Congress

US government shuts down but quick resolution expected

BY FRANKIE TAGGART

  • If the House approves the package as expected early next week, funding would be restored within days, limiting the practical impact of the shutdown on government services, contractors and federal workers.
  • The US government entered a partial shutdown Saturday as a midnight funding deadline passed without Congress approving a 2026 budget, though disruption was expected to be limited with the House set to move early next week to ratify a Senate-backed deal.
  • If the House approves the package as expected early next week, funding would be restored within days, limiting the practical impact of the shutdown on government services, contractors and federal workers.
The US government entered a partial shutdown Saturday as a midnight funding deadline passed without Congress approving a 2026 budget, though disruption was expected to be limited with the House set to move early next week to ratify a Senate-backed deal.
The funding lapse followed a breakdown in negotiations driven by Democratic anger over the killing of two protesters in Minneapolis by federal immigration agents, which derailed talks over new money for the Department of Homeland Security (DHS).
"Instead of going after drug smugglers, child predators, and human traffickers, the Trump Administration is wasting valuable resources targeting peaceful protestors in Chicago and Minneapolis," Senate Democratic Minority Whip Dick Durbin posted on social media.
"This Administration continues to make Americans less safe."
Roughly three-quarters of federal operations are affected, potentially triggering shutdown procedures across a wide range of agencies and operations, from education and health to housing and defense. 
Federal departments were expected to begin implementing shutdown plans overnight, but congressional leaders in both parties said the Senate's action made a short disruption far more likely than a prolonged impasse.
If the House approves the package as expected early next week, funding would be restored within days, limiting the practical impact of the shutdown on government services, contractors and federal workers.
If the shutdown extended more than a few days, however, tens of thousands of federal workers would risk being put on unpaid leave or working without their money until funding is restored.
Late Friday, the Senate passed a package clearing five outstanding funding bills to cover most federal agencies through September, along with a two-week stopgap measure to keep DHS operating while lawmakers continue negotiations over immigration enforcement policy.
The House of Representatives was out of session as the deadline expired and is not scheduled to return until Monday. 
President Donald Trump backed the Senate deal and urged swift House action, signaling he wanted to avoid a prolonged shutdown -- the second of his second term -- after a record-length stoppage last fall disrupted federal services for more than a month.

Political backlash

The Senate breakthrough came only after Republican Senator Lindsey Graham of South Carolina lifted a procedural block that had stalled the package late Thursday. 
Graham had objected to provisions in the DHS stopgap and to House-passed language repealing an earlier measure that allowed senators to sue the Justice Department if their phone records were seized during past investigations.
Graham agreed to release his hold after Senate leaders committed to holding future votes on legislation he is sponsoring to crack down on so-called "sanctuary cities" that refuse to cooperate with federal deportation operations.
Democrats, meanwhile, have remained united in opposing new DHS funding without changes to immigration enforcement following the fatal shootings of Alex Pretti and Renee Good in Minneapolis.
Their deaths intensified scrutiny of federal agents' conduct and hardened opposition to approving money for immigration agencies without new guardrails.
Party leaders have accused immigration authorities of operating with insufficient oversight and have demanded reforms including tighter warrant requirements, limits on certain enforcement tactics and greater accountability for agents in the field.
Much of the US media interpreted the White House's willingness to split DHS funding from the broader budget package as a recognition that the administration needed to recalibrate its deportation strategy after the political backlash over the Minneapolis deaths.
Republicans are divided over that approach. 
While some lawmakers have acknowledged the need for changes following the shootings, conservatives have warned against concessions they say could weaken immigration enforcement. 
Several have signaled they will push their own priorities during the upcoming DHS negotiations, including measures targeting states and cities that limit cooperation with federal authorities.
Although Congress has already approved six of the 12 annual funding bills, those measures account for only a minority of discretionary spending. The remaining bills fund large swaths of the federal government, making the lapse significant if it ends up being prolonged.
The Office of Management and Budget on Friday night issued a memo ordering agencies to prepare for an “orderly shutdown,” saying: 
“It is our hope that this lapse will be short.”
ft/sla

manufacturing

China factory activity loses steam in January

  • The country's economy grew five percent in 2025, official data showed this month, among its slowest rates of growth in decades.
  • China's factory activity slowed in January, official data showed Saturday, missing forecasts after a brief rise into positive territory at the end of last year.
  • The country's economy grew five percent in 2025, official data showed this month, among its slowest rates of growth in decades.
China's factory activity slowed in January, official data showed Saturday, missing forecasts after a brief rise into positive territory at the end of last year.
A key measure of industrial health, the manufacturing purchasing managers' index slipped to 49.3 this month, the National Bureau of Statistics (NBS) said.
The reading fell below the 50-point mark that divides expansions and contractions, also significantly behind the 50.1 forecast by a Bloomberg survey of economists.
NBS statistician Huo Lihui said in a statement that the data reflected "insufficient effective market demand", as well as a "traditional off-season" for certain manufacturing sectors.
December's slight uptick at 50.1 had snapped an extended negative streak that began in April.
The world's second-largest economy is facing a persistent domestic consumer slump, weighing on activity even as exports remain robust.
The decline in factory activity shown Saturday was the result of "weak domestic demand", Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note.
"Economic activity may soften in (the first quarter)," Zhang said.
Last year, exports represented the "pillar of growth", he said, adding that the sector's "sustainability is very important for the growth outlook".
China achieved a historic trade surplus of $1.2 trillion last year -- a key strong spot as consumer sentiment at home remained subdued.
Beijing has pledged "forceful" measures to boost demand in coming years, with some key policies expected to be announced in March with the release of the government's newest "five-year plan".
A protracted debt crisis in China's vast real-estate sector has discouraged would-be homebuyers from investing in property -- long a key store of wealth.
Complicating the challenges are demographic trends, with a shrinking and ageing population weakening the outlook for a future spending boom.
The country's economy grew five percent in 2025, official data showed this month, among its slowest rates of growth in decades.
Leaders are expected to announce a similar growth target for this year at a key annual political gathering in March.
pfc/cms

US

Maersk to take over Panama Canal port operations from HK firm

  • CK Hutchison's contract to operate the ports had "disproportionate bias" toward the Hong Kong-based company, according to the court ruling that annulled the deal.
  • Danish firm Maersk will temporarily take over operation of two ports on the Panama Canal from Hong Kong company CK Hutchison, whose concession has been annulled, the Panama Maritime Authority (AMP) said Friday.
  • CK Hutchison's contract to operate the ports had "disproportionate bias" toward the Hong Kong-based company, according to the court ruling that annulled the deal.
Danish firm Maersk will temporarily take over operation of two ports on the Panama Canal from Hong Kong company CK Hutchison, whose concession has been annulled, the Panama Maritime Authority (AMP) said Friday.
Panama's Supreme Court on Thursday invalidated Hutchison's contract following repeated threats from President Donald Trump that the United States would seek to reclaim the waterway he said was effectively being controlled by China.
The canal, which handles about 40 percent of US container traffic and five percent of world trade, was built by the United States, which operated it for a century before ceding control to Panama in 1999.
CK Hutchison's contract to operate the ports had "disproportionate bias" toward the Hong Kong-based company, according to the court ruling that annulled the deal.
On Friday, the AMP said port operator APM Terminals, part of the Maersk Group, would be a "temporary administrator" of the Balboa and Cristobal ports on either end of the waterway.
It would take over from the Panama Ports Company (PPC) -- a subsidiary of CK Hutchison Holdings -- which has managed the ports since 1997 under a concession renewed in 2021 for 25 years.
The United States on Friday welcomed the decision, but Chinese foreign ministry spokesman Guo Jiakun said Beijing "will take all measures necessary to firmly protect the legitimate and lawful rights and interests of Chinese companies."
For its part, PPC said the ruling "lacks legal basis and endangers...the welfare and stability of thousands of Panamanian families" who depend on its operations.

Continuity

The annulment of the PPC contract was requested last year by the office of the comptroller -- an autonomous body that examines how government money is spent.
It argued the concession was "unconstitutional" and said Hutchison had failed to pay the Panamanian state $1.2 billion due.
The PPC argues it is the only port operator in which the Panamanian state is a shareholder and says it has paid the government $59 million over the past three years.
"It is very hard to imagine that (the court ruling) was not influenced by persistent US pressure on canal ownership," said Kelvin Lam, a China-focused economist at the consultancy Pantheon Macroeconomics. 
He said foreign investors would likely be increasingly cautious about committing capital "to strategic infrastructure projects in the United States' backyard."
Panama has always denied Chinese control over the 50-mile waterway, which connects the Atlantic and Pacific oceans and is used mainly by the United States and China.
Panamanian President Jose Raul Mulino, who has called the CK Hutchison contract "extortionate," said Friday the canal will continue operating "without disruption."
He added there would be a transition period leading up to a new concession "under terms and conditions favorable to our country."
Mulino did not specify when a new concession will be put on offer.
APM Terminals said in a statement earlier Friday it was willing to operate the ports "to support operational continuity" and to mitigate any risks to essential services.
CK Hutchison Holdings -- founded by Hong Kong's richest man Li Ka-shing -- announced in March 2025 it would offload a 90 percent stake in PPC and sell a slew of other non-Chinese ports to a group led by US asset manager BlackRock.
But the transaction fizzled out after China protested.
jjr/axm/nn/bgs/sla

fed

Trump picks former US Fed official as next central bank chief

BY BEIYI SEOW

  • Trump's attempt to oust Fed Governor Lisa Cook, and his administration's investigation into Powell over renovation costs at the bank, have sparked worries about the institution's insulation from politics.
  • President Donald Trump said Friday he would nominate former Federal Reserve governor Kevin Warsh to be the next US central bank chief, a move that has sparked cautious optimism among observers.
  • Trump's attempt to oust Fed Governor Lisa Cook, and his administration's investigation into Powell over renovation costs at the bank, have sparked worries about the institution's insulation from politics.
President Donald Trump said Friday he would nominate former Federal Reserve governor Kevin Warsh to be the next US central bank chief, a move that has sparked cautious optimism among observers.
The decision caps a highly publicized search for a successor to Fed Chair Jerome Powell, whom the president has repeatedly lambasted for not cutting interest rates more swiftly.
Trump told reporters Friday that Warsh "certainly wants to cut rates," but added that he did not wish to question Warsh on commitments to do so.
"I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best," Trump wrote on Truth Social, announcing his choice.
"On top of everything else, he is 'central casting,' and he will never let you down," Trump added.
Warsh, 55, was the youngest person to serve as a Fed governor, a role he held from 2006 to 2011.
Trump considered Warsh for the top Fed job too during his first presidency, but eventually chose Powell -- a decision he quickly soured on.
Prices of precious metals -- seen as safe haven investments -- sank Friday in a sign that investors were reassured by Trump's choice. The dollar pushed higher.
"I think markets are broadly happy at the moment," Atlantic Council international economics chair Josh Lipsky told AFP.
"It is a pick that another Republican president may have made," Lipsky said. "He cares about the history of the Fed, the process of the Fed, central bank independence, he's talked about this before."
Powell's chairmanship ends in May, and it remains unclear if he will also step down from the Fed's board of governors, which would free up another vacancy Trump could fill.

Senate hurdle

Warsh will need to be confirmed by the US Senate, where he will face tough questions from lawmakers amid growing concerns about threats to Fed independence.
Trump's attempt to oust Fed Governor Lisa Cook, and his administration's investigation into Powell over renovation costs at the bank, have sparked worries about the institution's insulation from politics.
An erosion of Fed independence could have negative ramifications for the economy, experts warn.
Warsh must now get through a Senate Banking Committee hearing while "maintaining the confidence of both markets and the president," said economist Samuel Tombs of Pantheon Macroeconomics.
After that, he must pass a confirmation vote in the Senate with a simple majority.
But Republican Thom Tillis of the banking committee reiterated Friday his plan to oppose the confirmation of Fed nominees -- including the next chairman -- until the probe against Powell is resolved.
The panel's top Democrat, Senator Elizabeth Warren, warned that Warsh's nomination "is the latest step in Trump's attempt to seize control of the Fed."
With 13 Republicans and 11 Democrats on the committee, a single Republican's opposition could trigger an impasse.

Economic challenges

Warsh was once seen as an inflation "hawk" favoring higher interest rates to curb price hikes.
But he has stepped up criticism of the Fed recently, endorsing policy positions of the Trump administration.
As Trump continues to call for lower rates, analysts are monitoring if Warsh defends the bank's independence.
He will need to convince markets and policymakers that he is upholding the Fed's dual mandate of stable prices and low unemployment -- despite political pressure.
Already, the Fed's job has become increasingly challenging as US tariffs fuel worries of stubborn inflation, while the employment market cools.
Policymakers walk a tightrope in deciding if they should keep rates higher to curb inflation or lower them to support the economy.
With the labor market likely deteriorating further and inflation expected to ease, the next Fed chief could uncontroversially reduce rates, Tombs said.
But it remains to be seen if he will still push for cuts if inflation proves sticky in months ahead.
Trump's selection ends a race that narrowed to four contenders -- Warsh; Fed governor Christopher Waller; Rick Rieder of BlackRock; and Trump's top economic adviser Kevin Hassett.
bys/acb

earnings

US oil giants say it's early days on potential Venezuela boom

BY JOHN BIERS

  • - 'Stability' - Chevron, the only US oil company that has continued to operate in Venezuela, believes the country "has the opportunity to become a more sizable part of our portfolio in the future," said CEO Mike Wirth on an conference call with analysts.
  • ExxonMobil and Chevron said Friday that they were awaiting signs of greater fiscal and legal stability in Venezuela before significantly shifting their approach to the oil-rich country.
  • - 'Stability' - Chevron, the only US oil company that has continued to operate in Venezuela, believes the country "has the opportunity to become a more sizable part of our portfolio in the future," said CEO Mike Wirth on an conference call with analysts.
ExxonMobil and Chevron said Friday that they were awaiting signs of greater fiscal and legal stability in Venezuela before significantly shifting their approach to the oil-rich country.
ExxonMobil, which has not operated in Venezuela since its assets were expropriated in 2007, aims to help the Trump administration understand the need to "make sure the right legal framework is in place" in Venezuela, said ExxonMobil CEO Darren Woods.
The comments came in parallel with the first round of oil giant earnings reports since the United States seized Venezuelan leader Nicolas Maduro in early January and took control of Venezuela's oil sector. 
Woods' cautious message about doing business in Venezuela at a recent White House meeting had drawn jeers from President Donald Trump.
Trump told the January 9 White House meeting with executives from ExxonMobil, Chevron and other companies that he wanted them to rapidly rebuild the country's dilapidated oil industry and boost production by millions of barrels a day.
But Woods, recounting how the company had had assets seized twice by Venezuela, told Trump's meeting that the country was currently "uninvestable." 
That comment did not sit well with Trump, who later accused the company of "playing too cute," and threatened to block ExxonMobil from doing business there.
On Friday, Woods said his comments at the White House were meant to communicate the "significant challenges that have to be addressed if we are going to achieve the priorities that the White House has," he told CNBC. 
Woods also noted that Venezuela's unusually heavy crude is costly to develop but said ExxonMobil's experience producing similar sites in Canada made the company a logical partner in Venezuela.

'Stability'

Chevron, the only US oil company that has continued to operate in Venezuela, believes the country "has the opportunity to become a more sizable part of our portfolio in the future," said CEO Mike Wirth on an conference call with analysts.
"But we also need to see stability in the country. We need to have confidence in the fiscal regime."
Chevron is producing more than 200,000 barrels per day in Venezuela and could grow volumes by up to 50 percent over the next 18-24 months, Wirth said.
While the company has been viewed as in pole position to benefit from the developments in Venezuela, Wirth said he would not deviate from weighing risks and opportunity in determining how much to invest.
"I try to remind people, like anywhere we invest, (that) fiscal terms, stability, regulatory predictability are important," said Wirth.
He said the company is reviewing a new Venezuela hydrocarbon law.
On Thursday, Venezuela's parliament adopted reforms that offer greater guarantees to private players, relinquishes state control of exploration, and lowers taxes.
"With the right changes, we certainly could see our operations and footprint expand in Venezuela," Wirth said.

Earnings

In terms of earnings, both companies reported lower profits due to lower crude prices, offset somewhat by increased production volumes.
ExxonMobil reported profits of $6.5 billion, down 14.6 percent from the same time last year.
Revenues were $82.3 billion, down 1.3 percent.
Chevron reported profits of $2.8 billion, down 14.5 percent from the year-ago period. Revenues dipped 10.2 percent to $46.9 billion.
Shares of ExxonMobil rose 0.6 percent, while Chevron jumped 3.3 percent.
jmb/acb

Global Edition

Gold, silver prices tumble as investors soothed by Trump Fed pick

  • Asian stock markets closed out the week with some hefty losses following Thursday's tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence.
  • Gold and silver prices dived Friday and European stock markets ended the week up while Wall Street pulled back with investors reassured by US President Donald Trump's pick to take over as head of the Federal Reserve.
  • Asian stock markets closed out the week with some hefty losses following Thursday's tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence.
Gold and silver prices dived Friday and European stock markets ended the week up while Wall Street pulled back with investors reassured by US President Donald Trump's pick to take over as head of the Federal Reserve.
The precious metals, viewed as safe-haven investments, had already begun sliding on reports, later confirmed, that Trump had nominated former Fed official Kevin Warsh to replace Jerome Powell as chair of the US central bank.
Trump announced his choice Friday on social media, saying that Warsh, a former Morgan Stanley investment banker and Fed governor, "will go down as one of the GREAT Fed Chairmen, maybe the best."
Kathleen Brooks, research director at XTB trading group, said the "interesting pick...may give the market some hope that Fed independence will be preserved."
Trump's personal attacks on Fed boss Jerome Powell -- set to depart in May -- have fueled widespread fears among investors that the central bank's policy independence is under threat, potentially posing an inflation risk to the US economy.

A roller-coaster week

Precious metals prices tumbled on Friday after surging in recent days when investors sought a safe haven over doubts about Trump's policies.
Gold fell as much as 12 percent at one point, retreating below $5,000 an ounce after hitting a record high near $5,600 on Thursday.
Silver, which Thursday reached an all-time peak above $120 an ounce, shed around 30 percent to about $82 an ounce. 
Financial markets have endured a roller-coaster ride this week as traders weathered a weaker dollar, Trump's threats against Tehran, the president's resumption of tariff threats and a possible US government shutdown.
Asian stock markets closed out the week with some hefty losses following Thursday's tech-led retreat on Wall Street on renewed concerns over vast investments in artificial intelligence.
Healthy earnings from Meta, Samsung and SK Hynix provided much cheer early in the week but Microsoft was punished over worries its costly AI program might not result in financial gains.
There are fears that firms' valuations may be a little too stretched and that markets could be in a bubble, having soared in recent years to record highs on the back of a tech-fueled rally.
The dollar pushed higher on Warsh's nomination.
"Most currency strategists would argue that his nomination may be good news for the dollar, which can price out some risks of a more dovish pick," said Forex.com's Fawad Razaqzada.
"However, for as long as policy uncertainty hangs over the US economy with Trump's tariff theatrics, the dollar debasement narrative is likely to hold back the greenback from making a meaningful comeback."
Among individual companies, Verizon surged 11.8 percent as it reported its highest quarter of mobility and broadband subscription increases since 2019.

Key figures at around 2110 GMT

New York - Dow: DOWN 0.4 percent at 48,892.47 (close)
New York - S&P 500: DOWN 0.4 percent at 6,939.03 (close)
New York - NASDAQ Composite: DOWN 0.9 percent at 23,461.82 (close)
London - FTSE 100: UP 0.5 percent at 10,223.54 (close) 
Paris - CAC 40: UP 0.7 percent at 8,126.53 (close)
Frankfurt - DAX: UP 0.9 percent at 24,538.81 (close)
Tokyo - Nikkei 225: DOWN 0.1 percent at 53,322.85 (close)
Hong Kong - Hang Seng Index: DOWN 2.1 percent at 27,387.11 (close)
Shanghai - Composite: DOWN 1.0 percent at 4,117.95 (close)
Euro/dollar: DOWN at $1.1856 from $1.1929 on Thursday
Pound/dollar: DOWN at $1.3688 from $1.3772
Dollar/yen: UP at 154.64 yen from 153.61 yen
Euro/pound: UP at 86.63 pence from 86.62 pence
Brent North Sea Crude: DOWN less than 0.1 percent at $70.69 per barrel
West Texas Intermediate: DOWN 0.3 percent at $65.21 per barrel
bur-jmb/acb

diplomacy

Cubans queue for fuel as Trump issues oil ultimatum

BY JORDANE BERTRAND

  • Until recently, the Cuban economy spluttered by on cheap supplies of Venezuelan oil. 
  • Cubans queued around the block for fuel Friday as the island's Communist government decried US efforts to "suffocate" the already‑stricken economy with a virtual oil blockade.
  • Until recently, the Cuban economy spluttered by on cheap supplies of Venezuelan oil. 
Cubans queued around the block for fuel Friday as the island's Communist government decried US efforts to "suffocate" the already‑stricken economy with a virtual oil blockade.
Hours after US President Donald Trump approved punitive tariffs against countries supplying oil to Cuba, lines formed at stations in the Cuban capital. 
"This will directly hit ordinary Cubans sooner or later -- that's clearly the intention," Jorge Rodriguez, a 60‑year‑old IT worker, told AFP as he waited in line.
Trump's executive order was denounced in Havana as an attempt to throttle an economy already suffering power blackouts of up to 20 hours a day and critical shortages of fuel, medicines and food.
The decree effectively forces Cuba's partners to choose between trade with the world's largest economy or with an impoverished island of 11 million people. 
Cuban President Miguel Diaz-Canel denounced attempts by a "fascist, criminal and genocidal" US cabal to "suffocate" Cuba.
Cuban is facing its most serious economic crisis since the 1991 collapse of the Soviet Union, its principal benefactor.
Until recently, the Cuban economy spluttered by on cheap supplies of Venezuelan oil. 
But these have dried up since US special forces swooped into Caracas and deposed that country's leader, Nicolas Maduro, on January 3. 
In 2025, Cuba generated only half of the electricity it needed, according to official statistics analyzed by AFP.

Escalation

Trump and his Cuban-American Secretary of State Marco Rubio have made no secret about their desire to bring regime change in Havana. 
After the fall of Maduro, Trump warned Havana to "make a deal soon" or face unspecified consequences. "NO MORE OIL OR MONEY FOR CUBA: ZERO!" he stated, claiming Cuba was "ready to fall."
Several top US officials, including Rubio, have close ties to Florida politics, where toppling the regime is an article of faith.
"It's now or never," said US lawmaker Maria Elvira Salazar, calling for the White House to make a final push to topple Diaz-Canel and the Communist party that has ruled Cuba for seven decades. 
Trump's trade ultimatum named Cuba as an "extraordinary threat" to US national security, raising the specter of potential military action. 
The order alleges that Cuba "aligns itself with -- and provides support for -- numerous hostile countries, transnational terrorist groups, and malign actors adverse to the United States," including Russia, China, and Iran, as well as the militant groups Hamas and Hezbollah. 
Since late 2025, the United States has maintained an armada of naval assets in the Caribbean, including warships, fighter jets, and thousands of military personnel.

'Humanitarian crisis'  

Trump's latest gambit is a particular problem for Mexico -- one of few countries still sending oil to Cuba but also highly dependent on US trade. 
Mexican President Claudia Sheinbaum warned Friday that Trump's oil tariffs "could trigger a far-reaching humanitarian crisis directly affecting hospitals, food supplies, and other basic services for the Cuban people."
While reiterating her "everlasting solidarity" with the Cuban people, the president added, "We don't want to put our country at risk in terms of tariffs."
Trade experts say deliveries of oil from Mexico to Cuba have slowed in recent months and Sheinbaum has not refuted reports that state oil firm PEMEX plans to halt shipments.
Cuba's traditional allies have offered rhetorical support, but announced no concrete plans for help. 
Caracas, which has been seeking closer ties with Washington, slammed Washington's "punitive" measures.
"Venezuela expresses its solidarity with the people of Cuba and calls for collective action by the international community to address the humanitarian consequences arising from aggressions of this nature," the foreign ministry said in a statement.
For its part, China said it "stands firmly against moves that deprive the Cuban people of their rights to subsistence and development and inhumane practices," according to foreign ministry spokesman Guo Jiakun. 
Diaz-Canel has said there were no talks with Washington and vowed the Caribbean island's residents were "ready to defend the homeland to the last drop of blood." 
jb/thm/mlr/arb/bgs

fed

Analysts say Kevin Warsh a safe choice for US Fed chair

BY BEIYI SEOW

  • "Warsh will likely be seen by markets as a safe pair of hands," UniCredit said.
  • Former Federal Reserve governor Kevin Warsh is a safe pair of hands to steer the US central bank, analysts said Friday, flagging his track record on Wall Street and with the Fed.
  • "Warsh will likely be seen by markets as a safe pair of hands," UniCredit said.
Former Federal Reserve governor Kevin Warsh is a safe pair of hands to steer the US central bank, analysts said Friday, flagging his track record on Wall Street and with the Fed.
Gold and silver prices already started sliding on reports that Donald Trump would nominate Warsh -- a plan the president swiftly confirmed -- with the drop in safe haven investments pointing to reassurance among investors.
What do economists, industry players and policymakers say about Warsh's emergence as the next Fed chairman?

'Experienced and tested'

"President Trump has chosen an experienced and tested policymaker who previously served at the Fed during one of its most challenging moments," said American Bankers Association president Rob Nichols. 
He added that Trump's choice "has a deep understanding of monetary policy, markets and the important role the nation's banks play in the economy."
Warsh's term as Fed governor saw him work closely with then chief Ben Bernanke on the central bank's policy responses during the financial crisis that rocked the global economy in 2008.
He emerged as a key communications conduit between policymakers and financial markets.
Banking group UniCredit said that Warsh brings "experience and credibility" at a time when Fed independence from politics is under threat.
"Warsh will likely be seen by markets as a safe pair of hands," UniCredit said.

'Critical thinker'

Jeffrey Roach, chief economist at LPL Financial, expects Warsh is unlikely to "act as a yes-man" for the president.
Warsh is "known as a critical thinker" who is "willing to rethink convention," Roach said.
UniCredit noted that towards the end of Warsh's stint as Fed governor between 2006 and 2011, he became "very critical of the Fed and ended up resigning because of his objections to quantitative easing."
Republican Senator Thom Tillis added on social media that he saw Warsh as "qualified."
But Tillis -- a member of the Senate Banking Committee -- has vowed to block the confirmation of Fed candidates until a Justice Department inquiry into Fed Chair Jerome Powell is resolved.
Jason Furman, who served as a top economic adviser to former US president Barack Obama, said that "Warsh is well above the bar on both substance and independence" to lead the Fed.

Dollar recovery

The US dollar moved higher on Friday after Trump announced his pick of Warsh. 
"The dollar has been waiting for a catalyst for a recovery," said FX strategist Francesco Pesole of ING in a note, adding that news of Warsh's planned nomination "offers exactly that."
"Warsh has been amongst the most market-friendly candidates, as he is a former Fed governor with a history of hawkish views" on keeping inflation in check, Pesole said.

Data-dependent?

While Warsh might have taken a more "dovish stance" on inflation during his interview process, "this pick may suggest a desire to calm speculation on Fed independence loss," according to Pesole.
JPMorgan also noted that Warsh's stance seems to have shifted to a position that happens to align with the Trump administration's preferences.
"Doves" are seen to favor lower interest rates to boost the economy while "hawks" are inclined towards higher rates to curb inflation.
"The first set of questions that the Warsh nomination poses is what his true leanings are and how long will they persist," said JPMorgan economist Michael Feroli.
Feroli expects Warsh will make the case for rate cuts this year, but flagged the chance that Warsh's inclinations might be "more open to revision" later on, especially after the US midterm elections this year.
bys/arp

Italy

French eyewear maker in spotlight after presidential showing

BY ANGELA SCHNAEBELE

  • Macron had ordered the sunglasses in 2024 "to give a gift to a minister during the G20" along with the pair for himself, Fulchir said. 
  • The aviator sunglasses that captured the world's attention when French President Emmanuel Macron wore a pair on stage in Davos in a faceoff with US counterpart Donald Trump have become an unexpected success for the Italian owner of the France-based manufacturer that has watched sales soar. 
  • Macron had ordered the sunglasses in 2024 "to give a gift to a minister during the G20" along with the pair for himself, Fulchir said. 
The aviator sunglasses that captured the world's attention when French President Emmanuel Macron wore a pair on stage in Davos in a faceoff with US counterpart Donald Trump have become an unexpected success for the Italian owner of the France-based manufacturer that has watched sales soar. 
Despite the hype, eyewear maker Henry Jullien has struggled in a declining French industry that was established in the eastern Jura region in the late 1700s, facing competition from far cheaper Asian manufacturers.
Henry Jullien's "Top Gun"-style shades with blue lenses and a silver frame, priced at 659 euros ($784), are now featured on the French presidency's online store.
Since last week's World Economic Forum in Switzerland, "we've been getting calls from all over the world, it's given us incredible publicity," said Stefano Fulchir, CEO of the Italian company iVision Tech which owns Henry Jullien. 
More than 500 sunglasses have already been sold online -- a significant jump for the high-end brand that typically produces just a thousand pairs per year, including 200 of the aviator Pacific S01 model, in Jura.
The brand's website crashed with the surge in traffic so a temporary webpage dedicated solely to the presidential model was launched, while iVision Tech's stock soared 70 percent in a matter of days, Fulchir said. 
Macron had ordered the sunglasses in 2024 "to give a gift to a minister during the G20" along with the pair for himself, Fulchir said. 
Made with a gold wire, the aviators are crafted in an intricate 279-step process over four months. 
"We pampered both pairs, of course," said Herve Basset, 60, who has spent more than half his life at Henry Jullien. 
The eyewear makers all received thank-you letters from the president, recalled Karine Pelissard, who has spent 30 years in the trade. 

Shrinking industry

The eyewear maker had about 180 employees 15 years ago but was down to just 15 when iVision Tech bought it in 2023, according to the mayor where the manufacturing facility is located. 
Further cuts were made. Ten employees remain in Jura, iVision Tech said, and its site in the Italian town of Martignacco has had to take on the surge in orders. 
To assure authenticity, Fulchir said the glasses are stamped with either "Made in France" or "Made in Italy" depending on which site they come from -- the "most important" labels in the eyewear world, signifying quality. 
Yet Julien Forestier, head of the eyewear makers' union in Jura, said the buzz will "bring nothing" to the local industry. 
"There are only a few companies left fighting for French manufacturing," and even opticians no longer really believe in the Made in France label anymore, he lamented. 
While the sector still produces 2 million frames a year, there are only around 50 companies and about 800 employees in Jura, compared with 10,000 in the 1950s.
ab-as/ab/sla/alv/giv/ekf/cw

economy

What are the key challenges awaiting the new US Fed chair?

BY BEIYI SEOW

  • - Credibility - The president has drastically escalated his targeting of the central bank, trying to reshape its leadership by moving to fire a Fed governor while calling repeatedly for interest rates to be slashed.
  • US President Donald Trump has unveiled his pick for the next Federal Reserve chief -- former central bank governor Kevin Warsh -- setting in motion a key shift in the institution's leadership.
  • - Credibility - The president has drastically escalated his targeting of the central bank, trying to reshape its leadership by moving to fire a Fed governor while calling repeatedly for interest rates to be slashed.
US President Donald Trump has unveiled his pick for the next Federal Reserve chief -- former central bank governor Kevin Warsh -- setting in motion a key shift in the institution's leadership.
Powell's chairmanship ends in May, and his successor will need to establish credibility despite political pressure, while walking a policy tightrope between curbing inflation and supporting a weakened jobs market.
Warsh emerged as Trump's choice early Friday, after a race that had narrowed to him, Fed governor Christopher Waller, Rick Rieder of BlackRock and Trump's chief economic advisor Kevin Hassett.
Trump during his first term considered Warsh for Fed chair as well, but eventually decided on Powell.
What are the biggest tests awaiting Trump's nominee?

Credibility

The president has drastically escalated his targeting of the central bank, trying to reshape its leadership by moving to fire a Fed governor while calling repeatedly for interest rates to be slashed.
His Justice Department also launched an investigation into Powell over renovations at the Fed's headquarters, in a move that Powell warned could threaten Fed independence.
Analysts expect Trump's pick will be more likely to push for lower rates.
But this also means it will be tougher for the candidate to establish credibility and convince investors of the bank's insulation from politics, said Michael Strain of the conservative American Enterprise Institute.
"A new Fed Chair may want to hold off on rate cuts for at least one meeting to reassure financial markets," KPMG chief economist Diane Swonk wrote in a recent note.

Senate confirmation

Trump's nominee must also undergo Senate confirmation, and will likely face tough questioning from lawmakers even as the president's Republican Party holds a Senate majority.
Already, Republican Thom Tillis, who sits on the Senate Banking Committee, vowed to oppose the confirmation of any Fed nominee -- including the next chairman -- until the probe against Powell is resolved.
Other Republican lawmakers, like Senator Lisa Murkowski of Alaska, have spoken up against the investigation too.
The top Democrat on the banking committee, Senator Elizabeth Warren, has previously accused Trump of wanting to push Powell off the Fed's powerful board altogether and "install another sock puppet" to complete his takeover of the central bank.
For now, a wildcard is whether Powell remains on the board as Fed governor after his four-year term as chairman ends, preventing Trump from influencing its composition further.
Most chairmen leave when their terms expire, but they do not have to. Powell could remain a governor until 2028.

Forging consensus

Within the bank, the Fed chair is seen to have an outsized influence on forging consensus among the rate-setting Federal Open Market Committee (FOMC).
The FOMC's 12 voting members take majority votes to decide on interest rate adjustments, and observers will monitor if the next chief can unite officials to back further rate cuts.
The Fed has seen deepening divisions recently as some policymakers seek lower rates to boost the economy and shore up a labor market they view as fragile.
But others have pushed back on rate cuts amid inflation worries, as Trump's tariffs flow through supply chains and raise the costs of certain goods.

Political pressure

The new Fed chair will also have to contend with a president who has relentlessly criticized their predecessor and made no secret of his preference for much lower interest rates.
Trump has already said that he would judge his choice on whether they immediately cut rates.
At a speech to the World Economic Forum at Davos, Switzerland, Trump said of the contenders for the chairmanship: "They're saying everything I want to hear."
"They get the job, and all of a sudden, 'Let's raise rates a little bit,'" he added. "It's amazing how people change once they have the job."
"It's too bad, sort of disloyalty," Trump said.
bur-bys/md

growth

Eurozone growth beats 2025 forecasts despite Trump woes

BY FRéDéRIC POUCHOT

  • Data released Friday in Germany showed its economy grew faster than expected at the end of 2025, expanding 0.2 percent over the year, suggesting a recovery is gathering pace in Europe's struggling industrial powerhouse.
  • Eurozone growth beat expectations to reach 1.5 percent last year, official data showed Friday, picking up pace for a second year running in spite of a bruising trade standoff with the United States.
  • Data released Friday in Germany showed its economy grew faster than expected at the end of 2025, expanding 0.2 percent over the year, suggesting a recovery is gathering pace in Europe's struggling industrial powerhouse.
Eurozone growth beat expectations to reach 1.5 percent last year, official data showed Friday, picking up pace for a second year running in spite of a bruising trade standoff with the United States.
Europe is working to close the gap with economic rivals China and the United States, and spiking tensions with President Donald Trump's administration over trade have created added impetus to bolster its competitivity.
Last year's uptick in the single-currency area's economy builds on the modest 0.9 percent expansion recorded in 2024, after an anaemic 0.4 percent a year earlier.
Analysts at Bloomberg had forecast growth to be 1.4 percent, while the European Commission itself predicted 1.3 percent.
Quarter-on-quarter growth for the eurozone reached 0.3 percent in the last three months of 2025, according to statistics agency Eurostat.
"Accelerating growth in Germany, Spain and Italy, to a lesser extent, made up for slow growth in France," said ING chief economist Bert Colijn.
The eurozone ended the year with "decent economic growth despite significant uncertainty and economic tension," he wrote.
Data released Friday in Germany showed its economy grew faster than expected at the end of 2025, expanding 0.2 percent over the year, suggesting a recovery is gathering pace in Europe's struggling industrial powerhouse.
But annual growth in the eurozone's second-biggest economy France slowed to 0.9 percent, national data showed, impacted by a disappointing fourth quarter as the government wrestled with passing a new budget.
Spain's economy meanwhile grew at more than twice the eurozone average last year, expanding 2.8 percent, fuelled by strong consumer demand, rising exports and robust tourism.
The eurozone's fourth-largest economy has outshone its peers since 2021, supported by low energy costs, domestic consumption and a tourism boom since the end of the Covid pandemic.
Analysts at Capital Economics said they expected Spain to "continue to outperform for some time as high immigration boosts employment and domestic demand."
Spain's left-wing government credits immigration for much of the country's dynamic economic growth of recent years, and has recently moved to regularise around 500,000 undocumented migrants.

'Upbeat'

ING's Colijn said the eurozone-wide outlook for 2026 was "becoming more upbeat", with industrial production expected to benefit from defence investments and German infrastructure spending in particular.
He predicted "accelerated growth over the coming quarters," noting that even a "modest" pickup would be something to celebrate given the "significant turmoil" in international relations.
But he warned other factors were set to keep dragging on growth, from the uncertain global environment to a loss of competitiveness across the eurozone.
"These broader structural concerns are not being addressed quickly enough at the moment, which curbs longer-term prospects," he said.
Across the broader 27-country European Union, the economy expanded by 1.6 percent last year, the data showed.
EU leaders will hold talks on competitiveness next month in Belgium as the bloc seeks to revive its economy and foster innovation.
The bloc's competitiveness push has produced mixed outcomes so far, according to an annual assessment published Friday by the European Commission, which is pushing for stepped-up action. 
Of a broad set of indicators examined in the report, six showed declines, six improved and 15 remained broadly unchanged. 
Areas showing improvement ranged from the use of artificial intelligence by businesses to renewable energy production and the mutual recognition of diplomas and professional qualifications across member states. 
By contrast, the share of intra‑EU trade in the bloc's economy showed a decline, as did private investment levels and European students' results in the PISA international education survey.
fpo/ec/del/js

economy

Kevin Warsh, a former Fed 'hawk' now in tune with Trump

BY BEIYI SEOW

  • In an interview with Fox Business at the time, he backed interest rate cuts to boost growth, even as Fed officials said they needed to evaluate the potential impact of Trump's tariffs barrage on inflation.
  • Kevin Warsh, a former US Federal Reserve official named by President Donald Trump on Friday as its next chief, was long an inflation foe but has aligned his views with those of Trump officials seeking aggressive interest rate cuts.
  • In an interview with Fox Business at the time, he backed interest rate cuts to boost growth, even as Fed officials said they needed to evaluate the potential impact of Trump's tariffs barrage on inflation.
Kevin Warsh, a former US Federal Reserve official named by President Donald Trump on Friday as its next chief, was long an inflation foe but has aligned his views with those of Trump officials seeking aggressive interest rate cuts.
Trump made the announcement after the Fed held its benchmark rate steady this week under Chairman Jerome Powell, whom the president again slammed as a "moron".
The months of personal attacks have fuelled widespread fears among investors that the Fed's policy independence is under threat, potentially posing an inflation risk to the world's biggest economy.
Warsh has edged out three other contenders for the Fed job: Fed Governor Christopher Waller, Rick Rieder of the investment behemoth BlackRock, and Trump's top economic adviser Kevin Hassett.
A Fed governor between 2006 and 2011, Warsh was previously a mergers and acquisitions banker at Morgan Stanley.
He later joined former president George W. Bush's administration, serving as a White House economic policy adviser from 2002 to 2006 before being nominated to the Fed's Board of Governors.
During his first term, Trump had considered Warsh for the Fed chair position, but eventually chose Powell instead.
But Powell's fall from grace was capped this month when US prosecutors issued subpoenas against him threatening a criminal indictment, an unprecedented move widely seen as an escalation of Trump's campaign against the central bank.
- No longer a 'hawk' –
Warsh's term as a Fed governor saw him work closely with its chief Ben Bernanke on the central bank's policy responses during the financial crisis that rocked the global economy in 2008.
He emerged as a key communications conduit between policymakers and financial markets, even as he became increasingly skeptical of some of the Fed's actions -- including interest rate cuts to help contain the damage.
He resigned as a Fed governor in 2011, several years before his term was to expire in 2018.
At the time, he was seen as an inflation "hawk," a term describing policymakers more inclined to prioritize stable prices and low inflation.
This is usually done by favoring tighter monetary policy and higher interest rates.
But recently Warsh has stepped up his criticism of the Fed, endorsing many of the policy positions of Trump and his administration.
He argued in a speech last year that the Fed had strayed from its monetary policy mission into political areas where it lacked expertise.
Warsh also claimed that poor policy choices by the Fed were holding back the US economy from growing further.
In an interview with Fox Business at the time, he backed interest rate cuts to boost growth, even as Fed officials said they needed to evaluate the potential impact of Trump's tariffs barrage on inflation.
Warsh, a graduate of Stanford University and Harvard Law School, is married to Jane Lauder, of the family known for the Estee Lauder cosmetics group. 
Her billionaire father Ronald Lauder is a longtime associate of Trump's.
Warsh's appointment to the Fed would have to be confirmed by the US Senate, where he will face scrutiny including from Trump's own Republican lawmakers.
Republican Thom Tillis, who sits on the Senate Banking Committee, has vowed to oppose the confirmation of any Fed nominee until the probe against Powell is resolved.
bys/js/rlp/md

business

'Superman' Li Ka-shing, Hong Kong billionaire behind Panama ports deal

BY TOMMY WANG

  • Beijing authorities intensified pressure on CK Hutchison last year, repeatedly criticising the conglomerate's sale of its Panama Canal ports.
  • Hong Kong tycoon Li Ka-shing and his conglomerate CK Hutchison have been tied up in global US-China rivalry since announcing a controversial $19 billion sale of strategic ports in Panama last year.
  • Beijing authorities intensified pressure on CK Hutchison last year, repeatedly criticising the conglomerate's sale of its Panama Canal ports.
Hong Kong tycoon Li Ka-shing and his conglomerate CK Hutchison have been tied up in global US-China rivalry since announcing a controversial $19 billion sale of strategic ports in Panama last year.
The Li family owns 30 percent of CK Hutchison, which controls ports, retail, infrastructure and other businesses in dozens of countries and reported revenue of $61.4 billion in 2024.
Li was Asia's ninth-richest man, according to the Bloomberg Billionaires Index in January, with a total net worth of more than $42 billion.
Nicknamed "Superman" for his business acumen, the 97-year-old and his companies are woven into the fabric of Hong Kong life through everything from internet services to supermarket chains.
A Panama Supreme Court decision to annul CK Hutchison's concession there on Thursday showed how container ports in geopolitically strategic locations have become a prized global currency.

From refugee to billionaire

Li was born in the southern Chinese city of Chaozhou in 1928.
A refugee from the Sino-Japanese War who fled mainland China to Hong Kong, he started a business in 1950 manufacturing plastic flowers and named it Cheung Kong after China's Yangtze River.
He reaped big profits in the 1960s after diversifying into property, and extended his businesses into many sectors in the following decades.
Li also had a longstanding interest in overseas markets, making investments in the Canadian property and energy sectors in the 1980s.
He swam against the tide after Beijing crushed the pro-democracy movement in Tiananmen Square in 1989, becoming the largest Hong Kong investor in mainland China, primarily in the property sector, while foreign businesses fled.
He continued to invest heavily on the mainland during the 1990s, the dedicated capitalist courting Beijing's communist leaders as China began to emerge as an economic superpower.
The extent of Li's investments served as a powerful catalyst for foreign capital entering China in the following decades, propelling its economic miracle.
Li also supported China's education and healthcare sectors through substantial philanthropic funding.
He enjoyed close ties with three generations of Chinese leaders, including Deng Xiaoping, the architect of China's economic opening up.

Weakening ties

That closeness to China's leadership weakened after Xi Jinping took power in 2012. 
Beijing hardened its stance towards tycoons under Xi, including those from Hong Kong, and Li found his commercial and political manoeuvres under increasing criticism by government-affiliated media. 
He has offloaded major property investments in China in recent years in a move seen as part of a quest for stability and a sign of being less reliant on the mainland. 
Li announced a sweeping reorganisation of his vast business empire in 2015 following the sale of some Chinese assets. 
Many of the more recent expansions were instead overseas, with CK Hutchison now operating in some 50 countries across telecoms, ports, infrastructure, and retail.
Li and his family are also reportedly thinking of spinning off and selling assets across its units.
Chinese state media have criticised Li for his apparent decision to divest from some mainland markets and for supposedly showing sympathy to pro-democracy protesters in Hong Kong in 2019.
Beijing authorities intensified pressure on CK Hutchison last year, repeatedly criticising the conglomerate's sale of its Panama Canal ports.
The Beijing-based authority overseeing Hong Kong affairs reposted a newspaper editorial titled "Great entrepreneurs have always been outstanding patriots" after the sale plan was announced in March.
There has been slow progress in the CK Hutchison port sale negotiations since then, with analysts telling AFP that political factors have become a drag.
Panama's Supreme Court found the laws that allowed CK Hutchison to operate two of the five canal ports "unconstitutional", ending its decades-long concession.
The ports operator, CK Hutchison subsidiary Panama Ports Company, said the decision "lacks legal basis" and threatens thousands of livelihoods.
bur-twa/dhw/pbt

children

Dutch watchdog launches Roblox probe over 'risks to children'

  • "The platform regularly makes the news, for example, due to concerns about violent or sexually explicit games that minors are exposed to," the ACM said in a statement.
  • The Dutch consumer watchdog Friday launched an investigation into Roblox to see if the popular gaming platform was doing enough to protect children amid reports they are exposed to violent and sexual imagery.
  • "The platform regularly makes the news, for example, due to concerns about violent or sexually explicit games that minors are exposed to," the ACM said in a statement.
The Dutch consumer watchdog Friday launched an investigation into Roblox to see if the popular gaming platform was doing enough to protect children amid reports they are exposed to violent and sexual imagery.
The Netherlands Authority for Consumers and Markets (ACM) said its probe would examine "potential risks to underage users in the EU" and would likely last around one year.
"The platform regularly makes the news, for example, due to concerns about violent or sexually explicit games that minors are exposed to," the ACM said in a statement.
Other concerns include reports of ill-intentioned adults targeting children on the platform and the use of misleading techniques to encourage purchases.
The ACM said it had also received reports of these allegations and "considers this sufficient reason to launch a formal investigation into possible violations of the rules by Roblox."
Under the EU's Digital Services Act (DSA), platforms must take "appropriate and proportionate measures" to ensure a high level of safety and privacy for minors.
The ACM said it could impose a "binding instruction, fine, or penalty" on Roblox if it concludes the rules have been broken. 
In 2024, the ACM slapped a 1.1-million-euro fine on Fortnite maker Epic Games, judging that vulnerable children were exploited and pressured into making purchases in the game's Item Shop.
A Roblox spokesperson told AFP the platform was "strongly committed" to complying with the DSA rules and was looking forward to providing "further clarity" on its actions.
"We have invested significantly in building robust systems that align with the DSA's principles, including working to ensure the safety, security and privacy of minors," the spokesperson said.
Roblox pointed to recent measures taken on the platform, such as introducing age check requirements for all users wishing to chat with others.
ric/ach 

budget

French PM forces final budget through parliament 

  • Lecornu has already endured a string of no-confidence votes in recent weeks as he pushed the first sections of the 2026 state budget through parliament without a vote. 
  • French Prime Minister Sebastien Lecornu forced his budget through parliament without a vote for the third and final time Friday, exposing him to yet another no-confidence motion. 
  • Lecornu has already endured a string of no-confidence votes in recent weeks as he pushed the first sections of the 2026 state budget through parliament without a vote. 
French Prime Minister Sebastien Lecornu forced his budget through parliament without a vote for the third and final time Friday, exposing him to yet another no-confidence motion. 
The decision to use the constitutional tool known as article 49.3 has marked an about-face for Lecornu, who pledged last year to seek parliament's approval, in a bid to avoid the fate of his two predecessors who were ousted over budget negotiations.
But after months of negotiations reached an impasse, Lecornu announced he would use the power to force the budget, after making concessions to gain the backing of the Socialists. 
"France must have a budget. And so, before this chamber, I am committing the government's responsibility for the entire Finance Bill for 2026," he told the National Assembly on Friday while invoking the power to push it through.
His opponents, including the hard left and far-right parties, have vowed to file no-confidence motions against him in response. 
The motions are expected to be debated and voted upon Monday, according to lawmaker Eric Coquerel who chairs the finance committee. 
If Lecornu survives, as anticipated based on his previous support, the budget will move forward for definitive adoption. 
The Socialist party has "tightened the screws" on its members to fall in line and back the government, Coquerel lamented. 
Lecornu has already endured a string of no-confidence votes in recent weeks as he pushed the first sections of the 2026 state budget through parliament without a vote. 
On Tuesday, Lecornu defended his decision, touting what he called a "breakthrough" budget that would boost defence spending by 6.5 billion euros ($7.78 billion) and urging a "long-term" view.
Although some lawmakers have expressed doubts, the text aims to bring the deficit down to five percent of the gross domestic product (GDP) in 2026 from 5.4 percent in 2025. 
The executive was initially targeting 4.6 percent, but the scrapping of pension reforms meant such a reduction of the deficit was not possible, according to rapporteur Philippe Juvin. 
The various concessions made for the Socialists include a one-euro meal for students and an increase in a top-up payment for low-income workers.
Despite being "imperfect" the budget "is a useful text for the French, because it allows us to emerge from the climate of uncertainty that has set in over the past few months," Public Accounts Minister Amelie de Montchalin said on Thursday.
The eurozone's second-largest economy has been bogged down in political crises since Macron called a snap poll in 2024, in which he lost his parliamentary majority.
are/far/asm/giv/st

canal

Panama court annuls Hong Kong firm's canal port concession

  • On Thursday the Supreme Court found the laws which allowed CK Hutchison Holdings to operate two of the five ports of the canal "unconstitutional," according to a court statement.
  • Panama's Supreme Court annulled on Thursday the concession allowing Hong Kong-based CK Hutchison to operate ports at the Panama Canal, a ruling that undermines Chinese sway over the waterway.
  • On Thursday the Supreme Court found the laws which allowed CK Hutchison Holdings to operate two of the five ports of the canal "unconstitutional," according to a court statement.
Panama's Supreme Court annulled on Thursday the concession allowing Hong Kong-based CK Hutchison to operate ports at the Panama Canal, a ruling that undermines Chinese sway over the waterway.
As Beijing and Washington vie for global influence, container ports have become a prized currency -- especially those situated in geopolitically strategic locations such as the Panama Canal. 
Just days into US President Donald Trump's second term, he threatened to take back the canal -- built by the United States and handed to Panama in 1999 -- claiming Beijing was effectively "operating" it.
Panama has rejected the claim that China had de facto control over the canal, which handles 40 percent of US container traffic, while taking actions to appease Trump.
The firm has sought to sell its Panama Canal ports to a consortium led by US asset manager BlackRock. The status of that proposal is unclear following the court ruling.
On Thursday the Supreme Court found the laws which allowed CK Hutchison Holdings to operate two of the five ports of the canal "unconstitutional," according to a court statement.
The CK Hutchison subsidiary concerned by the ruling rejected the judgement, saying that it "lacks legal basis".
The ruling "jeopardizes not only PPC (Panama Ports Company) and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity," it said.
Beijing, meanwhile, on Friday vowed to "take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies".
Hong Kong's government also rejected the decision.
The United States and China are the canal's top users, with around five percent of global maritime trade transiting from there.
Panama Ports Company -- a CK Hutchison Holdings subsidiary -- manages the ports of Cristobal on the canal's Atlantic entrance and Balboa on the Pacific side.
The concession was automatically renewed in 2021 for another 25 years.

 Proposed sale status unclear

The lawsuit to cancel the concession was brought before the Panamanian high court last year on allegations that it was based on unconstitutional laws and that the Hong Kong business was not paying taxes.
CK Hutchison Holdings is one of Hong Kong's largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.
Shares in CK Hutchison declined more than 4 percent on the Hong Kong stock exchange on Friday.
Chinese state media has previously slammed the proposed sale to BlackRock, while Beijing has warned parties involved to exercise "caution", warning of legal consequences should they proceed without their clearance.
In April, the Panamanian Comptroller's Office accused the firm of allegedly failing to pay the state $1.2 billion from its operations, according to an audit by the agency in charge of overseeing public spending.
Panama has been trying to avoid being dragged into what President Jose Raul Mulino last year called a "geopolitical conflict."
Mulino has insisted the canal's neutrality is intact and has urged Washington not to entangle Panama in its rivalry with Beijing. 
Still, Panama has taken steps to ease the pressure from Washington.
Last year it withdrew from China's Belt and Road Initiative, and earlier this month it announced new joint US-Panama canal defense drills -- the fourth since 2025 -- aimed at boosting readiness around the 50‑mile (80‑kilometre) trade route.
The canal has become a recurring flashpoint as Trump pursues what he calls the updated "Donroe Doctrine," asserting expanded US authority in the Western Hemisphere.
In his inauguration address, the US president said: "We didn't give it to China, we gave it to Panama. And we're taking it back."
At the same time, Beijing has sharply criticized moves against its assets in Panama, including the demolition late last year of a monument honoring Chinese workers who helped build the canal and the 19th‑century railway that preceded it.
jjr/jgc/isk/reb/jm

oil

Trump threatens tariffs on nations selling oil to Cuba

  • The order signed Thursday threatens added tariffs on any "country that directly or indirectly sells or otherwise provides any oil to Cuba."
  • US President Donald Trump signed an executive order Thursday threatening to impose additional tariffs on countries that sell oil to Cuba, further increasing pressure on the communist-led island.
  • The order signed Thursday threatens added tariffs on any "country that directly or indirectly sells or otherwise provides any oil to Cuba."
US President Donald Trump signed an executive order Thursday threatening to impose additional tariffs on countries that sell oil to Cuba, further increasing pressure on the communist-led island.
The order did not specify the value of the tariffs or which countries would be targeted, leaving those determinations up to his secretary of commerce.
Cuba, which has largely been under a US embargo since 1962, until recently received most of its oil from Venezuela.
But the United States has moved to block the flow after removing Havana's key ally Nicolas Maduro from power and effectively seizing control of Venezuelan oil exports.
Following the Venezuela operation, Trump vowed to completely cut off oil and money going to Cuba.
"I strongly suggest they make a deal, BEFORE IT IS TOO LATE," he threatened in a social media post.
The United States has been mum on what kind of deal it is seeking with the island's communist government.
Havana's foreign minister Bruno Rodriguez on Thursday called the latest move in a post on X a "brutal act of aggression against Cuba and its people, who for more than 65 years have been subjected to the longest and cruelest economic blockade ever imposed."
The order signed Thursday threatens added tariffs on any "country that directly or indirectly sells or otherwise provides any oil to Cuba."
The order invokes the International Emergency Economic Powers Act (IEEPA) and calls the Cuban government an "extraordinary threat" to US national security.
Other tariffs invoked under the IEEPA are currently being challenged at the Supreme Court.
Declaring a "national emergency" related to Cuba, Trump made similar claims to those made against Venezuela, such as providing support nations hostile to the United States.
"The regime aligns itself with -- and provides support for -- numerous hostile countries, transnational terrorist groups, and malign actors adverse to the United States," including Russia, China, and Iran, as well as the militant groups Hamas and Hezbollah, the order said.
The pressure comes as the communist island is in the throes of its worst economic crisis in decades, marked by recurring power outages of up to 20 hours a day and shortages of food and medicine that have created a mass exodus of Cubans.
US neighbor Mexico has become a significant provider oil to Cuba, though media reports have suggested that flows could be slowing under pressure from Trump.
Speaking at a press conference earlier this week, Mexican President Claudia Sheinbaum would neither confirm or deny the reports, but said Mexico would "continue to show solidarity" with Cuba.
aue/mlm/des/jgc

gold

Heavy metal: soaring gold price a crushing weight in Vietnam

BY TRAN THI MINH HA

  • "This crazy high cost for gold worries me sick," Thang said.
  • From his newly built three-storey home outside Hanoi, Trinh Tat Thang has watched the surging global gold price with mounting dread.
  • "This crazy high cost for gold worries me sick," Thang said.
From his newly built three-storey home outside Hanoi, Trinh Tat Thang has watched the surging global gold price with mounting dread.
The Vietnamese have a long tradition of holding their wealth in gold, and a parallel practice of borrowing the asset from relatives to build homes, rather than cash from a bank.
But the debt must be repaid in gold.
Family members loaned Thang four glittering one-luong bars -- a standard Vietnamese unit equivalent to 1.2 troy ounces -- to break ground on his house in 2022.
At the time, they were worth around $10,000 on the local market. Prices have nearly tripled since then and he now owes the equivalent of more than $29,000.
"I truly don't know when and how I can settle the debts," said the 44-year-old, who earns less than $700 a month from his job in pharmaceutical marketing.
"This crazy high cost for gold worries me sick," Thang said.
The extraordinary run-up in gold prices -- which topped $5,000 an ounce for the first time on Sunday -- has brought unexpected windfalls to millions of Vietnamese holding hallmarked bars and rings seen as symbols of luck.
But it has also touched off a wave of speculation, made traditional wedding gifts unaffordable for many, and all but ended the informal gold mortgage system.
"There probably aren't many people left in this country who would borrow gold these days," said Thang.
"I have a good house, but also a huge debt on my shoulders. It wasn't worth it."

 'Suddenly rich'

Despite a recent boom in real estate and cryptocurrency investment, many Vietnamese families still see physical gold as the safest place to park their savings.
Gold bars, rings and necklaces can be handed down to the next generation as wedding gifts or inheritance bequests. They also offer a hedge against inflation.
Vietnamese savers have socked away around 400 tonnes of the precious metal at home, according to government auditors.
Among them is 74-year-old Tran Thi Lan, who has amassed a treasure trove of gold rings, bracelets and bars over decades.
She has given much of it away to her children and grandchildren, but keeps the rest hidden away in her wardrobes "for future needs".
"I have suddenly become very rich. I am a billionaire now," said the retired shop owner, counting in Vietnamese dong.
"My kids always made fun of me for my obsession with gold. But now they admit that my traditional saving style was efficient."
- 'Queuing for gold' –
Vietnam does not have a national gold exchange, and domestic banks do not offer individuals access to online trading platforms for precious metals.
Bars and rings trade at a premium to the world price at gold and jewellery shops across the country, where bullion emblazoned with dragons is sold alongside ornate goldware inlaid with pearls and rubies.
Demand has soared along with the market price, and eager buyers queue up every day for the chance to buy what they hope will be an appreciating asset.
Many jewellers in the Vietnamese capital say they regularly run out of stock, and some buyers are willing to pay cash now for gold that will not be delivered for weeks.
For the last year, office worker Huong has taken half a day off every month to stand in line to buy gold on Hanoi's Tran Nhan Tong street.
"My efforts have paid off," she said, adding she would "earn quite an amount" if she sold her holdings now.
Still, she wishes she had heeded earlier the advice of her mother and grandmother who "always reminded me that gold is the safest haven".
But for the many not looking to cash in on the gold rally, the run-up has turned traditional rites such as weddings into financial hardships.
When her best friend got married seven years ago, Tran Tu Linh gave her a gold ring weighing just over 0.1 ounces.
But the 29-year-old would not expect her friend to return the favour if she were to marry now, saying the cost would be a "burden".
She added: "Life will be easier without being obsessed with the gold price."
tmh/tym/slb/abs/mjw

politics

What's behind Trump's risky cheap dollar dalliance?

  • - The US currency has fallen about 12 percent since Trump took office in January 2025 based on the dollar index, which measures the greenback against the euro, the yen and four other currencies.
  • The US dollar sank to a four-and-a-half-year low against the euro this week after President Donald Trump said the weakened currency was doing "great."
  • - The US currency has fallen about 12 percent since Trump took office in January 2025 based on the dollar index, which measures the greenback against the euro, the yen and four other currencies.
The US dollar sank to a four-and-a-half-year low against the euro this week after President Donald Trump said the weakened currency was doing "great."
While US Treasury Secretary Scott Bessent backed a strong dollar the very next day, market watchers viewed Trump's remark as the latest sign the president sees a lower greenback as connected to goals of lowering the trade deficit and boosting US manufacturing.
A lower dollar brings mixed effects, boosting the competitiveness of US exporters but inflicting higher prices on cash-strapped consumers for imported goods.

How weak is the US dollar?

The US currency has fallen about 12 percent since Trump took office in January 2025 based on the dollar index, which measures the greenback against the euro, the yen and four other currencies.
But that pullback came after the US currency had rallied almost six percent between Trump's Election Day win in November 2024 and his inauguration.
Moreover, the US currency is not especially weak on an historic basis. The euro on Tuesday night breached $1.20 for the first time since 2021. But that is still well below the all-time of more than $1.60 in July 2008. 

Why has the dollar declined under Trump?

The greenback moved sharply lower Tuesday after Trump was asked if he thought it had dropped too much.
"No, I think it's great," Trump said in Iowa. "Look at the business we're doing."
While the remark was somewhat impactful, it came after "the biggest move in the dollar had already happened," said Francesco Pesole, a foreign exchange strategist at ING.
Pesole ties the dollar's recent bout of weakness to a renewal of the "sell America" trade following Trump's threats of new tariffs on Europe over Greenland. 
Much as with the aggressive "Liberation Day" tariff announcement in April, Trump eventually backed off the Greenland-related levies.
But the episode highlighted the unpredictability of US policy under the 79-year-old president.
Another factor is the impending appointment of a new head of the Federal Reserve to replace Jerome Powell, whom Trump has lambasted for not cutting interest rates sufficiently.
Powell's replacement by a Fed chair who favors significantly lower interest rates would lend further downward pressure on the dollar.

How does a weaker dollar affect the US economy?

A cheaper dollar means US exports become more competitive in overseas markets. That dynamic can help boost US manufacturing production while reducing the country's trade deficit -- two Trump administration priorities.
Other benefits include lifting the financial results for US companies that report profits overseas and incentivizing foreign tourism to the United States.
While presidents from both parties say they want a strong dollar, "under the surface -– sometimes they say it outright, sometimes they don't say it outright –- they'll be looking for a weaker currency to help them achieve their economic agenda," said Oren Klachkin, an economist at Nationwide.
In a November 2024 paper, Stephan Miran, Trump's Chairman of the Council of Economic Advisors and a Federal Reserve board member, argued that addressing the "persistent dollar overvaluation" was essential to revamping global trade.
But a downside of a cheap dollar is to increase the prices US consumers face on imported goods, said ForexLive's Adam Button, who argues the US is "playing with fire."
"The risk of a falling dollar is that that inflation re-accelerates," said Button, who sees a risk that investors will view a declining dollar as a sign other US assets should be avoided.
"If you have the rest of the world investing trillions in the US bond market, that's keeping borrowing rates in the US low," said Button.
"The rest of the world is subsidizing American deficits, and that is a tremendous benefit to everything in the US. But that is not a guarantee forever."
bys-tmc-jmb/des

economy

US eases Venezuela sanctions after oil sector reforms

BY BRIAN CONTRERAS AND AHIANA FIGUEROA

  • The reform adopted Thursday paves the way for the return of US energy majors, two decades after socialist firebrand Hugo Chavez seized foreign oil fields.
  • The United States on Thursday eased sanctions on Venezuela's oil industry after Venezuelan lawmakers passed reforms paving the way for US companies to return -- a key goal of President Donald Trump's intervention in the country.
  • The reform adopted Thursday paves the way for the return of US energy majors, two decades after socialist firebrand Hugo Chavez seized foreign oil fields.
The United States on Thursday eased sanctions on Venezuela's oil industry after Venezuelan lawmakers passed reforms paving the way for US companies to return -- a key goal of President Donald Trump's intervention in the country.
Within an hour of lawmakers in Caracas voting to open the oil industry to private investment, the US Treasury Department issued a general license allowing US companies to trade with state oil firm PDVSA.
The activities authorized include the refining of oil, the license said.
Addressing oil industry workers, Venezuela's acting president Delcy Rodriguez hailed the reform as a "historical leap."
"We are taking historic steps," Rodriguez said after a call with Trump, who also announced the reopening of Venezuela's airspace.

'For the future'

Trump pressured Caracas to open up its oil fields to American investors after overthrowing his socialist arch-foe Nicolas Maduro in a deadly US raid on January 3.
The US president backed Maduro's deputy Rodriguez to take over, on the proviso that she give Washington access to the world's largest proven oil reserves.
Rodriguez has appeared eager to comply with his demands, arguing that an influx of foreign capital is needed to revive the battered Venezuelan economy.
The reform adopted Thursday paves the way for the return of US energy majors, two decades after socialist firebrand Hugo Chavez seized foreign oil fields.
It modifies a law dating to 2006 that forced foreign investors to form joint ventures with state oil company PDVSA, which insisted on a majority stake.
Jorge Rodriguez, head of parliament and brother of Venezuela's new acting president, said the reform will help the country recover from years of living under US sanctions. 
"Only good things will come after the suffering," he said as he gavelled through the law "for history, for the future."
Trump has said Washington is now "in charge" of Venezuela and Rodriguez will be "turning over" millions of barrels of oil to be sold at market price.
Rodriguez has already ploughed $300 million from a first US sale of Venezuelan crude into shoring up the country's struggling currency, the bolivar.

Slow recovery

Venezuela sits on about a fifth of the world's oil reserves.
It was once a major crude supplier to the United States, and multiple American firms operated in the country until 2007, when Chavez led a new wave of nationalizations.
The industry is undergoing a slow recovery after being walloped by years of underinvestment, corruption, mismanagement and six years of US sanctions.
It reached production of 1.2 million barrels per day in 2025, a milestone compared to the 300,000 per day extracted in 2020, but far from the 3 million achieved at the start of the century.
Trump, who has lavished praise on Rodriguez, has been pressing oil executives to invest in Venezuela.
Exxon Mobil and ConocoPhillips exited in 2007 after refusing to cede majority control to the state. 
Chevron is the only US firm still operating in Venezuela, under a special sanctions exemption.
The revised law offers greater guarantees to private players, relinquishes state control of exploration, and lowers taxes and royalties.
"This obviously completely dismantles Hugo Chavez's oil model," said oil analyst Francisco Monaldi, while pointing out that the state will retain some discretion over the issuing of contracts to private players.

New fields

The US Department of Energy has already unveiled a plan to develop Venezuela's oil industry and begun marketing Venezuelan crude.
Rodriguez says the reform will bring money for "new fields, to fields where there has never been investment, and to fields where there is no infrastructure."
The changes are cause for optimism for many in a country battling economic collapse and mass emigration. 
"This hydrocarbons reform helps restore our dignity," Karina Rodriguez, a 53-year-old PDVSA employee told a recent rally.
afc-bc-jt/cb/des