LCCC ENGLISH DAILY NEWS BULLETIN
March 04/2018
Compiled & Prepared by: Elias Bejjani

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Putin to America: ‘We have ascendance over you’
Mashari Althaydi/Al Arabiya/March 03/18
“An audacious display of power” is the least that can be said about the show President Vladimir Putin put on when he stood on a stage in front of a giant screen to unveil the “gems” of modern Russian weaponry. In his annual address to the Federal Assembly, Putin announced that Russia had started testing the Sarmat missile system which can carry intercontinental ballistic missiles to any part of the world. He also unveiled a supersonic, unmanned nuke-armed submarine. The missiles and the submarine have not been named, and so Putin asked the Russian people to propose names for them. His aim is to obviously involve the Russian people in this warmongering exercise. Who is Putin aiming these threats at? Russian Foreign Minister Sergei Lavrov gave the answer last Wednesday, while addressing the UN Conference on Disarmament in Geneva. “The presence of ready-for-use US tactical nuclear weapons in Europe is not just a rudiment of the Cold War, but clearly an aggressive stance,” Lavrov said. Washington’s response to Lavrov came when Pentagon’s chief spokesperson Dana White said: “We're not surprised by the statement. And the American people should rest assured that we are fully prepared,” adding that these Russian “weapons that are discussed have been in development a very long time. So no, our Nuclear Posture Review takes all of this into account.”
Is World War III imminent?
We are already witnessing US - Russia confrontation playing out across various theatres, such as in Syria.
The Cold War did not lead to World War III. It lasted about half a century, since the end of WWII in 1945. It wasn’t an open US-Russia confrontation involving their stockpile of dangerous weapons.
Is a major war imminent? We do not know but at least countries of the Middle East, particularly Syria, are embroiled in a war involving various political players and whose outcome may potentially have catastrophic consequences.
There’s probably no one in Washington or Moscow who appears ‘interested’ in launching a massive war between the two big powers. It is noteworthy how these statements sound as if we have returned to the 1960’s!
There isn’t anyone planning such a war because Russia and the US understand the disastrous consequences of direct military confrontation, which could potentially entail the annihilation of the entire human race or something close to that.
The situation may escalate due to the prevailing tensions. Syria and eastern Europe provide the arenas where the final human showdown might play out.
It’s become normal to hear the world’s two top leaders talk about what we once were scared to discuss.

Policymakers beware – It’s all about the narrative in the message
Dr. Mohamed A. Ramady/Al Arabiya/March 03/18
Central bank governors and OPEC chiefs have the same predicament – how to put out their message or narrative out without giving too much way and yet try to steer markets in the direction they want without spooking traders. If the new US. Federal Reserve Chairman Jerome Powell wanted the markets to take his maiden Semi-Annual testimony before the House Financial Services Committee yesterday as a first foray towards four rate hikes this year, he got what he was looking for, and then some. More specifically, Chairman Powell's "personal outlook" reply to the question about the March quarterly Summary of Economic Projections – a listing of a virtual cocktail recipe for an overheating economy -- sounded so jarringly bullish, if not outright hawkish that it leapt out from the otherwise more balanced remarks in the rest of the Q&A and the written testimony.‎
At minimum, it felt like a first small step towards a four hike path, and whether intended or not, Chairman Powell in that one response put a four hike market pricing just one or two stronger than expected data points away. The markets reacted by selling stocks and it took Powell the next day to resort to yet a more nuanced clarification to stave another sell off. Allaying fears that could have led to a new global banking contagion, according to Powell, the US banking system was "healthy", and that banks “ are better able to manage risk and failure. It's a good time in our system," he told the Senate Banking Committee. He also calmed fears that the pace of interest rate rises would accelerate. “There is no evidence the economy is overheating," Powell said. Although the current 4.1% unemployment rate was "at or near or even below" estimates of the full employment rate, "we don't see any evidence of a decisive move up in wages... Nothing in that suggests to me that wage inflation is at a point of acceleration." And so there it was – these new narratives saw Wall Street's main indexes overturn earlier losses to trade higher and eased some of the fears of faster interest rate hikes stoked by Powell's comments earlier this week about a strengthening US economy in his first appearance in Congress on Tuesday.
Market analysts will be somewhat cautious that the Fed will be moving too soon to a four rate hike scenario, preferring to see how inflation, and perhaps an early indication of investment spending look to be playing out this spring before signalling a fourth rate hike. That would put any upgrade in the pace of hikes this year more likely still into the June meeting. While the markets after an initial shock sell-off seem to have taken it in stride, we suspect a rates messaging that feels pre-emptive could nevertheless strain the Fed's ability to control its gradualist messaging if his remark is left alone The market, for instance, could go on alert for an even more hawkish Fed, pricing beyond four on every data point that comes in a bit stronger than expected in the months ahead. That could especially prove to be the case if the inflation prints show, as expected, an uptick this spring when last year's "transitory" downward pressures drop out of the year-on-year data. The main question for those waiting to see when to borrow is that despite all the upbeat data that we see coming out of the US, the main concern is going to be the pace of these rate hikes and how quickly is it going to happen.
A delicate balancing act
The US Fed will want to be a bit more cautious in the sequencing of its rates messaging, if that is the right way to describe it, as it is far easier transmission into the markets to modestly upgrade the economic and rates outlook as the data come in than it is go too soon to a more hawkish stance and then backpedal if the data should even modestly disappoint. It will, in any case, be a delicate messaging balancing act for the new Chairman in the next few months. US Fed officials are painfully aware that the balance they are seeking in the policy path between an overheating economy and nudging inflation up to mandate-consistent levels crucially first requires an equal balance in their policy signals. Ensuring a smooth transmission of the intended monetary policy into the real economy while at the same time containing speculative or excess reactions in the financial economy that could slow the economy's solid momentum too soon by too much could prove to be no mean feat. The same applies to those trying to ensure that oil prices are nudged to what is an acceptable level for the current OPEC and non OPEC producers, without "over heating" prices if stocks continue to rebalance much faster than anticipated, and once again inducing non participating oil producers to come in and redress balances and drive prices unintentionally down, thus going back to square one.
What the US Chairman says or does not say affects us all and both US and European bond yields - investments in fixed income as opposed to equities - have soared in recent months amid speculation that the Fed’s monetary policy will be tightened at a faster pace. But in the equity markets that possibility is increasingly testing nerves, as traders try to divine how many increases are coming. In the Gulf, these 3 or 4 expected rate increases could only lead to further interest rate hikes and domestic inflationary impulses affecting cost and productivity. The main question for those waiting to see when to borrow is that despite all the upbeat data that we see coming out of the US, the main concern is going to be the pace of these rate hikes and how quickly is it going to happen. At least though you have been warned as the narrative is out there for all to see but leaving each with his or her own take -away message of that given narrative.

What justifies Russian veto against Iran’s supply of weapons
Sawsan Al Shaer/Al Arabiya/March 03/18
The Security Council voted for a resolution that prevents Iran from providing the Houthis with weapons, but Russia vetoed this resolution. This implies that Russia opposes the resolution that prevents Iran from supplying Houthis with ballistic missiles that bombard our cities.
Leveraging economy for security
The question is how Russia justifies to Gulf countries the veto it exercised against the resolution that prevents Iran from supplying Houthis with weapons. I hope that GCC countries will deal seriously with this Russian decision. It is time to link our economic strength with our security interests, either by suspending our business deals, or by canceling them. What is important is that the international community should know that we will not accept what undermines our security. We cooperated with Russia to have a diversified security and prevent abuse of monopoly in our alliances. These were good decisions. Today, we must link these alliances with trade agreements as well. Interests should dictate our alliances, not friendships or commitments except for what aligns with our security interests. The world must take steps against countries like Iran for providing militias with weapons. Russia has such a strong bias towards Iran that it threatens the security of all the Gulf countries, despite apparent closeness between Gulf and Russia and the series of meetings held between the two sides. However, everyone knows that Iran is fighting us through its proxies, by continuously supplying weapons (especially those made in Russia or Iran) to its agents in Yemen. This means that the war will have no end.
Wantonness of militias
Iran does not raise ‘regular armies’, but musters irregular ‘militias’ that fight states, oppose decisions in their countries and forces their peoples to obey the militias — be it in Lebanon, Iraq and Yemen. Supplying these militias with weapons makes it impossible for them to merge with the state, which in turn makes it impossible for these countries to have stability. The threat to its neighbors is also heightened because these militias cannot be brought under the ambit of international conventions and treaties. Therefore, the world must take steps against countries providing militias with weapons.
Yemen is threatened by a militia that contravenes any form of legitimacy. Although Houthis are not a regular army, the state in Yemen has been overtaken by Houthi militia. Yemen has internal conflicts which threaten the entire region. Houthis launch missiles supplied by Iran in the direction of Saudi Arabia. Thus how can Russia justify this veto, which totally violates our security? Is the veto Russia used to thwart condemnation of the Syrian regime, when it bombed al-Ghouta, not enough? Russia now stands completely against our interests and our security. We should ask Russia to clarify its position towards us. It sells weapons to us even as it sells weapons through Iran to militias that threaten us. Then it torpedoes a move to prevent it from selling the weapons that threaten us, as if it seeks to benefit at the expense of our security! This is the rationale of a war trader and not of a state that builds international relations on a sound and sustainable premise.

The UAE ranks first in several international indices and among hearts
Mohammed Al-Hammadi/Al Arabiya/March 03/18
The ever-growing record of the UAE’s accomplishments and its distinction of standing first in many international indices is testimony to the fact that it has successfully achieved the goals it set up more than a decade ago. The Government of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai had set up a clear goal for itself back in 2007, in that the UAE should become ‘number one’ in every sphere and walk of life.
Taking on the ‘impossible’
The leadership, government and people of the UAE have realized that reaching the first place is not an easy task. Quite the opposite, it is a formidable goal because we live in a Middle East where all security, political and economic challenges converge and attaining greatness is a daunting prospect. It is difficult to aspire to be the first amid the surrounding violence, extremism and terrorism, as well as the pervading greed, hatred and envy. However, we live in the UAE and under a leadership that does not know the impossible. We are solving a difficult equation, in a difficult place and time just because we do not know the “impossible”. In the global competitive report for the year of 2017 - 2018, the UAE has succeeded in securing the first place in 50 international indices. Overall, the service sector that promote the interest of the community and the people have performed exceptionally, including the quality of government decisions that affect everyone and manifest in the lives of all individuals, as well as the government's capacity to adjust to variables, the efficiency of government spending, the absence of tax and its impact on potential investments, public-private partnerships, the growth and implementation of technology, the quality of roads and infrastructure for tourism, corporate digitization, gender equity, tolerance with foreigners, low rate of violent crime, and an electronic hope
Aim of achieving happiness
The UAE's first place does not mean that we should flaunt and brandish these accomplishments in the face of other people and countries in the world. It simply means bringing happiness to people because people are able to avail high quality services. It means that the government is efficiently working, that the economy is growing and that life is moving for the good of everyone. So when we see the happiness of a carpet merchant upon meeting the Crown Prince of Abu Dhabi, His Highness Sheikh Mohammed bin Zayed, along with everyone in the market who were thrilled by this spontaneous meeting, it means that we are held dear in the hearts of everyone, in the heart of the simple man. This means that people are enjoying a better quality of life and harbour the prospect of a promising future. The recent government summit is testimony to the fact that the government of Sheikh Mohammed is always working to serve people, is preoccupied with the present and planning for the future. Hence, it has promised to itself that the UAE should always stand first.