World

US-China rivalry clouds Beijing's climate promises at UN summit

Fractured relations between the United States and China have cast further doubt on whether Beijing will sign up to more climate promises, with pressure mounting on the world’s biggest emitter.

US President Joe Biden is expected to be among the leaders to show up at the COP27 summit in Egypt’s Red Sea resort of Sharm el-Sheikh, but his newly reanointed Chinese counterpart Xi Jinping will be conspicuous by his absence.

Cooperation between the world’s two largest economies and carbon polluters has been central to rare breakthroughs in the nearly 30-year saga of UN climate talks, including the landmark 2015 Paris Agreement.

However, relations have sunk to a 40-year low after a visit to Taiwan by House of Representatives Speaker Nancy Pelosi and a US ban on the sale of high-level chip technology to China, leaving the outcome of COP27 in doubt.

The rival nations have already been thrust under the spotlight at the talks in Egypt, with French President Emmanuel Macron telling campaigners on Monday both needed to “step up”.

– Low expectations –

Beijing was a central player in the French capital seven years ago and is also considered crucial to this year’s talks in Egypt, given the outsized impacts of its huge population, massive energy-guzzling economy and status as the planet’s largest emitter of greenhouse gases.

Xi has already pledged that China will peak its carbon dioxide emissions before 2030 and reduce them to net zero by 2060, moves seen as essential for meeting the Paris goal of keeping global temperature rise well below two degrees Celsius.

However, with humanity poised to blow past the 2 degrees Celsius limit under current commitments, pressure has grown on major polluters to go even further in their efforts to cut emissions.

Alden Meyer, a senior associate at climate change think tank E3G, said cooperation between China and the United States on key issues such as methane and deforestation was essential.

“If they’re pushing against each other on how to deal with those issues it’s never helpful,” Meyer told AFP.

“China and the US are both going to act based on what they think is in their national self-interest, but when it comes to international collaboration it’s been important for the US and China to be aligned at key moments.”

Still, there are scant hopes that China will significantly ramp up its climate commitments at COP27.

A report published by the environment ministry last month stressed the need to deliver existing pledges instead of promising anything new.

China’s climate change chief underscored the point, calling on developed countries to cough up long-promised cash for poorer nations instead of falling back on “empty slogans”.

– Methane fears –

China is under pressure to firm up plans to cut emissions of methane, an atmospheric pollutant present in much lower quantities than carbon dioxide but with far greater heat-trapping potential.

Methane accounts for around 10 percent of China’s total emissions, mainly from the mining, agriculture and waste sectors.

Beijing and Washington jointly declared last year that they would work together to control methane emissions.

But while the US has already laid out plans to cut its emissions to 30 percent below 2020 levels by the end of the decade, China has not yet announced its own roadmap.

“Methane is an area that has been neglected by China’s climate action … (but) can no longer stay as an afterthought,” said Li Shuo, senior global policy adviser at Greenpeace East Asia.

Whether Beijing releases an action plan at COP27, and what that plan entails, “will tell us a lot about China’s willingness to honour promises and its desire to engage with other partners”, Li told AFP.

– Belt and Road impact –

The environmental impact of Xi’s flagship Belt and Road initiative has also come under scrutiny.

The sprawling plan envisions a continent-spanning web of infrastructure projects to link China with markets in Asia, Europe, Africa and beyond.

Campaigners have criticised the projects for damaging fragile ecosystems and including new coal-fired power plants overseas, even as Beijing pivots towards renewables at home.

China was funding over a quarter of all new coal plants outside its borders by 2019, according to a report by the Institute for Energy Economics and Financial Analysis, a US think tank.

Authorities have since called a halt to overseas coal funding and pledged to pursue “green” projects that help to reduce emissions, cut pollution and protect biodiversity.

Concerns linger over China’s dependence on coal — which still makes up most of its energy supply — especially after it burned through even more this summer to meet increased air-conditioning demand and make up for shrunken hydropower dams.

Despite this, Xi can point to a suite of policies that have helped position China as an emerging environmental force, including ramping up support for renewables, bringing swaths of the countryside under state protection and booting smog-spewing factories out of large cities to improve air quality.

Tumbling gas prices fail to subdue energy bills

European wholesale gas prices have fallen from record peaks reached after producer Russia’s invasion of Ukraine, but energy bills remain sky high despite government help aimed at easing consumers’ pain.

In Britain and the European Union, the impact of soaring gas and electricity bills has been cushioned to an extent by state aid measures that seek to soften the blow of decades-high inflation.

But consumers still face unusually high bills, even if the worst of the winter has yet to come in the northern hemisphere.

“Energy bills will go down but there is a lag in the reaction because the utilities buy forward on the wholesale market a lot of the energy they then sell to the end-users,” said Georgi Slavov, analyst at financial group Marex. 

“This means that the extortionate prices we saw in the last three-six months have not fully gone through the system yet,” he told AFP.

Slavov added that “unless something bad happens again between now and January, we expect consumer prices — including headline inflation — to start falling in the first quarter of 2023”.

– Plunging prices –

Unusually warm autumnal temperatures have reduced demand and allowed most European nations — though not Britain — to ramp up gas storage.

A particularly cold winter could quickly send demand soaring once more across Europe.

“Industry specialists are warning that, just because (market) prices have fallen back sharply, does not mean they won’t rise back as fast if winter demand rises rapidly,” said independent analyst Howard Wheeldon.

“This relates to demand and how Europe copes through the winter.”

In March, soon after the start of Moscow’s assault on Ukraine, Europe’s benchmark Dutch TTF gas price jumped to a record 345 euros per megawatt hour.

UK gas futures hit an all-time peak at 800 pence per therm.

After falling back, the market briefly rebounded close to the same levels in the summer after Russia suspended gas supplies to Europe via the Nord Stream 1 pipeline.

However since August, TTF gas has shed about two thirds of its value.

In trading on Wednesday, TTF prices stood at 116.25 euros and UK prices at 278.13 pence.

Domestic energy suppliers bet against volatile prices by hedging, or taking a defensive position on futures markets, but this means they cannot always benefit from short-term moves in spot, or current, prices.

– China clouds outlook –

British households have had their annual energy bills capped at an average of £2,500 ($2,885) thanks to government help — but this is set to last only until April when bills are forecast to be even higher.

Traders are also mindful of the uncertain demand outlook from China, the world’s most populous nation.

Chinese demand hinges on the future of its economically damaging zero-Covid strategy. 

“China is currently maintaining Covid restrictions meaning that some of its industry remains shut down or producing far less than would be regarded as normal,” added Wheeldon.

“One may suggest that it is only lower demand for liquefied natural gas (LNG) by China that has allowed European nations to be so aggressive in mopping up output that might otherwise have been bought by China.”

The International Energy Agency last week warned that Europe must act immediately to prevent a shortage of natural gas next year as Russia slashes deliveries in the wake of the war.

The IEA said the shortfall would occur if Russia stops pipeline deliveries completely and China steps up its imports of LNG.

The region could lack 30 billion cubic metres that it needs “to fuel its economy and sufficiently refill storage sites during the summer of 2023, jeopardising its preparations for the winter of 2023-24,” the Paris-based agency said in a report.

And while SEB Markets analyst Ole Hvalbye told AFP he expected energy bills to fall following the recent sharp drops in wholesale prices, this is expected to be a “short-term blip”. 

“Prices are likely to climb again when entering the winter in a few weeks’ time,” he added.

Egypt dissident Abdel Fattah's family demands proof of life

The family of Egypt’s jailed dissident Alaa Abdel Fattah, who is refusing food and water, demanded information on his health Wednesday amid what they said were “rumours of force-feeding”.

International concern has mounted since Abdel Fattah, 40, escalated his months-long hunger strike by also declining liquids since Sunday, the start of the UN climate summit COP27 hosted by Egypt.

His UK-born mother Laila Soueif has made daily trips this week to the Wadi al-Natroun prison, about 100 kilometres (60 miles) north of Cairo, but has received no update or proof of life. 

The activist’s sister Mona Seif said their mother was back at the prison Wednesday “to try and get any letter or anything that proves Alaa is alive, conscious, and has not been exposed” to any more “violations”.

The dissident’s aunt, novelist Ahdaf Soueif, tweeted that “we cannot explain two days without letters” and said that the family was concerned about “rumours of force-feeding and of sleep-inducing drugs”.

She demanded that the British-Egyptian activist be moved to Cairo’s largest state hospital, the Qasr al-Aini University Hospital, and given access to lawyers and British embassy officials.

Abdel Fattah, a veteran pro-democracy and rights campaigner, is serving a five-year prison sentence for “spreading false news” by sharing a Facebook post about police brutality.

The United Nations, British Prime Minister Rishi Sunak, French President Emmanuel Macron and German Chancellor Olaf Scholz have all voiced concern and called for his release.

The only update in recent days has come from Egypt’s Foreign Minister Sameh Shoukry, the COP27 president.

Shoukry told multiple media at the summit that Abdel Fattah — whose dual citizenship Cairo does not recognise — has access to “all the necessary care in prison”.

Macron said after meeting Egyptian President Abdel Fattah al-Sisi Monday that he had received an assurance that Cairo is “committed to ensuring” Abdel Fattah’s health “is preserved” and that the situation will be resolved “in the coming weeks and months”.

But Soueif, the aunt, said that “the prison hospital is probably not equipped to care for the rare case of a patient who has been living for six months on 100 calories a day” in his hunger strike.

Activists at COP27 have posted widely on Twitter under the hashtag #FreeAlaa, and several speakers have ended with the words “you have not yet been defeated” — the title of the jailed activist’s book.

Human rights groups estimate that some 60,000 political prisoners are held in Egypt, many of them in brutal conditions and overcrowded cells, accusations which Cairo rejects.

China unveils new orders for homegrown passenger jet

China announced Wednesday hundreds of new orders for its first domestically manufactured large passenger jet, with the aircraft poised to make its commercial debut early next year.

The state-owned Commercial Aircraft Corp of China (COMAC) said it had sealed orders for 300 of the narrow-body C919 at a major airshow on Tuesday.

The announcement did not clarify whether the orders had been fully confirmed, and gave no details about the value of the deals or expected delivery dates.

If the orders go through, it would take the number of known deals for the C919 to more than 1,100, based on figures from previous COMAC statements.

Authorities hope the C919 — the country’s first homegrown jetliner with mass commercial potential — will challenge foreign models like the Boeing 737 MAX and the Airbus A320.

Beijing also anticipates that the aircraft will help reduce the country’s reliance on foreign technology amid testy ties with Western countries — though most of the plane’s parts are sourced from abroad.

COMAC said it had reached agreements with seven leasing firms for a combined 330 aircraft, including 30 of the C919’s predecessor, the ARJ21 regional jet, which came into operation in 2008.

The orders “fully expressed the confidence of our leasing partners” in the two models, COMAC said.

The company showed off the C919 on Tuesday at the China International Aviation and Aerospace Exhibition.

The sleek aircraft taxied down a runway in the southern city of Zhuhai before soaring into the skies in front of hundreds of onlookers.

Few details of existing orders for the C919 have been disclosed.

But domestic media have reported that four aircraft are expected to be delivered to China Eastern Airlines — the country’s second-largest carrier by passenger numbers — by the end of this year, and go into operation in the first quarter of 2023. 

China sealed a deal for Airbus jets worth $17 billion earlier this year.

The company began producing its A321 model in the eastern city of Tianjin on Wednesday with a view to making deliveries early next year, according to Xinhua.

The state-owned news agency quoted Airbus China CEO George Xu as saying the move displayed the company’s “unwavering support for the Chinese market”.

The Boeing 737 MAX has been grounded in China since 2019 after two fatal crashes, though Boeing said in July that it may be approved for delivery by Chinese regulators this year.

But lingering US-China trade tensions and China’s worst commercial air disaster earlier this year involving a Boeing 737-800 have slowed progress.

Australian sentenced to 129 years in Philippine child sex abuse case

An Australian man has been sentenced to 129 years in a Philippine jail as part of a child sexual abuse case involving victims as young as 18 months, a prosecutor said Wednesday.

It was the second conviction for Peter Gerard Scully, who is already serving a life sentence for an initial batch of charges involving the rape and trafficking of girls.

The Philippines has become a global hotspot for child sex exploitation, helped by poverty, English fluency and high internet connectivity in the country, experts warn.

“I hope this sends a very strong message to all abusers, all human traffickers, that crime really does not pay,” Merlynn Barola-Uy, a regional prosecutor in the southern city of Cagayan de Oro, told AFP.

A Cagayan de Oro court handed down the sentence on November 3 after Scully and his three co-accused entered into a plea bargaining agreement.

They had been charged with 60 offences, including trafficking, child pornography, child abuse and rape.

Scully’s girlfriend, Lovely Margallo, was sentenced to 126 years in jail. Two others were given sentences of more than nine years.

Victims and their families have accepted the terms of the agreement and consider it a “sweet victory”, according to a statement posted on the regional prosecution office’s Facebook page.

“They all want to put closure to this dark phase of their lives and move on,” the statement reads.

– ‘Big victory’ –

There was a total of nine victims in the two batches of charges against Scully.

The November 3 conviction involved seven victims, including an 18-month-old baby girl and a child whose body was found buried under the floor of a house rented by Scully, Barola-Uy said.

“This is a big victory, not only for us prosecutors in the Department of Justice, but more importantly this is a big victory for the victim-survivors,” she said.

Barola-Uy said the youngest victim was now in grade two at school while others were adults.

Philippines-based child rights campaigner Father Shay Cullen said the rare conviction showed “the world that justice can be done” in the Southeast Asian country.

But he said the Philippine agency tasked with investigating cybersex crimes lacked manpower.

“There are only 10 police officers investigating the cybersex crimes in the Philippines — only 10 for a population of 110 million people,” Cullen told AFP.

Scully was arrested in 2015 in Malaybalay, another southern Philippine city, after fleeing from Australia in 2011.

He had come to the Philippines to escape fraud charges in his home country.

He then set up a cybersex business, filming teenage girls from impoverished families as he had sex with them or used sex toys, investigators said previously. 

The videos were allegedly sold to customers in Germany, the United States and Brazil.

Barola-Uy said Scully and his girlfriend meted out “extreme kinds of abuses” to their victims.

“They were very graphic, they were very brutal,” she said.

Most of the people who pay to view these types of sex videos are abroad, with potentially thousands of children being abused, often with their parents’ consent, authorities say.

The United Nations Children’s Fund said in 2021 that the Philippines is one of the top global sources of child sex abuse materials.

North Korea fires ballistic missile, Seoul's military says

North Korea fired a ballistic missile Wednesday, Seoul’s military said, the latest launch from Pyongyang following a record-breaking testing blitz earlier this month.

The launch comes as the United States counted votes in the midterm elections for the House and Senate, which Seoul’s spy agency had previously warned would be a possible moment for Kim Jong Un to conduct a long-expected nuclear test.

Seoul’s military said it had “detected a short-range ballistic missile launched by North Korea into the East Sea from Sukchon, South Pyongan Province, at around 15:31 (0631 GMT)”, referring to the body of water also known as the Sea of Japan.

“Strengthening surveillance and vigilance, the South Korean military maintains full preparedness while closely cooperating with the United States,” it added.

The missile’s “flight distance was detected at about 290 kilometres (180 miles), an altitude of about 30 kilometres, and a speed of about Mach 6,” according to Seoul’s military.

Japan also confirmed the launch, with the government tweeting that Pyongyang “has launched a suspected ballistic missile”. 

Earlier this month, North Korea conducted a flurry of launches, including an intercontinental ballistic missile, which Seoul said appeared to have failed.

Pyongyang also fired a short-range ballistic missile that crossed the de facto maritime border and landed near the South’s territorial waters for the first time since the end of the Korean War in 1953.

South Korean President Yoon Suk-yeol said at the time that it was “effectively a territorial invasion”.

Both launches were part of a Wednesday November 2 barrage, when Pyongyang fired 23 missiles — more than it launched during the whole of 2017, the year of “fire and fury” when Kim traded barbs with then-US president Donald Trump on Twitter and in state media.

“If you look at North Korea’s behaviour since September 25, they have used a lot of money to consistently escalate tensions, so they need to maintain it,” Park Won-gon, a professor at Seoul’s Ewha University, told AFP.

North Korea fired a ballistic missile on September 25, which kicked off a spate of launches, including an intermediate-range ballistic missile which overflew Japan. Pyongyang later claimed these were “tactical nuclear drills”.

“At the end, there will be a seventh nuclear test. Even though the joint drills are done for now, it’s unlikely that North Korea will lower tensions,” Park said.

– Drills, predictions –

November’s flurry of launches came as hundreds of US and South Korean warplanes were participating in large-scale joint air drills, called Vigilant Storm, which Pyongyang has described as “aggressive and provocative”. 

Pyongyang ramped up missile launches in response to the drills. Such exercises have long provoked strong reactions from North Korea, which sees them as rehearsals for an invasion.

On Monday, the South’s military kicked off its four-day computer-simulated Taegeuk drills.

“North Korea seems to have sufficiently achieved its political and diplomatic purposes by its massive missile launches earlier this month,” North Korean studies scholar Ahn Chan-il told AFP.

“It seems to be in the process of testing where to deploy strategic military units to mount tactical nuclear weapons for its next nuclear test.”

Seoul and Washington have been warning for months that the North is ready to conduct another nuclear test — which would be the country’s seventh — at any time.

But analysts questioned the utility of trying to predict exactly when it was to come.

“I really don’t get the fascination with trying to predict when #NorthKorea’s next nuclear test will be,” Korea specialist Jenny Town wrote on Twitter.

“How has this been going on for so many months now? The reality is #DPRK does need to do additional testing to achieve the goals that they set. Not just one, but a few,” she wrote, referring to North Korea by its official name.

Hong Kong charges four for reposting election boycott calls

Four people in Hong Kong were charged on Wednesday for reposting social media content by democracy activists calling for a boycott of the city’s “patriots only” election last December.

Authorities last year made it illegal to encourage anyone to boycott elections or to spoil their ballots, with offenders facing up to three years in jail and a maximum fine of HK$200,000 ($25,000).

After Hong Kong saw huge and sometimes violent democracy protests in 2019, authorities cracked down on dissent and arrested opponents while Beijing imposed new rules that ensured only “staunch patriots” could stand for office.

Some overseas Hong Kong campaigners — including former pro-democracy lawmaker Ted Hui — decried the new rules and urged the public to reject the latest elections as a sham.

The four people charged on Wednesday, aged 29 to 58, allegedly reposted or displayed material that “incited others to cast blank votes or not to vote”, according to Hong Kong’s anti-graft agency.

Two of them — 42-year-old physiotherapist Wong Chi-yan and 58-year-old Mabel Yick — were accused of sharing content authored by former legislator Hui.

The other lawbreaking content allegedly originated from democracy campaigner Sunny Cheung and former district councillor Yau Man-chun, both of whom are also overseas.

Arrest warrants have been issued against all three original authors since late last year, the Independent Commission Against Corruption said in a statement.

At least six exiled democracy activists are wanted by the ICAC over the offence of inciting others not to vote.

That law does not make it illegal for individuals to void ballots or refuse to vote.

Hong Kong is not a democracy — the source of years of protests that were eventually crushed by prosecutions and a national security law that has criminalised much dissent.

Just under a quarter of seats in the city’s legislature are directly elected under a new “patriots only” system Beijing installed last year.

All candidates had to be vetted for political loyalty, meaning the city’s traditional pro-democracy opposition was frozen out.

The poll drew record-low turnout and returned a 90-seat legislature stacked with government loyalists and devoid of any opposition.

Nissan hikes forecasts on weak yen despite falling unit sales

Nissan on Wednesday upgraded its full-year profit forecasts, as the depreciating yen helps inflate its overseas profits, despite ongoing challenges including Covid shutdowns and the global chip shortage.

The company now expects an annual net profit of 155 billion yen ($1.06 billion), up 5.0 billion yen from an earlier target for the year to March 2023.

It also hiked annual sales revenues, but said it now expects to sell 3.7 million units in the business year, down from a previous forecast of 4.0 million and lower than its unit sales in the previous fiscal year.

In a statement, the firm cited “a severe business environment in the first half of the fiscal year, with raw material prices rising sharply and sales volume falling below the previous year’s level due to semiconductor supply shortages and the impact of Covid-related lockdowns in Shanghai.”

“Our strong first half performance reflects our steadily improving profit structure and strong business foundations, as well as the exchange-rate impact of the historically weak yen,” said Nissan CEO Makoto Uchida in a statement.

He said the business environment would “remain challenging” in the second half of the year, with ongoing semiconductor shortages and higher raw material prices.

Nissan also reported a one-time loss in the period of approximately 100 billion yen “in connection with the withdrawal from the Russian market”.

The results come with all eyes on negotiations between Nissan and alliance partner Renault on a possible rebalancing of their sometimes fractious relationship.

The French automaker, which on Tuesday confirmed it will create a new electric car unit, Ampere, is believed to be discussing a sizable reduction of its stake in Nissan.

– ‘Open and constructive’ –

Nissan said in a statement last month that “trustful discussions” were underway with Renault as part of an effort to “reinforce the cooperation and the future” of their decades-long alliance.

The partnership is widely credited for Nissan’s transformation from a money-losing carmaker in the late 1990s into one of the world’s biggest industry giants.

Nissan officials reportedly want to rectify what they see as the uneven terms of their alliance, where Renault controls around 43 percent of Nissan but the Japanese automaker retains just a 15 percent share in its partner.

Uchida described “open and constructive” discussions but declined to offer any details.

“Yesterday, the Renault group made an announcement about the new firm… we’re looking into how this firm would benefit Nissan and how we should participate in it,” he said.

“Based on the discussions going forward, we will consider an investment in this new firm.”

A source close to Nissan said discussions on the alliance would take “several more weeks”.

“Given how complex the subject is, they need several more weeks to clarify things, but it’s advancing,” he told AFP.

The radio silence on Nissan’s participation in Ampere or any reduction of Renault’s stake in the Japanese automaker suggests “that negotiations are not proceeding very well, and slowly,” said auto analyst Tatsuo Yoshida of Bloomberg Intelligence.

Experts differ on how any rebalancing would affect the alliance, with Yoshida arguing a reduction of Renault’s stake would give Nissan more freedom.

But Kohei Takahashi, an analyst at UBS Securities, said Renault’s ongoing influence could sway negotiations in its favour.

The auto alliance, which also groups Mitsubishi Motors, has weathered tensions, particularly after the arrest and subsequent flight of former Nissan chief Carlos Ghosn.

Accused of financial misconduct, he argued he was targeted over attempts to further integrate Nissan and Renault. He jumped bail and fled Japan for Lebanon, where he remains an international fugitive.

Striking Kenya Airways pilots return to work

Kenya Airways pilots returned to work on Wednesday, after a court ordered them to end their days-long strike which had led to hundreds of flight cancellations and stranded thousands of passengers.

The strike, which began on Saturday, exacerbated the woes facing the troubled national carrier, which has vowed to “do everything possible to return to normalcy in the shortest time”.

Hours after a Nairobi court ordered the pilots to return to work, the Kenya Airline Pilots Association (KALPA) said its members would “resume duty” by 06:00 am (0300 GMT) on Wednesday — the deadline stipulated by the judge.

“The strike is off, we are back to work,” a KALPA spokesperson told AFP Wednesday.

Despite the announcement, Kenya Airways’ latest online update showed just 19 flights operating on Wednesday, fewer than the 26 scheduled the day before, although it said on Twitter that normal operations should resume by November 12.

Officials at Nairobi’s Jomo Kenyatta International Airport said the airline was still struggling to clear the backlog from earlier flight cancellations.

“We have had several KQ flights on schedule today take off after the pilots resumed work,” an official at the Kenya Airports Authority told AFP, using the shorthand airline code.

“Things are getting back to normal,” he said. 

Passengers at the airport told AFP they were cautiously optimistic after being forced to reschedule their travel plans because of the strike.

“My flight is now confirmed at 5:00 pm, I just hope they don’t cancel again,” said Eliud Okello, who was due to fly to the Kenyan lakeside city of Kisumu.

Another passenger, who only gave her name as Londiwe, told AFP: “I have had the worst experience on KQ during the strike for the past two days, but finally I have been told I will fly this evening.

“So I am just hoping the pilots will not go on strike again.”

KALPA launched the walkout in defiance of a court injunction issued last week against the strike, prompting the government to threaten the pilots with disciplinary action.

In a breakthrough for the beleaguered airline, Justice Anna Mwaure on Tuesday ordered KALPA members to resume their duties “unconditionally” by 6:00 am Wednesday.

Kenya Airways, which is part-owned by the government as well as Air France-KLM, is one of the biggest in Africa, connecting multiple countries to Europe and Asia. 

But it has been running losses for years, despite the government pumping in millions of dollars to keep it afloat.

– ‘No disciplinary action’ –

Mwaure also ordered the airline’s management to allow the pilots “to perform their duties without harassing them or intimidating them and especially by not taking any disciplinary action against any of them”.

Transport Minister Kipchumba Murkomen had urged the pilots and the airline’s management to obey the court order.

“In the past three days, this strike has disrupted travel plans for over 12,000 customers… forced the cancellation of over 300 flights, and affected 3,500 other employees who were not part of it,” he said.

The protesting pilots are pressing for the reinstatement of contributions to a provident fund and payment of all salaries stopped during the Covid-19 pandemic.

In a statement released Tuesday, the airline’s CEO Allan Kilavuka said: “We commit to complying with the court’s directions.”

The airline and the government have accused the union of engaging in “economic sabotage”, with Kenya Airways warning that the strike would lead to losses estimated at $2.5 million per day.

The airline was founded in 1977 following the demise of East African Airways, and flies more than four million passengers to 42 destinations annually.

It has been operating in large part thanks to state bailouts following years of losses.

Asian markets tepid with eyes on China, US midterms

Asian stocks made a positive start on Wednesday following gains on Wall Street, but lost momentum as factory gate prices in China fell for the first time in nearly two years.

Shares in Tokyo, Hong Kong and Shanghai edged up at the open as votes were counted in crucial US midterm elections that will shape the political fortunes of President Joe Biden.

But they closed lower after official data from China showed the world’s second-largest economy languishing under its strict zero-Covid policy.

Markets had climbed in New York and Europe on Tuesday, with Biden’s Democrats facing a struggle to hang on to control of Congress, and polls predicting a Republican victory that could pave the way for a White House comeback bid by Donald Trump.

That predicted Republican wave failed to materialise in elections fought against a backdrop of stubbornly high inflation, however.

By Wednesday afternoon in Asia, all eyes were on a handful of Senate races, including swing state Pennsylvania, where a win for the Democrats boosted the party’s chances of retaining their razor-thin majority in the upper chamber.

Investors were also awaiting key US inflation data due Thursday, causing the dollar to retreat along with the midterms as investors’ risk appetite increases, analysts said.

Tokyo ended down 0.6 percent and Shanghai closed 0.5 percent lower, while Hong Kong stocks lost 1.2 percent.

Other Asian markets were mostly higher, with Taipei jumping 2.2 percent, Seoul gaining 1.1 percent and Singapore up 0.7 percent. Sydney rose 0.6 percent, but Bangkok lost 0.6 percent.

– ‘No good news from China’ –

Speculation over how long Beijing will keep its harsh lockdown-and-testing Covid-19 policies has fuelled volatility in Chinese markets, despite the government vowing it will not change course.

The restrictions have taken a toll on the economy. China’s producer price index (PPI) fell by 1.3 percent on-year in October, pushing it into negative territory for the first time since December 2020.

The consumer price index (CPI) — the main gauge for retail inflation — rose by 2.1 percent on-year in October, moderating slightly from September’s two-year high of 2.8 percent.

“The economy’s slowing is confirmed by the CPI data,” Iris Pang, chief economist for Greater China at ING Wholesale Banking, told AFP. “I don’t see any good news from China.”

Stephen Innes of SPI Asset Management agreed that the Chinese data painted “a rather gloomy picture, with PPI remaining deflationary and CPI much weaker than expected, pointing to waning demand”.

Oil prices were driven lower during the day, but recovered in the afternoon.

“Rolling lockdowns in China, as Covid cases rebound, are catching oil traders leaning the wrong way,” Innes said.

The lacklustre mood was also seen in early European trade, with London losing 0.3 percent in early trade, Frankfurt down 0.2 percent, and Paris flat.

– Key figures around 0700 GMT –

Tokyo – Nikkei 225: DOWN 0.6 percent at 27,716.43 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 16,358.52 (close)

Shanghai – Composite: DOWN 0.5 percent at 3,048.17 (close)

London – FTSE 100: DOWN 0.3 percent at 7,282.89

Pound/dollar: UP at $1.1554 from $1.1468 on Tuesday

Euro/dollar: UP at $1.0073 from $1.0005

Dollar/yen: DOWN at 145.42 yen from 146.26 yen

Euro/pound: DOWN at 87.19 pence from 87.23 pence

West Texas Intermediate: DOWN 0.6 percent at $88.33 per barrel

Brent North Sea crude: DOWN 0.4 percent at $94.93 per barrel

New York – Dow: UP 1.0 percent at 33,160.83 (close)

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