Wednesday, 15 November 2023

UK Parliament votes no to Gaza ceasefire: 293 to 125



UK Parliament votes no to Gaza ceasefire: 

293 to 125

MPs voted 293 to 125, majority 168, to reject the SNP’s King’s Speech amendment calling for “all parties to agree to an immediate ceasefire” in Gaza. 

Labour leader Keir Starmer hit by major rebellion as parliament votes against ceasefire in Gaza

A total of 56 Labour MPs voted for a ceasefire in Gaza as party leader Keir Starmer was hit by a major rebellion over his position on the war.

Jess Phillips, the shadow minister for domestic violence and safeguarding, was among 10 frontbenchers who defied the leader’s order not to vote for the SNP amendment to the King’s Speech on Wednesday evening.

Mr Starmer has called for humanitarian pauses in the conflict between Hamas and Israel to allow aid to reach those in need.

Explaining his position, which is in line with that of the government, Mr Starmer said a ceasefire would allow Hamas to regroup and launch further terror attacks on Israel.

Pro-Palestine protest: 'More than 800,000' people march through London

Readout of President Joe Biden’s Meeting with President Xi Jinping


Readout of President Joe Biden’s Meeting with President Xi Jinping of the People’s Republic of China

President Joseph R. Biden, Jr. today held a Summit with President Xi Jinping of the People’s Republic of China (PRC), in Woodside, California.  The two leaders held a candid and constructive discussion on a range of bilateral and global issues including areas of potential cooperation and exchanged views on areas of difference. 

President Biden emphasized that the United States and China are in competition, noting that the United States would continue to invest in the sources of American strength at home and align with allies and partners around the world.  He stressed that the United States would always stand up for its interests, its values, and its allies and partners.  He reiterated that the world expects the United States and China to manage competition responsibly to prevent it from veering into conflict, confrontation, or a new Cold War.

Biden speaks after meeting with President Xi
The two leaders made progress on a number of key issues. They welcomed the resumption of bilateral cooperation to combat global illicit drug manufacturing and trafficking, including synthetic drugs like fentanyl, and establishment of a working group for ongoing communication and law enforcement coordination on counter narcotics issues. President Biden stressed that this new step will advance the U.S. whole-of-government effort to counter the evolving threat of illicit synthetic drugs and to reduce the diversion of precursor chemicals and pill presses to drug cartels.

The two leaders welcomed the resumption of high-level military-to-military communication, as well as the U.S.-China Defense Policy Coordination Talks and the U.S.-China Military Maritime Consultative Agreement meetings.  Both sides are also resuming telephone conversations between theater commanders.


The leaders affirmed the need to address the risks of advanced AI systems and improve AI safety through U.S.-China government talks.

The two leaders exchanged views on key regional and global challenges.  President Biden underscored the United States’ support for a free and open Indo-Pacific that is connected, prosperous, secure, and resilient.  The President reaffirmed the United States’ ironclad commitment to defending our Indo-Pacific allies.  The President emphasized the United States’ enduring commitment to freedom of navigation and overflight, adherence to international law, maintaining peace and stability in the South China Sea and East China Sea, and the complete denuclearization of the Korean Peninsula.

President Biden reaffirmed that the United States, alongside allies and partners, will continue to support Ukraine’s defense against Russian aggression, to ensure Ukraine emerges from this war as a democratic, independent, sovereign, and prosperous nation that can deter and defend itself against future aggression.  Regarding the Israel-Hamas conflict, the President reiterated U.S. support for Israel’s right to defend itself against terrorism and emphasized the importance of all countries using their influence to prevent escalation and expansion of the conflict.

President Biden underscored the universality of human rights and the responsibility of all nations to respect their international human rights commitments. He raised concerns regarding PRC human rights abuses, including in Xinjiang, Tibet, and Hong Kong.  On Taiwan, President Biden emphasized that our one China policy has not changed and has been consistent across decades and administrations.  He reiterated that the United States opposes any unilateral changes to the status quo from either side, that we expect cross-strait differences to be resolved by peaceful means, and that the world has an interest in peace and stability in the Taiwan Strait.  He called for restraint in the PRC’s use of military activity in and around the Taiwan Strait.  President Biden also raised continued concerns about the PRC’s unfair trade policies, non-market economic practices, and punitive actions against U.S. firms, which harm American workers and families.  The President emphasized that the United States will continue to take necessary actions to prevent advanced U.S. technologies from being used to undermine our own national security, without unduly limiting trade and investment. 

The President again emphasized that it remains a priority to resolve the cases of American citizens who are wrongfully detained or subject to exit bans in China.  

Creator: KEVIN LAMARQUE Credit: REUTERS Edit:ENB

The two leaders reiterated the importance of ties between the people of the United States and the People’s Republic of China, and committed to work towards a significant further increase in scheduled passenger flights early next year, in parallel with actions to restore full implementation of the U.S.-China air transportation agreement, to support exchanges between the two countries. The two leaders also encouraged the expansion of educational, student, youth, cultural, sports, and business exchanges.

Building on the November 2022 meeting in Bali where they discussed the development of principles related to U.S. – China relations, the two leaders acknowledged the efforts of their respective teams to explore best practices for the relationship.  They stressed the importance of responsibly managing competitive aspects of the relationship, preventing conflict, maintaining open lines of communication, cooperating on areas of shared interest, upholding the UN Charter, and all countries treating each other with respect and finding a way to live alongside each other peacefully. The leaders welcomed continued discussions in this regard.

The two leaders underscored the importance of working together to accelerate efforts to tackle the climate crisis in this critical decade.  They welcomed recent positive discussions between their respective special envoys for climate, including on national actions to reduce emissions in the 2020s, on common approaches toward a successful COP 28, and on operationalizing the Working Group on Enhancing Climate Action in the 2020s to accelerate concrete climate actions. President Biden stated that the United States stands ready to work together with the PRC to address transnational challenges, such as health security and debt and climate finance in developing countries and emerging markets.

The two leaders agreed that their teams will follow-up on their discussions in San Francisco with continued high-level diplomacy and interactions, including visits in both directions and ongoing working-level consultations in key areas, including on commercial, economic, financial, Asia-Pacific, arms control and nonproliferation, maritime, export control enforcement, policy-planning, agriculture, and disability issues.

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   Sri Lanka revenue targets ambitious: Fitch

Wednesday November 15, 2023  ECONOMYNEXT

Sri Lanka’s revenue target for 2024 is ambitious even if there is an economic recovery, Fitch Ratings said though there were ways of managing the deficit.

“Fitch believes there are significant risks to the government’s revenue goal for 2024,” the agency said. “Sri Lanka has a record of fiscal slippage, and revenue collection fell 29% short of target over 9M23.”

The full statement is reproduced below:

Sri Lanka’s ambitious budget agenda faces high implementation risks

The targets laid out in Sri Lanka’s budget for 2024 will be challenging to meet, even with the economic recovery that we expect to continue next year, says Fitch Ratings.

The fiscal deficit is set to be wider than our current forecast of 7.1% of GDP in 2024 in light of the new data, even after excluding bank recapitalisation costs, and the revenue/GDP ratio will be lower than we had assumed.

The government is targeting a budget deficit of 9.1% of GDP in 2024, wider than a revised estimate of 8.5% in 2023.

However, without bank recapitalisation costs, the deficit in 2024 would be a narrower 7.6% of GDP.

Excluding recapitalisation costs, the budget targets a primary surplus of 0.8% of GDP in 2024, against a deficit of 0.7% in 2023. However, including recapitalisation costs pushes the 2024 primary deficit target to 0.6% of GDP.

The primary surplus goal for 2024, excluding bank recapitalisation, is broadly in line with the 0.8% of GDP projected by the IMF in March when it approved Sri Lanka’s USD3 billion Extended Fund Facility (EFF).

We also see the revenue target as relatively aligned. However, the government’s expenditure target for 2024, at 22.2% of GDP, is somewhat higher than the 19.7% the IMF had envisioned and well above the revised budget estimate of 18.7% for 2023.

The release of the next tranche of EFF financing, worth around USD330 million, will depend partly on the IMF’s assessment of Sri Lanka’s progress in securing financing assurances from official creditors.

Fitch believes there has been some progress since March, but the timeline for a restructuring deal with official creditors remains unclear.

Fitch believes there are significant risks to the government’s revenue goal for 2024. Sri Lanka has a record of fiscal slippage, and revenue collection fell 29% short of target over 9M23.

The authorities aim to raise revenue by almost 45% in 2024. This will be aided by a planned 3pp increase in the value-added tax to 18%, but the boost to revenue from inflation is set to weaken in 2024.

We project consumer prices will rise by 8.7% on average in 2024, compared with 22.1% in 2023. The lift from economic growth, which Fitch projects at 3.3% in 2024, will also be modest.

Downside risks to revenue could be offset by lower-than-budgeted spending. We think the presidential election in late 2024 will incentivise the government to keep to its spending plans, which include a 14% increase in spending on salaries and wages.

Nevertheless, if revenue falls short, there may be some room to trim capital expenditure, which amounts to almost 20% of total planned spending and is budgeted to rise 55% in 2024, excluding bank recapitalisation.

The government’s efforts to implement governance reform after a recent diagnostic study by the IMF may also support revenue collection.

The budget proposes to establish a new revenue authority under the Ministry of Finance to improve tax collection, and a new investment law will look to establish a National Economic Commission to promote investment.

However, it will take time to assess these bodies’ effectiveness.

Fitch rates Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default).

We may move the IDR out of ‘RD’ upon the sovereign’s completion of a commercial debt restructuring that we judge to have normalised the relationship with the international financial community.

Sri Lanka’s post-default rating would depend upon our assessment of its credit profile. Fitch upgraded Sri Lanka’s Long-Term Local-Currency IDR to ‘CCC-‘ in September, reflecting the completion of the local-currency portion of Sri Lanka’s domestic debt optimisation plan. (Colombo/Nov15/2023)

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