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China’s Economic Recovery Loses Steam in May as Growth Slows Down

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China’s Economic Recovery Loses Steam in May as Growth Slows Down

China’s economy showed signs of weakening in May as the growth of industrial output and retail sales slowed down, according to official data released on Wednesday. The slowdown puts pressure on the government and the central bank to step up stimulus measures to support the recovery.

The data came after the People’s Bank of China (PBOC) cut the interest rate on its one-year policy loans by 10 basis points to 2.65% on Tuesday, following a similar reduction in its short-term rates earlier this week. The PBOC has shifted to an easing mode in recent months, with economists expecting more monetary policy stimulus in the coming months, such as interest-rate cuts or reserve requirement ratio (RRR) cuts.

Industrial Output and Retail Sales Growth Slows Down

Industrial Output and Retail Sales Growth Slows Down

According to the National Bureau of Statistics (NBS), China’s industrial output rose by 8.8% year-on-year in May, down from 9.8% in April and below market expectations of 9.2%. The slowdown was mainly due to a high base of comparison from last year, when China’s industrial production rebounded sharply from the pandemic-induced slump.

China’s retail sales grew by 12.4% year-on-year in May, down from 17.7% in April and below market expectations of 14%. The slowdown was partly due to a resurgence of Covid-19 cases in some regions, which dampened consumer confidence and spending.

Other Economic Indicators Also Show Weakness

Other Economic Indicators Also Show Weakness

Other economic indicators also pointed to a loss of momentum in China’s recovery in May. For instance:

  • Fixed-asset investment increased by 15.4% year-on-year in the first five months of 2021, down from 19.9% in the first four months and below market expectations of 16.9%.
  • The urban unemployment rate edged up to 5% in May from 4.9% in April, indicating a sluggish labor market recovery.
  • The consumer price index (CPI) rose by 1.3% year-on-year in May, down from 0.9% in April and below market expectations of 1.6%. The slowdown was mainly due to a decline in food prices, especially pork prices, which fell by 23.8% year-on-year.
  • The producer price index (PPI) surged by 9% year-on-year in May, up from 6.8% in April and above market expectations of 8.5%. The surge was mainly due to rising commodity prices, which increased the costs for manufacturers.

Stimulus Measures Under Consideration

Stimulus Measures Under Consideration

The weakening economic data has raised concerns about the sustainability of China’s recovery, which faces several headwinds, such as weak business and consumer confidence, a faltering property market, and slowing global demand for exports.

To counter these challenges, authorities are reportedly considering a broad package of stimulus measures to support areas such as real estate and domestic demand, according to people familiar with the matter. The State Council may discuss those policies as soon as Friday.

Some of the possible measures include:

  • Increasing fiscal spending on infrastructure projects and social welfare programs
  • Expanding local government bond issuance quotas
  • Lowering taxes and fees for small businesses and households
  • Relaxing property market restrictions and mortgage rules
  • Boosting consumption subsidies and vouchers
  • Encouraging innovation and green development

Conclusion

China’s economic recovery lost steam in May as growth in industrial output and retail sales slowed down, putting pressure on policymakers to step up stimulus measures. The central bank has already cut its policy rates twice this week, and more monetary easing is expected in the coming months. Authorities are also considering a broad package of fiscal and structural policies to support the economy amid various headwinds.

How England’s Women Won the ‘Forgotten Ashes’ of 2005

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harakhaber
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How England’s Women Won the ‘Forgotten Ashes’ of 2005
How England’s Women Won the ‘Forgotten Ashes’ of 2005 (Image: BBC)

In 2005, England’s men’s cricket team achieved a historic victory over Australia in the Ashes, ending a 19-year drought and sparking a nationwide celebration. But few people remember that England’s women’s team also won the Ashes that summer, ending a 42-year wait and overcoming a formidable Australian side.

This is the story of how England’s women won the ‘Forgotten Ashes’ of 2005, and why their achievement deserves more recognition and appreciation.

The Underdogs Against the World Champions

Australia was the undisputed champion of women’s cricket in 2005. They had won the World Cup in 2000 and 2005 and had dominated England for decades. They had a fearsome pace bowler in Cathryn Fitzpatrick, two world-class spinners in Shelley Nitschke and Karen Rolton, and a deep batting line-up that could score runs from any position.

England, on the other hand, was a young and inexperienced team, led by Clare Connor, who had endured a tough decade against Australia. They had not won an Ashes series since 1963 and had lost the previous one in 2003 by an innings and four runs.

The odds were stacked against them, but they had a new coach Richard Bates, who instilled a fresh mindset and confidence in the team. They also had some talented players who were ready to make their mark on the international stage, such as Katherine Sciver-Brunt, Arran Brindle, Charlotte Edwards, and Laura Newton.

Claire Connor (right) talks with fellow captain Michael Vaughan (center) and then Prime Minister Tony Blair at a Downing Street drinks reception
Claire Connor (right) talks with fellow captain Michael Vaughan (center) and then Prime Minister Tony Blair at a Downing Street drinks reception (Image: BBC)

The First Test: A Draw That Felt Like a Win

The first Test of the two-match series was played at Hove, Connor’s home ground. Australia won the toss and elected to bat first, and soon piled on the runs. Despite losing eight wickets for 191, they recovered to post 355, thanks to Nitschke’s unbeaten 81 from number 10.

England’s reply was shaky, as they lost three early wickets for 14 runs. However, Brindle and Edwards steadied the ship with a partnership of 132 runs, before Brindle went on to score a magnificent century. She batted for over six hours and faced 301 balls for her 101 not out, becoming only the second woman to carry her bat through an inning.

England managed to avoid the follow-on by scoring 273 but still trailed by 82 runs. Australia decided not to enforce it and batted again to set a target for England. They declared at 231-7, leaving England with a daunting chase of 314 runs in a little over two sessions.

England knew they had little chance of winning, so they focused on saving the match. They lost four wickets for 71 runs, but Newton and Connor dug in and batted out time. They added 84 runs for the fifth wicket before Connor was dismissed with nine overs left. Newton remained unbeaten on 77, as England finished at 166-6.

The match ended in a draw, but it felt like a win for England. They had shown resilience and character to deny Australia a victory and had given themselves a boost of confidence for the second Test.

Jo Watts, Jenny Gunn, and Isa Guha celebrate England's two-run win over Australia in the one-day meeting at Stratford-upon-Avon
Jo Watts, Jenny Gunn, and Isa Guha celebrate England’s two-run win over Australia in the one-day meeting at Stratford-upon-Avon (Image: BBC)

The Second Test: A Historic Win at Worcester

The second Test was played at Worcester, where England had not lost a Test since 1984. Australia won the toss again and chose to bat first. This time, England’s bowlers were more disciplined and effective, as they dismissed Australia for 154. Sciver-Brunt was the star performer with five wickets for 40 runs.

England’s batsmen then took charge of the game, as they scored 344 in their first innings. Edwards scored her maiden Test century with a fluent knock of 117, while Newton (68) and Brindle (52) also contributed with half-centuries. England had a commanding lead of 190 runs.

Australia fought back in their second innings, as they scored 231-9 declared. Rolton scored an unbeaten century with 114 not out, while Nitschke (40) and Fitzpatrick (38) also chipped in with valuable runs. Australia set England a target of 42 runs to win the match and the series.

England lost two early wickets for nine runs, but Edwards and Connor saw them home with an unbroken stand of 33 runs. Edwards hit the winning boundary off Fitzpatrick and raised her arms in triumph as her teammates ran onto the field to celebrate.

England had won by eight wickets and had secured their first Ashes series win since 1963. They had also become only the second team after New Zealand to beat Australia in a Test series.

England won three of the next five Ashes series after their landmark 2005 success
England won three of the next five Ashes series after their landmark 2005 success (Image: BBC)

The Aftermath: A Bittersweet Celebration

England’s women had achieved a remarkable feat, but they did not receive the same attention and recognition as their male counterparts. They were invited to join the open-top bus parade in London, but they were overshadowed by the men’s team. Many people thought they were the wives and girlfriends of the men’s players, rather than the players themselves.

They also did not receive any financial rewards or sponsorship deals for their victory. Sciver-Brunt, who was the player of the series with 14 wickets and a half-century, only got a 50% discount from her kit supplier. Connor was the only one who received a CBE, while none of the other players got any honors.

They did, however, receive praise and respect from their peers and opponents. The Australian team congratulated them on their win and acknowledged their skill and spirit. The England men’s team also recognized their achievement and invited them to join their celebrations at Trafalgar Square.

England’s women had won the ‘Forgotten Ashes’ of 2005, but they had also laid the foundation for a brighter future for women’s cricket. They had inspired a new generation of girls to take up the game and had paved the way for more opportunities and support for women’s cricket.

England's women pose with the Ashes trophy in their "feral" suits at tea during the men's fifth Test at the Oval
England’s women pose with the Ashes trophy in their “feral” suits at tea during the men’s fifth Test at the Oval (Image: BBC)

They had also proved to themselves and the world that they could compete with and beat the best in the business.

They had made history, and they deserved to be remembered.

Binance US Faces SEC Asset Freeze: What It Means for Crypto Investors

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harakhaber
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Binance US Faces SEC Asset Freeze: What It Means for Crypto Investors
Binance US Faces SEC Asset Freeze: What It Means for Crypto Investors

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance.US, the American affiliate of the world’s largest crypto exchange Binance, and its founder Changpeng Zhao (CZ), accusing them of violating US securities laws and putting customer funds at risk. The SEC is seeking to freeze billions of dollars of assets on the crypto platform during the legal battle, which could have serious consequences for Binance.US’s operations and customers.

According to the SEC’s complaint, Binance.US and CZ have been secretly allowing US customers to trade on the unregulated Binance.com platform, while publicly claiming that they were restricted. The SEC also alleges that Binance.US and CZ have been controlling the Binance.US platform behind the scenes, despite claiming that it was a separate and independent entity. Moreover, the SEC claims that Binance.US and CZ have been commingling customer assets with their own and diverting them to a third party owned by CZ, called Sigma Chain.

The SEC charges Binance.US and CZ with operating unregistered securities exchanges, broker-dealers, and clearing agencies; offering and selling unregistered securities, including Binance’s own crypto tokens; and misleading investors and regulators about their trading controls and oversight. The SEC’s chair Gary Gensler said that “Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law.”

Binance.US has filed a motion to oppose the SEC’s request for an asset freeze, arguing that it would cripple its business and harm its customers. Binance.US said that its customer assets are safe and that there is no need for the “draconian relief” sought by the SEC. However, one of Binance.US’s banking partners has already frozen its account and another has announced that it will stop holding its assets from June 14.

The lawsuit is the latest in a series of regulatory actions against crypto companies in the US and around the world. Binance has faced scrutiny from authorities in several countries, including Germany, Japan, Canada, and the UK. The SEC has also sued Coinbase, the largest US crypto exchange, for failing to register with the agency.

The case is expected to have significant implications for the crypto industry and investors, as it could set a precedent for how US securities laws apply to crypto platforms and tokens. The hearing on the SEC’s motion for an asset freeze is scheduled for Tuesday before Judge Amy Berman Jackson in Washington federal court.

How Turks Are Using Tether to Protect Their Wealth from Hyperinflation

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harakhaber
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How Turks Are Using Tether to Protect Their Wealth from Hyperinflation
How Turks Are Using Tether to Protect Their Wealth from Hyperinflation

Turks are flocking to stablecoins like tether (USDT) as their national currency, the lira, continues to lose value against the U.S. dollar. The lira hit a record low after the central bank stopped intervening in the foreign exchange market following the reelection of President Erdogan. In this article, we will explore why Turks are choosing tether over other crypto assets and how stablecoins can help them preserve their purchasing power in times of economic turmoil.

Tether is a cryptocurrency that is pegged to the U.S. dollar, meaning that one USDT is always worth one USD. Unlike other cryptocurrencies, which are volatile and subject to market fluctuations, tether maintains a stable value and can be easily exchanged for fiat currencies. Tether is also widely accepted on many crypto platforms and has high liquidity.

According to data from Kaiko, a crypto market data provider, tether transactions in lira have been increasing since May, despite the global crackdown on crypto assets. Tether’s share of trading volumes on Btcturk, a leading Turkish crypto exchange, reached 20% in June, compared to 1% on Binance, the world’s largest crypto exchange.

The reason behind this trend is simple: Turks are looking for a safe haven from the rampant inflation that is eroding their savings and income. The lira has lost 80% of its value since 2018 and 20% in 2023 alone. The inflation rate reached 19.7% in May, well above the central bank’s target of 5%. The situation worsened after the central bank withdrew its support for the lira following the controversial reelection of President Recep Tayyip Erdogan, who has been accused of undermining the independence of the monetary authority and pursuing unorthodox policies.

With limited access to dollars or gold due to strict regulations, Turks have turned to crypto assets as an alternative store of value. However, not all crypto assets are suitable for this purpose. Major Cryptocurrencies like Bitcoin and Ethereum are subject to high volatility and regulatory uncertainty. Stablecoins like Tether offer a more reliable and convenient option for Turks who want to hedge against inflation and currency devaluation.

“Investing in stablecoins allows people to keep the value of their wealth, it’s one of the ways to hold on to some value when inflation is this high,” said Ebru Güven, a former banker and university lecturer. “Stablecoins are also easier to use than other crypto assets, as they can be transferred quickly and cheaply across borders and platforms.”

Stablecoins are not without risks, however. Tether has faced scrutiny over its reserves and transparency, as well as legal challenges from regulators and authorities. Some critics have also questioned the sustainability of its peg to the dollar and its impact on the crypto ecosystem. Moreover, stablecoins are still subject to regulatory uncertainty and potential bans in some jurisdictions.

Nevertheless, for many Turks who are facing economic hardship and currency instability, stablecoins like tether offer a viable solution to protect their wealth and access global markets. As long as the demand for stablecoins remains high in Turkey, the tether will likely continue to dominate the local crypto scene.

Why China’s Stock Market Is Losing Its Shine

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harakhaber
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Why China’s Stock Market Is Losing Its Shine
Why China’s Stock Market Is Losing Its Shine

China’s stock market was once the darling of Wall Street, with investors betting on a speedy recovery from the pandemic and a booming economy. But after a $1.5 trillion rout that wiped out almost 20% of its value, the outlook has turned gloomy.

In this blog post, we’ll explore some of the reasons behind China’s stock market slump and what it means for investors. We’ll also look at some of the opportunities and challenges that lie ahead for the world’s second-largest economy.

What Went Wrong?

There are several factors that have contributed to China’s stock market woes, including:

  • Economic slowdown: China’s economic recovery has lost steam in recent months, with data showing weaker-than-expected growth in industrial output, retail sales, and exports. The Delta variant of Covid-19 has also disrupted business activity and consumer confidence.
  • Policy uncertainty: China’s authorities have been tightening regulations on various sectors, such as technology, education, and property, to curb monopolies, protect consumers and reduce social inequality. While these moves may benefit the long-term development of the economy, they have also created uncertainty and volatility for investors.
  • US-China tensions: The relationship between China and the US remains tense, with disputes over trade, human rights, and cybersecurity. The US has also imposed sanctions on some Chinese companies and officials, limiting their access to global markets and capital.
  • Lack of stimulus: Unlike other major economies, China has not unleashed a massive fiscal or monetary stimulus to support its recovery. Instead, it has adopted a more targeted and prudent approach, focusing on maintaining financial stability and preventing excessive debt. This means that there is less room for policy easing in case of further shocks.

What’s Next?

Despite the challenges, China’s stock market is not doomed. There are still some bright spots and opportunities for investors who are willing to take a longer-term view. Some of these include:

  • Valuation: China’s stocks are trading at attractive valuations compared to their historical averages and global peers. According to Goldman Sachs, the MSCI China Index is trading at 11 times forward earnings, which is 30% lower than its 10-year average and 40% lower than the MSCI World Index.
  • Innovation: China remains a leader in innovation and technology, with a large pool of talent and resources. Some of the sectors that are expected to benefit from China’s digital transformation include artificial intelligence, cloud computing, e-commerce, and biotechnology.
  • Consumption: China’s domestic consumption is still a key driver of its economic growth, with a rising middle class and a young population. Some of the areas that are likely to see strong demand include health care, education, entertainment, and travel.
  • Opening up: China is gradually opening up its financial markets to foreign investors, offering more access and opportunities. For example, China has recently lifted the quota limits on two major schemes that allow foreign investors to buy Chinese stocks and bonds.

How to Invest?

Investing in China’s stock market is not for the faint-hearted. It requires patience, research, and diversification. Here are some tips for investors who want to tap into China’s potential:

  • Do your homework: Before investing in any Chinese company or sector, it is important to do your own due diligence and understand the risks and opportunities involved. You should also keep an eye on the regulatory developments and policy changes that may affect your investments.
  • Choose your strategy: Depending on your risk appetite and investment goals, you may opt for different strategies when investing in China’s stock market. For example, you may choose to invest directly in individual stocks or ETFs that track specific sectors or indices. Alternatively, you may prefer to invest indirectly through mutual funds or hedge funds that have exposure to China.
  • Diversify your portfolio: To reduce your risk and volatility, you should diversify your portfolio across different asset classes, geographies, and sectors. You should also balance your exposure to growth-oriented stocks with more defensive ones that offer stable dividends and earnings.

Conclusion

China’s stock market has been under pressure lately due to various headwinds and uncertainties. However, this does not mean that it has lost its appeal or potential. Investors who are willing to look beyond the short-term noise and focus on the long-term fundamentals may find some attractive opportunities in China’s stock market.

Thailand’s cannabis lovers face comedown amid legalization U-turn

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harakhaber
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Thailand’s cannabis lovers face comedown amid legalization U-turn
Thailand’s cannabis lovers face comedown amid legalization U-turn

Bangkok, Thailand – On Thailand’s Ganja TV, cannabis enthusiasts have followed the drug’s swift journey from banned narcotic, to legal plant for medicinal use, to recreational high.

Now, one year after Thailand decriminalized cannabis, the Facebook page’s 90,000-odd followers are looking on bemused as rival politicians threaten to make dispensaries and open consumption illegal once more – or at least tightly controlled.

At the center of attention is Pita Limjaroenrat, the prime minister-in-waiting whose Move Forward Party (MPF) scored an upset to come first place in last month’s general elections.

While MFP is widely viewed as the most liberal of Thailand’s political parties, cannabis advocates say it is leading the drive to rein in recreational use, casting a pall over the country’s multibillion-dollar cannabis industry.

“What made you change so much?” Ganja TV said in a recent post accompanying a video of the MFP leader hailing the potential of cannabis businesses to fund schools and provide “immense opportunities” for Thailand.

Pita now says the cannabis boom should be put on pause to curb widespread recreational use until the incoming government can pass a proposed Cannabis Act to draw clear lines on where the drug can be sold and consumed.

Pita Limjaroenrat, who is aiming to be Thailand’s next prime minister, has called for a pause on the recreational use of cannabis
Pita Limjaroenrat, who is aiming to be Thailand’s next prime minister, has called for a pause on the recreational use of cannabis (Image: Athit Perawongmetha/Reuters)

That chimes with the views of Pita’s alliance of eight parties, some of which hail from the conservative Muslim-majority southern provinces of Thailand that are trying to form a government over the coming weeks.

To form a ruling coalition, with Pita as premier, they need to secure 376 seats to have a parliamentary majority. Currently, they have 313.

The alliance’s stance on cannabis has angered Health Minister Anutin Charnvirakul, who pushed for liberalization and refuses to back any government seeking to roll back the laws – even temporarily. Anutin’s Bhumjaithai Party holds 71 seats, giving it potential kingmaker status in deciding the composition of the next government.

As the politicians bicker, cannabis advocates are increasingly upset about the clouds gathering over their industry.

“I started this [Ganja TV] in 2019, hoping to be a media platform to educate people about the benefits of medical marijuana,” K Lert, the editor of Ganja TV, told Al Jazeera.

“Now everyone is worried about kids being exposed to cannabis, yet they haven’t passed the Cannabis Act to stop that happening. It makes no sense.”

For investors, the legal uncertainty has sapped confidence in an industry that flourished in the year following decriminalization.

“I’ve invested about $1m already. If it becomes illegal again I would have to stop the investment and find a market elsewhere,” Aphichai Techanitisawad, 49, founder and CEO of cannabis seller Grasshopper, told Al Jazeera.

“Rolling back the law would send a ripple effect across not only the weed industry but many others, including real estate – there are more than a thousand dispensaries in Bangkok alone – so that’s a lot of income disappearing for landlords. Not to mention other supported equipment for growing etc.”

Cannabis has become strikingly visible in Thailand since the kingdom – which once had harsh penalties for possession – suddenly transitioned into one of the most liberal environments for its sale and use in the world.

Cannabis use has become much more visible in Thailand since its decriminalization last year
Cannabis use has become much more visible in Thailand since its decriminalization last year (Image: Athit Perawongmetha/Reuters)

Taking advantage of the legal vacuum created by the failure to pass the Cannabis Act, Thais and tourists’ alike smoke openly on the streets, and illegal imports – mainly from North America – have flooded the market, giving plenty of ammunition to critics of libertine cannabis culture.

“Legalization has opened opportunities; it’s been great. But I’m very disappointed at the political game we’re stuck in without the Cannabis Act,” Faris Pitsuwan, who owns the Siam Land of Smile dispensaries in the popular island resorts, including Phi Phi and Koh Lanta, told Al Jazeera. “It has to come with regulation.”

For Kobboon Chatrakrisaeree, a small-time grower in a Bangkok suburb, the initial euphoria that followed decriminalization has tapered off.

“When we don’t have a law to regulate it, it starts to be smeared and tainted by sloppy business owners who sell to kids and folks who just pull out a bong and smoke on the street as if they were in Canada,” Kobboon told Al Jazeera. “It’s all still new to Thai society.”

Looking back on Thailand’s year-long experiment in decriminalization, Kobboon said he believes Pita wants to reset the cannabis scene for the safety and economic benefit of Thais.

“Ganja is a beautiful creation, not just for people to get rich,” he said.

Source: AL JAZEERA

Aston Martin axes mid-engine Ferrari 296 GTB rival

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harakhaber
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Aston Martin axes mid-engine Ferrari 296 GTB rival
Aston Martin axes mid-engine Ferrari 296 GTB rival

Aston Martin has announced that it will no longer develop a mainstream mid-engined supercar to rival the Ferrari 296 GTB. Instead, the company will focus on producing limited-run halo models, such as the Valkyrie and Valhalla.

The decision comes as Aston Martin looks to focus on profitability and exclusivity. The company’s chairman, Lawrence Stroll, said that “volume wasn’t important” and that Aston Martin would not make a “normal” mid-engine car.

The Valhalla is set to be limited to just 999 units and will be built around a carbon fiber monocoque. It will be powered by a turbocharged plug-in-hybrid V8 engine that produces more than 1,000 horsepower. This will allow the Valhalla to challenge the Ferrari SF90 Stradale for the fastest Nürburgring lap time.

The Valhalla is expected to be priced between £600,000 and £700,000. It is due to go on sale in 2023.

Aston Martin axes mid-engine Ferrari 296 GTB rival
Aston Martin axes mid-engine Ferrari 296 GTB rival

Stroll also revealed that Aston Martin is working on a new hypercar, codenamed AM-RB 004. This car is expected to be even more powerful and exclusive than the Valkyrie, with a production run of just 300 units.

The move to focus on limited-run halo models is a significant change of direction for Aston Martin. In recent years, the company has focused on producing high-volume sports cars, such as the Vantage and DB11. However, these cars have not been as profitable as the company had hoped.

The Valkyrie and Valhalla are both more expensive and exclusive than Aston Martin’s traditional sports cars. However, they are also more likely to be profitable. The Valkyrie is already sold out, and the Valhalla is expected to be in high demand.

Aston Martin’s new focus on profitability and exclusivity is a sign that the company is serious about its future. The company is hoping to become a more successful luxury brand, and it believes that limited-run halo models are the way to achieve this goal.

Source: Autocar

Pakistan Needs Convincing Budget to Secure IMF Funding

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Pakistan Needs Convincing Budget to Secure IMF Funding
Pakistan Needs Convincing Budget to Secure IMF Funding

Pakistan is facing a major economic crisis, with inflation at a record high and currency reserves at a critical level. The country is in the final stages of an IMF bailout program, but there is only one more review left before the program expires.

In order to secure the final review, the IMF has set a number of conditions for Pakistan to meet. These include restoring the proper functioning of the foreign exchange market, passing a budget that is consistent with the IMF’s program objectives, and securing firm and credible financing commitments to close a $6 billion gap.

The government has made some progress in meeting these conditions. It has removed daily limits on fluctuations in the exchange rate and secured commitments for $4 billion in financing from Saudi Arabia and the United Arab Emirates. However, there is still a lot of work to be done before the IMF review at the end of June.

The government is also facing pressure to increase social spending in order to help the most vulnerable people in the country. However, this will require the government to find ways to increase revenue or cut spending in other areas.

With the general election looming, there is a risk that the government will make populist pre-election promises that will be difficult to keep. This could jeopardize the IMF program and make it even harder for Pakistan to get out of its economic crisis.

The next few weeks will be critical for Pakistan’s economy. The government must make significant progress in meeting the IMF’s conditions in order to secure the final review and avoid a further economic meltdown.

Here are some additional details about the situation:

  • The IMF has been providing Pakistan with financial assistance since 2019. The current bailout program, which was worth $6.5 billion, was approved in 2021.
  • Pakistan’s economy has been struggling for several years. The country has been hit by a number of factors, including high inflation (37.9% in May), low foreign reserves, and a widening current account deficit.
  • The general election is scheduled to be held in 2023. The current government is led by the Pakistan Democratic Movement (PDM).

What does this mean for Pakistan?

The IMF review is a critical juncture for Pakistan’s economy. If the government is able to meet the IMF’s conditions, it will secure the final review and unlock billions of dollars in additional funding. This would help to stabilize the economy and put Pakistan on a path to recovery.

However, if the government is unable to meet the IMF’s conditions, it could face a number of negative consequences. These could include a further economic meltdown, a devaluation of the rupee, and a rise in inflation.

The government has a lot of work to do in the next few weeks. It must make significant progress in meeting the IMF’s conditions in order to secure the final review and avoid a further economic meltdown.

Source: Reuters

Iran Unveils Hypersonic Missile, Raising Concerns in the West and Israel

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Iran Unveils Hypersonic Missile, Raising Concerns in the West and Israel
Iran Unveils Hypersonic Missile, Raising Concerns in the West and Israel (Image: Al-Jazeera)
  • Iran has rejected skepticism about its development of hypersonic missiles, which could reach Israel in seven minutes.

Iran has unveiled a new hypersonic ballistic missile, the Fattah, which it claims can travel at up to Mach 15 and has a range of 1,400 kilometers. The unveiling of the missile has raised concerns in the West and Israel, who fear that it could be used to target their countries.

Hypersonic missiles are a new class of weapons that travel at five times the speed of sound or more. This makes them much more difficult to detect and intercept than traditional ballistic missiles. The Fattah is said to be capable of performing complex maneuvers, making it even harder to track.

Iran’s development of hypersonic missiles is part of a broader effort to modernize its military. The country has also been developing long-range ballistic missiles and drones, which could be used to target Israel or other countries in the region.

The unveiling of the Fattah comes at a time of heightened tensions between Iran and the West. The United States and its allies have imposed crippling sanctions on Iran over its nuclear program, and there have been several attacks on Iranian ships in the Gulf of Oman in recent months.

Iran has denied responsibility for the attacks, but the United States and its allies believe that Iran is behind them. The attacks have raised the risk of a wider conflict between Iran and the West.

The unveiling of the Fattah is likely to further increase tensions in the region. The missile could pose a serious threat to Israel and other countries in the region, and it could lead to a new arms race in the Middle East.

What is a hypersonic missile?

A hypersonic missile is a type of missile that travels at speeds of at least five times the speed of sound, or Mach 5. This is significantly faster than traditional ballistic missiles, which typically travel at speeds of Mach 2 to Mach 3.

The speed of hypersonic missiles makes them very difficult to detect and intercept. Traditional radar systems are not able to track hypersonic missiles, and they are also difficult to shoot down with traditional air defense systems.

Why is Iran developing hypersonic missiles?

Iran is developing hypersonic missiles for a number of reasons. First, the missiles could be used to target Israel, which is located just 800 kilometers from Iran. Second, the missiles could be used to deter the United States and its allies from attacking Iran. Third, the missiles could be used to project power in the region.

What are the implications of Iran’s development of hypersonic missiles?

Iran’s development of hypersonic missiles is a significant development that could have far-reaching implications for the region. The missiles could pose a serious threat to Israel and other countries in the region, and they could lead to a new arms race in the Middle East.

The development of hypersonic missiles also raises concerns about the potential for an accidental or unintended escalation of conflict. If Iran were to use hypersonic missiles against Israel, there is a risk that the United States or its allies could be drawn into a wider conflict.

The development of hypersonic missiles is a reminder of the growing threat posed by advanced weapons systems. These weapons are becoming increasingly difficult to defend against, and they could have a major impact on the future of warfare.

Source: Al-Jazeera

Crypto Billionaires’ Wealth Crushed by SEC After Big 2023 Bounce

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Crypto Billionaires' Wealth Crushed by SEC After Big 2023 Bounce
Crypto Billionaires' Wealth Crushed by SEC After Big 2023 Bounce (Image: Reuters/Bloomberg)
  • The SEC’s crackdown on Binance and Coinbase has sent shockwaves through the crypto industry

The Securities and Exchange Commission (SEC) has filed lawsuits against two of the largest cryptocurrency platforms in the world, Binance and Coinbase. The lawsuits allege that the companies violated securities laws by failing to register their tokens as securities.

The news has sent shockwaves through the crypto industry, with prices for many cryptocurrencies tumbling. Binance CEO Changpeng Zhao’s net worth has reportedly fallen by $1.4 billion, while Coinbase CEO Brian Armstrong’s net worth has fallen by $361 million.

The SEC’s crackdown is a major setback for the crypto industry, which has been hoping to gain legitimacy from regulators. The lawsuits could make it more difficult for crypto companies to raise money and operate in the United States.

The SEC’s actions have also raised concerns about the future of cryptocurrency regulation. Some experts believe that the SEC is going too far in its efforts to regulate the industry, while others believe that the SEC is not doing enough to protect investors.

It remains to be seen how the SEC’s crackdown will play out in the long run. However, it is clear that the lawsuits have had a significant impact on the crypto industry.

Here are some additional details about the lawsuits:

  • The SEC alleges that Binance violated securities laws by selling tokens to US investors without registering them as securities.
  • The SEC alleges that Coinbase violated securities laws by allowing users to trade tokens that were not registered securities.
  • The SEC is seeking unspecified monetary damages from both companies.
  • The companies have denied the allegations and have vowed to fight the lawsuits.

The SEC’s crackdown is a major setback for the crypto industry, but it is too early to say what the long-term impact will be. The lawsuits could make it more difficult for crypto companies to raise money and operate in the United States. However, the lawsuits could also lead to increased regulation of the industry, which could ultimately benefit investors.

Source: Bloomberg

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