https://english.almayadeen.net/news/economics/us-treasury:-inflation-causing-great-economic-insecurity-in
US Treasury: Inflation causing great economic insecurity in US
Janet Yellen, the Secretary of the US Treasury, remarked that inflation at home is causing a great sense of economic insecurity and that she hopes it does not become endemic - despite that experts have been warning that inflation may become rooted in the US economy.
"I think inflation has been running at unacceptably high rates, it is a huge issue for every American household, it's leading to a great sense of economic insecurity for Americans, and we don't want to see it become endemic," Yellen said in an event hosted by The Atlantic.
Yellen said that she predicts inflation will come down next year, in addition to the country being vulnerable to supply chain shock which has come as a result of the war in Ukraine.
In addition, Yellen said the Federal Reserve may not meet its 2% target for inflation next year, despite the interest rate hikes that the Fed has been implementing.
"It may not happen by 2023 but I have full confidence in the Fed’s ability to bring it down," she said.
The Fed, to preserve public opinion, promised to ameliorate inflation - which is nearing 8% - back to its 2% goal.
On Wednesday, the Federal Reserve raised the federal funds rate by 75 base points to between 3% and 3.25%.
Nonetheless, the Fed’s measures have had little effect on inflation, as per a report by the Bureau of Labor Statistics' recent monthly Consumer Price Index (CPI), which remains at a 40-year high point, and a more substantial rate hike expectation by the central bank has kept Wall Street stocks down for weeks.
Despite the fact that higher interest rates are supposed to limit intra-bank loans and thus create new money, the Economic Policy Institute found in an April study that corporate profits accounted in the last two years for 54% of inflation in the US. This means that the problem is price speculation, not overeager lenders.
It is worth noting that the economic situation which is affecting the financial standpoints of American families and businesses is burdening US President Joe Biden's popularity, which will affect his chances of winning the midterm congressional elections which will take place in early November.
https://english.almayadeen.net/news/economics/bank-of-england:-uk-might-be-in-recession
Bank of England: UK might be in recession
The so-called emergency tax-cutting mini-budget is expected to be unveiled on Friday by the UK Chancellor of the Exchequer, Kwasi Kwarteng, outlining the main economic strategies that new Prime Minister Liz Truss's government is banking on to help businesses and individuals cope with the acute cost of living.
Andrew Bailey, the governor of the Bank of England (BoE), warned Chancellor Kwarteng ahead of Friday’s fiscal event, saying the UK economy may already be in recession and noting that the interest rates may hike even further after the tax-cutting mini-budget is revealed, according to UK media outlets.
While interest rates were raised by 0.5 percentage points on September 22, Kwarteng is expected to unveil the government's plan on measures that should be taken to help businesses and households deal with the cost of living crisis.
The BoE also predicted the GDP to contract by 0.1% in the third quarter amid a plunge in consumer spending and slower activity in the construction and manufacturing sectors.
Furthermore, the BoE’s monetary policy committee (MPC) emphasized during its meeting that Truss’s economic strategies were full of additional inflationary pressures.
The MPC would be evaluating the impact of the government’s plan, presupposing the introduction of energy price caps and tax cuts, ahead of the committee’s coming borrowing decision in November, according to Bailey.
“All else equal … this will add to inflationary pressures in the medium term,” Bailey warned Kwarteng about the household energy cap.
“Should the outlook suggest more persistent inflationary pressures, including from stronger demand, the committee will respond forcefully, as necessary,” he wrote to Kwarteng in the scheduled letter.
Along with the ongoing volatility in wholesale gas prices, there had been indications since August of “continuing strength in domestically generated inflation,” the BoE said in its release on Thursday.
The consumer prices index would peak at just below 11% this autumn rather than exceed 13%, as per the BoE; however, it added in its release:
“The labour market is tight and domestic cost and price pressures remain elevated. While the [energy bill subsidy] reduces inflation in the near term, it also means that household spending is likely to be less weak than projected in the August Report over the first two years of the forecast period.”
This comes as Kwarteng is expected to reveal the government’s major package of support planned to break the economy’s “cycle of stagnation” through infrastructure reforms and tax cuts.
Kwarteng will reveal over 30 measures as part of the Treasury’s “Growth Plan” in a speech at the House of Commons, including relief for households to tackle high energy bills.
He will also announce an estimated ÂŁ30 billion ($33.5 billion) worth of tax cuts, such as reversing the national insurance increase, scrapping the planned rise in corporation tax from 19% to 25%, and removing environmental charges added to energy bills.
Other announcements will include new investment zones in England that will offer “targeted” tax cuts for local businesses, allowing firms to create new jobs and “increase productivity”. Some 100 new infrastructure projects are also to be accelerated across energy, transport, and the digital sphere to achieve a targeted economic growth rate of 2.5 percent a year.
“Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise. This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s. We are determined to break that cycle. We need a new approach for a new era focused on growth,” the chancellor is expected to announce, as per UK media reports.
https://english.almayadeen.net/news/economics/pound-hits-37-year-low-as-recession-fears-grow
British pound hits 37-year low as recession fears grow
The sterling pound plunged on Friday to a new 37-year low against the dollar as traders grow increasingly concerned regarding the economic outlook with central banks upping interest rates to fight the ongoing inflation.
The British currency fell as low as $1.1151, the lowest since 1985, after the Bank of England (BoE) hiked Thursday borrowing costs by 50 basis points.
Central banks around the globe are in the process of hiking borrowing costs, but the Fed has adopted a specifically hawkish position, with officials noting they will not back out until inflation is tamed, even if it's at the expense of the economy.
Traders are now looking to London as UK Chancellor of the Exchequer Kwasi Kwarteng is expected to declare on Friday the "emergency tax-cutting mini-budget," to help businesses and individuals cope with the acute cost of living
This comes as the BoE warns that Britain is slipping into recession, with the cost of food and motor fuel rising at unprecedented levels.
This comes after UK Prime Minister Liz Truss arrived a couple of days ago in the United States to find with US President Joe Biden common ground in pursuing a tough stance against Russia, as well as a hawkish stance toward China.
Truss' visit aimed to reiterate UK's long-term commitment to the war in Ukraine and to vow to send at least ÂŁ2.3 billion ($2.6 billion) in military supplies in 2023.
Following her trip, Truss was to finalize her mini-budget, as global inflation is soaring, with the UK's accelerating at the fastest pace in 40 years in July, reaching double-digits and adding more pressure on the Bank of England.
Last month, the consumer price index boosted up 10.1% on an annual basis, surpassing the FXStreet-cited market consensus of 9.8% and speeding up from 9.4% in June.
The last time inflation was this extreme was in 1982 - 40 years ago.
Furthermore, research by the International Monetary Fund showed that the increasing energy crisis is wreaking havoc on British family budgets more than any other country in Western Europe.
https://english.almayadeen.net/news/politics/brad-pitt-debuts-as-sculptor-at-first-art-gallery-in-finland
US actor Brad Pitt publicly debuted his first works of art in a lakeside museum in Finland, The Guardian reported.
His sculptures, which he called a “radical inventory of self”, were unveiled at the Sara Hildén Art Museum in Tampere, a first for the “largely self-taught”, the gallery said.
Pitt, 58, revealed the sculptures himself on Saturday as part of a larger exhibition by the British artist Thomas Houseago, alongside a ceramic series by the Australian musician Nick Cave.
“For Nick and I this is a new world and our first entry. It just feels right,” the actor told the Finnish broadcaster Yle at the opening ceremony.
Among the nine works displayed included Aiming At You I Saw Me But It Was Too Late This Time, a moulded plaster panel “depicting a gunfight” between eight figures, including hands, feet, and faces attempting to break through the structure at various angles.
There are also a series of house-shaped silicone sculptures that have been shot with a different gauge of ammunition, as well as the actor’s first sculpture, House A Go Go, a miniature house made out of tree bark and held together with tape.
“To me, it’s about self-reflection. It’s about where I have gotten it wrong in my relationships, where have I misstepped, where am I complicit,” Pitt said at the opening. “For me, it was born out of ownership of what I call a radical inventory of self, getting really brutally honest with me and taking account of those I may have hurt, moments I have just gotten wrong.”
The actor added he began practicing pottery after his divorce from Angelina Jolie. He even invited Leonardo DiCaprio over to his studio during the making of Once Upon a Time in Hollywood to “bond over their shared love of pottery."
Last month, Pitt told GQ that his interest in ceramics was not art-based, but a “solo, very quiet, very tactile kind of sport." But his involvement in the Finnish exhibition had not been previously announced.
“In that sense, this is exciting and wonderful,” the chief curator, Sarianne Soikkonen, said. She added that Houseago’s decision to include his friends in his exhibition was shaped by the pandemic and events in Houseago’s personal life.
Rich and famous actors such as Pierce Brosnan, Sylvester Stallone, and Jim Carrey have often sought creative outlets to supplement their day jobs. For instance, in 2021, Johnny Depp earned more than $3.6m within hours after the release of 780 prints through the Castle Fine Art gallery in London, which immediately sold out.
The Guardian critic Jonathan Jones nonetheless said Pitt turns out to be an “extremely impressive artist” who has sidestepped the embarrassment of celebrity art “to reveal what by any standard are powerful, worthwhile works."
The show also features Cave’s first exhibition of ceramics. The musician, who studied painting at the Caulfield Institute of Technology in Melbourne before pursuing music, created 17 handpainted ceramic figurines depicting “the life of the Devil in 17 stations," a nod to his interest in Victorian Staffordshire Flatback figurines, of which he is a collector.
Both Pitt and Cave created their works in dialogue with Houseago, a three-decade-long art veteran. For his exhibition debut in the Nordic countries, the artist is showing a number of paintings – although he’s better known as a sculptor – from his large-scale Visions series that was inspired partly by Edvard Munch.
Speaking of his decision to stage a collaborative show between himself, Cave, and Pitt, Houseago said in a statement, “I am not an I. I’m a WE!”
21 Sep 23:56
>> Symbolism.
created 17 handpainted ceramic figurines depicting “the life of the Devil in 17 stations,
“I am not an I. I’m a WE!” = we are legions.
https://english.almayadeen.net/news/art-culture/egyptian-renowned-actor-hesham-selim-dies-at-64
Egyptian renowned actor Hesham Selim dies at 64
After battling cancer for a few months, legendary Egyptian actor Hesham Selim died.
On Thursday morning, Selim's close friend and Egyptian actors' guild president Ashraf Zaki announced the tragic news on Instagram. Many others from Egypt's A-list followed Zaki's tribute post.
The actor's funeral procession will take place later on Thursday in the Greater Cairo district of Sheikh Zayed, the affluent suburb where Selim lived, as per Zaki.
Selim's cancer diagnosis was first reported in May, and he confirmed it in a televised phone-in, during which he said he was staying in Ain Al Sokhna, a Red Sea beach town outside Cairo.
Born in 1958, the actor made his acting debut in 1972 in the hit film Emberatoriet meem (or "M" Empire in English) alongside legendary actress Faten Hamamah and delivered a memorable performance for which he is still acclaimed.
Selim's five-decade career has seen him collaborate with some of Egypt's biggest names on numerous successful films and television series.
His most recent work, Hagma Mortada (Counterattack), a spy thriller series released during Ramadan last year, was also well-received and became one of the season's most-watched shows.
The late actor was the son of football legend-turned-actor Saleh Selim, who died in 2002.
Selim leaves behind three children: Nour, Zein, and Esmat.
https://english.almayadeen.net/news/politics/nasrallah-has-put-a-gun-to-israels-head:-israeli-media
Nasrallah 'has put a gun to [Israel’s] head': Israeli media
Israeli media reported that "Israel has stooped to the lowest level as it negotiates with Lebanon on the maritime borders under threat," adding that the Secretary-General of Hezbollah Sayyed Hassan Nasrallah "has put a gun to [Israel’s] head”.
In the same context, the former ambassador of "Israel" to the United Nations Danny Danon said as quoted by Israeli Channel 13 that “Israel is on the verge of signing a heinous agreement without any debate in the Knesset or the government.”
Danon added that “Nasrallah proved that he can force Israel to back down," noting that "a new government must manage this agreement."
Earlier, Hezbollah Secretary-General Sayyed Hassan Nasrallah warned that "If Lebanon does not obtain the rights demanded by the Lebanese state, we are heading toward an escalation whether or not the nuclear agreement is signed."
Sayyed Nasrallah stressed that "the focus in Lebanon must be on Karish and the Lebanese [maritime] border, as well as the US mediator that is still wasting time amid a time constraint."
On August 9, the Lebanese leader warned that any attempt to plunder any of Lebanon's wealth will be thwarted, indicating that the party is waiting for the Israeli enemy's response to Lebanon's demands regarding border demarcation.
Danon’s remarks come as Israeli media has lately reported that an agreement with Lebanon is very close after “Israel” accepted that the Qana field is entirely controlled by Lebanon, in exchange for the entire Karish field.
Similarly, Lebanese President Michel Aoun confirmed that negotiations related to the demarcation of the maritime border with "Israel" are in their final stages.
Israeli media has lately said that “Israel listens to Nasrallah's threats and put off extracting gas under technical pretexts."
"Lapid says that he wants a signed agreement, but currently it seems that Israel is listening to Nasrallah's threats and is not extracting gas despite the announcement," correspondent Udi Segal stated.
In turn, Zvi Yehezkeli, Arab affairs analyst at Israeli Channel 13 said, "This is how I read this announcement by Prime Minister Lapid… In my opinion, not extracting [the gas] is not due to technical reasons, and Nasrallah's threat affects 'Israel', as it postpones the extraction under technical pretexts."
He added, "Yes, Israel wanted extraction and an agreement, but this did not happen, and 'Israel' is using its contacts now to speed up the agreement, but Nasrallah's threat is deterring Israel."
Former Israeli occupation Prime Minister Benjamin Netanyahu slammed on Tuesday his political rival, Israeli PM Yair Lapid, saying that the latter retreated following Hezbollah Secretary-General Sayyed Hassan Nasrallah's threats.
https://english.almayadeen.net/news/politics/nato-countries-condemn-the-referenda-in-dpr-lpr-zaporozhya-k
NATO countries condemn the referenda in DPR, LPR, Zaporozhya, Kherson
NATO countries came together to condemn upcoming referenda in the Donetsk and Lugansk People's republics, as well as the Zaporozhya and Kherson regions, according to a statement revealed on Thursday.
"We condemn in the strongest possible terms the plan to hold so-called 'referenda' on joining the Russian Federation in the Ukrainian regions partly controlled by the Russian military. Sham referenda in the Donetsk, Luhansk, Zaporizhzhia, and Kherson regions of Ukraine have no legitimacy and will be a blatant violation of the UN Charter," the statement read.
The statement wrote that NATO allies won't recognize the republics due to the "illegal and illegitimate annexation."
On Tuesday, the DPR, LPR, Zaporozhye, and Kherson, which are Russian-held regions, said they would hold referenda on accession into Russia between September 23-27.
On Wednesday, EU foreign policy chief Josep Borrell threatened Russia with new sanctions in the event of referenda.
"Russia, its political leadership, and all those involved in these 'referenda' and other violations of international law in Ukraine will be held accountable, and additional restrictive measures against Russia would be considered," the statement read.
Within this context, NATO Secretary-General Jens Stoltenberg considered that the next referenda on joining Russia will be viewed as "illegitimate" and the international community should denounce them.
"Sham referendums have no legitimacy and do not change the nature of Russia’s war of aggression against Ukraine. This is a further escalation in Putin’s war. The international community must condemn this blatant violation of international law & step up support for Ukraine," Stoltenberg tweeted.
After the Donetsk and Lugansk People's Republics demanded help from Russia amid intensive offensives by Ukrainian troops, the Kherson Region and most of Zaporozhye region of Ukraine became controlled by Russia's military.
The head of the administration of the Zaporozhye Region, Yevgeny Balitsky, signed a decree in July, announcing the start of preparations for a referendum on joining Russia and the creation of an election commission to conduct elections.
A referendum was also declared by the Kherson Region government. The seven members of the body will each serve a three-year term.
https://english.almayadeen.net/news/politics/israeli-arms-manufacturer-supplies-kiev-with-air-defense-sys
Israeli arms manufacturer supplies Kiev with air defense systems
An Israeli arms manufacturing company has decided, according to a Ukrainian media report released on Friday, to supply Kiev with air defense systems to counter Iranian-manufactured drones, which claimed by the US that Russia has obtained.
The sources explained, quoting the account of the Ukrainian Ministry of Defense on Twitter, that "the deal was concluded through a Polish mediator to circumvent Tel Aviv's decision not to send specific weapons to Ukraine."
A few days ago, Israeli media had reported that Israeli security industry companies had supplied the Ukrainian army with anti-drone systems, capable of intercepting and jamming the action of combat drones.
Officials in the Israeli security industry describe the anti-drones systems as "advanced defense technologies." Therefore, it is not allowed to sell to Ukraine, but the officials themselves said that "the Israeli government is not concerned with prohibiting the transaction, and prefers to ignore it."
It is worth noting that on July 29, the White House declared that the US has no evidence of an Iran-Russia sale of UAV drones. It further noted that no signs of purchase have been observed even weeks after the US claimed that Russia is buying drones from the US.
https://english.almayadeen.net/news/politics/eu-is-running-low-on-potential-russians-to-sanction—report
EU is running low on potential Russians to sanction - reports
The EUobserver online newspaper reported on Friday, citing sources, that the EU is running out of options in finding more Russians to implement sanctions on since all the big shots or the highly important figures have already been targeted.
According to one of the sources' statements to the newspaper, they said: "There are no big fish left, we've already got the full collection of oligarchs and everybody in the political and defense establishments."
Just last week, the US Treasury Department announced that Washington imposed new sanctions on individuals and groups that have allegedly aided “Russia in its war in Ukraine", which targeted 22 individuals and two entities “who advanced Moscow's objectives in Ukraine both before and after the war in Ukraine".
It is also unlikely for the potential of imposing sanctions against media workers by European diplomats to take place because per the source, the EU "does not like to blacklist media people".
However, another source said that Russia lacks "unicorns" that the EU could potentially sanction, referring to the "unicorn" which is a start-up company that reached a value of $1 billion without being actually listed on the stock market.
So far, seven bundles of sanctions have been introduced against Russia by the EU since the start of the war in Ukraine, with the latest package banning Russian gold imports and jewelry., as the one before targeted Russian bank systems and oil. Restrictions applied to Russian government and military officials, business people, and an abundance of well-known media figures such as Sputnik and RT Editor-In-Chief Margarita Simonyan.