economy

Brussels touts 'EU Inc.' company status to lure start-ups

BY RAZIYE AKKOC

  • "It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
  • The EU unveiled Wednesday a scheme to make it much easier for innovative start-ups to launch and grow across the 27-nation bloc, as part of a push to help Europe keep up with US and Chinese economic rivals.
  • "It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
The EU unveiled Wednesday a scheme to make it much easier for innovative start-ups to launch and grow across the 27-nation bloc, as part of a push to help Europe keep up with US and Chinese economic rivals.
Dubbed "EU Inc.", the proposal for a new pan-European corporate regime is billed as a key plank in efforts to boost the bloc's competitiveness.
The new system would allow for entrepreneurs to set up a firm "within 48 hours" fully online from anywhere inside the bloc -- doing away with many cross-border bureaucratic headaches.
"It will make it drastically easier to start and to grow a business in Europe," EU chief Ursula von der Leyen told reporters.
Europe was not short of "talent", "ideas" or "ambition", she said, but business leaders looking to scale up currently have to navigate 27 national legal systems and more than 60 types of company.
The EU Inc. setup will come with several perks, but critics fear the EU-wide regime will also loosen oversight and erode workers' rights.
EU Inc. companies will require less than 100 euros ($115) and no minimum share capital to get going. They will be free to choose in which EU nation to incorporate and have access to fully digital liquidation procedures, Brussels said.
"EU Inc. strips away the bureaucracy that comes with establishing a business. Founders will be able to focus on what matters: entering new markets and winning customers," said EU justice commissioner Michael McGrath.
Though open to anyone, the new voluntary legal regime is geared towards innovative start-ups, which will also benefit from simplified insolvency procedures.
The commission said it will further explore the possibility of allowing "100 percent cross-border" remote work "for innovative start-ups and scale-ups" across the EU.
Reinhilde Veugelers, of think tank Bruegel, said the goal was "improving (Europe's) innovation capacity because that is the most important driver for competitiveness".
"Fast and easy recognition should make it easier... for companies to grow on an EU scale," Veugelers said.
The new scheme, known more broadly as the "28th regime", will become law only after member states and the European Parliament negotiate and approve a final text -- something the commission urged be done by the end of 2026.
EU leaders are expected to discuss the proposal during a Thursday summit in Brussels, although wars in Ukraine and the Middle East will likely dominate their talks.

'Threat' or treat  

How popular the new regime proves remains to be seen, with trade unions and businesses already airing concerns. 
Campaigners including Olivier Hoedeman of Corporate Europe Observatory said the new system's speed could make it difficult to properly scrutinise new companies.
"The 28th regime poses a significant threat to Europe's social model," Hoedeman said.
Organisations representing European workers are also worried about a move to allow companies to offer share options to staff instead of wages.
"We cannot expect that the promise of the future success of a company be used to justify wage exploitation in the present," Esther Lynch of the European Trade Union Confederation said in a statement.
The commission has insisted labour law will not be touched by the proposal and that any business will have to follow the rules based on where they are headquartered.
Reacting to a leaked draft, industry group EU Inc -- which inspired the name of the commission proposal -- said the plans fell short.
It "fails on the actual main goal: creating one true standard across Europe that creates legal certainty for our startups", since it defers legal authority to national courts, "aka 27 flavours of interpretation", it said.
To address that, presenting the final proposal Wednesday the commission urged member states to consider setting up specialised judicial chambers or courts with the authority to handle EU Inc. disputes.
raz-ub/ec/st

US

UN maritime body kicks off emergency talks on Mideast shipping

BY JOE JACKSON

  • The meeting -- open to all 176 member states as well as dozens of NGOs and maritime industry bodies -- comes as Iran's retaliation to Israeli-US strikes cripples commercial shipping in or near the Strait of Hormuz.
  • The head of the UN's maritime body Wednesday urged "practical measures" to protect trade ships threatened by the Middle East war, as he opened an emergency meeting amid fears for thousands of stranded ships and seafarers.
  • The meeting -- open to all 176 member states as well as dozens of NGOs and maritime industry bodies -- comes as Iran's retaliation to Israeli-US strikes cripples commercial shipping in or near the Strait of Hormuz.
The head of the UN's maritime body Wednesday urged "practical measures" to protect trade ships threatened by the Middle East war, as he opened an emergency meeting amid fears for thousands of stranded ships and seafarers.
The International Maritime Organisation -- responsible for regulating international shipping safety -- will discuss efforts to ease the shipping crisis during the two-day gathering at its London headquarters.
The IMO's 40-member council could vote Thursday on several proposed resolutions, including one to "establish a safe maritime corridor to allow the safe evacuation of seafarers and ships stranded in the Persian Gulf".
However, if passed, resolutions remain non-binding.
The meeting -- open to all 176 member states as well as dozens of NGOs and maritime industry bodies -- comes as Iran's retaliation to Israeli-US strikes cripples commercial shipping in or near the Strait of Hormuz.
That has left around 20,000 seafarers stranded on approximately 3,200 vessels west of the key maritime chokepoint, according to the latest information from the IMO.
"This situation is unacceptable and unsustainable," IMO Secretary-General Arsenio Dominguez said as the gathering got underway, urging members to focus on "practical measures" to resolve it.
"Shipping has demonstrated time and again how resilient it is but geopolitics are testing the sector to the limit and every time that shipping is used as collateral damage in these conflicts, the whole world is negatively affected."

'Unjustifiable' attacks

Gulf states hit out at Iran in their opening statements.
"The United Arab Emirates expresses its rejection and condemnation in the strongest terms of... Iran's unprovoked, unjustifiable, indiscriminate and wholly unlawful attacks," the country's IMO delegate said.
He said they "constitute a serious breach of our sovereignty, territorial integrity" and were "a flagrant violation of fundamental rules and principles of international law".
An effective Iranian blockade of the Strait of Hormuz -- through which a fifth of global crude and liquified natural gas normally transits -- has dramatically spiked oil prices and spooked markets.
Meanwhile at least 21 ships have been hit, targeted or reported attacks since the start of the conflict, according to the UK Maritime Trade Operations (UKMTO), a naval monitor.
Britain, France, Germany and a host of other countries including Gulf states have urged the IMO's council to adopt a declaration to "strongly condemn the egregious attacks" by Iran on its neighbours.
Noting Iran had "threatened and attacked commercial vessels and seafarers, as well as civilian maritime infrastructure", their proposal said the attacks were "unjustifiable and must cease".
They also urged similar condemnation of the "purported closure of the Strait of Hormuz" by Tehran.

'Safe evacuation'

In its submission Iran, which is an IMO member but does not sit on its council, blamed the "current deterioration of the maritime security environment" on the attacks by Israel and the US. 
"The adverse maritime repercussions currently affecting shipping and seafarers are a direct and inevitable consequence of these unlawful actions and cannot be viewed in isolation from their underlying cause," it stated.
Separately, Japan, Panama, Singapore and the United Arab Emirates have urged the IMO to help "establish a framework to allow the safe evacuation of seafarers and ships stranded in the Gulf".
It would "facilitate the safe evacuation of merchant ships from the high-risk and affected areas to a safe place... avoiding military attacks and protecting and securing the maritime domain". 
Meanwhile, maritime industry bodies have tabled a demand for a "coordinated international approach to security" while urging that "seafarer welfare must be taken into account". 
They want measures to ensure their "communications with home can be maintained, crew changes and disembarkation can be facilitated, and the stores and provisions are adequate for the needs of seafarers". 
pml-jj/rlp/gv

Global Edition

Oil wavers, stocks rise as attention turns to US Fed

  • The moves followed Iraq's announcement that it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz, through which a fifth of global oil flows.
  • Stocks markets climbed and oil prices wavered on Wednesday, as traders were reassured by a partial resumption of Iraq's crude exports and turned their focus to upcoming central bank decisions.
  • The moves followed Iraq's announcement that it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz, through which a fifth of global oil flows.
Stocks markets climbed and oil prices wavered on Wednesday, as traders were reassured by a partial resumption of Iraq's crude exports and turned their focus to upcoming central bank decisions.
The US Federal Reserve is expected to hold interest rates steady later in the day, as investors look for signals on how policymakers assess the inflationary impact of higher oil prices. 
The European Central Bank, Bank of England and Bank of Japan are also expected to leave borrowing costs unchanged on Thursday. 
"The Fed is expected to remain on hold, but it will be the tone of the Fed statement and (Fed boss) Jerome Powell's press conference that will determine the market reaction," said Kathleen Brooks, research director at trading group XTB.
The main US oil contract West Texas Intermediate fell 1.8 percent -- after plunging four percent in Asian trading -- while international benchmark Brent was flat. 
The moves followed Iraq's announcement that it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz, through which a fifth of global oil flows.
Even so, prices remained around $100 a barrel, as a fresh wave of Israeli-US strikes hit across Iran while Tehran struck Israel and crude-producing Gulf neighbours.
"Talk of a deal between Iraq and Turkey to restart oil supplies has helped to calm financial markets," said Russ Mould, investment director at AJ Bell.
But "getting the commodity value significantly lower still depends on resolving issues around the Strait of Hormuz," he added.
The Frankfurt and Paris stock markets piled on around one percent toward midday, while London also gained. 
Asian stocks climbed after a positive session on Wall Street, which was supported by tech giants including Apple and Amazon.
Seoul jumped more than five percent, driven by chip giants Samsung and SK hynix. The Kospi, however, remains more than six percent down from the record highs touched before the war broke out.
Tokyo was up 2.9 percent, while Hong Kong and Shanghai also advanced. 
Analysts warned that the positive mood in markets could fade if the Middle East crisis drags on.
The US military said it brought out some of the heaviest bombs in its arsenal to penetrate missile sites near to the Strait of Hormuz that threatened international shipping. 
Iran has vowed revenge after Israel announced it had killed security chief Ali Larijani, a key force leading Iran since the death of Supreme Leader Ayatollah Ali Khamenei in the first strikes of the war.
Israel also hit a central Beirut neighbourhood as it looks to take out the Iran-backed Hezbollah.

Key figures at around 1115 GMT

Brent North Sea Crude: FLAT at $103.46 per barrel
West Texas Intermediate: DOWN 1.8 percent at $94.45 per barrel
London - FTSE 100: UP 0.4 percent at 10,446.12 points
Paris - CAC 40: UP 1.1 percent at 8,063.10
Frankfurt - DAX: UP 0.9 percent at 23,935.65
Tokyo - Nikkei 225: UP 2.9 percent at 55,239.40 (close)
Hong Kong - Hang Seng Index: UP 0.6 percent at 26,025.42 (close)
Shanghai - Composite: UP 0.3 percent at 4,062.98 (close)
New York - Dow: UP 0.1 percent at 46,993.26 (close) 
Euro/dollar: UP at $1.1551 from $1.1536 on Tuesday
Pound/dollar: UP at $1.3367 from $1.3352
Dollar/yen: DOWN at 158.92 yen from 159.05 yen
Euro/pound: UP at 86.43 pence from 86.38 pence
dan-ajb/gv

US

Israel says killed Iran intel chief, tells military to hunt down officials

BY AFP TEAMS IN JERUSALEM, TEHRAN, BEIRUT AND WASHINGTON

  • "Prime Minister Benjamin Netanyahu and I have authorised the Israel Defense Forces (IDF) to eliminate any senior Iranian official for whom the intelligence and operational circle has been closed, without the need for additional approval," he added.
  • Israel said Wednesday its forces had killed another top Iranian official, Intelligence Minister Esmail Khatib, and said its military was authorised to kill any senior figure of the Islamic republic in its sights.
  • "Prime Minister Benjamin Netanyahu and I have authorised the Israel Defense Forces (IDF) to eliminate any senior Iranian official for whom the intelligence and operational circle has been closed, without the need for additional approval," he added.
Israel said Wednesday its forces had killed another top Iranian official, Intelligence Minister Esmail Khatib, and said its military was authorised to kill any senior figure of the Islamic republic in its sights.
The announcement, the day after Iranian security chief Ali Larijani was confirmed killed in an Israeli strike, is part of a longstanding strategy by Israel to target its enemy's leaders.
"Last night Iran's Intelligence Minister Khatib was also eliminated," Israeli Defence Minister Katz said in a statement.
"Prime Minister Benjamin Netanyahu and I have authorised the Israel Defense Forces (IDF) to eliminate any senior Iranian official for whom the intelligence and operational circle has been closed, without the need for additional approval," he added.
"We will continue to thwart and hunt them all down."
There was no immediate comment or confirmation from Iran, which had responded with fury and vows of revenge to the death of Larijani.
The two sides have been at war for more than two weeks since US-Israeli attacks on Iran on February 28 killed supreme leader Ayatollah Ali Khamenei and ignited a regional conflict.
Israel said this week it had also targeted Akram al-Ajouri, head of the military wing of the group Palestinian Islamic Jihad, in a strike in Iran.
And it has vowed to hunt down Iran's new supreme leader, Mojtaba Khamenei, who has not appeared in public since he succeeded his father.
David Khalfa, co-founder of the Atlantic Middle East Forum, described Israel's strategy as "a campaign of 'counter-regime warfare".
It was "aimed at dismantling the regime's politico-security architecture to make it waver on its foundations", he wrote on X before the news on Khatib.

'Political assassinations'

According to Iran's Fars and Tasnim news agencies, funerals for Larijani and Soleimani were due to be held Wednesday alongside those of more than 80 Iranian sailors killed in a US strike on their frigate off Sri Lanka earlier this month. 
It was not certain the funerals would go ahead -- the slain ayatollah's funeral was due to be held days after he was killed, but that was later postponed indefinitely.
However, the Mehr news agency published a photo of Larijani's coffin bearing his photo and draped with the Iranian flag, alongside that of his son, whose death was also announced.
In contrast to Mojtaba Khamenei, Larijani, 68, had walked openly with crowds at a pro-government rally last week in Tehran.
He had "effectively been the figure in charge of the regime's survival, its regional policy and its defence strategy," Khalfa told AFP.
Israel has pursued what analysts have described as a policy of decapitation against Iran and the militant movements it backs in the region, killing Hassan Nasrallah of Hezbollah in 2024 and several top Hamas figures since the October 7, 2023 attacks that sparked the Gaza war.
Despite losing its ayatollah of nearly four decades as well as Larijani, a key pillar of the Islamic republic, the powerful Revolutionary Guards and the leadership as a whole have remained defiant.
The Guards, the ideological arm of the military, said they had launched missiles at central Israel as retaliation for Larijani's death and warned of more to come.
The "pure blood of this great martyr... will be a source of honour, power and national awakening against the front of global arrogance," they said.

Deadly strikes

An Iranian missile barrage killed two people near Israel's commercial hub of Tel Aviv, medics said on Wednesday, while authorities said falling munitions hit multiple sites in central Israel overnight.
Police said a cluster bomb hit a residential building in Ramat Gan, a city just outside Tel Aviv, and the roof collapsed on an elderly couple.
Omer, a resident of the area who only gave his first name, said "we heard like a streak of booms... it was not just one, it was a splitting missile".
Iranian media meanwhile said Israel and the United States had launched fresh strikes across several areas of the country, including Tehran.
Tasnim news agency said "seven people were killed and 56 were injured in an American-Zionist attack on residential areas in Dorud town" in Lorestan province. 
AFP could not independently verify the figures. 
The war has engulfed the region, from Gulf nations to Iraq and nearby Lebanon.
In Lebanon, which was drawn into the conflict after Iran-backed group Hezbollah launched rockets towards Israel over the ayatollah's death, Israel repeatedly struck central Beirut Wednesday.
Lebanese authorities reported at least 12 dead, while AFP journalists said three densely populated neighbourhoods in the heart of Beirut were hit.

US pounds Strait of Hormuz

In addition to its attacks on Israel and its neighbours, Iran has been hitting the global economy through attacks on energy infrastructure in the oil-rich Gulf.
Its attacks and threats against ships passing through the Strait of Hormuz have all but closed the key waterway, through which a fifth of global oil and LNG flows.
With oil still hovering around $100 a barrel, the US military dropped several 5,000-pound (2,250 kg) bombs on "hardened Iranian missile sites" near the coast that posed a threat to international shipping, Central Command said.
US President Donald Trump on Tuesday fumed that American allies, which have largely distanced themselves from his war, were not lining up behind the United States to escort tankers through the Strait of Hormuz.
But he also insisted on his Truth Social platform: "WE DO NOT NEED THE HELP OF ANYONE!"
burs-ar/ser

games

China tech giant Tencent bets on AI agents

BY LUNA LIN, WITH KATIE FORSTER IN TOKYO

  • The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
  • Tencent wants to bring artificial intelligence agents into its WeChat social media app, the Chinese tech firm's president said on Wednesday, a move that could change how hundreds of millions of users interact with the platform in the Asian nation and beyond.
  • The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
Tencent wants to bring artificial intelligence agents into its WeChat social media app, the Chinese tech firm's president said on Wednesday, a move that could change how hundreds of millions of users interact with the platform in the Asian nation and beyond.
Agents --  programmes that execute real-life tasks such as sending emails or booking flights -- are being touted as AI's next frontier after chatbots such as ChatGPT.
Their incorporation into WeChat may alter how people in the world's second-largest economy use the so-called "super-app" that already boasts social messaging, digital payments and a long list of other features.
Tencent, also the world's largest video game publisher, reported a 16 percent jump in full-year net profit on Wednesday, with gaming still the main business driver even as it extends its AI push.
The company has sought in recent years to integrate AI into WeChat, known as Weixin in China.
"We hope to create AI agents in Weixin, which could leverage Weixin's close connection with users," company president Martin Lau told reporters.
"It will be a highly diverse ecosystem, encompassing mini-programs, content, commerce, social networking and payments," Lau added, without giving details such as when the service would become available.
On Wednesday, Tencent said net profit for 2025 came to 224.8 billion yuan ($32.6 billion), beating estimates of 221.9 billion yuan in a Bloomberg survey of economists.
The company, which owns the developer of popular eSports including "League of Legends", has sizeable operations in other sectors from cloud computing to entertainment.
Despite being China's most valuable tech company by market capitalisation, so far Tencent has been seen as a cautious AI player, although founder Pony Ma has vowed to increase investment in the sector.
"Our highly resilient and cash generative core businesses provides us with the resources to fund our increasing investments in AI," Ma said in a statement Wednesday.

Agent fever

Like its rivals Alibaba, Baidu and ByteDance, Tencent has recently branched out into the world of AI agents with its WorkBuddy app.
The Shenzhen-based company has also been among the Chinese tech giants racing to take advantage of a surge in interest in the country in OpenClaw -- an AI agent platform created by an Austrian programmer that has fascinated the tech world.
Tencent and others are offering simplified installation and affordable coding plans to help users host OpenClaw agents on cloud servers.
Earlier this month the company's cloud computing arm organised an OpenClaw setup event at its headquarters, which drew more than 1,000 attendees, with similar events planned across China.
The increasing capabilities of Tencent's main large-language AI model, and AI agent tools such as WorkBuddy and new offering QClaw, "are encouraging early signs that these investments will unlock new opportunities", the company said.
The Financial Times reported this month that the White House was debating whether Tencent's investment in US and Finnish gaming groups pose a national security risk.
Discussions over its stakes in "Fortnite" creator Epic Games, Riot Games and Supercell revolve around the implications for US user data privacy, the British newspaper said, citing people familiar with the matter.
"We have been engaged in constructive discussions with the relevant US regulators for quite some time now," said Tencent president Lau.
"Things are moving in a positive direction" with the overall risk "manageable", he said.
"While there are due processes to be followed in the US, other regions are actually very keen for us to invest in gaming companies."
ll-kaf/mjw

US

Middle East war: global economic fallout

  • - Japan, S. Korea petrochemical industry slows output - The Middle East war is forcing petrochemical giants in key Asian economies to cut production as the conflict rattles supplies of naphtha, a crucial oil-derived component used to make a range of plastic goods.
  • Here are the latest economic events in the Middle East war on Wednesday: - Iraq resumes oil exports via Turkey - Iraq announced it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz.
  • - Japan, S. Korea petrochemical industry slows output - The Middle East war is forcing petrochemical giants in key Asian economies to cut production as the conflict rattles supplies of naphtha, a crucial oil-derived component used to make a range of plastic goods.
Here are the latest economic events in the Middle East war on Wednesday:

Iraq resumes oil exports via Turkey

Iraq announced it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz.
The state-owned North Oil Company said it was sending an initial 250,000 barrels a day from its fields in the northern Kirkuk province through the pipeline, well below the 3.5 million barrels a day it has shipped in normal times from its southern Basra fields via the Strait of Hormuz.

Oil prices dip

Oil prices fell following Iraq's announcement.
The WTI benchmark was down about 1.5 percent at $94.7 a barrel in volatile trading, even as the United States hit Iranian missile sites near the key Strait of Hormuz and Tehran struck back at crude-producing Gulf neighbours.
Stocks rose in Asia, and opened higher in Europe, also lifted by renewed interest in tech shares.

Japan, S. Korea petrochemical industry slows output

The Middle East war is forcing petrochemical giants in key Asian economies to cut production as the conflict rattles supplies of naphtha, a crucial oil-derived component used to make a range of plastic goods.
Mitsubishi Chemical and Mitsui Chemicals have cut output, Shin-Etsu Chemical said it would raise prices, and LG Chem warned it may not be able to fulfil some orders.

Emergency shipping talks

The International Maritime Organization will begin an "extraordinary session" on Wednesday to discuss shipping amid the war.
The IMO's 40-member council could vote Thursday on several proposed resolutions, including one to "establish a safe maritime corridor to allow the safe evacuation of seafarers and ships stranded in the Persian Gulf".
However, if passed, resolutions remain non-binding.

South Korea secures oil from UAE

South Korea said it would receive an additional 18 million barrels of oil from the United Arab Emirates through alternative supply channels, bypassing the need to use the Strait of Hormuz.
The presidential chief of staff declined to elaborate on the route.
About 70 percent of South Korea's oil imports normally pass through the strait.

Fed kicks of series of central bank meetings

The US Federal Reserve later Wednesday kicks off a string of central bank meetings that will be closely watched for signs of how monetary authorities view the inflationary impact of higher oil prices.
The Fed is not expected to touch its rates, even as signs grow of a weakening labour market.
The European Central Bank and the Bank of England follow Thursday.

Sri Lanka asks EVs to unplug

Sri Lanka has urged electric vehicle owners to stop charging their cars at night, saying the surge in demand is forcing the country to burn more coal and diesel to keep the power grid running.
Faced with an energy crisis driven by the war, Sri Lanka has begun rationing fuel and has also imposed a four-day working week starting Wednesday in a bid to reduce travel.
burs-aha/md/lkd/ceg/lkd/dcp/gv/jhb

industry

Japan, S. Korea petrochemical industry slows output on Iran war

BY JULIEN GIRAULT WITH THE AFP TOKYO BUREAU AND KANG JIN-KYU IN SEOUL

  • The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
  • The Middle East war is forcing petrochemical giants in two key Asian economies to cut production as the conflict rattles supplies of a crucial oil-derived component used to make a range of plastic goods.
  • The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
The Middle East war is forcing petrochemical giants in two key Asian economies to cut production as the conflict rattles supplies of a crucial oil-derived component used to make a range of plastic goods.
The scarcity of naphtha -- a liquid distilled from petroleum that is essential for making ethylene, a key ingredient in everything from plastic grocery bags to food packaging -- risks a knock-on effect across many industries.
The petrochemical sector in Japan and South Korea, an important part of both countries' economies, depends on the Middle East for their naphtha supplies -- with 74 percent of Japan's imports coming from the region.
But supplies are drying up, with a vital shipping lane for oil from the Middle East, the Strait of Hormuz, virtually paralysed.
The price of naphtha shipped into Asia has soared 60 percent since the war began. 
"We estimate that naphtha inventories currently stand at around 20 days" in Japan, the world's fourth-biggest economy, analysts at Nomura warned last week.
"And if the Strait of Hormuz remains closed for two to three weeks, this could have a major impact" on naphtha production, they said.
That impact is already creeping in.
Last week, Japanese giant Mitsubishi Chemical started cutting production capacity of its steam cracker, a facility that converts naphtha into ethylene and propylene, which it runs as a joint venture. 
"We concluded that a reduction in naphtha imports was inevitable. Our goal is to avoid a suspension of our operations," a company spokesperson told AFP. 
– 'Economic security' –
Mitsui Chemicals, another leading Japanese chemicals firm, started cutting ethylene output at two plants last week because of concerns over naphtha supply, a company spokesperson told AFP. 
Half of Japan's 12 ethylene plants have already reduced production, Bloomberg reported, just two weeks after US-Israeli strikes on Iran ignited the war.
That slowdown increases the likelihood of knock-on effects across other industries.
Shin-Etsu Chemical will hike the selling price of polyvinyl chloride (PVC) -- which is used to make window frames, floor covering, pipes and cable insulation -- in the Japanese market from April 1. 
"The price of ethylene -- a key raw material for PVC -- has surged, and we have been subjected to supply volume restrictions by our suppliers, compelling us to curtail our production output," the company said in a statement. 
The crisis has also hit South Korea, one of Asia's biggest economies. 
"We informed our customers last week that we might declare force majeure on one of our products, dioctyl terephthalate" -- which is used in everything from cosmetics to clothes, a representative of LG Chem told AFP. 
In a sign of how critical the situation has become, the South Korean government said Tuesday that it would restrict naphtha exports. 
"We will designate naphtha as an item related to economic security by the end of the week," Finance Minister Koo Yun-cheol said. 
"The government will work to resolve the difficulties through export restrictions and other necessary measures."
– 'High dependence' –
The shockwave is spreading across Asia, with Singapore's PCS -- a producer of ethylene and other petrochemicals -- announcing on March 5 that it had issued a formal force majeure notice to its customers. 
The global supply of polyethylene -- a derivative of naphtha that is ubiquitous, particularly in plastic packaging, bottles and pipes -- is also disrupted, with countries in the Middle East major exporters. 
The paradox, noted BloombergNEF analyst Philip Geurts, is that major polyethylene producers like South Korea or Singapore "could have an advantage" given strong demand in other markets and rising prices.
But "it's very hard to benefit from that if you can't produce the chemicals in the first place," he stressed at a briefing, because "the feedstock (naphtha) dependence on the Middle East is just extraordinarily high".
The crisis comes as Japan and South Korea were already closing aging petrochemical facilities because of chronic overcapacity in China, a country with far more competitive infrastructure. 
China is relatively spared for now, thanks to its refining capacity and its ability to source Russian naphtha.
According to South Korean reports, Seoul is also considering turning to Russia as an alternative source. 
burs-jug/aph/cms

tourism

Chinese tourists ditch Japan for third month running

BY KYOKO HASEGAWA

  • By comparison, 18 countries and regions set new records for the number of their nationals who visited Japan in February -- including South Korea, Taiwan and the United States, data showed.
  • Chinese visitors to Japan tumbled 45.2 percent in February from a year earlier, official data showed Wednesday, as the fallout from the countries' diplomatic spat bit for the third month running.
  • By comparison, 18 countries and regions set new records for the number of their nationals who visited Japan in February -- including South Korea, Taiwan and the United States, data showed.
Chinese visitors to Japan tumbled 45.2 percent in February from a year earlier, official data showed Wednesday, as the fallout from the countries' diplomatic spat bit for the third month running.
Previously, Chinese travellers were the biggest source of tourists to Japan, contributing to a boom in the land of cherry blossoms and Mount Fuji that was fuelled by a weak yen, making shopping cheap.
But in January, South Korea overtook China as the largest contingent, a trend that continued in February, with visitors from the country jumping 28.2 percent to 1.1 million.
That compared with 396,400 visitors from mainland China last month, the Japan National Tourism Organization said.
By comparison, 18 countries and regions set new records for the number of their nationals who visited Japan in February -- including South Korea, Taiwan and the United States, data showed.
The number of visitors from Hong Kong also shot up by 19.6 percent compared to last year.
While February is typically the low season for travel to Japan, this year, due to the timing of Lunar New Year, the number of visitors shot up, the tourism group said, noting a particular uptick from East Asia. 

China visitors up elsewhere

Japan-China ties have deteriorated since Prime Minister Sanae Takaichi suggested in November that Japan might intervene militarily in any Chinese attempt to take Taiwan.
China, which regards the democratic island as part of its territory and has not ruled out force to annex it, was furious over the comments.
It summoned Tokyo's ambassador and warned Chinese citizens against visiting Japan.
The number of Chinese visitors to Japan already tumbled 45 percent in December and nose-dived 60.7 percent in January.
Instead, other countries, including South Korea, received an increase in the number of Chinese visitors.
In January, 418,703 visited South Korea, up from 364,460 the same month last year, according to the Korea Tourism Organization.
The number of Chinese visitors to Thailand edged up 4.24 percent on average during the January-February period compared to the same period last year. 
Japan's cherry blossom season will be in full swing in late March and early April, but some local media reports suggest the decline in the number of Chinese visitors will continue.
Contacted by AFP, one hotel in the Tokyo Bay area said the number of Chinese guests "had halved since November" and that will likely continue in March and April, although a handful of other hotels said they have seen no significant impact from the souring ties between Tokyo and Beijing.
kh-aph/lb

climate

TotalEnergies faces ruling in Belgian farmer climate case

BY MATTHIEU DEMEESTERE

  • But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.
  • A Belgian judge will rule Wednesday in a closely watched case pitting French oil giant TotalEnergies against a farmer seeking compensation for damage to his farm caused by climate change.
  • But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.
A Belgian judge will rule Wednesday in a closely watched case pitting French oil giant TotalEnergies against a farmer seeking compensation for damage to his farm caused by climate change.
Hugues Falys, a farmer from Belgium's western Hainaut region, was backed by environmental groups including Greenpeace in the David-versus-Goliath case they hope could prove a turning point in the climate fight.
Together they took TotalEnergies to court on the grounds the French group is Belgium's leading refiner and distributor of petroleum products, launching the country's first climate case brought against a multinational company.
The plaintiffs argue the firm can be held liable for global warming because of emissions generated when its products are burned -- a claim rejected by TotalEnergies which accuses pressure groups of "instrumentalising the judiciary."
The lawsuit was filed in 2024 before the Tournai business court in western Belgium, and argued over a series of hearings between November and January, with a verdict due at 2:00 pm (1300 GMT) on Wednesday.
"The judges have everything they need to make the right decision," Falys told AFP.
"But it won't be black and white, given the number of issues to be decided," added the farmer, who also serves as spokesman for an agricultural union.
Contacted by AFP, TotalEnergies declined to comment ahead of the ruling.
Falys is seeking 130,000 euros ($150,000) in damages for four extreme weather events that struck his farm between 2016 and 2020.
First a storm destroyed his strawberry and potato crops, then three periods of drought hurt fodder production, affecting cattle in turn.
But the farmer and his backers are also seeking much broader action from TotalEnergies on countering climate change -- notably for it to stop investing in new fossil-fuel projects.

Frequent target

The goals of the lawsuit are "reparation and transformation", said Belgium's human rights league (LDH), which is backing the complaint alongside Greenpeace and food‑rights organisation FIAN.
Making its case in court, the company called it "absurd" to single out a particular firm over the pace of the energy transition -- arguing that it accounts for less than two percent of the oil and gas sector.
"It's a bit easy to blame energy producers for pollution and warming," argued company lawyer Francoise Labrousse back in December, stressing the overarching role of governments in steering climate policy.
"TotalEnergies doesn't sell tractors, cars or boilers," Labrousse argued, describing the group's strategy to meet the EU's goal of carbon neutrality by 2050 as "ambitious and effective".
TotalEnergies is a frequent target of climate and human rights activists, along with other oil giants.
In 2021, Dutch courts issued a landmark ruling ordering Anglo‑Dutch giant Shell to cut its net carbon emissions, finding they contributed to global warming and its harmful effects.
But the judgement was overturned three years later, when an appeals court found that an NGO and individual citizens could not make such demands.
The case, known as "People vs. Shell", is now before the Dutch Supreme Court.
mad-ec/ub/gv/jhb

children

Brazil starts to restrict minors' access to social media

  • Digital platforms are required to demand "reliable" age verification to prevent minors under the age of 18 from accessing prohibited or inappropriate content, such as pornographic or violent material.
  • Brazil began implementing new measures on Tuesday to restrict minors' access to social media and prevent them from viewing violent or illegal content.
  • Digital platforms are required to demand "reliable" age verification to prevent minors under the age of 18 from accessing prohibited or inappropriate content, such as pornographic or violent material.
Brazil began implementing new measures on Tuesday to restrict minors' access to social media and prevent them from viewing violent or illegal content.
A law regulating children's use of social media was approved last year after a scandal involving the alleged sexual exploitation of minors on Instagram, and comes into effect this week.
The hyper-connected nation of 212 million people joins several other countries seeking to protect children from addictive social media algorithms.
Some, like Australia, have outright banned access, while others require stronger age verification measures or parental consent.
In Brazil, adolescents up to 16 years of age must now have their accounts linked to that of a legal guardian. 
Digital platforms are required to demand "reliable" age verification to prevent minors under the age of 18 from accessing prohibited or inappropriate content, such as pornographic or violent material.
"What our legislation did was ban self-declaration" as an age verification mechanism, as "that method is ineffective," said Iage Miola, Director of the National Data Protection Authority (ANPD), the government body tasked with implementing the law. 
Details on how the mechanism will work have not yet been released.
From Tuesday, a "transition period"  will start, during which the ANPD will outline the technical aspects of the law.
Miola said he had met with representatives from technology companies to review their proposals.
He said the preferred verification method was, for the time being, users uploading an identity document and providing biometric photo verification.
The law also requires digital platforms to remove content that appears to depict sexual exploitation or abuse, and notify Brazilian authorities. 
Companies that fail to comply with the new regulations face punishment ranging from fines of up to 50 million reais (approximately 9 million dollars) and account suspensions, to an outright "ban" in cases of repeated non-compliance. 
The law bans advertising aimed at children and adolescents, as well as so-called "loot boxes" --items within video games which users pay for to receive a surprise reward. 
"Unlike other countries, Brazil opted for a law that is not limited to regulating social media for children, but rather covers the entire internet," Renata Tomaz, a professor at the Getulio Vargas Foundation, told AFP.
jss/app/fb/sms

US

War in the Middle East: latest developments

  • - Iran says war 'will hit all' - Iran's top diplomat said Wednesday the repercussions of the war in the Middle East would be felt globally.
  • Here are the latest developments in the Middle East war: - Iran executes alleged 'spy' - Iranian authorities have executed a man convicted of spying for Israel, the judiciary said on Wednesday, in the first such execution announced since the war broke out.
  • - Iran says war 'will hit all' - Iran's top diplomat said Wednesday the repercussions of the war in the Middle East would be felt globally.
Here are the latest developments in the Middle East war:

Iran executes alleged 'spy'

Iranian authorities have executed a man convicted of spying for Israel, the judiciary said on Wednesday, in the first such execution announced since the war broke out.
"The death sentence of a spy for the Zionist regime, who had been providing images and information, about the country's sensitive locations to Mossad officers was carried out this morning," the judiciary's Mizan Online website said.

Lebanon strikes

The Israeli army issued an evacuation call for residents of four towns in southern Lebanon on Wednesday, warning of imminent strikes targeting Iran-backed militant group Hezbollah.
Earlier Wednesday, state media reported an Israeli strike in central Beirut, following an evacuation warning. 
Lebanon's health ministry said that two Israeli strikes on central Beirut without warning killed at least six people and wounded 24 others.
The Israeli military also said it was striking Hezbollah targets in the area around the southern Lebanese city of Tyre in response to rocket fire towards Israel.

Iran says war 'will hit all'

Iran's top diplomat said Wednesday the repercussions of the war in the Middle East would be felt globally.
"Wave of global repercussions has only begun and will hit all -- regardless of wealth, faith, or race," Iranian Foreign Minister Abbas Araghchi posted on X, accompanied by a copy of the US National Counterterrorism Center director's resignation letter prompted by the war.
Joseph Kent, who was appointed by Trump, announced his resignation Tuesday. "I cannot in good conscience support the ongoing war in Iran," he said.

Iran army threatens retaliation

Iranian army chief Amir Hatami threatened on Wednesday to launch a "decisive and regrettable" retaliation for the killing of security chief Ali Larijani in an Israeli air strike.
Iran's Revolutionary Guards said in a separate statement that it had launched missiles at central Israel "in revenge for the blood of martyr Dr Ali Larijani and his companions".
Hamas offered condolences to Iran, writing on Telegram: "We renew our solidarity with the Islamic Republic of Iran, which is being subjected to Zionist–American aggression, and affirm that the continuation of this aggression is a crime that targets the entire region and threatens its security and stability."
Iran's Supreme National Security Council on Tuesday confirmed the death of its chief Larijani, after Israel said it had killed him in an air strike. 
- Gulf nations intercept drone, missile attacks - 
An Iranian projectile struck near Australia's military headquarters for the Middle East in the United Arab Emirates on Wednesday, Prime Minister Anthony Albanese said.
The Saudi defence ministry said it had intercepted a ballistic missile near Prince Sultan Air Base, which houses US military personnel.
Saudi Arabia also intercepted eight drones while Kuwait's air defences responded to a rocket and drone attack, according to authorities from both countries.
Qatar's defence ministry also said it intercepted a missile attack on Wednesday as blasts were heard in Doha.

US strikes near Strait of Hormuz

US Central Command said Tuesday it had hit Iranian missile sites with "multiple 5,000-pound deep penetrator munitions," some of the most powerful bombs in the US arsenal, near the strategic Strait of Hormuz. 

Two killed near Tel Aviv from Iranian missiles

A barrage of missiles from Iran killed two people near Tel Aviv, Israeli medics said Wednesday, bringing the death toll from missiles fired on the country to 14. 

Ukrainian anti-drone experts

Over 200 Ukrainian anti-drone military experts were in several Middle East countries to help defend against Iranian-designed drones, President Volodymyr Zelensky said.

US embassy struck

The US embassy in Baghdad was the target of a drone and rocket attack, a security official said.
The strike sparked a fire on embassy grounds, the source said, while a witness reported seeing the fire from her balcony.

Crowds gather in Iran

Crowds gathered in Iranian cities after authorities called for nationwide rallies to defy enemy "plots", state television said.
The rallies come on a night usually marked by Persian new year (Nowruz) festivities, with the authorities apparently keen to prevent any anti-government dissent at a time when people traditionally take to the streets.

NATO, Britain 'mistakes'

US President Donald Trump said that NATO was making a "foolish mistake" on Iran, after the military alliance's members largely rebuffed his calls to help reopen the Strait of Hormuz to oil traffic.
Trump also said he was disappointed with UK Prime Minister Keir Starmer's response, telling reporters: "He hasn't been supportive, and I think it's a big mistake... I'm disappointed with Keir -- I like him, I think he's a nice man, but I'm disappointed."

Israel says striking Basij

Israel's military said it was striking positions of Iran's Basij volunteer paramilitary force around Tehran, after announcing it had killed the group's top commander.

US doesn't 'need' help

Trump said "we no longer need" help reopening the Strait of Hormuz, after his request for allies to quickly send warships was snubbed.
"We have had such Military Success, we no longer 'need,' or desire, the NATO Countries' assistance -- WE NEVER DID!" Trump wrote on his Truth Social platform. "WE DO NOT NEED THE HELP OF ANYONE!"

Lebanese troops killed

Lebanon's military said that three soldiers were killed in Israeli air strikes in the country's south.
Lebanon's health ministry said Israeli attacks have killed 912 people in the country since the latest Israel-Hezbollah conflict erupted on March 2, up from 886 a day earlier.
burs-lkd/jm

Fed

US Fed expected to hold rates steady as Iran war's shockwaves ripple

BY ASAD HASHIM

  • Swonk warned that any economic slowdown from the war could be tough to recover from in the immediate term and supply disruptions would affect more than energy prices.
  • US Federal Reserve policymakers are expected to leave interest rates unchanged Wednesday, as the US-Israel war on Iran sends shock waves through oil markets and supply chains, while economic data has begun to show weakness.
  • Swonk warned that any economic slowdown from the war could be tough to recover from in the immediate term and supply disruptions would affect more than energy prices.
US Federal Reserve policymakers are expected to leave interest rates unchanged Wednesday, as the US-Israel war on Iran sends shock waves through oil markets and supply chains, while economic data has begun to show weakness.
The Fed began its two-day meeting on Tuesday, which will culminate in an announcement of the benchmark lending rate in the world's largest economy, expected at 2:00 pm US Eastern Time (1800 GMT) on Wednesday.
The central bank will also release its quarterly Summary of Economic Projections, where its outlook for GDP growth, inflation and unemployment will be closely watched for potential downward revisions.
The Fed cut rates three consecutive times last year before holding them steady at its January meeting.
It has a dual mandate of maintaining inflation near a long-term target of two percent while ensuring maximum employment.
With war in the Middle East causing global oil prices to spike, potentially fuelling inflation and curbing growth, analysts say policymakers are unlikely to make any immediate moves. 
"The Fed is in a really tough spot right now," said Wells Fargo economist Nicole Cervi. "They need to choose what side of the mandate to prioritize, because they're not hitting either goal."
While consumer inflation has dropped from a peak of 9.1 percent during the Covid pandemic, it remains well above the Fed's target, leaving households battered by years of price increases.
"Unlike other countries, which have already achieved some level of price stability," the United States has yet to reach this point after five years, said Diane Swonk, chief economist at KPMG.
She warned that, depending on how long the Iran war lasts, inflation could again soar past four percent.
Affordability has been a key political issue for US President Donald Trump, who has repeatedly called for rates to be slashed even as prices have remained stubbornly high.
US average gasoline prices have increased around 27 percent since the start of the war, according to the AAA motor club's gauge.
"I think the main story here is that we are seeing inflation moving away from the Fed's two-percent target, and that will lead many Fed policymakers to adopt an even more hawkish stance," said EY-Parthenon chief economist Gregory Daco, who want to raise rates to curb inflation.
- Uncertainty 'tax' -  
Raising rates to cool the economy, however, could bring the Fed into tension with its other mandate: managing unemployment.
The United States unexpectedly lost 92,000 jobs in February, government data showed, while the unemployment rate rose to 4.4 percent.
Analysts say a relatively steady unemployment rate has been masking churn beneath the surface -- with sluggish labor demand covered by a drop in supply due to Trump's immigration crackdown.
Daco said labor demand gauges were showing a hiring rate "at a decade low" and slowing wage growth.
Swonk noted that uncertainty due to the Iran war and its knock-on effects would further curb labor demand.
"Uncertainty acts as its own tax on the economy, and one of the first lines of defense that firms do is they freeze hiring," she said.
Recent data ahead of the Fed meeting is not encouraging, with US GDP growth revised sharply lower in the final months of 2025.

'Splintered Fed'

Central banks tend to ignore the inflation effects of short-term price shocks, but it is unclear how long the war in Iran will drag on. 
Before the war, a rate cut was expected as soon as the summer, with another possible later in the year. 
On Tuesday, CME's FedWatch tool showed expectations of just one rate cut by year-end, likely coming after September.
Swonk warned that any economic slowdown from the war could be tough to recover from in the immediate term and supply disruptions would affect more than energy prices.
Speaking to AFP, Nobel prize-winning economist Joseph Stiglitz had similar warnings, particularly for the crucial fertilizer sector which impacts food prices.
Stiglitz said that even before the war, the US economy was "close to stagflation," a dangerous combination of inflation and economic contraction.
While traders generally expect the Fed to hold rates steady, the heightened uncertainty could lead to more polarization among policymakers.
"I wouldn't be surprised to see a much more splintered Fed, where someone even puts a rate hike in their forecast because of the lingering effects (of the war)," said Swonk.
aha-myl-nl/bys/msp

US

Iran vets friendly ships for Hormuz passage: trackers

  • Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
  • Iran is selecting ships from friendly countries to pass through the Strait of Hormuz, a crucial trade waterway cut off by the Middle East war, data trackers indicated Tuesday.
  • Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
Iran is selecting ships from friendly countries to pass through the Strait of Hormuz, a crucial trade waterway cut off by the Middle East war, data trackers indicated Tuesday.
Tehran's forces have closed off the waterway, through which a fifth of the world's oil and liquefied natural gas passes in peacetime, with deadly hits reported on vessels since the war began with US-Israeli strikes on Iran on February 28.
But at least five ships exited the Strait via Iranian waters on March 15 and 16, maritime intelligence firm Windward said in an analysis report on Tuesday.
"The new route illustrates how Iran's selective blockade has evolved to allow allies and supporters to transit", it said, citing its tracking as "rising evidence that Iran is exerting permission-based transit and control of the strait".
Natasha Kaneva, a commodities analyst at JPMorgan bank, said in an analysis on Monday that at least four ships had been tracked exiting the strait via the Larak–Qeshm Channel, near the Iranian coast, over the previous two days.
"This is not a standard route for vessels and could reflect a process designed to confirm vessel ownership and cargo, enabling passage for ships that are not affiliated to the US or its allies," she said in a note sent to AFP.
The vessels included bulk carriers and one oil tanker, the Pakistani-flagged Karachi.
Tracking site MarineTraffic said the Karachi transited the strait with its automatic transponder system activated -- where most vessels keep it turned off to avoid being targeted.
Kaneva said most of the crude passing through the strait was headed for Asia, principally China.
Several countries have opened talks with Tehran to secure passage for their vessels, while the United States has pushed allies to provide military protection for shipping in the region.
Two Indian-flagged tankers carrying liquefied petroleum gas reached Indian ports after crossing the strait over the weekend after officials from the countries said they held talks.
A Turkish-owned ship was also able to cross the strait with Iran's permission, Turkey's transport minister Abdulkadir Uraloglu said in comments published on Friday.
rlp/zap/rl

AI

Nvidia says restarting production of China-bound chips

  • Beijing is ramping up domestic chip development and production in a bid to rival the industry-leading designs of California-based Nvidia, the world's most valuable company.
  • Nvidia chief Jensen Huang on Tuesday said the AI technology powerhouse is restarting production of its high-performance chips for clients in China.
  • Beijing is ramping up domestic chip development and production in a bid to rival the industry-leading designs of California-based Nvidia, the world's most valuable company.
Nvidia chief Jensen Huang on Tuesday said the AI technology powerhouse is restarting production of its high-performance chips for clients in China.
"We have received purchase orders from many customers, and we're in the process of restarting our manufacturing," Huang told journalists at Nvidia's annual developers conference in San Jose, California.
"Our supply chain is getting fired up."
The situation has changed from two weeks ago, according to Huang.
A US commerce official in late February said a high-end Nvidia chip that can train and run artificial intelligence systems has not yet been sold to Chinese companies despite softened export restrictions.
The H200 chip had until recently been barred from sale in China by Washington over national security concerns.
President Donald Trump said in December he had reached an agreement with his Chinese counterpart Xi Jinping to ease the restrictions, a move some lawmakers have warned could help China's military.
When asked by the US House Foreign Affairs Committee how many H200 chips had been sold to Chinese end-users, Commerce Department export enforcement official David Peters said: "My understanding is that so far none have been sold."
The H200 deal -- under which the US government gets a 25 percent cut of sales -- was confirmed by the Commerce Department in January.
But conditions imposed on their sale have reportedly made it difficult for shipments to be approved.
"I think President Trump would like us to compete worldwide and not concede those markets unnecessarily," Huang said.
Beijing is ramping up domestic chip development and production in a bid to rival the industry-leading designs of California-based Nvidia, the world's most valuable company.
Nvidia's top-of-the-range chips, the Blackwell and forthcoming Rubin series, remain banned for sale in China and were not included in the H200 agreement.
When asked about Nvidia's dependence on Taiwan-based chip producer TSMC and the potential for China to "act on" that country, Huang said "my only hope is that we can all work together, stay at peace and look at the big picture."
Huang said a goal of the US commerce secretary to have 40 percent of US chips made domestically will be "very challenging" to achieve given how fast demand is growing.
gc/mlm

energy

US airlines still see strong demand as jet fuel worries loom

BY JOHN BIERS

  • Airline analysts have warned that the price rises could dent profitability if carriers eat the cost or pass them on to consumers, eroding demand.
  • US carriers will face tough challenges in the months ahead if jet fuel prices stay high, but for now consumers are still booking trips in numbers, airline CEOs said Tuesday.
  • Airline analysts have warned that the price rises could dent profitability if carriers eat the cost or pass them on to consumers, eroding demand.
US carriers will face tough challenges in the months ahead if jet fuel prices stay high, but for now consumers are still booking trips in numbers, airline CEOs said Tuesday.
"The 10 biggest booking weeks of our history have been the first 10 weeks of this year," said United Airlines chief executive Scott Kirby, who described current travel demand as "remarkable."
Robust travel demand represented a bright spot for airlines in presentations Tuesday even as United and it's two chief rivals, American Airlines and Delta Air Lines, each estimated a $400 million hit to first-quarter profits because of surging jet fuel costs due to the Middle East war.
The price of jet fuel, the industry's second biggest expense after labor, has risen sharply following a roughly 40 percent surge in crude prices since the February 28 start of the US-Israeli military operation against Iran.
Airline analysts have warned that the price rises could dent profitability if carriers eat the cost or pass them on to consumers, eroding demand.
But as of mid-March, consumers remain eager to fly.
"Sales for us have been very, very strong all quarter long, most particularly starting off in the March spring season, which is typically the season when travel bookings really start to accumulate," said Delta CEO Ed Bastian, noting that eight of the company's 10 highest sales days in history came during the quarter.
Bastian reported broad-based growth in Delta's domestic market. By contrast the company has seen "a very modest decline in Europe since the war started." 
But Bastian said less than 20 percent of the carrier's transatlantic revenues is from point-of-sale Europe.
Delta raised its first-quarter revenue forecast, while confirming its profit outlook.
American Airlines also lifted its revenue growth outlook to more than 10 percent from the prior range of 7-10 percent. 
However, American cautioned that its earnings per share would be at the "lower end of guidance." 
Besides the jet fuel hit, officials at American also pointed to a $200 million drag due to flight cancelations and disruptions from storms.
American CEO Robert Isom described demand as "incredibly strong."
In light of higher fuel costs, United decided last week to trim about one percent of capacity in May and June, said Kirby, who noted that the reduction would hit unpopular flying times, such as red eyes and mid-week.
Airlines are also beginning to pass higher jet fuel costs through to consumers.
"The industry has so far done a good job of moving at good speed on fuel," said Delta Chief Commercial Officer Joe Esposito.
Shares of Delta jumped 6.6 percent in Tuesday trading, while United gained 3.2 percent and American 3.5 percent.
jmb/mlm

Global Edition

US, European stocks rise despite latest jump in oil prices

  • The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
  • US and European equities rose Tuesday despite another jump in oil prices as fresh Iranian attacks on crude-producing neighbors added to an already disrupted petroleum supply picture.
  • The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
US and European equities rose Tuesday despite another jump in oil prices as fresh Iranian attacks on crude-producing neighbors added to an already disrupted petroleum supply picture.
Market gains in US indices moderated somewhat after an early rally prompted by upbeat outlooks from artificial intelligence leader Nvidia and major US airlines, which said strong travel demand has offset the hit from higher jet fuel costs.
The S&P 500 finished up 0.3 percent as markets await a US Federal Reserve decision on Wednesday. Delta Air Lines led the major American carriers with a 6.6 percent gain.
"The market is showing some resilience despite renewed strength in oil prices, but the pullback from earlier highs suggests a degree of caution," said Briefing.com.
"Participants appear reluctant to press bets too aggressively ahead of tomorrow's (Fed) decision, with investors likely looking for clarity on how policymakers are factoring the recent surge in oil prices into their inflation outlook and rate path."
Oil prices powered higher, with international benchmark Brent oil futures jumping 3.2 percent to $103.42 a barrel.
A new drone strike on Tuesday hit the Fujairah oil complex, which sits on the Gulf of Oman and enables the UAE to bypass the Strait of Hormuz for some exports.
Two drones targeted a major southern Iraqi oil field, an oil ministry spokesperson told AFP, after the second attack in four days.
The jump in oil prices also reflects fears that Middle Eastern supplies could face further curtailments after the effective closure of the Strait of Hormuz, through which about one-fifth of daily supply travels.
Rystad Energy estimated that just 12.5 million barrels per day of Middle Eastern oil remains online, down from the 21 million per day pre-war base.
"But the 12.5 million bpd figure is not secure," Rystad said. "If the (Hormuz) situation persists, the drop in departures could start feeding through into additional export losses in the weeks ahead, as producers face growing difficulty moving crude out of the Gulf."
Earlier in Asia, Hong Kong, Seoul and Taipei closed higher, though Tokyo and Shanghai dipped.
Investors are awaiting a slew of central bank decisions this week, with expectations that interest rates will remain unchanged as elevated energy prices threaten to drive up inflation, even if the labor market appears to be softening in the United States. 
The Federal Reserve "is in a bind," said eToro US investment analyst Bret Kenwell. 
"Slower growth and a softer labor market would normally argue for easing monetary policy. But inflation remains sticky, while surging oil prices add another layer of uncertainty to the outlook," he added.
Australia's central bank hiked its key interest rate Tuesday, pointing to "sharply higher fuel prices."

Key figures at around 2115 GMT

Brent North Sea Crude: UP 3.2 percent at $103.42 per barrel
West Texas Intermediate: UP 2.9 percent at $96.21 per barrel 
New York - Dow: UP 0.1 percent at 46,993.26 (close) 
New York - S&P 500: UP 0.3 percent at 6,716.09 (close)
New York - Nasdaq Composite: UP 0.5 percent at 22,479.53 (close)
London - FTSE 100: UP 0.8 percent at 10,403.60 (close)
Paris - CAC 40: UP 0.5 percent at 7,974.49 (close)
Frankfurt - DAX: UP 0.7 percent at 23,730.92 (close)
Tokyo - Nikkei 225: DOWN 0.1 percent at 53,700.39 (close)
Hong Kong - Hang Seng Index: UP 0.1 percent at 25,868.54 (close)
Shanghai - Composite: DOWN 0.9 percent at 4,049.91 (close)
Euro/dollar: UP at $1.1536 from $1.1505 on Monday
Pound/dollar: UP at $1.3352 from $1.3320
Dollar/yen: DOWN at 159.05 yen from 159.07 yen
Euro/pound: UP at 86.38 pence from 86.37 pence
burs-jmb/mlm

Norway

SAS cancels flights after fuel prices surge

  • Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns. phy/ef/gv/rh/giv 
  • Scandinavian airline SAS said Tuesday it will cancel at least a thousand flights in April after the war in the Middle East sent fuel prices surging.
  • Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns. phy/ef/gv/rh/giv 
Scandinavian airline SAS said Tuesday it will cancel at least a thousand flights in April after the war in the Middle East sent fuel prices surging.
"The price of jet fuel has doubled in ten days. Even if we try to absorb cost increases as much as possible, this is a shock that directly hits the airline industry," CEO Anko van der Werff told Swedish business daily Dagens Industri.
SAS had been one of the first carriers to announce fare increases to account for soaring jet fuel prices.
"We are cancelling a few hundred flights in March, but trying to protect our traffic as much as possible," the SAS chief said. 
He said more cancellations were expected after Easter, when traffic normally dips. 
The measures will affect "at least a thousand" flights, though he stressed this remained limited in scale given SAS operates around 800 flights a day.
Most of the cancelled flights in March were domestic routes in Norway, with only a few affecting Sweden and Denmark, according to a SAS statement sent earlier to AFP. 
"Given the ongoing situation in the Middle East, including the sharp and sudden increase in global fuel prices, we are taking measures to strengthen our resilience," the statement said. 
"One such measure is a limited number of short-term flight cancellations." 
A barrel of Brent oil, the benchmark reference for energy markets, has risen to around $100 since the United States and Israel attacked Iran in late February, leading Iran to retaliate against oil installations in several Gulf states.
The Strait of Hormuz, through which a fifth of the world's hydrocarbon demand normally passes, is effectively closed. 
Several airlines, including Air France-KLM, Cathay Pacific, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices, while many airlines have stopped serving destinations in the Middle East over security concerns.
phy/ef/gv/rh/giv 

US

Ships in Gulf risk shortages on board, industry warns

BY JOE JACKSON

  • "Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships.
  • Thousands of seafarers face dwindling supplies of fuel and water as they wait on board, stranded by the Middle East war, a key shipping body warned Tuesday as it urged governments to help get maritime traffic flowing again.
  • "Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships.
Thousands of seafarers face dwindling supplies of fuel and water as they wait on board, stranded by the Middle East war, a key shipping body warned Tuesday as it urged governments to help get maritime traffic flowing again.
John Stawpert is marine director of the London-based International Chamber of Shipping (ICS), which represents the world's national shipowner associations and over 80 percent of the world merchant fleet.
Here is an edited version of his interview with AFP ahead of an emergency meeting of the UN's International Maritime Organisation in London on Wednesday and Thursday.

What is the impact on crews?

"There are 20,000 seafarers on board 3,000 vessels of different types trapped in the Persian Gulf.
"Our biggest concern at the moment is the impact of an ongoing war on the stores on board the ships. We're already seeing some issues reported about fuel oil supplies. We've also got concerns about the ability of some of those ships to produce potable water.
"It's obvious things like food and water, in the first instance, and then seeing if there is a way to supply them with fuel, notwithstanding that if you can't move things by ship, it makes that incredibly difficult.
"We need to work with flag-states... but we also need to work with the regional states to come up with a solution that ensures these ships can be resupplied."

Are military escorts welcome?

"Potentially, yes, but it depends on the terms of the support that's being provided.
"It's not just thinking in terms of hardware on the water. It's also the information and intelligence... (available) to ships, which can help with that threat assessment that is ultimately what will decide whether ships move or not.
"The issue we have at the moment, and this is one of the reasons why we haven't seen very many ships at all move, is that it's not clear what the targeting criteria are for vessels going through those waters."
Escorts "would depend on what is being provided by whom and to whom. Really I think what we need is a solution that meets the needs of all ships, rather than just say, individual flags."

What must governments do?

"If we can persuade states, through some mechanism, to provide a channel effectively for those ships to get out of the region, then that would be hugely beneficial.
"Hopefully some states will step up and say they will provide some guarantee of safety to shipping that would give us the confidence that we could move through the Strait again.
"We would like to see serious consideration of some means to facilitate the movement of vessels out of the affected region as a priority. We'll be raising this at the International Maritime Organization tomorrow (Wednesday)."
jj/rlp/rmb

conflict

EU to help reopen blocked oil pipeline in Ukraine

  • Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
  • EU chief Ursula von der Leyen said Tuesday the bloc will help reopen a damaged pipeline that pumps Russian oil through Ukraine to Hungary -- after Budapest accused Kyiv of stalling on repairs in an escalating row.
  • Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
EU chief Ursula von der Leyen said Tuesday the bloc will help reopen a damaged pipeline that pumps Russian oil through Ukraine to Hungary -- after Budapest accused Kyiv of stalling on repairs in an escalating row.
Tensions have ratcheted up between the neighbours over the pipeline. Hungary's Prime Minister Viktor Orban invoked the issue to block a 90-billion-euro ($104 billion) loan to Ukraine as well as new sanctions on Russia.
Writing to President Volodymyr Zelensky, von der Leyen and European Council head Antonio Costa voiced hope the pipeline's "rapid repair" would allow the bloc to move forward "in a timely manner" with the EU loan and sanctions package.
"The EU has offered Ukraine technical support and funding. The Ukrainians have welcomed and accepted this offer," she said in a statement, released with the letter and Zelensky's reply.
"European experts are available immediately," she said.

'No oil, no money'

Orban said his position remained unchanged, adding he had spoken with Costa and Slovak Prime Minister Robert Fico, whose country also received supplies through the pipeline.
"If President Zelensky wants to get his money from Brussels, then the Druzhba pipeline must be reopened," Orban said in a Facebook video. "No oil, no money," he added.
Landlocked Hungary and Slovakia have accused Ukraine of deliberately delaying reopening the Druzhba pipeline, which Kyiv says was damaged by Russian strikes in January.
Ukraine had been resisting the EU offer to help get oil flowing again. Zelensky called it "blackmail" to link the pipeline issue with support for its war effort against Russia's invasion.
But the letters published Tuesday showed the Ukrainian leader relenting, as the EU dialed up pressure for a resolution.
Zelensky said he accepted the "necessary technical support and funding to be able to conclude the repair work" on the pipeline, and would ask the chief of Ukraine's state oil and gas firm Naftogaz to "take this forward" with the EU.
EU leaders are to hold a summit on Thursday.
The Middle East war has seen countries worldwide search for for ways to release more oil supplies onto the market to ease prices.
Orban, Russian President Vladimir Putin's closest ally in the EU, has urged the 27-nation bloc to suspend sanctions on Russian oil and gas to counter rising prices.
The pipeline dispute has also come as the nationalist Hungarian leader ramps up political attacks on Ukraine ahead of a closely fought legislative election on April 12.
ec/ub-mg-jza/tw

Fed

US Fed expected to keep rates steady as Iran war impact looms

BY ASAD HASHIM

  • The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
  • The US Federal Reserve opened its two-day meeting on Tuesday with policymakers expected to keep interest rates unchanged as they digest weak economic data and gauge the economic effects of the Iran war.
  • The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
The US Federal Reserve opened its two-day meeting on Tuesday with policymakers expected to keep interest rates unchanged as they digest weak economic data and gauge the economic effects of the Iran war.
The central bank's rate-setting Federal Open Market Committee (FOMC) began its gathering at 10:30 am Eastern time (14:30 GMT), a central bank spokesperson said.
The meeting comes as the Fed battles stubbornly high inflation and weak demand in the US labor market, with its dual mandates potentially at odds with one another.
The US-Israel war on Iran, launched on February 28, is also expected to have major economic implications, with oil prices surging and supply chains disrupted.
Rising oil prices are expected to have knock-on global inflationary effects, including in the United States, where price increases have remained above the Fed's long-term two-percent target for years.
US average gasoline prices have increased around 27 percent since the start of the war, according to the AAA motor club's gauge.
Analysts have also warned of the conflict causing supply chain disruptions and oil shortages that will drag down economic growth.
Central banks tend to ignore the inflation effects of short-term price shocks, but it is unclear how long the war in Iran will drag on.
US households have been battered by years of higher-than-expected inflation after the Covid pandemic.
In January, the Fed's preferred inflation gauge came in at 2.8 percent, with core inflation rising by 3.1 percent, its highest level since March 2024.
The US labor market has also shown weakness in recent months, with unemployment ticking up in February due to weak labor demand.
Last week, there was more bad news, with new data showing the US economy grew at a significantly slower pace than initially estimated for the final months of 2025.
The new data and outlook for effects of the Iran war have seen traders change their expectations of the Fed.
Before the war, a rate-cut was expected as soon as the summer, with another possible later in the year.
On Tuesday, CME's FedWatch tool showed expectations of just one rate cut by the end of the year, likely coming after September. 
The Fed cut rates at three consecutive meetings late last year, but they remain above levels that US President Donald Trump has demanded.
Trump has repeatedly insulted and criticized Fed Chair Jerome Powell, and attempted to unseat another Fed Governor. 
Last week, a Department of Justice investigation into Powell over cost overruns related to Fed building renovations ran into an obstacle when a federal judge quashed subpoenas in the case.
Powell's term as Fed chair ends in May, making this his penultimate meeting.
Trump has nominated Kevin Warsh to replace him, but he has yet to be confirmed by the Senate. 
aha/dw