Ankara, Baghdad and Riyadh ask: Are US air strikes working?

October 11, 2014

Oct 11: The ISIS, plaguing many countries in West Asia, made a symbolic assertion during Haj too. At the ritual stoning of the devil at Mina, five kilometres to the East of Mecca, fluttered a black banner of the Islamic State (IS). The police said nothing.

US Air StrikeRecently, The Independent in London published an article giving a clue to ordinary Saudi reaction to IS. Patrick Cockburn, the writer, has cited a study done by Fouad Khadem of the Centre of Academic Shia Studies in London.

Public discussions on sensitive issues are not permitted in Saudi Arabia. Tweeting therefore has become a common vehicle to sustain debates.

The messages Saudis have been sharing on the Islamic State are fascinating.

When IS swept through northern Iraq and eastern Syria, Mania bin Nasir al-Mani was pleased. "The great land of Allah belongs neither to Kings nor nations. Those who deserve the Caliphate are those who implement the Sharia of Allah on earth and on people. Apostates and traitors deserve nothing but the sword." Later, al Mani joined the IS in Syria.

One Azfar Minfard declared: "No need for IS to enter - our country is full of them (IS)." Fata al Arab was more emphatic: "IS is on the Saudi borders, and its supporters inside Saudi Arabia are more than its organized members and armed fighters."

A revealing tweet came from Adil al-Kalbany, a Wahabi Shaikh, who has for years led prayers as an Imam of the Holy Shrine in Mecca. "IS is a Salafi (fundamentalist) offshoot - a reality we should confront with transparency."

As soon as President Barack Obama announced the coalition of the willing to wage war against IS, Saudi Arabia, Bahrain, Kuwait, Qatar, the UAE and Jordan instantly signed up. The next country had to seek permission from parliament before it joined - Great Britain, but only to bomb IS in Iraq. Strange, isn't it?

The tardiness with which the coalition of willing nations is being erected contrasts sharply with the speed with which non-state actors have come together as ISIS - a hodge-podge of Islamists, ex-Baathists

turned-deeply religious in their marginalized distress, Naqshbandi Sufis, Muslim Brothers, Salafists, Al Qaeda, Jabat al Nusra, everyone without exception opposed to Islamic monarchies.

One would have thought that Morocco is not prominent in the coalition of the willing because Rabat considers itself remote from the IS theatre. The monarchy woke up with a start the other morning when its security forces, in a coordinated action with Spain, busted an IS recruitment cell.

While the cumulative power of all the elements in the IS are focussed on monarchies, principally Saudi Arabia, elements in the IS have independent scores to settle with regimes in Baghdad, Ankara and sub-groups fighting the central authority in these states.

The IS, which mutated from the civil war in Syria, first identified groups seething with local anger. The famous occupation of Mosul, which boosted the prestige of the IS as a formidable force, would not have been possible without painstaking groundwork.

Abu Bakr al Baghdadi was able to find an ally at the highest echelons of the Nineveh province. Mosul is its capital. The Governor, Atheel Nujaifi, handed over the keys of Mosul to al Baghdadi, an act of splendid treachery. He arranged for a most orderly takeover of Mosul by the Caliphate.

Nujaifi had longstanding grievances. He had for years been trying to carve out Mosul as a Sunni dominated city surrounded by Kurds including 350,000 of a minority tribe called the Yazidis.

Mosul and Erbil happen to be just a little north of the 36th parallel beyond which Western Forces had established a security zone after the first Gulf war to encourage Kurdish refugees to return to Iraq.

This exactly is what Nujaifi was seething with rage about. He handed over the battle to the IS. This one move created turbulence in the Kurdish north of Iraq which the Americans had tranquilized with a No Fly Zone during Saddam's rule.

The alacrity with which Obama announced air strikes against the IS was to protect assets in Kurdish Iraq where Israelis, Turks and Americans have been doing reasonable business in recent decades. The swiftness with which the Gulf Sheikhs lined up dictated the next American priority.

Saudi Arabia had to be protected. Without a strong Saudi Arabia in the region, Israel would be a lonesome presence. That is why the US is talking of "decades" long presence in the region. Whatever else the IS may do they must not lurch towards Saudi Arabia. The US will stand at the gate like supreme bouncers. But an extended US stay will create the inevitable political backlash - exponential anti-Americanism.

Shias from Mosul clambered on to their cars and trucks and drove 450 km to Karbala and Najaf. Between these two pilgrim centres, the 120-km route is lined by big halls as halting stations for pilgrims. These are tearing at the seams with Shia refugees who do not know where to turn for help since there is very little government on view in Baghdad. The "all inclusive" government of Haider al Abadi is, on the face of it, not governing.

Meanwhile, Prime Minister Tayyip Erdogan of Turkey is scripting his own tragedy of indecision, rather like the Prince of Denmark. Everyone in the region, without exception, is keeping one's fingers crossed.

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News Network
May 19,2020

May 18: Risk managers expect a prolonged global recession as a result of the coronavirus pandemic, a report by the World Economic Forum showed on Tuesday.

Two-thirds of the 347 respondents to the survey - carried out in response to the outbreak - put a lengthy contraction in the global economy top of their list of concerns for the next 18 months.

Half of risk managers expected bankruptcies and industry consolidation, the failure of industries to recover and high levels of unemployment, particularly among the young.

“The crisis has devastated lives and livelihoods. It has triggered an economic crisis with far-reaching implications and revealed the inadequacies of the past," said Saadia Zahidi, managing director of the World Economic Forum.

Environmental goals risk being discarded as a result of the pandemic, the report said, but governments should try to carve out a "green recovery".

"We now have a unique opportunity to use this crisis to do things differently and build back better economies that are more sustainable, resilient and inclusive," Zahidi said.

The report was compiled by the World Economic Forum’s Global Risks Advisory Board together with Marsh & McLennan Companies Inc and Zurich Insurance Group.

Risk managers were surveyed between April 1 and 13.

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Agencies
February 16,2020

Wuhan, Feb 16: The death toll from China's coronavirus epidemic has climbed to 1,665 after 142 more people died, mostly in the worst-hit Hubei Province, and the confirmed cases jumped to 68,500, officials said on Sunday, as top WHO experts scramble to assist Beijing contain the virus spread.

China's National Health Commission confirmed 2,009 new cases across the country.

Hubei and its provincial capital Wuhan, where the virus first emerged in December, reported 1,843 of the new cases. The latest report brought the total confirmed cases in Hubei to 56,249 cases.

Of the new deaths, 139 were in Hubei, two in Sichuan, and one in Hunan, the state-run Xinhua news agency reported.

The number of new cases, however, appears to have started dropping and a top Chinese health official has said efforts to control the outbreak have reached the “most crucial stage".

The report said 9,419 infected patients had been discharged from hospital after recovery so far.

The coronavirus has posed a severe threat to the medical staff as more than 1,700 Chinese health officials have been infected by the virus while treating the patients and six of them have died.

Experts from the World Health Organisation are expected in Beijing on Sunday to join Chinese health authorities in containing the virus, which has spread to several other countries forcing them to temporarily stop tourist arrivals from China.

The health commission said a joint mission with WHO experts will pay field visits to China's three provincial-level regions to learn the effectiveness of the epidemic control measures.

One task of the mission will be to come up with standard medicine to cure the disease, according to the health commission.

Several antiviral drugs are under clinical trials and Chinese researchers have narrowed down their focus to a few existing drugs, including Chloroquine Phosphate, Favipiravir and Remdesivir, said Zhang Xinmin, director of the China National Centre for Biotechnology Development.

Experts have asked people to frequently wash hands and face, and wear masks.

Authorities have begun quarantining large quantity of bank notes and coins in the affected areas and sanitising them with UV light before releasing them back into circulation to stop the virus from spreading.

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News Network
April 21,2020

New York, Apr 21: Oil prices plunged below zero on Monday as demand for energy collapses amid the coronavirus pandemic and traders don't want to get stuck owning crude with nowhere to store it.

Stocks were also slipping on Wall Street in afternoon trading, with the S&P 500 down 0.9%, but the market's most dramatic action was by far in oil, where benchmark U.S. crude for May delivery plummeted to negative $3.70 per barrel, as of 2:15 pm. Eastern time.

Much of the drop into negative territory was chalked up to technical reasons — the May delivery contract is close to expiring so it was seeing less trading volume, which can exacerbate swings. But prices for deliveries even further into the future, which were seeing larger trading volumes, also plunged.

Demand for oil has collapsed so much due to the coronavirus pandemic that facilities for storing crude are nearly full.

Tanks could hit their limits within three weeks, according to Chris Midgley, head of analytics at S&P Global Platts.

Benchmark U.S. crude oil for June delivery, which shows a more ”normal” price, fell 14.8% to $21.32 per barrel, as factories and automobiles around the world remain idled. Big oil producers have announced cutbacks in production in hopes of better balancing supplies with demand, but many analysts say it's not enough.

“Basically, bears are out for blood,” analyst Naeem Aslam of Avatrade said in a report. “The steep fall in the price is because of the lack of sufficient demand and lack of storage place given the fact that the production cut has failed to address the supply glut.”

Halliburton swung between gains and sharp losses, even though it reported stronger results for the first three months of 2020 than analysts expected. The oilfield engineering company said that the pandemic has created so much turmoil in the industry that it “cannot reasonably estimate” how long the hit will last. It expects a further decline in revenue and profitability for the rest of 2020, particularly in North America.

Brent crude, the international standard, was down $1.78 to $26.30 per barrel. .

In the stock market, the mild drops ate into some of the big gains made since late March, driven lately by investors looking ahead to parts of the economy possibly reopening as infections level off in hard-hit areas.

Pessimists have called the rally overdone, pointing to the severe economic pain sweeping the world and continued uncertainty about how long it will last.

The Dow Jones Industrial Average was down 364 points, or 1.5%, to 23,887. The Nasdaq was down 0.1%..

More gains from companies that are winners in the new stay-at-home economy helped limit the market's losses Amazon rose 1.4%, and Netflix jumped 3.8% as people shut in at home buy staples and look to fill their time. Clorox likewise rose toward a new record and was up 1% as households and businesses that remain open look to stay clean.

In Tokyo the Nikkei 225 fell 1.1% after Japan reported that its exports fell nearly 12% in March from a year earlier as the pandemic hammered demand in its two biggest markets, the U.S. and China.

The Hang Seng index in Hong Kong lost 0.2%, and South Korea's Kospi fell 0.8%.

European markets were modestly higher The German DAX was up 0.5%, the French CAC 40 was up 0.7% and the FTSE 100 in London gained 0.7%.

In a sign of continued caution in the market, Treasury yields remained extremely low. The yield on the 10-year Treasury slipped to 0.64% from 0.65% late Friday. It started the year near 1.90%. Bond yields drop when their prices rise, and investors tend to buy Treasurys when they're worried about the economy.

Stocks have been on a generally upward swing recently, and the S&P 500 just closed out its first back-to-back weekly gain since the market began selling off in February. Promises of massive aid for the economy and markets by the Federal Reserve and U.S. government ignited the rally, which sent the S&P 500 up as much as 28.5% since a low on March 23.

More recently, countries around the world have tentatively eased up on business-shutdown restrictions put in place to slow the spread of the virus.

But health experts warn the pandemic is far from over and new flareups could ignite if governments rush to allow ”normal” life to return prematurely.

The S&P 500 remains about 15% below its record high in February as millions more U.S. workers file for unemployment every week amid the shutdowns.

Many analysts also warn that a significant part of the recent recovery in stocks is due to the expectation among some investors that the economy will rebound sharply once economic quarantines are lifted. They're essentially predicting that a line chart of the economy will ultimately resemble the letter “V,” with a wild ride down but then a quick pivot to a vigorous recovery.

That may be to optimistic. “We caution that a U-shaped recovery is also quite likely,” where the economy bottoms out and stays at that low level for a while before recovering, strategists at Barclays warned in a recent report.

Without strong testing programs for COVID-19, businesses likely won't feel comfortable bringing back their full workforces for a while.

”With risk assets now overbought, the chance for a correction has increased,” Morgan Stanley strategists wrote in a report.

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