Hundreds of demonstrators blocked major roads across Lebanon on Monday as protests over worsening economic conditions and record low currency levels entered their seventh day.
The protests were fuelled by the Lebanese pound reaching a new low of 10,000 to the US dollar last Tuesday, days after the government eased Covid-19 restrictions.
President Michel Aoun blamed the recent fall in the lira rate on speculators and parties seeking to undermine Lebanon’s security.
The currency has lost more than 80 per cent of its value since late 2019 as Lebanon struggled to contain an economic and financial crisis.
During a meeting with caretaker Prime Minister Hassan Diab, members of his Cabinet and the country’s top security officers, Mr Aoun ordered the army to re-open blocked roads and to uncover “plans put in place to harm the country.”
“The latest developments have dangerous repercussions on social and national security, and require swift and decisive financial, judicial and security measures to prosecute those manipulating the livelihood of the Lebanese," Mr Aoun said.
Hours later, the army still didn't intervene to re-open the roads.
Addressing senior military officers at a separate meeting, Lebanese Army Chief Joseph Aoun said the country was reeling under the burden of a suffocating economic crisis that has eroded the purchasing power of the people and army personnel.
The army commander said the military was supportive of freedom of expression but would protect stability and confront any acts of vandalism.
“Where are we headed, what are your plans?” the army chief asked, addressing Lebanese officials, according to a statement released by the army.
The president has been the target of sharp criticism from protestors who have taken to the streets to demand change.
34-year-old Ali, a father of one who joined demonstrators in Martyr’s Square in downtown Beirut, said he is protesting against rampant corruption that has plagued the country since the end of the civil war in the early 90’s.
“We’ve been protesting for six days now, why doesn’t the president care? Why are our leaders ignoring our needs?” he said.
Ali said he could barely make ends meet with his monthly income of 1.4 million lira, the equivalent of around 140 US dollars at today’s market rate.
“My rent is 800,000. How am I going to pay for it? We need a real solution,” he told The National.
Protesters used burning tyres, rubbish bins and cars to shut down the main highways leading into and out of the capital, Beirut, since the early morning, as well as key roads in the Bekaa region and in south and north Lebanon.
Some set up tents along a main highway north of Beirut, according to state-run National News Agency (NNA).
In Tripoli, which has been home to some of the largest protests to grip the country since 2019, demonstrators scuffled with security forces, according to local media reports.
Raeb Abou Assi, a 28-year-old protestor from the mountainous Chouf region, said he joined protestors in Beirut because the ruling elite has killed his dream of a better future.
Abou Assi says he was laid off from his job in aluminum business five years ago and has since been working as a security guard.
“The authorities have been lying to us, look at what they have reduced us to,” he told the National, pointing at dozens of protestors who had been burning tyres.
Anger has mounted over the political paralysis in Lebanon, with no breakthrough in negotiations to form a Cabinet almost seven months after a massive explosion in Beirut forced the resignation of Mr Diab’s government.
The caretaker prime minister threatened on Sunday to stop performing his duties to pressure politicians leaders to form a new government.
“What are you waiting for?” Mr Diab said in a televised speech.
The failure to form a Cabinet has blocked the implementation of key reforms that the international community is demanding before providing Lebanon with financial aid.
The economic situation sparked months of protests in October 2019 but they lost momentum after the outbreak of the Covid-19 pandemic.
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Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
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NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
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BOSH!'s pantry essentials
Nutritional yeast
This is Firth's pick and an ingredient he says, "gives you an instant cheesy flavour". He advises making your own cream cheese with it or simply using it to whip up a mac and cheese or wholesome lasagne. It's available in organic and specialist grocery stores across the UAE.
Seeds
"We've got a big jar of mixed seeds in our kitchen," Theasby explains. "That's what you use to make a bolognese or pie or salad: just grab a handful of seeds and sprinkle them over the top. It's a really good way to make sure you're getting your omegas."
Umami flavours
"I could say soya sauce, but I'll say all umami-makers and have them in the same batch," says Firth. He suggests having items such as Marmite, balsamic vinegar and other general, dark, umami-tasting products in your cupboard "to make your bolognese a little bit more 'umptious'".
Onions and garlic
"If you've got them, you can cook basically anything from that base," says Theasby. "These ingredients are so prevalent in every world cuisine and if you've got them in your cupboard, then you know you've got the foundation of a really nice meal."
Your grain of choice
Whether rice, quinoa, pasta or buckwheat, Firth advises always having a stock of your favourite grains in the cupboard. "That you, you have an instant meal and all you have to do is just chuck a bit of veg in."
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions