World plan to avert financial meltdown



"International Monetary Fund Managing Director Dominique Strauss-Kahn said Sunday that leading economies now have coordinated, detailed and comprehensive plans to resolve the severe credit crisis," MarketWatch reported. "He said almost all of the affected nations now have taken strong action to shore up their financial sectors. "Strauss-Kahn made the remarks at a press conference Sunday following two days of intense talks on two continents." The New York Times said: "European financial and political leaders agreed late Sunday to a plan that would inject billions of euros into their banks in a bid to restore confidence to the teetering financial system. "Taking their cue from a rescue plan announced last week by Britain, the European countries led by Germany and France pledged to take equity stakes in distressed banks and vowed to guarantee bank lending for periods up to five years. "Both France and Germany were planning to unveil national rescue packages on Monday worth hundreds of billions of euros, officials said. " 'The meeting that we had was exceptional,' President Nicolas Sarkozy of France, said at a news conference. 'We need concrete measures, we need unity. That's what we achieved. The plan on which we agreed today will be applied in all our respective states.' "The plan 'treats all the dimensions of the financial crisis,' Mr Sarkozy said." In a separate report, The New York Times said: "As international leaders gathered [in Washington] on Saturday to grapple with the global financial crisis, the Bush administration embarked on an overhaul of its own strategy for rescuing the foundering financial system. "Two weeks after persuading Congress to let it spend $700 billion to buy distressed securities tied to mortgages, the Bush administration has put that idea aside in favour of a new approach that would have the government inject capital directly into the nation's banks - in effect, partially nationalising the industry. "As recently as Sept 23, senior officials had publicly derided proposals by Democrats to have the government take ownership stakes in banks. "The Treasury Department's surprising turnaround on the issue of buying stock in banks, which has now become its primary focus, has raised questions about whether the administration squandered valuable time in trying to sell Congress on a plan that officials had failed to think through in advance. "It has also raised questions about whether the administration's deep philosophical aversion to government ownership in private companies hindered its ability to look at all options for stabilising the markets. "Some experts also contend that Treasury's decision last month to not use taxpayer money to save Lehman Brothers worsened the panic that quickly metastasized into an international crisis." In The Financial Times, George Soros wrote: "Now that Hank Paulson has recognised that the troubled asset relief programme is best used to recapitalise the banking system, it is important to spell out exactly how it should be done. Since it was not part of the Treasury secretary's original approach, there is a real danger that the scheme will not be properly structured and will not achieve its objective. With financial markets on the brink of meltdown it is vital to make the prospects of a successful recapitalisation clearly visible." Klaus Schwab, founder of the World Economic Forum, wrote in Forbes: "The economic changes happening now are structural, not cyclical, and therefore truly transformative. "I believe this transformation will, over time, reveal the following. "First, crises in a global world economy require numerous institutions and governments to respond, because any major crisis will have multiple dimensions to it that are beyond the comprehension or mandate of any single institution or government. Complexity and interdependency are characteristics inherent to globalisation. In fact, there is growing grassroots awareness that global challenges are interlinked, but current governance institutions appear unable to pursue the measures needed to address them holistically. "For example, the connection between climate change, food scarcity and energy security is evident, yet an integrated solution to the three is not. There is a mismatch between the global challenges of the 21st century and the global governance institutions of the 20th century. Putting aside the current financial crisis, the failure to achieve the Millennium Development Goals, the failure to conclude the Doha Round of trade negotiations and the struggle to negotiate a successor to the Kyoto Protocol all point toward this conclusion. "Second, calls for greater global or regional collaboration will not be easily answered. Shortcomings in strategic foresight, global cooperation and managing complexity are together what landed us in the current predicament. Leaders in policy and in industry must first develop a more systematic and strategic view of global issues if any future collaboration is to be effective and sustainable." AFP reported: "The heads of the World Bank and International Monetary Fund on Sunday assured developing countries that their needs would not be forgotten in efforts to tackle the financial crisis. "Picking up on complaints that the crisis will put recent hard-won economic gains in the developing world at risk, World Bank head Robert Zoellick insisted that this would not be allowed to happen. " 'Developing countries ... risk very serious setbacks to their efforts to improve the lives of their populations from any prolonged tightening of credit or a sustained global slowdown,' Zoellick told a news conference. " 'We must ... ensure that as governments and publics turn their attention to problems close to home, they do not step back from their commitments to boost overseas assistance to meet the Millennium Development Goals,' he said. "IMF head Dominique Strauss-Kahn said 'the financial crisis adds a crisis to a crisis (of rising food and energy prices in poor countries.) " 'We should not forget this other crisis,' he told the news conference after a meeting of the World Bank and IMF's Development Committee which advises the two bodies on economic development issues." The Associated Press said: "Attempts to tackle global warming are being made more difficult by the spreading economic crisis even as Democratic congressional leaders say it's still a top goal for next year. "At the very least, fear of a prolonged economic downturn is expected to delay attempts by the United States to cap greenhouse gases blamed for global warming. "Democratic leaders in the House and the Senate as well as both presidential candidates say addressing climate change by imposing mandatory restrictions on heat-trapping pollution - especially carbon dioxide from burning fossil fuels - remains a priority. "Only months ago, the prospect of climate legislation passing in the next Congress and becoming law looked promising. Both presidential candidates Barack Obama and John McCain support mandatory emission cuts and a Democratic majority vowed to act on the problem early in the new year. "But the most popular remedy for slowing global warming, a mechanism known as cap-and-trade, could put further stress on a teetering economy by raising energy prices."

British conceal evidence of covert Pakistani presence in Taliban command

"British officials covered up evidence that a Taliban commander killed by special forces in Helmand last year was in fact a Pakistani military officer, according to highly placed Afghan officials," The Times reported. "The commander, targeted in a compound in the Sangin valley, was one of six killed in the past year by SAS and SBS forces. When the British soldiers entered the compound they discovered a Pakistani military ID on the body. "It was the first physical evidence of covert Pakistani military operations against British forces in Afghanistan even though Islamabad insists it is a close ally in the war against terror." Last week, The New York Times reported: "A draft report by American intelligence agencies concludes that Afghanistan is in a 'downward spiral' and casts serious doubt on the ability of the Afghan government to stem the rise in the Taliban's influence there, according to American officials familiar with the document. "The classified report finds that the breakdown in central authority in Afghanistan has been accelerated by rampant corruption within the government of President Hamid Karzai and by an increase in violence by militants who have launched increasingly sophisticated attacks from havens in Pakistan. "The report, a nearly completed version of a National Intelligence Estimate, is set to be finished after the November elections and will be the most comprehensive American assessment in years on the situation in Afghanistan. Its conclusions represent a harsh verdict on decision-making in the Bush administration, which in the months after the Sept 11, 2001, attacks made Afghanistan the central focus of a global campaign against terrorism." The Los Angeles Times said: "Confronting the prospect of failure after seven years in Afghanistan, the US military is crafting a new strategy that is likely to expand the power and reach of that country's tribal militias while relying less on the increasingly troubled central government. "Under that approach, US forces would scale back combat operations to focus more on training Afghan government forces and tribal militias. The plan is controversial because it could extend the influence of warlords while undermining the government of President Hamid Karzai in Kabul, the capital. "The strategy also could set up a hair-trigger rivalry between national security units and the improved tribal forces, proponents acknowledge." In The Guardian, Max Hastings wrote: "While most of the world spent the weekend trembling for its wealth, in Afghanistan the Taliban busied themselves dying in quite large numbers, during an ill-advised assault on Helmand's provincial capital, Lashkar Gar. Around 50 insurgents were killed, for no loss to Nato and Afghan security forces. "This fits the war's pattern. Almost every time the Taliban fights a battle, it loses to overwhelming firepower. Unfortunately, such western successes are strategically meaningless. Nato is absent from vast areas of this intractable country, where the insurgents prosper. There is greater gloom about the conflict than at any time since the Taliban was ousted in 2001. "I spent a week in Afghanistan in September, and was shocked by the deterioration since my last visit two years ago. The British army, which justly prides itself on its 'can-do' philosophy, has been sobered by recent experience. Its casualties are acceptable within a context of progress. But they become dismaying against a background of growing Taliban influence and slumping confidence in the Kabul government." An editorial in The Christian Science Monitor said: "The McCain campaign may want to be careful with its charge that Barack Obama was once 'pals' with a 1960s American terrorist. Whoever is the next president faces a difficult choice in the Afghanistan war: Should the US support possible talks with the Taliban, pals of al Qa'eda? "General David Petraeus does. And as President Bush often says, he takes the advice of top generals. "As architect of the troop surge that helped turn the Iraq war into an exitable and low-level conflict, Gen Petraeus will soon become head of the US Central Command and thus responsible for American military operations in Afghanistan. "Several Nato commanders there say this seven-year old war, launched after 9/11 to oust both the Taliban regime and al Qa'eda, has become unwinnable and that only political reconciliation with Taliban insurgents can bring it to a close."

pwoodward@thenational.ae

How to get exposure to gold

Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.

A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.

Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.

Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.

London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long

However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.

Company Profile

Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8

PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised:+$3m 

Investors: Global Ventures and angel investors 

The specs

Engine: 8.0-litre, quad-turbo 16-cylinder

Transmission: 7-speed auto

0-100kmh 2.3 seconds

0-200kmh 5.5 seconds

0-300kmh 11.6 seconds

Power: 1500hp

Torque: 1600Nm

Price: Dh13,400,000

On sale: now

Hydrogen: Market potential

Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.

"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.

Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.

The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

The specs

Engine: 2.3-litre 4cyl turbo
Power: 299hp at 5,500rpm
Torque: 420Nm at 2,750rpm
Transmission: 10-speed auto
Fuel consumption: 12.4L/100km
On sale: Now
Price: From Dh157,395 (XLS); Dh199,395 (Limited)

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

Specs: 2024 McLaren Artura Spider

Engine: 3.0-litre twin-turbo V6 and electric motor
Max power: 700hp at 7,500rpm
Max torque: 720Nm at 2,250rpm
Transmission: Eight-speed dual-clutch auto
0-100km/h: 3.0sec
Top speed: 330kph
Price: From Dh1.14 million ($311,000)
On sale: Now

Ipaf in numbers

Established: 2008

Prize money:  $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.

Winning novels: 13

Shortlisted novels: 66

Longlisted novels: 111

Total number of novels submitted: 1,780

Novels translated internationally: 66

Match info

Bournemouth 0
Liverpool 4
(Salah 25', 48', 76', Cook 68' OG)

Man of the match: Andrew Robertson (Liverpool)

Know your cyber adversaries

Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.

Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.

Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.

Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.

Phishing: Aims to secure personal information, such as passwords and credit card numbers.

Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.

Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.

Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.

Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.

Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.

Zero-day exploit: Exploits a vulnerability in software before a fix is found.

SPEC SHEET: APPLE M3 MACBOOK AIR (13")

Processor: Apple M3, 8-core CPU, up to 10-core CPU, 16-core Neural Engine

Display: 13.6-inch Liquid Retina, 2560 x 1664, 224ppi, 500 nits, True Tone, wide colour

Memory: 8/16/24GB

Storage: 256/512GB / 1/2TB

I/O: Thunderbolt 3/USB-4 (2), 3.5mm audio, Touch ID

Connectivity: Wi-Fi 6E, Bluetooth 5.3

Battery: 52.6Wh lithium-polymer, up to 18 hours, MagSafe charging

Camera: 1080p FaceTime HD

Video: Support for Apple ProRes, HDR with Dolby Vision, HDR10

Audio: 4-speaker system, wide stereo, support for Dolby Atmos, Spatial Audio and dynamic head tracking (with AirPods)

Colours: Midnight, silver, space grey, starlight

In the box: MacBook Air, 30W/35W dual-port/70w power adapter, USB-C-to-MagSafe cable, 2 Apple stickers

Price: From Dh4,599

 

 

UAE athletes heading to Paris 2024

Equestrian

Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).

Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).

Cycling
Safia Al Sayegh (women's road race).

Swimming

Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics

Maryam Mohammed Al Farsi (women's 100 metres).

BLACK ADAM

Director: Jaume Collet-Serra

Stars: Dwayne Johnson, Sarah Shahi, Viola Davis, Pierce Brosnan

Rating: 3/5

BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES

SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities

Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails

Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies

Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments

'Top Gun: Maverick'

Rating: 4/5

Directed by: Joseph Kosinski

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

And Just Like That...

Director: Various

Stars: Sarah Jessica Parker, Cynthia Nixon, Kristin Davis

Rating: 3/5

ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

ABU DHABI'S KEY TOURISM GOALS: BY THE NUMBERS

By 2030, Abu Dhabi aims to achieve:

• 39.3 million visitors, nearly 64% up from 2023

• Dh90 billion contribution to GDP, about 84% more than Dh49 billion in 2023

• 178,000 new jobs, bringing the total to about 366,000

• 52,000 hotel rooms, up 53% from 34,000 in 2023

• 7.2 million international visitors, almost 90% higher compared to 2023's 3.8 million

• 3.9 international overnight hotel stays, 22% more from 3.2 nights in 2023

FIXTURES

New Zealand v France, second Test
Saturday, 12.35pm (UAE)
Auckland, New Zealand

South Africa v Wales
Sunday, 12.40am (UAE), San Juan, Argentina

The biog

Name: Greg Heinricks

From: Alberta, western Canada

Record fish: 56kg sailfish

Member of: International Game Fish Association

Company: Arabian Divers and Sportfishing Charters

TWISTERS

Director:+Lee+Isaac+Chung

Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos

Rating:+2.5/5

Match info:

Portugal 1
Ronaldo (4')

Morocco 0

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150+ employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

Our Time Has Come
Alyssa Ayres, Oxford University Press

The lowdown

Badla

Rating: 2.5/5

Produced by: Red Chillies, Azure Entertainment 

Director: Sujoy Ghosh

Cast: Amitabh Bachchan, Taapsee Pannu, Amrita Singh, Tony Luke

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

The specs: 2019 Audi A8

Price From Dh390,000

Engine 3.0L V6 turbo

Gearbox Eight-speed automatic

Power 345hp @ 5,000rpm

Torque 500Nm @ 1,370rpm

Fuel economy, combined 7.5L / 100km


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