UK warns against return to conflict and urges Yemen's Houthis to extend ceasefire

Britain's Foreign Secretary James Cleverly has said that Yemen must not return to conflict as he called on the Houthi rebels to return to negotiations before the expiry of a UN-brokered ceasefire agreement on Sunday.

Mr Cleverly said that the cessation of hostilities had brought "tangible benefits" to Yemenis, adding that he welcomed the government of Yemen’s commitment to extend the truce further.

"Houthis continue to endanger the talks and deny Yemenis a peaceful future," he said in a statement issued by the UK's Foreign, Commonwealth and Development Office.

“We call on the Houthis to engage constructively with UN Special Envoy Hans Grundberg’s efforts to broker an extension to the truce, so that serious dialogue about achieving a peaceful, inclusive and Yemeni-led future can take place".

The FCDO said that since the truce, civilian casualties have fallen dramatically in Yemen and cross-border attacks by the Houthis into Saudi Arabia and the UAE had stopped.

This came as UN Secretary General Antonio Guterres said that both sides in the conflict should prioritise the national interests of the Yemeni people and “choose peace for good.”

His statement followed a stark warning by Mr Grundberg that the risk of a return to fighting “is real.”

Children peer out the window of their family's house, amid a UN-brokered truce in Sanaa, Yemen. EPA.

Yemen’s civil war began in 2014 when the Houthis seized the capital, Sanaa, and much of northern Yemen and forced the internationally recognised government into exile.

Both sides accepted the truce for two months at the start of the Muslim holy month of Ramadan on April 2.

It has been extended twice, and Mr Grundberg and the UN secretary general have been pushing both sides for a longer extension to try to start negotiations toward ending the conflict.

“Over the past six months,” Mr Guterres said, “the government of Yemen and the Houthis have taken important and bold steps towards peace by agreeing to, and twice renewing, a nationwide truce negotiated by the United Nations.”

With the Sunday deadline looming, he strongly urged the parties to expand the duration and terms of the truce in line with a proposal presented by Mr Grundberg that has not been made public.

Nabil Jamel, a government negotiator, said the UN proposal includes ways to pay civil servants in Houthi-held territories and reopen roads of blockaded cities, including Taiz.

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.

Habtoor interview

The UAE should temporarily scrap VAT, Khalaf Al Habtoor says

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