Global Edition

Rout in Seoul stocks leads Asian losses as AI tech rally hits wall

  • "Stronger-than-expected labour market data reignited concerns that the Federal Reserve may be preparing to embark on a new tightening cycle," said SPI Asset Management's Stephen Innes.
  • Seoul's Kospi stock index dived more than eight percent to lead a rout across Asia on Monday as tech firms were hammered and strong US jobs data fuelled bets on a Federal Reserve interest rate hike.
  • "Stronger-than-expected labour market data reignited concerns that the Federal Reserve may be preparing to embark on a new tightening cycle," said SPI Asset Management's Stephen Innes.
Seoul's Kospi stock index dived more than eight percent to lead a rout across Asia on Monday as tech firms were hammered and strong US jobs data fuelled bets on a Federal Reserve interest rate hike.
News that Iran and Israel had traded fire sparked worries about an escalation of the Middle East crisis, adding to the gloomy mood on trading floors and sending oil prices surging more than three percent.
The technology sector bore the brunt of losses on Monday as investors cashed out following a breathtaking surge in recent months powered by a race into all things linked to artificial intelligence.
The selling came after a closely watched report on Friday showed more than double the amount of US jobs than expected were created in May, while those in the previous two months were revised higher.
Analysts said that showed the world's top economy remained resilient in the face of surging prices, but ramped up bets on the Fed raising interest rates.
Yields on US Treasury bonds rose as investors anticipated higher rates, while the dollar strengthened against its main rivals.
All three main indexes on Wall Street tumbled on Friday, led by a four percent drop in the Nasdaq.
That heavy selling extended into Asia, where tech-rich markets felt the most pain.
Seoul -- which has hit multiple record highs this year -- tanked 8.3 percent as chipmaker Samsung shed more than 10 percent and rival SK hynix lost 7.7 percent.
Taipei and Tokyo each dived more than three percent, while there were also hefty losses in Hong Kong, Shanghai, Singapore, Manila, Mumbai, Jakarta, Wellington and Bangkok.
London, Paris and Frankfurt opened in the red.

'Disappointing guidance'

Bitcoin was hovering around $63,000 after sinking below $60,000 on Friday to its lowest level since October 2024, just before the election of Donald Trump to the US presidency propelled it to a record high.
"Stronger-than-expected labour market data reignited concerns that the Federal Reserve may be preparing to embark on a new tightening cycle," said SPI Asset Management's Stephen Innes.
He added that "fading hopes for progress in Middle East peace negotiations kept energy markets on edge, and a handful of disappointing guidance updates from major technology companies interrupted what had become an increasingly one-way artificial intelligence trade".
Investors were already concerned about extended valuations in the AI realm, which has been the main catalyst for a global market surge in the past two years, eclipsing worries about the Middle East crisis.
US chipmaker Broadcom's below-forecast revenue outlook for the third quarter added to those concerns.
Fears about a re-escalation of the Iran war pushed crude prices sharply higher after Israeli said on Monday it had struck targets in western and central Iran, as Iranian state TV reported explosions in the cities of Tehran, Tabriz and Isfahan.
The attacks came a day after Israel said its military intercepted incoming Iranian missiles, the first such barrage since an April ceasefire took hold.
Tehran called the attack a "warning" after strikes on Beirut's southern suburbs.
Israel's strikes came hours after Trump called on it to refrain from retaliating.

Key figures at around 0715 GMT

Seoul - Kospi: DOWN 8.3 percent at 7,484.41 (close)
Tokyo - Nikkei 225: DOWN 3.9 percent at 64,024.60 (close)
Hong Kong - Hang Seng Index: DOWN 1.6 percent at 24,569.10
Shanghai - Composite: DOWN 1.7 percent at 3,959.34 (close)
London - FTSE 100: DOWN 0.3 percent at 10,335.68
West Texas Intermediate: UP 4.5 percent at $94.61 a barrel
Brent North Sea Crude: UP 4.9 percent at $97.63 a barrel
Euro/dollar: DOWN at $1.1516 from $1.1520 on Friday
Pound/dollar: DOWN at $1.3323 from $1.3333
Dollar/yen: UP at 160.28 yen from 160.23 yen
Euro/pound: UP at 86.43 pence from 86.41 pence
New York - DOW: DOWN 1.4 percent at 50,866.78 (close)
dan/pbt

US

Israel, Iran trade fire for first time since truce

BY AFP TEAMS IN TEHRAN, JERUSALEM, DUBAI, MANAMA, KUWAIT AND WASHINGTON

  • He doesn't call the shots," Trump said in an interview with the Financial Times on Sunday, referring to Netanyahu.
  • Israel and Iran exchanged attacks on Monday for the first time since a ceasefire in the Middle East war took effect two months ago, despite US President Donald Trump calling for restraint.
  • He doesn't call the shots," Trump said in an interview with the Financial Times on Sunday, referring to Netanyahu.
Israel and Iran exchanged attacks on Monday for the first time since a ceasefire in the Middle East war took effect two months ago, despite US President Donald Trump calling for restraint.
Israel's strikes came after Iran targeted Israel to avenge an airstrike on Beirut's southern suburbs, where the Islamic republic's proxy Hezbollah holds sway.
The exchange followed weeks of fruitless negotiations seeking to bring about a definitive end to the regional war sparked by US and Israeli strikes on Iran on February 28.
No casualties have been reported so far.
The violence included a strike on an Iranian petrochemical complex and a missile attack on Israel by Yemen's Houthi rebels. 
It came hours after Trump called on Israel to refrain from retaliating to Tehran's missiles.
AFP journalists in Jerusalem and the West Bank city of Ramallah heard a series of explosions and the Israeli army said it worked to intercept a new wave of Iranian missiles.
Iran's Revolutionary Guards said they had struck Israel's Nevatim and Tel Nof air bases "in response to a missile attack launched by the Zionist regime".

'I call the shots'

Yemen's Iran-backed Houthi rebels meanwhile announced a missile attack on Israel on Monday, the first since early April, and declared a ban on Israeli shipping in the Red Sea, raising the spectre of a return to major disruption on the key route.
"We declare a complete and total ban on Israeli maritime navigation in the Red Sea," said a statement from the Houthis' armed forces.
Trump called for calm from both Israeli Prime Minister Benjamin Netanyahu and the Iranians, but Israel accused Tehran of making a "grave mistake". 
"I call the shots. I call all the shots. He doesn't call the shots," Trump said in an interview with the Financial Times on Sunday, referring to Netanyahu.
In a separate interview with Fox News, Trump said: "What I would suggest to Iran: You've shot your missiles, that's enough, get back to the table and make a deal."

'Legitimate targets'

The European Union's top diplomat Kaja Kallas urged calm Monday and called on both sides to "sit down to a negotiation table and agree".
China also called on the two sides to refrain from fighting, with foreign ministry spokesman Lin Jian saying that "resuming hostilities is not in any party's interest".
Tehran has insisted any deal to permanently end the war must also halt the parallel conflict in Lebanon, where Israel was pursuing a campaign against Hezbollah.
Iran's Revolutionary Guards called the attack a "warning" after Israel struck Beirut's southern suburbs earlier in the day, threatening wider strikes in the event of repeated aggression.
A separate Iranian attack targeting the headquarters of "terrorist groups" in Iraqi Kurdistan on Monday added yet more strain to hopes for a lasting peace.
The Iranian government accuses the armed Kurdish parties of serving Western or Israeli interests.
On Sunday, Netanyahu's office announced the army had "struck a militant command centre in Beirut's Dahiyeh district, in response to Hezbollah's fire towards Israeli territory".
The raid killed two people and wounded 20 more, Lebanon's health ministry said.
Israel had warned it would hit the area should Hezbollah attack northern Israel, with the Iran-backed group later confirming having launched missiles and drones at a pair of Israeli army barracks early Sunday.
Mohammad Bagher Ghalibaf, Iran's parliament speaker and its chief negotiator in talks with Washington, accused the United States of having given a "green light" for the Beirut attack, saying US and Israeli assets were now "legitimate targets".
The head of Iran's military central command said Israel had "crossed all red lines" with the Beirut strike.

'Everything is horrible'

The attacks sent crude prices surging as hopes dimmed on any imminent reopening of the Strait of Hormuz, the crucial waterway for oil and gas transit which Iran has blockaded.
Iranians were also already feeling the strain of weeks of uncertainty.
"I really have gone numb," fitness trainer Elaheh from Ahvaz told AFP.
"Daily life? It's a joke. Everything is horrible. We only try to survive," the 32-year-old added, pointing to rising prices.
There were some weekend signs of ongoing diplomatic efforts, with Pakistan Interior Minister Mohsin Naqvi visiting Tehran to deliver what he said was a "special letter" to Iran's supreme leader, according to Iranian state television.
He has since travelled back to Pakistan, an official Pakistani source said on Monday. 
burs-jfx/ser

US

Israel, Iran trade fire despite Trump's call for restraint

BY BY AFP TEAMS IN TEHRAN, JERUSALEM, DUBAI, MANAMA, KUWAIT AND WASHINGTON

  • - Warning - Tehran has insisted any deal to permanently end the war must also halt the parallel conflict in Lebanon, where Israel was pursuing a campaign against the Iran-backed movement Hezbollah.
  • Israel and Iran traded fire on Monday, seriously testing a fragile truce and threatening hopes for a deal to end the Middle East war.
  • - Warning - Tehran has insisted any deal to permanently end the war must also halt the parallel conflict in Lebanon, where Israel was pursuing a campaign against the Iran-backed movement Hezbollah.
Israel and Iran traded fire on Monday, seriously testing a fragile truce and threatening hopes for a deal to end the Middle East war.
The new attacks, including a strike on an Iranian petrochemical complex, came hours after US President Donald Trump called on Israel to refrain from retaliating against Tehran's missiles.
AFP journalists in Jerusalem heard a series of explosions as they took shelter and the Israeli army said it worked to intercept a new wave of Iranian missiles.
The retaliation followed Israel saying it fired on western and central Iran,tit-for-tat action against Tehran's assault on Sunday of 11 missiles, all of which were intercepted, with no casualties.
Israel's military and Iranian local media said Monday that Israel struck a petrochemical company in Mahshahr in southwestern Iran.
Trump had sought to rein in Israeli Prime Minister Benjamin Netanyahu, as Israel accused Tehran of making a "grave mistake". 
"I am going to call Bibi right now and tell him not to retaliate," Trump was quoted as saying by Axios journalist Barak Ravid in a phone interview, using Netanyahu's nickname.
"Israel had its strike and Iran had its strike. We don't need another one," Trump reportedly said. 
In a separate interview with Fox News, Trump said: "What I would suggest to Iran: You've shot your missiles, that's enough, get back to the table and make a deal."
Ravid later posted that a US official said Trump spoke with Netanyahu, although the White House and Trump have yet to comment. 

Warning

Tehran has insisted any deal to permanently end the war must also halt the parallel conflict in Lebanon, where Israel was pursuing a campaign against the Iran-backed movement Hezbollah.
Iranian foreign ministry spokesman Ali Safari told Al-Mayadeen television that Tehran's strikes on Sunday came after weeks of restraint against Israeli aggression, local media reported.
Iran's powerful Revolutionary Guards called the attack a "warning" after Israel struck Beirut's southern suburbs earlier in the day, threatening wider strikes in the event of repeated aggression.
A separate Iranian attack targeting the headquarters of "terrorist groups" in Iraqi Kurdistan on Monday added yet more strain to hopes for a lasting peace.
The Iranian government accuses the armed Kurdish parties of serving Western or Israeli interests.
The Israeli army also said Monday it was working to intercept a missile launched from Yemen, where rebels have previously launched attacks on Israel.
On Sunday, Netanyahu's office announced the army had "struck a militant command centre in Beirut's Dahiyeh district, in response to Hezbollah's fire towards Israeli territory".
The raid killed two people and wounded 20 more, Lebanon's health ministry said.
Israel had warned it would hit the area should Hezbollah attack northern Israel, with the Iran-backed group later confirming having launched missiles and drones at a pair of Israeli army barracks early Sunday.
Mohammad Bagher Ghalibaf, Iran's parliament speaker and its chief negotiator in talks with Washington, accused the United States of having given a "green light" for the Beirut attack, saying US and Israeli assets were now "legitimate targets".
The head of Iran's military central command said Israel had "crossed all red lines" with the Beirut strike, demanding it halt its campaign in Lebanon.
"Tonight's operation (against Israel) was a warning," the Revolutionary Guards said. "If such aggressions are repeated, the responses will be broader and will cover all US-Zionist targets in the region."

'Gone numb'

The sharp escalation sent crude prices surging as hopes dimmed on any imminent reopening of the Strait of Hormuz, the crucial waterway for oil and gas transit which has been effectively shut by Iran.
Iranians were also already feeling the strain of weeks of uncertainty.
"I really have gone numb," fitness trainer Elaheh from Ahvaz told AFP.
"Daily life? It's a joke. Everything is horrible. We only try to survive," the 32-year-old added, pointing to rising prices.
There were some weekend signs of ongoing diplomatic efforts, with Pakistan Interior Minister Mohsin Naqvi visiting Tehran.
Naqvi said upon his arrival Saturday that he would deliver a "special letter" from Pakistan's army chief to Iran's supreme leader, as well as a message from the prime minister, according to Iranian state television.
Pakistani military leader Syed Asim Munir has played a key role in mediating between Iran and the US following an initial round of direct negotiations in Islamabad.
Mohsen Rezaei, military adviser to Iranian supreme leader Ayatollah Mojtaba Khamenei, had told CNN negotiations with the United States "are at a deadlock, and Trump must break this deadlock", calling for the release of some $24 billion in frozen Iranian assets.
But Trump said he would not unfreeze Iranian assets before reaching an initial agreement with Tehran, telling NBC on Sunday: "If they behave, if they do a good job, we start talking".
burs/smw/mlm/msp/cms/jm

automobile

'There's no E': Blackout-plagued Nigeria pursues EVs

BY NICHOLAS ROLL WITH AUDU ALI MARTE IN MAIDUGURI AND YASMINE CANGA VALLES IN LAGOS

  • He's thought about buying a fully electric vehicle -- but until the country's infrastructure catches up, "I would keep it within the city". nro/sn/rl
  • There are two ways to think about electric vehicles in Nigeria.
  • He's thought about buying a fully electric vehicle -- but until the country's infrastructure catches up, "I would keep it within the city". nro/sn/rl
There are two ways to think about electric vehicles in Nigeria.
The first is that it's beyond folly to own an EV in a place where power outages are a fixture of daily life: the few EV drivers around are known to occasionally charge their vehicles off diesel-guzzling, black-smoke-puffing building generators that complement the nation's faltering grid.
The other is this: if it's possible to run an EV here, in a country where a vice president was once accused of being linked to a generator company that profited off the nation's grid collapse, then it's possible anywhere.
If EVs are coming for the world, this is the rough-and-tumble frontier.
"When it comes to the electricity supply in Nigeria, it's, I would say, location-based, because some sides (of town) have more light than others," said EV owner Khalifa Abubakar Alhassan, speaking diplomatically.
Some 90 million Nigerians -- a third of the nation -- don't have access to electricity at all, according to the World Bank. In May, a former energy minister was jailed for 75 years for money laundering linked to two failed hydropower projects.
But the government is pushing forward, aiming to make the country a hub for EV manufacturing while signing zero emissions pledges to slowly phase out new sales of autos with internal combustion engines.
For 22-year-old Alhassan, his neighbourhood in Abuja typically has "light", the Nigerian English term for grid power, consistently overnight -- perfect for charging his sleek, black sedan from China's Neta Auto.
"I enjoy not buying fuel," he added -- not a small expense in a country where pump prices have jumped some 650 percent since 2023, following the removal of a fuel subsidy, rampant inflation and shocks from the Iran war.

In Nigeria, 'we adapt'

According to the International Energy Association, more than one-in-five new cars sold worldwide in 2024 were electric, though almost all of that occurred in China, Europe and the United States.
But Mosope Olaosebikan, CEO of NEV Electric, a manufacturer specialising in buses and three-wheeled tuk-tuk or "kekes", is bullish on the sector's growth: the charging station he is building will be capable of charging 3,000 vehicles a day -- the largest on the continent, he reckons.
Challenges remain. Nigeria's GDP is the fourth largest in Africa, but after years of mismanagement and corruption, its grid is often shakier than that of neighbouring, poorer countries.
When Olaosebikan was starting his company four years ago, a nagging question was, "Oh, there's no 'E'. So where would they charge?" he told AFP.
But "one way or another Nigerians are producing the electricity."
Olaosebikan's station will use solar and compressed natural gas to power its chargers, with the national grid as back-up.
"We adapt in this part of the world," said Florence Boboye, of Lagos-based EV manufacturer Saglev.
Even when a driver charges their vehicle via a diesel generator -- as one AFP reporter in Lagos recently saw a neighbour doing -- that's still cheaper, and possibly more efficient, than running a typical internal combustion vehicle, she noted -- even if it looks a bit unseemly.

Infrastructure needed

On the sidewalk outside a charging station in downtown Abuja, women shading themselves with umbrellas sell mangoes and peanuts steps away from a Tesla Cybertruck. 
Even cheap Chinese models that analysts say could upend the global industry are far out of reach for the millions of Nigerians in the informal economy.
But low-earners are still benefiting, said Dauda Adamu, 44, a bus driver in northeastern Maiduguri, where the Borno state government has rolled out electric buses with fares as low as 50 naira (less than four US cents) in the face of rising petrol prices.
"When the vehicles arrived, the joy I felt even made me cry because I no longer have to deal with engine oil or anything stressful," he told AFP. 
On the federal level, Nigeria has approved green-friendly levies on heavy-engine vehicles, including gas-guzzling SUVs and trucks, set to go into effect in July. EVs are exempt.
Muhammad Abdulahi, 34, doesn't worry about power outages -- his home is completely off-grid, running on solar.
The Abuja resident drives a hybrid, whose extended range is useful for visiting family in Kaduna, considering there aren't any charging stations along the 200-kilometre route. 
He works in the renewable energy industry, but his main motivation for driving his hybrid is that it's cheaper -- something EV companies in Nigeria are capitalising on since the government removed fuel subsidies.
He's thought about buying a fully electric vehicle -- but until the country's infrastructure catches up, "I would keep it within the city".
nro/sn/rl

eurozone

ECB to hike rates as Mideast war pushes up inflation

BY SAM REEVES

  • Following that, the central bank delivered a series of cuts as inflation eased, but has held rates steady since June last year.
  • The European Central Bank is expected to hike interest rates this week for the first time in two and a half years as the Iran war energy shock stokes inflation.
  • Following that, the central bank delivered a series of cuts as inflation eased, but has held rates steady since June last year.
The European Central Bank is expected to hike interest rates this week for the first time in two and a half years as the Iran war energy shock stokes inflation.
The ECB has kept borrowing costs on hold for some time as eurozone price rises had been largely under control.
But the US-Israeli war against Iran and near total closure of the Strait of Hormuz has sharply pushed up global energy costs, feeding into higher inflation.
Consumer price rises in the 21 countries that use the euro accelerated to 3.2 percent in May, above the ECB's two-percent target.
Analysts expect the central bank's governing council to deliver a quarter percentage point increase to the key deposit rate, taking it from 2.00 to 2.25 percent, when it meets Thursday.
"Anything but a rate hike at the ECB meeting would be a big surprise," said ING economist Carsten Brzeski. 
Higher borrowing costs tend to dampen demand, helping to bring down inflation.
Other major central banks, including the US Federal Reserve and the Bank of England, have so far kept rates on hold as they assess the fallout from the conflict.
Thursday's move would mark the first time the Frankfurt-based institution has increased rates since September 2023, as it battled a historic surge in inflation unleashed by Russia's invasion of Ukraine.
Following that, the central bank delivered a series of cuts as inflation eased, but has held rates steady since June last year.

Laying the groundwork

Several ECB officials have been laying the groundwork for an increase in borrowing costs in their public remarks.
Chief economist Philip Lane signalled in late May a hike is ahead, with comments that he expects the ECB's inflation forecasts to be raised again at Thursday's meeting.
"There are several factors related to the Iran war that show that the macroeconomic outlook has gotten worse," he told Japanese business daily Nikkei.
But some economists have criticised the expected hike as it could constrict growth further in the sluggish eurozone by making it more costly for households and businesses to borrow.
This comes with the war already adding to headwinds as the single currency area is heavily dependent on energy imports.
The European Union last month slashed its growth forecast for the eurozone to 0.9 percent for 2026, down from a previous prediction of 1.2 percent.
Revised data released Friday showed the eurozone economy contracted 0.2 percent in the first quarter.

'Providing reassurance'

Chief economist at Allianz, Ludovic Subran, told AFP that raising borrowing costs would be a bid to "provide reassurance" that the ECB was keeping an eye on higher inflation.
But he added: "This hike is not necessary; the ECB could wait, especially since the slowdown in growth is clear."
ECB officials may however be nervous about waiting too long to act, especially after facing criticism for moving too slowly to tame the inflation surge in 2022. 
Investors will be watching ECB President Christine Lagarde's post rate-decision press conference closely for any clues about the path forward, although she is expected to stay tight-lipped. 
Most analysts stress the economic backdrop now is different to that in 2022; inflation was already elevated before the outbreak of the Ukraine war, and the global economy was struggling with post-pandemic supply chain woes. 
Given that, they don't expect Thursday's move to herald the start of an aggressive rate-hiking cycle.
Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, said he thought that the ECB would likely deliver another hike at its next meeting in July, but stop there.
The knock on-effects "of higher energy prices on inflation should be limited, meaning that the ECB's tightening cycle will be short," he said.
jpl-sr/jsk/rl

AI

Nvidia unveils AI infrastructure deals in South Korea

  • SK Telecom operates under the same parent company -- SK Group -- as SK hynix, which on Monday announced a "multi-year technology partnership" for memory chips with Nvidia.
  • US chip titan Nvidia on Monday announced a large-scale data centre construction project in South Korea with SK Telecom, among a raft of other business deals in the country.
  • SK Telecom operates under the same parent company -- SK Group -- as SK hynix, which on Monday announced a "multi-year technology partnership" for memory chips with Nvidia.
US chip titan Nvidia on Monday announced a large-scale data centre construction project in South Korea with SK Telecom, among a raft of other business deals in the country.
Nvidia, the world's most valuable company, also said it would work with chipmaker SK hynix to develop the advanced memory components that help run AI systems and are currently in short supply.
The tie-ups were unveiled after CEO Jensen Huang spent the weekend eating barbecue in Seoul with the country's tech leaders and appearing on a popular TV show.
SK Telecom and Nvidia plan "to build a gigawatt-scale AI Cloud in Korea... with the first AI factory planned to come online in 2027", a joint statement said.
The project "will support sovereign, physical and agentic AI services for enterprises and industries across Korea, with the vision to expand to greater Asia regions", it added.
No figure was given for how much the two companies will invest in the data centres.
SK Telecom operates under the same parent company -- SK Group -- as SK hynix, which on Monday announced a "multi-year technology partnership" for memory chips with Nvidia.
"The agreement supports supply for advanced memory, addressing the extended development cycles, advanced fabrication and capital investments to sustain the global buildout of AI factories," their statement said.
"Through this partnership, SK hynix will diversify into new markets Nvidia is creating -- spanning AI infrastructure, personal AI and physical AI," through co-developing memory components for Nvidia hardware, it said.
As governments and companies pour hundreds of billions of dollars into AI infrastructure, Nvidia's value has topped $5 trillion, more than the gross domestic product of Japan or India.

'Please make more'

The race to build AI data centres has created a global shortage of memory chips -- sending profits skyrocking for manufacturers like SK hynix and rival Samsung Electronics, whose workers' union recently agreed a deal with management on bonuses, averting a strike.
SK Group chair Chey Tae-won last week vowed to double production capacity of silicon wafers used to make memory chips.
But he also reiterated his prediction that shortages could persist until 2030, with chip factories taking at least three years to build.
Nvidia's Huang signed a memory chip display at the SK hynix booth at the Computex trade show in Taipei, writing: "Please make more".
When he landed in South Korea on Friday, Huang said he had "brought a lot of business to Korea", promising some new "surprises".
On Monday the California-based company also announced AI-related collaborations with tech giant Naver, and with Doosan Group on robotics.
Nvidia is best known for its GPUs, specialised computer chips originally designed to render video game graphics at high speed.
These chips have become the engine behind AI tools from chatbots to image generators and agents that can carry out tasks for users.
Nvidia last week unveiled a powerful laptop chip for Windows machines, staking its claim in the market for next-generation consumer PCs integrated with AI.
bur-kaf/dan

taxi

Europe opening up to self-driving taxis

BY LAURENCE BENHAMOU

  • Consulting firm BCG expects three million, including 850,000 in China and 350,000 in the United States, but only 120,000 in Europe.
  • Self-driving taxis, already booming in the United States and China, are emerging in Europe, with major companies launching trials this year in several capitals and the European Union set to step on the accelerator Monday.
  • Consulting firm BCG expects three million, including 850,000 in China and 350,000 in the United States, but only 120,000 in Europe.
Self-driving taxis, already booming in the United States and China, are emerging in Europe, with major companies launching trials this year in several capitals and the European Union set to step on the accelerator Monday.
In China and the United States, private fleets of "robotaxis" -- driverless cars loaded with sensors -- more than doubled in 2025 to reach 8,000 vehicles across more than two dozen major cities, according to a May report by the International Energy Agency (IEA).
Seven years behind schedule, trials will finally start across Europe over the coming months.
In France -- where no trials are scheduled for the moment -- planning high commissioner Clement Beaune recently criticised the EU for in his words "lagging behind".
European regulations say a "safety driver" must be on board the vehicle, their hands on their lap -- as was the case in the early days of testing in China and the United States.
The EU will now accelerate the process by adopting a "testbed", a simplified testing approach that will let companies avoid having to obtain approval on a country-by-country basis.
European transport ministers are set to make the decision official on Monday, Anne-Marie Idrac, the bloc's senior official for autonomous vehicle development, told AFP.

London, Munich, Madrid, Zagreb...

The first trial in Europe started on April 8 in Croatia, where Chinese company Pony.ai -- in partnership with US group Uber and Croatian startup Verne, backed by the automaker Rimac -- has been operating about 10 robotaxis in Zagreb.
In London, three groups will launch trials this year: robotaxi world leader Waymo, a subsidiary of Google parent Alphabet; its competitor Wayve, in partnership with Uber; and the Chinese company Apollo Go, a subsidiary of the tech giant Baidu.
In Madrid, the Chinese group WeRide has just announced a test with Uber.
Uber will also deploy robotaxis in Munich, using technology from the Chinese company Momenta.
In Switzerland, Apollo has partnered with Swiss Post for a pilot programme in the country's east.
Italian-French-US automaker Stellantis and Pony.ai are to conduct a test in Luxembourg.
Ride-hailing platforms Uber, Lyft and Bolt often partner in such projects.
Waymo claims it has around 3,000 driverless taxis spread across a dozen US cities, a similar number to Apollo, whose taxis are deployed in 27 Chinese cities and in Dubai.
Pony.ai has 1,700 vehicles and is targeting 3,500 by the end of 2026, compared to 1,000 for WeRide.
In China, ride-hailing platform Didi and carmaker SAIC operate robotaxis in several major cities.
In the United States, Tesla and Amazon-owned Zoox have established themselves in several cities.
By 2035, the IEA forecasts there will be between 700,000 and three million robotaxis in 40 to 80 major cities.
Consulting firm BCG expects three million, including 850,000 in China and 350,000 in the United States, but only 120,000 in Europe.
Goldman Sachs is betting on around six million vehicles for a $415-billion market.

Crossroads

In Europe, strict safety regulations and strong public-transport culture have put the brakes on robotaxi development, according to specialist Herve de Treglode.
But "London is ready, Madrid too. We may see commercial service by 2027," he said.
"In the US and China, they don't do six months of testing and then stop. They roll out in a neighbourhood, remove the safety driver, then launch commercial service with massive investments."
One potential snag: companies want to put driverless taxis in highly profitable, densely populated urban areas; many politicians want them in suburban and rural areas, to compensate for public-transport gaps.
"It's high time we came up with a strategy," Laurence Debrincat of the Paris regional transport authority said last month, pushing for the suburban-and-rural approach.
The founder of French ridesharing firm Ecov, Thomas Matagne, summed up the crossroads decision-makers are facing.
"Should we leave the sector to the market, at the risk of concentrating it in densely populated areas? Or should the government invest to roll out (robotaxis) in the general interest?"
leb/ved/cw/jhb/giv

results

More traffic, but halved profits for airlines in 2026: Industry forecast

  • According to IATA's calculations, net profit is expected to be $4.50 per passenger, half the 2025 figure.
  • Airlines expect to carry more passengers this year but earn only half as much profit as in 2025, as high fuel prices don't appear to be fully deterring travel, according to projections published Sunday.
  • According to IATA's calculations, net profit is expected to be $4.50 per passenger, half the 2025 figure.
Airlines expect to carry more passengers this year but earn only half as much profit as in 2025, as high fuel prices don't appear to be fully deterring travel, according to projections published Sunday.
The International Air Transport Association (IATA) predicted its 370 member airlines, which account for 85 percent of global air traffic, will carry 5.1 billion passengers this year.
That is up 2.4 percent from 2025, when passenger traffic was estimated to have reached 4.98 billion. The four billion mark was surpassed in 2023.
Asked by reporters about the impact of the war in the Middle East compared to the Covid-19 pandemic in 2020-2021, IATA Director General Willie Walsh replied: "I don't see this as a crisis." 
"You're looking at an industry that is forecasting growth," he said. "If you extract the impact of the Middle East, we're looking at growth of 3.5 percent."
This growth, however, will be accompanied by profitability only half as strong as last year's, while Middle Eastern airlines are expected to post losses.
"War-related disruptions in the Middle East and rising fuel costs have shifted the outlook for airlines to the worse," Walsh said in a statement. 
"Profits will shrink from $45 billion in 2025 to $23 billion this year. And margins will shrink from 4.2 percent to 2.0 percent," he said, referring to the net margin.
According to IATA's calculations, net profit is expected to be $4.50 per passenger, half the 2025 figure.
"Under the circumstances, that shows resilience. But it won't even buy you a hot dog at most of the FIFA World Cup venues and it does not leave much of a buffer should other costs or taxes start rising," Walsh said in the statement.

'Fuel price shock'

With fuel costs rising  -- and those increases being passed on in part through higher ticket prices -- the revenue of IATA member airlines is expected to grow nine percent this year, reaching $1.165 trillion.
"Airlines are bearing the brunt of the fuel price shock. While air fares are rising, airlines are still absorbing part of the hike in their bottom lines," the IATA said.
Profitability will vary across different regions of the world, according to the organization's projections.
Middle Eastern airlines, which have traditionally had access to an abundant supply of fuel, are expected to face a difficult year, with net margins projected to turn negative. 
For these airlines, including Emirates and Qatar Airways, "the immediate recovery path is likely to be driven more by pricing than by a rapid return of volumes," the IATA said.
European airlines are expected to become the most profitable (3.1 percent net margin), followed by those in North America (2.5 percent) and Asia-Pacific (2.1 percent).
Despite significant geopolitical uncertainty and the inability to predict the duration of the war, the IATA is not worried about demand. It noted that according to its calculations, the average airline ticket price had fallen 26 percent over the past 10 years.
hh/ved/tmt/lkd/mjf/des

merger

French mobile operators agree 20.4-bn-euro joint bid for SFR

BY KILIAN FICHOU

  • Under the memorandum of understanding they agreed, Bouygues Telecom would get the biggest share of SFR, 42 percent, including SFR's business-to-business operations, according to a statement.
  • Three of France's mobile operators have agreed a joint bid worth 20.4 billion euros ($23.5 billion) for rival SFR, owned by indebted French-Luxembourg telco group Altice.
  • Under the memorandum of understanding they agreed, Bouygues Telecom would get the biggest share of SFR, 42 percent, including SFR's business-to-business operations, according to a statement.
Three of France's mobile operators have agreed a joint bid worth 20.4 billion euros ($23.5 billion) for rival SFR, owned by indebted French-Luxembourg telco group Altice.
The deal, reached Saturday and subject to regulatory approval, is one of the biggest European telecoms deals in recent years, and represents a major shake-up in France's telecommunications sector.
The three operators behind it -- Bouygues Telecom, Free and Orange -- plan to break up SFR and divide its assets between them.
The key question is how regulators will view the acquisition, which would reduce the number of mobile operators in France from four to three. The European Commission has in past resisted consolidation, and France is a major market in the EU.
The move could reduce competition in the country, but also increase the investment capacity of the three remaining players in fibre, 5G and future networks.
Under the memorandum of understanding they agreed, Bouygues Telecom would get the biggest share of SFR, 42 percent, including SFR's business-to-business operations, according to a statement.
Free would get 31 percent and Orange 27 percent.
The headline bid figure includes debt.
The consortium, which entered into exclusive negotiations with SFR in April, hopes to have the transaction approved and completed by the second half of 2027.
It has promised to protect the jobs of SFR's 8,000 employees up to the beginning of 2029, though unions are concerned that they have not been told how many positions would migrate to the three other companies.
kf/mch/rmb/jhb

Israel

Dubai luxury hotels woo staycationers as tourists flee

BY SAHAR AL-ATTAR

  • The clientele is driven by hotels offering residents-only deals that have become a lifeline for Dubai's luxury tourism.
  • Once reserved for wealthy travellers, Dubai's top-notch hotels have become almost exclusively reliant on residents, drawn in by dizzying staycation offers as war drives tourists away. 
  • The clientele is driven by hotels offering residents-only deals that have become a lifeline for Dubai's luxury tourism.
Once reserved for wealthy travellers, Dubai's top-notch hotels have become almost exclusively reliant on residents, drawn in by dizzying staycation offers as war drives tourists away. 
On the Palm, an artificial island that has become synonymous with Dubai opulence, five-star hotels are busy on weekends and holidays once more, despite having been deserted by tourists.
The clientele is driven by hotels offering residents-only deals that have become a lifeline for Dubai's luxury tourism.
"I had never been in a hotel on the Palm because the prices were crazy," said Fadi Iskandarani, a doctor in his sixties who just spent his first weekend at a luxury resort on the tree-shaped island.
The Lebanese national, who has lived in Dubai for five years, decided to opt for a staycation after he saw that a hotel on the Palm had slashed its rates by a factor of four.
The hotel was not packed, with some floors closed because there were not enough guests.
But the pool-side area was filled with people, he said, who came to the Palm to enjoy a slice of luxury that had long been unattainable.
"Luxury in Dubai has become affordable for residents, before it was just for the rich, very rich people," he said.

A lifeline

With 19.5 million yearly tourists, Dubai is among the region's top destinations and was long seen as a playground for the world's rich and famous.
Its 827 hotels — including 173 five-star establishments — boasted an average occupancy rate of more than 80 percent.
But the war, which was triggered by US-Israeli strikes on Iran on February 28, shattered the Gulf's image as a haven of stability, with Tehran directing its fury at the oil-rich region.
The United Arab Emirates bore the brunt of Iran's missiles and drones, which hit hotels, including on the Palm, as well as its landmark Burj Al Arab resort. 
Since a shaky ceasefire came into effect on April 8 some tourists have trickled in, but hotels are mostly relying on local guests, said Michael Robinson, the general manager of the Anantara The Palm Dubai Resort.
With its overwater villas, artificial lagoons and Thai-inspired decor, the luxury hotel is packed with Dubai residents, who get special discounts of up to 50 percent.
On Fridays and Saturdays, hotel occupancy sits between 70 and 90 percent, he said.
Sunday through to Thursday, it has an average occupancy of around 20 to 30 percent.
This new clientele has offered hotels a lifeline, allowing Anantara The Palm to remain "cash positive" without resorting to layoffs.

'No return'

But staycations are not enough on the long term.
"Your staycation business is essentially one to two nights and that's it... Whereas previously, the international market, they might come for one week," Robinson said.
Should tourists stay away come July, when schools are closed and many families return home for the summer, "there won't be as many people wishing to do staycations", he said.
Some hotels, including Burj Al Arab, have temporarily closed for renovations as business slowed.
Others have cut staff or salaries, particularly hotels in downtown Dubai, which are dependent on business tourism.
An employee at one Dubai hotel, who spoke on condition of anonymity, said his salary had been cut by up to 40 percent during and after the war, before it returned to normal in recent weeks.
Another employee at a hotel in neighbouring Abu Dhabi said he was put on unpaid leave for two months but that he is set to return to work soon with his salary restored.
Talks to end the war have dragged on for two months and sporadic strikes still punctuate life in the Gulf, straining tourism.
Yet Robinson remains hopeful.
"If we see some form of resolution in the next month or so... I think you'll see tourists come back faster than everyone anticipates," he said.
saa-aya/dc/cms

defense

German carmakers weigh China, defence tie-ups for idle plants

BY SAM REEVES AND PAUL CASSEDANNE

  • One solution is to open up factories for Chinese manufacturers to produce cars in Europe as they seek to get around EU tariffs on EVs, a step recently taken by Stellantis which owns Jeep and Fiat.
  • Germany's beleaguered carmakers are desperately seeking solutions for their under-used factories, with speculation swirling that Chinese manufacturers or weapons makers could move in.
  • One solution is to open up factories for Chinese manufacturers to produce cars in Europe as they seek to get around EU tariffs on EVs, a step recently taken by Stellantis which owns Jeep and Fiat.
Germany's beleaguered carmakers are desperately seeking solutions for their under-used factories, with speculation swirling that Chinese manufacturers or weapons makers could move in.
Across Europe, carmakers are in trouble due to growing Chinese competition, weak demand and a choppy transition to electric vehicles (EVs), leaving many plants operating way below capacity.
One solution is to open up factories for Chinese manufacturers to produce cars in Europe as they seek to get around EU tariffs on EVs, a step recently taken by Stellantis which owns Jeep and Fiat.
Chinese brands, including BYD, MG and Chery, are gaining ground in Europe fast and now make up around nine percent of the region's overall sales, according to consulting firm Dataforce.
Germany's Volkswagen -- Europe's biggest automaker -- said in April it is also open to the idea of "partnering" with Chinese manufacturers at its plants. 
VW, in the process of slashing thousands of jobs as profits and sales suffer, is seeking to reduce global production capacities by around one million vehicles -- half in China and half elsewhere, particularly Europe.
Officials in regions hosting Volkswagen plants have welcomed the idea of bringing VW's joint venture partners from China onto the production lines of German factories.

'Securing the future'

Dirk Panter -- economy minister of the state of Saxony, whose VW plant in Zwickau faces an uncertain future -- notes that other Chinese manufacturers are starting to produce cars around Europe, including through such tie-ups.
"To secure the future of the automotive industry in Saxony and in Germany, it is essential not to ignore this reality," he told AFP.
The Handelsblatt financial daily has reported that VW -- a 10-brand manufacturer, whose models range from Audi to Seat and Skoda -- already held talks in 2024 with Chinese carmakers but they ended with no result.
VW has more recently sought to dampen talk of imminent deals, with a spokesman telling AFP that "there are currently no plans or discussions regarding the production of Chinese vehicles in the German plants of the Volkswagen Group".
While some analysts believe there could be a reluctance to give Chinese carmakers easier access to Europe, others think it is the Chinese firms themselves that are hesitant due to high costs in Germany.
"I think that the hesitation on the part of the Chinese manufacturers is very great," Frank Schwope, an auto industry consultant and lecturer at the FHM Berlin university, told AFP. 
"The offer would have to be very attractive."
Stellantis's announcements so far have mainly focused on Spain and France, where costs are lower.

Switch to armoured vehicles?

German manufacturers are also said to be considering opening up or even selling plants to defence companies, which are expanding rapidly as Germany and other European countries rearm.
Der Spiegel recently reported that French-German tank and weapons maker KNDS is in talks to take over a Mercedes-Benz plant at Ludwigsfelde south of Berlin that produces vans and convert it to make armoured personnel carriers.
A KNDS spokesman would not confirm the report, telling AFP only that it was "seeking suitable partner companies for the planned ramp-up in the defence sector".
Mercedes told AFP that "our goal is to develop a future-ready solution for Ludwigsfelde".
Volkswagen has confirmed it is in talks with defence companies about taking over one of its smaller plants in the city of Osnabrueck, where production is due to end as part of its cost-cutting drive.
Reports say the group has held talks with Israel's Rafael Advanced Defence Systems about making components there for the Iron Dome air defence system, including heavy-duty trucks and electricity generators but not the projectiles themselves.
Discussions have also reportedly taken place with KNDS about the factory.
Still, entering the defence sector could prove controversial for Volkswagen. 
The group was founded when the Nazis were in power, produced military equipment for Germany during World War II and used forced labour.
"In historical terms, it's not an easy issue for Volkswagen to share locations with defence companies," Stefan Bratzel, an auto industry expert at the Center of Automotive Management in Germany, told AFP.
pca-sr/fz/rl

luxury

Luxury sector seeks to recover its cachet

BY MARIE-MORGANE LE MOEL

  • - Desirability, quality, experiences - Kering's new CEO Luca de Meo was quite clear in his presentation of the group's turnaround strategy last month that consolidation was coming, but he also signalled a back-to-basics approach.
  • Faced with a painful slowdown in recent years, the luxury sector is seeking to recover its mojo by juggling a back-to-basics approach with finding new ways to connect to clients.
  • - Desirability, quality, experiences - Kering's new CEO Luca de Meo was quite clear in his presentation of the group's turnaround strategy last month that consolidation was coming, but he also signalled a back-to-basics approach.
Faced with a painful slowdown in recent years, the luxury sector is seeking to recover its mojo by juggling a back-to-basics approach with finding new ways to connect to clients.
The financial performances of the heavyweights -- profits amputated last year at LVMH and Kering, while Burberry posted a loss for its 2024-2025 financial year -- testify to the fact the market has undergone a change.
The causes are multiple, including the slowing Chinese market, aspirational customers becoming more cost-conscious, and concerns about quality.
"Following the Covid pandemic the luxury market was boosted by binge buying," said Eric Briones, a cofounder of the Paris School of Luxury who recently published a book about the transformation of the sector.
"And when the luxury sector was confronted with that strong demand, the artisanal model came under pressure," he said, pointing to recent outsourcing scandals in Italy.

Luxury overexposed

A major part of the luxury cachet is that products are made with superior materials by skilled artisans using traditional methods, which naturally limits production.
Italian police have been investigating major luxury brands for two years over work allegedly outsourced to poorly paid Chinese workers and grim labour conditions.
The post-Covid boom in demand was accompanied by price hikes of up to 50 percent for some labels, "without improvements in quality, and sometimes a drop in quality", Briones said.
Not only prices increased. Volumes did too.
"It is a fundamental question," said Christophe Cais, chief executive at CXG, a consultancy that works with premium and luxury brands about customer experiences.
"How many bags can you sell globally without becoming overexposed? Exclusivity is desirable and at the same time you want sales volume, so at what point does volume undermine exclusivity?" he said.
According to the consultancy Bain & Company, the luxury market lost 20 million clients between 2024 and 2025, after having lost 50 million over the previous two years.

Consolidation

Following years of economic and geographic growth for the big luxury groups, analysts say the time has come to prune.
"A phase of recentring and bringing some coherence to portfolios is underway," said Lea Hubsch at Kearney.
"That may include stepping back or finding another partner for certain brands that aren't so much part of the DNA" of a group, she added.
LVMH, the world's largest luxury conglomerate, recently sold off US label Marc Jacobs after holding it for three decades.
In January, it sold the DFS duty free shops' activities in China.
Kering, another luxury group based in France that is undergoing a major shakeup, sold off its beauty division to L'Oreal for four billion euros ($4.7 billion)
"This consolidation trend is sure to continue as conglomerates clean out underperforming or strategically less important divisions, focusing on core operations," CXG said in a recent report. 
That will provide opportunities for other companies to snap brands and create new combinations.
Italy's Versace bought its home turf rival Prada last year for 1.25 billion euros.
Other deals are expected: Giorgio Armani indicated in his will that he wanted his fashion house to eventually join a luxury group like LVMH or L'Oreal.

Desirability, quality, experiences

Kering's new CEO Luca de Meo was quite clear in his presentation of the group's turnaround strategy last month that consolidation was coming, but he also signalled a back-to-basics approach.
He called for an upgrade in quality and efforts to restore the desirability of its leading brand Gucci, which fell victim to overexposure thanks to streetwear.
"Our priority is to make Gucci unmissable again," de Meo said.
"In one second, you must know it's Gucci -- and it doesn't mean covering the world with GG."
Analysts say that in addition to returning to an emphasis on craftmanship and quality, the industry is tuning into demand for experiences and tap into the wellness trend with customer service that rivals that of luxury hotels.
"Desire has shifted to 'experiences': beauty, hospitality, transformative luxury," Briones said.
lem/rl/js/cms

OPEC

As OPEC+ meets, Iran war hobbles power to shape oil market

BY POL-MALO LE BRIS

  • Ministers from the 21 member states of OPEC+, the main oil producing nations and their allies, are holding their quarterly meeting online.
  • OPEC+ ministers meet Sunday to weigh higher production quotas in a bid to cap oil prices that have surged since the Iran war effectively choked off Gulf crude shipments.
  • Ministers from the 21 member states of OPEC+, the main oil producing nations and their allies, are holding their quarterly meeting online.
OPEC+ ministers meet Sunday to weigh higher production quotas in a bid to cap oil prices that have surged since the Iran war effectively choked off Gulf crude shipments.
But even if the cartel members vow to ramp up output by thousands of barrels per day, analysts say geopolitical realities mean they probably won't move the needle on prices.
With the crucial Strait of Hormuz shut since US and Israeli attacks on Iran in late February, oil prices have nearly doubled, igniting inflation pressures worldwide.
Ministers from the 21 member states of OPEC+, the main oil producing nations and their allies, are holding their quarterly meeting online.
The group is likely to beef up its production quotas by "188,000 barrels a day", said Jorge Leon, analyst at Rystad Energy, similar to recent increases. 
But in reality, only seven members -- Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman -- have the capacity to do so.

Dwindling supply

Tehran's threats of retaliatory attacks to US and Israeli strikes have virtually blocked the vital Strait of Hormuz, through which roughly a fifth of global oil and gas supplies normally pass.
That is equivalent to about 20 million barrels a day. 
But with key Gulf producers shut out of the global market, pledges to raise output in a bid to ease spiralling prices are unlikely to sway traders. 
"Any announced production increases or changes to output targets will have limited practical value," said Ole Hansen, a commodities analyst at Saxo Bank.
"There is very little OPEC can do," he told AFP.
OPEC+ itself says daily production has plummeted to just 33 million barrels a day as tankers remain stuck, compared to nearly 43 million before the conflict.
A US blockade on Iranian ports means "it will be even less than that" in reality, said Homayoun Falakshahi, head of crude oil analysis at data firm Kpler.

UAE slams the door

The United Arab Emirates' recent decision to quit OPEC further saps away at the cartel's influence, given its huge excess production capacity.
And Abu Dhabi has made clear it wants to boost output.
"They don't want to be dictated to, they want to maximise their revenues," said Lawrence Haar, a lecturer in finance at the University of Brighton in England. 
And the cartel risks seeing other countries follow the UAE's example.
"If Iraq were to leave, it could mark the end of OPEC+," Falakshahi said.
Saudi Arabia, by far the cartel's most influential member, "is going to do what it takes to stop anyone else from leaving," Falakshahi predicted.
That could translate into more flexible output quotas or decreased penalties for any excess production.
But "for now, the compensation framework has effectively become irrelevant due to widespread production shut-ins," Hansen said.
As a result, the Iran war has largely neutralised the cartel's stated mission "to secure an efficient, economic and regular supply of petroleum to consumers, and a steady income to producers". 
For Falakshahi, the only factor limiting further oil price spikes at the moment is China, "which is buying less oil than normal" by tapping into its vast strategic reserves.
pml/oaa/js/rl/cms

games

US gamers getting older as industry reports growth

BY ALEX PIGMAN

  • "It mirrors in large part the demographics of the nation," ESA president and chief executive Stanley Pierre-Louis told AFP, noting that more than half of all players in the United States are now 35 or older.
  • Video games are having a moment in the United States -- but the players are getting older.
  • "It mirrors in large part the demographics of the nation," ESA president and chief executive Stanley Pierre-Louis told AFP, noting that more than half of all players in the United States are now 35 or older.
Video games are having a moment in the United States -- but the players are getting older.
The average American video game player is now 37 years old -- up from 29 about two decades ago -- as the industry reports activity climbing back to their highest levels since the pandemic-era boom, a new report reveals.
The findings, from the Entertainment Software Association's annual Essential Facts report, challenge enduring stereotypes about who plays games while underscoring the industry's recovery from a post-pandemic slowdown.
"It mirrors in large part the demographics of the nation," ESA president and chief executive Stanley Pierre-Louis told AFP, noting that more than half of all players in the United States are now 35 or older.
The steadily rising average player age reflects both the aging of a generation that grew up with consoles and a wave of older adults who have since picked up the hobby.
The gender split also defies the stereotypical image of the young male gamer. 
Men account for 53 percent of players and women 46 percent, with women actually outnumbering men among Baby Boomers, the ESA said.
Overall, 67 percent of Americans play video games for at least an hour a week -- a figure broad enough to encompass everything from blockbuster console titles to casual mobile games like Wordle.
Revenues -- totaling $60.7 billion in 2025 -- have rebounded to their highest point since 2021, when pandemic lockdowns drove an outsized surge in both players and spending. 
After a pullback as restrictions lifted, the industry has returned to growth, Pierre-Louis said.

Self-regulation

As lawmakers in the United States and Europe weigh tougher regulations on screen time, age verification and in-game spending, Pierre-Louis argued the US gaming industry's track record of voluntary self-regulation sets it apart.
That voluntary framework, he said, has given the industry credibility with US lawmakers that social media platforms lack.
Those platforms, he noted, "traditionally didn't have the same level of parental tools that video games had" -- a gap that has fueled the regulatory backlash now engulfing companies such as Meta and TikTok.
"Safety is not a competitive issue in our industry -- it's one of collaboration," Pierre-Louis said. 
"Being on the ecosystem and staying on the ecosystem means you feel like you're in a trusted environment."

'Satisfaction'

The ESA was founded in 1994 partly in response to congressional concern over violent content in games, and almost immediately established the Entertainment Software Rating Board, which assigns age ratings from E for Everyone to M for Mature for titles sold in North America. 
The system also flags details about online interactions and in-game purchases.
Major console platforms including Xbox, PlayStation and Nintendo Switch now offer parental control tools that allow families to restrict what games children can access, cap spending and limit screen time -- capabilities Pierre-Louis said have been refined over decades in direct response to parent and policymaker feedback.
The argument, however, faces increasing pushback in the United States.
The gaming industry is facing growing scrutiny as platforms expand into social media-like features, with ESA member Roblox especially under pressure over child safety issues with regulators and in courts.
Legislative proposals range from mandatory age verification for games with chat features to bills that would impose national safety standards.
For the industry, such legislation should not be necessary.
"It's a matter of how do we get everyone up to speed on what the video game industry has been doing, so that there's satisfaction around the practices and trust and safety mechanisms we have in place," Pierre-Louis said.
arp/sst

politics

Albanians step up protests over Trump-linked property development

  • - Birds threatened - Thousands of protesters have been gathering every evening for nearly a week in Tirana to denounce what they view as the planned destruction of entire sections of the Vjosa-Narta Nature Reserve and its conversion into a luxury tourist destination.
  • Thousands of people rallied Saturday in the Albanian capital and hundreds in a protected nature reserve on the country's coast to protest plans for a luxury beach resort by a company linked to the Trump family.
  • - Birds threatened - Thousands of protesters have been gathering every evening for nearly a week in Tirana to denounce what they view as the planned destruction of entire sections of the Vjosa-Narta Nature Reserve and its conversion into a luxury tourist destination.
Thousands of people rallied Saturday in the Albanian capital and hundreds in a protected nature reserve on the country's coast to protest plans for a luxury beach resort by a company linked to the Trump family.
Answering a call from environmental organisations, activists from across the country and local residents flocked at midday to the Vjosa-Narta lagoon, around 150 kilometres (90 miles) southwest of the capital Tirana.
It was the latest in a series of protests against a project whose cost is estimated at around four billion euros ($4.6 billion), linked to US President Donald Trump's daughter Ivanka Trump and her husband Jared Kushner.
"The whole of this marine area is a protected zone. To destroy it would be fatal for this region's biodiversity," one protester, Emiljona Puja, a finance worker, told AFP.
Protesters gathered on a sandy beach facing azure waters, some waving red Albanian flags, others carrying inflatable flamingos -- the movement's symbol -- while chanting: "Cancel the project!"
Later in central Tirana, crowds staged the biggest demonstration yet against the project, marching to the government headquarters with placards reading: "Ivanka go home" and "Albania is not for sale," AFP reporters saw.
Unrest broke out in the reserve during an initial protest in late May against preparatory onsite work during installation of barbed wire to cordon off the area. The barbed wire has since been removed.
People rushed there after seeing videos on social media showing construction work and bulldozers on the beach. Those machines were not there on Saturday either.
AFP journalists observed concrete foundations for a fence on the ground that had also been removed.

Birds threatened

Thousands of protesters have been gathering every evening for nearly a week in Tirana to denounce what they view as the planned destruction of entire sections of the Vjosa-Narta Nature Reserve and its conversion into a luxury tourist destination.
According to the plan, developers also hope to transform the uninhabited island of Sazan -- once a secret communist military base -- into a glitzy tourist destination.
The lagoon on the southern Adriatic coast is home to many migratory birds, including flamingos.
"This is a problem not only regarding the transparency of this whole process, but also everything has happened with a complete disregard of the environmental importance of this area," said Denisa Kasa, of the Albanian Association for the Protection of the Environment (PPNEA).
"This area is one of the most important biodiversity hotspots in the Mediterranean," added Kasa.
Prime Minister Edi Rama on Friday downplayed the protests, insisting there was "no reason to worry", and added the project had yet to be approved.
He insisted that "top" world experts were involved in the plan and that the aim was "to make something unique".
bme-rus/rlp/jhb

rights

Turkey probes billionaire businessman, 95 over Kurdish woman joke

  • The joke, which revolved around a misunderstanding between a Kurdish woman and a doctor, also drew the ire of the pro-Kurdish opposition DEM party which said it had filed a complaint against him. 
  • Prosecutors on Saturday opened a probe into a 95-year-old billionaire and honorary head of Koc Holdings, Turkey's biggest conglomerate, over a joke about a Kurdish woman widely denounced as sexist and racist. 
  • The joke, which revolved around a misunderstanding between a Kurdish woman and a doctor, also drew the ire of the pro-Kurdish opposition DEM party which said it had filed a complaint against him. 
Prosecutors on Saturday opened a probe into a 95-year-old billionaire and honorary head of Koc Holdings, Turkey's biggest conglomerate, over a joke about a Kurdish woman widely denounced as sexist and racist. 
The blunder was made by Rahmi Koc at the opening of a hospital in the western resort city of Izmir late Friday, but when the footage started circulating online it caused a backlash. 
The joke, which revolved around a misunderstanding between a Kurdish woman and a doctor, also drew the ire of the pro-Kurdish opposition DEM party which said it had filed a complaint against him. 
The probe was announced by Justice Minister Akin Gurlek on X who said it was over "expressions deemed to target women and citizens of a specific ethnic identity" although he did not publicly name Koc. 
"Uttering such words under the guise of a 'joke' or humour does not mitigate this discourtesy displayed toward our women and a specific segment of our society," he wrote. 
Also on X, DEM said it had filed a criminal complaint against Koc "for making sexist remarks about Kurdish women, on the grounds of 'public incitement to hatred and hostility', 'insult' and 'hate and discrimination'."
In response to the backlash, Koc issued a brief apology published by Koc Holding on X, saying his remarks "were not intended to target any particular group". 
"I would like to sincerely express my regret," he wrote.
Koc stepped down as chairman of Koc Holding in 2003, handing the reins to his eldest son, Mustafa Koc who died suddenly of a heart attack in 2016. He was 55. 
Koc Holding is a family-run conglomerate set up in the 1920s whose main sectors are energy, automotive, durable consumer goods and finance, although it is also involved in technology, food, retail, tourism, agriculture and shipbuilding. 
Family-run conglomerates are the mainstays of Turkey's economy with interests in every sector, with Koc Holding accounting for approximately seven percent of Turkey’s GDP and around eight percent of Turkish exports, it says on its website. 
Forbes magazine this year estimated that Rahmi Koc has a fortune of $2.4 billion.
hmw/rmb

leisure

Airlines gather in Rio to chart course as horizon darkens

BY HUGUES HONORÉ

  • - Hard choices  - Walsh said in late April that demand for summer travel had held up well despite the fare increases, but airlines are nervously eyeing the prospects for oil prices as the Mideast war drags on.
  • Airline executives descend on Rio this weekend to weigh the prospects for an industry grappling with geopolitical turbulence, soaring fuel costs and travellers wary of chasing sky-high ticket prices.
  • - Hard choices  - Walsh said in late April that demand for summer travel had held up well despite the fare increases, but airlines are nervously eyeing the prospects for oil prices as the Mideast war drags on.
Airline executives descend on Rio this weekend to weigh the prospects for an industry grappling with geopolitical turbulence, soaring fuel costs and travellers wary of chasing sky-high ticket prices.
The annual gathering of the International Air Transport Association (IATA) brings together 370 airlines representing 85 percent of global passenger traffic, just as the Mideast war is roiling the industry.
Carriers were largely enjoying clear skies before the US and Israeli strikes on Iran in February, which resulted in a blockade of Gulf oil shipments that saw jet fuel prices nearly double.
According to the IATA, average prices now stand at around $142 a barrel, forcing carriers to make hard choices on ticket prices, the number of flights per destination -- and their future development plans.
"Airfares are inevitably rising as the price of oil increases, but airlines are having to balance their increased costs against demand," said John Grant of the consulting firm OAG Aviation.
In April, passenger demand fell 3.4 percent from a year earlier, the IATA said, the first decline since the end of the Covid pandemic.
"Forward schedule data is showing a reduced offering in the coming months, indicating that airlines are balancing high fuel costs and weaker demand," IATA director general Willie Walsh said in a statement. 
Mideast airlines in particular have slashed flights as Gulf airports were shut during the latest Mideast conflict, exposing the risk of a "hub" strategy that relies on streams of passengers to and from the Americas, Europe and Asia.

Hard choices  

Walsh said in late April that demand for summer travel had held up well despite the fare increases, but airlines are nervously eyeing the prospects for oil prices as the Mideast war drags on.
Warnings about jet fuel shortages have also raised alarms, as carriers might have to cancel flights or drop less profitable routes if costs rise further.
Higher ticket prices and fuel surcharges are also prompting many travellers to change holiday plans for the peak summer season in the northern hemisphere, often choosing to save money by staying closer to home. 
"The slowdown is no longer isolated to a specific region, and is now visible in other regions such as Western Europe," said analysts at the consulting group Cirium.
But Walsh has sought to allay concerns, saying that airlines could withstand the fuel price shock. 
"In 2011, 2012, 2013, the jet fuel prices were over $130 a barrel, and the industry was profitable," he told a press conference in Singapore in April. 
Airlines also realise that keeping fares high for too long will discourage many people from flying, and some have even unveiled special offers since the Mideast war erupted.
No-frills carrier Ryanair, which is not an IATA member, announced a series of sales this spring, while Air France-KLM wooed clients by offering for the first time no-charge ticket changes for flights out of France or the Netherlands. 
But not every airline can keep fares in check by absorbing the higher fuel costs. 
"Midsize carriers with limited cash reserves are the most exposed I think," said Grant. "And that doesn't matter if you are a legacy or low-cost airline."
hh/js/rl/ane

Global Edition

Tech sell-off, rate-hike fears drive Wall Street plunge

  • "However, if policymakers even start talking about rate hikes or taking a more hawkish posture, that could throw cold water on the recent stock market surge," Kenwell said.
  • Wall Street's key indices closed heavily in the red on Friday, hit by a massive sell-off in technology stocks following a recent surge driven by AI investment, and fears of US Fed rate hikes on the horizon.
  • "However, if policymakers even start talking about rate hikes or taking a more hawkish posture, that could throw cold water on the recent stock market surge," Kenwell said.
Wall Street's key indices closed heavily in the red on Friday, hit by a massive sell-off in technology stocks following a recent surge driven by AI investment, and fears of US Fed rate hikes on the horizon.
Oil prices retreated despite continued clashes in Lebanon, with no apparent progress in reaching a US-Iran peace deal that would open up energy exports through the Strait of Hormuz.
Data showed the US economy added 172,000 jobs in May, far more than the 80,000 expected by economists polled by Dow Jones Newswires and The Wall Street Journal.
Figures for the last two months were also revised higher by 93,000 indicating the US economy is resilient as rising energy costs from the Middle East war begin to hit consumers and businesses.
While the figures are "good news for the US economy, borrowers and investors may feel differently," said eToro analyst Bret Kenwell.
In a best scenario, he said, a rapid resolution of the conflict that allows oil prices to drop would allow the US Federal Reserve to ride out the recent spike in inflation.
"However, if policymakers even start talking about rate hikes or taking a more hawkish posture, that could throw cold water on the recent stock market surge," Kenwell said.
Yields on US Treasury bonds rose in response to the data as investors anticipated higher rates to come from the Fed.
The dollar rose against main rivals as well.
"This report adds to pressure on the Fed to drop its easing bias, but it may not trigger a rush to price in rate hikes anytime soon," said Kathleen Brooks at XTB.
Wall Street's main indices all saw significant losses, with the Nasdaq plunging more than four percent, the S&P 500 more than two percent and the Dow more than one percent.
After pushing equity markets to record highs this year, technology firms are facing selling pressure on concerns that the eye-watering sums pumped into AI may have been overdone.
The so-called "Magnificent Seven," which includes AI players Nvidia, Google-parent Alphabet and Meta, closed lower.
Meta's stock was also weighed down by reports the company was considering a stock offering to raise tens of billions of dollars in funding for its AI push.
US chipmaker Broadcom also sparked concern this week after its revenue forecast for the third quarter undershot expectations.
Broadcom's shares fell almost eight percent on Friday, and those of rival Micron Technology dropped more than 13 percent.
"Everyone's realizing that perhaps this rally off the March lows has run its course for the time being," said Briefing.com's Patrick O'Hare. 
"So you have sort of some blanket selling today by plenty of investors who ran with this thing as long as they could run with it."
Tech tremors also hit Asian markets.
South Korea's tech-heavy stock market tanked almost seven percent at one point Friday, before ending down 5.5 percent. 
The Nikkei in Tokyo was off more than one percent, matching Thursday's retreat.
The losses come as investors anticipate the coming IPO by Elon Musk's SpaceX, which is aiming to raise $75 billion in the world's biggest initial public offering. 
In Europe, both Frankfurt and Paris ended lower after official data showed a contraction in eurozone economic growth in the first quarter, which was dragged down by a sharp decline in Irish output due to accounting measures of multinationals.

Key figures at around 2000 GMT

Brent North Sea Crude: DOWN 2.0 percent at $93.09 a barrel
West Texas Intermediate: DOWN 2.7 percent at $90.54 a barrel
New York - DOW: DOWN 1.4 percent at 50,866.78 points (close)
New York - S&P 500: DOWN 2.6 percent at 7,383.74 (close)
New York - Nasdaq: DOWN 4.2 percent at 25,709.43 (close)
London - FTSE 100: UP less than 0.1 percent at 10,368.05 (close)
Paris - CAC 40: DOWN 0.3 percent at 8,218.24 (close)
Frankfurt - DAX: DOWN 0.8 percent at 24,759.05 (close)
Tokyo - Nikkei 225: DOWN 1.3 percent at 66,588.12 (close)
Hong Kong - Hang Seng Index: DOWN 1.2 percent at 24,961.95 (close)
Shanghai - Composite: DOWN 0.7 percent at 4,027.74 (close)
Euro/dollar: DOWN at $1.1520 from $1.1610 on Thursday
Pound/dollar: DOWN at $1.3333 from $1.3423
Dollar/yen: UP at 160.23 yen from 160.03 yen
Euro/pound: DOWN at 86.41 pence from 86.50 pence
burs-bcp-rl-aha/des

investments

SpaceX signs pre-IPO deal to provide AI computing to Google

  • The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.
  • SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing.
  • The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.
SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing.
The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models.
The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then. 
The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract.
The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.
The facilities were originally built to power Musk's rival AI venture, xAI.
SpaceX's IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion.
"This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP.
The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice."
The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at $1.8 trillion.
That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.
arp/ksb

conflict

Putin rules out meeting Zelensky and vows to pursue war goals

  • He simply doesn't want to end the war," he said after Putin rejected the call.
  • Russian President Vladimir Putin on Friday ruled out meeting his Ukrainian counterpart any time soon, a day after Volodymyr Zelensky called for a sit-down between the leaders to end the four-year war.
  • He simply doesn't want to end the war," he said after Putin rejected the call.
Russian President Vladimir Putin on Friday ruled out meeting his Ukrainian counterpart any time soon, a day after Volodymyr Zelensky called for a sit-down between the leaders to end the four-year war.
Speaking at an economic forum in his home city of Saint Petersburg, Putin said he saw "no point" in meeting Zelensky until a possible peace deal had been agreed. Zelensky hit back saying the Russian leader was "weak" and "choosing war again".
Putin also vowed to press on with Russia's military offensive until its war goals had been achieved.
Russia has demanded control of Ukraine's eastern Donbas region as well as sweeping political and military restrictions on its neighbour.
Kyiv and its allies have ruled the conditions as tantamount to capitulation and US-brokered peace talks have failed to bring the sides closer.
Zelensky on Thursday issued a rare direct appeal to the Russian leader.
"Ukraine proposes ending this war through direct engagement between us -- and you. I am proposing a meeting," Zelensky said in an open letter. "I propose to set a clear date for such a meeting."
Putin refused however.
"I see no point in meeting. It only makes sense for the Ukrainian side to stop the advance of our armed forces. That's it. And we need agreements," Putin told Russia's flagship economic forum.
"Let the experts work, develop some solutions, and then we can meet," Putin added.
Hundreds of thousands have been killed since Putin launched his full-scale offensive -- which he calls a "special military operation" -- in February 2022.
Swathes of eastern and southern Ukraine have been destroyed and millions forced from their homes in the four-year campaign Moscow hoped would have toppled Kyiv within a matter of days.
Russia staged new deadly attacks Friday, with Ukrainian authorities saying four civilians were killed and seven wounded in Russian strikes on Mykolaivka and Druzhkivka in the Donetsk region.
- 'Some day' - 
Zelensky says a summit is needed to thrash out the key issues of a peace deal.
"Unfortunately, the Russian side is choosing war again -- everyone heard today's response. A weak response. He simply doesn't want to end the war," he said after Putin rejected the call.
His proposal had won support from key allies, including US President Donald Trump and French President Emmanuel Macron.
Zelensky is to meet Macron, Britain's Prime Minister Keir Starmer and Germany's Chancellor Friedrich Merz in London on Sunday in a bid to inject fresh momentum into diplomatic efforts.
Putin said the conflict would only stop when Russia's goals are met.
"Military actions will end some day, we assume. Without a doubt, they will end once we have achieved the goals we have set for ourselves," Putin told the audience of business leaders and visiting dignitaries from Russia's allies.
The ex-KGB spy also rejected claims that the Russian economy was falling apart under the high costs of the war.
The Kremlin's offensive has put Russia's finances under immense strain, with rising prices, tax hikes and two-decade-high borrowing costs hitting many citizens hard.
"We, of course, hear criticism from all sides that everything has collapsed," Putin said.
"We have descended to the same level at which eurozone countries have been living through for the past few years," the Russian leader said, adding that Russia was pursuing a "sovereign" economy.
Asked by AFP about Russia's economic woes, Putin had on Thursday channelled the US writer Mark Twain.
"Rumours of my death have been greatly exaggerated," he said, rejecting the idea that Russia was on the brink of a full-blown crisis.

Russian Davos

Putin spoke just two days after the opening of SPIEF -- once dubbed the "Russian Davos" -- was overshadowed by brazen Ukrainian drone strikes on Saint Petersburg. 
Kyiv has intensified its attacks on Russia's vital energy infrastructure -- oil depots, refineries, exporting hubs -- which are threatening to dent Moscow's most important income stream.
In the early years of Putin's rule, Western investors keen to make a buck in Russia's chaotic and fast-growing economy would gather at the SPIEF to strike deals and hobnob with the Russian elite.
Now drones and machine guns are out on display.
AFP reporters saw Russian-made humanoid robots walking the venue halls, where stands promoting investment into regions annexed from Ukraine were prominent.
The guests included former Hollywood star turned Putin-backer Steven Seagal, American conspiracy theorist Candace Owens, Trump's ballroom commissioner and MPs from the far-right Alternative for Germany party.
bur/tw/jxb