Typhoon batters Hong Kong and south China, three dead in Macau

Typhoon batters Hong Kong and south China, three dead in Macau

By James Pomfret and Anne Marie Roantree

HONG KONG (Reuters) – Typhoon Hato, a maximum category 10 storm, slammed into Hong Kong on Wednesday lashing the Asian financial hub with wind and rain that uprooted trees and forced most businesses to close, while in some places big waves flooded seaside streets.

There were reports of 34 people injured in Hong Kong while in the city of Macau, across the Pearl River estuary, three people were killed, authorities there said.

In Hong Kong, more than 450 flights were canceled, financial markets suspended and schools closed as Hato bore down, the first category 10 storm to hit the city since 2012.

“I’ve never seen one like this,” Garrett Quigley, a longtime resident of Lantau island to the west of the city, said of the storm.

“Cars are half submerged and roads are impassable with flooding and huge trees down. It’s crazy.”

Many skyscrapers in the usually teeming streets of Hong Kong were empty and dark as office workers stayed at home.

Hato, that means “sky pigeon” in Japanese, churned up Hong Kong’s Victoria Harbor and triggered large swells and big waves on some of the city’s most popular beaches, with serious flooding in low-lying areas.

In residential districts such as Heng Fa Chuen on densely populated Hong Kong island, waves smashed against the sides of oceanfront buildings and surged over a promenade, sweeping away walls and benches and swamping vehicles parked nearby.

Construction cranes swayed at the tops of skyscrapers, windows imploded and nearly 200 trees were uprooted, while some people used canoes to venture out into flooded streets.

Authorities downgraded the storm to a category three by late-afternoon with government services, the courts, financial markets and companies set to resume normal business on Thursday.

HIGH SEAS

The storm also caused a power blackout across most of the gambling hub of Macau for about two hours, residents said, with disruption to mobile phone and internet networks. There was severe flooding on the streets, with some cars almost completely submerged, and the water supply was affected in some districts. The three men who died included a 45-year-old Chinese tourist who was hit by a heavy truck, according to a government statement.

The former Portuguese colony’s casinos, however, had backup power, two casino executives told Reuters.

The storm also made landfall in China’s Guangdong province, in Zhuhai city adjacent to Macau, Chinese state news agency Xinhua reported.

Numerous flights and trains were canceled in Guangdong province, with Shenzhen’s International Airport particularly badly hit.

Thousands of residents along the Chinese coast were evacuated and fishing vessels were called back to port.

Maximum winds near Hato’s center were recorded at a destructive 155 kph (95 mph) as it continued to move west across Guangdong in the general direction of Hainan island.

A senior scientific officer for the Hong Kong observatory warned that sea levels could rise several meters in some places, with the government issuing flood alerts and opening 27 shelters across the city.

Trading in Hong Kong’s financial markets was halted for the day, the stock exchange said. Typhoon Nida in August last year was the last storm to close the exchange for the whole day.

The city’s flagship carrier, Cathay Pacific, and Hong Kong Airlines said the majority of their flights to and from Hong Kong between 2200 GMT Tuesday and 0900 GMT Wednesday would be canceled.

Other transport services, including ferries to Macau and outlying islands in Hong Kong, were suspended.

(Additional reporting by Farah Master and Stefanie McIntyre; Editing by Paul Tait, Michael Perry and Jacqueline Wong)

Floods, landslides kill more than 800 people across South Asia

People use a boat as they try to move to safer places along a flooded street in West Midnapore district, in West Bengal

By Ruma Paul and Zarir Husain

DHAKA/GUWAHATI, India (Reuters) – Widespread floods have killed more than 800 people and displaced over a million in India, Nepal and Bangladesh, with aid workers warning of severe food shortages and water-borne diseases as rains continue to lash the affected areas.

Seasonal monsoon rains, a lifeline for farmers across South Asia, typically cause loss of life and property every year between July and September, but officials say this year’s flooding is the worst in several years.

At least 115 people have died and more than 5.7 million are affected in Bangladesh as floods submerged more than a third of the low-lying and densely populated country.

“The water level has gradually dropped. The flood situation will improve if it does not rain upstream any further,” Sazzad Hossain, executive engineer of Bangladesh’s Flood Forecasting and Warning Center, told Reuters.

Reaz Ahmed, the director general of Bangladesh’s Disaster Management Department, said there are rising concerns about food shortages and the spread of disease.

“With the flood waters receding, there is a possibility of an epidemic. We fear the outbreak of water-borne diseases if clean water is not ensured soon,” Ahmed told Reuters.

With some rivers running above danger levels, 225 bridges have been damaged in Bangladesh, disrupting food and medicine supplies to people displaced from their homes, said aid workers.

In the Indian state of Assam bordering Bangladesh, at least 180 people have been killed in the past few weeks.

“With the floods washing away everything… there is not even a trace of our small thatched hut,” said Lakshmi Das, a mother of three, living in Kaliabor, Assam.

“We do not even have a second pair of clothes to wear. The government is not providing any aid.”

Villagers use a boat as they row past partially submerged houses at a flood-affected village in Morigaon district in Assam,

Villagers use a boat as they row past partially submerged houses at a flood-affected village in Morigaon district in Assam, July 14, 2017. REUTERS/Anuwar Hazarika

Torrential rains have also hit the northeastern states of Arunachal Pradesh, Nagaland and Manipur, killing at least 30 people.

Flood waters of the Brahmaputra river had earlier in July submerged the Kaziranga wildlife sanctuary in Assam. The floods have since killed more than 350 animals, including 24 endangered one-horned rhinoceros, five elephants and a tiger.

“We are facing a wildlife disaster,” Assam Forest Minister Pramila Rani Brahma told Reuters.

Meanwhile, in the eastern state of Bihar, at least 253 people lost their lives where incessant rains washed away crops, destroyed roads and disrupted power supplies.

A senior official in Bihar’s disaster management department, Anirudh Kumar, said nearly half a million people have been provided with shelter.

In Nepal, 141 people were confirmed dead, while thousands of survivors returned to their semi-destroyed homes.

“Their homes are in a state of total destruction,” said Francis Markus from International Federation of Red Cross and Red Crescent Societies.

 

(Reporting by Gopal Sharma in Kathmandu, Zarir Husain in Assam, Jatindra Das in Bhubaneswar, Ruma Paul in Dhaka; Writing by Rupam Jain in New Delhi,; Editing by Tommy Wilkes and Sherry Jacob-Phillips)

 

Philippines says China agrees on no new expansion in South China Sea

FILE PHOTO: A Filipino soldier looks out from a boat in Philippine occupied Thitu island in disputed South China Sea, April 21, 2017. REUTERS/Erik De Castro

By Manuel Mogato

MANILA (Reuters) – China has assured the Philippines it will not occupy new features or territory in the South China Sea, under a new “status quo” brokered by Manila as both sides try to strengthen their relations, the Philippine defense minister said.

Philippine Foreign Secretary Alan Peter Cayetano also said the Philippines was working on a “commercial deal” with China to explore and exploit oil and gas resources in disputed areas of the South China Sea with an aim to begin drilling within a year.

The defense minister, Delfin Lorenzana, told a congressional hearing the Philippines and China had reached a “modus vivendi”, or a way to get along, in the South China Sea that prohibits new occupation of islands.

“The Chinese will not occupy new features in the South China Sea nor they are going to build structures in Scarborough Shoal,” Lorenzana told lawmakers late on Monday, referring to a prime fishing ground close to the Philippines that China blockaded from 2012 to 2016.

China claims almost the entire South China Sea, a waterway through which about $3 trillion worth of sea-borne trade passes every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have conflicting claims in the area.

Philippine President Rodrigo Duterte, who took office in June last year, has courted China and avoided rows over maritime sovereignty that dogged his predecessors, while berating traditional ally the United States over several issues.

China has built seven islands upon reefs in disputed areas, three of which, experts say, are capable of accommodating fighter jets. They have runways, radars and surface-to-air missiles which China says are for defense.

Lorenzana did not comment when lawmakers, citing reports from the military, told him five Chinese ships had showed up almost 5 km off the Philippine-held Thitu Island in the Spratly archipelago on Saturday.

The military’s public affairs chief, Colonel Edgard Arevalo, declined to comment until the armed forces had the “whole picture on the current situation”.

China’s foreign ministry did not immediately respond to a request for comment.

‘CONTRARY TO CONSTITUTION’

Cayetano assured lawmakers on Tuesday any energy deal with China would not violate the constitution and would conform to a 60-40 percent revenue sharing, weighted towards the Philippines.

“We can come up with a commercial deal that is better than Malampaya in the disputed areas,” Cayetano said, referring to an existing natural gas project off Palawan island between the government and Chevron, a resource which is due to be depleted by 2024.

“How can any Filipino argue with that? … It cannot violate the constitution.”

But such an arrangement could be complex and sensitive as both countries claim the oil and gas reserves. Sharing them could be construed as legitimizing the other’s claim, or even ceding sovereignty.

The Permanent Court of Arbitration in The Hague invalidated China’s claim over most of the South China Sea in July last year. China has refused to recognize the ruling, which clarified Philippine sovereign rights to energy reserves within its 200-mile Exclusive Economic Zone (EEZ).

The Philippine energy department last month said it may resume drilling for oil and gas on the Reed Bank, which is within the Philippine EEZ, before the end of the year, offering new blocks to investors in a bidding in December.

The Philippines suspended exploration in the Reed Bank in late 2014 as it pursued the international arbitration.

Minority lawmakers Gary Alejano and Edcel Lagman opposed the plan for an energy deal saying it would be illegal.

“This is contrary to our constitution because these areas should be exclusively for Filipinos,” Lagman said.

Cayetano declined to give details of the talks and requested an executive session of congress to divulge information about the venture with a Chinese energy company, which he did not identify.

Manuel Pangilinan, chairman of Philippine oil and gas firm PXP Energy Corp, said this month any joint venture would likely be with “a company like CNOOC”, referring to the China National Offshore Oil Corp

Officials from the foreign and energy ministries have said privately any deal would likely be commercial only and both sides would keep the issue of sovereignty out of the equation to avoid complications.

(Additional reporting by Ben Blanchard in BEIJING; Editing by Martin Petty, Robert Birsel)

China set for easy ride from ASEAN on disputed South China Sea

China set for easy ride from ASEAN on disputed South China Sea

By Manuel Mogato

MANILA (Reuters) – Southeast Asian ministers meeting this week are set to avoid tackling the subject of Beijing’s arming and building of manmade South China Sea islands, preparing to endorse a framework for a code of conduct that is neither binding nor enforceable.

The Association of South East Asian Nations (ASEAN) has omitted references to China’s most controversial activities in its joint communique, a draft reviewed by Reuters shows.

In addition, a leaked blueprint for establishing an ASEAN-China code of maritime conduct does not call for it to be legally binding, or seek adherence to the United Nations Convention on the Law of the Sea (UNCLOS).

The two drafts highlight China’s growing regional clout at a time of uncertainty whether the new U.S. administration will try to check Beijing’s assertiveness in the disputed waters.

The South China Sea chapter in the latest draft communique, a negotiated text subject to changes, is a watered-down version of one issued in Laos last year.

ASEAN expressed “serious concern” in that text, and “emphasised the importance of non-militarisation and self-restraint in all activities, including land reclamation.”

But the latest text calls for avoidance of “unilateral actions in disputed features” instead.

The role of the Philippines as 2017 chair of ASEAN has helped China keep a lid on discord.

Once ASEAN’s most vocal critic of China’s conduct, the Philippines, under President Rodrigo Duterte, has put aside disputes in exchange for Chinese funding pledges of $24 billion.

ASEAN ties with the United States, under President Donald Trump, have been in flux, as questions linger over Washington’s commitment to maritime security and trade in Asia, diminishing the grouping’s bargaining power with Beijing.

A legally binding and enforceable code of conduct has been a goal for ASEAN’s claimant members – Brunei, Malaysia, the Philippines and Vietnam – since a 2002 pact to ensure freedom of navigation and overflight and leave rocks and reefs uninhabited.

That pact, the Declaration of Conduct (DOC) of Parties in the South China Sea, has been largely ignored, particularly by China, which reclaimed seven reefs and can now deploy combat planes on three, besides defense systems already in place.

Analysts and some ASEAN diplomats worry that China’s sudden support for negotiating a code of conduct is a ploy to buy time to further boost its military capability.

“We could have done more to push China to agree to a much stronger document, holding claimant states more accountable,” said one ASEAN diplomat.

The agreed two-page framework is broad and leaves wide scope for disagreement, urging a commitment to the “purposes and principles” of UNCLOS, for example, rather than adherence.

The framework papers over the big differences between ASEAN nations and China, said Patrick Cronin of the Center for a New American Security.

“Optimists will see this non-binding agreement as a small step forward, allowing habits of cooperation to develop, despite differences,” he said.

“Pessimists will see this as a gambit favorable to a China determined to make the majority of the South China Sea its domestic lake.”

CONSENSUS CONSTRAINTS

Diplomats say ASEAN’s requirement of consensus in decision-making allows China to pressure some members to disagree with proposals it dislikes. China has long denied interfering.

A separate ASEAN document, dated May and seen by Reuters, shows that Vietnam pushed for stronger, more specific text.

Vietnam sought mention of respect for “sovereignty, sovereign rights and jurisdiction” not only in accordance with international law, but more specifically, UNCLOS.

Sovereign rights cover entitlements to fish and extract natural resources.

Experts say the uncertain future U.S. commitment to Asia leaves Vietnam in the most exposed position, as it has competing claims with China and relies on imports from its neighbor.

Opposition by China has repeatedly disrupted Vietnam’s efforts to exploit offshore energy reserves, most recently in an area overlapping what Beijing considers its oil concessions.

The code of conduct framework was useful to build confidence, said Philippine security expert Rommel Banlaoi, but was not enough to manage and prevent conflict in the South China Sea.

China claims almost the entire South China Sea, through which about $5 trillion in goods pass every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

(Writing by Martin Petty; Editing by Clarence Fernandez)

Asserting sovereignty, Indonesia renames part of South China Sea

Indonesia's Deputy Minister for Maritime Affairs Arif Havas Oegroseno points at the location of North Natuna Sea on a new map of Indonesia during talks with reporters in Jakarta, Indonesia, July 14, 2017. REUTERS/Beawiharta

By Tom Allard and Bernadette Christina Munthe

JAKARTA (Reuters) – Indonesia renamed the northern reaches of its exclusive economic zone in the South China Sea as the North Natuna Sea on Friday, the latest act of resistance by Southeast Asian nations to China’s territorial ambitions in the maritime region.

Seen by analysts as an assertion of Indonesian sovereignty, part of the renamed sea is claimed by China under its contentious maritime boundary, known as the ‘nine-dash line’, that encompasses most of the resource-rich sea.

Several Southeast Asian states dispute China’s territorial claims and are competing with China to exploit the South China Sea’s abundant hydrocarbon and fishing resources. China has raised the ante by deploying military assets on artificial islands constructed on shoals and reefs in disputed parts of the sea.

Indonesia insists it’s a non-claimant state in the South China Sea dispute but has clashed with China over fishing rights around the Natuna Islands, detaining Chinese fishermen and expanding its military presence in the area over the past 18 months.

Unveiling the new official map, the deputy of maritime sovereignty at the Ministry of Maritime Affairs, Arif Havas Oegroseno, noted the northern side of its exclusive economic zone was the site of oil and gas activity.

“We want to update the naming of the sea [and] we gave a new name in line with the usual practice: the North Natuna Sea,” he told reporters.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said he didn’t know anything about the details of the issue, but said the name South China Sea had broad international recognition and clear geographic limits.

“Certain countries’ so-called renaming is totally meaningless,” he told a daily news briefing. “We hope the relevant country can meet China halfway and properly maintain the present good situation in the South China Sea region, which has not come easily.”

‘CLEAR MESSAGE’

I Made Andi Arsana, an expert on the Law of the Sea from Indonesia’s Universitas Gadjah Mada, said the renaming carried no legal force but was a political and diplomatic statement.

“It will be seen as a big step by Indonesia to state its sovereignty,” he told Reuters. “It will send a clear message, both to the Indonesian people and diplomatically speaking.”

Euan Graham, director of the international security program at the Lowy Institute, said Indonesia’s action followed renewed resistance to Chinese territorial claims by other Southeast Asian states.

“This will be noticed in Beijing,” he said.

Last week, Vietnam extended an Indian oil concession off its coast while a joint venture led by state-owned PetroVietnam commenced drilling further south. China has a territorial claim in both areas.

Meanwhile, the director of the Philippines Energy Resource Development Bureau, Ismael Ocampo, said on Wednesday that the country could lift a suspension on oil and gas drilling on the Reed Bank by December. The underwater mountain, lying 85 nautical miles off the Philippines coast, is also claimed by China.

Exploration activity was suspended in late 2014 as the Philippines sought an international ruling on China’s territorial claim. The Philippines won the case in the Permanent Court of Arbitration in the Hague one year ago.

China refused to recognize the decision. Philippines President Rodrigo Duterte, who took office on June 30 last year, expressed reluctance about enforcing the decision at the time, as he sought deeper diplomatic and economic ties with China.

However, the Philippines lately has become more assertive about its sovereignty.

More than two dozen oil, gas and coal blocks, including additional areas in disputed waters, may be offered during the December bidding, Ocampo said on Wednesday.

(Reporting by Tom Allard and Bernadette Christina Munthe; Additional reporting by Ben Blanchard in Beijing; Editing by Bill Tarrant)

Putin says U.S. missile systems in Alaska, South Korea challenge Russia

Russian President Vladimir Putin speaks during a meeting with representatives of international news agencies in St. Petersburg, Russia, June 1, 2017.

By Denis Pinchuk and Andrew Osborn

ST PETERSBURG/MOSCOW (Reuters) – Russian President Vladimir Putin said on Thursday that elements of a U.S. anti-missile system in Alaska and South Korea were a challenge to Russia and that Moscow had no choice but to build up its own forces in response.

Putin, speaking at an economic forum in St Petersburg, said Russia could not stand idly by and watch while others increased their military capabilities along its borders in the Far East in the same way as he said had been done in Europe.

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei

Participants attend a session of the St. Petersburg International Economic Forum (SPIEF), Russia, June 1, 2017. REUTERS/Sergei Karpukhin

He said Moscow was particularly alarmed by the deployment of the U.S. THAAD anti-missile system to South Korea to counter a North Korean missile threat and to reported U.S. plans to beef up Fort Greely in Alaska, a launch site for anti-ballistic missiles.

“This destroys the strategic balance in the world,” Putin told a meeting with international media, the start of which was broadcast on state TV.

“What is happening is a very serious and alarming process. In Alaska, and now in South Korea, elements of the anti-missile defence system are emerging. Should we just stand idly by and watch this? Of course not. We are thinking about how to respond to these challenges. This is a challenge for us.”

Washington was using North Korea as a pretext to expand its military infrastructure in Asia in the same way it had used Iran as a pretext to develop a missile shield in Europe, charged Putin.

RUSSIAN RESPONSE

Putin said the Kurile Islands, a chain of islands in the Far East where Moscow and Tokyo have rival territorial claims, were “quite a convenient place” to deploy Russian military hardware to respond to such threats.

Defence Minister Sergei Shoigu said last year Russia planned to deploy some of its newest missile defence systems and drones to the islands, part of a drive to rearm military units already stationed there. He has also spoken of Russia building a military base there.

“I don’t agree that we are unilaterally starting to militarize these islands,” said Putin. “It is simply a forced response to what is happening in the region.” Any talk of demilitarizing the islands could only occur once tensions in the entire region had been reduced, he said.

Tokyo and Moscow have long been locked in talks over the contested islands, known as the Northern Territories in Japan. Putin said Russia was alive to the danger that Japan might allow U.S. troops to deploy there if it struck a deal to hand over some of the islands to Tokyo’s jurisdiction.

“Such a possibility exists,” said Putin.

Russia did not want to worsen already poor relations with Washington by fueling what he described as an arms race, but Putin said the United States was still consumed by what he called an anti-Russian campaign.

“How will the situation develop? We don’t know,” said Putin.

(Additional reporting by Dmitry Solovyov and Maria Kiselyova; Writing by Andrew Osborn; Editing by Alexander Winning)

‘War on sugar’ takes toll; Asia, Brazil struggle to make up shortfall

FILE PHOTO: A worker checks the flow of sugar inside the Gandavi sugar factory, 165 km (102 miles) south of Ahmedabad, India, March 26, 2012. REUTERS/Amit Dave/File Photo

By Ana Ionova and Chris Prentice

LONDON/NEW YORK (Reuters) – The “war on sugar” being waged by governments and consumers to combat public health emergencies like diabetes is slowing growth in global demand, which along with other factors could signal a fundamental shift in consumption ahead.

Consumption may grow at its slowest pace in seven years in 2017/18, according to analyst group Platts Kingsman. It forecasts a rise of 1.04 percent, nearly half the average growth of about 2 percent per year over the last decade.

“Consumption is generally stagnating in developed countries,” Tom McNeill, director at commodity analyst group Green Pool, told Reuters.

Falling consumption in more health-conscious markets has been exacerbated by higher prices and the use of alternatives like high-fructose corn syrup in developing countries that might otherwise have made up the shortfall.

Combined with weaker demand from food and beverage makers globally, this could represent a “step-change lower” – or a fundamental shift – in global consumption, according to Tropical Research Services.

“So, it may be that the real long-term ‘trend’ rate of global sugar demand growth has changed and is now lower,” the group said in a May 7 report.

At least 17 countries and a number of U.S. cities have added an extra tax on sweetened beverages. Another 11 nations are implementing or considering similar levies.

Many are going further: France has coupled a tax with measures like banning vending machines in schools. Chile last year introduced black stop-sign warning labels on foods high in sugar, salt and fat.

Mexico is another example. With one in three adults in the country affected by obesity, the country slapped a levy on sweetened soft drinks in 2014.

Although the impact on health will take years to assess, early data shows consumption of soft drinks in Mexico has fallen by 12 percent since the tax was introduced.

“There is an increasing understanding for the need to control intake of free sugars, in public policy and in culture in general,” said Francesco Branca, director of nutrition for health and development at the World Health Organization.

“With obesity and diabetes very quickly spreading, they are trying to do something about it early on.”

The slowing pace of growth globally is adding to worries the world sugar market is headed for a surplus in 2017/18, after two consecutive deficits. [nL5N1H03Y2]

It could also curtail ambitious plans by the European Union to sharply boost output in 2017/18 in an effort to again become a net exporter, after it ends subsidies and caps on exports in October. [nL5N1H03Y2]

INDIA, CHINA AND BRAZIL

High-income countries like Norway and Canada are already seeing a decline in sugar consumption, Euromonitor figures shows. Now the appetites of developing markets, whose rapid population growth was expected to drive future growth, also appear to be waning.

Sugar sales in India, the world’s biggest consumer, are set to fall by roughly 1 million tonnes this season, the Indian Sugar Mills Association (ISMA) estimates, due to higher domestic prices and a cash crunch that followed last year’s demonetisation of high-value bank notes. [nL8N1HX4HV]

The government’s decision earlier this year to abolish a sugar subsidy for poor families also dented consumption.

ISMA expects consumption to rebound next year as production in the country normalizes and domestic prices come down, but analysts say long-term growth remains uncertain as the government mulls higher taxes and stricter labeling on sugary foods. [nL3N1GT3TU]

“If India also jumps on the bandwagon with such a levy, as the world’s biggest sugar consumer, this could be felt in global growth,” said Stefan Uhlenbrock, senior analyst at F.O. Licht.

Sugar demand also seems to be stagnating in China, the second biggest consuming country, as cheaper sweeteners like high-fructose corn syrup (HFCS) grow in popularity.

Chinese beet and cane farmers rely on state support to offset steep production costs. Imports, meanwhile, are subject to hefty duties meant to protect the industry, with an additional tariff introduced just this week. [nL4N1IO1J8]

As a result, domestic sugar prices are around double those on the world market. This, coupled with an abundance of cheap corn, has made HFCS highly competitive.

The USDA last month highlighted the decline in Chinese sugar demand when it slashed its estimates for consumption in that country for 2015/16 and 2016/17 by roughly 10 percent and signaled more modest growth than previously expected.

“People in China are still eating ice cream and drinking soft drinks,” said John Stansfield, analyst at commodity trader Group Sopex.

“It’s just the fact that these products are now increasingly made from corn syrup rather than sugar.”

Brazil, the world’s third largest consuming nation, has also seen demand growth slow over the last three years as an enduring recession slashed the incomes of many Brazilians. Consumption was growing at roughly 2-3 percent over the previous decade.

SODA AND CONFECTIONARY

Manufacturers seem to think the anti-sugar movement is here to stay, and many food and beverage companies are pre-emptively reformulating their products as a result.

Coca-Cola <KO.N> has committed to reducing sugar in its drinks, with more than 200 reformulation initiatives underway. [nL4N1CW3UT]

PepsiCo <PEP.N> also said that by 2025 at least two-thirds of its drinks globally will have 100 calories or fewer from added sugar per 12-oz serving. [nL1N1CK13C]

Nestle <NESN.S> said in 2016 it is developing technology to reduce sugar in some confectionary products by up to 40 percent without affecting the taste. [nL8N1DW1D3]

“Globally, sugar is in the spotlight,” said Sara Petersson, nutrition analyst at Euromonitor. “The regulations are increasing with time. And if they’re being smart, they’re going to tackle this in advance.”

(Editing by Nigel Hunt, Veronica Brown and Sonya Hepinstall)

Taiwan court rules in favor of same-sex marriage, first in Asia

Supporters take part in a rally ahead of Taiwan's top court ruling on same-sex marriage case which will decide whether it will become the first place in Asia to recognise same-sex marriage, in Taipei, Taiwan May 24, 2017. REUTERS/Tyrone Siu

By J.R. Wu

TAIPEI (Reuters) – Taiwan’s constitutional court declared on Wednesday that same-sex couples have the right to legally marry, the first such ruling in Asia, sparking celebration by activists who have been campaigning for the right for years.

The court, known as the Judicial Yuan, said current marriage laws were “in violation of both the people’s freedom of marriage … and the people’s right to equality”, and it gave two years for legal amendments to allow same-sex marriage.

“If relevant laws are not amended or enacted within the said two years, two persons of the same sex who intend to create the said permanent union shall be allowed to have their marriage registration effectuated,” the court said.

Lesbian, gay, bisexual and transgender rights activists had harbored high hopes their years of campaigning for same-sex marriage would win the court’s backing.

The ruling Democratic Progressive Party that swept national elections in the self-ruled island last year supported the change.

Hundreds of supporters of same-sex marriage gathered in the street next to the island’s parliament to celebrate the decision, holding colorful umbrellas to ward off a drizzle.

“This ruling has made me very happy,” said Chi Chia-wei, a veteran gay rights activist who had petitioned the court to take up the issue.

The ruling clearing the way for same-sex marriage is the first in Asia, where socially conservative attitudes largely hold sway.

Graphic on countries and regions that allow same-sex marriage: http://tmsnrt.rs/2rg66SW

A lawyer said the ruling made clear that same-sex couples had the same marriage rights as opposite-sex couples.

“This is a clear victory for equal rights in marriage and it is also a victory for all the people,” said Victoria Hsu, the lead lawyer supporting Chi’s case.

Taiwan has a reputation as a beacon of liberalism in the region.

“Sexual orientation is an immutable characteristic that is resistant to change,” the court said in its ruling.

“Furthermore, the freedom of marriage for two persons of the same sex, once legally recognized, will constitute the collective basis, together with opposite-sex marriage, for a stable society,” it said.

Taiwan, which China regards as a renegade province, has a celebrated annual gay pride parade that showcases the vibrancy of its lesbian, gay, bisexual and transgender community.

(Reporting by J.R. Wu; Editing by Robert Birsel)

South Korea urges ‘parallel’ talks and sanctions to rein in North Korea

South Korean President Moon Jae-in speaks with Chinese President Xi Jinping by telephone at the Presidential Blue House in Seoul, South Korea in this handout picture provided by the Presidential Blue House and released by Yonhap on May 11, 2017. Blue House/Yonhap via REUTERS

By Ju-min Park and Christine Kim

SEOUL (Reuters) – South Korea’s new president launched international efforts to defuse tension over North Korea’s weapons development on Thursday, urging both dialogue and sanctions while also aiming to ease Chinese anger about a U.S. anti-missile system.

Moon Jae-in, a liberal former human rights lawyer, was sworn in on Wednesday and said in his first speech as president he would immediately address security tensions that have raised fears of war on the Korean peninsula.

Moon first spoke to Chinese President Xi Jinping and later to Japanese Prime Minister Shinzo Abe, with how to respond to North Korea’s rapidly developing nuclear and ballistic missile programs, in violation of U.N. Security Council resolutions, dominating talks.

“The resolution of the North Korean nuclear issue must be comprehensive and sequential, with pressure and sanctions used in parallel with negotiations,” Moon’s spokesman, Yoon Young-chan, quoted Moon as telling Xi.

“Sanctions against North Korea are also a means to bring the North to the negotiating table aimed at eliminating its nuclear weapons,” Yoon told a briefing, adding that Xi indicated his agreement.

Moon has taken a more conciliatory line with North Korea than his conservative predecessors and advocates engagement. He has said he would be prepared to go to Pyongyang “if the conditions are right”.

Regional experts have believed for months that North Korea is preparing for its sixth nuclear test and was working to develop a nuclear-tipped missile capable of reaching the United States, presenting U.S. President Donald Trump with perhaps his most pressing security issue.

Trump told Reuters in an interview last month major conflict with North Korea was possible though he would prefer a diplomatic outcome.

North Korea says it needs its weapons to defend itself against the United States which it says has pushed the region to the brink of nuclear war.

“Threats from North Korea’s nuclear and missile development have entered a new stage,” Japan’s Abe told Moon in their telephone call, according to Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda.

“How to respond to North Korea … is an urgent issue. I would like to closely cooperate with the president to achieve the denuclearization of North Korea,” Abe told Moon.

But Abe also said “dialogue for dialogue’s sake would be meaningless” and he called on North Korea to demonstrate “sincere and concrete action”, Hagiuda said, adding that Moon shared Abe’s views.

Japan has been concerned that Moon will take a tough line on feuds stemming from the bitter legacy of its 1910-1945 colonization of the Korean peninsula and could fray ties at a time when cooperation on North Korea is vital.

Moon told Abe to “look straight at history” and not make the past “a barrier”, though he raised South Korea’s dissatisfaction with a 2015 agreement meant to put to rest a dispute over Japanese compensation for South Korean women forced to work in Japanese brothels before and during World War Two, Korea’s presidential office said.

(For a graphic on South Korea’s presidential election, click tmsnrt.rs/2p0AyLf)

‘IMPROVE UNDERSTANDING’

While South Korea, China and Japan all share worry about North Korea, ties between South Korea and China have been strained by South Korea’s decision to install a U.S. anti-missile system in defense against the North.

China says the Terminal High Altitude Area Defense (THAAD) undermines its security as its powerful radar can probe deep into its territory.

China says the system does little to curb the threat posed by North Korea’s nuclear and missile programs, which it has been pressing ahead with in defiance of U.S. pressure and UN sanctions.

The deployment of THAAD was agreed last year by South Korea’s previous administration after North Korea conducted a long-range rocket launch that put an object into space.

Moon came to power with a promise to review the system and he told Xi that North Korea must cease making provocations before tension over the deployment could be resolved, officials said.

In the first direct contact between the South Korean and Chinese leaders, Xi explained China’s position, Yoon, the South Korean presidential spokesman said, without elaborating.

“President Moon said he understands China’s interest in the THAAD deployment and its concerns, and said he hopes the two countries can swiftly get on with communication to further improve each other’s understanding,” Yoon told a briefing.

South Korea and the United States began deploying the THAAD system in March and it has since become operational.

Xi told Moon South Korea and China should respect each other’s concerns, set aside differences, seek common ground and handle disputes appropriately, China’s foreign ministry said in a statement.

As well as clouding efforts to rein in North Korea’s nuclear ambitions, the THAAD deployment has also led to recriminations from Beijing against South Korean companies.

Moon explained the difficulties faced by South Korean companies that were doing business in China and asked for Xi’s “special attention” to ease those concerns, Yoon said.

China has also denied it is doing anything to retaliate against South Korean businesses.

(Additional reporting by Ben Blanchard in BEIJING and Kiyoshio Takenaka in TOKYO; Writing by Jack Kim; Editing by Paul Tait, Robert Birsel)

Defiant North Korea hints at nuclear tests to boost force ‘to the maximum’

People watch a TV broadcasting of a news report on North Korea's missile launch, at a railway station in Seoul, South Korea.

By Soyoung Kim

SEOUL (Reuters) – North Korea suggested on Monday it will continue its nuclear weapons tests, saying it will bolster its nuclear force “to the maximum” in a “consecutive and successive way at any moment” in the face of what it calls U.S. aggression and hysteria.

U.S. President Donald Trump has said a “major, major conflict” with North Korea is possible over its nuclear and ballistic missile programs, while China said last week the situation on the Korean peninsula could escalate or slip out of control.

In a show of force, the United States has sent the nuclear-powered USS Carl Vinson aircraft carrier group to waters off the Korean peninsula to join drills with South Korea to counter a series of threats of destruction from North Korea, formally known as the Democratic People’s Republic of Korea (DPRK).

“Now that the U.S. is kicking up the overall racket for sanctions and pressure against the DPRK, pursuant to its new DPRK policy called ‘maximum pressure and engagement’, the DPRK will speed up at the maximum pace the measure for bolstering its nuclear deterrence,” a spokesman for North Korea’s foreign ministry said in a statement carried by its official KCNA news agency.

North Korea’s “measures for bolstering the nuclear force to the maximum will be taken in a consecutive and successive way at any moment and any place decided by its supreme leadership,” the spokesman said.

Reclusive North Korea has carried out five nuclear tests and a series of missile tests in defiance of U.N. Security Council and unilateral resolutions. It has been conducting such tests at an unprecedented rate and is believed to have made progress in developing intermediate-range and submarine-launched missiles.

It test-launched a missile on Saturday which Washington and Seoul said was unsuccessful, but which nevertheless drew widespread international condemnation.

‘TOP PRIORITY’

South Korea said the United States had reaffirmed it would shoulder the cost of deploying the Terminal High Altitude Area Defense (THAAD) anti-missile system to counter the North Korean threat, days after Trump said Seoul should pay for the $1 billion battery.

In a telephone call on Sunday, Trump’s national security adviser, H.R. McMaster, reassured his South Korean counterpart, Kim Kwan-jin, that the U.S. alliance with South Korea was its top priority in the Asia-Pacific region, the South’s presidential office said.

Trump, asked about his message to North Korea after the latest missile test, told reporters: “You’ll soon find out,” but did not elaborate on what the U.S. response would be.

Trump stepped up his outreach to allies in Asia over the weekend to discuss the North Korean threat and make sure all are “on the same page” if action is needed, a top White House official said.

“There is nothing right now facing this country and facing the region that is a bigger threat than what is happening in North Korea,” White House Chief of Staff Reince Priebus told ABC’s “This Week.”

The THAAD deployment has drawn protests from China, which says the powerful radar that can penetrate its territory will undermine regional security, and from residents of the area in which it is being deployed, worried they will be a target for North Korean missiles.

The United States is seeking more help from China, the North’s major ally, to rein in Pyongyang’s nuclear and missile development. Trump, in the Reuters interview, praised Chinese counterpart Xi Jinping as a “good man”.

Tension on the Korean peninsula has been high for weeks over fears the North may conduct a long-range missile test, or its sixth nuclear test, around the time of the April 15 anniversary of its state founder’s birth.

North Korea, technically still at war with the South after their 1950-53 conflict ended in a truce, not a treaty, regularly threatens to destroy the United States, Japan and South Korea and has said before it will pursue its nuclear and missile programs to counter perceived U.S. aggression.

(Writing by Nick Macfie; Editing by Robert Birsel)