Turkish prime minister Recep Tayyip Erdogan meets Pope Shenuda III, head of the Egyptian Coptic Orthodox Church, in Cairo  yesterday.  AFP PHOTO/MOHAMMED HOSSAM
Turkish prime minister Recep Tayyip Erdogan meets Pope Shenuda III, head of the Egyptian Coptic Orthodox Church, in Cairo yesterday. AFP PHOTO/MOHAMMED HOSSAM

Muslim Brotherhood hails Erdogan's stance against Israel



CAIRO // Turkey's prime minister, Recep Tayyip Erdogan, met Muslim Brotherhood leaders in Cairo on the second day of his "Arab Spring tour" yesterday, receiving praise for his position in an continuing diplomatic row with Israel.

After the talks, the Muslim Brotherhood leader, Mohammed Badie, praised Mr Erdogan's "brave stance" in the face of "Zionist insolence", saying that he had the admiration of the entire Arab and Muslim worlds.

Two weeks ago, Mr Erdogan's government expelled the Israeli ambassador after Israel refused to apologise for the death of nine activists during an Israeli raid on the flotilla. In speeches on Tuesday, Mr Erdogan repeatedly linked the death to Egypt's recent loss of six members of its security forces in an Israeli cross border operation.

Yesterday, Mr Erdogan was greeted by cheering crowds during his visit to the capital - part of a tour of countries that have recently overthrown autocratic rulers. Mr Erdogan arrived in Tunisia last night and will travel to Libya tomorrow.

Analysts say the visit is designed to strengthen Turkey's claim to become a regional leader and his recent tough stance on Israel has made him hugely popular in Egypt. Under the former president Hosni Mubarak Egypt was a dependable ally to Israel.

"All of Egyptians love Erdogan for his respect of Islam and the kindred losses Turkey and Egypt have suffered at Israeli hands," said Haneefi Al Ashi, a 56-year-old grocer.

With its Islamist roots and election success, Mr Erdogan's Justice and Development Party could act as a possible model for the Muslim Brotherhood and other political groups as they prepare for the first free elections in 30 years.

Though Mr Badie said Egypt should forge deeper ties with the Turkish government, his endorsement fell short of encouraging Mr Erdogan to take on the responsibility of shaping Egypt's transition to democracy.

In recent years, the Muslim Brotherhood, Egypt's main opposition group, has witnessed a widening split in the organisation along generational lines. Younger members, who tend to hold more moderate views, are likely to embrace Mr Erdogan's visit.

Mr Erdogan also met leaders of Egypt's uprising, Pope Shenuda III, head of the Egyptian Coptic Orthodox Church, and candidates for Egypt's presidential elections.

Some Egyptians remained unconvinced that the meetings would have a lasting effect on Egypt's political landscape without the country first voting a government into power.

"Maybe there's a change in how politics are made in this region of the world, but it is too early to make any judgement," said Ahmed Atef Fayed, 32, a psychiatrist.

"The leadership examples we will look to follow depend on what kind of government we elect. Naturally, with Turkey as a neighbour and a Muslim country, it is seen as a good mirror for ourselves."

During Mr Erdogan's speech at Cairo's Opera house on Tuesday evening he told Arab leaders that the uprisings in the region were a "light of hope" for the oppressed.

"His speeches are likely to empower civil society," said Emad Gad, an analyst at Al Ahram Center for Strategic Studies in Cairo, adding that meeting with political leaders such as the Muslim Brotherhood, has shown that Egypt's "political powers are ready to deal with Mr Erdogan as moderate, democratic powers".

Turkey is hoping Egyptian leaders can learn lessons from the "Turkish experience", said Theodore Karasik, the director of the Dubai based Institute for Near East and Gulf Military Analysis.

"I think Turkey is trying to capture the sentiment of the younger generation so the new Egypt will be a democratic state where Islamist parties can flourish," he said.

Mr Gad said closer economic and diplomatic ties with Mr Erdogan were unlikely to jeopardise Egypt's peace treaty with Israel.

"The government's response to the Israeli embassy attacks shows that Egypt is not going to hurt its ties with Israel, and it cannot change that relationship because of strategic partnerships with Turkey."

Mr Gad said that though Mr Erdogan is likely to be angling for a strategic alliance with Egypt that will place Turkey as a major regional player, it is unlikely the talks will create any actual change.

* With additional reporting by Agence France-Presse

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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.”

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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Through Her Lens: The stories behind the photography of Eva Sereny

Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books

Profile Periscope Media

Founder: Smeetha Ghosh, one co-founder (anonymous)

Launch year: 2020

Employees: four – plans to add another 10 by July 2021

Financing stage: $250,000 bootstrap funding, approaching VC firms this year

Investors: Co-founders

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

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Habib El Qalb

Assi Al Hallani

(Rotana)

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4