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Ukraine Claims Extra Floor in Northeast and South

More than 40 local elected officials across Russia signed a two-sentence petition Monday that ended with: “We demand Vladimir Putin’s resignation as President of the Russian Federation!”

The petition, pushed by opponents of the Ukraine invasion, had no practical effect and was flatly ignored in Russia’s state-controlled media. But it was remarkable in its very existence, showing that despite the Kremlin’s extraordinary crackdown on dissidents, the victories of Ukraine’s counteroffensive have given new heart to opponents of President Vladimir V Putin – and his supporters are looking for someone else to blame be able.

Pro-war advocates and politicians have referred to military leadership or high-ranking officials, saying they did not fight the war with sufficient determination and competence, or did not provide Mr Putin with all the facts. Longtime Kremlin critics have used this discord and Russia’s frontline backlash to risk speaking out against Mr Putin.

“There is now hope that Ukraine will end this war,” said Ksenia Torstrem, a member of the St. Petersburg City Council who helped organize the petition, calling Ukraine’s progress an “inspiring factor” for it. “We decided that we have to put pressure on from all sides.”

On Russian state television, where criticism of the Kremlin is rare, pro-war advocates are increasingly pointing fingers at what they describe as a disorganized and insufficiently concerted invasion; others bring up the idea of ​​asking for peace. Amid mounting anger over the embarrassing withdrawal of Russian troops from more than a thousand square miles of northeastern Ukraine, a senior lawmaker said in an interview that an “urgent adjustment” to the war effort was needed.

In a telephone interview Monday, that lawmaker, Konstantin F. Zatulin, a senior member of parliament in Putin’s United Russia party, detailed the deployment.

Mr Zatulin described the withdrawal of Russian troops as “very serious damage to the very idea of ​​this particular military operation”, using the term the Kremlin has chosen for the war. But he also warned that if criticism of the war effort spiraled out of control from across the political spectrum, there could be unforeseen consequences, citing the 1917 Russian Revolution and the 1991 collapse of the Soviet Union.

“It must be stressed that this criticism should not be exaggerated,” he said. “Otherwise it could trigger an uncontrollable reaction.”

Recognition…Gavriil Grigorov/Sputnik, via Agence France-Presse – Getty Images

Mr Zatulin insisted that any optimism from people hoping Mr Putin would be ousted was “very premature”. Ukraine’s achievements, he said, could prompt the Kremlin to escalate its war effort to try and inflict a decisive defeat on Ukraine, although he added that he did not expect it to mean a “nuclear war”.

“What now appears to some as a success of the Ukrainian side could actually lead to the last drop that will lead to the start of a real war,” said Zatulin. “Given that Russia really has not used the full power of its capabilities, there is nothing left to do but demonstrate that power.”

There is no evidence that Putin’s position in power is weakening, and the Kremlin said Monday the invasion would “continue until initial objectives are met.”

Nevertheless, there were increasing signs that Russia’s elite was unsettled by the army’s withdrawal and unsure of how to proceed.

A member of the lower house of parliament, Mikhail Sheremet, told a Russian news agency that the military in Ukraine will not succeed “without full mobilization”. It was an implicit criticism of Putin’s refusal to go through with a nationwide draft, a move Russian advocates of escalating the war effort have long called for.

The leader of a pro-Putin party, Sergei Mironov, praised Sunday night’s strikes against Ukraine’s infrastructure targets, which left parts of the country without power, but lamented that they “should have been carried out two to three months ago”.

And grumbling continued on the Telegram social network, where Russian military bloggers pro-war have garnered a huge following. “Stop whining,” posted Yevgeny Poddubny, a war correspondent for Russian state television, referring to those worried about an escalating war.

But a senior Member of the House of Lords, Andrei Klimov, tried to buck the voices calling for all-out war, telling reporters he saw no “need” for mobilization or the imposition of martial law.

Recognition…Nanna Heitman for the New York Times

Opponents of Mr. Putin were heartened by the discord.

“Many hope that something will finally break,” said Ivan I. Kurilla, a historian at the European University in St. Petersburg and a critic of Putin, in a telephone interview. “We’re probably wrong, it’s probably not time yet, but since everyone has been waiting for something to crack for half a year, this hope is very strong.”

After February’s invasion, Mr Putin spearheaded the most crackdown on dissidents since he came to power two decades ago, signing a censorship law that criticized the war effort — or even called it a war rather than a “special military operation.” – a potential crime. Thousands of journalists, activists and others fled the country, while nearly all prominent independent news media still operating in Russia were forced to shut down. Leading opposition figures who refused to flee were arrested.

When a group of local councilors from Putin’s hometown of St. Petersburg released a statement last week calling for the president’s impeachment on charges of treason, it was a shocking move in an environment where fears of imprisonment have driven almost all criticism Mr. Putin underground.

Some of those councilors now face fines for “discrediting” the military and government, but in Moscow, members of another local council followed suit, calling for Mr Putin’s resignation. And over the weekend, Ms. Torstrem, the representative of St. Petersburg, wrote in a Telegram chat group to other opposition local MPs: “I also want to do something.”

She is convinced to speak out, she said, both from colleagues who have already published anti-Putin statements and from the military advances of Ukrainian troops. She also noted the dissatisfaction in the pro-Putin camp, saying that this put the Kremlin in a particularly delicate position.

Recognition…Juan Barreto/Agence France-Presse — Getty Images

Ms Torstrem, who is 38, helped draft the petition issued on Monday calling on Mr Putin to resign. She was careful not to mention the war, to avoid any of the signatories becoming vulnerable under laws criminalizing criticism of it. The petition only said that Mr Putin’s actions “damage the future of Russia and its citizens”.

The petition had 19 signatories from Moscow and St. Petersburg when it was posted to Twitter on Monday morning. By the end of the day, the number had grown to over 40, including community leaders from the remote Siberian city of Yakutsk and from Samara on the Volga.

She acknowledged that it was unclear how the petition could in practice help bring about Mr Putin’s resignation. But one signatory, Vasily Khoroshilov, a Moscow city MP, said the idea was to send a message to powerful opponents of Mr Putin that they had support in the Russian public.

“The radical patriots have also begun to doubt the rightness of the path they have taken,” said Mr. Khoroshilov, 38, in a telephone interview. “Some forces at the highest levels of power might act decisively if they see popular support.”

Mr Putin’s core supporters appear to be focused on the notion that any troubles in the war are not his fault but that he was misled by senior officials or the military leadership.

That was the message from Ramzan Kadyrov, the strong ruler of southern Russia’s Chechnya region. He posted a rambling voice message to his Telegram account over the weekend, warning that he would be forced to “speak to the Department of Defense leadership and the leadership of the country to explain to them if the military fails to finalize its strategy” today or tomorrow” would change the real situation on the ground.”

Recognition…Genghis Kondarov/Reuters

Mr Zatulin, the senior lawmaker, said many in Russia believed “Putin was misinformed and doesn’t know everything, he was deceived”.

“The president himself retains his authority and is the basis of stability at this moment,” said Mr. Zatulin.

But, he warned, “it’s clear that every system has its limitations.”

Alina Lobzina and Ivan Nechepurenko contributed to the coverage.

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World News

Jacob Zuma of South Africa Is Granted Medical Parole

Jacob Zuma, the former president of South Africa, has been released on medical parole a little over two months after he was ordered imprisoned on contempt charges, triggering violent protests that devolved into deadly clashes and looting.

The government’s department of correctional services said in a statement on Sunday that Mr. Zuma’s parole had been “impelled by a medical report,” but it provided no details about the nature of his illness. Mr. Zuma was admitted to a hospital to undergo the first of several medical procedures last month, the department said then.

Mr. Zuma will serve the remainder of his 15-month sentence under supervision in the community corrections system, the department said, adding that he would be subjected to “supervision until his sentence expires.” But it gave no details about where exactly he would serve his parole.

His release comes after his staggering downfall as a once-celebrated freedom fighter who fought against apartheid alongside Nelson Mandela and was a powerful figure in the governing African National Congress.

Mr. Zuma, 79, was forced to step down in 2018 after being rejected by the A.N.C., threatened by a no-confidence vote in Parliament and abandoned by millions of voters. He was taken into custody on July 7 after South Africa’s highest judicial body found him guilty of contempt for refusing to appear before a commission investigating sweeping corruption allegations during his nine years as president.

John Steenhuisen, the leader of the Democratic Alliance, South Africa’s opposition party, said in a statement on Sunday that Mr. Zuma’s medical parole was “entirely unlawful” and made a “mockery” of the country’s correctional law.

“Jacob Zuma publicly refused to be examined by an independent medical professional, let alone a medical advisory board,” Mr. Steenhuisen said, adding that such an assessment was required under law in order for a prisoner to be granted medical parole.

Under South Africa’s correctional law, those eligible to be released for medical reasons include terminally ill inmates serving 24 months or less, those who are physically incapacitated and inmates suffering from an illness that severely limits their daily activity or capacity to care for themselves. The risk of reoffending must also be low.

“We appeal to all South Africans to afford Mr. Zuma dignity as he continues to receive medical treatment,” the correctional department said.

A foundation named after Mr. Zuma, which posted on Twitter that it welcomed the decision, said that he was still in the hospital.

But the One South Africa Movement, which focuses on policy solutions to South Africa’s development challenges, said in a statement on Twitter that the government’s decision had been questionable and lacked transparency.

When Mr. Zuma was detained in July, supporters denounced the arrest, arguing that he had been treated unfairly and that sentencing him to prison without a trial was unconstitutional. Some called for a shutdown of his home province, KwaZulu-Natal.

Protests led to several deaths, tens of millions of dollars in damage and the disruption of the nation’s coronavirus vaccination program.

President Cyril Ramaphosa deployed the military to curb the civil unrest, describing it as some of the worst in the country’s history.

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World News

Indian vs. Black: Vigilante Killings Upend a South African City

Later that day, the family saw pictures and videos of their bloody and seemingly lifeless bodies on social media.

An Indian homeowner in Phoenix, who spoke anonymously for fear of retaliation, said he saw the two men on the street long after the attack. They were still alive.

He stopped two police cars, both of which stopped briefly before spinning off. A third police vehicle stopped, called an ambulance, and waited for it to arrive before leaving, he said.

However, the privately owned ambulance only treated the men briefly before leaving them alive on the side of the road, the local resident said. The next day a hearse came to pick her up. Their bodies were cremated, family members said.

A relative, Thulani Dube, said they didn’t deserve to be killed even if they looted.

At the cousins’ funeral, in a tent in a spacious field with brown grass behind a family house in KwaMashu, loved ones cried and boiled, but also thought of the good times: Mlondi, a 28-year-old father of two, just had his celebrated first wedding anniversary. Delani, 41, a world-traveling dance instructor, was preparing for a trip to Russia.

Still, they struggled to understand what had happened – and what it meant for their country.

“I can’t sleep thinking about what I saw in the morgue,” said Mr. Dube, who identified their bodies. “Sometimes the smell fills my nose.”

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World News

VP Kamala Harris talks South China Sea in Vietnam amid U.S.-China rivalry

U.S. Vice President Kamala Harris arrived in Hanoi, Vietnam on August 24, 2021. Harris is on an official trip to Southeast Asia to gather regional allies while the US’s global leadership status is being marred by the aftermath of the aftermath in Afghanistan.

Evelyn Hockstein | AFP | Getty Images

Strategic competition between the US and China came to the fore when Vice President Kamala Harris opened the second leg of her official visit to Southeast Asia in Vietnam.

Harris told Vietnamese officials in the capital Hanoi on Wednesday that it was necessary to pressure Beijing to take action in the South China Sea. Vietnam is a vocal opponent of China’s enormous territorial claims in the strategic waterway.

“We need to find ways to put pressure and increase pressure on Beijing to comply with the United Nations Convention on the Law of the Sea and challenge its bullying and excessive maritime claims,” ​​Harris said.

The United Nations Convention on the Law of the Sea, or UNCLOS, is an international treaty that defines the rights and obligations of nations in space. It forms the basis of how international courts, such as the International Tribunal for the Law of the Sea, resolve maritime disputes.

Harris’ comment followed her speech in Singapore on Tuesday in which she said Beijing had continued to “force, intimidate and make claims on the vast majority of the South China Sea.”

The South China Sea is a resource-rich waterway that is a major merchant shipping route, carrying trillions of dollars of world trade every year. China claims almost all of the sea – parts of it have has also been claimed by some Southeast Asian countries such as Vietnam, Malaysia and the Philippines.

In 2016, a tribunal at China’s Permanent Arbitration Court dismissed the lawsuit as legally unfounded – a ruling Beijing ignored.

In answer At Harris’ speech in Singapore, Chinese state media accused the American vice president of attempting to drive a “wedge” between China and its Southeast Asian neighbors.

Prior to arriving in Vietnam on Tuesday evening, Vietnamese Prime Minister Pham Minh Chinh and the Chinese Ambassador to Vietnam held a previously unannounced meeting, Reuters reported. During the meeting, the Chinese ambassador pledged to donate two million doses of Covid-19 vaccine to Vietnam, according to the report.

“Biggest” geopolitical competition

While Harris was cautious about meeting Beijing, political analysts and former diplomats said there was little doubt their trip was part of US strategy to compete with China.

The rivalry between the US and China is currently the “biggest” geopolitical issue, said Kishore Mahbubani, a prominent former Singapore diplomat.

“So Vice President Kamala Harris’ visit is clearly part of the competition between the US and China,” Mahbubani, now a distinguished fellow at the National University of Singapore’s Asia Research Institute, told CNBC’s Street Signs Asia on Wednesday.

“Southeast Asia is going to be a very, very critical arena for this competition,” he said.

His opinion is shared by Curtis Chin, a former US ambassador to the Asian Development Bank. Chin said the rise of China was “a major foreign policy challenge” for the US and much of the world, even if the aftermath in Afghanistan continues.

The United States must have its eyes on Southeast Asia, and indeed much of Asia, not just the countries with which we have formal alliances.

Curtis Chin

Senior Fellow, Milken Institute

US President Joe Biden has been criticized for handling the withdrawal of US forces from Afghanistan. The issue overshadowed Harris’ trip to Southeast Asia as reporters focused their questions on Afghanistan at the Vice President’s joint press conference with Singapore Prime Minister Lee Hsien Loong on Monday.

“The United States needs to have its eyes on Southeast Asia, and indeed much of Asia, not just the countries we have formal alliances with,” Chin, a senior fellow at the Milken Institute, told CNBC’s Squawk Box Asia on Wednesday.

“And when I say all things considered, it’s not just diplomatic and military engagements, but real business engagements – that is what the United States needs to focus on,” he added.

Read more about developments in Afghanistan:

In her talks with Singapore’s Prime Minister, Harris discussed issues ranging from supply chains to climate change and the pandemic.

It announced in Vietnam that the US will donate an additional one million doses of Pfizer’s Covid vaccine – bringing the total US donation to the Southeast Asian country to six million doses. Harris also opened the new Southeast Asia Regional Office of the US Centers for Disease Control and Prevention in Hanoi.

The Vice President is due to end her trip to Southeast Asia on Thursday.

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World News

South African Army Is Referred to as In to Quell Violence

JOHANNESBURG – Government officials in South Africa on Monday deployed the military to quell the increasingly destructive unrest that has gripped parts of the country in recent days, causing multiple deaths and tens of millions of dollars in damage to businesses and highways and closings Transport services.

The volatility began last week with demonstrations in eastern KwaZulu-Natal province over the imprisonment of Jacob Zuma, the former South African president, and has turned into looting, arson and gunfire, with chaos spreading to Johannesburg, the nation’s financial hub.

The looming unrest represents a deepening crisis for the country’s leadership as President Cyril Ramaphosa and his ruling African National Congress face deep divisions within their ranks and social upheaval in a nation marked by high unemployment and a devastating wave is rocked by coronavirus infections.

Mr Ramaphosa has been criticized for his silence in the early days of the riot. “We will not tolerate any criminal activity,” he said during a national address on Sunday evening that was mainly intended to focus on the restrictions of Covid-19.

“Although at this moment there are those who can be hurt and angry,” he said, “there can never be any justification for such violent, destructive and disruptive acts.”

On Monday, much of the destruction appeared to have little to do with anger over Mr. Zuma’s detention, government officials said, but instead appeared to be opportunistic lawlessness. Some analysts and activists said it was an uprising that arose out of deeper problems of poverty and the lack of opportunities in the country.

Pictures on local news channels showed shopping malls burning, hundreds of people leaving stores selling items such as clothing and household appliances, and police followed and arrested anyone they could.

“While these actions are described by some as a form of political protest, they are now clearly criminal acts,” said Jessie Duarte, assistant secretary general of the African National Congress, during a press conference Monday.

The riots would hurt the poor and the marginalized the most, Ms. Duarte said, by destroying businesses that employ people and disrupting public services and transportation that workers rely on to get to their jobs.

Parts of important highways were closed after vandals burned trucks in the middle of them. As of Monday morning, there were 219 arrests and six dead nationwide, according to police, although the details of these deaths are still under investigation.

Mr Zuma, 79, was sentenced to 15 months in prison by the Constitutional Court, the country’s highest judicial authority, for refusing to appear before a commission investigating widespread corruption allegations during his tenure as President from 2009 to 2018. He and his supporters sharply criticized the decision on the grounds that it had been treated unfairly and that a prison sentence without trial was unconstitutional.

Mr Zuma initially refused to go to prison as ordered by the court, but after lengthy negotiations with the police he finally gave in at the last moment and filed a complaint last Wednesday. His supporters, who vowed never to allow his arrest, then demanded the closure of his home province of KwaZulu-Natal. One of Mr. Zuma’s daughters, Duduzile Zuma-Sambudla, posted pictures of the destruction on Twitter with messages of praise.

Amid the first flare-ups of the unrest in the streets, Mr. Zuma’s eponymous foundation said on Twitter that it had “noticed the reactive, sincere anger of the people”. The Post also indicated that people were provoked by Mr. Zuma’s detention.

Mzwanele Manyi, a spokesman for the foundation, said in an interview that she could not be blamed for the upheavals spreading across South Africa.

“We are not in a position to tell people how to react to the given situation,” he said, adding that Mr. Zuma was fighting the decision in court.

The Constitutional Court heard arguments on Monday in a motion from Mr Zuma for the waiver of his arrest warrant.

The imprisonment of Mr Zuma, a populist who has drawn a passionate following, heightened tensions between a loyal faction within the African National Congress and one loyal to Mr Ramaphosa, the current party leader. Zuma allies have tried to portray the current unrest as a failure of Mr. Ramaphosa’s leadership.

Ms. Duarte said the riots were orchestrated by people within the ANC to delegitimize and sabotage the current leadership. The party gave the police the names of people to investigate, she said.

“We can’t deny that this has been brewing,” she said. “It is unfortunate because anger and frustration can never induce you to do so much damage that has already been done.”

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Health

South Korea on Covid-19 herd immunity and journey bubble packages

Customers wearing protective masks pay for their purchase at a vegetable stall in Mangwon Market in Seoul, South Korea on Tuesday, February 9, 2021.

Bloomberg | Bloomberg | Getty Images

South Korea wants to open up its economy and work on travel bubble programs as it has been relatively successful in controlling the spread of Covid-19, its deputy prime minister told CNBC in an exclusive interview.

The government plans to boost consumption and further boost the economy in the second half of this year – and steps are being taken to achieve that goal, said Hong Nam-ki, who is also South Korea’s economy and finance minister.

“I would say the current government has been relatively successful at both infection control and vaccination,” he told CNBC’s Chery Kang on Friday, according to a CNBC translation of his Korean remarks. “Based on the achievements, the current government now wants to promote economic growth while maintaining such health measures.”

In fact, he said that South Korea is aiming for herd immunity by November, which means the virus will no longer be able to spread rapidly as most of the population is either fully vaccinated or has become immune from infection.

By last week, 30% of the South Korean population had received their vaccinations and Hong says the country can reach 70% by September.

Our plan now is to achieve herd immunity by November – but in my personal opinion we will be able to move the schedule forward.

Hong Nam-ki

South Korea’s Deputy Prime Minister

The country has reported more than 155,500 cases and at least 2,015 deaths as of Monday, according to Johns Hopkins University – numbers that are relatively controlled compared to most Asian countries.

In contrast, India – with the highest number of cases in Asia – officially reported more than 30.2 million cases on Monday, according to Hopkins. Indonesia has 2.11 million cases while the Philippines has nearly 1.4 million case numbers, the data showed.

“Our plan now is to achieve herd immunity by November – but in my personal opinion we will be able to move the schedule forward,” said Hong.

“If the vaccination goes as planned, we believe the Covid-19 situation is under control. Then the measures to support consumption and economic recovery can be carried out without interruption from July onwards.

However, should the pandemic worsen, it would be difficult to push these growth-promoting measures, he warned.

Travel bubble?

The South Korean government plans to support travel bladder programs for fully vaccinated people, Hong said. A travel bubble is a pre-agreed agreement with another country that provides that travelers from both countries are allowed quarantine trips if certain conditions are met – such as negative Covid tests or full vaccinations.

However, whether the travel bubble will pop depends on vaccination progress and conversations with other countries, he said, declining to name those countries.

In early June, the Singaporean newspaper Straits Times reported that South Korea is exploring travel bladders with some countries, including Singapore and Taiwan, to enable quarantine-free travel for vaccinated people.

“I believe that depending on their health status, vaccination rates and the convenience of immigration, more countries will be on the list of countries in demand,” Hong told CNBC.

“I think we need to continue working with private tour operators to investigate the virus situation to decide exactly which countries,” he added.

One initiative that citizens can at least indulge in for the time being could be “flights to nowhere”, a target-free concept that some countries introduced during the pandemic.

“Even if you cannot travel abroad, no landing flights have been offered,” said Hong. “Passengers could fly all the way to Japan, hover over the Japanese sky, and then come back without landing. Lots of people showed interest in it and it was used a lot, ”he said, referring to such flights that were introduced in South Korea last year.

“So if the health situation improves and the vaccination campaign accelerates more strongly, we believe that we are going in (that) direction.”

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South Africa races to halt third Covid wave as its financial outlook improves

A healthcare worker holds a vile containing Pfizer vaccine to be administered on elderly persons at the Bertha Gxowa Hospital in Germiston, on May 17, 2021.

Michele Spatari | AFP | Getty Images

South African economic activity has rebounded quicker than expected in recent months and the rand is the strongest-performing emerging market currency this year, but the country is racing to roll out Covid-19 vaccines as a third wave looms.

In its Financial Stability Review on Thursday, the South African Reserve Bank said the economy was continuing to rebound from a 2020 recession that saw gross domestic product contract by 7%, its steepest decline for over a century.

“Positive data releases, an uptick in global economic activity, robust international trade, elevated commodity prices and improved mobility” led NKC African Economics to upgrade its first-quarter GDP forecast to a 1.4% quarterly expansion, up from a previous forecast of a 3.3% contraction. NKC analysts now expect GDP to grow by 3.1% in 2021.

The industrial sector, particularly mining and manufacturing, has demonstrated positive growth rates on the back of increased global demand and high commodity prices 

“Google Mobility data, which has proven to be a good indicator of economic activity, has improved to its best levels since the coronavirus shock occurred,” NKC senior economist Pieter du Preez highlighted in a note Wednesday.

Third wave risks

The major ratings agencies have all reaffirmed their ratings for South Africa over the past week, but Fitch noted that although the fiscal accounts surprised to the upside on both the fourth quarter of 2020 and first quarter of 2021, the country still faces “substantial risks to debt stabilization.”

S&P also highlighted structural complaints, a lack of economic reforms and a sluggish vaccination drive as hindrances to medium-term growth potential.

Despite the positive surprises thus far, the SARB warned the outlook remains highly dependent on the pace of the vaccine rollout and possible resurgence of the virus, suggesting that the pandemic could last into 2022.

To date, the country has reported a total of over 1.6 million Covid cases, and more than 56,000 deaths, according to data compiled by Johns Hopkins University.

Now, South Africa’s seven-day rolling average of new daily cases is rising, up from its nadir of around 780 in early April to over 3,700 at the end of last week.

Given the scale of the previous hit to economic activity, the government appears reluctant to reimpose stringent virus restrictions, though President Cyril Ramaphosa met with the country’s coronavirus taskforce this week to discuss possible strategies.

South African President Cyril Ramaphosa visits the coronavirus disease (COVID-19) treatment facilities at the NASREC Expo Centre in Johannesburg, South Africa April 24, 2020.

Jerome Delay | Reuters

South Africa has begun working toward its goal to vaccinate 5 million senior citizens by the end of June and 67% of its 60 million population by February. The country has purchased 30 million doses of the Pfizer-BioNTech inoculation and ordered 31 million doses of Johnson & Johnson’s vaccine, both of which have proven effective against the dominant variant circulating in the country.

The central bank also noted the risks posed by an abrupt shift in global financial conditions and the consistently “high and rising level of public debt” in South Africa.

NKC’s du Preez said the impending third wave of Covid-19 will disrupt the economic recovery process. Meanwhile, the government is embroiled in protracted negotiations with unions over its commitment to freezing public sector wages, which du Preez said is also negative for the economic outlook.

“The National Treasury would either be forced to reprioritize expenditure or over-spend on an already large fiscal deficit,” he said. 

“Reprioritizing expenditure would entail reducing funding for critically important sectors in the economy or reducing very much needed infrastructure upgrades.”

The Treasury therefore finds itself “between a rock and a hard place,” du Preez added, since overspending could send out a signal that authorities are not serious about fiscal consolidation.

Roaring rand

Any sign of fading commitment to this austerity drive would exert pressure on the rand, Capital Economics senior emerging markets economist Jason Tuvey highlighted in a recent note.

The rand has soared on the back of higher metals prices, and was trading up at around 13.76 to the dollar by Monday morning. 

However, Capital Economics analysts said in a note Thursday that “the star performance of the rand is unlikely to last as we expect most commodity prices to fall back, and that U.S. long-term yields will begin to rise again, putting renewed pressure on EM currencies.”

“In addition, we think the SARB will not tighten policy as quickly as investors now discount, and that concerns about South Africa’s fiscal situation will eventually resurface.”

Capital Economics anticipates that the rand will weaken to around 15.5 to the dollar by the end of the year.

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World News

Biden Invitations South Korea’s President to White Home in Could

President Biden will meet with President Moon Jae-in of South Korea in Washington on May 21, the White House said Thursday.

“President Moon’s visit will highlight the iron alliance between the United States and the Republic of Korea and the broad and deep relationships between our governments, people and economies,” White House press secretary Jen Psaki said in a statement. “President Biden looks forward to working with President Moon to further strengthen our alliance and expand our close working relationship.”

In an interview with the New York Times published last week, Mr. Moon urged Mr. Biden to sit down with North Korea and start negotiations.

Mr Biden’s predecessor, Donald J. Trump, left office without removing a single North Korean nuclear warhead. Kim Jong-un, the leader of North Korea, has resumed weapons testing.

“He hit the bushes and didn’t manage to pull it off,” said Mr. Moon of Mr. Trump’s efforts on North Korea. “The most important starting point for both governments is to have the will to dialogue and to meet face to face early on.”

He also urged the United States to work with China on North Korea and other global issues like climate change. A deterioration in relations between the two countries could jeopardize the denuclearization negotiations, he warned.

Mr Biden met with Japanese Prime Minister Yoshihide Suga at the White House on April 16 to celebrate the first in-person visit by a foreign leader during his presidency.

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Business

L’Oreal targets male magnificence, new customers in MENA, South Asia

A newly created market in the South Asia Pacific and the Middle East will account for most of L’Oreal’s new business for the next decade – men make up a large chunk of that, the French cosmetics giant said.

The combined geographic zone – known internally as SAPMENA – will cover 35 markets in South Asia Pacific, the Middle East and North Africa. Headquartered in Singapore, the new zone is in response to shared consumer trends and growth opportunities, said region president Vismay Sharma.

“This region, or SAPMENA as we call it … will be an important growth engine for us. This is where we will win the most consumers in the next ten years,” he told CNBC on Wednesday.

The move also makes sense demographically, Sharma said. Overall, 40% of the world’s population live in the region, with an average age of 28 years.

“Over 40% of consumers (in the region) are under 25,” he said. “That makes it extremely exciting for us and a very strategic market for the future.”

The 112-year-old company is trying to adapt to changing consumer habits and new markets, despite holding up relatively well during the pandemic. Revenue rose 10.2% in the first quarter of 2021, nearing pre-pandemic levels.

kyonntra | E + | Getty Images

However, Sharma said the coronavirus crisis boosted certain categories like health and wellness, as well as the demand for sustainable products.

The demand for male cosmetics has also increased recently. Japanese beauty company Shiseido reportedly saw double-digit growth in one of its male makeup lines in 2020 as male consumers became more aware of their looks during pandemic video conferencing.

Sharma said he expected interest in male cosmetics to continue, particularly in the SAPMENA region.

Especially in Asia we can see that men are much more critical about their skin, about the scents they wear, about their hair

Vismay Sharma

President (SAPMENA), L’Oreal

“In the past, men didn’t use enough beauty products – so penetration was much lower, per capita consumption was much lower, and frequency of use was much lower,” he said.

Now, “especially in Asia, we can see that men put a lot more emphasis on their skin, the scents they wear, their hair,” he continued.

“This part is going to be extremely interesting. In terms of growth percentages, we’re seeing significant growth in this part.”

However, in absolute terms, women will remain a significantly larger consumer base of beauty products for some time, he noted.

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World News

South Korean Chief Urges Biden to Negotiate With North Korea

SEOUL – President Moon Jae-in of South Korea has a message for the United States: President Biden must now deal with North Korea.

In an interview with the New York Times, Mr. Moon urged the American leader to start negotiations with the government of Kim Jong-un, the leader of North Korea, after two years of stalling diplomatic progress were even reversed . Denuclearization is a “question of survival” for his country, said the South Korean president.

He also called on the United States to work with China on North Korea and other issues of global concern, including climate change. The deteriorating relations between the superpowers could undermine any negotiations on denuclearization.

“If tensions between the United States and China intensify, North Korea can benefit and capitalize on it,” said Moon.

It was partly a plea, partly a sales pitch, from Mr. Moon, who sat down with The Times as the United States tried to rebuild ties in the region to counter China’s influence and North Korea built its nuclear arsenal. Mr. Moon, who will meet Mr. Biden in Washington next month, seemed ready to take on the role of mediator between the two sides again.

Interviewed, Mr. Moon prided himself on his skillful diplomatic maneuvering in 2018 as he led the two unpredictable leaders of North Korea and the United States for a face-to-face meeting. He was also pragmatic, tacitly admitting that his work to achieve denuclearization and peace in the Korean Peninsula has since disintegrated.

President Donald J. Trump stepped down without removing a single North Korean nuclear warhead. Mr. Kim has resumed weapon testing. .

“He beat the bush and didn’t manage to pull it off,” said Mr. Moon of Mr. Trump’s efforts on North Korea. “The most important starting point for both governments is to have the will to dialogue and to meet face to face early on.”

Now, in his final year in office, Mr. Moon is determined to start over – knowing that in Mr. Biden he is facing a very different leader.

Mr. Moon relied on Mr. Trump’s style and emphasized the personality-driven “top-down diplomacy” through one-on-one interviews with Mr. Kim. Mr Biden, he said, is going back to the traditional “bottom-up” approach, where negotiators haggle over details before getting approval from their bosses.

“I hope that Biden will go down as a historic president who has made substantial and irreversible progress towards full denuclearization and peace settlement on the Korean Peninsula,” Moon said in an interview with Sangchunjae, a traditional hanok on the grounds of the Executive Residence, Blue House.

Mr. Moon’s visit to Washington comes at a crucial time. The Biden administration completes its month-long policy review regarding North Korea, one of the most pressing geopolitical issues facing the United States.

Mr Biden has begun to reverse many of his predecessor’s foreign policy decisions. But Mr Moon warned that it would be a mistake to kill the 2018 Singapore Accord between Mr Trump and Mr Kim, which set broad goals for the denuclearization of the Korean Peninsula. .

“I believe if we build on what President Trump has left, we will make these efforts a reality under Biden’s leadership,” he said.

Mr. Moon urged the United States and North Korea to take “incremental and gradual” steps towards denuclearization, while “at the same time” exchanging concessions and incentives. It was a well-worn script for Mr. Moon who occasionally paused during the interview to refer to his notes and underscored his speech with small but determined hand gestures.

Some past American negotiators and Mr. Moon’s conservative critics oppose such a strategy, saying North Korea would stall and undermine international sanctions, the best leverage Washington has on the impoverished country. In his annual threat assessment released last week, the director of national intelligence for the United States said that Mr. Kim “believes that over time he will gain international acceptance and respect as a nuclear power.”

However, Mr. Moon’s team argues that the step-by-step approach is the most realistic, even if it is not perfect. According to his administration, North Korea would never give up its arsenal in a single step lest the regime lose its only negotiating chip with Washington.

The key, Mr. Moon said, is that the United States and North Korea work out a “mutually trustworthy roadmap.”

American negotiators under Mr. Trump never made it to this point. Both sides could not even agree on a first step for the north and what reward Washington would get for doing so.

Mr. Moon is not only trying to save his “Korean Peninsula Peace Process”, but also arguably his greatest diplomatic legacy.

When his North Korea policy stalled, critics called him a naive pacifist who relied too much on Mr Kim’s unproven commitment to denuclearization.

“His good intentions had dire consequences,” said Kim Sung-han, a professor at Korea University. “His mediation has not worked, nor have we made any progress on denuclearization. His time is running out. “

Since negotiations stalled, Mr. Moon’s problems at home have increased. Its approval ratings have fallen to hit lows amid real estate and other scandals. This month, angry voters brought his Democratic Party devastating defeats in the mayoral elections in South Korea’s two largest cities.

This is a sharp turn from the start of his term in office when Mr. Moon turned a hair-raising geopolitical crisis into a political initiative.

“When I took office in 2017, we were very concerned about the possibility of another outbreak of war on the Korean peninsula,” he said.

Four days after his tenure, North Korea launched its medium-range ballistic missile Hwasong-12, which could attack Hawaii and Alaska. Then the north tested a hydrogen bomb and three ICBMs. In response, Mr. Trump threatened “fire and anger” when carrier groups from the American Navy steamed onto the peninsula.

Mr. Moon’s first diplomatic victory came when Mr. Kim accepted his invitation to send a delegation to the 2018 Winter Olympics in Pyeongchang, South Korea. Shortly afterwards, Mr. Moon met with Mr. Kim at the heavily armed inter-Korean border.

During that meeting, Mr. Moon said the North Korean dictator had hinted that disarmament was a real possibility. “If security can be guaranteed without nuclear weapons, why should I have difficulty holding them at the expense of sanctions?” Mr. Moon remembered Mr. Kim.

He said he pitched Mr. Trump and asked him to meet Mr. Kim. At their television summit in Singapore, Trump promised “security guarantees” for North Korea, while Mr. Kim pledged to “work towards a full denuclearization of the Korean peninsula”.

“It is clearly an achievement for President Trump to hold the first North Korea-United States summit,” he said.

But Mr. Moon also lamented that Mr. Trump never got through after declaring that “there is no longer a nuclear threat from North Korea”. When Mr Kim and Mr Trump met again in Hanoi, Vietnam, in 2019, negotiations were going nowhere and the men left without reaching an agreement on how to move forward with the Singapore deal.

While Mr. Moon was keen to praise Mr. Trump, he also appeared frustrated with the former president’s erratic behavior and Twitter diplomacy. Mr. Trump canceled or downsized the annual joint military exercises the United States conducts with the South, demanding an “excessive amount” to keep 28,500 American troops in South Korea.

Mr Moon said he had decided to suspend negotiations on the so-called defense cost sharing agreement during Mr Trump’s final months in office. South Korea was willing to pay more given its growing economic size, but Mr Trump’s demands went against the very foundation of the two countries’ relations.

“His request lacked a reasonable and rational calculation,” said Moon.

The fact that Washington and Seoul could strike a deal within 46 days of Mr Biden’s inauguration is “clear evidence of the importance President Biden attaches to the alliance.”

Mr. Moon is confident of the progress the new American leader can make in North Korea, although a major breakthrough may be unrealistic given the deep distrust between Washington and Pyongyang.

Mr Biden said last month that he was “prepared for some form of diplomacy” with North Korea, but that “it must be made contingent on the end result of denuclearization”.

North Korea has come up with ideas for a step-by-step approach that begins with the demolition of its only known nuclear test site, followed by the dismantling of a rocket engine test facility and the nuclear complex in Yongbyon north of Pyongyang.

Mr Moon said he believes such steps, when combined with American concessions, could result in the removal of the North’s more valuable assets such as ICBMs. In this scenario, the step towards complete denuclearization becomes “irreversible”.

“This dialogue and this diplomacy can lead to denuclearization,” he said. “If both sides learn from the failure in Hanoi and put their heads together on more realistic ideas, I am confident that they can find a solution.”