retail

Amazon closing Fresh and Go stores in Whole Foods push

  • "The bet is that mass-market groceries sell more efficiently through same-day delivery, with Whole Foods as its primary physical retail brand.
  • Amazon on Tuesday said it is closing its Go and Fresh real-world stores to focus on its Whole Foods markets and online grocery delivery.
  • "The bet is that mass-market groceries sell more efficiently through same-day delivery, with Whole Foods as its primary physical retail brand.
Amazon on Tuesday said it is closing its Go and Fresh real-world stores to focus on its Whole Foods markets and online grocery delivery.
Go and Fresh shops doubled as innovation centers for Amazon, which tested systems such as eliminating checkout stations and automatically billing customers for the items they have with them as they leave the store.
"Go and Fresh showed what was technologically possible, but not what was viable economically," said Emarketer senior analyst Zak Stambor.
"The bet is that mass-market groceries sell more efficiently through same-day delivery, with Whole Foods as its primary physical retail brand.
Grocery sales at Amazon's same-day delivery service grew 40-fold in the past year and an option for ultra-fast delivery of fresh food and other items in 30 minutes or less is being tested, according to the company.
Amazon will "continue inventing on behalf of customers to develop a mass physical store format that brings customers distinctive selection, value, and convenience," the e-commerce giant founded by Jeff Bezos said in a blog post.
Ideas being explored include a new retail supercenter where people can shop for groceries, household essentials and general merchandise, according to Amazon.
Amazon aims to open more than 100 new Whole Foods stores in coming years, with some Go and Fresh shops being converted into Whole Foods outlets.
Whole Foods sales have grown 40 percent, and the number of stores has increased to more than 550 locations, since the chain was bought by Amazon in 2017, the retail titan said.
The deal was valued at $13.7 billion.
Amazon ranked itself as one of the top three grocers in the United States.
"We believe Amazon's reallocation of resources towards the Whole Foods and fast delivery experience likely benefits the logistics flywheel," Baird Equity senior research analyst Colin Sebastian said in a note to investors, reasoning that the grocery business is a large growth opportunity for the company.
gc/dw

economy

Trump's Iowa trip on economy overshadowed by immigration row

BY DANNY KEMP

  • Trump has promised Americans a new "golden age" fueled by tariffs on other countries, but until late last year he dismissed growing voter concerns over what he called the affordability "hoax."
  • US President Donald Trump headed to Iowa Tuesday eager to show voters he cares about affordability -- but his trip was overshadowed by anger over the deadly immigration crackdown in the neighboring state of Minnesota.
  • Trump has promised Americans a new "golden age" fueled by tariffs on other countries, but until late last year he dismissed growing voter concerns over what he called the affordability "hoax."
US President Donald Trump headed to Iowa Tuesday eager to show voters he cares about affordability -- but his trip was overshadowed by anger over the deadly immigration crackdown in the neighboring state of Minnesota.
Trump's visit to the Republican-leaning state -- famed as one of the first stops for primary campaigns in US presidential elections -- is part of what the White House says will be weekly trips across the country.
"I'm going to Iowa and what can I say -- the economy's good, it's all good, prices are coming way down and we have a lot of positive news," Trump told reporters as he left the White House.
His spokeswoman Karoline Leavitt said Trump would be visiting a local business before giving a speech on "affordability and on the economy."
"And I know he very much looks forward to being there, to meeting with the great people of Iowa, but also lawmakers as well," Leavitt said Monday.
White House officials said the speech would also touch on energy, prices of which Trump says are falling.
But the 79-year-old president's attempts to talk up the economy risk being obscured by fallout over the killing of a second protester in Minneapolis this month.
Most of the questions Trump faced as he headed for his helicopter concerned the shooting of nurse Alex Pretti by a federal agent just over three hours drive away from the venue of his Iowa speech.
Accompanying Trump to Iowa was was deputy chief of staff Stephen Miller, the architect of his immigration policy, who described Pretti without evidence as a "would-be assassin." 

'Very sad'

But Trump has sought to pivot amid the growing backlash, taking a more conciliatory tone, reaching out to the Democratic governor of Minnesota and mayor of Minneapolis, and sending his border czar to the city.
He called the shooting a "very sad situation" on Tuesday and refused to back Miller's "assassin" description -- while insisting that under-fire Homeland Security chief Kristi Noem would not step down.
The political row over immigration, one of Trump's core campaign issues, adds to the woes of a president already suffering in the polls on other subjects.
The economy is a particular trouble spot for the billionaire property developer.
Trump has promised Americans a new "golden age" fueled by tariffs on other countries, but until late last year he dismissed growing voter concerns over what he called the affordability "hoax."
He faced a fresh blow Tuesday as data showed US consumer confidence plunged in January to its lowest level since 2014.
In recent weeks, however, the White House has moved to tackle what was rapidly becoming a weak spot for Republicans ahead of November's crucial midterm elections.
Trump will start making weekly pre-midterm trips to sell his agenda around the country while cabinet members will also increase domestic travel, his chief of staff Susie Wiles said last week.
Yet many of Trump's campaign-style speeches have rapidly veered into diatribes about subjects like immigration, and he faces accusations from Democrats of being out of touch on the economy.
dk/mlm

earnings

GM reports quarterly loss but boosts shareholder returns

BY JOHN BIERS

  • On Tuesday, GM raised its dividend by 20 percent and announced it had authorized $6 billion in new share repurchases.
  • General Motors announced Tuesday fresh actions to return funds to investors, lifting shares despite reporting a quarterly loss on costs connected to its electric vehicle retreat.
  • On Tuesday, GM raised its dividend by 20 percent and announced it had authorized $6 billion in new share repurchases.
General Motors announced Tuesday fresh actions to return funds to investors, lifting shares despite reporting a quarterly loss on costs connected to its electric vehicle retreat.
The results were dented by a previously-announced hit of $7.1 billion, mostly due to write-down on EV investments following an about-face in US environmental policy enacted by President Donald Trump's administration.
That resulted in a fourth-quarter loss of $3.3 billion, compared with a loss of $3.0 billion in the year-ago period.
Annual profits fell 55 percent to $2.7 billion.
But the big US automaker, which has undertaken significant strategic pivots in light of Trump's aggressive policy changes on trade and fuel economy rules, projected higher profits in 2026.
GM described its performance in 2025 as "resilient," with 2026 "positioned to be stronger than 2025," according to a company presentation.
GM expects solid vehicle pricing to continue amid relatively tight vehicle inventories that stand "slightly" below the company's target of having 50-60 days of supply on hand. 
GM also plans launches of key vehicles, including its popular Chevrolet Silverado pickup.
"We grew the business and adapted to significant changes in tax and trade policy, to deliver full year (earnings) at the high end of guidance range," said Chief Executive Mary Barra
Revenues dipped 5.1 percent to $45.3 billion on lower vehicle sales compared with the year-ago period.
GM has significantly scaled back its EV investments while redirecting billions of dollars in capital towards boosting production of gasoline-fired vehicles.
However, Barra has said the company continues to believe in an EV future, in part because "we know once somebody drives an EV, they rarely go back to internal combustion engine," she said on Tuesday's analyst call.

Lower auto inventories

GM expects 2026 tariff costs of $3.0-$4.0 billion after incurring $3.1 billion in 2025, a bit below the $3.5 to $4.5 billion previously forecast.
The latest wildcard in White House trade policy came Monday night when Trump said he would raise tariffs on South Korean goods to 25 percent, accusing the Asian country's legislature of not enacting policy to cement a US-South Korea deal setting a 15 percent tariff.
GM has a significant operation in South Korea, including production of the Chevrolet Trax, a moderately-priced compact sport utility vehicle.
GM's forecasts still include the 15 percent levy. Barra said she was "hopeful" about the lower rate but would offset the hit if there is a period with a higher levy.
GM's North American inventories have gradually edged lower over the last year, standing at 486,000 vehicles at the end of the year, down 18.6 percent from the end of 2024.
Pricing will be "flat to up 0.5 percent," according to a GM slide.
The company does not anticipate a "big buildup" in vehicle supply, Chief Financial Officer Paul Jacobson said on the conference call.
Jacobson emphasized GM's ongoing commitment to shareholder returns, noting the company has repurchased $23 billion in stock since November 2023, reducing its outstanding share count by nearly 35 percent.
On Tuesday, GM raised its dividend by 20 percent and announced it had authorized $6 billion in new share repurchases.
Shares surged 8.6 percent shortly after midday.
jmb/des/msp

regulation

US banks fight crypto's push into Main Street

BY ALEX PIGMAN

  • The White House remains confident the bill can get back on track, and warns of the consequences if the opportunity is missed and the Democratic party wins midterm elections in November.
  • The banking industry is pushing back against White House-aligned crypto companies seeking to expand their business to Main Street customers in the United States.
  • The White House remains confident the bill can get back on track, and warns of the consequences if the opportunity is missed and the Democratic party wins midterm elections in November.
The banking industry is pushing back against White House-aligned crypto companies seeking to expand their business to Main Street customers in the United States.
At the heart of the battle being waged by some of Washington's most powerful lobbies is control over several trillions of dollars in banking deposits and a debate over whether crypto companies can offer an alternative place to stash cash.
The crypto industry has long had a complicated and adversarial relationship with traditional banks, a distrust dating back to the birth of the crypto movement in the wake of the 2008 financial crisis. Crypto believers fear that banks are trying to derail their rise.
The current battle centers on draft legislation -- the Clarity Act -- that would allow crypto players to offer cash rewards to stablecoin holders, boosting their ability to lure customers away from traditional banks.
According to the American Banking Association, these incentives would endanger the $6.6 trillion in deposits parked in traditional banks, especially lenders smaller than the national giants JPMorgan Chase or Bank of America.
These deposits are the lifeblood of the economy, especially in areas outside major cities, where local banks use them to finance loans to individuals, small businesses and farmers.
"Community banks make 60 percent of all the small business loans in this country," Independent Community Bankers of America CEO Rebeca Romero Rainey told AFP. "They make 80 percent of all agriculture loans. If they don't have those deposits, where are the funds coming from to fund those loans?"
Stablecoins are cryptocurrencies designed to maintain steady value by being pegged to traditional assets like cash or US government bonds -- meaning they can be used reliably for transactions and transfers while bypassing banks.
The crypto industry touts them as proof that crypto businesses can be trusted and aren't necessarily high-risk or vulnerable to scams.
For Bhau Kotecha, CEO and co-founder of platform Paxos Labs, banning stablecoins from offering interest "would narrow the use cases that make stablecoins compelling for mainstream adoption."
The key player in the battle is Coinbase and its CEO Brian Armstrong, who has led efforts to rehabilitate crypto's reputation after years of scandals and a Biden administration notably skeptical of crypto's benefits.
In the runup to the 2024 election, Armstrong and Silicon Valley venture capital firm Andreessen Horowitz helped raise tens of millions of dollars for the Trump campaign and lawmakers on both sides of the aisle to change Washington's stance on crypto.
The gamble paid off with the Republican sweep in November 2024.
Since Donald Trump's victory, crypto companies have seen their power and influence surge. Trump and his wife Melania each have their crypto coins, and his sons are heavily invested in the industry. One bill -- the GENIUS Act -- has already been signed into law, giving stablecoins long-sought legal recognition.
But with the Clarity Act -- a broader proposal setting the rules of the road for digital assets -- the crypto industry is moving onto the banking industry's turf.

Beware of the midterms

For banks, the risk of customers diverting deposits to stablecoins and potentially gutting their core business was too grave a threat.
After their concerns were heard, the Senate Banking Committee was poised last month to pass a version of the bill that would ban stablecoins from paying interest.
An irate Armstrong maneuvered to have the bill pulled, and the Clarity Act is now stuck in limbo.
"We'd rather have no bill than a bad bill," Armstrong wrote on X.
The banks counter that if the crypto industry wants to operate as banks, they should apply for banking licenses and be regulated like any other lender.
The White House remains confident the bill can get back on track, and warns of the consequences if the opportunity is missed and the Democratic party wins midterm elections in November.
"You might not love every part of the CLARITY Act, but I can guarantee you'll hate a future Dem version even more," said Patrick Witt, who coordinates crypto policy at the White House.
arp-tu/ksb

addiction

TikTok settles hours before landmark social media addiction trial

BY GLENN CHAPMAN

  • TikTok's settlement joins Snapchat, which last week confirmed that it made a deal to avoid the trial brought by K.G.M. The terms were not disclosed.
  • Video sharing app TikTok has made an eleventh-hour deal to avoid a landmark US trial accusing it, along with Meta and YouTube, of addicting young people to social media, lawyers said on Tuesday.
  • TikTok's settlement joins Snapchat, which last week confirmed that it made a deal to avoid the trial brought by K.G.M. The terms were not disclosed.
Video sharing app TikTok has made an eleventh-hour deal to avoid a landmark US trial accusing it, along with Meta and YouTube, of addicting young people to social media, lawyers said on Tuesday.
The deal was made as jury selection was to begin in a Los Angeles court that could establish a legal precedent on whether social media companies deliberately designed their platforms to addict children.
The case being heard in the California state court is being called a "bellwether" proceeding because its outcome could set the tone for a tidal wave of similar litigation across the United States.
The remaining defendants in the suit are Alphabet and Meta, the tech titans behind YouTube and Instagram.
Meta co-founder and Chief Executive Mark Zuckerberg is slated to be called as a witness during the trial.
"The parties are pleased to have reached an amicable resolution of this dispute," the Social Media Victims Law Center said, noting that the terms of the settlement with TikTok are confidential.
The case focuses on allegations that a 19-year-old woman identified by the initials K.G.M. suffered severe mental harm because she was addicted to social media.
After joining YouTube at age six, Instagram at 11, Snapchat at 13, and TikTok at 14, the Californian claims to have developed an addiction to the sites that contributed to her depression, anxiety, body image issues and that stoked suicidal thoughts.
Social media firms are accused in hundreds of lawsuits of addicting young users to content that has led to depression, eating disorders, psychiatric hospitalization and even suicide.
Lawyers for the plaintiffs are explicitly borrowing strategies used in the 1990s and 2000s against the tobacco industry, which faced a similar onslaught of lawsuits arguing that companies sold a harmful product.
The trial before Judge Carolyn Kuhl is expected to start next week after a jury is selected.

'Significant victory'

"This is the first time that a social media company has ever had to face a jury for harming kids," Social Media Victims Law Center founder Matthew Bergman, whose team is involved in more than 1,000 such cases, told AFP.
The center is a legal organization dedicated to holding social media companies accountable for harms allegedly caused to young people online.
"The fact that now K.G.M. and her family get to stand in a courtroom equal to the largest, most powerful and wealthy companies in the world is, in and of itself, a very significant victory," Bergman said.
Internet titans have argued that they are shielded by Section 230 of the US Communications Decency Act, which frees them of responsibility for what social media users post.
However, this case argues those firms are culpable for business models designed to hold people's attention and to promote content that winds up harming their mental health.
"The allegations in these complaints are simply not true," said Jose Castaneda, a YouTube spokesperson.
"Providing young people with a safer, healthier experience has always been core to our work," he added.
Meta has also rejected the allegations.
TikTok's settlement joins Snapchat, which last week confirmed that it made a deal to avoid the trial brought by K.G.M. The terms were not disclosed.
The companies face two other similar trials in the same court scheduled for later this year.
Lawsuits, including some brought by school districts, accusing social media platforms of practices endangering young users are also making their way through federal court in Northern California and state courts across the country.
gc-arp/msp

earnings

LVMH 2025 net profit drops 13% to 10.9 bn euros

  • But sales at the company, best known for Louis Vuitton handbags, Dior fashion, Moet & Chandon champagne and Tiffany jewellery, also dropped by five percent to 80.8 billion euros as tariffs and geopolitical uncertainty hit consumer sentiment.
  • The world's leading luxury group, LVMH, saw net profit slide 13 percent in 2025 to 10.9 billion euros ($13.1 billion) as an exceptional tax on large French companies weighed on its bottom line. 
  • But sales at the company, best known for Louis Vuitton handbags, Dior fashion, Moet & Chandon champagne and Tiffany jewellery, also dropped by five percent to 80.8 billion euros as tariffs and geopolitical uncertainty hit consumer sentiment.
The world's leading luxury group, LVMH, saw net profit slide 13 percent in 2025 to 10.9 billion euros ($13.1 billion) as an exceptional tax on large French companies weighed on its bottom line. 
But sales at the company, best known for Louis Vuitton handbags, Dior fashion, Moet & Chandon champagne and Tiffany jewellery, also dropped by five percent to 80.8 billion euros as tariffs and geopolitical uncertainty hit consumer sentiment.
The wines and spirits division took the hardest hit with a nine percent drop in sales. 
However the top fashion and leather goods division, which accounts for nearly half of overall sales, also saw an eight percent drop in sales.
LVMH said it "showed good resilience and maintained its innovative momentum despite a disrupted geopolitical and economic environment" last year.
"Despite a geopolitical and macroeconomic environment that remains uncertain, the Group remains confident" for 2026, it added in its earnings statement.
Revenue also dropped by 5.1 percent in the final quarter of 2025 from the same period in 2024.
LVMH said sales in the United States grew in the second half of 2025 thanks to solid demand.
kap/rl/rmb

clothing

China's Anta Sports to become top Puma shareholder

  • Anta said in the statement that the stake would "further enhance its presence and brand recognition in the global sporting goods market", including China.
  • Chinese athletic goods giant Anta Sports will buy a controlling stake in historic German sportswear brand Puma for $1.79 billion, a stock exchange filing showed Tuesday.
  • Anta said in the statement that the stake would "further enhance its presence and brand recognition in the global sporting goods market", including China.
Chinese athletic goods giant Anta Sports will buy a controlling stake in historic German sportswear brand Puma for $1.79 billion, a stock exchange filing showed Tuesday.
As it expands its international presence, Anta will buy 43 million shares for 35 euros apiece from the French billionaire Pinault family's Artemis group, the statement to the Hong Kong exchange said, giving it a 29 percent stake.
The price is a more than 60-percent premium to Puma's last close, according to Bloomberg data, and values the deal at 1.51 billion euros.
Anta said in the statement that the stake would "further enhance its presence and brand recognition in the global sporting goods market", including China.
"We believe Puma's share price over the past few months does not fully reflect the long-term potential of the brand," Anta chairman Ding Shizhong said.
While the statement said Anta had no plans to launch a full takeover of Puma, it will "carefully assess the possibility of further deepening the partnership between the two parties in the future".
Artemis said the sale would allow it to "redeploy its resources to new value-creating sectors".
The deal is expected to close by the end of the year, though it is subject to regulatory approvals, and the company will buy shares with cash.
In a statement sent to AFP, Puma CEO Arthur Hoeld welcomed Anta's move, calling it a "vote of confidence in Puma and its strategic direction".
"Anta aims to empower Puma to fully realise its brand potential and its heritage," Hoeld said.
Anta declined to comment on the deal when contacted by AFP.
The firm, based in China's southeastern Fujian province, is one of the world's largest sportswear companies.
Founded in 1991, it is the parent company of many global brands through its subsidiary Amer Sports, including Wilson, Arc'teryx and Salomon.
Anta closed its acquisition of Finland-based Amer in 2019, leading a consortium in a deal worth about $5.2 billion.
It also controls rights in the vast Chinese market for foreign sportswear firms including Fila and Descente.
Anta has become the world's third-largest sportswear brand following Nike and Adidas, according to data analytics firm Euromonitor International.
The purchase shows Anta "narrowing the gap" to those two giants, according to Marguerite Le Rolland, senior global insight manager for fashion at Euromonitor International.
The Chinese sportswear giant will benefit from Puma's global reputation, its leading position in India's expanding sportswear market, and its partnership with Hyrox, the rapidly growing fitness trend, she said.
"For Puma, this transaction will provide extra financial resources to turn around the business".
The German brand has been struggling with weak demand in recent months and saw sales decrease more than 15 percent in the third quarter of last year.
CEO Hoeld, who was appointed last year, has said the brand had become "too commercial" and was undergoing a "reset" last year to improve on brand heat, distribution quality and product offering.
Hoeld told investors in October that the company's goal was to "become a top three sports brand in the future again".
He deemed 2026 a "year of transition", vowing a return to growth in 2027.
Puma is set to release its 2025 full-year financial results on February 26.
pfc-mya-sam-bur/iv

indicator

US consumer confidence drops to lowest level since 2014

BY BEIYI SEOW

  • She added that all five components of the index worsened, driving the overall level to its lowest since May 2014 -- "surpassing its Covid-19 pandemic depths."
  • Consumer confidence in the United States plunged in January to its lowest level since 2014, survey data showed Tuesday, as American households continue to fret about inflation and elevated costs of living.
  • She added that all five components of the index worsened, driving the overall level to its lowest since May 2014 -- "surpassing its Covid-19 pandemic depths."
Consumer confidence in the United States plunged in January to its lowest level since 2014, survey data showed Tuesday, as American households continue to fret about inflation and elevated costs of living.
The Conference Board's Consumer Confidence Index slumped by 9.7 points from December to 84.5, with consumers growing more cautious about major spending decisions.
A consumption slowdown -- if it took hold -- would hit at the key driver of the world's biggest economy, with consumer spending accounting for more than two-thirds of US GDP.
The new data comes as US President Donald Trump struggles to reverse voters' negative feelings about the economy ahead of the critical midterm elections in November -- in which his Republican Party risks losing control of Congress.
"Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened," said the research group's chief economist Dana Peterson.
She added that all five components of the index worsened, driving the overall level to its lowest since May 2014 -- "surpassing its Covid-19 pandemic depths."
While the Conference Board survey data on expectations has diverged from spending patterns in the past, economist Oliver Allen of Pantheon Macroeconomics said: "We'd be surprised if its recent deterioration proves to be an entirely false signal."
This is "particularly given the recent stagnation in real incomes and the already rock-bottom personal saving rate," he said in a note.
In January, net views on current business conditions "dwindled to just barely positive," while perceptions of employment conditions also weakened, The Conference Board said.
Meanwhile, consumers tended to be pessimistic about factors influencing the economy.
"The low hiring rate is a problem," said Navy Federal Credit Union chief economist Heather Long.
"Layer on top of that a lot of geopolitical uncertainty over Venezuela, Greenland and the Federal Reserve, and Americans continue to be frustrated with the economy," she added.
Peterson of The Conference Board flagged that "references to prices and inflation, oil and gas prices, and food and grocery prices remained elevated."
"Mentions of tariffs and trade, politics, and the labor market also rose in January, and references to health/insurance and war edged higher," she said.
Consumers increasingly indicated that they were not planning on big-ticket purchases in the next six months as well, suggesting that they are becoming more selective in their spending.
"Used cars, furniture, TVs, and smartphones remained the most popular within their categories for future purchases," according to The Conference Board.
bys/des

trade

Mexico exports jump in 2025 despite US trade tensions

  • While Mexico's manufacturing exports grew 9.8 percent last year, its auto exports were down by 4.2 percent.
  • Mexico's exports climbed 7.6 percent in 2025, despite its auto, steel and aluminum sectors being swept up in US President Donald Trump's tariffs blitz, according to figures released Tuesday.
  • While Mexico's manufacturing exports grew 9.8 percent last year, its auto exports were down by 4.2 percent.
Mexico's exports climbed 7.6 percent in 2025, despite its auto, steel and aluminum sectors being swept up in US President Donald Trump's tariffs blitz, according to figures released Tuesday.
Over 80 percent of Mexico's exports, which totalled $664.8 billion, went to the neighboring United States, according to statistics released by national statistics agency INEGI.
Latin America's second-biggest economy, which is part of a free-trade agreement with the United States and Canada, has so far largely managed to avoid bilateral US tariffs.
But its steel and aluminum have been hit by levies on US imports of the metals of up to 50 percent.
Its key auto and auto parts sectors also face tariffs of 25 percent on goods that do not fall under the USMCA (United States-Mexico-Canada) trade agreement.
While Mexico's manufacturing exports grew 9.8 percent last year, its auto exports were down by 4.2 percent.
The country's imports also rose last year, but at a slower pace -- 4.4 percent -- than exports, resulting in a trade surplus of $771 million.
Under pressure from Trump, Mexico has hiked tariffs on China, its second-largest trading partner after the United States.
Trump accuses Chinese producers of using Mexico as a tariffs-free backdoor into the United States.
Sheinbaum's decision to implement tariffs of up to 50 percent on some Chinese goods from January 1 was widely seen as a concession to her powerful northern counterpart ahead of a review of the USMCA deal set for the fist half of 2026.
Mexico has also increased levies on imports from other countries with which it does not have a trade deal, including South Korea, India, Indonesia, Russia, Thailand, Turkey, Taiwan and Brazil.
jla/ai/cb/des

Global Edition

Hybrid cars top choice for consumers in Europe in 2025: data

  • Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.
  • Hybrid-electric vehicles dethroned purely petrol-powered cars as the top power option among consumers in Europe last year, data showed Tuesday.
  • Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.
Hybrid-electric vehicles dethroned purely petrol-powered cars as the top power option among consumers in Europe last year, data showed Tuesday.
Some 10.8 million new vehicles were registered in 2025 in the European Union, an increase of 1.8 percent from the previous year, according to the European Automobile Manufacturers' Association (ACEA). 
New car sales "remain well below pre-pandemic levels", however, the trade association said in a statement.
Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.
Sales of hybrid-electric vehicles climbed by 13.5 percent last year to account for 34.5 percent of total sales in the EU last year, putting them ahead of petrol cars at 26.6 percent.
Meanwhile, sales of battery-electric vehicles jumped by 30 percent to account for 17.4 percent of overall sales, though the ACEA noted that the gain was from a weak performance in 2024 and needs to rise further to stay on track with the EU's transition goals.
Sales of plug-in hybrids also rose, but sales of petrol and diesel vehicles dropped.
The combined market share of petrol and diesel cars fell to 35.5 percent, down from 45.2 percent in 2024.
Volkswagen Group saw sales rise by 5.5 percent last year to increase its lead as the top-selling carmaker in Europe.
France's Renault saw similar growth, but Stellantis, which owns several European brands such as Peugeot and Fiat, saw sales slide by 4.7 percent.
Chinese carmaker BYD tripled its sales in the EU last year, although from a small base.
China's SAIC Motor, which owns the MG brand, saw sales rise by a third. 
Sales of Teslas fell by nearly 38 percent last year as the electric car brand has suffered reputational damage in Europe from its association with billionaire Elon Musk, who backed US President Donald Trump before a falling-out, and who has endorsed Germany's far-right AfD party. 
leb/rl/

welfare

Germany takes aim at 'bureaucratic jungle' with welfare reforms

  • Bas, of the centre-left SPD party, added the reforms should help those who are entitled to benefits but "are currently unable to claim them due to the bureaucratic jungle".
  • Germany's government unveiled major reforms Tuesday aimed at slashing the "bureaucratic jungle" of its welfare system but insisted that benefits to those in need would not be rolled back.
  • Bas, of the centre-left SPD party, added the reforms should help those who are entitled to benefits but "are currently unable to claim them due to the bureaucratic jungle".
Germany's government unveiled major reforms Tuesday aimed at slashing the "bureaucratic jungle" of its welfare system but insisted that benefits to those in need would not be rolled back.
The EU's most populous country is notorious for its myriad rules and regulations, and conservative Chancellor Friedrich Merz has vowed to slay the "monster" of onerous red tape.
Part of this drive is directed at overhauling a state welfare system where multiple agencies oversee different entitlements, and citizens have to fill out numerous lengthy documents to claim benefits.
A government-appointed commission laid out proposals that include moving more of the system online and reducing the number of agencies involved in overseeing benefits.
"The welfare state of tomorrow will be simpler, fairer and more digital," Labour Minister Baerbel Bas told a press conference, unveiling the commission's report.
"Less paperwork, simpler applications, faster decisions."
Bas, of the centre-left SPD party, added the reforms should help those who are entitled to benefits but "are currently unable to claim them due to the bureaucratic jungle".
Entitlements would not be cut, she said, despite calls from some in her coalition partner, Merz's centre-right CDU party, to do so.
"It was clear from the outset that this was not about cutting benefits," she said, insisting that current levels of protection would be maintained.
Some have called for what they view as generous entitlements to be trimmed back at a time when the German economy is stagnating and the government needs more money for greater defence and infrastructure spending.
Bas said however that savings would still be generated due to greater efficiencies.
Merz praised the reforms, telling a conference organised by the Welt media group in Berlin that they "really involve a fundamental structural reform of the social security systems".
Among the commission's recommendations is that several existing benefits -- including basic unemployment benefits, housing and child support -- be combined to form a single benefit. 
Only two agencies would be responsible for benefits in future, down from four now.
By making the system more digital and bringing together various benefits, different welfare authorities should be able to more easily exchange data, meaning people do not have to repeatedly give the same details to make claims.
The aim is to have the changes passed into law by the end of 2027, although Bas conceded that timeline was "very ambitious".
sr/fz/jh

migration

Spain to regularise 500,000 undocumented migrants

  • The plan will be passed through a decree that will not need approval in parliament, where the Socialist-led coalition lacks a majority.
  • Spain's left-wing government approved Tuesday a plan to regularise around 500,000 undocumented migrants by decree, the country's latest break with harsher policies elsewhere in Europe.
  • The plan will be passed through a decree that will not need approval in parliament, where the Socialist-led coalition lacks a majority.
Spain's left-wing government approved Tuesday a plan to regularise around 500,000 undocumented migrants by decree, the country's latest break with harsher policies elsewhere in Europe.
Migration Minister Elma Saiz the beneficiaries would be able to work "in any sector, in any part of the country", and extolled "the positive impact" of migration.
"We are talking about estimations, probably more or less the figures may be around half a million people," she told public broadcaster RTVE.
Saiz said at a news conference after Tuesday's cabinet meeting that "we are strengthening a migration model based on human rights, integration, coexistence, and compatible with economic growth and social cohesion".
The measure will affect those living in Spain for at least five months and who applied for international protection before December 31, 2025.
Applicants must have a clean criminal record. The regularisation will also apply to their children who already live in Spain.
The application period is expected to open in April and continue until the end of June.
The plan will be passed through a decree that will not need approval in parliament, where the Socialist-led coalition lacks a majority.
The conservative and far-right opposition lashed out at the government, saying the regularisation would encourage more illegal immigration. 
Alberto Nunez Feijoo, head of the Popular Party, the main right-wing opposition group, wrote on X that the "ludicrous" plan would "overwhelm our public services".
"In Socialist Spain, illegality is rewarded," he said, vowing to change migration policy "from top to bottom" if he took power.

 'Social justice'

The Spanish Catholic Church was among the organisations praising the move, commending "an act of social justice and recognition".
Socialist Prime Minister Pedro Sanchez says Spain needs migration to fill workforce gaps and counteract an ageing population that could imperil pensions and the welfare state.
Sanchez has said migration accounted for 80 percent of Spain's dynamic economic growth in the last six years.
Official data released Tuesday showed that 52,500 of the 76,200 people who pushed up employment numbers in the final quarter of last year were foreigners, contributing to the lowest jobless figure since 2008.
Spain's more open stance contrasts with a trend that has seen governments toughen migration policies under pressure from far-right parties that have gained ground across the European Union.
Around 840,000 undocumented migrants lived in Spain at the beginning of January 2025, most of them Latin American, according to the Funcas think-tank. 
Spain is one of Europe's main gateways for irregular migrants fleeing poverty, conflict and persecution, with tens of thousands of mostly sub-Saharan African arrivals landing in the Canary Islands archipelago off northwestern Africa.
According to the latest figures published by the National Statistics Institute, more than seven million foreigners live in Spain out of a total population of 49.4 million people.
bur-imm/js

trade

EU, India agree 'mother of all' trade deals

BY UMBERTO BACCHI

  • "We have created a free trade zone of two billion people, with both sides set to benefit."
  • India and the European Union announced Tuesday the "mother of all deals", a huge trade pact to create a market of two billion people, reached after two decades of negotiations.
  • "We have created a free trade zone of two billion people, with both sides set to benefit."
India and the European Union announced Tuesday the "mother of all deals", a huge trade pact to create a market of two billion people, reached after two decades of negotiations.
EU chiefs and Prime Minister Narendra Modi hope the pact will help shield against challenges from the world's two leading economies, the United States and China.
The agreement will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said.
"A mother of all deals," Modi said Tuesday in the capital New Delhi, where he met with European Commission President Ursula von der Leyen and European Council President Antonio Costa.
"This deal will bring many opportunities for India's 1.4 billion and many millions of people of the EU," Modi said, adding the agreement "represents about 25 percent of global GDP, and one-third of global trade".
The EU has eyed India -- the world's most populous nation -- as an important market for the future.
"Europe and India are making history today," von der Leyen said in a statement, a day after she and Costa were feted as guests of honour at India's Republic Day parade.
"We have created a free trade zone of two billion people, with both sides set to benefit."

'Increasingly insecure world'

EU officials said the deal was the most ambitious India had ever agreed, and European companies would benefit from so-called "first mover advantage".
Europe's key agricultural, automotive and service sectors stand to gain.
But sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers' anger in Europe, were left out of the agreement.
New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.
It also includes a security partnership, providing "new opportunities" for defence companies, Modi said.
"We are not only making our economies stronger -- we are also delivering security for our people in an increasingly insecure world," von der Leyen said, speaking alongside Modi after exchanging agreements.
"By combining these strengths, we reduce strategic dependencies, at a time when trade is increasingly weaponised," she added.
Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.
Under the agreement, India is expected to ease market access, and European firms will get privileged access to the Indian financial services and maritime transport market, the bloc said.

'Highest level of access'

Tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent -- with a quota of 250,000 vehicles -- while duties on wines progressively go down from 150 percent to as low as 20 percent.
Currently at 50 percent, tariffs on processed foods -- including pasta and chocolate -- will be eliminated, according to the EU.
Von der Leyen said she expected exports to India to double, and that the EU would "gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market".
For India, it would boost sectors including textiles, gems and jewellery, and leather goods, as well as the service sector, Modi said.
The accord comes as both Brussels and New Delhi seek to open up markets in the face of US tariffs and Chinese export controls.
"The unprecedented preferential access secured for over 99 percent of Indian exports is a game-changer for Indian industry," said Chandrajit Banerjee, director general, Confederation of Indian Industry.
India is on track to become the fourth-largest economy this year, according to International Monetary Fund projections.
New Delhi, which has relied on Moscow for key military hardware for decades, has tried to cut its dependence on Russia in recent years by diversifying imports and pushing its own domestic manufacturing base.
Europe is doing the same with regard to the United States.
ub-pjm/mtp

trade

What we know about the EU-India trade deal

BY RAZIYE AKKOC

  • Brussels says the steel makes up seven percent of total Indian exports to the EU. Under the deal, India will benefit from a duty-free quota of 1.6 million tonnes, and New Delhi will relinquish its retaliation rights under the World Trade Organization, a senior EU official said.
  • The European Union and India announced Tuesday that they had struck a "historic" trade deal that Brussels hopes will see exports double to the Asian powerhouse.
  • Brussels says the steel makes up seven percent of total Indian exports to the EU. Under the deal, India will benefit from a duty-free quota of 1.6 million tonnes, and New Delhi will relinquish its retaliation rights under the World Trade Organization, a senior EU official said.
The European Union and India announced Tuesday that they had struck a "historic" trade deal that Brussels hopes will see exports double to the Asian powerhouse.
They had spent two decades negotiating but the return of US President Donald Trump and his hefty tariffs accelerated the push on both sides to seal a deal.
Here is what Brussels and New Delhi agreed in what India's Prime Minister Narendra Modi called the "mother of all deals":

What benefits for the EU?

Indian tariffs on more than 90 percent of EU goods will be removed or cut.
For example, India will progressively reduce levies to between 20 and 30 percent on European wines, down from 150 percent before the agreement.
Beer tariffs will drop to 50 percent from 110 percent, while spirits will see future levies of 40 percent, down from up to 150 percent.
India will also remove tariffs on EU olive oil -- a major export from Spain, Italy and Greece -- fruit juice, non-alcoholic beer and processed food including bread, pasta, chocolate and pet food. 
In a welcome move for one of the bloc's biggest sectors and especially Germany, tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent -- with a quota of 250,000 vehicles.
And India will eliminate tariffs on aircraft -- a potential boon for pan-European aerospace group Airbus -- as well as cutting levies to zero on most machinery, medical equipment, chemicals and pharmaceutical products.

How does India benefit?

According to Brussels, the EU's imports from India comprise mainly machinery and appliances, chemicals, base metals, mineral products and textiles.
India said the EU would immediately eliminate duties on products making up the majority of its exports including textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and certain marine products.
And the EU agreed to phase out tariffs for processed food items as well as arms and ammunition, among other goods.
Steel was a thorny issue in negotiations since India is a major exporter. Brussels says the steel makes up seven percent of total Indian exports to the EU.
Under the deal, India will benefit from a duty-free quota of 1.6 million tonnes, and New Delhi will relinquish its retaliation rights under the World Trade Organization, a senior EU official said.
Another sticking point for India was the EU's carbon border tax, which aims to ensure foreign producers pay a carbon cost similar to what European companies already pay under the bloc's internal emissions trading system.
Under the deal, the EU agreed to launch a technical dialogue on the tax if needed, and vowed not to treat any other EU partner better than India.
The EU has also promised to make it easier for skilled Indian workers to work in the 27-country bloc, agreeing to a memorandum of understanding on mobility covering issues related to seasonal workers, researchers and students, the EU official said.

What doesn't the deal include?

Sensitive agricultural products are excluded from the new deal.
The senior EU official said there were no concessions for sugar, ethanol, rice, soft wheat, beef, chicken meat, milk powders, bananas, honey or garlic.
He also said that unlike deals the EU has struck with other partners, there were no chapters on government procurement, on energy and raw materials, or on the liberalisation of investment in manufacturing sectors.
India also opposed any chapter on "sustainable development where we focus on social rights and also environmental issues", the official added.
The two partners are discussing a separate agreement on Geographical Indications, the intellectual property rights that link a product's qualities, reputation or features to its place of origin.
This "will help traditional EU farming products sell more in India, by removing unfair competition in the form of imitations", the EU executive said.
India said the deal safeguarded sensitive sectors including dairy, cereals, poultry, soybean meal and certain fruits and vegetables.
raz/ec/js

unemployment

Spain unemployment drops below 10% in first since 2008

  • "For the first time since 2008, unemployment falls below 10 percent.
  • Spain's historically stubborn unemployment fell below 10 percent in the fourth quarter of last year, official data showed on Tuesday, a first since the 2008 financial crisis.
  • "For the first time since 2008, unemployment falls below 10 percent.
Spain's historically stubborn unemployment fell below 10 percent in the fourth quarter of last year, official data showed on Tuesday, a first since the 2008 financial crisis.
The jobless rate in the European Union's fourth-largest economy was 9.93 percent in the period, 0.52 percentage points below the preceding quarter, the National Statistics Institute said.
It was the lowest reading since hitting 9.6 percent in the first quarter of 2008, at the onset of a global recession that left deep scars in the Spanish economy.
"For the first time since 2008, unemployment falls below 10 percent. Spain has almost 22.5 million people with jobs, a new record," Socialist Prime Minister Pedro Sanchez posted on X. 
The service sector, which includes the vital tourism industry that represents around 13 percent of annual economic output, accounted for the bulk of the fall, alongside agriculture and industry, the statistics office said.
Spain's economic growth has been consistently outperforming peers in the developed world, but its unemployment rate has been the highest in the European Union.
The rate peaked at around 27 percent in early 2013 in the wake of the economic crises but has steadily fallen in recent years as the tourism sector performed strongly after the Covid-19 pandemic.
The leftist government is aiming to bring it down to around eight percent by the end of its term in 2027, which it says corresponds to full employment.
imm/js

tariff

Trump says hiking tariffs on South Korean goods to 25%

BY KANG JIN-KYU WITH BEIYI SEOW IN WASHINGTON

  • Under the pact, Washington would maintain levies of up to 15 percent on South Korean goods including vehicles, car parts and pharmaceuticals.
  • South Korea's government on Tuesday held emergency talks after US President Donald Trump said he will raise tariffs on South Korean goods, including autos, lumber and pharmaceuticals.
  • Under the pact, Washington would maintain levies of up to 15 percent on South Korean goods including vehicles, car parts and pharmaceuticals.
South Korea's government on Tuesday held emergency talks after US President Donald Trump said he will raise tariffs on South Korean goods, including autos, lumber and pharmaceuticals.
Trump said Monday that he would raise tariffs on the goods, accusing South Korea of not living up to an earlier trade pact struck with Washington.
South Korea's presidential office said it had not been officially informed about the tariff hike plans in advance.
The increase would bring tariff levels from 15 percent to 25 percent.
"South Korea's Legislature is not living up to its Deal with the United States," Trump wrote on his Truth Social platform.
He added that he was increasing tariff rates "because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative."
On Tuesday, Seoul convened an emergency meeting to hash out a response, with Trade and Industry Minister Kim Jung-kwan, currently in Canada, joining remotely.
"Our government intends to convey its commitment to implementing the tariff agreement to the US side, while responding in a calm and measured manner," Seoul said in a statement.
The country added it believed Washington's "tariff hikes only take effect after administrative steps such as publication in the Federal Register".
South Korea has said Trade Minister Kim will travel to Washington for talks on the issue with US Commerce Secretary Howard Lutnick.
Trump's apparent about-face comes months after Washington and Seoul struck a trade and security deal, capping a period of tense negotiations.
The agreement was finalized after Trump met his South Korean counterpart Lee Jae Myung in October, and included investment promises by South Korea alongside tariff cuts by the United States.
Since then, it has remained in something of a legal limbo in South Korea.
Seoul's presidential office insisted in November that the deal does not require parliamentary approval, arguing it represents a memorandum of understanding rather than a binding legal document.
Asked whether the tariff deal had been submitted to parliament for approval, a senior official told AFP on Tuesday they were looking into it but did not elaborate.
Under the pact, Washington would maintain levies of up to 15 percent on South Korean goods including vehicles, car parts and pharmaceuticals.
Crucially, the deal's terms brought US tariffs on South Korean cars down from a 25 percent level.
Trump's latest threat, if enacted, would reverse that.

Export pain

The auto industry accounts for 27 percent of South Korea's exports to the United States, which takes in nearly half of the country's car exports.
A reversal to a higher tariff level could also put South Korean exports in a less advantageous position compared with economies like Japan and the European Union, which have both struck deals for a 15 percent US tariff.
The Trump administration has yet to issue formal notices to enact the changes.
The US president's threat targeting South Korea is his latest against key trading partners in recent days.
Over the weekend, Trump warned Canada that if it concludes a trade deal with China, he would impose a 100 percent tariff on all goods coming across the border.
Earlier in January, Trump also threatened to slap tariffs on multiple European nations until his purchase of Greenland is achieved. He has since backed off the threat.
bys-kjk/oho/cdl/ane

diplomacy

'Come more often!' Mexico leader urges K-pop stars BTS on sold-out tour

  • So moved was she by the disappointment of the unlucky many, she said she wrote to South Korea's President Lee Jae Myung to ask that he "bring the acclaimed K-pop artists more often" to her country.
  • Around the world, hundreds of thousands of fans of K-pop megastars BTS are nursing disappointment after failing to secure a ticket for their highly-anticipated comeback tour.
  • So moved was she by the disappointment of the unlucky many, she said she wrote to South Korea's President Lee Jae Myung to ask that he "bring the acclaimed K-pop artists more often" to her country.
Around the world, hundreds of thousands of fans of K-pop megastars BTS are nursing disappointment after failing to secure a ticket for their highly-anticipated comeback tour.
But only in one country -- Mexico -- has the dearth of tickets become a matter for the highest office in the land.
BTS will perform three dates in Mexico City in May.
The tickets, which went on sale last weekend, sold out in minutes, demonstrating the growing fervor among Mexicans for all aspects of South Korean culture, from television series to cuisine, to of course K-pop. 
The government has sought to cash in on the act.
When it was announced that BTS would perform in Mexico, Economy Secretary Marcelo Ebrard, a longtime fan, posted a video on TikTok in which he is seen greeting Jin, a member of the band.
Now, President Claudia Sheinbaum has gotten involved.
Addressing reporters on Monday, she declared that "nearly a million young people" had vied for one of the coveted 150,000 tickets to BTS's Mexican gigs.
So moved was she by the disappointment of the unlucky many, she said she wrote to South Korea's President Lee Jae Myung to ask that he "bring the acclaimed K-pop artists more often" to her country.
Sheinbaum said she had also asked Ocesa, the promoter of the shows in Mexico, about the possibility of organizing more dates, but received a negative answer.
BTS have not toured or released music since 2022 as they underwent the national military service required of all South Korean men under age 30.
The band's label announced on New Year's Day they would release a new album in March before heading on a mega-tour the following month that will take in 34 cities.
ai/acc/cb/mlm

Global Edition

Gold hits records as US policy rattles investors

  • "The relentless quest for hard assets continued amid yet more talk of tariffs and US government shutdowns," said Neil Wilson, a strategist at Saxo UK. Wall Street stocks enjoyed a benign session, with the S&P 500 finishing up 0.5 percent. 
  • Gold prices jumped to fresh records Monday on rising worries about geopolitics, tariff threats and another potential US government shutdown while Wall Street stocks drifted higher ahead earnings from tech giants.
  • "The relentless quest for hard assets continued amid yet more talk of tariffs and US government shutdowns," said Neil Wilson, a strategist at Saxo UK. Wall Street stocks enjoyed a benign session, with the S&P 500 finishing up 0.5 percent. 
Gold prices jumped to fresh records Monday on rising worries about geopolitics, tariff threats and another potential US government shutdown while Wall Street stocks drifted higher ahead earnings from tech giants.
The dollar fell, meanwhile, amid speculation of US-Japanese central bank coordination to support the yen. 
Gold climbed above $5,100 an ounce before retreating a bit as markets react to rising global uncertainty set off by US President Donald Trump's policies and statements, including threats to impose deep tariffs on China.
"It vaulted over the psychologically important 5,000 mark on a glittering streak, heading sharply higher as trade tensions emanating from the US unnerved investors," said Susannah Streeter, chief investment strategist at Wealth Club.
By comparison, gold could be had for just over $2,000 an ounce only two years ago. Silver prices have also spiked to record territory.
Shortly after 2000 GMT, gold was at $5,037.14 an ounce.
"The relentless quest for hard assets continued amid yet more talk of tariffs and US government shutdowns," said Neil Wilson, a strategist at Saxo UK.
Wall Street stocks enjoyed a benign session, with the S&P 500 finishing up 0.5 percent. 
Shares of Apple, Microsoft and Facebook won solid gains ahead of earnings later this week, reflecting "a little bit of front running of the idea that (the tech companies) would come in with good results yet again," said Briefing.com analyst Patrick O'Hare.
US investors largely shrugged off a growing furor in the United States over the latest killing of a civilian by Trump's crackdown in Minnesota over immigration enforcement. 
Several US senators said they would vote against coming government spending bills after federal agents killed a second American citizen in Minneapolis, significantly increasing the chances of a government shutdown next week.
The dollar was weighed down by a surge in the yen on speculation that authorities may intervene to prop up the Japanese currency, but also by limited visibility on the US economy and on inflation.
"The FX (foreign exchange) market is front and center at the start of this week and the focus is on the huge move higher in the yen," said Kathleen Brooks, research director at XTB trading group. 
"Reports suggest that Japanese officials were joined by the Federal Reserve Bank of New York who bought yen to support the beleaguered currency," she added.
The yen had slid amid worries about Japan's fiscal position, the central bank's decision to hold off on interest rate hikes, and expectations that the US Federal Reserve will stay put on the rates front this week.
The yen's rebound weighed on Tokyo's stock market because of its negative impact on exporters.
The US Fed is expected to hold interest rates steady this week despite Trump's pressure to slash them, which is seen as a threat to its independence, which has traditionally been one of the pillars of US assets' solidity

Key figures at around 2110 GMT

New York - Dow: UP 0.5 percent at 49,412.40 (close)
New York - S&P 500: UP 0.5 percent at 6,950.23 (close)
New York - NASDAQ Composite: UP 0.4 percent 23,601.36 (close)
London - FTSE 100: UP 0.1 percent at 10,148.85 (close)
Paris - CAC 40: DOWN 0.2 percent at 8,131.15 (close)
Frankfurt - DAX: UP 0.1 percent at 24,933.08 (close)
Tokyo - Nikkei 225: DOWN 1.8 percent at 52,885.25 (close)
Hong Kong - Hang Seng Index: UP 0.1 percent at 26,765.52 (close
Shanghai - Composite: DOWN 0.1 percent at 4,132.61 (close)
Dollar/yen: DOWN at 153.98 yen from 155.70 yen on Friday
Euro/dollar: UP at $1.1883 from $1.1828
Pound/dollar: UP at $1.3682 from $1.3643
Euro/pound: UP at 86.85 from 86.69 pence
Brent North Sea Crude: DOWN 0.4 percent at $65.59 per barrel
West Texas Intermediate: DOWN 0.7 percent at $60.63 per barrel
burs-jmb/gv

China

Migration, China ties dominate as Trump ally prepares to lead Honduras

BY JOAN SUAZO

  • On the eve of the election, Trump in a surprise move pardoned former Honduran president Juan Orlando Hernandez, from Asfura's party, who was serving a 45-year prison sentence in the United States for drug trafficking.
  • Conservative businessman Nasry "Tito" Asfura will be sworn in Tuesday as president of Honduras, two months after being helped to election victory by US President Donald Trump.
  • On the eve of the election, Trump in a surprise move pardoned former Honduran president Juan Orlando Hernandez, from Asfura's party, who was serving a 45-year prison sentence in the United States for drug trafficking.
Conservative businessman Nasry "Tito" Asfura will be sworn in Tuesday as president of Honduras, two months after being helped to election victory by US President Donald Trump.
Asfura was declared the winner of November's election by a razor-thin margin after Trump threatened to cut aid to Central America's poorest country if his "friend" was defeated.
His win gave the Republican leader another ally in Latin America after conservatives replaced leftists in Chile, Bolivia, Peru and Argentina.
A 67-year-old construction magnate of Palestinian descent, Asfura defeated TV star Salvador Nasralla in an election marred by allegations of fraud and a three-week wait for the results.
After his win, Asfura traveled to the United States to meet with Secretary of State Marco Rubio and also visited Israeli Prime Minister Benjamin Netanyahu.
Following his meeting with Rubio, the United States and Honduras announced plans to negotiate a free trade deal.
Tegucigalpa's ties with Beijing -- the outgoing left-wing government switched its support from Taiwan to China in 2023 -- were at the heart of the election.
Trump has been pressuring countries in Washington's backyard to choose between close ties with Washington or Beijing.
The US ouster of Venezuelan leader Nicolas Maduro, an ally of China, was widely seen as a warning to other Latin American countries to pick their camp.
Asfura has said he is considering switching ties back from China to the self-ruled island of Taiwan.

Fate of migrants

The fate of around two million Hondurans living in the United States, many without legal status, hangs in the balance.
Asfura has urged Trump to reinstate their Temporary Protected Status (TPS), a program that protected some 60,000 Hondurans from deportation.
Remittances from migrants represent a third of Honduras's GDP.
Rubio however has said Washington is looking forward to working with him to "end illegal immigration to the United States," among other issues.
Asfura has also promised to crack down on drug trafficking, entrenched in the highest spheres of power in Honduras, and go after powerful gangs such as Barrio 18 and MS-13.
"Extortion is what's holding back anyone who owns a business or works independently, and if you don't pay, they kill you," Daniel Santos, a 64-year-old taxi driver, told AFP, calling on Asfura to tackle the scourge "head on."
On the eve of the election, Trump in a surprise move pardoned former Honduran president Juan Orlando Hernandez, from Asfura's party, who was serving a 45-year prison sentence in the United States for drug trafficking.
Asfura has distanced himself from Hernandez.
str-axm/cb/mlm

summit

North Sea nations vow to boost wind power for energy independence

BY CLEMENT KASSER

  • "By building the North Seas as a power hub for Europe, we can enhance Europe's energy resilience," he said, adding that it would also provide affordable energy to consumers, support the offshore energy industry and help Europe achieve climate neutrality.
  • A group of northern European nations vowed Monday to build up climate-friendly wind power in the North Sea to achieve greater energy independence from foreign suppliers.
  • "By building the North Seas as a power hub for Europe, we can enhance Europe's energy resilience," he said, adding that it would also provide affordable energy to consumers, support the offshore energy industry and help Europe achieve climate neutrality.
A group of northern European nations vowed Monday to build up climate-friendly wind power in the North Sea to achieve greater energy independence from foreign suppliers.
German Chancellor Friedrich Merz hosted a summit in the port-city of Hamburg as Europe not only faces a hostile Russia but also worries about the future strength of transatlantic ties and US designs on Greenland.
Aiming to make Europe more resilient in an uncertain world, the group of countries pledged to boost off-shore wind power in the North Sea and turn it into the "world's largest clean energy reservoir".
They agreed to build up an additional 100 gigawatts of wind turbines -- enough to power about 100 million homes -- through an "unprecedented fleet of joint offshore wind projects". 
Germany and Denmark also agreed on a project called the Bornholm Energy Island that will see an additional 3 GW of offshore wind power be connected to both countries.
"The North Sea is a harsh environment, but it offers great opportunities," said Merz.
"By building the North Seas as a power hub for Europe, we can enhance Europe's energy resilience," he said, adding that it would also provide affordable energy to consumers, support the offshore energy industry and help Europe achieve climate neutrality.
The agreement is a "very clear signal to Russia", said EU Energy Commissioner Dan Jorgensen after it was signed by countries also including Belgium, Britain, France and Norway.
"No more will we let you blackmail member states of the European Union and no more will we help indirectly fund the war in Ukraine," he told a press conference.
Germany and other EU members have been scrambling to wean themselves off Russian energy imports since Moscow launched its 2022 full-scale invasion of Ukraine.
They have also been on heightened alert against suspected Russian sabotage and surveillance operations which they blame for severed seafloor cables and mysterious drone flights over airports and critical infrastructure. 

'Wind is for winners'

Imported US liquified natural gas has helped replace Russian gas in Europe's energy mix, and the European wind power push comes days after US President Donald Trump -- a strong promoter of oil drilling who denies man-made climate change is real -- branded wind farms "losers".
British Energy Secretary Ed Miliband said that "offshore wind is for winners" and "absolutely critical for our energy security".
It provides "homegrown, clean energy that we control" and that is not under "the control of the dictators and the petro-states", he said.
Proponents of wind energy argue it is not only good for the climate but also for security, as such decentralised systems are more resilient to sabotage and attack than traditional power plants, pipelines or oil tankers.
Simon Skillings of think tank E3G said recent so-called hybrid attacks on infrastructure and the Ukraine war had shown that "a more dispersed infrastructure is more robust. You need basically multiple attacks rather than single attacks to knock out an energy supply."

Greenland tensions

The Hamburg talks came as the issue of Greenland and broader Arctic security loom large.
Trump last week backed away from his threat to use force to seize Greenland, an autonomous Danish territory, and to level punitive tariffs against European NATO allies who stand in his way.
Among the leaders in Hamburg was Danish Prime Minister Mette Frederiksen, who visited Greenland on Friday.
"Europe has shown strength and unity these past weeks," she said. "I'm grateful, but I also have to say it's the only way forward. We have to build a much stronger Europe. 
"To get there, we need to become more self-sufficient, more competitive and more independent, and that is what today's meeting has been about."
Jorgensen -- himself from Denmark -- addressed the issue of whether the EU wants to reduce its dependence on US gas imports in future.
"We want to trade and deal with the US on as many issues as possible," he said, but he added that "we are not aiming at replacing one dependency with a new dependency". 
"We want to grow our own energy, and our strategy in the future is to become free of gas."
Frederiksen said "it was a huge mistake to be dependent on Russian fossil fuels" in the past and added: "Now we have to make sure that we will have no dependencies on other countries outside Europe, not only on energy, on everything."
burs/fz/bst/gv