Trump

'Was hoping for more': Trump support slips one year in

BY BEN TURNER

  • Asked if he would vote for Trump again given the chance, Kramley said it "depends on who's running" -- but he sees no viable Democratic presidential candidate.
  • Michelle Sims hesitated when asked if she still backed Donald Trump one year into his presidency.
  • Asked if he would vote for Trump again given the chance, Kramley said it "depends on who's running" -- but he sees no viable Democratic presidential candidate.
Michelle Sims hesitated when asked if she still backed Donald Trump one year into his presidency. "Yeah -- to a certain extent," she sighed as she eyed groceries in a Pennsylvania food bank.
Sims, who does not work due to medical issues, went on to list her worries about the high cost of living and cuts to welfare programs -- problems that she had hoped Trump would improve.
The 50-year-old is one of many Americans whose support for Trump has waned since he took office last January, as opinion polls show a slump in the president's approval rating.
Sims, wearing a gray cardigan and a large hair clip, told AFP she had particularly wanted Trump to deliver on his promises to address affordability issues.
But while she is happy to see gas prices down, "I don't think everything was achieved."
"My expectations were a little bit higher. I was hoping more would have been done by now," said Sims.
She lives in a suburb of Philadelphia in Bucks County, an area that politicians often target in US elections as voters "swing" between candidates, rather than consistently backing the same party.
Trump won there in 2024 by a tiny margin -- the first time since 1988 a Republican presidential candidate has taken Bucks County. 
But in a sign of shifting sentiment, a wave of Democratic candidates swept the county in 2025 local elections.
"People just want government to work. They don't want chaos," Danny Ceisler, the newly elected Democratic sheriff of Bucks County, told AFP. 
Ceisler successfully lobbied against his officers partnering with ICE, the immigration enforcement agency leading Trump's mass deportation drive -- a key and contentious pillar of his presidency.

Satisfied, but Greenland plan 'ridiculous'

Analysts say that lukewarm support for Trump in the first place means some who voted for him have sat out of recent elections in Pennsylvania and other states, where Democrats have also enjoyed major electoral victories. 
"In 2024, his narrow winning margin was enabled by a fairly modest-sized cohort of voters in places like Bucks County who were dissatisfied with the direction of the country, particularly on the cost of living," said Christopher Borick, director of the Muhlenberg College Institute of Public Opinion in Pennsylvania. 
"That group of voters has become disillusioned with Trump, with their hopes for a more affordable life largely unrealized and their reservations about Trump's character and leadership only enhanced."
A Gallup poll last month showed Trump's approval rating at 36 percent, down from 47 percent when he took office. 
Faced with a drop in popularity ahead of crucial 2026 midterm elections, which will decide who controls Congress, the president has returned to campaign-style rallies to engage voters. 
Joe Kramley, a retired Navy technician who voted for Trump in 2024 mostly due to immigration worries, said he was getting fed up with the president.
"I wish he'd shut up and (just) do what he's going to do," Kramley, 83, told AFP in Doylestown, Pennsylvania, on a historic street lined with shops and cafes.
"I'm satisfied with some of his programs. A lot of them aren't working out. Inflation is still here," he said, also calling Trump's repeated remarks that he wants to take over Greenland "ridiculous."
Asked if he would vote for Trump again given the chance, Kramley said it "depends on who's running" -- but he sees no viable Democratic presidential candidate.
At a diner on the outskirts of Doylestown, views were similarly mixed.
"It's not so much that I like Trump, I like the decisions he's making and direction of the country," said Gary Armstrong, an insurance salesman and self-described conservative. 
The 68-year-old said he is "very happy" with his vote for Trump "over what I see on the far left side."
bjt/gw/bgs/sla/jgc

tariff

US says reached deal with Taiwan to lower tariffs, boost investments

BY BEIYI SEOW WITH JOY CHIANG IN TAIPEI

  • Taiwanese President Lai Ching-te had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.
  • The United States said Thursday that it has signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies' investments in America.
  • Taiwanese President Lai Ching-te had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.
The United States said Thursday that it has signed a deal with Taiwan to reduce tariffs on goods from the democratic island, while increasing Taiwanese semiconductor and tech companies' investments in America.
The agreement, the US Commerce Department said, "will drive a massive reshoring of America's semiconductor sector."
Under the deal, Washington will lower tariffs on Taiwanese goods to 15 percent, down from a 20 percent "reciprocal" rate meant to address US trade deficits and practices it deems unfair.
Sector-specific tariffs on Taiwanese auto parts, timber, lumber and wood products will also be capped at 15 percent, while generic pharmaceuticals and certain natural resources will face no "reciprocal" duties, the US Commerce Department added.
Meanwhile, Taiwanese chip and tech businesses are set to make "new, direct investments totalling at least $250 billion" in the United States to build and expand capacity in areas like advanced semiconductors and artificial intelligence, the department said.
Taiwan will also provide "credit guarantees of at least $250 billion to facilitate additional investment by Taiwanese enterprises," the department said adding that this would support the growth of the US semiconductor supply chain.
Taiwan's government said the new tariff will not stack on top of existing duties, which had been a major concern for local industries.
"Of course it's good that the reciprocal tariff has been lowered to 15 percent -- at least it puts us on par with our main competitors South Korea and Japan," said Chris Wu, sales director for Taiwanese machine tool maker Litz Hitech Corp. 
But, given the company's single-digit profit margins, "there is no way we can absorb the tariff" for US customers, he said. 
The department's announcement did not mention names, but the deal has key implications for Taiwanese chipmaking titan TSMC, the world's biggest contract maker of microchips used in everything from Apple phones to Nvidia's cutting-edge AI hardware.
In an interview with CNBC, Commerce Secretary Howard Lutnick said TSMC has bought land and could expand in Arizona as part of the deal.
"They just bought hundreds of acres adjacent to their property. Now I'm going to let them go through it with their board and give them time," he said.
TSMC did not immediately respond to a request for comment.
Taiwanese producers who invest in the United States will also be treated more favorably when it comes to future semiconductor duties, the Commerce Department said.
Firms building new US chip capacity may import up to 2.5 times their planned capacity without paying sector-specific duties during construction. The quota lowers to 1.5 times once projects are completed.
A day prior, US officials held off imposing wider chip tariffs, instead announcing a 25 percent duty on certain semiconductors meant to be shipped abroad -- a key step in allowing Nvidia to sell advanced AI chips to China.
Ryan Majerus, a former US trade official, told AFP that although chip tariffs are currently narrowly targeted, Washington "signaled there is certainly potential for it to grow."
Majerus, now a partner at law firm King & Spalding, added that the deal had parallels to those with other US partners. The European Union and Japan, for example, both also secured a 15-percent tariff rate.

'Self-sufficient'

"The objective is to bring 40 percent of Taiwan's entire supply chain and production, to domestically bring it into America," Lutnick told CNBC.
"We're going to bring it all over, so we become self-sufficient in the capacity of building semiconductors," he added.
The agreement comes after months of negotiations.
Taiwanese President Lai Ching-te had pledged to boost investments in the United States and increase defense spending as his government tried to lower US duties, and avoid a toll on its semiconductor chip exports.
Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.
But US President Donald Trump previously accused Taiwan of stealing the US chip industry, and his administration had made clear it wants more of the critical technology made on American soil.
Taiwan's trade surplus in goods with the United States was around $74 billion in 2024. More than half of its exports to the United States are information and communications technology products -- including semiconductors.
bys/iv/jgc/ami/ane

conflict

Venezuela's Machado says she 'presented' Trump with Nobel medal

BY DANNY KEMP

  • "I presented the president of the United States the medal of the Nobel Peace Prize," Machado told reporters outside the US capitol, where she met with lawmakers after having lunch with Trump at the White House.
  • Venezuelan opposition leader Maria Corina Machado said Thursday she "presented" her Nobel Peace Prize medal to Donald Trump, in a bid to win over the US president who had sidelined her since overthrowing Nicolas Maduro.
  • "I presented the president of the United States the medal of the Nobel Peace Prize," Machado told reporters outside the US capitol, where she met with lawmakers after having lunch with Trump at the White House.
Venezuelan opposition leader Maria Corina Machado said Thursday she "presented" her Nobel Peace Prize medal to Donald Trump, in a bid to win over the US president who had sidelined her since overthrowing Nicolas Maduro.
Her "wonderful gesture of mutual respect," as Trump called it Thursday, comes after the Republican said the award should have gone to him instead -- and after he refused to back Machado following the January 3 US military operation to capture Maduro.
"He deserves it, and it was a very emotional moment," Machado later told broadcaster Fox News in an interview.
Despite the gesture, Trump has backed Maduro's vice president Delcy Rodriguez over Machado -- so long as she toes Washington's line, particularly on access to Venezuela's vast oil reserves.
"I presented the president of the United States the medal of the Nobel Peace Prize," Machado told reporters outside the US capitol, where she met with lawmakers after having lunch with Trump at the White House.
Machado, 58, said it was "recognition for his unique commitment with our freedom."
It was not immediately clear if Trump actually kept the award following the closed-door meeting.
The Norwegian Nobel committee says its prizes cannot be transferred.
- 'Not afraid' - 
Trump had campaigned hard to win last year's Nobel Peace Prize for what he says are his efforts to stop eight wars.
Instead it went to Machado, who appeared in Oslo last month to collect her prize -- following a daring escape from Venezuela by boat -- and then dedicated it to Trump.
Venezuela's opposition has argued and presented evidence that Maduro stole the 2024 election from the candidate of Machado's party, Edmundo Gonzalez Urrutia -- claims supported by Washington.
But Trump has said that Machado does not have enough support among Venezuelans, and opted to stick with former Maduro loyalist Rodriguez.
Trump and Rodriguez had their first telephone call on Wednesday and the White House said Thursday he "likes what he's seeing" with Venezuela's interim leaders.
Rodriguez said however that Thursday her government was "not afraid" of a diplomatic clash with Washington.
"We know they are very powerful. We know they are a lethal nuclear power...we are not afraid to confront them diplomatically, through political dialogue," said Rodriguez.
Rodriguez was delivering Maduro's state of the nation address to parliament while the toppled Venezuelan leader is in a New York jail facing drug trafficking charges.
By contrast Machado, who campaigned for years to end leftist Maduro's rule, was greeted by jubilant supporters as she left the White House.
White House Press Secretary Karoline Leavitt said as the lunch started that Machado was a "remarkable and brave voice for many of the people of Venezuela."
But while Leavitt said Trump was "committed to hopefully seeing elections in Venezuela one day," she would not give a timeline.

Sixth tanker seizure

Since Maduro's capture, Trump has said the United States will "run" Venezuela -- exerting pressure through a naval blockade and threats of further attacks -- but has appeared content to let Rodriguez remain in power so long as oil keeps flowing.
US forces on Thursday seized a sixth oil tanker in its campaign to control the South American country's critical fossil fuel sector.
Separately, the first US-brokered sale of Venezuelan oil, worth around $500 million, has been finalized, a US official told AFP on Thursday without identifying the buyer.
Rodriguez in her speech also announced plans for legal reforms to Venezuela's oil sector -- which currently limit the involvement of foreign entities -- but did not give specific details.
Washington has also hailed the release of dozens of political prisoners in the past week, though hundreds remain behind bars.
Meanwhile the shockwaves from the lightning US raid that toppled Maduro continue to reverberate.
Cuba paid tribute on Thursday to 32 soldiers killed in the operation, some of whom had been assigned to Maduro's protection team, in a ceremony attended by revolutionary leader Raul Castro.
burs-dk/sla/jgc

Trump

One year on, it's all about Trump. But for how long?

BY DANNY KEMP

  • At times Trump has also cultivated what looks like a cult of personality, revamping the White House and building a $400 million ballroom, and adding his name to the famed Kennedy Center for the performing arts.
  • On a sunny January morning in Florida, Donald Trump went shopping for marble and onyx for his new White House ballroom.
  • At times Trump has also cultivated what looks like a cult of personality, revamping the White House and building a $400 million ballroom, and adding his name to the famed Kennedy Center for the performing arts.
On a sunny January morning in Florida, Donald Trump went shopping for marble and onyx for his new White House ballroom. A few hours later, he was bombing Venezuela.
It was just one day in an extraordinary year since his return to office, but it summed up how Trump has reshaped the US presidency through the sheer force of his own personality.
And as he enters his second year back in the White House, Trump is increasingly acting as if there are no checks on his power -- either at home or abroad.
"He has really personalized the presidency," Noah Rosenblum, professor of law at New York University, told AFP.
If the former reality TV star's first term dominated news cycles because of its chaos, Trump's second has done so because of a single-minded determination to stamp his mark on the world's most powerful job.
He began with a freewheeling Oval Office appearance on January 20, 2025, during which he pardoned hundreds of pro-Trump rioters who attacked the US Capitol four years earlier.
The Republican leader has kept up the pace ever since. 
An unprecedented blitz of executive orders, outrageous pronouncements and directives for the persecution of his political opponents came in the following days and months.
Trump has shaken the foundations of American democracy as the country prepares to mark its 250th anniversary, caused global turmoil with his tariffs and upended the global order.
"There is one thing. My own morality," Trump, who is the first convicted felon to be elected president, told The New York Times when asked if there were limits on his power.
At times Trump has also cultivated what looks like a cult of personality, revamping the White House and building a $400 million ballroom, and adding his name to the famed Kennedy Center for the performing arts.
And 2026 dawned with an unapologetic Trump Unbound: ordering the capture of Venezuela's Nicolas Maduro, threatening Greenland and sending immigration agents on a deadly operation into Minnesota.
Rosenbaum said the past year had "revealed that the old system had less legitimacy and was more fragile than I had understood, than was widely understood." 

'Expect trouble'

Trump has begun 2026 with a bang. Yet it could also finally show the limits of a presidency that revolves around the whims of one man who will turn 80 years old in June.
The biggest inflection point could come in November's midterm elections. 
While these votes for the control of Congress are always effectively a referendum on sitting presidents, this year's will more than ever be a verdict on Trump himself.
His approval numbers remain low, with the White House battling to show that his economic plans are working despite voter anger over affordability.
If Republicans take a hammering, there are questions about whether Trump could seek to overturn the results, like he tried when Democrat Joe Biden beat him to the presidency in 2020.
"I expect trouble," William Galston of the Brookings Institution told AFP.
"He is more actively involved in the management of the midterms than any president I've seen."
Galston said however that Trump was unlikely to be able to mount any meaningful challenge if Republicans lose control of the House, which would leave him a lame duck president for the remaining two years of his term.
Trump faces challenges on other fronts too. The Supreme Court could clip Trump's wings on tariffs, while his bypassing of Congress by the use of executive orders could also backfire, said Galston. 
"The problem with governing by fiat is that what you weave by day, your successor can unravel by night, which leads to far fewer permanent achievements," Galston said.
With Venezuela, Iran, Greenland, Ukraine and Gaza on Trump's agenda in 2026, the self-professed "America First" president also appears preoccupied by foreign policy.
"That's a problem politically because a lot of the people who voted for him didn't vote for that, they voted for them to focus on the economy. He's paid a significant price for that," added Galston.
dk/jgc/mlm

conflict

Venezuelan interim leader vows oil sector reform after Maduro ouster

  • Without providing details, interim president Delcy Rodriguez told parliament Thursday there would be reforms to Venezuela's Hydrocarbons Law, which limits the involvement of foreign entities in exploiting the nationalized resources.
  • Venezuela's interim president on Thursday announced pending legal reforms to the country's critical fossil fuel sector, as she seeks to recalibrate ties with Washington following the US military ouster of her predecessor, Nicolas Maduro.
  • Without providing details, interim president Delcy Rodriguez told parliament Thursday there would be reforms to Venezuela's Hydrocarbons Law, which limits the involvement of foreign entities in exploiting the nationalized resources.
Venezuela's interim president on Thursday announced pending legal reforms to the country's critical fossil fuel sector, as she seeks to recalibrate ties with Washington following the US military ouster of her predecessor, Nicolas Maduro.
Since the January 3 capture of Maduro, US President Donald Trump has asserted that the United States essentially controls Venezuela, while making clear that accessing its vast oil reserves is a key goal of the intervention.
Sanctioned by Washington since 2019, Venezuela sits on about a fifth of the world's oil reserves and was once a major crude supplier to the United States.
But it produced only around one percent of the world's total crude output in 2024, according to OPEC, having been hampered by years of underinvestment, sanctions and embargoes.
Without providing details, interim president Delcy Rodriguez told parliament Thursday there would be reforms to Venezuela's Hydrocarbons Law, which limits the involvement of foreign entities in exploiting the nationalized resources.
The changes would also touch on so-called anti-blockade provisions which give the government tools to counteract US sanctions in place since 2019.
Trump has recently pressed top oil executives to invest in Venezuela.
Exxon Mobil and ConocoPhillips exited in 2007 after refusing demands by then-president Hugo Chavez to cede majority control to the state. They have been fighting to recoup billions of dollars they say Venezuela owes them.
Chevron is the only US firm operating in Venezuela, under a special sanctions exemption license.
The US Department of Energy has unveiled a plan to develop Venezuela's oil industry and has begun marketing Venezuelan crude.
US Energy Secretary Chris Wright has said Washington will control the sales of Venezuelan oil "indefinitely."
Rodriguez said the envisioned legal reform would result in money for "new fields, to fields where there has never been investment, and to fields where there is no infrastructure."
The South American country produced over one million barrels of oil per day (bpd) in 2025 -- up from a historic low of about 360,000 -- but still far from the three million bpd it was pumping 25 years ago.
Oil exports are Venezuela's main source of revenue.
afc-bc/jt/dg/mlr/des

litigation

US court clears Norway's Equinor to resume wind project halted by Trump

  • Trump's Interior Department in late December suspended all large offshore wind projects in the United States, affecting five projects.
  • A US judge on Thursday authorized work to resume on a New York offshore wind project that had been suspended under an order by President Donald Trump's administration.
  • Trump's Interior Department in late December suspended all large offshore wind projects in the United States, affecting five projects.
A US judge on Thursday authorized work to resume on a New York offshore wind project that had been suspended under an order by President Donald Trump's administration.
US District Judge Carl Nichols granted a preliminary injunction to the Norwegian company Equinor for its Empire Wind project, just three days after a different judge ordered the restart of a project by Denmark's Orsted.
Trump's Interior Department in late December suspended all large offshore wind projects in the United States, affecting five projects.
Empire Wind had requested the court's intervention on an emergency basis, arguing in a January 6 filing that it needed to resume construction by January 16.
Without restarting by that time, "the project faces likely termination due to disruption of a tightly choreographed construction schedule dependent on vessels with constrained availability, delay costs, and the existential threat to the project financing," said the filing.
The venture's legal brief described the suspension order as "arbitrary and capricious."
Nichols granted the motion after a telephone hearing Thursday with the parties. He did not rule on Equinor's underlying challenge to the Trump administration's action.
The project, expected to be fully operational by the end of 2027, could provide enough energy to power 500,000 homes.
Equinor has already invested more than $4 billion in the venture, which is about 60 percent complete, the company said.
Empire Wind "will now focus on safely restarting construction activities that were halted during the suspension period," the company said.
"In addition, the project will continue to engage with the US government to ensure the safe, secure and responsible execution of its operations."
The underlying lawsuit "will continue to proceed," it added. 
The US Department of Interior did not respond to a request for comment.

'Ugly monsters'

The Interior Department on December 22 said it had paused leases for Empire Wind and four other offshore wind projects under construction, citing "national security."
A press release pointed to "radar interference" due to "the movement of massive turbine blades and the highly reflective towers."
The US Department of Energy says wind turbines "can interfere with radar systems if they are located within the line sight of these systems," according to its website.
"In most cases, however, thoughtful wind farm site selection, planning, and other mitigations have resolved conflicts and allow wind power projects to coexist effectively with radar missions," the agency adds.
Trump has long complained that windmills ruin views and are expensive. During a trip last summer to one of his UK golf courses, the US president urged Britain to stop subsidizing the "ugly monsters."
The order on Empire Wind comes after US District Judge Royce Lamberth on Monday cleared another project, Revolution Wind off the coast of Rhode Island, to resume construction.
Orsted has a 50-percent stake in the project alongside a renewables infrastructure developer that is part of the BlackRock investment group.
In a one-page order, Lamberth wrote that Revolution Wind was likely to succeed in underlying litigation, faced "irreparable harm" without an injunction, and the venture's request was "in the public interest."
Other projects affected by the Interior Department December action are Sunrise Wind, also in New York state and the CVOW project in Virginia.  
The fifth project, Vineyard Wind, has filed a challenge to the Trump action in federal court in Massachusetts.
tu-jmb/des

Global Edition

Oil prices slump after Trump eases concerns over Iran

  • But later in the day there was "kind of a roll-back in the megacap stock and semiconductors," said Briefing.com analyst Patrick O'Hare.
  • Oil prices tumbled Thursday after US President Donald Trump moderated his rhetoric on Iran, while US stocks bounced back after two down days.
  • But later in the day there was "kind of a roll-back in the megacap stock and semiconductors," said Briefing.com analyst Patrick O'Hare.
Oil prices tumbled Thursday after US President Donald Trump moderated his rhetoric on Iran, while US stocks bounced back after two down days.
International oil benchmarks Brent North Sea crude and West Texas Intermediate slumped more than four percent after Trump on Wednesday said he would "watch it and see" on possible intervention in the Islamic republic.
Trump added that he had been told that the killings of protesters there had stopped.
Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.
"As tensions are dialed down between Iran and the US, the political risk premium is rapidly getting priced out of the oil price," said XTB research director Kathleen Brooks.
In stock market trading, a forecast-busting fourth-quarter net profit by Taiwanese chipmaking titan TSMC helped turn around investor sentiment.
The tech-rich Nasdaq piled on more than one percent early in the session behind large gains among leading chip companies. 
But later in the day there was "kind of a roll-back in the megacap stock and semiconductors," said Briefing.com analyst Patrick O'Hare.
The weakening of US equities followed remarks from US Commerce Secretary Howard Lutnick indicating that semiconductor companies that don't build in the United States could face 100 percent tariffs.
All three US indices finished moderately higher, with the broad-based S&P 500 up 0.3 percent.
Investment banks Morgan Stanley and Goldman Sachs surged 5.8 percent and 4.6 percent after reporting strong profits on surging revenues tied to mergers and acquisitions.
In European trading, London's top-tier FTSE 100 index hit a fresh record high after official data showed that Britain's economy rebounded in November.
Frankfurt rose as traders reacted to news that Germany's economy eked out meager growth in 2025, dodging a third straight year of recession.
The Paris stock market fell slightly, dragged down in part by a drop in the share price of TotalEnergies in the wake of oil's retreat.
In Asia, Tokyo closed down 0.4 percent, cooling off after gains fueled by speculation that Prime Minister Sanae Takaichi would call an election to capitalize on strong public approval ratings.
Silver prices, which have surged to records in recent weeks, moved 0.3 percent lower after tumbling more than seven percent at one point. Gold prices also retreated modestly.

Key figures at around 2115 GMT

Brent North Sea Crude: DOWN 4.2 percent at $63.76 per barrel
West Texas Intermediate: DOWN 4.6 percent at $59.19 per barrel
New York - Dow: UP 0.6 percent at 49,442.44 (close) 
New York - S&P 500: UP 0.3 percent at 6,944.47 (close)
New York - Nasdaq Composite: UP 0.3 percent at 23,530.02 (close)
London - FTSE 100: UP 0.5 percent at 10,238.94 (close)
Paris - CAC 40: DOWN 0.2 percent at 8,313.12 (close)
Frankfurt - DAX: UP 0.3 percent at 25,352.39 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 54,110.50 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 26,923.62 (close)
Shanghai - Composite: DOWN 0.3 percent at 4,112.60 (close)
Euro/dollar: DOWN at $1.1605 from $1.1644 on Wednesday
Pound/dollar: DOWN at $1.3377 from $1.3443
Dollar/yen: UP at 158.63 yen from 158.46 yen
Euro/pound: UP at 86.75 pence from 86.61 pence
burs-jmb/iv

trade

Long-awaited EU-Mercosur trade pact set for signing

BY HUGO OLAZAR WITH MARTIN RASCHINSKY IN BUENOS AIRES

  • For the South American bloc, it was a rare victory at a time of "crisis and internal fragmentation" on how to deal with threats from Trump against countries such as Venezuela and Cuba.
  • The European Union and South American bloc Mercosur are set to sign an agreement Saturday, more than 25 years in the making, to create one of the world's largest free trade areas.
  • For the South American bloc, it was a rare victory at a time of "crisis and internal fragmentation" on how to deal with threats from Trump against countries such as Venezuela and Cuba.
The European Union and South American bloc Mercosur are set to sign an agreement Saturday, more than 25 years in the making, to create one of the world's largest free trade areas.
Agreed in Brussels last week despite opposition from European farmers who fear for their bottom line, the pact is finally set to be signed in the Paraguayan capital Asuncion.
Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers.
The treaty eliminates tariffs on more than 90 percent of bilateral trade.
It is meant to favor exports of European cars, machinery, wines, and spirits to Mercosur, which will in exchange have easier access for its beef, sugar, rice, honey and soy.
The agreement has been under negotiation since 1999 between the EU and Mercosur founding members Argentina, Brazil, Uruguay, and Paraguay, which holds the bloc's rotating presidency.
Bolivia is also a member, but was not among the bloc's founders and will not be a party to the pact.
European Commission President Ursula von der Leyen is scheduled to travel to Rio de Janeiro on Friday with European Council head Antonio Costa to meet President Luiz Inacio Lula da Silva. 
They will fly from there to Asuncion for the signing.
In addition to host president Santiago Pena, Uruguay's president Yamandu Orsi will also attend the signing, but Brazil's Lula will not travel to Paraguay, a presidential source told AFP Thursday.
The source said the signing was initially planned as a ministerial-level event, and Paraguay had issued "last-minute" invitations to some presidents.
The attendance of Argentina's leader Javier Milei is not confirmed.

'Historic day'

Lula last week hailed an "historic day for multilateralism" after the EU agreement, in the face of an "international context of growing protectionism and unilateralism."
The European Commission, which negotiated the text, failed to win over all member states, with heavyweight France leading an ultimately unsuccessful push to sink it.
Ireland, Poland, Hungary and Austria also voted against the accord, but this was not enough to block it after holdout Italy ultimately threw its weight behind the pact.
Argentine trade analyst Luciana Ghiotto told AFP the agreement was essential "to show that there is a third way without tying ourselves to the United States or China" in a time of heightened unilateralism.
"It is the longest-running negotiation worldwide, and the rush to conclude it has to do with (US President) Donald Trump's administration and its massive use of tariffs," she added.
Arguing that the existing trade regime was unfavorable to his country, Trump has imposed tariffs on a vast array of products imported to the United States from all over the world, since he returned to the White House a year ago.
For the EU, the deal with Mercosur "is a way to shore up autonomy and a place as a significant actor internationally," said political scientist Alejandro Frenkel of Argentina's University of San Martin.
For the South American bloc, it was a rare victory at a time of "crisis and internal fragmentation" on how to deal with threats from Trump against countries such as Venezuela and Cuba.
After Saturday's signing, the pact must still be ratified by Mercosur members and the European Parliament, where a majority in favor is still not certain.
European farmers fear the deal will lead to an influx of cheaper South American products due to production standards considered less stringent.
Thousands have been protesting in France, Poland, Ireland, and Belgium in recent days.
In a bid to allay fears, the European Commission announced a crisis fund and safeguards allowing for the suspension of preferential tariffs in case of a damaging surge in imports.
bur-mry/lm/mlr/iv/des

internet

Fury over Grok sexualized images despite new restrictions

BY BENJAMIN LEGENDRE WITH ANUJ CHOPRA IN WASHINGTON

  • But just hours later, the Philippines announced the "immediate blocking" of Grok late Thursday.
  • Global outrage persisted Thursday over sexualized deepfakes created by Elon Musk's AI tool Grok, even after his social media platform X said it was blocking the chatbot from undressing images in certain locations.
  • But just hours later, the Philippines announced the "immediate blocking" of Grok late Thursday.
Global outrage persisted Thursday over sexualized deepfakes created by Elon Musk's AI tool Grok, even after his social media platform X said it was blocking the chatbot from undressing images in certain locations.
The Philippines became the third country to ban Grok, following Southeast Asian neighbours Malaysia and Indonesia, while Britain and France said they would maintain pressure after the chatbot cranked out a flood of lewd photos of women and children.
X announced Wednesday that it would "geoblock the ability" of all Grok and X users to create images of people in "bikinis, underwear, and similar attire" in jurisdictions where such actions are illegal.
It was not immediately clear where the tool would be restricted.
The announcement came after California's attorney general launched an investigation into xAI -- the developer of Grok -- over the sexually explicit material and several countries opened their own probes.
Following an initial uproar last week, Grok said it would restrict image generation and editing to paying subscribers, prompting outraged critics to accuse Musk's company of monetizing the problem rather than solving it.
Bowing to global pressure, X on Wednesday said it would restrict "all users," including paying subscribers, from using the Grok account to edit images of people in "revealing clothes such as bikinis."
But just hours later, the Philippines announced the "immediate blocking" of Grok late Thursday.
Unmoved by X's announcement, cybercrime chief Renato Paraiso said earlier that authorities would monitor whether the platform follows through on its promises.
"We need to clean the internet now because much toxic content is appearing, especially with the advent of AI," said Philippine telecommunications secretary Henry Rhoel Aguda.
Meanwhile, Malaysia on Thursday said its regulators found that X's measures to prevent Grok from generating revealing images were "not done in totality."
If X can successfully deactivate and prevent the generation of such content, Malaysia will lift the temporary restriction on Grok, communications minister Fahmi Fadzil said.

'Zero tolerance'

British Prime Minister Keir Starmer -- a favourite target of Musk's political posts -- welcomed that X was acting to ensure "full compliance with UK law," but insisted that it "must happen immediately."
"If we need to strengthen existing laws further, we are prepare to do that," Starmer wrote on X.
Pressure has been building on xAI to rein in Grok after its so-called "Spicy Mode" feature allowed users to create sexualized deepfakes using simple text prompts such as "put her in a bikini" or "remove her clothes."
The European Commission, which acts as the EU's digital watchdog, has said it will "carefully assess" measures taken by X to ensure "they effectively protect citizens."
"France and Europe taking action... is producing results," Paris's digital minister Anne Le Henanff told AFP on Thursday, warning that "no platform is above the law."
California Governor Gavin Newsom said that xAI's "vile" decision to allow sexually explicit deepfakes to proliferate prompted him to urge the state's attorney general, Rob Bonta, to hold the company accountable.
"We have zero tolerance for the AI-based creation and dissemination of nonconsensual intimate images or of child sexual abuse material," Bonta said on Wednesday.
He added that the California investigation would determine whether xAI violated state law after the explicit imagery was "used to harass people across the internet."
Further adding pressure on xAI, a coalition of 28 civil society groups submitted open letters to the CEOs of Apple and Google on Wednesday, urging them to ban Grok and X from their app stores amid the surge in sexualized images.
burs-ac/arp

France

Niger faces dilemma over uranium shipment stuck at airport

BY PIERRE DONADIEU, WITH PATRICIO ARANA IN PARIS

  • While the contents cannot formally be confirmed, several sources -- including Wamaps, a group of west African journalists specialising in Sahel security -- say it is the uranium shipment that left Arlit in late November. 
  • A huge uranium shipment that left northern Niger in late November has been stuck for weeks at Niamey airport.
  • While the contents cannot formally be confirmed, several sources -- including Wamaps, a group of west African journalists specialising in Sahel security -- say it is the uranium shipment that left Arlit in late November. 
A huge uranium shipment that left northern Niger in late November has been stuck for weeks at Niamey airport.
The cargo has created a diplomatic headache for the junta that seized power in 2023 and has since turned away from traditional ally France and closer to Russia. 
Here is what we know about the shipment, estimated at more than 1,000 tonnes, which the Sahelian country -- among the world's leading producers of uranium -- wants to sell: 

Shipment at airport

Nigerien uranium -- long mined by French firm Orano (formerly Areva) -- is at the heart of the junta's push to assert sovereignty over its resources.  
In June, the military leadership announced the nationalisation of the Somair mine, an Orano subsidiary located in Arlit in the north. 
Weeks later, it said it would sell Niger's uranium on the international market. 
Using satellite images, AFP has established that 34 trucks arrived at Niamey airport between December 3 and 5. 
While the contents cannot formally be confirmed, several sources -- including Wamaps, a group of west African journalists specialising in Sahel security -- say it is the uranium shipment that left Arlit in late November. 
The trucks remained inside the airport compound for nearly a month, but by January 14, only four were still visible. 
"The cargo is entirely within the airport; it has been moved to secure locations," a source familiar with the matter told AFP. 
"It is not intended to leave the country anytime soon," the source added. 

A risky route

Moving goods out of landlocked Niger usually requires access to a neighbouring country's port. 
Niger shares borders with Nigeria and Benin. 
But the junta's relations with Abuja are tense and ties with Cotonou are even worse. 
Niger accuses Benin of seeking to destabilise the country and has closed the border. 
That means that the most direct route via Benin's port of Seme-Kpodji is not an option. 
The alternative would be to move the "yellowcake" -- a concentrate of uranium -- through Togo. 
But that entails crossing western Niger and Burkina Faso, which is rife with jihadist violence. 
The route would go through Torodi in southwestern Niger where the local prefect was killed earlier this year. 
"Niger is hesitating because of growing security risks,", the source said. 
The Tillaberi region bordering Burkina Faso became the "deadliest region across central Sahel" in 2025, according to ACLED, an NGO that monitors conflicts.

The air option

The uranium could also be transported by air. 
Satellite images show two Russian-made Ilyushin Il-76 cargo planes at Niamey between January 9 and 13. 
But flight-tracking data analysed by AFP to identify the aircraft owners revealed no registered movements. 
At this stage, the buyer of the uranium remains unknown and Moscow has not officially expressed interest in the shipment. 
Russian foreign ministry spokeswoman Maria Zakharova said she would "look into the matter" and would respond "without fail", when she was asked by AFP during a briefing Thursday. 
During a visit to Niamey in the summer, Russia's energy minister declared Moscow's "main goal is to mine uranium" in Niger. 
Russian atomic agency Rosatom later also signed a memorandum on civilian nuclear cooperation with Niger. 

Legal challenge

In December, France launched a probe into the suspected theft of this uranium "in the interests of a foreign power". 
Orano says the cargo still belongs to it, a claim Niamey rejects and accuses the company in turn of owing 58 billion CFA francs ($102 million) in debts and unpaid bills.
The legal case could complicate matters for any country through which the shipment might transit -- starting with Togo. 
"This complaint has changed the balance of power," the source said. 
"Togo is now hesitating because, under its international commitments, the cargo would have to be seized immediately if it entered its territory," the source added. 
bur-pid/bdi/rh/kjm

earnings

Goldman Sachs' profits jump on hot merger market

  • Fueled by higher revenues from merger advisory services and financial markets trading, Goldman Sachs reported profits of $4.4 billion in the fourth quarter, up 12 percent from the year-ago period.
  • Goldman Sachs' quarterly profits jumped on robust merger activity as clients seize a "window" of opportunity during the Trump administration, bank officials said Thursday.
  • Fueled by higher revenues from merger advisory services and financial markets trading, Goldman Sachs reported profits of $4.4 billion in the fourth quarter, up 12 percent from the year-ago period.
Goldman Sachs' quarterly profits jumped on robust merger activity as clients seize a "window" of opportunity during the Trump administration, bank officials said Thursday.
Fueled by higher revenues from merger advisory services and financial markets trading, Goldman Sachs reported profits of $4.4 billion in the fourth quarter, up 12 percent from the year-ago period.
Executives expressed a bullish outlook on continued deal flow in 2026, noting the potential for more initial public offerings and that its backlog of anticipated future deal revenue stands at a four-year high. 
CEO David Solomon said corporations sense a better climate under Donald Trump after the Biden administration, where leading antitrust officials were viewed as broadly hostile to consolidation.
"CEOs definitely believe that the art of the deal and scaled consolidation is possible now," Solomon said on a conference call with analysts.
Overall revenues were $13.5 billion, down three percent from the year-ago period, due largely to ending its credit card business with Apple.
However, Goldman's profits were boosted by a $2.1 billion accounting benefit from dropping the Apple credit card venture.
Investment banking fees came in at $2.6 billion in the final three months of 2025, up 25 percent. The New York banking giant also scored double-digit increases in revenues for equities trading and fixed income, currency and commodities.
Goldman's press release did not mention specific transactions, but the company advised Metsera in its buyout of up to $10 billion from Pfizer.
In prior quarters, Goldman has pointed to $12 billion deals involving energy company NRG and in Electronic Arts' $55 billion deal to go private.
"I think CEOs, boards are looking and saying 'Okay, we've got a window here a handful of years, to consider big, huge, transformative things,'" said Solomon.
"I think the world is set up at the moment to be incredibly constructive in 2026 in M&A and capital markets activity," Solomon said. 
"What could change that? Something could go on in the world, sort of an exogenous event, or macro event that changes the sentiment," he said, adding that this is not the bank's view of a likely scenario.
Goldman's earnings per share topped analyst estimates while revenues lagged projections.
Shares jumped 4.6 percent in early-afternoon trading.
jmb/md

tourism

Spain hosted record 97 mn foreign tourists in 2025

  • - Overtourism backlash - But as elsewhere, a backlash against the social and economic consequences of mass tourism is growing as Spain grapples with a persistent housing crisis.
  • A record 97 million foreign tourists visited Spain in 2025 as the economically vital sector set a new benchmark for the second year running, the tourism minister said on Thursday.
  • - Overtourism backlash - But as elsewhere, a backlash against the social and economic consequences of mass tourism is growing as Spain grapples with a persistent housing crisis.
A record 97 million foreign tourists visited Spain in 2025 as the economically vital sector set a new benchmark for the second year running, the tourism minister said on Thursday.
The first estimation represented a 3.5-percent increase on the 2024 figure of 94 million, while spending climbed 6.8 percent to 135 billion euros ($157 billion), Jordi Hereu told a press conference in Madrid.
"This is a collective success by the whole country that perfectly demonstrates Spain's enormous attractivity, because Spain is a country that seduces the world," he said.
Most visitors are European, with British, German and French holidaymakers accounting for around half of the arrivals, said Pedro Aznar, a professor at Esade business school.
Like southern European neighbour Portugal, and Greece, Spain has rebounded from harsh austerity measures and heavy debt in the early 2010s, with a tourism rebound following the Covid-19 pandemic playing an important role.
Tourism represents around 13 percent of the economy in the world's second most-visited country after France, whose dynamic growth has outstripped EU peers.
The Bank of Spain has predicted growth of 2.9 percent in 2025 for the European Union's fourth-largest economy, more than double the average expected in the eurozone.

Overtourism backlash

But as elsewhere, a backlash against the social and economic consequences of mass tourism is growing as Spain grapples with a persistent housing crisis.
Locals have protested in their thousands, complaining that surging visitor numbers are changing the fabric of their neighbourhoods, particularly in hotspots including Barcelona, the southern region of Andalusia and the Canary and Balearic Islands.
Although the sector's growth generates wealth and jobs, the high numbers have "a clear impact on residents" in specific destinations as tourist accommodation "offers higher profitability", Aznar told AFP.
Barcelona and the popular southern coastal city of Malaga have announced measures to clamp down on short-term tourist rentals in a bid to tame popular discontent at rampant housing prices.
The leftist government, under pressure to find a solution to one of the population's main concerns, has ordered online holiday accommodation giants Airbnb and Booking.com to take down tens of thousands of adverts deemed to have breached the regulations for short-term rentals.
"The impact on environmental sustainability is also relevant," Aznar said, in a country that suffers persistent water supply stress and emerged from a years-long drought in 2025.
rbj/imm/ds/jh

growth

German economy returns to growth, but headwinds fierce

BY SAM REEVES

  • Destastis noted it was a "turbulent year" for Germany's foreign trade, with exports falling 0.3 percent, the third straight year of contraction.
  • Germany's economy eked out meagre growth in 2025 and dodged a third straight year of recession, data showed Thursday, but Europe's languishing industrial powerhouse still faces huge challenges to return to long-term health.
  • Destastis noted it was a "turbulent year" for Germany's foreign trade, with exports falling 0.3 percent, the third straight year of contraction.
Germany's economy eked out meagre growth in 2025 and dodged a third straight year of recession, data showed Thursday, but Europe's languishing industrial powerhouse still faces huge challenges to return to long-term health.
Battered by an energy shock triggered by the Ukraine war, a manufacturing slump and weakening demand in the key Chinese market, the world's third-biggest economy shrank in both 2023 and 2024.
Despite the shock of last year's US tariffs blitz, the German economy returned to growth with a modest expansion of 0.2 percent, helped by higher government and household spending, according to statistics agency Destastis. 
But another year of falling exports weighed on Europe's top economy, the agency's chief Ruth Brand said. 
"Germany's export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from China," she said.
The preliminary GDP reading was in line with a government forecast. For the final quarter of 2025, the agency estimated that the economy grew 0.2 percent from the third quarter. 

Merz under pressure

A return to growth could offer some relief to Chancellor Friedrich Merz, who took power last May vowing to revive the economy but has faced mounting criticism that efforts are moving too slowly.
In a speech Wednesday, Merz conceded that "the situation of the German economy at the beginning of 2026 is very critical in many areas".
"Our economy is not competitive enough... Productivity in Germany has been at a consistently low level for ten years. We need to change that," he said.
Merz is betting on a public spending spree on defence and infrastructure to get the economy moving again, with the government's latest projection in October forecasting growth this year will reach 1.3 percent. 
But after an initial burst of optimism last year, doubts have set in about whether his governing coalition can get to grips with the problems.
The German central bank and several institutes have recently lowered growth forecasts and cautioned the government risks wasting much of the extra money that it borrows and is neglecting much-needed reforms.
"A number of measures are still needed to help the economy out of its structural crisis in the long term and make Germany an attractive business location again," Timo Wollmershaeuser, the Ifo institute's head of forecasts, told AFP.

'Deepest crisis' since WWII

Last month the Federation of German Industries issued a stark warning that the export-driven economy was suffering its "deepest crisis" since the aftermath of World War II, and that the government was failing to respond "decisively".
Appeals for help have increasingly come from the country's traditional big industries, from automakers to factory equipment manufacturers and chemical giants, and 2025 was marked by a steady drumbeat of industrial job losses.
Output in the manufacturing sector declined for the third straight year in 2025, dropping 1.3 percent from 2024, though the fall was less pronounced than in the previous two years, Destatis said.
The key auto and mechanical engineering industries were hit especially hard as they "faced stronger competition on global sales markets", it said.
Adding to the headwinds were US President Donald Trump's tariffs, an especially heavy blow for Germany as the United States is the country's top export market.
China, long a major market for German exporters, also proved a challenging environment as demand has been weakening due to a prolonged slowdown, while many Chinese firms have emerged as rivals to German heavyweights.
Destastis noted it was a "turbulent year" for Germany's foreign trade, with exports falling 0.3 percent, the third straight year of contraction.
Merz has sought to defend his government's record, pointing to relief measures such as a reduction in industrial energy costs, and said Wednesday that new firms were creating jobs lost in traditional industries.
"We are seeing a large number of young companies being founded," he said.
bur-sr/fz/js

earnings

Taiwan's TSMC logs net profit jump on AI boom

BY ALLISON JACKSON, WITH KATIE FORSTER IN TOKYO

  • Net revenue for the fourth quarter rose 20.5 percent from a year ago to NT$1.05 trillion, TSMC said, also beating expectations.
  • Taiwanese chipmaking titan TSMC announced Thursday a forecast-busting net profit for the fourth quarter in a sign of sustained global demand for artificial intelligence technology.
  • Net revenue for the fourth quarter rose 20.5 percent from a year ago to NT$1.05 trillion, TSMC said, also beating expectations.
Taiwanese chipmaking titan TSMC announced Thursday a forecast-busting net profit for the fourth quarter in a sign of sustained global demand for artificial intelligence technology.
TSMC is the world's biggest contract maker of microchips used in everything from Apple phones to Nvidia's cutting-edge AI hardware.
The company has been a massive beneficiary of the AI revolution that has seen tech giants pour many billions of dollars into chips, servers and data centres.
Some market-watchers fear the bubble of excitement around AI could burst and cause a stock rout, but TSMC's results marked the latest high point for the firm.
"Our conviction in the multi-year AI mega trend remains strong, and we believe the demand for semiconductors will continue to be very fundamental," TSMC chairman CC Wei said.
"By expanding our global footprint while continuing to invest in Taiwan, TSMC can continue to be the trusted technology and capacity provider of the global logic industry for years to come."
TSMC said net profit for the three months to December increased 35 percent year-on-year to NT$505.7 billion ($16 billion), beating the NT$466.69 billion forecast by analysts surveyed by Bloomberg News.
Net revenue for the fourth quarter rose 20.5 percent from a year ago to NT$1.05 trillion, TSMC said, also beating expectations.
TSMC -- a bellwether for AI investment -- expects capital spending to reach as high as $56 billion in 2026. 

US pressure

Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.
The strong results came after Taipei said it had reached a "general consensus" with the United States on a trade deal that the island hopes will reduce its current 20 percent tariff and shield its semiconductor industry from levies.
Taiwan has previously vowed to increase investment in the United States, purchase more US energy and boost defence spending in a bid to head off US President Donald Trump's sweeping tariffs.
The US government launched investigations under Section 232 into semiconductors and chipmaking equipment last year. Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.
Trump signed an order Wednesday imposing a 25 percent tariff on semiconductors that are "transshipped through the United States to other foreign countries" -- enabling the government to take a cut from chips sold to China.
Taiwan has been under pressure to move more chip production to US soil. TSMC pledged last year to invest an additional US$100 billion in the United States.
But Trump's administration has made clear it wants more of the critical technology made in the United States.
TSMC's global expansion along with "new investments, specialty technologies and inflationary costs" were contributing to "cost challenges", chief financial officer Wendell Huang warned.
Despite US pressure and the constant threat of invasion from China, which claims Taiwan is part of its territory, the island plans to keep making the "most advanced" chips on home ground, Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently.
amj/cms

diplomacy

China's top diplomat calls Carney visit 'turning point' in ties

  • The first visit by a Canadian leader to Beijing in eight years was a "turning point and symbol for the relationship between two countries", Chinese Foreign Minister Wang Yi said in a statement, according to a readout.
  • China's top diplomat said Thursday that a visit by Canadian Prime Minister Mark Carney to Beijing marked a "turning point" in the two countries' long acrimonious relationship.
  • The first visit by a Canadian leader to Beijing in eight years was a "turning point and symbol for the relationship between two countries", Chinese Foreign Minister Wang Yi said in a statement, according to a readout.
China's top diplomat said Thursday that a visit by Canadian Prime Minister Mark Carney to Beijing marked a "turning point" in the two countries' long acrimonious relationship.
The first visit by a Canadian leader to Beijing in eight years was a "turning point and symbol for the relationship between two countries", Chinese Foreign Minister Wang Yi said in a statement, according to a readout.
"The leaders of the two countries will hold meetings and talks, which I believe will open up new prospects for bilateral relations," he added.
Carney, who has also said ties between the two sides are shifting, is meeting with top Chinese leaders in Beijing on Thursday, as he pulls away from traditional ally the United States.
Following President Donald Trump's aggressive tariffs on Canadian products, Carney has sought to reduce his country's economic reliance on its main market, the United States.
Video from Chinese state media showed Carney arriving in Beijing for his four-day state visit late Wednesday evening to a red carpet welcome.
He is scheduled to meet with Chinese President Xi Jinping and Premier Li Qiang, among other government and business leaders for trade talks.
Ties between the two nations withered in 2018, when Canada arrested the daughter of Huawei's founder on a US warrant, and China's retaliatory detention of two Canadians on espionage charges.

'Right track'

The two countries imposed tit-for-tat tariffs on each other's exports in the years that ensued, with China also being accused of interfering in Canada's elections.
Caught in the tariffs crossfire were Chinese electric vehicles along with Canadian canola oil and other agricultural goods.
The last time Chinese and Canadian leaders formally met was when then prime minister Justin Trudeau visited Beijing in 2017.
But there have been signs of warming ties under Carney, who met Xi on the sidelines of an APEC summit in October.
China has shown a willingness to rekindle the relationship, with Xi telling Carney after their meeting that it has "shown a recovery" towards "the right track".
Officials from the two countries have been in talks to lower tariffs, but an agreement has yet to be reached.
Beijing, meanwhile, said this week it "attaches high importance" to Carney's visit.

Pivot from US

Ottawa has traditionally been hawkish towards Beijing, positioning itself in alliance with the United States.
But Canada has been hit especially hard by Trump's steep tariffs on steel, aluminium, vehicles and lumber, prompting a change of heart.
In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.
But the United States remains far and away its largest market, buying around 75 percent of Canadian exports in 2024, according to Canadian government statistics.
While Ottawa has stressed that China is Canada's second-largest market, it lags far behind, buying less than four percent of Canadian exports in 2024.
Carney will be looking to raise that figure, with his office saying the visit aims to "elevate engagement on trade, energy, agriculture, and international security".
bur-dhw/je/abs

diplomacy

New Zealand warned Pacific neighbour over oil smuggling 'shadow fleet'

BY STEVEN TRASK

  • "New Zealand has raised serious concerns directly with the Cook Islands government about the management of its shipping registry, including the flagging of shadow fleet vessels," New Zealand's foreign affairs department said.
  • A "shadow fleet" of 19 tankers suspected of smuggling oil for Russia and Iran was flagged by New Zealand with Cook Islands authorities in 2024, according to a confidential list obtained by AFP. The small Pacific island is home to a flourishing international shipping registry, allowing foreign vessels to sail under its flag for a modest fee of a few thousand dollars.
  • "New Zealand has raised serious concerns directly with the Cook Islands government about the management of its shipping registry, including the flagging of shadow fleet vessels," New Zealand's foreign affairs department said.
A "shadow fleet" of 19 tankers suspected of smuggling oil for Russia and Iran was flagged by New Zealand with Cook Islands authorities in 2024, according to a confidential list obtained by AFP.
The small Pacific island is home to a flourishing international shipping registry, allowing foreign vessels to sail under its flag for a modest fee of a few thousand dollars.
There is mounting evidence the archipelago has become a haven for foreign smugglers, who sail under the Cook Islands flag to escape scrutiny as they flout Western sanctions.
New Zealand officials in 2024 compiled a list of 19 tankers -- or "vessels of concern" -- that had been registered to the Cook Islands in recent years.
The list included the Arabesca, a crude oil tanker that frequently calls at Russian ports in the Baltic Sea.
The Arabesca was in 2025 blacklisted by the UK, Canada, Switzerland and the European Union for smuggling Russian oil.
Also named in New Zealand's list was a ship called the Maruti, a chemical tanker often seen sailing through the Persian Gulf.
The Maruti transported "hundreds of thousands of barrels" of Iranian naptha fuel while sailing under the Cook Islands' flag in 2025, according to a US sanctions notice published in December.
Both the Arabesca and the Maruti have since been deleted from the Cook Islands' shipping registry.
The Cook Islands has apparently brushed off New Zealand's concerns about some other vessels.
Of the 19 ships singled out by New Zealand in 2024, seven remained registered to the Cook Islands as of mid-January this year.
This included tankers the Bonetta and the Ocean Wave, which are suspected by the United States of hauling crude oil from Iran.
AFP could not reach the owners of the Arabesca, Maruti, Bonetta and Ocean Wave for comment.
New Zealand's list, released to AFP under freedom of information laws, was raised with Cook Islands through diplomatic channels in 2024. 

Shadow fleet

Western sanctions aim to curb Iran and Russia cashing in on oil sales, limiting funding for Tehran's nuclear programme or Moscow's war machine.
New Zealand alleges the Cook Islands has been exploited by transnational maritime smuggling networks known as the "shadow fleet".
By registering in places such as the Cook Islands -- where they are subject to less stringent checks -- shadow fleet ships can disguise themselves as legitimate vessels.
Often the shipping registries are unaware of the ship's true purpose.
Cook Islands' links to sanctions evasion are a source of potential embarrasment to New Zealand, which once governed the Pacific nation of some 15,000 people.
New Zealand remains the Cook Islands' closest diplomatic partner and still has a constitutional responsibility to help with foreign affairs and defence.
"New Zealand has raised serious concerns directly with the Cook Islands government about the management of its shipping registry, including the flagging of shadow fleet vessels," New Zealand's foreign affairs department said.
Former Royal New Zealand Navy officer Mark Douglas said some 150 foreign tankers were registered in the Cook Islands at its busiest point in 2024.
"It certainly seemed at its peak that it was 'pay to play'," said Douglas, now an analyst for Starboard Maritime Intelligence.
"If you turned up with some good paperwork and the cheque cleared, you were able to get the Cook Islands' flag."
Cook Islands had since de-registered many of the most dubious vessels, Douglas said, but there were "some left that have question marks over them".
The UN-backed International Maritime Organisation currently lists 40 tankers registered to the Cook Islands.
The Cook Islands offers what is known as a "flag of convenience".
This means foreign ship owners can pay to sail under the flag without ever setting foot on the archipelago, halfway between New Zealand and Hawaii.
"Many shadow fleet vessels use flags of convenience from countries that are either less inclined or unable to enforce Western sanctions," notes a European Parliament briefing from 2024.
The Cook Islands was one of the "top countries whose flags are used by shadow tankers transporting Russian crude oil", according to the report.

Growing fast

Shipping journal Lloyd's List in 2024 crowned Maritime Cook Islands the "fastest growing registry" in the world.
While Cook Islands' fees are opaque, the revenue generated by shipping licenses is modest.
Cook Islands budget documents estimate shipping registrations will bring in around US$50,000 this year.
Maritime Cook Islands did not reply to a request for comment.
The shipping registry has previously denied that it failed to conduct appropriate checks.
"The Cook Islands register has never harboured sanctioned vessels," Maritime Cook Islands told AFP in November last year.
"Any sanctioned vessels are deleted."
sft/djw/abs

Global Edition

US stocks fall again as Iran worries lift oil prices

  • But shares of all three banks fell decisively.
  • Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and US data while oil prices jumped on rising tensions between Washington and Tehran.
  • But shares of all three banks fell decisively.
Wall Street stocks fell again Wednesday as investors shrugged off solid bank earnings and US data while oil prices jumped on rising tensions between Washington and Tehran.
Executives with Citigroup, Bank of America and Wells Fargo described US consumers as resilient while releasing a batch of generally good earnings with no major bombshells.
But shares of all three banks fell decisively.
The broader market was also not buoyed by US data for November that showed a 0.6 percent increase in retail sales, topping expectations.
Major indices spent most of the day firmly in the red, with the S&P 500 closing down 0.5 percent.
"Investor attitudes are changing," said Jack Ablin of Cresset Capital Management. "Some negativity is creeping in."
Ablin described investor unease about President Donald Trump's threats to Federal Reserve autonomy, most recently in the Department of Justice's criminal probe of the central bank. 
He also pointed to Trump's proposed 10 percent interest rate cap on credit cards as an unwelcome wildcard that has added to a broader sense of unpredictability.
There's "uncertainty around these capricious policies and markets are already expensive," Ablin said.
Other topics that have dominated headlines include Trump's ambitions to take over Greenland that have raised worry in Europe and a rise in rhetoric between the United States and Iran over the latter's handling of protests.
The latter issue helped propel oil prices about 1.5 percent higher.
Iran warned the United States that it was capable of responding to any attack, as Washington appeared to be pulling personnel out of a base that Iran targeted in a strike last year.
"Traders are closely watching the political unrest in Iran and possible US intervention, which could threaten disruption to the country's...oil production," said Helge Andre Martinsen, senior energy analyst at DNB Carnegie.
In European stocks trading London set a fresh all-time high thanks to gains in mining stocks, but Frankfurt and Paris slid lower. 
Asian stock markets mostly gained.
Tokyo shares jumped by 1.5 percent while the yen slumped to its lowest value since mid-2024 amid media reports that Prime Minister Sanae Takaichi planned to hold an election as soon as February 8.
Takaichi's cabinet -- riding high in opinion polls -- has approved a record 122.3-trillion-yen ($768 billion) budget for the fiscal year from April 2026.
She has vowed to get parliamentary approval as soon as possible to address inflation and shore up the world's fourth-largest economy.
On the corporate front, British energy giant BP revealed a write-down of up to $5 billion linked to its energy transition efforts that will be reflected in the company's upcoming annual results.
Its share price traded lower most of the day but closed the day with a gain of 1.5 percent.

Key figures at around 2115 GMT

Brent North Sea Crude: UP 1.6 percent at $66.52 per barrel
West Texas Intermediate: UP 1.4 percent at $62.02 per barrel
New York - Dow: DOWN 0.1 percent at 49,124.17 points
New York - S&P 500: DOWN 0.7 percent at 6,917.81
New York - Nasdaq Composite: DOWN 1.1 percent at 23,440.38
London - FTSE 100: UP 0.5 percent at 10,184.35 (close)
Paris - CAC 40: DOWN 0.2 percent at 8,330.97 (close)
Frankfurt - DAX: DOWN 0.5 percent at 25,286.24 (close)
Tokyo - Nikkei 225: UP 1.5 percent at 54,341.23 (close)
Hong Kong - Hang Seng Index: UP 0.6 percent at 26,999.81 (close)
Shanghai - Composite: DOWN 0.3 percent at 4,126.09 (close)
Euro/dollar: UP at $1.1647 from $1.1641 on Tuesday
Pound/dollar: DOWN at $1.3433 from $1.3465
Dollar/yen: DOWN at 158.56 yen from 158.14 yen
Euro/pound: DOWN at 86.68 pence from 86.64 pence
burs-jmb/sla

accident

Russian captain tried to avoid North Sea crash: court

BY STEPHEN CONNEELY

  • "There is no dispute that had he changed course" about one nautical mile away from the anchored oil tanker "there would have been no collision," Leonard said.
  • The Russian captain of a cargo ship that hit an anchored oil tanker in the North Sea had tried to change course to avoid a collision, his trial heard Wednesday.
  • "There is no dispute that had he changed course" about one nautical mile away from the anchored oil tanker "there would have been no collision," Leonard said.
The Russian captain of a cargo ship that hit an anchored oil tanker in the North Sea had tried to change course to avoid a collision, his trial heard Wednesday.
Vladimir Motin, 59, saw the anchored oil tanker the Stena Immaculate three nautical miles away when his ship, Solong, was on autopilot, his defence team told London's Old Bailey.
Motin, from Saint Petersburg, faces one count of gross negligence manslaughter after Filipino crew member Mark Angelo Pernia, 38, was lost at sea after the boats collided triggering a huge fire off the eastern UK coast in March.
Defence barrister James Leonard said there was "no doubt there was a serious collision" that "caused the sad death of Mr Pernia".
But he said Motin had attempted to take the Portuguese-flagged Solong out of autopilot and change course manually to avoid crashing into the Stena Immaculate, which had been chartered by the US military.
"That attempt, however, was not successful and the Solong did not change course at all," he said.
"There is no dispute that had he changed course" about one nautical mile away from the anchored oil tanker "there would have been no collision," Leonard said.

'One man still missing'

The trial begun on Monday, and the jury was told Motin had captained the Solong cargo ship for 15 years and was a "highly trained" sailor.
But the prosecution charged that he "did nothing to avoid the collision".
"He could, and should, have acted differently" when his ship was on "an obvious collision course" with the tanker, prosecutor Tom Little said on Tuesday.
On Wednesday, the jury heard audio recordings from the Solong's bridge control room, accompanied by a visual reconstruction of the ship's trajectory towards the Stena Immaculate.
An hour before the collision, men could be heard speaking calmly in Russian about the price of cigarettes. Then a Russian folksong is heard, an apparent phone ring tone which went unanswered.
As the Solong approached the anchored oil tanker, no conversation could be heard in the control room. Less than one mile from the collision, only a cough could be heard. 
The sound of the collision's initial impact was so loud jury members winced after being warned to decrease the volume on their listening devices.
The prosecution showed the jury CCTV footage combined with audio from both ships at the time of the collision.
On the Stena Immaculate crew quickly reacted, with loud alarms and sea horns ringing out on board. "This is not a drill. This is not a drill. Fire, fire, fire," one man shouts.
The jury later saw phone footage recorded by Joesen Mariposila, third in command of the Solong, showing fire at the ship's other end. He is heard saying "Lord help us" five times as dark smoke begins to fill the air.
Motin's conversation with the UK coastguard was also heard, in which he confirmed there was a fire and dangerous cargo on board. 
At 9:58 am, nine minutes after the collision, he is heard saying "one man is still missing" and "go, go, go, abandon ship".
The collision ignited a two-day fire and triggered a massive offshore rescue operation. It caused thousands of barrels of jet fuel to spill from the Stena Immaculate and 16 tonnes of plastic pellets from the Solong.
str/jkb/jj/giv

EU

Battle over Chinese-owned chipmaker Nexperia rages in Dutch court

  • The court could order an investigation "if it has valid reasons to doubt the sound policy and business operations at Nexperia", it said in a statement.
  • A Dutch court held hearings Wednesday to weigh whether to order an investigation into Nexperia, a Chinese-owned chip company at the centre of a global tug-of-war over critical semiconductor technology.
  • The court could order an investigation "if it has valid reasons to doubt the sound policy and business operations at Nexperia", it said in a statement.
A Dutch court held hearings Wednesday to weigh whether to order an investigation into Nexperia, a Chinese-owned chip company at the centre of a global tug-of-war over critical semiconductor technology.
The firm, based in the Netherlands but whose parent company is China's Wingtech, has been the subject of a standoff between Beijing and the West that threatened to cripple car manufacturers that rely on its chips.
The Dutch state in September invoked a 1952 law to effectively seize control of the company, sparking fury in Beijing.
The Amsterdam-based Enterprise Chamber also played a major part in the battle over Nexperia in October when it suspended the firm's Chinese CEO, Zhang Xuezheng, also known as Wing, citing concerns over his management.
Lawyers for Nexperia on Wednesday accused Wingtech of a "scorched earth" policy in its bid to wrest control of the company.
"Wingtech is doing everything to destabilise Nexperia, already under pressure from a crisis situation," said one of Nexperia's lawyers, Jeroen van der Schrieck.

'Mystery'

Zhang Xuezheng did not appear at the hearings. His lawyer said he was not in a strong enough state to attend, as this case was taking a personal toll on him.
"The intervention (by the Dutch government) and especially the way it was handled, is incomprehensible for Mr Wing," said Jan Bart van de Hel, a lawyer for the Chinese tycoon.
"It should never have happened. The situation degenerated needlessly," he added.
Dirk-Jan Duynstee, a lawyer for the Wingtech company, said "the real reasons that led the minister to intervene remain a mystery." 
Judges said they expected to issue a ruling on whether to order an investigation within four weeks at the latest.
The court could order an investigation "if it has valid reasons to doubt the sound policy and business operations at Nexperia", it said in a statement.
If the court does decide to order an investigation, it can also maintain or amend its decisions made in October.
If however the court decides no investigation is required, the decisions it made in October will no longer be in force.
In late October, following trade talks between China's President Xi Jinping and his US counterpart Donald Trump, Beijing agreed to resume exports of Nexperia chips halted over the row.
In response, the Dutch government said it was suspending its emergency takeover move as a "constructive step" hailed by Beijing.
But while the political clash has died down for the moment, all eyes are on the court to see whether it will order a probe.
cvo/ric/giv

influencer

Italian influencer Ferragni acquitted in Christmas cake fraud trial

BY TAIMAZ SZIRNIKS

  • In Italy, aggravated fraud is punishable by one to five years in prison, but Ferragni opted for a fast-track trial, which offers defendants a reduced sentence.
  • Italian fashion influencer Chiara Ferragni was acquitted Wednesday of aggravated fraud over charity endorsement deals in a case that has led to greater regulation of the sector in Italy.
  • In Italy, aggravated fraud is punishable by one to five years in prison, but Ferragni opted for a fast-track trial, which offers defendants a reduced sentence.
Italian fashion influencer Chiara Ferragni was acquitted Wednesday of aggravated fraud over charity endorsement deals in a case that has led to greater regulation of the sector in Italy.
The 38-year-old social media star and businesswoman had been on trial for promotions of a pandoro cake -- a Christmas treat similar to a panettone -- and Easter eggs that purported to raise money for charity or social causes.
"Chiara has been acquitted", lawyer Giuseppe Iannaccone said, as Ferragni told a scrum of journalists she was "happy" with the verdict.
"It's the end of a nightmare that lasted two years," Ferragni said, thanking "everyone who supported [her] during this period", especially her followers.
Ferragni's legal troubles related in part to her 2022 endorsement of a pandoro cake made by Italian confectionery company Balocco that purported to raise funds for children undergoing treatment at a Turin hospital. 
Shoppers were led to believe that buying the special edition cake -- with a price of 9 euros instead of about 3 euros usually charged -- would directly benefit the hospital, but it only received a single 50,000 euro ($58,000) donation from the confectionery company. 
Ferragni's companies, meanwhile, made about one million euros from the promotion. 
Italy's competition watchdog (AGCM) hit two of Ferragni's companies with a one-million-euro fine ($1.2 million) in December 2023 for unfair commercial practices for the "Pandoro Pink Christmas" promotion.
Balocco was fined 420,000 euros -- and those fines stand.
Easter eggs sold in 2021 and 2022 were also targeted in the scandal, which made headlines in Italy.

'Pandoro gate'

Milan prosecutors asked in November for a sentence of one year and eight months in prison for Ferragni and associate Fabio Damato.
Ferragni denied the charges, adding in a hearing that she had always acted "in good faith," according to lawyer Iannaccone.
In Italy, aggravated fraud is punishable by one to five years in prison, but Ferragni opted for a fast-track trial, which offers defendants a reduced sentence.
Ferragni started out with a fashion blog, The Blonde Salad, in 2009, and in 2017 Forbes magazine named her its top fashion influencer.
Chronicling her glamorous lifestyle and being paid to promote high-end brands, she built the blog into a lucrative business, using it as a springboard to launch her own eponymous label.
In Italy and beyond, her fans also followed her personal life with Italian rap star Fedez and their two children. The couple split in 2024.
But the fraud accusations hit her reputation, with a spate of endorsements cancelled or not renewed. 
The Italian government also tightened the screws on influencers, mandating that those with more than 500,000 followers register with the Italian Communications Regulatory Authority (AGCOM) and comply with transparency rules.
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