bankruptcy

Spirit Airlines begins 'wind-down', cancels all flights

BY HOLMES CHAN

  • Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
  • Low-cost US carrier Spirit Airlines said on Saturday that all of its flights have been cancelled as it started an "orderly wind-down of operations," citing spiking fuel prices in recent weeks as a key factor.
  • Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
Low-cost US carrier Spirit Airlines said on Saturday that all of its flights have been cancelled as it started an "orderly wind-down of operations," citing spiking fuel prices in recent weeks as a key factor.
The troubled carrier, which was looking to emerge from its second bankruptcy in a year, announced it was ceasing operations after a potential White House bailout fell through.
Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
"All Spirit flights have been cancelled, and Spirit Guests should not go to the airport," said the company.
US Transportation Secretary Sean Duffy scrambled to defend the Trump administration's position as a rescue plan that was said to be in the works never materialized.
"The President was like a dog on a bone trying to figure out a way to keep Spirit afloat," Duffy said in a morning press conference at Newark Liberty International Airport in New Jersey. 
"In the end, this was a creditor issue. Again, they have the final say of whether they want to do a deal with the government," he said. "But also from the government's perspective, we oftentimes don't have a half a billion dollars laying around in a spare account that we can put into a bailout of an airline."
Spirit, which launched over 30 years ago with its bargain no-frills offering that put pressure on larger airlines, was the ninth-largest US carrier by passenger count as of December 2025, according to the Department of Transportation.
The company's webpage displayed a message telling guests that "customer service is no longer available." The airline said it will process refunds for purchased flights.
Jet fuel prices have more than doubled since the conflict with Iran began in February, prompting major US airlines to lower their profit forecasts, trim back on capacity growth plans or both.
Spirit's President and CEO Dave Davis said the company in March "reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business."
"However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the Company," Davis said in the press release.
"Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted."

'Final proposal'

President Donald Trump, who had floated organizing a relief package reportedly worth $500 million to save the cash-strapped carrier, said on Friday that Spirit was given a "final proposal" for a bailout.
Talks collapsed after some bondholders rejected the plan, the Wall Street Journal and other US news outlets reported, citing sources close to the discussions.
Trump administration officials have also criticized predecessor Joe Biden's administration, which blocked JetBlue Airways' proposed $3.8 billion takeover of the company, arguing it would harm consumers.
In its statement, Spirit said there were "extensive and comprehensive efforts to restructure the business," but the lack of additional funding meant that Spirit "had no choice but to begin this wind-down."
Jan Brueckner, emeritus economics professor at the University of California, Irvine, told AFP last week that the fuel price surge was "the straw that broke the camel's back."
American Airlines said early Saturday that it was in touch with US authorities on "steps we are taking to help mitigate the impact on the communities Spirit serves and the traveling public."
American said it was offering "rescue fares" on Spirit's routes.
United Airlines also said it was providing "price-capped, one-way tickets from most cities where Spirit flew."
The Association of Flight Attendants, a union representing around 5,000 Spirit employees, said it was in contact with other airlines about supporting Spirit staff.
"Every Flight Attendant in the operation will have their hotel and/or a flight to return home accommodated," the union added, calling it the "hardest news of our lives."
Spirit Airlines, which began offering flights in 1992, was known for its yellow-colored planes and employed just over 11,000 people as of 2024.
bur-pnb/md

bankruptcy

Spirit Airlines begins 'wind-down', cancels all flights

  • Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
  • Low-cost US carrier Spirit Airlines said on Saturday that all of its flights have been cancelled as it started an "orderly wind-down of operations" after a potential White House bailout fell through.
  • Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
Low-cost US carrier Spirit Airlines said on Saturday that all of its flights have been cancelled as it started an "orderly wind-down of operations" after a potential White House bailout fell through.
US President Donald Trump previously expressed interest in organizing a package to save thousands of jobs at the carrier, which filed for bankruptcy twice in 2025.
Spirit Airlines' parent company, Spirit Aviation Holdings, said in an early Saturday press release that it has "started an orderly wind-down of operations, effective immediately."
"All Spirit flights have been cancelled, and Spirit Guests should not go to the airport," said the company, which had put pressure on larger airlines with its no-frills offering launched over 30 years ago.
The company's webpage displayed a message telling guests that "customer service is no longer available." The airline said it will process refunds for purchased flights.
Spirit's President and CEO Dave Davis said the company in March "reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business."
But skyrocketing jet fuel prices since the start of the Middle East war "left us with no alternative but to pursue an orderly wind-down of the Company," Davis said in the press release.
"Sustaining the business required hundreds of millions of additional dollars of liquidity that Spirit simply does not have and could not procure. This is tremendously disappointing and not the outcome any of us wanted."
The company said that the lack of additional funding meant that Spirit "had no choice but to begin this wind-down."
Spirit Airlines, which began offering flights in 1992, was known for its yellow-colored planes and employed just over 11,000 people as of 2024.
The airlines announced in February an "agreement in principle" to restructure its debt with creditors, saying it expected to emerge from bankruptcy by early summer.
But a spike in fuel prices sparked by the US-Israeli war on Iran that started a few days later delivered a heavy blow to the struggling carrier.
hol/aks

tariff

Trump says will raise US tariffs on EU cars to 25%

BY BEIYI SEOW

  • But the US leader said Friday: "Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States."
  • President Donald Trump said Friday that he will hike US tariffs on cars and trucks from the European Union next week, charging that the bloc is not complying with an earlier trade deal.
  • But the US leader said Friday: "Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States."
President Donald Trump said Friday that he will hike US tariffs on cars and trucks from the European Union next week, charging that the bloc is not complying with an earlier trade deal.
The pact, which was struck last summer, had capped the US tariff on EU autos and parts at 15 percent, which is lower than the 25-percent duty that Trump imposed on many other trading partners.
These sector-specific duties were not affected by a Supreme Court ruling earlier in the year that struck down a swath of Trump's global levies.
But the US leader said Friday: "Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States."
"The Tariff will be increased to 25%," he wrote on his Truth Social platform.
He told a Florida event later Friday that Washington had informed Germany of his threat because "they and other European nations have not adhered to our trade deal."
He accused German automakers like Mercedes-Benz and BMW of ripping off Americans.
Trump's announcement came a day after his renewed criticism of German Chancellor Friedrich Merz. Trump told Merz to focus on ending the Ukraine war instead of "interfering" on Iran.
Germany would likely be hit hard by a sharp vehicle tariff, as it is responsible for a significant amount of EU auto exports.
Reacting to the announcement, a European Commission spokesperson told AFP: "Should the US take measures inconsistent with the joint statement, we will keep our options open to protect EU interests."
The spokesperson added that the bloc is implementing its commitments "in line with standard legislative practice" and keeping the Trump administration updated during this process.
Last July, the EU had laid the groundwork for possible retaliation if talks with Washington fell through -- preparing a list of US goods that could be targeted.

'Light a fire'

"President Trump has clearly lost patience with EU efforts to implement its commitments under the bilateral trade deal concluded months ago," former US trade official Wendy Cutler told AFP.
She said Trump appeared to be "hoping to light a fire under Brussels to accelerate its domestic procedures."
His threats to the EU are reminiscent of a similar move against South Korea months ago, added Cutler, who is now senior vice president at the Asia Society Policy Institute.
In late March, EU lawmakers gave their green light to the bloc's tariff deal with Trump, but with conditions.
A large majority of EU lawmakers agreed to cut EU tariffs on some US imports, as a first step towards implementing the 2025 deal, but they also sought additional safeguards.
Although the European Parliament has given its conditional approval to the EU-US trade pact, before the deal is implemented by the bloc, it still needs to be negotiated with EU states.
The new threat on European cars "explain why many small businesses expect to be cautious" with Trump's tariffs, said Dan Anthony, who heads "We Pay the Tariffs," a coalition of nearly 1,200 small businesses.
"You never know what might trigger the next tariff threat," Anthony added in a statement.
In April, EU trade chief Maros Sefcovic was in Washington to meet with counterparts including US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.
At the time, he said the EU was also seeking more progress in easing the effects of still-steep US steel tariffs, adding that talks were going in a positive direction.
The United States is the second largest market for new EU vehicle exports, after the United Kingdom, according to a 2025 fact sheet by the European Automobile Manufacturers' Association.
Over a fifth of EU vehicle exports went to the United States.
Germany alone exported some 450,000 vehicles to the United States in 2024, according to the VDA industry group. But that figure has since slipped.
bys/ksb

Global Edition

S&P 500, Nasdaq end at fresh records on tech earnings strength

  • Oil prices slid after Iranian state media reported that Iran delivered the text of a new proposal to mediator Pakistan on Thursday evening.
  • The Nasdaq and S&P 500 soared to fresh records Friday, cheering mostly strong earnings from tech giants and continuing to shrug off the prolonged US-Iran war that has lifted oil prices.
  • Oil prices slid after Iranian state media reported that Iran delivered the text of a new proposal to mediator Pakistan on Thursday evening.
The Nasdaq and S&P 500 soared to fresh records Friday, cheering mostly strong earnings from tech giants and continuing to shrug off the prolonged US-Iran war that has lifted oil prices.
The records came on the heels of upbeat results from Apple, which rose 3.2 percent, extending the positive sentiment on Wall Street on a day when several leading bourses in Europe and Asia were closed.
"The war is not over but the market doesn't care," said Adam Sarhan of 50 Park Investments. 
"That tells me that the reaction to the news is extremely bullish and until we see any heavy selling show up, the bulls are in control."
Analysts have pointed to a winning corporate earnings season as a factor behind soaring markets. Companies in the S&P 500 are on track to report earnings growth of 27.1 percent, the highest rate in more than four years, according to Factset.
"The latest US earnings season has been robust, which has helped prevent global markets from suffering big losses despite the impact of the Iran conflict," said AJ Bell investment director Russ Mould.
Oil prices slid after Iranian state media reported that Iran delivered the text of a new proposal to mediator Pakistan on Thursday evening.
However, US President Donald Trump rejected the proposal.  
"At this moment I'm not satisfied with what they're offering," Trump told reporters, laying blame for the stalled talks with Iran due to "tremendous discord" within its leadership.
While oil prices retreated, both major contracts remain above $100 a barrel as the Strait of Hormuz remains effectively shut down.
ExxonMobil Chief Executive Darren Woods warned prices could go higher, noting that the oil market has so far been able to manage the dislocation because of the amount of crude in commercial inventories and the release of some strategic governments reserves.
However, those supplies are running their course, he said.
"So there's more to come if the strait remains closed," Woods said on an earnings conference call with analysts. 
Several markets were shut in Europe and Asia for the May 1 holiday, including in France, Germany, Hong Kong and mainland China.
Among markets that were open, Tokyo climbed while London fell, weighed by British bank NatWest, which reported higher quarterly net profit but warned economic conditions were deteriorating.
The European Central Bank and the Bank of England both held interest rates steady on Thursday but signaled possible increases ahead.
The US Federal Reserve and the Bank of Japan also kept borrowing costs unchanged this week.

Key figures at around 1025 GMT

Brent North Sea Crude: DOWN 2.2 percent to $108.17 a barrel
West Texas Intermediate: DOWN 3.0 percent at $101.97 a barrel
New York - Dow: DOWN 0.3 percent at 49,499.27(close)
New York - S&P 500: UP 0.3 percent at 7,230.12 (close)
New York - Nasdaq: UP 0.9 percent at 25,114.44 (close)
London - FTSE 100: DOWN 0.1 percent at 10,363.93 (close)
Tokyo - Nikkei 225: UP 0.4 percent at 59,513.12 (close)
Paris - CAC 40: Closed for a holiday
Frankfurt - DAX: Closed for a holiday
Hong Kong - Hang Seng Index: Closed for a holiday
Shanghai - Composite: Closed for a holiday
Dollar/yen: DOWN at 157.06 yen from 156.59 yen on Thursday
Euro/dollar: DOWN at $1.1720 from $1.1731
Pound/dollar: DOWN at $1.3578 from $1.3604
Euro/pound: UP at 86.32 pence from 86.24 pence
bur-jmb/acb

ExxonMobil

ExxonMobil CEO sees chance of higher oil prices as earnings dip

BY JOHN BIERS

  • While surging prices are ultimately expected to boost US oil company earnings, both ExxonMobil and Chevron suffered a significant hit in the first quarter because of how US accounting rules require the reporting of derivative contracts.
  • US oil giants reported lower earnings Friday with accounting effects muting the benefits of the Middle East oil shock, as ExxonMobil's CEO cautioned that crude prices could still increase.
  • While surging prices are ultimately expected to boost US oil company earnings, both ExxonMobil and Chevron suffered a significant hit in the first quarter because of how US accounting rules require the reporting of derivative contracts.
US oil giants reported lower earnings Friday with accounting effects muting the benefits of the Middle East oil shock, as ExxonMobil's CEO cautioned that crude prices could still increase.
Oil prices jumped during the quarter from the mid-$60s in early February to more than $100 a barrel at times in March as Iran's almost complete shutdown of the Strait of Hormuz roiled global markets.
While surging prices are ultimately expected to boost US oil company earnings, both ExxonMobil and Chevron suffered a significant hit in the first quarter because of how US accounting rules require the reporting of derivative contracts.
ExxonMobil reported profits of $4.2 billion, down 45.8 percent from the year-ago period. But profits would have been $8.8 billion excluding these "timing effects" that ExxonMobil expects will reverse in future quarters.
At Chevron, profits came in at $2.2 billion, down 36.9 percent. But the hit from timing effects was around $3 billion, said chief financial officer Eimear Bonner.
While oil prices have risen since the US and Israel launched strikes on Iran on February 28, the increase thus far has been measured, ExxonMobil CEO Darren Woods said, but he warned that prices could spike.
"If you look at the unprecedented disruption in the world's supply of oil and natural gas, the market hasn't seen the full impact of that yet," Woods said.
"You only have to look at the ranges that oil prices have moved at, which are very consistent with the last 10 years in the history versus this (historically) unprecedented disruption," he said. 
"So there's more to come if the strait remains closed."
Woods said the oil market has so far been able to manage the dislocation because of the amount of crude in commercial inventories and the release of some strategic governments reserves.
However, those supplies are running their course, he said.
An April securities filing by ExxonMobil revealed that attacks on facilities in Qatar and the United Arab Emirates had negatively affected its output.
Woods said Friday it was hard to estimate how long it would take to repair a site in Qatar because officials with the project, which is operated by QatarEnergy, have not yet been able to do enough work. 
The Qatar outage dented ExxonMobil's natural gas output, which fell 8.2 percent from the year-ago level.

Questions on Venezuela

Chevron CEO Mike Wirth described the outlook for the oil market as extremely uncertain, saying: "I'm not sure I could argue with a lot of confidence that I could describe what it looks like."
Under one scenario, the Strait of Hormuz could be reopened relatively quickly "and we get back into a market that's pretty well supplied," Wirth said. 
But another scenario would yield a much "tighter" market, said Wirth, adding that the company is not ramping up investment or otherwise shifting from its long-term strategy.
On Venezuela, Wirth reiterated that Chevron remains interested in bolstering its long-term position but continues to await key details on issues such as royalty terms and dispute resolution.
"There are still questions," Wirth said. "We need to see further progress before you would put more capital to work."
Shares of ExxonMobil fell 1.2 percent in afternoon trading while Chevron dropped 1.6 percent.
jmb/sst

politics

Baguettes take centre stage on France's Labour Day

BY BEATRICE JOANNIS WITH BAPTISTE PACE IN SAINT-JULIEN-CHAPTEUIL

  • "Let's have several... at least four," he said, as he sought to promote a new bill to clearly exempt independent bread and flower shops from mandatory rest on Labour Day.
  • French bakeries sold crusty baguettes and flaky croissants with government backing Friday, defying labour unions arguing that May 1 should remain a day of compulsory rest.
  • "Let's have several... at least four," he said, as he sought to promote a new bill to clearly exempt independent bread and flower shops from mandatory rest on Labour Day.
French bakeries sold crusty baguettes and flaky croissants with government backing Friday, defying labour unions arguing that May 1 should remain a day of compulsory rest.
Prime Minister Sebastien Lecornu ordered several baguettes for lunch in front of the cameras in the village of Saint-Julien-Chapteuil in central France.
"Let's have several... at least four," he said, as he sought to promote a new bill to clearly exempt independent bread and flower shops from mandatory rest on Labour Day.
It is also a day for unions to organise marches and protests. Police said 158,000 had joined the activities across France and the interior ministry added that 15 people had been arrested. The main CGT union said 300,000 had taken part.
Under French law, "May 1 is a public holiday and a non-working day". Essential services -- such as hospitals and hotels -- can remain open but must pay their staff double.
But there has been confusion about whether bakeries can make their employees work.
Labour inspectors on the public holiday in 2024 reported five bakers to the authorities for operating.
Although the bakers were all acquitted last year, their plight sparked debate across France.
The government earlier this week encouraged bakers to work on May 1, saying they were "indispensable to the continuity of social life".
It also said florists could employ staff to sell fragrant lily of the valley, which is traditionally sold on Labour Day in France.
On Wednesday, the cabinet put forward a bill -- that has yet to go to a vote in parliament -- to allow both bakeries and florists to open on the first day of May, provided staff volunteer to work in writing and are paid double wages.
The government decided not to back a previous proposal for more businesses including butchers and fishmongers to open on the public holiday.

'Hands off May 1'

The country's main unions argue that no employee is truly free to volunteer when they are seeking to keep a work contract.
They fear French workers will soon all be required to work on the holiday as exceptions gradually become the rule.
"Hands off May 1," read the poster of a hard-left activist at a May Day protest in Paris.
CGT leader Sophie Binet criticised "employers who feel entitled to open all their businesses and make their staff work on May 1, even though it's not allowed".
"The government must ensure that the law and the rule of law are upheld," she said, leading the protest in the capital.
She added that the public holiday was not however her chief concern.
"It's not the stealing of May 1 that should be on parliament's agenda. It's a major plan to raise wages," she said.
Some came to protest in costume.
A man dressed as a late 18th-century revolutionary held a pike topped with a picture of the US president, billionaire Donald Trump.
A woman protester nearby was dressed as Marie-Antoinette, the queen executed by guillotine during the French revolution.
According to folklore, when she was told the poor were running out of bread, she responded: "Let them eat cake".
burs-ah/jxb/jj

trade

Blockbuster EU-Mercosur trade deal enters into force

  • The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
  • The European Union's mammoth trade deal with South American bloc Mercosur provisionally enters into force Friday, despite a pending court ruling on its legality.
  • The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
The European Union's mammoth trade deal with South American bloc Mercosur provisionally enters into force Friday, despite a pending court ruling on its legality.
The agreement to create one of the world's biggest free-trade zones was sealed in January after more than 25 years of intermittent negotiations.
Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers.
The deal, which eliminates tariffs on more than 90 percent of trade between the two sides, has proven divisive in Europe. France has led opposition over concerns some of its farmers will be left worse off.
But -- backed by a majority of EU countries -- Brussels ploughed ahead as it pushes to diversify trade in the face of challenges from the United States and China.
European Commission chief Ursula von der Leyen on Friday hailed the start of the deal's implementation, stating on X: "Provisional application will show the agreement's tangible benefits."
She said that "as of now... tariffs start falling" and European companies "are gaining access to new markets".
The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
Von der Leyen and Antonio Costa, the president of the European Council, held a video call to mark the occasion with Mercosur leaders, which include Argentina and Brazil.
Afterwards, Costa said the agreement was "more than a trade deal" but "a partnership that reflects our shared vision of the world".
"A resilient multilateral system rests on win-win agreements like this, grounded on rules, values and shared interests," he wrote on X.

Wrangling

Von der Leyen said that "legitimate" sensitivities in the EU had been addressed while trade commissioner Maros Sefcovic called it "a big day for EU trade".
"It's a chance for growth and stronger ties with important global partners," he wrote on X.
The application of the deal comes after the European Parliament referred it to the EU's top court in January, instead of giving it the green light.
France unsuccessfully attempted to block the deal over worries for its farmers, who fear being undercut by cheaper goods from agricultural powerhouse Brazil and its neighbours.
The staunch French opposition to the pact caused a public rift with export-dependent Germany, pitting the EU's two biggest countries against each other.
French left-wing MEP Manon Aubry told AFP it was a "dark day". European farmers "will be facing unfair competition from hundreds of thousands of tonnes of agricultural products that will flood the European market", she said.
Health and environmental standards would not be as high, Aubry added.
In the run-up to the signing of the deal, farmers in tractors, with smoke flares and flags, turned out in force on the streets of Brussels and Strasbourg, to voice their opposition.
But German Foreign Minister Johann Wadephul on Friday issued his own social media post hailing the Mercosur deal's implementation.
"This strengthens our resilience & rules-based trade," he said on X.
At the same time as it has looked to wrap up the Mercosur deal, the EU has also ploughed on with other agreements to get closer to other important markets such as India, Australia and Indonesia.
bur-phz/jj

Fed

US Fed official says rate hikes may be needed if inflation surges

BY BEIYI SEOW

  • A bigger price shock could cause public expectations of inflation to shift, and the Fed would need to act against it, he believes.
  • A key US Federal Reserve official warned Friday that a series of interest rate hikes could be needed if price shocks from the Middle East war are larger than expected, fuelling inflation.
  • A bigger price shock could cause public expectations of inflation to shift, and the Fed would need to act against it, he believes.
A key US Federal Reserve official warned Friday that a series of interest rate hikes could be needed if price shocks from the Middle East war are larger than expected, fuelling inflation.
"Federal funds rate increases, potentially a series of them, could be warranted, even at the risk of further weakness to the labor market," Minneapolis Fed President Neel Kashkari said, explaining his dissent to the central bank's overall decision this week.
A bigger price shock could cause public expectations of inflation to shift, and the Fed would need to act against it, he believes.
Kashkari was among four officials who voted against the Fed's statement Wednesday after a two-day policy meeting. There are 12 voting members on the bank's rate-setting committee.
Like him, two other regional Fed presidents, Beth Hammack and Lorie Logan, supported the decision to hold rates steady but not the bank's signal that another cut was the next likeliest move.
Hammack and Logan cited risks of steeper inflation too in separate statements defending their decisions.
Fed governor Stephen Miran, however, continued pushing for lower interest rates.
This was the highest number of dissents since October 1992, highlighting the challenges that Fed Chair Jerome Powell's expected successor, Kevin Warsh, will face if he is confirmed.

'Increasingly concerned'

The rate-setting Federal Open Market Committee "should offer a policy outlook that signals that the next rate change could be either a cut or a hike, depending on how the economy evolves," Kashkari said on Friday.
He flagged risks from an extended closure of the Strait of Hormuz due to the Middle East conflict, and the potential for more damage to the region's energy and commodity infrastructure.
Tehran has virtually blocked the waterway, a key route for energy shipments, after US-Israeli strikes since February 28.
This caused a surge in oil prices, sparking worries of more persistent inflation.
Logan of the Dallas Fed said she is "increasingly concerned about how long it will take" for inflation to return to the Fed's longer run two-percent target. Price hikes have been above target for years, since the pandemic.
Hammack of the Cleveland Fed said: "I dissented from the post-meeting statement because I did not believe it was appropriate to include an easing bias around the future path for monetary policy."
"Inflation pressures continue to be broad based, and rising oil prices present an additional source of inflationary pressure," she said.
President Donald Trump has made no secret of his wish for more interest rate cuts, slamming Powell repeatedly for not slashing them more aggressively.
As Trump steps up pressure on the independent institution, Powell announced Wednesday that he would stay on as a Fed governor after his term as chairman expires May 15.
Powell can remain on the Fed's board of governors until 2028, and his decision sparked a wave of fresh criticism from the Trump administration.
bys/dw

politics

Baguettes take centre stage on France's Labour Day

  • Under French law, "May 1 is a public holiday and a non-working day".
  • French bakeries sold crusty baguettes and flaky croissants with government backing Friday, defying labour unions arguing that May 1 should remain a sacred day of compulsory rest.
  • Under French law, "May 1 is a public holiday and a non-working day".
French bakeries sold crusty baguettes and flaky croissants with government backing Friday, defying labour unions arguing that May 1 should remain a sacred day of compulsory rest.
Prime Minister Sebastien Lecornu ordered several baguettes in front of the cameras in the village of Saint-Julien-Chapteuil in central France.
"Let's have several... at least four," he said, as he sought to promote a new bill to clearly exempt independent bread and flower shops from mandatory rest on Labour Day.
Under French law, "May 1 is a public holiday and a non-working day". Essential services -- such as hospitals and hotels -- can remain open must pay their staff double.
But there has been confusion about whether bakeries can open.
Labour inspectors on the public holiday in 2024 reported five bakers to the authorities for operating, causing them to be hauled before a court.
The bakers were all acquitted last year, but their plight sparked debate across France.
The government earlier this week encouraged bakers to work on May 1, saying they were "indispensable to the continuity of social life".
It also said florists should open to sell fragrant lily of the valley, which is traditionally sold on Labour Day in France.
On Wednesday, the cabinet put forward a bill -- that has yet to go to a vote in parliament -- to allow both bakeries and florists to open on the first day of May, so long as employees volunteer to work in writing and are paid double wages.
But the country's main unions argue that no employee is truly free to volunteer when they are seeking to keep a work contract.
They also fear French workers will soon all be required to work on the holiday.
"Social history shows us that each time a principle is undermined, exemptions gradually increase until they become the rule," they warned in a joint statement last month.
burs-ah/cw

US

Gulf countries' plans to bypass Hormuz still far off, experts warn

BY SAHAR AL ATTAR

  • Another possibility could be the India-Middle East-Europe Economic Corridor project, launched in 2023, which partially aimed to bypass both the Strait of Hormuz and the Suez Canal, using rail links across the Middle East to connect European and Indian shipping routes.
  • The war in the Middle East has forced the Gulf monarchies to rethink their oil and trade routes, but rerouting them will be no simple task, experts say.
  • Another possibility could be the India-Middle East-Europe Economic Corridor project, launched in 2023, which partially aimed to bypass both the Strait of Hormuz and the Suez Canal, using rail links across the Middle East to connect European and Indian shipping routes.
The war in the Middle East has forced the Gulf monarchies to rethink their oil and trade routes, but rerouting them will be no simple task, experts say.
Faced with the closure of the Strait of Hormuz, the only maritime entry point to the Gulf, the region's Arab nations are looking for ways to bypass Tehran's stranglehold on their exports.
Badr Jafar, the UAE's special envoy for business and philanthropy, wrote in the Financial Times in early April that the Gulf states would never "return to a posture of strategic dependence on a narrow strait controlled by an unpredictable neighbour".
He insisted that new pipeline and port capacity would be built and "the power grids, water systems and trade corridors connecting the region's economies ... formalised". Economics, politics and regional diplomatic rivalries are likely to get in the way, however , experts told AFP.

New pipelines difficult

While Kuwait, Qatar and Bahrain have no coastline outside the Gulf and no alternative to the strait for seabound oil and gas, Saudi Arabia and the United Arab Emirates both have pipelines allowing them to ship at least some of their output from ports beyond Hormuz -- and plan more.
Nevertheless, these pipelines only cover a fraction of the two nations' pre-war exports and would need to be expanded if either country wanted to completely end their reliance on the Strait of Hormuz.
Robert Mogielnicki, of the Arab Gulf States Institute in Paris, said that building new pipelines "will take time" and such infrastructure would "still possess vulnerabilities".
"Diversifying energy export supply routes is nevertheless going to be crucial in the years ahead," he added.
For liquefied natural gas, of which Qatar is by far the dominant producer in the region, the dependency on Hormuz is even greater.
Yet, as Frederic Schneider, a senior fellow at the Middle East Council on Global Affairs, explained, building alternative natural gas infrastructure would likely prove economically unattractive.
"The idea of a trans-Arabian gas pipeline has occasionally been floated but never progressed," he said. 
"The distances, political complexity, and cost make it unattractive against LNG tankers in normal conditions, and normal conditions are what pipeline economics are built on."

Overland no alternative

The Gulf's major container ports are mostly located on its southern shores, including Dubai's Jebel Ali, the region's main logistical hub.
With the Strait of Hormuz off limits, ships have been diverted to Oman and Saudi Arabia's Red Sea coast with containers then shipped onwards overland.
But overland capacity is limited while costs are "significantly higher" said Schneider.
One possibility for boosting land-based transport capacity would be the Gulf Cooperation Council's planned rail network. Yet the project, which is supposed to link all six member states by 2030, has been plagued by delays. 
Another possibility could be the India-Middle East-Europe Economic Corridor project, launched in 2023, which partially aimed to bypass both the Strait of Hormuz and the Suez Canal, using rail links across the Middle East to connect European and Indian shipping routes.
Yet the idea remains "tenuous, if not hypothetical" said Schneider, not least because the project would involve linking Saudi Arabia with Israel at a time when Riyadh has cooled on establishing diplomatic relations with Israel.

'Zero-sum' rivalry

While Gulf governments talk about integration, analysts warned that their own self-interest may get in the way.
"Tensions around the strait will generate some tailwinds supporting regional integration projects, but these will also have to contend with some serious economic headwinds and governments that will be super focused on their domestic fronts," said Mogielnicki.
The budgetary pressures created by the war, which have not only halted oil and gas exports but also hit tourism, aluminium and fertiliser production, may also make coordination less likely.
"This fiscal crisis only intensifies the intense, beggar-thy-neighbour, zero-sum economic rivalry that has marked GCC national economic policies for years," said Schneider.
Previous conflicts in the Gulf, he pointed out, did not lead to more regional integration, even if there were bilateral deals, he said.
While the shock of closing Hormuz is much greater, he said, "I would be cautious about treating a geopolitical shock as a substitute for the political will and institutional capacity that have been missing so far".
saa/dcp/dc

US

Iran activates air defences as Trump faces congressional deadline

BY AFP TEAMS IN TEHRAN, WASHINGTON, BEIRUT AND JERUSALEM

  • The Tasnim and Fars news agencies reported that air defence systems, heard in some parts of the Iranian capital, were activated "to counter small aircraft and reconnaissance drones" for around 20 minutes but that the situation had returned to "normal".
  • Tehran's air defences were activated to counter small aircraft and drones late Thursday, as the White House signalled that it will not be reined in by a congressional deadline on the Iran war.
  • The Tasnim and Fars news agencies reported that air defence systems, heard in some parts of the Iranian capital, were activated "to counter small aircraft and reconnaissance drones" for around 20 minutes but that the situation had returned to "normal".
Tehran's air defences were activated to counter small aircraft and drones late Thursday, as the White House signalled that it will not be reined in by a congressional deadline on the Iran war.
The Tasnim and Fars news agencies reported that air defence systems, heard in some parts of the Iranian capital, were activated "to counter small aircraft and reconnaissance drones" for around 20 minutes but that the situation had returned to "normal".
US President Donald Trump's administration faced a looming midnight deadline to secure congressional authorisation for the war against Iran, setting up a clash between the White House and Congress.
The Trump administration argued that the 60-day clock to seek authorisation was effectively paused by a ceasefire announced last month.
"For War Powers Resolution purposes, the hostilities that began on Saturday, February 28 have terminated," a senior administration official told AFP late on Thursday, noting that there has been no exchange of fire between the United States and Iran since the April 7 ceasefire.

'Shameful defeat'

Earlier on Thursday, Iran's supreme leader declared that the United States had suffered a shameful defeat, defiantly rejecting a warning from Trump that an economically punishing US naval blockade could be enforced for months to come.
Oil prices hit a four-year high, then fell back slightly before Mojtaba Khamenei issued a written statement read on state television declaring that Iran was now in the driver's seat in the crisis.
"Today, two months after the largest military deployment and aggression by the world's bullies in the region, and the United States' disgraceful defeat in its plans, a new chapter is unfolding for the Persian Gulf and the Strait of Hormuz," he said, hailing Iran's control over shipping in the strait.
He went on to predict a bright future for the Gulf without the United States, saying those who interfere in the region from afar "have no place there except at the bottom of its waters."
Khamenei was wounded in the initial US-Israeli strikes that killed his father, Ali Khamenei, and has not been seen in public since being named his successor as supreme leader in March.
The United States imposed a blockade on Iran's ports two weeks ago, while the Islamic republic has maintained its stranglehold over the strategic Strait of Hormuz since the start of the Middle East war at the end of February.
Washington is now seeking to assemble an international coalition of allied states and shipping firms to coordinate safe passage through Hormuz -- while maintaining its blockade of ships serving Iran, a State Department official told AFP.
Trump threatened Thursday to withdraw US troops from Italy and Spain, extending similar warnings already made against Germany, after lambasting the NATO allies for failing to support US-Israeli operations against Iran, including in the Strait.

'Act again'

Israeli Defense Minister Israel Katz warned meanwhile that it was "possible that we may soon have to act again" against Iran to achieve the war's objectives.
But the commander of the Iranian Revolutionary Guards aerospace force, Majid Mousavi, said even a "short and tactical" enemy operation would be met "with painful, prolonged, and extensive strikes."
Tehran residents speaking earlier to AFP journalists in Paris described a sense of despair that the Islamic republic government was clinging to power and that negotiations had stalled.
"From the Islamic Republic still being in place to the innocent people whose lives were destroyed in this war, everything is so disappointing," one 28-year-old IT worker told AFP via messaging app from the Iranian capital.

'Intolerable'

Trump has reportedly told oil executives and national security officials this week to prepare for a prolonged US blockade designed to force Tehran to surrender its nuclear programme.
US Central Command said Wednesday it had redirected a total of 44 commercial vessels to violate the blockade as part of its blockade of Iran.
Iranian President Masoud Pezeshkian said the blockade of his country's ports was effectively an "extension of military operations" by Washington, despite the ongoing ceasefire.
"Continuation of this oppressive approach is intolerable," he added.
Oil prices struck a four-year high Thursday. International benchmark Brent crude soared more than seven percent to $126 a barrel before easing in afternoon trading in London.
UN chief Antonio Guterres said the closure of Hormuz was "strangling the global economy," and International Energy Agency chief Fatih Birol told a meeting at his Paris headquarters: "The world is facing the biggest energy crisis in history."
"The consequences of the Middle East crisis grow dramatically worse with each passing hour... Now is the time for dialogue, for solutions that pull us back from the brink," Guterres wrote on X on Friday.

US urges Israel-Lebanon talks

Violence has continued on the war's Lebanese front, with the US embassy in Lebanon on Thursday urging a meeting between Lebanese and Israeli leaders.
Israeli and Lebanese representatives have met twice in Washington in recent weeks -- the first such meetings in decades -- after the Iran-backed Hezbollah group drew Lebanon into the Middle East war on March 2.
Trump has said he hopes to host Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu "over the next couple of weeks."
Israeli strikes on southern Lebanon killed at least 15 people, the Lebanese health ministry said Thursday, while the Lebanese army said a separate strike on a home in the south killed a soldier and multiple members of his family.
burs/hol/tc

Israel

Iran war redraws sea routes with Africa as the pivot

BY ISABEL MALSANG AND LUCA MATTEUCCI

  • - The Saudi port of Jeddah on the Red Sea is becoming a new regional "hub", where ships from maritime giants MSC, CMA CGM, Maersk and Cosco arrive via the Suez Canal.
  • The closure of the Strait of Hormuz as well as tensions in the Red Sea are reshaping trade routes, with Africa becoming a hub of global container ship traffic, according to logistics and maritime sources.
  • - The Saudi port of Jeddah on the Red Sea is becoming a new regional "hub", where ships from maritime giants MSC, CMA CGM, Maersk and Cosco arrive via the Suez Canal.
The closure of the Strait of Hormuz as well as tensions in the Red Sea are reshaping trade routes, with Africa becoming a hub of global container ship traffic, according to logistics and maritime sources.
Over the past two months, the blockade has also pushed shipowners to find alternative land corridors to deliver foodstuffs and manufactured goods by truck, as they can no longer reach the Gulf's coastal countries by sea.

What are the alternative routes for delivering to Gulf countries?

The Saudi port of Jeddah on the Red Sea is becoming a new regional "hub", where ships from maritime giants MSC, CMA CGM, Maersk and Cosco arrive via the Suez Canal.
Cargo then leaves by truck along a desert highway to deliver to places such as Sharjah, Bahrain and Kuwait, which have not been served by sea for the past two months.
"The port of Jeddah is not at all sized to handle such import volumes and a port congestion situation is emerging," Arthur Barillas de The, cofounder of freight forwarder Ovrsea, told AFP.
According to data from Kpler Marine Traffic, 11 container ships were docked in Jeddah on Thursday, with nine waiting, and an average wait of 36 hours before unloading compared to 17 hours the previous week.
Shipowners have said they will use three ports outside the Strait of Hormuz -- Oman's Sohar, and the UAE ports of Khorfakkan and Fujairah, which are connected by land from the United Arab Emirates.
The port of Aqaba in Jordan serves as a base for sending goods to Baghdad and Basra in Iraq, while a Turkish corridor is also allowing goods into northern Iraq.

On international routes, why are Asia-Europe container ships avoiding the Suez Canal?

The situation started well before the war in Iran but is very much connected to the conflict.
Avoiding the Red Sea from the Bab al-Mandeb Strait to the Suez Canal dates back to November 19, 2023 and the first attack on a container ship by Iran-backed Houthi militias from the coast of Yemen, said CyclOpe, a specialist commodities publication.
The rerouting of ships has now become systematic, said Ronan Boudet, head of container intelligence at Kpler.
They skirt around Africa by following its eastern coast as far as the Cape of Good Hope in southern South Africa before heading back north towards Europe and the Mediterranean.
"With the current situation in the Gulf, we have put several more coins in the machine, it's not going to get better anytime soon," Edouard Louis-Dreyfus, chairman of French shipping giant Louis Dreyfus Armateurs, told AFP.
"Today, 70 percent of the freight traffic that went through the Red Sea in 2023 is being rerouted via the Cape of Good Hope," added Yves Guillo, a supply chain expert at Efeso, a management consultancy in Paris.
According to data from the International Monetary Fund's PortWatch platform based on ships' GPS signals, commercial vessel traffic via the Cape of Good Hope has more than tripled in three years, while traffic through the Bab al-Mandeb Strait has fallen by more than half.
Between March 1 and April 24 this year, an average of 20 commercial vessels went round the Cape of Good Hope every day compared with six in the same period in 2023.
By comparison, traffic in the Red Sea has plummeted: from 18 transits per day through Bab al-Mandeb between March and April 2023, the average fell to five three years later.

What are the consequences?

Transport times have lengthened between Asia and Europe by an average of two weeks and costs have risen because 30 to 50 percent more fuel is needed and 10 to 20 percent more ships to ensure the same frequency of service, said Guillo.
The average price to transport a standard 40-foot container on the main shipping routes increased by 14 percent in April compared to the same period last year, he added, citing changes in the Drewry freight index.
Large differences exist between routes: some African ports are seeing their activity increase. The Tanger Med Port Authority said it handled 11 million standard containers in 2025 -- up 8.4 percent.
But Egypt lost toll revenues from the Suez Canal, which make up a large part of its income. According to CyclOpe, in 2024 it lost $7 billion -- a drop of more than 60 percent compared with 2023.
im/phz/rh

trade

Blockbuster EU-Mercosur trade deal enters into force

  • The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
  • The European Union's mammoth trade deal with South American bloc Mercosur provisionally enters into force Friday, despite a pending court ruling on its legality.
  • The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
The European Union's mammoth trade deal with South American bloc Mercosur provisionally enters into force Friday, despite a pending court ruling on its legality.
The agreement to create one of the world's biggest free-trade zones was sealed in January after more than 25 years of intermittent negotiations.
The deal, which eliminates tariffs on more than 90 percent of trade between the two sides, has proven divisive in Europe, with France leading opposition over concerns some of its farmers will be left worse off.
But -- backed by a majority of EU countries -- Brussels ploughed ahead as it pushes to diversify trade in the face of challenges from the United States and China.
"A lot of work went into getting this landmark deal over the line; now it’s time to invest the same effort into making sure our citizens and businesses reap its benefits immediately," said European Commission chief Ursula von der Leyen.
"From day one, tariffs are reduced and new market opportunities are opened."
To mark the day, EU chiefs von der Leyen and Antonio Costa will hold online talks with leaders from the Mercosur nations, which include Argentina and Brazil.
Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers.
The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe.
The application of the deal comes after the European Parliament referred it to the EU's top court in January, instead of giving it the green light.
France unsuccessfully attempted to block the deal over worries for its farmers, who fear being undercut by cheaper goods from agricultural powerhouse Brazil and its neighbours.
The staunch French opposition to the pact caused a public rift with Germany, pitting the EU's two biggest countries against one another.
At the same time as it has looked to wrap up the Mercosur deal, the EU has also ploughed on with other agreements to get closer to other important markets such as India, Australia and Indonesia.
bur-del/raz/jhb

US

War in the Middle East: latest developments

  • Air defences were active for about 20 minutes and the city returned to a "normal situation", according to the news agencies.
  • The latest developments in the Middle East war: — Air defences activated in Iran: local media - Air defences were heard in the Iranian capital Tehran on Thursday night after they were activated to counter small aircraft and drones, Iran's Tasnim and Fars news agencies reported.
  • Air defences were active for about 20 minutes and the city returned to a "normal situation", according to the news agencies.
The latest developments in the Middle East war:
— Air defences activated in Iran: local media -
Air defences were heard in the Iranian capital Tehran on Thursday night after they were activated to counter small aircraft and drones, Iran's Tasnim and Fars news agencies reported.
Air defences were active for about 20 minutes and the city returned to a "normal situation", according to the news agencies.

US urges meeting of Israel, Lebanon leaders

The US embassy in Lebanon called for a meeting between Lebanese and Israeli leaders as the health ministry said Israeli strikes on the country's south killed at least 15 people despite an ongoing ceasefire.
"Lebanon stands at a crossroads. Its people have a historic opportunity to reclaim their country and shape their future as a truly sovereign, independent nation," the embassy said, adding that "the time for hesitation is over".
Trump has said he hopes to host Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu "over the next couple of weeks" as the two countries prepare for direct negotiations.

Trump mulls US troop cuts in Italy, Spain

President Donald Trump said Thursday he may pull US troops from Italy and Spain due to their opposition to the Iran war, a day after proposing a similar reduction in Germany.
"Yeah, probably, I probably will. Why shouldn't I?" Trump told reporters in the Oval Office when asked if he would consider reducing American troop numbers in Spain and Italy too.
"Italy has not been of any help to us and Spain has been horrible, absolutely horrible," Trump added.

Israel warns Iran

Israel's defence minister said his country may soon have to "act again" against Iran, to ensure the Islamic republic "does not once again become a threat to Israel".
"US President Donald Trump, in coordination with (Israeli) Prime Minister Benjamin Netanyahu, is leading the efforts to achieve the campaign's objectives, to ensure that Iran does not once again become a threat to Israel, the United States and the free world in the future," Israel Katz said, according to a statement from his office.

UN says Hormuz 'strangling' economy

UN chief Antonio Guterres sounded the alarm over the worsening global economic impacts of the Strait of Hormuz remaining effectively closed due to the Iran war.
The closure of the vital waterway is "strangling the global economy," the secretary-general warned in remarks to the media.

No US presence in strait: Iran

Iran's parliament speaker Mohammad Bagher Ghalibaf vowed his country's control over the strategic Strait of Hormuz would ensure a future without US presence in the area. 
"Today, by managing the Strait of Hormuz, Iran will provide itself and its neighbours with the precious blessing of a future free from American presence and interference," said Ghalibaf in a post on X to mark the national "Persian Gulf" day. 

Deadly Lebanon strike

Israeli strikes on three south Lebanon villages killed nine people, among them two children and five women, according to Lebanon's health ministry, nearly two weeks into a ceasefire between Israel and Iran-backed Hezbollah.

Lebanon slams Israel

Lebanese President Joseph Aoun condemned the "continuing Israeli violations" in south Lebanon, saying they were occurring "despite the ceasefire, as do demolitions of homes and places of worship, while the number of killed and wounded rises day after day".
"Pressure must be exerted on Israel to ensure it respects international laws and conventions and ceases targeting civilians, paramedics, civil defence, and humanitarian health and relief organisations," he added.

'Major energy crisis'

The world is facing a "major energy and economic challenge" as oil prices have soared in the wake of the war in the Middle East, said International Energy Agency chief Fatih Birol told a meeting on the energy transition in Paris.
With the world faced with "the biggest energy crisis in history", oil prices were "putting a lot of pressure in many countries", he added.

Oil at four-year high

Oil prices soared to four-year highs, with the US crude benchmark Brent for June delivery spiking more than seven percent to $126.41, while West Texas Intermediate was up 3.4 percent to $110.31, before later paring gains.

US-Germany tensions

Trump said the United States was considering reducing its troops in Germany over Chancellor Friedrich Merz's refusal to join Washington's war against Iran -- a force estimated between 35,000 and 50,000 troops.
The threats to slash US troop numbers echo Trump's longstanding criticisms of the NATO alliance, but Merz drew Trump's fresh ire earlier this week after saying Tehran was "humiliating" Washington at the negotiating table.

EU pushes back

Following Trump's post, the EU said Thursday that the deployment of US troops in Europe was in Washington's interest. 
"Our NATO allies are also increasing their defence spending at an unprecedented pace," European Union spokeswoman Anitta Hipper added.
burs/rh/phz

telecommunication

Apple earnings beat forecasts on iPhone 17 demand

BY GLENN CHAPMAN

  • During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook.
  • Apple said Thursday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.
  • During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook.
Apple said Thursday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.
The pioneering Silicon Valley company reported profit of $29.6 billion on revenue of $111.2 billion in the recently ended quarter.
"Today Apple is proud to report our best March quarter ever," chief executive Tim Cook said in an earnings call, noting revenue hit a record high for the three-month period.
Apple shares dipped slightly after the release but rose nearly four percent on optimism expressed on the earnings call.
During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook.
The earnings come as Apple prepares for a changing of the guard, with Cook to step down as chief executive late this year.
The future of Apple is being entrusted to a company veteran said to combine hardware brilliance with "the soul of an innovator."
John Ternus, 50, will take over as Apple chief executive in September, with Cook becoming executive chairman of the iPhone maker's board of directors.
"This is the most exciting time in my 25-year career at Apple," Ternus said on the earnings call, declining to disclose details of the company's roadmap.
"There are so many opportunities before us, and I couldn't be more optimistic about what's to come."
A big question will be whether Ternus has "the appetite for the kind of bold, occasionally uncomfortable decisions" that defining an Apple AI platform will require, said IDC analyst Francisco Jeronimo.
Legendary Apple co-founder Steve Jobs was known for brutal honesty and unyielding perfectionism that led to culture-changing devices.
Apple celebrates its 50th anniversary this year as artificial intelligence challenges the legendary company to prove it can deliver yet another must-have innovation.
The brand's hit products -- the Mac, iPhone, Apple Watch and iPad -- command a cult-like following, long after the company's humble beginnings on April 1, 1976 in Jobs's garage in Cupertino, California.
One concern haunting investors is that Apple appears to be easing into generative AI while rivals Google, Microsoft and OpenAI race ahead.
A promised upgrade to its Siri digital assistant was delayed in what analysts called a rare stumble for the company.
And rather than relying on its own engineers to overhaul Siri, Apple has turned to Google for AI capability.
But whether built in-house or outsourced, Apple's obsession with user privacy and its premium hardware could position it to drive widespread adoption of personalized AI -- and make it profitable, a goal that has proved elusive for much of the AI industry.
Apple delivered a "standout quarter" even though iPhone revenue came in just shy of expectations, according to Emarketer senior tech analyst Jacob Bourne.
"The question is whether incoming CEO John Ternus can translate this momentum into a credible AI strategy," Bourne said.
"Investors will be watching for clues about how Ternus plans to balance Apple's cautious AI posture with the pressure to define the next consumer device for the AI era."
gc/mlm

Global Edition

Oil slumps after hitting peak, US indices reach new records

  • Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the Middle East war.
  • Oil prices struck a four-year high Thursday on worries about a resumption of hostilities in the Middle East, before slumping to end the day.
  • Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the Middle East war.
Oil prices struck a four-year high Thursday on worries about a resumption of hostilities in the Middle East, before slumping to end the day.
But key US indices hit new records while European stock markets rose on positive earnings reports from some tech firms.
On Wall Street, the S&P 500 jumped 1.0 percent and the tech-heavy Nasdaq Composite Index added 0.9 percent, both reaching all-time highs.
This came on the back of optimism surrounding corporate earnings and still-resilient US economic growth.
"A lot of that comes down to corporate profits," said Angelo Kourkafas of Edward Jones.
He added that US GDP data "continues to defy fears of a near-term slowdown," helping to propel stocks to new highs.
The US Commerce Department estimated earlier Thursday that the world's biggest economy grew by an annual rate of 2.0 percent in the first three months of 2026.
A key factor was a surge in artificial intelligence investments, although consumer spending cooled.

Tech turbulence

International benchmark Brent crude soared to $126 a barrel, but closed 3.4 percent down eventually at $114.01.
Still, this is significantly higher than its price before US-Israel strikes targeting Iran since February 28.
Markets were jolted after President Donald Trump warned the US blockade of Iranian ports could last months, and by a report that he would be briefed on potential fresh military strikes.
"Fears about escalation in the conflict between the US and Iran fueled the initial move higher before the market calmed down," said XTB research director Kathleen Brooks.
The expiry of monthly contracts also added to volatility. 
The main European stock markets closed higher, taking their cue from largely positive earnings reports from US tech companies.
Shares in Google parent company Alphabet closed 10 percent up as investors lauded the company's success in making the pivot to artificial intelligence and solid revenue across its major divisions.
But shares in Meta slumped 8.6 percent amid concerns about its huge AI spending.
Apple reported after the closing bell, with earnings that beat forecasts on a boost from iPhone demand. The company's shares were up 4.7 percent in after-hours trading.
Central banks remained a focus on Thursday, a day after the Federal Reserve kept interest rates unchanged as the United States faces elevated inflation triggered by the Middle East war.
The European Central Bank and Bank of England also both held rates steady.
But the ECB warned that risks to eurozone growth and the inflation outlook have "intensified" because of the war and its impact on global energy supplies.
The Bank of England cut its forecast for UK growth.
Data released Thursday showed that growth in the eurozone economy slid to 0.1 percent in the first quarter.
The yen shot more than two percent higher against the dollar after Japan's finance minister hinted strongly that Tokyo was close to intervening in the market to support the currency.

Key figures at 2130 GMT

Brent North Sea Crude: DOWN 3.4 percent to $114.01 a barrel
West Texas Intermediate: DOWN 1.7 percent at $105.07 a barrel
New York - Dow: UP 1.6 percent at 49,652.14 points (close)
New York - S&P 500: UP 1.0 percent at 7,209.01 (close)
New York - Nasdaq Composite: UP 0.9 percent at 24,892.31 (close)
London - FTSE 100: UP 1.6 percent at 10,378.82 (close)
Paris - CAC 40: UP 0.5 percent at 8,114.84 (close)
Frankfurt - DAX: UP 1.4 percent at 24,140.59 (close)
Tokyo - Nikkei 225: DOWN 1.1 percent at 59,292.38 (close)
Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,776.53 (close)
Shanghai - Composite: UP 0.1 percent at 4,112.16 (close)
Euro/dollar: UP at $1.1731 from $1.1695 on Wednesday
Pound/dollar: UP at $1.3602 from $1.3489
Dollar/yen: DOWN at 156.60 yen from 160.23 yen
Euro/pound: DOWN at 86.25 pence from 86.71 pence
bur-bys/ksb

royals

Trump says lifting Scottish whisky tariffs to 'honor' King Charles

BY DANNY KEMP

  • Trump hailed Charles as the "greatest king" as he waved him and Camilla off at the White House.
  • US President Donald Trump said Thursday he was removing tariffs on Scottish whisky in honor of Britain's King Charles III and Queen Camilla as they wrapped up their state visit.
  • Trump hailed Charles as the "greatest king" as he waved him and Camilla off at the White House.
US President Donald Trump said Thursday he was removing tariffs on Scottish whisky in honor of Britain's King Charles III and Queen Camilla as they wrapped up their state visit.
Trump's announcement as the royal couple ended their four-day trip to the United States represents a major trade concession to key ally Britain even as the Iran war strains transatlantic relations.
Shortly after bidding the British royals goodbye at the White House, Trump posted that he was making the gesture "in Honor of the King and Queen of the United Kingdom."
"The King and Queen got me to do something that nobody else was able to do, without hardly even asking!" Trump said on his Truth Social network.
Scotch whisky from the UK has faced a 10-percent tariff during Trump's second presidency. But the rate was on course to jump later this year when the suspension of an earlier 25-percent tariff -- part of a previous trade truce -- expires.
In his post, Trump said he was "removing the tariffs and restrictions" on whisky but added that it related to Scotland's trade with the bourbon-making state of Kentucky, particularly on wooden barrels.
But US Trade Representative Jamieson Greer later appeared to confirm the announcement applied to the alcoholic drink itself.
"The United States will allow preferential duty access for whiskey produced in the United Kingdom," Greer said in a statement.
He added that move was part of a broader trade deal announced by the United States and Britain in an Oval Office appearance by Trump last year.
Almost from the moment that Trump returned to power last year, Britain has been trying to make the case for whisky to be exempted from tariffs.
During Trump's first term, his tariffs in 2019 against the European Union -- which then included Britain -- also targeted the UK's whisky industry.
The United States remains the primary export market for Scotch whisky, accounting for $1.2 billion per year.
But the royal charm offensive by King Charles appeared to have paid off.
Trump hailed Charles as the "greatest king" as he waved him and Camilla off at the White House.
The visit was officially meant to celebrate transatlantic ties as the United States marks its 250th anniversary of independence from Britain, but much of Charles's time has been spent smoothing over tensions over Iran.
Trump has bitterly criticized British Prime Minister Keir Starmer over his opposition to the US-Israeli war on Iran.
dk-bys/msp

wage

Venezuela leader hikes minimum wage package by 26%

  • The increase announced Monday by Rodriguez is to the "comprehensive minimum income," a package composed of a very low wage ($0.30 a month) -- roughly 330 times lower than the UN poverty line of $3 a day -- topped with a food bonus of $40 and an "economic war" bonus of $150 for a total of $190.
  • Venezuela's acting president Delcy Rodriguez on Thursday hiked the minimum wage package by 26.3 percent, to $240, in an attempt to quell growing discontent over difficult living conditions.
  • The increase announced Monday by Rodriguez is to the "comprehensive minimum income," a package composed of a very low wage ($0.30 a month) -- roughly 330 times lower than the UN poverty line of $3 a day -- topped with a food bonus of $40 and an "economic war" bonus of $150 for a total of $190.
Venezuela's acting president Delcy Rodriguez on Thursday hiked the minimum wage package by 26.3 percent, to $240, in an attempt to quell growing discontent over difficult living conditions.
Addressing thousands of government supporters in Caracas on the eve of International Workers' Day, Rodriguez, who succeeded deposed leftist leader Nicolas Maduro, said it was "the most significant increase in recent years."
She did not give a breakdown of the increase, leaving it unclear who would benefit.
Venezuelans have in recent weeks repeatedly demonstrated for an increase to wages so low that many struggle to survive in the face of annual inflation of over 600 percent.
On April 9, police clashed with thousands of protesters who marched towards the presidential palace in Caracas to demand salary and pension increases.
The increase announced Monday by Rodriguez is to the "comprehensive minimum income," a package composed of a very low wage ($0.30 a month) -- roughly 330 times lower than the UN poverty line of $3 a day -- topped with a food bonus of $40 and an "economic war" bonus of $150 for a total of $190.
Rodriguez also announced a $70 increase to the state pension, which she said represented an increase of 40 percent.
She acknowledged that it was still "not enough" and promised a "special plan for our grandfathers and grandmothers."
The announcements were met with applause and cries of joy from the crowd in Caracas.
But the increases still leave most workers far short of the $677 that a family of five needs to cover its basic food needs, according to Venezuelan analysts.
Rodriguez has insisted on the need for "responsible" wage increases that do not cause inflation to further spiral.
Yeisi Romero, a 44-year-old local government worker attending the rally, said the increases fell short of his expectations but that "things are getting better."
pgf/cb/jgc

telecommunication

Apple earnings beat forecasts on iPhone 17 demand

  • During the quarter, iPhone sales grew double digits in every country where it does business, and its services unit reached an all-time record high, according to Cook.
  • Apple on Thursday said it had its best start to the year ever when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.
  • During the quarter, iPhone sales grew double digits in every country where it does business, and its services unit reached an all-time record high, according to Cook.
Apple on Thursday said it had its best start to the year ever when it came to earnings, with iPhone demand and digital service sales helping it beat expectations.
Apple reported profit of $29.6 billion on revenue of $111.2 billion in the recently ended quarter.
"Today Apple is proud to report our best March quarter ever," chief executive Tim Cook said in an earnings release, noting revenue hit a record high for the quarter ending in March.
Apple shares slipped slightly, however, as investors mulled its future in a tech world shaken up by artificial intelligence.
During the quarter, iPhone sales grew double digits in every country where it does business, and its services unit reached an all-time record high, according to Cook.
The earnings come as Apple prepares for a changing of the guard, with Cook to step down as chief executive late this year.
The future of Apple is being entrusted to a company veteran said to combine hardware brilliance with "the soul of an innovator."
John Ternus, 50, will take over as Apple chief executive in September, with Cook becoming executive chairman of the iPhone maker's board of directors.
A big question will be whether Ternus has "the appetite for the kind of bold, occasionally uncomfortable decisions" that defining an Apple AI platform will require.
Legendary Apple co-founder Steve Jobs was known for brutal honesty and unyielding perfectionism that led to culture-changing devices.
Apple celebrates its 50th anniversary as AI challenges the Silicon Valley legend to prove it can deliver yet another must-have innovation.
Apple's hit products — the Mac, the iPhone, the Apple Watch and the iPad — command a cult-like following, long after the company's humble beginnings on April 1, 1976, in Jobs' Cupertino, California garage.
A concern haunting investors is that Apple appears to be easing into generative AI while rivals Google, Microsoft and OpenAI race ahead.
A promised upgrade to its Siri digital assistant was delayed in what analysts called a rare stumble for the company.
And rather than relying on its own engineers to overhaul Siri, Apple has turned to Google for AI capability.
But whether built in-house or outsourced, Apple's obsession with user privacy and its premium hardware could position it to drive widespread adoption of personalized AI -- and make it profitable, a goal that has proved elusive for much of the AI industry.
gc/msp

aviation

Bangladesh signs biggest-ever plane deal for 14 Boeings

  • Bangladesh has a reported 19 aircraft in its current fleet, an estimated 14 of them from Boeing.
  • Bangladesh on Thursday signed a deal with US aircraft manufacturer Boeing to buy 14 planes for its national carrier Biman Bangladesh Airlines, the two sides announced -- the airline's biggest-ever order, in a deal valued at $3.7 billion.
  • Bangladesh has a reported 19 aircraft in its current fleet, an estimated 14 of them from Boeing.
Bangladesh on Thursday signed a deal with US aircraft manufacturer Boeing to buy 14 planes for its national carrier Biman Bangladesh Airlines, the two sides announced -- the airline's biggest-ever order, in a deal valued at $3.7 billion.
Dhaka's state-run BSS news agency called it the "biggest modern fleet expansion" for the national airline, under an agreement hammered out last year as part of a tariff deal with the United States.
The deal calls for the delivery over the next decade of eight 787-10 Dreamliners, two 787-9 Dreamliners and four single-aisle 737-8 MAX jets, the company's "largest-ever order", the two sides said in a joint statement.
The 787-10s will be used to serve destinations in the Middle East, while the 787-9s will be used for long-haul flights to Europe and North America.
"The new fuel-efficient, technologically advanced aircraft will modernise Biman's fleet, sharpen operational performance, and extend its international route network," Biman CEO Kaizer Sohel Ahmed was quoted as saying.
The contract was signed at a formal ceremony in Dhaka.
Bangladesh has a reported 19 aircraft in its current fleet, an estimated 14 of them from Boeing.
Biman currently serves 22 international destinations from Dhaka, with its longest flight linking the Bangladeshi capital to Toronto via Istanbul.
The purchase was agreed in August 2025 by the caretaker government which ran the South Asian nation of 170 million people after a 2024 revolution, until a new government was elected in February.
Bangladesh, the world's second-biggest garment manufacturer, struck a trade deal with the United States to scale back President Donald Trump's punishing tariffs. 
The United States represents 20 percent of Bangladesh's ready-made garments exports.
Dhaka proposed buying Boeing planes and boosting imports of US wheat, cotton and oil to help narrow its trade deficit, which Trump used as justification for imposing painful levies.
But an initial proposed 25 aircraft was slashed to 14.
The deal sparked frustration in Europe, which had been in discussion to sell Airbus planes to Bangladesh.
Trump threatened Bangladesh with 37 percent tariffs, more than double the then 16 percent on cotton products. That was scaled back to 20 percent after the deal.
Textile and garment production accounts for about 80 percent of exports in Bangladesh and the industry has been rebuilding after the deadly 2024 unrest that toppled the government.
sa/pjm/elm-sst/jgc