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Iran strikes jihadi group in Pakistan

by Index Investing News
January 17, 2024
in Economy
Reading Time: 5 mins read
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Good morning. Iran has attacked a jihadi group in Pakistan, increasing tensions between the neighbouring states following similar attacks by the Islamic republic in Iraq and Syria.

Iranian media late on Tuesday reported the destruction of two bases of Jaish ul-Adl in the remote western province of Balochistan, which borders Iran. The Pakistan-based Sunni militant group has waged an armed campaign against Tehran since its foundation in 2012.

Pakistan “strongly condemned” the missile and drone strikes, saying two children were killed and three injured in the attack. The country recalled its ambassador from Iran and ordered the Iranian ambassador to Islamabad, who is at present visiting Tehran, to “not return for the time being” as the diplomatic spat between the countries quickly escalated.

The attack came at a time of increasing fear of a broader conflict in the Middle East as tensions have soared since the war between Israel and Hamas began on October 7. The full story has more on the strikes and how Pakistan could respond.

  • Diplomatic push: The US is stepping up efforts to broker a diplomatic solution to the intensifying hostilities between Israel and Lebanon’s Hizbollah, as fears grow in Washington that the window is narrowing to avert a full-blown war erupting on the shared border.

Here’s what else I’m keeping tabs on today:

  • TSMC: Taiwan Semiconductor Manufacturing Company, the world’s largest chip producer, reports fourth-quarter results.

  • Monetary policy: The European Central Bank publishes the minutes of its latest rate-setting meeting.

  • Reports: The IEA publishes its Oil Market Report.

Five more top stories

1. China’s population declined for a second year in a row in 2023 as its economy grew at one of the lowest rates in decades, pointing to persistent challenges for the world’s second-largest economy from a property slowdown, deflation and demographic pressures. One analyst said the population decline of 2mn revealed the “footprint of Covid-19”. Read more expert takeaways from the data.

2. A working group of US Treasury and Chinese officials will meet this week in Beijing for the first time, in another sign of closer engagement between the countries following November’s summit between Joe Biden and Xi Jinping. The group has met twice since its creation last September following Treasury secretary Janet Yellen’s first visit to China. Here’s what they’ll discuss when they meet today in the Chinese capital.

3. Samsung Electronics launched the 2024 versions of its flagship Galaxy smartphone series at a Silicon Valley event yesterday, unveiling phones capable of running generative artificial intelligence features “on-device”. The S24 Android phones appear to give the South Korean group a technological edge over its main rival Apple, as handset makers hope AI functionality will revive the stagnant smartphone market.

4. Global stocks and bond markets retreated yesterday as investors scaled back expectations of swift interest rate cuts in the eurozone, the UK and the US. The worldwide sell-off came after European Central Bank president Christine Lagarde signalled borrowing costs would come down in summer rather than spring.

5. Google DeepMind has used artificial intelligence to all but match the geometry problem-solving skills of the world’s brightest students, advancing the prized quest to apply the fast-growing technology to complex maths. Here’s how Google’s AlphaGeometry system performed in the International Mathematical Olympiad.

Letter from the editor

© FT

How will democracy fare in 2024? As the world heads to the polls in what is set to be a historic election year, the Financial Times has launched a series of articles and films on the political challenges and promises ahead. FT editor Roula Khalaf introduces Democracy 2024 in her letter to readers today, kicking off our year-long series with films featuring authors Margaret Atwood and Elif Shafak. Follow the rest of our coverage here.

We’re also reading . . . 

Stay updated with our on-the-ground coverage and live events as the World Economic Forum’s annual meeting in Switzerland heads into its fourth day.

Chart of the day

Chips made in Ireland have in recent years accounted for about 60 per cent of the country’s rapidly expanding exports to China. A visit to Dublin yesterday by Chinese Premier Li Qiang highlighted the nations’ close trade and investment ties — and their potential vulnerability to growing geopolitical tensions.

Chart showing Ireland’s exports to China

Take a break from the news

From its beaches to its peaks, Hong Kong offers plenty of thrills for those of an outdoorsy persuasion. Check out our fitness guide to the city.

A fairway at the Hong Kong Golf Club, with the city skyline in the backdrop
Some of golf’s greats, including Tiger Woods and Rory McIlroy, have played at the Hong Kong Golf Club © Dave Sansom

Additional contributions from Tee Zhuo and Gordon Smith

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