Corona tests in a Foxconn factory in Wuhan in August 2021. The positive cases in China are increasing rapidly these days. The Apple supplier is also affected by the measures.
(dpa) After the corona lockdown in Shenzhen, southern China, Apple partner Foxconn stopped production in the metropolis at its manufacturing facility, which also manufactures iPhones. Taiwanese parent company Hon Hai announced in Taipei on Monday that production lines at other factories are being adjusted to reduce the potential impact of the disruption. How long production will be suspended depends on the orders of the authorities.
The government of the 17.5 million metropolis had imposed a one-week lockdown the day before, during which all residents should also be tested. All buses and subways stopped operating. In the course of the largest corona wave in China since the beginning of the pandemic more than two years ago, a further 75 cases were counted in Shenzhen alone on Sunday, as the health commission announced on Monday in Beijing.
Nationwide, 1,337 local infections and 788 asymptomatic cases, which are detailed in China, were detected as of Monday. The day before there had been a record total of more than 3100 cases. The infections had recently increased after only a few dozen were reported a day three weeks ago. China is pursuing a strict zero-Covid strategy, responding to local outbreaks with lockdowns, mass testing, transport restrictions and quarantines. The country has also largely isolated itself.
SIPRI report: Global arms exports down – import growth in Europe
(dpa) Fewer armaments such as combat aircraft, tanks and submarines have been exported worldwide in the past five years than before. The volume of international arms shipments fell by 4.6 percent in 2017-2021 compared to the previous five-year period, according to a report by the Stockholm-based peace research institute Sipri released on Monday. Compared to the years 2007 to 2011, however, the new values mean an increase of 3.9 percent. Germany is still one of the five largest arms exporters.
Despite the slight decline in a five-year comparison, global arms deliveries have been at a much higher level than before in the past ten years, said Sipri expert Siemon Wezeman of the German Press Agency. “The world is no safer place than it was in the early 1990s or at the end of the Cold War.” And this applies to the period before the Russian invasion of Ukraine two and a half weeks ago, Wezeman emphasized.
According to the Sipri expert, there were no major corona-related effects on the numbers. Rather, in countries like Finland and Switzerland, decisions have been made to buy a significant number of large arms. «The plans have not changed due to Corona. You’re on course.” In view of recent major orders, especially for American fighter jets, the peace researchers are expecting a clear increase in import figures for several European countries over the course of the coming decade.
According to Sipri, the slight decline in international arms deliveries hides major differences between the regions of the world. For example, while South America has imported fewer armaments than it has in 50 years, increasing or unchanged high import figures in Europe, East Asia, Oceania and the Middle East are contributing to rearmament. The import volume of the countries of Europe increased accordingly by 19 percent. This can be attributed, at least in part, to the significant deterioration in relations with Russia.
The lead of the USA as the absolute industry leader among the 60 arms-exporting countries continues to grow. Mainly because of their military aircraft, the United States is responsible for 39 percent of all arms exports. This share is more than twice as large as that of Russia in second place.
While the American armaments manufacturers had a five-year growth rate of 14 percent, in the case of France this increase was even 59 percent. In contrast, Russian arms exports fell by 26 percent. The decline can be explained almost exclusively by the fact that deliveries to the world’s largest arms importer, India, and to Vietnam collapsed. More exports to China and Egypt could not compensate for that.
Does the drop in Russian exports have anything to do with the actions of the giant empire in Ukraine? “I think the connection is indirect,” Wezeman said. The numbers partly reflected how difficult it was for Russia to find new buyers, while older ones like India and China were looking for new suppliers or producing more themselves. The United States and European countries also put pressure on countries such as India, Algeria and Egypt to refrain from Russian arms deliveries. Wezeman suspects that this pressure is likely to increase further in the coming years.
Another aspect is the technological standard of Russian armaments – which can currently also be seen in Ukraine. Many of the weapons are not modern, and some are completely outdated. Another consequence of the Ukraine war, according to Wezeman, is that the West is looking for more allies – also with the help of the lure of arms deliveries.
The five largest arms exporters in the world are ultimately completed by China and Germany. According to Sipri, the Federal Republic of Germany recorded a decline in export volume of 19 percent compared to the previous five-year period and 49 percent compared to 2007 to 2011. Such figures could quickly shift with a large order, Wezeman classified. German arms supplies such as frigates, submarines and armored vehicles now account for 4.5 percent of global arms exports.
And Ukraine? Despite the conflict with Russia that has been going on for years, the country’s imports were very limited in the years 2017 to 2021. They accounted for just 0.1 percent of the global total, according to the Sipri report. Arms deliveries to Ukraine generally had more of a political than a military significance. In addition, several major exporting countries had restricted their deliveries up until February for fear of contributing to an escalation.
At the same time, Ukraine is 14th in the global ranking of arms-exporting countries. Wezeman expects this to change: on the one hand, Ukraine now needs its own arms. On the other hand, large parts of its defense industry are located in endangered and contested areas, for example in Kharkiv.
German banking regulator urges: Subsidiary of the Russian bank VTB Europe should quickly liquidate assets
(Bloomberg) The German banking supervisory authority is urging the local subsidiary of the Russian VTB Bank to sell its assets in order to avoid another billion-dollar outflow from the banks’ deposit protection fund. This is reported by people familiar with the matter.
Bafin and the Bundesbank are trying to ensure that VTB Bank Europe SE has sufficient liquid funds to continue paying out deposits if necessary, said the people, who asked not to be named. The bank said it had sufficient funds for the current outflow rate.
The Bafin monitors VTB Bank Europe closely and is informed daily about outflows of funds, said a spokeswoman for the authority. VTB’s press department did not respond to an emailed request for comment. The institute had previously stated that VTB Bank Europe would continue to operate, but wanted to streamline its activities.
The sanctions against Russian banks because of the attack on Ukraine have already led to the dissolution of the Austrian Sberbank Europe AG, whose German depositors are, however, compensated by the Austrian deposit insurance. In the event of a similar collapse of VTB Bank Europe, it would be the turn of the German banks and they would first have to compensate the depositors. Even if the funds were to be recouped in a possible bankruptcy proceeding, it could take years.
The German banks’ deposit insurance is still struggling with the collapse of Greensill Bank AG last year, which cost them 1.1 billion euros. The fund then increased members’ contributions by more than half to replenish its reserves. For Deutsche Bank AG, the largest contributor, this meant that the cost target for the past year had to be abandoned.
With total assets of EUR 7.95 billion at the end of September, VTB Bank Europe is a rather small institution. On the liabilities side, there are primarily 4.35 billion euros in customer deposits. Approximately €1.64 billion of assets consisted of cash and short-term funds. There are also just over 600 million euros in financial instruments that would probably be quicker to liquidate than the 5.1 billion euros in customer loans, which make up the largest item on the asset side.
IMF considers Russia’s default “no longer unlikely”
(dpa) In view of the largely blocked Moscow foreign exchange reserves, a default by Russia in relation to its debts abroad is “no longer unlikely”, according to the International Monetary Fund (IMF). Because of the sanctions imposed against Ukraine as a result of the war of aggression, Russia is threatened with a “deep recession”, warned IMF boss Kristalina Georgieva on Sunday (March 13) in an interview with the TV channel CBS. The devaluation of the national currency, the ruble, has already led to the fact that the purchasing power of the people in Russia has “shrunk significantly”.
The international foreign exchange reserves of the Russian central bank are largely blocked as a result of sanctions. This has made it more difficult for Russia to defend the ruble’s exchange rate if necessary. In addition, servicing government debt in foreign currencies such as the US dollar or the euro is becoming significantly more complicated. “I can say that we no longer regard a Russian default as an unlikely event,” Georgieva said. “Russia has the money to service the debt, but it doesn’t have access to it,” she said.