragmatic adjustment. Secretary of State Rex Tillerson on Tuesday delivered a letter to Congress confirming that Iran has kept up its end of the controversial bargain.
The letter pads what will be an unpopular conclusion among GOP hawks with word that Trump has ordered a review of plans to lift sanctions in accordance with the deal, citing the Iranian government’s ties to assorted terror groups. To follow through on the implicit threat would, ironically, put the US in defiance of the terms of the agreement.

Explore Trump’s progress on key campaign promises

Which is to say, it’s not happening. At least not yet. By fate or fancy, the Trump administration has effectively taken on the foreign policy of its predecessor. The missile attack on Syria — a one-off tactical jab — was initially celebrated (or denounced) as a departure from Obama’s caution, but the reality is that American strategic positions in multiple foreign theaters remain essentially indistinguishable from a year ago.
Democrats will, of course, use this as another example of Trump betraying his campaign promises. That’s fair enough. Candidates make outlandish claims at their own political peril. But the reality here is that reality, more than any president, rules. Who saw it coming? Former Associated Press correspondent Terry Anderson, kidnapped by Hezbollah, an Iranian proxy, in 1985 and held for nearly seven years, offered a pretty good preview.
“The Iranians aren’t at Trump’s beck and call, and they won’t be if he’s elected president,” Anderson told The New Yorker after the 2015 speech. “It’s so idiotic that I don’t know how to address it. One of the first things a president learns when he comes into office is that he can’t simply order things and make them happen — in our government, let alone anyone else’s.”
If he hasn’t yet learned that, then Trump has surely experienced it. Though largely true to his campaign pledges as a matter of effort, he has been repeatedly turned back by the same forces he vowed to tame. Obamacare remains, thanks to in the intransigence of his own party. NATO? “Obsolete” no more. Tax reform? That could be the most difficult feat of all.
President Trump’s reversals
before becoming president
after becoming president

NATO
March 27, 2016
“I think NATO’s obsolete. NATO was done at a time you had the Soviet Union, which was obviously larger, much larger than Russia is today. I’m not saying Russia’s not a threat. But we have other threats.”
April 12, 2017
“I complained about that a long time ago, and they made a change. Now they do fight terrorism. I said it was obsolete. It’s no longer obsolete.”

China
June 28, 2016
“I’m going to instruct my treasury secretary to label China a currency manipulator.”

Attacking the Syrian government
August 29, 2013
Tweet: “What will we get for bombing Syria besides more debt and a possible long term conflict? Obama needs Congressional approval.”
April 6, 2017
“Tonight, I ordered a targeted military strike on the airfield in Syria from where the chemical attack was launched…” Trump did not ask for nor receive congressional approval to launch his attack.

Federal Reserve Chairwoman Janet Yellen
September 12, 2016
“She’s keeping (rates) artificially low to get Obama retired … I think she is very political and to a certain extent, I think she should be ashamed of herself because it is not supposed to be that way.”
April 12, 2017
I like her, I respect her … It’s very early.”

Executive orders
July 10, 2012
Tweet: “Why is @BarackObama constantly issuing executive orders that are major power grabs of authority?”
March 31, 2017
Trump has issued 23 executive orders, including his controversial travel ban, since taking office on January 20.

The unemployment rate
March 12, 2016
The numbers are phony. These are all phony numbers. Numbers given to politicians to look good. These are phony numbers.”
March 10, 2017
White House press secretary Sean Spicer: “I talked to the President prior to this and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’ “

Presidential golf
October 13, 2014
Tweet: “Can you believe that,with all of the problems and difficulties facing the U.S., President Obama spent the day playing golf.Worse than Carter”
February 11, 2017
Trump has visited his golf courses 16 times since taking office. In early February he tweeted: “Played golf today with Prime Minister Abe of Japan and @TheBig_Easy, Ernie Els, and had a great time. Japan is very well represented!”

The Export-Import Bank
August 4, 2015
“I don’t like it because I don’t think it’s necessary … It’s sort of a featherbedding for politicians and others, and a few companies. And these are companies that can do very well without it. So I don’t like it. I think it’s a lot of excess baggage. I think it’s unnecessary. And when you think about free enterprise it’s really not free enterprise. I’d be against it.”
April 12, 2017
“It turns out that, first of all, lots of small companies are really helped, the vendor companies. But also, maybe more important, other countries give [assistance]. When other countries give it we lose a tremendous amount of business.”

Federal hiring freeze
October 23, 2016
“On the first day of my term of office, my administration will immediately pursue … a hiring freeze on all federal employees to reduce the federal workforce through attrition (exempting military, public safety, and public health).”
April 12, 2017
Trump signed a presidential memorandum freezing federal hiring days after taking office. Then, on his 82nd day in office, budget director Mick Mulvaney announced this: “What we are doing tomorrow is replacing the across-the-board hiring freeze that we put into place on day one in office and replacing it with a smarter plan, a more strategic plan, a more surgical plan.”
Even China, an ever-present campaign trail piñata, has been spared in deference to existential concerns on the Korean Peninsula. “They’re not currency manipulators,” Trump told the Wall Street Journal a week ago, after more than a year of guarantees that he would order his treasury secretary to label the country a currency manipulator.
His explanation was simple. Pyongyang and its nukes were the priority.
“What, am I going to start trade war with China in the middle of (Chinese President Xi Jinping) working on a bigger problem with North Korea?” Trump said during an interview with Fox News. “I’m dealing with China with great respect. I have great respect for him. We’ll see what he can do. Maybe he won’t be able to help. That’s possible. I think he is trying. Maybe he won’t be able to help. That’s a whole different story.”
And so it goes for the Iran deal. Is Trump going to begin unraveling the dense, multinational accord in the middle of a ramped-up war on ISIS and escalating tensions with Syria (plus Russia and Iran by proxy)?
Not yet. His tactical unpredictability, for now, only stretches so far. Through nearly 100 days in office, Trump’s foreign policy has a familiar ring.

World leaders for Silk Road talks

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

World leaders for Silk Road talks

The Belt and Road Forum for International Cooperation will be held from May 14 to 15 in Beijing and President Xi Jinping will attend the opening ceremony and host the round table summit of the leaders, Foreign Minister Wang Yi said yesterday.

Xi has championed the “One Belt, One Road” initiative to build a new Silk Road linking Asia, Africa and Europe, a landmark program to invest billions of dollars in infrastructure projects.

China has dedicated US$40 billion to a Silk Road Fund and the idea was the driving force behind the establishment of the US$50 billion Asian Infrastructure Investment Bank.

Among those attending will be Russian President Vladimir Putin, Pakistani Prime Minister Nawaz Sharif and Cambodian Prime Minister Hun Sen.

Myanmar’s Aung San Suu Kyi, Kazakh President Nursultan Nazarbayev, Malaysian Prime Minister Najib Razak and Indonesian President Joko Widodo will also be attending the forum.

British finance minister Philip Hammond will come as Prime Minister Theresa May’s representative, while Germany and France will send high-level representatives.

Wang confirmed Philippine President Rodrigo Duterte as one of the leaders coming, along with the Spanish, Greek, Hungarian, Serb and Polish prime ministers and Swiss and Czech presidents.

“This is an economic cooperation forum, an international cooperation platform that everyone is paying attention to, supports and hopes to participate in,” Wang said.

“One Belt, One Road is to date the most important public good China has given to the world, first proposed by China but for all countries to enjoy,” said.

“The culture and historical genes of One Belt, One Road come from the old Silk Road, so it takes Eurasia as its main region,” he said, adding that representatives of 110 countries would attend the forum.

A section of the New Silk Road is in Pakistan, where some projects run through the disputed Kashmir region.

Wang dismissed concerns, saying the Pakistan project had no direct connection to the dispute and India was welcome to participate in the New Silk Road.

“Indian friends have said to us that One Belt, One Road is a very good suggestion,” he said.

During the forum, China is expected to sign cooperative documents with nearly 20 countries and more than 20 international organizations, Wang told reporters.

China will work with countries along the route on action plans concerning infrastructure, energy and resources, production capacity, trade and investment, which will help to turn the grand blueprint into a clear roadmap, he said.

Another task of the forum will be to push forward delivery of cooperative projects, Wang said.

During the forum, parties will identify major cooperative projects, set up working groups and establish an investment cooperation center.

China will also work with all parties on a set of measures that will include improved financial cooperation, a cooperation platform for science, technology and environmental protection, and enhanced exchanges and training of talent.

Participants will sign financing agreements to support their cooperative projects, Wang said.

China will use the forum to build a more open and efficient international cooperation platform; a closer, stronger partnership network; and to push for a more just, reasonable and balanced international governance system, Wang said.

President’s Trump And Xi: Had Very Frank, Candid, Positive Discussions At Summit

(THIS ARTICLE IS COURTESY OF CNN)

Palm Beach, Florida (CNN) President Donald Trump and Chinese President Xi Jinping established a new framework for high-level negotiations on a range of issues and pledged to make progress on trade negotiations within the next 100 days during meetings here Thursday and Friday, top US officials said.

Secretary of State Rex Tillerson touted the first summit between the leaders of the world’s two largest economies as a success and said Trump and Xi enjoyed “very frank, very candid” discussions that were “very positive.” The officials signaled that the trading relationship between the two countries and North Korea’s nuclear program were at the top of the agenda during the meetings, which took place here over 24 hours at Trump’s Mar-a-Lago estate.
The meetings, which were overshadowed by Trump’s launch of an airstrike against a Syrian government target during the summit, did not yield any concrete accomplishments beyond pledges of increased cooperation and new frameworks for dialogue.
Tillerson, who briefed reporters alongside Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross at the conclusion of the summit, also said Trump said China needs to make changes to its economy in order to “level the playing field for American workers, stressing repeatedly the need for reciprocal market access.”
“President Trump noted the challenges caused by Chinese government intervention in its economy and raised serious concerns,” Tillerson said.
Mnuchin said the discussions focused on creating a “more balanced economic relationship, specifically on trade.”
All three Cabinet secretaries, though, used diplomatic language to describe the trading imbalance between the two countries, avoiding the hard-nosed rhetoric Trump has used for years in railing against the multibillion dollar US trade deficit with China. Trump has accused China of “raping” the US and argued that it has engaged in trade abuses to gain an advantage over the US.
The two leaders also agreed on the “urgency of the threat of North Korea’s nuclear weapons program” and agreed to work together to resolve the issue “peacefully,” Tillerson said.
“The two sides noted the urgency of the threat of North Korea’s weapons program, reaffirmed their commitment to a denuclearized Korean Peninsula and committed to fully implement UN Security Council resolutions,” Tillerson said. “They agreed to increase cooperation and work with the international community to convince the [North Korea] to peacefully resolve the issue and abandon its illicit weapons programs.”
Discussions between Trump and Xi over North Korea came days after Trump warned that the US was prepared to act unilaterally to stop North Korea’s nuclear program from advancing further should China be unwilling to use its leverage over Pyongyang.
The discussions also came as Trump launched a strike against a Syrian government air base as retaliation for its recent chemical weapons attack against a rebel stronghold, which killed civilians, including children. Some experts interpreted the strike as a warning to North Korea that the US is prepared to act militarily to prevent the use of weapons of mass destruction.
Trump informed Xi of the strike as they finished eating dinner together on Friday, just as the US-launched cruise missiles struck their targets.
Tillerson said Xi told Trump that he “understood that such a response was necessary when people are killing children” and expressed “an appreciation” to Trump for informing him of the number of missiles that were launched and explaining the rationale behind the strike.

Xi Says Ready To Boost China-US Ties From New Starting Point With Trump

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

HOME » NATION

Xi says ready to boost China-US ties from new starting point with Trump

CHINESE President Xi Jinping said here Thursday that he is ready to work with his US counterpart, Donald Trump, to push forward China-US relations from a new starting point.

While meeting with Trump at the latter’s Florida resort of Mar-a-Lago, Xi said there are “a thousand reasons to make the China-US relationship work, and no reason to break it.”

Since the normalization of China-US relations 45 years ago, the bilateral relationship, even though experiencing ups and downs, has made historic progress and brought enormous and pragmatic benefits to the two peoples, Xi said.

The Chinese president said it takes political resolve and historical commitments from leaders of both countries to enhance the bilateral relations in the 45 years to come.

Xi also invited Trump to pay a state visit to China in 2017.

Xi said he has maintained frequent contacts with Trump through phones and letters for some time, and is glad to meet Trump here as his guest.

A sound bilateral relationship will benefit not only the two countries and peoples, but also the world at large, he stressed.

He added that cooperation is the only right choice for China and the United States, saying that the two countries are capable of becoming great cooperative partners.

The Chinese president also underlined the role of four newly-established high-level mechanisms for dialogue and cooperation between China and the United States in such areas as diplomacy and security, economy, law enforcement and cyber security, as well as social and people-to-people exchanges.

Xi urged the two countries to set up a cooperative priority list for early harvest, advance negotiations on the bilateral investment treaty, and explore the pragmatic cooperation in infrastructure construction and energy, among other areas.

He also said the two sides should properly handle sensitive issues, manage and control differences in a constructive manner, and strengthen communication and coordination in major international and regional affairs.

China and the United States should expand their cooperation in addressing global challenges, such as non-proliferation and the fight against cross-border crimes, Xi said.

Xi called on the two counties to strengthen communication and coordination in such multilateral mechanisms as the United Nations, the Group of 20 and APEC, so as to jointly safeguard world peace, stability and prosperity.

For his part, Trump accepted the invitation for a state visit to China with pleasure, and hoped to make the trip at an early date.

The United States and China bear heavy responsibilities as major countries in the world, he said, adding that he is full of expectations for the meeting and hopes to establish a sound working relationship with Xi for the greater development of bilateral relations.

The two heads of state also informed each other of their current priorities in domestic and diplomatic agenda, and exchanged views on regional hot-button issues.

Upon their arrival at Mar-a-Lago, Xi and his wife, Peng Liyuan, were greeted by Trump and US First Lady Melania.

Before the in-depth, friendly and long-time conversation between Xi and Trump, the two couples also enjoyed the singing of a traditional Chinese ballad and the recitation of Chinese ancient poems by Trump’s grandchildren.

Xi arrived in the southeastern US coastal town of Palm Beach earlier in the day for the first meeting with Trump, in a bid to chart the course of bilateral ties in a new era.

China and Finland look to the future: President Jinping Visits Finland In Route To U.S.

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

HOME » NATION

China and Finland look to the future

CHINA and Finland yesterday agreed to establish and promote a “future-oriented new-type cooperative partnership,” with both sides pledging to enhance political mutual trust and deepen pragmatic cooperation.

During talks between visiting President Xi Jinping and his Finnish counterpart Sauli Niinisto, the two heads of state stressed that to build a more forward-looking and strategic bilateral relationship that keeps pace with the times was in the fundamental interests of both countries.

“China and Finland are good friends and partners who respect each other, treat each other as equals and enjoy mutually beneficial cooperation,” Xi said. “The peoples of our two countries have always cherished a friendly sentiment toward each other.”

Noting that the development needs of China and Finland fit well with each other, Xi called on both sides to increase high-level exchanges, build up strategic mutual trust, explore potentials for cooperation and give support to each other in development.

Niinisto warmly welcomed the Chinese president for his visit on the occasion of the centenary of Finland’s independence.

Finland highly values China’s achievements in development and its important role in international affairs, he said.

The Finnish side hopes to carry out more high-level contacts and exchanges in all areas with China, and deepen cooperation in economy and trade, investment, innovation, environmental protection, tourism, winter sports and Arctic affairs, as well as within the framework of China’s Belt and Road initiative linking Asia with Europe and Africa, Niinisto said.

Finland also wants to strengthen communication and coordination with China on major international issues and push for an even closer cooperation between the European Union and China, he said.

In a written speech delivered on his arrival, Xi first extended congratulations to the Finnish government and people on the centenary of Finland’s independence.

“Since China and Finland established diplomatic ties 67 years ago, our relationship has maintained a steady and sound development no matter how the international landscape changes,” Xi said.

“Our relationship has become a model of friendly co-existence and mutually-beneficial cooperation between countries that are different in population and size, history and culture, social system and development level,” he said.

Xi said he looks forward to having in-depth exchanges of views with Finnish leaders on the China-Finland relationship and other issues of mutual concern, thus charting the course for the future development of the bilateral relations.

“I believe that with concerted efforts of both sides, my visit will achieve a complete success,” he added.

Finland was one of the first Western countries to establish diplomatic ties with the People’s Republic of China, and the first Western nation to sign an intergovernmental trade agreement with China.

Currently, Finland is China’s third largest trading partner in the Nordic region, while China has been Finland’s biggest trading partner in Asia for 14 years.

The two sides have cooperated in areas such as high technology, clean energy, innovation and Arctic research, and further cooperation on winter sports is expected as China will host the 2022 Winter Olympic Games.

Xi’s visit to Finland is his first trip to a European Union member state this year, and also his first to the Nordic region as president.

After Finland, Xi will travel to Florida today for a meeting with US President Donald Trump.

It will be the first meeting between Xi and Trump, heads of state of the two biggest economies in the world.

Mr. Putin Seeks a Meeting With Mr. Trump In Helsinki Finland In May

(THIS ARTICLE IS COURTESY OF THE BBC)

(Are the people of Russia and the people of the U.S. really enemies of each other, no I do not believe so personally. It is the ego’s and the distrust of Nation’s Leaders toward each other, both the Civilian and the Military/Intelligence Leaderships. This is something the Media doesn’t need to be trying to become the ‘news maker’. The world is better off if the U.S. along with all of Europe, Israel and Russia are honestly friendly with each other.)–this opinion by trs.

Putin seeks Trump meeting in Helsinki in May
Russian President Vladimir Putin at the 'Arctic: Territory of Dialogue' International Forum in Arkhangelsk, Russia, 30 March 2017Image copyright EPA
Image caption Mr Putin said he would be “glad” to meet Mr Trump at a summit of the Arctic Council in Helsinki

Russian President Vladimir Putin has said he would like to meet US President Donald Trump at an Arctic nations summit in Finland in May.

He again rejected allegations that Russia had interfered in the 2016 US presidential election.

And he said sanctions against Russia were also hurting the US and Europe.

Mr Trump had voiced hopes for improved relations with Moscow, but he has been dogged by claims of links between his election campaign and Russia.

The Federal Bureau of Investigation and both houses of the US Congress are investigating alleged Russian interference in the election.

Russia ‘tried to hijack US election’, Senate hearing told

Mr Putin, speaking at an Arctic forum in Arkhangelsk in northern Russia, said he would be “glad” to meet Mr Trump at a summit of the Arctic Council in Helsinki in May.

“Both side should prepare such events,” he said. “If not, then such a meeting could take place within the framework of the usual meetings, at the G20.”

Finnish President Sauli Niinisto, whose country is due to take the rotating leadership of the Arctic Council, said he would be honoured to host such a meeting.

The G20 summit of world powers is set to convene in the northern German city of Hamburg in early July.

Donald Trump (file pic)Image copyright REUTERS
Image caption Mr Trump says claims of collusion between his campaign and Russia are “fake news”

Mr Putin criticised “endless and groundless” allegations that Russia interfered in the US election, and what he termed the use of the “Russian card” in US politics.

“Do we want to completely cut relations?” he asked. “Do we want to bring the situation to what it was during the Cuban Missile Crisis of the 1960s?

“I very much hope that sometime – the sooner the better – the situation will return to normal. I very much hope that we’ll… improve Russian-American relations, for the good of our people’s, and for the whole world.”

Mr Putin said he would support President Trump in fighting terrorism, and co-operate with the Pentagon and Central Intelligence Agency.

He added that he was ready to work with the new US presidential administration on fighting Islamic State in Syria.

Earlier this year, Slovenia offered to host a meeting between Mr Putin and Mr Trump. Mr Putin offered thanks, but said it would depend on Washington.

Western nations imposed sanctions on Russia over its annexation of the Crimea and its role in the Ukraine crisis.

SEC Denies A Second Application To List Bitcoin Product

(THIS ARTICLE IS COURTESY OF REUTERS NEWS AGENCY)

SEC denies a second application to list bitcoin product

By Trevor Hunnicutt | NEW YORK

The U.S. Securities and Exchange Commission on Tuesday denied for the second time this month a request to bring to market a first-of-its-kind product tracking bitcoin, the digital currency.

The SEC announced in a filing its decision denying Intercontinental Exchange Inc’s NYSE Arca exchange the ability to list and trade the SolidX Bitcoin Trust, an exchange-traded product (ETP) that would trade like a stock and track the digital asset’s price. Previously, the regulatory agency said it had concerns with a similar proposal by investors Cameron Winklevoss and Tyler Winklevoss.

“The Commission believes that the significant markets for bitcoin are unregulated,” the SEC said in its filing, echoing language from its decision earlier this month on the application by CBOE Holdings Inc’s Bats exchange to list The Bitcoin ETF proposed by the Winklevoss brothers. On Friday, Bats asked the SEC to review its decision not to allow that fund to trade.

“We are reviewing the SEC’s order and evaluating our next steps,” said Daniel H. Gallancy, chief executive officer of SolidX Partners Inc, a U.S. technology company that provides blockchain services. NYSE did not immediately respond to a request for comment.

Bitcoin had scaled to a record of more than $1,300 this month, higher than the price of an ounce of gold, as investors speculated that an ETF holding the digital currency could woo more people into buying the asset.

But after denial of the Winklevoss-proposed ETF, the digital currency’s price plunged as much as 18 percent. It has rebounded partially since then and was at $1,041 on Tuesday, roughly unchanged from the previous day.

Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government.

Yet bitcoin presents a new set of risks to investors given its limited adoption, a number of massive cybersecurity breaches affecting bitcoin owners and the lack of consistent treatment of the assets by governments.

There is one remaining bitcoin ETP proposal awaiting a verdict from the SEC. Grayscale Investments LLC’s Bitcoin Investment Trust, backed by early bitcoin advocate Barry Silbert and his Digital Currency Group, filed an application last year.

(Reporting by Trevor Hunnicutt; Additional reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio and Cynthia Osterman)

China Will Be The Straw That Will Stir The World’s Economic Drink?

(THIS ARTICLE IS COURTESY OF THE SHANGHAI DAILY NEWS)

HOME » BUSINESS » FINANCE

Forum hears pledge of more effort to revitalize China’s real economy

CHINA will remain committed to ensuring innovation drives development and will increase efforts to revitalize the real economy, Vice Premier Zhang Gaoli said yesterday.

“The real economy is the foundation of economic growth and we will optimize it,” Zhang said at the opening ceremony of the China Development Forum 2017 in Beijing.

China will improve its capabilities in scientific innovation and boost the development of strategic emerging sectors and modern manufacturing while transforming traditional industries with new technology and business models, he said.

The government will continue to promote entrepreneurship and the “Internet Plus” plan to meet the diverse needs of the market and Chinese companies will be encouraged to use craftsmanship to establish competitive brands that can stand the test of time.

China will further reduce costs for enterprises by streamlining administration and pushing forward tax reforms, and prevention and control of financial risks will be elevated to a higher position on the government’s agenda, Zhang said, adding that China will manage risks in bad loans, bond default, property bubbles and Internet finance to avoid systemic financial risks.

To stimulate growth and improve market vitality, China should increase supply-side structural reform, Zhang said.

Highlighting the basic tone of “seeking progress while maintaining stability,” he underscored the need for efforts to maintain growth, ensure employment and counteract risks from home and abroad.

China will forge ahead with its supply-side reform, cutting steel production capacity by around 50 million tons and coal capacity by over 150 million tons this year, he said.

The country will prioritize de-stocking unsold houses in third and fourth-tier cities as it fights speculation in the housing market, he added.

Zhang restated China’s commitment to better air, water and soil quality.

The government will speed up the reform of state-owned enterprises, make concrete mixed-ownership reforms in sectors such as power, petroleum, railways, civil aviation and telecommunications and open the market to more private investment, Zhang said.

On the close ties between China and the world economy, he stressed the need to advance globalization and fight protectionism.

“China is willing to join efforts with the international community to steer the world economy toward strong, sustainable, balanced and inclusive growth,” he said.

The country will continue to implement its opening-up strategy and advance the Belt and Road Initiative, he added.

China will host the Belt and Road Forum for International Cooperation in May. Taking part in this “new chapter in win-win cooperation” will be more than 20 heads of state and government, more than 50 leaders of international organizations, more than 100 ministerial-level officials, and more than 1,200 delegates.

Demonetisation Be Damned! The Indian Rupee Is On A Tear

(THIS ARTICLE IS COURTESY OF QUARTZ INDIA)

LOOK AT IT FLY

Demonetisation be damned! The Indian rupee is on a tear

March 17, 2017 Quartz India

It’s been a great week for the Indian rupee.

On March 16, at Rs65.41 per US dollar, the currency hit a one-year high against the greenback.

Much of the strengthening has to do with the ruling Bharatiya Janata Party’s (BJP) recent electoral wins in Uttar Pradesh and Uttarakhandand solid performances in two other states. The strong showing reflects just how well the party is positioned to sweep the next general elections in 2019 and hand Narendra Modi a second term as prime minister. Some of that magic is rubbing off on the markets.

“Since the start of the week, equity markets and the Indian rupee have rallied sharply in response to the strong performance of the main ruling party in recent state elections,” DBS Bank said in a March 16 report.

So far, the Indian currency has been the third-best performing in Asia in 2017. The rupee has gained 3.4% this year against the US dollar, only trailing the South Korean won and the Taiwanese Dollar.

Meanwhile, the US Federal Reserve’s interest rate hike on March 15—only the third since the economic crisis of 2008—hit the dollar. When the US dollar falls, capital outflows from emerging markets are restricted, thus strengthening local currencies like the Indian rupee.

The rupee’s strengthening comes after a free fall triggered by Modi’s move to demonetise 86% of the currency notes (by value) in November 2016. Initially it had been estimated that the currency ban would dent the GDP and take a toll on the economy.

In January, a Reuters poll of some 30 foreign exchange strategists had estimated that the Indian currency could see a record fall this year because of the currency ban. But India’s Central Statistical Office’s estimates show that the economy grew at 7% during the October-December 2016 quarter, and the rupee is holding strong.

One reason for the rupee’s surge is also that the macro-economic factors that influence a currency—inflation and current account deficit (CAD)—are looking good for India at the moment. While inflation is being restricted in its safe zone of sub 6%, India’s CAD (the excess of imports over exports) has also been falling.

What next

A strong rupee is good news for corporate India. Many firms hold debt in foreign currencies, so a fall in the exchange rate means their interest outgo will reduce. “Many Indian entities including short-term trade finance people remain unhedged for their offshore liability. They (companies) are likely to have gained from the rupee’s sharp rise in the last few days. At least, interest liability has reduced, adding to balance sheet gains,” Jayesh Mehta, country treasurer at Bank of America told the Economic Times.

However, the Reserve Bank of India (RBI) could soon step in to stabilise the rupee’s movement. Some reports suggest that the central bank already is buying dollars through public sector banks.

“The rupee appreciation, we feel is not sustainable and would revert to the range of Rs66-66.5 range, to begin with as the fundamentals do not warrant such unbridled enthusiasm,” a report by CARE Ratings said. “The outcome of the elections has been the main driving force. A strong rupee may not be good for our exports and the RBI is cognizant of the same.”

Toyota May Build Its First Factory In Saudi Arabia: Allowing Women To Drive Would Double Market

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)

Riyadh – Attesting to the undeniable investment attraction that is Saudi Arabia, Japan’s market giant motor corporation, Toyota, announced plans to launch its first ever production factory in the Kingdom.

Such an announcement confirms that grand-scale companies trust in Saudi economy and view it with optimistic potential.

Speaking at a Japan-held forum, Chairman of the Japanese Business Federation Sadayuki Sakakibara, explored economic and investment cooperation between the Kingdom and Japan.

Sakakibara stressed the importance of the Kingdom’s economic role for Japan and the keenness of the Japanese business sector toward the achievement of the strategic economic and developmental objectives of the Saudi-Japanese Vision 2030 that aims to bolster bilateral cooperation

Earlier, a memorandum of understanding was signed by the National Industrial Cluster Development Program (NICDP) and the Toyota Motor Corporation for the feasibility study of an industrial project to produce vehicles and parts in the Kingdom.

“The study would take into account the evaluation of development of a local supply base using materials produced by major Saudi companies like Sabic, Maaden, Petro Rabigh, and other major industrial companies in the Kingdom,” the official Saudi state news agency reported.

It further aims to enhance the development and attraction of a Saudi workforce and put in place the adequate training programs.

Abdul Latif Jameel, as a local distributor for Toyota, will be also taking part in the joint feasibility study.

Toyota remains the leader in Saudi and other Gulf Cooperation Council (GCC) car markets with more than 500,000 units sold in the GCC in 2016, according to SPA.

Moreover, on the third day of the fourth leg of a seven-nation Asian tour, the king attended the Saudi-Japanese Vision 2030 business forum aimed at strengthening bilateral ties.

King Salman was received at the forum by Minister of Economy and Planning Adel Fakeih and Japanese Minister of Economy, Trade and Industry Hiroshige Seko.