Spotify

Turkey opens Spotify probe after 'provocative playlist' complaint

  • The investigation was announced the same day as deputy culture minister Batuhan Mumcu called for legal action against Spotify in a post on X, citing its "refusal" to respond to requests to remove playlists with names deemed offensive. 
  • Turkey's competition authority has launched an investigation into Spotify for anti-competitive practices as a deputy minister demanded legal action over "provocative" playlists allegedly offensive to the president's wife and disrespectful of Islam.
  • The investigation was announced the same day as deputy culture minister Batuhan Mumcu called for legal action against Spotify in a post on X, citing its "refusal" to respond to requests to remove playlists with names deemed offensive. 
Turkey's competition authority has launched an investigation into Spotify for anti-competitive practices as a deputy minister demanded legal action over "provocative" playlists allegedly offensive to the president's wife and disrespectful of Islam.
In a statement released on Friday, the competition authority said it had opened an investigation into "various allegations that the strategies and policies implemented by Spotify... in Turkey has caused anti-competitive effects in the music industry".
It said the probe would seek to establish whether Spotify gave more visibility to some artists and engaged in unfair practices in the distribution of royalties, thereby violating the competition law.
The investigation was announced the same day as deputy culture minister Batuhan Mumcu called for legal action against Spotify in a post on X, citing its "refusal" to respond to requests to remove playlists with names deemed offensive. 
"Spotify persistently refuses to take the necessary steps despite all our previous warnings," he wrote.
"Content that targets our religious and national values and insults the beliefs of our society has not been corrected," he added, saying Turkey had been "closely monitoring content on Spotify for a long time".

'Targeting... sacred values'

He pointed to content published "under the guise of 'playlists'.. that disregards our religious sensitivities toward our Prophet Mohammed, deliberately and unacceptably targeting the beliefs, sacred values, and spiritual world of our people". 
He also singled out playlists allegedly targeting Emine Erdogan, wife of President Recep Tayyip Erdogan, which were "insidiously provocative and morally unacceptable".
"This irresponsibility and lack of oversight, which disregards the sensitivities of our society, has now become a legal matter.. I call on our competent institutions to take action," he wrote.
Attached to his post was an animated graphic showing a string of playlists with names referencing either Erdogan's wife or the life of the Prophet Mohammed. 
In a statement, Spotify, which launched in Turkey in 2013, said its operations complied with "all applicable laws" but it would cooperate with the investigation although it lacked "details on the inspection's scope or focus". 
"We are cooperating with the investigation, are actively seeking to understand it, and will work toward a swift, constructive resolution with the Turkish Competition Authority," the statement said, without making any mention of the playlist allegations.
It said in 2024, it had paid "over 2 billion Turkish lira ($25 million) to the local music industry" with its service playing a "pivotal (role) in growing Turkish artists' royalties globally". 
bur-hmw/jj

consumer

China's first Legoland opens to tourists in Shanghai

BY JING XUAN TENG

  • Companies have taken note of the wider local tourism boom and stepped up their plans in China.
  • Thousands of local tourists poured into China's first-ever Legoland as it opened its gates in Shanghai on Saturday, the latest theme park hoping to capitalise on a domestic tourism boom.
  • Companies have taken note of the wider local tourism boom and stepped up their plans in China.
Thousands of local tourists poured into China's first-ever Legoland as it opened its gates in Shanghai on Saturday, the latest theme park hoping to capitalise on a domestic tourism boom.
The Chinese branch of the British-owned theme park franchise is the biggest Legoland in the world.
It drew in early customers who flocked to attractions including a miniature train ride and a dragon-themed rollercoaster.
"I personally love to play with Lego blocks and we have many sets at home... so I wanted to come to Legoland at the earliest opportunity," said Shi, a 35-year-old resident of nearby city Hangzhou, who was visiting the park with his wife and child.
Despite the Chinese economy's sluggish growth in recent years, domestic tourist spending grew 18.6 percent in the first quarter of this year compared to the previous year, according to statistics.
"Ever since the pandemic, I've made very few trips abroad," said Shi, adding his family now travels to theme parks around China "many times a year".
Eager Lego fans rushed into the park as soon as it opened, wearing themed shirts and waving branded flags as they enjoyed the 318,000-square-metre (78.5-acre) compound in scorching temperatures.
Beijing has announced subsidies intended to make travelling within the country more affordable for Chinese citizens, and is pushing local governments to heavily market their attractions on social media.
Companies have taken note of the wider local tourism boom and stepped up their plans in China.
A new "Spider-Man" attraction at Shanghai Disneyland broke ground in May, while Warner Brothers is set to open a Harry Potter experience in Shanghai by 2027.
Toy giant Hasbro said this week its giant Peppa Pig park in the city was now "in the phase of creative design".
Chinese collectable toy maker Pop Mart has also opened an attraction in Beijing featuring life-sized versions of its popular Labubu toys.
"The various provinces are putting a lot of effort into expanding their tourism industries, and all of them have special attractions," said Xu, a 34-year-old parent visiting Legoland on Saturday with his children.
But profitability remains a problem, especially for local companies with less brand recognition.
As of late 2024, around 40 percent of parks were still failing to turn a profit, according to state media reports.
Yet analysts point to a growing population of retirees and job market changes as key factors pushing more locals to visit domestic attractions.
"The labour market is turning more flexible," said Ernan Cui, China consumer analyst at Gavekal Research.
"More people have leisure time to travel around."
tjx/jfx

energy

Eight OPEC+ alliance members move toward output hike at meeting

BY POL-MALO LE BRIS

  • By approving another output hike, heavyweight Saudi Arabia might seek to up pressure on members for not keeping to agreed quotas via slashing expected oil profits due to lower prices.
  • Saudi Arabia, Russia and six other key members of the OPEC+ alliance will discuss crude production on Saturday, with analysts expecting the latest in a series of output hikes for August.
  • By approving another output hike, heavyweight Saudi Arabia might seek to up pressure on members for not keeping to agreed quotas via slashing expected oil profits due to lower prices.
Saudi Arabia, Russia and six other key members of the OPEC+ alliance will discuss crude production on Saturday, with analysts expecting the latest in a series of output hikes for August.
The wider OPEC+ group -- comprising the 12-nation Organization of the Petroleum Exporting Countries (OPEC) and its allies -- began output cuts in 2022 in a bid to prop up prices.
But in a policy shift, eight alliance members spearheaded by Saudi Arabia surprised markets by announcing they would significantly raise production from May, sending oil prices plummeting.
Oil prices have been hovering around a low $65-$70 per barrel.
Representatives of Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman will take part in Saturday's meeting, expected to be held by video.
Analysts expect the so-called "Voluntary Eight" (V8) nations to decide on another output increase of 411,000 barrels per day (bpd) -- the same target approved for May, June and July.   
The group has placed an "increased focus on regaining market shares over price stability," said Saxo Bank analyst Ole Hansen.

Enforcing quotas

The group will likely justify its decision by officially referring to "low inventories and solid demand as reasons for the faster unwind of the production cuts", UBS analyst Giovanni Staunovo told AFP.
But the failure of some OPEC member countries, such as Kazakhstan and Iraq, to stick to their output quotas, is "a factor supporting the decision", he added.
By approving another output hike, heavyweight Saudi Arabia might seek to up pressure on members for not keeping to agreed quotas via slashing expected oil profits due to lower prices.
According to Jorge Leon, an analyst at Rystad Energy, an output hike of 411,000 bpd will translate into "around 250,000 or 300,000" actual barrels. 
An estimate by Bloomberg showed that the alliance's production increased by only 200,000 bpd in May, despite doubling the quotas.

No effect from Israel-Iran war

Analysts expect no major effect on current oil prices, as another output hike is widely anticipated. 
The meeting comes after a 12-day conflict between Iran and Israel, which briefly sent prices above $80 a barrel amid concerns over a possible closing of the strategic Strait of Hormuz, a chokepoint for about one-fifth of the world's oil supply.
As fears of a wider Middle East conflict have eased, and given there "were no supply disruptions so far", the war is "unlikely to impact the decision" of the alliance, Staunovo added.
The Israel-Iran conflict "if anything supports a continued rapid production increase in the unlikely event Iran's ability to produce and export get disrupted," Hansen told AFP.
pml-kym/tw/tc

economy

Bombers and a 'beautiful bill' -- Trump celebrates US Independence Day

BY DANNY KEMP

  • - 'Never been anything like it' - The legislation's signing caps two weeks of significant wins for Trump that have seen him tighten his grip on power and his party alike.
  • US President Donald Trump signed his flagship tax and spending bill into law Friday, capping a grandiose White House Independence Day ceremony featuring a stealth bomber fly-by.
  • - 'Never been anything like it' - The legislation's signing caps two weeks of significant wins for Trump that have seen him tighten his grip on power and his party alike.
US President Donald Trump signed his flagship tax and spending bill into law Friday, capping a grandiose White House Independence Day ceremony featuring a stealth bomber fly-by.
"America is winning, winning, winning like never before," Trump said before signing the so-called "One Big Beautiful Bill" while flanked by Republican lawmakers who helped push it through Congress.
Trump also played down criticism by Democrats that the unpopular legislation will slash social welfare programs, saying: "You won't even notice it."
With First Lady Melania Trump at his side, Trump watched from the White House balcony as two B-2 bombers -- the same type that recently struck Iranian nuclear sites -- roared overhead, accompanied by F-35 and F-22 fighter jets.
The 79-year-old's victory lap came a day after Republicans fell into line and passed the sprawling mega-bill, allowing him to sign it as he had hoped on the Fourth of July holiday.
The bill honors many of Trump's campaign promises: extending tax cuts from his first term, boosting military spending and providing massive new funding for Trump's migrant deportation drive.

'Never been anything like it'

The legislation's signing caps two weeks of significant wins for Trump that have seen him tighten his grip on power and his party alike.
The successes include the recent Iran-Israel ceasefire that was sealed after what he called the "flawless" US air strikes on Iran.
Pilots who carried out the bombing on Iran were among those invited to the White House event, which included a picnic for military families on the South Lawn.
"The last two weeks, there has never been anything like it, as far as winning," said Trump.
Trump had however forced through the tax bill despite deep misgivings in the Republican Party that it would balloon the national debt.
The legislation is expected to pile an extra $3.4 trillion over a decade onto the US deficit.
It squeezed past a final vote in the House of Representatives 218-214 after Republican Speaker Mike Johnson worked through the night to corral the final group of dissenters.
Trump thanked Johnson at the White House event, saying: "What a job."

'Horrible day'

Trump's billionaire former ally Elon Musk was among the most vocal critics, and he has pledged to set up a new political party to oppose Republicans who backed the bill. 
Democrats and many voters have meanwhile expressed concerns that the "big beatuiful bill" will gut health and welfare support.
The bill will force through the largest cuts to the Medicaid health insurance program for low-income Americans since its 1960s launch, while also shrinking federal food assistance programs. 
Up to 17 million people could lose their insurance coverage under the bill, according to some estimates. Scores of rural hospitals are expected to close as a result.
But Trump played down the concerns.
"They've developed a standard line, and we can't let them get away with it. 'Oh, it's dangerous. Oh, everybody's going to die.' It's actually just the opposite," said Trump.
Democrats hope public opposition to the bill will help them flip the House in the 2026 midterm election, pointing to data showing that it represents a huge redistribution of wealth from the poorest Americans to the richest.
People attending the Fourth of July parade in Washington on Saturday had mixed feelings.
"Yesterday was a horrible day, today is the best part of America," said Elisabeth Hubir, 70.
dk/jgc

US

BRICS nations to denounce Trump tariffs

BY ANDREW BEATTY

  • "BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP. bur/arb/aks/acb
  • BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East.
  • "BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP. bur/arb/aks/acb
BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East.
Emerging nations representing about half the world's population and 40 percent of global economic output are set to unite over what they see as unfair US import tariffs, according to sources familiar with summit negotiations.
Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive tariffs.
His latest salvo comes in the form of letters due to be sent starting Friday informing trading partners of new tariff rates expected next week on July 9.
Diplomats from 11 emerging nations, including Brazil, Russia, India, China and South Africa, have been busy drafting a statement condemning the economic uncertainty.
Any final summit declaration is not expected to mention the United States or its president by name. But it is expected to be a clear political shot directed at Washington.
"We're anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration," Marta Fernandez, director of the BRICS Policy Center at Rio's Pontifical Catholic University said.
This is particularly the case for China, which has only recently negotiated with the US to lower steep tit-for-tat levies.
"This doesn't seem to be the right time to provoke further friction" between the world's two leading economies, Fernandez said.

Xi no show

Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power.
But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president.
"I expect there will be speculation about the reasons for Xi's absence," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank.
"The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Hass.
The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin.
Hass said  Putin's non-attendance and the fact that India's prime minister will be a guest of honor in Brazil could also be factors in Xi's absence.
"Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said.
"I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors."
Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage.
In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run.

Middle path

Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel is also skipping the meeting. 
A source familiar with the negotiations said the BRICS countries were still in disagreement over how to respond to the wars in Gaza and between Iran and Israel.  
Iranian negotiators are pushing for a tougher collective stance that goes beyond referencing the need for the creation of a Palestinian state and for disputes to be resolved peacefully.
Artificial intelligence and health will also be on the agenda at the summit.
Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia.
Analysts say that it has given the grouping more potential international punch.
But it has also opened many new fault lines.
Brazil hopes that countries can take a common stand at the summit, including on the most sensitive issues.
"BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP.
bur/arb/aks/acb

diplomacy

France says 'major issues' remain despite brandy price accord with China

BY ADRIEN SIMORRE WITH ANNA SMOLCHENKO IN PARIS AND MATTHEW WALSH WITH BEIJING

  • In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." 
  • France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved.
  • In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." 
France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved.
The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris.
In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries.
Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.
In the latest salvo, China will from Saturday require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent.
Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price.
France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes.
- 'Positive step' - 
Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang.
"This is a positive step towards resolving this dispute, which was threatening our exports," Macron said on X.
"I will continue to raise these issues with the Chinese authorities this afternoon."
In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." 
"We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation," he said.
Wang has held fraught meetings in several European countries this week.
After meeting Macron and Barrot, Wang told a press conference: "The two sides had in-depth, active and sincere exchanges on Sino-French and European relations." 
No mention was made of the brandy dispute.
Almost all EU brandy is cognac produced in France, whose exports to China are worth 1.4 billion euros ($1.6 billion) per year.
French liquor giant Jas Hennessy said it would face levies of 34.9 percent if it did not stick to the deal. Remy Martin will be hit with 34.3 percent and Martell 27.7 percent.
"The decision to accept the price commitment once again demonstrates China's sincerity in resolving trade frictions through dialogue and consultation," a Chinese commerce ministry spokesperson said in a statement.
However, the European Commission kept up criticism of China's new tariffs.
"We believe that China's measures are unfair. We believe they are unjustified," said commission trade spokesman Olof Gill.
"We believe they are inconsistent with the applicable international rules and are thus unfounded."

Upcoming summit

China has sought to improve relations with the European Union as a counterweight to the United States.
But frictions remain, including a yawning trade deficit of $357.1 billion between China and the EU, as well as Beijing maintaining close ties with Moscow since Russia invaded Ukraine.
The trade row blew up last year when the EU moved to impose hefty tariffs on Chinese electric vehicles, arguing that Beijing's subsidies unfairly undercut European competitors.
Beijing rejected the accusation and announced what were seen as retaliatory probes into imported European pork, brandy and dairy products.
The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicles in October.
Beijing lodged a complaint with the World Trade Organisation, which in April said it would set up an expert panel to investigate.
China and the EU are to hold a summit this month to mark the 50th anniversary of their diplomatic ties. But Bloomberg News reported, citing unnamed sources, that Beijing would cancel the second day of the summit, in a sign of the tensions.
bur-pfc-as/tw/phz

labour

Second day of travel chaos as French air traffic controllers strike

BY TANGI QUEMENER AND OLGA NEDBAEVA

  • A4E chief Ourania Georgoutsakou said Thursday that "the actions of a minority of French air traffic control workers" would "needlessly disrupt the holiday plans of thousands of people in France and across Europe".
  • A strike by French air traffic controllers brought a second day of chaos to European skies Friday, with flights for hundreds of thousands of people cancelled as the summer holiday season gathered pace.
  • A4E chief Ourania Georgoutsakou said Thursday that "the actions of a minority of French air traffic control workers" would "needlessly disrupt the holiday plans of thousands of people in France and across Europe".
A strike by French air traffic controllers brought a second day of chaos to European skies Friday, with flights for hundreds of thousands of people cancelled as the summer holiday season gathered pace.
More than 1,100 flights arriving or leaving France and hundreds that were to fly over the country were cancelled Friday, according to official figures.
Paris airports were even more severely affected than on the first day of the strike on Thursday, which was called by two unions protesting against understaffing and "toxic management".
The timing of the strike is particularly acute with Friday the final day of school in France before the summer holidays.
At Paris airports, passengers stared at departure boards loaded with cancellations to assess their options. Some travellers appeared distraught.
Sabrina Taristas, 42, was set to fly to the southern French city of Toulouse.
"We can't go against the strike but it's true that it's a real inconvenience for us travellers," she told AFP.
The strike was due to end Friday evening and no disruptions were expected on Saturday.
France's DGAC civil aviation authority said 1,125 flights had been cancelled on Friday, compared to 933 flights on Thursday.
French flag-carrier Air France said its long-haul flights were not affected.
The travel disruption also affected hotels.
Many travellers cancelled hotel bookings, particularly in cities with large airports such as Nice and Paris, according to the UMIH hotel and restaurant union.
"There's a bit of panic among those arriving and those leaving, airlines are trying to rebook their customers, it's complicated to manage and it's going to cost them a lot," Veronique Siegel of the UMIH union told AFP.
In the Mediterranean city of Nice, the airport said 200 trips had been cancelled on Thursday, and 220 on Friday, affecting 50,000 passengers.
The government condemned the strike.
"Choosing the day when everyone goes on holiday to go on strike at air traffic control is taking the French hostage," Prime Minister Francois Bayrou told broadcaster BFMTV.

'Unacceptable'

Transport Minister Philippe Tabarot said the strike was "unacceptable".
"Yesterday and today, 272 people in our country will impact the well-being of more than 500,000 people," he told broadcaster CNews, referring to the number of the workers on strike.
UNSA-ICNA, the second biggest labour group in the sector, launched the action to protest against "chronic understaffing", the introduction of a clocking-in system, outdated equipment and "toxic management practices that are incompatible with the requirements of calm and safety". 
The third largest union, USAC-CGT, joined the strike but not the main SNCTA union.
The effects of the strike were not limited to France and the stoppage has triggered hundreds of cancellations of flights that fly over the country.
The European Airlines for Europe (A4E) association said 1,500 flights would be cancelled on Thursday and Friday in Europe, affecting 300,000 passengers.
A4E chief Ourania Georgoutsakou said Thursday that "the actions of a minority of French air traffic control workers" would "needlessly disrupt the holiday plans of thousands of people in France and across Europe".
The association said the strikes caused "almost 500,000 minutes" in delays in Europe on Thursday on nearly 33,000 commercial flights.
Ryanair, Europe's largest airline by passenger numbers, said it had cancelled more than 400 flights.
Chief executive Michael O'Leary has urged the EU Commission to protect such overflights by law in case of strikes.
"Of these 400 flight cancellations, 350 would not be cancelled if the EU protected overflights over France," he said.
Around 30 flights at Schiphol Airport in Amsterdam were cancelled while others were delayed on Friday due to the strikes, an airport spokesperson said.
"Around 30 flights have been cancelled today by airlines as a precaution," the spokesperson said.
tq-sjw-ah-as/phz

Global Edition

Stocks, dollar drop as tariff talk dominates

  • In Europe, EU stock markets fell, with sentiment hit by China moving forward with "anti-dumping" taxes of up to 34.9 percent on cognac and other brandy imported from the bloc if producers don't voluntarily hike prices.
  • Stock markets mostly fell while the dollar largely retreated Friday as international tensions over tariffs dominated sentiment.
  • In Europe, EU stock markets fell, with sentiment hit by China moving forward with "anti-dumping" taxes of up to 34.9 percent on cognac and other brandy imported from the bloc if producers don't voluntarily hike prices.
Stock markets mostly fell while the dollar largely retreated Friday as international tensions over tariffs dominated sentiment.
Traders digested news also of Congress narrowly passing US President Donald Trump's signature tax and spending bill that analysts argue risks ballooning national debt and wider inflation. 
On tariffs, Trump said he planned to start sending letters informing trading partners of their import levies as soon as Friday, as negotiations to avoid higher US rates entered the final stretch.
In Europe, EU stock markets fell, with sentiment hit by China moving forward with "anti-dumping" taxes of up to 34.9 percent on cognac and other brandy imported from the bloc if producers don't voluntarily hike prices.
London ended the day flat.
Asian stock markets closed out the week mixed.
Oil prices extended losses, with OPEC and the cartel's crude-producing allies expected this weekend to announce a rise to output.
The main focus heading into next week was on Trump's tariff plans.
"We draw ever closer to Wednesday's reciprocal tariff deadline, and thus traders are likely to grow jittery despite the tentative signals of a potential pathway to a deal," noted Joshua Mahony, chief market analyst at Rostro trading group.
Governments around the world have fought to hammer out tariff deals with Washington after Trump unveiled a blitz of levies in early April.
He and his top officials have said several were in the pipeline, but only Britain and Vietnam have signed pacts.
China has agreed to a framework for it and the United States to slash tit-for-tat tolls and ship certain products.
The prospect that trading partners from Japan and South Korea to India and Taiwan could be hit with stiff tariffs fuelled fresh worries about the global economy.
"While we are unlikely to see a repeat of volatility like we did in early April, when markets were at the peak of tariff-related turbulence, we could potentially see some selling pressure if we see the return of tit-for-tat trade tariffs," said City Index and FOREX.com analyst Fawad Razaqzada.
Uncertainty leading up to next week's cut-off tempered the positive lead from another record Thursday on Wall Street, where a forecast-busting US jobs report soothed worries about the world's top economy.
The data dented the prospect of the Federal Reserve cutting interest rates at its July policy meeting, with bets now on two reductions before the end of the year -- the first likely in September.
However, analysts suggested that all was not what it seemed, pointing to softness in the private sector.
"We think that private-sector hiring has stalled, and we may see sporadic layoffs in some industries in the coming months," warned analysts at Japanese financial group MUFG.
"Despite the unemployment rate having fallen... the flow of potential workers that remained out of the labour force rose sharply in June, further highlighting the weak hiring environment. 
"We continue to view labour demand as being fundamentally weak relative to the past several years," they added.
Wall Street was closed on Friday for the US Independence Day holiday.

Key figures at around 1530 GMT

London - FTSE 100: FLAT at 8,822.91 points (close)
Paris - CAC 40: DOWN 0.8 percent at 7,696.27 (close)
Frankfurt - DAX: DOWN 0.6 percent at 23,7787.45 (close)
Tokyo - Nikkei 225: UP 0.1 percent at 39,810.88 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 23,916.06 (close)
Shanghai - Composite: UP 0.3 percent at 3,472.32 (close)
New York: Closed for a public holiday
Euro/dollar: UP at $1.1783 from $1.1755 on Thursday
Pound/dollar: DOWN at $1.3641 from $1.3642
Dollar/yen: DOWN at 144.53 yen from 145.06 yen
Euro/pound: UP at 86.37 pence from 86.14 pence
West Texas Intermediate: DOWN 0.7 percent at $66.56 per barrel
Brent North Sea Crude: DOWN 0.6 percent at $68.39 per barrel
burs-rl/giv

economy

Trump wins 'phenomenal' victory as Congress passes flagship bill

BY ANDREW CABALLERO-REYNOLDS WITH BEN SHEPPARD AND FRANKIE TAGGART IN WASHINGTON

  • "There could be no better birthday present for America than the phenomenal victory we achieved just hours ago," Trump told supporters in the state capital, Des Moines. 
  • US President Donald Trump boasted of a "phenomenal victory" to cheering supporters at a rally in Iowa on Thursday after Congress narrowly passed his signature tax and spending bill, cementing his radical second-term agenda.
  • "There could be no better birthday present for America than the phenomenal victory we achieved just hours ago," Trump told supporters in the state capital, Des Moines. 
US President Donald Trump boasted of a "phenomenal victory" to cheering supporters at a rally in Iowa on Thursday after Congress narrowly passed his signature tax and spending bill, cementing his radical second-term agenda.
The jubilant president kicked off America's year-long 250th birthday celebrations with a victory lap hailing the unpopular bill, which has caused deep concern within his own Republican Party -- as well as, polls show, among many Americans.
Many fear that it will balloon the national debt, gut health and welfare support as well as clean energy, and supercharge Trump's migrant crackdown.
"There could be no better birthday present for America than the phenomenal victory we achieved just hours ago," Trump told supporters in the state capital, Des Moines. 
"Very simply, the one, big beautiful bill would deliver the strongest border on Earth, the strongest economy on Earth, the strongest military on Earth, and ensure the United States of America will remain the strongest country anywhere on this beautiful planet of ours."
The bill squeezed past a final vote earlier Thursday, 218-214, after a small group of Republican opponents in the House of Representatives finally fell in line, corralled by Speaker Mike Johnson.
Trump said he would sign the bill into law on Friday, American Independence Day, adding that pilots who had carried out US strikes on Iran two weeks earlier would be in attendance. 

Mass deportations, tax breaks

The legislation is the latest in a series of big wins for Trump, including a Supreme Court ruling last week that curbed lone federal judges from blocking his policies, and US air strikes that led to a ceasefire between Israel and Iran.
His sprawling mega-bill narrowly passed the Senate on Tuesday and had to return to the lower chamber for its approval of the senators' revisions.
The package honors many of Trump's campaign promises: boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief.
"Everything was an absolute disaster under the Biden-Harris radical regime, and we took the best effort that we could, in one big, beautiful bill, to fix as much of it as we could," Johnson said.
"And I am so grateful that we got that done."
But it is expected to pile an extra $3.4 trillion over a decade onto the country's fast-growing deficits, while shrinking the federal food assistance program and forcing through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch.
Some estimates put the total number of recipients set to lose their insurance coverage under the bill at 17 million. Scores of rural hospitals are expected to close.
While Republican moderates in the House fear the cuts will damage their prospects of reelection next year, fiscal hawks chafed over savings that they say fall far short of what was promised.
Johnson had to negotiate tight margins, and could only lose a handful of lawmakers in the final vote, among more than two dozen who had earlier declared themselves open to rejecting the 869-page text.
Trump spent weeks hitting the phones and hosting White House meetings to cajole lawmakers torn between angering welfare recipients at home and incurring the president's wrath.
Democrats hope public opposition to the bill will help them flip the House in the 2026 midterm election, pointing to data showing that it represents a huge redistribution of wealth from the poorest Americans to the richest.
"This bill, this one big, ugly bill -- this reckless Republican budget, this disgusting abomination -- is not about improving the quality of life of the American people," House Minority Leader Hakeem Jeffries said.  
After the bill was passed, Trump's predecessor, Joe Biden, said it was "not only reckless -- it's cruel."
Extra spending on the military and border security will be paid in part through ending clean energy and electric vehicle subsidies -- a factor triggering a bitter public feud between Trump and former key advisor Elon Musk.
bur-st/sco

tariff

What is the state of play with Trump's tariffs?

BY BEIYI SEOW

  • Trump's auto tariffs impact vehicle parts too, while the president has issued rules to ensure automakers paying vehicle tariffs will not also be charged for certain other duties.
  • With sweeping tariffs on friend and foe, US President Donald Trump has roiled financial markets and sparked a surge in economic uncertainty -- and tensions are mounting days before a fresh volley of higher duties are due to kick in.
  • Trump's auto tariffs impact vehicle parts too, while the president has issued rules to ensure automakers paying vehicle tariffs will not also be charged for certain other duties.
With sweeping tariffs on friend and foe, US President Donald Trump has roiled financial markets and sparked a surge in economic uncertainty -- and tensions are mounting days before a fresh volley of higher duties are due to kick in.
Here is a rundown of what Trump has implemented in his second presidency, with levies on dozens of economies set to bounce from 10 percent to a range between 11 percent and 50 percent on Wednesday.

Global tariffs

While Trump imposed a 10 percent tariff on most US trading partners in April, the rate is set to rise for dozens of economies including the European Union and Japan come Wednesday.
To avoid higher levies, countries have been rushing to strike deals with Washington.
So far, the UK and Vietnam have struck pacts with the United States, while China has managed to temporarily lower tit-for-tat duties.
There are notable exceptions to the duty.
Immediate US neighbors Canada and Mexico, which were separately targeted over illegal immigration and fentanyl, are not affected by the 10 percent global tariff.
Also off the hook are copper, pharmaceuticals, semiconductors and lumber -- although these are sectors that Trump is mulling levies on. Gold and silver, as well as energy commodities, are excluded too.

China focus

China has borne the brunt of Trump's levies. The world's two biggest economies engaged in an escalating tariffs war this year before a temporary pullback.
Both sides imposed triple-digit tariffs on each other's goods at one point, a level effectively described as a trade embargo.
After high level talks, Washington agreed to lower its levies on Chinese goods to 30 percent and Beijing slashed its own to 10 percent.
The US level is higher as it includes a 20 percent tariff imposed over China's alleged role in the global fentanyl trade.

Autos, metals

Trump has also targeted individual business sectors in his second term.
In March, he imposed a 25 percent levy on steel and aluminum imports and last month doubled them to 50 percent.
He has also rolled out a 25 percent tariff on imported autos, although those imported under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower levy.
Trump's auto tariffs impact vehicle parts too, while the president has issued rules to ensure automakers paying vehicle tariffs will not also be charged for certain other duties.

Canada, Mexico

Canadian and Mexican products were initially hard hit by 25 percent US tariffs, with a lower rate for Canadian energy.
Trump targeted both neighbors saying they did not do enough on illegal immigration and the flow of illicit drugs across borders.
But he eventually announced exemptions for goods entering his country under the USMCA, covering large swaths of products. Potash, used as fertilizer, got a lower rate as well.

Other threats

Beyond expansive tariffs on Chinese products, Trump ordered the closure of a duty-free exemption for low-value parcels from the country. This adds to the cost of importing items like clothing and small electronics.
Trump has also opened the door for 25 percent tariffs on goods from countries importing Venezuelan oil. He has threatened similar "secondary tariffs" involving Russian oil.
And he has ordered investigations into imports of copper, lumber, semiconductors, pharmaceuticals and critical minerals that could eventually bring new duties.

Legal challenges

Trump's sweeping tariffs on countries have faced legal challenges. The US Court of International Trade ruled in May that Trump had overstepped his authority with across-the-board global levies.
It blocked many of the duties from going into effect, prompting the Trump administration's challenge, and a US federal appeals court has since allowed the duties to remain while it considers the case.
bys/ksb

trade

Where do trade talks stand in the rush to avert higher US tariffs?

BY BEIYI SEOW WITH JULIEN GIRAULT IN TOKYO

  • - Vietnam: A pact with uncertainties - Washington and Hanoi unveiled a trade pact Wednesday with much fanfare and few details, but it allowed Vietnam to avoid Trump's initial 46 percent tariff.
  • As a Wednesday deadline approaches for steeper US tariffs to hit dozens of economies ranging from the EU to India, trade negotiations with President Donald Trump's administration are coming down to the wire.
  • - Vietnam: A pact with uncertainties - Washington and Hanoi unveiled a trade pact Wednesday with much fanfare and few details, but it allowed Vietnam to avoid Trump's initial 46 percent tariff.
As a Wednesday deadline approaches for steeper US tariffs to hit dozens of economies ranging from the EU to India, trade negotiations with President Donald Trump's administration are coming down to the wire.
The levies taking effect July 9 were announced in April, with the White House citing a lack of "reciprocity" in trade relations. But they were swiftly halted, allowing room for talks.
Days before their reimposition, where do things stand?

EU: 'Ready' for deal

The European Union said it is "ready for a deal" with Washington, with the bloc's trade chief meeting his US counterparts Thursday.
European Commission president Ursula von der Leyen said the EU was targeting an "agreement in principle" when it came to the July 9 cutoff.
With no deal, the US tariff on EU goods doubles from the "baseline" of 10 percent to 20 percent -- with Trump previously threatening a 50 percent level.

Vietnam: A pact with uncertainties

Washington and Hanoi unveiled a trade pact Wednesday with much fanfare and few details, but it allowed Vietnam to avoid Trump's initial 46 percent tariff.
Under the agreement, Vietnamese goods face a minimum 20 percent tariff while products made elsewhere face a 40 percent levy -- a clause to restrict "transshipping" by Chinese groups.
But there remain questions on how the higher levy would apply to products using foreign parts.
There is also a risk that Beijing will adopt retaliatory measures, analysts warned.

Japan: Rice, autos at stake

Despite being a close US ally and major source of foreign investment, Japan might not escape Trump's tariff hike.
Tokyo's trade envoy Ryosei Akazawa has made numerous trips to Washington through the end of June.
But Trump recently criticized what he described as Japan's reluctance to open up further to US rice and auto exports.
"I'm not sure we're going to make a deal," Trump said, adding that the country could pay a tariff of "30 percent, 35 percent, or whatever the number is that we determine."

India: A good position

Indian manufacturers and exporters want to believe they can avoid a 26 percent tariff.
Negotiations between both countries have been going well for weeks, and Trump himself suggested at the end of June that a "very big" agreement was imminent.
Ajay Sahai, director general of the Federation of Indian Export Organisations, said the feedback he received "suggests positive developments." But he maintained that the situation was fluid. 
Finance Minister Nirmala Sitharaman has stressed that agriculture and dairy products remain "very big red lines."

South Korea: Muted optimism

Seoul, which is already reeling from US tariffs on steel and autos, wants to avert a sweeping 25 percent levy on its other exports.
Cooperation in shipbuilding could be a bargaining chip, but "at this stage, both sides still haven't clearly defined what exactly they want," said new President Lee Jae Myung on Thursday.
"I can't say with confidence that we'll be able to wrap everything up by July 8," he added.

Indonesia, Thailand, Taiwan in the wings

Other Asian economies including Indonesia, Thailand and Cambodia, which faces a 49 percent tariff, wait with bated breath.
Indonesia has indicated willingness to boost energy, agriculture and merchandise imports from the United States. Bangladesh meanwhile is proposing to buy Boeing planes and step up imports of US agriculture products.
Taiwan, for whom Washington is a vital security partner, faces a 32 percent duty without a pact.
Although both sides have faced bumps along the way, Taiwanese Vice President Hsiao Bi-khim said "negotiators from both sides are working diligently" to find a path forward.

Switzerland: Hope for delay

Switzerland's government said Washington has acknowledged it was acting in good faith, and assumes its tariff level will remain at 10 percent on July 9 while negotiations continue.
But without a decision by the president as of the end of June, Switzerland did not rule out that levies could still rise to a promised 31 percent.
burs-jug-bys/jgc

dollar

As US stocks hit records, experts see the dollar falling further

BY JOHN BIERS

  • According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973.
  • While the US stock market has fully recovered from a spring rout, the relentless drop in the dollar is prompting currency experts to warn of greater financial market turmoil ahead.
  • According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973.
While the US stock market has fully recovered from a spring rout, the relentless drop in the dollar is prompting currency experts to warn of greater financial market turmoil ahead.
The American currency is down more than 10 percent so far in 2025, a historic retreat that has overlapped with occasional spikes in long-term US Treasury yields. 
The anomalous dynamic suggests investors are rethinking US holdings, once considered safe havens, as they take stock of President Donald Trump's unpredictable policy shifts.
While the dollar's status as the global reserve currency appears unshakeable in the near future, many currency experts expect the greenback to continue to weaken in the coming years, given expectations for slower growth after a long run of US out-performance.
"It's US exceptionalism basically falling by the wayside and the rest of the world playing catch-up," said Erik Nelson, a macro strategist at Wells Fargo, who predicts the dollar will continue to depreciate.
In April, global markets were shaken by "Sell America" gyrations in the stock, foreign exchange and US treasury markets, and analysts expect similar sentiment in the future.
"I think the world is becoming a little bit less stable politically, which is generally kind of problematic for economic and financial market volatility," Nelson said.
"We are witnessing the end of a 14-year bull run of the US dollar," said Joseph Brusuelas, chief economist at RSM US, a consultancy, who expects a "multi-year unwinding of the dollar."
Harvard Economist Kenneth Rogoff, author of the 2025 book "Our Dollar Your Problem," said central banks in China and elsewhere were diversifying away from dollars even before 2025, but that Trump accelerated the trend.
"I think we'll see a period of a lot of financial volatility, largely centered around the chaos in the United States," Rogoff told AFP, pointing to factors that include uncertainty about US central bank independence and the rise of populism.
"We'll probably have a more volatile period in financial markets over the next 10 years than we have in the preceding."

Onshoring benefit

Both Nelson and Rogoff pointed out that the dollar at the start of 2025 was unusually lofty after surging in the weeks following Trump's November 2024 victory. 
Economists have since rethought assumptions that the US would continue to outperform rival economies.
According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973.
On Thursday, the dollar index rose modestly after solid US jobs data dimmed odds for imminent Federal Reserve interest rate cuts.
With a gain of more than 13 percent against the dollar, the euro has been among the biggest winners following Germany's big fiscal investments in defense, even as the European Central Bank continued to cut interest rates.
Besides a weaker US economic outlook, the shift in the dollar reflects expectations for looser US monetary policy. Trump has taken relentless aim at Jerome Powell, referring to the Federal Reserve Chair as "a stupid person" while calling for interset rates "at least two to three points lower" -- a huge shift in monetary policy.
While Treasury Secretary Scott Bessent and other top officials have rejected suggestions they prefer a cheap dollar, a less expensive currency is beneficial to US exporters and consistent with the administration's stated goal of beefing up manufacturing.
"Lower interest rates and a weaker dollar would enable the US to strengthen its economic self-sufficiency and increase onshoring," said Jason Schenker of Prestige Economics, who argues that the moves align with a muscular national security posture towards China.
Market watchers have come to expect Trump to modulate his actions in response to big negative market swings. 
On April 9, Trump backtracked on many of the most onerous tariffs from his "Liberation Day" announcement a week earlier after a spike in Treasury bond yields hammered stocks. Later that month, he said he has "no intention" of firing Powell after earlier comments set markets ablaze.
But equity markets so far appear unfazed by dollar weakness, with both the S&P 500 and Nasdaq ending Thursday's session at records.
"At some point it's going to get investors' attention," Cresset Capital Management's Jack Ablin said of the weak dollar.
"It signals foreign investors are less inclined to own US assets." 
jmb/jgc

diplomacy

South American bloc looks to Asia, Europe in face of Trump trade war

BY MARTIN RASCHINSKY AND TOMAS VIOLA

  • Lula said that under his leadership, Mercosur would aim to "strengthen inter-bloc trade with external partners" and to implement a landmark trade agreement with the European Union.
  • South America's Mercosur bloc sought Thursday to expand its markets in the face of US President Donald Trump's global trade war, with Brazil calling for closer ties with dynamic Asian economies.
  • Lula said that under his leadership, Mercosur would aim to "strengthen inter-bloc trade with external partners" and to implement a landmark trade agreement with the European Union.
South America's Mercosur bloc sought Thursday to expand its markets in the face of US President Donald Trump's global trade war, with Brazil calling for closer ties with dynamic Asian economies.
"It's time for Mercosur to look toward Asia," President Luiz Inacio Lula da Silva said, extolling the potential benefits of deeper relations with Japan, China, South Korea, India, Vietnam and Indonesia.
In a reflection of regional tensions, however, Argentina's President Javier Milei threatened to go it alone if necessary to secure a free trade deal with the United States.
"We will embark on the path of freedom, and we will do so together or alone because Argentina cannot wait," Milei warned, calling for "more freedom" to negotiate.
The libertarian leader, a huge fan of Trump, has made no secret of his disdain for Lula, referring to him in the past as "corrupt" and a "Communist."
Lula, on his first trip to Argentina since Milei took office in December 2023, had no bilateral talks with the self-declared "anarcho-capitalist." 
The veteran Brazilian leftist, who took over Mercosur's rotating presidency from his Argentine counterpart, has accused Milei of talking "nonsense."
Lula said that under his leadership, Mercosur would aim to "strengthen inter-bloc trade with external partners" and to implement a landmark trade agreement with the European Union.
Brussels in December struck a deal with Mercosur's founding members -- Argentina, Brazil, Paraguay and Uruguay -- to create a free trade zone of around 700 million consumers.
The agreement has been 25 years in the making, but still needs to be ratified by EU member states.
It has faced stiff opposition from France, where farmers worry about being undercut by less-regulated Latin American peers.

Climate change on agenda

Uruguayan President Yamandu Orsi said that it was now "time to resume negotiations with key partners such as South Korea and Canada."
Uruguay has for decades sought a relaxation of the bloc's rules, which prevent agreements with other countries without the consent of all partners. 
Climate change, the energy transition, combating organized crime and promoting technological development would be Mercosur's main objectives during the next six months, Lula said.
Steps were discussed to make progress on trade agreements with the United Arab Emirates and Canada, as well as update accords with Colombia, Ecuador, Panama and the Dominican Republic, and to advance regional gas integration. 
On Wednesday, Mercosur foreign ministers announced a free trade agreement with the European Free Trade Association, made up of non-EU members Iceland, Liechtenstein, Norway and Switzerland.
Adding to the tense atmosphere surrounding the summit, Lula took the time to visit his ally Cristina Kirchner, the former Argentine president who is under house arrest.
Lula, who was granted permission by a court to see Kirchner, spent almost an hour at her apartment in Buenos Aires.
He found her "in good health, strong and determined to fight," he said on social media platform X.
"In addition to expressing my solidarity with her for everything she has been through, I wished her all the strength she needed to continue fighting, with the same determination that has characterized her career," he wrote. 
Kirchner hailed the visit as "much more than a personal gesture: it was a political act of solidarity," in her own message on X. 
Kirchner, the standard-bearer of the Argentine left for over two decades, was convicted of "fraudulent administration" while president between 2007 and 2015.
The 72-year-old, who says her trial was an attempt to silence her criticism of the right, began a six-year sentence last month after losing a Supreme Court appeal.
bur-sa/dr/st

investment

World Bank's IFC ramps up investment amid global uncertainty

BY ALEX PIGMAN

  • The Washington-based IFC -- the World Bank's private sector arm -- mobilizes private capital and provides financing to support businesses across emerging economies. 
  • While the world economy faces instability from US President Donald Trump's threats of a global trade war, the International Finance Corporation (IFC) is dramatically ramping up its investment activities.
  • The Washington-based IFC -- the World Bank's private sector arm -- mobilizes private capital and provides financing to support businesses across emerging economies. 
While the world economy faces instability from US President Donald Trump's threats of a global trade war, the International Finance Corporation (IFC) is dramatically ramping up its investment activities.
The Washington-based IFC -- the World Bank's private sector arm -- mobilizes private capital and provides financing to support businesses across emerging economies. 
Though not widely known outside development circles, the organization plays a crucial role in creating jobs and supporting growth in less developed regions.
"The world economy has been going through a bit of a turbulent time, but what I must say is that even though there is turbulence... we are seeing a lot of interest in investing in emerging countries," Makhtar Diop, the IFC's managing director, told AFP.
This optimism is backed by concrete numbers. In the fiscal year ending June 30, preliminary data shows that the IFC committed over $71 billion -- nearly double its commitment from just three years ago and a significant jump from last year's record of $56 billion.
The investment spans the globe, with more than $20 billion flowing to Latin America, $17 billion to Asia, and $15.4 billion to Africa. 
The dramatic increase stems from a deliberate strategic shift. 
Diop, an economist and former Senegalese finance minister, explained that the IFC has focused on becoming "simpler, more agile, and delegating decision-making to our teams that are in the field." 
This approach abandons the over-centralized structure that previously "was slowing down our ability to respond and seize new opportunities."
The timing is significant. As Western economies pull back from direct aid to developing countries -- constrained by mounting debts, rising defense budgets, and increasingly inward-looking politics -- the IFC has accelerated.
"It's totally understandable that they have fewer resources to make available in the form of grants to developing countries," Diop acknowledges.
However, he emphasized that World Bank funding for the world's poorest countries remains fully replenished, calling it "the most efficient and best way to support countries."
The IFC's expanding role within the World Bank Group is evident. Today, its funding nearly matches the support the bank provides directly to governments, making it an equal partner in development efforts.

Dubai to Africa

The organization is also attracting new types of investors. 
Many co-financing partners now come from regions that traditionally haven't invested outside their home areas. The IFC's largest renewable energy investment in Africa, for example, was completed with a Dubai-based company.
These investors trust the IFC not only for its market knowledge but also for the risk-mitigation tools it offers, Diop said.
In Africa particularly, the IFC pursues a strategy of identifying and supporting "national champions" -- successful local companies that need help to become more competitive and globally integrated.
A significant portion of the IFC's mandate involves sustainability projects, an area where Diop decries debates with false choices between economic development and the environment, especially in electricity projects that form an important part of the agency's portfolio.
"It happens that today, you don't have to make that trade-off because the sustainable solutions are often the cheaper ones, and that's the beauty of what we are seeing," he said. 
While fossil fuel generation remains part of the energy mix to ensure grid stability, the economics increasingly favor clean alternatives.
Behind all these investments lies an urgent demographic reality: 1.2 billion young people will reach working age in developing countries over the next decade. 
For the World Bank, creating employment for this massive cohort is paramount.
"The first question of any leader you meet from the developing world is how can you help to create jobs for young people?" Diop observed.
Beyond infrastructure development that stimulates broader economic activity, Diop identifies tourism, pharmaceuticals, and agriculture as the most promising sectors for job creation. 
These industries can offer the scale and growth potential needed to absorb the coming wave of young workers entering the global economy.
arp/st

Global Edition

Stocks climb as strong US jobs data soothes growth worries

  • The House of Representatives approved the bill Thursday shortly after the stock market closed, sending Trump a major legislative win. 
  • Wall Street stock indices finished at fresh records Thursday following solid US jobs data as President Donald Trump's sweeping budget bill successfully reached the congressional finish line.
  • The House of Representatives approved the bill Thursday shortly after the stock market closed, sending Trump a major legislative win. 
Wall Street stock indices finished at fresh records Thursday following solid US jobs data as President Donald Trump's sweeping budget bill successfully reached the congressional finish line.
The US economy added 147,000 jobs in June while unemployment dipped to 4.1 percent from 4.2 percent, a sign of US labor market resilience despite the White House's wave of tariffs.
"We have a nice rally going, and the reason for that is that the employment data was stronger than expected," said Peter Cardillo of Spartan Capital Securities, who noted that the market overlooked that the job additions included a heavy share of public sector posts.
Markets also monitored progress on Trump's massive fiscal package, which extends tax reductions but also includes controversial cuts to social programs and is projected to swell the US deficit.
The House of Representatives approved the bill Thursday shortly after the stock market closed, sending Trump a major legislative win. 
Both the S&P 500 and Nasdaq ended a holiday-shortened session at records.
"Market participants (and the economy) will be digesting the implications of the bill for some time, but it is fair to say that neither the stock market nor the Treasury market are living in fear of deficit forecasts," said a note from Briefing.com.
Earlier, London's stock market and the pound recovered, having taken a knock Wednesday on rumors that British finance minister Rachel Reeves faced losing her job.
Oil prices fell, with OPEC and the cartel's crude-producing allies expected to announce a rise to output Sunday.
Investors had been keenly awaiting the US government's monthly non-farm payrolls report, seen as one of the best data points on the health of companies and the labor market.
"The much stronger non-farm payrolls data means a July rate cut is now no longer in consideration, which is music to stock market bulls' ears", said City Index and FOREX.com analyst Fawad Razaqzada, because it indicates the economy is in good health.
US markets are closed on Friday for US Independence Day celebrations, but negotiators from several nations are racing to reach trade deals with Washington ahead of a July 9 tariff deadline imposed by Trump.
Trump has said he will not push back his deadline to make more deals, though he and some of his officials have mentioned that a number were in the pipeline.

Key figures at around 1830 GMT

New York - Dow: UP 0.8 percent at 44,823.53 (close)
New York - S&P 500: UP 0.8 percent at 6,279.35 (close)
New York - Nasdaq Composite: UP 1.0 percent at 20,601.10 (close)
London - FTSE 100: UP 0.6 percent at 8,823.20 (close)
Paris - CAC 40: UP 0.2 percent at 7,754.55 (close)
Frankfurt - DAX: UP 0.6 percent at 23,934.13 (close)
Tokyo - Nikkei 225: UP 0.1 percent at 39,785.90 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 24,069.94 (close)
Shanghai - Composite: UP 0.2 percent at 3,461.15 (close)
Euro/dollar: DOWN at $1.1755 from $1.1799 on Wednesday
Pound/dollar: UP at $1.3642 from $1.3636
Dollar/yen: UP at 145.06 yen from 143.66 yen
Euro/pound: DOWN at 86.14 pence from 86.53 pence
West Texas Intermediate: DOWN 0.7 percent at $67.00 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $68.80 per barrel
burs-jmb/jgc

conflict

UN expert says firms 'profiting' from 'genocide' of Palestinians

  • - 'Profited from the violence' - Albanese told journalists she had contacted all 48 companies named in her report, entitled "From economy of occupation to economy of genocide".
  • UN rights expert Francesca Albanese on Thursday denounced companies she said "profited from the Israeli economy of illegal occupation, apartheid, and now genocide", in a report that provoked a furious response from Israel.
  • - 'Profited from the violence' - Albanese told journalists she had contacted all 48 companies named in her report, entitled "From economy of occupation to economy of genocide".
UN rights expert Francesca Albanese on Thursday denounced companies she said "profited from the Israeli economy of illegal occupation, apartheid, and now genocide", in a report that provoked a furious response from Israel.
Some of the companies named in her report also raised objections.
Albanese presented her report, investigating "the corporate machinery sustaining the Israeli settler-colonial project of displacement and replacement of the Palestinians", to the UN Human Rights Council.
Companies should stop all business activities and relationships that caused or contributed to rights violations and international crimes, she argued.
In response, Israel's mission in Geneva said Albanese's report was motivated by her "obsessive, hate-driven agenda to delegitimise the state of Israel".
It was "legally groundless, defamatory and a flagrant abuse of office", it added.
Swiss mining and commodity trading giant Glencore, named in the report, also denounced her allegations as "unfounded".

Machinery of erasure'

Albanese is the UN's special rapporteur on the rights situation in the Palestinian territories occupied since 1967.
She described the situation in the Gaza Strip and the West Bank as "apocalyptic" as she presented the report.
"In Gaza, Palestinians continue to endure suffering beyond imagination," she added.
Businesses from arms makers to supermarkets and universities had facilitated "this machinery of erasure", Albanese told the UN's top rights body.
Some had supplied the financial and general infrastructure for Israeli settlements on occupied Palestinian territories, she said.
"All have helped entrench apartheid and enable the slow, inexorable destruction of Palestinian life."
Her presentation Thursday was received with applause in the chamber.
But Albanese has faced harsh criticism, allegations of anti-Semitism and demands for her removal, from Israel and some of its allies, over her relentless criticism and long-standing accusations of "genocide".
While appointed by the Human Rights Council she does not speak on behalf of the United Nations itself.

'Profited from the violence'

Albanese told journalists she had contacted all 48 companies named in her report, entitled "From economy of occupation to economy of genocide".
Eighteen had responded and "only a small number engaged with me in good faith", most of them saying "there was absolutely nothing wrong".
"There have been people and organisations who have profited from the violence, the killing," she said.
"My report exposes a system, something that is so structural and so widespread and so systemic that there is no possibility to fix it and redress it: it needs to be dismantled."
Albanese said the first responsibility to take action was on countries, then on companies, then their consumers.
However, "we are part of a system where we are all entangled and choices that we make... have an impact elsewhere", she said.
"There is a possibility for consumers to hold these companies accountable, because somewhat we vote through our wallets."

'Unsubstantiated'

AFP sought a comment from several companies named in the report. Some did not respond. 
Travel platform Booking.com said: "Our mission is to make it easier for everyone to experience the world and as such we believe it's not our place to decide where someone can or cannot travel." 
A communications firm representing Microsoft said the tech giant "doesn't have anything to share".
Danish shipping giant Maersk said it disagreed with many of Albanese's assertions.
Maersk "remains committed to following international standards for responsible business conduct", it said.
Since the war between Israel and Hamas began, "we have maintained a strict policy of not shipping weapons or ammunition to Israel", it added.
A Volvo Group spokesman told AFP: "We obviously respect human rights in accordance with the United Nations framework.
"We have no operations of our own, either in Palestine or in Israel, but rather sell through resellers," he added.
Glencore, in its response, said: "We categorically reject all the allegations appearing in this report and consider them unsubstantiated and devoid of any legal basis."
Hamas's October 7, 2023 attack that prompted the Israeli offensive resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally based on Israeli official figures.
Israel's retaliatory military campaign has killed at least 57,130 people in Gaza, also mostly civilians, according to the Hamas-run territory's health ministry. The United Nations considers its figures reliable.
Israel has occupied the West Bank since 1967 and violence has surged in the territory since October 2023.
rjm-burs/vog/jj

Modi

Modi pushes further India-Africa cooperation on Ghana visit

  • The Indian prime minister also on Thursday called for a greater global diplomatic role for both his country and Africa, warning that "the world order created after the Second World War is changing fast".
  • Indian Prime Minister Narendra Modi on Thursday outlined plans for deeper ties between his country and Africa, as New Delhi increasingly vies for a stronger economic presence on the continent along with China and Russia.
  • The Indian prime minister also on Thursday called for a greater global diplomatic role for both his country and Africa, warning that "the world order created after the Second World War is changing fast".
Indian Prime Minister Narendra Modi on Thursday outlined plans for deeper ties between his country and Africa, as New Delhi increasingly vies for a stronger economic presence on the continent along with China and Russia.
In a speech to Ghana's parliament, Modi highlighted a major rail project that opened in the west African nation last year, financed by the India Export-Import Bank.
He also underlined his country's expanding diplomatic development and business footprint in Africa.
"Over 200 projects across the continent enhance connectivity, infrastructure and Industrial capacity," Modi said. On the political front he welcomed "the establishment of Ghana-India Parliamentary Friendship Society in your parliament".
Modi's visit is the first to Ghana by an Indian leader in three decades.
But India's rival China remains the most important backer of infrastructure across the continent, a position only strengthened as the United States and other Western powers slash aid programmes.
In a meeting Wednesday, Modi and Ghanaian President John Mahama agreed to deepen security and mining ties.
In November 2024, the Indian prime minister visited Nigeria, discussing trade and security at a time when Indian companies had expressed interest in investing in Nigerian industries including steel.
The Indian prime minister also on Thursday called for a greater global diplomatic role for both his country and Africa, warning that "the world order created after the Second World War is changing fast".

Global South's voice

Modi noted that the African Union had been admitted as a permanent member to the G20 while India held the rotating presidency of the bloc.
Progress on worldwide challenges including climate change, diplomacy, "terrorism" and pandemics "cannot come without giving voice to the Global South", he added.
India, the world's most populous country and a nuclear-armed power, has close ties with Russia but is often in rivalry with China.
Resource-rich Ghana is Modi's first stop in a tour that will take the Indian premier to four other countries in Africa, the Caribbean and South America.
The visit to Accra came as he made his way to Brazil for a summit of the BRICS group of emerging economies on Sunday and Monday.
Highlighting his own country's economic development aspirations to become a "developed nation by 2047," Modi said "India remains a committed partner in Africa's development journey."
str/nro/jj

economy

Trump close to victory on flagship tax bill

BY FRANKIE TAGGART

  • But after its last procedural hurdle in the early hours of Thursday, the bill was on course for a final vote that would put it on Trump's desk to be signed into law.
  • US lawmakers teed up a final vote on Donald Trump's marquee tax and spending bill Thursday after bruising Republican infighting nearly derailed the centerpiece of the president's domestic agenda.
  • But after its last procedural hurdle in the early hours of Thursday, the bill was on course for a final vote that would put it on Trump's desk to be signed into law.
US lawmakers teed up a final vote on Donald Trump's marquee tax and spending bill Thursday after bruising Republican infighting nearly derailed the centerpiece of the president's domestic agenda.
Trump appeared close to victory as Congress edged towards passing his "One Big Beautiful Bill," despite misgivings in his party over a text that would balloon the national debt and launch a historic assault on the social safety net.
The bill will be a major landmark in Trump's political life, and comes after he scored recent major wins, including in the Supreme Court and with US strikes that led to a ceasefire between Israel and Iran.
Speaker Mike Johnson had struggled through the night to corral his rank-and-file Republican members after the package scraped past a series of "test" votes in the House of Representatives that laid bare deep divisions in the party.
But after its last procedural hurdle in the early hours of Thursday, the bill was on course for a final vote that would put it on Trump's desk to be signed into law.
"No, I don't think they caved," an upbeat Johnson said of Republican holdouts.
"They deserved that amount of time to go through it and figure out the meaning and how it would be applied, and ask questions of the administration."
The timing of the vote slipped back as Democratic minority leader Hakeem Jeffries continued a speech -- lasting more than seven hours -- opposing the bill in a tactic to delay proceedings.

Funds for mass deportation

Trump's sprawling legislation squeezed through the Senate on Tuesday but had to return to the lower chamber for a rubber stamp of revisions.
The package honors many of Trump's campaign promises, boosting military spending, funding a mass migrant deportation drive and committing $4.5 trillion to extend his first-term tax relief.
But it is expected to pile an extra $3.4 trillion over a decade onto the country's fast-growing deficits, while shrinking the food stamps program and forcing through the largest cuts to the Medicaid health insurance scheme for low-income Americans since its 1960s launch.
While Republican moderates in the House are anxious that the cuts will damage their prospects of reelection, fiscal hawks chafed over savings that they say fall far short of what was promised.
Johnson had to negotiate tight margins, and can likely only lose three lawmakers in the final vote, among more than two dozen who had previously declared themselves open to rejecting Trump's bill.

'Abomination'

The 869-page text only passed in the Senate after a flurry of tweaks that pulled the House-passed version further to the right.
Some estimates put the total number of recipients set to lose their insurance coverage under the bill at 17 million. Scores of rural hospitals are expected to close.
Johnson had been clear that he banked on Trump leaning on waverers, as the president has in the past to turn around contentious votes that were headed for failure.
The Republican leader has spent weeks hitting the phones and hosting White House meetings to cajole lawmakers torn between angering welfare recipients at home and incurring his wrath.
"What a great night it was. One of the most consequential Bills ever. The USA is the 'HOTTEST' Country in the World, by far!!!" Trump said on social media Thursday as he scented victory.
The bill underlines Trump's total dominance of the Republican Party in his second term, and comes as he celebrates a Supreme Court ruling last week that curbed lone judges from blocking his radical policies.
But House Democrats have signaled that they plan to campaign on the bill to flip the House in the 2026 midterm elections, pointing to data showing that it represents a historic redistribution of wealth from the poorest Americans to the richest.
Jeffries held the floor for his Democrats ahead of the final vote, as he told the stories of everyday Americans whom he argued would be harmed by Trump's legislation. 
"This bill, this one big, ugly bill -- this reckless Republican budget, this disgusting abomination -- is not about improving the quality of life of the American people," he said.  
ft/bgs/des

economy

Hidden gem: Angola opens up to tourists in a pivot from oil

BY GRIFFIN SHEA

  • These include Cabo Ledo, where Muteca is a qualified surfing instructor with the sport's accredited body.
  • When Feliesiano Muteca started surfing a decade ago, he had the waves at Cabo Ledo on Angola's long Atlantic coastline pretty much to himself. 
  • These include Cabo Ledo, where Muteca is a qualified surfing instructor with the sport's accredited body.
When Feliesiano Muteca started surfing a decade ago, he had the waves at Cabo Ledo on Angola's long Atlantic coastline pretty much to himself. 
Now, the unspoilt and sandy beach about 125 kilometres (75 miles) south of the capital Luanda has become a prized destination for international surfers, with a reputation as a hidden gem.
The Portuguese-speaking southern African nation is still scarred by a long post-independence civil war that stalled its development, although parts of Luanda flash with oil money.
Wary of its dependence on oil and already burned by the market's volatility, Angola is embarking on a drive to lure back foreign tourists by easing access for travellers and boosting its attractions.
These include Cabo Ledo, where Muteca is a qualified surfing instructor with the sport's accredited body.
"There are two of us, and we give surf lessons," said Muteca, who started out when he was about 10 years old by borrowing boards from other surfers.
"Otherwise, we're there to help out on the beach," he said, pointing to thatched cabanas being assembled on the sand.
Further along, a small lodge has set up a beachside bar and cafe, with cabins on the hillside overlooking the Atlantic. 
It is filled with a group of Germans enjoying the shade between waves. The same company, Carpe Diem, has a larger resort just up the coast.
Nearby tourist sites like the dramatic seaside Miradouro da Lua cliffs once had little more than a dusty road to a lookout point. 
Now there’s a smoothie hut and a cocktail bar, with a branded wooden frame showing the best angles for photos and selfies.

Cruises and cuisine

After five decades of war that ended in 2002, the vast country had a Stalinist government suspicious of the outside world. 
Oil fuelled a post-war boom but an oil crash sent the kwanza currency tumbling. In 2014, it traded at around 100 to the US dollar. It is now trading around 900 to one dollar.
The oil boom days sent tourism to a high of nearly $1.6 billion in 2014, with the yacht crowd filling Luanda Bay and splashing huge sums on lavish beach parties. 
That plunged to just $14.8 million last year, according to the National Bank.
It led the government to adopt a new tourism strategy. 
Since last year, dozens of countries have visa-free entry. An airport where soldiers once patrolled with AK-47s is now staffed with smiling young travel ambassadors wearing denim overalls with bibs that read: "Can I help you?".
The yacht club remains busy but Luanda has also become a stop for cruise liners.
Local tour companies are opening to guide visitors through the less developed interior. 
And high-end international companies are adding Angola to their itineraries.
Luanda-born writer Claudio Silva in June co-hosted a week-long journey for foodies, travelling with a top Angolan chef to visit new wineries and explore pre-colonial cuisine and heritage farming.
"Deep-dive gastronomic tours like the one we’re doing with Roads and Kingdoms are an opportunity for us to tell our own stories, through food and culture, in urban and rural settings, where our journey is guided by the experiences of the people who live here," he said.
South African luxury train operator Rovos Rail has also added the Angolan port city of Lobito to its routes, creating overland treks that can run across the continent from the Indian Ocean to the Atlantic.
Those journeys pass through inland areas largely unseen by outsiders for decades. That means accommodation can be basic or require camping. 
The once-rich wildlife population was decimated by the years of war but government-sponsored repopulation efforts are under way, said Pedro Monterroso of African Parks, a non-profit conservation group.
Local rangers and communities are also being trained to become involved in the safari sector, said Monterroso, whose organisation has been hired by Angola to run Iona National Park along the Namibian border in the ancient Namib desert. 
"The vision is they want to be Namibia or Botswana in 10 or 15 years," Monterroso said, referring to Angola's neighbours that draw tens of thousands of foreign tourists every year to their unspoiled natural riches.
gs/br/kjm

tariff

US trade deficit widens in May as Trump tariffs fuel uncertainty

BY BEIYI SEOW

  • US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed.
  • The US trade deficit widened more than expected in May, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains.
  • US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed.
The US trade deficit widened more than expected in May, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains.
Trade data published Thursday showed the world's biggest economy logged an overall trade gap of $71.5 billion, in the month after Trump imposed a 10 percent duty on most trading partners before pausing steeper rates for dozens of these economies.
This was an expansion from the $60.3 billion deficit in April, according to the Commerce Department.
The figures, however, came as both imports and exports shrank in May.
US imports were down 0.1 percent to $350.5 billion, as incoming shipments of goods ticked down.
Imports of consumer goods dropped by $4.0 billion, with those of certain apparel and toys both sliding, although imports of autos and parts climbed.
US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed.
US trade has been rocked by Trump's sweeping tariff announcements since the start of this year, as companies stocked up to get ahead of expected levies and halted shipments to wait for high duties to come down.
This was the case when Trump doubled down on tariffs impacting goods from China in April. Tit-for-tat tariffs on both sides surged to prohibitive levels before Washington and Beijing de-escalated tensions in mid-May.
Trade is "at risk of introducing more volatility in the data," said Bernard Yaros, lead US economist at Oxford Economics.
This is especially as the world heads towards a July 9 deadline when Trump's pause on higher duties for dozens of economies including the European Union, Japan and South Korea is due to expire.
"A worst-case tariff outcome this month would apply further downward pressure on imports," Yaros warned.
The path forward is unclear and he expects levels to land somewhere between their current position and the steep levels initially unveiled in April.
He cited a US deal with Vietnam announced Wednesday where the country averted the harsh tariff rate Trump first announced.
But Yaros maintains that "the true health of the economy will be better distilled by the consumer and business spending figures, which are showing signs of weakness."
Carl Weinberg, chief economist at High Frequency Economics, expects Federal Reserve policymakers to look past the fluctuations in inventories as they decide on further interest rate adjustments.
"There is not much in this report to alter the Fed's view that the economy remains strong," he said.
bys/bgs