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Wednesday, August 12, 2020

UK officially in recession for first time in 11 years

 The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession.

The economy shrank 20.4% compared with the first three months of the year.

Household spending plunged as shops were ordered to close, while factory and construction output also fell.

This pushed the UK into its first technical recession - defined as two consecutive quarters of economic decline - since 2009.

Is there any sign of things getting better?

The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease.

On a month-on-month basis, the economy grew by 8.7% in June, after growth of 1.8% in May.

But Jonathan Athow, deputy national statistician for economic statistics, said: "Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck."

The UK fell into recession for the first time since 2009

Which parts of the economy have suffered most?

The ONS said the collapse in output was driven by the closure of shops, hotels, restaurants, schools and car repair shops.

The services sector, which powers four-fifths of the economy, suffered the biggest quarterly decline on record.

Factory shutdowns also resulted in the slowest car production since 1954.

The economic decline was concentrated in April, at the height of lockdown.

Clothes stores, bookshops and other non-essential retailers opened their doors in England on 15 June, while construction work jumped after large declines in the previous two months.

Monthly economic output rose in May and June

What is the government doing about it?

Chancellor Rishi Sunak has said the economic slump will lead to more job losses in the coming months.

Official jobs figures released on Tuesday showed the number of people in work fell by 220,000 between April and June.

But in a BBC interview on Wednesday, he did not waver on ending the government's furlough scheme of job subsidies, which is winding down and is due to end entirely after October.

"I think most people would agree that that's not something that is sustainable indefinitely," he told the BBC.

The chancellor said the government should not pretend that "absolutely everybody can and will be able to go back to the job they had" and said there would be support for creating jobs in new areas.

He said there would be a "fiscal event" in the autumn, addressing reports that the Budget planned for then might be scrapped because of fears of a second wave of the pandemic.

He added that there would not be a return to austerity - but acknowledged that public spending had taken a huge hit and there would be difficult choices ahead.

What are other people saying?

Business groups urged the government to do more to support the economic recovery.

Alpesh Paleja, an economist at the Confederation of British Industry, said many companies were struggling to pay their bills on time.

He said: "A sustained recovery is by no means assured. The dual threats of a second wave and slow progress over Brexit negotiations are also particularly concerning."

Media captionWhat is a recession?

The Institute of Directors (IoD) said mounting debts made it difficult for businesses to push ahead with spending plans.

Chief economist Tej Parikh said: "Job losses have been mounting and may only increase as we reach the end of the furlough scheme. The pile of debt businesses have had to take on could also cause a lasting hangover."

It is urging the government to cut employers' national insurance contributions, which would make it cheaper to hire. It also said further grants for small businesses would help them through the pandemic.

While more recent data suggest the recovery is gaining traction, the Bank of England does not expect the economy to get back to its pre-pandemic size until the end of next year.

The Office for Budget Responsibility, the government's official forecaster, expects the recovery to take even longer.

How does the UK compare with other nations?

The UK's slump is one of the biggest among advanced economies, according to preliminary estimates.

The economy is more than a fifth smaller than it was at the end of last year. This fall is not as bad as the 22.7% decline in Spain, but about twice the size of contractions in Germany and the US.

The Bank of England has noted that social spending, such as eating out, going to a concert or watching a football match, is a bigger driver of growth in the UK than in the US or the eurozone.

The chancellor told the BBC that the UK economy had performed worse than its EU counterparts because it was focused on services, hospitality and consumer spending.

"Those kinds of activities comprise a much larger share of our economy than they do for most of our European cousins," he said.

Analysis box by Faisal Islam, economics editor

The first official GDP numbers for this period show more than a fifth of the value of the economy lost since the beginning of the year, mainly driven by the severe shutdown in April.

The sheer extent and speed of the contraction, though not surprising, reflects an economic hit that has affected every High Street and town and city in the country.

The economy is now growing again, but not all the lights that were dimmed in the spring to protect public health will be turned back on.

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Biden VP pick: Kamala Harris chosen as running mate

 Democratic presidential candidate Joe Biden has named Kamala Harris as his running mate - the first black woman and South Asian American in the role.

Once a rival for the top job, the California senator of Indian-Jamaican heritage had long been considered the front-runner for the number two slot.

The former California attorney general has been urging police reform amid nationwide anti-racism protests.

Mr Biden will face President Donald Trump in the election on 3 November.

At a White House news conference on Tuesday, Mr Trump, a Republican, described Ms Harris as "my number one draft pick".

Ms Harris will debate Mr Trump's running mate, Vice-President Mike Pence, on 7 October in Salt Lake City, Utah.

Only two other women have been nominated as vice-presidential candidates for a major party - Sarah Palin by the Republican party in 2008 and Geraldine Ferraro by the Democrats in 1984. Neither ended up on the winning ticket.

A woman of colour has never been appointed to a presidential ticket by either of the two main American political parties. No woman has won the US presidency either.

What did Biden and Harris say?

Mr Biden tweeted that he had "the great honour" to name Ms Harris as his number two.

He described her as "a fearless fighter for the little guy, and one of the country's finest public servants".

He noted how she had worked closely with his late son, Beau, when she was California's attorney general.

"I watched as they took on the big banks, lifted up working people, and protected women and kids from abuse," he tweeted.

"I was proud then, and I'm proud now to have her as my partner in this campaign."

Joe Biden talking to his vice-president candidate Kamala Harris by video link, released by his official campaign photographerImage copyrightADAM SCHULTZ
Image captionMr Biden tells Ms Harris she will be his running mate on Tuesday

Ms Harris later tweeted that Mr Biden "can unify the American people because he's spent his life fighting for us. And as president, he'll build an America that lives up to our ideals.

"I'm honored to join him as our party's nominee for Vice President, and do what it takes to make him our Commander-in-Chief."

The campaign announced that Mr Biden and Ms Harris will deliver remarks in Wilmington, Delaware, on Wednesday afternoon on "working together to restore the soul of the nation and fight for working families to move the country forward".

Mr Biden pledged in March to name a woman on the ticket. He had faced mounting calls to pick a black woman in recent months as the nation was convulsed by social unrest over police brutality against African Americans, a key voting bloc to the Democratic Party.

Media captionHarris and Biden clash over his race record

Who is Kamala Harris?

Ms Harris, 55, dropped out of the presidential race in December after failing in her bid to win the Democratic nomination.

She repeatedly clashed with Mr Biden during the primary election debates, most notably criticising his praise for the "civil" working relationship he had with former senators who favoured racial segregation.

The Democrat was born in Oakland, California, to two immigrant parents: an Indian-born mother and Jamaican-born father.

She went on to attend Howard University, one of the nation's preeminent historically black colleges and universities. She has described her time there as among the most formative experiences of her life.

Media captionWho is Kamala Harris? A look at her life and political career

Ms Harris says she's always been comfortable with her identity and simply describes herself as "an American".

In 2019, she told the Washington Post that politicians should not have to fit into compartments because of their colour or background. "My point was: I am who I am. I'm good with it. You might need to figure it out, but I'm fine with it," she said.

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The obvious pick

Analysis box by Anthony Zurcher, North America reporter

Sometimes the obvious pick is obvious for a reason. Kamala Harris was the front-runner to be Joe Biden's running mate pretty much since the moment the presumptive Democratic nominee announced in March that he would pick a woman to be his ticket.

She's relatively young and telegenic, and as the daughter of Jamaican and Indian immigrants reflects the growing diversity of the Democratic Party.

What's more, she's been in the spotlight of the national media, having campaigned for president in 2019 and, for a while last summer, risen to near the top of some polls. Many of her rivals for the number-two spot had never faced such scrutiny, so there was no proof that they could hold up under fire.

Another underrated advantage for Ms Harris was her friendship with Mr Biden's late son, Beau, formed when they were both attorneys general. Mr Biden places a high value on family - and that connection may have made choosing her easier.

Now Ms Harris will have a chance to hit the campaign trail again and prove that she deserves this historic pick. If she succeeds, she'll be in prime position to seek the presidency again, perhaps as early as 2024. Today has made her a force in the Democratic Party for years to come.

Monday, August 10, 2020

Hong Kong media tycoon arrested under protection regulation

 Hong Kong enterprise magnate Jimmy Lai has been arrested and his newspaper workplaces raided through police over allegations of collusion with overseas forces.


His case is the maximum high-profile arrest to this point beneath the arguable safety regulation imposed through China in June.


Mr Lai has been a outstanding seasoned-democracy voice and a supporter of protests that erupted ultimate 12 months.


In February the 71-year-old, who additionally holds united kingdom citizenship, became charged with illegal assembly and intimidation.


He was granted police bail.

Sunday, August 9, 2020

Spain's ,ex-King, Juan Carlos ,lands ,in Abu Dhabi: ,

 Spain's former king Juan Carlos has reportedly travelled to the United Arab Emirates after leaving his home country amid a corruption investigation.

A photograph published by Spanish media group NIUS appears to show the ex-monarch arriving in Abu Dhabi.

Juan Carlos made the shock announcement on Monday that he was leaving Spain.

The former king denies any wrongdoing and has said he would be available if prosecutors needed to interview him.

His departure has sparked a huge debate in Spain about the monarchy and intense speculation about where the former king has gone.

Local reports said he had travelled to the Dominican Republic in the Caribbean or to Spain's neighbour, Portugal.

But there are now reports Juan Carlos is occupying an entire floor at Abu Dhabi's five-star Emirates Palace hotel. The former king was reportedly close with Abu Dhabi's Crown Prince Mohammed bin Zayed al-Nahyan.

As yet however his location remains unconfirmed. Spain's royal family and government have so far declined to comment on his whereabouts.

Why did Juan Carlos leave?

Juan Carlos abdicated in 2014 after close to 40 years in power and handed power to his son Felipe.

His decision to give up the throne came after a corruption investigation involving his daughter's husband and a controversial elephant hunting trip the monarch took during Spain's financial crisis.

The controversies however did not stop there. In June this year, Spain's Supreme Court launched an investigation into Juan Carlos's alleged involvement in a high-speed rail contract in Saudi Arabia, after the ex-king lost his immunity from prosecution following his abdication.

Media captionWhy Juan Carlos abdicated in 2014

On 3 August Juan Carlos announced he was now leaving his home country in a letter to his son.

"Guided by the conviction to best serve the people of Spain, its institutions, and you as king, I inform you of my decision at this time to leave Spain," he wrote.

He said he made the decision "in the face of the public repercussions that certain past events in my private life are generating" and in the hope of allowing his son to carry out his functions as king with "tranquillity".

A statement said King Felipe VI had conveyed "his heartfelt respect and gratitude" to his father for this decision.

How has Spain reacted?

The departure has sparked a fresh debate about the role of the Spanish monarchy and the corruption allegations against Juan Carlos.

Catalonia's parliament - which is controlled by separatist parties who seek independence from Spain - voted in a non-binding motion on Friday to condemn the monarchy after the ex-king's departure.

"Neither Spaniards nor Catalans deserve such a loud and ridiculous scandal on an international scale," regional president Quim Torra told lawmakers.

There have also been demonstrations calling for Spain to become a republic again.

The country last removed its monarchy in 1931 before a devastating civil war which ended with the victory of dictator Francisco Franco in 19

Vijayawada:, Fire ,at Covid facility ,in India ,kills, at least 10

 least 10 patients have died after a fire at a temporary Covid hospital in Vijayawada, south-east India.

The fire broke out at Swarna Palace, a hotel being used to house patients, on Sunday morning.

It was brought under control in half an hour and all surviving patients have been moved to another hospital in the city, officials said.

Prime Minister Narendra Modi said he was "anguished" by the blaze, the second fire at a Covid centre in days.

Sunday's fire started shortly after 05:00 (23:30GMT).

More than 20 people were injured. They have been taken to a hospital elsewhere in the city.

The cause of the fire is not yet known. An investigation has been launched.

LETTER ,FROM BRAZIL,: The Brazilians ,being dealt a double, blow IN PICTURES: , How ,coronavirus ,swept ,through Brazil, GLOBAL ,TRACKER,: The world's ,hotspots ,REALITY, CHECK: ,Fake, cures, in Latin America ,RECOVERY: ,How long does, it take to get, better,?

 

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