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China and Afghanistan hold discussions on belt and Road participation, mining
The Afghan Taliban Foreign Ministry reported that China informed Afghanistan on Wednesday of Beijing's interest in exploring and mining mineral deposits in Afghanistan and its desire for Kabul to join the Belt and Road Initiative. The Chinese Foreign Minister Wang Yi visited Kabul on Tuesday and met with Afghanistan's Acting Foreign Minister Amir Khan Muttaqi. According to a ministry statement, both countries want to expand their cooperation in various areas. According to an Afghan statement, Wang stated that both countries are working together to remove barriers in the trade of agricultural products and to increase Afghanistan's imports from China. It said that Wang Yi had also stated that China intended to begin practical mining activities in this year. Beijing has not yet released its summary of the discussions. China appointed the first ambassador to Afghanistan during the Taliban regime and sought to strengthen its relationship with the hardline Islamists who took over the war-torn nation in 2021. Analysts say that the impoverished country is rich in mineral deposits such as copper, iron, and lithium. This could help Beijing improve its supply chain security. (Reporting and writing by Mohammad Yunus Yawar, editing by YPrajesh).
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Air Canada's labor agreement could reshape the pay of North American airline crews
The latest blow to airline compensation systems that do not pay cabin crews fully for their work hours is a crippling strike of Air Canada flight attendants who grounded thousands flights over unpaid wages and unpaid overtime. The union representing more than 10,000 Air Canada Flight Attendants announced on Tuesday that they had reached a tentative agreement to end unpaid labor, but did not provide any further details. Analysts believe that any gains made could have a positive impact on upcoming contract talks in North America. The deal may also increase structural costs in an industry that is cyclical. The second largest operating cost for airlines is labor. The four-day walkout that stranded over 500,000 passengers reflects unrest among U.S. carriers where flight attendants are not allowed to leave their jobs until the National Mediation Board gives permission. Last year, cabin crews from American, Southwest and Alaska Airlines rejected contract agreements because they didn't address their concerns over unpaid work. United Airlines flight attendants voted against a tentative labor agreement worth $6 billion last month, because it did not include compensation for the time spent on the ground prior to and after flights. Before returning to negotiations in December, the union of Chicago's airline is conducting a survey among its members. United and the union didn't immediately respond to comments. Cabin crews are paid for a certain number of hours. However, the majority of their compensation is given when planes are moving, ignoring important tasks such as boarding, deplaning and other ground operations. The unions claim that this is a significant amount of unpaid work. In the past, airline workers were able to secure concessions in contract negotiations because the industry was suffering due to economic downturns and pandemics. Flight attendants are resentful due to a rise in inflation, stagnant salaries, and an increased workload. This has fueled their demands for pay reform. The Air Canada strike is a positive for all negotiations. "It defined the problem of unreasonable expectations for flight attendants working without pay", said Sara Nelson. She is the international president of Association of Flight Attendants - CWA, which represents over 55,000 flight attendants on 20 airlines including United. The striking flight attendants inspire all workers. Nelson spoke to Wesley Lesosky on Monday, the head of Air Canada’s flight attendants' union, in order to coordinate positions. Representatives of both unions confirmed that this was done. Shanyn Elliott is an Air Canada Rouge flight hostess who said that when she began her job in 2017, she would take long-haul flights for extra money as the C$23 (16.60) per hour wage she earned did not cover living expenses. Elliott, the head of the strike committee of Air Canada flight attendants in the Canadian Union of Public Employees, added that frequent delays following the pandemic resulted in longer working hours. Michael Rousseau, CEO of Air Canada, said that the industry must review its compensation model. In an interview he stated that the Canadian carrier had accepted the concept for ground pay and added other airlines would likely examine their own models. Rousseau said, "I think that the industry needs to look more closely at this in time." "We should all be open to changes." American and Alaska compensate their attendants for the time spent boarding in their new agreements. American's flight crews are now compensated for the time between flights. These gains were made after Delta Air Lines - whose flight attendants do not belong to a union - instituted boarding compensation for cabin staff at half their hourly wage in 2022, when they tried to organize. HIGHER COSTS The cost of operating airlines would be increased if passengers were charged for time spent on the plane and for time spent at the airport. American Airlines' new contract with flight attendants is estimated to cost an additional $4.2 billion in five years. Last month, the company blamed its underperformance in margins on increased labor costs. Matthew Lee, an analyst at Canaccord Genuity, estimates that the proposed wage increases at Air Canada could result in additional costs of up to C$140 millions. Air Canada's wages have increased by about 26% in the past year. A weak passenger flow to the U.S. is a problem for the airline, as are the strained relations between Canada and the U.S. This has led to a 40% drop in profit quarter-on-quarter. Analysts warn that if you hold the line with costs, it could lead to industrial peace. John Gradek is a McGill University lecturer on supply networks and aviation. He said, "The movement has begun."
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Ukraine's Zelenskiy says Russia struck gas distribution station in Odesa region
Volodymyr Zelenskiy, the Ukrainian president, said that Russia had struck a gas station in Odesa, a region in southern Ukraine. He added that this was a sign of the need to exert economic pressure on Russia, despite the current U.S. effort to end the conflict. Zelenskiy, writing on X, said: "All these strikes are demonstrations that confirm the necessity to exert pressure on Moscow and impose new tariffs and sanctions until diplomacy becomes fully effective." Zelenskiy didn't specify how important a gas station was. Gas supplies to the area were not reported as a problem by local authorities. Ukraine uses gas for both industrial and domestic needs. The Russian Defence Ministry has confirmed that the port infrastructure, which it says is "used to provide fuel to Ukrainian forces", was attacked. In recent weeks Russian forces have intensified their attacks on energy and gas infrastructure. They attacked a gas interconnector to Romania as well as fuel depots across several regions at the beginning of August. Ukraine has asked Baku to take action in response to Russian attacks against assets of Azerbaijani SOCAR, the state-owned Azerbaijani company, in Odesa. According to Ukrainian authorities, Russia has been attacking Ukraine in an attempt to stop Ukraine from preparing for winter heating. Since a series devastating Russian missile attacks this year that significantly reduced the domestic production, Ukraine has been facing a severe gas shortage. Ukrainian forces have intensified their attacks on Russia's infrastructure for energy, which is a major source of money to fund the Kremlin war effort. Officials from Hungary and Slovakia said that oil is flowing again to Hungary and Slovakia through the Druzhba Pipeline, following a drone strike by Ukraine on a pumping station for Russian Tambov Region. (Reporting and writing by Anastasiia malenko, Writing by Pavel Polityuk, Editing by Alison Williams & Frances Kerry).
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Nordic postal operators stop shipments to US after Trump ends parcel tariff reduction
Posten Bring, PostNord and the Norwegian-Swedish-Danish postal group Posten Bring are halting parcel shipments into the United States in anticipation of the closing of an American customs tax loophole which allows duty-free entry to low-value packages. The U.S. administration of Donald Trump announced last month that it would suspend global "de minimis", which allows minimal paperwork for international shipments below $800, effective August 29, 2018. PostNord, owned by the Swedish-Danish governments, said that it temporarily stopped shipments due to the short period of time to adapt to new requirements. Financial markets around the world have been shaken by Trump's policies. According to the White House, under the executive order that suspends the "de minimis exemption", low-value packages shipped to the U.S. are subject to "all applicable duty". Posten Bring, the state-owned postal company in Norway, said that "the details surrounding this issue have not been clarified yet by U.S. Customs authorities and no system solution has been developed for postal companies to use." The European postal industry is working to achieve clarity. (Reporting and editing by Terje Sosvik, Alex Richardson and Anna Ringstrom)
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Karachi, Pakistan is hit by torrential rainfall and flooding
Officials in Pakistan announced a holiday for Wednesday, as Karachi, the country's financial capital, braced itself for more rain. The annual monsoon had caused flooding and killed at least seven people, according to officials. In recent days, the monsoon rains have caused havoc in Pakistan. The death toll of flash floods which struck the mountains northwest on Friday has risen to 377. Abdul Wahid Halepoto is the provincial government's spokesperson. He said that since Tuesday when the rains started in Karachi (a southern port city), at least seven people had died. In some areas of Karachi, Pakistan's biggest city with more than 20,000,000 residents, rainfall levels were unprecedented in recent years. The authorities ordered the closure of educational institutions and offices. Anjum Nadir, the spokesperson of the provincial meteorological office, said: "We expect more intense rains." He said that the rain on Tuesday varied between 80 mm (3.15") and 178mm (7.01") in different areas of the city. Nazir reported that the area surrounding the airport had received 163.5mm of rainfall, the most since 1979. In the northeast, 178mm was recorded. This is the highest amount of rainfall since the station was established there five years ago. Officials said that the rain disrupted flights, power, and mobile phone service. Local television footage showed houses and cars submerged in water, as well as vehicles floating down streets. Murtaza Wahab, Mayor of the city, told Geo News that volunteers, police officers, and civic government agencies are helping with relief efforts. He said, "We are putting all of our resources to work." Wahab claimed that the rains had overloaded the city's infrastructure. Mumbai, India's capital of finance, has also experienced heavy monsoon rainfall, with parts of the city receiving as much as 875 mm in the five days before August 20. On Wednesday, many schools were closed in the city for a second day. Train services were also disrupted. Residents were asked to stay indoors as the forecast called for more rain. Reporting by Ariba Shahzad and Asif Shahid in Islamabad, and Shilpa jamkhandikar and Asif in Mumbai. Writing and editing by Asif; Kate Mayberry.
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Gulf bourses drop ahead of Fed speech
Investors waited to hear what Jerome Powell, the U.S. Federal Reserve Chair, would say at a major conference later this week about the direction of interest rates. Powell's Friday speech at the annual Jackson Hole Symposium is the focus of traders, who are looking for any pushback on market expectations that a rate reduction will be coming next month. The dollar is the most common currency in Gulf markets. The benchmark index in Qatar fell 0.6% due to declines across the board. Qatar National Bank, which is the largest lender in the region, decreased by 1%, while Qatar Navigation dropped 1.6%. Saudi Arabia's benchmark index fell by 0.2% with the majority of constituents falling. Saudi Basic Industries fell 2.9%, while oil giant Saudi Aramco dropped 1.1%. Dubai's benchmark index fell by 0.2%, with the majority of sectors showing a red color. Emirates Central Cooling Systems dropped by 1.2% and Emirates NBD fell by 1.3%. The largest lender, ENBD, issued a Dim Sum bond of 1 billion renminbi (139 million dollars) over a three-year period on Tuesday. It yielded 2.4%. Multiply Group's 2.7% increase and Aldar Properties' 0.8% gain boosted the Abu Dhabi benchmark index by 0.1%. Alpha Dhabi, a conglomerate, and ADNOC Logistics fell by 1% and 0.9%.
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Trafigura and its consortium aim to complete the US loan agreement by 2025
Lobito Atlantic Railway's (LAR) CEO said that the company aims to complete by the end this year a loan agreement worth $533 million with the U.S. International Development Finance Corporation. This deal is crucial for upgrading its Angolan concession. The U.S. Development lender pledged a $533 million loan by 2024 for the upgrade of 1,300 km (800 miles) in railways, and to provide a fast route to haul minerals which are crucial to the global switch to cleaner energy. Angola granted LAR, a consortium of Trafigura Mota-Engil Vecturis SA a 30-year contract in 2022 to operate the rail line and provide a fast route for exports of copper and cobalt from the Democratic Republic of Congo via the Lobito Port on the Atlantic Coast. Nicholas Fournier, the company's newly-appointed CEO, said that funding from the United States was nearing completion despite concerns raised by Donald Trump's reversal on climate and energy policies of Biden's time. "There won't be any change." Fournier said in an interview that although many people have tried to portray this as geopolitical, it is really a business transaction. There are lawyers from both sides who are arguing over the last comma. It's moving in the right direction. He added, "We hope to complete this before the end the year." Fournier stated that LAR expects the volume of the Lobito to double after ongoing upgrades funded by consortium partners who have committed $555 millions in investment. "We would like to double our production in 2026, doing 40,000 tonnes a month one way, and 40,000 tonnes the other. He said that he hoped to continue to produce 1.5 million tons of coal a year in the next decade. LAR's cargo train transports mainly copper and coal to the Lobito Port for export markets. The trains also transport sulphur to DRC mines, as well as agricultural products and industrial goods from the port.
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Wall Street Journal August 20,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Ancora, an activist investor, is pressing CSX to merge with a competitor or replace Joe Hinrichs as CEO. The investor has threatened a proxy battle if CSX does not act in the face of industry consolidation. Elon Musk, CEO of Tesla, has backed away from his plans to create the America Party. He will instead focus on his business and continue to maintain close ties with Vice-President JD Vance while considering future political involvement. The American Academy of Pediatrics recommends COVID-19 vaccinations for children aged between 6 months and 2 years, as well as older children at high risk. This is a sharp break with the CDC, under Robert F. Kennedy Jr. Health Secretary, who no longer recommends vaccinations for healthy children Boston Mayor Michelle Wu defies the Trump administration’s immigration crackdown. She defends the city’s sanctuary policies, and warns against federal overreach. (Compiled by Bengaluru Newsroom)
Karpowership, a Turkish ship, will supply Iraq with 590 MW maximum of electricity
The Turkish company Karpowership announced on Wednesday that it had signed a contract to supply Iraq with 590 megawatts to stabilize its national grid.
Iraq, a member of the Organization of Petroleum Exporting Countries (OPEC) and the world's largest oil producer, has struggled since 2003 to provide power to its citizens following the U.S. invasion that overthrew Saddam Hussein.
Karpowership stated in a press release that the initial contract signed with Iraq's Ministry of Electricity and General Company for Electric Energy Production is for 71-days.
It added that two floating power plants docked at Khor Al Zubair port and Umm Qasr in Basra are expected to become operational within a month.
Iraq's central and southern regions experienced power outages this month due to a sudden shut down at a power station that caused a fault in its electricity grid.
Ziad Ali Fadhil, Iraq's electricity minister, said in a statement earlier this month that the country produces around 28 MW of power.
Iraq has signed agreements with General Electric for the construction of power plants of a combined capacity of 24 000 MW, and Siemens for an additional 14,000 MW. According to the official news agency, it will soon sign a contract with Shanghai Electric for a production capacity of up to 10,000MW.
An official from the Iraqi electricity ministry told Iraq's national news agency that Iraq needed between 32,000 and 35,000 MW in order to bridge the gap between supply and demand. Can Sezer, Rashmi aich and Joe Bavier edited the report.
(source: Reuters)