Star

Australian casino firm scrambles for cash to survive

  • Star Entertainment was discussing selling its 50-percent stake in the Brisbane joint venture to the two partners -- so far in vain, it said.
  • Troubled Australian casino operator Star Entertainment said Friday it is trying to sell its stake in a major resort to raise desperately needed cash.
  • Star Entertainment was discussing selling its 50-percent stake in the Brisbane joint venture to the two partners -- so far in vain, it said.
Troubled Australian casino operator Star Entertainment said Friday it is trying to sell its stake in a major resort to raise desperately needed cash.
Shares in the group, which employs more than 8,000 people, have been suspended from trading since March 3 after it failed to post half-year financial results citing liquidity woes.
Star Entertainment is considered an economically important tourist draw with casinos, bars, restaurants and hotels at resorts in Sydney, Brisbane and the Gold Coast.
The firm said Friday it has been in talks with two Hong Kong-based firms -- Chow Tai Fook and Far East Consortium -- which are partners in the joint venture that owns its Brisbane resort.
Star Entertainment was discussing selling its 50-percent stake in the Brisbane joint venture to the two partners -- so far in vain, it said.
"The Star has been unable to reach an agreement with its Joint Venture Partners to date," the casino group said in a statement.
The company is widely reported to be close to falling into administration, and it has admitted there is "material uncertainty" over its future.
The casino firm last traded at Aus$0.11 a share (US$0.07) with a market capitalisation of Aus$316 million -- a shadow of its Aus$5 billion-plus value from about seven years ago. 
Its finances have been hit by the cost of developing the new Brisbane casino complex, the threat of an anti-money laundering fine and stricter regulation in the industry, according to the Australian Financial Review.
The company has previously been accused of not adequately policing criminal infiltration and doing little to vet the sources of money coming into the business. 
Watchdogs found that one patron -- a Chinese real estate billionaire barred by the Australian government for being an agent of Chinese influence -- had ploughed more than a billion dollars into Star over several years. 
Another high-rolling patron was allegedly involved in human trafficking. 
The group was also temporarily delisted from the Australian Securities Exchange last year after failing to post its annual financial results on time.
Australians are infamously big gamblers, losing Aus$31.5 billion in the 2022-23 financial year, including Aus$3.6 billion in casinos, according to the latest government data.
bur-djw/sft/sco

tariff

Trump backs off Mexico, Canada tariffs after market blowback

BY BEIYI SEOW WITH MICHEL COMTE IN OTTAWA

  • US stock markets slumped again Thursday despite Trump's partial tariff delay.
  • US President Donald Trump on Thursday delayed some tariffs targeting Canada and Mexico -- leading Ottawa to halt an upcoming wave of countermeasures -- in moves that bring reprieve to companies and consumers after blowback on financial markets.
  • US stock markets slumped again Thursday despite Trump's partial tariff delay.
US President Donald Trump on Thursday delayed some tariffs targeting Canada and Mexico -- leading Ottawa to halt an upcoming wave of countermeasures -- in moves that bring reprieve to companies and consumers after blowback on financial markets.
Stock markets tumbled after Trump's duties of up to 25 percent took effect Tuesday, as economists warned that blanket levies could weigh on US growth and raise inflation.
But Trump signed orders Thursday to delay the fresh tariffs for Canadian and Mexican imports covered by a North American trade agreement, though he dismissed suggestions that his decisions were linked to market turmoil.
The halt -- which will last until April 2 -- offers relief to automakers.
In the auto sector, parts cross North American borders multiple times during production.
Following talks with the "Big Three" US automakers -- Stellantis, Ford and General Motors -- Washington initially announced a one-month exemption on autos coming through the United States-Mexico-Canada Agreement (USMCA).
A White House official told reporters that about 62 percent of Canadian imports will still face the new tariffs, although much of these are energy products hit by a lower rate of 10 percent.
About half of Mexican imports come through the USMCA.
The latest moves make conditions "much more favorable for our American car manufacturers," Trump said Thursday.
Shortly after Trump's decision, Canadian Finance Minister Dominic LeBlanc wrote on X that his country "will not proceed with the second wave of tariffs on $125B of US products until April 2nd, while we continue to work for the removal of all tariffs."
Trump said Thursday that more tariffs would come on April 2, adding they will be "reciprocal in nature." He had earlier vowed reciprocal levies to remedy practices Washington deems unfair.
At that point, Canadian and Mexican goods could still face levies.
The US president also said he would not modify broad tariffs for steel and aluminum imports, which are due to take effect next week.
US stock markets slumped again Thursday despite Trump's partial tariff delay.

'Tremendous progress'?

Trump told reporters Thursday in the Oval Office that he had a "very good conversation" with Mexican President Claudia Sheinbaum.
He claimed "tremendous progress" on both illegal immigration and drugs coming into the United States -- both reasons that Washington cited in imposing levies on Mexico, Canada and China.
His remarks stood in sharp contrast to simmering tensions with Canadian Prime Minister Justin Trudeau.
Trudeau said Thursday that Ottawa will remain in a trade war with Washington for "the foreseeable future" even if there are "breaks for certain sectors."
"Our goal remains to get these tariffs, all tariffs removed," Trudeau added.
Canada contributes less than one percent of fentanyl to the illicit US supply, according to Canadian and US government data.
China, meanwhile, has pushed back on US allegations of its role in the fentanyl supply chain, calling this a domestic issue that tariffs will not resolve.

'Economic reality'

For Scott Lincicome, vice president of general economics at the Cato Institute, Trump's easing of tariffs was "a recognition of economic reality."
The move was an acknowledgment that tariffs disrupt supply chains, that the burden of levies fall to Americans, and "that the market doesn't like them and certainly doesn't like the uncertainty surrounding them," Lincicome told AFP.
Since taking office for his second term in January, Trump has made tariff threats on allies and adversaries alike.
US Treasury Secretary Scott Bessent said Thursday that he was not concerned Trump's tariffs would be inflationary, adding that any impact on prices would likely be temporary.
He told the Economic Club of New York that "access to cheap goods is not the essence of the American Dream," saying this was instead rooted in the idea that citizens can achieve upward mobility and economic security.
Trump has referred to tariffs as a source of US government revenue and a way to remedy trade imbalances.
The US trade deficit surged to a new record in January, ballooning 34 percent to $131.4 billion as imports rose.
Analysts say the deficit was likely bolstered by gold imports, but that data suggests businesses were also trying to get ahead of tariffs.
bur-bys-da/acb

Moon

Deja vu on the Moon: Private US spaceship again lands awkwardly

BY ISSAM AHMED

  • - Sticking the landing - Lunar landings are notoriously difficult.
  • Second time unlucky: A US company's lunar lander appears to have touched down at a wonky angle on Thursday, an embarrassing repeat of its previous mission's less-than-perfect landing last year.
  • - Sticking the landing - Lunar landings are notoriously difficult.
Second time unlucky: A US company's lunar lander appears to have touched down at a wonky angle on Thursday, an embarrassing repeat of its previous mission's less-than-perfect landing last year.
Houston-based Intuitive Machines made history in February 2024 as the first private firm to place a spaceship on Earth's nearest neighbor, though the moment was marred by Odysseus toppling over upon touchdown.
For its second attempt, the company sent the hexagonal Athena lander to the Mons Mouton plateau, closer to the lunar south pole than any mission before it.
The team targeted a 12:32 pm ET (1732 GMT) touchdown, but as time passed with confirmation, mission control grew visibly tense.
Twenty minutes after the scheduled landing, company spokesman Josh Marshall announced on a webcast: "Athena is on the surface of the Moon." However, teams were still analyzing data to determine the lander's exact status, he said.
Later, CEO Steve Altemus acknowledged to reporters: "We don't believe we're in the correct attitude," an aeronautical term for orientation. He added that the lander's position could limit power generation and communication, impacting the mission's success.
Intuitive Machines' share price tumbled 20 percent in afternoon trading. 
The company suggested that, as in its previous mission, issues with Athena's laser altimeters, which provide altitude and velocity readings, may have played a role in the suboptimal landing.
Athena, like its predecessor Odysseus, has a tall, slender build. At 15.6 feet (4.8 meters) -- the height of a giraffe -- it had raised stability concerns. 
However, Altemus emphasized that the lander's weight distribution kept the center of gravity low, and Intuitive Machines remains confident in its design.
Expectations were high after Texas rival Firefly Aerospace successfully landed its Blue Ghost lander on the Moon on Sunday on its first attempt.

Cutting-edge technologies at stake

Both missions are part of NASA's $2.6 billion Commercial Lunar Payload Services (CLPS) program, which seeks to leverage private industry to reduce costs and support Artemis, NASA's effort to return astronauts to the Moon and eventually to reach Mars.
Athena carries an ice-drilling experiment, a 4G cellular network test, three rovers, and a unique hopping drone named Grace, designed to descend into a permanently shadowed crater—where sunlight has never reached—a first for humanity.
However, whether any of these objectives can be met depends on Athena's final resting angle, which is yet to be determined.
"Any time humanity puts a lander on the moon, it's a good day," said Tim Crain, the Intuitive Machines chief technology officer, striking a positive tone.
The team hopes to use imagery from NASA's Lunar Reconnaissance Orbiter to determine Athena’s exact location and orientation, though this could take a day or two, Crain added.
Despite the non-optimal orientation, NASA's Nicky Fox, associate administrator for the science mission directorate, said the agency remains "excited" and will prioritize gathering as much scientific and technology data as possible before the mission ends.  

Sticking the landing

Lunar landings are notoriously difficult. The Moon's lack of atmosphere rules out parachutes, forcing spacecraft to rely on precise thrusts and navigation over hazardous terrain.
Until Intuitive Machines' first mission, only national space agencies had achieved the feat, with NASA's last landing dating back to Apollo 17 in 1972.
The company's first lander, Odysseus, came in too fast, caught a foot on the surface and toppled over, cutting the mission short when its solar panels could not generate enough power.
Athena launched last Wednesday aboard a SpaceX Falcon 9 rocket, which also carried NASA's Lunar Trailblazer probe, a spacecraft designed to map the Moon’s water distribution.
However, ground controllers have been struggling to re-establish contact with Trailblazer, adding to NASA's challenges.
These missions come at a delicate time for NASA, amid speculation that the agency may scale back or even cancel the crewed Moon missions in favor of prioritizing Mars, a goal championed by President Donald Trump and his billionaire advisor and SpaceX owner Elon Musk.
ia/dc

Global Edition

US and European stocks gyrate on tariffs and growth

  • France and other eurozone markets ended the day higher as the European Central Bank followed through with an expected quarter-point cut in interest rates.
  • Wall Street stocks resumed their downward slide on Thursday amid uncertainty over US President Donald Trump's shifting trade policy, while European bourses advanced following an ECB interest rate cut.
  • France and other eurozone markets ended the day higher as the European Central Bank followed through with an expected quarter-point cut in interest rates.
Wall Street stocks resumed their downward slide on Thursday amid uncertainty over US President Donald Trump's shifting trade policy, while European bourses advanced following an ECB interest rate cut.
Major US indices spent the entire day in the red, shrugging off Trump's moves to soften tariff actions.
Trump on Thursday unveiled a temporary rollback to steep tariffs targeting Canada and Mexico, broadening a step announced Wednesday that gave relief to the auto sector. 
Stocks had rallied after the auto reprieve, but this time all three major indices dropped one percent or more.
Art Hogan of B. Riley Wealth Management said the uncertainty around trade policy is "affecting the real economy," dragging down consumer sentiment and business investment.
"The longer that goes on, the more the economy slows," he said.
In Europe, Frankfurt's DAX index hit a new record as plans for a massive German defense and infrastructure investment program stoked optimism for pulling the eurozone's largest economy out of recession.
France and other eurozone markets ended the day higher as the European Central Bank followed through with an expected quarter-point cut in interest rates.
But ECB President Christine Lagarde said that rising trade tensions could knock eurozone economic growth.
"We have risks all over and uncertainty all over," Lagarde added.
The ECB cut its growth forecasts for this year and the next while raising its 2025 inflation estimate.
Meanwhile, bond yields continued to climb, and the rise extended to Asia, with Japanese 10-year yields hitting 1.5 percent for the first time in more than a decade.
The increase signals expectations of higher inflation and that governments, companies and consumers will need to pay more to borrow.

Asia rises

Wednesday's announcement of the tariff delay buoyed Asian stock markets, in particular lifting the auto sector.
The move "helped reinforce hopes there may be some flexibility in the new administration's trade policy," said AJ Bell investment director Russ Mould.
Chinese stocks responded well to Beijing announcing its 2025 growth target of around five percent, at the start of its annual meeting of the National People's Congress on Wednesday.
The meeting has heightened investors' expectations that a huge fiscal stimulus package could be coming. 
China has vowed to make domestic demand its main economic driver despite facing persistent economic headwinds, and as an escalating trade war with the US hit exports.

Key figures around 2150 GMT

New York - Dow: DOWN 1.0 percent at 42,579.08 (close)
New York - S&P 500: DOWN 1.8 percent at 5,738.52 (close)
New York - Nasdaq Composite: DOWN 2.6 percent at 18,069.26 (close)
London - FTSE 100: DOWN 0.8 percent at 8,682.84 (close)
Paris - CAC 40: UP 0.3 percent at 8,197.67 (close)
Frankfurt - DAX: UP 1.5 percent at 23,419.48 (close)
Tokyo - Nikkei 225: UP 0.8 percent at 37,704.93 (close)
Hong Kong - Hang Seng Index: UP 3.3 percent at 24,369.71 (close)
Shanghai - Composite: UP 1.2 percent at 3,381.10 (close)
Euro/dollar: DOWN at 1.0787 from 1.0789 on Wednesday
Pound/dollar: UP at $1.2882 from $1.2895
Dollar/yen: DOWN 147.97 from 148.88 yen
Euro/pound: UP at 83.72 pence from 83.67 pence
Brent North Sea Crude: UP 0.2 percent at 69.46 per barrel
West Texas Intermediate: FLAT at $66.31 per barrel
burs-jmb/des

tariff

Trump car tariff pivot and Detroit's 'Big Three'

BY JOHN BIERS

  • While greeting Trump's tariff reprieve for USMCA-covered auto imports, automakers recognized the pause is only for one month.
  • After an outcry from Detroit, President Donald Trump has granted one-month tariff exemptions on most auto imports from Canada and Mexico, underscoring the continued clout of US carmakers.
  • While greeting Trump's tariff reprieve for USMCA-covered auto imports, automakers recognized the pause is only for one month.
After an outcry from Detroit, President Donald Trump has granted one-month tariff exemptions on most auto imports from Canada and Mexico, underscoring the continued clout of US carmakers.
The "Big Three" automakers -- Ford, General Motors and Chrysler-owner Stellantis -- operate their businesses on an integrated basis throughout North America, leaving them badly exposed to the proposed tariffs.
Trump, who won hotly-contested Michigan during the 2024 presidential campaign, halted the auto tariffs on Wednesday, just a day after they took effect. The announcement represents relief "but not a cure" since the same tariffs could kick in next month, said Bank of America.

Diminished 'Big 3' still a force

While much diminished from their heyday, General Motors, Ford and Stellantis remain giant players in the United States in terms of jobs and economic impact.
Automakers in the United States employ 436,000 workers, with the Big Three accounting for about 55 percent of that number.
The trio also accounts for half of the US assembly plants and nearly half of the 10 million vehicles assembled annually in the United States, according to a report by the American Automotive Policy Council (AAPC).
By comparison, foreign automakers like Honda, BMW and Nissan each account for five percent or less of total US auto jobs, while electric vehicle maker Tesla -- led by close Trump ally Elon Musk -- accounts for 14 percent, according to the AAPC.

Integrated throughout North America

The Big Three also produce cars in overseas factories, but most of their imports come from Mexico and Canada under the terms of a free trade pact inked during Trump's first term, the United States-Mexico-Canada Agreement (USMCA).
Popular vehicles imported from Mexico in 2024 included the Chevrolet Silverado and the Ford Maverick, while the Chrysler Pacifica and the Lincoln Nautilus were imported from Canada, according to figures from GlobalData.
Foreign automakers like Toyota and Honda also make use of the USMCA to produce cars in Canada and Mexico sold in the United States, and in organizing sophisticated supply chains in which parts and technology move seamlessly throughout the region.
The auto supply industry employs 932,000 people across the 50 US states, according to MEMA, the Vehicle Suppliers Association. The US auto supply industry procures about 27 percent of its manufacturing sourcing from Mexico and 10 percent from Canada, according to MEMA.

Other car tariffs coming

The auto industry's regional integration has made it among the sectors most exposed to Trump's hefty 25 percent tariffs on Mexico and Canada.
Ford CEO Jim Farley warned in February that enactment of the tariffs "would blow a hole in the US industry that we have never seen."
While greeting Trump's tariff reprieve for USMCA-covered auto imports, automakers recognized the pause is only for one month.
The Trump administration has depicted the tariffs as a tool to encourage more manufacturing capacity in the United States, but such decisions are not taken overnight.
"The reality is that a month is nowhere near enough time for automakers to relocate factories or reconfigure supply chains," said Jessica Caldwell, head of insights at Edmunds.
"In the short term, manufacturers may need to ramp up production and stockpile inventory as a hedge against potential tariffs —- an expensive and risky move that could lead to bloated inventories if the tariffs don't take effect."
Trump has broadly discussed a desire for 25 percent tariffs on imported cars but has offered few details.
If the administration maintains protection for USMCA imports, automakers from Germany, Japan and South Korea that import to the United States would seem to be the most exposed to such a policy.
About 50 percent of the cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany, also major suppliers.
jmb/des

Trump

Trump says Musk should use 'scalpel' not 'hatchet' in govt cuts

BY FRANKIE TAGGART

  • Trump told his team, with Musk in the room and on board, that the tech billionaire and top donor was authorized to recommend firings and other cuts but not to enforce them, according to Politico.
  • President Donald Trump responded Thursday to growing criticism over unprecedented cuts to the US government overseen by his billionaire advisor Elon Musk, saying they should be carefully targeted.
  • Trump told his team, with Musk in the room and on board, that the tech billionaire and top donor was authorized to recommend firings and other cuts but not to enforce them, according to Politico.
President Donald Trump responded Thursday to growing criticism over unprecedented cuts to the US government overseen by his billionaire advisor Elon Musk, saying they should be carefully targeted.
"We say the 'scalpel' rather than the 'hatchet,'" Trump posted on his social media platform Truth Social.
The president's message represents the first move to rein in the power accorded to Musk, as his Department of Government Efficiency (DOGE) works toward gutting federal staffing and spending.
But later, directly asked by reporters whether DOGE and Musk are moving too fast, Trump said: "No, I think they've done an amazing job." 
While Musk is not the formal administrator of DOGE, the SpaceX and Tesla CEO is nonetheless directing operations and even attended the first cabinet meeting of Trump's second term.
The body's cost-cutting campaign has faced increasing resistance on multiple fronts, however, including court rulings and some pressure from lawmakers.
"DOGE has been an incredible success, and now that we have my Cabinet in place, I have instructed the Secretaries and Leadership to work with DOGE on Cost Cutting measures and Staffing," Trump posted.
"As the Secretaries learn about, and understand, the people working for the various Departments, they can be very precise as to who will remain, and who will go."
Trump confirmed reports in the US media that he had convened his cabinet in person on Thursday to deliver the message that they, not Musk, were in charge of their departments.
Trump told his team, with Musk in the room and on board, that the tech billionaire and top donor was authorized to recommend firings and other cuts but not to enforce them, according to Politico.
"It's very important that we cut levels down to where they should be, but it's also important to keep the best and most productive people," the president said, adding that follow-up cabinet meetings on DOGE would come every two weeks.

Thousands fired

Trump's message came with the administration having fired or threatened to axe tens of thousands of workers from numerous federal agencies as it pursues cost savings.
More than two million federal employees received demands from the US Office of Personnel Management (OPM) -- the government's human resources department -- and Musk himself that they account for the work they have been doing in a bullet pointed memo or face the sack.
Labor groups quickly opposed the request, with the largest federal employee union, the American Federation of Government Employees (AFGE), vowing to challenge any unlawful terminations.
Several recent polls indicate that most Americans disapprove of the disruption to the nationwide federal workforce.
Dozens of lawsuits against Musk's threats or demands have yielded mixed results, with some requests for immediate halts to his executive orders being denied by judges.
Politico said Musk -- who had meetings with Republican lawmakers on Wednesday to reassure them over criticism of DOGE -- acknowledged in front of the cabinet that the task force had made missteps.
Around a third of DOGE staffers had resigned in protest over its methods by the end of February, saying they would not push through demanded changes that put the country at risk.
"We swore to serve the American people and uphold our oath to the Constitution across presidential administrations," 21 staffers of DOGE wrote in a letter, seen by AFP, to White House chief of staff Susan Wiles.
"However, it has become clear that we can no longer honor those commitments," they added.
The cuts have even sparked criticism from the normally staunchly-loyal Senate Republicans, whose leader John Thune preempted Trump by telling CNN on Tuesday that cabinet officials should retain the full control of personnel decisions. 
ft/dc/

court

Peru farmer confident ahead of German court battle with energy giant

  • "I have full confidence in these processes," he told a press conference in Lima on Wednesday.
  • A Peruvian farmer suing a German energy giant in a "David and Goliath" battle over climate change damage, says he has "full confidence" in the legal process in Germany.
  • "I have full confidence in these processes," he told a press conference in Lima on Wednesday.
A Peruvian farmer suing a German energy giant in a "David and Goliath" battle over climate change damage, says he has "full confidence" in the legal process in Germany.
Saul Luciano Lliuya, 44, argues that electricity producer RWE, as one of the world's top emitters of climate-altering carbon dioxide, must share in the cost of protecting his hometown Huaraz from a swollen glacier lake at risk of overflowing from melting snow and ice. 
He will depart for Germany in the coming days for a hearing scheduled for March 17-19 in the northwestern city of Hamm.
"I have full confidence in these processes," he told a press conference in Lima on Wednesday.
The father of two wants RWE, headquartered in Essen, Germany, to pay about 17,000 euros ($18,400) towards flood defenses for his community in Peru's northern Ancash region.
"What I am asking is for the company to take responsibility for part of the construction costs, such as a dike in this case," he said Wednesday.
Lliuya based his claim on a 2013 climate study which found RWE was responsible for some 0.5 percent of global emissions "since the beginning of industrialization."
He filed a suit against the company in 2015, but a court in Essen dismissed the case the following year. 
In 2017, however, a higher court in the city of Hamm admitted an appeal.
After the COVID-19 pandemic, German experts and judges visited Lake Palcacocha and the surrounding glaciers in Huaraz in 2022 to assess the situation.
This month's hearings must decide on the admissibility of the evidence collected.
The lawsuit is supported by the environmental NGO Germanwatch, whose lawyer Andrea Tang told reporters in Lima that "never before has a case of climate justice reached an evidentiary stage."
She added the case "would set a huge precedent for the future of climate justice... something that could be applied in other civil cases, in other countries as well."
RWE, which has never operated in Peru, says it has always complied with government guidelines on greenhouse gas emissions and is pursuing the goal of being CO2-neutral by 2040.
The company has said it does not understand why it is being singled out for legal action.
ljc/vel/sf/lab/mlr/cb/md

crypto

Trump to welcome crypto elite at White House

BY THOMAS URBAIN

  • The US crypto industry was a major supporter of Trump's successful campaign to regain the presidency, contributing millions of dollars towards his victory, hoping to end the Biden administration's deep skepticism toward the potential benefits of digital currencies.
  • US President Donald Trump, who has multiple ties to the crypto industry, will host the sector's top players at a White House summit on Friday, as the field enjoys renewed momentum following his election.
  • The US crypto industry was a major supporter of Trump's successful campaign to regain the presidency, contributing millions of dollars towards his victory, hoping to end the Biden administration's deep skepticism toward the potential benefits of digital currencies.
US President Donald Trump, who has multiple ties to the crypto industry, will host the sector's top players at a White House summit on Friday, as the field enjoys renewed momentum following his election.
The US crypto industry was a major supporter of Trump's successful campaign to regain the presidency, contributing millions of dollars towards his victory, hoping to end the Biden administration's deep skepticism toward the potential benefits of digital currencies.Now, they're seeing their support pay dividends.
Trump has waded into the space personally as well, partnering with exchange platform World Liberty Financial and launching his own "Trump" memecoin in January as his wife Melania did the same -- moves that have prompted conflict of interest accusations.
The president's "crypto czar," Silicon Valley investor David Sacks, will convene prominent founders, CEOs, and investors with members of a Trump working group to craft policies aimed at accelerating crypto growth and providing the legitimacy the industry has long wanted.
Guests will include twins Cameron and Tyler Winklevoss, founders of platform Gemini, with reports that Brian Armstrong of Coinbase and Michael Saylor, the boss of major bitcoin investor MicroStrategy, will also be in attendance.
Hanging over the crypto resurgence is the fate of FTX, the once-leading crypto exchange that collapsed spectacularly when its CEO Sam Bankman-Fried was found to have defrauded clients massively. He is now serving a 25-year term in a US jail.
For believers, cryptocurrencies represent a financial revolution that reduces dependence on centralized authorities while offering individuals freedom from traditional banking systems.
Bitcoin, the world's most traded cryptocurrency, is heralded as an alternative to gold or as a hedge against currency devaluation and political instability.

Crypto warnings

Critics maintain these assets function primarily as speculative investments with questionable real-world utility, warning that excessive deregulation could leave taxpayers on the hook for cleaning up market crashes.
Law enforcement agencies see digital assets as a means to launder ill-gotten money.
The proliferation of "memecoins" -- cryptocurrencies based on celebrities, internet memes, or pop culture rather than technical utility -- presents another challenge.
Much of the crypto industry frowns upon this practice because they fear it tarnishes the business, amid reports of quick pump-and-dump schemes that leave unwitting buyers paying for assets that end up worthless.
Despite his previous hostility toward cryptocurrencies, Trump has embraced the technology, declaring his intention to make the United States a crypto world power. 
His administration has already taken significant steps to clear regulatory hurdles.
On Sunday, Trump confirmed plans for a strategic cryptocurrency reserve where the US government would deposit digital currency holdings acquired mainly from judicial seizures.
Jacob Phillips of Lombard Finance called this potential move "one of the strongest endorsements the industry has ever seen," noting that several founders and teams have already relocated to the United States in response to the improving regulatory climate.
Trump also appointed crypto advocate Paul Atkins to head the Securities and Exchange Commission (SEC). 
Under Atkins, the SEC has dropped legal proceedings against major platforms like Coinbase and Kraken that were initiated during Joe Biden's term. 
The previous administration had implemented restrictions on banks holding cryptocurrencies (since lifted) and allowed former SEC chairman Gary Gensler to pursue aggressive enforcement despite the absence of clear legal frameworks.

'Pivotal moment'

Addressing ethics concerns, Sacks announced on X that he has divested from his substantial crypto holdings and investments, with industry figures quickly vouching for his integrity.
Friday's summit "marks a pivotal moment for the digital asset industry," according to Elitsa Taskova of Nexo, a cryptocurrency financial services platform.
However, meaningful change will likely require congressional action, where crypto legislation has remained stalled despite intense lobbying efforts by investors including Trump ally Marc Andreessen, an influential venture capitalist.
Some lawmakers remain hesitant, troubled by scandals and recurring reports of market crashes, theft and scams.
The recent $1.5 billion theft from the Bybit platform underscores the risks cryptocurrencies still present.
Nevertheless, Dante Disparte of Circle, which issues the dollar-pegged USDC stablecoin, sees growing bipartisan support for crypto legislation.
He attributed this emerging consensus to proposals that include strong transparency and anti-money laundering requirements alongside consumer and market protections.
tu/arp/mlm

economy

ECB chief warns of 'risks all over' as rates cut again

BY SAM REEVES

  • That change, combined with the warnings on uncertainty, signalled that "policymakers are clearly becoming more cautious about further rate cuts", said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.
  • European Central Bank chief Christine Lagarde warned Thursday the eurozone faces "risks all over" amid US tariff threats and massive German spending plans, as policymakers cut rates again but signalled future monetary easing was in doubt.
  • That change, combined with the warnings on uncertainty, signalled that "policymakers are clearly becoming more cautious about further rate cuts", said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.
European Central Bank chief Christine Lagarde warned Thursday the eurozone faces "risks all over" amid US tariff threats and massive German spending plans, as policymakers cut rates again but signalled future monetary easing was in doubt.
"We have huge uncertainty," Lagarde told a press conference after the ECB cut interest rates for the sixth time since June last year.
"We have risks all over, and uncertainty all over."
The quarter-percentage-point reduction brought the Frankfurt-based institution's benchmark deposit rate to 2.5 percent.
The central bank for the 20 countries that use the euro has pivoted from hiking rates to tackle inflation, which surged with Russia's invasion of Ukraine, to lowering them to boost the eurozone's floundering economy.
While insisting that the process of bringing inflation back down to the ECB's two-percent target remained on track, Lagarde listed multiple threats to the outlook, which made it hard to plot a path forward. 
"Tariffs -- and particularly if there is retaliation -- are not good at all, and are net-negative on pretty much all accounts," she said, at a time when US President Donald Trump is threatening to hit the European Union with 25-percent duties.

Tariff worries

Worries about US trade policy had been pushing rate-setters towards hitting pause, according to analysts.
Now, plans announced by Germany's likely next leader to massively boost defence and infrastructure spending are adding to the factors complicating the ECB's decisions.
While noting such increases could lift both growth and inflation -- potentially prompting the ECB to slow rate cuts -- Lagarde also stressed that the proposal by Friedrich Merz was a "work in progress", with the extent of its impact still unclear. 
Merz's dramatic move, announced Tuesday, was driven by fears that long-standing US security guarantees for Europe will be weakened under Trump amid a rush to end the war in Ukraine.
The ECB on Thursday also released updated forecasts that highlighted the euro area's economic woes.
The central bank hiked its inflation forecast for 2025 to 2.3 percent from its previous estimate of 2.1 percent, made in December.
The pace of consumer price rises in the eurozone had eased to 2.4 percent in February after having ticked up slightly over several months.  
The ECB also trimmed its growth forecast for 2025 and 2026 to 0.9 percent and 1.2, respectively. The forecasts, however, were calculated before Merz's announcement on spending.
With the debate heating up on when to potentially pause cuts, the central bank tweaked its guidance to say rates were becoming "meaningfully less restrictive", suggesting they were no longer having a major impact on bringing down inflation.
Markets had been on the lookout for the change in language, which they believe could indicate that ECB officials are gearing up to hold rates or stop lowering them completely.
That change, combined with the warnings on uncertainty, signalled that "policymakers are clearly becoming more cautious about further rate cuts", said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.
Clemens Fuest, president of the Ifo economic research institute, went further: "Rising wages and the increase in new government borrowing could lead to inflation rising again instead of falling further -- there is likely to be little scope for further interest rate cuts."

'More than ever'

Even before the German announcement, ECB policymakers were already asking how much further it should continue on the path to lower interest rates.
Isabel Schnabel, an influential ECB board member, told The Financial Times last month that policymakers were getting "closer to the point where we may have to pause or halt our rate cuts".
"We can no longer say with confidence that our monetary policy is still restrictive," she said. 
Lagarde, however, sought to stick to the ECB's current stance of not foreshadowing future decisions, insisting officials will make decisions at each meeting based on the latest data.
With uncertainty so high, Lagarde said the ECB was going to follow this stance "more than ever". 
"As I said repeatedly -- we are not pre-committing to any particular rate path," she said. 
bur-sr/sea/lth/rlp

conflict

Scandinavians boycott US goods over Trump's Ukraine U-turn

BY NIOUCHA ZAKAVATI

  • She admits it's not always easy, especially when it comes to tech goods and online services.
  • Scandinavian consumers outraged by US President Donald Trump's Ukraine policy turnaround have begun boycotting goods and services "Made in USA" but are discovering just how difficult that can be at times.
  • She admits it's not always easy, especially when it comes to tech goods and online services.
Scandinavian consumers outraged by US President Donald Trump's Ukraine policy turnaround have begun boycotting goods and services "Made in USA" but are discovering just how difficult that can be at times.
Several groups have emerged in recent days on social networks in Denmark and Sweden aimed at helping fellow consumers make alternate choices. The Danish group "Boykot varer fra USA" and the Swedish group "Bojkotta varor fran USA" each had some 63,000 members on Thursday.
"It is of course very difficult to boycott US products consistently, quickly and long-term, but if you want to do something and don't know where to begin, this could provide a little help," Agneta Gottberg Henriksson, 58, wrote on the Swedish Facebook group, attaching a list of US products that has been circulating online.
The list features a column on the left listing well-known American brands, while a column on the right suggests Swedish or European alternative options. 
Craving KFC? Go for "grilled chicken at your neighbourhood restaurant" instead.
But many of the other suggestions are problematic.
For instance, members are encouraged to opt for a French Peugeot instead of Tesla. However, Peugeot's owner Stellantis also owns several American brands including Jeep.
Shoppers pining for a new pair of Nike sneakers are told to swap them out for a pair of Salomons, owned by Finnish group Amer Sports. But that group is also listed in New York.
Boycotting omnipresent US products can be tricky.
For the past week, Gottberg Henriksson, a project manager from the southern Swedish region of Skane, has tried to avoid spending any money on American goods.
She admits it's not always easy, especially when it comes to tech goods and online services.
"It's a little ironic because this group (that launched the boycott) is mainly active on Facebook. We would really like to boycott it" but finding an alternative social network to the US-owned group is almost impossible, she told AFP.
Swedish public support for Ukraine following Russia's invasion has been massive, and military aid to Kyiv is one of the Scandinavian country's top foreign policy priorities.
"What is happening now in the United States -- turning its back on Ukraine and going back on all its promises -- that was the last straw," explained Gottberg Henriksson. 
She's even willing to lose money on her conviction.
Reviewing her investments, she realised that about 60 percent were placed on the US market. She decided to sell them all on March 4, the day huge US tariffs kicked in and sent global stocks tumbling.
"You have to accept it. If you really mean it, you really mean it," she said. 

European stars

In Denmark, the owner of several supermarket chains has decided to mark European products with a star, to help customers make their choice.
The initiative is in response to strong demand from consumers, the head of the Salling Group retailer, Anders Hagh, wrote on LinkedIn.
Swede Reidar Svedahl, 71, told AFP he had decided to boycott all US products after Trump's February 28 shouting match with Ukraine President Volodymyr Zelensky in the Oval Office.
Svehdal said it hadn't been too hard to forego at least some American goods.
"I think 99 percent of Europeans can do without 70 percent of all American products. Then the impact would be huge," he told AFP.
Like in most of Europe, sales of Tesla electric cars -- owned by key Trump ally Elon Musk, who has backed European far-right parties -- continued to slide in Norway and Denmark in February.
Sales in Norway were halved compared to February 2024, and were down by 44.4 percent in the first two months of the year compared to the same period a year ago.
Experts said however that the impact of the boycott would probably be limited. 
"Experience shows that it's very difficult to get any major economic effects from voluntary (consumer) boycotts," said Olof Johansson Stenman, economics professor at the University of Gothenburg. 
The effects are generally short-term and have little impact, added Eva Ossiansson, a researcher at University of Gothenburg.
nzg/ef/po/jll/rl

mining

Philippines' Palawan approves 50-year ban on new mining permits

BY CECIL MORELLA

  • Environmental lawyer Grizelda Anda, who worked in support of Wednesday's vote, said Manila would not be able to legally overrule the local government's decision, which now awaits the governor's signature.
  • The local government in a resource-rich Philippine province has unanimously voted in favour of a 50-year ban on new mining permits, a decision its supporters said cannot be overridden by Manila.
  • Environmental lawyer Grizelda Anda, who worked in support of Wednesday's vote, said Manila would not be able to legally overrule the local government's decision, which now awaits the governor's signature.
The local government in a resource-rich Philippine province has unanimously voted in favour of a 50-year ban on new mining permits, a decision its supporters said cannot be overridden by Manila.
Palawan province, a UNESCO "biosphere reserve" known for its diverse flora and fauna, has become a hotbed for mining as the national government seeks to widen its market share for minerals like nickel, a key component of electric vehicle batteries.
But locals have increasingly pushed back against new mine proposals, with environmental groups and activists pointing to effects ranging from deforestation and flooding to the displacement of Indigenous peoples.
There are currently 11 mines operated in Palawan, but scores of applications are pending.
Environmental lawyer Grizelda Anda, who worked in support of Wednesday's vote, said Manila would not be able to legally overrule the local government's decision, which now awaits the governor's signature.
"The (Philippine Mining Act of 1995) provides that you have to get the endorsement of the LGU (local government unit)," she said.
The new permit ban also imposes a 25-year pause on applications to renew or expand mining licenses.
Existing mines can continue "as long as they do not increase their production" or move into new areas, Anda added.

'A really big win'

"This is a really big win not just for the people but for the environment, especially Palawan, which is our last frontier here in the Philippines," said Jonila Castro, a spokesperson for the Manila-based Kalikasan People's Network for the Environment.
"We hope that many other provinces will have the same moratorium."
Palawan resident Jade Cabasag, 23, whose church advocated for the ban, told AFP she was one of about 100,000 people who had signed a petition in favour of it.
"We are more than just a sector that values our faith, but we also value our environment," she said, adding she was proud she could help in her "own little way".
But the Chamber of Mines of the Philippines criticised the vote, saying in a statement on Thursday that the environmental concerns were overblown given laws it said provided "stringent" safeguards.
The decision would also limit "the country's ability to plan and strategise about its mineral wealth at a time when the global demand for critical minerals is rising", it said.
"The Philippine government has a responsibility to the people to develop its mineral resources responsibly for the good of the many. Palawan cannot and should not limit the national government's ability to do so."
But mid-term elections in May, when 10 of the Palawan board's 11 members are up for re-election, could see the new ban undone if there is a dramatic shift in the body's makeup.
cgm/pam/cwl/dhw

semiconductors

Taiwan says TSMC investment 'historic moment' for US ties

BY JOY CHIANG AND AMBER WANG

  • It will take the total amount the world's biggest chipmaker has pledged to invest in the United States to $165 billion, which TSMC said was the "largest single foreign direct investment in US history".
  • Taiwanese chipmaking giant TSMC's plan to invest $100 billion in the United States was a "historic moment" for Taiwan-US ties, the island's President Lai Ching-te said on Thursday. 
  • It will take the total amount the world's biggest chipmaker has pledged to invest in the United States to $165 billion, which TSMC said was the "largest single foreign direct investment in US history".
Taiwanese chipmaking giant TSMC's plan to invest $100 billion in the United States was a "historic moment" for Taiwan-US ties, the island's President Lai Ching-te said on Thursday. 
TSMC, which counts Apple and Nvidia among its clients, announced the plan this week after US President Donald Trump threatened to impose tariffs on overseas-made chips.
It will take the total amount the world's biggest chipmaker has pledged to invest in the United States to $165 billion, which TSMC said was the "largest single foreign direct investment in US history".
Lai hailed the "historic moment for Taiwan-US relations" at a joint news conference with TSMC chairman and chief executive C.C. Wei at the Presidential Office.
It followed Trump's accusations that Taiwan stole the US chip industry and his threats to impose tariffs of up to 100 percent, as well as Taipei's promises to invest more in the United States.
TSMC has long faced demands to move more of its production away from Taiwan, with fears that supplies of the critical technology could be disrupted in any conflict with Beijing.
China has upped military pressure on Taiwan in recent years to press its claim of sovereignty over the self-ruled island, where TSMC has its headquarters and the bulk of its fabrication plants.
Trump recently ratcheted up the pressure on TSMC and other chip manufacturers by publicly mulling the introduction of tariffs of 25 percent, or higher, on all chips made outside the United States.

US demand 'extremely high'

Lai said on Thursday the government was not pressured by Washington "during TSMC's US investment process".
Wei said TSMC's expansion was driven by growing demand from US clients and that it would not affect the company's investments in Taiwan. 
TSMC planned to build 11 new production lines in Taiwan this year to meet demand, Wei said, adding "our production capacity is not enough".
"Whenever TSMC builds a production line in any location outside Taiwan, it is always driven by customer demand," Wei said.
"We went to Japan because of Japanese customer demand, to Germany because of German customer demand, and four years ago to the US because of American customer demand," he said.
"Now, we are increasing our investment because the demand from US customers is extremely high."

'Taiwan's TSMC'

Taiwan is a global powerhouse in semiconductor manufacturing, with more than half of the world's chips and nearly all of the high-end ones made there.
The concentration of chip manufacturing in Taiwan has long been seen as a "silicon shield" protecting it from an invasion or blockade by China -- and an incentive for the United States to defend it.
TSMC's new $100 billion investment sparked concerns that Trump was trying to take control of the company's production and that its growing US footprint could weaken Washington's willingness to protect Taiwan.
Premier Cho Jung-tai said earlier on Thursday "TSMC is 'Taiwan's TSMC'" and the company's production capacity and advanced technology were "rooted in Taiwan".
bur-amj/pbt

conflict

Ukraine titanium mine hopes US deal will bring funds

BY ANIA TSOUKANOVA

  • Ukraine, which has around five percent of global mineral resources, is the 11th biggest titanium producer in the world, according to World Mining Data.
  • In a barren, yellow-and-grey moonscape, heavy machinery grinds away at a titanium mine in the heart of Ukraine.
  • Ukraine, which has around five percent of global mineral resources, is the 11th biggest titanium producer in the world, according to World Mining Data.
In a barren, yellow-and-grey moonscape, heavy machinery grinds away at a titanium mine in the heart of Ukraine.
Despite tensions between Ukraine and the United States, hopes are high that the two countries can strike a minerals deal that would bring much-needed investment.
"Ukraine is very rich in mineral resources and if we do not extract them, Ukraine will simply lose out on revenues that it could have obtained," said Dmytro Golik, head of the mine operator.
Located in the Zhytomyr region in the western part of central Ukraine, the mine contains ilmenite, a titanium-iron oxide mineral which is widely used for pigments.
US President Donald Trump wants a share in revenues from Ukraine's mineral wealth as compensation for the military and financial aid Washington has poured into Ukraine since the start of Russia's invasion more than three years ago.
Ukraine, which has around five percent of global mineral resources, is the 11th biggest titanium producer in the world, according to World Mining Data.
Its mineral reserves could contain around 185 million tonnes of titanium, including as much as 65 million tonnes in the Zhytomyr region alone, Golik said.

Fraught negotiations

A Ukraine-US deal on minerals was due to have been signed at the White House last week, but the event was called off after a spectacular televised clash between Trump and Ukrainian President Volodymyr Zelensky.
Even before the meltdown in Washington, negotiations on the document were fraught.
Zelensky rejected several versions, pointing to the risk of plunging "10 generations of Ukrainians" into debt.
Kyiv and Washington finally agreed on a framework agreement for the creation of a joint fund that would handle part of the revenues from Ukrainian mineral extraction.
In the last few days, Ukrainian and US officials have signalled a readiness to sign the agreement soon, but no date has been fixed and terms could change again.
Golik declined to speculate on what the deal could contain and does not know if his mine, which covers 400 hectares and employs 350 people, would be part of it.
But he is adamant that the sector "really needs investment" since Ukrainian companies are not putting money into it.
"Who would these investors be? I think our employees, our people, are less interested in that than in having stable jobs."

'Additional protection'

Golik said a "strong foreign investor" would be "a kind of additional protection for the country" and additional tax revenues would boost the army. 
"It would not be just Ukraine's responsibility, it would become the responsibility of Europe or the whole world," he said.
While his mine is not directly affected by Russian strikes, its functioning has been hit by regular power cuts following Russian attacks on Ukraine's energy sector.
He said he hopes investors could be interested not only in exporting ilmenite but in producing the pigments inside Ukraine.
These could then be "easily sold in Europe and elsewhere in the world," Golik said.
Not everyone views Washington favourable given the current political context.
Trump has engineered a stunning rapprochement with Russian President Vladimir Putin and this week suspended all military assistance to Ukraine.
US financial demands have also been seen as predatory by some commentators in Ukraine -- a country ravaged by war.
Sergii, the operator of one of the huge excavators at the mine, said he was following the news with "concern".
"Natural resources are the property of the people," said Sergii, who has worked at the mine for 35 years.
They "must belong to Ukraine," he said.
ant-dt/jbr/lth

economy

DeepSeek success shows China's 'ability to innovate': official

  • "It is not just that the field of AI has been deeply shocked, but now also the world and the financial community have a new understanding of China's ability to innovate in science and technology," he said.
  • The shock entrance of DeepSeek in the race to develop advanced artificial intelligence has put the world on notice as to China's innovation prowess, a high-ranking Beijing official said Thursday.
  • "It is not just that the field of AI has been deeply shocked, but now also the world and the financial community have a new understanding of China's ability to innovate in science and technology," he said.
The shock entrance of DeepSeek in the race to develop advanced artificial intelligence has put the world on notice as to China's innovation prowess, a high-ranking Beijing official said Thursday.
The startup released a new version of its AI chatbot in January, sending shockwaves across global markets.
DeepSeek wowed industry insiders with its apparent ability to rival or even surpass the capabilities of Western competitors like ChatGPT at a fraction of the cost.
"DeepSeek has stood out in the global field of AI," said Wu Qing, Chairman of China's Securities Regulatory Commission.
"It is not just that the field of AI has been deeply shocked, but now also the world and the financial community have a new understanding of China's ability to innovate in science and technology," he said.
The official added that DeepSeek had contributed to a "recent re-evaluation of Chinese assets".
"If someone does not talk about DeepSeek these days, it seems that they're not fashionable," Wu said.
"But this phenomenon is indeed worthy of our high attention."
Recent weeks have seen shares in Chinese tech titans surge.
Last month, long-shunned Alibaba co-founder Jack Ma was seen meeting President Xi Jinping at a business symposium -- signalling a more welcoming stance from Beijing towards its domestic tech sector.
Alibaba's shares rose more than eight percent during Thursday trading in Hong Kong after it unveiled an AI model with a performance it said was "comparable" to DeepSeek.
Investors are watching for announcements this week from Beijing -- where officials are convening for a key annual political event known as the "Two Sessions" -- on further government support to boost innovation and spending.
Wu's comments came during a press conference on China's economy, which has struggled to fully recover from the pandemic.
Authorities are banking on advanced technology as a lifeline to reach official growth targets this year as heightened trade winds batter the export-dependent nation.
pfc/oho/pjm

economy

China vows to fight US trade war 'to the end'

BY SAM DAVIES AND LUNA LIN

  • Beijing announced its own measures on Tuesday in retaliation to Washington's latest tariff hike and vowed it would fight a trade war to the "bitter end".
  • China vowed to fight a trade war with the United States "to the end" on Thursday, as tariffs from Washington buffeted the global economy and threatened to hit Beijing's lagging growth.
  • Beijing announced its own measures on Tuesday in retaliation to Washington's latest tariff hike and vowed it would fight a trade war to the "bitter end".
China vowed to fight a trade war with the United States "to the end" on Thursday, as tariffs from Washington buffeted the global economy and threatened to hit Beijing's lagging growth.
Beijing set an ambitious annual growth target of around five percent this week, vowing to make domestic demand its main economic driver as the escalating trade confrontation with the United States hit exports.
US President Donald Trump imposed more blanket tariffs on Chinese imports this week, following a similar move last month -- levies expected to hit hundreds of billions of dollars in total trade between the world's two largest economies.
Commerce Minister Wang Wentao warned that US tariffs threatened to "disrupt the stability of the global industrial supply chain and hinder the development of the global economy".
"If the United States continues down this wrong path, we will fight to the end," he told reporters, decrying what he called "unilateralism and bullying" by Washington.
China's top economic planner Zheng Shanjie acknowledged that "uncertainty in the external environment is further increasing".
But, he said, China has "full confidence" that it can reach its growth goal this year.
"We have the basic support and guarantee of achieving this year's growth target of around five percent," Zheng said, speaking alongside Wang on the sidelines of Beijing's annual "Two Sessions" political meetings.
"We are also facing some problems -- such as insufficient domestic demand, production and operation difficulties in some industries and some enterprises," Zheng added.
"However, we feel that these difficulties and challenges... can all be overcome and solved".

Spending to expand

China's headline growth figure, announced by Premier Li Qiang on Wednesday at an annual Communist Party conclave, was broadly in line with an AFP survey of analysts.
But experts say it is ambitious considering the scale of China's economic challenges -- and are hoping officials will unveil further economic support this week.
On Thursday, central bank chief Pan Gongsheng said the country would cut interest rates further this year "as appropriate, based on domestic and international economic and financial situations".
Beijing's central bank cut two key interest rates to historic lows in October.
Finance Minister Lan Fo'an vowed Thursday to "further expand" fiscal spending in 2025.
That, he said, would promote "the sustainable and healthy development of the economy and society".
China has struggled to regain its footing since the Covid-19 pandemic, as domestic consumption flags and a persistent debt crisis in the vast property sector drags on.
Trump's latest round of tariffs has deepened the challenges.
Beijing announced its own measures on Tuesday in retaliation to Washington's latest tariff hike and vowed it would fight a trade war to the "bitter end".
The moves will see China impose levies of up to 15 percent on a range of US agricultural products including soybeans, pork and wheat starting from early next week.
mya-oho/pjm

business

7-Eleven owner seeks to fend off takeover with buyback, US IPO

BY TOMOHIRO OSAKI

  • Reports of the raft of measures, that appeared before the retailer's announcement, caused its shares to surge as much as 10 percent in afternoon trade.
  • The Japanese owner of 7-Eleven announced on Thursday a raft of new measures to fend off a takeover by a Canadian rival, including a huge share buyback and an IPO of its US unit.
  • Reports of the raft of measures, that appeared before the retailer's announcement, caused its shares to surge as much as 10 percent in afternoon trade.
The Japanese owner of 7-Eleven announced on Thursday a raft of new measures to fend off a takeover by a Canadian rival, including a huge share buyback and an IPO of its US unit.
The announcements are the latest twist in a saga that began last year, when Seven & i rebuffed a takeover offer worth nearly $40 billion from Canada's Alimentation Couche-Tard (ACT).
"We're convinced that now is the time to take our initiatives to the next level, and our leadership will further pursue the improvement of shareholder value and implement transformative policies," outgoing company president Ryuichi Isaka said in a statement.
"We have decided to conduct an initial public offering (IPO) of our SEI shares that operate the North American convenience store business, 7-Eleven, on one of the major US stock exchanges by the second half of 2026," Seven & i said.
It said it plans to buy back two trillion yen ($13.2 billion) of its own shares, using funds generated by that IPO and other restructuring measures.
The company also plans to sell its non-convenience-store business -- comprising supermarkets, restaurants and other assets -- to US private investment firm Bain Capital for $5.4 billion.
Seven & i, which operates some 85,000 convenience stores worldwide, also named Stephen Dacus as its first foreign chief executive to replace Isaka.
Reports of the raft of measures, that appeared before the retailer's announcement, caused its shares to surge as much as 10 percent in afternoon trade.
They later trimmed those gains and were trading up 6.5 percent before the market closed.

Behemoth

ACT's takeover would be the biggest foreign buyout of a Japanese firm, merging the 7-Eleven, Circle K and other franchises to create a global convenience store behemoth.
Japan's Yomiuri daily reported this week that a special committee scrutinising ACT's raised offer of reportedly around $47 billion had decided formally to reject that too.
Isaka told a news conference on Thursday that an ACT takeover would pose "serious US antitrust challenges", and that there had been "no meaningful progress" towards resolving them.
"Hence the proposal has no assurance that it would be in the best interest of group shareholders and other stakeholders," Isaka said through an interpreter.
He added however: "We will continue to examine and consider all strategic options, including the proposal from ACT, in order to realize the unlocking of our share value for our shareholders."

Rice balls

7-Eleven, the world's biggest convenience store brand, began in the United States but has been wholly owned by Seven & i since 2005.
Its stores are a beloved institution in Japan, selling everything from concert tickets to pet food and fresh rice balls, although sales have been flagging.
ACT, which began with one store in Quebec in 1980, runs nearly 17,000 convenience store outlets worldwide, including Circle K.
Dacus told the news conference that his father was a 7-Eleven franchisee in the United States and that he worked weekend night shifts as a teenager.
"I had no way of knowing that nearly 50 years later, I would be selected to run the global parent company of my father's small store," Dacus said in Japanese.
"As you all know, recently we have lost some momentum. We have to humbly face the fact that we have lost some market share," he added through an interpreter.
tmo-jug/stu/pjm

court

Acquittal of Fukushima operator ex-bosses finalised

  • In March 2011, a massive tsunami swamped the Fukushima Daiichi plant on Japan's northeastern coast after an undersea 9.0-magnitude earthquake, the country's strongest in recorded history.
  • Japan's top court said Thursday it had finalised the acquittal of two former executives from the operator of the Fukushima nuclear plant charged with professional negligence over the 2011 meltdown.
  • In March 2011, a massive tsunami swamped the Fukushima Daiichi plant on Japan's northeastern coast after an undersea 9.0-magnitude earthquake, the country's strongest in recorded history.
Japan's top court said Thursday it had finalised the acquittal of two former executives from the operator of the Fukushima nuclear plant charged with professional negligence over the 2011 meltdown.
The decision concludes the only criminal trial to arise from the plant's 2011 tsunami-triggered accident, the world's worst nuclear accident since Chernobyl.
Ichiro Takekuro and Sakae Muto, formerly vice presidents of Tokyo Electric Power Company (TEPCO), had been accused of liability for the deaths of more than 40 hospitalised patients, who had to be evacuated following the nuclear disaster.
Former chairman Tsunehisa Katsumata, who died last year, had also faced the same charges.
The men had faced up to five years in prison if convicted.
But the Tokyo District Court ruled in 2019 that the men could not have predicted the scale of the tsunami that hit the plant.
That verdict was upheld by the Tokyo High Court in 2023, but an appeal was then filed.
The Supreme Court on Wednesday "dismissed the prosecutors' appeals regarding Takekuro and Muto", a top court spokesman told AFP.
"Katsumata's public prosecution was dismissed in November" after his death, he added.
In March 2011, a massive tsunami swamped the Fukushima Daiichi plant on Japan's northeastern coast after an undersea 9.0-magnitude earthquake, the country's strongest in recorded history.
The tsunami left 18,500 people dead or missing.
But no one was recorded as having been directly killed by the nuclear accident, which forced evacuations and left parts of the surrounding area uninhabitable.
Despite the non-guilty criminal court verdict, in a July 2022 verdict in a separate civil case, the same three men and another were ordered to pay a whopping 13.3 trillion yen ($90 billion) for failing to prevent the disaster.
Lawyers have said the enormous compensation sum was believed to be the largest amount ever awarded in a civil lawsuit in Japan -- although they admit that is symbolic, as it is well beyond the defendants' capacity to pay.
kh/kaf/stu/pjm

earnings

Strikes hit Lufthansa profits, Olympics dent Air France

BY SAM REEVES

  • It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
  • German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delays in aircraft deliveries, but vowed a turnaround plan will boost earnings this year.
  • It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delays in aircraft deliveries, but vowed a turnaround plan will boost earnings this year.
European rival Air France-KLM also reported a big drop in its annual net income as some tourists avoided Paris during the Olympic Games last summer.
Lufthansa reported a net profit of 1.38 billion euros ($1.49 billion) last year, down 18 percent from 2023. Revenue rose slightly to 37.6 billion euros.
"Strikes weighed on the passenger airlines," Lufthansa said in a statement.
It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
The result was nevertheless better than a forecast of just over one billion euros by analysts surveyed by the financial data firm FactSet.
It came after a two-year streak of improving earnings for one of Europe's biggest aviation groups, whose carriers include Lufthansa, Eurowings, Austrian, Swiss and Brussels Airlines.
Like other airline groups, Lufthansa was hit hard when the Covid pandemic shut down global air travel and it had to be bailed out by the German government in 2020. 
It recorded two years of losses before flying strongly back into profit as demand roared back when lockdowns were lifted. 
Air France-KLM said its net profit fell almost threefold to 317 million euros from 934 million in 2023 due to the Olympics effect.
Its revenue rose 4.8 percent to 31.5 billion euros.
The Franco-Dutch group said the Paris Olympic Games cost the company 200 million euros in lost revenue as tourists decided to avoid the capital, plus 50 million euros in staff bonuses.
Other factors included rising costs and a strong dollar.

Upbeat outlook

Lufthansa's poor results for 2024 came despite a seven-percent increase in passengers to 131 million.
For 2025, Lufthansa gave an upbeat outlook, saying it was aiming for operating profits that were "significantly higher" than last year.
The group's 2024 operating profit -- a key figure that indicates a company's underlying health -- fell nearly 40 percent to 1.6 billion euros compared to the previous year. 
A turnaround programme launched last year for its flagship carrier, aimed at making hefty savings in the years ahead, will "lay the foundation for a sustainable increase in earnings", it pledged.  
Lufthansa faced substantial turbulence in the first half of 2024 when it was hit by a wave of strikes as workers pushed for higher pay to combat inflation. 
The group's ground staff and cabin crew staged repeated walkouts, which Lufthansa slammed as "uncompromising" and said risked "damaging our guests, the company and ultimately our employees".
Its problems worsened later in the year due to a string of issues, including weak market conditions and delayed aircraft deliveries. 
The Hamas-Israel war and broader tensions in the Middle East had an impact, forcing Lufthansa and Air France on occasion to suspend flights to and from several destinations in the region.
The German group has also blamed EU climate regulations, particularly rules related to sustainable aviation fuels, for increasing costs, and last year introduced an environmental charge for fares in Europe to compensate. 
There has been some good news however. Lufthansa in January finalised an agreement with Italy to acquire a minority stake in ITA Airways, the state-owned carrier born from the ashes of Alitalia.
Lufthansa has operational control of ITA, and will gradually increase its holding in the carrier to 100 percent.
"The complete integration of ITA Airways is expected to be completed after just 18 months," Lufthansa said Thursday.
sr/lth

earnings

Lufthansa 2024 profits dive amid strikes, rising costs

  • It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
  • German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delayed aircraft deliveries, as a post-pandemic rebound petered out. 
  • It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delayed aircraft deliveries, as a post-pandemic rebound petered out. 
The group reported a net profit of 1.38 billion euros ($1.49 billion), down 18 percent from 2023. Revenues came in at 37.6 billion euros, an increase of six percent from the previous year. 
"Strikes weighed on the passenger airlines", Lufthansa said in a statement.
It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries".
The result was nevertheless better than a forecast of just over one billion euros by analysts surveyed by financial data firm FactSet.
The lower profits came after a two-year streak of improving earnings for one of Europe's biggest aviation groups, whose carriers include Lufthansa, Eurowings, Austrian, Swiss and Brussels Airlines. 
Like other airline groups, Lufthansa was hit hard when the coronavirus shut down global air travel and it had to be bailed out by the German government in 2020. 
It recorded two years of losses before flying strongly back into profit as demand roared back when lockdowns were lifted. 
sr/ach