diplomacy

Trump announces new 100 percent China tariff, threatens to scrap Xi talks

BY DANNY KEMP AND BEIYI SEOW

  • Trump had threatened the tariffs hours earlier in a lengthy surprise post on his Truth Social network that said China had sent letters to countries around the world detailing export controls on rare earth minerals.
  • US President Donald Trump announced an additional 100 percent tariff on China Friday and threatened to cancel a summit with Xi Jinping, reigniting his trade war with Beijing in a row over export curbs on rare earth minerals.
  • Trump had threatened the tariffs hours earlier in a lengthy surprise post on his Truth Social network that said China had sent letters to countries around the world detailing export controls on rare earth minerals.
US President Donald Trump announced an additional 100 percent tariff on China Friday and threatened to cancel a summit with Xi Jinping, reigniting his trade war with Beijing in a row over export curbs on rare earth minerals.
Trump said the extra levies, plus US export controls on "any and all critical software," would come into effect from November 1 in retaliation for what he called Beijing's "extraordinarily aggressive" moves.
"It is impossible to believe that China would have taken such an action, but they have, and the rest is History," he said on Truth Social.
Stock markets fell as the simmering trade war between the United States and China reignited, with the Nasdaq down 3.6 percent and the S&P 500 down 2.7 percent.
Chinese goods currently face US tariffs of 30 percent under tariffs that Trump brought in while accusing Beijing of aiding in the fentanyl trade, and over alleged unfair practices.
China's retaliatory tariffs are currently at 10 percent.
Trump had threatened the tariffs hours earlier in a lengthy surprise post on his Truth Social network that said China had sent letters to countries around the world detailing export controls on rare earth minerals.
Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.
"There is no way that China should be allowed to hold the World 'captive,'" Trump wrote, describing China's stance as "very hostile".
The US president then called into question his plans to meet Chinese president Xi at the Asia-Pacific Economic Cooperation (APEC) summit later this month.
It was to be the first encounter between the leaders of the world's two largest economies since Trump returned to power in January.
"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," he wrote.
Trump later told reporters in the Oval Office that he hadn't canceled the meeting.
"I haven't canceled, but I don't know that we're going to have it. But I'm going to be there regardless, so I would assume we might have it," he said.

'Lying in wait'

The US president said he did not understand why China was choosing to act now. "Some very strange things are happening in China! They are becoming very hostile," he said.
Trump said other countries had contacted the United States expressing anger over China's "great Trade hostility, which came out of nowhere."
He also accused Beijing of "lying in wait" despite what he characterized as six months of good relations, which has notably seen progress on bringing TikTok's US operations under American control as required by a law passed by Congress last year.
His outburst comes just weeks after he had spoken of the importance of meeting Xi at the APEC summit and said that he would travel to China next year.
Washington and Beijing engaged in a tit-for-tat tariffs war earlier this year that threatened to effectively halt trade between the world's two largest economies.
Both sides eventually agreed to de-escalate tensions but the truce has been shaky.
Trump said last week that he would push Xi on US soybean purchases as American farmers, a key voting demographic in his 2024 election win, grapple with fallout from his trade wars.
China had said earlier Friday that it would impose "special port fees" on ships operated by and built in the United States after Washington announced charges for Chinese-linked ships in April.
In a further development, the US communications watchdog said it had successfully managed to get "millions" of listings for banned Chinese items removed from commerce platforms.
"The Communist Party of China is engaged in a multi-prong effort to insert insecure devices into Americans' homes and businesses," Brendan Carr, head of the Federal Communications Commission, said on X.
dk-bys

Global Edition

Stocks shudder after Trump threatens new tariff war with China

  • Oil prices had already fallen more than two percent as the Gaza ceasefire took effect, easing concerns about a wider regional conflict that could disrupt supply.
  • Stock markets fell Friday after US President Donald Trump threatened China with "massive" new tariffs, while oil prices retreated as Middle East tensions eased following the Gaza ceasefire.
  • Oil prices had already fallen more than two percent as the Gaza ceasefire took effect, easing concerns about a wider regional conflict that could disrupt supply.
Stock markets fell Friday after US President Donald Trump threatened China with "massive" new tariffs, while oil prices retreated as Middle East tensions eased following the Gaza ceasefire.
Trump, in an angry and lengthy social media post, slammed China for "very hostile" trade practices, including imposing new export controls on rare earths.
In addition to "a massive increase of Tariffs," other major countermeasures were "under consideration", he said, adding that he no longer felt it necessary to meet China's President Xi Jinping at a summit later in the month.
Trump's sharp pivot sent Wall Street's major indices sharply lower, with the Nasdaq leading the major benchmarks lower, down 3.6 percent.
The dollar fell against its main rival currencies.
Trump's message "has been disrupting the market calm," said Angelo Kourkafas of Edward Jones, who also noted that markets have been poised for a pullback after a heady rally.
Washington and Beijing had been de-escalating trade tensions after a tit-for-tat tariffs war earlier this year, with the Trump-Xi meeting expected to help prolong a shaky truce.
However China on Thursday announced new controls on the export of rare-earth technologies and items, adding to regulations on a critical industry that has been a key source of tension between Beijing and Washington.
Oil prices had already fallen more than two percent as the Gaza ceasefire took effect, easing concerns about a wider regional conflict that could disrupt supply.
But trade war worries pushed prices down more, with the US benchmark West Texas Intermediate ending down 4.2 percent at $58.90, its lowest closing price since April.
European markets also slid after Trump's comments.
Paris finished the day down 1.5 percent amid focus on French President Emmanuel Macron's handling of a rolling political crisis.
The president late Friday reappointed his outgoing Prime Minister Sebastien Lecornu, just four days after he gave his resignation.
The week was marked by a raft of new records in several markets, with the tech-heavy Nasdaq index, the Frankfurt stock exchange and gold prices reaching new heights. Silver also surged to a decades-long high.
Buying sentiment won a boost earlier this week from news that ChatGPT-maker OpenAI had signed multi-billion-dollar chip deals with US firm AMD as well as South Korean titans Samsung and SK hynix.
However, there are rumblings that the rally could run out of steam, causing jitters on trading floors.
"The AI bubble debate remains a hot topic: some argue this is the new internet bubble 2.0 waiting to burst, others think it's a bubble that still has room to inflate," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Such worries have been part of the reason behind the rally in gold to a record price above $4,000 an ounce Wednesday.

Key figures at around 2010 GMT

New York - Dow: DOWN 1.9 percent at 45,479.60 (close)
New York - S&P 500: DOWN 2.7 percent at 6,552.51 (close)
New York - Nasdaq Composite: DOWN 3.6 percent at 22,204.43 (close)
London - FTSE 100: DOWN 0.9 percent at 9,427.47 (close)
Paris - CAC 40: DOWN 1.5 percent at 7,918.00 (close) 
Frankfurt - DAX: DOWN 1.5 percent at 24,241.46 (close) 
Tokyo - Nikkei 225: DOWN 1.0 percent at 48,088.80 (close)
Hong Kong - Hang Seng Index: DOWN 1.7 percent at 26,290.32 (close)
Shanghai - Composite: DOWN 0.9 percent at 3,897.03 (close)
Euro/dollar: UP at $1.1615 from $1.1564 on Thursday
Pound/dollar: UP at $1.3352 from $1.3304
Dollar/yen: DOWN at 151.57 yen from 153.07 yen
Euro/pound: UP at 86.98 pence from 86.93 pence
Brent North Sea Crude: DOWN 3.8 percent at $62.73 per barrel
West Texas Intermediate: DOWN 4.2 percent at $58.90 per barrel
bur-jmb/des

diplomacy

Trump says no reason to meet Xi, threatens 'massive' China tariffs

  • "One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America," Trump said, adding that he was considering "many other countermeasures."
  • US President Donald Trump said Friday he no longer feels a summit is necessary with Chinese counterpart Xi Jinping this month, slamming Beijing for hostile trade practices and threatening "massive" tariffs.
  • "One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America," Trump said, adding that he was considering "many other countermeasures."
US President Donald Trump said Friday he no longer feels a summit is necessary with Chinese counterpart Xi Jinping this month, slamming Beijing for hostile trade practices and threatening "massive" tariffs.
"Some very strange things are happening in China! They are becoming very hostile," Trump said in a long post on Truth Social that railed against China imposing export controls on rare earth minerals -- a critical component in modern technology.
"I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so," he added in the post, which he sent as he headed for a medical check-up at a military hospital near Washington
Trump said China had sent letters to countries around the world detailing export controls on "each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it's not manufactured in China."
"There is no way that China should be allowed to hold the World 'captive,' but that seems to have been their plan for quite some time," Trump wrote, adding that Beijing had been "lying in wait" despite what he characterized as six months of good bilateral relations.
Rare earth elements are critical to manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology. China dominates global production and processing of these materials.
"One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America," Trump said, adding that he was considering "many other countermeasures."
Trump said other countries had contacted the United States expressing anger over China's "great Trade hostility, which came out of nowhere."
The president added that he had not spoken to Xi about the matter.
He characterized China's approach as building monopoly positions on magnets and other elements, calling it "a rather sinister and hostile move, to say the least."
arp-dk/sms

children

EU grills Apple, Snapchat, YouTube over risks to children

BY RAZIYE AKKOC

  • - 'Pressing need' - In a parallel push on child protection, EU telecoms ministers discussed age verification on social media and what steps they can take to make the world online safer for minors.
  • The EU Friday demanded digital giants including Snapchat and YouTube explain how they are protecting children from online harm, as all but two member states signalled openness to restricting social media access for minors.
  • - 'Pressing need' - In a parallel push on child protection, EU telecoms ministers discussed age verification on social media and what steps they can take to make the world online safer for minors.
The EU Friday demanded digital giants including Snapchat and YouTube explain how they are protecting children from online harm, as all but two member states signalled openness to restricting social media access for minors.
The European Union has stringent rules regulating the digital space, including what children should be able to see, but there is increasing concern that more needs doing.
Inspired by Australia's social media ban for under-16s, Brussels is analysing whether to set bloc-wide limits on minors' access to platforms -- with 25 of 27 EU countries coming out Friday in support of at least studying such a measure.
Europe's biggest weapon for ensuring platforms tackle illegal content and keep children safe online is the Digital Services Act, which has sparked censorship claims from the US tech sector and retaliation threats from President Donald Trump.
Now, as part of "investigative actions" under the DSA, the European Commission has sent a request for information to Snapchat about what steps it is taking to prevent access for children under 13.
The commission has also asked Apple's App Store and the Google Play marketplace to provide details on measures taken to prevent children downloading illegal or harmful apps -- for example, those with gambling services or sexual content.
The EU wants to know in particular how Apple and Google stop children downloading tools to create non-consensual sexualised content -- so-called "nudify apps" -- as well as how they apply apps' age ratings.
"Privacy, security and safety have to be ensured, and this is not always the case, and that's why the commission is tightening the enforcement of our rules," tech chief Henna Virkkunen said before EU ministers met in Denmark.
A request for information can lead to probes and even fines, but does not in itself suggest the law has been broken, nor is it a move towards punishment.

Multiple probes

Regarding Snapchat, Brussels wants to know how the messaging app stops users from buying drugs and vapes.
A Snapchat spokesperson said the company was "deeply committed" to ensuring safety on its platform and would provide the information requested.
Snapchat said the company had already "built privacy and safety features" to reduce "risks and potential harms".
Brussels also wants YouTube -- owned by Google parent Alphabet -- to provide details on its recommender system, "following reporting of harmful content being disseminated to minors", the commission said.
Google said it had "robust controls for parents", and "security and protections for younger users", adding it would keep expanding its efforts.
Separately, the EU is investigating Meta's Facebook and Instagram, as well as TikTok, over fears they are not doing enough to combat the addictive nature of their platforms for children.

'Pressing need'

In a parallel push on child protection, EU telecoms ministers discussed age verification on social media and what steps they can take to make the world online safer for minors.
European Commission chief Ursula von der Leyen personally supports such a move, and Brussels is setting up an experts' panel to assess what steps could be taken at the EU level.
Twenty-five of the EU's 27 countries alongside Norway and Iceland signed a declaration backing von der Leyen's plans to study a potential bloc-wide digital majority age, and on the "pressing need" to shield minors online.
Belgium and Estonia did not sign the statement. A Belgian diplomat said the country was committed to protecting children online but wanted to keep an open mind about what tools to use.
Estonia was more outspoken, saying it prioritised "digital education and critical thinking over access bans".
Denmark is planning to introduce a ban on social media for children under the age of 15, which France has also sought to do.
raz/ec/rlp

pollution

Carmakers face massive UK dieselgate lawsuit

BY ALEXANDRA BACON

  • It caused waves in the global car industry, ensnaring several other top carmakers and leading to legal action in several countries.
  • Five major car manufacturers go on trial at London's High Court on Monday in the latest chapter of the dieselgate emissions scandal that has rocked the global car industry for a decade.
  • It caused waves in the global car industry, ensnaring several other top carmakers and leading to legal action in several countries.
Five major car manufacturers go on trial at London's High Court on Monday in the latest chapter of the dieselgate emissions scandal that has rocked the global car industry for a decade.
The High Court will decide whether systems installed in Mercedes, Ford, Peugeot-Citroen, Renault and Nissan diesel vehicles were designed to cheat clean air laws.
The five lead defendants deny the accusations.
The huge trial will have ramifications for other manufacturers, potentially paving the way for "billions of pounds" in compensation, said Martyn Day, a lawyer at the firm Leigh Day, representing the claimants.
The dieselgate scandal first erupted in September 2015, when German automaker Volkswagen was found to have cheated pollution tests by installing so-called defeat devices to reduce nitrogen oxide readings.
It caused waves in the global car industry, ensnaring several other top carmakers and leading to legal action in several countries.
The new trial, scheduled to last three months, comes after 1.6 million UK drivers brought complaints against the five lead defendants, as well as other manufacturers such as Jaguar Land Rover, Toyota, Vauxhall-Opel and BMW. 
"It's much wider than VW (Volkswagen), it's for nearly all the manufacturers in this country," Day told AFP. 
Although not all the carmakers are directly part of the trial, they could still be required to pay compensation depending on the judge's ruling.

UK compensation

Adam Kamenetzky, one of the claimants, bought a Mercedes SUV in 2018 on the belief that it was less polluting than other models. 
He told AFP that after he had "paid a premium for what was supposed to be a green SUV, it turned out to be an absolute lie".
But for claimants like Kamenetzky, it will take some time for any possible compensation to reach them.
The trial beginning on Monday must first determine whether carmakers are liable, before a separate compensation phase can follow next year. 
German automaker Mercedes told AFP that emissions control software was based on technical needs, not an attempt to cheat regulatory tests. 
These mechanisms were "justifiable from a technical and legal standpoint", a spokesperson said.
Mercedes and US carmaker Ford both rejected the claims as having "no merit", while Japan's Nissan declined to comment.
French manufacturers Renault and Stellantis, parent of Peugeot and Citroen, both said the vehicles they sold were compliant with regulations at the time.
The High Court in 2020 found that Volkswagen had used defeat devices in breach of European Union rules to pass emissions tests. 
Volkswagen settled a class action out of court, paying 193 million pounds ($259 million) to 91,000 British motorists. 
Overall to date, Volkswagen has had to pay more than 32 billion euros ($37 billion) in penalties over the scandal, mostly in the United States.
ajb/jkb/gv/rlp

education

Austria finds Microsoft 'illegally' tracked students: privacy campaign group

  • In a statement on Friday, Noyb announced that the regulator had issued a decision this week, which "finds that Microsoft 365 Education illegally tracks students and uses student data for Microsoft's own purposes".
  • Austria's data protection authority has determined that Microsoft "illegally" tracked students using its education software and must grant them access to their data, a privacy campaign group said Friday.
  • In a statement on Friday, Noyb announced that the regulator had issued a decision this week, which "finds that Microsoft 365 Education illegally tracks students and uses student data for Microsoft's own purposes".
Austria's data protection authority has determined that Microsoft "illegally" tracked students using its education software and must grant them access to their data, a privacy campaign group said Friday.
Austria-based privacy campaign group Noyb (None of Your Business) in 2024 lodged a complaint against the company, accusing its Microsoft 365 education software of violating EU data protection rights for children.
Noyb said that Microsoft 365 Education installed cookies that collect browser data and are used for advertising purposes, a practice likely affecting millions of students and teachers across Europe.
In a statement on Friday, Noyb announced that the regulator had issued a decision this week, which "finds that Microsoft 365 Education illegally tracks students and uses student data for Microsoft's own purposes".
Microsoft was ordered to provide users, including the complainant -- a minor represented by her father -- access to their personal data.
The Austrian data protection authority confirmed that it issued a decision on Wednesday but did not give any further details.
While not responding to requests by users for access to data related to its education software, Microsoft "tried to shift all responsibility to local schools" or other national institutions, Noyb said.
"The decision... highlights the lack of transparency with Microsoft 365 Education," Noyb data protection lawyer Felix Mikolasch said in the statement.
"It is almost impossible for schools to inform students, parents and teachers about what is happening with their data," he added.
Microsoft said in a statement sent to AFP that the company would review the decision and decide "on next steps in due course".
"Microsoft 365 for Education meets all required data protection standards, and institutions in the education sector can continue to use it in compliance with GDPR," it added, referring to the EU's landmark General Data Protection Regulation.
Noyb, founded by the online privacy activist Max Schrems, has launched several legal cases against technology giants, often prompting action from regulatory authorities over violations of the GDPR.
It has filed more than 800 complaints in various jurisdictions on behalf of internet users.
kym/jza/lth

tech

UK opens door to tougher regulation of Google search

BY ALEXANDRA BACON

  • Britain's CMA launched in January its investigation into Google's dominant position in the search engine market and its impacts on consumers and businesses.
  • Britain's competition watchdog on Friday paved the way for tougher regulation to tackle Google's dominance in online search, under new targeted measures focused on technology giants.
  • Britain's CMA launched in January its investigation into Google's dominant position in the search engine market and its impacts on consumers and businesses.
Britain's competition watchdog on Friday paved the way for tougher regulation to tackle Google's dominance in online search, under new targeted measures focused on technology giants.
The Competition and Markets Authority said it has designated Google with "strategic market status" (SMS), subjecting it to special requirements, in a final decision following a nine-month investigation.
"We have found that Google maintains a strategic position in the search and search advertising sector," Will Hayter, executive director for digital markets at the CMA, said in a statement.
A similar tech competition law from the European Union, the Digital Markets Act (DMA), carries the potential for hefty financial penalties. 
The CMA plans to launch a consultation this year to determine the rules to impose on the US tech giant.
Google warned the UK against "unduly onerous regulations" and urged it to learn from "negative results seen in other jurisdictions", referencing the EU's DMA. 
"Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth," said Oliver Bethell, Google's senior director for competition.

'Substantial' power

Google added Friday that unfavourable regulation could slow the launch of new product launches in the UK.
The company last month announced a £5-billion ($6.6-billion) investment in the UK over the next two years to help power the UK's AI drive. 
"The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services," Bethell said.
The regulator noted that Google's Gemini AI assistant was not included in the designation but would be kept under review. 
Its other AI-based search features will, however, be included in the new status.
Britain's CMA launched in January its investigation into Google's dominant position in the search engine market and its impacts on consumers and businesses.
It determined Friday that Google has "substantial and entrenched market power".
Google search engine accounts for more than 90 percent of online enquiries in the UK, according to the regulator. 
The CMA added that more than 200,000 businesses in the UK rely on Google search advertising to reach customers. 
"For businesses, effective competition in general search would help keep down the costs of search advertising, in turn leading to lower prices across the economy," the CMA said.
Google, along with Apple, also faces an investigation to determine whether it will be given SMS designation for dominance in the mobile device market.
ajb/bcp/lth

film

Comeback studio Warner takes 'victory lap' amid takeover rumors

BY ANDREW MARSZAL

  • - Takeover rumors - The sudden success has come at a nonetheless turbulent time for parent corporation Warner Bros Discovery, the product of a 2022 merger with Discovery.
  • In just six months, Warner Bros has gone from ailing Hollywood giant reportedly mulling a leadership change to the industry's hottest studio -- and the rumored target of a $70 billion takeover bid.
  • - Takeover rumors - The sudden success has come at a nonetheless turbulent time for parent corporation Warner Bros Discovery, the product of a 2022 merger with Discovery.
In just six months, Warner Bros has gone from ailing Hollywood giant reportedly mulling a leadership change to the industry's hottest studio -- and the rumored target of a $70 billion takeover bid.
With a string of box offices smashes like "Superman," "A Minecraft Movie" and "Sinners" -- plus the acclaimed "One Battle After Another" starring Leonardo DiCaprio -- Warner Bros Discovery's film division was the first studio to hit $4 billion at the box office this year.
It is a dramatic turnaround from as recently as March, when Warner was reeling from expensive flops like "Mickey 17" and its high-profile, roundly reviled "Joker" sequel.
"We're doing our part," movie studio co-head Michael De Luca said Thursday, in an interview at the Bloomberg Screentime summit in Los Angeles that trade press dubbed a "victory lap."
"When there is a good run at a studio, morale is high," he said.
Renowned cinephiles De Luca and fellow studio boss Pamela Abdy were pilfered from Warner's smaller rival MGM back in 2022.
By this spring, the pair were rumored to be on the way out, with CEO David Zaslav reportedly even taking meetings with potential successors.
This week, their contracts were renewed.
"We can't address the speculation and rumors and all that stuff," said Abdy. 
"All I can say is, David, Mike and I had the privilege of seeing all these movies early. We knew what we had with the filmmakers and with these stories and we couldn't wait for audiences to see them."

Horror hits

Having generally trailed rivals like Disney and Universal in recent years, Warner has had nine films that opened at the top of the box office charts this year -- more than any other studio.
That list included "Weapons," one of several breakout horror hits this year from Warner, at a time when the until-recently thriving genre has suffered disappointing returns at rival studios.
Other Warner horror hits included installments in two long-running franchises: "Final Destination" and "The Conjuring."
De Luca attributed the success to bringing in "fresh and innovative" ideas, like injecting more humor into the gory "Final Destination" universe.
"With franchises that are particularly long in the tooth, you really have to innovate within the genre," said De Luca.
He added: "None of them were phoned in. None of them were a bunch of executives in a room saying 'milk that franchise'.
"Audiences can tell when something is not prefabricated."

Takeover rumors

The sudden success has come at a nonetheless turbulent time for parent corporation Warner Bros Discovery, the product of a 2022 merger with Discovery.
In June, Zaslav announced the business was again splitting, separating its booming streaming and movie divisions from the dwindling television channels.
That has now been called into question by a potentially even bigger deal.
In what would be the latest and most startling game of Hollywood musical chairs, Warner has been targeted by Paramount -- recently acquired by the billionaire tech family of Oracle founder Larry Ellison, the world's second-richest man.
Larry's son David Ellison, the new Paramount CEO, on Thursday declined to comment on the rumored bid, but said "there are a lot of options out there that are actionable in the near future."
He also made the case for scaling up, in order to produce "more movies, more television series" for consumers.
"There's always going to be speculation in our business -- we're in a time of massive disruption," said Abdy.
"You can't focus on that."
amz/hg/sst

politics

US finalizes $20 bn economic lifeline for Argentina, buys pesos

  • IMF chief Kristalina Georgieva praised the US move in a post on X, saying her agency -- which agreed in April to a $20 billion loan to Buenos Aires -- was "fully aligned in support" of Argentina's "strong economic program."
  • US Treasury Secretary Scott Bessent said Thursday that Washington had bought Argentine pesos and finalized a $20 billion economic support program to help prop up the South American nation's faltering finances.
  • IMF chief Kristalina Georgieva praised the US move in a post on X, saying her agency -- which agreed in April to a $20 billion loan to Buenos Aires -- was "fully aligned in support" of Argentina's "strong economic program."
US Treasury Secretary Scott Bessent said Thursday that Washington had bought Argentine pesos and finalized a $20 billion economic support program to help prop up the South American nation's faltering finances.
Argentina's right-wing President Javier Milei, a close ally of Donald Trump, swiftly thanked the American leader for his "vision and powerful leadership" following the announcement.
Milei had been struggling with market turbulence after a defeat in Buenos Aires provincial elections seen as a bellwether for crucial mid-terms later this month.
"Argentina faces a moment of acute illiquidity," Bessent wrote on social media Thursday, adding that Washington was well-positioned to act quickly.
"To that end, today we directly purchased Argentine pesos," the Treasury chief said. "Additionally, we have finalized a $20 billion currency swap framework with Argentina's central bank."
Bessent stressed that the US Treasury is "prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets."
His comments on X came after four days of meetings with Argentina's Economy Minister Luis Caputo in Washington.
Bessent added that Trump and Milei are expected to meet next week, just weeks before the October 26 midterm votes in Argentina.
The US treasury secretary said he plans to see Caputo again next week on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington.
IMF chief Kristalina Georgieva praised the US move in a post on X, saying her agency -- which agreed in April to a $20 billion loan to Buenos Aires -- was "fully aligned in support" of Argentina's "strong economic program."

'Systemic importance'

The Trump administration's pledge to support Argentina has faced criticism, with Democratic lawmakers calling on Trump last month to halt his plan.
In a letter, they pointed to Argentina's recent decision to temporarily suspend soybean export taxes, a move that they said undercut US farmers -- who are already facing multiple challenges -- in the global market.
Bessent has previously defended the plans.
He told CNBC in early October that "as far as what the US is doing, just to be clear, we are giving them a swap line. We are not putting money into Argentina."
Bessent added Thursday that "the success of Argentina's reform agenda is of systemic importance" as well.
He said "a strong, stable Argentina which helps anchor a prosperous Western Hemisphere is in the strategic interest of the United States," arguing that its success should be a bipartisan priority.
At the start of the month, Bessent told CNBC that many governments in South America "moved from far-left to center-right. We did not support them, and then they took a hard lurch to the left."
At the time, he called Argentina a "beacon," adding that other countries could follow its lead.
In his statement to Trump and Bessent on X, Milei wrote Thursday that "as the closest of allies, we will make a hemisphere of economic freedom and prosperity."
bys/sst/des/sla

Global Edition

Silver price hits decades high as gold rush eases

  • Gold and silver are seen as safe haven investments in times of uncertainty.
  • The price of silver hit a multi-decade high on Thursday as investors kept flocking to safe havens amid geopolitical and economic uncertainty, while gold eased off a record run.
  • Gold and silver are seen as safe haven investments in times of uncertainty.
The price of silver hit a multi-decade high on Thursday as investors kept flocking to safe havens amid geopolitical and economic uncertainty, while gold eased off a record run.
Stock markets, meanwhile, were mixed as traders weighed a slew of issues: massive AI investments, corporate results, US interest rates, the US government shutdown, political turmoil in France and a Gaza ceasefire deal.
The price of silver topped $50 an ounce, attaining levels not seen since 1980, according to Bloomberg. The surge comes in the wake of sister safe-haven gold, which retreated after hitting a record above $4,000 an ounce on Wednesday.
"I think it's a catch-up effect," John Plassard, head of investment strategy at Cite Gestion Private Bank, told AFP.
He cited concerns about the US economy, prospects of more interest rate cuts by the Federal Reserve this year and worries about France's debt.
"What's also happening -- and this is what gave silver an extra boost -- is that we've started hearing talk of a shortage of silver," Plassard said, noting that the metal is used as an investment asset as well as for industries such as solar panels.
Gold and silver are seen as safe haven investments in times of uncertainty.
The dollar firmed against main rivals as it rebounds following a deep retreat for much of 2025.
The greenback's recovery is "being propelled by a dual engine: deteriorating conditions abroad and recalibrated expectations at home," said a note from Convera that pointed to political instability in France and "dovish pivots" in Japan.
On the equities front, major US indices retreated from records the prior session amid a dearth of economic data due to a government shutdown.
US stocks have been resilient despite Republicans and Democrats appearing no closer to reaching a deal to reopen the government over a week into the shutdown.
"Even the most bullish markets take a break sometimes," said Steve Sosnick of Interactive Brokers.
Investors are turning their attention towards company results.
Shares in soft drink and snacks giant PepsiCo jumped 4.2 percent after reporting a third-quarter sales increase that beat expectations.
Shares in Delta also climbed more than four percent after the airline posted strong profits and offered a bullish outlook on travel demand.
But Boeing slid 4.1 percent following a Reuters report that Turkish Airlines could switch to Airbus for a recent plane order because of concerns about economic terms with engine supplier CFM International.
The Paris stock market dipped as French President Emmanuel Macron races to find a new prime minister after the resignation of Sebastien Lecornu tipped the country deeper into political crisis.
The Frankfurt DAX set a new record high.
Ferrari had its worst slump since entering the Milan stock market in 2016, falling almost 15 percent at one point as an update to its 2030 financial guidance disappointed investors.
In Asia, the Tokyo stock market closed up 1.8 percent after business-friendly Sanae Takaichi recently became leader of Japan's ruling party.

Key figures at around 2010 GMT

New York - Dow: DOWN 0.5 percent at 46,358.42 (close)
New York - S&P 500: DOWN 0.3 percent at 6,735.11 (close)
New York - Nasdaq Composite: DOWN 0.1 percent at 23,024.63 (close)
London - FTSE 100: DOWN 0.4 percent at 9,509.40 (close)
Paris - CAC 40: DOWN 0.2 percent at 8,041.36 (close)
Frankfurt - DAX: UP 0.1 percent at 24,611.25 (close)
Tokyo - Nikkei 225: UP 1.8 percent at 48,580.44 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 26,752.59 (close)
Shanghai - Composite: UP 1.3 percent at 3,933.97 (close)
Euro/dollar: DOWN at $1.1558 from $1.1628 on Wednesday
Pound/dollar: DOWN at $1.3294 from $1.3404
Dollar/yen: UP at 153.14 yen from 152.69 yen
Euro/pound: UP at 86.94 pence from 86.77 pence
Brent North Sea Crude: DOWN 1.6 percent at $65.22 per barrel
West Texas Intermediate: DOWN 1.7 percent at $61.51 per barrel
bur-jmb/des

e-commerce

Shein's Paris store kicks up a storm in France

BY AURéLIE CARABIN

  • The company also plans to open shops at Galeries Lafayette department stores in the cities of Dijon, Reims, Grenoble, Angers and Limoges.
  • Asian e-commerce giant Shein's decision to set up shop in a historic Parisian department store has ruffled feathers in the fashion capital.
  • The company also plans to open shops at Galeries Lafayette department stores in the cities of Dijon, Reims, Grenoble, Angers and Limoges.
Asian e-commerce giant Shein's decision to set up shop in a historic Parisian department store has ruffled feathers in the fashion capital.
Anger has been boiling since Shein announced last week that it would open its first permanent physical store in November at BHV Marais, an iconic building that has stood across from Paris City Hall since 1856.
The move prompted some French brands to announce they would leave BHV Marais, but the department store had already been losing tenants over late payments.
Aime cosmetics line co-founder Mathilde Lacombe, whose brand was among those that decided to leave following Shein's announcement, said she was "deeply shocked" by the deal.
BHV trade unions also led calls on Friday for strike action to protest Shein's arrival, warning of a "short-term threat to the survival of the department store."
Critics fear that Shein -- whose meteoric rise has been a bane for traditional retail fashion companies -- will further hurt stores in France that have had to lay off staff or close.
Founded in China and now based in Singapore, the fast-fashion giant sells a wide variety of products at ultra-competitive prices.
But it has also been under global scrutiny over its business model's impact on the environment and labour conditions at its textile factories.
"Opposite the Paris Mayor's office, they will create a new Shein Megastore that -- after having destroyed dozens of French brands -- could flood our market even more massively with disposable products," said the trade association for French ready-to-wear women's clothing companies, the FFPAPF.
The European Commission is investigating Shein over risks linked to illegal products, while EU lawmakers last month approved legislation aimed at curbing fast fashion's environmental impact.
"Shein's arrival goes against our convictions," former French environmental transition minister Christophe Bechu told AFP.

'Honouring' the fashion capital

Shein has spun its entry into physical retail in France as a homage to the country and its central place in fashion.
"By choosing France as the place to trial physical retail, we are honouring its position as a key fashion capital and embracing its spirit of creativity and excellence," said Donald Tang, Shein's executive chairman.
"It is fitting that this journey starts in Paris, at BHV -- the birthplace of modern retail," he added.
The company also plans to open shops at Galeries Lafayette department stores in the cities of Dijon, Reims, Grenoble, Angers and Limoges.
BHV Marais and the five Galeries Lafayette locations are operated by retail property group Societe des Grands Magasins (SGM).
SGM is seeking to buy the BHV Marais building from Galeries Lafayette, but the state-owned bank it hoped would help finance the purchase decided to pull out over the Shein partnership.
"The Bank of Territories learned about this partnership through the press, without any prior notification, resulting in a breakdown of trust between the two parties," it said in a statement.
SGM denounced "political pressure" behind the move but insisted it could still carry out its purchase of the building.
Galeries Lafayette also voiced its opposition to Shein boutiques opening in the five locations bearing its name, although it no longer operates those locations.
"Galeries Lafayette expresses its profound disagreement with this decision in light of the positioning and practices of this ultra-fast-fashion brand that are in contradiction to its own offering and values," it said in a statement following the announcement.

Exodus

SGM already had a number of luxury brands quit BHV Marais over payment delays prior to Shein's arrival.
SGM said the multi-million-euro payment delays are temporary, blaming the rollout of a new automated accounting system, and denied any cash flow problems, noting BHV returned to profitability in 2024.
Still, the effects are visible in empty shelves and sparse aisles at BHV, which directly employs 750 people, particularly in DIY and stationery departments.
French underwear firm Slip Francais said it had to launch legal proceedings against SGM over the delays in transferring revenues from sales made at BHV.
"It's a partner in which we no longer have confidence," Slip Francais founder Guillaume Gibault told AFP.
The Shein deal "only confirmed that we had taken the right decision" to leave BHV Marais, he added.
ac/rl/lth/rh/gv

conflict

Serbia faces 'extremely serious' impacts as sanctions hit oil firm

  • President Aleksandar Vucic warned of "extremely serious consequences for our entire nation" in a television address on Thursday.
  • Serbia's president warned that US sanctions on the Russian-controlled operator of the Balkan nation's only oil refinery that took effect on Thursday put it in an "extremely serious" position.
  • President Aleksandar Vucic warned of "extremely serious consequences for our entire nation" in a television address on Thursday.
Serbia's president warned that US sanctions on the Russian-controlled operator of the Balkan nation's only oil refinery that took effect on Thursday put it in an "extremely serious" position.
The sanctions targeting Petroleum Industry of Serbia (NIS) were delayed multiple times after being first announced in January as part of its crackdown on the Russia's energy sector following Moscow's 2022 invasion of Ukraine.
President Aleksandar Vucic warned of "extremely serious consequences for our entire nation" in a television address on Thursday.
"This is bad news for our country, though expected," Vucic said hours after the sanctions took effect on the company that supplies more than 80 percent of Serbia's diesel and petrol.
Croatian pipeline operator Janaf, which supplies oil to NIS, said it would cease sending crude oil to Serbia.
But Vucic said the country had a large enough stockpile of crude oil for the refinery to operate until November 1.
Meanwhile, vehicle fuel supplies should last through the end of the year.
Vucic confirmed that talks on the company's future are ongoing with US and Russian partners.

'Era of jerry cans'

NIS, in which the oil subsidiary of Russian gas giant Gazprom has a controlling stake, has warned its customers that Mastercard and Visa payment cards may stop functioning at its petrol stations due to the sanctions. 
Customers may soon only be able to fill up with cards using a Serbian payment network or pay cash.
The company's central station in Belgrade was quiet on Thursday, as the head of its consumer arm told the state broadcaster there was no need for motorists to panic-buy.
"Our sales are operating as normal. There are no restrictions when it comes to the quantities customers can purchase," NIS Retail Director Bojana Radojevic said.
But Belgrade residents told AFP they were worried.
"Even if there are reserves, those reserves cannot last forever," 75-year-old Belgrade resident Rodoljub Golubovic said.
For Zoran Markovic, 48, the new measures brought back memories of the sanctions and isolation of the 1990s in war-torn Yugoslavia.
"It was the era of jerry cans and everything that went with it," he said. "It's not fair."

Solutions

Belgrade-based economist Goran Radosavljevic said sanctions could impact sectors ranging from finance to agriculture and affect jet fuel supply.
Energy consultant Velimir Gavrilovic said the Janaf's cutoff could mean an increase in oil transportation costs or more reliance on imported refined oil products.
A potential solution — a complete exit of Russian investors from the company — is very unlikely, Radosavljevic said.
"Russia does not want to sell its shares," Radosavljevic added, noting that although NIS represents "only a small portion of Gazprom's revenue, its political importance is huge."
But Gavrilovic suggested a "partial sale of Russian-held shares, reducing their stake in NIS to a non-controlling level," could offer a way out.
Vucic has ruled out nationalising the company, a proposal floated by some commentators.
He also rebuffed comments from Croatia's economics minister about being interested in buying the firm.
Despite Western pressure, Serbia has maintained close ties with Moscow and refused to impose sanctions, even as it pursues European Union membership.
The country remains heavily dependent on Russian gas, with its 2022 supply contract set to expire soon amid ongoing talks for a new deal.
Currently, NIS is 45 percent owned by Russia's Gazprom Neft.
Its parent company, Gazprom, transferred its remaining 11 percent stake last month to Intelligence, a St Petersburg-based firm also linked to the Russian energy giant.
The Serbian state holds nearly 30 percent, with the rest owned by minority shareholders.
cbo-oz/al/rl

trade

EU woos developing nations at investment forum

  • "Tariffs and trade barriers are back as a tool of geopolitics and geoeconomics," von der Leyen told the Global Gateway Forum, an implicit reference to US and Chinese policies.
  • European Union chief Ursula von der Leyen pitched the bloc as a dependable partner in a transactional world Thursday as she hosted about a dozen Global South leaders at an investment conference in Brussels.
  • "Tariffs and trade barriers are back as a tool of geopolitics and geoeconomics," von der Leyen told the Global Gateway Forum, an implicit reference to US and Chinese policies.
European Union chief Ursula von der Leyen pitched the bloc as a dependable partner in a transactional world Thursday as she hosted about a dozen Global South leaders at an investment conference in Brussels.
Rwanda's Paul Kagame and Angola's Joao Lourenco were among those attending the opening of a two-day event aimed at bolstering a global infrastructure plan that Brussels hopes can counter China's global growing influence.
"Tariffs and trade barriers are back as a tool of geopolitics and geoeconomics," von der Leyen told the Global Gateway Forum, an implicit reference to US and Chinese policies.
"Export controls have become a tool of statecraft, to damage competitors and extract concessions. Dependencies are weaponised," she said.
"The way forward is through partnerships. Partnerships based on common interests and respect for sovereignty. That is what unites us here today. That is Europe's approach," added the EU chief.
"Like you, we recognise that our strength relies in diversifying our relationships". 
Global Gateway, the EU's external investment strategy, has mobilised more than 306 billion euro ($355 billion) since its launch in 2021 for projects in areas including clean energy, transport, and research -- reaching its 2027 target early, she said. 
Brussels now aimed to mobilise over 400 billion euros by 2027, added the European Commission president.  
Von der Leyen also announced 618 million euros in additional funding from the EU and its 27 member states to accelerate Africa's clean energy transition.
The money would go towards projects including a green electricity system in Kenya and wind generation in Cabo Verde, the commission said. 
"Just as I walked in, I could smell money," South Africa's President Cyril Ramaphosa quipped in his opening speech, noting more than 150 European companies were represented at the event.
Proponents say the initiative fosters European interests and influence while creating jobs and boosting green development abroad.
But critics retort that it sometimes repeats extractive colonial practices, treating local communities as an afterthought.
They also warn that the use of loans risks saddling nations already struggling to pay off creditors with still more debt.
"It is deeply problematic," said Frank Vanaerschot, director of Counter Balance, a coalition of NGOs scrutinising public finance institutions. 
"It uses the development budget, but is increasingly prioritising EU companies and geopolitical interests over climate and energy projects which prioritise local climate action and strong social and economic benefits."
Among the investments showcased at the forum was the Lobito corridor, a railway project connecting mineral rich-areas of the Democratic Republic of Congo and Zambia to the Atlantic coast, as well as plans for submarine communication cables running across the Mediterranean.
ub/ec/gv

economy

At German auto crisis meet, Merz vows to fight EU gas guzzler ban

BY CLEMENT KASSER WITH SAM REEVES IN FRANKFURT

  • After holding talks with auto industry leaders, Merz vowed to fight against an abrupt total ban from 2035 of sales of new fossil fuel-burning cars. 
  • Chancellor Friedrich Merz vowed Thursday to do everything in his power to fight EU plans to ban combustion-engine car sales from 2035 after crisis talks with the struggling German car industry. 
  • After holding talks with auto industry leaders, Merz vowed to fight against an abrupt total ban from 2035 of sales of new fossil fuel-burning cars. 
Chancellor Friedrich Merz vowed Thursday to do everything in his power to fight EU plans to ban combustion-engine car sales from 2035 after crisis talks with the struggling German car industry. 
The flagship auto sector in Europe's biggest economy is mired in crisis as it faces weak demand, a choppy transition to electric vehicles (EVs), and fierce Chinese competition.
Manufacturers fear the looming EU ban will deal them another blow, complaining they have not had enough time to build up competitive EV offerings while demand for battery-powered cars is moving far more slowly than expected in Europe.
After holding talks with auto industry leaders, Merz vowed to fight against an abrupt total ban from 2035 of sales of new fossil fuel-burning cars. 
"I will do everything in my power to ensure that this does not happen," he told a press conference.
He stressed that "the path to electromobility had been opened", and Germany was committed to pursuing it and meeting climate goals, but that "flexibility" was needed. 
At an EU summit later this month, Merz said he would advocate "technological advancement towards climate neutrality, but not with a date on the calendar that we cannot meet, that is unrealistic."
Under pressure from Europe's carmakers, the EU had already agreed last month to fast-track a review of the ban.
Volkswagen CEO Oliver Blume, who was at the talks, echoed Merz's views. 
Europe's biggest carmaker was committed to the shift to EVs, he said, but added: "We will need more time for this."
"All political forecasts about the ramp-up were too optimistic."

Coalition tensions

Merz's vocal calls to scrap the 2035 ban have fuelled tensions between his centre-right CDU party and his junior coalition partners, with some senior figures in the centre-left SPD having insisted Berlin should continue backing the policy.
But signs are growing the two sides are reaching a common stance. 
Speaking alongside Merz, Finance Minister Lars Klingbeil of the SPD also called for "flexibility" in the shift to more climate-friendly vehicles.
During talks late Wednesday, senior members of the ruling coalition had discussed technologies such as plug-in hybrids and allowing cars to run on alternative fuels, he said. 
His comments suggested Berlin may propose watering down the ban by allowing the continued use of such alternatives after 2035.
Hildegard Mueller, president of Germany's VDA auto industry association, said it was a "positive sign" the coalition supported such technologies. 
"We need timely decisions and a united German voice in Brussels," she said. 
As well as slow take-up from consumers for EVs, the auto industry complains that charging infrastructure is sparse and charging prices too expensive.
Attempts to water down the ban have alarmed environmental campaigners.
Christoph Bautz of activist group Campact said efforts to ease the ban were "disastrous and will harm the climate, industry, and jobs". 
"Instead of setting clear guidelines for the industry towards electrification, the chancellor wants to return to the zigzag course of the past, which manoeuvered German car manufacturers into the current crisis."
If Berlin seeks to soften the ban, it will still need to win backing from other EU members.
There are signs Germany has some support, with reports this week saying Rome and Berlin sent a joint letter to the European Commission urging a change of course on the ban.
The German government is also taking other steps to help the beleaguered auto sector. 
Earlier Thursday, Merz said the government would provide three billion euros ($3.5 billion) in incentives for EV purchases, which would be aimed at low- and middle-income households.
The auto sector's crisis reflects broader problems for the Germany economy, which has faced two years of recession due to a manufacturing slump and weak demand for its exports. 
In the latest sign of weakness, data released Thursday showed that German exports unexpectedly dropped in August, pulled down by another fall in shipments to the United States as the tariff blitz takes its toll.
bur-sr/fz/gv

autos

Ferrari goes electric with four-seat coupe but shares get shocked

  • Shares of Ferrari fell by as much as 16 percent Thursday on the Milan stock market, as the luxury carmaker spelled out profit and revenue expectations for 2030 that disappointed investors.
  • Ferrari will begin its cautious shift to electric vehicles in 2026 with its first battery-powered four-seat coupe, but shares plummeted Thursday over a long-term profit outlook that fell short. 
  • Shares of Ferrari fell by as much as 16 percent Thursday on the Milan stock market, as the luxury carmaker spelled out profit and revenue expectations for 2030 that disappointed investors.
Ferrari will begin its cautious shift to electric vehicles in 2026 with its first battery-powered four-seat coupe, but shares plummeted Thursday over a long-term profit outlook that fell short. 
Shares of Ferrari fell by as much as 16 percent Thursday on the Milan stock market, as the luxury carmaker spelled out profit and revenue expectations for 2030 that disappointed investors.
The luxury brand with the prancing horse logo presented details of its first electric sports car, to be released next year, during a presentation to investors and media at its Maranello factory, even while revealing it would scale back its electrification plans.
The four-seat coupe, "Elettrica," will offer over 1,000 horsepower and have a range of 530 kilometres (329 miles). 
Ferrari -- which sold fewer than 14,000 cars last year -- "must manage scarcity" to succeed, Ferrari CEO Benedetto Vigna told investors.
With rising prices, many different models, and a waiting list ideally ranging from 20 to 24 months, "we have to be sure that there aren't too many cars on the road," he said. 
Although Ferrari slightly boosted its 2025 guidance for revenue, margins and adjusted earnings per share, investors were disappointed by a longer-term outlook. 
Ferrari predicted revenue to grow by five percent per year to reach 9.0 billion euros in 2030, with an adjusted operating profit of 2.75 billion euros. 
RBC Capital Markets analyst Tom Narayan wrote in a note that Ferrari's forecasts were below analysts' expectations, while investors "are likely to interpret a downshift in EBIT growth (earnings before interest and taxes) from prior history".

Caution in slowdown

No price for the Elettrica was disclosed, but analysts say Ferrari will need to carefully position it in relation to the nearly 500,000 euros ($580,500) base price of its Purosangue SUV.
Ferrari already sells nearly half of its cars in hybrid versions, but until now has not made the shift to electric, which comes several years after Porsche, Lamborghini, Lotus, and the very fast Rimac.
Reflecting the current slowdown in the automotive industry's transition to electric, Ferrari's shift will be even more cautious than had been expected. 
Electric models will account for only 20 percent of Ferrari's offering in 2030, compared with the 40 percent announced previously, with combustion engine models continuing to dominate.

Amplified sound

Ferrari's management unveiled the car's architecture on Wednesday evening, with a very low driving position in a recycled aluminium chassis with a large motor on each of the four wheels.
As expected, the Elettrica promises to be fast, going from zero to 100 kilometres per hour in 2.5 seconds with a maximum speed of 310 km/h.
The classic Ferrari shift paddles on the steering wheel will be used on the Elettrica to opt between a smooth or sporty driving style, modulating the power of the motors and the suspension control.
In a homage to large gasoline engines, the Elettrica offers a simulated downshift, while the purr of the traditional engines will be replaced with an amplified sound from the electric motor to signal information about the feel of the road to the driver, said Gianmaria Fulgenzi, Ferrari's product director.
"It's like choosing between a sailboat and a motorboat: both are exciting but in different ways," he said.
The brand has taken on the costly development of most of the technical innovations, particularly the integrated battery pack -- one of the only components it will not manufacture itself -- "because keeping that expert knowledge in-house means we can stay competitive", he said.
The Elettrica is equipped with a huge 122 kWh battery, bringing its weight to 2.3 tonnes -- the heaviest Ferrari ever built.
tsz/ams/ide/rl

climate

Danish wind giant Orsted to cut workforce by a quarter

  • The company said it needed to focus more on its European business and offshore wind, as well as improve its competitiveness.
  • Danish offshore wind energy giant Orsted announced Thursday plans to cut 2,000 jobs, or a quarter of its workforce, by 2027 as its business struggles in the United States.
  • The company said it needed to focus more on its European business and offshore wind, as well as improve its competitiveness.
Danish offshore wind energy giant Orsted announced Thursday plans to cut 2,000 jobs, or a quarter of its workforce, by 2027 as its business struggles in the United States.
The company said it needed to focus more on its European business and offshore wind, as well as improve its competitiveness.
"We're committed to maintaining our position as a market leader in offshore wind, and we need to ensure that offshore wind becomes a key element of Europe's future energy mix and green transition," chief executive Rasmus Errboe said in a statement.
"Therefore, we also need to reduce our costs for developing, constructing, and operating offshore wind farms to strengthen our competitiveness," he added.
The company said its global workforce would fall from 8,000 today to 6,000 by the end of 2027 "through natural attrition, a reduction of positions, divestment, outsourcing, and redundancies."
Orsted said Monday it had raised $9.4 billion in a rights issue aimed at bolstering the struggling company amid US President Donald Trump's opposition to the wind power sector.
cbw/lth/rh

food

Michelin Guide gets an appetite beyond restaurants

BY ADAM PLOWRIGHT

  • Poullennec also announced Wednesday that the guide would begin doing reviews for wine, by either building on or re-branding its US-based wine magazine Robert Parker Wine Advocate.
  • France's famed Michelin Guide, a reference for fine dining for more than a century, is expanding into hotel and wine recommendations as it aims to become a global lifestyle brand.
  • Poullennec also announced Wednesday that the guide would begin doing reviews for wine, by either building on or re-branding its US-based wine magazine Robert Parker Wine Advocate.
France's famed Michelin Guide, a reference for fine dining for more than a century, is expanding into hotel and wine recommendations as it aims to become a global lifestyle brand.
The offshoot of the French tyre-making company has a loyal following among foodies but faces a battle for attention with other travel guides, review sites such as TripAdvisor, as well as a galaxy of online food influencers.
Staying relevant has led it to look beyond its historic role of sending inspectors anonymously into restaurants and then attributing stars to a handful of high-end eateries. 
Having gradually increased the number of territories covered by its food guides -- 69 at last count -- it is now pushing hard into the hotel sector with a new global listing system recommending top-rated resorts and properties.
"We have always maintained a strong foothold in the hotel industry," Guide boss Gwendal Poullennec told an awards ceremony attended by hoteliers from across the world in Paris on Wednesday night.
Instead of stars, hotels are given "keys", on a scale of one to three, based on criteria such as service, style and character.
Poullennec also announced Wednesday that the guide would begin doing reviews for wine, by either building on or re-branding its US-based wine magazine Robert Parker Wine Advocate.
"The Michelin Guide can be regarded today as a global media," he told reporters earlier.
- Credibility question - 
Funding its costly network of inspectors, who pay their own bills at the company's expense, has always been an issue.
When Poullennec joined more than 20 years ago, it was loss-making and depended on physical sales of its famous red-coloured guides, mostly in western Europe. 
Nowadays it has around nine million unique visitors per month to its website and free phone apps, with around half coming from the United States. 
Monetising those eyeballs has led to online reservation services being offered, with a commission of 10-15 percent paid for each booking.
But the group is also taking money from tourism ministries and public bodies in return for publishing guides, raising questions about its impartiality.
It has such partnerships with dozens of countries and local authorities, most recently Saudi Arabia where the culture ministry has funded a guide that will appear for the first time in October.  
Yiting Deng, an academic at the University College London School of Management, who has studied the impact of Michelin stars, said the guide faces a balancing act with its tie-ups and partnerships.
"If they work too much with governments, travel agencies and other related parties, there will be this question about credibility and how much their decisions are influenced by other parties," she told AFP.
Poullennec counters that the guide keeps its inspectors and commercial teams strictly separate and only reviews destinations once it judges them to be sufficiently developed. 
- Busy space - 
The focus on hotels is a return to the origins of the guide which was first published in 1900 by Michelin founders Andre and Edouard Michelin who wanted to encourage drivers to take to the roads -- and burn through their tyres. 
"When the Michelin Guide was born in 1900, there were more hotel listings than restaurants," Poullennec said.
Nowadays the industry is awash with competing awards and guides, though none have Michelin's anonymous inspectors.
Conde Nast, Forbes or Travel + Leisure offer gongs, there are influential lists such as The World's 50 Best Hotels, while American Express curates a selection of luxury destinations for its users which is influential among American travellers. 
Alvaro Zarzoso, an academic who studied Michelin stars at the University of Seville in Spain, said the guide is still a crucial tastemaker.
In the internet age, its role "has shifted from solitary gatekeeper to anchor signal inside a network where media exposure and online reviews amplify, rather than replace, its certification," he told AFP.  
"Expanding into hotels makes strategic sense," he said.
adp-sr/fg

rights

Afghan mobile access to Facebook, Instagram intentionally restricted: watchdog

BY QUBAD WALI

  • Social media sites have been intermittently accessible on smartphones in provinces across the country since Tuesday, AFP journalists reported, while internet speed is significantly slower than normal.  
  • Access to several social media sites, including Facebook, Instagram and Snapchat, has been "intentionally restricted" in Afghanistan, an internet watchdog said Wednesday, a week after a 48-hour telecommunications blackout in the country.
  • Social media sites have been intermittently accessible on smartphones in provinces across the country since Tuesday, AFP journalists reported, while internet speed is significantly slower than normal.  
Access to several social media sites, including Facebook, Instagram and Snapchat, has been "intentionally restricted" in Afghanistan, an internet watchdog said Wednesday, a week after a 48-hour telecommunications blackout in the country.
Social media sites have been intermittently accessible on smartphones in provinces across the country since Tuesday, AFP journalists reported, while internet speed is significantly slower than normal.  
"The restrictions are now confirmed on multiple providers, the pattern shows an intentional restriction," said NetBlocks, a watchdog organisation that monitors cybersecurity and internet governance.
The disruption is "primarily impacting mobile with some fix-lines also affected".
The Taliban government has not responded to requests for comment from AFP. 
Confusion gripped Afghanistan last Monday when mobile phone service and the internet went down without warning, freezing businesses and cutting people off from the rest of the world.
The massive blackout came weeks after the government began cutting high-speed internet connections to some provinces to prevent "immorality", on the orders of shadowy supreme leader Hibatullah Akhundzada.
At the time, Netblocks said the blackout "appears consistent with the intentional disconnection of service", adding that connection slowed to around one percent of ordinary levels.
It is the first time since the Taliban government won their insurgency in 2021 and imposed a strict version of Islamic law that communications have been cut in the country.
The government has yet to comment on the blackout. 
For Afghan girls and women in particular, the internet is a lifeline in a country where they are banned from secondary schools, universities, gyms, parks and most work. 
"I would feel really sad if they banned Instagram or other social media because it's the only way I can connect with the world," said 24-year-old Ghezal, who asked for only her first name to be used.
"These social media platforms are the main way I stay connected with my friends who live in other countries."
At the beginning of 2025, 13.2 million people had access to the internet in Afghanistan -- around 30.5 percent of the population, according to the specialist website DataReportal.
Around 4.05 million people were using social media.
qb-jma-ash/ecl/lb

diplomacy

British PM Starmer hails India opportunities after trade deal

BY ANUJ SRIVAS

  • The two-day visit comes after the countries signed a major trade accord in London in July.
  • British Prime Minister Keir Starmer touted "unparalleled" opportunities opening up in India as he made his inaugural visit to the country on Wednesday, seeking to promote a trade deal signed this summer.
  • The two-day visit comes after the countries signed a major trade accord in London in July.
British Prime Minister Keir Starmer touted "unparalleled" opportunities opening up in India as he made his inaugural visit to the country on Wednesday, seeking to promote a trade deal signed this summer.
Indian Prime Minister Narendra Modi welcomed Starmer and what he called "the largest ever trade delegation from the UK", saying in a statement that he hoped to bolster their "shared vision of a stronger, mutually prosperous future".
The two-day visit comes after the countries signed a major trade accord in London in July.
"With India set to be the third-biggest economy in the world by 2028, and trade with them about to become quicker and cheaper, the opportunities waiting to be seized are unparalleled," Starmer said.
India and its former colonial ruler are the world's fifth- and sixth-largest economies, with bilateral trade worth around $54.8 billion and investments supporting more than 600,000 jobs across both countries.
Starmer, whose 125-member delegation includes business leaders like British Airways chief executive Sean Doyle, called the recent trade deal the "biggest" India had ever struck.
"I've asked the team to implement it as quickly as humanly possible... but I think it's already changing the mood music, frankly," he told the delegation.
"I think the opportunities are already opening up, the contact has already increased, trade with India went up hugely in the last 12 months, and climbing."

Bollywood blockbusters

Under the new deal, India will slash tariffs on imports of British goods such as whisky, cosmetics and medical devices, while Britain will reduce duties on clothing, footwear and food products, including frozen prawns from India.
Starmer also said three new Bollywood blockbusters will be made in the UK from next year as he wrapped up his visit to the famed Yash Raj Film studio.
"Bollywood is back in Britain, and it's bringing jobs, investment and opportunity, all while showcasing the UK as a world-class destination for global filmmaking," he said.
Starmer also visited a new Premier League community programme where he met aspiring young Indian footballers and coaches.
The Premier League is one of the UK's most successful cultural exports, and generates $13 billion of value to the economy, supporting over 100,000 jobs.
More football fans in India now watch the Premier League (71 million) than the entire population of the UK.
"I'm hugely proud of our national sport -- it brings communities together and changes lives," he said.
However, Starmer ruled out expanding visa access for Indian professionals despite pressure.
"That isn't part of the plan," he told reporters en route to Mumbai.
"We're here now to take advantage of the free trade agreement that we've already struck. We've got to implement it."
Rights groups have urged Starmer to raise the case of Scottish Sikh blogger Jagtar Singh Johal, detained in India since 2017 over an alleged plot to kill right-wing Hindu leaders.
He has not been convicted, and one of the nine charges against him was dismissed in March.
Starmer is due to meet Modi on Thursday, and to address a fintech conference in Mumbai alongside him.
sai-asv/abh/lb

conflict

US sanctions hit Serbia's oil firm

  • Its parent company, Gazprom, transferred its 11-percent stake last month to Intelligence, a Saint Petersburg-based firm also linked to the Russian energy giant.
  • US sanctions on Serbia's majority-Russian-owned NIS oil company, which operates the country's sole refinery, took effect on Thursday after months of delay.
  • Its parent company, Gazprom, transferred its 11-percent stake last month to Intelligence, a Saint Petersburg-based firm also linked to the Russian energy giant.
US sanctions on Serbia's majority-Russian-owned NIS oil company, which operates the country's sole refinery, took effect on Thursday after months of delay.
The United States sanctioned the company, Petroleum Industry of Serbia (NIS), in January as part of its crackdown on the Russian energy sector following Moscow's invasion of Ukraine in 2022.
After the sanctions came into force Thursday morning, NIS said it "had not yet been granted an extension of the special licence from the United States Department of the Treasury".
"NIS is working to overcome this situation," it said in a statement, adding it would work with the US Treasury to seek its removal from the sanctions list.
The company said it has "sufficient crude oil reserves for processing at this time, while petrol stations are fully supplied with all types of petroleum products".
President Aleksandar Vucic warned on Monday that the sanctions would have a serious impact and hit the banking sector first.
"There is no bank in the world that would risk violating US sanctions," Vucic said.
NIS confirmed it expects foreign payment cards to "cease functioning", with petrol stations accepting only Serbia's domestic card or cash.

'Operating as normal'

A central NIS station in Belgrade was quiet on Thursday, as the head of the company's consumer arm told the state broadcaster that there was no need for motorists to panic buy.
"Our sales are operating as normal. There are no restrictions when it comes to the quantities customers can purchase," NIS Retail Director Bojana Radojevic said.
Croatian pipeline operator Janaf, which supplies oil to NIS, said it could take an 18-million-euro ($21 million) hit this year.
"The expectation that the US will lift the sanctions is irrelevant. They (NIS) put themselves in such a position, and they have to resolve it," Janaf chairman Stjepan Adanic told Croatian broadcaster HRT.
Vucic said earlier that talks were underway on the company's future, including the possible divestment of Russian shareholders.
With NIS supplying over 80 percent of Serbia's diesel and petrol, the effects could be widespread, Belgrade-based economist Goran Radosavljevic told AFP.
He warned that the sanctions could impact sectors ranging from finance to agriculture and affect Air Serbia's jet fuel supply.
"The financial sector will have to stop working with NIS –- halt all transactions and cooperation immediately -– to avoid being considered a bank dealing with a sanctioned entity," he said.
He said a potential solution -- a complete exit of the Russian holding from the company -- was unlikely. 
"Russia does not want to sell its shares," Radosavljevic said, adding that although NIS represents "only a small portion of Gazprom's revenue, its political importance is huge".
Despite Western pressure, Serbia has maintained close ties with Moscow and refused to impose sanctions, even as it pursues European Union membership.
It is heavily dependent on Russian gas. A supply contract signed in spring 2022 is expiring, and talks are underway for a new deal.
NIS is 45-percent owned by Russia's Gazprom Neft.
Its parent company, Gazprom, transferred its 11-percent stake last month to Intelligence, a Saint Petersburg-based firm also linked to the Russian energy giant.
The Serbian state owns nearly 30 percent and the remainder is held by minority shareholders.
cbo-oz/al/lth