Month: January 2024

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© Reuters. An Israeli soldier walks by tanks, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, near the Israel-Gaza border, in southern Israel, January 1, 2024. REUTERS/Violeta Santos Moura
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By Dan Williams, Nidal al-Mughrabi and Arafat Barbakh

JERUSALEM/CAIRO/GAZA (Reuters) -Israel pulled tanks out of some Gaza City districts on Monday, residents said, as it announced plans to shift tactics and cut back on troop numbers, but fighting raged elsewhere in the Palestinian enclave along with intense bombardment.

Israel says the war in Gaza, which has reduced much of the territory to rubble, killing thousands and plunging its 2.3 million people into a humanitarian disaster, has many months to go.

But it also signaled a new phase in its offensive, with an official saying on Monday the military would draw down forces inside Gaza this month and shift to a months-long phase of more localised “mopping up” operations.

A U.S. official said the decision appeared to indicate the start of a shift to lower-intensity operations in the north of the Palestinian enclave. The hints at a lowered tempo in Gaza came as the U.S. Navy announced that the Gerald R. Ford (NYSE:F) aircraft carrier was returning to its home port in Virginia after being to deployed to the Eastern Mediterranean following the outbreak of hostilities.

The Israeli official said the troop reduction would allow some reservists to return to civilian life, shoring up Israel’s war-battered economy, and free up units in case of a wider conflict in the north with Lebanon’s Iran-backed Hezbollah.

Artillery fire between Hezbollah and Israel has rattled the border since the start of the Gaza conflict, with Israel’s military saying it carried out an air strike on Monday.

Residents and security sources said Israeli raids targeted houses in the Lebanese village of Kafr Kila near the border, killing three people. They identified them as rescuers, but Lebanon’s Hezbollah movement later said on its Telegram account on Monday that the three were fighters with the movement.

The Israeli official said the situation on the Lebanese border “will not be allowed to continue. This coming six-month period is a critical moment.”

Any new escalation carries risks for a wider regional war. Tehran-backed fighters in Yemen have attacked Red Sea shipping, drawing a U.S. military response, and an Iranian warship has sailed into the waterway, Iranian media reported on Monday.

The Gaza war was triggered by a surprise Hamas attack on Israeli towns on Oct. 7 that Israel says killed 1,200 people. Palestinian health authorities in Hamas-run Gaza say Israel’s offensive there has killed more than 21,978 people.

SHELTER IN ZOO

The scale of suffering in Gaza, where the bombardment has driven almost all inhabitants from their homes, has led Israel’s Western allies, including the U.S., to urge it to scale down its offensive.

“My wish for 2024 is not to die … Our childhood is gone. There is no bathroom, no food and no water. Only tents,” 11-year-old Layan Harara said in Gaza’s Rafah. In the city’s zoo, people camped out between cages holding starving animals.

Residents of Sheikh Radwan district in Gaza City, in the northern part of the enclave that Israel’s offensive focused on first, said tanks had withdrawn after what they described as the most intense 10 days of warfare since the conflict began.

“The tanks were very near. We could see them outside the houses. We couldn’t get out to fill water,” said Nasser, a father of seven living in Sheikh Radwan.

Tanks also pulled out of Gaza City’s al-Mina district and parts of Tel al-Hawa district, while retaining some positions in the suburb controlling the enclave’s main coastal road, residents said.

However, tanks remained in other parts of northern Gaza and health officials said some people trying to return to their homes in a southern district of Gaza City had been killed by Israeli fire on Sunday. On Monday, Hamas’ armed wing claimed to have killed 15 Israeli soldiers after triggering an explosive minefield east of the Tuffah neighborhood in Gaza city.

Fighting in central parts of the enclave continued unabated, residents there said, with tanks pushing into al-Bureij and air strikes targeting al-Nusseirat, al-Maghazi and the southern city of Khan Younis. Strikes killed at least 10 people in al-Maghazi, and seven in a house in Deir Al-Balah, health officials said.

Hamas showed its continued ability to target Israel after more than 12 weeks of the war, launching a barrage of rocket fire at Tel Aviv overnight.

GUERRILLA AMBUSHES

Israel’s move to a new stage in the conflict comes after its initial bombardment and a ground invasion that began on Oct. 27. Air and artillery strikes have continued to pound the entire enclave during that time, leaving much of it in ruins.

With Israeli tanks and troops having overrun most of northern Gaza, while still pushing into the centre and parts of the south, Hamas is responding with guerrilla-style ambushes from tunnels and bunkers in the enclave’s narrow streets.

Hamas seized 240 hostages on Oct. 7 and Israel believes 129 are still held in Gaza after some were released during a brief truce and others killed during air strikes and rescue or escape attempts. Qatar and Egypt are seeking to negotiate a new truce and hostages deal.

Avi Dichter, a member of Israel’s security cabinet, said on Kan Radio that hostages could only be freed by putting “massive” pressure on Hamas and allied groups. “Without Hamas’ terrorist infrastructure being destroyed and its governance capabilities toppled, the war will not end,” he said.

On Saturday Israeli Prime Minister Benjamin Netanyahu said the country must retake control of Gaza’s border with Egypt, an area now crammed with civilians who have fled the carnage across the rest of the enclave.

Retaking the border could also constitute a de facto reversal of Israel’s 2005 withdrawal from Gaza, raising new questions over the future of the enclave and prospects for a Palestinian state.

Washington said Israel should allow a Palestinian government to control Gaza when the conflict is over.

In the Israeli-occupied West Bank, 2023 was the deadliest year on record for Palestinians with 307 killed since the war in Gaza began on Oct. 7, the U.N. said.

© Reuters. Bitcoin Miners Smash Records With $1.51B Monthly Revenue; How Will It Impact BTC Price?

U.Today – In the latest development, Bitcoin (BTC) miners have reported unprecedented monthly revenue of $1.51 billion in December 2023. This astronomical figure, by crypto analyst and YouTuber Sumit Kapoor via X (formerly Twitter), surpasses the previous record set in May, where miners earned $919.22 million, including $125.92 million from on-chain fees.

The surge in monthly revenue is attributed to the miners’ relentless efforts in discovering blocks and verifying transactions on the Bitcoin blockchain. Kapoor highlighted that the $1.51 billion includes an impressive $324.83 million earned from on-chain fees alone, showcasing the growing importance of transaction fees in the overall revenue generated by Bitcoin miners.

Jameson Lopp, a renowned software engineer and advocate for Bitcoin, provided into the surge in transaction fees. According to his tweet, transaction fees collected by Bitcoin miners averaged nearly $2 million per day throughout 2023, marking a staggering 400% increase compared to the previous year. This substantial growth in transaction fees emphasizes the robustness and increasing demand for Bitcoin transactions.

Bitcoin price reaction

The news of miners smashing revenue records has sparked significant interest and speculation within the cryptocurrency community. Analysts and enthusiasts are now closely monitoring the potential impact of this unprecedented revenue on the price of Bitcoin itself. As of the latest market data, the current price of Bitcoin stands at $42,637, reflecting a modest increase of 0.22% in the last 24 hours.

Over the past year, Bitcoin has experienced an impressive surge, with its value soaring by 157.50%. The over the year, coupled with the record-breaking monthly revenue for miners, has stirred discussions on the potential correlation between mining revenue and the Bitcoin price.

Market analysts and experts are debating whether the surge in mining revenue could translate into a for Bitcoin, potentially driving the cryptocurrency to new all-time highs. Bitcoin’s decentralized nature and limited supply have historically been key drivers of its value. The increased revenue for miners may further enhance the cryptocurrency’s attractiveness, especially as institutional interest continues to grow.

Investors and enthusiasts are eagerly awaiting further developments, as the cryptocurrency market remains dynamic and subject to rapid shifts. The record-breaking monthly revenue for Bitcoin miners undoubtedly adds a new layer of intrigue and anticipation to the ongoing narrative surrounding the world’s leading cryptocurrency.

This article was originally published on U.Today

© Reuters. FILE PHOTO: A ship docks at Keppel terminal in Singapore November 17, 2020. REUTERS/Edgar Su/File Photo

By Xinghui Kok

SINGAPORE (Reuters) -Singapore’s economy grew 2.8% in the fourth quarter year-on-year, preliminary government data showed on Tuesday, faster than some economists expected and helped by improvements in construction and manufacturing.

The fourth quarter growth in gross domestic product (GDP) was faster than the 1% expansion in the third quarter of 2023.

For the full year of 2023, Singapore’s economy grew 1.2%, moderating from the 3.6% growth in 2022.

Both OCBC economist Selena Ling and Maybank economist Chua Hak Bin said the year-on-year growth was better than they had anticipated in the fourth quarter. Ling was expecting a 1.8% expansion while Chua was looking at 2.5%.

“Green shoots are sprouting in exports and manufacturing, brightening the outlook for 2024,” said Maybank’s Chua, who expects GDP growth of 2.2% in 2024.

OCBC’s Ling forecast range for 2024 is 1-3%, in line with the trade ministry’s projection.

“The key question is how much of a pickup in growth momentum we will have this year given the current uncertainties over whether the U.S. will escape a recession, and if or when the Fed will cut rates, and how geopolitics will play out with U.S and other elections,” she said.

On a quarter-on-quarter seasonally adjusted basis, GDP expanded 1.7% in the October to December period, extending the 1.3% expansion in the third quarter.

Monetary policy is due for review no later than January 29, said the central bank on Tuesday. The Monetary Authority of Singapore (MAS) had increased the frequency of reviews from twice a year to quarterly starting in 2024.

In October, the MAS left policy settings unchanged as inflation in the city-state moderated.

Singapore’s core inflation slowed to 3.2% in November last year from a peak of 5.5% in January and February.

© Reuters. FILE PHOTO: Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

SINGAPORE (Reuters) -In recent months, China has sought to stabilise the yuan by orchestrating buying by state banks and giving market guidance to bankers.

The strategy of moral suasion marks a sharp break from Beijing’s approach the last time the currency was on the ropes, in 2015.

Back then, the People’s Bank of China (PBOC) resorted to official intervention as the central bank burned $1 trillion in reserves to shore it up.

This year, as China’s economy wobbled and money left the country, the PBOC took a starkly different approach, defending the currency by signalling to markets what kind of selling it would and would not tolerate.

Interviews with 28 market participants show at least two dozen cases where regulators closely and frequently steered market participants through a range of co-ordinated actions this year to resist strong downward pressure on the yuan.

The PBOC and State Administration of Foreign Exchange, the currency regulator, did not respond to Reuters’ faxed questions about its approach. PBOC governor Pan Gongsheng has previously said regulators would prevent exchange rate overshooting risks and maintain stable FX market operations.

The strategy market participants and analysts described to Reuters has prevented a destabilising yuan slide.

However, they told Reuters that it has also chilled large parts of China’s foreign exchange market, crashing trading volumes and raising questions about the yuan’s chances of becoming a global reserve currency.

“The circumstances … at the moment are considerably more complicated because there are both domestic as well as global macroeconomic factors,” said Eswar Prasad, Tolani senior professor of international trade policy at Cornell University.

He described the PBOC’s use of “non-standard measures to intervene in foreign exchange markets” as a form of “triage” to stop the yuan falling too rapidly.

As the currency of the world’s second-largest economy and biggest exporter, the yuan’s value determines the price of goods around the world and trillions of dollars in capital flows. It also serves as a barometer of China’s challenges.

A Chinese forex regulator, speaking on condition of anonymity, said the currency’s value was ultimately determined by fundamentals and currently a product of how “effectively China can thwart decoupling”, a reference to Western efforts to reduce economic reliance on China.

Ten traders interviewed by Reuters said key warnings first emerged in June when the PBOC’s daily yuan guidance that determines its trading range for the day, known as the midpoint, started to diverge from market expectations.

In theory, the midpoint is based on contributions from 14 banks and referenced to the previous day’s trade and overnight moves, which should make it easy for markets to predict.

By August, however, the midpoint’s yawning deviation from trader estimates was read by the traders interviewed by Reuters as a signal the PBOC did not want the currency to go where markets were pushing it.

AGAINST THE TIDE

Managing a currency can be a white-knuckle ride. In 2015, China cut the yuan’s midpoint by 2%, with the PBOC saying it was a one-off move to bring the trading band in line with market pricing. Fearing further devaluations, however, investors sold Chinese assets, sending stocks and the yuan into freefall and forcing the bank to use reserves to stabilise the currency. This time, efforts to manage the yuan involved more targeted and specific directions to banks and currency market participants, according to the traders who spoke to Reuters.

For example, whenever momentum seemed against the yuan, state-owned banks quietly became buyers, the traders said. This generally happened around psychologically significant currency levels and seemed aimed at containing volatility. Those traders told Reuters that in late May they noticed state banks stepping in with two days of yuan buying after the currency hit its lowest then for 2023.

Similarly, state banks’ yuan buying intensified in December after Moody’s announced a cut in China’s ratings outlook. Individual traders were not able to estimate the size of buying nor was Reuters able to confirm whether such trading was directed by the central bank.

Official data shows no evidence the PBOC sold dollars outright as it did in 2015. However, market participants noted banks sold dollars acquired by currency swaps, which would not be seen in such data.

At the same time, smaller lenders have experienced increased “window guidance” or unofficial, verbal advice from regulators to have both banks and their clients reduce dollar holdings, according to six trader and banking sources.

In June and July, the China FX Market Self-Regulatory Framework, which is overseen by the PBOC, told major state-owned banks to cut dollar deposit rates, which would encourage exporters and households to switch dollar receipts into yuan, market watchers said.

WORKING THE PHONES The pressure on bankers has mirrored pressure on the yuan, which is down almost 2.8% against the dollar this year even though the benchmark dollar index lost 2.2%.

On Sept. 8, the yuan struck a 16-year low. A few days later, managers at eight major banks were summoned to Beijing to meet PBOC officials, according to five banking sources, two of whom attended the meeting. They were told companies wishing to buy more than $50 million would need approval from the PBOC, three sources said. Bankers were also told they needed to cut spot trading, stagger dollar buying and not hold net long dollar positions at the end of any trading day, two sources said.

Authorities also focused on monitoring exporters’ foreign exchange buying and selling plans given their large currency holdings and outsized sway on yuan moves.

In recent months, regulators have called banks and queried them with surveys on a near weekly basis on the intentions of exporter customers, according to officials at five banks who spoke to Reuters. Such calls had previously been sporadic and surveys sent only monthly.

The volume of yuan traded onshore slumped 73% from August’s level to a record low of 1.85 trillion yuan in October. That shows China’s bankers have heeded the call to reduce trading, particularly dollar buying, but also that the central bank’s efforts are chilling the market, analysts say.For now, however, the currency appears to have stabilised comfortably above September’s 16-year low.

Market players are unwilling to directly fight the PBOC — but nor are they willing to acquiesce entirely.

“I’ve been closely monitoring dollar prices this year, as I have dollar payments coming in every few weeks,” said one Shanghai-based exporter of electronic components surnamed Zhu. “The daily question has been: ‘Do I need to save them, or convert them back into yuan?'” So far, she has saved them on expectations of a better yuan price for her dollars.