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Morocco earthquake: Race against time to reach survivors as number killed nears 2,900

The United Nations estimates some 300,000 people were affected by Friday night’s magnitude 6.8 quake, with most of the destruction and deaths in the High Atlas Mountains, where homes folded in on themselves and left residents trapped underneath the ruins.

Rescuers are battling to reach remote mountain towns devastated by the earthquake in Morocco, as the number of confirmed deaths from the disaster neared 2,900.

Search teams from the UK, Spain, Qatar and the United Arab Emirates were joining efforts to help find people buried under debris.

The United Nations estimates some 300,000 people were affected by Friday night’s magnitude 6.8 quake, which was made more dangerous by its relatively shallow depth.

Most of the destruction and deaths were in Al Haouz province in the High Atlas Mountains, where homes folded in on themselves and left residents trapped underneath the ruins.

Much of the quake zone is in hard-to-reach areas and roads have been blocked by rocks, making it hard for rescuers to access the worst-hit locations.

Authorities have not yet issued any estimates for the number of people missing.

The UK has sent a 60-person search team with four dogs, medical staff, listening devices and concrete-cutting gear.

The European Union said it was releasing an initial €1m (£858,000) to non-governmental aid organisations in Morocco.

A search worker stands among rubble in Talat N’yaaqoub, Morocco

Survivors spend three nights sleeping outside

Aftershocks have hit the quake zone, leading those left homeless to spend three nights sleeping on the streets of Marrakech or under makeshift canopies in devastated towns.

Survivors struggling to find shelter and supplies have criticised the government’s response, accusing it of being slow.

The army said it was reinforcing search-and-rescue teams, providing drinking water and distributing food, tents and blankets.

BRICS+6 to control 30% of global GDP, 46% of population

Currently, China controls 70 per cent of the BRICS GDP while India’s share is 13 per cent. This will fall to 62 and 12 per cent, respectively, after the new members join. Brazil’s share will remain unchanged at 7 per cent.

The addition of six new members to the BRICS grouping will see it controlling 46 per cent of the world’s population and 30 per cent of its economic output, according to a research paper.

At the latest BRICS summit in Johannesburg last week, the present members — Brazil, Russia, India, China and South Africa — decided to add Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates as new members of the grouping.

The new members will become part of BRICS effective January 1, 2024.

The acronym BRICS was originally coined in 2001 by Goldman Sachs economists led by Jim O’Neill. Later in December 2010, South Africa was added as the fifth member.

Currently, the five-member grouping is home to 40 per cent of the world’s population which controls 26 per cent of the global GDP.

But with the six new members (BRICS+6), their GDP share will jump to 30 per cent and share of population will go up to 46 per cent, Soumya Kanti Ghosh, the Chief Economic Adviser to State Bank of India, said in a note.

However, the biggest impact will be on the share of global oil production that will increase to 40 per cent from the current 18 per cent, while their oil intake share will jump from 27 per cent to 36 per cent, according to the note.

Similarly, their share in global merchandise trade will rise from 20 per cent to 25 per cent, and that of global services trade will increase to 15 per cent from 12, the note said, adding that their share in the global forex reserves will increase by 600 bps to 45 per cent.

Ghosh stated that the new grouping will lead to the rise of a new Global South as BRICS+6 will offer a credible alternative to the hegemony of the Global North when it comes to global affairs, trade, currency and energy security.

Source : https://www.deccanherald.com/world/brics6-to-control-30-of-global-gdp-46-of-population-2665138

Australia concerned about China economy, monitoring ‘very closely’

Australian Treasurer Jim Chalmers poses for a photograph as he arrives to attend a G20 finance ministers’ and Central Bank governors’ meeting at Gandhinagar, India, July 18, 2023. REUTERS/Amit Dave Acquire Licensing Rights

Australian Treasurer Jim Chalmers said on Sunday the government was closely watching China amid “concerning” signs of economic weakness that could weigh on Australia’s economy.

“I share the pretty substantial concerns that people have voiced about the Chinese economy,” Chalmers told Sky News television.

“It is concerning to see the weakness, the softness, in the recent weeks and months in the Chinese economy because it has obvious implications for us here in Australia.”

Recovery in China, the world’s second-largest economy, has sputtered due to a worsening property slump, weak consumer spending and tumbling credit growth, prompting the authorities to slash interest and promise further support while analysts downgrade growth forecasts.

China is the top trading partner for raw-materials exporter Australia, with annual trade of A$285 billion, although Canberra has urged exporters to become less reliant on China amid diplomatic tensions.

“In China they’re dealing with slower growth, they’ve got deflation, there are concerns in their property sector and to some extent in their banking sector, their exports have slowed as well, Chalmers said. “Our concerns for China in particular is something that we’re monitoring very closely.”

Source: https://www.reuters.com/world/asia-pacific/australia-concerned-about-china-economy-monitoring-very-closely-2023-08-27/

Economist Lord Jim O’Neill Calls BRICS Currency Idea ‘Ridiculous’ — Says China and India Never Agree on Anything

Lord Jim O’Neill, the British economist credited with coining the acronym BRIC, calls the creation of a common BRICS currency “ridiculous,” emphasizing that the BRICS nations have “never achieved anything since they first started meeting.” He added: “It’s a good job for the West that China and India never agree on anything, because if they did the dominance of the dollar would be a lot more vulnerable.”

Lord Jim O’Neill Slams Common BRICS Currency Idea

British economist Lord Jim O’Neill shared his view on the proposed single BRICS currency in an interview with the Financial Times this week. The BRICS leaders are set to meet at the economic bloc’s 15th summit on Aug. 22-24 in Johannesburg. South Africa is the host of the BRICS summit this year. However, there are mixed reports on whether the creation of a common BRICS currency will be discussed at the summit.

O’Neill, a former Goldman Sachs economist, coined the acronym BRIC over 20 years ago to describe the economic potential of Brazil, Russia, India, and China. South Africa joined the group a few years later, and the acronym was changed to BRICS. O’Neill is now a senior adviser at U.K. think tank Chatham House.

The economist asserted that the BRICS nations had “never achieved anything since they first started meeting” eight years after he created the phrase in a 2001 research note. He believes that a common currency for the BRICS economic bloc would be unfeasible, stating:

It’s just ridiculous … They’re going to create a BRICS central bank? How would you do that? It’s embarrassing, almost.

“Quite what they attempt to achieve beyond powerful symbolism, I don’t know,” he opined.

In June, Lord O’Neill similarly described the idea of a single currency for the BRICS nations as “ridiculous” and “amusing.” He stressed that “China and India never agree on anything,” pointing out that the two countries “can’t even really agree on basic things like a peaceful border.”

U.S. Dollar Could Lose Its Dominance, Lord O’Neill Warns

The British economist also commented on the dominance of the U.S. dollar, emphasizing that the USD’s dominant position in the global financial system is not beneficial for emerging countries. He described:

The dollar’s role is not ideal for the way the world has evolved. You’ve got all these economies who live on this cyclical never-ending twist of whatever the [U.S. Federal Reserve] decides to do in the interests of the U.S.

Some economists have predicted that other currencies, such as the Chinese yuan, the Japanese yen, or the euro, would eventually overtake the U.S. dollar. However, O’Neill cautioned: “None of these things will ever happen until those countries want to have their currencies used by people in other parts of the world.”

Saudis, other oil giants announce surprise production cuts

Saudi Arabia and other major oil producers on Sunday announced surprise cuts totaling up to 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.

Higher oil prices would help fill Russian President Vladimir Putin’s coffers as his country wages war on Ukraine and force Americans and others to pay even more at the pump amid worldwide inflation.

It was also likely to further strain ties with the United States, which has called on Saudi Arabia and other allies to increase production as it tries to bring prices down and squeeze Russia’s finances.

The production cuts alone could push U.S. gasoline prices up by roughly 26 cents per gallon, in addition to the usual increase that comes when refineries change the gasoline blend during the summer driving season, said Kevin Book, managing director of Clearview Energy Partners LLC. The Energy Department calculates the seasonal increase at an average of 32 cents per gallon, Book said.

So with an average U.S. price now at roughly $3.50 per gallon of regular, according to AAA, that could mean gasoline over $4 per gallon during the summer.

However, Book said there are a number of complex variables in oil and gas prices. The size of each country’s production cut depends on the baseline production number it is using, so the cut might not be 1.15 million. It also could take much of the year for the cuts to take effect. Demand could fall if the U.S. enters a recession caused by the banking crisis. But it also could increase during the summer as more people travel.

Even though the production cut is only about 1% of the roughly 100 million barrels of oil the world uses per day, the impact on prices could be big, Book said.

“It’s a big deal because of the way oil prices work,” he said. “You are in a market that is relatively balanced. You take a small amount away, depending on what demand does, you could have a very significant price response.”

Saudi Arabia announced the biggest cut among OPEC members at 500,000 barrels per day. The cuts are in addition to a reduction announced last October that infuriated the Biden administration.

The Saudi Energy Ministry described the move as a “precautionary measure” aimed at stabilizing the oil market. The cuts represent less than 5% of Saudi Arabia’s average production of 11.5 million barrels per day in 2022.

Source: https://dnyuz.com/2023/04/02/saudis-other-oil-giants-announce-surprise-production-cuts/