Death toll reaches 85 in Mexico fuel pipeline fire

Agencies
January 21, 2019

Tlahuelilpan, Jan 21: People in the town where a gasoline explosion killed at least 85 people say the section of pipeline that gushed fuel has been a habitual gathering site for thieves, repeatedly damaged and patched like a trusty pair of jeans.

"It was the popular tap," said Enrique Cerron, 22, who lives near the field. "You could pass by at 11 or 12 in the morning and see people filling up here."

On Friday, amid countrywide fuel shortages at gas stations as the government attempts to stem widespread fuel theft, this particular section of pipeline had come back into service after being offline for nearly four weeks when somebody punctured the line again. Word quickly spread through the community of 20,000 people that gas was flowing. Come one, come all.

Hundreds showed up at the spigot, carrying plastic jugs and covering their faces with bandanas. A few threw rocks and swung sticks at soldiers who tried to shoo them away. Some fuel collectors brought their children along.

Tlahuelilpan is a largely agrarian community located 90 minutes by car from the capital and just 8 miles (13 kilometers) from the state-run Tula oil refinery.

It's surrounded by verdant alfalfa fields and power plant stacks, and is reasonably affluent by rural Mexican standards. Hidalgo state data shows about half the community lives in moderate poverty, in line with the national average.

At first the gasoline leak was manageable, locals say, emitting a tame fountain of fuel that allowed for filling small buckets at a time. But as the crowd swelled to more than 600, people became impatient.

That's when a man rammed a piece of rebar into a patch, according to Irma Velasco, who lives near the alfalfa field where the explosion took place, and gasoline shot 20 feet (6 meters) into the air, like water from a geyser.

A carnival atmosphere took over. Giddy adults soaked in gasoline filled jugs and passed them to runners. Families and friends formed human chains and guard posts to stockpile containers with fuel.

For nearly two hours, more than a dozen soldiers stood guard on the outskirts of the field, warning civilians not to go near. Officials say the soldiers were outnumbered and their instructions were to not intervene. Only a week earlier, people in a different town had beaten some soldiers who tried to stop them from gorging on state-owned fuel.

The lure of free fuel was irresistible for many: They came like moths to a flame, parking vehicles on a nearby road.

The smell of gas grew stronger and stronger as thousands of barrels spewed. Those closest to the gusher apparently became delirious, intoxicated by fumes.

Townspeople stumbled about. The night filled with an eerie mist, a mixture of cool mountain air and fine particles of gasoline.

Velasco said she rushed to aid a man she saw staggering along the road and away from the gusher. She removed his gas-drenched clothes to help alleviate the overwhelming stench of toxic fuel. Then she helped another young man, who described to her how the geyser had erupted.

Cerron was at the heart of the mayhem when he sensed mounting danger. He pulled a 70-year-old man out of a ditch where gasoline was pooling; the man had passed out from the vapors. Then Cerron, a student, decided it was time to go home.

"They looked like zombies trying to get all that gasoline out," says Cerron. He passed soldiers warning would-be scavengers to stay away. It's going to explode, they said. And it did. Once home, Cerron turned for one last glance at the gusher. Instead he saw flames.

The fireball that engulfed those scooping up gasoline underscores the dangers of the epidemic of fuel theft that Mexico's new president has vowed to fight.

By Sunday evening, the death toll blaze had risen to 85, with 58 others hospitalized, federal Health Minister Jorge Alcocer said. Dozens more were listed as missing.

Soldiers formed a perimeter around an area the size of a soccer field where townspeople were incinerated by the fireball, reduced to clumps of ash and bones.

Officials suggested Sunday that fields like this, where people were clearly complicit with the crime of fuel theft, could be seized by the government.

But Attorney General Alejandro Gertz ruled out bringing charges against townspeople who merely collected spilled fuel, and in particular those hospitalized for burns.

"Look, we are not going to victimize the communities," he said. "We are going to search for those responsible for the acts that have generated this tragedy."

The disaster came just three weeks after President Andres Manuel Lopez Obrador launched an offensive against fuel theft gangs that had drilled dangerous, illegal taps into pipelines an astounding 12,581 times in the first 10 months of 2018, an average of about 42 per day.

The crackdown has led to fuel scarcity at gas stations throughout the country due to shifts in distribution, both licit and illicit.

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News Network
May 24,2020

New Delhi, May 24: The Indian economy is likely to slip into recession in the third quarter of this fiscal as loss in income and jobs and cautiousness among consumers will delay recovery in consumer demand even after the pandemic, says a report.

According to Dun & Bradstreet's latest Economic Observer, the country's economic recovery will depend on the efficacy and duration of implementation of the government's stimulus package.

"The multiplier effect of the stimulus measures on the economy will depend on three key aspects i.e. the time taken for effecting the withdrawal of the lockdown, the efficacy of implementation and duration of execution of the measures announced," Dun & Bradstreet India Chief Economist Arun Singh said.

The report noted that the government's larger-than-expected stimulus package is likely to re-start economic activities.

Besides, measures taken by the Reserve Bank of India like reducing the repo rate by a further 40 basis points to 4 per cent, extending the moratorium period by three months and facilitating working capital financing will also help stimulate the momentum.

Singh said while the measures announced by the government are "positive", most of them have been directed towards strengthening the supply side of the economy, and "it is to be noted that supply needs to be matched with demand", he said.

Besides, "in the absence of cash-in-hand benefits under the government's stimulus package, demand for goods and services is expected to remain depressed", he added.

He further said the loss in income and employment opportunities, and cautiousness among consumers, will lead to a delayed recovery in consumer demand, even after the pandemic. As debt and bad loan levels increase, the banking sector might face challenges.

The report further noted that even as the monetary stimulus is expected to inject liquidity and stimulate demand for a wider section of the economy, the channelisation of funds from the financial institutions will be subjected to several constraints.

The foremost concern being increase in risk averseness, as the balance sheets of firms, households, and banks/NBFCs have weakened considerably and low demand for funds by firms as production activities have been on a standstill during the lockdown period, Singh said.

India has been under lockdown since March 25 to contain the spread of the coronavirus, resulting in supply disruptions and demand compression.

Prime Minister Narendra Modi imposed a nationwide lockdown to control the spread of coronavirus on March 25. It has been extended thrice, with some relaxations. The fourth phase of the lockdown is set to expire on May 31. 

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News Network
July 3,2020

Jul 3: China under President Xi Jinping has stepped up its "aggressive" foreign policy toward India and "resisted" efforts to clarify the Line of Actual Control that prevented a lasting peace from being realised, according to a report released by a US Congress appointed commission.

The armies of India and China have been locked in a bitter standoff at multiple locations in eastern Ladakh for the last seven weeks, and the tension escalated after 20 Indian soldiers were killed in a violent clash in the Galwan Valley on June 15.

“Under General Secretary of the Chinese Communist Party (CCP) Xi Jinping, Beijing has stepped up its aggressive foreign policy toward New Delhi. Since 2013, China has engaged in five major altercations with India along the Line of Actual Control (LAC),” said a brief issued by US-China Economic and Security Review Commission.

"Beijing and New Delhi have signed a series of agreements and committed to confidence-building measures to stabilise their border, but China has resisted efforts to clarify the LAC, preventing a lasting peace from being realised,” said the report and was prepared at the request of the Commission to support its deliberations.

Authored by Will Green, a Policy Analyst on the Security and Foreign Affairs Team at the Commission, the report says that the Chinese government is particularly fearful of India’s growing relationship with the United States and its allies and partners.

“The latest border clash is part of a broader pattern in which Beijing seeks to warn New Delhi against aligning with Washington,” it said.

After Xi assumed power in 2012, there was a significant increase in clashes, despite the fact that he met Prime Minister Narendra Modi several times and Beijing and New Delhi have agreed to a series of confidence-building mechanisms designed to mitigate tensions.

Prior to 2013, the last major border clash was in 1987. The 1950s and 1960s were a particularly tense period, culminating in 1962 with a war that left thousands of soldiers dead on both sides, according to the records of China's People's Liberation Army, the report said.

“The 2020 skirmish is in line with Beijing’s increasingly assertive foreign policy. The clash came as Beijing was aggressively pressing its other expansive sovereignty claims in the Indo-Pacific region, such as over Taiwan and in the South and East China seas,” it said.

China is engaged in hotly contested territorial disputes in both the South China Sea and the East China Sea. Beijing has built up and militarised many of the islands and reefs it controls in the region. Both areas are stated to be rich in minerals, oil and other natural resources and are vital to global trade.

China claims almost all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the area.

Several weeks before the clash in the Galwan Valley, Chinese Defence Minister Wei Fenghe called on Beijing to “use fighting to promote stability” as the country’s external security environment worsened, a potential indication of China’s intent to proactively initiate military tensions with its neighbours to project an image of strength, the report said.

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News Network
July 27,2020

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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