Pkrevenue.com

Category: World

This section brings you news reports from around the world, covering global events, politics, economy, and more. Stay informed with the latest international updates and developments.

  • Bitcoin plunges below $30,000; other cryptocurrencies mirror crash

    Bitcoin plunges below $30,000; other cryptocurrencies mirror crash

    LONDON: Bitcoin on Tuesday plunged below $30,000 after a crackdown launched by Chinese central bank.

    Bitcoin made around 50 per cent losses since it hit an all time high in April this year.

    The cryptocurrency has suffered several price falls in recent days, having traded above $40,000 just one week ago.

    The world’s largest cryptocurrency dropped to $28,600, its lowest since early January, after giving up gains made during Asian hours. Its fall also pressured smaller coins such as ether.

    Bitcoin tumbled 11 per cent on Monday, its largest one-day drop in over a month, with losses of nearly 30 per cent in the last week alone almost wiping out gains for the year-to-date. It was last down 2.3 per cent at $30,896.

    The sell-off was sparked by the People’s Bank of China urging China’s largest banks and payment firms to crack down harder on cryptocurrency trading, the latest tightening of restrictions on the sector by Beijing.

    Crypto exchanges were effectively pushed out of China by a 2017 rule change, but over-the-counter platforms based overseas have sprung up to receive payment from people based in China and buying cryptocurrencies on their behalf.

    Independent.co.uk reported that several other leading cryptocurrencies have mirrored bitcoin’s latest crash, including Ethereum (ether), Cardano (ada) and dogecoin.

    The market-wide crash took the overall market cap of all cryptocurrencies combined below $1.2 trillion for the first time since February. Half a trillion dollars has been wiped from the market in the last seven days alone.

  • IMF, WTO call for lifting restriction on medical supplies

    IMF, WTO call for lifting restriction on medical supplies

    KARACHI: Kristalina Georgieva, Manaing Director, International Monetary Fund (IMF) and Roberto Azevêdo, Director General, World Trade Organization on Friday jointly called for governments to refrain from imposing export and other trade restrictions on key medical supplies and food and to quickly lift those put in place since the start of the year.

    Statements issued by IMF and WTO and received here said that as our members grapple with their response to the global health and economic crisis, we call for more attention to the role of open trade policies in defeating the virus, restoring jobs, and reinvigorating economic growth.

    In particular, we are concerned by supply disruptions from the growing use of export restrictions and other actions that limit trade of key medical supplies and food.

    Trade has made cutting-edge medical products available throughout the world at competitive prices. Last year global imports of crucial goods needed in the fight against COVID-19, such as face masks and gloves, hand soap and sanitizer, protective gear, oxygen masks, ventilators, and pulse oximeters, totalled nearly $300 billion.

    Recognizing the importance of this trade, governments have taken dozens of measures to facilitate imports of COVID-related medical products—cutting import duties, curbing customs-clearance processes, and streamlining licensing and approval requirements.

    The world bodies said they welcomed these actions.

    Accelerating imports of critical medical supplies translates into saving lives and livelihoods. Similar attention should be paid to facilitating exports of key items like drugs, protective gear, and ventilators.

    Anticipating governments’ need to address domestic crises, WTO rules allow for temporary export restrictions “applied to prevent or relieve critical shortages” in the exporting country.

    We urge governments to exercise caution when implementing such measures in the present circumstances.

    Taken collectively, export restrictions can be dangerously counterproductive. What makes sense in an isolated emergency can be severely damaging in a global crisis. Such measures disrupt supply chains, depress production, and misdirect scarce, critical products and workers away from where they are most needed. Other governments counter with their own restrictions.

    The result is to prolong and exacerbate the health and economic crisis—with the most serious effects likely on the poorer and more vulnerable countries.

    To ramp up the production of medical supplies, it is essential to build on existing cross-border production and distribution networks.

    Both the bodies are concerned by the decline in the supply of trade finance. Adequate trade finance is important to ensure that imports of food and essential medical equipment reach the economies where they are most needed.

    Our institutions are tracking developments and engaging with key suppliers of trade finance.

    In addition to restrictions on medical goods, curbs on some food items are starting to appear, despite strong supply. The experience in the global financial crisis showed that food export restrictions multiply rapidly across countries and lead to ever greater uncertainties and price increases. We are also concerned that if critical agricultural workers are not able to move to where the harvest is, crops could rot in the fields. Where new cropping seasons are starting, planting could be hampered, lowering both domestic and international supplies and increasing food insecurity. We urge governments to address these challenges in a safe and proportionate manner.

    Amid the unfolding global financial crisis, global economic leaders in 2008 jointly committed to refrain for a year from new import, export, and investment restrictions.

    This pledge helped to avoid widespread trade restrictions that would have worsened the crisis and delayed recovery—just as trade restrictions deepened and prolonged the Great Depression of the 1930’s.

    A similarly bold step is needed today. We call on governments to refrain from imposing or intensifying export and other trade restrictions and to work to promptly remove those put in place since the start of the year. The WTO and the G20 offer two forums for global policy coordination on these important matters.

    History has taught us that keeping markets open helps everyone – especially the world’s poorest people. Let’s act on the lessons we have learned.

  • Global trade may fall up to 32 percent on COVID-19 disruption: WTO

    Global trade may fall up to 32 percent on COVID-19 disruption: WTO

    KARACHI: World trade is expected to fall by between 13 percent and 32 percent in 2020 as the COVID 19 pandemic disrupts normal economic activity and life around the world, said a statement issued by World Trade Organization (WTO) on Wednesday.

    The wide range of possibilities for the predicted decline is explained by the unprecedented nature of this health crisis and the uncertainty around its precise economic impact.

    But WTO economists believe the decline will likely exceed the trade slump brought on by the global financial crisis of 2008‑2009.

    Estimates of the expected recovery in 2021 are equally uncertain, with outcomes depending largely on the duration of the outbreak and the effectiveness of the policy responses.

    “This crisis is first and foremost a health crisis which has forced governments to take unprecedented measures to protect people’s lives,” WTO Director-General Roberto Azevêdo said.

    “The unavoidable declines in trade and output will have painful consequences for households and businesses, on top of the human suffering caused by the disease itself.”

    “The immediate goal is to bring the pandemic under control and mitigate the economic damage to people, companies and countries. But policymakers must start planning for the aftermath of the pandemic,” he said.

    “These numbers are ugly – there is no getting around that. But a rapid, vigorous rebound is possible. Decisions taken now will determine the future shape of the recovery and global growth prospects. We need to lay the foundations for a strong, sustained and socially inclusive recovery. Trade will be an important ingredient here, along with fiscal and monetary policy. Keeping markets open and predictable, as well as fostering a more generally favourable business environment, will be critical to spur the renewed investment we will need. And if countries work together, we will see a much faster recovery than if each country acts alone.”

    Trade was already slowing in 2019 before the virus struck, weighed down by trade tensions and slowing economic growth. World merchandise trade registered a slight decline for the year of ‑0.1 percent in volume terms after rising by 2.9 percent in the previous year. Meanwhile, the dollar value of world merchandise exports in 2019 fell by 3 percent to US$ 18.89 trillion.

    In contrast, world commercial services trade increased in 2019, with exports in dollar terms rising by 2 percent to US$ 6.03 trillion. The pace of expansion was slower than in 2018, when services trade increased by 9 percent.

  • US stocks jump up after Trump declares coronavirus outbreak emergency

    US stocks jump up after Trump declares coronavirus outbreak emergency

    The US stocks rebounded on Friday and jumped up more than 9 percent after US President Donald Trump declared the coronavirus outbreak a national emergency.

    The Dow Jones Industrial Average closed 1,985 points higher, or 9.4 percent, at 23,185.62. Friday marked the Dow’s biggest-ever point gain. The S&P 500 climbed 9.2 percent to 2,711.02 while the Nasdaq Composite surged 9.3 percent to 7,874.23. The averages posted their biggest one-day gain since October 2008, according to CNBC.

    The BBC reported that Wall Street shares rallied on Friday after US President Donald Trump declared the coronavirus outbreak a national emergency, freeing up money to fight the spread of the disease.

    As the president spoke, the three main US indexes jumped more than 9 percent.

    Earlier, London’s FTSE 100 closed up 2.5 percent, retreating from an early surge, while other European indexes made similar moves.

    The rally comes a day after Wall Street suffered its biggest losses since 1987.

    Investors fear economies could slide into recession as a result of the pandemic, as business is disrupted, events are cancelled and schools in many countries close in an effort to contain the spread of the virus.

    Many indexes around the world have now fallen more than 20 percent from their recent highs – a red flag for recession, the BBC reported.

    CNN reported it was the best day for stocks since 2008, but indexes still ended the week with sharp losses. This pretty much sums up the market volatility.

  • US stocks plummet on US travel ban from Europe

    US stocks plummet on US travel ban from Europe

    US stocks witnessed plummeted on Thursday after the US President imposed travel ban to curb coronavirus outbreak, which spooked investors and rattled world markets.

    According to CNBC the Dow Jones Industrial Average fell 2,352.33 points, or 9.99 percent, to 21,200.89, the S&P 500 lost 260.75 points, or 9.51 percent, to 2,480.63 and the Nasdaq Composite dropped 750.25 points, or 9.43 percent, to 7,201.80.

    CNN reported that Wall Street had its worst day since October 19, 1987, also known as “Black Monday”.

    The S&P 500 (SPX) fell 9.5 percent. The index, which is the broadest measure of US stocks, is now in a bear market, defined as a 20 percent drop from the most recent peak. This has officially ended the longest bull-market in history.

    The Dow (INDU) fell 2,353 points, or nearly 10 percent, also its worst day since “Black Monday.” It was its worst one-day point drop on record. The Nasdaq Composite (COMP) dropped 9.4 percent.

    CNN further said President Donald Trump used a national address on the coronavirus to announce a ban on most travel from Europe, but failed to deliver the comprehensive economic and medical response to the outbreak that investors are craving.

    BBC reported that in the US, the Dow and S&P 500 were also hit by their steepest daily falls since 1987.

    The declines came despite actions by the Federal Reserve and European Central Bank to ease financial strains.

    At the start of US trading, plummeting shares triggered an unusual automatic suspension in trading for the second time this week.

    When trade resumed 15 minutes later, shares continued to fall, taking cues from the slide in European markets.

  • US stocks tumble as coronavirus declared pandemic

    US stocks tumble as coronavirus declared pandemic

    The US stock indices plunged on Wednesday after World Health Organization (WHO) declared coronavirus.

    This is the second major fall in just three days and wipe out Tuesday’s recovery.

    The major indices ended down included: Dow Jones plunged by 1465 points or 5.9 percent to close at 23,553 points.

    The S&P 500 fell by 4.9 percent at 2,741. Nasdaq Composite came down by 4.7 percent to 7,952.

    According to CNBC the coronavirus-induced sell-off reached a new low on Wednesday as Wall Street grappled with the rapid spread of the virus as well as uncertainty around a fiscal response to curb slower economic growth resulting from the outbreak.

    Earlier in the day, the WHO declared the coronavirus outbreak a pandemic.

    As the number of confirmed cases of the virus worldwide surpassed 112,000 – and the death toll neared 4,500 – the WHO said it was ‘deeply concerned by the alarming levels of spread and severity’.

    The Director-General of the UN agency, Dr Tedros Adhanom, also blasted governments for ignoring repeated WHO pleas to take urgent and aggressive action, with cases of the deadly illness outside of China having risen 13-fold in the space of a fortnight because of escalating crises in Italy, Iran, Spain, Germany, and France.

  • World services trade to further weaken on coronavirus impact: WTO

    World services trade to further weaken on coronavirus impact: WTO

    KARACHI: World Trade Organization (WTO) has said ongoing weakness in world service trade likely to worsen due to economic impact of the COVID-19 virus.

    “World services trade growth continued to weaken toward the end of 2019 and into the first quarter of 2020,” according to the WTO’s Services Trade Barometer, released on 11 March 2020.

    The latest reading of 96.8 is down from the 98.4 recorded last September and well below the baseline value of 100 for the index, suggesting below-trend growth in world services trade.

    “The indicator does not yet fully capture the economic impact of the COVID-19 virus and is likely to decline further in the coming months.”

    Among the component indices, the largest declines were in passenger air travel (93.5) and container shipping (94.3), growth of which was already moderating before the coronavirus COVID-19 outbreak.

    Both indices cover developments through January and may partly reflect early efforts to halt the spread of the disease, which intensified toward the end of the month.

    The drop in the container shipping index was driven by lower shipping volumes in Asia while the slowdown in passenger air travel was more broad-based, also covering North America, South America and Europe.

    The global financial transactions (97.7) and ICT services (97.0) indices also dipped below trend, while the construction index (99.8) appears to have held steady.

    The global services Purchasing Managers’ Index (96.1) is the most forward-looking barometer component, reflecting expectations that COVID-19 is likely to continue to weigh on services trade in the near-term.

    An approximate measure of the volume of world services trade shows that year-on-year growth in services trade activity already fell from 4.7 percent in the first quarter of 2019 to 2.8 percent in the third quarter.

    The Services Trade Barometer highlights turning points and changing patterns in world services trade. Unlike its counterpart for goods, the fluctuations registered by the services indicator coincide with movements in actual trade flows, rather than anticipating them.

    Readings of 100 indicate growth in line with medium-term trends. Readings greater than 100 suggest above-trend growth while those below 100 indicate the opposite.

  • WCO members accept HS 2022 for customs tariffs

    WCO members accept HS 2022 for customs tariffs

    KARACHI: Member countries of World Customs Organization (WCO) have accepted HS 2022, the seventh edition of the Harmonized System (HS) nomenclature used for the uniform classification of goods traded internationally all over the world.

    It shall come into force on January 01, 2022, said a statement issued by WCO.

    The HS serves as the basis for Customs tariffs and for the compilation of international trade statistics in 211 economies (of which 158 are Contracting Parties to the HS Convention).

    The new HS 2022 edition makes some major changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of goods moving across borders.

    Here are some of the highlights:

    Adaption to current trade through the recognition of new product streams and addressing environmental and social issues of global concern are the major features of the HS 2022 amendments.

    Visibility will be introduced to a number of high profile product streams in the 2022 Edition to recognize the changing trade patterns.

    Electrical and electronic waste, commonly referred to as e-waste, is one example of a product class which presents significant policy concerns as well as a high value of trade, hence HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.

    New provisions for novel tobacco and nicotine based products resulted from the difficulties of the classification of these products, lack of visibility in trade statistics and the very high monetary value of this trade.

    Unmanned aerial vehicles (UAVs), commonly referred to as drones, also gain their own specific provisions to simplify the classification of these aircraft.

    Smart phones will gain their own subheading and Note, which will also clarify and confirm the current heading classification of these multifunctional devices.

    Major reconfigurations have been undertaken for the subheadings of heading 70.19 for glass fibres and articles thereof and for heading 84.62 for metal forming machinery. These changes recognize that the current subheadings do not adequately represent the technological advances in these sectors, leaving a lack of trade statistics important to the industries and potential classification difficulties.

    One area which is a focus for the future is the classification of multi-purpose intermediate assemblies. However, one very important example of such a product has already been addressed in HS 2022. Flat panel display modules will be classified as a product in their own right which will simplify classification of these modules by removing the need to identify final use. Health and safety has also featured in the changes. The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification. New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in a placebos will assist in facilitating cross-border medical research. Cell cultures and cell therapy are among the product classes that have gained new and specific provisions. On a human security level, a number of new provisions specifically provide for various dual use items. These range from toxins to laboratory equipment.

    Protection of society and the fight against terrorism are increasingly important roles for Customs. Many new subheadings have been created for dual use goods that could be diverted for unauthorized use, such as radioactive materials and biological safety cabinets, as well as for items required for the construction of improvised explosive devices, such as detonators.

    Goods specifically controlled under various Conventions have also been updated. The HS 2022 Edition introduces new subheadings for specific chemicals controlled under the Chemical Weapons Convention (CWC), for certain hazardous chemicals controlled under the Rotterdam Convention and for certain persistent organic pollutants (POPs) controlled under the Stockholm Convention. Furthermore, at the request of the International Narcotics Control Board (INCB), new subheadings have been introduced for the monitoring and control of fentanyls and their derivatives as well as two fentanyl precursors. Major changes, including new heading Note 4 to Section VI and new heading 38.27, have been introduced for gases controlled under the Kigali Amendment of the Montreal Protocol.

    The changes are not confined to creating new specific provisions for various goods. The amendments also include clarification of texts to ensure uniform application of the nomenclature. For example, there are changes for the clarification and alignment between French and English of the appropriate way to measure wood in the rough for the purposes of subheadings under heading 44.03.

    Given the wide scope of the changes, there are many important changes not mentioned in this short introduction. All interested parties are encourage to read the Recommendation carefully (to be published soon).

    Implementation

    While January 2022 may seem far off, a lot of work needs to be done at WCO, national and regional levels for the timely implementation of the new HS edition. The WCO is currently working on the development of requisite correlation tables between the current 2017 and the new edition of the HS, and on updating the HS publications, such as the Explanatory Notes, the Classification Opinions, the Alphabetical Index and the HS online database.

    Customs administrations and regional economic communities have a huge task to ensure timely implementation of the 2022 HS Edition, as required by the HS Convention.

    They are therefore encouraged to begin the process of preparing for the implementation of HS 2022 in their national Customs tariff or statistical nomenclatures. The WCO will step up its capacity building efforts to assist Members with their implementation.

  • Trade restrictions increase to historic high levels: WTO

    Trade restrictions increase to historic high levels: WTO

    KARACHI: The World Trade Organization (WTO) has observed that trade restrictions have increased to historic high levels. The Director-General’s annual overview of trade-related developments discussed on 12 December at a meeting of the Trade Policy Review Body shows that trade restrictions by WTO members continue at historically high levels.

    (more…)
  • WTO sharply downgrades global trade growth forecast

    WTO sharply downgrades global trade growth forecast

    KARACHI: World Trade Organization (WTO) has sharply downgraded the global trade growth forecast for 2019 and 2020.

    “World merchandise trade volumes are now expected to rise by only 1.2 percent in 2019, substantially slower than the 2.6 percent growth forecast in April,” the WTO said in a press release on Tuesday.

    The projected increase in 2020 is now 2.7 percent, down from 3.0 percent previously.

    “The economists caution that downside risks remain high and that the 2020 projection depends on a return to more normal trade relations,” it added.

    “The darkening outlook for trade is discouraging but not unexpected. Beyond their direct effects, trade conflicts heighten uncertainty, which is leading some businesses to delay the productivity-enhancing investments that are essential to raising living standards,” said WTO Director-General Roberto Azevêdo.

    “Job creation may also be hampered as firms employ fewer workers to produce goods and services for export.”

    “Resolving trade disagreements would allow WTO members to avoid such costs,” the WTO Director-General added.

    “The multilateral trading system remains the most important global forum for settling differences and providing solutions for the challenges of the 21st century global economy. Members should work together in a spirit of cooperation to reform the WTO and make it even stronger and more effective.”

    The updated trade forecast is based on consensus estimates of world GDP growth of 2.3 percent at market exchange rates for both 2019 and 2020, down from 2.6 percent previously.

    Slowing economic growth is partly due to rising trade tensions but also reflects country-specific cyclical and structural factors, including the shifting monetary policy stance in developed economies and Brexit-related uncertainty in the European Union.

    Macroeconomic risks are firmly tilted to the downside.

    Due to the high degree of uncertainty associated with trade forecasts under current conditions, the estimated growth rate for world trade in 2019 is placed within a range of 0.5 percent to 1.6 percent.

    Trade growth could fall below this range if trade tensions continue to build, or outperform it if they start to recede.

    The range of likely values is wider for 2020, ranging from 1.7 percent to 3.7 percent, with better outcomes depending on an easing of trade tensions.

    Risks to the forecast are heavily weighted to the downside and dominated by trade policy. Further rounds of tariffs and retaliation could produce a destructive cycle of recrimination. Shifting monetary and fiscal policies could destabilize volatile financial markets.

    A sharper slowing of the global economy could produce an even bigger downturn in trade. Finally, a disorderly Brexit could have a significant regional impact, mostly confined to Europe.