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China’s Guangzhou fights Delta Covid variant with lockdowns, mass testing

People wait in lines for nucleic acid tests in Guangzhou, China on May 26, 2021.

Visual China Group | Getty Images

GUANGZHOU, China – Authorities in southern China’s Guangdong Province are conducting mass tests and have closed areas to control a flare-up of coronavirus cases in Guangzhou.

The city has cited the delta variant of the coronavirus, which was first discovered in India, as the driver behind the surge in cases reported since late May. The Delta Tribe is known to be highly transmissible.

Guangzhou, a city of over 15 million people and the provincial capital, reported 96 of the over 100 cases in Guangdong Province in this latest outbreak.

China, where the coronavirus first emerged last year, has quickly got the epidemic under control and has had very few cases in the past 12 months. However, clusters have emerged in parts of the country, including major cities such as the capital Beijing and the financial center of Shanghai.

The cases in Guangzhou may be even more worrying as it is the delta strain of the coronavirus, which can spread very quickly.

Lock

A 75-year-old woman in Liwan, a district of Guangzhou to the west of the city, was the first confirmed case of the Delta variant on May 21. She went to a restaurant and eventually infected her husband. The most recent infections started from there and have since spread to other areas of the city.

Liwan, still the hardest hit district, has strictly closed certain streets. Some areas do not allow people into a certain zone and residents are not allowed to leave their building. Checkpoints have been set up 24 hours a day to monitor movement in and out of these areas.

Restaurants and entertainment venues have also been closed.

But the virus has also spread to other parts of the city and province. Foshan, a city southwest of Guangzhou, has reported cases. On June 6th, six members of the same family in Guangzhou’s Nansha District tested positive for the coronavirus. On Sunday, a positive case was found at the Chinese technology center in Shenzhen, home to companies like Huawei and Tencent.

In other areas of Guangzhou that are less affected by the recent accumulation of cases, some restaurants and bars have started offering take-away meals.

Mass tests, travel restrictions

After the first case was found, Guangzhou first conducted mass tests in Liwan, which have since been expanded to other areas.

In the central business district known as Zhujiang New Town, residents were asked between Friday and Sunday to take a test at a location near their homes.

One such test site, which was set up on a street full of bars and restaurants, had huge lines on Friday.

Guangzhou performed over 16 million tests at midnight between May 26 and June 5.

In Guangzhou, the authorities have imposed stricter travel restrictions. Some metro stations in the city are closed. The authorities have asked people not to leave the city. However, if residents must leave the province, they should have a negative nucleic acid test within 48 hours of their departure. Previously, travelers had a 72-hour window.

Hundreds of domestic flights from Guangzhou’s Baiyun International Airport have also been canceled.

Driverless cars that carry supplies

Guangzhou has become a hub for driverless automakers to test their vehicles on public roads. And since Liwan is blocked, these companies transport goods to Liwan with their autonomous vehicles.

Guangzhou-based WeRide has used its autonomous bus to transport groceries to Liwan. Pony.ai, another autonomous driving company, has sent its vehicles to Liwan with supplies.

Chinese internet giant Baidu also used its autonomous vehicles to bring food and medical personnel to the affected areas.

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C.I.A. Scrambles for New Method in Afghanistan

WASHINGTON — The rapid U.S. military withdrawal from Afghanistan is creating intense pressure on the C.I.A. to find new ways to gather intelligence and carry out counterterrorism strikes in the country, but the agency has few good options.

The C.I.A., which has been at the heart of the 20-year American presence in Afghanistan, will soon lose bases in the country from where it has run combat missions and drone strikes while closely monitoring the Taliban and other groups such as Al Qaeda and the Islamic State. The agency’s analysts are warning of the ever-growing risks of a Taliban takeover.

United States officials are in last-minute efforts to secure bases close to Afghanistan for future operations. But the complexity of the continuing conflict has led to thorny diplomatic negotiations as the military pushes to have all forces out by early to mid-July, well before President Biden’s deadline of Sept. 11, according to American officials and regional experts.

One focus has been Pakistan. The C.I.A. used a base there for years to launch drone strikes against militants in the country’s western mountains, but was kicked out of the facility in 2011, when U.S. relations with Pakistan unraveled.

Any deal now would have to work around the uncomfortable reality that Pakistan’s government has long supported the Taliban. In discussions between American and Pakistani officials, the Pakistanis have demanded a variety of restrictions in exchange for the use of a base in the country, and they have effectively required that they sign off on any targets that either the C.I.A. or the military would want to hit inside Afghanistan, according to three Americans familiar with the discussions.

Diplomats are also exploring the option of regaining access to bases in former Soviet republics that were used for the Afghanistan war, although they expect that President Vladimir V. Putin of Russia would fiercely oppose this.

Recent C.I.A. and military intelligence reports on Afghanistan have been increasingly pessimistic. They have highlighted gains by the Taliban and other militant groups in the south and east, and warned that Kabul could fall to the Taliban within years and return to becoming a safe haven for militants bent on striking the West, according to several people familiar with the assessments.

As a result, U.S. officials see the need for a long-term intelligence-gathering presence — in addition to military and C.I.A. counterterrorism operations — in Afghanistan long after the deadline that Mr. Biden has set for troops to leave the country. But the scramble for bases illustrates how U.S. officials still lack a long-term plan to address security in a country where they have spent trillions of dollars and lost more than 2,400 troops over nearly two decades.

William J. Burns, the C.I.A. director, has acknowledged the challenge the agency faces. “When the time comes for the U.S. military to withdraw, the U.S. government’s ability to collect and act on threats will diminish,” he told senators in April. “That is simply a fact.”

Mr. Burns made an unannounced visit in recent weeks to Islamabad, Pakistan, to meet with the chief of the Pakistani military and the head of the directorate of Inter-Services Intelligence, the country’s military intelligence agency. Defense Secretary Lloyd J. Austin III has had frequent calls with the Pakistani military chief about getting the country’s help for future U.S. operations in Afghanistan, according to American officials familiar with the conversations.

Mr. Burns did not bring up the base issue during his trip to Pakistan, according to people briefed on the meeting; the visit focused on broader counterterrorism cooperation between the two countries. At least some of Mr. Austin’s discussions have been more direct, according to people briefed on them.

A C.I.A. spokeswoman declined to comment when asked about Mr. Burns’s travel to Pakistan.

Two decades of war in Afghanistan have helped transform the spy agency into a paramilitary organization: It carries out hundreds of drone strikes in Afghanistan and Pakistan, trains Afghan commando units and maintains a large presence of C.I.A. officers in a string of bases along the border with Pakistan. At one point during President Barack Obama’s first term, the agency had several hundred officers in Afghanistan, its largest surge of personnel to a country since the Vietnam War.

These operations have come at a cost. Night raids by C.I.A.-trained Afghan units left a trail of abuse that increased support for the Taliban in parts of the country. Occasional errant drone strikes in Pakistan killed civilians and increased pressure on the government in Islamabad to dial back its quiet support for C.I.A. operations.

Douglas London, a former head of C.I.A. counterterrorism operations for Afghanistan and Pakistan, said that the agency was likely to rely on a “stay behind” network of informants in Afghanistan who would collect intelligence on the Taliban, Al Qaeda, the stability of the central government and other topics. But without a large C.I.A. presence in the country, he said, vetting the intelligence would be a challenge.

“When you’re dealing offshore, you’re dealing with middlemen,” said Mr. London, who will soon publish a book, “The Recruiter,” about his C.I.A. experience. “It’s kind of like playing telephone.”

In the short term, the Pentagon is using an aircraft carrier to launch fighter planes in Afghanistan to support the troop withdrawal. But the carrier presence is unlikely to be a long-term solution, and military officials said it would probably redeploy not long after the last U.S. forces leave.

Updated 

June 4, 2021, 7:27 p.m. ET

The United States is stationing MQ-9 Reaper drones in the Persian Gulf region, aircraft that can be used by both the Pentagon and the C.I.A. for intelligence collection and strikes.

But some officials are wary of these so-called over the horizon options that would require plane and drones to fly as many as nine hours each way for a mission in Afghanistan, which would make the operations more expensive because they require more drones and fuel, and also riskier because reinforcements needed for commando raids could not arrive swiftly during a crisis.

Pakistan is a longtime patron of the Taliban; it sees the group as a critical proxy force in Afghanistan against other groups that have ties to India. Pakistan’s spy agency provided weapons and training for Taliban fighters for years, as well as protection for the group’s leaders. The government in Islamabad is unlikely to sign off on any U.S. strikes against the Taliban that are launched from a base in Pakistan.

Although some American officials believe Pakistan wants to allow U.S. access to a base as long as it can control how it is used, public opinion in the country has been strongly against any renewed presence by the United States.

Pakistan’s foreign minister, Shah Mehmood Qureshi, told lawmakers last month that the government would not allow the U.S. military to return to the country’s air bases. “Forget the past, but I want to tell the Pakistanis that no U.S. base will be allowed by Prime Minister Imran Khan so long he is in power,” Mr. Qureshi said.

Some American officials said that negotiations with Pakistan had reached an impasse for now. Others have said the option remains on the table and a deal is possible.

The C.I.A. used the Shamsi air base in western Pakistan to carry out hundreds of drone strikes during a surge that began in 2008 and lasted during the early years of the Obama administration. The strikes focused primarily on suspected Qaeda operatives in Pakistan’s mountainous tribal areas, but they also crossed the border into Afghanistan.

Pakistan’s government refused to publicly acknowledge that it was allowing the C.I.A. operations, and in late 2011 it decided to halt the drone operations after a series of high-profile events that fractured relations with the United States. They included the arrest of a C.I.A. contractor in Lahore for a deadly shooting, the secret American commando mission in Pakistan to kill Osama bin Laden and an American-led NATO airstrike on the Afghan border in November 2011 that killed dozens of Pakistani soldiers.

The Americans and the Pakistanis “will want to proceed cautiously” with a new relationship, said Husain Haqqani, a former Pakistani ambassador to the United States who is now a senior fellow at the Hudson Institute. But, he said, Mr. Biden’s announcement of a withdrawal “has the C.I.A. and the Defense Department, as well as Pakistanis, scrambling.”

American diplomats have been exploring options to restore access to bases in Central Asia, including sites in Kyrgyzstan and Uzbekistan that housed American troops and intelligence officers during the war.

Secretary of State Antony J. Blinken spoke this month with his counterpart in Tajikistan, though it is not clear if base access was discussed during the call. Any negotiations with those countries are likely to take considerable time to work out. A State Department spokeswoman would say only that Mr. Blinken was engaging partner countries on how the United States was reorganizing its counterterrorism capabilities.

Russia has opposed the United States using bases in Central Asia, and that is likely to make any diplomatic effort to secure access to bases for the purposes of military strikes a slow process, according to a senior American official.

While the C.I.A. in particular has long had a pessimistic view of the prospects of stability in Afghanistan, those assessments have been refined in recent weeks as the Taliban has made tactical gains.

While military and intelligence analysts have previously had assessments at odds with one another, they now are in broad agreement that the Afghan government is likely to have trouble holding on to power. They believe the Afghan security forces have been depleted by high casualty rates in recent years. The announcement of the U.S. withdrawal is another psychological blow that could weaken the force.

Intelligence assessments have said that without continued American support, the Afghan National Security Forces will weaken and could possibly collapse. Officials are working to develop options for continuing that support remotely, but the Pentagon has not yet come up with a realistic plan that officials believe will work.

Some current and former officials are skeptical that remote advising or combat operations will succeed. Collecting intelligence becomes far more difficult without a large presence in Afghanistan, said Mick P. Mulroy, a retired C.I.A. officer who served there.

“It doesn’t matter if you can drop ordnance,” he said, “if you don’t know where the target is.”

Eric Schmitt contributed reporting.

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Larger rates of interest can be good for the nation, Treasury Secretary Yellen says

U.S. Treasury Secretary Janet Yellen speaks during a news conference, after attending the G7 finance ministers meeting, at Winfield House in London, Britain June 5, 2021.

Justin Tallis | Rueters

U.S. Treasury Secretary Janet Yellen said that President Joe Biden’s $4 trillion spending proposal would be positive for the country, even if it leads to a rise in interest rates.

During an interview with Bloomberg News, the former Federal Reserve chair said the president’s plans would total about $400 billion each year — a level of spending she argued was not enough to create an inflation over-run.

“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen told Bloomberg.

“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” she said. She added that if the packages help at all to “alleviate things then that’s not a bad thing — that’s a good thing.”

Read the full Bloomberg report here.

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Left and Proper Conflict in Peru Election, With an Financial Mannequin at Stake

LIMA, Peru – On paper, the candidates for the presidential election in Peru on Sunday are a left-wing former schoolteacher with no government experience and the right-hand daughter of an imprisoned ex-president who ruled the country with an iron fist.

However, voters in Peru face an even more elementary choice: whether to stick to the neoliberal economic model that has dominated the country for the past three decades and has achieved some previous successes but ultimately fails to make sense to millions of Peruvians during the time support the pandemic.

“The model let a lot of people down,” said Cesia Caballero, 24, a video producer. The virus, she said, “was the last drop to tip the glass.”

Peru suffered the region’s worst economic slump during the pandemic, pushing nearly 10 percent of its population back into poverty. On Monday, the country announced that the virus death toll was nearly three times what it was previously reported, suddenly raising the per capita death rate to the highest in the world. Millions were unemployed and many others were displaced.

Left-wing candidate Pedro Castillo, 51, a union activist, has pledged to overhaul the political and economic system to combat poverty and inequality and to replace the current constitution with one that gives the state a greater role in the economy.

His opponent Keiko Fujimori, 46, has vowed to uphold the free-market model of her father Alberto Fujimori, who was originally credited with fighting back violent left-wing uprisings in the 1990s, but who is now despised by many as a corrupt autocrat.

Polls show the candidates in a close tie. But many voters are frustrated with their options.

Mr Castillo, who has never held office, has teamed up with a radical former governor convicted of corruption to launch his application. Ms. Fujimori has been arrested three times in money laundering investigations and faces a 30-year prison sentence for running a criminal organization that traded illicit campaign donations during a previous presidential run. She denies the allegations.

“We are between an abyss and an abyss,” said Augusto Chávez, 60, an artisan jeweler in Lima, who said he could cast a defaced vote in protest. Voting is compulsory in Peru. “I think extremes are bad for a country. And they represent two extremes. “

Mr. Castillo and Ms. Fujimori each won less than 20 percent of the vote in a crowded first-round race in April that forced the runoff election on Sunday.

The election follows a rocky five-year period in which the country went through four presidents and two congresses. And the pandemic has taken voter discontent to new levels, fueling anger over unequal access to public services and growing frustration with politicians embroiled in seemingly endless corruption scandals and political settlements.

The hospital system has become so strained by the pandemic that many have died of a lack of oxygen, while other doctors have paid for places in intensive care units – only to be turned away in excruciating ways.

Who wins on Sunday, said the Peruvian sociologist Lucía Dammert: “The future of Peru is a very turbulent future.”

“The deep injustices and the deep frustration of the people have moved, and there is no organization or no actor, neither private companies, the state, nor trade unions, which could give this a voice.”

When Fujimori’s father came to power as a populist outsider in 1990, he quickly broke an election promise not to implement a market-economy “shock” policy promoted by his rival and Western economist.

The measures he took – deregulation, cuts in government spending, privatization of industry – helped put an end to years of hyperinflation and recession. The constitution he introduced in 1993 restricted the state’s ability to participate in business activities and dissolve monopolies, strengthened the autonomy of the central bank and protected foreign investments.

Subsequent centrist and right-wing governments signed more than a dozen free trade agreements, and Peru’s pro-business policies were declared a success due to Peru’s record poverty reduction during the commodity boom of this century.

But little has been done to remove Peru’s reliance on raw material exports and long-standing social inequalities, or to ensure health, education and public services for its people.

The pandemic exposed the weakness of the Peruvian bureaucracy and underfunding of the public health system. The country had only a small fraction of its peers’ intensive care beds, and the government was slow and inconsistent in providing even a small amount of cash to those in need. Informal workers were left without a safety net, which led many to turn to high-interest loans from private banks.

“The pandemic showed that the underlying problem was the order of priorities,” said David Rivera, a Peruvian economist and political scientist. “Apparently we had saved money for so long to use in a crisis, and during the pandemic we saw that macroeconomic stability remains a priority, not people dying and starving.”

Ms. Fujimori blames the country’s problems not on its economic model but on the way previous presidents and other leaders have applied it. Still, she says, some adjustments are needed, such as raising the minimum wage and raising pension payments for the poor.

She designed her campaign against Mr Castillo as a struggle between democracy and communism, sometimes using Venezuela’s socialist-inspired government, now in crisis, as a foil. Mr. Castillo, a native of the northern highlands of Peru, gained national recognition by leading a strike by the teachers’ union in 2017. He wears the broad-brimmed hat of the Andean farmers and has performed with supporters on horseback and dancing.

“For us in the countryside we want someone who knows what it’s like to work in the fields,” says Demóstenes Reátegui.

When the pandemic started, Mr Reátegui, 29, was one of thousands of Peruvians who hitchhiked from Lima to his rural family home after a government lockdown pushed migrant workers like him out of their jobs.

It took him 28 days.

Mr Castillo has revealed little about how to keep vague promises to ensure the country’s copper, gold and natural gas resources benefit Peruvians more widely. He has promised not to seize any of the company’s assets and instead renegotiate contracts.

He said he wanted to restrict imports of agricultural products to support local farmers, a policy that economists have warned against would lead to higher food prices.

If he wins, it will be the clearest rejection by the country’s political elite since Fujimori took office in 1990.

“Why do we have so much inequality? Are you not outraged? ”Said Mr Castillo at a recent rally in southern Peru, referring to the country’s elites.

“You can’t lie to us anymore. People woke up, ”he said. “We can recapture this country!”

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El Salvador seems to change into the primary nation to undertake bitcoin as authorized tender

Nayib Bukele, El Salvador’s president, delivers a speech to Congress at the Legislative Assembly building in San Salvador, El Salvador, on Tuesday, June 1, 2021. Photographer: Camilo Freedman/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

MIAMI — El Salvador is looking to introduce legislation that will make it the world’s first sovereign nation to adopt bitcoin as legal tender, alongside the U.S. dollar.

In a video broadcast to Bitcoin 2021, a multiday conference in Miami being billed as the biggest bitcoin event in history, President Nayib Bukele announced El Salvador’s partnership with digital wallet company, Strike, to build the country’s modern financial infrastructure using bitcoin technology.

“Next week I will send to congress a bill that will make bitcoin a legal tender,” said Bukele.

Jack Mallers, founder of the Lightning Network payments platform Strike, said this will go down as the “shot heard ’round the world for bitcoin.”

“What’s transformative here is that bitcoin is both the greatest reserve asset ever created and a superior monetary network. Holding bitcoin provides a way to protect developing economies from potential shocks of fiat currency inflation,” continued Mallers.

Speaking from the mainstage, Mallers said the move will help unleash the power and potential of bitcoin for everyday use cases on an open network that benefits individuals, businesses, and public sector services.

El Salvador is a largely cash economy, where roughly 70% of people do not have bank accounts or credit cards. Remittances, or the money sent home by migrants, account for more than 20% of El Salvador’s gross domestic product. Incumbent services can charge 10% or more in fees for those international transfers, which can sometimes take days to arrive and that sometimes require a physical pick-up.

Bitcoin isn’t backed by an asset, nor does it have the full faith and backing of any one government. Its value is derived, in part, from the fact that it is digitally scarce; there will only ever be 21 million bitcoin in existence.

While details are still forthcoming about how the rollout will work, CNBC is told that El Salvador has assembled a team of bitcoin leaders to help build a new financial ecosystem with bitcoin as the base layer.

Bukele’s New Ideas party has control over the country’s Legislative Assembly, so passage of the bill is very likely.

“It was an inevitability, but here already: the first country on track to make bitcoin legal tender,” said Adam Back, CEO of Blockstream.

Back said he plans to contribute technologies like Liquid and satellite infrastructure to make El Salvador a model for the world.

“We’re pleased to help El Salvador on its journey towards adoption of the Bitcoin Standard,” he said.

This isn’t El Salvador’s first move into bitcoin. In March, Strike launched its mobile payments app there, and it quickly became the number one downloaded app in the country.

Bukele has been very popular, with his populist New Ideas party sweeping recent elections. However, the new assembly recently came under fire after it ousted the attorney general and top judges. The move prompted the U.S. Agency for International Development to pull aid from El Salvador’s national police and a public information institute, instead re-routing funds to civil society groups.

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‘Resort Rwanda’ Dissident Denied Meals and Medication in Jail, Household Says

NAIROBI, Kenya – Paul Rusesabagina, the prominent dissident who was portrayed in the Oscar-nominated film Hotel Rwanda, is denied food and medicine in a prison in Rwanda where his family claims he is being held for terrorism, lawyers and Foundation, the 66-year-old also complained about poor health.

Mr. Rusesabagina told his family members that the prison officials had informed him that they would block his access to food, water and medicine from Saturday.

His family and lawyers believe the Rwandan authorities’ move was an attempt to pressure him to return to his trial, which he stopped attending in March after saying he was not expecting justice. Mr Rusesabagina, the former hotelier whose efforts to save more than 1200 people during the country’s genocide were depicted in Hotel Rwanda, later became a critic of President Paul Kagame’s government.

The Rwanda correctional facility tweeted later on Saturday that it was treating all inmates “equally” and that Mr Rusesabagina had access to meals and a doctor.

Rusesabagina’s lawyers were due to visit him on Friday but were refused entry to the prison, said senior attorney Kate Gibson. Gibson called the recent developments “worrying” and said the legal team had filed an “urgent filing” with the UN Task Force on Arbitrary Detention to request an investigation into Mr. Rusesabagina’s situation.

“It is hard to imagine direct and willful harm being done to an inmate, especially if they are in poor health,” Gibson told the New York Times.

Mr Rusesabagina was arrested last August and charged with nine criminal offenses, including murder and formation of an armed group accused of carrying out deadly attacks in Rwanda. A Belgian citizen and permanent resident of the United States, he had traveled from his home in San Antonio, Texas to join Constantin Niyomwungere, a pastor he says he invited to his churches in Burundi, neighboring Rwanda would have.

Little did Mr. Rusesabagina know that Mr. Niyomwungere was working as an agent for the Rwandan government and was part of a plan to lure him into the country. After meeting in Dubai, the two boarded a private jet that Mr Rusesabagina thought would fly to Burundi – only to land in Kigali on August 28, where he was unceremoniously arrested.

Rwanda authorities have announced that Mr Rusesabagina is traveling to Burundi to meet rebel groups based there and in the neighboring Democratic Republic of the Congo.

In the days before he was introduced to the press on August 31, Mr. Rusesabagina was hand and foot cuffed, unable to breathe properly or use the toilet, and was held in what he called the “slaughterhouse” where he did the Screams were heard from other inmates, according to an affidavit from one of his Rwandan lawyers, Jean-Félix Rudakemwa.

Murangira B. Thierry, a spokesman for the Rwanda Investigation Bureau, denied the allegations in the affidavit. The office, he said, “is a professional investigative agency that respects human rights.”

Mr Rusesabagina’s lawyers say that not only have they been banned from visiting, but they must first submit to the authorities any documents they wish to share with him. Previously, any notes the attorneys made when they met him had to be reviewed by prison officials before they could be released from prison, Ms. Gibson said.

“Access to lawyers of his choice, to the files against him, to the time and resources to prepare a defense has been denied,” said Ms. Gibson. “The trial of Mr. Rusesabagina has systematically violated his rights as a defendant, to the point that he has decided not to take part anymore. “

Mr. Rusesabagina’s family and lawyers say that his health has deteriorated since he was arrested and that he feared dying from a stroke.

“Of particular concern is the fact that the doctor provided by the Rwandan government has prescribed three bottles of water a day and he doesn’t get them,” said Kitty Kurth, spokeswoman for his foundation, in a statement on Friday.

Mr. Rusesabagina is a cancer survivor, has cardiovascular problems and complains of severe back pain.

“My family is very scared and concerned,” said Mr. Rusesabagina’s daughter, Anaise Kanimba, on Saturday. “We don’t know if his health can take it. We don’t know when to speak to him next time. That is devastating. “

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G7 nations attain historic deal on world tax reform

British Chancellor of the Exchequer Rishi Sunak (from left), US Treasury Secretary Janet Yellen, IMF Managing Director Kristalina Georgieva and Canada’s Treasury Secretary Chrystia Freeland chatting on the first day of the Seven Treasury Ministers’ meeting at Lancaster House in London on June 4, 2021.

Stefan Rousseau | AFP | Getty Images

LONDON – Treasury ministers of the most advanced economies, known as the Group of Seven, have backed a US proposal requiring companies around the world to pay at least 15% corporate income tax.

“Today, after years of discussion, the finance ministers of the G-7 reached a historic agreement to reform the global tax system, make it fit for the global digital age – and above all to ensure that it is fair to the right companies paying the right taxes in the right places, “said UK Treasury Secretary Rishi Sunak in a video statement on Saturday.

When completed, it would represent a major development in global taxation. The G-7 members, which include Canada, France, Germany, Italy, Japan, the UK and the US, will meet for a summit next week in Cornwall, UK.

“We are committed to finding an equitable solution to the allocation of tax rights, with market countries being granted tax rights on at least 20% of profits that exceed a 10% margin for the largest and most profitable multinational corporations,” said one Statement by the G -7 finance ministers.

“We will ensure adequate coordination between the application of the new international tax rules and the elimination of all taxes on digital services and other relevant similar measures for all businesses,” it said.

US Treasury Secretary Janet Yellen, who is in London for the face-to-face meeting, hailed the move as significant and unprecedented.

“This global minimum tax would end the race to the bottom in corporate taxation and ensure fairness for the middle class and working population in the US and around the world,” she tweeted.

President Joe Biden and his administration originally proposed a minimum global tax rate of 21% to end a race to the bottom between different countries in attracting international businesses. However, after tough negotiations, a compromise was reached to set the bar at 15%.

A global deal in this area would be good news for countries on budget struggling to rebuild their economies after the coronavirus crisis.

But Biden’s idea was not received with the same enthusiasm around the world. Britain, for example, did not immediately support the proposal.

US President Joe Biden speaks at a meeting with a bipartisan group of Congressmen.

Swimming pool | Getty Images News | Getty Images

The issue can also be controversial within the European Union, where different member states levy different corporate tax rates and thereby attract well-known companies. Ireland’s tax rate, for example, is 12.5%, while France’s can be up to 31%.

In an April speech, Irish Treasury Secretary Paschal Donohoe said smaller nations should have lower tax rates because they don’t have the same scalability as larger economies, the Guardian reported.

The world’s most powerful economies have been arguing over taxation for some time, especially amid plans to tax digital giants more heavily.

Under former President Donald Trump, the United States vehemently opposed digital tax initiatives in various countries and threatened to impose trade tariffs on countries that were planning to tax US technology companies.

Some large companies around the world responded positively to the agreement on Saturday. Nick Clegg, Facebook’s vice president of global affairs, tweeted that the company welcomed the G-7 tax regime.

“We want the international tax reform process to be successful, and we recognize that this could mean Facebook pays more taxes in other places,” Clegg wrote.

Google spokesman Jose Castaneda told CNBC in a statement that the company supports efforts to update international tax rules. “We hope that countries will continue to work together to ensure that a balanced and lasting deal is reached soon,” he said.

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Election in East Germany Will Take a look at the Far Proper’s Energy

BERLIN – Five years ago, the nationalist alternative for Germany shook the country’s traditional parties when it landed in front of Chancellor Angela Merkel’s conservatives in the regional elections in the eastern federal state of Saxony-Anhalt, an ominous omen for the growing attraction of the extreme right .

This Sunday, the voters in Saxony-Anhalt will be at the polls again, and the result of this state election, which is only three months before a nationwide election, will be examined whether a nationwide weakened AfD can keep the voters in one of the regions, in which it has shown itself to be strongest.

While much of the Saxony-Anhalt competition is unique to the region and focuses heavily on local issues such as schools and economic restructuring, a strong performance by the AfD – which rode a wave of anti-immigration in 2016 – could be Armin Laschet. Give the chairman of the Christian Democrats a headache from Ms. Merkel. Mr Laschet, who wants to take over from her in the Chancellery, has had a tough time getting through in the former federal states.

“A strong performance by the Christian Democrats would take Mr. Laschet the hurdle and strengthen his position in the national competition,” said Manfred Güllner, head of the political opinion research institute Forsa-Institut.

At the same time he admitted: “If the AfD would do as well as the Christian Democrats, that would have an impact on the Bundestag vote.”

In the midst of an election campaign that was largely conducted online due to pandemic restrictions, Mr Laschet visited the state’s mining region last weekend. He stressed the need for time and investment to successfully move away from coal and promised to provide similar support as his native North Rhine-Westphalia did when it phased out coal.

The effort may have been worth it: A survey published on Thursday showed 30 percent support for his party in Saxony-Anhalt, a comfortable seven percentage point lead over the AfD, which is known by its German initials and currently has 88 seats in the German parliament.

If this lead holds, it could strengthen Mr. Laschet’s reputation, as the election campaign for the September 26 elections begins in earnest despite a bloody battle for the candidacy for chancellor against a rival from Bavaria.

In 2016, Germany prepared for the arrival of more than a million migrants in the previous year and Saxony-Anhalt was struggling with the threat of unemployment. While pollsters had predicted that the AfD, which after it was founded in 2013 to protest against the euro, would easily get seats in the state house, no one expected it to come in second and more than 24 percent support by the two million voters in the region.

Since then, Alternative für Deutschland has swung even further to the right, drawing the attention of the country’s domestic intelligence service, which has placed the AfD leadership under scrutiny over concerns about its anti-Semitic, anti-Muslim statements and links with extremists. The state parties of the AfD in Brandenburg and Thuringia are also being scrutinized, an attempt to monitor the federal party has been put on hold until the outcome of an appeal.

The AfD in Saxony-Anhalt has “become very strong despite the various chaotic and dubious scandals,” said Alexander Hensel, political scientist at the Institute for Democracy Research at the University of Göttingen, who studied the rise of the party in the region. “Instead of breaking up, they have consolidated and become an increasingly radical opposition force.”

The continued support for the alternative for Germany in places like Saxony-Anhalt has split many mainstream conservative conservatives over whether the Christian Democrats should be willing to form a coalition with the far-right party if necessary.

Mr. Laschet has made his opinion clear in the last few days. “We don’t want any kind of cooperation with the AfD at any level,” he said in an interview with Deutschlandfunk.

But in view of the wrangling over the future direction of the CDU after 16 years under Merkel’s largely centrist leadership, some members of the party’s right flank see their exit as an opportunity to move more to the right.

In December, the conservative governor of Saxony-Anhalt, Reiner Haseloff, a Christian Democrat who is running for another term, dismissed his interior minister because he had promised the possibility of a minority government supported by the AfD.

Mr Haseloff has based his campaign on the promise of stability as the country begins to emerge from the pandemic, with promises to help improve living standards in rural areas, many of which do not have enough teachers, health professionals and police officers.

Saxony-Anhalt has the oldest population in all of Germany, which reflects the number of young people who left the country in the painful years after the reunification of East and West in 1990.

While the state has benefited from the recent government’s attempt to create jobs in less populated areas, including through the establishment of several federal agencies in Saxony-Anhalt, the region’s standard of living is still lagging behind those in similar regions in the former Federal Republic of Germany said Haseloff.

“There are still clear differences between East and West, not only in the distribution of federal offices,” said Haseloff this week before an annual meeting that was about more regional equality.

This time, the alternative for Germany campaigned for a rejection of the federal government’s policy to curb the spread of the corona virus. “Freedom instead of Corona madness” is written on one of his posters and shows a blue-eyed woman with a tear that rolls to the edge of her protective mask.

For the other parties, both the Social Democrats and the Left are in the 10 to 12 percent range, largely unchanged from four years ago.

Both the Free Democrats and the Greens are expected to roughly double their popularity from 2016, which could make it easier for Haseloff to build a government when he returns to office. Analysts said regional wins for them are unlikely to have a major impact on the national race.

“Saxony-Anhalt is a very special situation, they come from a unique history,” says political scientist Hensel. “But regardless of whether the Greens get 10 percent or the FDP 8 percent of the vote, a quarter of the voters support the AfD. You should definitely pay attention to that. “

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World News

As electrical automobile gross sales surge, discussions flip to noise and security

Martin Pickard | Moment | Getty Images

Hyperloop, hydrogen-powered trains and air taxis. As the 21st century progresses, the way people get from A to B is on the cusp of a major change driven by design and innovation.

While the above technologies may still be a few years away from widespread adoption, that doesn’t mean the change isn’t already underway.

Around the world, national and local governments are trying to reduce emissions and improve air quality in cities, with many betting on a growing sector: battery electric vehicles.

There is undoubtedly a dynamic behind the industry. According to a recent report by the International Energy Agency, around 3 million new electric cars were registered last year, a record and an increase of 41% compared to 2019.

Looking ahead, the IEA says the number of electric cars, buses, vans and heavy trucks on the roads – its forecast doesn’t include two- and three-wheel electric vehicles – is projected to reach 145 million by 2030.

If governments step up efforts to meet international energy and climate goals, the global fleet could grow even further, reaching 230 million by the end of the decade.

A changing world

As the number of electric vehicles on the world’s roads increases, society must adapt.

Extensive charging networks, for example, need to be rolled out to meet increased demand and to dispel persistent concerns about “range anxiety” – the idea that electric vehicles cannot make long journeys without losing power and getting stranded.

Another area in which we will notice changes concerns noise: electric vehicles are not only emission-free, but also significantly quieter than their diesel and gasoline cousins.

Read more about electric vehicles from CNBC Pro

This means less noise pollution in urban areas – a clear thing – but it also poses a potential challenge for other road users, especially those with vision problems.

“It can be very difficult for blind or visually impaired people to judge traffic,” Zoe Courtney-Bodgener, Policy and Campaigner for the UK’s Royal National Institute of Blind People, told CNBC in a telephone interview.

Courtney-Bodgener explained that more and more “quiet” modes of transport are being used, using the example of bicycles and larger electric and hybrid vehicles.

“If you can’t always see these vehicles reliably or with your eyesight, the sound is even more important,” she said.

“And if the noise is not there or is not loud enough to reliably detect these vehicles, there is of course a risk, because … you cannot reliably know when a vehicle is approaching you.”

The law of the land

It should be noted that laws and technology have been put in place around the world to address this problem.

For example, in the European Union and the United Kingdom, all new electric and hybrid vehicles must use an audible vehicle warning system, or AVAS for short, from July 1st. This will build on and expand on the previous regulations that came into force in 2019.

According to the rules, the AVAS should step in and make noises when the speed of a vehicle is less than 20 kilometers per hour (about 12 miles per hour) and when it is reversing.

According to a 2019 UK government statement, the sound can “be temporarily turned off by the driver if necessary”.

According to the EU regulation, the noise generated by the AVAS should “be a continuous tone that informs pedestrians and other road users of a vehicle that is in operation”.

“The noise should easily reflect vehicle behavior,” it adds, “and should sound similar to a vehicle of the same category equipped with an internal combustion engine.”

RNIB’s Courtney-Bodgener told CNBC that while her organization was “happy” that the AVAS policy had been translated into UK law, it had not “done everything we asked of it”.

She went on to explain how the speed at which the AVAS turns on might need to be increased to 20 or 30 miles per hour.

“We are not convinced that if … a vehicle is traveling at a speed of 21 miles per hour, for example, it would generate enough noise on its own to be reliably recognized by noise.”

Another area of ​​concern concerns older vehicles. “There are already many, many electric and hybrid vehicles that were produced before this legislation came into effect that did not have the sound technology,” she said.

There are currently no plans to retrofit these, she added. “This is worrying because there are already thousands of vehicles on the UK’s roads that do not have AVAS technology.”

From the industry’s point of view, it appears to be satisfied with the existing regulations. In a statement emailed to CNBC, AVERE, The European Association for Electromobility, told CNBC that it supported the “current legislative status quo”.

“The limit of 20 km / h is sufficient, as other noises – especially rolling resistance – take over at this level and are sufficient for pedestrians and cyclists to hear approaching electric and hybrid vehicles,” added the Brussels organization.

“In fact, the requirement of additional noise above 20 km / h would deprive European citizens of one of the main advantages of electrification: lower noise levels at city speeds.”

Noise pollution can indeed be a serious problem. According to the European Environment Agency, over 100 million people in Europe are “exposed to harmful environmental noise”. The agency classifies road traffic noise as “a particular public health problem in many urban areas”.

Regarding the need for modernization of older cars, AVERE said: “Only a very small proportion of the electric vehicles on European roads would be subject to retrofitting obligations, as many existing vehicles were already equipped with AVAS in anticipation of the new ones and that the rules were introduced in good time to meet the expected mass consumption of To support electric vehicles in the years to come. “

Should it emerge that “additional requirements” are needed, AVERE is ready to work with policy makers.

The future

The discussions and debates on this topic are likely to go on for a long time and it is clear that a balance will have to be found in the future.

Whether you think current legislation goes far enough or not, the fact is that these types of systems will become an increasingly important feature of urban travel in the years to come.

Robert Fisher is Head of EV Technologies at the research and consulting company SBD Automotive.

He emailed CNBC that tests the company carried out had “shown AVAS to be quite effective,” but added that if a pedestrian is unfamiliar with the noise, “may not automatically do so with presence of an approaching “Connect Vehicle.”

“Currently, AVAS is mainly hampered by inconsistent legislation and a lack of innovation,” he said, and dared to look positively into the future.

“With the move away from the internal combustion engine, this technology has the potential to become an integral part of a car’s character, a point of brand differentiation and the ability to save lives.”

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World News

Roman Protasevich TV Confession Was Coerced, Household Says

ST. PETERSBURG, Russia – President Vladimir V. Putin insisted on Friday that Russia wants to be “neutral” on the events in Belarus in order to distance his country from the uproar over the forced diversion of a passenger plane with a Belarusian dissident on board.

Putin’s comments at Russia’s premier economic conference in St. Petersburg came the day after arrested dissident Roman Protasevich appeared on Belarusian state television with bruises on his wrists. Mr Protasevich confessed to organizing anti-government protests – an interview his family, supporters and Western officials said were conducted under duress.

“Belarus has many problems, domestic ones, and we really want to take a neutral position,” said Putin.

Putin’s reluctance to support Belarusian leader Aleksandr G. Lukashenko, Russia’s closest ally, showed the pressure on Lukashenko’s crackdown and arrest of Mr Protasevich. While Putin fears that Lukashenko’s fall could be a geopolitical loss for Russia, the unpredictable and brutal repression of the Belarusian leader is also becoming a problem for the Kremlin.

On Friday, Western officials condemned the interview with Mr Protasevich, and the European Union continued the previously planned sanctions prohibiting Belarusian airlines from flying over EU territory. Austrian Chancellor Sebastian Kurz attended the St. Petersburg conference by video link with Putin and called the “forced confession” by Protasevich something that “we do not consider to be acceptable in any way”.

For Putin, Belarus is an important ally, perhaps the last post-Soviet country in Europe to steadfastly cling to Moscow. When hundreds of thousands of Belarusians rose against Lukashenko last summer, Putin’s support was crucial in keeping him in power.

But Putin also has a strained relationship with Lukashenko, and he seems keen to prevent the excitement over the diversion from disrupting his summit with President Biden, due to take place on June 16.

When asked if he believed Mr Lukashenko’s allegation that the Ryanair plane that Mr Protasevich flew in was crashed because of a bomb threat, Mr Putin replied: “I do not want to evaluate what happened to that plane. To be honest, I don’t know. “

He also denied that Russia knew in advance of the operation by Belarus to crash the commercial flight carrying Mr Protasevich between the capitals of two EU countries, Greece and Lithuania.

Understand the situation in Belarus

    • Belarus in the spotlight. The emergency landing of an airliner on Sunday is seen by several countries as a state hijacking demanded by their strong President Aleksandr G. Lukashenko.
    • Election results and protest. It came less than a year after Belarusians faced police violence in protesting the results of an election that many Western governments mocked as sham.
    • Forced plane landing. The Ryanair flight from Athens to Vilnius, Lithuania, was diverted to Minsk to arrest 26-year-old journalist Roman Protasevich.
    • Who is Roman Protasevich? In a video released by the government, Mr. Protasevich confessed to participating in organizing “mass riots” last year, but friends say the confession was made under duress.

Despite his lukewarm comments, Putin showed no sign of withdrawing support for Lukashenko, who claims the protests against him have been manipulated by the West. Based on the topics of conversation on Russian state television, Mr Putin compared the protests in Belarus to the siege of the Capitol in Washington on January 6 and criticized the West for condemning the violence of the riot police in Belarus but not the arrests of the Capitol rioters in Belarus The United States.

“Everything is up to the people of Belarus,” said Putin. “Over there it’s all assessed in one light and tone, and then the same thing happens in the States, but everything is assessed differently.”

To underscore the continued support of Russia, the head of the Russian foreign intelligence service SVR met on Thursday with his counterpart in Belarus, who heads an espionage agency called KGB West, ”reported the official Belarusian news agency.

Mr Protasevich, the 26-year-old dissident journalist, is the former editor of NEXTA, an opposition account on the Telegram social network. Just last month he called Lukashenko a “dictator” and compared him to Hitler.

On May 23, Lukashenko climbed into a fighter jet to intercept the Ryanair flight – a move condemned by the international community and leaders across Europe – and after landing in Minsk, security forces kidnapped Mr Protasevich and his girlfriend. He is being held in a KGB prison, said his father and lawyer.

In the interview broadcast on Thursday evening, conducted by the head of a Belarusian state television broadcaster, a tearful Mr. Protasevich appeared worried and exhausted. He said that he “undoubtedly” respected Mr. Lukashenko before complimenting him.

European leaders condemned Mr Protasevich’s interview. A spokesperson for Chancellor Angela Merkel called the confession “totally unworthy and untrustworthy,” and British Foreign Secretary Dominic Raab said on Twitter that “those involved in the filming, coercion and conducting the interview must be held accountable “.

On Friday, as expected, the European Union officially implemented some of the sanctions its leaders agreed last week. It banned all Belarusian airlines from flying over the block’s airspace and landing at airports on its territory. Individual European countries had already taken similar measures.

“The EU member states will therefore be obliged to refuse aircraft operated by Belarusian airlines to land, take off or fly over their territory,” the EU Council said in a statement.

Mr Protasevich said in the interview that he organized unauthorized mass rallies, a charge punishable by up to three years in prison. He said he chose to do the interview voluntarily and that he was not put on any makeup to hide the traces of torture.

His blatant admission, which some observers likened to Stalin’s show trials in the 1930s, described the Belarusian opposition as worms who lead luxurious lifestyles on those countries’ payrolls in Lithuania and Poland. He also referred to his opposition colleagues as accomplices in his crimes and gave specific names.

Mr Protasevich’s turnaround is not unusual in Mr Lukashenko’s Belarus. Several opposition and media representatives have made similar abrupt turns in their public statements after spending time in Belarusian prisons. Yuri Voskresensky, a former political prisoner, described his own imprisonment as “hell”.

Speaking to TV Rain, an independent Russian television station, Mr Protasevich’s father, Dmitri Protasevich, called the interview “a propaganda video”.

“It is very difficult for him to say these things and I am sure that he was compelled and intimidated,” he said. “He’s been under pressure for more than a week.”

Dmitri Protasevich said Belarusian law enforcement agencies could also put pressure on his son through his girlfriend Sofia Sapega, who is also from the KGB. is being held

“She could be held in the cell next to him,” he said.

Conditions in such prisons are bleak, say former inmates. The Russian citizen Yegor Dudnikov was arrested by Belarusian law enforcement agencies in early May and has been in a KGB prison since then. In a letter to his lawyer, he described that he had been beaten and tortured to force a confession.

Mr Dudnikov, who said he was a technical specialist who helped opposition activists with videos, described being forced to make a statement to the state television station interviewing Mr Protasevich.

“On May 25, they took me to a room where they gave me answers that had already been prepared by the television crew,” he said in a letter to the Russian newspaper Novaya Gazeta. “They gave me time to memorize them – on May 28th, television people came and made the recording.”

But Mr Putin, speaking at a personal international conference that brought together thousands of delegates despite the ongoing pandemic, said he cared little about Mr Protasevich’s plight.

“I do not know this novel Protasevich and I do not want to know him,” said Putin.

And Belarus was not on the list of topics, Putin said he plans to discuss with Mr Biden when the two meet in Geneva this month. Those issues, Putin said, would include strategic stability and arms control, international conflict, counterterrorism, the pandemic and the environment. Putin said Moscow and Washington needed to improve their relations from today’s “extremely low levels” but maintained his often-voiced view that the United States was solely responsible for the tensions.

“We have no disagreements with the United States,” Putin said. “They only have one difference of opinion: they want to stop our development, they talk about it publicly. Everything else flows out of this position. “

Anton Troianovski reported from St. Petersburg and Ivan Nechepurenko from Moscow. Monika Pronczuk contributed the reporting from Brussels.