technology

Xi says China must 'overcome' AI chip challenges

  • In this context, Xi called for "continuing to strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system," according to Xinhua news agency.
  • President Xi Jinping said China must "overcome" the challenges of developing core AI technologies including high-end chips, state media reported Saturday, as Beijing seeks to become a world leader in the rapidly developing industry.
  • In this context, Xi called for "continuing to strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system," according to Xinhua news agency.
President Xi Jinping said China must "overcome" the challenges of developing core AI technologies including high-end chips, state media reported Saturday, as Beijing seeks to become a world leader in the rapidly developing industry.
China aims to dominate the artificial intelligence sector, a goal complicated by the trade standoff with Washington that could further deprive Chinese industry of certain key technologies.
The world's two leading economies are locked in an escalating tit-for-tat trade battle triggered by US President Donald Trump's new levies on Chinese goods, which have reached 145 percent on many products. Beijing has responded with new 125 percent duties on imports from the United States.
In this context, Xi called for "continuing to strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system," according to Xinhua news agency.
Xi made the remarks during a quarterly meeting of the Politburo, the inner circle of China's top leaders.
Since the launch of ChatGPT in November 2022, generative AI models have proliferated in the United States and China.
Chinese startup DeepSeek shook up the AI world in January with its R1 chatbot, matching the performance of its US competitors at a lower cost. 

'Promote self-reliance'

But Xi acknowledged Friday that the Chinese industry still had "gaps". It was "essential" to "promote self-reliance" in the field, he added.
Political support was essential to achieve this, Xi stressed, citing in particular "a combination of policies such as intellectual property rights, taxation, public procurement, and the opening up of infrastructure".
Under Trump and his predecessor Joe Biden, Washington has banned or restricted exports to China of advanced processors which are known for helping develop high-end AI models.
The Trump administration has imposed new licensing requirements to export to China some chips used in AI, which US firms Nvidia and AMD have said will hit them hard. 
Nvidia CEO Jensen Huang visited Beijing this month and said he was "willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation", Xinhua reported.
Washington's controls are officially imposed in order to prevent China developing military technologies, but they also allow the United States to maintain its competitive edge.
China's AI ambitions have prompted concern in numerous countries worried about the handling of personal data, particularly the possibility that such information could be transferred to Chinese authorities.
aas/rsc/mtp

Kashmir

India and Pakistan's Kashmir fallout hits economy too

BY ANUJ SRIVAS

  • - Third country trade - But analysts say Pakistan's decision to halt trade is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations over decades have prevented close economic ties.
  • Rapidly deteriorating relations between India and Pakistan over a deadly shooting in Kashmir are starting to have small but prickly economic consequences for both nations.
  • - Third country trade - But analysts say Pakistan's decision to halt trade is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations over decades have prevented close economic ties.
Rapidly deteriorating relations between India and Pakistan over a deadly shooting in Kashmir are starting to have small but prickly economic consequences for both nations.
The killing of 26 men on Tuesday in Indian-administered Kashmir, the deadliest attack on civilians in the Himalayan region in a quarter of a century, triggered public outrage across the world's most populous country.
India has unveiled a series of mostly symbolic diplomatic measures against Pakistan, after accusing its regional rival of supporting "cross-border terrorism".
Islamabad, which rejected the allegations, responded Thursday with similar tit-for-tat measures -- but upped the ante by halting trade with New Delhi and closing its airspace to Indian airlines. 
Experts say that while the retaliatory moves will not have an immediate or far-reaching impact, it will likely result in longer and more expensive flights for Indians, while forcing Pakistan to increase pharmaceutical imports from other countries.
Pakistan's decision to close its airspace to carriers from its neighbour will see journeys from India to Central Asia, Europe and North America take up to two hours longer.
"We are currently looking at, on average, an extra 60 minutes to 120 minutes for flights depending on where they go," Sanjay Lazar, aviation expert and CEO of Avialaz Consultants, told AFP. 

'Sabre rattle'

Pakistan's move is expected to hurt Air India, owned by Indian conglomerate Tata Group, the most.
Air India said that some flights to North America, Europe and the Middle East will have to take an "alternative extended route".
And the extra flying time may eventually make flights more expensive.
"There is extra fuel burn, because you're taking a more circuitous route," Lazar said.
"And if you add an extra stop on the route, then you incur additional crew and landing costs too."
Airfares could rise if restrictions continue beyond six months, though airlines are unlikely to hike up fares immediately to avoid the risk of "not appearing patriotic enough", he added.
Mark D Martin, of Martin Consulting, said ticket prices could rise by more than 35 percent to Middle East destinations and by over 45 percent to Europe.
"It's always the airline business that gets impacted when India and Pakistan spar and sabre rattle," Martin said.
"Let's hope better sense prevails, and this situation deescalates, as this will have an earning impact on airline financials."
Indian government data shows that when Islamabad closed its airspace in 2019 -- after New Delhi hit it with airstrikes in response to an attack in Kashmir -- domestic airlines saw a financial cost of nearly 5.5 billion rupees ($64.3 million) during the nearly five-month-long shutdown.

Third country trade

But analysts say Pakistan's decision to halt trade is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations over decades have prevented close economic ties.
India exported less than $450 million in goods to Pakistan between April 2024 and January 2025, a tiny fraction of its overall shipments.
Key items included pharmaceutical products worth over $110 million, and sugar worth over $85 million.
"Imports from Pakistan were negligible -- just $0.42 million, limited to niche items like figs, basil and rosemary herbs," Ajay Srivastava of Global Trade Research Initiative, a New Delhi-based think tank, said in a briefing note.
But Islamabad also said Thursday it had suspended "all trade with India" including "to and from any third country through Pakistan".
It is not immediately clear how this would impact indirect trade through countries such as the United Arab Emirates or Singapore. 
Indirect trade is far higher, totalling around $10 billion, according to Srivastava.
"Informal sources say that Pakistan imports several Indian products this way, including chemicals, pharmaceuticals, cotton and yarn," he said.
"On the other hand, India may receive Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan, also routed through third countries."
asv/pjm/dhw/tc

jobs

Developing countries should fast-track US trade deals: World Bank president

BY DANIEL AVIS AND ERWAN LUCAS

  • The Bank has been advising developing countries to get a deal done quickly with the United States, and to then focus attention on cutting trade barriers and boosting regional flows of goods, Banga said. 
  • Developing countries should strike swift trade deals with the United States at the "earliest possible" opportunity, the president of the World Bank told AFP Friday, after a busy week with global financial leaders in Washington. 
  • The Bank has been advising developing countries to get a deal done quickly with the United States, and to then focus attention on cutting trade barriers and boosting regional flows of goods, Banga said. 
Developing countries should strike swift trade deals with the United States at the "earliest possible" opportunity, the president of the World Bank told AFP Friday, after a busy week with global financial leaders in Washington. 
Ajay Banga was interviewed by AFP at the World Bank and International Monetary Fund's Spring Meetings, which have been held this year under a cloud of uncertainty about President Donald Trump's stop-start tariff rollout.
The Bank has been advising developing countries to get a deal done quickly with the United States, and to then focus attention on cutting trade barriers and boosting regional flows of goods, Banga said. 
"You need to negotiate trade systems with the US at the earliest possible (opportunity)," he said. "If you delay, it hurts everyone."
Trump's tariffs have roiled financial markets, sent volatility surging and spooked investors and consumers. 
Since returning to office in January, the US leader has imposed a "baseline" 10 percent tariff on most countries, with much higher duties on China, and 25 percent sector-specific levies on areas including steel, aluminum, and automobiles not manufactured in the United States. 
He also introduced much higher tariffs on dozens of countries -- which have since been temporarily paused -- accusing them of having an unfair trade balance with the United States. 

Bessent 'not wrong' on China

Banga also addressed the criticism leveled by US Treasury Secretary Scott Bessent at the Bank earlier this week.
Bessent criticized China's "absurd" developing country status and called on Banga and IMF Managing Director Kristalina Georgieva to "earn the confidence of the administration." 
"I don't think he's wrong," Banga said of Bessent's comments on China. 
"A country that is the size of China and the capability of China, at some point, should no longer be taking money from IBRD," he said, referring to the International Bank for Reconstruction and Development -- an arm of the World Bank that lends largely to middle-income countries. 
Such a move would require the support of the World Bank's executive board, which is made up by member states. 
China, Banga said, borrowed around $750 million from the IBRD last year, while paying billions of dollars to the institution in repayments and donations. 
"My view is, I've brought it down to 750 (million), and I'm trying to figure out a way to deal with China to bring it down further," he said. "I want to get it done. And that's what I'm talking to the Chinese about." 
Banga said the Trump administration's criticisms of the World Bank, which included "expansive policy overreach," were not unusual, citing newly elected governments in countries including France, Japan and Korea.
"I keep telling people this is a perfectly constructive request, to say, tell me and show me that you guys are the kind of people that advance the interests of my taxpayer, of my country," he said.
"I take it in that spirit," he said. "There's nothing wrong with it."

Energy at 'lowest possible cost'

Since taking the helm of the Washington-based development lender in 2023, Banga has pushed to streamline operations and encourage private sector participation, while focusing on job creation and electricity connectivity. 
Among the Bank's current priorities is a push with the African Development Bank to connect 300 million people in sub-Saharan Africa to electricity by 2030 -- a process that will require a vast amount of new energy to be brought online.
"You should try and get (energy) in the best, accessible way and the lowest possible cost," Banga said, suggesting that in addition to renewable power, nuclear and gas could help provide a base load -- two energy sources the World Bank is currently hesitant to finance.
The Bank's executive board is set to discuss its energy strategy in June, Banga said, adding that funding for both nuclear and gas would likely be on the agenda. 
Banga said the Bank is also pushing to encourage private sector job creation in developing countries -- beyond simply outsourcing jobs from advanced economies.
"Because then you end up with challenges in (advanced economies), and you can see that people are speaking about them with their votes," he added. 
da/acb

tariff

Trump tariff promises get a reality check

BY BEIYI SEOW

  • Participants likely left the spring meetings with "a lot of anxiety about what these meetings will be like when they reconvene in six months, both for the state of the global economy and for individual countries," he told AFP. - 'Notoriously tedious' - "No deals have been announced but that's not surprising.
  • A gathering of global economic leaders in Washington wraps up Saturday with tariff talks between the United States and partners still unresolved -- and anxiety building over the state of the global economy.
  • Participants likely left the spring meetings with "a lot of anxiety about what these meetings will be like when they reconvene in six months, both for the state of the global economy and for individual countries," he told AFP. - 'Notoriously tedious' - "No deals have been announced but that's not surprising.
A gathering of global economic leaders in Washington wraps up Saturday with tariff talks between the United States and partners still unresolved -- and anxiety building over the state of the global economy.
The International Monetary Fund and World Bank's spring meetings provided an important opportunity for countries to discuss trade at the sidelines, speaking with President Donald Trump's new administration.
But despite US officials touting progress on tariff talks, analysts tell AFP that the hard work to reaching deals lies ahead.
Since returning to the presidency in January, Trump has slapped 10 percent tariffs on most US trading partners and a separate 145 percent levy on many products from China.
Dozens of countries face a 90-day deadline expiring in July to strike an agreement with Washington and avoid higher, country-specific rates.
But despite Trump saying that there are many deals on the table, details have been scant.
"Coming out, I think we have more confusion, not more clarity, in terms of what the administration wants for negotiations," said Josh Lipsky, international economics chair at the Atlantic Council.
Participants likely left the spring meetings with "a lot of anxiety about what these meetings will be like when they reconvene in six months, both for the state of the global economy and for individual countries," he told AFP.

'Notoriously tedious'

"No deals have been announced but that's not surprising. Trade agreements take time to negotiate," said Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator.
While the uptick in negotiating activity is a "positive sign," she added, "holding meetings is a far step from announcing deals."
For now, Washington has prioritized discussions with key allies like Japan, South Korea and Switzerland -- in line with the Trump administration's comments that it would place more focus on about 15 important trading relationships.
Barath Harithas, a senior fellow at the Center for Strategic and International Studies (CSIS), said the emphasis on 15 or so partners is "likely pragmatic."
"Comprehensive tariff negotiations are notoriously tedious, typically spanning years rather than months, and cannot realistically be compressed into a 90-day ultimatum period," he added. 
US officials have met with counterparts from countries like South Korea and Japan this week.
But negotiations with Thailand, although initially scheduled, have been postponed as Washington sought further review on crucial issues, Harithas said.
EU economy commissioner Valdis Dombrovskis told reporters Friday that there remains "a lot of work ahead" to reach a deal with Washington.
Underscoring the differences between both sides, Dombrovskis added that tariffs are not a solution to address underlying trade imbalances -- a goal of the Trump administration as it rolled out various levies.
Earlier Friday, Trump also cast doubt on a further tariff pause when speaking to reporters.

'Frustration'

Lipsky of the Atlantic Council said it is seen as "unrealistic" for a series of deals to be struck by July, even if some discussions may bear fruit.
US Treasury Secretary Scott Bessent maintained Wednesday that Washington was close to a pact with India and making progress with other partners.
But he added: "A satisfactory arrangement does not necessarily mean the actual trade document, it means that we have reached agreement in principle."
With current economic worries sparked by Trump's policy decisions, Lipsky said there has been disappointment with current conditions.
"The frustration that I've heard this week is that this was unnecessary," Lipsky added.
And tensions between Washington and Beijing are "not headed towards any immediate resolution," he said.
While Trump said in a Time magazine interview that Xi has called him, Beijing previously disputed that tariff talks were ongoing.
Countries are now resigned to the idea that high US-China tariffs are here to stay, at least in the near future, he added.
A European official told AFP there have been two negotiation channels that are not always in agreement -- with Bessent on one hand and US Commerce Secretary Howard Lutnick on the other.
"The only thing I'm fairly sure of," the official said, "is that in the end, the decision is made by President Trump."
bys-myl/st

Global Edition

US stocks extend rally as market eyes busy calendar next week

  • But US stocks recovered from early losses and two of the three major indices posted solid gains, with the S&P 500 finishing up 0.7 percent.
  • Wall Street stocks overcame early weakness Friday to push higher for a fourth straight positive session, following gains in most overseas equity markets.
  • But US stocks recovered from early losses and two of the three major indices posted solid gains, with the S&P 500 finishing up 0.7 percent.
Wall Street stocks overcame early weakness Friday to push higher for a fourth straight positive session, following gains in most overseas equity markets.
The upbeat session reflected a continuation of the market's constructive trend after President Donald Trump said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell.
The administration has also adopted a more conciliatory tone on trade talks with China, although the state of play between Washington and Beijing remains murky.
Beijing has said there are no active negotiations with the United States, while Trump claimed to have spoken with Chinese leader Xi Jinping.
TIME Magazine wrote Friday that Trump said in an interview he was still convinced tariffs were necessary and that he would "consider it a 'total victory' if the US still has tariffs as high as 50 percent on foreign imports a year from now."
City Index and FOREX.com analyst Fawad Razaqzada called the comments "an aggressive reminder that underscores his protectionist trade agenda, even if he has promised to reduce tariffs on Beijing significantly."
He added that the comments "probably caused the mild selling" trend.
But US stocks recovered from early losses and two of the three major indices posted solid gains, with the S&P 500 finishing up 0.7 percent.
Europe's main markets ended higher as did most Asian markets.
Sentiment was boosted by reports on Friday that China may exempt some US goods from its hefty retaliatory tariffs. 
"While tariffs are unlikely to go away completely, any easing of the trade war will be lapped up by financial markets," said Russ Mould, investment director at AJ Bell.
Equity markets "are also benefitting from strong earnings reports," said Kathleen Brooks, research director at trading group XTB.
"Google reported earnings that smashed expectations last night," she added.
Google-parent Alphabet posted earnings that exceeded expectations for the recently ended quarter, driven by its cloud computing and artificial intelligence operations.
In Asia, Tokyo jumped almost two percent by the close following Japanese media reports that a second round of trade talks in Washington was set for May 1.
The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.
Chinese stock indices ended the week fairly steady, as China's top leaders urged more support for the economy and opposed "unilateral bullying" in global trade, according to a readout of a meeting published by state media Friday.
Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade "understanding" between South Korea and the United States could be reached by next week.
Analysts are beginning to look ahead to next week's heavy calendar of earnings and US economic data.
The "soft data has been showing very negative signs for the economy, but it hasn't really gone through to the hard data," said Victoria Fernandez of Crossmark Global Investments.
Reports next week on the labor market and other key indicators will show if "we are truly weakening or not," Fernandez said.

Key figures at 2030 GMT

New York - Dow: UP 0.1 percent at 40,113.50 (close)
New York - S&P 500: UP 0.7 percent at 5,525.21 (close)
New York - Nasdaq Composite: UP 1.3 percent at 17,382.94 (close)
London - FTSE 100: UP 0.1 percent at 8,415.25 (close)
Paris - CAC 40: UP 0.5 percent at 7,536.26 (close)
Frankfurt - DAX: UP 0.8 percent at 22,242.45 (close)
Tokyo - Nikkei 225: UP 1.9 percent at 35,705.74 (close)
Hong Kong - Hang Seng Index: UP 0.3 percent at 21,980.74 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,295.06 (close)
Euro/dollar: DOWN at $1.1359 from $1.1390 on Thursday
Pound/dollar: DOWN at $1.3314 from $1.3342 
Dollar/yen: UP at 143.69 yen from 142.63 yen
Euro/pound: DOWN at 85.31 pence from 85.37 pence
West Texas Intermediate: UP 0.4 percent at $63.02 per barrel
Brent North Sea Crude: UP 0.5 percent at $66.87 per barrel
burs-jmb/des

tariff

IMF chief hails 'constructive' Spring Meetings held under tariff uncertainty

  • "But at the same time, they have also exhibited a remarkably constructive spirit in these meetings, coming together, showing willingness to take on the challenges facing the global economy."
  • The head of the International Monetary Fund said Friday that financial leaders meeting in Washington this week had shown a "remarkably constructive spirit," despite the uncertainty from Donald Trump's tariff plans.
  • "But at the same time, they have also exhibited a remarkably constructive spirit in these meetings, coming together, showing willingness to take on the challenges facing the global economy."
The head of the International Monetary Fund said Friday that financial leaders meeting in Washington this week had shown a "remarkably constructive spirit," despite the uncertainty from Donald Trump's tariff plans.
The US president's stop-start rollout of levies against top trading partners since his return to office in January has confused businesses and unnerved investors, sending market volatility to levels not seen since the Covid-19 pandemic. 
Taking stock of this week's World Bank and IMF Spring Meetings in Washington, at which US Treasury Secretary Scott Bessent represented the Trump administration, IMF Managing Director Georgieva said the world's finance ministers and central bank governors had recognized the importance of reducing uncertainties. 
"Understandably, ministers and governors are concerned," she told reporters at the IMF's headquarters near the White House.
"But at the same time, they have also exhibited a remarkably constructive spirit in these meetings, coming together, showing willingness to take on the challenges facing the global economy."
Georgieva said political leaders had recognized that the trade uncertainty was a moment "to put their own houses in order" by tackling delayed reforms, strengthening resilience, boosting productivity and improving growth prospects. 
"We are still having quite a challenging time," she said. 
But "when people are in the same room, the abstract policies become more human," she added. "And that makes the conversation different."
da/bgs

chemicals

Bayer says legal woes could force it to pull weedkiller

  • Shareholders on Friday approved a potential capital increase through the issuance of new stock requested by management to cover possible legal costs related to Roundup.
  • German pharmaceuticals and agrichemicals firm Bayer said Friday it could be forced to pull its Roundup weedkiller from the market if it is not able to contain simmering legal troubles.
  • Shareholders on Friday approved a potential capital increase through the issuance of new stock requested by management to cover possible legal costs related to Roundup.
German pharmaceuticals and agrichemicals firm Bayer said Friday it could be forced to pull its Roundup weedkiller from the market if it is not able to contain simmering legal troubles.
"We're nearing a point where the litigation industry could force us to even stop selling this vital product," CEO Bill Anderson said at Bayer's annual general meeting.
The group had "no specific plans" to discontinue sales in the United States, Anderson said in a question-and-answer session.
Bayer however "cannot continue to market the product in the way we have in the past... in a financially sustainable way because of the lawsuits", he added.
In Anderson's opinion it was "very important for US farmers, US consumers... to make changes in the law". 
The stakes were also "really high" for Bayer, which has seen its share price tumble in the wake of its acquisition of Roundup-maker Monsanto in 2018.
"The status quo is not an option," Anderson said.
Bayer has long battled to bring the legal troubles under control and has said it aims to significantly contain litigation "by the end of 2026".
Already, the Leverkusen-based group has spent over $10 billion (8.8 billion euros) to settle cases in the United States alleging that Bayer failed to disclose Roundup's health risks.

US court battle

Claimants say that glyphosate, the active ingredient in Roundup, causes blood cancers, while Bayer says scientific studies and regulatory approvals show that the weedkiller is safe.
Bayer this month made another request for the US Supreme Court to intervene in the case, its third such attempt and the first since Anderson took the reins in 2023. 
After being twice rebuffed by the court, Bayer is hopeful of more success following rulings by federal appellate courts, which the German group said support its case.
Shareholders on Friday approved a potential capital increase through the issuance of new stock requested by management to cover possible legal costs related to Roundup.
Speaking at the meeting, Anderson said he would move forward with the capital increase "in connection with measures to substantially contain litigation in the United States –- and only after first considering other financing options".
Shares in Bayer gained 2.3 percent on the Frankfurt Stock Exchange on Friday, among the better performers in Germany's blue-chip DAX index.
bur-sea/fec/rl

automobile

German prosecutors seek jail terms in VW 'dieselgate' trial

  • The defendants include Heinz-Jakob Neusser, former technical director at Volkswagen, and three others only named by prosecutors as Jens H., Hanno J. and Thorsten D. The former managers at the German auto giant held a variety of posts in product development, including emissions management.
  • German prosecutors asked for jail sentences Friday in the trial of four former Volkswagen managers accused of fraud in the "dieselgate" emissions-cheating scandal.
  • The defendants include Heinz-Jakob Neusser, former technical director at Volkswagen, and three others only named by prosecutors as Jens H., Hanno J. and Thorsten D. The former managers at the German auto giant held a variety of posts in product development, including emissions management.
German prosecutors asked for jail sentences Friday in the trial of four former Volkswagen managers accused of fraud in the "dieselgate" emissions-cheating scandal.
The defendants allegedly organised commercial fraud and tax evasion in the scandal which has rocked the global car industry since September 2015, when Volkswagen admitted tampering with millions of diesel vehicles to dupe pollution tests.
The defendants include Heinz-Jakob Neusser, former technical director at Volkswagen, and three others only named by prosecutors as Jens H., Hanno J. and Thorsten D.
The former managers at the German auto giant held a variety of posts in product development, including emissions management.
Prosecutors requested jail sentences of three years for two of the accused and four years for another, a spokeswoman for the regional court in Brunswick said in a statement. 
A two-year suspended sentence was sought for the final defendant. 
The spokeswoman did not specify which defendant prosecutors had targeted with which sentence. 
The quartet, who have been on trial since 2021, were initially set to have their cases heard alongside former Volkswagen CEO Martin Winterkorn.
But the court decided to split off proceedings against Winterkorn, who was unable to appear because of ill health.
The former auto executive finally went on trial in September, before the court again suspended proceedings in October, while he was not fit to take the stand.
The highest-ranking former executive to have been convicted in the scandal so far is ex-Audi CEO Rupert Stadler, who was fined and given a suspended sentence in 2023 after admitting to fraud by negligence.
The dieselgate affair had already cost VW more than 30 billion euros ($34 billion) in fines, legal costs and compensation to car owners, mainly in the United States.
bur-sea/fz/rl

trade

EU, US should de-escalate and negotiate trade deal: IMF Europe director

  • "An effort needs to be made to de-escalate and to negotiate a deal," he said, adding he hoped the negotiations would be successful. 
  • The United States and European Union need to "de-escalate" and "negotiate a deal" to help boost lackluster growth on the continent, the International Monetary Fund's Europe director said Friday.
  • "An effort needs to be made to de-escalate and to negotiate a deal," he said, adding he hoped the negotiations would be successful. 
The United States and European Union need to "de-escalate" and "negotiate a deal" to help boost lackluster growth on the continent, the International Monetary Fund's Europe director said Friday.
"In our discussions with European leaders, I don't sense any difference of views with regard to the importance of that relationship," IMF Europe Director Alfred Kammer told reporters in Washington. 
"An effort needs to be made to de-escalate and to negotiate a deal," he said, adding he hoped the negotiations would be successful. 
Kammer's comments came during a press briefing as part of the World Bank and IMF's Spring Meetings in Washington which has brought the world's finance ministers and central bankers together at the same time as many countries look to rapidly renegotiate their trading relationship with the United States.
Earlier this month, US President Donald Trump slapped steep tariffs on many countries -- including a new 20 percent rate on the European Union -- only to then temporarily roll back most tariffs to a "baseline" 10 percent rate a few days later.
Alongside these measures, the administration has also introduced sector-specific levies in areas including automobiles, steel and aluminum. 
The White House has given those countries and blocs facing higher tariffs a 90-day period ending in July to negotiate a deal and bring down trade barriers with the United States.
It is the EU, and not member states, who have been tasked with negotiating the deal, but European finance ministers in Washington have still weighed in with their views of the state of negotiations. 
"We're not going to hide the fact that we're still a long way from an agreement," French economy minister Eric Lombard said in an interview on Thursday. 
At an IMF event later in the day, German Finance Minister Joerg Kukies struck a more hopeful note that a deal could be done in time. 
"We're optimistic that it will work, the sooner, the better," he said.
Kammer also addressed the question of European growth, which has lagged behind the United States in recent years. 
"There is a narrative out there that Europe is not competitive, and that narrative is actually wrong," he said. 
"Europe is competitive. Europe has a current account surplus versus the rest of the world," he said. "What we are arguing is that Europe has a gap in its productivity and, in particular, a gap in labor productivity."
da/md

court

Lego block: Dutch court rules mould maker can't use toy trademark

  • On Friday, "the judge ruled that Betonblock is taking unfair advantage of the use of the word 'Lego'," The Hague District Court said.
  • A Dutch court Friday ordered a local concrete block mould manufacturer to scrap the word "Lego" on its website, saying using one of the world's most famous trademarks gave it an "unfair advantage".
  • On Friday, "the judge ruled that Betonblock is taking unfair advantage of the use of the word 'Lego'," The Hague District Court said.
A Dutch court Friday ordered a local concrete block mould manufacturer to scrap the word "Lego" on its website, saying using one of the world's most famous trademarks gave it an "unfair advantage".
The top global toy maker in February dragged Betonblock BV, based in the northeast Dutch city of Heerhugowaard, to court for trademark infringement, saying it used the word "Lego" to advertise several of its products.
On Friday, "the judge ruled that Betonblock is taking unfair advantage of the use of the word 'Lego'," The Hague District Court said.
Judge Hans van Walderveen ordered Betonblock "to cease the infringement of the Lego trademarks within two working days," or face a penalty of 500 euros per day, to a maximum of 50,000 euros ($57,000).
Judges agreed with the Danish-based toy giant that Betonblock was "taking unfair advantage of the distinctive character and reputation of the Lego sign."
The Dutch company frequently referred to it when advertising its products, including on one webpage where the word "Lego" appeared 26 times.
Betonblock said in its submission the visible use of the word Lego was intended to help its website to appear as high as possible in search results.
The company said last year more than 13 percent of all clicks on its website came from searches in which the word "Lego" was combined with concrete-related terms, which generated an estimated turnover of 429,000 euros ($487,000).
The company makes high-end moulds, including for modular concrete blocks resembling those made as plastic children's toys.
It had tried to reach an amicable solution with Lego.
The judge said Betonblock was free to use the Lego trademarks descriptively.
"For example, if the company wanted to explain (once) that its moulds can be used to produce modular, stackable concrete blocks with studs, like the well-known Lego bricks," the court said in a statement.
"But there are limits to this. The excessive use of the word Lego as has been the case up to now is not in accordance with honest practices in industry and trade," it said.
jhe/jhb

rate

Russia holds key rate at two-decade high despite slowdown fears

  • In a statement announcing the rate decision, Russia's central bank acknowledged lending activity was "subdued" but that inflation, running above 10 percent, was still too high.
  • Russia's central bank kept borrowing costs at a two-decade high of 21 percent on Friday to combat rampant inflation, despite banks and businesses warning the economy was headed for a slowdown.
  • In a statement announcing the rate decision, Russia's central bank acknowledged lending activity was "subdued" but that inflation, running above 10 percent, was still too high.
Russia's central bank kept borrowing costs at a two-decade high of 21 percent on Friday to combat rampant inflation, despite banks and businesses warning the economy was headed for a slowdown.
Prices have been rising quickly across the Russian economy for months, driven up by massive government spending on the Ukraine conflict and deep labour shortages.
Eye-watering lending rates have meanwhile hit businesses hard, with some of the country's top corporate leaders putting pressure on the central bank to relax rates.
In a statement announcing the rate decision, Russia's central bank acknowledged lending activity was "subdued" but that inflation, running above 10 percent, was still too high.
It said it would keep monetary conditions "as tight as necessary" until inflation returned to target.
Russia's target rate of inflation is four percent, but price increases are not expected to reach that level until 2026, and could average between 7-8 percent in 2025.
Speaking after the rate decision, central bank governor Elvira Nabiullina said inflation would likely start slowing down in May and compared high interest rates to "medicine".
It is "a very effective medicine that has been tested repeatedly in very different conditions," she told a press conference.
President Vladimir Putin has acknowledged that inflation is too high and on Thursday warned Russia's 2025 economic growth would be "slightly lower".
But he said this was part of a "soft landing" that Russia was actually "striving for".
Economists have warned for months of a slowdown in Russia's economic activity, with falling oil prices, high interest rates and a downturn in manufacturing all contributing to headwinds.
The Russian branch of Raiffeisenbank said in a March research note that confidence in the manufacturing sector had "significantly decreased over the last couple of months", and that production in the oil industry had also slowed.
Russia reported strong economic growth for 2024, largely due to massive state defence spending which is set to jump by almost 30 percent again in 2025.
But economists have cautioned that growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. 
Interest rate rises may also not be an effective tool to bring down inflation, as so much spending is being directed by the state, which is less responsive to higher borrowing costs, according to analysts.
bur/rl

tariff

Trump claims China's Xi called him on tariffs

  • "He's called," Trump said.
  • US President Donald Trump has insisted Chinese leader Xi Jinping called him despite Beijing denials of any contact between the two countries over their bitter trade dispute.
  • "He's called," Trump said.
US President Donald Trump has insisted Chinese leader Xi Jinping called him despite Beijing denials of any contact between the two countries over their bitter trade dispute.
In an interview conducted on April 22 with TIME Magazine and published Friday, the US president did not say when the call took place or specify what was discussed.
"He's called," Trump said. "And I don't think that's a sign of weakness on his behalf."
Chinese Commerce Ministry spokesman He Yadong told reporters Thursday that "I would like to emphasize that there are currently no economic and trade negotiations between China and the United States."
The world's two biggest economies are locked in an escalating tit-for-tat trade battle triggered by Trump's levies on Chinese goods, which have reached 145 percent on many products.
Trump suggested he will announce deals with US trading partners in the next few weeks.
"I would say, over the next three to four weeks, and we're finished, by the way," he said.
"There's a number at which they will feel comfortable," Trump told the magazine, referring to China. "But you can't let them make a trillion dollars on us."
The tariff blitz -- which Trump says is retaliation for unfair trade practices, as well as a bid to restore US manufacturing prowess -- has rattled markets and raised fears of a global recession.
tjx/md/bgs

Europe

TikTok videos exploit trade war to sell fake luxury goods

BY DOUNIA MAHIEDDINE

  • The accusation that luxury goods officially manufactured in Europe were in reality being secretly made in China "does not make any sense", concurred Michel Phan, professor of luxury marketing at emlyon business school in France.
  • TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices.
  • The accusation that luxury goods officially manufactured in Europe were in reality being secretly made in China "does not make any sense", concurred Michel Phan, professor of luxury marketing at emlyon business school in France.
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices.
But while these "revelations" are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs.
Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump.
They say this Chinese decision, of which AFP has found no trace, authorises them to reveal the hidden underbelly of luxury goods manufacturing in China.
They encourage Western consumers to buy directly from the websites selling these goods, which bear no logos or labels but are said to be of the same quality and design as the expensive originals.
The prices are alluring too, dropping from $38,000 for a luxury bag to $1,400.
Brands targeted -- which include Hermes, Chanel and Louis Vuitton, whose goods are produced in Europe and the United States according to their websites -- declined to respond to AFP questions about the claims made in these viral videos.
But for Jacques Carles, head of the French Luxury and Design Centre, a management consultancy, the notion that luxury brands would manufacture goods in China is simply "absurd".
"It would be suicidal. If there was evidence -- and there isn't -- it would be the end. These brands aren't stupid," he told AFP.
While the TikTokers point to the skill of the Chinese workers, presented as the little hands behind the big luxury names, "these counterfeit workshops absolutely do not respect all the required stages in the manufacturing process", he said.

'Creating doubt'

Carles cited the example of Hermes's Birkin bag, which requires "hundreds of hours of work" to produce.
He said the internet clip makers were, "by creating doubt", actually looking to "open up an opportunity... to shift their stocks" of counterfeit goods.
"It's a viral campaign that's spread on social networks (and) is difficult to counter," he said.
Luxury brands chose to remain silent and "treat the phenomenon with scorn", which was a mistake in his view, he added.
The accusation that luxury goods officially manufactured in Europe were in reality being secretly made in China "does not make any sense", concurred Michel Phan, professor of luxury marketing at emlyon business school in France.
He rejected the argument made on TikTok that this was a Chinese retort to US trade tariffs.
"Hurting European luxury brands will not change anything (for) the US government because they are not related to those brands," he said.
"All the videos online mentioning that luxury brands manufactured their products in China and then put the 'Made in France' label before selling them are nonsense.
"It is illegal to do so and no brand will take the risk to get caught (sic) doing it."
The e-commerce department at China's trade ministry said in a statement: "Any misleading marketing, infringement, or counterfeit activities" by entities posing as subconstractors for established brands "will be promptly referred to law enforcement agencies for investigation and action."

'I'm such a sucker'

Comments on the viral clips, portrayed as coming from internet users rather than the video creators themselves, seem to show that the message resonates.
"I'm so annoyed. I paid top price!" said one in a video comment.
"I'm such a sucker," said another.
Some leave comments asking for the names of "suppliers of luxury goods" in China from whom they can buy the coveted items on the cheap.
Meanwhile, Chinese vendors are also selling counterfeit luxury goods directly on TikTok, with links to their websites. These TikTok live reels garner hundreds of views each.
They show row upon row of shelves full of luxury items, all numbered.
"DHL delivery. Products identical to those in stores. The only difference is the price," says one, using an AI-generated voice in French.
Internet users are invited to scan a QR code or click on a link to complete their purchase via WhatsApp or PayPal.
AFP has found a score of similar live feeds, released simultaneously in English and French, suggesting that the main targets are internet users in Europe and the United States.
China is regularly accused of being the world's top producer of counterfeit goods.
Some estimates suggest 70 to 80 percent of all fakes are manufactured there.
In European Union states and a number of other countries there are hefty penalties for purchasing counterfeits.
In France, that could mean a three-year prison term and a fine of 300,000 euros ($340,600).
Customs authorities may also confiscate counterfeit goods and fine the purchaser the equivalent of the items' true value.
The European Union Intellectual Property Office (EUIPO) says counterfeiting costs European industry 16 billion euros a year, with the clothes, cosmetics and toy sectors being the worst affected.
dou/cds/vmt/gil/rlp

trade

China's top leaders pledge economic support as trade war rages

BY PETER CATTERALL AND LUNA LIN

  • They also said they would seek to "work with the international community to actively uphold multilateralism and oppose unilateral bullying practices", it said.
  • China's top leaders pledged on Friday to step up support for the economy and oppose "unilateral bullying" in global trade in a veiled rebuke of hefty tariffs imposed by US President Donald Trump.
  • They also said they would seek to "work with the international community to actively uphold multilateralism and oppose unilateral bullying practices", it said.
China's top leaders pledged on Friday to step up support for the economy and oppose "unilateral bullying" in global trade in a veiled rebuke of hefty tariffs imposed by US President Donald Trump.
The world's two largest economies are engaged in a high-stakes trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.
Leaders at a gathering of the Chinese Communist Party's top decision-making body focused on economic work, which was attended by President Xi Jinping, acknowledged that "the impact of external shocks is increasing", state news agency Xinhua reported.
They also said they would seek to "work with the international community to actively uphold multilateralism and oppose unilateral bullying practices", it said.
The brutal trade war comes as China's economy strains under the weight of longstanding woes in the property sector and reluctance by consumers to pull out their wallets.
Leaders at the Politburo meeting discussed a range of domestic economic issues, emphasising the need to "enhance the role of consumption in stimulating economic growth", according to Xinhua.
They also called for action to increase incomes and "vigorously develop service consumption", as well as the implementation of key rate cuts at "appropriate times".
The readout of the meeting "shows the government is ready to launch new policies when the economy is affected by the external shock", Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, wrote in a note.
However, Zhang noted "it seems Beijing is not in a rush to launch a large stimulus at this stage".
"It takes time to monitor and evaluate the timing and the size of the trade shock," he added.
Experts say the Chinese economy will need to depend more on domestic consumption in order to sustain growth through coming years.
Beijing is targeting annual growth this year of five percent, although economists consider that goal to be ambitious.

'Extreme scenario'

China achieved record exports last year, providing a key source of economic activity as domestic challenges in the property sector and deflationary pressure persisted.
But the global trading system is now under great pressure, with Trump having hit most trading partners with 10 percent tariffs since reclaiming office in January.
China has received the worst of Trump's trade blitz, with many of its products now facing a 145 percent tariff. Beijing has responded with new 125 percent tariffs of its own on US goods.
There have been competing claims in recent days about potential trade talks that could see an easing of the sky-high tariffs that have unleashed chaos on the global economy.
A spokesman for Beijing's commerce ministry said on Thursday that "there are currently no economic and trade negotiations between China and the United States".
But hours later, asked about the state of negotiations with Beijing, Trump maintained: "We've been meeting with China."
Chinese financial news outlet Caijing reported on Friday that Beijing was considering the exemption of certain US semiconductor products from recent additional tariffs, citing sources familiar with the matter.
Beijing's commerce ministry did not immediately respond to an AFP request to confirm the reports.
China also said on Friday it was necessary to enhance "extreme scenario thinking" as the trade war deepens.
"It is essential to... enhance both bottom-line thinking and extreme scenario thinking, with a strong focus on preventing and defusing trade risks," a commerce ministry statement said.
The Politburo meeting's emphasis on innovation shows that China is preparing for a "deepening decoupling with the United States", Yue Su, Principal Economist at the Economist Intelligence Unit, told AFP.
The tone of the meeting "reflects growing concern over downside risks, as the government appears increasingly willing to factor potential negative shocks into its policy planning", Su said.
bur-pfc/pbt

weapons

Arms maker Saab posts record sales as Europe rearms

  • "Rapid changes in the global geopolitical climate have continued to underscore the urgent need for a strong European defence industry, with increased collective capacity and capabilities," Saab chief executive Micael Johansson said in the earnings report.
  • Swedish defence group Saab on Friday reported soaring quarterly earnings and record sales as European countries beef up their defence capacities amid geopolitical tensions and uncertainties.
  • "Rapid changes in the global geopolitical climate have continued to underscore the urgent need for a strong European defence industry, with increased collective capacity and capabilities," Saab chief executive Micael Johansson said in the earnings report.
Swedish defence group Saab on Friday reported soaring quarterly earnings and record sales as European countries beef up their defence capacities amid geopolitical tensions and uncertainties.
The company noted however that the uncertainties, including those over US President Donald Trump's tariffs scheme, also "present challenges and make it difficult to predict the future".
Saab manufactures the Gripen jet fighter, combat weapons systems and submarines among other things.
European countries have ramped up their military budgets since Russia's 2022 invasion of Ukraine.
Trump is also pressuring NATO members to more than double their defence spending to five percent of GDP, warning that he could refuse to help protect countries that do not spend enough on their own defence.
Saab saw its net profit soar by 53 percent in the first quarter from the same period a year ago, to 1.2 billion kronor ($124 million), while operating profit rose by 22 percent to 1.5 billion kronor, its strongest first quarter operating profit ever. 
"Rapid changes in the global geopolitical climate have continued to underscore the urgent need for a strong European defence industry, with increased collective capacity and capabilities," Saab chief executive Micael Johansson said in the earnings report.
"The renewed focus on a capable European industrial-defence base has created a new market reality that we are adapting and responding to, even if the transition from political decisions to defence acquisition will take time," he said.
Saab reported record sales of 15.8 billion kronor, an 11 percent rise from a year earlier, and said it expected organic sales growth of between 12-16 percent for 2025.
Its order intake climbed to 19.1 billion kronor, from 18.5 billion kronor a year earlier, driven by small and medium-sized orders but it also included two large orders from Latvia and Germany.
po/jll/rl

mining

Trump signs order to ramp up US deep-sea mining

BY MICHAEL MATHES

  • - 'Environmental disaster' - Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
  • President Donald Trump has defied international norms on the nascent field of deep-sea mining, signing an executive order Thursday expanding the practice for rare earth minerals in domestic and international waters.
  • - 'Environmental disaster' - Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
President Donald Trump has defied international norms on the nascent field of deep-sea mining, signing an executive order Thursday expanding the practice for rare earth minerals in domestic and international waters.
White House aides say the initiative could see US operations scoop up more than a billion metric tons of mineral-rich deep-sea nodules, and pump hundreds of billions of dollars into the American economy.
But the move to disrupt ocean floor ecosystems to extract cobalt and other minerals flies in the face of environmental group concerns and the controls set by global regulators at the International Seabed Authority. 
Since the 1990s, the group has sought to set ground rules for the burgeoning industry's extraction efforts in international waters. 
But the US never ratified the agreements that empowered the ISA's jurisdiction and is not a member of the UN-affiliated body. 
Instead, the Trump administration is "relying on an obscure 1980 law that empowers the federal government to issue seabed mining permits in international waters," the New York Times reported. 
ISA didn't immediately respond to AFP's request for comment.
Under the order, the secretary of commerce has 60 days to "expedite the process for reviewing and issuing seabed mineral exploration licenses and commercial recovery permits in areas beyond national jurisdiction."

'Environmental disaster'

Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
But environmental groups warn the process can cause major ecological damage.
"Fast-tracking deep-sea mining is an environmental disaster in the making," Emily Jeffers, a senior attorney at the Center for Biological Diversity, said in a statement.
"Trump is trying to open one of Earth's most fragile and least understood ecosystems to reckless industrial exploitation."
The boosted deep-sea mining policy is aimed in part at "strengthening partnerships with allies and industry to counter China's growing influence over seabed mineral resources," the White House said.
The ISA is scrambling to devise a rulebook for deep-sea mining, balancing its economic potential against warnings of irreversible environmental damage.
Last week the American firm Impossible Metals said it had asked US officials to "commence a leasing process" in a parcel of the Pacific Ocean surrounding far-flung US territory American Samoa.  
The bid circumvents the ISA by mining within US jurisdiction, rather than international waters.
Key seabed resources include polymetallic nodules, potato-sized pebbles found at depths of 13,000 to 20,000 feet (4,000 to 6,000 meters) that contain manganese, iron, cobalt, copper and nickel.
A senior administration official told reporters shortly before the signing that the US could retrieve more than a billion metric tons of material, and the process could create some 100,000 jobs and generate $300 billion in domestic GDP over 10 years.
Canada-based deep-sea mining frontrunner The Metals Company recently stunned industry observers with an attempt to sideline the ISA.
After years of pushing the authority to adopt rules for industrial-scale mining, The Metals Company abruptly announced earlier this year it would seek US approval instead, with CEO Gerard Barron lauding Trump's order.
"By building on decades of domestic innovation and regulatory groundwork, this action reasserts America's role in securiting critical seabed resources and ensures the US is not left behind in a strategic arena increasingly influenced by China," Barron said in a statement.
mlm/acb/sla/jgc

earnings

Alphabet quarterly earnings lifted by cloud and AI

BY GLENN CHAPMAN

  • Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant.
  • Google parent Alphabet on Thursday reported profit of $34.5 billion in the recently ended quarter, powered by its cloud computing and artificial intelligence operations.
  • Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant.
Google parent Alphabet on Thursday reported profit of $34.5 billion in the recently ended quarter, powered by its cloud computing and artificial intelligence operations.
Overall revenue at Alphabet grew 12 percent to $90.2 billion compared to the same period a year earlier, while revenue for the cloud unit grew 28 percent to $12.3 billion, according to the tech giant.
Alphabet chief executive Sundar Pichai said the strong quarterly results reflect healthy growth and momentum across the business.
"Underpinning this growth is our unique full stack approach to AI," Pichai said in an earnings release.
He touted the latest Gemini software as Alphabet's most intelligent AI model and an "extraordinary foundation" for the Silicon Valley company's innovation.
Alphabet shares were up more than three percent in after-market trades that followed the release of the earnings figures.
"Cloud grew rapidly with significant demand for our solutions," Pichai said of Alphabet's services and tools hosted at data centers.
Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence.
"Cloud's growth indicates that Google AI product mix continues to thrive despite heightened competition," said Emarketer principal analyst Yory Wurmser.
Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that churns out the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.
US government attorneys are urging a federal judge to make Google spin off its Chrome browser, arguing artificial intelligence is poised to ramp up the company's online search dominance.
The Department of Justice (DOJ) is arguing its position before District Judge Amit Mehta, who is considering "remedies" after making a landmark decision last year that Google maintained an illegal monopoly in online search.
"Nothing less than the future of the internet is at stake here," Assistant Attorney General Gail Slater said prior to the start of the hearings this week in Washington.
"If Google's conduct is not remedied, it will control much of the internet for the next decade and not just in internet search, but in new technologies like artificial intelligence."
Google countered in the case that the United States has gone way beyond the scope of the suit by recommending a spinoff of its widely used Chrome, and holding open the option to force a sale of its Android mobile operating system.
The legal case focused on Google's agreements with partners such as Apple and Samsung to distribute its search tools, noted Google president of global affairs Kent Walker.
"The DOJ chose to push a radical interventionist agenda that would harm Americans and America's global technology leadership," Walker wrote in a blog post.
In another legal battle, a different US judge ruled this month that Google wielded monopoly power in the online ad technology market in a legal blow that could rattle the tech giant's revenue engine.
The federal government and more than a dozen US states filed the antitrust suit against Google, accusing it of acting illegally to dominate major sectors of digital advertising.
District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.
"Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising," Brinkema said in her ruling.
Online advertising is the driving engine of Google's fortune and pays for widely used online services like Maps, Gmail, and search offered free.
Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.
Google said it is appealing both rulings.
gc/jgc

earnings

Intel chief vows to thin ranks at US chip maker

  • Malaysia-born tech industry veteran Tan, who took over as Intel chief executive in March, has said it "won't be easy" to overcome challenges faced by the company.
  • New Intel chief executive Lip-Bu Tan on Thursday announced upcoming layoffs at the struggling US chip maker as White House tariffs and export restrictions muddy the market.
  • Malaysia-born tech industry veteran Tan, who took over as Intel chief executive in March, has said it "won't be easy" to overcome challenges faced by the company.
New Intel chief executive Lip-Bu Tan on Thursday announced upcoming layoffs at the struggling US chip maker as White House tariffs and export restrictions muddy the market.
Tan did not provide details about the number of employees affected, but said he was "a big believer in the philosophy that the best leaders get the most done with the fewest people."
Despite the promise of cost-cutting and an earnings report that bested market expectations, Intel's share price sank more than five percent after it reined in its financial outlook for the current quarter due to broader market conditions.
"The economic landscape has become increasingly uncertain, driven by shifting trade policies, persistent inflation and increased regulatory risk," Intel chief financial officer David Zinsner said during an earnings call.
"The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing."
Intel reported a loss of $800 million on revenue of $12.7 billion in the first three months of this year. The chip maker forecast revenue of between $11.2 and $12.4 billion in the current quarter.
Bloomberg reported that more than 20 percent of staff could be laid off. 
When asked by AFP for more details about the job cuts, a spokeswoman did not offer figures, but referred to an email to staff from Tan, who said the layoffs would begin in the current quarter and continue "over the next several months."
"As we refocus on engineering, we will also remove organizational complexity," Tan said in the note to staff. 
"There is no way around the fact that these critical changes will reduce the size of our workforce."
Malaysia-born tech industry veteran Tan, who took over as Intel chief executive in March, has said it "won't be easy" to overcome challenges faced by the company.

Competition from Nvidia

Intel is one of Silicon Valley's most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business. 
The company was also caught by surprise with the emergence of Nvidia as the world's preeminent AI chip provider.
Intel's niche has been in chips used in traditional computing processes being eclipsed by the AI revolution.
"I strongly believe we can reduce our costs while securing our future," Tan said.
"Our competitors are lean, fast and agile -- and that's what we must become to improve our execution."
Tan's predecessor, Pat Gelsinger, was forced out as Intel chief in December after the board lost confidence in his plans to turn the company around. 
Former US president Joe Biden's administration last year finalized a $7.9 billion award to Intel as part of an effort to bring semiconductor production to US shores.
But Intel in February extended the timeline for completing two new fabrication plants in Ohio, saying it is taking a prudent approach to the $28 billion project.
Intel has also delayed projects in Germany, Poland and Malaysia.
gc/sst

mining

Trump signs order to ramp up US deep-sea mining

BY MICHAEL MATHES

  • Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
  • President Donald Trump signed an executive order Thursday to expand US deep-sea mining for rare earth minerals in domestic and international waters, despite warnings by environmental groups.
  • Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
President Donald Trump signed an executive order Thursday to expand US deep-sea mining for rare earth minerals in domestic and international waters, despite warnings by environmental groups.
White House aides say the initiative could see US operations scoop up more than a billion metric tons of deep-sea nodules and pump hundreds of billions of dollars into the American economy.
The fast-tracking also flies in the face of a decade-long international effort to set ground rules for the burgeoning deep-sea industry.
Commercial deep-sea mining remains in its infancy, but with a global race underway for rare earth minerals -- and the industry dominated by China -- Washington appears set on expanding its collection capacity to benefit its defense, advanced manufacturing and energy industries.
Under the order, the secretary of commerce has 60 days to "expedite the process for reviewing and issuing seabed mineral exploration licenses and commercial recovery permits in areas beyond national jurisdiction."
The boosted deep-sea mining policy is aimed in part at "strengthening partnerships with allies and industry to counter China's growing influence over seabed mineral resources," it said.

'Environmental disaster'

The International Seabed Authority (ISA) is scrambling to devise a rulebook for deep-sea mining, balancing its economic potential against warnings of irreversible environmental damage.
The United States is not a member of the UN-affiliated body.
Last week the American firm Impossible Metals said it had asked US officials to "commence a leasing process" in a parcel of the Pacific Ocean surrounding far-flung US territory American Samoa.
The bid circumvents the ISA by mining within US jurisdiction, rather than international waters.
Key seabed resources include polymetallic nodules, potato-sized pebbles found at depths of 13,000 to 20,000 feet (4,000 to 6,000 meters) that contain manganese, iron, cobalt, copper and nickel.
A senior administration official told reporters shortly before the signing that the US could retrieve more than a billion metric tons of material, and the process could create some 100,000 jobs and generate $300 billion in domestic GDP over 10 years.
Several countries are scrambling to increase capacity for deep-sea mining, seen as a potential boon for industries and the green energy transition.
But environmental groups warn the process can cause major ecological damage.
"Fast-tracking deep-sea mining is an environmental disaster in the making," Emily Jeffers, a senior attorney at the Center for Biological Diversity, said in a statement.
"Trump is trying to open one of Earth's most fragile and least understood ecosystems to reckless industrial exploitation."
Canada-based deep-sea mining frontrunner The Metals Company recently stunned industry observers with an attempt to sideline the ISA.
After years of pushing the authority to adopt rules for industrial-scale mining, The Metals Company abruptly announced earlier this year it would seek US approval instead.
mlm/jgc

Global Edition

Stocks rally rolls on in US, mixed elsewhere

  • However, Wall Street pushed higher after a mixed open, finishing solidly higher for a third straight day. 
  • Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump's comments talking up prospects of a deal to end their trade war.
  • However, Wall Street pushed higher after a mixed open, finishing solidly higher for a third straight day. 
Wall Street stocks pushed higher for a third day on Thursday but the rally fizzled elsewhere as China poured cold water on US President Donald Trump's comments talking up prospects of a deal to end their trade war.
US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell.
But global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signaling that tariffs on China could be substantially lowered and that the United States would have a "fair deal" on trade with Beijing.
But China on Thursday denied that any "economic and trade negotiations" are taking place with Washington.
Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were "not yet" talking when it comes to lowering tariffs.
Those comments led to a mostly lower session in Asia and early losses in Europe, which nevertheless ended the day with small gains.
However, Wall Street pushed higher after a mixed open, finishing solidly higher for a third straight day. 
Thursday's gains are part of a "relief rally" that is persisting, said Adam Sarhan of 50 Park Investments.
"The last few times the market has gone down a lot, Trump has changed his stance and he's done so quickly," said Sarhan. "When the markets move, Trump listens."
The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen and gold, seen as safe-haven assets.
Meanwhile investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead.
"Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures," said Russ Mould, investment director at AJ Bell.
Shares in consumer goods manufacturer Procter & Gamble slumped 3.7 percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty.
Shares in its British rival Unilever shed 0.3 percent although it said the impact of US tariffs on its products would be "limited", as it reported a dip in first-quarter revenue.
Shares in Pepsi slid nearly five percent after it too cut its 2025 sales and profit forecasts.
Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump's tariffs on car imports hit the industry.
In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand.
In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations.
Meanwhile Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.

Key figures at 2030 GMT

New York - Dow: UP 1.2 percent at 40,093.40 (close)
New York - S&P 500: UP 2.0 percent at 5,484.77 (close)
New York - Nasdaq Composite: UP 2.7 percent at 17,166.04 (close)
London - FTSE 100: UP 0.1 percent at 8,407.44 (close)
Paris - CAC 40: UP 0.3 percent at 7,502.78 (close)
Frankfurt - DAX: UP 0.5 percent at 22,064.51 (close)
Tokyo - Nikkei 225: UP 0.5 percent at 35,039.15 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)
Shanghai - Composite: FLAT at 3,297.29 (close)
Euro/dollar: UP at $1.1392 from $1.1316 on Wednesday
Pound/dollar: UP at $1.3339 from $1.3254
Dollar/yen: DOWN at 142.62 from 143.45 yen
Euro/pound: DOWN at 85.35 from 85.37 pence
West Texas Intermediate: UP 0.8 percent at $62.79 per barrel
Brent North Sea Crude: UP 0.7 percent at $66.55 per barrel
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