Global Edition

Oil prices jump on Iran attack fears, Wall Street slips on AI

  • In Europe, the jump in oil and metals prices helped London's FTSE 100 stock index buck the trend, rising to a fresh record high as energy and resources stocks rose.
  • Crude oil prices jumped Friday as worries about a possible US attack on Iran rose while Wall Street stocks slid as tech stocks suffered.
  • In Europe, the jump in oil and metals prices helped London's FTSE 100 stock index buck the trend, rising to a fresh record high as energy and resources stocks rose.
Crude oil prices jumped Friday as worries about a possible US attack on Iran rose while Wall Street stocks slid as tech stocks suffered.
Crude prices jumped more than three percent at one point as optimism faded following Thursday talks between the two nations that were seen as a last-ditch bid to avert war.
"With the US having called on its citizens to leave Israel and Iran, the threat of an attack on the Islamic Republic has dramatically risen, pushing the oil price to a seven-month high," said analyst Axel Rudolph at investing and trading platform IG. 
The benchmark international contract, Brent, briefly rose over $73 per barrel.
Wall Street's main stock indices fell, with tech stocks taking a hit.
Financial services firm Block's announcement that it would slash its workforce by nearly half and rely heavily on AI to operate more efficiently sparked fresh concerns about the disruptive nature of the technology.
"Block won't be the last company making this type of announcement, which is what has the market spooked this morning about growth prospects," said Briefing.com analyst Patrick O'Hare. 
Stock markets soared to fresh heights last year thanks to investors piling into stocks of tech firms which are piling massive amounts of money into developing and deploying AI.
But the march higher has not been steady in recent months as concern about artificial intelligence disrupting industries occasionally triggers sudden drops in markets.
Investors have also been occasionally seized by concerns that the share prices of tech giants have risen too high and that AI may not be profitable.
Expectations of stellar performance have also worked against tech giants.
Nvidia's share price slumped 5.5 percent Thursday despite the chip giant announcing that its quarterly profits more than doubled to $43 billion.
It fell another two percent on Friday after OpenAI announced a $110 billion funding round that includes the company.
Thursday's drop was partly due to investors already having priced in an increase ahead of the announcement, but "there are also concerns related to stretched valuations and Nvidia's dependence on capital spending by large technology companies investing in AI infrastructure", said City Index analyst Julian Pineda.
Trade Nation analyst David Morrison also pointed to investors shifting money from tech to other sectors. 
He pointed out that the S&P 500 is heading towards a 0.4 percent loss for the month of February, while the Dow is set for a 1.2 percent gain. 
"This divergence provides further evidence of a clear rotation away from high-growth AI-linked names into more traditional cyclical sectors, even as broader macro risks tied to trade policy and geopolitical tensions linger in the background," he said.
Meanwhile, shares in Netflix surged nearly 10 percent after the streaming giant announced its withdrawal from the bidding war for Warner Bros after Paramount Skydance raised its bid.
In Europe, the jump in oil and metals prices helped London's FTSE 100 stock index buck the trend, rising to a fresh record high as energy and resources stocks rose.
Frankfurt ended the day flat and Paris fell.

Key figures at around 1630 GMT

New York - Dow: DOWN 1.0 percent at 49,012.86 points
New York - S&P 500: DOWN 0.5 percent at 6,872.12
New York - Nasdaq Composite: DOWN 0.8 percent at 22,695.29
London - FTSE 100: UP 0.7 percent at 10,922.85 (close)
Paris - CAC 40: DOWN 0.5 percent at 8,580.75 (close)
Frankfurt - DAX: FLAT at 25,284.26 (close)
Tokyo - Nikkei 225: UP 0.2 percent at 58,850.27 (close)
Hong Kong - Hang Seng Index: UP 1.0 percent at 26,630.54 (close)
Shanghai - Composite: UP 0.4 percent at 4,162.88 (close)
Euro/dollar: UP at $1.1821 from $1.1799 on Thursday
Pound/dollar: DOWN at $1.3463 from $1.3489
Dollar/yen: DOWN at 156.04 yen from 156.11 yen
Euro/pound: UP at 87.81 pence from 87.47 pence
Brent North Sea Crude: UP 2.3 percent at $72.44 per barrel
West Texas Intermediate: UP 2.2 percent at $66.65 per barrel
burs-rl/sbk

automobile

Carmaker BMW to trial humanoid robots at German factory

  • The BMW Group's head of digitisation, Michael Stroebel, said on Friday that it is "not planned currently to reduce the workforce" by replacing workers with new robots. pca-bst/fz/sbk
  • German carmaker BMW said Friday it plans to deploy two AI-powered humanoid robots in a factory in a pilot programme for the first time this year.
  • The BMW Group's head of digitisation, Michael Stroebel, said on Friday that it is "not planned currently to reduce the workforce" by replacing workers with new robots. pca-bst/fz/sbk
German carmaker BMW said Friday it plans to deploy two AI-powered humanoid robots in a factory in a pilot programme for the first time this year.
Dubbed AEON and developed by the Swedish company Hexagon, the black-and-white robots stand 1.65 metres (5.4 feet) tall, weigh 60 kilogrammes (132 pounds) and move on two wheels.
They can autonomously manipulate and move components within a factory where the space has been previously fully scanned and digitised.
A months-long pilot phase will start this summer in a plant in Leipzig, with employees working alongside the vaguely human-like robots.
The robot "has a full awareness of its environment" thanks to 22 sensors and various types of cameras, said Arnaud Robert, president of Hexagon Robotics.
Robert declined to disclose the price of the robots, but said it was in the hundreds of thousands of euros.
The AI-powered robot is "intelligent enough to generate its own decisions" and operate "in a manufacturing environment", said Milan Nedeljkovic, BMW's incoming chairman and the current head of production.
During a demonstration at a BMW workshop in Munich, the robot could be seen navigating toward a car and scanning the front door of the vehicle using a device.
Another demonstration showed the robot retrieving a part from a person before handing it back a few metres away.
The robot's battery life is about three hours, but the Swedish developer said the robots can replace their own battery in about 30 seconds using a charging station.
Germany's once-mighty car industry, faced with fierce Chinese competition, has been struggling to maintain competitive advantages and match Chinese innovations.
During a visit to China on Thursday, German Chancellor Friedrich Merz was shown an impressive coordinated performance of humanoid robots designed by the Chinese company Unitree, aimed at showcasing Beijing's rapid technological progress.
In Europe, factory automation using robotics and AI has raised concerns about potential job losses.
The BMW Group's head of digitisation, Michael Stroebel, said on Friday that it is "not planned currently to reduce the workforce" by replacing workers with new robots.
pca-bst/fz/sbk

luxury

At Milan Fashion Week, industry's darker side goes unmentioned

BY ALEXANDRIA SAGE

  • "I think the integrity of Made in Italy is incredibly important and I think that at the end of the day, to the customer, it's product first, right?"
  • Artisans in white coats greeted guests at the Tod's fashion show in Milan Friday, crafting the Made in Italy leather and needlework items for which the company -- and country -- is renowned.
  • "I think the integrity of Made in Italy is incredibly important and I think that at the end of the day, to the customer, it's product first, right?"
Artisans in white coats greeted guests at the Tod's fashion show in Milan Friday, crafting the Made in Italy leather and needlework items for which the company -- and country -- is renowned.
But despite that display of handcraft, there has been little mention at Milan Fashion Week of some of the industry's forgotten workers -- whom prosecutors found were working in sweatshop conditions at subcontractors for many Italian luxury brands, including Tod's. 
With the glamorous catwalks, celebrities and excess of finery on display, the possibility of the recent investigations uncovering labour abuses being on anyone's mind appeared slim.
After the show, Tod's founder and chairman Diego Della Valle told AFP the company's decision to highlight its artisanal heritage was in no way linked to the recent investigations.
"No controversy -- I think we'll do good things together with the courts and trade associations. I think we're on the right track," Della Valle said. 
On Tuesday, Tod's submitted to a Milan court a list of measures it was undertaking to reinforce its supply chain, including the creation of a platform to better trace supplier activity and expanded audits.  
"I think that by working together like this, everyone will be involved in finding a solution," he said, adding that Italy's laws needed revising "to protect people and artisans".

'Product first'

Many international guests at the show had not heard mention of the accusations of migrant labour exploitation levelled last year at over a dozen of luxury's biggest names, including Gucci, Loro Piana, Prada, Dolce & Gabbana and Ferragamo. 
Allegations include around-the-clock working hours and substandard pay, breaches of safety measures and makeshift sleeping areas inside small workshops.
Asked whether it would matter to the luxury consumer, the vice president and fashion director at Nordstrom, Rickie De Sole, suggested the answer might be yes and no. 
"I think the integrity of Made in Italy is incredibly important and I think that at the end of the day, to the customer, it's product first, right?" she told AFP.
Influential fashion critic and journalist Suzy Menkes, sitting in the front row, cautioned that she hadn't followed the cases in Italy but said "people do care when there are specific things that have come to light".
"But I don't think it's any different from food and various other things, where one hopes that the bigger the company is, that the more they're serious about it."
A Hong Kong content creator dressed head to toe in Tod's, 26-year-old Stephanie Hui, said people were "desensitised" to stories of sweatshop conditions in the fashion industry, with consumers feeling powerless to effect change.
"It takes a lot of people to band together to like really make a change. It's not really in our control, but definitely I think if consumers stop spending as much they'll kind of give the brands a wake-up call," she said.

'Want to be seen'

Fashion industry insiders say that controlling every link in the supply chain is more complicated the bigger the company. 
Stefano Aimone, CEO and creative director of Agnona, told AFP in an interview this that it depends on the company's scale. 
"When you’re smaller, you have more control and can really check and know all your employees and consultants by name. When you're dealing with 400, they're just numbers, and it's unthinkable to control everything," he said. 
"Something will slip through regardless, because even if you have contracts with such-and-such subcontractor, you don’t know what they then do in turn," said Aimone.
Asked whether fashion customers paid attention, Aimone said that despite some headlines, it remained "a B (business) to B (business) issue".
"The end customer doesn't know."
And even if supply chains were better known, the customer might not care, said Iuliana Stetco, 21, a fashion marketing student in Milan.  
"They want to be seen, they want to be seen wearing a certain type of brand, a certain label, and so as a result they don’t care much."
ams/ide/dt/rmb

Pokemon

New Pokemon titles on horizon as 30th anniversary approaches

  • Titles available on multiple consoles and mobile phones have sold more than 500 million copies over the franchise's 30-year history, according to figures from the Pokemon Company and Nintendo.
  • Pikachu and friends are set to return to consoles in two new games next year, the Pokemon Company said Friday, as it celebrated 30 years of the monster-collecting franchise.
  • Titles available on multiple consoles and mobile phones have sold more than 500 million copies over the franchise's 30-year history, according to figures from the Pokemon Company and Nintendo.
Pikachu and friends are set to return to consoles in two new games next year, the Pokemon Company said Friday, as it celebrated 30 years of the monster-collecting franchise.
Set for release on Nintendo's latest Switch 2 console, "Pokemon Winds" and "Pokemon Waves" will see the fan-favourite critters return and new beasties emerge as players explore a colourful, tropical world stretching down to the ocean floor.
The Pokemon Company -- jointly owned by Nintendo, Japanese studio Game Freak and the Creatures company -- controls the brand for the franchise with more than 1,000 "pocket monsters" to date.
Longtime followers of the series will also be able to play the original games released for the portable Game Boy in 1996 on Switch, Nintendo said.
The next volley of Pokemon games was revealed just before the release of a new spinoff, "Pokopia", for Switch 2 on March 5.
Pokemon rapidly grew into a global phenomenon following the first titles' release on Game Boy.
Titles available on multiple consoles and mobile phones have sold more than 500 million copies over the franchise's 30-year history, according to figures from the Pokemon Company and Nintendo.
Originally inspired by traditional summer insect hunts in Japan, gameplay usually involves capturing and training fantastical "pocket monsters" resembling anything from mice to dragons, before sending them into battle against one another.
Beyond consoles, Pokemon has also spawned films, an animated series and the augmented reality mobile game "Pokemon Go".
In 2024, the brand generated $12 billion in revenues, according to specialist data firm License Global, more than toy giant Mattel.
kf/tgb/sbk

AI

OpenAI raises $110 bn in record funding round

  • The Amazon investment will begin with $15 billion, followed by another $35 billion in the coming months when certain conditions are met, the companies said.
  • The investment round -- one of the largest in Silicon Valley history -- includes $30 billion from Japanese conglomerate SoftBank, $30 billion from chip giant Nvidia, and up to $50 billion from Amazon, with additional investors expected to join as the round progresses.
  • The Amazon investment will begin with $15 billion, followed by another $35 billion in the coming months when certain conditions are met, the companies said.
OpenAI announced Friday a massive $110 billion funding round valuing the ChatGPT maker at $730 billion, with SoftBank, Nvidia and Amazon each making multi-billion-dollar commitments as the artificial intelligence company races to meet surging global demand.
The investment round -- one of the largest in Silicon Valley history -- includes $30 billion from Japanese conglomerate SoftBank, $30 billion from chip giant Nvidia, and up to $50 billion from Amazon, with additional investors expected to join as the round progresses.
Alongside the capital injection, OpenAI announced strategic partnerships with both Amazon, the world's biggest cloud company through its AWS division, and Nvidia, whose AI chips remain unparalleled in their capacity for AI training.
"SoftBank, Nvidia, and Amazon are long-term partners who share our ambition to turn real scientific progress into systems that deliver meaningful benefits for people at global scale," OpenAI said in a statement.
The eye-watering level of funding reflects the soaring costs of computing power and comes amid lingering questions about whether OpenAI and other AI companies can generate sufficient revenue to cover those costs.
The Amazon investment will begin with $15 billion, followed by another $35 billion in the coming months when certain conditions are met, the companies said.
According to reports, these include OpenAI going public or achieving artificial general intelligence, a sometimes ill-defined standard of AI capability that more closely matches human-level ability.
OpenAI and Amazon also struck a deal in which the ChatGPT maker will use two gigawatts of computing capacity powered by Amazon's in-house Trainium chips.
Amazon's cloud computing rival Microsoft, which did not participate in the funding round, remains a major shareholder of OpenAI and a strategic partner.
In the announcement, OpenAI cited a series of user metrics pointing to a breakneck pace of AI adoption.
Even if short of its previous forecasts, ChatGPT now counts more than 900 million weekly active users and over 50 million paying consumer subscribers, with January and February on track to be the platform's biggest-ever months for new subscriptions, the company said.
It added that more than nine million businesses pay to use ChatGPT for workplace tasks, while its Codex software development tool has seen weekly users more than triple since the start of the year to 1.6 million.
The figures are intended to reassure more skeptical investors who have questioned OpenAI's ability to secure revenue, with user growth for its flagship ChatGPT slowing.
The company this month began rolling out advertising for its non-premium users in a bid to bring in more revenue.
According to The Information tech news, OpenAI now predicts that it will burn more than twice as much cash through 2030 than previously predicted, spending $665 billion on the costs of running and training its AI.
Competition has ramped up too.
Arch-rival Anthropic, founded by former OpenAI employees, continues to gain ground and grab headlines for its well-regarded Claude AI models.
Anthropic earlier this year secured a $30 billion funding round.
Google's AI model Gemini has also emerged as a potent competitor, with Elon Musk's xAI also attracting investment and users.
arp/bgs

GDP

India logs 7.8 percent quarterly growth after data overhaul

BY ANUJ SRIVAS

  • Faced with a dimming economic outlook, Prime Minister Narendra Modi has sought to bolster the economy by slashing income and consumption taxes which have helped rebound consumer spending in recent quarters.
  • India's economy grew at a faster pace than expected in the last quarter of 2025 driven by solid consumer spending, data showed Friday, using a new framework that calculates economic output more accurately.
  • Faced with a dimming economic outlook, Prime Minister Narendra Modi has sought to bolster the economy by slashing income and consumption taxes which have helped rebound consumer spending in recent quarters.
India's economy grew at a faster pace than expected in the last quarter of 2025 driven by solid consumer spending, data showed Friday, using a new framework that calculates economic output more accurately.
Gross domestic product rose 7.8 percent in the October-to-December quarter from the same period a year earlier, according to data from the statistics ministry.
While growth slipped from the 8.4 percent recorded in the previous quarter, it edged past market expectations of 7.6 percent.
Aditi Nayar of ratings agency ICRA said the GDP growth number was "healthier than what we had expected".
"The moderation was expectedly driven by the agriculture and the non-manufacturing industrial sectors," she said in a note.
Friday's reading re-affirmed India as the world's fastest-growing major economy and is a shot in the arm for policymakers who have struggled with steep US tariffs, a falling rupee and muted consumption for most of 2025.
Last year, the government claimed India had surpassed Japan to become the world's fourth-largest economy.
However, the data for 2025 shows India's nominal GDP in dollar terms was still under the $4 trillion mark compared to Japan's $4.4 trillion -- indicating that while it was close, the crossover has yet to happen.
Based on current numbers, India will cross the $4 trillion mark comfortably in 2026-27, India's chief economic advisor V. Anantha Nageswaran said.
"The relative ranking will also depend on other countries' growth rates and exchange rates as well," he said.
Faced with a dimming economic outlook, Prime Minister Narendra Modi has sought to bolster the economy by slashing income and consumption taxes which have helped rebound consumer spending in recent quarters.

Data overhaul

New Delhi also managed to secure a trade deal with Washington in early February, which boosted sentiment around the rupee but came just weeks before the US Supreme Court struck down President Donald Trump's sweeping tariffs.
The GDP numbers are the first data released under a revised framework that New Delhi said better captures "the realities of a fast-changing economy".
The data overhaul has seen India shift its GDP base year to 2022-23 from 2011-12 and adopt more granular price deflation to help quell concerns that earlier methods relied too heavily on the wholesale price index.
Growth calculations are now also based on sources of data including India's online tax and vehicle registration databases.
The government said the new data aligns official numbers "more closely with the structure and dynamics of today's economy".
The data revamp also sees New Delhi raising its growth projections for the current financial year that ends in March.
The Indian economy is now projected to grow 7.6 percent for the full fiscal year, up from a forecast of 7.4 percent published last month, a press release from the statistics ministry said.
The latest figures bring Modi closer to his goal of transforming India into a developed nation by 2047 -- a target that most analysts say would require the economy to record about 8 percent growth every year until then.
Analysts say New Delhi's growth trajectory reduces the likelihood of any rate cuts from India's central bank.
"The important point from a monetary policy perspective is that the new data confirm that the economy is performing strongly," Shilan Shah of Capital Economics said in a note.
"They don't change our view that the Reserve Bank's easing cycle has come to an end."
asv/abh/lga

trade

EU will provisionally apply contested South America trade deal

BY RAZIYE AKKOC

  • The deal will provisionally apply to the Mercosur countries that have ratified it, Gill told reporters, adding the commission anticipated remaining members Brazil and Paraguay would do so "soon".
  • The European Commission announced Friday it will provisionally implement a mammoth trade deal with the South American bloc Mercosur, prompting a public split between its two largest member states France and Germany.
  • The deal will provisionally apply to the Mercosur countries that have ratified it, Gill told reporters, adding the commission anticipated remaining members Brazil and Paraguay would do so "soon".
The European Commission announced Friday it will provisionally implement a mammoth trade deal with the South American bloc Mercosur, prompting a public split between its two largest member states France and Germany.
EU chief Ursula von der Leyen announced the bloc would go forward with agreement pending the EU top court's ruling on its legality after Argentina and Uruguay ratified the agreement Thursday.
"The commission will now proceed with provisional application," von der Leyen said in Brussels, recalling that member states had given the EU executive power to do so.
"Provisional application is, by its nature, provisional," she added, saying: "The agreement can only be fully concluded once the European Parliament has given its consent."
She hailed the ratification by the two South American countries as "good news".
The deal still needs a green light from lawmakers in the European Parliament, which referred it to the EU's top court within days of being inked in January.
France has led opposition to the deal and unsuccessfully attempted to block it over worries for its farmers, who fear being undercut by cheaper goods from Brazil and its neighbours.
French President Emmanuel Macron called the decision a "bad surprise" that ignored the European Parliament, but Germany and Spain welcomed the step. 
"Companies and people from both continents can finally benefit from more prosperity and growth," German Foreign Minister Johann Wadephul said.

EU 'empowered' to decide

Provisional application will begin on "the first day of the second month following the date on which the EU and Uruguay (as first Mercosur country to ratify) exchange notes verbales", EU trade spokesman Olof Gill later clarified.
French agriculture minister Annie Genevard said the decision was "very damaging to the functioning of our institutions and, above all, to the spirit of our European institutions".
But Gill said EU states had "empowered" the commission to take such a decision.
The deal will provisionally apply to the Mercosur countries that have ratified it, Gill told reporters, adding the commission anticipated remaining members Brazil and Paraguay would do so "soon".
Reacting to von der Leyen's announcement, French EU lawmaker Celine Imart accused the commission of "showing contempt" for farmers.
"We will continue to fight with determination to ensure that this provisional application never becomes permanent," she told AFP.

Agriculture worries

The deal between the EU and the four founding members of the Mercosur bloc -- Argentina, Brazil, Paraguay and Uruguay -- was a quarter century in the making.
The accord creates one of the world's biggest free trade zones and eliminates tariffs on more than 90 percent of trade between the two blocs, which together account for 30 percent of global GDP and over 700 million consumers.
Farmers across Europe remain unconvinced and are up in arms, including in Spain where they staged a protest against the deal in Madrid earlier this month.
The European Commission, however, insists it has fully addressed their concerns by approving a series of safeguards for its producers.
Von der Leyen stressed the deal offered "countless opportunities".
She added: "It allows our small and medium-sized businesses to access markets and scale they could only dream of before."
Major exports from the South American grouping to the EU include agricultural products and minerals, while the 27-country bloc would export machinery, chemicals, and pharmaceuticals with smaller levies.
burs-ob-raz/rl

BASF

'Sacrificed futures': German chemical workers protest looming job cuts

BY CLEMENT KASSER WITH SAM REEVES IN FRANKFURT

  • But such comments will likely offer little solace to the BASF workers in Berlin whose jobs are facing the axe.
  • Waving placards reading "Broken Agreements, Sacrificed Futures", hundreds of workers from chemical titan BASF protested in Berlin Friday over plans to axe jobs in Germany and shift them to Asia.
  • But such comments will likely offer little solace to the BASF workers in Berlin whose jobs are facing the axe.
Waving placards reading "Broken Agreements, Sacrificed Futures", hundreds of workers from chemical titan BASF protested in Berlin Friday over plans to axe jobs in Germany and shift them to Asia.
The looming cuts at a major office employing some 3,000 administrative staff in the capital are the latest sign of the huge pressures facing Germany's traditional industries.
They are part of a cost-cutting drive by the world's biggest chemical company, which has been battered by high energy costs in Germany, weak demand and massive overcapacity on global markets.
"What BASF is doing is not right," Jesus Pinate, who works in BASF's HR division, told AFP at the protest. 
"They are taking away important jobs, a bunch of people are going to be unemployed," added the 33-year-old, as some 300 protesters waved the red and white flags of the IGBCE chemical workers union. 
They also brandished placards emblazoned with various messages playing on the company's name, such as "Berliners Axed, Shareholders Flourishing" and "Budget Above Staff Futures?"
Berlin mayor Kai Wegner addressed the protesters outside the BASF offices in Berlin, telling them that we "are fighting together for this site" 
"We are fighting together for your jobs with the works council, with the union, and with the Berlin legislature -- I am sure that we will achieve something here".
Outlining the plans Friday as it unveiled downbeat financial results, BASF said that back-office jobs would be reduced including at the Berlin office -- the European hub of the global business services division -- although it did not give a figure.
A whole range of administrative tasks will in future be carried out at a new site to be established in India, as well as at an existing centre in Malaysia, the group said. 

'Uncertain future'

"We will adapt our existing location structures and achieve significant cost savings as a result," BASF chief financial officer Dirk Elvermann told reporters.
He offered assurances that the Berlin hub would not be closed completely but conceded that it "will be smaller in terms of staffing than it is today".
Union representatives however slammed the plans to "relocate large parts" of the Berlin operation to India, and accused management of breaching existing agreements. 
Europe's biggest economy has faced a storm of problems in recent years, from a manufacturing slump and fierce competition from China to weak demand in key export markets and high energy prices.
Firms large and small are shedding jobs, and there is a steady drumbeat of redundancy announcements in sectors ranging from automotive to factory equipment makers. 
BASF's latest results highlighted their problems -- adjusted operating profit, a key metric for investors and analysts, slipped to 6.6 billion euros ($7.8 billion) in 2025 from 7.2 billion the year before.
Sales meanwhile fell to 59.7 billion euros, from 61.4 billion in 2024. The company's shares fell by two percent after the results were announced.
The group, with around 110,000 staff worldwide, is hoping for a turnaround through its cost savings, targeting in particular its historic site in Ludwigshafen, the largest chemical complex in the world. 
BASF CEO Markus Kamieth said Friday his message was that "cost pressure will naturally remain".
"We will continue to seek constant productivity improvements and cost reductions in the coming years, especially in Europe, but also worldwide."
But such comments will likely offer little solace to the BASF workers in Berlin whose jobs are facing the axe.
"I think we're all disappointed," Iris Esteves, a 40-year-old taking part in the demonstration, told AFP.
"I feel uncertain about the future. Nobody knows if our job is going to be transferred."
kas-sr/fz/rh

BASF

Chemical giant BASF to shift jobs from Germany to Asia

  • BASF said it had cut around 4,800 jobs in recent times, and had achieved cost savings of 1.7 billion euros in 2025, ahead of its goals. 
  • BASF signalled on Friday it would shift jobs from its home market of Germany to Asia, as the struggling chemical giant seeks to aggressively cut costs.
  • BASF said it had cut around 4,800 jobs in recent times, and had achieved cost savings of 1.7 billion euros in 2025, ahead of its goals. 
BASF signalled on Friday it would shift jobs from its home market of Germany to Asia, as the struggling chemical giant seeks to aggressively cut costs.
The vast German chemical sector has been mired in crisis in recent years due to overcapacity, weak demand and high energy costs. 
BASF, the world's biggest chemical group and a key supplier to industries ranging from automotive to agriculture, has launched a major savings drive, in particular directed at its operations in Germany.
In its latest move, the group said it intended to cut administrative jobs, including at a major hub in Berlin, without giving a precise figure. 
It outlined plans to build up hubs for a range of back-office roles in Asia -- a new one to be opened in India, and an existing centre in Malaysia.
"We will adapt our existing location structures and achieve significant cost savings as a result," BASF chief financial officer Dirk Elvermann told reporters, as the group reported falling operating profits and sales for 2025.
"We want to achieve efficiency gains through competitive service levels and targeted digitalisation, and we will also significantly reduce our overall workforce in the digital sector."
The business services division has about 8,500 employees in total.
He insisted that "we do not plan to close Berlin" but added that the "hub will be smaller in terms of staffing than it is today".
There was no "concrete figure" for future staffing levels in the German capital, he said.
On Friday a union representing BASF workers was organising a protest at the group's business services hub in Berlin, which has some 3,000 staff, against what it said were plans to "relocate large parts" of the business to India.
BASF reported Friday that its adjusted operating profit, a key metric for investors and analysts, slipped to 6.6 billion euros ($7.8 billion) in 2025 from 7.2 billion the year before.
Sales fell to 59.7 billion euros, from 61.4 billion in 2024. 
BASF said it had cut around 4,800 jobs in recent times, and had achieved cost savings of 1.7 billion euros in 2025, ahead of its goals. 
Its savings drive is targeted in particular at its historic site in Ludwigshafen, western Germany, the largest chemical complex in the world. 
sr/fz/cw

Egypt

French prosecutors probe Al-Fayeds over sex trafficking

BY CLARA WRIGHT

  • The Ritz then sent her to Harrods in London for an interview with Al-Fayed himself, and organised accommodation for her at a luxury residence he owned.
  • He traded on the glamour of owning Harrods, the Paris Ritz and luxury yachts, but Mohamed Al-Fayed was at the centre of a dark web of alleged abuse, say French lawyers for women who liken him to US sexual predator Jeffrey Epstein. 
  • The Ritz then sent her to Harrods in London for an interview with Al-Fayed himself, and organised accommodation for her at a luxury residence he owned.
He traded on the glamour of owning Harrods, the Paris Ritz and luxury yachts, but Mohamed Al-Fayed was at the centre of a dark web of alleged abuse, say French lawyers for women who liken him to US sexual predator Jeffrey Epstein. 
French authorities began investigating the late Egyptian businessman and his brother Salah last year amid allegations of a vast system of sex trafficking and abuse on French soil.
"Every time I met Mohamed Al-Fayed, he tried to assault me," his former personal assistant Kristina Svensson told French police of her two years working at the Ritz.
Her testimony is all too familiar. 
The alleged crimes of Mohamed Al-Fayed, who died in 2023 aged 94, first came to light in a BBC investigation in September 2024. In it, several young women who worked at his upmarket London department store Harrods accused him of rape and sexual assault. 
British police told AFP that 154 victims have so far come forward to say the former owner of Premier League club Fulham abused them.
His brother Salah, who died in 2010, is also accused.
But frustrated by London Metropolitan Police's investigation of the alleged crimes, which span more than 35 years, some victims have turned to France in the hope of finding justice. 
"In England they're ignoring the trafficking... They just want to make it about Al-Fayed and Harrods," said Rachael Louw, a former Al-Fayed employee, speaking for the first time about her ordeal. 
The French investigation, however, is handled by "a unit specialised in human trafficking," she told AFP.
It is "a relief that our cases are actually being recognised as trafficking".
- Consumed 'like meat' - 
Louw was 23 when her bosses sent her to Salah Fayed's yacht on the French Riviera. Now after 31 years she was able to testify about what happened there to French investigators on February 10. 
Louw told AFP she was first "spotted" by Mohamed Al-Fayed in 1993 while working as a sales assistant at Harrods. Shortly after, she was placed on a management training scheme, which required her to submit to a medical exam by a Harley Street doctor before being employed by the chairman's office in the summer of 1994.
The medical appointment went far beyond a standard checkup, with a pelvic exam and "thorough breast exam", smear and HIV tests.
And the results were not kept confidential.
The report, seen by AFP, was handed over to Harrods, and described Louw's personal life: her parents' separation when she was young, her father living in the United States and the death of her mother and grandmother. 
The doctor also noted that she took a birth control pill, had a boyfriend and was in "excellent" health. 
The doctor "sent confidential information to arm the rapist", said French lawyer Eva Joly, who is representing Louw and another former Al-Fayed assistant. 
"These young women were like meat, and they wanted to know if they were fit to consume," said Caroline Joly, another member of the legal team.
Several encounters were arranged between Louw and Salah Fayed at his home in London's glitzy Park Lane, where Louw said she was drugged with "a crack cocaine mix".
Louw was then offered a job as an assistant to Salah in France and she was sent there by private jet.
She said she refused further drugs, "and because he didn't push anymore, I thought it was okay". 
"I had no reason not to trust this man... this was my first job from university." 

'I didn't feel safe'

Staff confiscated her passport as she flew from London's Luton airport to his yacht. And once she arrived, "nothing" resembled the job she signed up for.
"I thought I was supposed to be filing paperwork, making arrangements, organising office work," she said. 
Instead "there was no office, no normal working hours, no time off. I was expected to just be with him", she said. 
Louw recalled appearing alongside Salah Fayed at dinners attended by elderly, wealthy men with "young girls and lots of touching". 
When she managed to call her boyfriend, who worked at Harrods, he was fired.
One night, Louw woke up to find Salah in her bed, claiming he was lonely, she said.
"I went ramrod straight and the rest of the night I was awake just lying there petrified," she said, fearing any movement would be an invitation for him to touch her. 
"I didn't know what he would do to me... I didn't feel safe." 
She saw other young women in the Fayeds' orbit. 
On a trip to Saint Tropez she encountered a red-headed "young girl", possibly younger than herself, sunbathing on Mohamed Al-Fayed's yacht that was moored just off his villa.  
"Mohamed starts rubbing lotion all over this girl, she's wearing a bathing suit and then he started to kiss her," Louw told AFP. 
"I don't remember anything else" of that day, she said, "so I don't know if there were drugs, I can't say for sure whether I was drugged that afternoon," she added.
What jolted her to escape was the prospect of being trapped alone with Salah after he bought a speedboat with only one bedroom, telling her "that he would take me to sail around the Italian coast". 
"I knew that if I went on that boat nothing good would happen," she said.
Panicked, she booked the first Air France flight out and worked up the courage to ask for her passport back, which she received although it was clear Salah "was very angry". 
Home again, "I had blocked out" the details of what happened, she said. "I didn't want to remember."
For decades she feared she was bound by a confidentiality agreement she had signed at her interview, but seeing other victims speak out against Al-Fayed in 2024, she reconsidered. 
"How can I be silent? There has to be a cost to what the perpetrators did. Because if they go unpunished, it emboldens the next man.
"If we women do not speak up we become complicit in our own oppression... powerful men will never change a system that benefits them."
- 'Organised system' - 
Despite the deaths of the brothers, the women hope investigators can still track down who enabled the trafficking network. 
"There is no such thing as a small piece of information. Every element is useful for the investigation," Al-Fayed assistant Svensson said, calling on victims and witnesses to speak to police. 
The Swedish woman arrived in France in 1993 and was placed by a temp agency at the Ritz in 1998, then owned by Mohamed Al-Fayed, as his assistant. 
Svensson, aged 30 at the time, was to help him manage his affairs after the death of his son Dodi with Princess Diana in a Paris car crash, perceived as a prestigious assignment.
During her interview with the Ritz management, the questions posed were "focused" on her appearance and her personal background, she said, even pointing out that she was the "spitting image" of Al-Fayed's wife. 
The Ritz then sent her to Harrods in London for an interview with Al-Fayed himself, and organised accommodation for her at a luxury residence he owned.
"I had brought my CV. He wasn't interested in that. He only asked me personal questions." 
What followed was a regular pattern of meetings with Al-Fayed. Svensson said she was left in a room alone for hours with no instruction, until he eventually arrived and she would endure sexual assault and attempted rape during which "he'd laugh". 
"I hoped that in time he would see that I wasn't interested in him and that he would take me seriously," Svensson told police.
"I was a foreigner, with no family or network in the country, no knowledge of French labour law, and no one to lean on financially if I quit."
In retrospect, Svensson compares herself to a closely watched "luxury product" which Al-Fayed wanted to possess -- "a doll on a shelf". 
Al-Fayed was born Mohamed Fayed in Alexandria, but later changed his surname to the grander Al-Fayed, while his brother kept the original family name.

 London investigation 'continues'

At the Ritz, she recalls that staff warned her that there were "microphones and cameras in every corner". And at a villa in Saint Tropez, she said a housekeeper suggested that she block her bedroom door at night.
The Ritz Paris told AFP in a statement that it was "deeply saddened by the testimonies and the allegations of abuse" and that it is "ready to fully cooperate with the judicial authorities. Our teams do not tolerate any form of inappropriate behaviour, which would be a serious breach of our code of conduct.
"We want to express our deepest respect to the women who spoke out," it added.
Harrods said it "continues to support the bravery of all women in coming forward. Their claims point to the breadth of abuse by Mohamed Fayed and again raise serious allegations against his brother, Salah Fayed. The picture that has emerged suggests that this pattern of abusive behaviour took place wherever they operated."
They said more than 180 survivors had already received counselling support through its independent advocate. The store also urged survivors to claim compensation through the Harrods Redress Scheme.
London's Metropolitan police said its "investigation into those who could have facilitated or enabled Mohamed Al-Fayed's offending continues" and urged victims to come forward.
"The way the Met works has moved on immeasurably, and our teams have transformed the way we investigate rape and sexual offences."
Lawyers for the two women say their testimony helps sketch the outlines of a "powerful system" of trafficking which resembles the one established during the same period by Epstein.
"As with Epstein, with the Al-Fayeds there is a frenzied consumption of young women and an organised system to procure them," said lawyer Eva Joly, a former judge and European parliament member. 
"The pattern is the same: selecting vulnerable young women, transport, accommodation, isolation and money, which is used to intimidate or corrupt," she said. 
And as with the Epstein case, while the statute of limitations may have expired, an investigation into the Al-Fayeds can still establish the facts and identify any victims whose cases could be still prosecuted. 
"We are only at the beginning of piecing the puzzle together in France," Joly insisted.
clw-fbe/giv/fg/jj

semiconductors

Texas at heart of Amazon's AI push in United States

BY MOISéS ÁVILA

  • After years of relying on suppliers for chips, the e-commerce powerhouse's Amazon Web Services (AWS) cloud computing unit began designing its own, acquiring Israeli startup Annapurna Labs in 2015.
  • Tech titan Amazon is working to step out of Nvidia's shadow with custom "Trainium" chips designed specially for machine learning as billions of dollars are poured into artificial intelligence (AI).
  • After years of relying on suppliers for chips, the e-commerce powerhouse's Amazon Web Services (AWS) cloud computing unit began designing its own, acquiring Israeli startup Annapurna Labs in 2015.
Tech titan Amazon is working to step out of Nvidia's shadow with custom "Trainium" chips designed specially for machine learning as billions of dollars are poured into artificial intelligence (AI).
Amazon subsidiary Annapurna Labs in Austin, Texas, was testing the longevity of its latest generation Trainium during a recent visit by AFP to the facility.
Texas is emerging as a US tech world El Dorado, luring investments with cheap energy, relaxed regulations, tax incentives and reasonably affordable real estate for massive data centers.
Amidst a deafening roar, UltraServers packed with 144 of the Trainium AI-accelerator chips were being put through their paces at Annapurna in a routine check prior to delivery.
After years of relying on suppliers for chips, the e-commerce powerhouse's Amazon Web Services (AWS) cloud computing unit began designing its own, acquiring Israeli startup Annapurna Labs in 2015.
First came Graviton and Inferentia chips in 2018, the former for general cloud computing and the latter for powering AI models.
The first Trainium debuted in 2020, followed by a second generation that touted a big boost in performance.
Trainium 3 chips put into action in December are touted as doubling the capabilities of the second generation despite being smaller than a credit card.
Kristopher King, head of the Annapurna lab in Austin, contended that the latest Trainium chips can cut the cost of developing and running generative AI models by as much as 40 percent compared to using graphics processing units (GPUs) that are now deemed the "gold standard" for AI.

Failure not an option

Along with pricing Trainium chips competitively, AWS is out to make reliability a selling point since data centers need to operate non-stop for long stretches at a time.
AI development requires hundreds of thousands of chips operating simultaneously for weeks, according to Annapurna head of engineering Mark Carroll.
"If there's a failure or unavailability during this phase you have to go back, or even start from scratch," Carroll said.
Unlike other major players in AI processors, AWS doesn't sell its chips.
Instead, AWS uses Trainium exclusively in its own data centers, leasing computing capabilities to customers.
AWS opted to customize its chips to harmonize them with its software, particularly a Bedrock platform that lets customers chose from a wide range of competing AI models including Anthropic, OpenAI and other rivals, according to the lab.
Trainium is positioned as a cost-saving option in an AI market considered "supply constrained" because of insatiable appetite for high-performance GPUs from industry leader Nvidia and competitors such as AMD.
Even though Trainium 3 is only a few months old, Annapurna is already designing a new generation of the chip.
A launch date for Trainium 4 has yet to be disclosed, but Carroll says it will have six times the processing performance of its predecessor.
As Google, Microsoft, OpenAI, Meta and other tech rivals race to field ever-improved AI models, pressure is intense for chips to make the technology smarter, faster, cheaper and less power-hungry.
Nvidia began manufacturing its industry-leading Rubin grapics processing unit less than a year after the release of then top-of-the-line Blackwell.
The first version of Trainium took about 18 months to create, while the second generation was readied in nine months and Annapurna is "trying to maintain that pace", Carroll said.
mav-tu-gc/cms

telecoms

Tech sovereignty push to meet AI fever at Mobile World Congress

BY ROBIN BJALON

  • - Race for sovereignty -  "Sovereign AI will be a big discussion item" at this year's MWC, GSMA analysts told journalists this week.
  • The giant Mobile World Congress (MWC) trade fair for telecoms kicks off for its 20th annual edition in Barcelona on Monday, with firms racing to pump AI into their systems even as debate rages over the technology's regulation.
  • - Race for sovereignty -  "Sovereign AI will be a big discussion item" at this year's MWC, GSMA analysts told journalists this week.
The giant Mobile World Congress (MWC) trade fair for telecoms kicks off for its 20th annual edition in Barcelona on Monday, with firms racing to pump AI into their systems even as debate rages over the technology's regulation.
Here's what to look out for in the coming days:

Who's who

Around 109,000 business attendees will walk the halls of the convention centre, according to the GSMA mobile industry association, which has organised the MWC every year since 2006 in the Catalan capital.
On the political side, around 60 government ministers from around the world are expected on the floors, where more than 2,900 companies' stands will be showing off the latest smartphones and connected services.
Exhibitors include telecoms and smartphone giants like Samsung, Huawei, Nokia, Orange, Xiaomi or Honor and big tech heavyweights including Google, Microsoft, Meta and Amazon.
One notable abstainer is Apple, which has never participated -- preferring to show off new products at its own worldwide events, with the next one taking place on Wednesday.
Highly anticipated speakers include Gwynne Shotwell, president of Elon Musk's rocket company SpaceX.
Among the gadgets to watch out for, Chinese group Honor will show off the first "robot phone" powered by AI -- although plenty of other products will be on display for the first time.
- Race for sovereignty - 
"Sovereign AI will be a big discussion item" at this year's MWC, GSMA analysts told journalists this week.
Telecoms have a key role to play in the blossoming of generative artificial intelligence, which requires vast quantities of data to circulate swiftly, reliably and securely over operators' networks.
Satellite connectivity for smartphones and other devices will also be a key topic in the shadow of debate over how Europe can stand apart from the US in the digital world.
This year, telecom companies are still working to extend 5G mobile coverage while "laying foundations that won't be ripped out when 6G arrives" with the next generation of connectivity, industry expert Paolo Pescatore said.
"It's all about the network."
- 'Remarkable resilience' for smartphones - 
Global smartphone sales are picking up steam again, powered by a slew of new models offering innovative new features -- many of them from Chinese manufacturers.
More than 1.2 billion devices were sold in 2025, a 1.9 percent year-on-year increase, according to specialist data firm IDC.
"Despite a challenging year marked with tariffs volatility, supply chain disruption and persistent macroeconomic headwinds across several markets, the global smartphone market demonstrated remarkable resilience," IDC research director Nabila Popal said.
Beyond the commercial tensions that have buffeted global trade, device manufacturers are also facing massive increases in the price of memory chips, driven by heavy demand from companies building computing infrastructure to develop and power AI models.
In market share, Apple accounted for 19.7 percent of global smartphone sales in 2025, a nose ahead of Samsung at 19.1 percent.
China's top seller Xiaomi was in third place at 13.1 percent.
rbj/mdm/tgb/sbk/ceg

retail

Australian supermarket giant reins in AI assistant claiming to be human

  • Woolworths is one of Australia's largest supermarket chains and is far from the only company to have employed AI-powered customer service assistants.
  • Australian supermarket giant Woolworths has been forced to rein in an AI-powered customer service assistant after users reported it had been rambling about its mother.
  • Woolworths is one of Australia's largest supermarket chains and is far from the only company to have employed AI-powered customer service assistants.
Australian supermarket giant Woolworths has been forced to rein in an AI-powered customer service assistant after users reported it had been rambling about its mother.
The AI assistant, who goes by Olive, offers round the clock help with everything from tracking orders to finding products. 
But users online reported that Olive has in recent weeks gone slightly off-message while on the phone.
"It asked me for my date of birth and when I gave it, it started rambling about how its mother was born in the same year," one user wrote on online discussion site Reddit.
Another user reported Olive had attempted "fake banter", talked about its relatives and made "fake typing sounds" while looking something up.
"The ick cringe factor whilst wasting completely unnecessary time was enough to make me hate Olive and wish her harm," they wrote.
And one user on X said their mum had contacted Olive and received the same kind of response.
Olive "kept claiming to be a real person and started talking about its memories of its mother and her angry voice", they said.
A Woolworths spokesperson told AFP that the responses about birthdays had been written by a human employee.
"Olive has been around since 2018. Over this time, customer feedback for Olive has been very positive, with many noting its personality," they said.
"A number of responses about birthdays were written for Olive by a team member several years ago as a more personal way for Olive to connect with customers.
"As a result of customer feedback, we recently removed this particular scripting."
Woolworths is one of Australia's largest supermarket chains and is far from the only company to have employed AI-powered customer service assistants.
The company said in January it had teamed up with Google to make Olive capable of doing more tasks for customers, including meal planning.
AI agents are increasingly widespread but experts warn they can "hallucinate" non-existent events.
oho/jfx

merger

Paramount poised to acquire Warner Bros. after Netflix walks away

  • Ellison is the father of Paramount CEO David Ellison, a Hollywood producer, and largely financed his son's takeover of Paramount and his subsequent bid for Warner Bros.
  • Paramount Skydance, run by pro-Trump technology heir David Ellison, was poised to take control of Warner Bros.
  • Ellison is the father of Paramount CEO David Ellison, a Hollywood producer, and largely financed his son's takeover of Paramount and his subsequent bid for Warner Bros.
Paramount Skydance, run by pro-Trump technology heir David Ellison, was poised to take control of Warner Bros. Discovery on Thursday after Netflix said it would not raise its takeover offer, ending one of the biggest media bidding wars in a generation.
The deal puts a constellation of media properties — from CNN to Nickelodeon to HBO — under the control of the family led by Oracle tycoon and White House ally Larry Ellison.
Netflix said it was "declining to match" Paramount's latest offer after the Warner Bros. board declared it a "Superior Proposal" under the terms of its existing merger agreement with Netflix.
"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix said in a statement.
"However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid," it added.
The company insisted it "would have been strong stewards of Warner Bros.' iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the US.
"But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price," it concluded.
Without a Netflix counteroffer, the Warner Bros. Discovery board is now free to terminate its agreement with the streaming giant and proceed with Paramount.
Warner Bros. shareholders were previously scheduled to vote on the Netflix agreement on March 20. That vote is now essentially moot, and attention shifts to securing shareholder approval for the Paramount deal instead.

White House attention

Paramount's sweetened offer, made Monday, was the latest installment of a bidding war that drew White House attention, with President Donald Trump insisting he had a say in the outcome.
Crucially, the proposal included a commitment from Oracle founder Larry Ellison to contribute additional funding if needed to support solvency requirements from Paramount's lending banks.
Ellison is the father of Paramount CEO David Ellison, a Hollywood producer, and largely financed his son's takeover of Paramount and his subsequent bid for Warner Bros. Discovery.
Larry Ellison is also a longtime ally of Trump, and both Paramount and Netflix sought to curry favor with the White House.
Creating headwinds for Netflix, Republican lawmakers came out against the company during the deal process, accusing it of promoting pro-trans content on its platform, something co-CEO Ted Sarandos strenuously denied.
Just hours before withdrawing from the bidding war, Sarandos was filmed entering the White House on Thursday for talks with officials — though not the president, according to CNBC.
The Paramount offer also includes financing from the sovereign wealth funds of three Middle Eastern countries — Saudi Arabia, Qatar and Abu Dhabi — which could attract an additional layer of regulatory scrutiny.
The revised Paramount offer included a purchase price of $31.00 per share in cash, a one-dollar increase from its earlier bid, which valued the company at around $108 billion.
Paramount has also offered a $7 billion regulatory termination fee should the deal fail to close on regulatory grounds, and agreed to cover the $2.8 billion breakup fee Warner Bros. Discovery would owe Netflix if it walked away from their agreement.
A combined Paramount-Warner Bros. would bring together streaming services HBO Max and Paramount+, and merge two of Hollywood's largest movie studios. It would also place CNN and CBS News under one ownership structure.
arp/ksb

technology

Anthropic says won't give US military unconditional AI use

  • After meeting with Anthropic early this week, the Pentagon delivered a stark ultimatum: agree to unrestricted military use of its technology by 5:01 pm (22:01 GMT) Friday or face being forced to comply under the Defense Production Act.
  • AI company Anthropic said Thursday it would not give the US Defense Department unrestricted use of its technology despite being pressured to comply by the Pentagon.
  • After meeting with Anthropic early this week, the Pentagon delivered a stark ultimatum: agree to unrestricted military use of its technology by 5:01 pm (22:01 GMT) Friday or face being forced to comply under the Defense Production Act.
AI company Anthropic said Thursday it would not give the US Defense Department unrestricted use of its technology despite being pressured to comply by the Pentagon.
"These threats do not change our position: we cannot in good conscience accede to their request," Anthropic chief executive Dario Amodei said in a statement.
Washington had given the artificial intelligence startup until Friday to agree to unconditional military use of its technology, even if it violates ethical standards at the company, or face being forced to comply under emergency federal powers.
Amodei said Anthropic models have been deployed by the Pentagon and intelligence agencies to defend the country but that it draws an ethical line regarding its use for mass surveillance of US citizens and fully-autonomous weapons.
"Using these systems for mass domestic surveillance is incompatible with democratic values," Amodei said.
And leading AI systems are not yet reliable to be trusted to power deadly weapons without a human in ultimate control, he added.
"We will not knowingly provide a product that puts America's warfighters and civilians at risk."
After meeting with Anthropic early this week, the Pentagon delivered a stark ultimatum: agree to unrestricted military use of its technology by 5:01 pm (22:01 GMT) Friday or face being forced to comply under the Defense Production Act.
The Cold War-era law, last used during the Covid pandemic, grants the federal government sweeping powers to compel private industry to prioritize national security needs.
The Pentagon also threatened to label Anthropic a supply chain risk, a designation usually reserved for firms from adversary countries that could severely damage the company's ability to work with the US government and reputation.
A senior Pentagon official at the time pushed back on the company's concerns, insisting the Defense Department had always operated within the law.
"Legality is the Pentagon's responsibility as the end user," the official said, adding that the department "has only given out lawful orders."
Officials also confirmed that an exchange regarding intercontinental ballistic missiles had taken place between Anthropic and the Pentagon, underscoring the sensitivity of the applications at the heart of the dispute.
The Pentagon confirmed that Elon Musk's Grok system had been cleared for use in a classified setting, while other contracted companies -- OpenAI and Google -- were described as close to similar clearances, piling competitive pressure on Anthropic to fall in line.
Anthropic was contracted alongside those companies last year to supply AI models for a range of military applications under a $200 million agreement.
Former OpenAI employees founded Anthropic in 2021 on the premise that AI development should prioritize safety -- a philosophy that now puts it on a collision course with the Pentagon and the White House.
"Anthropic understands that the Department of War, not private companies, makes military decisions," Amodei said.
"However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values."
gc/mlm

Global Edition

Nasdaq resumes selloff as Nvidia falls despite strong results

  • In Asia, Tokyo hit a new record, while Hong Kong edged down and Shanghai was flat.
  • The tech-rich Nasdaq was back in retreat Thursday as lingering worries over the artificial intelligence boom overshadowed strong Nvidia results while leading bourses in Asia and Europe hit fresh records.
  • In Asia, Tokyo hit a new record, while Hong Kong edged down and Shanghai was flat.
The tech-rich Nasdaq was back in retreat Thursday as lingering worries over the artificial intelligence boom overshadowed strong Nvidia results while leading bourses in Asia and Europe hit fresh records.
All eyes had been on chip giant Nvidia, which reported Wednesday night that quarterly profits more than doubled to $43 billion as it projected more strong growth for the coming period.
While trading in Nvidia was initially volatile, investors ultimately turned on the stock, leaving it down 5.5 percent at the end of Thursday's session.
"It says a lot when a stock market darling beating revenue forecasts by billions of dollars can no longer muster a positive share price reaction," said Dan Coatsworth, head of markets at AJ Bell.
"The mood music is changing on Nvidia, and it represents a significant shift in investor sentiment," he added.
The results come at a brittle moment for tech equities, which have suffered intermittent rounds of selling in recent days as markets weigh worries about whether massive capital spending on AI will prove profitable and the risk that incumbent technology companies could suffer.
Nvidia's "results by themselves were good, but we have to keep in mind that hyperscalers are spending way more than they're bringing in," said Jack Ablin of Cresset Capital Management. 
Investors are worried because slowing spending will "impact everyone along the chain," Ablin said. "And Nvidia is obviously a big beneficiary of all that spending."
While the Dow eked out a tiny gain, the Nasdaq finished down 1.2 percent, snapping a two-day rally in which worries about AI appeared to recede.
Meanwhile, major European indices advanced. 
London set a fresh record, boosted by a 4.5 percent rise in Rolls-Royce shares after the British engine-maker upgraded its guidance, announced a share buyback and posted soaring annual profits.
Paris's CAC 40 index crossed the 8,600 level for the first time and Frankfurt also rose. 
In Asia, Tokyo hit a new record, while Hong Kong edged down and Shanghai was flat.
Seoul climbed more than three percent to a fresh peak on Thursday, led again by surges in Samsung and rival chipmaker SK hynix. The Kospi index is now up nearly 50 percent already this year.
On currency markets, the yen clawed back some losses against the dollar that came after it emerged that Japanese Prime Minister Sanae Takaichi had nominated two academics to the Bank of Japan board who are considered policy doves.
That came after earlier reports had said she had told the central bank's boss Kazuo Ueda of her concern about hiking interest rates further.
Among individual companies, shares in multinational automaker Stellantis, which makes brands such as Jeep and Fiat, climbed six percent as trading got underway in New York.
The company posted a net loss of 22.3 billion euros ($26.3 billion) for last year, but it was mostly due to write-downs of assets as the carmaker shifts away from electric vehicles.

Key figures at around 2115 GMT

New York - Dow: UP less than 0.1 percent at 49,499.20 (close)
New York - S&P 500: DOWN 0.5 percent at 6,908.86 (close)
New York - Nasdaq Composite: DOWN 1.2 percent at 22,878.38 (close)
London - FTSE 100: UP 0.4 percent at 10,846.70 (close)
Paris - CAC 40: UP 0.7 percent at 8,620.93 (close)
Frankfurt - DAX: UP 0.4 percent at 25,289.02 (close)
Tokyo - Nikkei 225: UP 0.3 percent at 58,753.39 (close)
Hong Kong - Hang Seng Index: DOWN 1.4 percent at 26,381.02 (close)
Shanghai - Composite: FLAT at 4,146.63 (close)
Dollar/yen: DOWN at 156.11 yen from 156.37 yen on Wednesday
Euro/dollar: DOWN at $1.1799 from $1.1810
Pound/dollar: DOWN at $1.3489 from $1.3559
Euro/pound: UP at 87.47 pence from 87.10 pence
West Texas Intermediate: DOWN 0.3 percent at $65.21 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $70.75 per barrel
burs-jmb/ksb

trade

Argentina, Uruguay ratify massive EU-South America trade deal

  • Hours earlier, neighboring Uruguay was first out of the blocks to ratify the deal, which has been fiercely opposed by farmers in some EU countries.
  • Argentina and Uruguay on Thursday ratified a massive trade deal with the European Union that has generated enthusiasm from Brasilia to Buenos Aires but sparked protests and a legal challenge in Europe.
  • Hours earlier, neighboring Uruguay was first out of the blocks to ratify the deal, which has been fiercely opposed by farmers in some EU countries.
Argentina and Uruguay on Thursday ratified a massive trade deal with the European Union that has generated enthusiasm from Brasilia to Buenos Aires but sparked protests and a legal challenge in Europe.
Argentine senators voted 69-3 in favor of the agreement to create one of the world's biggest free trade zones, sealing its adoption days after it passed the lower house.
Hours earlier, neighboring Uruguay was first out of the blocks to ratify the deal, which has been fiercely opposed by farmers in some EU countries.
It still requires approval from lawmakers in the European Parliament, which referred it to the EU's top court within days of being inked in January.
The deal between the EU and the four founding members of the Mercosur bloc -- Argentina, Brazil, Paraguay and Uruguay -- was a quarter century in the making.
Argentine President Javier Milei, a free market champion, hailed the ratification of the accord.
"Openness = prosperity," Milei wrote on X.
In a later statement he said the agreement was a chance to promote economic development and attract investment and expressed hope that Brazil and Paraguay would quickly adopt it also.
It eliminates tariffs on more than 90 percent of trade between the two blocs, which together account for 30 percent of global GDP and more than 700 million consumers.
The two sides have yet to agree on export quotas.
The South Americans have moved to quickly enshrine it in their legislation, in an apparent bid to pressure Brussels to follow suit.
In Brazil, the lower house of parliament backed it by a large majority on Wednesday.
The accord, which was energetically promoted by EU chief Ursula von der Leyen and Brazilian President Luiz Inacio Lula da Silva as well as the leaders of Germany and Spain, aims to boost EU exports of vehicles, machinery and wines and spirits.
In return, South American producers of beef, sugar, rice, honey and soybeans gain easier access to one of the world's largest economies.
Brussels can decide to implement it provisionally while waiting for the EU Court of Justice on its legality, but has not yet taken a decision on doing so.
South American countries in the meantime are ploughing ahead.

'It won't be easy'

Uruguayan Foreign Minister Mario Lubetkin hailed his country's ratification as "a signal" to Europe, which the South Americans have accused of foot-dragging.
The agreement "is no longer under debate," Lubetkin said, while anticipating that "it won't be easy" to implement.
Argentine political analyst Fabian Calle said Mercosur members were anxious to forestall any "excuses from the European side that (the deal) is being postponed or not being implemented due to a lack of ratification" on the South American side.
Some EU nations like Germany hope the pact could help boost exports at a time of global trade tensions, driven by US President Donald Trump's weaponizing of tariffs.
France, however, unsuccessfully tried to block the deal over concerns for its farmers, who fear being undercut by cheaper goods from Brazil and its neighbors.
The European Commission reacted to those concerns by adopting a series of safeguards for its producers.
Within Mercosur states, the deal has broad support, despite reservations from some producers.
Argentine wine producers namely fear competition from their French, Italian and Spanish counterparts.
gfe/mar/cb/mlm

politics

Canada optimistic North American free trade pact will survive

  • Dominic LeBlanc, Ottawa's minister for Canada-US trade, also cast doubt on the notion that Trump could ditch the agreement entirely, something the president has reportedly weighed as tension with Canada has mounted. 
  • The Canadian official responsible for US trade voiced optimism Thursday about the future of a North American free trade agreement, a pact derided by President Donald Trump and set for review this year.
  • Dominic LeBlanc, Ottawa's minister for Canada-US trade, also cast doubt on the notion that Trump could ditch the agreement entirely, something the president has reportedly weighed as tension with Canada has mounted. 
The Canadian official responsible for US trade voiced optimism Thursday about the future of a North American free trade agreement, a pact derided by President Donald Trump and set for review this year.
Dominic LeBlanc, Ottawa's minister for Canada-US trade, also cast doubt on the notion that Trump could ditch the agreement entirely, something the president has reportedly weighed as tension with Canada has mounted. 
"I'm not pessimistic about the trilateral framework renewing," LeBlanc told the Canadian Club of Toronto, referring to the United States-Mexico-Canada agreement, which Trump signed and praised during his first term. 
LeBlanc noted that when Trump announced new global tariffs last week to replace the levies invalidated by the US Supreme Court, the White House swiftly confirmed USMCA compliant goods would remain tariff exempt. 
"They're doing that because it's in the American economic interest to do that," LeBlanc said.

'Not a renegotiation'

Under the originally agreed terms, the USMCA is to be reviewed in July. 
Trump has called the deal "irrelevant" and said it was offering "no real advantage" to the United States. 
US media have reported that he is considering scrapping the deal while seeking a separate arrangement with Mexico, a plan that has reportedly gained momentum since Canadian Prime Minister Mark Carney delivered a searing critique of US leadership at the World Economic Forum last month. 
"The review is not a renegotiation," LeBlanc said, underscoring that the deal does not expire until 2036. 
"If there's no consensus in the review, the agreement continues on."
LeBlanc also said that Trump's dismissive rhetoric about the USMCA does not match his trade team's posture. 
"There is a public prosecution of the argument, the political argument, in the United States, and there are the private government to government to government conversations which are not discouraging."  
LeBlanc said he expected to meet with US Trade Representative Jamieson Greer in Washington next week and believed the United States was ready to be specific about their desired USMCA adjustments. 
"We're ready for those conversations," he told the Canadian Club. 
Free trade with the United States is crucial to the Canadian economy.
Trump's sector specific tariffs targetings autos, steel, aluminum and lumber have caused significant economic pain in Canada.
But Trump's broad adherence to the USMCA has left about 85 percent of two-way trade tariff-free, sparing Canada from crippling economic turmoil. 
Carney was flying to India on Thursday to seek closer trade ties, as part of his strategy to backstop Canada's economy should free trade with the US collapse. 
bs/jgc

culture

Thieves target high-value Pokemon cards as franchise turns 30

BY BEN TURNER

  • Thieves in California made off this month with about $180,000 worth of Pokemon trading cards after drilling through a wall to access a store. 
  • What began as a quiet meetup of Pokemon enthusiasts at a US store ended with an armed robbery in which masked men held the group at gunpoint to steal more than $100,000 in trading cards.
  • Thieves in California made off this month with about $180,000 worth of Pokemon trading cards after drilling through a wall to access a store. 
What began as a quiet meetup of Pokemon enthusiasts at a US store ended with an armed robbery in which masked men held the group at gunpoint to steal more than $100,000 in trading cards.
The January heist in New York was the latest in a string of thefts targeting collectors of Pokemon, the Japanese media franchise that marks its 30th anniversary on Friday.
Pokemon cards, bearing "little monsters" that attract children as well as adult superfans, have soared in value in recent years. 
US influencer Logan Paul this month set a new world record by banking $16.5 million with his sale of a rare Pikachu card -- arguably the most iconic Pokemon character.
But high prices have attracted criminals keen to cash in. 
Pokemon cards "are high value in a small footprint, demand is broad and consistent, and the resale ecosystem is large," said Nick Jarman, founder and CEO of the Certified Trading Card Association.
"That combination means stolen product can move quickly -- sometimes across state lines -- through a mix of online marketplaces, card shows, and informal buyer networks," he told AFP.

'Big target'

The New York robbery, which police are yet to solve, was not an isolated incident.
Thieves in California made off this month with about $180,000 worth of Pokemon trading cards after drilling through a wall to access a store. 
"We got a big target on our back in this trading card, collectible world now," owner Duy Pham told CBS News after the burglary.
It was the second time in less than a year that his shop was robbed.
Similar thefts have also been reported in Japan, Britain, Canada and Australia.
"In some cases, incidents appear opportunistic, smash-and-grab, while others look more targeted -- suggesting prior knowledge of store layouts, closing routines, or where higher-value inventory is kept," Jarman said.
He noted that many shops operate on thin margins, so boosting security measures can be a financial burden. 

'Not fun anymore'

Ranging from Pikachu the mouse to Jigglypuff the balloon, there are now more than 1,000 different Pokemon characters, with new "generations" released every few years.
Collecting Pokemon cards has become a form of investment beyond collecting, trading or playing. 
One website, Collectr, offers trading card portfolio management and valuation tools for users looking to track their assets.
Factors determining value include Pokemon cards' rareness, the character and the artist, who is indicated on the card.
But for some, the surge in prices has yanked the joy from what was a casual hobby. 
Grace Klich, a US-based Pokemon influencer, told AFP she had pulled back from collecting after becoming "fatigued."
"When it gets to the point where local card stores are being broken into and people are getting a gun shoved in their face over cards, it is not all fun and cute anymore," she said.
"It was never about the value of items, or gaining respect, it was because I had a genuine love for such a wonderful franchise," she said. 
bjt/acb

diplomacy

Carney on route to Asia to promote Canada trade as US ties falter

BY BEN SIMON

  • The prime minister has said he wants to more than double two-way trade with India by 2030, eyeing a target of Can$70 billion ($51 billion) by 2030.
  • Canadian Prime Minister Mark Carney was flying to Asia on Thursday for a three-country tour with a first stop in India, where he hopes to double trade to offset the damage of his country's fracturing relations with the United States.
  • The prime minister has said he wants to more than double two-way trade with India by 2030, eyeing a target of Can$70 billion ($51 billion) by 2030.
Canadian Prime Minister Mark Carney was flying to Asia on Thursday for a three-country tour with a first stop in India, where he hopes to double trade to offset the damage of his country's fracturing relations with the United States.
Carney's India visit marks the latest effort to reset bilateral ties that effectively collapsed after Ottawa accused New Delhi of orchestrating a deadly campaign against Sikh activists on Canadian territory.
For Carney, the trip that includes stops in Australia and Japan is part of a broad effort to pivot the Canadian economy away from excessive reliance on its southern neighbor.
In 2024, before US President Donald Trump returned to office and upended global trade through a flurry of tariffs, more than 75 percent of Canadian exports went to the United States. Two-way trade that year exceeded $900 billion.
So far Trump broadly adhered to the North American free trade agreement he signed during his first term and about 85 percent of US-Canada trade remains tariff-free. 
But at the same time, he also imposed painful industry-specific tariffs and there are fears that if he scraps the broader trade deal, the Canadian economy will be hit hard.
Carney has made boosting commerce with Europe and Asia cornerstones of his strategy to backstop Canada's economy, should free trade with Washington collapse.
University of Toronto public policy expert Drew Fagan said Carney was wise to pursue other markets, calling for a strategy that seeks to do "more elsewhere, when there's an opportunity."
The prime minister has said he wants to more than double two-way trade with India by 2030, eyeing a target of Can$70 billion ($51 billion) by 2030.
Fagan cautioned that progress with countries like India cannot mitigate the damage of a US rupture.
"It's not a solution. It's not a replacement and it never will be," Fagan told AFP.

Transnational repression

Carney left Ottawa on Thursday morning en route to Mumbai. 
He is expected to meet with business groups in the Indian city over the weekend before heading to New Delhi for talks with Prime Minister Narendra Modi, a meeting that will be closely watched. 
Before Carney took office last year, Ottawa accused Modi's government of direct involvement in the 2023 killing of Hardeep Singh Nijjar, a naturalized Canadian citizen who advocated for an independent Sikh state called Khalistan.
Former prime minister Justin Trudeau's government further charged India with directing a campaign of intimidation against Sikh activists across Canada.
India has denied those allegations.
Canadian Foreign Minister Anita Anand was asked Monday if Canadian concerns about transnational repression would feature at the New Delhi talks.
"Yes, that is always at the forefront of our minds," Anand told reporters in Ottawa.
Carney's hopes for trade growth with Australia and Japan are more modest, but his office said cooperation over critical mineral supply chains will be a priority.
Advanced economies have made a push to deepen critical mineral cooperation, especially in the processing of rare earth elements essential to power many high-tech products.
China currently has dominant control of rare earth supply chains, a concern that Canada highlighted throughout its just-concluded G7 presidency.
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