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China announces fresh military drills around Taiwan

China announces fresh military drills around Taiwan

TAIPEI, Aug 8 (Reuters) – China’s military announced fresh military drills on Monday in the seas and airspace around Taiwan – a day after the scheduled end of its largest ever exercises to protest against last week’s visit to Taipei by US House Speaker Nancy Pelosi.

China’s Eastern Theater Command said it would conduct joint drills focusing on anti-submarine and sea assault operations – confirming the fears of some security analysts and diplomats that Beijing would continue to maintain pressure on Taiwan’s defences.

Pelosi’s visit to Taiwan last week infuriated China, which regards the self-ruled island as its own and responded with test launches of ballistic missiles over Taipei for the first time, as well as ditching some lines of dialogue with Washington.

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The duration and precise location of the latest drills is not yet known, but Taiwan has already eased flight restrictions near the six earlier Chinese exercise areas surrounding the island.

Shortly before the latest drills were announced, Taiwan President Tsai Ing-wen met visiting St. Vincent and the Grenadines Prime Minister Ralph Gonsalves, telling him she was moved by his determination to visit despite China’s military pressure. read more

“Prime Minister Gonsalves has expressed in recent days that the Chinese military drills would not prevent him from visiting friends in Taiwan. These statements have deeply touched us,” Tsai said at a welcome ceremony for Gonsalves in Taipei.

It was unclear if Tsai had invited Gonsalves before or after Pelosi’s visit. “We don’t disclose internal planning or communications between governments,” the Taiwanese foreign ministry said when asked by Reuters.

Beyond the firing of 11 short-range ballistic missiles during the four earlier days of exercises, Chinese warships, fighter jets and drones maneuvered extensively around the island.

Shortly before those drills ended on Sunday, about 10 warships each from China and Taiwan maneuvered at close quarters around the unofficial median line of the Taiwan Strait, according to a person familiar with the situation who is involved with security planning.

MILITARY TALKS SHELVED

Taiwan’s defense ministry said Chinese military ships, aircraft, and drones had simulated attacks on the island and its navy. It said it had sent aircraft and ships to react “appropriately”.

China’s defense ministry meanwhile maintained its diplomatic pressure on the United States, defending its shelving of military-to-military talks in protest at Pelosi’s visit.

“The current tense situation in the Taiwan Strait is entirely provoked and created by the US side on its own initiative, and the US side must bear full responsibility and serious consequences for this,” defense ministry spokesman Wu Qian said in an online post.

“The bottom line cannot be broken, and communication requires sincerity,” Wu said.

China called off formal talks involving theatre-level commands, defense policy co-ordination and military maritime consultations on Friday as Pelosi left the region.

Pentagon, State Department and White House officials condemned the move, describing it as an irresponsible over-reaction.

China’s cutting of some of its few communication links with the US military raises the risk of an accidental escalation over Taiwan at a critical moment, according to security analysts and diplomats. read more

One US official noted that Chinese officials had not responded to calls from senior Pentagon officials amid the tensions last week, but that they did not see this as a formal severing of ties with senior figures, such as US Defense Secretary Lloyd Austin.

Asked directly about those reports, defense ministry spokesman Wu said, “China’s relevant counter-measures are a necessary warning to the provocations of the United States and Taiwan, and a legitimate defense of national sovereignty and security.”

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Reporting by Beijing Newsroom and Sarah Wu in Taipei; writing by Greg Torode. Editing by Gerry Doyle and Raju Gopalakrishnan

Our Standards: The Thomson Reuters Trust Principles.

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US

Texas governor sends migrants to New York City as immigration standoff accelerates

Texas governor sends migrants to New York City as immigration standoff accelerates

Texas Governor Greg Abbott holds a news conference with state agencies and local officials at Uvalde High School, three days after a gunman killed nineteen children and two adults in a mass shooting at Robb Elementary School, in Uvalde, Texas, US May 27, 2022. REUTERS/Marco Bello

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NEW YORK, Aug 5 (Reuters) – Texas Governor Greg Abbott, a Republican, said on Friday he has started to send buses carrying migrants to New York City in an effort to push responsibility for border crossers to Democratic mayors and US President Joe Biden, to Democrat.

The first bus arrived early on Friday at the city’s Port Authority Bus Terminal in midtown Manhattan. Volunteers were putting groups of migrants in taxis headed to a nearby intake center, where they said some would be processed for admission to city homeless shelters.

Abbott, who is running for a third term as governor in November elections, has sent more than 6,000 migrants to Washington since April in a broader effort to combat illegal immigration and call out Biden for his more welcoming policies. read more

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Abbott said New York City Mayor Eric Adams could provide services and housing for the new arrivals.

“I hope he follows through on his promise of welcoming all migrants with open arms so that our overrun and overwhelmed border towns can find relief,” Abbott said in a statement.

Arizona Governor Doug Ducey, another Republican, has followed Abbott’s lead and bused another 1,000 to Washington.

US border authorities have made record numbers of arrests under Biden although many are repeat crossers. Some migrants who are not able to be expelled quickly to Mexico or their home countries under a COVID-era policy are allowed into the United States, often to pursue asylum claims in US immigration court.

New York City Mayor Adams’ office has in recent weeks criticized the bussing efforts to Washington, saying some migrants were making their way to New York City and overwhelming its homeless shelter system.

On Friday the mayor’s Press Secretary Fabien Levy said Abbott was using “human beings as political pawns,” calling it “a disgusting, and an embarrassing stain on the state of Texas.”

Levy said New York would continue to “welcome asylum seekers with open arms, as we always have, but we are asking for resources to help do so,” calling for support from federal officials.

Washington Mayor Muriel Bowser has also said her city’s shelter system has been taxed by migrant arrivals and last month called on the Biden administration to deploy military troops to assist with receiving the migrants, a request that has frustrated White House officials. read more

A US defense official, speaking on condition of anonymity, told Reuters that Defense Secretary Lloyd Austin had declined a request for the DC National Guard to help with the transportation and reception of migrants in the city because it would hurt the troops’ readiness.

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Reporting by Sofia Ahmed in New York and Ted Hesson in Washington; Additional reporting by Idrees Ali in Washington; Editing by Mica Rosenberg and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

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Business

Global cenbanks lift rates by nearly 1,200 bps in July

Global cenbanks lift rates by nearly 1,200 bps in July

Plastic letters arranged to read “Inflation” are placed on Chinese Yuan banknote in this illustration taken, June 12, 2022. REUTERS/Dado Ruvic/Illustration

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LONDON, Aug 3 (Reuters) – Major developed and emerging market central banks around the globe delivered nearly 1,200 basis points in interest rate hikes in July alone, ramping up their fight against multi-decade high inflation with Canada surprising markets with an outsized move.

Central banks overseeing five of the 10 most heavily traded currencies delivered 325 basis points of rate hikes between them last month. This brings the total volume of rate hikes since the start of the year across G10 central banks to 1,100 basis points.

However, July’s tally was less than the 350 basis points seven central banks delivered in June.

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“We’ve reached peak hawkishness of the central banks,” Christian Kopf, head of fixed income portfolio management at Union Investment, told Reuters.

Reuters Graphics Reuters Graphics

“Central banks have made it clear that they will not overdo it with the rate hikes,” Kopf said, adding that it was also the message conveyed by US Federal Reserve chair Jerome Powell.

July was dotted with some eye catching moves. Canada emerged as the chief hawk, stunning markets by delivering the first 100-basis-point rate increase among the world’s advanced economies in the current cycle, lifting its key policy rate to 1.5%.

New Zealand delivered its sixth straight interest rate rise and signaled it remained comfortable with its planned aggressive tightening path to restrain runaway inflation. read more

And then of course the big one: The Fed delivered its second straight 75-basis-point rate hike, reinforcing its commitment to contain red-hot inflation running at 40-year highs. read more

There was no let up for policymakers in emerging markets, where inflation had been on a tear for much longer than in developed economies.

Nine out of 18 central banks delivered 850 bps of rate hikes in July. In total, emerging market central banks have raised interest rates by 5,265 bps year-to-date – nearly double the 2,745 bps for the whole of 2021, calculations show.

“Emerging market central banks remain more worried about inflation than growth,” BofA’s David Hauner said in a recent note to clients.

ReutersGraphics

Hungary moved twice in July, jacking up its base rate by 300 basis points to 10.75% with borrowing costs into double-digit territory for the first time since late 2008 – and flagging more hikes ahead. read more

Colombia and Chile piled in with a 150 bps and 75 bps hike respectively, though emerging market uber-hawk Brazil, which has lifted rates to 13.25 bps already in June, took a breather.

However, emerging markets have also seen cuts with Russia reducing interest rates ratcheted up to 20% in the wake of its Feb. 24 invasion of Ukraine, which sparked sweeping sanctions. read more

Inflation pressures would remain a headache for policy makers, said Tobias Adrian, director at the Monetary and Capital Markets Department at the International Monetary Fund (IMF).

“The magnitude of the inflation has been a surprise to central banks and markets, and there remains substantial uncertainty about the outlook for inflation,” Adrian wrote in a blog on Monday.

“Inflation risks appear strongly tilted to the upside,” Adrian said, adding there was a substantial risk that price pressures were becoming entrenched and expectations unanchored.

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Reporting by Karin Strohecker and Vincent Flasseur in London, Additional reporting by Dhara Ranasinghe; Editing by Jacqueline Wong

Our Standards: The Thomson Reuters Trust Principles.

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