Chinese Premier Li Keqiang attends the Asean Plus Three Summit in Singapore on November 15, 2018. Reuters
Chinese Premier Li Keqiang attends the Asean Plus Three Summit in Singapore on November 15, 2018. Reuters

Asean sees code of conduct as best course in South China Sea



For the Asean bloc, the South China Sea dispute is a top-priority regional security issue: six of the 10 member states stake claims to the contested waters.

None, though, are so sweeping as those made by China, with its "9-dash line". In the past three years, China has built a number of artificial islands, and signalled defiance at a landmark 2016 UN ruling in favour of the Philippines.  
During the Asean summit in Singapore this week, member states agreed to continue work on a draft Code of Conduct, with a view to finalising it within three years.
The South China Sea has emerged as a potential flashpoint, with analysts voicing concerns over rapid militarisation, increasing belligerence over perceived territorial incursions, and ramped-up freedom of navigation operations. Observers fret that a war footing may be emerging in the contested waters.  
Speaking to reporters on the sidelines of the summit, Philippines President Rodrigo Duterte said finalising of a code of conduct was crucial to clearly outline acceptable behaviour in the disputed waters.
"China is already in position. It's now in their plans. So any frictions, strong military activity, that will prompt a response from China," he said. "I do not mind everybody going to war, except the Philippines is just beside those islands and if there's shooting, my country will be the first to suffer."
In the past, Mr Duterte has conceded that to confront China militarily would be political suicide, as well as likely resulting in an outright "massacre".
""I am not prepared to lose my soldiers and policemen for simple adventurism," Mr Duterte told local press in June. The predicament has strained longstanding alliances, and in particular those with the US.
"Chinese island-building and militarisation is a fait accompli for the Asean states, especially in the light of the uncertain geopolitical orientation of the Trump administration," said Tan See Seng, professor of international relations and deputy director of the Institute of Defence and Strategic Studies.

"The Asean states may not like it, but they are resigned to it." 
Speaking on background, a senior US administration official said the US would back calls for a binding code of conduct which would honour the rights and sovereignty of nations both big and small. They reinforced US commitment to the region, calling Asean "indispensable and irreplaceable" allies. Central to security, they said, were freedom of navigation, freedom of the seas and freedom of the air.
Addressing the 6th US-Asean Summit, US Vice President Mike Pence said: "We all agree that empire and oppression have no place in the Indo-Pacific."
In a speech delivered on November 13 in Singapore, Chinese Premier Li Keqiang called for co-operation in the region, seeking to allay fears about the exercise of outsized influence.
"We are not and we will not, seek hegemony or expansion. That is something we will never do," he said. "What we hope is to have a harmonious relationship with our neighbours and together we benefit from our good neighbourliness. There is a Chinese saying: a relative from afar is not as good as a close neighbour."

In a release from the State Department last week, the US called on China to withdraw its missile systems from disputed features in the Spratly Islands, reaffirming that "all countries should avoid addressing disputes through coercion or intimidation".
"The United States remains committed to fly, sail, and operate wherever international law allows," the department said.
Dr Huong Le Thu, senior analyst at the Australian Strategic Policy Institute's Defence and Strategy Programme, says that while US President Donald Trump's absence from the summit may be bad optics, Mr Pence would be seeking to reassert an ongoing role for the US in the region.
"Pence is likely to add some 'meat to the bone' on the Indo-Pacific strategy and particularly its economic component," she told The National. "He will need to counter the narrative that China and the regional actors are 'doing alright' without an external power."
The South China Sea is one of the world's most critical and valuable shipping routes, as well as being endowed with vast oil and gas reserves. It is also home to one of the most important — and ecologically imperilled — fisheries, which millions rely on for both livelihoods and a primary source of dietary protein.
In the absence of a binding code of conduct, observers are concerned that the race to exploit the sea's resources will strain relationships in the region.  
While the signing of a code of conduct may be some years off, Dr Huong Le Thu says there are significant barriers, with Asean states "not ready to accept all of China's conditions".
The issue for Asean moving forward, Prof Tan See Seng says, is that any such code of conduct would be non-binding, with no enforcement mechanisms — and also does not define claimant demarcations in absolute terms.
He says this dogged pursuit of a code of conduct is "Asean's way of trying to establish a rules-based regional order and persuading their bigger regional neighbours, all locked in strategic rivalries with one another, to buy in and ensure some measure of adherence to commonly agreed upon rules and norms".
"It's seriously suboptimal, but it's pretty much what Asean can conceivably achieve given the huge impediments that stand in the way," he said.

The key variable is leadership, he said. “Can Thailand and Vietnam, the next two Asean chairs, keep the momentum initiated by Singapore going?"

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The flights 
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
 

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Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.

TO A LAND UNKNOWN

Director: Mahdi Fleifel

Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

How to help

Donate towards food and a flight by transferring money to this registered charity's account.

Account name: Dar Al Ber Society

Account Number: 11 530 734

IBAN: AE 9805 000 000 000 11 530 734

Bank Name: Abu Dhabi Islamic Bank

To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae

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Started: August 2020
Founder: Areej Selmi
Based: Gaza
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Investments: Grants/private funding
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Engine: 1.5-litre turbocharged four-cylinder

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UAE currency: the story behind the money in your pockets
Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

Results

2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)

2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili

3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson

3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer

4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar

4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly

Business Insights
  • Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
  • The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
  • US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Rating: 2/5