oil

Saudi Aramco profit drops 22 percent on lower prices

  • The Gulf oil major was trading at 23.91 riyals on Tuesday, 12 percent below the 27.35 riyals price of its secondary share offering last year.
  • Saudi Aramco's profit slid 22 percent in the second quarter to 85 billion riyals ($22.67 billion) as a slump in prices hit revenues, the oil giant said on Tuesday.
  • The Gulf oil major was trading at 23.91 riyals on Tuesday, 12 percent below the 27.35 riyals price of its secondary share offering last year.
Saudi Aramco's profit slid 22 percent in the second quarter to 85 billion riyals ($22.67 billion) as a slump in prices hit revenues, the oil giant said on Tuesday.
Aramco, the world's biggest oil exporter and driver of the Saudi economy, has now seen profits decline for 10 straight quarters since record results in late 2022.
"The decrease in revenue was mainly due to lower crude oil prices and lower refined and chemical products prices," Aramco said in its quarterly report.
The Gulf oil major was trading at 23.91 riyals on Tuesday, 12 percent below the 27.35 riyals price of its secondary share offering last year.
Since a high point of nearly $2.4 trillion in 2022, when oil prices soared following Russia's invasion of Ukraine, Aramco has lost more than $800 billion in market value.
Oil prices, currently around $70 a barrel, have remained low despite tensions roiling the Middle East, including the short-lived Israel-Iran war in June.
"Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half," said Aramco president and CEO Amin H. Nasser.
ht/th/kir

music

Gen Z shift, high costs force UK nightclubs to reinvent

BY CLARA LALANNE

  • The capital remains an "exciting" city, 25-year-old Carys Bromley who recently moved to London from the island of Guernsey, told AFP. "There's a lot of parties, clubs, and a big nightlife.
  • Is the party over?
  • The capital remains an "exciting" city, 25-year-old Carys Bromley who recently moved to London from the island of Guernsey, told AFP. "There's a lot of parties, clubs, and a big nightlife.
Is the party over? UK nightclubs are famed around the world, but Covid and inflation have hit the sector hard, forcing businesses to reinvent themselves to attract new generations to the dance floor.
Pryzm Kingston is a well-known club in southwest London popular with students, where artists like Billie Eilish, Rod Stewart, and Stormzy have performed.
But the converted cinema closed its doors for renovation last month, with its owners saying it was time to "look to the future and reimagine this venue for the next generation of partygoers."
It will be transformed into a smaller club and a dance bar -- "creating venues that reflect what people are looking for now," they added.
Many other British clubs are also trying to re-adjust after around a third of them, about 400 venues, have shut down since 2020, according to the Night Time Industries Association (NTIA).
"Whilst nightclubs were in gentle decline prior to Covid, the pandemic profoundly accelerated things," Tony Rigg, a music industry consultant, told AFP, noting that the cost-of-living crisis had sent bills and rents soaring.
As the first pints of the evening were poured in central London, 26-year-old account manager Conor Nugent told AFP he only goes clubbing for "special occasions," after asking himself "if it's really worth it."
Like 68 percent of 18-to-30-year-olds, the Londoner has cut back on nights out for financial reasons and prefers to save up for concerts and events.
Rigg pointed out that Covid-19 caused a "cultural shift" among Gen Z — those born between 1997 and 2012 — who generally drink less alcohol and largely miss out on the "rite of passage of going out, experiencing clubs and learning some social behaviours."

Lure of Paris, Berlin

Rekom UK, the company behind iconic clubs like Pryzm and Atik, filed for bankruptcy in 2024, shutting down 17 venues across the country, citing multiple pressures.
About 20 others, including Kingston, were acquired by Neos Hospitality, which decided to convert some into dance bars or host alcohol-free events. 
"The sector has to evolve otherwise it will become obsolete," Rigg acknowledged.
To stop hemorrhaging party-seekers lured by Berlin or Paris, London Mayor Sadiq Khan launched an independent working group called the "Nightlife Taskforce," which is set to publish a report later this year.
"One of the reasons why people love London is our nightlife, our culture," Khan told AFP.
"When I speak to mayors in Paris, in New York and Tokyo, I'm jealous of the powers they have" especially on licensing issues, he said, adding he was looking at other cities like Paris "with envy" as it enjoys a nighttime boom.
He was granted approval in March to overrule certain local authorities who had forced pubs, restaurants, concert halls, and nightclubs to close early.
The government has also announced plans to change regulations to support nightlife venues in certain areas.
"Sadly, in the UK, we struggle with reputational issues and a narrative that makes (clubbing) more of a counterculture element rather than a real economic and cultural driver," NTIA head Michael Kill, who advocates for greater recognition of electronic music and club culture, told AFP.
The night-time sector contributes a vital £153 billion ($203 billion) a year to the UK economy, employing around two million people, according to NTIA.
And with London still enjoying a long, well-established reputation, all is not lost.
The capital remains an "exciting" city, 25-year-old Carys Bromley who recently moved to London from the island of Guernsey, told AFP.
"There's a lot of parties, clubs, and a big nightlife. The places stay open longer, it's busier, a bit more wild," she said.
cla-zap/jwp/jkb/gv

heritage

Dutch windmill village churned by overtourism debate

BY RICHARD CARTER

  • Eventually, the "Zaanse Schans" site was famous enough to be officially "opened" by Queen Juliana in 1972.
  • With its historic windmills and gabled wooden houses nestling by a meandering river, the picture-perfect and TikTok-famous area of Zaanse Schans is a must-see for any visitor to the Netherlands.
  • Eventually, the "Zaanse Schans" site was famous enough to be officially "opened" by Queen Juliana in 1972.
With its historic windmills and gabled wooden houses nestling by a meandering river, the picture-perfect and TikTok-famous area of Zaanse Schans is a must-see for any visitor to the Netherlands.
But the village of centuries-old buildings near Amsterdam has become "a national symbol of overtourism", according to local authorities, who now want to charge a hotly contested entrance fee.
The fierce debate over the 17.50-euro ($20) ticket planned for next year comes during a global backlash against mass tourism that has seen hotspots like Venice charge for day trips.
On a glorious summer day when AFP visited, long queues for the world-famous windmills snaked outside the doors and crowds shuffled over bridges, waiting in line for Instagram-ready snaps of the bucolic scenery.
Buses disgorge scores of day-tripping tourists all day long, packing into a relatively small area that is public and free to visit -- for now.
The council in nearby Zaanstad says the fee is vital to preserve the heritage buildings, which are coming under "severe pressure" from high tourist numbers.
"For several years now, the Zaanse Schans has been a national symbol of overtourism," said alderman Wessel Breunesse.
Around 2.6 million tourists visited last year, a figure set to rise to three million in coming years if nothing is done, the council says.
An entrance fee could reduce the annual volume to around 1.8 million and bring in millions of euros to preserve these historic buildings.
"Doing nothing is not an option. Without sufficient resources for adequate maintenance, the heritage will be lost in the short term (five to seven years)," said the council in a statement sent to AFP.

Tourism-dependent economy

What many tourists do not know until they arrive is that while many of the buildings date from the 16th century, the site itself is a recent and artificial oddity.
After World War II, traditional timber construction was in danger of dying out for good.
Eager to preserve this slice of history, local mayor Joris in 't Veld came up with a plan: he would uproot the houses and relocate them to a new protected site.
The first mill arrived in 1955, the first house a few years later. Eventually, the "Zaanse Schans" site was famous enough to be officially "opened" by Queen Juliana in 1972.
"The Zaanse Schans was never conceived as the international crowd-puller it is today, attracting millions of visitors from all over the world," noted alderman Breunesse.
But for local resident and businesswoman Ingrid Kraakman, the plan to charge an entrance fee would spell disaster, both as a citizen and for the cheese shop in which she works.
"As a resident from this area, I don't want to live behind a fence... that's not OK," the 62-year-old told AFP from her 17th-century home in the heart of Zaanse Schans.
Kraakman and her husband Ko have lived in the area for 33 years and believe an entrance fee would be a death blow for the local economy and jobs.
"There's a lot of fear," she said, estimating that around 80 percent of the local economy is dependent on tourism.
Her cheese shop is brimming with tourists, attracted by free samples and souvenirs, but she said the fee would be a major drag on spending.
A family of four would already be paying around 80 euros with parking, reducing their budget for on-site purchases, she noted.
"They don't buy cheese. They don't buy clocks. They buy a souvenir or maybe the smallest cheese there is," she told AFP.

Referendum demand

The Kraakmans have collected more than 2,000 signatures for a referendum on the issue, but their push has so far fallen on deaf ears in the town hall.
Aware of some local hostility, the council has pledged the site will stay free for locals and that there will be no physical fence around the area.
Although the plans are for next year, an amendment was introduced to allow for the possibility of delays. Now 2026 seems too short a deadline -- a "moonshot", said one local official on condition of anonymity.
Most tourists said the trip would be worth it even if they had to pay.
Spanish visitor Robert Duque told AFP: "It's a lovely place but sometimes it's too crowded and you don't really get to enjoy the full experience."
The 35-year-old operations manager said he would welcome the entrance fee to crimp tourist volumes.
"I think it's good, so we can stagger the arrival of guests and we can enjoy the facilities more," said Duque.
ric/srg/rlp

tourism

Water shortages spell trouble on Turkey's tourist coast

BY RéMI BANET

  • "Our parents used to draw water from a depth of eight to nine metres, but now we have to go down to 170 metres (560 feet)," said Alyanak, the 39-year-old village chief in Germiyan. 
  • Ali Alyanak and his neighbours in Turkey's tourist hub Izmir now have to draw water from a shrinking aquifer 170 metres underground even as hotel pools remain full -- a sign for many of the region's dire water crisis amid prolonged drought.
  • "Our parents used to draw water from a depth of eight to nine metres, but now we have to go down to 170 metres (560 feet)," said Alyanak, the 39-year-old village chief in Germiyan. 
Ali Alyanak and his neighbours in Turkey's tourist hub Izmir now have to draw water from a shrinking aquifer 170 metres underground even as hotel pools remain full -- a sign for many of the region's dire water crisis amid prolonged drought.
"Our parents used to draw water from a depth of eight to nine metres, but now we have to go down to 170 metres (560 feet)," said Alyanak, the 39-year-old village chief in Germiyan. 
To cope, authorities in nearby Cesme, a popular seaside resort in Izmir province on Turkey's western coast, are restricting drinking water access to 10 hours a day.
The city of Izmir itself, Turkey's third largest, will cut that access to just six hours starting Wednesday.
Desolate images from the large nearby dam that supplies Cesme, widely broadcast on television, illustrated the risks for the region: its water level has plunged to three percent of capacity, leaving behind a barren landscape. 
For Alyanak and many others, the culprit is clear.
"Hotels are the main problem: The water in the pools evaporates, towels are washed daily and people take three to five showers a day, as soon as they go swimming or come back from outside," Alyanak fumed. 
"It's a waste".
Climatologists say the Mediterranean basin -- which concentrates 30 percent of world tourism -- will see a sharp decline in rainfall over the coming decades, raising fears of more frequent and severe droughts as a result of global warming.

Seawater pools?

The almost complete absence of rainfall since autumn is largely responsible for the current crisis, with some scientists calculating that 88 percent of Turkey's territory is at risk of desertification.
Last week, mosque loudspeakers across Turkey issued prayers for rain.
But experts also highlight the impact of tens of thousands of visitors, which is putting pressure on tourism hotspots throughout the Mediterranean.
Selma Akdogan of the Izmir Chamber of Environmental Engineers said tourists consumed "two to three times" more water than locals.
This at a time when "water levels are falling not only in summer but also in winter", she said, noting that "Rainfall is less regular but more intense, making it more difficult for the soil to absorb rainwater."
She wants local authorities to have hotels fill their swimming pools with seawater, for example, and for locals to give up lawns and grass in favour of less water-intensive yards.

'A real problem'

At the helm of a luxury 253-room establishment overlooking the turquoise waters of the Aegean sea, Orhan Belge has little patience for the media focus on the issue. 
"Big four- or five-star hotels like ours have water tanks of 200-250 tonnes. We have water 24 hours a day," said Belge, who is also president of the city's hoteliers' union.
For him, the solution to water shortages lies mainly in desalination, a costly and energy-intensive process already used by some hotels in the region. 
The manager of a small hotel in the city, who asked to remain anonymous, acknowledged that "water shortages are a real problem," but said he was primarily worried that use restrictions would prompt tourists to look elsewhere.
"Last summer, we were fully booked during the same period. And we were still full two weeks ago," he said.
"Now, the hotel is 80 percent empty and we have no reservations for August."
Sabiha Yurtsever, an 80-year-old retiree who has spent every summer in Cesme for the past 25 years, said she could not remember a summer so dry. 
She blamed both the government and hoteliers for making the region unliveable.
"When forests burn, they build hotels instead of replanting," said Yurtsever, who spends the rest of the year in Izmir.
"The fewer trees you have, the less rain you will get."
rba/ach/fo/js

corruption

Malaysia tycoon pleads guilty in Singapore to abetting obstruction of justice

  • In October last year, Iswaran was jailed for 12 months after he pleaded guilty to accepting illegal gifts worth more than Sg$400,000 ($310,000).
  • A Malaysian hotel tycoon who helped bring Formula One to Singapore pleaded guilty there Monday to abetting the obstruction of justice, in a case linked to one that saw a former minister jailed for accepting gifts as a public servant last year.
  • In October last year, Iswaran was jailed for 12 months after he pleaded guilty to accepting illegal gifts worth more than Sg$400,000 ($310,000).
A Malaysian hotel tycoon who helped bring Formula One to Singapore pleaded guilty there Monday to abetting the obstruction of justice, in a case linked to one that saw a former minister jailed for accepting gifts as a public servant last year.
Singapore-based billionaire Ong Beng Seng, 79, was charged in October last year with helping former transport minister S. Iswaran cover up evidence in a probe by the country’s anti-corruption bureau.
Ong entered his guilty plea from a glass-encased dock at a district court in downtown Singapore on Monday.
Prosecutors sought a two-month jail term after Ong agreed to plead guilty. He will be sentenced on August 15.
But prosecutors also agreed with defence lawyers that the court could exercise "judicial mercy" in view of Ong's poor health -- which could further reduce any sentence.
Defence lawyers pleaded for clemency, saying their septuagenarian client suffered from a litany of serious ailments, including an incurable form of cancer.
They asked for a "stiff fine" instead of actual jail time. 
"The risks to Mr. Ong's life increase dramatically in prison," lawyer Cavinder Bull told the court, saying prison could not give his client sufficient care.
"This man is living on the edge," Bull added.
The Attorney General's Chambers said in a statement that after "considering the medical evidence before the Court", the prosecutors did not object to imposing a fine instead of jail time.
The trial of Malaysia-born Ong had attracted significant media attention due to his links with Iswaran and the affluent city-state's reputation as one of the world's least corrupt nations.
Ong owns Singapore-based Hotel Properties Limited and is the rights holder to the Singapore Grand Prix Formula One race. 
He and Iswaran were instrumental in bringing the Formula One night race on a street circuit to Singapore in 2008.
In July 2023, Ong was arrested as part of a graft probe involving Iswaran and was subsequently released on bail.
In October last year, Iswaran was jailed for 12 months after he pleaded guilty to accepting illegal gifts worth more than Sg$400,000 ($310,000).
He was also found guilty of obstructing justice, in the city-state's first political graft trial in nearly half a century.
Iswaran completed his sentence on June 6.
mba/lb/fox

Global Edition

Asian markets track Wall St rally on Fed rate cut bets

  • The reading raised concerns the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 percent, according to Bloomberg. 
  • Stock markets rose Tuesday as investors grow increasingly confident the Federal Reserve will cut interest rates next month, despite concerns about the US economy and Donald Trump's tariffs.
  • The reading raised concerns the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 percent, according to Bloomberg. 
Stock markets rose Tuesday as investors grow increasingly confident the Federal Reserve will cut interest rates next month, despite concerns about the US economy and Donald Trump's tariffs.
The gains tracked a rally on Wall Street, where traders rediscovered their mojo following Friday's sell-off that was fuelled by news that fewer-than-expected American jobs were created in July, while the previous two months' figures were revised down sharply.
The reading raised concerns the world's biggest economy was in worse shape than expected, though it also fanned bets the Fed will slash in September, with markets pricing the chance of a 25-basis-point reduction at about 95 percent, according to Bloomberg. 
There is also talk that bank officials could go for twice as much as that.
"The narrative flipped fast: soft jobs equals soft Fed, and soft Fed equals risk-on," said Stephen Innes at SPI Asset Management.
But he warned that "if cuts are coming because the labour market is slipping from 'cooling' to 'cracking', then we're skating closer to the edge than we care to admit".
He added: "That dichotomy -- between rate cuts as stimulus and rate cuts as warning flare -- is now front and center. 
"If the Fed moves proactively to shield markets from the tariff storm and weak labour, the equity rally has legs. But if policymakers are reacting to a sharper downturn that is in full swing, the runway shortens quickly."
In early trade, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were all in the green.
However, while there is a broad expectation that the Fed will cut rates, Lazard chief market strategist Ronald Temple remained sceptical.
"I continue to believe the Fed will not reduce rates at all this year given rising inflation caused by tariffs and a relatively stable unemployment rate," he wrote.
"I would align with the majority of the FOMC members who believe it is more appropriate to hold policy constant until there is greater clarity in terms of the effects of tariffs and stricter immigration enforcement on inflation and employment."
Traders were keeping an eye on trade talks between Washington and dozens of its trade partners after Trump imposed tariffs of between 10 and 41 percent on them.
Among those to strike a deal is India, which Trump on Monday threatened to hit with "substantially" higher rates over its purchases of Russian oil.

Key figures at around 0230 GMT

Tokyo - Nikkei 225: UP 0.6 percent at 40,544.99 (break)
Hong Kong - Hang Seng Index: UP 0.1 percent at 24,747.97
Shanghai - Composite: UP 0.5 percent at 3,600.02
Dollar/yen: UP at 147.11 yen from 147.08 yen on Monday
Euro/dollar: DOWN at $1.1562 from $1.1573
Pound/dollar: UP at $1.3287 from $1.3285
Euro/pound: DOWN at 87.01 pence from 87.11 pence
West Texas Intermediate: DOWN 0.1 percent at $66.24 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $68.70 per barrel
New York - Dow: UP 1.3 percent at 44,173.64 (close)
London - FTSE 100: UP 0.7 percent at 9,128.30 (close)
dan/dhc

Global Edition

Stocks mostly rebound on US interest rate cut bets

  • Markets reacted more favorably on Monday, as the hiring slowdown boosted hopes of Fed rate cuts to support the economy.
  • Most stock markets bounced on Monday on hopes of US interest rate cuts after weak jobs figures raised concerns about the world's top economy.
  • Markets reacted more favorably on Monday, as the hiring slowdown boosted hopes of Fed rate cuts to support the economy.
Most stock markets bounced on Monday on hopes of US interest rate cuts after weak jobs figures raised concerns about the world's top economy.
The broad gains followed a Wall Street sell-off on Friday in reaction to the jobs data and news that dozens of countries would be hit with US tariffs ranging from 10 to 41 percent.
Major US indices spent the entire day in positive territory, with the broad-based S&P 500 finishing up 1.5 percent.
"Traders and investors have made a lot of money by deciding that tariffs won't matter, and they're not going to change that now," said Steve Sosnick of Interactive Brokers.
"I think the bias that most of them have now is 'Let's not think about tariffs as being a problem until they actually prove that they are.'"
European indices mostly started the week on the front foot, with Paris and Frankfurt both ending the day up more than one percent.
"Investors seem to be taking an optimistic view... betting on an increased likelihood of further monetary easing by the Fed after Friday's employment figures," said John Plassard, head of investment strategy at Cite Gestion Private Bank.
CME's FedWatch tool now has investors seeing a 94.1 percent chance of the Fed making a quarter-point cut in interest rates at the next meeting in September.
Plassard noted, however, that "uncertainty reigns" as US President Donald Trump's latest round of tariffs are set to take effect on Thursday.
Switzerland's stock market dropped around two percent at Monday's open, its first session as it returned from a holiday after a tough 39-percent US tariff rate was announced.
But the index later pared most of its losses on hopes the Swiss government, which announced it would make an improved offer to Washington, could negotiate a reduction in the levy, which is steeper than that imposed on the European Union and Britain.
London advanced, lifted by banking stocks after the sector was granted a reprieve from the worst of feared compensation claims over controversial car loans dating back to 2007.
Lloyds Banking Group jumped nine percent while Close Brothers, listed on the FTSE 250, soared more than 23 percent.
Asian investors started the week mixed, with Hong Kong and Shanghai advancing while Tokyo fell.
Stocks had struggled Friday as US jobs growth fell short of expectations in July, with revised data showing the weakest hiring since the Covid-19 pandemic -- fueling concerns that Trump's tariffs are starting to bite.
Trump responded to the data by firing the commissioner of labor statistics, accusing her of manipulating employment data for political reasons.
Markets reacted more favorably on Monday, as the hiring slowdown boosted hopes of Fed rate cuts to support the economy.
Elsewhere, oil prices fell more than two percent after a sharp output increase by eight OPEC+ countries, with markets anticipating abundant supply.
However, they later trimmed their losses after Trump threatened to hike tariffs on Indian goods further over its purchases of Russian oil.

Key figures at around 2050 GMT

New York - Dow: UP 1.3 percent at 44,173.64 (close)
New York - S&P 500: UP 1.5 percent at 6,329.94 (close)
New York - Nasdaq Composite: UP 2.0 percent at 21,053.58 (close)
London - FTSE 100: UP 0.7 percent at 9,128.30 (close)
Paris - CAC 40: UP 1.1 percent at 7,632.01 (close)
Frankfurt - DAX: UP 1.4 percent at 23,757.69 (close)
Tokyo - Nikkei 225: DOWN 1.3 percent at 40,290.70 (close)
Hong Kong - Hang Seng Index: UP 0.9 percent at 24,733.45 (close)
Shanghai - Composite: UP 0.9 percent at 3,583.31 (close)
Dollar/yen: DOWN at 147.08 yen from 147.40 yen on Friday
Euro/dollar: DOWN at $1.1573 from $1.1587
Pound/dollar: UP at $1.3285 from $1.3279
Euro/pound: DOWN at 87.11 pence from 87.25 pence
West Texas Intermediate: DOWN 1.6 percent at $66.29 per barrel
Brent North Sea Crude: DOWN 1.3 percent at $68.76 per barrel
burs-jmb/sst

Boeing

Boeing defense workers launch strike over contract dispute

  • It came hours after the union said in a statement that members at Boeing facilities in Missouri and Illinois had voted to reject a modified four-year labor agreement with Boeing.
  • Thousands of members of a union representing Boeing defense industry workers in the US states of Missouri and Illinois went on strike Monday after rejecting a contract proposal.
  • It came hours after the union said in a statement that members at Boeing facilities in Missouri and Illinois had voted to reject a modified four-year labor agreement with Boeing.
Thousands of members of a union representing Boeing defense industry workers in the US states of Missouri and Illinois went on strike Monday after rejecting a contract proposal.
In a post on X, the International Association of Machinists & Aerospace Workers said: "3,200 highly-skilled IAM Union members at Boeing went on strike at midnight because enough is enough.
"This is about respect and dignity, not empty promises."
It came hours after the union said in a statement that members at Boeing facilities in Missouri and Illinois had voted to reject a modified four-year labor agreement with Boeing.
The St. Louis local's stoppage follows a bruising Boeing strike last fall in the Pacific Northwest region of some 33,000 workers that halted production at factories that assemble Boeing commercial planes.
Local broadcast media showed footage of workers picketing outside the St. Louis factory. 
Members of the union's local chapter "have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation's defense," said IAM District 837 representative Tom Boelling.
The American aerospace giant's initial proposal, which included a 20 percent wage increase over four years and more vacation time, was rejected a week earlier.
The new offer doubled the wage increase, according to Boeing.
"We're disappointed our employees rejected an offer that featured 40 percent average wage growth and resolved their primary issue on alternative work schedules," Dan Gillian, Boeing Air Dominance vice president and senior St. Louis, Missouri site executive, said in a statement.
"We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers."
The storied company has been in crisis since last year due to production quality issues and a seven-week strike that crippled two of Boeing's major assembly plants.
IAM is one of North America's largest unions, representing some 600,000 members in aerospace, defense, shipbuilding, transportation, health care, manufacturing and other industries.
Products produced at Boeing's St. Louis operation include the F-15 and F-18 combat aircraft, the T-7 Red Hawk Advanced Pilot Training System and the MQ-25 unmanned aircraft. The site was originally part of the McDonnell Douglas company, which Boeing acquired in 1997.
Boeing Chief Executive Kelly Ortberg described the business hit from the strike in Missouri as manageable, noting that the operation has a far smaller number of workers compared with those who went on the picket lines last fall.
"I wouldn't worry too much about the implications of the strike," Ortberg said on an earnings conference call. "We'll manage our way through that."
Shares of Boeing rose 0.2 percent on Monday.
ni-jmb/des

economy

Trump says to name new labor statistics chief this week

BY BEIYI SEOW

  • He added Monday: "I will pick an exceptional replacement."
  • US President Donald Trump said Monday that he would pick an "exceptional replacement" for his labor statistics chief, days after ordering her dismissal after a report showed weakness in the jobs market.
  • He added Monday: "I will pick an exceptional replacement."
US President Donald Trump said Monday that he would pick an "exceptional replacement" for his labor statistics chief, days after ordering her dismissal after a report showed weakness in the jobs market.
In a post on his Truth Social platform, Trump reiterated -- without providing evidence -- that Friday's employment report "was rigged."
He alleged that commissioner of labor statistics Erika McEntarfer had manipulated data to diminish his administration's accomplishments, drawing sharp criticism from economists and a professional association.
"We'll be announcing a new (labor) statistician some time over the next three-four days," Trump told reporters Sunday.
He added Monday: "I will pick an exceptional replacement."
US job growth missed expectations in July, figures from the Bureau of Labor Statistics showed, and sharp revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic.
Trump ordered the removal of McEntarfer hours after the figures were published.
"We had no confidence. I mean the numbers were ridiculous," Trump told reporters Sunday. He charged that McEntarfer came up with "phenomenal" numbers on his predecessor Joe Biden's economy before the 2024 election.

Hiring slowdown

Even as he called for more reliable data Monday, White House economic adviser Kevin Hassett conceded that the jobs market was indeed cooling.
But Hassett maintained in a CNBC interview that this softening did not reflect the incoming effects of Trump's flagship tax and spending legislation -- signed into law early last month.
US employment data point to challenges as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping -- and rapidly changing -- tariffs this year.
The United States added 73,000 jobs in July, while the unemployment rate rose to 4.2 percent, the Department of Labor reported.
Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000.
These were notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs.
Over the weekend, Hassett defended McEntarfer's firing in an NBC News interview: "The president wants his own people there so that when we see the numbers they are more transparent and more reliable."
Trump's decision has come under fire. William Beach, who previously held McEntarfer's post, said the move set a "dangerous precedent."
The National Association for Business Economics condemned her dismissal, saying large revisions in jobs numbers "reflect not manipulation, but rather the dwindling resources afforded to statistical agencies."
In addition to a successor to McEntarfer, Trump is also expected to name a replacement for Federal Reserve governor Adriana Kugler.
Kugler's early resignation, effective Friday, allows Trump a vacancy to fill as he pushes the independent central bank to lower interest rates.
German Finance Minister Lars Klingbeil on Monday emphasized the importance of supporting "independent, neutral and proven institutions."
He said: "It is right that independent institutions remain independent and that politics do not interfere with them."
McEntarfer, a labor economist, was confirmed to the commissioner role in January 2024.
abs-lob-bys/aha

tariff

Swiss eye 'more attractive' offer for Trump after tariff shock

BY NATHALIE OLOF-ORS

  • "Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation," the council said in a statement.
  • Switzerland said on Monday it was ready to make a better offer to the United States to avoid steep tariffs that have shocked the country.
  • "Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation," the council said in a statement.
Switzerland said on Monday it was ready to make a better offer to the United States to avoid steep tariffs that have shocked the country.
The Alpine nation faces a 39-percent duty, one of the highest among the dozens of economies that will be hit by new tariffs expected to come into force from Thursday.
The Swiss stock market tumbled by more than two percent when it opened on Monday before paring its losses later in the day, ending the day down just 0.15 percent. It was closed for a national holiday when Trump unveiled the tariffs on Friday.
Trump had originally threatened in April to slap a 31-percent tariff on Switzerland, which swiftly decided to negotiate with the United States.
By comparison, the 27-nation European Union struck its own deal with Trump and will face tariffs of 15 percent, down from a previous threat of 30 percent.
Swiss President Karin Keller-Sutter has said Trump believes that Switzerland "steals" from the United States by enjoying a trade surplus of 40 billion Swiss francs ($50 billion).
The Swiss Federal Council said after an emergency meeting on Monday that it would "continue negotiations with the aim of reaching a trade deal", even beyond the Thursday deadline.
"Switzerland enters this new phase ready to present a more attractive offer, taking US concerns into account and seeking to ease the current tariff situation," the council said in a statement.
It said the looming tariff put the country "at a distinct disadvantage compared with other trading partners with similar economic profiles", citing lower duties for the EU, Britain and Japan.
US Trade Representative Jamieson Greer, however, warned on Sunday that "the coming days" were not likely to see changes in any duties as the "tariff rates are pretty much set".

Chocolate, watches, pharmaceuticals

Hans Gersbach, deputy head of the KOF Swiss Economic Institute, said the tariffs could cut the country's annual growth by between 0.3 and 0.6 percent.
But it could be as much as 0.7 percent if Trump targets the pharmaceutical industry, which has so far been exempt from tariffs.
Pharmaceutical products account for more than half of Swiss exports, the economist noted.
Analysts at Swiss investment managers Vontobel said in a note that they believed "there is some hope for an agreement on US tariffs for Switzerland" that would bring them down to the 15 percent set for other countries.
XTB Research Director Kathleen Brooks said the recovery of the Swiss stock market during the day on Monday "is a sign that investors are optimistic about the prospect of a lower levy being negotiated in the coming days".
But Vontobel analysts added that if the 39-percent tariffs remain in place, earnings for key sectors such as watchmakers "could be hit substantially".
The chocolate industry association, Chocosuisse, said the tariffs were a "tough blow" for the sector, which is already reeling from a 10-percent duty.
"It is particularly shocking that Switzerland finds itself at a distinct disadvantage compared to all other Western industrialised countries," it said in a statement, urging the government to continue negotiating.
Swiss media said the government could point to distortions in the gold trade during the negotiations as it inflates the country's trade surplus with the United States.
Switzerland is home to refineries where imported gold bars -- mostly from Britain -- are melted down to meet US standards.
These gold transactions create a statistical distortion in trade figures, according to the Sunday newspaper SonntagsZeitung, which suggests pointing out that they give the impression Switzerland exports more to the US than it actually does.
noo/rl/sbk

court

Tesla approves $29 bn in shares to Musk as court case rumbles on

  • With that appeal dragging out, Monday's announcement marks an interim step while the company develops a "longer-term CEO compensation strategy," Tesla said in a letter to shareholders.
  • Tesla announced an "interim" compensation award worth about $29 billion for Elon Musk on Monday, asserting the need to retain the controversial CEO at a moment of fierce competition for top talent.
  • With that appeal dragging out, Monday's announcement marks an interim step while the company develops a "longer-term CEO compensation strategy," Tesla said in a letter to shareholders.
Tesla announced an "interim" compensation award worth about $29 billion for Elon Musk on Monday, asserting the need to retain the controversial CEO at a moment of fierce competition for top talent.
The electric vehicle maker said in a statement it will award a distribution of 96 million Tesla shares to Musk as it "intends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders."
The award comes as Tesla challenges a Delaware court ruling that struck down a 2018 package of about $55.8 billion. With that appeal dragging out, Monday's announcement marks an interim step while the company develops a "longer-term CEO compensation strategy," Tesla said in a letter to shareholders.
"We have recommended this award as a first step, 'good faith' payment," said the letter. "Retaining Elon is more important than ever before."

Tesla 'rough' patch

The move comes amid a fierce battle for top engineering talent as companies like Google and Meta compete for leadership on artificial intelligence.
The Tesla letter, signed by Tesla board members Robyn Denholm and Kathleen Wilson-Thompson, described Musk as a "magnet for hiring and retaining talent at Tesla," noting that Tesla is transitioning from its electric vehicle focus "to grow towards becoming a leader in AI, robotics and related services."
Musk is viewed within the business world as a unique talent after his success with building Tesla and SpaceX into major global companies. 
But his stewardship at Tesla has come under scrutiny in the last year as car sales and profits have tumbled. 
This trend has been partly due to Musk's support for far-right political causes, but also is related to a sluggish rollout of new auto models after the polarizing Cybertruck sold poorly. 
In a July 23 Tesla earnings call, Musk warned of more potentially "rough" quarters ahead before the company's robotics and AI ventures pay off.
On the call, Musk reiterated his concern about the current framework in which he holds about 13 percent of Tesla shares prior to Monday's award.
"As I've mentioned before, I think my control over Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can't be thrown out if I go crazy," Musk said.
Tesla's statement did not explicitly mention Musk's foray into politics, which has sparked consumer boycotts and vandalism. But the letter by Denholm and Wilson-Thompson alluded to concerns that Musk's attention had drifted from the company, calling the interim package a step towards "keeping Elon's energies focused on Tesla."
The massive pay package comes eight months after the judge in a Delaware court rejected Musk's even larger compensation at Tesla, denying an attempt to restore the pay deal through a shareholder vote.
Musk would be required to forfeit the new compensation package should the appeals court rule in his favor and grant him the full 2018 compensation, which at the time was valued at $55.8 billion.
The new payout is sure to fuel concerns about the compensation for Musk, already the world's richest man, and whether the Tesla board is placing a sufficient check on the company's chief executive.
Tesla shares rose 2.4 percent Monday in early trading.
jmb/mlm

Israel

Jordan sees tourism slump over Gaza war

  • Although Jordan does not border the Gaza Strip, it has been among several countries across the region impacted by the war between Israel and the Palestinian militant group Hamas.
  • Jordan has seen a decrease in the number of tourists visiting its famed ancient city of Petra and other sites since the Gaza war began in October 2023, according to officials.
  • Although Jordan does not border the Gaza Strip, it has been among several countries across the region impacted by the war between Israel and the Palestinian militant group Hamas.
Jordan has seen a decrease in the number of tourists visiting its famed ancient city of Petra and other sites since the Gaza war began in October 2023, according to officials.
Although Jordan does not border the Gaza Strip, it has been among several countries across the region impacted by the war between Israel and the Palestinian militant group Hamas.
Figures released by the Petra Development and Tourism Region Authority and reported Monday by the official Al-Mamlaka TV showed the number of visitors dropped by around 61 percent from 1,174,137 in 2023 to 457,215 last year.
"We feel the repercussions of the aggression on Gaza every day, especially for providers of tourism services," Abdul Razzaq Arabiyat, the director of the national tourism board, told Al-Mamlaka on Friday.
He said incoming tourism from Europe and North America has hit a record low, dealing a devastating blow to the hotel industry and tour operators around Petra, in Jordan's south.
According to figures from the Petra tourism authority carried by official media, 32 hotels have had to shut down and nearly 700 people have lost their jobs.
Petra, famous for its stunning temples hewn from rose-pink cliff faces, is a UN World Heritage site.
The Jordanian economy relies on revenues from the kingdom's tourism sector, which accounts for 14 percent of gross domestic product.
kt/rd/ami/ser

economy

Trump says will name new economics data official this week

  • He added Monday: "I will pick an exceptional replacement."
  • US President Donald Trump said Monday that he would pick an "exceptional replacement" to his labor statistics chief -- after ordering her dismissal as a new report showed weakness in the US jobs market.
  • He added Monday: "I will pick an exceptional replacement."
US President Donald Trump said Monday that he would pick an "exceptional replacement" to his labor statistics chief -- after ordering her dismissal as a new report showed weakness in the US jobs market.
In a post on his Truth Social platform, Trump reiterated -- without immediately providing evidence -- that an employment report released last Friday "was rigged."
He alleged that the official had manipulated data to diminish his administration's economic accomplishments.
"We'll be announcing a new (labor) statistician some time over the next three-four days," Trump earlier told reporters.
He added Monday: "I will pick an exceptional replacement."
US job growth missed expectations in July, figures from the Bureau of Labor Statistics showed Friday, and sharp revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic.
Shortly afterwards, Trump ordered the removal of Erika McEntarfer, the department's commissioner of labor statistics.
Trump told reporters Sunday: "We had no confidence. I mean the numbers were ridiculous."
Trump added that the same official, just before the 2024 election, "came out with these phenomenal numbers on (Joe) Biden's economy."
He claimed those job numbers were "a scam."
The United States added 73,000 jobs last month, while the unemployment rate rose to 4.2 percent, the Department of Labor reported.
Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000.
This was notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs.
The employment data points to challenges in the labor market as companies took a cautious approach in hiring and investment while grappling with Trump's sweeping -- and rapidly changing -- tariffs this year.
White House economic advisor Kevin Hassett defended McEntarfer's firing in an NBC News interview Saturday.
Asked if the president was prepared to fire anyone who reports data he disagrees with, Hassett said: "Absolutely not. The president wants his own people there so that when we see the numbers they are more transparent and more reliable."
Trump's decision was criticized as setting a "dangerous precedent" by William Beach, who previously held McEntarfer's post at the Bureau of Labor Statistics. 
The National Association for Business Economics condemned her dismissal, saying large revisions in jobs numbers "reflect not manipulation, but rather the dwindling resources afforded to statistical agencies."
McEntarfer, a labor economist, had been in the commissioner role for just over a year after being confirmed by the US Senate in January 2024.
abs-bys/mlm

technology

China's Baidu to deploy robotaxis on rideshare app Lyft

  • Lyft and Baidu said Monday that "in the following years" the fleet of Apollo Go driverless cars will be expanded to thousands of vehicles across Europe.
  • Chinese internet giant Baidu plans to launch its robotaxis on rideshare app Lyft in Germany and Britain in 2026, pending regulatory approval, the two companies said on Monday.  
  • Lyft and Baidu said Monday that "in the following years" the fleet of Apollo Go driverless cars will be expanded to thousands of vehicles across Europe.
Chinese internet giant Baidu plans to launch its robotaxis on rideshare app Lyft in Germany and Britain in 2026, pending regulatory approval, the two companies said on Monday.  
Last month, Baidu announced a similar agreement with Uber in Asia and the Middle East as it seeks to take pole position in the competitive autonomous driving field both at home and abroad.
Lyft and Baidu said Monday that "in the following years" the fleet of Apollo Go driverless cars will be expanded to thousands of vehicles across Europe.
They did not specify which other countries the cars would be deployed in, and it was not clear how long it might take to gain regulatory approval for the initial deployment.
Driverless taxis are already on some roads with limited capacity in the United States and China, most notably in the central city of Wuhan, where a fleet of over 500 can be hailed by app in designated areas.
Their reach is spreading, with Shanghai's financial district Pudong recently announcing a batch of permits for multiple companies to operate robotaxis.
China's tech companies and automakers have poured billions of dollars into self-driving technology in recent years, with intelligent driving the new battleground in the country's cutthroat domestic car market.
Baidu is not alone among Chinese companies in searching to expand its foothold abroad. 
Its rival WeRide is also active in the Gulf region, and in January announced it had been picked to lead a small pilot project in Switzerland. 
Pony.AI, another Chinese company, said in May that it had signed a deal to launch its self-driving taxis on Uber in "a key market in the Middle East later this year".
San Francisco-based Lyft in April said it had agreed to buy German taxi app Freenow, planting a flag in the European market.
The acquisition marked Lyft's "most significant expansion outside North America", the group said. 
isk/reb/lb

Global Edition

Stocks mostly rise as traders boost US rate cut bets

  • Markets reacted more favourably on Monday, as the slowdown boosted hopes of Fed rate cuts to support the economy.
  • Most stock markets bounced on Monday as hopes for US interest rate cuts rose following a sharp slowdown in jobs growth that raised concerns about the world's top economy.
  • Markets reacted more favourably on Monday, as the slowdown boosted hopes of Fed rate cuts to support the economy.
Most stock markets bounced on Monday as hopes for US interest rate cuts rose following a sharp slowdown in jobs growth that raised concerns about the world's top economy.
The broad gains followed a sell-off on Wall Street Friday in reaction to the weak jobs data and news that dozens of countries would be hit with US tariffs ranging from 10 to 41 percent.
European indices mostly started the week on the front foot, with Paris gaining 0.8 percent and Frankfurt rising over one percent.
"Investors seem to be taking an optimistic view... betting on an increased likelihood of further monetary easing by the Fed after Friday's employment figures," said John Plassard, head of investment strategy at Cite Gestion Private Bank.
He noted, however, that "uncertainty reigns" as US President Donald Trump's tariffs are set to take effect on Thursday. 
Switzerland's stock market dropped around two percent at Monday's open, its first session as it returned from a holiday after a tough 39-percent US tariff rate was announced.
The index pared some of its losses in early afternoon trading, with hopes the Swiss government can negotiate a reduction in the levy, which is steeper than that imposed on the European Union and Britain.
London advanced, lifted by banking stocks after the sector was granted reprieve from the worst of feared compensation claims over controversial car loans dating back to 2007.
Lloyds Banking Group rose nearly eight percent, while Close Brothers, listed on the FTSE 250, soared more than 20 percent.
Asian investors started the week mixed, with Hong Kong and Shanghai advancing while Tokyo fell.
Stocks had struggled Friday as US jobs growth missed expectation in July, with revised data showing the weakest hiring since the Covid-19 pandemic -- fuelling concerns that Trump's tariffs are starting to bite.
The president responded to the data by firing the commissioner of labour statistics, accusing her of manipulating employment data for political reasons.
Markets reacted more favourably on Monday, as the slowdown boosted hopes of Fed rate cuts to support the economy.
"Analysts are betting that rate-setters will prioritise recession avoidance over price controls," said Derren Nathan, head of equity research at Hargreaves Lansdown.
"This is likely the main driver of a rebound in US stock futures in anticipation of a positive market open later today," he added.
Observers also noted that news of Federal Reserve governor Adriana Kugler stepping down six months early gives Trump a chance to increase his influence on the Fed as he pushes for lower rates.
Oil prices fell after a sharp output increase by eight OPEC+ countries, with markets anticipating abundant supply.

Key figures at around 1100 GMT

London - FTSE 100: UP 0.3 percent at 9,093.20 points
Paris - CAC 40: UP 0.8 percent at 7,606.20 
Frankfurt - DAX: UP 1.3 percent at 23,720.70
Tokyo - Nikkei 225: DOWN 1.3 percent at 40,290.70 (close)
Hong Kong - Hang Seng Index: UP 0.9 percent at 24,733.45 (close)
Shanghai - Composite: UP 0.9 percent at 3,583.31 (close)
New York - Dow: DOWN 1.2 percent at 43,588.58 (close)
Dollar/yen: UP at 147.57 yen from 147.43 yen on Friday
Euro/dollar: DOWN at $1.1574 from $1.1586
Pound/dollar: UP at $1.3293 from $1.3276
Euro/pound: DOWN at 87.10 pence from 87.25 pence
West Texas Intermediate: DOWN 1.6 percent at $66.25 per barrel
Brent North Sea Crude: DOWN 1.5 percent at $68.64 per barrel
dan-ajb/rl

oil

BP makes largest oil, gas discovery in 25 years off Brazil

  • The discovery comes as a boost to the struggling energy major as it undergoes a major overhaul to focus on its more profitable oil and gas business, shelving its once industry-leading renewable energy strategy. 
  • Britain's BP announced Monday it made its biggest oil and gas discovery in 25 years off the coast of Brazil, as it shifts back to its fossil fuel business.
  • The discovery comes as a boost to the struggling energy major as it undergoes a major overhaul to focus on its more profitable oil and gas business, shelving its once industry-leading renewable energy strategy. 
Britain's BP announced Monday it made its biggest oil and gas discovery in 25 years off the coast of Brazil, as it shifts back to its fossil fuel business.
The discovery comes as a boost to the struggling energy major as it undergoes a major overhaul to focus on its more profitable oil and gas business, shelving its once industry-leading renewable energy strategy. 
The company said it had located oil and gas at the Bumerangue prospect, 404 kilometres (251 miles) from Rio de Janeiro, in a water depth of 2,372 metres.
"This is another success in what has been an exceptional year so far for our exploration team, underscoring our commitment to growing our upstream," said Gordon Birrell, BP's executive vice president for production and operations.
It marks the 10th discovery by BP in 2025.
Shares in the company rose more than one percent on London's top-tier FTSE 100 index following the announcement.
BP is ramping up its global exploration programme, with around 40 wells planned over the next three years, including as many as 15 to be drilled this year.
The group expects to grow its daily global output to between 2.3 million and 2.5 million barrels of oil equivalent in 2030.
"BP will want to use its latest numbers to convince the market it has truly revamped its strategy and moved away from the green push which proved unpopular with a significant portion of its shareholder base," said AJ Bell investment director Russ Mould.
BP publishes its latest earnings on Tuesday, after rival Shell last week reported a 23-percent slide in first-half net profit, hit by lower oil and gas prices.
ajb/lth

Shein

Italy fines fast-fashion giant Shein for 'green' claims

  • The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the authority said in a statement.
  • Italy's competition watchdog said Monday it has fined the company responsible for Shein's websites in Europe one million euros ($1.15 million) for false and confusing claims about the e-commerce giant's efforts to be environmentally "green".
  • The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the authority said in a statement.
Italy's competition watchdog said Monday it has fined the company responsible for Shein's websites in Europe one million euros ($1.15 million) for false and confusing claims about the e-commerce giant's efforts to be environmentally "green".
The AGCM watchdog accuses the China-founded fast-fashion colossal of having "adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products".
The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the authority said in a statement.
The AGCM accused it of "misleading and/or deceptive environmental messages and claims... in the promotion and sale of Shein-branded clothing products".
These were "in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive".
In particular, claims about the recyclability of products "were found to be either false or at least confusing", it said.
Consumers could easily be led to believe Shein products were made exclusively from sustainable materials and fully recyclable, "a statement which, given the fibres used and current recycling systems, does not reflect reality".
The AGCM also took issue with the retailer's claims it would reduce greenhouse gas emissions by 25 percent by 2030 and reach zero emissions by 2050.
These "vague" pledges by a company which has seen phenomenal growth in recent years were "contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024", it said.
In a statement to AFP, Shein said it had "cooperated fully" with the watchdog's investigation and "took immediate action" to address the concerns, saying all environmental claims on the website were now "clear, specific and compliant with regulations".
Environmentalists have long warned of the damage wreaked by the fast-fashion sector's wasteful trend of mass producing low-cost clothes that are quickly thrown away.
Fast fashion uses up massive amounts of water, produces hazardous chemicals and clogs up landfills in poor countries with textile waste, while also generating greenhouse gases in production, transport and disposal.
ide/ar/lth

banking

Shares in UK banks jump after car loan court ruling

  • While the court upheld one of the three cases, it narrowed the overall grounds for claims, offering relief to banks that had been bracing for widespread payouts from millions of car buyers.
  • Shares in British banks rose on Monday after the country's top court spared the sector from the worst of feared compensation claims over controversial car loans.
  • While the court upheld one of the three cases, it narrowed the overall grounds for claims, offering relief to banks that had been bracing for widespread payouts from millions of car buyers.
Shares in British banks rose on Monday after the country's top court spared the sector from the worst of feared compensation claims over controversial car loans.
The Supreme Court, in a ruling on Friday after markets closed, largely overturned earlier judgements that had found it unlawful for car dealers to earn a commission on loans stretching back to 2007 in which borrowers had not been properly informed about the payments.
While the court upheld one of the three cases, it narrowed the overall grounds for claims, offering relief to banks that had been bracing for widespread payouts from millions of car buyers.
Shares in Lloyds Banking Group jumped seven percent and Barclays rose two percent in early trading on London's benchmark FTSE 100 index.
Close Brothers saw its stock surge more than 20 percent on the FTSE 250 after the court ruled in its favour in one of the cases reviewed.
The Supreme Court overturned rulings on two of the three cases but upheld one, based on specific circumstances -- including the high level of commission charged and the complexity of the contract involved.
Lloyds said on Monday the decision was unlikely to have an impact on the bank as it had already set aside nearly £1.2 billion ($1.6 billion) in preparation for the ruling. 
Britain's financial watchdog said on Sunday it would consult on a redress scheme for affected consumers and warned banks could still face more than £9 billion ($12 billion) in compensation payments.
That figure, however, is far lower than the £44-billion bill expected by some analysts before the ruling.
The Financial Conduct Authority estimated most individuals will probably receive less than £950 in compensation.
In some cases, the loans -- available from 2007 to 2021 -- allowed car dealers to offer higher interest rates in return for a bigger commission from banks.
The ruling means that dealers have some leeway when arranging loans, without requiring explicit consent from borrowers for terms that may benefit lenders.
ajb/jkb/lth

Global Edition

Tourism boom sparks backlash in historic heart of Athens

BY MARINA RAFENBERG

  • Any resident who spots a restaurant terrace encroaching on public space or cars parked on the pavement can report the offenders to this team.
  • Surrounded by a hubbub of blaring music, restaurant terraces and rumbling suitcase wheels slaloming between overflowing litter bins, Giorgos Zafeiriou believes surging tourism has made his historic Athens neighbourhood unrecognisable.
  • Any resident who spots a restaurant terrace encroaching on public space or cars parked on the pavement can report the offenders to this team.
Surrounded by a hubbub of blaring music, restaurant terraces and rumbling suitcase wheels slaloming between overflowing litter bins, Giorgos Zafeiriou believes surging tourism has made his historic Athens neighbourhood unrecognisable.
The Greek capital's Plaka district "is threatened by overtourism", said Zafeiriou, who has lived there for more than three decades and leads its residents' association.
This year, 10 million people are expected to visit Athens, an increase of two million from 2024 which reflects the city's growing popularity as a tourist destination since the Covid-19 pandemic ended.
Despite its label as the cradle of Western civilisation, Athens was previously regarded as a mere stopping point between the airport and the port of Piraeus, from where tourists explore Greece's myriad of picturesque islands.
Nicknamed "the neighbourhood of the gods", Plaka is nestled below the ancient Acropolis hill, a world heritage site hosting the millennia-old Parthenon temple which welcomed almost 4.5 million visitors last year.
Plaka is now awash with tourists who navigate its warren of narrow streets lined with cafes, taverns, souvenir shops, small Byzantine churches and relics from Antiquity and the Ottoman era.
Plaka "is Europe's oldest neighbourhood which has been inhabited continuously since Antiquity", said Lydia Carras, head of the Ellet association working to preserve the environment and cultural heritage. 
"We cannot see it lose its soul," she added.

'Saturated with tourists'

Tourism is a pillar of the Greek economy, which endured years of painful austerity following the 2008 global financial crash and the ensuing eurozone debt crisis.
For souvenir shop seller Konstantinos Marinakis, "Greece is finally doing better thanks to the good health of tourism which allowed the economy to recover and create jobs."
But the flourishing sector has generated a backlash in Europe's most sought-after locations, with locals complaining of soaring housing prices and the impact on their neighbourhoods.
Protesters have targeted tourists with water pistols in Spain's Barcelona, while the Italian city of Venice has introduced a charge in a bid to control visitor numbers.
Mayor Haris Doukas told AFP with pride that Athens was now one of the world's 10 most-visited cities, but acknowledged "areas like Plaka which are saturated with tourists".
"We are not yet at the stage of Barcelona, but we must act before it is too late," he said.
An "intervention unit" for Plaka was recently created to enforce rules with the support of the police.
Any resident who spots a restaurant terrace encroaching on public space or cars parked on the pavement can report the offenders to this team.
"Between 1960 and 1980, Plaka was overwhelmed by discos and bouzoukias," and "many residents had already left," explained Carras, referring to clubs that play traditional Greek music.
A 1993 presidential decree shut the clubs, protected homes and specified the use of each building in the neighbourhood, with hotels only allowed on certain streets.

Rules 'dodged'

But "these rules have been dodged", with "entire houses converted into several apartments" advertised on short-term rental platforms, said Dimitris Melissas, a lawyer specialising in urban planning. 
Plaka's population of 2,000 can be swamped by up to four times as many tourists in the summer, added Melissas, although no official statistics exist because the census measures Athens as a whole.
Representing Ellet, the lawyer has taken a case over the legality of 16 buildings converted entirely into seasonal rentals to the Council of State, Greece's top administrative court.
He argued they are actually hotel premises in disguise because they have receptions or serve breakfast on terraces. A decision, which could set an important legal precedent, is expected by the end of September.
The conservative government has banned new registrations of apartments on short-term rental platforms for at least a year in central Athens, where more than 12,000 seasonal lets existed in 2024, fuelling rent rises.
"But when I still read adverts in newspapers to invest in apartments that can be converted into Airbnbs, I doubt the effectiveness of this measure," said Melissas.
"The problem in Greece is not voting laws but enforcing them."
mr/imm/sbk

pesticides

Rwanda bees being wiped out by pesticides

BY MOSES GAHIGI

  • Despite being banned for use in the EU, malathion is still exported by Denmark, France and Germany -- 12.5 tonnes in 2023, according to the European Chemicals Agency. 
  • The use of pesticides in East Africa, some sold by European firms despite being banned in the EU, is killing off bees in large numbers and threatening whole eco-systems, scientists say. 
  • Despite being banned for use in the EU, malathion is still exported by Denmark, France and Germany -- 12.5 tonnes in 2023, according to the European Chemicals Agency. 
The use of pesticides in East Africa, some sold by European firms despite being banned in the EU, is killing off bees in large numbers and threatening whole eco-systems, scientists say. 
Joseph Ruzigana, of Muhanga district in southern Rwanda, woke up one morning to find all the bees in his 20 newly constructed beehives had died.
"Fellow beekeepers have also lost plenty of bees to these dangerous pesticides. It looks like we won't get any honey this season," he told AFP.
Ruzigana said many beekeepers, who number more than 100,000 in Rwanda according to officials, were giving up. 
"The few bees left are very weak and unproductive... I used to get up to 25 kilogrammes (55 pounds) of honey from one beehive in a month-long season, my family was well taken care of, but all that has collapsed," he said.
Changing climate conditions are part of the problem: longer rains this season were not favourable to beekeeping.
But the main issue is pesticides, say locals and experts. 
Bees pollinate crops including coffee, tea, avocados, mangoes, beans and tomatoes -- making them key to an agricultural sector that accounts for 30 percent of GDP and 70 percent of employment in Rwanda. 
It is the same across the region. Uganda, Ethiopia, Tanzania and Kenya have all reported increasing bee mortality rates due to pesticides, according to the International Centre of Insect Physiology and Ecology in Nairobi.

Hazardous pesticides

Rwanda is a poor and landlocked country striving to feed its people through improved maize and rice cultivation, and pesticides help control pests like armyworms.
But many pesticides affect bees' navigation and reproduction, and have been linked to colony collapse disorder, when worker bees abandon a hive.
Rwanda grows large amounts of pyrethrum, a flower that could be used to make a natural pesticide, but exports all its pyrethrum liquid.
Instead, Rwandan farmers use imported synthetic pesticides. A 2022 study by Turkey's Ondokuz Mayis University found that 72 percent used Rocket, containing profenofos, which is highly toxic to bees.
Jeanne Nyirandahimana, part of a women's beekeeping cooperative, said average earnings have fallen from around 250,000 Rwandan francs ($178) per season to around 30,000 ($21). 
"It is pesticides like Rocket killing our bees, every day we find many bees dead on roofs and some die in beehives," she said.
An earlier study by the University of Rwanda found that 22 percent of farmers around Lake Kivu used malathion, also deadly to bees. 
Despite being banned for use in the EU, malathion is still exported by Denmark, France and Germany -- 12.5 tonnes in 2023, according to the European Chemicals Agency. 

'Critical importance'

Jean Claude Izamuhaye, head of crop production at the Rwanda Agricultural Board, said the body was working on the problem.
"They are our natural pollinators, and it is of critical importance that bees are saved," he said, adding that the board was looking into increasing the use of less harmful "bio-pesticides".
The continued sale of toxic pesticides by EU companies can also mean they end up in the food that is sold back to Europe. 
A study released this month by Foodwatch, an advocacy group, found that more than half the food imported into the EU from Rwanda contained traces of "highly hazardous" pesticides that are banned in Europe. 
EU countries sold 81,615 tonnes of 41 banned pesticides to other countries for agricultural use in 2022, according to the Pesticide Action Network.
str/er/rmb