South China Sea: US submarine collides with unknown object - BBC News

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A US nuclear submarine hit an "unknown object" while submerged in waters in the Asia-Pacific region, injuring a number of sailors, US officials say.

It was not clear what caused the incident on Saturday, they said. The submarine remained "fully operational".

Unnamed officials told US media the collision happened in international waters in the South China Sea, and that 11 sailors had been injured.

The incident happened amid rising tensions in the region.

The US Navy said the extent of the damage was still being assessed and that the submarine's nuclear propulsion plant and spaces had not been affected.

The statement did not give details about where the incident took place or the number of people hurt, saying only that the injuries were not "life threatening".

But two officials quoted by the Associated Press said two of the 11 sailors that were hurt had injuries that were classified as "moderate". All of them were treated on board the submarine.

Those officials said the incident took place while the submarine was conducting routine operations and that the Navy did not make the news public before Thursday in order to maintain operational security.

According to AP, the officials said the object the USS Connecticut collided with was not another submarine. One of the officials quoted by the agency said it could have been a sunken vessel or container, or other uncharted object.

Alexander Neill, a Singapore-based defence and security expert, told the BBC the number of injuries caused by the collision suggested the submarine probably "hit something big" and was "going really fast".

The incident, he said, was "uncommon but not unheard of" and had exposed how busy the area was with military activities.

"The South China Sea has been increasingly saturated with naval vessels from a number of different countries. While there's been a lot of show of force by surface vessels you don't see the level of activity under the surface," Mr Neill said.

In comments reported by Chinese state-run daily Global Times, a spokesman for the ministry of foreign affairs said China was "seriously concerned" about the incident, calling on the US to provide further details, including the purpose of the mission.

The submarine was later reported to be heading towards the US territory of Guam.

USNI News, a site specialised in the US Navy, said the last known incident where a submerged US submarine struck another underwater object was in 2005, when the USS San Francisco hit an underwater mountain at full speed near Guam. One sailor died in the incident.

Why is the South China Sea so contentious?

The USS Connecticut was operating in one of the most contested regions in the world. China claims most of the South China Sea, but surrounding countries and the US disagree.

The Philippines, Brunei, Malaysia, Taiwan and Vietnam have all been disputing China's claim to almost all of the Sea for decades but tension steadily increased in recent years.

The US has backed many of these countries in this territorial dispute.

The incident comes just weeks after the US, UK and Australia agreed a historic security pact in the Asia-Pacific, in what's seen as an effort to counter China.

Meanwhile, the US National Security Advisor, Jake Sullivan, told the BBC he was "deeply concerned" about actions that undermine peace across the Taiwan Strait, which separates Taiwan and China.

He was speaking after China sent a record number of military jets into Taiwan's air defence zone for the fourth day running.

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2021-10-08 10:01:45Z
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Ireland signs up to global corporate tax deal - Financial Times

Ireland has finally abandoned its cherished 12.5 per cent corporate tax rate and signed up to a minimum 15 per cent global rate that will cost the country about €2bn in lost revenues.

Paschal Donohoe, finance minister, told the Financial Times big businesses could rest assured no more changes would follow the “very, very significant” shift from what had been a cornerstone of Irish policy for more than two decades.

The new tax rate will affect 1,556 companies in Ireland employing 500,000 people, among them US tech giants such as Apple, Google, Amazon and Facebook. Ireland now joins 140 countries in agreeing to the effective levy of 15 per cent on major multinationals ahead of a meeting of the OECD on Friday.

The deal came after Dublin persuaded the OECD to ditch a commitment to a global rate of “at least 15 per cent”.

For smaller, domestic companies with a turnover of less than €750m, Donohoe secured approval from other nations to keep the 12.5 per cent rate — a concession he admitted he had “many” times been unsure he could clinch.

“I believe that change will be right for Ireland and I believe it is also right for Ireland to be playing a positive role in implementing what I believe will be an important agreement,” he said in an interview, adding the deal provided “certainty and stability”.

Asked if the new rate would remain forever, he said: “I can’t see in my lifetime this kind of circumstances developing again . . . 15 will mean 15.”

The meeting in Paris on Friday was expected to agree the framework deal but many details would not be hammered out until early next year, he said — not least how much tax companies will pay in the countries where they operate but are not necessarily located, the so-called Pillar One.

EU members Estonia and Hungary are among lingering holdouts. The EU needs unanimous support from its 27 member states for the agreement.

US President Joe Biden and Janet Yellen, Treasury secretary, are on board but face the challenge of getting the deal through the US Congress since Biden has only a tiny majority in the Senate.

“We’re all depending on each other to be able to implement this collectively and comprehensively,” Donohoe said.

But he added: “I have enough confidence now that this is going to happen globally for me to believe that it’s appropriate that Ireland go into it now.”

High-tech companies have accounted for the bulk of Ireland’s €5bn to €7bn a year foreign direct investment over the past five years.

Karen Frawley, president of the Irish Tax Institute, said Ireland “didn’t want to be in a position where its reputation was very damaged — not signing up would have made us seem to be almost like a tax haven”.

Despite factoring the prospect of a 15 per cent rate into his budget sums since 2019, Donohoe admitted that “at may points I have thought that it is very possible that the entire process itself wouldn’t conclude or Ireland would not be able to get assurances for the changes we needed”.

Dublin worked on the basis that both scenarios — a deal, or no deal — could translate into a loss of revenue. Nevertheless, “it has been evident to me that this moment would be coming”, Donohoe said.

An Irish Times/Ipsos MRBI poll found 59 per cent of respondents opposed increasing the corporate tax rate but Mark Redmond, chief executive of the American Chamber of Commerce Ireland, “warmly welcomed” the announcement.

“The revised agreement ensures essential predictability, stability and certainty for multinational employers,” he said. US FDI in Ireland accounts for about a fifth of private sector jobs.

The new global tax rate is expected to take effect from 2023 and the government estimates it will cost Ireland up to €2bn in coming years.

Donohoe said the estimate of the loss was based on companies paying a smaller share of their overall taxes in Ireland, offset by a higher rate.

In the absence of further detail at this stage “we believe there will be a net overall loss of €2bn in the medium term,” he later told a news conference.

Donohoe added it was important to be inside the deal because otherwise other countries would have collected the difference between the 12.5 per cent and 15 per cent rates.

Some also suggested the move could be positive, not negative, for Irish government coffers.

“Under the proposals, these large corporates would have been paying this additional tax anyway, irrespective of whether Ireland signed up to the deal, as the tax would be collected by other countries. At 15 per cent, Ireland still remains a very attractive location for foreign direct investment,” said Tom Woods, head of tax at KPMG. “The changes should also yield additional gains to the exchequer,” he said in a statement.

Feargal O’Rourke, managing partner at PwC, said the deal could in fact end up being positive for Ireland. The country stands to lose about €2.5bn under Pillar One. “If we increase our rate to 15 per cent on those big global companies affected by the OECD deal, we could gain about €2bn,” he said.

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2021-10-07 17:03:49Z
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US senators agree to extend debt ceiling to avoid default - BBC News

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Senators in the United States have agreed to extend the country's debt ceiling, less than two weeks before it was due to be reached.

A debt ceiling is a limit on how much the government can borrow.

There were fears that the US would default on its national debt, with catastrophic financial implications.

But Senate Majority leader Chuck Schumer said Congress had reached a deal to extend the debt ceiling until early December.

Republican Senate Minority leader Mitch McConnell said: "Republican and Democratic members and staff negotiated through the night in good faith."

The temporary debt compromise will need to be passed by both chambers of Congress.

• Is the US about to overshoot its debt limit?

The agreement comes less than two weeks before 18 October, the day the US Treasury Secretary Janet Yellen warned was the deadline to prevent the first ever US default.

The US debt currently stands at around $28tn (£21tn).

Congress will still have to address this issue near the new December deadline to avert a default.

Failure by the US to repay its bill would severely hurt the country's credit rating, plunge the global financial system into turmoil, and possibly lead to a self-inflicted recession.

Lawmakers also kicked another can down the road last week when they passed a separate short-term bill to keep the government funded until December, avoiding a shutdown.

• Can the US avoid another government shutdown?

Both together create the potential for a logjam of legislation and a new round of headaches right around the holidays.

What is the debt ceiling?

The US government spends more money than it collects in taxes, so it borrows to make up for the shortfall.

Borrowing is done via the US Treasury, through the issuing of bonds. US government bonds are seen as among the world's safest and most reliable investments.

In 1939, Congress established an aggregate limit or "ceiling" on how much debt the government can accumulate.

The ceiling has been lifted on more than 100 occasions to allow the government to borrow more. Congress often acts on it in a bipartisan manner and it is rarely the subject of a political standoff.

But some Republicans have voiced frustration around new spending proposals that Democrats are trying to push through without Republican support.

Democrats have pointed out that raising the debt ceiling is about paying off existing obligations rather than paying for new ones, and that President Joe Biden's policies have only contributed to 3% of existing debts.

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2021-10-07 16:36:23Z
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Texas abortion law temporarily blocked by judge - BBC News - BBC News

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2021-10-07 09:50:48Z
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Gas markets ease as investors bank on Russia to step in - Financial Times

Global gas markets eased and equities climbed on Thursday, as investors banked that Russia would help Europe avoid a full-blown energy crisis.

European and UK gas prices fell in morning trades after a chaotic Wednesday that saw UK futures contracts climb almost 40 per cent before Russian president Vladimir Putin said his country was prepared to stabilise the market.

Russia, a major supplier of gas to Europe, has been accused by some European politicians of deliberately withholding supplies in an effort to win approval of the controversial Nord Stream 2 pipeline, which would send the fuel directly to Germany.

Alexander Novak, Russia’s energy minister, said late on Wednesday that certifying the recently completed pipeline would give a “positive signal” that could “cool down the current situation somewhat”.

Novak also suggested that increasing gas trading volumes on an electronic platform in St Petersburg run by Gazprom, Russia’s state-owned energy company, “could curb the speculative effect” on prices.

Hopes of Russian assistance helped European equities to rebound from losses on Wednesday. The benchmark Stoxx 600 share index gained 0.9 per cent while London’s FTSE 100 rose 0.8 per cent.

UK gas contracts for November delivery, which reached more than £4 per therm on Wednesday, fell 18 per cent to £2.23 on Thursday. The European TTF contract for November delivery dropped 21 per cent to €90.50 per megawatt hour.

Surging gas prices, unleashed by a combination of the global economy’s recovery from the pandemic, a shortage of supplies and longstanding efforts to reduce the use of fossil fuels, are threatening to slow economic growth and fuel inflation.

Olivier Marciot, cross asset investment manager at fund manager Unigestion, cautioned that while power prices could moderate, markets would remain vulnerable to broader inflationary pressures hitting consumers and prompting central banks to raise interest rates.

“It is not just about gas,” he said, referring to increases in the prices of commodities from cotton to coffee alongside pandemic-related worker shortages in the US, Europe and the UK.

Headline consumer price inflation in the US has topped 5 per cent for three months and hit a 29-year high in Germany.

Meanwhile, US energy secretary Jennifer Granholm told the Financial Times on Wednesday that the White House may release strategic oil reserves to stop the gas shortage dragging crude prices higher. Brent crude fell 1.4 per cent to $79.88 a barrel after approaching $83.50 on Wednesday.

Energy price swings and prospects of Russia gaining more influence in Europe was “developing a geopolitical lens over markets,” that had been absent since the start of the Covid-19 crisis, when debt and equity valuations became dominated by central banks’ stimulus spending, said Edward Park, chief investment officer of Brooks Macdonald.

“The first order event was a supply and demand imbalance coming out of the pandemic,” that caused energy price rallies, he said. “Now the geopolitics are coming out because of the prices.”

Government bonds were steady on Thursday following volatile trading in recent sessions, as traders held back from bets ahead of Friday’s US non-farm payrolls report. US employers are predicted to have hired almost half a million workers in September, which analysts believe could prompt the Fed to decide the economy has healed enough from the pandemic to reduce its $120bn a month of crisis-fighting bond purchases.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price and influences borrowing costs worldwide, was flat at 1.529 per cent. It has climbed from about 1.3 per cent in late September.

The UK’s 10-year gilt yield, which last week topped 1 per cent for the first time since March 2020 as traders anticipated stagflation and interest rate rises, was steady at 1.07 per cent.

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2021-10-07 09:15:59Z
CAIiEDoASQ5aG-xDWpEgRTtK8rcqGAgEKg8IACoHCAow-4fWBzD4z0gw_fCpBg

Biden, Xi plan US-China virtual summit before year's end as tensions over Taiwan mount - Daily Mail

Biden, Xi plan US-China virtual summit before year's end as tensions over Taiwan mount

• The summit has reportedly been made possible after US National Security Advisor Jake Sullivan met with senior Chinese foreign policy advisor Yang Jiechi 
• Jen Psaki has yet to confirm details of the meeting but they are expected to discuss tariffs, human rights and Chinese secrecy about Covid's origin
• It's unclear how much of the virtual summit will be public
• The news comes as China warned that World War III could be triggered 'at any time' after it sent dozens of warplanes into Taiwan's airspace 
• China claims Taiwan as its own territory but Taiwan says it's an independent country that will defend its freedoms and democracy
• The last time Biden and Xi spoke was on a 90-minute call on September 9

By Shannon Thaler For Dailymail.Com

Published: 06:31 BST, 7 October 2021 | Updated: 07:23 BST, 7 October 2021

US President Joe Biden and Chinese President Xi Jinping will hold a virtual summit before the end of 2021 as tensions rise between China and Taiwan, White House officials said.

The virtual meeting was reportedly only made possible after US National Security Advisor (NSA) Jake Sullivan met with senior Chinese foreign policy advisor Yang Jiechi in Zurich, Switzerland on Wednesday. 

'When China and the United States cooperate, the two countries and the world will benefit,' China's Xinhua news agency reported.

US President Joe Biden and Chinese President Xi Jinping (pictured with Biden in 2013) are set to hold a virtual summit before the end of 2021 as tensions rise between China and Taiwan. White House Press Secretary Jen Psaki has yet to confirm the details of the meeting but the two presidents are expected to discuss tariffs, human rights and Chinese secrecy about the origin of Covid-19

The digital meeting has reportedly only been made possible after US National Security Advisor (NSA) Jake Sullivan (left) met with senior Chinese foreign policy advisor Yang Jiechi (right) in Zurich, Switzerland earlier today

The news comes as China continues to threaten Taiwan. On Monday, China warned that World War III could be triggered 'at any time' after it sent dozens of warplanes into Taiwan's airspace.  

White House Press Secretary Jen Psaki has yet to confirm the details of the meeting.

Psaki said at Wednesday's daily press briefing: 'Leader-level engagement is an important part of our effort to responsibly manage the competition with China, especially given the coalescing of power in Chinese leadership.

'We’re still working through what that would look like, when and of course the final details.' 

It's unclear how much of the virtual summit will be public or who else will attend.

Currently, China claims Taiwan as its own territory but Taiwan says it's an independent country that will defend its freedoms and democracy, blaming China for the tensions.

Xi said Taiwan will be taken by force if necessary. A reported 148 Chinese air force planes were in the southern and southwestern part of Taiwan's air defense zone over a four-day period beginning on Friday - the same day China marked a key patriotic holiday, National Day. 

Taiwan President Tsai Ing-wen on Tuesday vowed to 'do whatever it takes' to guard Taiwan against invasion as she indicated that without help from the country's allies 'authoritarianism has the upper hand over democracy'.  

'They should remember that if Taiwan were to fall, the consequences would be catastrophic for regional peace and the democratic alliance system.

'It would signal that in today's global contest of values, authoritarianism has the upper hand over democracy,' she added.

Chinese President Xi Jinping (pictured in Beijing on September 30, 2021) claims Taiwan as China's territory but Taiwan says it's an independent country that will defend its freedoms and democracy, blaming China for the tensions

President Tsai Ing-wen (pictured in October 2020 in Taipei) vowed to 'do whatever it takes' to guard Taiwan against invasion as she warned that if the country's allies allowed it to fall 'it would signal that authoritarianism has the upper hand over democracy'

Nearly 150 Chinese warplanes have breached Taiwan's airspace since Friday, including nuclear-capable bombers on Monday in a dramatic increase in aggression

On Sunday, the US urged China to stop its military activities near Taiwan.

State Department spokesperson Ned Price said in a statement on Sunday: 'The United States is very concerned by the People's Republic of China's provocative military activity near Taiwan, which is destabilizing, risks miscalculations, and undermines regional peace and stability.'   

The talks are to be a follow-up on Biden's call with Xi last month as the administration continues 'to seek to responsibly manage the competition' between the two countries, the White House said in a statement.

Biden on Tuesday sought to reassure Taiwan as he told reporters: 'I've spoken with Xi about Taiwan. We agree ... we'll abide by the Taiwan agreement.'

However, he was referring to the last time he spoke to Xi, which was on a 90-minute call with the Chinese president on September 9. Tensions have risen significantly in recent days.  

The agreement he was referring to was Washington's long-standing 'one-China policy' where the country will officially recognize Beijing rather than Taipei, and the Taiwan Relations Act - which makes it clear that the US decision to establish diplomatic ties with Beijing instead of Taiwan depends on the expectation that the future of Taiwan - will be determined by peaceful means.  

China warned that World War Three could be triggered 'at any time' on Tuesday after it sent dozens of warplanes into Taiwan's airspace. Recent voyages through the Strait of Taiwan by the British and American navies (pictured) - coupled with the new Aukus defense pact - have infuriated Beijing and sparked more shows of strength in the South China Sea

Pictured: Britain's HMS Queen Elizabeth warship (second right at the head of the armada) took part in joint training with warships from six different countries over the weekend in the Philippine Sea amid rising tensions between China and Taiwan

Meanwhile, Beijing has been infuriated by activity of US and UK navies in the region. 

Britain's HMS Queen Elizabeth was spotted sailing in the Philippine Sea in a joint exercise with two US aircraft carriers - the USS Ronald Reagan and USS Carl Vinson - and Japan's helicopter destroyer JS Ise. 

The armada, which also includes a number of warships from six different countries in total, trained together over the weekend in the region amid the rising tensions.

The recent voyages through the Strait of Taiwan by the British and American navies - coupled with the new Aukus defense pact - have infuriated Beijing and sparked more shows of strength in the South China Sea.

What is the Taiwan Relations Act?

Biden told reporters Tuesday that he had 'spoken with Xi about Taiwan. We agree ... we'll abide by the Taiwan agreement'.

Biden appeared to be referring to Washington's long-standing policy under which it officially recognizes Beijing rather than Taipei, and the Taiwan Relations Act, which makes clear that the US decision to establish diplomatic ties with Beijing instead of Taiwan rests upon the expectation that the future of Taiwan will be determined by peaceful means.

Biden also appeared to be referencing a 90-minute call he held with Xi on September 9, their first talks in seven months.

While that act binds the United States to provide Taiwan with the means to defend itself, Washington only acknowledges China's stance that the island belongs to it and that there is 'one China,' and takes no position on Taiwan's sovereignty.

Taiwan's Foreign Ministry said it had sought clarification from the United States about Biden's comments, and were reassured US policy towards Taiwan had not changed, the US commitment to them was 'rock solid' and that the U.S. will continue to help Taiwan maintain its defenses.

'Facing the Chinese government's military, diplomatic and economic threats, Taiwan and the United States have always maintained close and smooth communication channels,' it said, noting recent US comments of concern about China's activities.

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2021-10-07 05:31:05Z
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At least 20 people killed and hundreds injured after earthquake in Pakistan - Sky News

At least 20 people have been killed and more than 200 injured after an earthquake in Pakistan.

The 5.9-magnitude quake was about 12 miles deep and centred eight miles north-northeast of Harnai in Balochistan province.

It hit at about 3.20am on Thursday, when most people were asleep.

Image: Many people left their homes after the quake Pic: AP

According to Pakistan's The News, people had rushed out of their homes reciting prayers and verses from the Quran as the ground shook.

Aftershocks are still being felt.

The Provincial Disaster Management Authority has been reported as saying that most of the dead were children.

At least four of the other victims were killed when a coal mine collapsed.

More from World

Rescuers are using heavy machinery to look for survivors but the number of dead is expected to rise.

Image: People gather outside a hospital following an earthquake in Harnai, Balochistan

More than 100 mud houses were destroyed and more properties were damaged, including government buildings.

The death toll is expected to rise as crews search the remote mountainous area, said Suhail Anwar, the local deputy commissioner in the city of Harnai, about 60 miles from the city of Quetta

Mr Anwar told Reuters that hundreds of people had been left homeless.

Some homes have been buried under the rubble and the area's power supply has been suspended.

Image: The earthquake hit in the early hours of Thursday, when most people were asleep. Pic: AP

The military was deployed to airlift dozens of injured people from mountain peaks, and search and rescue teams have arrived in the area.

At least nine critically injured people were taken to Quetta and the medical superintendent of a rural hospital in the Harnai district said they have "treated more than 200 casualties", with as many as 15 bodies taken there.

Image: Many residents have been left homeless and power to the area has been suspended

Quetta was the scene of one of southern Asia's deadliest quakes - in 1935 between 30,000 and 60,000 people were killed in a 7.7 magnitude quake. The death toll is expected to rise as crews search the remote mountainous area, said Suhail Anwar Shaheen, the local deputy commissioner.

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2021-10-07 08:15:58Z
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