Lebanese army collects arms from Palestinian groups in southern refugee camps

Palestinian factions at three refugee camps in southern Lebanon handed over weapons to the army on Thursday as part of the government's drive to disarm all non-state actors in the country.

The Lebanese Armed Forces said it "received a quantity of Palestinian weapons" from the Rashidieh, Al Bass and Burj Al Shamali camps in Tyre.

The weapons handed over included machine guns, rocket-propelled grenades and hand grenades, Lebanon's National News Agency said. Seven lorries took the weapons to an army barracks in the Shawakir area of Tyre city.

The Palestinian ambassador to Beirut, Ramez Dimashkieh, who is also head of the Lebanese-Palestinian Dialogue Committee that was tasked with implementing the disarmament process, told reporters that more Palestinian camps in Beirut will hand over their weapons to the army on Friday.

Disarming the camps comes under a broader initiative by Lebanese leaders to limit and disarm all non-state forces, including the Iran-backed Lebanese paramilitary group Hezbollah.

The issue is a sensitive one as Israel carries out regular strikes on Lebanon, with Hezbollah accusing ministers of bowing to US and Israeli pressure. Two Lebanese troops were killed on Thursday while inspecting a crashed Israeli drone in the south of the country, the army said.

The handover of weapons in Lebanon's 12 Palestinian refugee camps began on August 21 at the Burj Al Barajneh camp in Beirut. Only factions affiliated to the Palestine Liberation Organisation are taking part, including the Fatah faction of Palestinian Authority President Mahmoud Abbas.

Palestinian factions opposed to Mr Abbas, including Hamas and its ally, Palestinian Islamic Jihad, have rejected the plan as "unilateral".

While it is not clear exactly which factions are handing over their weapons, there has also been resistance to disarmament from some members of the PLO, which contains representatives of a diverse array of Palestinian factions with varying ideologies.

Mr Dimashkieh told Associated Press that his group had held “initial talks” with Hamas and that he was “quite optimistic that we will make headway” with bringing them on board.

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.”