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Investors eye India, Indonesia amid aging world

Traffic outside the Bank Indonesia headquarters in Jakarta, Indonesia. — BLOOMBERG

EMERGING MARKETS (EM) such as India and Indonesia, whose populations are growing at a solid pace, stand to benefit as demographics begin to play a bigger role in investment decisions, according to Fidelity International and BlackRock Investment Institute.

The investors are focusing on the two nations in emerging Asia, thanks in part to an expected boom in infrastructure spending, which in turn bodes well for the countries’ economies. Both India and Indonesia coincidentally had elections this year, showcasing to the world their ambition to transition into major economic powerhouses with their dynamic population a key strength.

The two countries stand out at a time when rapid aging has plagued peers in the region, including China. India surpassed China as the world’s most populous nation in mid-2023, a historic milestone that unleashed a rush to identify potential winners in the South Asian nation’s stock market.

BlackRock’s analysis shows a positive relationship between a country’s working-age population growth and share-price valuations, while Fidelity sees the financial sector as a key beneficiary as credit needs grow for both corporates and consumers.

“India and Indonesia’s labor forces are young — with demographic dividends that far outshine some of the largest economies in the neighborhood,” said Ian Samson, a fund manager at Fidelity in Singapore. “All companies big and small require financing. This in part explains why bank stocks generally correlate with GDP growth in emerging markets.”

India and Indonesia are projected to see population gains of at least 10% from this year by 2040, according to data from the World Bank, while China will likely see shrinkage of nearly 4%.

A more important metric would be changes in the working-age population, defined as those between 15 and 64 years old. Even before the historic overall population decline in China, its working-age cohort had been shrinking for years, while India’s is the youngest among major economies.

A faster increase in the working-age group typically translates into higher future earnings growth, BlackRock Investment Institute strategists led by Jean Boivin wrote in March, adding that migration, greater labor-force participation and automation are also factors at play.

The demographic dividend forms part of the optimism that has fueled gains in the two stock markets, alongside a slew of idiosyncratic factors including hopes for a market-supportive election outcome.

The Nifty 50 Index, which is trading at record levels, is set to notch nine-straight years of gains if the trend holds. The Jakarta Composite Index touched an all-time high in March.

STRUCTURAL REFORMS
Analysts note that structural reforms to reduce regulatory red tape, enhance job market flexibility and facilitate foreign investment are essential for economies to capitalize on the demographic tailwind.    

“Ultimately, the growth equation is employment times productivity,” said Fidelity’s Mr. Samson. “The solid structural reforms we have seen in both India and Indonesia will allow for sufficient job creation to benefit from the demographic dividend.”

While there’s been some progress, more needs to be done. Indonesia’s President-elect Prabowo Subianto, who takes office in October, aims to achieve 8% annual economic GDP growth despite the nation’s track record that falls far below that.

Investors are watching whether state governments in India will follow through with implementing labor, land and other policy changes that have been passed at the national level. Should Prime Minister Narendra Modi’s party win a slimmer majority in the polls, his plans for more extensive reforms will face hurdles and financial market volatility may rise.

For investors of sovereign debt, the age-dependency ratio — which shows the ratio of those considered too old or too young to work — and fiscal burden are among metrics to consider for long-term investment.

Global funds have poured $5.5 billion into India’s bonds this year on index-inclusion prospects, according to data compiled by Bloomberg. Investors took comfort that India’s interim budget announced in February focused on infrastructure spending, instead of populist policies ahead of the general election that began in April.

In comparison, international investors have pulled out $1.8 billion from Indonesia’s notes as the incoming administration’s pledges to boost spending raised concern about fiscal health.

“Aging population increases the cost of healthcare and pensions, with developed-market economies having more comprehensive social benefits as compared to most EM economies,” said Sanjay Shah, a director of fixed income at HSBC Global Asset Management. “In EM economies, the burden of pension plans may be more staggered and less fixed benefit oriented,” thereby reducing the state funding burden, Mr. Shah said. — Bloomberg

US lawmaker tells Taiwan weapons are coming, China drills show deterrence need

A NAVY miniature is seen in front of displayed Chinese and Taiwanese flags in this illustration taken April 11, 2023. — REUTERS

TAIPEI — A senior US lawmaker visiting Taipei said on Monday that weapons Taiwan had ordered are finally on their way, and that China’s “intimidating” war games last week underscored the need to boost the island’s deterrence abilities.

China claims democratically governed Taiwan as its own territory and has never renounced the use of force to bring the island under its control. Taiwan’s government rejects Beijing’s sovereignty claims.

Taiwan has for the last two years complained of delays to deliveries of US weapons, such as Stinger anti-aircraft missiles, as manufacturers supply Ukraine to support its defence against Russia.

Michael McCaul, the Republican chairman of the House Foreign Affairs Committee, who promised those weapons would be delivered when he visited Taiwan last year, said the Chinese military’s “armada” last week had sent a very strong message to the United States.

“We are moving forward on those weapons systems. I’d like to see it faster, but they are forthcoming,” Mr. McCaul told reporters after meeting Taiwan President Lai Ching-te.

Taiwan needs to have sufficient weapons to show Chinese President Xi Jinping that the risk outweighs the rewards of invading the island, he added.

“President Lai and I, as always, had a very sobering and yet very direct conversation about the threat that this island faces from its neighbor to the north, and it’s a real one,” McCaul said. “Without deterrence, Chairman Xi has bold and aggressive ambitions.”

China last year placed sanctions on McCaul after his visit to Taiwan and meeting with then-President Tsai Ing-wen. — Reuters

United States, European nations consider vaccinating workers exposed to bird flu

CHICAGO/LONDON -— The United States and Europe are taking steps to acquire or manufacture H5N1 bird flu vaccines that could be used to protect at-risk poultry and dairy workers, veterinarians and lab technicians, government officials said, moves influenza experts say could curb the threat of a pandemic.

US officials last week said they were moving bulk vaccine from CSL Seqirus that closely matches the current virus into finished shots that could provide 4.8 million doses of vaccine. European health officials told Reuters they were in talks to acquire CSL’s pre-pandemic vaccine.

Canadian health officials said they have met with GSK, maker of Canada’s seasonal flu shots, to discuss acquiring and manufacturing a pre-pandemic bird flu vaccine once its seasonal flu production capacity is freed up.

Other countries, including the UK, are discussing how to proceed on pre-pandemic vaccines, scientists said.

The actions follow the explosive spread of a new strain of bird flu that emerged in late 2020 and has caused unprecedented numbers of deaths among wild birds and domestic poultry and has begun infecting many mammal species.

In March, US officials reported the first outbreak of the virus in dairy cattle, which has infected dozens of herds in nine states and two dairy workers. The US Food and Drug Administration has estimated that 20% of the US milk supply shows signs of the virus, indicating a wider spread is likely.

Human exposures to the virus in poultry and dairy operations could increase the risk that the virus will mutate and gain the ability to spread easily in people.

“All of our efforts need to be focused on preventing those events from happening,” said Matthew Miller, co-director of the Canadian Pandemic Preparedness Hub at McMaster University. “Once we have widespread infections of humans, we’re in big trouble.”

Dr. Angela Rasmussen, a virologist at the University of Saskatchewan, said she has been in discussions with US and Canadian officials about using vaccines to protect workers following the virus’ spread into new mammal species.

Dawn O’Connell of the US Administration for Strategic Preparedness and Response said the government is “looking closely” at the possibility of vaccinating farm workers and others in close contact with the virus.

The US has contracts with CSL and GSK to test prepandemic vaccines that more closely match the circulating virus than older H5N1 vaccines in the stockpile. The US is moving forward with the CSL vaccine, a Department of Health and Human Services official confirmed.

Discussions about prepandemic vaccine use are going on at government levels and among scientists in a number of places, including in the UK, said Wendy Barclay, chair in influenza virology at University College London, who also researches avian flu for the UK Health Security Agency.

If deployed strategically to dairy farmers, healthcare workers and those in close contact with infected animals, “it would put a pin in the virus,” she said, although she said it was not clear if this step was necessary yet.

The UK government did not comment but said it is monitoring the situation in the US.

In Europe, the European Commission’s Health Emergency Preparedness and Response Authority is working on a joint procurement of CSL Seqirus’s vaccine to “potentially prevent a pandemic” sparked by individuals exposed to infected birds and animals, spokesman Stefan De Keersmaecker told Reuters.

A spokeswoman for CSL, which has contracts for pandemic influenza vaccines with 30 governments, said the company has been in talks with several governments about procuring vaccines since 2022. Those requests have accelerated with the US outbreak, she said.

PREPANDEMIC STOCKPILE
The US maintains a stockpile of prepandemic vaccine candidates and bulk vaccine against an array of influenza strains and conducts clinical trials to support an Emergency Use Authorization or FDA license in the event of pandemic.

Seasonal flu vaccine makers, including Sanofi, could also be asked to shift to producing pandemic flu vaccines.

The US is in talks with mRNA vaccine makers Pfizer and Moderna about potential pandemic vaccines.

Dr. Richard Webby, a St. Jude Children’s Research Hospital virologist who studies flu in animals and birds for the World Health Organization, said the situation in dairy cattle merits vaccine use.

“If we look at the exposure levels that some of these farmers are getting, it’s high,” Mr. Webby said.

The decision on how and when to use the vaccine will hinge on evidence of increased transmission, severity of disease, cases in people with no link to a dairy farm and mutations in the virus, US Centers for Disease Control and Prevention Principal Deputy Director Nirav Shah said.

Dutch flu virologist Ron Fouchier of the Erasmus MC in Rotterdam, who has conducted experiments mapping the changes necessary for bird flu to spark a pandemic, said Europe’s plan is to procure the CSL vaccine for people occupationally exposed to the virus.

His lab could well be eligible if a vaccine becomes available, he said, adding, “I would certainly take it.” — Reuters

Thai courts hand jail terms to lawmaker, musician for royal insults

REUTERS

BANGKOK — Courts in Thailand handed jail terms on Monday to an activist musician and an opposition lawmaker for insulting the monarchy, their lawyers said, the latest individuals to fall foul of one of the world’s strictest lese-majeste laws.

The law shielding Thailand’s powerful monarchy from criticism carries a penalty of up to 15 years in jail for each offense and is one of the toughest of its kind in the world.

Chonthicha Jangrew, 31, a parliamentarian with the Move Forward Party, received a two-year term for a speech made in 2021 at an anti-government protest. But she was given bail pending an appeal, her lawyer Marisa Pidsaya told Reuters.

Another court sentenced musician Chaiamorn Kaewwiboonpan, 35, to four years in prison for burning a portrait of King Maha Vajiralongkorn. He had been found guilty of arson, lese-majeste and computer crimes.

A legal aid group, Thai Lawyers for Human Rights, said Chaiamorn was seeking bail and intended to appeal the decision.

Both have denied insulting the monarchy and the courts have yet to issue statements on the sentences.

The palace typically does not comment on the law.

More than 272 people have been charged under the law since 2020, 17 of them held in pre-trial detention, says legal aid group Thai Lawyers for Human Rights, which compiles data and has defended many of those prosecuted.

In 2021, a 65-year-old woman was sentenced to 43 years for circulating posts on social media critical of the monarchy, while a man jailed in 2023 for 28 years received an additional 22 years in January after appealing a verdict on his social media posts about the crown.

He is now appealing the decision in the Supreme Court.

LEGAL BATTLES
Ms. Chonthicha won a house seat last year with the popular opposition Move Forward, which has the most seats in parliament but faces legal battles of its own, having campaigned to amend the royal insults law, which a court has ordered it to drop from its manifesto.

One of its lawmakers, Rukchanok Srinork, was sentenced last year to six years in prison over social media posts critical of the monarchy.

Move Forward faces dissolution after a court ruled the amendment plan was unconstitutional, and a hidden effort to undermine Thailand’s system of governance, in which the king is the head of state.

Move Forward denies that, saying it wanted to prevent the law from being used as a political weapon.

A separate complaint filed with another body seeks life bans for 44 current and former lawmakers over the amendment bid.

After his 2021 arrest, musician Chaiamorn admitted setting alight the king’s portrait as a gesture of defiance and also to vent frustration over the detention of fellow activists on royal insult charges.

The two rulings come two weeks after activist Netiporn “Bung” Sanesangkhom died in pre-trial detention on charges that include royal insult. — Reuters

Turbulence hits Qatar Airways flight to Dublin, 12 injured, airport says

UNSPLASH

TWELVE PEOPLE traveling on a Qatar Airways flight from Doha to Ireland were injured during a bout of turbulence, Dublin Airport said on Sunday, adding that the plane landed safely and as scheduled.

Flight QR017, a Boeing 787 Dreamliner, landed shortly before 1 p.m. Dublin time (1200 GMT), the airport said.

“Upon landing, the aircraft was met by emergency services, including Airport Police and our Fire and Rescue department, due to 6 passengers and 6 crew [12 total] on board reporting injuries after the aircraft experienced turbulence while airborne over Turkey,” Dublin Airport said in a statement.

The incident took place five days after a Singapore Airlines flight from London to Singapore was forced to land in Bangkok due to severe turbulence, which killed a 73-year-old British man and left 20 others in intensive care.

Turbulence-related airline accidents are the most common type, according to a 2021 study by the US National Transportation Safety Board.

From 2009 through 2018, the US agency found that turbulence accounted for more than a third of reported airline accidents and most resulted in one or more serious injuries, but no aircraft damage. — Reuters

Starbucks tries to avoid price war but gets dragged into discounting in China

HENRY & CO.—UNSPLASH

SHANGHAI — As Starbucks faces stiff competition for its brew in China from fast-growing, low-cost rivals who have chipped into its market share, the coffee chain is increasingly being dragged into a price war it says it wants to avoid.

The stakes are high for Starbucks, which has come under growing pressure from investors recently due to weaker sales in its two biggest markets — the United States and China.

While the Seattle-based company has got its work cut out in the world’s second-biggest economy, where its rival Luckin Coffee pipped it to the top spot on annual sales for the first time in 2023, management is convinced it does not need to get into a race to the bottom on prices.

“We are not interested in entering the price war,” Starbucks’China CEO Belinda Wong said in January. “We are focusing on capturing high quality but profitable, sustainable growth.” Those sentiments were repeated by founder Howard Schultz on a visit to Shanghai in March. 

However, analysts, Reuters checks and Chinese consumers posting on social media point to an increase in discount coupons being offered by Starbucks through its own mini-programs, as well as via the coffee-maker’s livestreams on Douyin, and third-party delivery platforms popular for ordering coffee.

In effect, Starbucks has made it relatively easy for Chinese consumers to buy its most commonly ordered coffees with 30% discounts or two-for-one coupons without dropping their listed prices, sliding down a slippery slope of increased discounting towards a potential price war.

While Reuters was unable quantify just how much Starbucks’ use of discount coupons has increased and the firm declined to comment on its coupons policy, these types of discounting practices were once a rarity from the US coffee maker. In 2024, however, they have become easily available.

Walker Shen, 38, is an office worker from Shanghai who frequently uses discount coupons to buy his daily coffee. He has noticed an increase in push notifications from Starbucks in recent months offering him 30% off coupons.

“I think less people are drinking Starbucks now,” Mr. Shen said, adding that “most people aren’t that demanding when it comes to quality,” meaning fewer consumers were willing to pay a premium for Starbucks.

The emergence of a price war in the coffee sector in China comes amid a persistent deflationary environment, exacerbated by weak consumer sentiment as the economy struggles to recover and wages stagnate.

Unfortunately for Starbucks, says Jason Yu, greater China managing director of market research firm Kantar Worldpanel, it doesn’t really have a choice but to compete to some degree on price in a market where low cost battles have become “the new normal.”

“Strengthening the promotional offers and increasing the intensity of their promotions, being very active on social media, are essential moves to maintain their position so market share is not further eroded,” he added.

In second quarter results released at the beginning of May, Starbucks said same-store sales in China — its second-largest market — fell 11%, prompting it to slash annual sales forecast.

The coffee chain had a 13.6% market share of China’s café and bar market in 2022, according to the most recent available data. Daxue Consulting, a market research firm, estimated China’s roast coffee market at $11.7 billion in 2023 and projected it to grow to $13.25 billion by 2025.

Starbucks remains more discerning in its approach to distributing discount coupons than others, says independent food and beverage analyst Zhu Danpeng.

“Starbucks will do promotions, but their promotion volume will be small, they will be in a specific period of time, or for some specific products,” he said.

Starbucks China CEO Wong last year said “Deep Brew,” the firm’s AI data analytics engine, would allow it to pitch discounts to “the right customers at the right time” in China, though the firm declined to comment on the use of Deep Brew as part of its current strategy.

COFFEE FOR BEANS
The list price of a large Luckin latte at 29 yuan ($4.00) is not far off Starbucks’ latte price (33 yuan), but Luckin actually often sells lattes at 9.9 yuan with a widely available coupon.

Offerings from other competitors are even cheaper, with Cotti, a chain launched by former Luckin Chairman Charles Lu, offering Americanos for 8.8 yuan with a coupon and KFC’s KCoffee allowing members to buy 5 yuan coffees for 30 days on a 10-yuan membership fee.

Helped by its steep discounts and quicker store expansion — with 18,590 stores already more than double the 9,000 Starbucks says it will open in China by 2025 — Luckin revenue reached 24.86 billion yuan ($3.45 billion) in 2023, surpassing Starbucks’ comparable annual sales of $3.16 billion in China.

Though price will be an important factor in consumer decision-making for the foreseeable future, Starbucks won’t beat its competition in a race to the bottom, Kantar’s Yu says, adding that the American firm should continue with its strategy of offering a premium in-store experience its competitors can’t match.

“Starbucks needs to compete on price but not only compete on price,” he said. “They need to lead in innovation, lead in the conversation about coffee and lead in creating emotional value for consumers, or they will lose out more to the local competition.” — Reuters

Recto expects 150 bps of rate cuts in next 2 years

FINANCE SECRETARY RALPH G. RECTO — DEPARTMENT OF FINANCE FACEBOOK PAGE

MANILA — The Philippines’ key policy rate, currently at a 17-year high of 6.50%, could be reduced by as much as 150 basis points in the next two years on the back of an improving outlook for inflation, its finance minister said on Monday.

Finance Minister Ralph Recto, who sits on the seven-member policy making monetary board, said it was possible for the central bank to start cutting rates this year, likely followed by more rate reductions in 2025.

“Surely, I don’t expect interest rates to go any higher. If not, if there is time, they will start to go down, maybe 150 bps in the next two years,” Mr. Recto told an economic forum.

Annual inflation has quickened for a third straight month in April to 3.8%, bringing the average rate for the first four months of the year to 3.4%, still well inside the central bank’s 2.0%-4.0% target range.

While the central bank expected “higher inflation” from May to July, the pace of consumer price increases should “revert back to target range” after that, Bangko Sentral ng Pilipinas (BSP) senior assistant governor Iluminada Sicat told the same forum.

Ms. Sicat said the central bank will be “careful not to bring down interest rate too early” to address upside risks to inflation.

The Philippine central bank, which kept its benchmark rate steady at its last five meetings, has said it was looking to cut rates by 25 basis points as early as August and by another 25 basis points in the fourth quarter. Such a move would put it ahead of major central banks including the Federal Reserve which is expected to deliver its first rate cut in September or slightly later.

Persistent strength in the U.S. labour market and business activity have prompted investors to push back bets of rate cuts by the Fed this year, exerting pressure on Asian currencies including the Philippine peso.

Ms. Sicat said the central bank was “closely monitoring developments in the currency market given the recent depreciation of the peso” but reiterated that authorities “do not target any specific exchange rate level.”

“What we look at when we enter the market is that we look whether there is presence of market stress. Because if we let the market stress left unattended, it will affect inflation expectation and that is something we are avoiding,” she said. — Reuters

Philippines protests China’s annual fishing ban

PHILSTAR FILE PHOTO

MANILA — The Philippines has protested China’s imposition of a unilateral four-month long fishing ban in the South China Sea, its foreign ministry said on Monday.

The annual imposition of a fishing ban raises tensions in the South China Sea, the foreign ministry said,calling on Beijing to “cease and desist” from “illegal actions” that violate the Philippines’ sovereignty and sovereign rights.

China imposes an annual fishing ban on South China Sea waters and the Philippines routinely opposes it. This year’s ban is expected to last until September.

The Philippines’ foreign affairs department (DFA) has protested the ban through a diplomatic note, saying the fishing moratorium covers waters within its maritime zones.

“The Philippines stressed that the unilateral imposition of the fishing moratorium raises tensions in the West Philippine Sea and the South China Sea,” the DFA said in a statement.

China’s embassy in Manila did not immediately respond to a request for comment.

Philippine Defense Secretary Gilberto Teodoro last week said China’s rules about how its Coast Guard can operate in the South China were a “provocation”.

China claims almost the entire South China Sea, a conduit for more than $3 trillion in annual ship commerce. Its territorial claims overlap with waters claimed by the Philippines, Vietnam, Indonesia, Malaysia and Brunei.

In 2016, an international arbitral tribunal said China’s claims had no legal basis, a decision Beijing has rejected. — Reuters

VILLARICA ‘Sure’ campaign wins the most awards at Asia-Pacific Stevie Awards

Cheers to success: Cong. Linabelle Villarica, VILLARICA Vice-President Hailey Villarica-Ong and Meycauayan City Mayor Henry Villarica celebrate their 10 wins at the 2024 Asia-Pacific Stevie Awards.

Pawnshop pioneer VILLARICA brought pride to the Philippines at the 2024 Asia-Pacific Stevie Awards, where its “Sure” campaign scored 10 wins, the most for a single campaign from the region’s 29 markets.

Watsons International and Shell Philippines were the most honored organizations, regionally and locally, for their achievements with multiple campaigns at the ceremony held last Friday at Shangri-La The Fort by the world’s premier business award-giving body.

“These awards — and our continued growth after 70 years — prove that providing the best value to our customers is always a winning strategy,” said VILLARICA Vice-President Hailey Villarica-Ong.

VILLARICA received three Gold awards (Innovative Achievement in Financial Industries, in Brand Development, and in Organization Recovery), three Silver awards (Innovative Achievement in Customer Satisfaction, in Consumer Product and Service Industries, and for Brand Renovation or Rebranding), and three Bronze awards (Innovative Achievement in Growth, in Sale or Revenue Generation, and in Consumer Products and Services). After a worldwide public vote, it also earned the People’s Choice Stevie Award for Favorite Company in the Financial Industries. 

These 10 wins extend the awards haul for the “Dapat Sure Ka. Dapat VILLARICA” campaign. It was commended as Southeast Asia Brand of the Year at Campaign’s recent Agency of the Year awards in Singapore. Last October, it became the most-awarded campaign in the history of the Philippines’ Marketing Excellence Awards. It also won the top prize for Brand Effectiveness through Business Growth at the 2023 PANAta Awards.

VILLARICA developed the groundbreaking integrated marketing campaign with creative agency Silver Machine Digital Communications and media outfit Dentsu X. Ads on traditional media and digital channels showed working-class families victimized by unscrupulous vendors, highlighting VILLARICA as the trustworthy alternative.

 

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Fewer top women earners in British finance since pandemic – report

STOCK PHOTO | Image by StockSnap from Pixabay

LONDON – Women make up a smaller proportion of top earners in British financial and professional services than before the COVID-19 pandemic, research from the London School of Economics and Political Science (LSE) showed on Monday.

Women made up 19.4% of the top 1% of earners in the sector on average between the first quarter of 2020 and the second quarter of 2023, down from 19.7% in the three years up to the first quarter of 2020, the research showed.

“The lack of progression of women to the most senior roles in financial and professional services is a major factor contributing to the gender pay gap,” said Grace Lordan, an associate professor at the LSE.

“We are going backwards, but I am not surprised. For progress to be made, there needs to be a bigger shift towards recognizing that diversity is good for business.”

Some of Britain’s top financial firms pay women 28.8% less on average than male counterparts, according to salary data from 21 companies reviewed by Reuters last month.

However, the LSE research, based on the government’s quarterly Labor Force Survey, showed that women made up 28.3% of the top 10% of earners between the first quarter of 2020 and the second quarter of 2023, a rise of 2.5% from the three-year period up to the first quarter of 2020. – Reuters

Millions without power as cyclone Remal pounds Bangladesh and India

STOCK PHOTO | Image by StockSnap from Pixabay

DHAKA/KOLKATA – Strong winds and heavy rain pounded the coastal regions of Bangladesh and India as severe cyclone Remal made landfall late on Sunday, leaving millions without electricity after power poles fell and some trees were uprooted by gusty winds.

The storm crossed the coastal regions of Bangladesh’s Mongla port and the adjoining Sagar Islands in India’s West Bengal state with wind speed measuring up to 135 kmph (about 84 mph), the India Meteorological Department (IMD) said.

The storm will gradually weaken into a cyclone during the morning on Monday and then move northeast and gradually weaken further, the IMD said in its latest weather update.

The landfall process began around 9 pm local time in India on Sunday and continued for about five hours, the regional meteorological office in Kolkata said.

One person was killed in the major metropolitan city of Kolkata when concrete chunks fell on him during the peak of the storm, police said. Roofs of thatched huts were blown away while mud houses were flattened in the coastal areas of both countries as authorities waited to ascertain the full scale of losses.

The low-lying coasts of South Asian neighbors Bangladesh and India have experienced frequent severe storms in recent years as climate change forces a rise in sea surface temperatures. Remal is the year’s first cyclone in the region.

Bangladesh moved about 800,000 people from the port areas of Mongla and Chittagong and nine coastal districts to storm shelters from Sunday morning. As many as 110,000 people were also taken to shelters in India.

Dhaka set up nearly 8,000 cyclone shelters and mobilized 78,000 volunteers ahead of the storm while the Indian navy said it had kept ships, aircraft, divers and medical supplies on standby for deployment if required.

While early warnings and timely evacuations helped both countries avert major casualties from the storm, there was a heavy toll on power infrastructure.

Authorities in Bangladesh shut down electricity supply to many areas in advance to avoid accidents while many coastal towns were left in the dark as fallen trees and broken lines disrupted supply, power ministry officials said.

“We have no electricity since night, my mobile battery will run out anytime. By the grace of Allah, the cyclone was not as violent as we thought,” said Rahat Raja, a resident in the coastal district of Satkhira in Bangladesh.

Reports of at least 356 uprooted electricity poles and damage to scores of transformers were received during the first hour of the landfall process, Arup Biswas, the minister for power in West Bengal government, said.

More than 50 international and domestic flights had to be cancelled in Kolkata city as operations were suspended from Sunday noon. Bangladesh also suspended operations at Mongla and Chittagong ports.

“Normal airport operations will resume from 9 am,” said C Pattavi, the director of the Kolkata airport, adding that the airport’s operational areas were clear from waterlogging.

River embankments in the Sundarbans delta, the largest mangrove forest in the world, shared by India and Bangladesh, also suffered heavy damage with high tides breaching protective embankments at many places.

Kolkata, like the state’s coastal belt, was also lashed by heavy rains with water logging in many areas, television footage showed. At least six trees were uprooted, which blocked roads, while there were also reports of wall collapses, police said.

The cyclone also brought heavy rains to Bangladesh capital Dhaka, causing flooding of roads and severely impacting commuters. – Reuters

North Korea plans to launch satellite between May 27 and June 4, Japan Coast Guard says

MICHA BRANDLI-UNSPLASH

TOKYO/SEOUL – North Korea has notified Japan it planned to launch a rocket carrying a satellite toward the Yellow Sea and east of Luzon Island between May 27 and June 4, the Japan Coast Guard said on Monday.

The South Korean government said later that the North had issued a notice of a military reconnaissance satellite launch. If successful, it would be Pyongyang’s second spy satellite in orbit.

The notice comes ahead of a trilateral summit meeting between Japan, South Korea and China scheduled for Monday.

Officials from the United States, Japan, and South Korea held phone talks in response to the notice and shared a view that a North Korean satellite launch using ballistic missile technology would violate U.N. resolutions, Japan’s Foreign Ministry said.

The officials agreed to demand that North Korea cancel the planned launch, the ministry said in an email.

The South Korean government said the North should call off the launch, noting that it would violate U.N. Security Council resolutions and pose a grave threat to regional security.

Its military said separately that the “so-called military reconnaissance satellite launch” would be a provocative act.

“Our military will be taking measures that show our strong capabilities and will,” Joint Chiefs of State spokesman Lee Sung-jun said at a news briefing, without elaborating.

North Korea launched its first military spy satellite in November, putting it in orbit after two earlier failed attempts in 2023.

The country claimed the satellite had taken surveillance photographs of the US White House, the Pentagon and South Korean military installations, but it has not published any pictures.

North Korea has vowed to launch three more spy satellites this year.

The successful launch in November came after the leaders of North Korea and Russia met at a space launch facility in the Russian Far East, where President Vladimir Putin said Moscow would help Pyongyang build satellites. – Reuters

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