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The de-industrialisation of Germany 🇩🇪- Part 13: 🔹 An Allianz Trade bankruptcy study shows a sharp increase in German corporate insolvencies in 2H 2023, up 23% 📈 YoY. For 2024, bankruptcies are expected to increase further with a forecast of around 20,260 cases, up 9% YoY. 🔹Bundesbank report shows economy likely in recession for Q1 2024, citing "industry will likely remain in a weak phase". 🔹EU 🇪🇺 industries are struggling, with industrial output falling by 5.7% in Jan. '24 and nearly one million manufacturing jobs lost in the past four years. EU-China relations is in a downward spiral as China 🇨🇳 relies less on Western markets for manufacturing and technology goods. 🔹 Glass manufacturer Ritzenhoff of Hochsauerland declares bankruptcy after 120 years of operation. 🔹205,000 German jobs threatened or lost in 2023 by company insolvencies. 🔹Over 330 years after its foundation, the Koblenz Brewery auctions off its inventory after filing for bankruptcy. 🔹 Kitchen accessories manufacturer M. Westermann of North Rhine-Westphalia, bankrupt after being founded 150 years ago. 🔹 The KaDeWe Group (owner of several of Germany's most iconic high-end department stores) have applied for restructuring under self-administration, a type of bankruptcy filing. 🔹 Mattress manufacturer, the Breckle Group, which has existed since the 1930s is insolvent. 🔹 German firms committed $15.7 billion in capital projects to the U.S. last year, marking a steep rise on 2022’s figure of $5.9 billion. Previous parts on the de-industrialisation of Germany 🇩🇪: 💠 Part 12- Jan. '24 💠 Part 11- Oct. '23 💠 Part 10 - Sep. '23 💠 Part 9 - Aug. '23 💠 Part 8 - Jun. '23 💠 Part 7 - May '23 💠 Part 6 - Mar '23 💠 Part 5 - Feb. '23 💠 Part 4 - Jan. '23 💠 Part 2 and Part 3 - Nov. '22 💠 Part 1 - Oct. '22 Video Source: Afd in English

🔹Mar. 4th 2024 - The price of gold reached a record high as hopes mount for a US 🇺🇸 rate cut this summer, following weaker-than-expected economic data published last week. The price of the precious metal surged to $2,114 (£1,664) an ounce in the spot market, after steady increases over the past few weeks. The biggest driver of the recent gold surge seems to be its role as a safe haven asset during political and economic uncertainty. 🔹Robust physical buying by central banks and investors in Asia has provided strong support to gold prices. Central bank demand, in particular, is seen as a key factor in sustaining high gold prices, counterbalancing profit-taking by other investors. Central bank net gold purchases totaled 1,037 tons in 2023. That fell just 45 tons short of 2022’s multi-decade record. 🔹China 🇨🇳 was the biggest buyer in 2023. The People’s Bank of China officially reported a 225-ton increase in its gold reserves. Total central bank gold buying in 2022 came in at 1,136 tons. It was the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971. 🔹The rush to gold by central banks is also driven by countries’ desire to weaken their dependence on the US dollar as a reserve currency, after Washington weaponised the greenback in its sanctions against Russia 🇷🇺. Investors tend to stockpile gold during times of uncertainty, like during recessions or wars, to protect themselves against inflation or depreciating currencies. Video source: Sean Foo

🔹Turkish 🇹🇷 President T. Erdogan made his first visit (Feb. 14th 2024) to Egypt since 2012 and met his Egyptian 🇪🇬 counterpart Abdel Fattah al-Sisi in Cairo in a big step toward rebuilding relations between the regional powers. The humanitarian tragedy in Gaza topped the agenda of their talks. 🔹Relations between Ankara and Cairo broke down in 2013 after Egypt's then-army chief Sisi led the ouster of the Brotherhood's Mohamed Mursi, an ally of Türkiye who had become Egypt's first democratically elected president the year before. Mursi died in prison in Egypt in 2019. Other senior members of the Muslim Brotherhood are jailed in Egypt or have fled abroad, including to Türkiye. The Brotherhood remains outlawed in Egypt. 🔹The countries mutually appointed ambassadors last year. This month Türkiye said it would provide Egypt with armed drones. Ankara has taken a number of steps to reduce the presence of Muslim Brotherhood leaders in Turkey, one of Egypt’s biggest concerns. Mekameleen satellite channel, an anti-Sisi outlet, ceased broadcasting from Turkey in 2021, and some prominent exiles in Türkiye were asked to reduce their criticism of the Sisi regime. 🔹Türkiye has been busy on asserting itself as a regional power on the diplomatic front through the: 🔸Arab League and the Organization of Islamic Cooperation to build support for Gaza 🇵🇸. 🔸Organization of Turkic States to boost trade and investments. 🔸 St. Petersburg (Russia 🇷🇺) International Gas Forum to become natural gas hub. 🔸meetings with Iran 🇮🇷, Russia and Syria 🇸🇾 to solve the Syrian conflict. 🔸 working on an alternative to replace the Russian payment system MIR after the US threatened Türkiye with sanctions for servicing MIR cards. Video sources: Aljazeera and Judging Freedom

🔹Poland's 🇵🇱 farmer protests continue this week (Feb. 12th) and has now escalated by them starting a month-long general strike to protest against EU policies. They are demanding measures from both their national gov't and the bloc to combat production cost hikes, reduced profits and unfair competition from non-EU countries. Polish media said there were over 250 blockades across the country. 🔹About 100 farmers 🚜 and 50 cars blocked the approach to Medyka border crossing between Poland and Ukraine 🇺🇦. Polish farmers forcibly pried open Ukrainian trucks crossing into the EU, spilling mounds of grain onto roads near their border. Ukraine calls for Poland to 'punish' grain-spilling farmers. Ukraine's dep. economy minister T. Kachka said Kiev officials see this as a worrying increase in anti-Ukrainian sentiment... that will lead to more xenophobia and political violence. 🔹Farmers demand the protection of their business against cheap/below EU standards grain imports from Ukraine. Farmers have launched over 160 road protests this year with tractors and farm machinery, blocking or slowing traffic as they beeped horns and waved Polish flags. 🔹These protests may force the Polish gov't to execute plans to inspect grain shipments from Ukraine, since the new PM D. Tusk vowed to defend domestic producers against unfair competition. Such new regulations may include publishing a list of companies that have flouted the import ban. 🔹In Sep. 2023, Ukraine filed a complaint at the World Trade Organization against Poland for keeping their borders closed to importing Ukrainian grain after an EU 🇪🇺 restriction expired which previously allowed these countries to ban domestic sales of Ukrainian wheat, maize, rapeseed and sunflower seeds. They however are allowed transit of Ukrainian grain. Video source: Poland Daily Live

🔹 Prices on Feb. 6th 2024 for cocoa futures in NY climbed 📈 to a new 46-year nearest-futures high and in London climbed to a record high, trading in the $5,279 per ton range. Cocoa prices are surging as the intensity of this year's seasonal Harmattan winds in West Africa is drying out cocoa fields and is sparking worries about damage to the Ivory Coast mid-crop. 🔹 Cocoa futures are at their highest since 1977, when then scarcity in the producing nations were caused by adverse weather conditions. Presently, Lower cocoa production in Côte d'Ivoire 🇨🇮 and Ghana, the world's largest producers, is a major bullish factor for cocoa prices. Unfavorable growing conditions and crop disease on West African farms over the past year have curbed cocoa production and fueled a scorching rally in cocoa prices. 🔹Over 500,000 hectares of cocoa farms in Ghana 🇬🇭have been lost to the Cocoa Swollen Shoot Viral Disease, posing a major threat to the country’s cocoa production. In Ghana, farmers don't get their fair share of profits because cocoa beans are not sold at the true market value. 🔹Last July, we reported that delegates from Ghana, Côte d'Ivoire, Nigeria 🇳🇬, Cameroon 🇨🇲and multinational cocoa industry players are reviewing a feasibility study on establishing an African Cocoa Exchange. The continent produces 75% of world cocoa and does not have a pricing platform as it relies on the price determined on the Chicago Mercantile 🇺🇸 and the London 🇬🇧Intercontinental Cocoa Exchanges.

🔹The Central Bank of the UAE 🇦🇪, made history on Jan. 29th by initiating the first cross-border payment of 50 million dirhams using the UAE's ‘Digital Dirham’ (wholesale CBDC for central/private banks, not yet a retail CBDC for use in transactions by citizens). The UAE made the historic transaction directly to China through the ‘mBridge’ platform. Project mBridge was launched in 2021 by the central monetary authorities of China 🇨🇳, Hong Kong 🇭🇰, Thailand 🇹🇭, and the UAE in collaboration with the Bank for International Settlement. 🔹This is the first non-USD 💵 transactions between the two BRICS nations. One member of the US 🇺🇸 Congress, Rep. M. Waters, of the House Financial Services Committee, expressed concern that the initiative could be used as a cover for evading economic sanctions. 🔹Sheikh Mansour of the UAE Central Bank underscored it's responsibility to promote economic growth to support development initiatives in the country. According to him, this should be achieved by ensuring financial and monetary stability, as well as enhancing the efficiency and adaptability of the financial system. 🔹The UAE, a new BRICS member, is looking for innovative ways to propel the Digital Dirham ahead of the US currency. Furthermore, China encourages developing countries to prioritize their indigenous currencies in trade settlements above the US dollar. Video source: maneco64

🔹Russia chaired the first meeting of BRICS 🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦 Sherpas under its chairmanship in the bloc. Sherpas and sous-sherpas (junior sherpas) are representatives of the heads of state and government involved in the preparation for this year's upcoming meetings and discuss pressing issues of cooperation. For the first time, representatives of five new members of BRICS, Egypt 🇪🇬, Iran 🇮🇷, UAE 🇦🇪, Saudi Arabia 🇸🇦 and Ethiopia 🇪🇹 participated in such a meeting, which took place on Jan. 30 to Feb. 1 2024. 🔹Russia's Foreign Minister S. Lavrov attended and stated that the BRICS intergovernmental group is not intended to be a new tool of hegemonic imperial diktat in world affairs. He also noted that that "Washington 🇺🇸 and those who control the global monetary and financial system have proven their intractability and undependability." 🔹He also noted that with BRICS accounting for 30% of all land on the planet, 45% of the world population and around a quarter of global exports and possessing huge oil 🛢reserves, "we cannot simply sit and wait or follow in the wake of major historical processes. 🔹Tehran expects the shift to payments in national currencies within BRICS to increase during Russia’s chairmanship. Beijing considers it necessary to use national currencies in payments between BRICS member states Egypt expects Russia’s BRICS chairmanship to allow meeting the challenges in the area of food 🌾 and energy security. 🔹The New Development Bank (BRICS Bank), issued bonds worth 6 billion yuan (about $845 million) on the Chinese interbank bond market to finance sustainable development projects. Up to 100% of the proceeds from their sale can be sent abroad in yuan or converted into other currencies. Video Source: Firstpost

🔹China Evergrande Group has been ordered to wind up, after a Hong Kong 🇭🇰 High Court approved a petition by creditors to liquidate the world’s most indebted property developer, in the biggest such case seen in the city. Evergrande was ordered to liquidate with more than $300 billion in liabilities, having failed to deliver on a restructuring plan as intended after a court reprieve in December '23. 🔹The decision sets the stage for what is expected to be a drawn-out and complicated process with potential political considerations as investors watch whether the Chinese courts will recognise Hong Kong's ruling, given the many authorities involved. Offshore investors will be focused on how Chinese authorities treat foreign creditors when a company fails. 🔹As most of Evergrande's assets are in mainland China, there are uncertainties about how the creditors can seize the assets and the repayment rank of offshore bondholders, and situation can be even worse for shareholders. 🔹This marks another low for China's real estate market after Evergrande was declared to be in default in 2021 after missing a crucial repayment deadline. The billionaire chair and founder of China’s 🇨🇳 Evergrande Group was being investigated and under police surveillance over suspected “illegal crimes,” in Sept. '23. 🔹In 2020, Beijing brought in new rules to control the amount owed by big real estate developers. The new measures led Evergrande to offer its properties at major discounts to ensure money was coming in to keep the business afloat. Now it is struggling to meet the interest payments on its debts. Video source: SCMP

🔹Jan. 28th 2024 - Farmer 🚜protests unfolding throughout Europe appeared to be under some form of Western televised media embargo. Over the past week farmer protests have escalated in multiple European countries. 🇩🇪 Germany: Farmers protest the gov't cost-cutting measures as part of the country's gov't budget for 2024, including removal of farmer fuel subsidies. Highways were blocked due to blockades. 🇵🇱Poland: Farmers demand the protection of their business against cheap/below EU standards grain imports from Ukraine. Farmers launched over 160 road protests with tractors and farm machinery, blocking or slowing traffic as they beeped horns and waved Polish flags. 🇷🇴 Romania: Farmers protest the same issues as Poland (flooding of local markets with cheap/ (in many cases sub-standard) Ukrainian food imports. 🇱🇹 Lithuania: Farmers protest requirements to restore permanent grasslands (to be uncultivated for more than five years) in order to receive subsidies. Dairy farmers demand the gov't ensure a minimum above-cost price at which processors buy their milk. 🇫🇷 France: The French gov't dropped plans to gradually reduce state subsidies on agricultural diesel after angry farmers surrounded Paris and still threaten to converge on the capital in their tractors. Yesterday, they blocked a major highway out of Paris. French farmers blocked AP-7 highway linking France and Spain with a demonstration at the border protests over low food prices and excessive bureaucracy. Trucks were prohibited crossing from Spain across the border. 🇮🇹 Italy: Bologna, Frosinone, Latina, Caserta are some of the cities where demonstrations by farmers took place against Europe's agricultural policies, agricultural confederations, banks, and taxes. In Bologna, around a hundred tractors paraded through the streets. 🇧🇪 Belgium: Farmers protest against a decline in standards of living, falling incomes and competition from cheap imported products, notably from Ukraine.

🔹The International Court of Justice on Friday 26th Jan. issued a series of provisional measures that require Israel to comply with the 1948 Genocide Convention. In a case brought by South Africa 🇿🇦 accusing Israel 🇮🇱of committing genocide in Gaza, the verdict stopped short of ordering Israel to pause or stop its devastating war on Gaza, which has killed more than 26,000 Palestinians 🇵🇸 in the enclave since October 7. 🔹The court itself does not have the power to enforce the interim ruling, or the final verdict it delivers in the case. The ICJ ⚖️ issued six emergency orders to Israel: 💠 Israel must take all possible measures to prevent acts as outlined in Article 2 of the 1948 Genocide Convention. 💠 Israel must ensure its military does not carry out killing of Palestinian civilians, not cause physical or psychological harm to members of that group, not inflict living conditions which are calculated to bring about the end of the existence of a people, and not carry out actions designed to prevent births within that group of people. 💠 Israel must prevent and punish the “direct and public incitement to commit genocide. 💠 Israel must ensure the delivery of basic services and essential humanitarian aid to civilians in Gaza. 💠 Israel must prevent the destruction of evidence of war crimes in Gaza and allow fact-finding missions access. 💠 Israel must submit a report on all steps it has taken to abide by the measures imposed by the court within one month of the judgement. 🔹Israeli PM B. Netanyahu responded to the ICJ ruling by saying; “The vile attempt to deny Israel this fundamental right is blatant discrimination against the Jewish state, and it was justly rejected.” He has also ordered members of his cabinet to refrain from responding to the ruling. In the past 24 hours alone, Israel carried out 21 mass killings, murdering 200 and injuring 370 civilians. So Israel’s message to the Court, and the world at large, is clear. Video source: Newstalk