lifestyle

Music popstar will.i.am meshes AI and 'micromobility'

  • "Their vehicle that got them to work is a part of their tool set; and it's working in the parking lot while they work," he added, referring to Trinity as "brains on wheels."
  • Black Eyed Peas star will.i.am is putting artificial intelligence agents to work in three-wheel vehicles tailored for modern urban life.
  • "Their vehicle that got them to work is a part of their tool set; and it's working in the parking lot while they work," he added, referring to Trinity as "brains on wheels."
Black Eyed Peas star will.i.am is putting artificial intelligence agents to work in three-wheel vehicles tailored for modern urban life.
The musician turned tech entrepreneur demonstrated a so-called autocycle called Trinity at Nvidia's annual developers conference that ends Thursday in the heart of Silicon Valley.
"I'm an artistic creator because of tech," will.i.am told AFP.
"Creating with musical teams is great, but hopping into a different realm and being hyper creative with full-stack developers, electrical engineers, mechanical engineers, world builders -- that is the ultimate level of creativity."
His Trinity startup is named for an alignment of human, vehicle and agentic AI.
The single-passenger electric vehicle, which shares its name with the startup, lets a human do the driving but is infused with an AI agent that acts as a virtual assistant for conversation-based collaborations on the move, he will.i.am said.
"When a human has an agent of their own, a company has a super employee," he said of brainstorming and delegating tasks to Trinity AI agents conversationally while commuting.
"Their vehicle that got them to work is a part of their tool set; and it's working in the parking lot while they work," he added, referring to Trinity as "brains on wheels."
The vehicle, designed to accelerate quickly from zero to 60 mph (96 kmh), uses an Nvidia graphics processor to power built-in AI that can interpret and reason about the world around it, according to the startup.
The vehicles are to be made in a Los Angeles facility that will also serve as a school for robotics and agentic AI systems.
"I was ambitious, audacious and a little bit of naive," will.i.am said of pursuing the project.
"That's a good combination, because if you don't have that little bit of naive and everything is skeptical, you probably wouldn't take crazy risks."
An initial production of run of 500 units is planned, with an aim to begin deliveries in August of next year, and to keep the vehicle's price at less than $30,000.
gc-rv/js

Fed

US Fed raises inflation outlook over 'uncertain' Iran war impact

BY ASAD HASHIM

  • "Uncertainty about the economic outlook remains elevated," the Fed said Wednesday, while noting that economic activity was "expanding at a solid pace."
  • The US Federal Reserve raised its inflation forecast Wednesday as it held interest rates steady, citing an "uncertain" economic outlook due to the war in Iran.
  • "Uncertainty about the economic outlook remains elevated," the Fed said Wednesday, while noting that economic activity was "expanding at a solid pace."
The US Federal Reserve raised its inflation forecast Wednesday as it held interest rates steady, citing an "uncertain" economic outlook due to the war in Iran.
The 11-1 vote on the benchmark lending rate was widely expected, but nonetheless defied US President Donald Trump's demands for a reduction as the world's largest economy battles stubborn inflation and weak labor demand.
Rates were kept steady at a range of 3.50 percent to 3.75 percent, with officials flagging one expected cut by the end of the year.
But the Fed raised its inflation outlook, now expecting its preferred personal consumption expenditures (PCE) measure to stand at 2.7 percent by December 2026, up from an earlier estimate of 2.4 percent.
"In the near term, higher energy prices will push up overall inflation," Fed Chair Jerome Powell said, referring to steeper costs from the war in the Middle East.
"But it is too soon to know the scope and duration of the potential effects on the economy," he told a press briefing after the Fed's policy meeting.
Powell refused to be drawn into sharing specifics of his expectations for how the war could affect the US economy.
"We're right at the beginning of this, and we don't know how big -- you just don't know how big this will be and how long it lasts," he said, adding that the Fed would have to "wait and see."
Trump has repeatedly insulted and criticized Powell for not slashing rates more aggressively, and in January, the Fed chair revealed that the US Justice Department had opened an investigation into him related to cost overruns on renovations at the bank's headquarters.
On Wednesday, Powell was also adamant that he would not leave the Fed's board when his term as chair is over in May -- his tenure as governor ends in 2028 -- until the investigation is completed.
"I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality," Powell said.

'Difficult situation'

The central bank had cut rates three consecutive times late last year before holding them steady at its January meeting.
It has a dual mandate of maintaining inflation near a long-term target of two percent while ensuring maximum employment. 
With war in the Middle East causing oil prices to spike, potentially fuelling widespread inflation and curbing growth, analysts said policymakers were unlikely to make any immediate moves. 
Affordability has been a key political issue for Trump, who has repeatedly called for rates to be cut even as price increases remained stubbornly high. 
"Uncertainty about the economic outlook remains elevated," the Fed said Wednesday, while noting that economic activity was "expanding at a solid pace."
"Job gains have remained low, and the unemployment rate has been little changed in recent months. Inflation remains somewhat elevated."
The Fed also released its quarterly summary of economic projections, expecting fourth-quarter GDP growth to come in at 2.4 percent year-on-year, and keeping its unemployment outlook steady at 4.4 percent.
Powell conceded that policymakers were in a "difficult situation" with two competing mandates, but that the current rate level was "the right place to be" to balance risks to inflation and unemployment.

Single dissenting vote

The only dissenting voice on Wednesday came from Fed Governor Stephen Miran, a close ally and former economic advisor of Trump, who voted for a quarter-point cut to interest rates.
But the Fed's statement defied analyst expectations of a more fragmented Fed amid diverging pressures.
KPMG chief economist Diane Swonk said that while it was easy to read the Fed's statement as only indicating rate cuts on the horizon, the "devil is always in the details."
Swonk told AFP the economic projections indicated that more policymakers were worried about declining growth with rising unemployment and inflation, a situation she described as "stagflation-esque."
At the press briefing, Powell played down the risk of stagflation, saying he would reserve the term "for a much more serious set of circumstances."
He appeared bullish about future prospects, while noting the uncertainty inherent in the current moment.
"The US economy is doing, you know, pretty well," he said. "It's just we don't know what the effects of this will be, and really no one does."
aha-myl/bys/js

Fed

US Fed Chair says 'no intention' of leaving board while probe ongoing

  • In January, Powell revealed that the Justice Department had launched a probe linked to cost overruns in the Fed's renovations.
  • US Federal Reserve Chair Jerome Powell said Wednesday that he did not plan to leave the central bank's board until a Justice Department probe linked to renovation costs was completed.
  • In January, Powell revealed that the Justice Department had launched a probe linked to cost overruns in the Fed's renovations.
US Federal Reserve Chair Jerome Powell said Wednesday that he did not plan to leave the central bank's board until a Justice Department probe linked to renovation costs was completed.
President Donald Trump has repeatedly insulted Powell over the central bank's policies on setting the economy's key interest rate.
In January, Powell revealed that the Justice Department had launched a probe linked to cost overruns in the Fed's renovations.
"I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality," Powell told a press briefing on Wednesday.
He added that he had not decided whether to continue serving as a Fed governor after his term as chair is over in May. His term as a governor ends in 2028.
Last week, a US federal judge quashed subpoenas issued to the Federal Reserve as part of the investigation, with the court saying there was "a mountain of evidence" to suggest the probe was a pressure tactic.
Judge James Boasberg's order was scathing in its criticism of the Trump-appointed prosecutor's office.
"The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual," he wrote.
US Attorney Jeanine Pirro has said the Trump administration would appeal the decision.
Trump has been vocal about his preferences for lower interest rates, criticizing Powell and attempting to unseat another Fed Governor, Lisa Cook, over mortgage fraud allegations.
On Wednesday, the Fed's key rate-setting committee decided to keep rates unchanged, as central bank policymakers digest the economic fallout of Trump's war on Iran.
Trump has nominated Kevin Warsh to replace Powell as Fed chair, but he is awaiting Senate confirmation.
That confirmation is in doubt, with Republican Thom Tillis of the Senate Banking Committee recently vowing to oppose the nomination of any Fed nominees -- including Warsh -- until the Justice Department probe into Powell is resolved.
On Wednesday, Powell also said he would stay in office as Fed chair until his successor is confirmed, as has been the practice in the past.
aha-bys/des

Global Edition

US stocks fall on latest oil price surge as Fed lifts inflation forecast

  • The latest surge in crude prices -- which moderated later in Wednesday's session -- acted as an equity market anchor throughout Wall Street's trading day, with losses picking up after Federal Reserve Chair Jerome Powell said he expected higher energy prices to boost inflation in the near term.
  • Oil prices surged Wednesday following a strike on a major Iranian gas facility as the Federal Reserve raised its inflation forecast while holding interest rates steady.
  • The latest surge in crude prices -- which moderated later in Wednesday's session -- acted as an equity market anchor throughout Wall Street's trading day, with losses picking up after Federal Reserve Chair Jerome Powell said he expected higher energy prices to boost inflation in the near term.
Oil prices surged Wednesday following a strike on a major Iranian gas facility as the Federal Reserve raised its inflation forecast while holding interest rates steady.
Brent oil futures rose over six percent at one point to nearly $110 a barrel after Iran vowed to hit energy facilities throughout the Gulf in retaliation to what it said was an Israeli attack on a facility serving a massive gas field it shares with Qatar.  
The latest surge in crude prices -- which moderated later in Wednesday's session -- acted as an equity market anchor throughout Wall Street's trading day, with losses picking up after Federal Reserve Chair Jerome Powell said he expected higher energy prices to boost inflation in the near term.
Beyond lifting inflation in the short-run, Powell indicated that little was clear at this point.
"We're right at the beginning of this, and we don't know how big -- you just don't know how big this will be and how long it lasts," he said, adding the Fed would have to "wait and see."
In earlier discouraging news for equities, US wholesale inflation data for February rose more than expected.
Major US indices finished near session lows with the broad-based S&P 500 losing 1.4 percent.
"There's nothing to push the market up right now," said Interactive Brokers' Steve Sosnick. "You've got higher rates, you have a bad inflation report, you have a Fed that's not inclined to do much."
Earlier Wednesday, oil prices had fallen slightly after Iraq said it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the Strait of Hormuz.
The strategic waterway usually sees a fifth of global oil pass through it but Iran has effectively shut it since the outbreak of the war, with attacks on ships.
But oil prices jumped as Iran reacted furiously to an Israeli attack on the South Pars gas field.
"This will complicate the situation and could have uncontrollable consequences, the scope of which could engulf the entire world," President Masoud Pezeshkian wrote on X.
Qatar's Ras Laffan facility was later targeted in Iranian strikes, with QatarEnergy saying emergency teams had been "deployed immediately to contain the resulting fires.
In response, the Qatari foreign ministry ordered several Iranian diplomats to leave the country immediately.
John Kilduff of Again Capital described the South Pars attack as a "red line" for Iran.
"Just when you think this can't get much worse, it finds a way to do so," Kilduff said.
The White House unveiled new steps Wednesday to try to counter surging oil prices, waiving a century-old shipping law and easing Venezuela sanctions.
But these and other steps announced by importers "are simply not enough," Kilduff said.  The market "needs a secured strait of Ormuz, so that navigation can be undertaken."
Markets are looking ahead to additional central bank meetings after the Fed.
On Thursday, the European Central Bank, the Bank of England and the Bank of Japan will all hold meetings.
While they were all expected to keep rates steady, the latest inflation reports could lead to more hawkish comments from the central bankers. 

Key figures at around 2130 GMT

Brent North Sea Crude: UP 3.8 percent at $107.38  per barrel
West Texas Intermediate: UP 0.1 percent at $96.32 per barrel
New York - Dow: DOWN 1.6 percent at 46,225.15 (close)
New York - S&P 500: DOWN 1.4 percent at 6,624.70 (close)
New York - Nasdaq Composite: DOWN 1.5 percent at 22,152.42 (close)
London - FTSE 100: DOWN 0.9 percent at 10,305.29 (close)
Paris - CAC 40: DOWN 0.1 percent at 7,969.88 (close)
Frankfurt - DAX: DOWN 1.0 percent at 23,502.25 (close)
Tokyo - Nikkei 225: UP 2.9 percent at 55,239.40 (close)
Hong Kong - Hang Seng Index: UP 0.6 percent at 26,025.42 (close)
Shanghai - Composite: UP 0.3 percent at 4,062.98 (close)
Euro/dollar: DOWN at $1.1451 from $1.1505 on Tuesday
Pound/dollar: DOWN at $1.3256 from $1.3320
Dollar/yen: UP at 159.87 yen from 159.07 yen
Euro/pound: UP at 86.38 pence from 86.37 pence
burs-jmb/des

US

War in the Middle East: latest developments

  • - Iran confirms spy chief death - Iran's President Masoud Pezeshkian confirmed what he called the "cowardly assassination" of the country's top intelligence official, Esmail Khatib who Israel said had been killed in a strike.
  • Here are the latest developments Wednesday in the Middle East war: - Israel vows to keep up strikes - The Israeli military vowed to continue targeting senior Iranian officials, after announcing it had killed Iranian Intelligence Minister Esmail Khatib.
  • - Iran confirms spy chief death - Iran's President Masoud Pezeshkian confirmed what he called the "cowardly assassination" of the country's top intelligence official, Esmail Khatib who Israel said had been killed in a strike.
Here are the latest developments Wednesday in the Middle East war:

Israel vows to keep up strikes

The Israeli military vowed to continue targeting senior Iranian officials, after announcing it had killed Iranian Intelligence Minister Esmail Khatib.
"We will continue to hunt down all of the regime's senior officials. The series of eliminations will not stop," a military spokesman said in a televised briefing.

'Uncontrollable consequences'

Iran's president warned of the risk of "uncontrollable consequences" of attacks on energy infrastructure, after facilities in the giant Iranian South Pars gas field were targeted by Israel.
"This will complicate the situation and could have uncontrollable consequences, the scope of which could engulf the entire world," Masoud Pezeshkian wrote on X.

Qatar gas complex attacked after Iranian field hit

Qatar's foreign ministry said that Iranian attacks on its main gas facility were a "a dangerous escalation, a flagrant violation of its sovereignty, and a direct threat to its national security." The state-run Qatar Energy said that fires set by Iranian strikes on its Ras Laffan complex had caused "extensive damage" but authorities said they had been brought under control with no injuries reported.
The Iranian attacks followed strikes earlier on Iran's massive South Pars gas field, which it blamed on Israel and the United States.
United Arab Emirates condemned the targeting of Iranian facilities in a gas field shared with Qatar, calling the attack a "dangerous escalation". Qatar also condemned the Israeli attacks as "dangerous and irresponsible".
Iran's military said it would in response "severely strike" energy infrastructure across the Gulf. 

Saudi capital hit again

More loud explosions rang out over Riyadh late Wednesday, AFP journalists reported, after authorities previously said they intercepted four ballistic missiles headed for the Saudi capital.
The defence ministry also said it destroyed a drone headed towards a gas plant.

Khamenei vows revenge

Iran's new supreme leader Mojtaba Khamenei said in a written message that the killers of security chief Ali Larijani, who died in an Israeli strike, "will have to pay for it".
"Every drop of spilled blood comes at a price, and the criminal murderers of these martyrs will soon have to pay it," added Mojtaba Khamenei, who has not appeared in public since taking office.
Russia has also condemned Larijani's killing.

'Debris' hits Israel airport

The Israeli military told AFP that "debris" had hit Ben Gurion international airport following Iranian missile fire, without specifying when the incident occurred. 
Earlier, medics said missiles from Iran killed two people near Tel Aviv, bringing the death toll from missiles fired on the country to 14. 

NATO discusses Hormuz

NATO chief Mark Rutte said allies were discussing the "best way" to re-open the Strait of Hormuz, the key oil corridor where Iran has choked off much of the world's oil supply.

Iran confirms spy chief death

Iran's President Masoud Pezeshkian confirmed what he called the "cowardly assassination" of the country's top intelligence official, Esmail Khatib who Israel said had been killed in a strike.

Germany 'would have advised against' war

German Chancellor Friedrich Merz said Berlin "would have advised against" starting a war with Iran, had it been consulted by the US or Israel. 
While Tehran "bears responsibility" for the crisis in the region, Merz said, Berlin had "made it clear that we still have many questions regarding this war," and Israel and the US had shown "no convincing plan as to how this operation could succeed".

Oil jumps

Oil prices surged after the Israeli strike on South Pars. 
Brent North Sea crude jumped over five percent to $108.60 per barrel, while the main US oil contract West Texas Intermediate climbed 1.9 percent to $98.01.

Nuclear plant hit

The UN nuclear watchdog said Iran reported a strike on the country's only operational nuclear power plant but that it caused no damage.
Russia, which helped build the plant and has staff on site, said it had received a report of a missile strike on the plant's inner perimeter and called the attack "completely unacceptable".
burs/yad/

conflict

Slovakia curbs diesel sales, ups prices for foreigners

  • For 30 days from Thursday, Slovakia will restrict diesel sales at service stations, allowing customers only to fill a car tank and a container of up to 10 litres.
  • The Slovak government said Wednesday it would restrict diesel sales for 30 days because of a shortage due to the suspension of supplies by the Druzhba pipeline.
  • For 30 days from Thursday, Slovakia will restrict diesel sales at service stations, allowing customers only to fill a car tank and a container of up to 10 litres.
The Slovak government said Wednesday it would restrict diesel sales for 30 days because of a shortage due to the suspension of supplies by the Druzhba pipeline.
Ukraine, invaded by Russia in February 2022, has said the pipeline taking Russian oil to Europe was damaged by Russian strikes on its territory in late January.
Landlocked neighbours Slovakia and Hungary, whose leaders foster close ties with the Kremlin, have accused Kyiv of deliberately delaying reopening the pipeline.
Slovak Prime Minister Robert Fico said on Wednesday that its top refinery, Slovnaft, currently partially relies upon oil from state reserves.
For 30 days from Thursday, Slovakia will restrict diesel sales at service stations, allowing customers only to fill a car tank and a container of up to 10 litres.
One driver can buy diesel worth up to 400 euros for a single car.
Foreign drivers, who currently take advantage of lower prices in Slovakia, will pay more.
"The government has set a special price for foreign cars calculated as the average price of diesel prices charged in Austria, Poland and the Czech Republic," said Fico.
"Self-service petrol stations and those failing to comply should be closed," he added.
Slovakia has also restricted diesel exports to other countries.
"The measures are rather... extreme, but there is no other way in the situation wherein (Ukrainian) President (Volodymyr) Zelensky is helping us like this," Fico said ironically.
Last week, the EU proposed a mission to inspect the pipeline.
But Fico said that if the mission does not include Slovak and Hungarian experts, it will be no more than "a bad joke".
He also said he would not vote on a resolution on Ukraine at the EU summit starting in Brussels on Thursday over the bloc's reluctance to mention Druzhba in it. 
frj/rl

US

Middle East war: global economic fallout

  • - Trump waives shipping law - President Donald Trump temporarily waived a century-old shipping law to help ease energy costs that have surged since US-Israeli strikes on Iran plunged the Middle East into war.
  • Here are the latest economic events in the Middle East war on Wednesday: - Oil jumps after Iran facilities hit - Oil prices surged after Israeli strikes hit Iranian facilities at a major Gulf gas field, prompting Tehran to call for retaliatory strikes on energy infrastructure. 
  • - Trump waives shipping law - President Donald Trump temporarily waived a century-old shipping law to help ease energy costs that have surged since US-Israeli strikes on Iran plunged the Middle East into war.
Here are the latest economic events in the Middle East war on Wednesday:

Oil jumps after Iran facilities hit

Oil prices surged after Israeli strikes hit Iranian facilities at a major Gulf gas field, prompting Tehran to call for retaliatory strikes on energy infrastructure. 
Brent oil rose over six percent at one point to nearly $110 a barrel, before settling back down towards $106.95, a gain of 3.4 percent.
The main US oil contract West Texas Intermediate gave up most of its gains to trade flat.
The strikes hit the South Pars/North Dome mega-field, the largest known gas reserve in the world, supplying around 70 percent of Iran's domestic natural gas.

Trump waives shipping law

President Donald Trump temporarily waived a century-old shipping law to help ease energy costs that have surged since US-Israeli strikes on Iran plunged the Middle East into war.
Trump's move to issue a 60-day Jones Act waiver would lift a ban on foreign-flagged vessels transporting cargo between US ports over this period.
It is a step to mitigate "short-term disruptions to the oil market" from the conflict, said White House Press Secretary Karoline Leavitt in a statement. "This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for sixty days."

Iraq exports via Turkey

Iraq announced it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the under-fire Strait of Hormuz.
The state-owned North Oil Company said it was sending an initial 250,000 barrels a day from its fields in the northern Kirkuk province through the pipeline, well below the 3.5 million barrels a day it has shipped in normal times from its southern Basra fields via the Strait of Hormuz.

Ship fuel prices soaring

Shipping fuel prices have reached "truly unprecedented" levels, having nearly doubled from the cargo crunch driven by the Middle East war, an industry leader told AFP Wednesday.

Asia petrochemical output slows

The Middle East war is forcing petrochemical giants in key Asian economies to cut production as the conflict rattles supplies of naphtha, a crucial oil-derived component used to make a range of plastic goods.
Mitsubishi Chemical and Mitsui Chemicals have cut output, Shin-Etsu Chemical said it would raise prices, and LG Chem warned it may not be able to fulfil some orders.

Emergency shipping talks

The International Maritime Organization began an "extraordinary session" to discuss shipping amid the war.
The IMO's 40-member council could vote Thursday on several proposed resolutions, including one to "establish a safe maritime corridor to allow the safe evacuation of seafarers and ships stranded in the Persian Gulf".
However, if passed, resolutions remain non-binding.

South Korea secures UAE oil

South Korea said it would receive an additional 18 million barrels of oil from the United Arab Emirates through alternative supply channels, bypassing the need to use the Strait of Hormuz.
The presidential chief of staff declined to elaborate on the route.
About 70 percent of South Korea's oil imports normally pass through the strait.

Fed watched on inflation  

The US Federal Reserve joins a string of central bank meetings closely watched for signs of how monetary authorities view the inflationary impact of higher oil prices.
The Fed is not expected to touch its rates, even as signs grow of a weakening labour market.
The European Central Bank and the Bank of England follow Thursday.

Sri Lanka unplugs EVs

Sri Lanka has urged electric vehicle owners to stop charging their cars at night, saying the surge in demand is forcing the country to burn more coal and diesel to keep the power grid running.
Faced with an energy crisis driven by the war, Sri Lanka has begun rationing fuel and has also imposed a four-day working week in a bid to reduce travel.

BASF raises prices

German chemicals giant BASF raised prices on some of its industrial products in Europe by 30 percent due to rising energy and input prices triggered by the war in the Middle East.
burs-rl/yad

US

Iran condemned as UN maritime body holds emergency talks on Mideast shipping

BY JOE JACKSON

  • Iran perpetrated against merchant vessels and seafarers as well as shipping infrastructure in the region," the Gulf state's IMO delegate told the meeting.
  • Gulf states and Western nations strongly criticised Iran at an emergency meeting Wednesday of the UN's maritime body, convened amid growing fears for thousands of stranded ships and seafarers.
  • Iran perpetrated against merchant vessels and seafarers as well as shipping infrastructure in the region," the Gulf state's IMO delegate told the meeting.
Gulf states and Western nations strongly criticised Iran at an emergency meeting Wednesday of the UN's maritime body, convened amid growing fears for thousands of stranded ships and seafarers.
Numerous nations used opening statements at the International Maritime Organization gathering to lambast Tehran's response to US-Israeli strikes, which has seen Iran target Gulf countries and commercial shipping.
That has crippled maritime trade in or near the Strait of Hormuz, leaving around 20,000 seafarers stuck on approximately 3,200 vessels west of the crucial chokepoint, according to the IMO.
"Qatar resolutely condemns the attacks and threats from ... Iran perpetrated against merchant vessels and seafarers as well as shipping infrastructure in the region," the Gulf state's IMO delegate told the meeting.
The United Arab Emirates called Iran's actions "unprovoked, unjustifiable, indiscriminate and wholly unlawful". Saudi Arabia branded them "utterly unacceptable and unjustifiable under any circumstances".
The United States urged countries to "push back against the cynical actions of a regime that seeks to sow economic and geopolitical instability as a strategy for political self-preservation". 
"We should not allow a country to attempt to degrade the well-being of civilians around the world through leveraging a critical international waterway," the American IMO representative added.

'Unlawful'

In response, Iran blamed "the recent unlawful use of force and military aggression by the United States and the Israeli regime".
"Iran did not initiate this war," its IMO delegate told the gathering. 
"Responsibility for the human, material, and maritime consequences of the present situation rests with those who launched this unlawful aggression."
An effective Iranian blockade of the Hormuz Strait -- through which a fifth of global crude and liquified natural gas normally transits -- has dramatically spiked oil prices and spooked markets.
Meanwhile at least 21 ships have been hit, targeted or reported attacks since the start of the conflict, according to the UK Maritime Trade Operations (UKMTO), a naval monitor.
IMO Secretary-General Arsenio Dominguez kicked off the gathering at its London headquarters -- open to all 176 member states as well as dozens of NGOs and maritime industry bodies -- by urging members to focus on "practical measures".
He called the situation "unacceptable and unsustainable", noting stranded seafarers were "facing high risk and considerable mental strain".
"Geopolitics are testing the sector to the limit and every time that shipping is used as collateral damage in these conflicts, the whole world is negatively affected," Dominguez said.

'Maritime corridor'

Maritime industry bodies have echoed that, urging a "coordinated international approach to security" while demanding that "seafarer welfare must be taken into account". 
They want measures to ensure their "communications with home can be maintained, crew changes and disembarkation can be facilitated, and the stores and provisions are adequate for the needs of seafarers".
The 40-member council of the UN agency -- responsible for regulating international shipping safety -- could vote Thursday on several proposed resolutions.
They include one tabled by Japan, Panama, Singapore and the UAE urging the IMO to help "establish a framework to allow the safe evacuation of seafarers and ships stranded in the Gulf".
The US delegate at the IMO said Washington welcomed the proposal encouraging "a safe maritime corridor for the safe evacuation of merchant ships from these affected areas". 
"We urge partners around the world to support efforts to reopen the strait," she said.
However, if passed, IMO resolutions remain non-binding.
Meanwhile Iran-ally Russia rounded on its critics, accusing them of "completely disregarding the actions which preceded the current escalation and which in actual fact led to this situation".
"The overwhelming majority of statements and the documents submitted are seriously one-sided," Moscow's IMO representative said.
"This selective approach not only does not contribute to the quest for peace, on the contrary it only reinforces divisions and leads to further escalation."
pml-jj/jkb/tw

Iran

Trump administration takes steps to curb energy cost hikes

BY BEIYI SEOW

  • Josh Lipsky of the Atlantic Council told AFP that the shipping law waiver "is unlikely to have a significant impact on global energy markets and gas prices."
  • US President Donald Trump's administration scrambled Wednesday to rein in surging energy costs from war in the Middle East,  temporarily waiving a century-old shipping law and easing Venezuela sanctions.
  • Josh Lipsky of the Atlantic Council told AFP that the shipping law waiver "is unlikely to have a significant impact on global energy markets and gas prices."
US President Donald Trump's administration scrambled Wednesday to rein in surging energy costs from war in the Middle East,  temporarily waiving a century-old shipping law and easing Venezuela sanctions.
The moves came after oil prices rocketed following US-Israeli strikes on Iran on February 28. Tehran's retaliation brought commercial shipping through the Strait of Hormuz to a virtual halt, snarling energy supply chains.
Around a fifth of global crude oil and liquefied natural gas pass through the critical waterway during peacetime, and Brent North Sea crude advanced over five percent earlier Wednesday.
Average US gasoline prices have jumped more than 27 percent since the start of the war, according to data from the AAA motor club.
This strains American household budgets further -- with consumers already facing high costs of living -- piling pressure on the Trump administration as key midterm elections approach.
For now, Trump's announcement of a 60-day Jones Act waiver would lift a ban on foreign-flagged vessels transporting cargo between US ports over this period.
The 1920 law was aimed at promoting American shipbuilding, but critics argue that it hampers free trade and has raised costs for consumers.
The move is "just another step to mitigate the short-term disruptions to the oil market as the US military continues meeting the objectives of Operation Epic Fury," said White House Press Secretary Karoline Leavitt in a statement, referring to the US campaign against Iran.
"This action will allow vital resources like oil, natural gas, fertilizer and coal to flow freely to US ports for 60 days," she added.
She vowed that the Trump administration "remains committed to continuing to strengthen our critical supply chains."
The US Treasury Department separately issued a license Wednesday to authorize certain transactions between established US entities and Venezuela's state-owned oil company PDVSA.
"This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil," said a Treasury spokesperson.
Vice President JD Vance touched on the issue on Wednesday during a visit to a manufacturing facility in Michigan: "We've got a rough road ahead of us for the next few weeks, but it's temporary."

Easing bottlenecks

The Jones Act requires that cargo transported by water between US ports be moved on vessels that are US-built, US-owned and registered under the US flag.
Just a fraction of the world's tankers comply with the Act, said Colin Grabow, an associate director at the libertarian Cato Institute.
"So this is a dramatic expansion in the number of ships that are able to be used" in transporting goods within the world's biggest economy, he told AFP, referring to Trump's temporary waiver.
He said it is nearly five times as expensive to build a medium-range tanker in the United States than in Asia, which could explain why there are not many such vessels globally.
Grabow believes the measure will bolster US supply chains, but warned that effects on prices could be limited if the war rages on.
"It can help mitigate some of the disruptions," he said. But moving forward, the situation could be less about reducing costs than "slowing the rate of increase."
Josh Lipsky of the Atlantic Council told AFP that the shipping law waiver "is unlikely to have a significant impact on global energy markets and gas prices."
"It's too small a move to sway the larger forces at play in the Gulf," he cautioned.
"The 60-day decision as opposed to the 30 we expected may signal a longer conflict however," Lipsky added.
S&P Global analysts estimate that Jones Act deliveries can cost billions of dollars more than employing a foreign vessel.
tmc-dk-bys/acb

US

How many cargo ships are passing Hormuz strait?

  • From March 1 to 18, commodities carriers made just 105 crossings, according to analytics firm Kpler -- a decrease of more than 95 percent. - 60 oil, gas tankers - Sixty of them were oil and gas tankers and of those nearly six out of 10 were loaded, Kpler data showed.
  • Just a trickle of cargo ships and tankers has made it through the Strait of Hormuz since Iranian forces blocked the crucial trade route in the Middle East war.
  • From March 1 to 18, commodities carriers made just 105 crossings, according to analytics firm Kpler -- a decrease of more than 95 percent. - 60 oil, gas tankers - Sixty of them were oil and gas tankers and of those nearly six out of 10 were loaded, Kpler data showed.
Just a trickle of cargo ships and tankers has made it through the Strait of Hormuz since Iranian forces blocked the crucial trade route in the Middle East war.
Here are facts and figures about vessels that have passed through the 167-kilometre (104-mile) strait since the war broke out with US-Israeli strikes on Iran on February 28.

Shipping near zero

The channel typically sees around 120 daily transits, according to shipping industry intelligence site Lloyd's List.
From March 1 to 18, commodities carriers made just 105 crossings, according to analytics firm Kpler -- a decrease of more than 95 percent.

60 oil, gas tankers

Sixty of them were oil and gas tankers and of those nearly six out of 10 were loaded, Kpler data showed.
Three-quarters of the crossings were by ships leaving the Gulf.

35 sanctioned ships

Around a third of the ships transiting the strait were under US, EU or UK sanctions, according to an AFP analysis of passage data.
Overall 17 of them sailed under an Iranian flag. Of the oil and gas tankers, 47 percent were sanctioned.

Oil to China 

Natasha Kaneva, a commodities analyst at JPMorgan bank, said in a report released Monday that most of the oil passing through the strait was headed for Asia, principally China.
Data in the report indicated it was receiving more than a million barrels day -- far below the pre-war level of nearly five million.

1.3 mn barrels of Iran oil 

Kaneva said overall 98 percent of the observable oil traffic through the strait was Iranian, averaging 1.3 million barrels a day "in early March".
A fifth of the world's oil and liquefied natural gas passes through the strait in peacetime.
rlp/jwp/rl

indicator

Chilean GDP beats 2025 forecast despite mining dip

  • The central bank said retail trade, personal services, manufacturing, and business services posted the strongest growth, offsetting a decline in mining.
  • Chile's GDP beat expectations for 2025 thanks to a trade and investment boost which helped offset a weaker mining sector, the country's central bank said Wednesday. 
  • The central bank said retail trade, personal services, manufacturing, and business services posted the strongest growth, offsetting a decline in mining.
Chile's GDP beat expectations for 2025 thanks to a trade and investment boost which helped offset a weaker mining sector, the country's central bank said Wednesday. 
The economy grew 2.5 percent in what was the final year of leftist president Gabriel Boric's tenure, just outstripping a bank forecast of 2.3 percent.
Boric gave way last week to far-right successor Jose Antonio Kast, who has pledged to install an "emergency" government that will take a hard line on crime and illegal migration and also look to shore up the economy.
Kast has set himself an annual growth target of four percent for his period in office.
Deputy Finance Minister Juan Pablo Rodriguez said last year's figure was "insufficient to meet the expectations of Chilean families."
The central bank said retail trade, personal services, manufacturing, and business services posted the strongest growth, offsetting a decline in mining.
Copper, of which Chile is the world's leading producer, accounts for about 10 percent of GDP while the country is also the world's second-largest producer of lithium behind Australia.
Both metals are key for the manufacture of electric cars and electronic devices. 
Kast's new finance minister, Jorge Quiroz, announced a clutch of bills would go before parliament in the weeks ahead, including one trimming corporation tax from 27 to 23 percent.
Quiroz said the measure is designed to revive economic activity and curb a fiscal deficit which stood at 3.6 percent last year.
He further ordered a three percent spending cut across all government ministries.
pa/mar/cw/acb

media

Global music market grows, calls for AI compensation: industry body

  • But the IFPI warned against the increasing threat of AI-generated streams of fake content. 
  • The global music industry generated $31.7 billion last year, driven by online streaming, industry body IFPI said Wednesday, as it called on the sector to ensure AI-generated content compensates musicians.
  • But the IFPI warned against the increasing threat of AI-generated streams of fake content. 
The global music industry generated $31.7 billion last year, driven by online streaming, industry body IFPI said Wednesday, as it called on the sector to ensure AI-generated content compensates musicians.
Music revenues rose 6.4 percent, marking the eleventh consecutive year of expansion, according to the International Federation of the Phonographic Industry, which represents more than 8,000 global record labels.
Streaming accounted for nearly 70 percent of annual revenue, with paid streaming subscriptions reaching 837 million subscribers worldwide.
But the IFPI warned against the increasing threat of AI-generated streams of fake content. 
"Streaming fraud is theft, plain and simple," the group said in its annual report, calling instead for technology to "support and enhance creativity, not replace it."
AI-generated tracks regularly go viral, such as the runaway success of an AI cover of Belgian musician Stromae's "Papaoutai" at the end of January.
According to the report, Deezer revealed that it receives more than 60,000 AI-generated tracks every day.
AI music generation platforms -- such as US based Suno and Udio -- argue their work is covered by the American copyright loophole of "fair use," which does not require rights holders' consent.
The IFPI urged policymakers to uphold copyright protections.
"Music is embracing the future, demonstrated by record company partnerships with generative AI developers who respect the rights of creators," the group said.
Suno reached an agreement with record label Warner Music Group in November to compensate artists whose work is used to create AI-generated tracks.
Revenues from physical formats were up, including from vinyl which grew 13.7 percent. 
Asia drove the rise in vinyls and CDs, while these formats were almost non-existent in the North Africa and Middle East market, where streaming accounts for 97.5 percent of revenue.
Taylor Swift was the biggest-selling global artist of 2025, followed by Korean group Stray kids and Canadian rapper Drake.
zap-ajb/rl

climate

Belgian court suspends TotalEnergies climate trial

BY MATTHIEU DEMEESTERE

  • But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.
  • A Belgian court Wednesday adjourned a case pitting TotalEnergies against a farmer seeking compensation for climate-change damage, pending the outcome of a separate trial against the French energy giant in Paris.
  • But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.
A Belgian court Wednesday adjourned a case pitting TotalEnergies against a farmer seeking compensation for climate-change damage, pending the outcome of a separate trial against the French energy giant in Paris.
Hugues Falys, a farmer from Belgium's western Hainaut region, is backed by environmental groups including Greenpeace in the David-versus-Goliath case they hope could prove a turning point in the climate fight.
Together they took TotalEnergies to court on the grounds the French group is Belgium's leading refiner and distributor of petroleum products, launching the country's first climate case brought against a multinational company.
The Tournai business court in western Belgium was expected to hand down its verdict Wednesday, but instead decided to suspend proceedings until September -- after the expected conclusion of the Paris case in June.
"The decision to adjourn the proceedings was made in the interest of ensuring a fully informed debate," the court said in a statement. 
"The court retains full jurisdiction over the entire dispute and retains full discretion in its assessment of both the facts and the law for the remainder of the proceedings," it added.
It set the next hearing for September 9.
The French case referred to by the Belgian court was brought by several NGOs and the city of Paris, which are demanding TotalEnergies stop developing new hydrocarbon projects and cut back oil and gas production.
The Paris plaintiffs accuse the firm of having failed to properly consider environmental risks under a 2017 law that imposes a "duty of vigilance" on large companies.
TotalEnergies and its accusers are at odds over the reach of the definition of the environment -- whether it means risks on a local scale such as a polluted river or more broadly global warming. 
The energy firm's lawyers argued global warming is beyond the scope of that law.

Destroyed crops

Similarly, in the Tournai case, the plaintiffs argue the firm can be held liable for global warming because of emissions generated when its products are burned -- a claim rejected by TotalEnergies which accuses pressure groups of "instrumentalising the judiciary".
The lawsuit was filed in 2024 and argued over a series of hearings between November and January.
Falys is seeking 130,000 euros ($150,000) in damages for four extreme weather events that struck his farm between 2016 and 2020.
First a storm destroyed his strawberry and potato crops, then three periods of drought hurt fodder production, affecting cattle in turn.
But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.
The goals of the lawsuit are "reparation and transformation", said Belgium's human rights league (LDH), which is backing the complaint alongside Greenpeace and food‑rights organisation FIAN.
Making its case in court, the company called it "absurd" to single out a particular firm over the pace of the energy transition -- arguing that it accounts for less than two percent of the oil and gas sector.
"It's a bit easy to blame energy producers for pollution and warming," argued company lawyer Francoise Labrousse back in December, stressing the overarching role of governments in steering climate policy.
TotalEnergies is a frequent target of climate and human rights activists, along with other energy giants.
In one closely watched case, a Peruvian farmer took German energy company RWE to court, alleging its emissions helped melt an Andean glacier threatening to flood his home.
A German court dismissed the claim against RWE in May last year, but in a major step, ruled that corporate polluters could -- in principle -- be held liable for climate damages. 
Dutch courts also issued a landmark ruling ordering Anglo‑Dutch giant Shell to cut its net carbon emissions, finding they contributed to global warming and its harmful effects.
But the judgement was overturned three years later, when an appeals court found that an NGO and individual citizens could not make such demands.
The case, known as "People vs. Shell", is now before the Dutch Supreme Court.
mad-ub/ec/rmb

US

Troubled waters: Thai fishermen marooned by rising fuel costs

BY SéBASTIEN DUVAL

  • His boss, Kwanchai Phatisena, has reluctantly decided to leave his boat moored for at least two weeks at the Sriracha jetty, north of the Thai resort city of Pattaya, where egrets and stray cats compete for fish that have fallen from plastic tubs.
  • With his belongings stuffed into a plastic bag, Thai fisherman Narongsak Kongsuk heads home, far from the sea.
  • His boss, Kwanchai Phatisena, has reluctantly decided to leave his boat moored for at least two weeks at the Sriracha jetty, north of the Thai resort city of Pattaya, where egrets and stray cats compete for fish that have fallen from plastic tubs.
With his belongings stuffed into a plastic bag, Thai fisherman Narongsak Kongsuk heads home, far from the sea.
Like hundreds of other fishers in Thailand, his boat is stuck at the dock because of surging diesel prices, as the war in the Middle East disrupts global supply.
The 27-year-old father normally earns up to 20,000 baht ($615) a month, but locked on land, Narongsak fears he will no longer be able to provide for his family.
"There's the cost of my child's milk, various other expenses and car payments," he told AFP on Wednesday.
"I'll have to find part-time jobs."
His boss, Kwanchai Phatisena, has reluctantly decided to leave his boat moored for at least two weeks at the Sriracha jetty, north of the Thai resort city of Pattaya, where egrets and stray cats compete for fish that have fallen from plastic tubs.
"I've been doing this for about 50 years and I've never encountered a situation like this before," said Kwanchai, who is in his sixties.
The boat owner said he was no longer covering his costs due to the rise in the price of diesel, his main expense.
– Tax-exempt diesel –
Fishers in Thailand benefit from tax-exempt diesel, known as "green oil", which cost less than 20 baht per litre before the war in the Middle East broke out on February 28. It now costs 35 baht and is increasingly hard to find.
"There's no profit. It's straight-up losses," said Kwanchai, who has been forced to send his employees home while waiting for prices to fall.
As the sun began to rise behind the buildings lining the beach on Wednesday, several boats made their way back from a night of fishing.
"Those still going out are using the cheaper 'green oil' left over in the tanks. Once this batch is gone, everyone will probably dock because we can't handle the costs," Kwanchai predicted.
The National Fisheries Association of Thailand estimated more than 1,000 boats have already been forced to stay in port, and half the fleet of around 9,000 vessels could soon be idled if the situation drags on.
The association's leaders met with the government in the capital Bangkok on Wednesday to ask in particular that the price of the diesel reserved for fishers be capped, as it is for the general public at the pump.
In neighbouring Cambodia's coastal Preah Sihanouk province, around a third of approximately 1,000 fishing boats have also stopped going to sea due to higher fuel prices, according to Em Phea, director of the provincial fisheries administration.
"They cannot make a profit," he said, adding that some fishermen were still working thanks to fuel stockpiles.
"For now we still have enough seafood, but we don't know yet what will happen in the near future."
And in Vietnam's Quang Tri province, fisherman Nguyen Tri said he was still deciding whether "to sail or not" -- considering the price of diesel for a fishing trip had risen from around $2,300 to $3,800, and it was uncertain whether he could earn enough to cover costs.
– Chain reaction –
Back in Sriracha, another Thai boat owner, 61-year-old Jariya Charuenpunson, fears a chain reaction across the industry if fishers are forced to remain in port for an extended period.
"Every related profession will lose their jobs, leading to even more widespread unemployment," she said.
At the dimly lit town market, a few hundred metres from the jetty, the stalls are still well stocked with fish, shrimp and blue crabs.
But the number of customers have yet to return to pre-Covid numbers, and the current uncertainty adds to the gloomy mood among shopkeepers.
Deboning a small yellowstripe scad, 67-year-old vendor Malida Chaiyakul said supply chains were at risk.
"If all the boats stop, then there's obviously no product to sell." 
burs-wjt-sdu/sco/mjw

US

Why convoys cannot fully protect oil tankers from Iran attacks

BY FABIEN ZAMORA

  • Iran has effectively closed the strait since the United States and Israel began a war on the Islamic republic last month, sending global oil prices up by more than 40 percent. 
  • The Israeli-US war on Iran has provoked a reaction from Tehran that has effectively choked a large chunk of the world's oil supply, and untangling the blockage will take a regional effort beyond what is currently being proposed, experts have told AFP. President Donald Trump has repeatedly urged other global powers to send warships to escort convoys of tankers through the Strait of Hormuz, a vital waterway for the world's oil and liquefied natural gas supplies.
  • Iran has effectively closed the strait since the United States and Israel began a war on the Islamic republic last month, sending global oil prices up by more than 40 percent. 
The Israeli-US war on Iran has provoked a reaction from Tehran that has effectively choked a large chunk of the world's oil supply, and untangling the blockage will take a regional effort beyond what is currently being proposed, experts have told AFP.
President Donald Trump has repeatedly urged other global powers to send warships to escort convoys of tankers through the Strait of Hormuz, a vital waterway for the world's oil and liquefied natural gas supplies.
Iran has effectively closed the strait since the United States and Israel began a war on the Islamic republic last month, sending global oil prices up by more than 40 percent. 
Iran has however shown it has a much wider reach and can disrupt supplies throughout the Persian Gulf and beyond, simply by firing off a clutch of drones or a missile.
Trump has acknowledged the dangers of this kind of attack, at least in the strait.
"It's easy for them to send a drone or two, drop a mine, or deliver a close-range missile somewhere along, or in, this Waterway, no matter how badly defeated they are," he posted on social media at the weekend.
But strategic planners need to look at a much bigger geographical area and consider a much wider array of tools if they are serious about protecting oil tankers, experts have told AFP.
"Treating 'Hormuz security' as a chokepoint-only problem is analytically incomplete," naval analyst Tayfun Ozberk, a former Turkish navy officer, told AFP.
The strait is labelled a "chokepoint" because it narrows to around 24 miles (38 kilometres) as it snakes between the southern Iranian coastline and the Arabian Peninsula's eastern tip, a jutting piece of land shared between United Arab Emirates and Oman.
"The effective threat envelope Iran can generate already extends well beyond the narrows," said Ozberk.
"That matters because traffic is exposed not only during the brief transit of the strait, but during the longer 'funnelling' phase where routes, speed constraints, and predictable lanes increase vulnerability."

'Limited protection'

Iran has carried out attacks on shipping hundreds of miles from the strait since the war began, towards the Iraqi coast on one side and well into the Gulf of Oman on the other.
"Outside the strait, there are risks as long as you're within missile range," said a European military source who requested not to be named.
And even within the strait, there are particular challenges that convoys could struggle with -- for one, the narrowness of the channel drastically reduces the time a warship might have to stop an attack.
"Mounting a navy-escorted convoy through the Strait of Hormuz... is not only very complex but also offers limited protection," researchers Christian Bueger and Jane Chan wrote in a recent paper for RSIS, a Singapore-based defence think tank.
"Not only air defence but also capabilities to intercept speed boats and surface drones, and to detect mines would be required."
The world has been in a similar situation before -- both sides in the Iran-Iraq war of the 1980s targeted commercial ships in the strait.
Sidharth Kaushal, of the UK-based RUSI think tank, told AFP that the United States needed to maintain up to 35 vessels in the area during what became known as the Tanker War.
Yet the capacity of navies to carry out this type of operation has diminished over the years.
Hans Tino Hansen of the Risk Intelligence firm told AFP the number of warships in western navies equipped for a convoy mission had fallen by 75 percent since 1988.

'Raise uncertainty'

One of the thorniest problems a convoy could face is the possibility of sea mines.
Trump said on Monday that US forces had hit all of Iran's mine-laying ships but warned that the devices could be transferred to other vessels.
Turkish expert Ozberk said mines remained Iran's "most strategically efficient lever" because they "raise uncertainty and cost even when they don't sink ships".
"You can't 'convoy' your way around a credible mine threat without some degree of mine countermeasures," he said.
Putting these measures in place slows convoys, as specialist vessels take time to clear any devices and they themselves need further protection.
The European military source told AFP if an area is mined "you first have to create safe routes with mine countermeasure vessels, which are very vulnerable and therefore must be protected, and which advance at four kilometres an hour to clear a strip a few hundred metres wide". 
"Even then, a convoy has to be preceded by a mine countermeasure vessel to detect any anomaly.
"Within the convoy, frigates must be inserted at regular intervals to deal with air and surface threats."
The source added that if there were no mines "convoys can form more easily and travel at higher speeds, and the frigates can manoeuvre around the ships they are protecting".
The overall complexity of protecting tankers in the wider region means any operation would probably not resemble a traditional convoy at all, RUSI's Kaushal argued.
"Instead, destroyers and aircraft would likely attempt to provide an air-defence network over routes as a whole, while tools like helicopters could provide cover against USVs (surface drones)," he said.
"The tempo of activity needed to make this shield persistent while also prosecuting targets on the Iranian mainland will likely prove highly resource intensive, however."
fz/jxb/ah/rl

AI

EU lawmakers back ban on sexualised AI deepfakes

  • X, the platform on which Grok is available, in January said it had "zero tolerance" for sexualised deepfakes of children and women, and implemented measures it said would stop the practice after the global outrage.
  • EU lawmakers on Wednesday approved a ban on AI systems generating sexualised deepfakes, after a global outcry over non-consensual nudes created by Elon Musk's chatbot Grok.
  • X, the platform on which Grok is available, in January said it had "zero tolerance" for sexualised deepfakes of children and women, and implemented measures it said would stop the practice after the global outrage.
EU lawmakers on Wednesday approved a ban on AI systems generating sexualised deepfakes, after a global outcry over non-consensual nudes created by Elon Musk's chatbot Grok.
Backed by EU member states last week, the ban targeting so-called "nudification" apps is being introduced as part of proposals to amend the bloc's rules on AI.
"This is a huge win, especially for women and children in Europe," said Kim van Sparrentak, a lawmaker with the Greens group. 
"Too many people have already woken up one day in despair after finding deepnudes of themselves, feeling violated, intimidated and hunted."
Lawmakers in the EU parliament's civil liberties committee gave it their green light Wednesday, paving the way for approval by the full assembly on March 26.
Michael McNamara, the Irish EU lawmaker leading work on the AI file, said the ban aimed to stamp out "nudification apps without consent, which have caused much pain for the profit of some.''
X, the platform on which Grok is available, in January said it had "zero tolerance" for sexualised deepfakes of children and women, and implemented measures it said would stop the practice after the global outrage.
The European Commission, the bloc's digital watchdog, in January kickstarted an investigation into Grok under the EU's online content rules.
The ban will become law after negotiations on a final text including the changes to the AI rulebook between the EU parliament and member states.
fpo-ec/ub/gv

economy

Brussels touts 'EU Inc.' company status to lure start-ups

BY RAZIYE AKKOC

  • "It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
  • The EU unveiled Wednesday a scheme to make it much easier for innovative start-ups to launch and grow across the 27-nation bloc, as part of a push to help Europe keep up with US and Chinese economic rivals.
  • "It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
The EU unveiled Wednesday a scheme to make it much easier for innovative start-ups to launch and grow across the 27-nation bloc, as part of a push to help Europe keep up with US and Chinese economic rivals.
Dubbed "EU Inc.", the proposal for a new pan-European corporate regime is billed as a key plank in efforts to boost the bloc's competitiveness.
The new system would allow for entrepreneurs to set up a firm "within 48 hours" fully online from anywhere inside the bloc -- doing away with many cross-border bureaucratic headaches.
"It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
Europe was not short of "talent", "ideas" or "ambition", she said, but business leaders looking to scale up currently have to navigate 27 national legal systems and more than 60 types of company.
The EU Inc. setup will come with several perks, but critics fear the EU-wide regime will also loosen oversight and erode workers' rights.
EU Inc. companies will require less than 100 euros ($115) and no minimum share capital to get going. They will be free to choose in which EU nation to incorporate and have access to fully digital liquidation procedures, Brussels said.
"EU Inc. strips away the bureaucracy that comes with establishing a business. Founders will be able to focus on what matters: entering new markets and winning customers," said EU justice commissioner Michael McGrath.
Though open to anyone, the new voluntary legal regime is geared towards innovative start-ups, which will also benefit from simplified insolvency procedures.
The commission said it will further explore the possibility of allowing "100 percent cross-border" remote work "for innovative start-ups and scale-ups" across the EU.
Reinhilde Veugelers, of think tank Bruegel, said the goal was "improving (Europe's) innovation capacity because that is the most important driver for competitiveness".
"Fast and easy recognition should make it easier... for companies to grow on an EU scale," Veugelers said.
The new scheme, known more broadly as the "28th regime", will become law only after member states and the European Parliament negotiate and approve a final text -- something the commission urged be done by the end of 2026.
EU leaders are expected to discuss the proposal during a Thursday summit in Brussels, although wars in Ukraine and the Middle East will likely dominate their talks.

'Threat' or treat  

How popular the new regime proves remains to be seen, with trade unions and businesses already airing concerns. 
Campaigners including Olivier Hoedeman of Corporate Europe Observatory said the new system's speed could make it difficult to properly scrutinise new companies.
"The 28th regime poses a significant threat to Europe's social model," Hoedeman said.
Organisations representing European workers are also worried about a move to allow companies to offer share options to staff instead of wages.
"We cannot expect that the promise of the future success of a company be used to justify wage exploitation in the present," Esther Lynch of the European Trade Union Confederation said in a statement.
The commission has insisted labour law will not be touched by the proposal and that any business will have to follow the rules based on where they are headquartered.
Reacting to a leaked draft, industry group EU Inc -- which inspired the name of the commission proposal -- said the plans fell short.
It "fails on the actual main goal: creating one true standard across Europe that creates legal certainty for our startups", since it defers legal authority to national courts, "aka 27 flavours of interpretation", it said.
To address that, presenting the final proposal Wednesday the commission urged member states to consider setting up specialised judicial chambers or courts with the authority to handle EU Inc. disputes.
raz-ub/ec/st

games

China tech giant Tencent bets on AI agents

BY LUNA LIN, WITH KATIE FORSTER IN TOKYO

  • The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
  • Tencent wants to bring artificial intelligence agents into its WeChat social media app, the Chinese tech firm's president said on Wednesday, a move that could change how hundreds of millions of users interact with the platform in the Asian nation and beyond.
  • The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
Tencent wants to bring artificial intelligence agents into its WeChat social media app, the Chinese tech firm's president said on Wednesday, a move that could change how hundreds of millions of users interact with the platform in the Asian nation and beyond.
Agents --  programmes that execute real-life tasks such as sending emails or booking flights -- are being touted as AI's next frontier after chatbots such as ChatGPT.
Their incorporation into WeChat may alter how people in the world's second-largest economy use the so-called "super-app" that already boasts social messaging, digital payments and a long list of other features.
Tencent, also the world's largest video game publisher, reported a 16 percent jump in full-year net profit on Wednesday, with gaming still the main business driver even as it extends its AI push.
The company has sought in recent years to integrate AI into WeChat, known as Weixin in China.
"We hope to create AI agents in Weixin, which could leverage Weixin's close connection with users," company president Martin Lau told reporters.
"It will be a highly diverse ecosystem, encompassing mini-programs, content, commerce, social networking and payments," Lau added, without giving details such as when the service would become available.
On Wednesday, Tencent said net profit for 2025 came to 224.8 billion yuan ($32.6 billion), beating estimates of 221.9 billion yuan in a Bloomberg survey of economists.
The company, which owns the developer of popular eSports including "League of Legends", has sizeable operations in other sectors from cloud computing to entertainment.
Despite being China's most valuable tech company by market capitalisation, so far Tencent has been seen as a cautious AI player, although founder Pony Ma has vowed to increase investment in the sector.
"Our highly resilient and cash generative core businesses provides us with the resources to fund our increasing investments in AI," Ma said in a statement Wednesday.

Agent fever

Like its rivals Alibaba, Baidu and ByteDance, Tencent has recently branched out into the world of AI agents with its WorkBuddy app.
The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
Tencent and others are offering simplified installation and affordable coding plans to help users host OpenClaw agents on cloud servers.
Earlier this month the company's cloud computing arm organised an OpenClaw setup event at its headquarters, which drew more than 1,000 attendees, with similar events planned across China.
The increasing capabilities of Tencent's main large-language AI model, and AI agent tools such as WorkBuddy and new offering QClaw, "are encouraging early signs that these investments will unlock new opportunities", the company said.
The Financial Times reported this month that the White House was debating whether Tencent's investment in US and Finnish gaming groups pose a national security risk.
Discussions over its stakes in "Fortnite" creator Epic Games, Riot Games and Supercell revolve around the implications for US user data privacy, the British newspaper said, citing people familiar with the matter.
"We have been engaged in constructive discussions with the relevant US regulators for quite some time now," said Tencent president Lau.
"Things are moving in a positive direction" with the overall risk "manageable", he said.
"While there are due processes to be followed in the US, other regions are actually very keen for us to invest in gaming companies."
ll-kaf/mjw

industry

Japan, S. Korea petrochemical industry slows output on Iran war

BY JULIEN GIRAULT WITH THE AFP TOKYO BUREAU AND KANG JIN-KYU IN SEOUL

  • The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
  • The Middle East war is forcing petrochemical giants in two key Asian economies to cut production as the conflict rattles supplies of a crucial oil-derived component used to make a range of plastic goods.
  • The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
The Middle East war is forcing petrochemical giants in two key Asian economies to cut production as the conflict rattles supplies of a crucial oil-derived component used to make a range of plastic goods.
The scarcity of naphtha -- a liquid distilled from petroleum that is essential for making ethylene, a key ingredient in everything from plastic grocery bags to food packaging -- risks a knock-on effect across many industries.
The petrochemical sector in Japan and South Korea, an important part of both countries' economies, depends on the Middle East for their naphtha supplies -- with 74 percent of Japan's imports coming from the region.
But supplies are drying up, with a vital shipping lane for oil from the Middle East, the Strait of Hormuz, virtually paralysed.
The price of naphtha shipped into Asia has soared 60 percent since the war began. 
"We estimate that naphtha inventories currently stand at around 20 days" in Japan, the world's fourth-biggest economy, analysts at Nomura warned last week.
"And if the Strait of Hormuz remains closed for two to three weeks, this could have a major impact" on naphtha production, they said.
That impact is already creeping in.
Last week, Japanese giant Mitsubishi Chemical started cutting production capacity of its steam cracker, a facility that converts naphtha into ethylene and propylene, which it runs as a joint venture. 
"We concluded that a reduction in naphtha imports was inevitable. Our goal is to avoid a suspension of our operations," a company spokesperson told AFP. 
– 'Economic security' –
Mitsui Chemicals, another leading Japanese chemicals firm, started cutting ethylene output at two plants last week because of concerns over naphtha supply, a company spokesperson told AFP. 
Half of Japan's 12 ethylene plants have already reduced production, Bloomberg reported, just two weeks after US-Israeli strikes on Iran ignited the war.
That slowdown increases the likelihood of knock-on effects across other industries.
Shin-Etsu Chemical will hike the selling price of polyvinyl chloride (PVC) -- which is used to make window frames, floor covering, pipes and cable insulation -- in the Japanese market from April 1. 
"The price of ethylene -- a key raw material for PVC -- has surged, and we have been subjected to supply volume restrictions by our suppliers, compelling us to curtail our production output," the company said in a statement. 
The crisis has also hit South Korea, one of Asia's biggest economies. 
"We informed our customers last week that we might declare force majeure on one of our products, dioctyl terephthalate" -- which is used in everything from cosmetics to clothes, a representative of LG Chem told AFP. 
In a sign of how critical the situation has become, the South Korean government said Tuesday that it would restrict naphtha exports. 
"We will designate naphtha as an item related to economic security by the end of the week," Finance Minister Koo Yun-cheol said. 
"The government will work to resolve the difficulties through export restrictions and other necessary measures."
– 'High dependence' –
The shockwave is spreading across Asia, with Singapore's PCS -- a producer of ethylene and other petrochemicals -- announcing on March 5 that it had issued a formal force majeure notice to its customers. 
The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
The paradox, noted BloombergNEF analyst Philip Geurts, is that major polyethylene producers like South Korea or Singapore "could have an advantage" given strong demand in other markets and rising prices.
But "it's very hard to benefit from that if you can't produce the chemicals in the first place," he stressed at a briefing, because "the feedstock (naphtha) dependence on the Middle East is just extraordinarily high".
The crisis comes as Japan and South Korea were already closing aging petrochemical facilities because of chronic overcapacity in China, a country with far more competitive infrastructure. 
China is relatively spared for now, thanks to its refining capacity and its ability to source Russian naphtha.
According to South Korean reports, Seoul is also considering turning to Russia as an alternative source. 
burs-jug/aph/cms