FILE - This Monday, Dec. 11, 2017 file photo, Russian President Vladimir Putin, right, and Syrian President Bashar Assad watch the troops marching at the Hemeimeem air base in Syria. Nearly seven years into the conflict, the war in Syria seems on one level to be winding down, largely because of Russian-backed government victories and local cease-fires aimed at freezing the lines of conflict. (Mikhail Klimentyev, Sputnik, Kremlin Pool Photo via AP, File)
The support of Vladimir Putin has given Syrian president Bashar Al Assad free rein to hit back at rebels. Mikhail Klimentyev / Sputnik

Syria war winds down but tangled map belies conflict ahead



At a news conference announcing the end of yet another fruitless round of peace talks in Geneva last week, the UN envoy for Syria held up a color-coded map showing the divisions of territorial control in the war-torn country.

The multi-colored image displayed by a frustrated Staffan de Mistura is what Syria looks like today: a collage of mostly ravaged enclaves controlled by an assorted mix of local and foreign powers, each with a stake in the country's ongoing civil war.

Nearly seven years into the conflict, the war seems on one level to be winding down, largely because of Russian-backed government victories and local cease-fires aimed at freezing the lines of conflict.

Underscoring this perception is the fact that president Bashar Al Assad — however battered and bruised — has survived the conflict, sitting more comfortably now than at any time since the rebellion against his rule erupted in March 2011. The fight against the Islamic State group, which at one point controlled a third of the country, is almost over, with both Russia and the United States declaring victory in their mission to defeat the extremist group.

Yet the country is still a tangled mess, with violent conflict likely to continue for the foreseeable future. Despite stepped-up diplomatic efforts, the parties are no closer to reaching a peace settlement than they were in 2012, when the first round of peace talks was held in Switzerland.

Mr Al Assad will not voluntarily step aside and will likely stay on at least until 2021, when his current second presidential term ends. The opposition — down but not out — has not completely abandoned its goal of toppling him militarily. Fierce fighting continues in some areas and a humanitarian catastrophe unfolds in a government-besieged area a short drive away from the capital of Damascus.

It may have shifted to a more stable and less violent phase, but the Syrian conflict is likely to bleed through 2018 and potentially longer, as prospects for new conflicts loom large.

Thanks to Russia's military intervention, Syrian government forces have retaken large swaths of rebel and IS-held areas, including main cities such as Homs, Aleppo and most recently, Deir el-Zour. This month, they entered the rebel-held province of Idlib in northern Syria for the first time in years.

Toppling AMr Al Assad militarily — a prospect that appeared within reach less than two years ago — now seems to have been ruled out and even his most vocal opponents have moved away from their goal of ousting him.

But there are limitations to the Syrian army's military conquests and despite the assistance from allies Iran and Russia, Mr Al Assad is unlikely to achieve lasting control over the entire country. In fact, nearly half Syria's territory remains outside his control and major bloodshed still lies ahead if he moves to seize those areas, including the sprawling rebel-held Eastern Ghouta region near the capital and the northern province of Idlib, where al-Qaida-linked militants dominate.

Syrian Kurds in the north have also carved up a huge semi-autonomous enclave for themselves, estimated at nearly a quarter of the country. Mr Al Assad will likely seek to reassert his presence there at some point. This week, he called the Kurds "traitors" for working with a foreign country. A Kurdish-dominated group known as the Syrian Democratic Forces, backed by U.S. air power and ground support, cleared large areas from the Islamic State group in northern Syria, including the city of Raqqa which the extremist group had turned into its de facto capital.

Another potential flashpoint is the US presence in Syria. Even though the fight against IS has almost concluded, America has signaled it will keep troops in Syria until an overall peace settlement is reached.

During Russian president Vladimir Putin's brief visit to a Russian air base in Syria where he met Mr Al Assad earlier this month, a video that surfaced on the internet caught the moment a Russian general grabbed him by the arm, holding him back to allow Mr Putin to walk ahead.

It may have been a friendly maneuver, but for many Syria observers, the video was an apt reflection of just how much Assad owed Putin and how much sovereignty Assad has had to give up to stay in power.

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History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

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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.

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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Company Profile

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