energy

US, TotalEnergies reach 'nearly $1 bn' deal to end offshore wind projects

  • In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
  • The United States and TotalEnergies on Monday signed an agreement to end the French company's offshore US wind farm projects and redirect those funds towards fossil fuel production, with the US interior secretary saying the deal was worth "nearly $1 billion."
  • In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
The United States and TotalEnergies on Monday signed an agreement to end the French company's offshore US wind farm projects and redirect those funds towards fossil fuel production, with the US interior secretary saying the deal was worth "nearly $1 billion."
US Interior Secretary Doug Burgum made the announcement at the annual CERAWeek conference in Houston, at an event where he appeared alongside TotalEnergies CEO Patrick Pouyanne, after which both men signed the agreement.
"We're partnering with TotalEnergies to unleash nearly $1 billion that was tied up in a lease deposit that was directed towards the prior administration's subsidies that were pushing expensive weather-dependent offshore wind," said Burgum.
Pouyanne welcomed the deal, saying it redirected TotalEnergies's $928 million investment in two wind farm leases off the North Carolina and New York coasts into US natural gas projects, in particular the Rio Grande LNG plant.
French giant TotalEnergies had four gigawatts (GW) of offshore projects under development, including 3 GW for the New York Bight project and 1 GW in North Carolina.
But at the end of 2024, Pouyanne announced that they were "put on hold" due to the unlikelihood of obtaining federal licenses from the Trump administration.
Under former president Joe Biden, the United States had accelerated progress on wind farm construction as part of its fight against climate change.
US President Donald Trump, however, has reversed course on many of Biden's climate policies, taking particular aim at wind power.
Trump has long complained about the aesthetics of wind farms, and says they produce expensive electricity.
In December, the Trump administration put five wind power projects on hold, citing "national security" risks. 
That order was then nullified by rulings at several US federal courts, allowing work to resume.
In Houston on Monday, TotalEnergies CEO Pouyanne said offshore wind was "not the most affordable way to produce electricity" in the United States, which he identified as being natural gas-fired power plants.
"We could recycle all this money we are dedicating into, I would say US energy policy, and, for us, in I would say smarter investment. So it was a win-win dialog," he said.
According to a TotalEnergies statement, the company has also signed a letter of intent with Glenfarne, the lead developer of the Alaska LNG project, for the longterm offtake of 2 million tons per year of liquefied natural gas (LNG) over 20 years.
aha-ni-nal/mjf

US

Middle East war: global economic fallout

  • - China limits fuel prices - China has limited the amount by which the country's retail fuel costs can rise, the government announced Monday, as oil prices have surged due to the Middle East war.
  • Here are the latest economic events in the Middle East war: - Oil tumbles on peace hopes - Oil prices tumbled more than 10 percent on Monday after US President Donald Trump said the United States and Iran were holding "very good and productive" talks and that he would postpone threatened strikes on Iranian energy infrastructure as a result.
  • - China limits fuel prices - China has limited the amount by which the country's retail fuel costs can rise, the government announced Monday, as oil prices have surged due to the Middle East war.
Here are the latest economic events in the Middle East war:

Oil tumbles on peace hopes

Oil prices tumbled more than 10 percent on Monday after US President Donald Trump said the United States and Iran were holding "very good and productive" talks and that he would postpone threatened strikes on Iranian energy infrastructure as a result.
Oil prices had been higher earlier in the day after the US and Israel warned at the weekend that the war against Iran, which has disrupted oil deliveries through the Strait of Hormuz, would continue for several more weeks.
Stock markets rose following the announcement of the talks.

IEA chief issues warnings

International Energy Agency chief Fatih Birol warned on Monday that the global economy is under "major threat" from the energy crisis caused by the Middle East war, adding that "no country will be immune".
At least 40 energy assets across nine countries in the region were "severely" damaged due to the war, Birol added.

China limits fuel prices

China has limited the amount by which the country's retail fuel costs can rise, the government announced Monday, as oil prices have surged due to the Middle East war.
China's state planner, the National Development and Reform Commission (NDRC), said it hiked the maximum retail prices for gasoline and diesel by 1,160 yuan ($168) and 1,115 yuan per metric ton respectively, starting from midnight.

Sweden to cut fuel taxes

Sweden's government said Monday it was proposing to temporarily lower taxes on petrol and diesel to soften the blow of surging energy prices.
If passed by parliament, the proposed tax cut would go into force on May 1 and last until the end of September, and as a first step be lowered to the EU's minimum level.
"All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden's economy to the test," Prime Minister Ulf Kristersson told a press conference.

Indonesia eyes cutting fuel use

Indonesia is eyeing up measures to cushion Southeast Asia's largest economy from the fallout of the war in the Middle East, including steps to conserve fuel  such as one day of remote working per week for government and certain public sector workers.

Greece announces relief measures

Greek Prime Minister Kyriakos Mitsotakis said that the government had earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices.
The subsidies are targeted at reducing the cost of diesel fuel, petrol and fertiliser. Part of the initiative is aimed at holding back price hikes in ferry fares to the country's many islands, Mitsotakis said.

Croatia extends fuel price caps

Croatia on Monday renewed fuel price caps in place since March 9 to curb rises at the pump, Prime Minister Andrej Plenkovic said.
Diesel will be capped at 1.73 euros ($2.01) per litre, instead of a projected 1.86 euros ($2.16), while petrol will be 1.62 euros ($1.88) per litre rather than rising to 1.71 euros ($1.98).
The capped retail prices will apply for two weeks, but won't apply to filling stations along the international highway.

France urges refinery boost

The French government urged refiners to quickly increase production on a temporary basis to help reduce tension in the markets for fuels in Europe. 

Australia, Singapore to cooperate on energy

Australia and Singapore agreed to cooperate in ensuring smooth supply chains of oil, liquefied natural gas and diesel.  
"We are committed to working together to strengthen energy supply chain resilience," they said in a joint statement.

Cambodia supplier suspends LPG

A major energy supplier in Cambodia has said it will halt sales of liquefied petroleum gas from the start of next month due to supply disruptions resulting from the Middle East war.
Sokimex, a supplier of premium cooking and burning fuel in the southeast Asian nation, announced late on Sunday that it would "temporarily suspend the supply of LPG effective from April 1".
burs-rl/fg

Israël

Countries act to limit fuel price rise, cut consumption

  • Here are some of the measures that have been adopted: - Tax cuts and aid - Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
  • The surge in fuel prices triggered by the war in the Middle East has prompted countries to take measures to limit the financial impact on consumers and businesses.
  • Here are some of the measures that have been adopted: - Tax cuts and aid - Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
The surge in fuel prices triggered by the war in the Middle East has prompted countries to take measures to limit the financial impact on consumers and businesses.
Countries have also moved to reduce consumption, especially when they have limited reserves.
Here are some of the measures that have been adopted:

Tax cuts and aid

Some countries are targeting the price of fuel in order to limit the impact of the rise of crude oil prices on consumers and businesses.
Spain has launched a five-billion-euro ($5.8-billion) plan that reduces the value added tax (VAT) on fuel which should result in a reduction of 30 euro cents per litre.
A similar measure is in place in Portugal and has been announced in Sweden.
Since US-Israeli attacks on Iran set off the war on February 28 a number of countries such as Croatia, Hungary, South Korea and Thailand have set price limits on fuel.
Vietnam has waived customs duties on fuel imports through the month of April.
Japan is using subsidies to refiners to ensure the pump price of petrol stays around 170 yen ($1.07) per litre, having hit a record 190.8 yen in the middle of the month.
Taiwan uses a mechanism that absorbs 60 percent of increases.
China on Monday limited the amount that fuel prices may rise at the pump.
Greece has earmarked 300 million euros ($347 million) in relief for households and farmers in April and May to help them cope with rising fuel prices.
Morocco has put in place a special direct subsidy for road transport firms.
Brazil has announced temporary measures to limit fuel price increases, including suspending taxes on diesel fuel.
Germany has banned service stations from raising prices more than once per day.

Stocks, rationing, restrictions

The war is also forcing countries to dip into their strategic stocks and take other measures to avoid shortages, including rationing and reducing travel.
The 32 member countries of the International Energy Agency (which includes the G7 nations) have released a record amount from their strategic reserves.
Bangladesh has imposed rationing.
Egypt has limited non-essential travel by government employees. 
The Philippines has reduced ferry services and prices of local public transport have risen.
India, the world's number two importer of liquefied petroleum gas which is used to produce cooking gas, has prioritised supplies for households.
South Korea's ruling party said the country will lift a cap on coal-powered generation capacity set at 80 percent and boost the use of nuclear power to about the same level.

Reducing energy consumption

Other countries are introducing measures to reduce fuel consumption.
Thailand is encouraging government employees to work from home, while Vietnam is encouraging employers to do so.
Indonesia is looking at imposing one day of working from home for government employees, while the Philippines has gone further, introducing a four-day work week for government employees. 
In Thailand, the temperature in public buildings has been raised to 26 degrees Celsius (79F) to reduce electricity consumption for air conditioning.
Vietnam is encouraging people to ride bicycles, share rides and use public transport.
Bangladesh shut universities and brought forward the Eid holidays, the end of the Muslim holy month of Ramadan, to limit electricity consumption. 
It also cancelled decorative light displays on government buildings on Eid and those scheduled for Independence Day celebrations on March 26 and asked shopping malls to do the same.
Countries are also looking at importing Russian crude after the United States temporarily suspended sanctions in mid-March.
ole/uh/rl/kjm

US

War in the Middle East: latest developments

  • Since Saturday, the coastal town in Lebanon's far south on the border with Israel has been one of the flashpoints between Hezbollah and the Israeli army.
  • Here are the latest developments in the Middle East war on Monday: - Israel kills 1 near Beirut - An Israeli strike on Hazmieh east of Beirut killed at least one person, Lebanon's health ministry said, the second strike on the residential Christian area in the ongoing fighting between Israel and Iran-backed militant group Hezbollah.
  • Since Saturday, the coastal town in Lebanon's far south on the border with Israel has been one of the flashpoints between Hezbollah and the Israeli army.
Here are the latest developments in the Middle East war on Monday:

Israel kills 1 near Beirut

An Israeli strike on Hazmieh east of Beirut killed at least one person, Lebanon's health ministry said, the second strike on the residential Christian area in the ongoing fighting between Israel and Iran-backed militant group Hezbollah.
The Israeli military said around the same time that it had "struck an IRGC Quds Force terrorist in Beirut", referring to the foreign operations arm of Iran's Revolutionary Guards.

Targeting Hormuz 'economic terrorism'

The chief of the UAE's state energy company ADNOC slammed Tehran's effective blockade of the Strait of Hormuz, which has caused a surge in oil prices, as "economic terrorism against every nation".
"No country should be allowed to hold Hormuz hostage," Sultan Ahmed Al Jaber said in virtual remarks to the annual CERAWeek conference in Houston.

Trump claims 'regime change' in Iran

US President Donald Trump claimed "regime change" was effectively underway in Iran, while warning that if talks with Iranian figures contacted by Washington do not succeed then the bombing will continue.
Trump made clear the talks were not with Iran's new supreme leader Mojtaba Khamenei, but with people he described as "very reasonable", and said so many top officials had already been killed in the conflict that "there's automatically a regime change".

Iran must abandon nuclear: Trump

Trump however said that there are "major points of agreement" in the talks with Iran, which he said must give up its nuclear ambitions and enriched uranium stockpile.

Israel strikes Lebanon bridge

The Israeli military struck a bridge linking southern Lebanon with the eastern Bekaa region, state media reported, after warning it would hit the crossing.
The strike is part of a series of attacks on bridges over Lebanon's Litani River, located around 30 kilometres (20 miles) north of Israel, including the key Qasmiyeh bridge on Sunday.

Oil disruption 'temporary'

US Energy Secretary Chris Wright said oil market disruptions are "temporary," as costs surge on the back of the war.
"Prices have not risen high enough yet to drive meaningful demand destruction," he said at the CERAWeek conference

UN Lebanon peacekeeper HQ struck

The UN peacekeeping force in Lebanon announced its headquarters in Naqura had been hit by a projectile, probably launched by a "non-state actor", after Hezbollah declared it had targeted Israeli forces in the same town.
Since Saturday, the coastal town in Lebanon's far south on the border with Israel has been one of the flashpoints between Hezbollah and the Israeli army.

'Grateful' Merz

German Chancellor Friedrich Merz said he was "grateful" to Trump for delaying previously threatened strikes on Iranian power plants.

War going 'very well': Trump

Trump told AFP that "things are going very well" with Iran, shortly after announcing talks with Tehran and a five-day pause on targeting the Islamic republic's power plants.

Iran media report no US-Iran talks

Iranian media however denied Trump's claim of negotiations between Iran and the United States.
"There are no talks between Tehran and Washington," said the Mehr news agency, citing Iran's foreign ministry, adding that Trump's statements were part of a push "to reduce energy prices". Other Iranian media carried similar reports.

Russia-Iran call

Russia called for a "political and diplomatic" settlement to the war just after Trump's announcement.
In a call with Iranian Foreign Minister Abbas Araghchi, Russia's top diplomat Sergei Lavrov urged an "immediate cessation of hostilities and a political settlement that takes into account the legitimate interests of all parties involved, above all Iran", the Russian foreign ministry said.

Markets rollercoaster

Trump's announcement that the US and Iran were negotiating sparked a sharp reversal on markets, with crude prices sinking as much as 14 percent after rising around one percent earlier in the day.

Aircraft carrier return

The USS Gerald Ford, the world's largest aircraft carrier, which has played a key role in the Middle East war, has returned to a base in Crete, according to an AFP journalist.
The vessel, which took on food, fuel and ammunition at Souda Bay in February, reported a laundry fire on March 12 that injured two crew members.
burs-sbk/jhb

US

Trump calls off Iran strikes and announces 'very good' talks

BY AFP TEAMS IN TEHRAN, WASHINGTON, JERUSALEM, BEIRUT AND DUBAI

  • - Lebanon ground campaign - The US president has offered varying timelines and objectives for the war, saying Friday he was considering "winding down" the operation -- only to later threaten Iran's power plants, of which it has more than 90.
  • President Donald Trump shelved plans on Monday to attack Iran's power plants in a stunning about-turn sparked by what he said were "very good" talks with unidentified Iranian officials to bring an end to the war.
  • - Lebanon ground campaign - The US president has offered varying timelines and objectives for the war, saying Friday he was considering "winding down" the operation -- only to later threaten Iran's power plants, of which it has more than 90.
President Donald Trump shelved plans on Monday to attack Iran's power plants in a stunning about-turn sparked by what he said were "very good" talks with unidentified Iranian officials to bring an end to the war.
The reversal came ahead of a Monday night ultimatum for the Islamic republic to reopen the Strait of Hormuz shipping lane -- or see Trump "obliterate" its power plants.
With observers scrambling to interpret the latest statements from the US leader, oil prices fell and stocks markets jumped, even though Iran denied that any talks were underway.
Trump said his administration was discussing with an unidentified "top person", but not the country's supreme leader Mojtaba Khamenei, who is believed to be injured.
"We've wiped out the leadership phase one, phase two, and largely phase three. But we're dealing with the man who I believe is the most respected and the leader," Trump told reporters in Florida.
He described the individual as "very reasonable," while warning that if the talks failed, "we'll just keep bombing our little hearts out."
In Iran, media outlets quoted the foreign ministry denying any talks and suggesting Trump was angling to bring down energy prices sent soaring by the war -- with no mention of his claim on state television's latest news bulletin.
In a post on his Truth Social site, Trump said he had told the Pentagon to "postpone any and all military strikes against Iranian power plants and energy infrastructure for a five day period, subject to the success of the ongoing meetings."
Trump's threat to bomb Iran's power infrastructure had raised fears of a major escalation that could have seen the conflict expand again, with huge consequences for Gulf countries that host US forces. 
In response, Iran had threatened to deploy naval mines in the Gulf and target power plants across the region -- ramping up its rhetoric after warnings the world faced an energy crisis of historic proportions if the US-Israeli war with Iran drags on.

Strikes

Tehran has retaliated against US-Israeli attacks by throttling traffic through the Strait of Hormuz, conduit for a fifth of global crude, hitting energy sites and US embassies across the Gulf as well as targets in Israel.
The head of the International Energy Agency Fatih Birol warned overnight that, in the event of a protracted war, daily oil losses put the world on track for a crisis worse than the combined impact of both 1970s oil shocks and Russia's invasion of Ukraine.
Oil prices have been driven above $100 a barrel by the conflict -- and they tumbled sharply after Trump's announcements, while European stocks rebounded.
International benchmark Brent North Sea crude plunged around 10 percent to $101.00 per barrel, while the main US oil contract West Texas Intermediate shed around nine percent to $89.35 per barrel.
"I welcome the talks reported between the US and Iran," British Prime Minister Keir Starmer told a parliamentary committee, adding the UK was "aware" discussions were happening.
Since the start of the war on February 28, Trump has repeatedly stated his desire for regime change and openly raised the idea of installing a pro-Western figure from inside Iran's government. 
Tulsi Gabbard, director of US national intelligence, told Congress last week that she assessed "the regime in Iran to be intact but largely degraded due to attacks on its leadership and military capabilities".

 Lebanon ground campaign

The US president has offered varying timelines and objectives for the war, saying Friday he was considering "winding down" the operation -- only to later threaten Iran's power plants, of which it has more than 90.
Israeli Prime Minister Benjamin Netanyahu, who has yet to comment on Trump's announcement, has spoken of a long-term campaign against Iran's government, a state sponsor of Hamas, which launched the October 7, 2023 attack triggering the Gaza war.
In Lebanon, Israel has also expanded its ground campaign against Iran-backed Hezbollah, warning of "weeks of fighting" there.
The Lebanon violence has killed more than 1,000 people and displaced more than a million, according to the health ministry.
On Monday Israel's military said it was working to intercept a new salvo of missiles from Iran -- while confirming its own artillery fire had killed an Israeli civilian a day earlier near the Lebanese border.
In Iran, at least 3,230 people have died in the war, including 1,406 civilians, according to the US-based Human Rights Activists News Agency. AFP is not able to access the sites of strikes nor independently verify tolls in Iran.
In a sign of the conflict's tentacular impact, the world's second economy China had said earlier Monday it was capping domestic fuel cost increases to mitigate the effect of surging oil prices.
burs-ec-adp/ser

energy

Russia, Vietnam advance plans for first nuclear power plant

  • The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
  • Russia and Vietnam on Monday signed a cooperation agreement on the construction of Vietnam's first nuclear power plant, Russia's Rosatom nuclear agency said on Monday.
  • The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
Russia and Vietnam on Monday signed a cooperation agreement on the construction of Vietnam's first nuclear power plant, Russia's Rosatom nuclear agency said on Monday.
Prime Minister Pham Minh Chinh was visiting energy-rich Russia as Vietnam seeks to shore up its fuel reserves at a time of disruption to energy supplies caused by the war in the Middle East, sparking fears of fuel shortages around the world.
Since the US-Israeli war against Iran began in late February, the cost of 95-octane petrol and diesel in Vietnam, a manufacturing hub, has soared by 50 percent and 70 percent respectively.
The agreement lays out the legal framework for the construction of two reactors with a total output of 2400 MW at Vietnam's proposed Ninh Thuan nuclear power plant, Rostam said.
Rosatom head Alexey Likhachev said the agreement would be the "foundation for a long-term industrial partnership, which will strengthen Vietnam's energy independence and open up new opportunities for economic growth".
No timeline was given for when construction would start or when the plant might come online.
Moscow and Hanoi had initially agreed to build the Ninh Thuan 1 atomic power station back in 2010, but later decided to suspend construction.   
Another agreement between Russia's top liquefied natural gas (LNG) producer Novatek and a Vietnamese buyer was also signed recently, Novatek's CEO Leonid Mikhelson said on Monday.
"We have been in negotiations with potential buyers for over five years, and have very recently signed a preliminary supply agreement with one of them. We are ready to commence deliveries at the earliest opportunity," he told state broadcaster Rossiya 24, without naming the customer. 
Russia and Vietnam have also signed a deal on oil and gas production in both countries, the TASS state news agency reported, citing Russian Prime Minister Mikhail Mishustin, without giving details.
bur/sbk

Global Edition

Oil prices slide, European stocks rebound on Trump's Iran remarks

  • The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington. 
  • Oil prices tumbled and European stock markets rebounded Monday in volatile trading as US President Donald Trump suddenly ordered a halt to strikes on Iranian energy infrastructure after claiming "very good" talks with Tehran.
  • The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington. 
Oil prices tumbled and European stock markets rebounded Monday in volatile trading as US President Donald Trump suddenly ordered a halt to strikes on Iranian energy infrastructure after claiming "very good" talks with Tehran.
Crude futures plunged more than 14 percent after Trump's comments on his Truth Social platform, a sharp contrast to his threatening talk over the weekend.
However they later pulled back to trade down around eight percent as Iran denied negotiations had taken place.
"We need to wait for more clarity," UBS commodities analyst Giovanni Staunovo told AFP, as European gas prices declined four percent.
Asian and European stock markets had kicked off the new week with sharp losses. However following Asia's close and Trump's update, European equities rallied. All three of Wall Street's major indices jumped higher at the opening bell and were trading up more than one percent.
The rebound lost some steam after Iranian media said there had been no talks between Tehran and Washington. 
"It's incredibly difficult to trade these markets when Trump is swinging between massive escalation and declaring peace/victory... but the market is happy for now that we do not enter a new phase of danger," said Saxo UK investor strategist, Neil Wilson.
Analyst Patrick O'Hare at Briefing.com said the stock market "is reading between the lines of everything and is sensing an off-ramp moment, sooner rather than later."
Ahead of Trump's update, the International Energy Agency warned of the worst global energy crisis in decades.
Trump on Saturday gave Iran 48 hours to reopen the Strait of Hormuz to shipping or face the destruction of its energy infrastructure.
The ultimatum came as the waterway -- through which a fifth of global oil and liquefied natural gas flows -- remained effectively closed.
Iran warned Hormuz "will be completely closed" should Trump act on his threat.
Observers have raised the prospect of surging inflation as oil prices remain far above pre-war levels despite Monday's plunge.
This in turn could see central banks hike interest rates, potentially triggering a fresh cost-of-living crisis.
Disruption to fertiliser shipments has fanned concerns about global food security.
The prospect of higher borrowing costs has hammered the price of non-yielding gold but the precious metal recovered some of its losses after Trump's latest comments, which also reversed the direction of the dollar.
As Wall Street opened for trade, the greenback dropped against the euro, British pound and yen, having earlier risen.
Yields on 10-year government bonds, which have been surging on inflation concerns, pulled back slightly.
"As government bonds... see yields rise, it makes gold less attractive given that gold pays no interest," said Susannah Streeter, chief investment strategist at Wealth Club.
"Investors who have made losses elsewhere in volatile markets are selling to cover positions."
Israel has said the Middle East war could last several more weeks, with its military expanding ground operations in Lebanon against Iran-backed militant group Hezbollah.

Key figures at around 1330 GMT

Brent North Sea Crude: DOWN 8.7 percent at $102.42 per barrel
West Texas Intermediate: DOWN 7.8 percent at $90.60 per barrel
New York - Dow: UP 1.6 percent at 46,317.10 points
New York - S&P 500: UP 1.3 percent at 6,592.95
New York - Nasdaq Composite: UP 1.5 percent at 21,964.56
London - FTSE 100: UP 0.2 percent at 9,934.82
Paris - CAC 40: UP 1.1 percent at 7,752.37
Frankfurt - DAX: UP 1.6 percent at 22,727.28
Tokyo - Nikkei 225: DOWN 3.5 percent at 51,515.49 (close)
Hong Kong - Hang Seng Index: DOWN 3.5 percent to 24,382.47 (close)
Shanghai - Composite: DOWN 3.6 percent at 3,813.28 (close)
Euro/dollar: UP at $1.1586 from $1.1550 on Friday
Pound/dollar: UP at $1.3394 from $1.3323
Dollar/yen: DOWN at 158.67 yen from 159.30 yen
Euro/pound: DOWN at 86.51 pence from 86.68 pence
burs-bcp-rl

trade

EU chief in Australia as trade talks enter 'last mile'

  • And von der Leyen this month said the conflict had served as a "stark reminder" of the continent's vulnerabilities.
  • EU-Australia talks to strike a trade pact were in their "last mile" Monday, Brussels said as European Union chief Ursula von der Leyen arrived in Sydney raising hopes for a deal.
  • And von der Leyen this month said the conflict had served as a "stark reminder" of the continent's vulnerabilities.
EU-Australia talks to strike a trade pact were in their "last mile" Monday, Brussels said as European Union chief Ursula von der Leyen arrived in Sydney raising hopes for a deal.
Years in the making, the accord would be the latest inked by Brussels in a push to diversify trade as Europe faces challenges from the United States and China.
"Clearly there is mutual interest, and a positive hunger from both economic communities for having this new framework," EU trade commissioner Maros Sefcovic said. 
Von der Leyen's visit with Sefcovic in tow comes as the 27-nation bloc and import-reliant nation navigate renewed energy vulnerability sparked by the war in the Middle East. 
She arrived in Sydney Monday for a meeting with Australia's head of the state, the Governor-General, before heading to Canberra, where she is expected to meet Prime Minister Anthony Albanese.
"The goal is to tie down the final details," commission spokesman Olof Gill told a press conference in Brussels, cautioning that "the last mile is the hardest".
Improved access to the EU market for Australia's lamb and beef -- a big no-no for some European farmers -- was understood to be among the last sticking points.
Australia's luxury car tax on European vehicles was another. 
Australia's largest export market is China and the United States is its largest source of investment.
But Canberra has redoubled efforts to diversify export markets for farmers since a 2020 dispute with Beijing saw agriculture exports blocked for several years, and then last year's global imposition of US trade tariffs.
Likewise, the European Union is on a drive to strike new partnerships in the face of US levies and Chinese export controls. 
The bloc, which is seeking greater access to Australia's critical raw materials, is the resource-rich country's third largest two-way trading partner and second largest source of foreign investment.
A deal could boost EU exports to Australia by more than 30 percent and save exporters about one billion euro a year ($1.15 billion), Brussels said.
Australian Trade Minister Don Farrell last week said a pact would add Aus$10 billion (US$7.1 billion) in trade for Australia in the first year.
"They are potentially our second largest trading partner if we can pull this off," he told Sky News Australia.
Front and centre in meetings will also likely be the war in the Middle East, which has sent oil prices soaring.
In Canberra, International Energy Agency chief Fatih Birol said on Monday the world faced an energy crisis not seen in decades if the conflict was not resolved.
And von der Leyen this month said the conflict had served as a "stark reminder" of the continent's vulnerabilities.
Australia -- which is heavily reliant on fuel from abroad -- has also felt the pressure from the global energy squeeze.
While conceding that some petrol stations had run out of fuel, Energy Minister Chris Bowen said Monday the country was a "long way" from rationing.
kln-oho-ub/raz/ane

US

What cargo ships are passing Hormuz strait?

  • "Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
  • Just a trickle of cargo ships and tankers -- most of them Iranian -- have made it through the Strait of Hormuz since Iranian forces effectively blocked the crucial trade route in the Middle East war.
  • "Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
Just a trickle of cargo ships and tankers -- most of them Iranian -- have made it through the Strait of Hormuz since Iranian forces effectively blocked the crucial trade route in the Middle East war.
Here are facts and figures about vessels that have passed through the 167-kilometre (104-mile) long strait since the war broke out with US-Israeli strikes on Iran on February 28.

95% shipping drop

From March 1 to 0400 GMT on March 23, commodities carriers made just 138 crossings, according to analytics firm Kpler -- a 95 percent decrease from peacetime.
Of these, 87 crossings were by oil and gas tankers and more than half were loaded, Kpler data showed, with most travelling east out of the strait.
"Traffic through the Strait of Hormuz continues to be severely disrupted," shipping intelligence journal Lloyd's List said in its latest update Monday.
Its editor Richard Meade has noted bulk carriers, tankers and container ships make up most of the traffic.
He said the week to last Thursday saw an "uptick in gas carriers moving" through the maritime chokepoint.

New approved route?

On Monday, three further vessels -- two Indian-flagged tankers carrying liquefied petroleum gas (LPG) and a China-bound oil carrier -- became the latest to navigate the strait, according to Kpler's monitoring service MarineTraffic.
The Jag Vasant and Pine Gas, both Indian flagged, were each carrying around 45,000 metric tonnes of LPG when they left the waterway, having loaded up in the UAE and Kuwait respectively in late February, according to Bloomberg and MarineTraffic. 
The Panama-flagged Bright Gold left the strait carrying around 40,000 metric tonnes of methane, and was due to arrive in China on April 13.
The trio -- not included in Kpler's overall tally update -- appeared to have used a purported Tehran-approved route around Larak Island just off the Iranian coast.  
Meade has said that governments including China, India, Pakistan, Iraq and Malaysia seemed to have been in direct talks with Tehran, "coordinating vessel transits" with its Revolutionary Guards.
Lloyd's List noted last week that at least nine ships had by that time passed through the apparent Iranian-approved "corridor" for vetting by its authorities.
Two of the vessels navigating it Monday -- the Bright Gold and the Indian tanker Pine Gas -- kept their AIS transponders on, a rare occurrence for a non-Iranian vessel in the current climate.

Iranian, Greek, Chinese ships

The biggest proportion of ships to have passed through the strait are owned or flagged in Iran, followed by Greek and Chinese carriers, Bridget Diakun, an analyst at Lloyd's List Intelligence, said last week.
"Although Iran is continuing to control the Strait and exit its own oil, everything else is largely still at a standstill," Meade previously noted.

51 sanctioned ships

Overall since the war started, more than 40 percent of the ships transiting the strait have been under US, EU or UK sanctions, according to an AFP analysis of passage data.
Of the oil and gas tankers, nearly 59 precent were under sanctions.
Since March 16 "anything heading westbound has been shadow fleet, gas carriers or tankers... they absolutely dominate the traffic going through," Diakun told the Lloyds briefing.

Oil to China 

Commodities analysts at JPMorgan bank have noted that most of the oil passing through the strait was headed for Asia, principally China.
Cichen Shen, Asia Pacific editor at Lloyd's List, said there were indications online that Chinese authorities were working on "some sort of exit plan" for their big tankers stuck in the region.

1.3 mn barrels of Iran oil 

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

climate

German court rejects landmark climate case against BMW, Mercedes

BY SARAH MARIA BRECH WITH SAM REEVES IN FRANKFURT

  • DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
  • A German top court on Monday rejected a landmark climate case brought by environmentalists that had aimed to force auto giants BMW and Mercedes-Benz to stop selling combustion-engine cars from 2030.
  • DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
A German top court on Monday rejected a landmark climate case brought by environmentalists that had aimed to force auto giants BMW and Mercedes-Benz to stop selling combustion-engine cars from 2030.
The case at the Federal Court of Justice was brought by campaigners of the group Environmental Action Germany (DUH), and marked the latest example of activists turning to the judiciary to enforce climate action.
The plaintiffs built their case on a landmark 2021 ruling by Germany's Constitutional Court that the state has a duty to protect future generations from the effects of climate change and sought to apply the principle to companies.
But handing down its ruling, Germany's highest court for civil and criminal matters rejected DUH's arguments. It found that citizens' personal rights were "not affected... by the business activities of the defendant," in a decision that upheld rulings by lower courts.
"Private individuals cannot demand that automobile manufacturers refrain from placing passenger cars with internal combustion engines on the market" ahead of European Union deadlines, it said.
The DUH case demanded a 2030 phase-out of fossil fuel-powered cars -- five years earlier than the target year in a European Union plan that was last year watered down after intense lobbying by automakers.
DUH executive director Barbara Metz said the decision did not "absolve Mercedes-Benz and BMW of their responsibility for the climate crisis, which stems from their sale of millions of internal combustion engine vehicles in order to maximise profits".
But she said the court had made it clear that responsibility for action lies with the federal government, and called on Chancellor Friedrich Merz to step up action to protect the climate.
The DUH said it was also considering whether to file an appeal to the Constitutional Court.

Activists turning to courts

Mercedes welcomed the ruling for providing "a clarification of our democratic system".
"Setting legal requirements for climate targets is the responsibility of the legislature, not the judiciary," said the group in a statement, adding that climate protection remained a key consideration.
BMW added that the decision contributed to "legal certainty for companies operating in Germany". 
"Throughout the proceedings, we have consistently maintained the position that the debate over how to achieve climate targets must take place within the political process through democratically elected parliaments," the group added in a statement. 
The legal action is part of a wider trend of climate activists turning to courts.
Campaigners celebrated last May after a regional court in northern Germany ruled that companies could in principle be sued over the consequences of their emissions.
However, the court did not award damages to a Peruvian farmer, Saul Luciano Lliuya, who had brought the case against utility firm RWE.
The case against the carmakers was passed up to the Federal Court of Justice on appeal after lower courts in Stuttgart and Munich ruled in favour of the firms, finding they had complied with relevant regulations.
German carmakers have invested billions in the transition to electric and hybrid vehicles in a bid to meet EU climate targets.
But progress has been slowed by lower than anticipated demand, with many consumers put off by higher upfront costs and still patchy charging infrastructure.
burs-sr/fz/gv

LaGuardia

Runway collision kills two pilots, shutters New York airport

BY ANGELA WEISS

  • The pilot and co-pilot were killed in the crash, Kathryn Garcia, the head of the city's port authority, said at a press conference.
  • A plane carrying dozens of people collided with a fire truck on a runway at New York's LaGuardia airport, killing the pilot and co-pilot and causing "serious injuries" to others, authorities said Monday.
  • The pilot and co-pilot were killed in the crash, Kathryn Garcia, the head of the city's port authority, said at a press conference.
A plane carrying dozens of people collided with a fire truck on a runway at New York's LaGuardia airport, killing the pilot and co-pilot and causing "serious injuries" to others, authorities said Monday.
Due to the crash late Sunday, US aviation authorities halted all flights at LaGuardia, and the port authority said the airport would stay shut until at least 2:00 pm (1800 GMT) "to allow for a thorough investigation."
The closure follows the dramatic collision that left the Air Canada Express plane tilted back on its tail on the tarmac with a smashed cockpit, and flanked by emergency vehicles with flashing lights.
The pilot and co-pilot were killed in the crash, Kathryn Garcia, the head of the city's port authority, said at a press conference.
Forty-one people were taken to the hospital, some with "serious injuries," though 32 have since been released, Garcia said.
Two aircraft rescue and firefighting officers remain in the hospital in "stable condition with no life-threatening injury," she added. "They were able to speak and we're notifying their families."
The port authority said the aircraft operated by Jazz Aviation, a regional partner of Air Canada, struck one of its firefighting trucks on Runway 4 at around 11:40 pm Sunday as the vehicle drove to a separate incident.
Emergency response protocols had been "immediately activated," it said.
A preliminary passenger list showed 76 people on board the flight, including four crew members, Jazz Aviation said in a statement.
The National Transportation Safety Board said it had sent a "go team" to the scene to investigate the collision.

Runway crash

Jazz Aviation said the crash involved a CRJ-900 aircraft that had flown into LaGuardia from Montreal as flight AC8646.
Flight tracking platform FlightRadar24 said the plane "was rolling down the runway when it struck" the rescue vehicle as it crossed its path.
New York's emergency management authority warned people to "expect cancellations, road closures, traffic delays & emergency personnel," and use alternate routes near the airport.
LaGuardia had already been suffering from flight disruptions due to poor weather, the airport said Sunday on X.
Passengers were also waiting longer to pass security due to "staffing impacts" from a federal funding lapse, it said last week.
Located in the New York borough of Queens, LaGuardia is New York's third-busiest airport, serving 33.5 million passengers in 2024, according to port authority figures.
It completed an $8 billion redevelopment in 2024, upgrading its aging infrastructure with new terminals and roadways.
Deadly air crashes in the United States in recent years include a collision between a passenger jet and an army helicopter near Washington in January 2025 that killed 67 people.
Other incidents and close calls have taken place while aircraft were on the ground.
bur-mjw-lkd/jm

Israel

Global economy under 'major threat' from Strait of Hormuz crisis: IEA chief

  • "No country will be immune to the effects of this crisis if it continues to go in this direction.
  • The global economy is under "major threat" from the energy crisis caused by the Middle East war and "no country will be immune" to its effects, International Energy Agency chief Fatih Birol said Monday.
  • "No country will be immune to the effects of this crisis if it continues to go in this direction.
The global economy is under "major threat" from the energy crisis caused by the Middle East war and "no country will be immune" to its effects, International Energy Agency chief Fatih Birol said Monday.
Speaking at the National Press Club in Australia's capital, Birol compared the current energy crisis to those of the 1970s and the impact of Russia's 2022 invasion of Ukraine.
"This crisis as things stand is now two oil crises and one gas crash put all together," Birol said.
"The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible. 
"No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts."
US President Donald Trump and Tehran have issued tit-for-tat threats as the war entered its fourth week, with the US president demanding the Islamic republic reopen the blocked Strait of Hormuz, through which around 20 percent of the world's oil and gas shipments transit. 
The bottleneck has nearly halted all petroleum shipments through the narrow waterway.
Oil prices rose again early Monday, with US benchmark crude briefly touching the $100-per-barrel mark.
Birol told Australian media that at least forty energy assets across the region had been "severely or very severely damaged" in the conflict.
oho/tc

environment

Middle East war to dominate Houston's 'Davos of Energy'

BY NINA ISENI

  • The attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated a global oil and gas supply picture already upended by the de facto closure of the Strait of Hormuz.
  • Energy industry leaders will converge on Texas this week for an annual conference dominated by oil and gas supply disruptions from the war launched by the United States and Israel against Iran.
  • The attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated a global oil and gas supply picture already upended by the de facto closure of the Strait of Hormuz.
Energy industry leaders will converge on Texas this week for an annual conference dominated by oil and gas supply disruptions from the war launched by the United States and Israel against Iran.
More than 10,000 attendees are expected for CERAWeek, the spring gathering in Houston that has taken on unexpected importance as fuel prices soar since the Mideast war began in late February.
"It will be a CERAWeek for the ages," said Mark Brownstein, senior vice president of energy at the Environmental Defense Fund.
The attacks on critical energy facilities in Iran, Qatar and other Gulf countries have exacerbated a global oil and gas supply picture already upended by the de facto closure of the Strait of Hormuz.
"We're looking at the biggest disruption in world oil in history," said Daniel Yergin, vice chairman of S&P Global and the chair of the conference. "Nothing like this is on this scale has occurred before."
From Monday the conference will bring together  experts from industry, finance, government and academia to discuss energy and myriad related topics including international trade, artificial intelligence, the hunt for critical minerals and the prospects for new nuclear capacity.
Of particular interest will be a Monday morning session with US Energy Secretary Chris Wright, a critical player in President Donald Trump's administration's response to the recent surge in gasoline prices. 
Other big names appearing at CERAWeek include Chevron chief Mike Wirth, TotalEnergies chief Patrick Pouyanne, Shell chief Wael Sawan, Saudi Aramco's  Amin Nasser and Cheniere Energy boss Jack Fusco.

Machado to appear

Beyond the Middle East war, much of the attention this year will again focus on the profound reorientation of US energy and environmental policy under Trump.
Since returning to the White House in January 2025, he has embraced fossil fuels, including coal, while tearing up most of his predecessor Joe Biden's policies aimed at mitigating climate change.
His attacks on policies that encouraged electric vehicles and renewable energy have infuriated environmentalists, including the Texas Campaign for the Environment, an NGO that plans a rally on the first day of CERAWeek.
This year's conference also features a plenary event with Venezuelan opposition leader and Nobel Peace Prize laureate Maria Corina Machado, who will speak Tuesday night on "the Future of Venezuela."
Despite its vast natural resources including the world's biggest proven oil reserves, Venezuela has seen its energy sector deteriorate due to US restrictions on foreign investment and the Venezuelan government's mismanagement and underinvestment.
But the US seizure of president Nicolas Maduro on January 3 has opened up new possibilities, as Washington has lifted key sanctions while prodding oil giants to return to the country.
"I'm thrilled to show the world what a new Venezuela will achieve by unleashing our limitless energy potential," Machado posted about CERAWeek on X.
ni-jmb/js/dw

politics

China's premier vows to expand global 'trade pie': state media

  • The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
  • China's number two leader Li Qiang said Sunday that his country was willing to help expand the global "trade pie" by further opening up, state media reported, while he slammed unilateralism from certain countries.
  • The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
China's number two leader Li Qiang said Sunday that his country was willing to help expand the global "trade pie" by further opening up, state media reported, while he slammed unilateralism from certain countries.
Many of China's key trading partners have increasingly called on Beijing to reduce its soaring trade surplus owing to its impact on local competition.
Its trade surged by a fifth in the first two months of the year, official data showed earlier this month, significantly outpacing forecasts.
China "will steadfastly advance high-level opening up, import more high-quality foreign goods, and work alongside all parties to promote the optimised and balanced development of trade", Premier Li Qiang told business executives in Beijing on Sunday, according to Xinhua.
Li was speaking at the opening of the annual China Development Forum, attended this year by prominent business leaders including Apple CEO Tim Cook.
The Chinese premier added that Beijing would work with other countries to "join forces to make the global economic and trade pie larger for everyone".
He slammed growing unilateralism and protectionism, which he said was "no panacea for resolving problems".
Beijing has been seeking to steer a shaky economy onto a more stable path since the end of the pandemic, particularly by boosting consumption.
It had been locked in a blistering trade war last year with Washington after President Donald Trump imposed tariffs on countries including China. 
The recent trade boost is a lifeline for China, the world's second-largest economy, as domestic consumer activity has slumped, and adds to the record surplus achieved last year.
The China Development Forum convenes as the Middle East war, triggered by US and Israeli strikes on Iran, rages on.
Tehran has retaliated with strikes across the region and beyond in a conflict that has threatened global energy security as well as China's oil supplies.
Li told the Chinese officials and global business executives the international rules-based order was suffering "severe disruption" with power politics "running rampant".
Chinese Vice Premier He Lifeng met with senior representatives of multinational companies including HSBC, UBS, Schneider Electric and Standard Chartered on Saturday, Xinhua reported.
isk/fox

US

Sri Lanka raises fuel prices by 25 percent as war bites

  • Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
  • Sri Lanka raised fuel prices by 25 percent on Sunday, the second increase in two weeks, as the country prepared for more impact from the war in the Middle East.
  • Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
Sri Lanka raised fuel prices by 25 percent on Sunday, the second increase in two weeks, as the country prepared for more impact from the war in the Middle East.
Regular petrol was increased to 398 rupees ($1.30) per litre, up from 317 rupees, while diesel, the fuel commonly used for public transport, rose by 79 rupees to 382.
Last week, the government ordered an eight percent increase in retail fuel prices and introduced rationing to limit consumption.
"We hope to achieve a 15 to 20 percent reduction in fuel consumption with the latest increase," an official at the Ceylon Petroleum Corporation said.
He said President Anura Kumara Dissanayake told them last week that the country must prepare for a prolonged conflict in the Middle East that could affect the island’s energy supplies.
The president ordered a four-day working week from last Wednesday and asked employers to reintroduce work-from-home arrangements where possible.
The Strait of Hormuz, a key waterway through which some 20 percent of global oil exports pass in peacetime, has been effectively closed by Iran in retaliation over the US and Israeli war against it, now entering its fourth week.
Sri Lanka imports all of its oil and also buys coal for electricity generation.
Sri Lanka buys refined petroleum products from Singapore, Malaysia and South Korea, while crude oil for its Iran-built refinery is sourced from the Middle East.
The government has warned that the fighting in the Middle East, and a prolonged war, could seriously undermine its efforts to emerge from the economic meltdown of 2022.
Sri Lanka defaulted on its $46 billion foreign debt in 2022 after the country ran out of foreign exchange. Since then, Colombo has secured a $2.9 billion IMF bailout.
aj/pzb/fox

trade

US-China 'Board of Trade' may help ties but experts flag market worries

BY BEIYI SEOW

  • "That's not a good sign," he told AFP. "Where are the market forces?"
  • As Washington and Beijing mull a new mechanism to adjust trade between the world's two largest economies, some analysts warn that it could interfere with market forces, while others consider it a path to smoother coexistence.
  • "That's not a good sign," he told AFP. "Where are the market forces?"
As Washington and Beijing mull a new mechanism to adjust trade between the world's two largest economies, some analysts warn that it could interfere with market forces, while others consider it a path to smoother coexistence.
What is the managed approach to trade that Donald Trump's administration is seeking with China, as both sides work towards the US president's potential meeting with Chinese leader Xi Jinping in the coming weeks?

What is a 'Board of Trade'?

After top US economic officials held talks with their Chinese counterparts in Paris last weekend, US trade envoy Jamieson Greer said both sides discussed creating a "US-China Board of Trade."
The mechanism would help to formalize and identify what kinds of goods the United States should be exporting to and importing from China, he said.
The board could look into opportunities for expanding trade in non-sensitive products, or discuss mutual tariff reduction in non-strategic sectors, said Wendy Cutler of the Asia Society Policy Institute.
For now, officials appear to have made progress towards Chinese purchase commitments for agriculture, energy and planes from the United States, added Cutler, a former US trade official.

Is this new to US-China ties?

The talks come as Washington looks towards "managed trade," which Chad Bown of the Peterson Institute for International Economics said focuses on outcomes rather than policies.
This could mean import commitments or voluntary export restraints, as in the case of Japan in the 1980s to manage the flow of autos into the United States, he said.
A more recent example is the "Phase One" deal that Washington signed with Beijing during Trump's first presidency, marking a truce in their trade war, Bown added.
The agreement saw China agree to import an added $200 billion in US products over two years -- although China did not meet the commitment.

Why has this sparked worry?

"Instead of taking regulations out, tariffs down, and making it easier for customers and companies to decide what they sell at what prices, it (would be) more mechanized," said Joerg Wuttke, a partner at advisory firm DGA-Albright Stonebridge Group.
"That's not a good sign," he told AFP. "Where are the market forces?"
Such an approach is also not good for competitiveness, and could fuel concern among other trading partners, Wuttke warned.
A US-based business leader, speaking on condition of anonymity, said that managing trade raises concerns over how Washington will decide which industries to prioritize, and which sectors will benefit.

Does it help the relationship?

Bown of PIIE believes a managed trade agreement between the United States and China could be more successful than previous attempts to solve economic conflicts. 
The question is whether this leads to "a more sustainable, longer-term relationship" that is better than a "constant back and forth of conflict," he said.
"It's clear the old system didn't work. Could we try a new system that might work?"
But any trade agreement would have to be realistic and acceptable to both parties.
"You'd have to have a sincere commitment by both sides to make this work," he added. "Even then, it's going to be really, really hard."
bys/aha/acb

China

Kenya, Uganda double down on rail extension burdened by Chinese debt

  • Kenya now spends roughly $1 billion a year servicing Chinese debt, most of it borrowed to build the railway.
  • The presidents of Kenya and Uganda met near their shared border Saturday to mark the multi-billion-dollar, long-delayed extension of a Chinese-built railway that has left Kenya heavily in debt.
  • Kenya now spends roughly $1 billion a year servicing Chinese debt, most of it borrowed to build the railway.
The presidents of Kenya and Uganda met near their shared border Saturday to mark the multi-billion-dollar, long-delayed extension of a Chinese-built railway that has left Kenya heavily in debt.
The Standard Gauge Railway, built from 2013 to 2019, connects the Kenyan port of Mombasa to its capital Nairobi, and on to the lake town of Naivasha, but China refused further lending before it could be extended to Uganda as planned.
Kenya now spends roughly $1 billion a year servicing Chinese debt, most of it borrowed to build the railway.
That is far more than the line generates in revenue -- around $165 million last year -- even if passenger and cargo numbers have been growing strongly over the past year.
A report by Kenya's auditor general last year found more than $260 million had been wasted just on penalties and interest from late debt payments.
Yet despite the controversy over the cost, Kenya has been keen to finish the line.
Kenyan President William Ruto said the rail link will "define generations", speaking at a ceremony in grand pomp and circumstance with his Ugandan counterpart Yoweri Museveni in Kisumu, near the Kenya-Uganda border.
Ruto argued the line would slash logistics costs that "undermine competitiveness" in east Africa.
If the ambitious building schedule is to be believed, the line is due to reach Kisumu by June 2027. The next phase will then take the line to Malaba, a town on the border.
"Cargo takes an average of 80 hours to move from Mombasa to Malaba and more than 100 hours to reach Kampala," the Ugandan capital, Ruto said.
"We cannot build prosperity on inefficiency."

'Irrational and wasteful'

Museveni said the line would reduce the inefficiencies in his own country's infrastructure.
"The railway is part of the rationalisation of our transport system, especially on the Uganda side, which is irrational and wasteful," the veteran leader told the ceremony.
Later, he posted on X that "by shifting bulk cargo from roads to rail and pipelines, we reduce transport costs, protect infrastructure and improve efficiency".
Ruto broke ground on the next phase in Narok County on Thursday, arguing that it will create jobs and reduce road congestion.
"We have thought through this project (and)... its finance," he insisted.
Treasury estimates say the overall cost will be more than 500 billion shillings ($3.9 billion), according to Kenya's Business Daily.
Kenya is not taking more cash from Chinese banks this time -- instead borrowing against future cargo taxes -- though it is partnering with Chinese transport firms to build the new phase.
China lent Kenya $9.7 billion between 2000 and 2019, according to the Chinese Loans to Africa Database by Boston University, with around half of that going to the railway.
It stopped lending from 2020 to 2023 as Kenya struggled to make repayments, at a time when China revised its broader lending strategy in Africa.
Kenya considers the railway extension crucial for strengthening trade through east and central Africa, hoping to reach landlocked countries such as Uganda, Rwanda, South Sudan and the mineral-rich Democratic Republic of Congo.
er-jcp/sbk/jhb/gv/rmb

music

K-pop kings BTS stun Seoul in '2.0' comeback concert

BY CLAIRE LEE

  • Spotify said five million fans pre-saved it, the highest ever for a K-pop act, and that it was the most-streamed album in a single day so far this year.
  • South Korean megastars BTS performed their first show in nearly four years on Saturday in front of enormous crowds in Seoul for a K-pop extravaganza livestreamed to millions more worldwide.
  • Spotify said five million fans pre-saved it, the highest ever for a K-pop act, and that it was the most-streamed album in a single day so far this year.
South Korean megastars BTS performed their first show in nearly four years on Saturday in front of enormous crowds in Seoul for a K-pop extravaganza livestreamed to millions more worldwide.
Widely lauded as the biggest boy band in the world, BTS went on hiatus in 2022 so the seven members could serve compulsory military service, some near the heavily fortified border with North Korea.
The comeback concert had as its backdrop the historic Gyeongbokgung royal palace -- fitting for the "Kings of K-pop" -- with thousands of fans from South Korea and abroad singing along.
"It's been a long journey but now we are finally here!" said BTS's leader RM -- whose injured ankle meant he had to perch on a stool at times -- as the group performed songs from their new album, as well as old hits "Dynamite" and "Mikrokosmos".
"We are finally here and seeing you again... all seven of us standing on the stage together makes me so happy," said fellow member Jimin to cheers.
"BTS 2.0 is just getting started," said J-Hope.
Fans -- 260,000 were predicted earlier -- descended on Seoul from morning onwards in colourful costumes, taking selfies with their tickets and clutching BTS "ARMY" glowsticks.
Before they came on stage the crowd chanted "BTS! BTS!" with the main boulevard leading up to Gwanghwamun Square ram-packed with people as far as the eye could see.
Gwanghwamun Gate was lit in rainbow colours before the show started, as a massive stage installation featuring three circular features -- symbolising BTS's new album "Arirang" -- glowed beneath towering lighting rigs.
The megastars admitted to some nerves, with member J-Hope telling fans "there were moments when we wondered whether we might be somewhat forgotten, or whether you would remember us".
Jimin said: "We are not such special people. We are afraid every time, but we believed that if we showed you our sincerity, it would reach you."
Fans responded with a sea of glowsticks, singing along the songs while holding their phones high up to film their stars.
"It's great that the show was held in Gwanghwamun, but it would have been just as good anywhere -- even in a much smaller venue," Park Young-mi, 34, a South Korean fan, told AFP.
"Fans have been waiting unwaveringly, and I hope they felt that today."
"Seeing them on stage just felt as if I was being welcomed into a family... it felt very expressive and beautiful and you could just see it from the people who were here too," gushed Gabriel Miranda, 34, from the United States.
"It's a bit different from BTS's usual flavour, but seeing this new side of them at this historic place is deeply moving," said Jo Jung-hee, 60, her phone featuring a photo of BTS member V.
Millions more people across the world were able to watch the show broadcast live on Netflix.
The latest album, "ARIRANG", which was released on Friday, is billed as a reflection of the maturing boy band's Korean identity.
It sold almost four million copies in the first day, BTS's record label said.
Spotify said five million fans pre-saved it, the highest ever for a K-pop act, and that it was the most-streamed album in a single day so far this year.
"ARIRANG" takes its name from a folk song about longing and separation that is often dubbed South Korea's unofficial national anthem.
Featuring collaborations with multiple Western artists and producers, the 14 tracks on the album mix rap, heavy beats and experimentation.
"Compared to their earlier work, there's a wider range of genres, which gives it a more mature and expansive feel," Lee Ji-young, a university professor, told AFP.

Taylor who?

Saturday's show preceded a world tour set to be a major money-spinner for BTS, potentially outdoing Taylor Swift's recent Eras Tour.
South Korea too -- whose music, films, books, food and cosmetics are all the rage -- will benefit thanks to tourism and sales of merchandise from BTS dolls to toothbrushes and cans of tuna.
Starting in Goyang, South Korea on April 9 and ending in Manila 11 months later, BTS's tour encompasses 82 shows in 34 cities in 23 countries.
Security was heavy for Saturday's concert, with some 15,000 police and security guards, barricades lining the roads and local venues shut.
Wedding guests had to be transported by police.
BTS -- short for Bulletproof Boy Scouts in Korean -- have championed UNICEF campaigns, the Black Lives Matter movement and efforts to combat anti-Asian racism.
Members have also spoken candidly about the pressures of the music industry.
"Honestly, I became a fan simply because I love their music," Seo Ra-jung, 40, told AFP after the concert.
"I first became a fan during a really difficult period in my life, and their lyrics gave me a lot of strength."
str-cdl/stu/abs

trial

US jury finds Elon Musk misled Twitter shareholders

BY GLENN CHAPMAN

  • The civil complaint in California accused Musk of driving down Twitter's stock price to gain leverage to renegotiate the purchase price or get out of the deal completely, causing people who sold shares to lose money.
  • A federal jury in California found Friday that tech tycoon Elon Musk misled Twitter shareholders, driving down the company's share price as he was poised to buy it in a $44 billion deal.
  • The civil complaint in California accused Musk of driving down Twitter's stock price to gain leverage to renegotiate the purchase price or get out of the deal completely, causing people who sold shares to lose money.
A federal jury in California found Friday that tech tycoon Elon Musk misled Twitter shareholders, driving down the company's share price as he was poised to buy it in a $44 billion deal.
The verdict in the class action securities lawsuit means the world's richest person could be ordered to pay billions of dollars, according to damages calculated by jurors.
Minutes after the judgment was announced, the entrepreneur's lawyers informed AFP that their client will appeal the decision, characterizing it as a "setback."
After a three-week trial in a San Francisco federal court -- which included in-person testimony from Musk -- the jury found that two tweets posted in May 2022 by the Tesla and SpaceX CEO contained false statements responsible for a plunge in Twitter's share price.
Investor Giuseppe Pampena had filed the suit on behalf of people who sold Twitter shares between mid-May and early October 2022.
Musk acquired the social media platform in late October 2022 and later renamed it X.
Jurors agreed that Musk violated a securities rule that bars false and misleading statements that sink a stock price, in this case that of Twitter, the verdict form showed.
An attorney for the plaintiffs estimated the damages at about $2.6 billion.
Musk, who has a near-constant presence on X, did not immediately react to the verdict.

Teflon tycoon?

The judgment marks a rare legal defeat for Musk, often dubbed "Teflon Elon" for his ability to emerge unscathed from lawsuits he is expected to lose.
His lawyers, in fact, reminded AFP of this track record, noting that a Texas court cleared him just that same day in a separate defamation case.
In 2023, a jury in the same San Francisco federal court cleared him within hours of similar charges brought by Tesla shareholders, following his 2018 tweets claiming he had the funding to take the automaker private.
The civil complaint in California accused Musk of driving down Twitter's stock price to gain leverage to renegotiate the purchase price or get out of the deal completely, causing people who sold shares to lose money.
Musk tweeted at one point during the process that the acquisition deal was temporarily on hold until Twitter executives could prove the percentage of "bots" -- fake accounts run by software instead of real users -- was as low as the social media platform claimed.
The plaintiffs contended that these statements were part of a scheme designed to pressure the board of directors into accepting a price lower than his initial offer -- at a time when Tesla's share price was falling, meaning Musk would have to sell more of his shares to finance the deal.
Musk abandoned his effort to get out of buying Twitter in late 2022 after the company took him to court to uphold the contract.
Musk has since merged the social media platform with his artificial intelligence startup xAI and his private space exploration firm SpaceX.
Forbes magazine early this month estimated Elon Musk's net worth at $839 billion, a figure based primarily on his stakes in his portfolio of companies including Tesla and SpaceX.
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US

Middle East war: global economic fallout

  • - Iran oil sanctions eased - The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington's latest step to stem a supply crisis over the Middle East war.
  • Here are the latest economic events in the Middle East war: - Iran's Hormuz offer to Japan - Iran is willing to help Japanese ships sail the Strait of Hormuz, a vital route for global fuel supplies, Foreign Minister Abbas Araghchi told Kyodo News in an interview published on Saturday.
  • - Iran oil sanctions eased - The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington's latest step to stem a supply crisis over the Middle East war.
Here are the latest economic events in the Middle East war:

Iran's Hormuz offer to Japan

Iran is willing to help Japanese ships sail the Strait of Hormuz, a vital route for global fuel supplies, Foreign Minister Abbas Araghchi told Kyodo News in an interview published on Saturday.
In the telephone interview conducted on Friday, Araghchi denied closing the passageway, saying instead that countries attacking Iran face restrictions while others were being offered assistance.
He added that Iran was prepared to ensure safe passage for Japan.
Iran's de facto blockade of the Strait of Hormuz, through which 20 percent of the world's oil and gas normally flows, and the numerous attacks on energy infrastructure in the Middle East have sent crude oil prices soaring.

United trims flights as jet fuel costs spike

United Airlines announced Friday that it was scaling back its flight capacities because of soaring jet fuel costs, which the US airline anticipates will keep rising as the war in the Middle East continues.
United chief Scott Kirby said "our plans assume oil goes to $175 a barrel and doesn't get back down to $100 a barrel until the end of 2027."
Earlier, the head of the IATA airline trade association Willie Walsh said an increase in ticket prices is "inevitable" as airlines respond to soaring prices of jet fuel.

Iran oil sanctions eased

The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington's latest step to stem a supply crisis over the Middle East war.
The move by the Office of Foreign Assets Control follows a similar lifting of sanctions on Russian oil at sea.
Iranian oil ministry spokesman Saman Ghoddoosi earlier wrote on X that "Iran basically has no surplus crude oil left on the water".

US threatens Kharg oil facility

The White House said the US military could "take out" Kharg Island whenever it wanted, as US media reported that up to 2,500 additional Marines are being deployed to the Middle East.
Kharg, around 30 kilometres (19 miles) off the Iranian mainland, handles almost all of Iran's crude exports.

Damage to Qatar's Ras Laffan could have high cost

An Iranian attack on Qatar's huge Ras Laffan natural gas complex caused "extensive damage" that Qatar's state energy company said could cost $20 billion a year in lost revenue and take five years to repair.

Kuwait refinery ablaze

Drone attacks hit Kuwait's Mina Al-Ahmadi oil refinery on Friday, causing several fires but no casualties, state media said.
Several refinery units were shut down, the official Kuwait News Agency reported. The Kuwaiti army later said that the fire was brought under control.
Iranian authorities had vowed to retaliate after an Israeli strike on Wednesday damaged its South Pars gas field, which draws on the world's biggest known gas reserve and is vital for domestic supplies.

Vietnam fuel prices soar

The cost of petrol rose more than 20 percent in Vietnam after the government announced an overnight hike amid fears of oil and gas shortages caused by the war.
Southeast Asian countries have borne the brunt of surging diesel prices following strikes against energy infrastructure in Iran and the Gulf states.
The increase has seen the price of regular petrol and diesel rise more than 50 and 70 percent respectively since the conflict began.

Spain chops fuel taxes, freezes rents

Spanish Prime Minister Pedro Sanchez announced a five billion euro ($5.8 billion) package aimed at offsetting the economic impact of the Middle East conflict, including a "drastic reduction" in energy taxes.
The package's 80 measures include cuts to the value-added tax on gas and fuel, which could lower prices at the pump by up to 30 cents per litre.
Sanchez also said the government would cap the maximum price of butane and propane, and slash electricity taxes by 60 percent.
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