Senin, 01 April 2019

Ethiopian crash could be largest non-war aviation reinsurance claim: Willis Re - Reuters

FILE PHOTO: Ethiopian Federal policemen stand at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, southeast of Addis Ababa, Ethiopia March 11, 2019. REUTERS/Tiksa Negeri/File Photo

LONDON (Reuters) - Liability claims related to the Ethiopian Airlines crash and the grounding of Boeing 737 MAX 8 aircraft could be the largest non-war aviation reinsurance claim on record, hitting reinsurers’ profitability, reinsurance broker Willis Re said.

The crash of Ethiopian Airlines flight ET 302 on March 10 killed 157 passengers and crew, the second deadly crash involving a Boeing Co 737 MAX 8 airliner in five months.

As the crash site and black boxes are investigated, the 737 MAX 8 has been grounded worldwide as a precautionary measure and regulators are stepping up action to improve air safety while Boeing is carrying out a software upgrade to the plane’s automated flight control system.

Liability claims for the passengers’ loss of life and in relation to the grounded aircraft could total around a billion dollars, James Vickers, chairman of Willis Re International, told Reuters by phone, a large sum for the aviation reinsurance market which Vickers said was “very small and very, very specialist”.

Reinsurers help insurers share the cost of large claims, in return for part of the premium.

The losses could erode three to four years of aviation reinsurers’ premium in the “global excess of loss” category of reinsurance, Willis Re said on Monday in its summary of reinsurance activity at the key April 1 renewal date.

In excess of loss reinsurance, the insurers are on the hook for the first part of the claim, and reinsurers only pay out on claims above a certain level.

The world’s biggest reinsurers include European firms Munich Re, Swiss Re and Hannover Re, U.S. billionaire global investor Warren Buffett’s Berkshire Hathaway and companies operating in the Lloyd’s of London market.

British insurer Global Aerospace led a consortium of insurers and reinsurers providing cover for Boeing.

Reporting by Carolyn Cohn; editing by Simon Jessop and David Evans

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https://www.reuters.com/article/us-ethiopia-airplane-reinsurance/ethiopian-crash-could-be-largest-non-war-aviation-reinsurance-claim-willis-re-idUSKCN1RD1TR

2019-04-01 09:42:00Z
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Turkey’s Erdogan suffers setback as opposition heads for victory in Istanbul and other cities - The Washington Post

ISTANBUL — The candidate from Turkey’s main opposition party appeared headed for victory on Monday in the race to become mayor of Istanbul, an influential post that launched the political career of the country’s president and one he had zealously sought to keep in the hands of his ruling party.   

 Sadi Guven, the head of Turkey’s high election board, told reporters on Monday that the opposition candidate, Ekrem Imamoglu, was leading his competitor, Binali Yildirim, by nearly 28,000 votes. 

Yildirim, who served as prime minister under President Recep Tayyip Erdogan, acknowledged his opponent’s lead on Monday but did not concede defeat, saying that votes were still being counted and that more than 300,000 ballots had been declared invalid — raising the possibility of a legal challenge.  

 The race was part of nationwide local elections held on Sunday that were widely seen as a referendum on Erdogan’s policies, including his faltering effort to prevent a downturn in the economy. Preliminary results showed the ruling Justice and Development Party, or AKP, led all other parties among voters. But opposition victories in several of Turkey’s largest cities, including Ankara, the capital, dealt Erdogan a significant symbolic defeat.  

Imamoglu’s victory in Istanbul, if confirmed, would be the harshest blow. Erdogan rose to national prominence as the city’s mayor from 1994 to 1998. The city has served since then as a source of wealth and prestige for his party, and a showcase — with its sprinting construction, megaprojects and multiplying mosques — for his broader ideological vision. 

“We will start our work to detect our shortcomings,” Erdogan said in a speech on Sunday night.  

The election for mayors, municipal council members and other local posts represented the first nationwide referendum on Erdogan’s leadership since he won a presidential poll in June. Since then, Turkey’s economy has slipped into a recession for the first time in a decade, forcing the government to defend policies that have unnerved investors and sent prices soaring. 

A crackdown on the government’s opponents that intensified after a failed coup in 2016 has added to the domestic unease and has also troubled Turkey’s relationships with Western allies, causing sharp fluctuations in the Turkish Lira, putting investors on edge.

[Turkey went on a building spree as its economy boomed. Now the frenzy is crashing to a halt.]

While his own position was secure, Erdogan still raced around the country in recent weeks, attending campaign rallies at a punishing clip that he referred to Sunday as a “marathon.” His bellicose rhetoric — red-meat appeals to his conservative Muslim base and menacing language leveled at his opponents, some of whom he labeled “terrorists” — underscored the stakes in the election. 

“It is a matter of survival,” Erdogan said of the poll, at a rally in a working-class district of Istanbul on Friday.

But even as the president framed the elections in terms of national security, many voters “did not buy it,” said Murat Yetkin, a Turkish political analyst and author of a blog called the Yetkin Report. “The pollsters were telling us that 80 percent were seeing the economy — namely the cost of living and unemployment — as the biggest problem,” he said.

“This is a major loss. If the toll includes Istanbul, finally — five big cities of Turkey, including Ankara — some 40 percent of the population,” would be under opposition control, potentially creating governing problems for Erdogan, he said.  

[Kurdish voters could hold the key in Turkey’s hotly contested election]

The ruling party’s loss of the capital Ankara, a symbol of political power, was also significant, said Soner Cagaptay, an expert on Turkey at the Washington Institute for Near East Policy. But the loss of Istanbul “would be a nuclear defeat,” he said — one that diminished Erdogan’s aura as Turkey’s “invincible politician.”   

The Turkish elections at one point threatened to become an international diplomatic crisis, when Erdogan was criticized by officials in New Zealand for repeatedly airing footage at his rallies of the mosque shootings in the city of Christchurch that killed 50 people in March. 

The Trump administration was closely watching the ballot and hoping that a catalogue of disputes with Ankara — including arguments over the war in Syria and Turkey’s purchase of a Russian air defense system — would quiet once Turkey’s caustic campaign season had come to an end.

Read more:

New Zealand scolds Turkey’s Erdogan over airing massacre footage

U.S. hopes for fresh engagement with Erdogan after Turkish elections

Turkish court extends detention of U.S. consular employee

Today’s coverage from Post correspondents around the world

Like Washington Post World on Facebook and stay updated on foreign news

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https://www.washingtonpost.com/world/middle_east/turkeys-erdogan-suffers-setback-as-opposition-heads-for-victory-in-istanbul-and-other-cities-/2019/04/01/37d45f84-545d-11e9-814f-e2f46684196e_story.html

2019-04-01 11:30:52Z
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U.K. Parliament Seeks to Impose Plan B on May: Brexit Update - Bloomberg

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  1. U.K. Parliament Seeks to Impose Plan B on May: Brexit Update  Bloomberg
  2. Brexit in meltdown - May under pressure to forge softer divorce deal  Reuters
  3. PM may have to accept soft Brexit if Commons backs it, says minister  Cengiz Adabag News
  4. A customs union would not solve the Brexit conundrum  The Guardian
  5. It’s time for common sense on Brexit – a customs union must prevail  The Guardian
  6. View full coverage on Google News

https://www.bloomberg.com/news/articles/2019-04-01/u-k-parliament-seeks-to-impose-plan-b-on-may-brexit-update

2019-04-01 11:10:00Z
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Theresa May hints at election as Brexit votes go before Parliament: Live updates - CNN International

Pro-Brexit supporters at Parliament Square on Friday.

This was meant to be the UK's first full week outside the European Union.

But after nearly three years of infighting, division and political paralysis, the deadlock over Brexit rumbles on.

This week is another crucial one in the process. With rumors of a looming general election, the prospect of yet another meaningful vote, and a series of indicative ballots in the House of Commons, things might be a lot clearer in a few days' time. Then again -- they might not.

Lawmakers will get the first opportunity to negotiate a way out of Britain's deepening political crisis. Today they'll hold a second round of indicative votes, hoping to coalesce behind a Brexit plan that could rival Theresa May's and force the PM into a compromise.

Options that MPs could vote on will likely include a Customs Union plan and a second referendum -- and while the ballots are not legally binding, a united show of support would be difficult for Downing Street to ignore.

Another round of indicative votes could take place on Wednesday, but reports suggest that Theresa May is also planning to find time this week for yet another so-called meaningful vote on her Withdrawal Agreement. That divorce deal has already failed in the Commons three times, by majorities of 230, 149 and 58.

And in case that wasn't enough Westminster drama for one week, rumors also abound that May could call a snap general election to break the deadlock. The last time she tried that, in 2017, it backfired spectacularly -- with May losing her majority in Parliament.

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https://edition.cnn.com/uk/live-news/brexit-indicative-votes-monday-gbr-intl/index.html

2019-04-01 09:26:00Z
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Turkey's lira slides as President Erdogan's party suffers pivotal losses - CNBC


Turkish President Recep Tayyip Erdogan's Justice and Development Party (AK Party) has lost the capital Ankara and looks set to lose the commercial hub of Istanbul after 25 years in power in both cities, as Sunday's municipal election results — largely seen as a referendum on the president himself — roll in.

The Turkish lira fell sharply at the opening of London trade on Monday, the latest rout after a turbulent week that saw Turkey's overnight swap rate shoot up as high as 1,200 percent as the central bank tried to shore up the currency.

On Monday morning, the lira sunk at roughly 8:30 a.m London time after the country's election board said the opposition party was ahead in Istanbul's mayoral election, briefly trading at $5.6913. The currency had traded at 5.61 to the dollar after the initial results came in on Sunday evening, compared with 5.55 at Friday's close.

The country's BIST 100 stock index was down 1.65 percent as European markets opened, after falling more than 7 percent last week.

Markets now fear that the electoral losses will push Erdogan to double down on populist policies that helped send the currency tanking last year, when his interference in central bank independence held interest rates down despite soaring inflation and sent investors running for the hills. Last year saw the lira lose 30 percent of its value against the dollar.

The victories claimed by the opposition Republican People's Party (CHP) are a formidable blow to the ruling right-wing AK Party — particularly the expected loss of Istanbul, where Erdogan first made his political debut as city mayor in the 1990s. Still, the AK Party and its far-right coalition partner the Nationalist Movement Party (MHP) secured more than 50 percent of the national vote and won a majority of Istanbul's districts.

Voters went to the polls with a major concern at the top of their list: the economy.

Unemployment in Turkey is now around 13 percent, nearly a decade high, and inflation sat at 19.7 in February — though that's the first time it's dropped below 20 percent since August.

"The market will now want to see what reforms the AKP is going to roll out, after the new promises made by Erdogan," Timothy Ash, senior emerging markets strategist at Bluebay Asset Management, commented in an email note Monday, noting that the president will remain powerful after years of consolidating power through constitutional changes.

"The actual election results don't change that much, Turkey still faces huge economic challenges based around a loss of confidence in policy making," he said. "First and foremost confidence in economic policy making has to be rebuilt to stop the trend of rising dollarization."

The drop in the lira has led to the weakening of consumer purchasing power and caused acute pain for Turkish banks and businesses with high dollar-denominated debt — reports have put the volume of Turkey's foreign-currency denominated corporate debt at 50 percent of the country's GDP (gross domestic product).

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https://www.cnbc.com/2019/04/01/turkey-lira-slides-as-erdogans-party-suffers-pivotal-losses.html

2019-04-01 07:47:29Z
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Taiwan scrambles jets to confront Chinese fighters after rare incursion - CNN

The island's military scrambled fighter planes after it said two Chinese J-11 fighter jets crossed the border within the waters of the Taiwan Strait, known as the median line, at about 11 a.m. on Sunday.
"Two PLAAF J-11 jets violated the long-held tacit agreement by crossing the median line of the Taiwan Strait. It was an intentional, reckless and provocative action. We've informed regional partners and condemn China for such behavior," the Taiwan Ministry of Foreign Affairs said in a statement
If confirmed as intentional, the Chinese incursion would be the first of its kind in years, said Bonnie Glaser, director of the China Power Project at the center of Center for Strategic and International Studies.
"Chinese jets flew across the center line frequently in 1999," Glaser said. "Since then, there have been occasions when PRC jets flew toward the center line and then veered off. They haven't crossed it in a long time. By some accounts 20 years."
She said there was one instance in 2011 when Chinese planes accidentally crossed the line.
According to local Taiwan media, the Sunday incident triggered a 10-minute standoff between jets from the two sides.
China and Taiwan have been separately governed since the end of a brutal civil war in 1949. Beijing views the self-governed island as part of its territory.

Weekend activities

On Saturday, the Japanese Self-Defense Force announced it had also scrambled fighters after the Chinese air force flew between Japan's islands of Okinawa and Miyako.
Japan's Self Defense Forces said in a statement the Chinese air force had sent four Xian H-6K long range bombers, one Shaanxi Y-8 electronic countermeasures aircraft, one Tupolev Tu-154 MD electronic intelligence plane and at least two fighter jets through international airspace between Japanese islands on Saturday.
Chinese H-6K bomber flying over the Miyako Strait in Japan
It isn't the first time China has flown planes over the Miyako Strait -- in March 2018, it conducted drills with bombers and fighter jets in the same area
In the past 12-months China's military has ramped up the number of drills and exercises it conducts around Taiwan, including sailing the aircraft carrier Liaoning through the strait.
Taiwan wants to buy advanced jets and tanks from the US
In a speech in January, Chinese President Xi Jinping said Taiwan independence was a "dead end," warning he didn't rule out force as a method of reunification.
Speaking on Wednesday, Taiwan President Tsai said her government had submitted a request to buy new F-16 fighters and M1 heavy tanks from the United States, which she said would "greatly enhance" the island's defense capabilities.
The Chinese government has yet to respond to statements made by Japan or Taiwan, but in a press conference last Thursday, Ministry of Defense spokesman Wu Qian said potential US sales to Taiwan were "dangerous."
"We will strive for peaceful reunification with utmost sincerity and greatest efforts. However ... we will take all necessary measure to safeguard national sovereignty and territorial integrity and protect peace and stability across the strait," he said.

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https://www.cnn.com/2019/04/01/asia/china-japan-taiwan-jets-intl/index.html

2019-04-01 07:13:00Z
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Taiwan scrambles jets to confront Chinese fighters after rare incursion - CNN

The island's military scrambled fighter planes after it said two Chinese J-11 fighter jets crossed the border within the waters of the Taiwan Strait, known as the median line, at about 11 a.m. on Sunday.
"Two PLAAF J-11 jets violated the long-held tacit agreement by crossing the median line of the Taiwan Strait. It was an intentional, reckless and provocative action. We've informed regional partners and condemn China for such behavior," the Taiwan Ministry of Foreign Affairs said in a statement
If confirmed as intentional, the Chinese incursion would be the first of its kind in years, said Bonnie Glaser, director of the China Power Project at the center of Center for Strategic and International Studies.
"Chinese jets flew across the center line frequently in 1999," Glaser said. "Since then, there have been occasions when PRC jets flew toward the center line and then veered off. They haven't crossed it in a long time. By some accounts 20 years."
She said there was one instance in 2011 when Chinese planes accidentally crossed the line.
According to local Taiwan media, the Sunday incident triggered a 10-minute standoff between jets from the two sides.
China and Taiwan have been separately governed since the end of a brutal civil war in 1949. Beijing views the self-governed island as part of its territory.

Weekend activities

On Saturday, the Japanese Self-Defense Force announced it had also scrambled fighters after the Chinese air force flew between Japan's islands of Okinawa and Miyako.
Japan's Self Defense Forces said in a statement the Chinese air force had sent four Xian H-6K long range bombers, one Shaanxi Y-8 electronic countermeasures aircraft, one Tupolev Tu-154 MD electronic intelligence plane and at least two fighter jets through international airspace between Japanese islands on Saturday.
Chinese H-6K bomber flying over the Miyako Strait in Japan
It isn't the first time China has flown planes over the Miyako Strait -- in March 2018, it conducted drills with bombers and fighter jets in the same area
In the past 12-months China's military has ramped up the number of drills and exercises it conducts around Taiwan, including sailing the aircraft carrier Liaoning through the strait.
Taiwan wants to buy advanced jets and tanks from the US
In a speech in January, Chinese President Xi Jinping said Taiwan independence was a "dead end," warning he didn't rule out force as a method of reunification.
Speaking on Wednesday, Taiwan President Tsai said her government had submitted a request to buy new F-16 fighters and M1 heavy tanks from the United States, which she said would "greatly enhance" the island's defense capabilities.
The Chinese government has yet to respond to statements made by Japan or Taiwan, but in a press conference last Thursday, Ministry of Defense spokesman Wu Qian said potential US sales to Taiwan were "dangerous."
"We will strive for peaceful reunification with utmost sincerity and greatest efforts. However ... we will take all necessary measure to safeguard national sovereignty and territorial integrity and protect peace and stability across the strait," he said.

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https://www.cnn.com/2019/04/01/asia/china-japan-taiwan-jets-intl/index.html

2019-04-01 05:58:00Z
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