Hassan Rouhani, Vladimir Putin and Recep Tayyip Erdogan at their last meeting in Sochi 14 February 2019. EPA
Hassan Rouhani, Vladimir Putin and Recep Tayyip Erdogan at their last meeting in Sochi 14 February 2019. EPA
Hassan Rouhani, Vladimir Putin and Recep Tayyip Erdogan at their last meeting in Sochi 14 February 2019. EPA
Hassan Rouhani, Vladimir Putin and Recep Tayyip Erdogan at their last meeting in Sochi 14 February 2019. EPA

In Sochi, Russia rallies support for assault on Syria’s last opposition stronghold


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Sitting side by side with the leaders of Turkey and Iran on Thursday, Russian President Vladimir Putin promised that the territorial integrity of Syria would be restored and called for his allies to help rid the country of terrorists.

Russia hosted the leaders of Iran and Turkey in the Black Sea city of Sochi on Thursday in order to discuss future joint steps to bring about a long-term settlement in Syria, according to a Kremlin statement ahead of the talks.

As the conflict in Syria grinds to its final stages, Russia, Turkey and Iran have found themselves at odds over how to wrest control of the last pockets of opposition to Syrian President Bashar Al Assad. The question has become increasingly pertinent since US Donald Trump announced in December that he was pulling American forces from Syria.

For Russia, the most pressing issue on agenda was rallying support for an offensive on the northeastern province of Idlib, where an estimated 3 million civilians are under control of an Al Qaeda-linked group, Hayat Tahrir Al Sham.

Although Turkey is worried that an assault would create a massive refugee crisis on its borders, Russian rhetoric in recent weeks has shown impatience to rout the militant group.

"We should not put up with the presence of terrorist groups in Idlib," Mr Putin told Mr Erdogan and Iranian leader Hassan Rouhani on Thursday. "That's why I propose we consider practical concrete steps that Russia, Turkey and Iran can take to completely destroy this hotbed of terrorists."

US President Donald Trump’s announcement in December that he was drawing down some 2,000 American troops from Syria has also tasked the leaders of Russia, Iran and Turkey with filling the vacuum. While Putin noted in Sochi that details of the pullout are still unclear, US forces are expected to leave Syria within weeks.

Turkey says some of the Kurdish militias controlling territory where the US forces are operating are linked to the PKK, a Kurdish group that has fought an insurgency in Turkey since the 1980s.

Mr Erdogan on Thursday said he wants to coordinate with Russia to implement a buffer zone in the north of Syria to counter US-backed Kurdish groups. However Russia, which wants to hand territory back to Mr Assad, said Damascus would decide the fate of Erdogan’s safe zone.

"The question of the presence of a military contingent acting on the authority of a third country on the territory of a sovereign country and especially Syria must be decided directly by Damascus," Reuters quoted Russian foreign ministry spokesperson Maria Zakharova saying about the Turkish safe zone plan on Thursday. "That's our base position."

Observers say that Russia is unlikely to agree to the permanent presence of Turkish troops in Syria.

“At the end of the day, Russia wants Assad to control the borders,” said Yury Barmin, an analyst the Russian International Affairs Council, a think tank established by the Kremlin. “This is a principled position that hasn't moved an inch. If this was negotiable we would have seen a lot more change in Syria by now.”

Since entering the Syrian war in 2015, Russia has played a decisive role in turning the tide of the conflict in favour of Mr Al Assad. Seven years after a series of unarmed protests turned into a civil war, Russia now wants Western governments to allocate funding for the war-torn country’s reconstruction and to facilitate the return of refugees.

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Ordinary Virtues: Moral Order in a Divided World by Michael Ignatieff
Harvard University Press

Points tally

1. Australia 52; 2. New Zealand 44; 3. South Africa 36; 4. Sri Lanka 35; 5. UAE 27; 6. India 27; 7. England 26; 8. Singapore 8; 9. Malaysia 3

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