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South Korea’s Education Ministry Gear Up For Full School Attendance

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Middle schools in the Seoul area have started taking more students in class as their capacity limits have been upped from one-third to two-thirds, despite the capital remaining under level 2 social distancing measures.

The Education Ministry is aiming for full attendance at all schools starting from the second semester in August.

The change affects middle schools in the capital region the most as elementary and high schools had exemptions that allowed more students back.

Vocational high schools are now at 100 percent capacity.

Seoul City is sending extra virus prevention officers as well as nurses to schools to accommodate a safe expansion.

South African Government Sells 51% Stake In SAA To Consortium

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The South African government is selling a 51% stake in South African Airways (SAA) to Takatso consortium, which will initially commit more than 3 billion rand ($221 million) to give the struggling airline a new lease of life. Emer McCarthy reports.

South African Airways has been thrown a lifeline.

The South African government is selling a majority stake in SAA to Takatso consortium, which will initially commit more than 3 billion rand – or $221 million – to give the struggling airline a new lease of life.

SAA has been under a form of bankruptcy protection since December 2019.

But its fortunes worsened during the global health crisis and all its operations were mothballed last September when funds ran low.

The airline is one of a handful of South African state companies that depend on government bailouts, placing the national budget under huge strain at a time of rapidly rising debt.

Public enterprises minister Pravin Gordhan said the consortium includes pan-African investor group Harith Global Partners and aviation group Global Aviation.

Takatso Chief Executive Gidon Novick said that an IPO for the airline is unlikely to happen within the next three years, and SAA would first need to become profitable.

Novick said Takatso would seek to relaunch SAA as soon as possible, prioritizing domestic services, first followed by regional destinations.

International long-haul routes would follow but would be selected carefully, and SAA would also work to forge partnerships with major carriers.

The South African government will have a “golden share” of 33% of the entity’s voting rights and certain areas of national interest.

Reactions Trail CBN Digital Currency Launch By End Of 2021

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The Central Bank of Nigeria (CBN) recently in Lagos said that its digital currency might be launched by the end of 2021.

Rakiya Mohammed, an Information Technology Specialist with CBN, made the disclosure at an online news briefing at the end of Bankers Committee meeting.

According to her, the apex bank has for over two years been exploring the technology and has made tremendous progress.

“Before the end of the year, the Central Bank will be making special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” she said.

Mohammed said when eventually operational, the currency would complement cash notes.

According to Muhammed, another reason the apex bank plans to come up with digital currency is to make remittances travel easier from abroad to Nigeria.

Mix reactions have trailed an announcement by the Apex bank on the ban of crypto currency transactions, however the central bank has debunked misconception by Nigerian who decried the move.

The rules around cryptocurrencies in Nigeria have become clear as a senior official from the Central Bank of Nigeria (CBN) clarified that digital currencies are not banned in the country.

According to local publication TodayNG, Adamu Lamtek, the Deputy Governor of the monetary regulator, said that the CBN did not ban Nigerians from buying, selling or holding cryptocurrencies but protected the banking sector from the activities of cryptocurrencies.

Additionally, he clarified that the central bank did not place any restrictions on cryptocurrencies in general and is not discouraging people from trading them.

“What we have just done was to prohibit transactions on cryptocurrencies in the banking sector,” the deputy governor said.

Global Markets-Stocks Wait At Record Peaks For Fed; Oil Marches Higher

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Global shares held near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week.

Japan’s Nikkei rose 0.7% while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%. Activity was limited with the region’s largest markets – China, Hong Kong and Australia – closed for a holiday.

Globally, markets were basking in the prospect of a broadening economic recovery from the coronavirus pandemic and anticipation of continuity in dovish monetary policy from the U.S. Federal Reserve. Oil stood at multi-year highs.

The MSCI world equity index, the U.S. S&P 500 and the pan-regional STOXX Europe 600 index all closed at record highs on Friday. EuroSTOXX 50 futures rose 0.2% on Monday. S&P 500 futures nudged up 0.1%

The rally came even as U.S. inflation data on Thursday exceeded market expectations and amid surging factory prices in China – both of which investors appeared to regard as temporary or manageable.

“Strip used cars, hotels, and other leisure-related reopening plays out of the (U.S.) CPI, and I am not sure the inflation outlook is the end of days many are predicting,” said OANDA analyst Jeffrey Halley in a note on Monday.

“Yes, PPIs are racing higher, but will that be reflected in higher consumer goods prices from China? I am not so sure on past experience…the honest answer is that we just don’t know yet. Certainly, that’s what the U.S. bond market is saying to us.”

Ample funds are finding their way to bonds, where the yield on 10-year U.S. Treasuries stood at 1.4602% ahead of the Fed’s policy meeting this week, having fallen to a three-month low of 1.428% on Friday.

Japan Calls Off Talks With South Korea

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Japan unilaterally called off the agreed-upon talks between South Korean President Moon Jae-in and Japanese Prime Minister Yoshihide Suga during the G7 Summit, blaming Seoul for the regular military exercise it’s holding this week in defense of the Dokdo islets.

Sources say the two countries had agreed before at the working level to hold a “pull-aside” meeting in Cornwall.

It often claims falsely that Dokdo is Japanese territory, and the defense exercises are held twice every year.

But it’s unusual and considered senseless to cancel a discussion planned between the leaders of the two countries at such a high-profile venue.

“Suga seems to be trying to maintain his domestic approval ratings, which have been falling because of his mismanagement of the pandemic, by refusing to get along with South Korea and turning his back on Seoul.”

That lines up with what Suga said himself to reporters that a summit with President Moon is off the table until the issue of Dokdo is in his words “resolved.”

Seoul has tried to set up the two leaders’ first in-person meeting to settle the long-simmering issues of Japan’s system of wartime forced labor and sexual slavery.

Rounding up his Cornwall trip in a social media post Sunday, Moon called the brief exchange of greetings with Suga a “precious occasion which may serve as a new beginning in terms of South Korea-Japan relations.”

But he further expressed regret that the encounter with Suga did not lead to talks.

US Economy Update: Will The Fed Change Its Inflation Tune?

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All eyes and ears are on the Federal Reserve in the coming week as policymakers meet amid a surge in inflation and an economic rebound that’s gathering steam. Jerome Powell, the Federal Reserve’s Chief June meeting tops Business Calendar for the new week.

The Federal Reserve will meet on Tuesday and Wednesday amid signs that the economic rebound is gaining traction, and inflation is showing little sign of slowing down.

The Fed’s favorite inflation reading recently posted the biggest year-over-year surge since 1992.

Some Fed watchers want Powell to use Wednesday’s press conference to tweak his message to Wall Street.

But Gerber Kawasaki CEO Ross Gerber isn’t one of them.

“I think the Fed should be very, very careful on the short term about what they say and should be really focused on letting things run like they’ve talked about for at least the next six months. And I do think that’s a discussion we’ll need to have around Fall about stimulus and pulling back, like the bond purchases first.”

Two pieces of key economic data are released on Tuesday, just as the Federal Reserve starts its meeting.

The Producer Price Index for May comes fresh on the heels of the biggest 12-month jump in the Consumer Price Index in over a dozen years.

Economists polled by Reuters expect the PPI to show a month-to-month rise of 0.6 percent. But it’s the year-over-year number that will matter most. That’s expected to show a surge of 6.4% after April saw the biggest rise in more than a decade.

And official retail sales figures are also released on Tuesday. Economists forecast a drop of 0.4 percent for May after a flat reading the month before.

International issues take focus on Wednesday. That’s when U.S. President Joe Biden meets with Russian President Vladimir Putin in Geneva, Switzerland.

Biden is expected to bring up the numerous cyber hacks against U.S. interests that intelligence officials say are coming from Russia’s borders.

Brexit Tensions Overshadow Final Day Of G7

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Britain's Prime Minister Boris Johnson and France's President Emmanuel Macron attend a bilateral meeting during G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. Stefan Rousseau/Pool via REUTERS

Growing tensions between Britain and the European Union threatened to overshadow the Group of Seven summit’s conclusion on Sunday, with London accusing France of “offensive” remarks that Northern Ireland was not part of the United Kingdom.

Tensions over Brexit threatened to overshadow the final day of the G7 Summit.

London accused France on Sunday of offensive remarks that Northern Ireland was not part of the UK.

The conflict relates to the Northern Ireland protocol in the Brexit deal signed by Prime Minister Boris Johnson.

That protocol essentially kept the province in the EU’s customs union to avoid a hard border between Ireland and Northern Ireland.

But it also meant the need for trade checks across the Irish Sea to protect the integrity of the EU’s single market.

Something the UK government has resisted implementing.

At his closing news conference, Johnson attempted to play down the row but reasserted his position.

“What I’m saying is that we will do whatever it takes to protect the territorial integrity of the UK. But actually what happened at this summit was that there was a colossal amount of work on subjects that had absolutely nothing to do with Brexit.”

During tense talks on Saturday, Johnson asked French President Emmanual Macron how he would feel if Toulouse sausage makers could not sell their products in Paris markets, echoing London’s accusation that the EU is preventing sales of British chilled meats in Northern Ireland.

British media reported that Macron responded by inaccurately saying Northern Ireland was not part of the United Kingdom.

Later, Macron said he respected British sovereignty but that trade rules had to be honored.

He called on the UK to implement what was collectively agreed months ago:

“What I have to say to Prime Minister Boris Johnson, I tell him and I tell you now: France has never allowed itself to question British sovereignty, the British territorial integrity and the respect of that sovereignty.”

Northern Ireland remains deeply split along sectarian lines.

Many Catholic nationalists aspire to unification with Ireland while Protestant unionists want to stay in the UK.

Unionists have been angered by the protocol which they say cuts them off from the rest of Britain.

That anger spilled out into the streets in April, when Belfast saw some of its worst violence in years.

South Korea To Hold Dokdo Defense Drill

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South Korea is set to stage its biannual defense drill on and around Dokdo this week.

According to Sources the navy, air force and coastguard will take part in the exercise on Tuesday, which will mostly involve maritime and non-contact training.

Last year, it was scaled down due to the Covid-19 pandemic.

The drill has been conducted every six months since 1986.

Japan has been complaining over the exercise repeating its false territorial claims to South Korea’s easternmost island.

Oscar-Nominated Actor Ned Beatty Dies At 83

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US actor Ned Beatty, known for his roles in Deliverance, Superman and many other films, has died at the age of 83.

According to his manager, he died on Sunday from natural causes “surrounded by his family and loved ones”.

Born in Kentucky in 1937, Beatty was Oscar-nominated in 1977 for playing a corporate CEO in Network, a role he filmed in a single day.

He also appeared in All the President’s Men and was heard as menacing teddy bear Lotso on Toy Story 3.

Lee Unkrich, director of that 2010 animated film, said it had been “a joy and an incredible honour” to work with him.

Beatty made his screen debut in 1972’s Deliverance, in which his character is brutally assaulted during a canoeing expedition.

He went on to appear in a number of films with that movie’s star, Burt Reynolds, and was also seen in Robert Altman’s Nashville.

In 1978’s Superman he was seen as Lex Luthor’s bumbling assistant Otis, a character that returned in 1980’s Superman II.

His other roles included playing Irish singer Josef Locke in Hear My Song, for which he was nominated for a Golden Globe in 1992.

A prolific actor known for his stocky build, Beatty believed those in his profession should never turn down work when it was offered.

“I worked a day on Network and got an Oscar nomination for it,” he once observed, though having an extensive number of credits did have a downside.

“For people like me, there’s a lot of ‘I know you! I know you! What have I seen you in?'” he remarked in 1992.

Once nicknamed “the busiest actor in Hollywood”, his final film before retirement was 2013’s Baggage Claim.

Beatty – who was not related to his namesake Warren – is survived by his widow Sandra Johnson and the eight children he had with his previous three wives.

Nashville will be seen in cinemas again later this month as part of a BFI retrospective of Robert Altman’s work.

Iran Pays Off UN Contributions In Arrears Using Frozen Assets

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In this Saturday, April 4, 2015 photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. Should Iran reach a final nuclear accord with world powers that loosens sanctions, the economic opening could give moderates a major boost ahead of crucial parliamentary elections next February. (AP Photo/Vahid Salemi)

Iran has paid off its UN contributions in arrears worth some 16 million U.S. dollars using part of its frozen assets in South Korea.

Diplomatic sources say the IBK, a South Korean bank, was able to send the money following a license granted by the U.S. Treasury Department.

Over 7 billion dollars worth of Iranian assets are said to have been frozen in South Korean banks following U.S. sanctions on Tehran.

The UN confirmed on Friday that Iran regained its vote in the General Assembly which was suspended because of the dues in arrears.