Financial Times Europe - 02.11.2019 - 03.11.2019

(Grace) #1

2 ★ FT Weekend 2 November/3 November 2019


I N T E R N AT I O N A L


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WORLD|


WEEK IN REVIEW|


Trump praises US operation in
Syria to kill Isis leader Baghdadi

Donald Trump hailed a US special forces operation in
north-western Syria that killed Isis leader Abu Bakr
al-Baghdadi.
“The United States brought the world’s number
one terrorist leader to justice,” the US president said.
The militant leader, who for years masterminded
terror across Syria, Iraq and beyond, had been
attempting to rebuild the terror group from Idlib
province. It followed the withdrawal of US forces
from the area, which critics said would allow a resur-
gence of the jihadi group following its expulsion from
most of the territory it held in Syria and Iraq.
Swearing vengeance, Isis named Abu Ibrahim al-
Hashemi al-Quraishi, an unknown, as the new
leader.

Argentina’s Peronists returned to power, defeating
the pro-market Mauricio Macri in the presidential
election. Former cabinet chief Alberto Fernández
received 48 per cent of the vote, giving him an out-
right first-round victory.
But his victory was not as comfortable as pre-
dicted, suggesting voter unease about the return to
power of running mate Cristina Fernández de Kirch-
ner, president in 2007-15.
The Peronist victory underlines the revival of
Latin America’s left. Populist leftwinger Evo Morales
is back at the helm in Bolivia, and protesters in Chile
have been demanding higher wages and pensions,
forcing the centre-right cabinet to quit. “The times
ahead will not be easy,” Mr Fernández said.

Hong Kongtips into recession
as political protests take toll

Lebanon’s prime minister Hariri
resigns after demonstrations

Weeks of nationwide protests in Lebanon forced the
resignation of prime minister Saad al-Hariri, deep-
ening the country’s economic crisis.
His power-sharing government had been trying to
find a deal to address demands of protesters angry
about economic decline and government corruption.
Public anger stemmed from plans announced last
month, since abandoned, to impose a tax on Whats-
App calls.
Lebanon is heavily indebted, and now risks a cur-
rency devaluation. Banks have been closed and
economists fear a risk of capital flight. Protests in
Arab countries this year have also unseated the pres-
idents of Algeria and Sudan.

Growth in gross domestic product (quarter on quarter)

-


-











      


Source: Refinitiv

Hong Kong officially fell into recession following
months of political turbulence. The economy fell by 3.
per cent in the third quarter, a far bigger drop than
predicted. The second-quarter fall as 0.5 per cent.w

Argentina poll returns Peronists
to power with Fernández victory

R O B I N H A R D I N G A N D L I O N E L BA R B E R
TOKYO

The new missile systems China dis-
played in its national day parade last
month will add to “global anxiety”
about its rising military power and Bei-
jing needs to explain itself to the world,
Japan’s defence minister has warned in
an interview with the Financial Times.
Taro Kono, who moved from the for-
eign ministry to defence in September,
said China had not outlined its military
budget, strategic goals or doctrine. Bei-
jing’s new ballistic and hypersonic
cruise missiles were thus a cause of
alarm for its neighbours.

But Mr Kono heavily played down the
chances of Japan playing host to US
intermediate range missiles, which
Washington wants todeploy in Asia, and
said Japan did not intend to forge mili-
tary ties with Taiwan.
His comments highlight Tokyo’s deli-
cate position as it seeks to maintain its
security against China’s growing mili-
tary might, while avoiding becoming a
proxy for a US confrontation with
Beijing.
“[China’s] budget, doctrine, weapon
systems, the whereabouts of their
weapon systems and their organisation
are not transparent,” said Mr Kono.
“We have been urging them to
explain... but we really haven’t seen
an improvement in their transparency.
So, these new weapons systems simply
add to the global anxiety.”
At aparade on October 1 o mark thet

70th anniversary of the founding of the
People’s Republic of China, Beijing dis-
played four new missile systems, includ-
ing hypersonic weapons that are hard to
intercept and could be used onland tar-
gets or warships in Japan.
The hardware was unveiled amid ris-
ingtension in the region, from ballistic
missile tests by North Korea to the US
withdrawal from the Intermediate-
Range Nuclear Forces Treaty with Rus-
sia. The treaty banned land-based mis-
siles with ranges of between 500km and
5,500km and the US is keen to deploy
such missiles in Asia. Some experts fear
that could spark an arms race with
China, which was not party to the INF
treaty.
Mr Kono said there were no discus-
sions with the US about basing conven-
tional intermediate range missiles in
Japan and the deployment of nuclear

weapons in Japan was inconceivable.
“The US doesn’t have non-nuclear
missiles that can be deployed yet.
Maybe they’re in the phase of develop-
ment,” he said. “We have not been dis-
cussing any of it. We know that China
needs to be included in the next round
of a missile treaty and they need to be
included in nuclear disarmament nego-
tiations. I think the whole world needs
to push China into it.”
Mr Kono said his three top priorities
were to improve Japan’s readiness by
rolling out new equipment and cyber
space capabilities; improve conditions
for troops, given the difficulty of recruit-
ing in Japan’s ageing society; and to
strengthen the nation’sdefence indus-
trial base.
Donald Trump, the US president, has
put pressure on Japan to buy weapons to
reduce the trade deficit.

L E O L E W I S A N D R O B I N H A R D I N G
TOKYO
Ahead of last weekend’s Rugby World
Cup semi-finals in Yokohama, the
authorities installed a brand new set of
decibel meters.
The purpose was to measure the vol-
ume of the 70,000-strong crowd’skake-
goe —a lupine, crescendoed howl nor-
mally reserved for Japan’s most prac-
tisedkabuki ctors.a
When thefinal betweenEngland and
South Africa icks offk today, the collec-
tivekakegoecreated by the travelling
supporters and the domestic faithful is
expected to hit the top of the machines’
scales. It will also record — perhaps
more than any other phenomenon —
the unexpectedly permanent stamp
that Japan and this tournament have left
on the game of rugby.
“The sadness about this WorldCup,”
remarkedEddie Jones, England coach,
as he announced his team for Saturday,
“is that it’s going to end.”
Few could have imagined such senti-
ments whenthe competition was
awarded to Japan a decade ago. The
decision to hold thetournament in
Japan, nd Asiaa , for the first time was a
double gamble. The first wager was that
there is mileage in trying to expand the
game beyond the core countries where
rugby is most strongly established.
The second was on the enthusiasm of
the domestic audience. Japanese rugby
was well-established in its own niche of
elite schools, private universities and a
semi-professional corporate league. But
wider awareness was minimal and the
organisers knew they were taking a
huge bet on the international prowess of
the Brave Blossoms national team. Both
bets paid off handsomely.
“Japan will win all their group
games,” Katsuyuki Kiyomiya, vice-
president of Japan’s Rugby Football
Union, predicted boldly ahead of the
competition’s opening phase. “If
they don’t win, it’ll be a problem.”
Bookmakers would have given
long odds on this before the tour-
nament kicked off on September


  1. But as Japan beat Russia, shocked
    Ireland, outplayed Samoa andheld on
    for a famous win over Scotland that took
    them into the quarter-finals for the first
    time, the nation began to obsess over
    rugby.
    “It’s been really popular,” said Tet-
    suya Uchino, who runs The Grub portss
    bar in Tokyo. “As the tournament went
    on the fever slowly built up and now
    even matches between strong foreign
    sides are popular. For Japan games,
    we had to turn people away because
    they couldn’t fit inside.”
    It quickly became impossible to buy a
    replica Japan rugby shirt anywhere in
    the country, a drought created by both
    Japanese belatedly realising they were
    witnessing a piece of sporting history,
    and visiting fans who found themselves
    caught up in the unscripted fever.
    Foreign fans also got the benefit of
    over-the-top Japaneseomotenashi os-h
    pitality, which went as far as primary
    school children learning the words of


“Hen Wlad Fy Nhadau”, or “Land of My
Fathers”, to fully perform their duties as
mascots to the Welsh national team.
The Uruguay team fulfilled one rugby
tradition by getting into a nightclub
brawl, but it was a rare discordant
moment. Canada won the affection of
their hosts in the city of Kamaishi when
players helped clean up the streets after
a devastating typhoon struck at the cli-
max of the group stages.
The England team was fined for mak-
ing a V-shaped formation to counter
New Zealand’s ceremonialhaka ahead
of their semi-final. But, as many pointed
out, the £2,000fine would not even buy
a pair of tickets to the final as the online
prices surged ahead oftoday’s contest.
Social media groups set up in the
opening days of the tournament to col-
lect and harrumph at videos of fans
behaving badly rapidly ran out of fuel
for outrage. Initial complaints about the
cancellation of two games vanished
once the visiting teams experienced the

ferocious scale of Typhoon Hagibis, and
when it became apparent that staff had
slept overnight in the Yokohama sta-
dium to ensure it was ready for Scotland
to take on Japan.
And over the six weeks of the tourna-
ment, fans in all the tadiums kept hear-s
ing thekakegoe nd, increasingly, partic-a
ipating in it. By the semi-finals, a fairly
obscure sound from the vaults of Japa-
nese theatrical tradition had become
totemic, the defining soundtrack of a
WorldCup that has subtly but decisively
woven Japaneseness into the greatest
showcase of a game that might, to some,
seem resistant to such change.
For Jones, all this must be ignored as
he prepares for a match that could ele-
vate him to legend status in England.
When the Japanese-Australian coach
was asked this week whether he felt the
weight of history ahead oftoday’s on-c
test decider, he was characteristically
succinct. “I don’t have to worry about
history,” he said. “I’m not a historian.”

Asia


apan warns on rising Chinese mightJ


Defence minister says new


weapons at Beijing parade


cause alarm for the region


Sport. ugbyR


Home fans drive World Cup to fever pitch


Enthusiasm and commitment


of host nation leave their mark


as tournament draws to a close


Loud and proud:
Japan’s fans turn
up the volume.
Below, coach
Eddie Jones
Kazuhiro Nogi/AFP/
Getty Images

J O S H UA C H A F F I N— NEW YORK

New Yorkers awokeyesterday to the
sensation that their metropolis had
become just a bit less brash.

Donald Trump, the quintessential larg-
er-than-life New Yorker, had confirmed
that he had changed his official resi-
dence to Florida, a state with no income
tax that may also be pivotal in the presi-
dent’s re-election hopes next year.
The move, the US president suggested
in weets that read like a break-up note,t
was motivated by some mix of taxes and
personal and political animus.
“I cherish New York and always will,”
he tweeted. But, he added: “Despite the
fact that I pay millions of dollars in city,
state and local taxes each year, I have
been treated very badly by the political
leaders of both the city and the state.”
Another tweet eclared: “I hated hav-d
ing to make this decision. But in the end
it will be best for all concerned.”
For some, news of Mr Trump’s depar-
ture was a cause for celebration. “Good
riddance,” tweeted Andrew Cuomo,
New York’s Democratic governor.
“I hope he takes his kids with him,”
one Manhattanite quipped.

But Mr Trump’s change of domicile
also touches a sensitive nerve for the
city; civic leaders worry that high taxes
are prompting an exodus of the wealthy
who account for most of its tax receipts.
So far, the evidence is mostly anecdo-
tal. Activist investor Carl Icahn last
month became the latest big earner to
announce he was relocating to Florida,
which also has warmer weather.
EJ McMahon, research director at the
Empire Center for Public Policy, doub-
ted that Mr Trump paid much in New
York tax,anyway. The complex usi-b
ness structures and the high amounts of
leverage used mean property develop-
ers, even with huge net worths, are
adept at minimisingtax bills.
“It means far less in his case than
when you see people like Carl Icahn
leave,” he said.
Still, the symbolism of Mr Trump lea-
ving the city that nurtured him and his
brand is undeniably potent. “As usual,
everything with him is supercharged
and political,” Mr McMahon noted.
Mr Trump was raised in Queens, the
son of a developer who built affordable
housing. He sought to make his own
mark in Manhattan, and soon became

one of its most recognisable citizens
while honing his unique persona.
Mr Trump was a fixture at Yankees
games alongside the team’s voluble
owner, George Steinbrenner, among the
models and glitterati at the Studio 54
nightclub and a mainstay of the tabloid
gossip columns. New York was the site
of Mr Trump’s earlyprofessional suc-
cesses, including the iconic Trump
Tower in Midtown Manhattan in 1983,
and the revival of the Wollman skating
rink in Central Park.
But Mr Trump’s political career has
shredded the relationship. New Yorkers
overwhelmingly voted against him in

2016 and their state and city attorneys-
general have been at the forefront of
pursuing his tax information.
The Trump presidency has been an
unusual case in which a hometown has
not benefited from its local son reaching
the White House. If anything, it may
have been penalised.
Mr Trump’s signature tax reform,
which capped local property tax deduc-
tions, has taken adisproportionate toll
on New York and other affluent, pre-
dominantly Democratic states.
Meanwhile, the president has also
scornedpleas from Mr Cuomo and Sen-
ator Charles Schumer, two arch foes, to
support a new train tunnel to link Man-
hattan to New Jersey after the existing
one was heavily damaged by flooding.
Mitchell Moss, a professor of urban
policy at New York University, argued
that the love affair between Mr Trump
and New York had long since ended.
“Trump spends his summer vaca-
tions in New Jersey and goes to Palm
Beach as often as possible in the winter,”
Mr Moss noted.
“This merely confirms that Trump
long ago abandoned NYC.”
See Opinion

US president


Native New Yorker Trump quits Big Apple for home in Florida


Trump Tower: the president has left
a big imprint on the city of his birth

‘We know


that China


needs to be


included in


the next


round of a


missile


treaty’


MAKE A SMART INVESTMENT


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