diplomacy

Why does Brazil's PIX payment system bother Donald Trump?

BY JUAN SEBASTIAN SERRANO

  • Brazil believes that Washington sees PIX and other such payment systems as a potential threat to the international dominance of the dollar.
  • Whether buying a chilled coconut at the beach or paying rent, Brazil's free PIX system has become the dominant way of making payments in Latin America's largest economy, with just a smartphone.
  • Brazil believes that Washington sees PIX and other such payment systems as a potential threat to the international dominance of the dollar.
Whether buying a chilled coconut at the beach or paying rent, Brazil's free PIX system has become the dominant way of making payments in Latin America's largest economy, with just a smartphone.
US President Donald Trump does not like it one bit.
The payment system, launched in 2020 by the central bank, has become a bone of contention between Washington and the government of President Luiz Inacio Lula da Silva, who is seeking re-election in three months.
The United States argues that PIX amounts to unfair competition and hurts US credit card companies.
"You don't have to pay any fees for PIX; with banks, you have to pay credit card fees, annual fees, banking fees, fees for this and that," Paulo Ricardo Conceicao told AFP at his drinks kiosk on Copacabana beach.
The perceived unfairness of the PIX system and other alleged discriminatory trade practices has led the US to threaten a 25 percent tariff on some Brazilian exports.
A decision on this measure is expected in the coming days.

What is PIX?

According to the central bank, PIX accounts for 54 percent of all payment transactions in Brazil, with millions of transfers per day -- just six years after its launch.
Major financial institutions are obliged to offer the service to their clients, who simply open their banking app and send a payment in seconds using an identifier such as an identity number, key, or email address.
Payments can be even easier using a merchant's QR code.
PIX "successfully reached millions of Brazilians who were previously excluded from the traditional banking system," Brazilian Foreign Minister Mauro Vieira said in a letter to the Office of the United States Trade Representative (USTR).
The system is used by 80 percent of Brazil's 212 million people.
"Before, we had to carry cash and a bunch of stuff in our wallets. Now, you just grab your phone and make a PIX transfer. I think it’s made life a lot easier for everyone," Ingrid Ferreira, a 32-year-old civil servant, told AFP in Brasilia.

What is the United States' complaint?

Washington alleges that the central bank, as owner and regulator of PIX, faces a conflict of interest and puts US companies at a disadvantage.
The Trump administration complains about BCB requirements that banks feature PIX on the home screens of their apps and refrain from charging user fees.
The USTR said it was "forcing US providers to promote their Brazilian competitor, without compensation."
The Trump administration has rebuffed calls in the United States for it to create a similar electronic payment system.
A Brazilian government source told AFP that Washington's grievance stems from credit card companies, whose share of transactions in Brazil has dropped from 23 percent to 15 percent since 2020. 
"A large part of the Brazilian population works in the informal service sector. They are small business owners who were largely at the mercy of those major credit card operators, paying fees," Professor Marco Sanfins of the Fluminense Federal University told AFP.

What does Brazil say?

Brasilia has rejected Washington's accusations, saying that PIX has expanded the entire digital payments system, which increases online activity and benefits US companies like Google.
And the central bank highlights that the number of card users has increased in Brazil since 2020.
Brazil believes that Washington sees PIX and other such payment systems as a potential threat to the international dominance of the dollar.
Kenya, Nigeria, India and Colombia have all developed similar systems.

Why is this politically sensitive?

Lula's main rival in the October presidential election is Flavio Bolsonaro, son of far-right former leader Jair Bolsonaro, who is serving a 27-year sentence for attempting a coup d'etat.
Trump imposed tariffs on Brazil last year over the trial against his ally, which the US president described as a "witch hunt". Most of those duties were later lifted.
While Jair Bolsonaro's sons had lobbied for those tariffs during their father's trial, Flavio Bolsonaro is now arguing against new ones, arguing they could boost Lula's electoral campaign.
"PIX is good for Brazil and, incredible as it may seem, it is also good for the United States," Flavio Bolsonaro said after a USTR hearing in Washington, defending the system.
jss-jiog/fb/dw

inflation

US inflation cools in June before renewed Mideast fighting

BY BEIYI SEOW

  • The consumer price index (CPI) rose by 3.5 percent on a year-on-year basis in June, down from a 4.2 percent increase in May, according to Labor Department data.
  • US consumer inflation cooled more than expected in June, government data showed Tuesday, as energy prices fell on a temporary easing of the US-Iran war.
  • The consumer price index (CPI) rose by 3.5 percent on a year-on-year basis in June, down from a 4.2 percent increase in May, according to Labor Department data.
US consumer inflation cooled more than expected in June, government data showed Tuesday, as energy prices fell on a temporary easing of the US-Iran war.
However, with oil prices rising on the recent renewal of Middle East hostilities, and US President Donald Trump ordering the restart of a blockade of Iranian ports, the progress could be fleeting.
The consumer price index (CPI) rose by 3.5 percent on a year-on-year basis in June, down from a 4.2 percent increase in May, according to Labor Department data.
The figure marked a pullback from a three-year high, as a drop in energy costs more than offset upticks in housing and food prices.
Analysts had anticipated a larger 3.8 percent CPI, according to economists surveyed by Dow Jones Newswires and The Wall Street Journal.
All eyes are now on Federal Reserve Chairman Kevin Warsh as he appears before the House Financial Services Committee following his first interest rate meeting at the helm of the central bank.
US lawmakers are expected to grill him over progress on lowering inflation in the world's biggest economy, while markets watch for hints that the Fed may lift interest rates later this year -- despite Trump's insistent pressure for cuts.
While the central bank has a longer run inflation target of 2.0 percent, cost hikes have been higher than that level for around five years.

Resisting rate hikes?

Warsh vowed in opening remarks Tuesday that the central bank will rid the United States of the years-long "inflation surge."
"At the Fed, our number one objective is getting monetary policy right," he said. "If we get policy right -- and I can assure you we will -- the inflation surge of the last five years will be a thing of the past."
Excluding the volatile food and energy sectors, "core" CPI was up by 2.6 percent year-on-year in June, also below May's reading.
Overall CPI fell by 0.4 percent between May and June, the first month-on-month decline since 2020.
White House economic advisor Kevin Hassett told Fox News that Tuesday's report was "absolutely the best inflation report we've seen in about six years."
A lower reading of underlying inflation "gives the Fed breathing room in deciding whether and when to raise interest rates," said Nationwide chief economist Kathy Bostjancic in a note.
But she warned that the sharp reversal in oil and gasoline prices "will keep odds for a rate hike in the coming months high."
For now, June's data have not shown inflation broadening out across goods and services, a concern held by central bankers, said economist Bernard Yaros of Oxford Economics.
Besides oil prices, effects from Trump's tariffs "were not discernible" while price pressures linked to the artificial intelligence buildout were less evident than expected, he said.
US gasoline costs plunged by 9.7 percent in June on a month-on-month basis -- though still higher than a year ago.
Energy prices rocketed this year after US-Israeli strikes targeting Iran from late February triggered Tehran's retaliation in virtually blocking off the Strait of Hormuz. The strait is a key waterway for global energy transit.
While energy costs slumped in June, the cost of food climbed by 0.2 percent on a monthly basis.
The Fed's preferred inflation gauge, the Personal Consumption Expenditures (CPE) price index, is due to be released July 30.
bys/des

demography

Ticking time bomb? Europe's ageing population brings challenges

BY ADRIEN DE CALAN

  • The median age of a European was 44.9 in 2025, and there are major disparities between EU countries.
  • The population of the 27-nation European Union will peak in 2029 before falling in the coming decades, according to a report published Tuesday that spotlights the major challenges the bloc faces from an ageing population.
  • The median age of a European was 44.9 in 2025, and there are major disparities between EU countries.
The population of the 27-nation European Union will peak in 2029 before falling in the coming decades, according to a report published Tuesday that spotlights the major challenges the bloc faces from an ageing population.
Today there are 450.6 million people, but researchers say this will peak at 453.3 million in 2029 before a slow long-term decline.
The population will fall to 398.8 million people by 2100, an overall drop of 11.7 percent and a level that was last experienced in the 1970s.
Europeans are living longer than ever before thanks to vastly improved healthcare, and better life and social conditions. 
But an ageing population poses challenges for society and the EU economy, and while migration could help, it's not the fix Europe might hope for.
The EU executive's Joint Research Centre said life expectancy at birth reached 81.5 years in 2024. 
By 2050, nearly one in three EU residents will be aged 65 or older, compared to one in five today, the centre said. 
By 2100, life expectancy could exceed 90 years for women and 86 for men.
Such trends present "significant challenges", the EU said, including labour shortages, strained public budgets, and pressure on care and education systems.
It is, however, not all negative as the report points to the rise of the "silver economy" -- a growing market for goods and services for older citizens.

'Migration is a necessity'

Migration can help offset some effects of Europe's demographic change, the researchers said, but it would have a limited impact on "fully" addressing the challenges posed by an ageing population.
But as fertility rates fall, migration counterbalances the negative effects of an ageing population and labour force contraction, the report said.
"Migration is a necessity," EU commissioner Dubravka Suica told reporters.
Fewer babies are being born to each woman in Europe, a decline that has been steady since the 1960s.
The fertility rate fell to 1.34 children per woman in 2024, well below the replacement level of 2.1 needed to keep the population stable without migration.
The median age of a European was 44.9 in 2025, and there are major disparities between EU countries. Ireland is relatively young with a median age of 39.6 years while Italy's was 49.1.
"We are living longer, healthier lives than ever before –- one of our greatest achievements. But demographic change is reshaping our societies, our economies and our labour markets," Suica said in a statement.
"We must act now to turn this transformation into an opportunity," she added.
The EU insists the bloc must boost productivity and cut unemployment to offset the effects of a shrinking workforce.
Currently around 20 percent of working-age Europeans are outside the labour force, the report said, while some eight million young people are neither in employment, education nor training.
The situation is particular to Europe as the global population is not falling.
Population growth is increasingly concentrated in parts of Sub-Saharan Africa, South Asia and some Middle Eastern countries, the report said.
adc-raz/del/fg

Global Edition

Oil gains on fresh attacks, dollar slides as inflation slows

  • Fed Chairman Kevin Warsh told lawmakers Tuesday that the central bank will rid the United States of a years-long "inflation surge", heightening anticipation over the latest US consumer price index (CPI) data.
  • Oil prices surged on Tuesday after fresh US strikes against Iran, fuelling fears for the future of Middle East peace efforts and raising the risk of another spike in inflation.
  • Fed Chairman Kevin Warsh told lawmakers Tuesday that the central bank will rid the United States of a years-long "inflation surge", heightening anticipation over the latest US consumer price index (CPI) data.
Oil prices surged on Tuesday after fresh US strikes against Iran, fuelling fears for the future of Middle East peace efforts and raising the risk of another spike in inflation.
Meanwhile the latest data showed US consumer inflation dipped in June thanks to a drop in energy prices, which sent the dollar lower as traders saw less likelihood that the US Federal Reserve will hike interest rates later this month.
The second quarter earnings season got underway with JPMorgan Chase reporting a surge in net profit to $21.2 billion, which Yahoo Finance said was the largest quarterly profit in US banking history.
While the inflation and earnings news were positive for stocks, the Dow shed 0.3 percent at the opening bell, pulled down by a 23 percent plunge in IBM shares.
The company issued an earnings warning, with CEO Arvind Krishna saying the second quarter was "worse than our expectations".
IBM released at the start of the quarter a new mainframe processor for AI applications that was well-received by clients, but Krishna said that in June companies shifted spending towards servers and storage in anticipation of supply constraints and price hikes, leading the company to fall short of its targets.
While IBM suffered from the shift in spending, it was positive for the sector as a whole, with the PHLX semiconductor index rising more than three percent.
Fed Chairman Kevin Warsh told lawmakers Tuesday that the central bank will rid the United States of a years-long "inflation surge", heightening anticipation over the latest US consumer price index (CPI) data.
The Labor Department later said that CPI rose by 3.5 percent on a year-on-year basis in June, down from a 4.2 percent increase in May.
The month-on-month drop was 0.4 percentage points, which Briefing.com analyst Patrick O'Hare noted was the largest monthly drop since April 2020.
"Inflation has not been slayed, but this report should be enough to keep the (the Federal Reserve's monetary policy committee) on hold at its July 28-29 meeting," he said.
Earlier Tuesday, the market saw a roughly 40 percent probability of a US interest rate hike this month, but that fell to 13 percent after the CPI data was published.
The market still sees the Fed as likely hiking rates at its following meeting in September.
The dollar slid against rival currencies after the inflation data was published.
Oil prices were up more than three percent as equity markets in New York opened.
International benchmark Brent North Sea crude rose as much as five percent to trade around $87 a barrel.
Prices had already shot up more than nine percent on Monday.
The latest attacks came after Iranian forces struck a commercial ship in the Strait of Hormuz early on Sunday, before announcing the closure of the waterway through which about a fifth of global oil passes.
That led to a series of US strikes on sites in the Islamic republic, prompting Tehran to respond by hitting targets in Bahrain, Jordan, Kuwait and Oman.
US President Donald Trump vowed to reimpose a naval blockade on Iranian ports, though he said a deal with Iran was still possible.
"The prospect of more fighting and a fresh blockade has meant that traffic through the Strait has slowed to a near halt," said Kathleen Brooks, research director at trading group XTB.
"When the supply chain gets gummed up, this is what keeps upward pressure on the oil price," she added.
Rising oil prices hit European equities, although London edged higher thanks to gains in energy stocks.
Asian stocks mostly climbed after tech firms enjoyed some reprieve from the latest bout of selling.

Key figures around 1330 GMT

Brent North Sea Crude: UP 3.8 percent at $86.48 a barrel
West Texas Intermediate: UP 3.1 percent at $80.57 a barrel
New York - Dow: DOWN 0.3 percent at 52,342.41
New York - S&P 500: UP 0.1 percent at 7,525.67
New York - Nasdaq Composite: UP 0.5 percent at 26,011.80
London - FTSE 100: UP 0.2 percent at 10,516.00 points
Paris - CAC 40: DOWN 0.2 percent at 8,345.79
Frankfurt - DAX: DOWN 0.3 percent at 25,037.36
Tokyo - Nikkei 225: UP 0.7 percent at 67,743.50 (close)
Seoul - Kospi: UP 0.7 percent at 6,856.83 (close)
Hong Kong - Hang Seng Index: UP 0.5 percent at 24,340.73 (close)
Shanghai - Composite: UP 1.4 percent at 3,967.13 (close)
Euro/dollar: UP at $1.1453 from $1.1384 on Monday
Pound/dollar: UP at $1.3404 from $1.3353
Dollar/yen: DOWN at 161.88 yen from 162.43 yen
Euro/pound: UP at 85.45 pence from 85.25 pence
dan-ajb-rl/jhb

environment

Dangote's mega oil project threatens fragile Kenyan ecosystem: Greenpeace

  • Greenpeace Africa called for the $17-billion project to be suspended pending an independent environmental assessment before any approvals are granted.
  • Climate rights group Greenpeace Africa called on Tuesday for a halt to a proposed mega oil refinery project by Africa's richest man, Aliko Dangote, in Kenya's coastal region, warning of environmental risks.
  • Greenpeace Africa called for the $17-billion project to be suspended pending an independent environmental assessment before any approvals are granted.
Climate rights group Greenpeace Africa called on Tuesday for a halt to a proposed mega oil refinery project by Africa's richest man, Aliko Dangote, in Kenya's coastal region, warning of environmental risks.
The east African oil refinery, with a planned capacity of 700,000 barrels per day, was confirmed earlier this month to be located at Kenya's Lamu port, ending months of speculation that Tanzania could host the project.
"This project threatens to damage one of East Africa's most fragile coastal ecosystems while locking Kenya into a risky fossil fuel future," Sherelee Odayar, Greenpeace Africa Oil and Gas campaigner, said in a statement.
The group said the oil refinery, which is expected to take about 30 months to build, will lead to "habitat destruction, marine degradation, oil spill risk and dangerous air pollution".
"Lamu's mangroves, coral reefs and seagrass beds are not expendable. They support fisheries, livelihoods and coastal protection," the NGO said.
Greenpeace Africa called for the $17-billion project to be suspended pending an independent environmental assessment before any approvals are granted.
"No approvals should move forward without a full, independent environmental and social impact assessment, genuine public participation and transparent scrutiny of the long-term economic, health and ecological risks," Odayar said.
Kenyan President William Ruto has praised the project, arguing it will create jobs.
About 800,000 Kenyans join the labour market each year, according to the World Bank.
But Greenpeace said the project will only "create temporary jobs while undermining existing livelihoods in fishing, tourism and small-scale local economies".
"This refinery also risks becoming a stranded asset as the world moves toward cleaner energy. 
"It would also lock Kenya into decades of carbon-intensive development, worsening climate change and its impacts," it said.
There are still many questions around the project in Kenya, not least where it will source the oil to refine and how it will be financed. 
mnk/gil

investigation

Swiss probe Google dropping search choice on Android phones

  • "Recently, Google removed this feature in Switzerland," the Secretariat of the Competition Commission (COMCO) said in a statement.
  • The Swiss competition authority announced Tuesday it had opened a preliminary investigation into Google's removal of the "choice screen" feature on Android devices in Switzerland.
  • "Recently, Google removed this feature in Switzerland," the Secretariat of the Competition Commission (COMCO) said in a statement.
The Swiss competition authority announced Tuesday it had opened a preliminary investigation into Google's removal of the "choice screen" feature on Android devices in Switzerland.
The feature allowed users to choose their default search engine during the initial set-up of a new Android device.
"Recently, Google removed this feature in Switzerland," the Secretariat of the Competition Commission (COMCO) said in a statement.
"As a result, the Google search engine is imposed as the default on Swiss users, without a 'choice screen' being displayed during the initial set-up."
COMCO said its removal could limit the visibility of search engines competing with Google, thereby reinforcing barriers to entry.
"This new practice by Google could affect the ability of search engine providers and, more broadly, other digital service providers to compete," it said.
It also creates an unequal treatment between Swiss users and those in the surrounding European Economic Area, "even though the competitive issues are comparable", it added.
The EEA covers 30 countries, extending the 27-member European Union's common market to three other states. Switzerland is not a member of either bloc.
COMCO said that in digital markets, default settings played a decisive role, with the choice screen aiming to reduce the lock-in effects associated with preconfigured settings.
"The preliminary investigation will determine whether there are indications of an unlawful restriction of competition under the Cartel Act," said COMCO.
A Google spokesperson told AFP that the tech giant was aware of the investigation.
"We look forward to cooperating fully with the authority to address their questions," the spokesperson added.
At the start of July, the EU's top court upheld a record 4.1-billion-euro ($4.7 billion) fine the bloc slapped on Google for anti-competitive practices related to its Android operating system.
The European Court of Justice dismissed the US tech giant's second attempt to overturn the penalty imposed by the European Commission in 2018 -- which remains the EU's highest ever antitrust fine.
The commission, the 27-nation bloc's antitrust regulator, had accused Google of abusing the popularity of its Android operating system to restrict competition.
It alleged Google pressured phone makers using Android to pre-install its search engine and Google Chrome browser -- essentially shutting out rivals.
noo/rjm/nl/rl

children

Turn off addictive features on social media for children, say EU lawmakers

  • The EU has already increased the pressure on social media platforms to change in recent months, telling Facebook and Instagram last week to dismantle their "addictive" features, after a similar warning to TikTok in February.
  • There should be a "youth mode" for children on social media platforms in which addictive features and targeted advertising are turned off, EU lawmakers demanded on Tuesday.
  • The EU has already increased the pressure on social media platforms to change in recent months, telling Facebook and Instagram last week to dismantle their "addictive" features, after a similar warning to TikTok in February.
There should be a "youth mode" for children on social media platforms in which addictive features and targeted advertising are turned off, EU lawmakers demanded on Tuesday.
The calls are growing louder for the European Union to ensure that social media platforms and others are designed to be safe before children use them.
An expert report on Monday also recommended a "safety-by-design" approach in which platforms protect minors from possible harms posed by the apps.
"The responsibility for the safety of children and adolescents must first and foremost lie with those who design and manage digital platforms," EU lawmaker Sandro Ruotolo said in a statement.
The addictive features that the EU has concerns over include infinite scroll, autoplay, push notifications and highly personalised recommender systems.
The parliament's culture committee also called for an "EU code of conduct" to regulate influencers and a common definition of "influencer marketing".
It also stressed the need for greater transparency around how social media works as "opaque algorithms and content moderation hampers the ability of young users to understand why certain content is recommended, suppressed or removed".
Monday's expert report also recommended restricting social media for children under the age of 13, with access only allowed under adult supervision.
EU chief Ursula von der Leyen made it clear on Monday that she supports limits on children under the age of 13 accessing digital platforms like social media.
There will be a legal proposal after the summer break, she said.
Once it is unveiled, EU negotiators from the parliament and European capitals will thrash it out to agree on a final law.
The EU has already increased the pressure on social media platforms to change in recent months, telling Facebook and Instagram last week to dismantle their "addictive" features, after a similar warning to TikTok in February.
The European Commission, which acts as the bloc's digital watchdog, says new rules are on the way to push for changes to platforms' addictive designs.
fpo-raz/cw

Global Edition

Oil prices surge on US-Iran attacks; tech shares fall

  • "The market is looking and saying, 'Do we need to pay Iran for protection or are we going to be paying the United States for protection?
  • World oil prices surged Monday as a fresh flare-up between the United States and Iran rattled investors, while a selloff in chipmakers sent South Korea's stock market plunging.
  • "The market is looking and saying, 'Do we need to pay Iran for protection or are we going to be paying the United States for protection?
World oil prices surged Monday as a fresh flare-up between the United States and Iran rattled investors, while a selloff in chipmakers sent South Korea's stock market plunging.
Wall Street's tech-heavy Nasdaq Composite led major US indices lower while European stock markets were little changed.
Oil prices shot up more than nine percent as President Donald Trump announced the reimposition of a US naval blockade on Iranian ports while threatening the US would charge a 20 percent rate on all cargo shipped through the Strait of Hormuz, a critical waterway for petroleum shipments.
Iran's military warned on Monday that it would not allow the United States to "interfere" in the management of the Strait of Hormuz, while Iranian Foreign Minister Abbas Araghchi mocked Trump's threatened levy.
Iran on Monday fired "warning shots" at two ships attempting to pass through the Strait of Hormuz, state television reported, as Tehran and Washington battle for control of the strategic waterway.
Analysts said the renewed sparring would reduce shipping in the key waterway.
"But in addition, the market is trying to assess what President Trump means by charging 20 percent on all cargo shipped through the strait and how that might impact not only crude oil prices but other commodities and container ships," said Andy Lipow of Lipow Oil Associates. 
"The market is looking and saying, 'Do we need to pay Iran for protection or are we going to be paying the United States for protection? And how much is that going to be?'"
The heightened uncertainty over the Middle East also weighed on US equities, with the Nasdaq falling about 1.5 percent.
"A weekend of hostilities between the US and Iran is triggering a risk-off day on Wall Street," said Jose Torres of Interactive Brokers.
"The renewed attacks are generating growing worries about the feasibility of a longer-term truce in which both nations commit to peace, as significant disagreements regarding control of the Strait, sanctions relief and Tehran's nuclear program remain sticking points," he said.

Kospi tanks

South Korean chip titan SK Hynix plunged more than 15 percent, extending a recent bout of selling that has seen the market heavyweight lose nearly 40 percent since hitting a record last month.
The loss came after the firm's US-listed shares soared almost 13 percent on their New York debut following a record $26.5 billion share sale. 
Rival Samsung was down more than 10 percent by Monday's close.
"The South Korean market is now considered a key barometer of sentiment towards the chip sector, so when it declines it can have ripple effects across the world," said Kathleen Brooks, research director at trading group XTB.
There were also losses in Tokyo, where tech companies Advantest and Tokyo Electron tumbled.
Shares in US chipmakers were also hit, with Micron, AMD and Marvell all losing more than four percent.
Investors are gearing up for the latest earnings season, which will be pored over for an idea about the outlook for the AI industry.
This week sees reports from Taiwanese chip giant TSMC and Dutch firm ASML, which produces chipmaking equipment, while US tech firms begin reporting next week.
A number of Wall Street banks are lined up to report earnings this week, including JP Morgan, Bank of America and Goldman Sachs.

Key figures around 2020 GMT

Brent North Sea Crude: UP 9.6 percent at $83.30 a barrel
West Texas Intermediate: UP 9.4 percent at $78.14 a barrel
New York - Dow: DOWN 0.3 percent at 52,498.64 (close)
New York - S&P 500: DOWN 0.8 percent at 7,515.34 (close)
New York - Nasdaq Composite: DOWN 1.6 percent at 25,873.18 (close) 
London - FTSE 100: FLAT at 10,498.29 (close) 
Paris - CAC 40: UP 0.3 percent at 8,364.65 (close)
Frankfurt - DAX: UP 0.2 percent at 25,114.25 (close)
Seoul - Kospi: DOWN 9.0 percent at 6,806.93 (close)
Tokyo - Nikkei 225: DOWN 1.9 percent at 67,242.73 (close)
Hong Kong - Hang Seng Index: UP 0.2 percent at 24,213.72 (close)
Shanghai - Composite: DOWN 2.1 percent at 3,913.79 (close)
Euro/dollar: DOWN at $1.1384 from $1.1416 on Friday
Pound/dollar: DOWN at $1.3353 from $1.3404
Dollar/yen: UP at 162.43 yen from 161.68 yen
Euro/pound: UP at 85.25 pence from 85.20 pence
bur-jmb/mjf

Paramount

Twelve US states sue to block Paramount's Warner Bros. takeover

  • The takeover battle began last year, when streaming giant Netflix and Paramount went to war over Warner Bros. and its prized back catalog.
  • California and 11 other US states on Monday sued to block Paramount Skydance's $110 billion takeover of Warner Bros.
  • The takeover battle began last year, when streaming giant Netflix and Paramount went to war over Warner Bros. and its prized back catalog.
California and 11 other US states on Monday sued to block Paramount Skydance's $110 billion takeover of Warner Bros. Discovery, calling the largest merger in Hollywood history a threat to competition in film and television.
The lawsuit, filed in federal court in northern California, marks a dramatic turn in the regulatory battle over the deal -- and a direct challenge to the Trump administration's Justice Department, which approved the merger last month.
The combined company -- which came about after Netflix bowed out of the battle to own Warner -- would control a sprawling roster of assets, including CNN, Warner Bros. Pictures and the HBO Max streaming service.
The saga has become politically charged, with President Donald Trump publicly saying he would weigh in on the deal as the fate of CNN -- a frequent target of the president's ire -- hangs in the balance.
California Attorney General Rob Bonta, who is leading the coalition, said the combination of two of Hollywood's five major film distributors would lead to "higher prices, lower quality, and less content" for audiences.
"In this country, no one is above the law," Bonta said. 
"California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy."
The states, all led by Democrats, allege the deal violates the Clayton Act, the federal law that bars mergers likely to substantially reduce competition.
Joining California in the suit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
Paramount fired back, calling the lawsuit "fundamentally flawed."
"The practical effect of this lawsuit is to shield those dominant streaming platforms like Netflix and technology companies from much needed competition," a Paramount spokesperson said.
The company argued the merger would create a stronger rival to Netflix, Amazon and Apple, and pledged to release at least 30 films a year for full theatrical runs with a minimum 45-day window.
The fate of theatrical releases for Hollywood movies has been a major source of contention for the industry.
Paramount noted that competition regulators in 24 jurisdictions have already cleared the transaction or allowed their review periods to expire.
Ross Benes, a senior analyst at research firm Emarketer, said the lawsuit represented "an easy political win" for the attorneys general but was unlikely to succeed.
With federal agencies sidelined, the state attorneys general lack the jurisdictional muscle to block the deal, he added.
According to the complaint, the combined company would control roughly 27 percent of wide-release theatrical film distribution and a similar percentage of basic cable channel licensing.
The coalition has asked the companies not to close the transaction until the legal challenge is resolved, and warned it would seek a temporary restraining order if they refuse.
Paramount last month secured the green light of federal antitrust authorities, handing a major win to a media empire financed by one of Trump's closest billionaire allies.

Trump ties

The approval was a coup for Paramount chief executive David Ellison, whose father, Oracle co-founder Larry Ellison, largely financed the takeover.
The elder Ellison, one of the world's richest men, is a close ally of Trump and a major donor to his political campaigns.
Hundreds of actors and directors have signed a letter opposing the merger, warning it would choke production in an industry already battered by years of consolidation and cost-cutting.
The takeover battle began last year, when streaming giant Netflix and Paramount went to war over Warner Bros. and its prized back catalog.
A wary Tinseltown reluctantly lined up behind Netflix as the lesser of two evils, only to watch Paramount keep raising its bid until the streamer walked away.
arp/pnb/mlm

automobile

Volkswagen confirms weighing up to 50,000 more job cuts

BY LOUIS VAN BOXEL-WOOLF

  • If the group were to cut 100,000 positions, it would be the biggest restructuring in the history of the global auto industry, eclipsing the 50,000 job cuts General Motors made after it declared bankruptcy in 2009.
  • Volkswagen's CEO told employees Monday a further 50,000 jobs could go at the struggling auto giant, according to an internal memo seen by AFP, confirming reports the group is targeting 100,000 cuts worldwide.
  • If the group were to cut 100,000 positions, it would be the biggest restructuring in the history of the global auto industry, eclipsing the 50,000 job cuts General Motors made after it declared bankruptcy in 2009.
Volkswagen's CEO told employees Monday a further 50,000 jobs could go at the struggling auto giant, according to an internal memo seen by AFP, confirming reports the group is targeting 100,000 cuts worldwide.
The German car titan has come under intense pressure from US tariffs, slimmer profit margins from electric cars and above all intense competition in key market China, whose carmakers are now also increasingly exporting to Europe.
Last week management at the 10-brand group began what could be a long and tough process of thrashing out job cuts in talks with the supervisory board as workers protested at plants nationwide.
With pressure mounting for Europe's biggest carmaker to publicly outline its cost-saving plans, chief executive Oliver Blume told workers in the memo that the group must "act now" to safeguard its future.
"We need to become more efficient, more robust and simpler. We must reduce our costs," he said.
VW's costs are about 20 percent higher than competitors', Blume said, adding that overheads need to be cut to a "competitive level".
"As half of our overheads stem from staff costs, a theoretical calculation -- assuming no change in labour costs -- would result in the loss of around 50,000 jobs," he said. 
This comes on top of 50,000 jobs that the carmaker is already in the process of cutting in Germany, about 35,000 of which will go at its namesake brand, under a 2024 deal with unions.
VW is also the parent company of car brands ranging from SEAT to Audi and Porsche.
If the group were to cut 100,000 positions, it would be the biggest restructuring in the history of the global auto industry, eclipsing the 50,000 job cuts General Motors made after it declared bankruptcy in 2009.
Blume also confirmed the future of four German factories was uncertain.
"The truth is also that, as things stand today, we cannot confirm that the Emden, Hanover, Zwickau and Neckarsulm plants will be able to operate competitively into the 2030s," he said.

Tough overhaul

Any restructuring is likely to be hard fought. 
Labour representatives and the German state of Lower Saxony, both of whom take a dim view of plant closures, together hold more than half the seats on the supervisory board.
VW's Wolfsburg headquarters and several of its plants are in Lower Saxony.
Unions have strongly criticised VW and Blume for unsettling employees by allowing media reports of mass job cuts to circulate without comment, demanding the CEO take a public stand.
In the memo, Blume insisted leaks to the media had been unplanned and said that reports of looming cuts had "annoyed" him.
"The disclosure of such confidential, sensitive information not only unsettles our workforce; it is also damaging to the business," he said.
Some industry analysts have suggested that Volkswagen had deliberately publicised the number of 100,000 as a negotiating tactic, and that the final figure of cuts is likely to be lower.
Volkswagen is not alone among German carmakers in seeing its business suffer in recent times. 
BMW and Mercedes-Benz have also suffered falling profits, in particular due to increased competition from local rivals in China, the world's biggest auto market.
Speaking on Monday, a spokesman for the IG Metall called Blume's memo "superficial" and said employees were still left in the dark.
"Management's communication remains a disaster across the board," he said, adding that shop stewards were organising meetings at which Blume would be expected to take questions from staff in person.
"The answers will determine the crucial question: whether the executive board intends to overcome the crisis with staff or against them," he said.
"If the latter a proper fight is on the cards."
vbw/sr/rl

automobile

Volkswagen confirms weighing up to 50,000 more job cuts

  • Unions had strongly criticised Volkswagen and Blume for unsettling employees by allowing media reports of mass job cuts to circulate without comment, demanding that the CEO take a public stand. vbw/sr/rl
  • Volkswagen's boss told employees Monday a further 50,000 jobs could go at the struggling auto giant, according to an internal memo seen by AFP, confirming reports the group is targeting 100,000 cuts worldwide.
  • Unions had strongly criticised Volkswagen and Blume for unsettling employees by allowing media reports of mass job cuts to circulate without comment, demanding that the CEO take a public stand. vbw/sr/rl
Volkswagen's boss told employees Monday a further 50,000 jobs could go at the struggling auto giant, according to an internal memo seen by AFP, confirming reports the group is targeting 100,000 cuts worldwide.
"The next step is to bring our overheads down to a competitive level," chief executive Oliver Blume said. 
"As half of our overheads stem from staff costs, a theoretical calculation -- assuming no change in labour costs –- would result in the loss of around 50,000 jobs."
This comes on top of 50,000 jobs that the 10-brand automaker is already in the process of cutting in Germany under a 2024 deal with unions.
The powerful IG Metall union organised protests at Volkswagen sites last week after reports emerged of VW's plans to ramp up its job cuts, as well as potentially close four German factories. 
In the memo, Blume said he wanted to stress that "intelligent solutions" were better than closing plants but added the future of the four sites could not be guaranteed.
"The truth is also that, as things stand today, we cannot confirm that the Emden, Hanover, Zwickau and Neckarsulm plants will be able to operate competitively into the 2030s," he said.
Europe's largest carmaker has come under intense pressure from US tariffs, slimmer profit margins from electric cars and above all intense competition in China, the world's largest auto market.
Management at the group, which apart from its namesake also includes SEAT, Audi and Porsche cars, last Thursday sought to thrash out its cost-cutting plans with VW's supervisory board.
Any restructuring is likely to be hard fought.
Labour representatives and the German state of Lower Saxony, both of whom take a dim view of plant closures, together hold more than half the seats on the supervisory board.
Unions had strongly criticised Volkswagen and Blume for unsettling employees by allowing media reports of mass job cuts to circulate without comment, demanding that the CEO take a public stand.
vbw/sr/rl

sanction

EU sanctions target Russian state-backed messaging app

  • The authorities have throttled WhatsApp and Telegram, the country's two largest messaging apps, and forced civil servants, state companies, schools and government agencies to move their communications onto Max.
  • The European Union on Monday announced sanctions against the company behind Russia's state-backed messaging app Max, which it said had been used to help clamp down on dissent. 
  • The authorities have throttled WhatsApp and Telegram, the country's two largest messaging apps, and forced civil servants, state companies, schools and government agencies to move their communications onto Max.
The European Union on Monday announced sanctions against the company behind Russia's state-backed messaging app Max, which it said had been used to help clamp down on dissent. 
Moscow has for months been pushing Russians to install Max -- a super-app that lacks encryption and that critics say could be used to track people.
The authorities have throttled WhatsApp and Telegram, the country's two largest messaging apps, and forced civil servants, state companies, schools and government agencies to move their communications onto Max.
The EU announced sanctions on Russian media giant VK and its daughter company Communication Platform, which it said ran the Max app under the supervision of the FSB intelligence agency.
"The app comes pre-installed on all mobile devices sold in Russia and includes extensive surveillance features," the EU said. 
It added those capabilities had "been used for repressive actions against users criticising Russia's war of aggression against Ukraine or posting other content banned by authorities."
Max has been compared to China's WeChat, combining social media and messaging functions with access to government services, a digital ID card system, banking and payments.
President Vladimir Putin has touted it as a more "secure" platform that meets Russia's demand for "technological sovereignty".
EU chief Ursula von der Leyen has previously accused the Kremlin of imposing a "digital iron curtain" on Russians to hide worsening conditions in the country as sanctions over the Ukraine war bite.
The EU has already imposed wide-ranging sanctions on Russia since its invasion of Ukraine in 2022. 
del/raz/rl

trade

Switzerland, Britain conclude 'modernised' free trade deal talks

  • That agreement took effect in 2021, but two years later, the two countries launched negotiations towards a more comprehensive free trade deal.
  • Switzerland and Britain have concluded negotiations on an upgraded free trade agreement, Bern said Monday, saying the deal would boost legal certainty for businesses in both countries.
  • That agreement took effect in 2021, but two years later, the two countries launched negotiations towards a more comprehensive free trade deal.
Switzerland and Britain have concluded negotiations on an upgraded free trade agreement, Bern said Monday, saying the deal would boost legal certainty for businesses in both countries.
Following Britain's 2016 decision to leave the European Union, London swiftly concluded a trade agreement with Switzerland in 2019 to stake out their trade relations as two independent players outside the bloc, and to safeguard their mutual rights and obligations.
That agreement took effect in 2021, but two years later, the two countries launched negotiations towards a more comprehensive free trade deal.
Those negotiations concluded on Monday during a meeting in Bern between Swiss President Guy Parmelin and Britain's Trade Secretary Peter Kyle, the Swiss economic affairs ministry said in a statement.
"The new agreement goes well beyond maintaining the status quo and places bilateral economic relations on a comprehensive and modern footing," the statement said.
The agreement, it insisted, "safeguards existing preferential arrangements in trade in goods and provides for targeted improvements to market access". 
"At the same time, it expands and modernises the bilateral legal framework, particularly with regard to trade in services, investment, the mobility of service providers and digital trade." 
The deal, which still needs to be signed, "also includes provisions on financial services, telecommunications, public procurement, intellectual property, trade and sustainable development, and small and medium-sized enterprises", the ministry said, adding that the agreement would strengthen "legal certainty for businesses in both countries". 
Bern maintained that the agreement also sent a clear "geopolitical signal".
"In an environment characterised by increasing fragmentation and uncertainty over trade policy, two major European economic powers outside the European Union are strengthening their strategic partnership and reaffirming their commitment to open markets, reliable rules and close economic cooperation," it said.
The ministry said the two countries aimed to have the agreement signed before the end of the year, followed by the required domestic approval procedures.
nl/rjm/rl

politics

Nigeria oil output hits six-year high, above OPEC target

  • Including condensates, oil production averaged 1.74 million barrels per day in June, the NUPRC said.
  • Nigeria's crude production reached a 74-month high last month, authorities said over the weekend, hitting an average of 1.56 million barrels per day, or 104 percent of its OPEC quota.
  • Including condensates, oil production averaged 1.74 million barrels per day in June, the NUPRC said.
Nigeria's crude production reached a 74-month high last month, authorities said over the weekend, hitting an average of 1.56 million barrels per day, or 104 percent of its OPEC quota.
Africa's largest oil producer has increased production in recent years in part by cracking down on theft while also hiring former militants who sabotaged pipelines to act as security.
As foreign oil majors -- dogged by pollution scandals in the Niger Delta -- have left many onshore projects to focus on offshore extraction, local firms have stepped in.
"The improved performance was primarily driven by stable production operations across most producing assets and the absence of any major pipeline outages during the period under review," the Nigeria Upstream Petroleum Regulatory Commission said late Sunday.
Including condensates, oil production averaged 1.74 million barrels per day in June, the NUPRC said.
The government maintains a goal of two million barrels per day.
Though the west African country's oil production has historically been hampered by pipeline theft and allegations of state corruption and mismanagement, the June numbers mark the highest recorded crude production since April 2020.
nro/sn/rl

diamonds

De Beers to pause work at S.Africa's largest diamond mine

  • "Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project," it said in a statement.
  • De Beers announced Monday it will pause production at South Africa's largest diamond mine for two years to reduce costs while trading conditions remained tough.
  • "Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project," it said in a statement.
De Beers announced Monday it will pause production at South Africa's largest diamond mine for two years to reduce costs while trading conditions remained tough.
De Beers is majority-owned by British mining giant Anglo American, which is seeking to offload its stake as the natural diamond market faces intense pressure from laboratory-grown gems. 
It said "rough diamond trading conditions are expected to remain challenging in the near-term" with production decreasing and several producers closing mines.
"Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project," it said in a statement.
Venetia, which lies near the borders with Botswana and Zimbabwe, has been run by the De Beers group for more than 30 years.
It accounts for more than 40 percent of the country's annual diamond production and is the largest producer by value. 
It employs about 4,400 staff.
In 2012, the firm started digging beneath Venetia, seeking to reach gems at a depth of more than 1,000 metres (3,250 feet). 
De Beers previously said the facility would produce about four million carats of diamonds annually. 
The action at the Venetia mine follows a decision earlier this year to pause the Tuzo Phase 3 expansion project at the Gahcho Kué mine in Canada, it said.  
CEO Al Cook said the company was making a number of changes to ensure greater business resilience while supporting long-term value creation.
"We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds," he said.
jc/br/rl

travel

'Indispensable' Xiaohongshu app fuels Chinese tourism

BY ISABEL KUA

  • Meng Jiaxuan, 20, dolled up in her traditional outfit at Shichahai, said she had even researched poses for her photoshoot on Xiaohongshu.
  • Competition is fierce for professional photographers at Beijing's tourist hotspots, including a scenic lake where women in flowy traditional robes pose for snaps to share on Xiaohongshu, China's massively popular lifestyle app.
  • Meng Jiaxuan, 20, dolled up in her traditional outfit at Shichahai, said she had even researched poses for her photoshoot on Xiaohongshu.
Competition is fierce for professional photographers at Beijing's tourist hotspots, including a scenic lake where women in flowy traditional robes pose for snaps to share on Xiaohongshu, China's massively popular lifestyle app.
The platform, which is reportedly preparing to file to go public as soon as this year, has shaken up the tourism industry in China, where domestic travel is booming to record levels.
Known as RedNote in English, Xiaohongshu's interface is similar to the US social network Pinterest, but it is sometimes nicknamed "China's Instagram" as users can post photos, videos and even livestream.
Travellers use the app to discover new destinations and plan their itineraries around photogenic locations, like the lake in the capital's historic Shichahai area -- one of many "daka" or "check-in" spots where Xiaohongshu is driving even more footfall.
On a recent Monday,photographer Li Geng, 18, stood with a camera slung across her neck, touting her services to wandering tourists whom she charges 10 yuan ($1.47) per photo.
Metres away, other photographers yelled instructions to ornately dressed young women who held their fingers in victory signs and arched their backs for the camera.
Li told AFP many of her competitors have a significant social media presence, including one who has 45,000 followers on Xiaohongshu and charges lower prices for photos.
That has caused "more customers to flock to him while putting a massive amount of pressure on the rest of us", she said.
In contrast Li, who has no big online following, can "only rely on calling out to people on the street to get customers".

Travel inspiration

Domestic travel in China hit record highs last year, Xinhua news agency reported in March, with trips by residents exceeding 6.5 billion, up more than 16 percent on-year.
Meanwhile, Xiaohongshu's user base has grown to 350 million monthly active users, data analysis platform Qiangua said in May, from 300 million a year earlier.
The app has boosted lesser-known businesses and sent tourists in droves to unconventional locations such as Zibo, a quiet industrial city in Shandong, after its cheap, marinated barbecue skewers went viral.
Xiaohongshu is now the first place "a lot of younger travellers" seek inspiration, said Ming Yii Lai, senior strategy consultant at Daxue Consulting.
Tourist Mina Chen, visiting the Shichahai area with her sister, had planned her Beijing trip using recommendations from other Xiaohongshu users.
Searching popular keywords like "citywalk" on the app brought up itineraries for the day, including where to eat and convenient routes from one attraction to another. 
"It is now indispensable (to me)," the 20-year-old student from Hunan province told AFP.

'TikTok refugees'

Xiaohongshu-driven travel has caused issues including overtourism at viral spots and businesses becoming too dependent on platform traffic, Lai told AFP.
Paid posts from food bloggers "who sing high praises about shops or destinations" have also drawn complaints when their recommendations are disappointing.
The app took the global spotlight last year when a proposed US government ban on the social media platform TikTok sent American users, dubbed "TikTok refugees", flocking to RedNote.
And it has made headlines in recent weeks over its preparations to confidentially file for an initial public offering in Hong Kong, according to outlets including the Wall Street Journal, which said its market debut could be as early as the end of 2026.
AFP has contacted Xiaohongshu for comment.
Young women in more affluent cities remain the app's core user base, according to Qiangua.
But it is also gaining traction with Chinese speakers in countries like Malaysia and Singapore -- and not just among young women.
Singaporean retiree Ernest Phua turned to Xiaohongshu to plan trips to Guangdong and Yunnan in China, searching for "travel strategy" in Mandarin to find recommendations.
There is "a great difference" viewing travel content about China on the app compared to other platforms like YouTube, 58-year-old Phua told AFP.
"If we want to know what it is really like in China" and what locals like to do, eat and go to, "Xiaohongshu has lots of content", he said.
Meng Jiaxuan, 20, dolled up in her traditional outfit at Shichahai, said she had even researched poses for her photoshoot on Xiaohongshu.
"No matter what it is, I just search for it on Xiaohongshu," she said.
isk/kaf/lga

industry

Car crisis takes toll on Germany's young engineers

BY LOUIS VAN BOXEL-WOOLF

  • For Peil, who last year completed a traineeship at tyre-maker and industrial supplier Continental before it spun off its automotive business, the crisis meant it was clear he would not be taken on.
  • Despite a year of searching, previous stints at big automotive suppliers and sending out about 50 applications, German software engineer Max Peil is still looking for a job.
  • For Peil, who last year completed a traineeship at tyre-maker and industrial supplier Continental before it spun off its automotive business, the crisis meant it was clear he would not be taken on.
Despite a year of searching, previous stints at big automotive suppliers and sending out about 50 applications, German software engineer Max Peil is still looking for a job.
Trained in computer vision, a critical part of autonomous and intelligent driving systems, Peil could once have expected to sail into a role at one of Germany's industrial giants.
But years of stagnant growth in Europe's biggest economy and increasingly fierce Chinese competition are now taking their toll on young engineers like Peil.
"Usually you just get rejected straight up," the 30-year-old told AFP in the western city of Frankfurt. 
"I've had one interview. It was the same with my friends, one has sent over 60 applications."

'Golden age' is gone

Known the world over for cutting-edge technology and innovative design, Germany's car industry, powered by exports, has so far managed to avoid the drastic decline seen in countries like Britain, France and Italy.
But Chinese carmakers like BYD and Xpeng have eaten into German carmakers' sales in the world's largest auto market, leading to painful adjustments at home.
"Ten years ago we made about six million vehicles a year and we've now stabilised at about four, 4.2 million," transport economist Thomas Puls of the IW economic institute in Cologne told AFP.
"That's good compared to other European countries, but we now need to accept that the golden age is not coming back." 
In a sign of the times, workers on Thursday protested at Volkswagen sites across the country over reports that Germany's biggest carmaker is mulling up to 100,000 job cuts.
Total employment in the German automotive sector fell eight percent in the five years to 2025, according to Federal Employment Agency (FEA) data, even as it grew a little over one percent overall.
German industry as a whole is struggling against what some have dubbed the "China Shock 2.0" as the country's firms shift away from low-value production and into making more high-tech goods, often at lower prices. 
This is pushing German companies out of once reliable export markets.
Total German exports were last year 1.56 trillion euros ($1.78 trillion), down almost two percent from a 2022 peak, according to data from statistics office Destatis.
Exports to China meanwhile plunged almost a quarter to 81.3 billion euros over the same period.
For Peil, who last year completed a traineeship at tyre-maker and industrial supplier Continental before it spun off its automotive business, the crisis meant it was clear he would not be taken on.
"Even when I started you could see, and you'd always read about it in the news, that this or that part of the business was being restructured," he said. 
"And when you see experienced colleagues going, then you know it's unlikely you'll be hired for the role."

'What's wrong?'

Anja Robert, who for 20 years has led the careers service at one of Germany's leading engineering schools, told AFP that even some of the best students now had to search a while.
"There's people who come to us and say, 'Wow, I've written 30 applications and heard hardly anything back: What's wrong?'", said Robert, head of careers at RWTH Aachen University.
"It's not the case anymore that you just get your application in with BMW and you get a job." 
Qualified engineers last year had an unemployment rate of 3.8 percent, according to the FEA data, an increase of almost 50 percent compared to 2022.
Electrical engineer Luca Linhsen is one of the luckier ones -- she took up a job as a software consultant in Hamburg this month. 
But she still had to endure a "frustrating" months-long job hunt.
"As engineers we were led to understand when beginning our studies that you've practically got a job even before finishing the degree," she told AFP.
"If you want to study engineering, do it because you have a passion for technology. Don't do it for the money or the job security."
vbw/sr/rl/abs

economy

West Afghanistan female dress-code crackdown hits businesses

BY MOHSEN KARIMI WITH AYSHA SAFI IN KABUL

  • "I feel like a stranger," she said of her recent experience of her home city, echoing several women who told AFP the fear of being policed made them stay home.
  • Businesses in Afghanistan's western city of Herat have suffered from a downturn in female customers opting to stay home following a recent crackdown by morality police on women's attire, according to shopkeepers, drivers and residents.
  • "I feel like a stranger," she said of her recent experience of her home city, echoing several women who told AFP the fear of being policed made them stay home.
Businesses in Afghanistan's western city of Herat have suffered from a downturn in female customers opting to stay home following a recent crackdown by morality police on women's attire, according to shopkeepers, drivers and residents.
Dozens of women were detained by the Taliban government's morality police in early June on accusations they were violating official dress codes by not wearing the body-cloaking chador or burqa.
A rare protest against the restrictions was violently dispersed with at least two people killed, according to the United Nations.
"Since those incidents occurred... there were no women in the markets," 26-year-old Ramin Ghafoori, a Herat-based businessman who runs a tailoring shop, told AFP. 
Female shoppers dominate the customer base of the normally bustling markets in Herat, Afghanistan's western commercial hub and one of its largest cities. 
"Ninety percent of our sales are to women, women come to buy even for men," said Nazeer Ahmad Azimi, who runs a shoe store, noting men were often too busy to shop, occupied in the job opportunities that have shrunk for women.
He estimated that the recent ramp-up of enforcement in restrictions on women had halved the turnover in the city's markets.
A spokesman for Herat's city administration did not immediately respond to a request for comment on the fallout of restrictions.
Since returning to power in 2021, Taliban authorities have imposed a series of rules on women's access to public life, barring them from studying beyond primary school, working in certain professions and visiting parks.
A 28-year-old Herat resident who asked not to be named for security reasons said she had stopped going out to meet friends with whom she used to patronise restaurants and go on shopping trips. 
"I feel like a stranger," she said of her recent experience of her home city, echoing several women who told AFP the fear of being policed made them stay home.
The restrictions have transformed the face of Herat, once known as Afghanistan's cultural capital where female university students outnumbered men before the Taliban government returned.
Taliban authorities have vowed to boost economic self-sufficiency and move off a reliance on foreign aid, which once formed the backbone of the previous US-backed government's finances.
But economists say that is only possible if Afghanistan, recovering from decades of war, develops its private sector.
The country is in the grips of a humanitarian crisis, exacerbated by the slashing of foreign assistance and the need to integrate millions of Afghans pushed back from neighbouring Iran and Pakistan.
The UN estimated shortly after Taliban authorities took power that policies excluding women could cost the economy $1 billion annually.
- 'No woman, no bazaar' –
Women in Herat told AFP that they no longer go out unless absolutely necessary, fearing they could be stopped by the Taliban's Ministry for the Propagation of Virtue and the Prevention of Vice (PVPV) officers over alleged dress-code violations. 
A 27-year-old woman said she used to take private transport to attend language classes every weekday. Since June, she has barely left the house.
"I've been gripped by fear and terror. I truly gave up everything out of fear," she told AFP. 
Her daily transport costs were around $0.78, a small but significant injection into the local economy in a country where most of the population live beneath the poverty line.
Farshid Karimi, a 21-year-old autorickshaw driver, said his profits used to hit around $9 a day, but in the last few weeks he is lucky if he earns $4.
"Before, the women could freely take the rickshaw to go around. Now, as the restrictions have been imposed, they do not go out so there is no work for us," Karimi said.
A 31-year-old woman told AFP sheused to spend more than $20 at a time on clothes, but that she had stopped her shopping trips.
That has reverberated through the economy to those like the tailor, Ghafoori.
"The bazaar (market) revolves around women," he said. "If there is no woman, there is no bazaar."
str-ash/iw/ceg/ane

economy

Economic uncertainty looms over Venezuela quake zone

BY BRIAN CONTRERAS

  • The disaster has claimed over 4,000 lives and injured almost 17,000 more people, and questions about the economic impact abound.
  • Economic woes have joined the long list of worries facing Venezuelans living in the coastal region that suffered unthinkable damage during twin tremors a fortnight ago.
  • The disaster has claimed over 4,000 lives and injured almost 17,000 more people, and questions about the economic impact abound.
Economic woes have joined the long list of worries facing Venezuelans living in the coastal region that suffered unthinkable damage during twin tremors a fortnight ago.
"What am I going to do? Where am I going to work? What am I going to achieve? Where am I going to get money?"
Faisuris Alvarez, who runs a beachside fish stand, agonized aloud over these questions without answers. 
The coastal city of La Guaira is located just north of Caracas and usually serves as the perfect seaside getaway for residents of the capital.
But the 7.2 and 7.5 magnitude earthquakes on June 24 decimated the city, with mountains of rubble replacing the high-rise buildings that once lined the coast.
The disaster has claimed over 4,000 lives and injured almost 17,000 more people, and questions about the economic impact abound.
The United Nations Office for Disaster Risk Reduction estimates losses of almost $37 billion in material damage alone.
Jobs, goods and services have all but disappeared, with uncertainty coloring the future.
"In addition to direct losses, there are usually indirect effects on trade, transportation, supply chains, employment and consumption," said economist Asdrubal Oliveros.

Limbo, looting

Alvarez's coworkers reassure her that annual visitors to the resort town will be back next year. But for now she and dozens more people who work the same spot are left in limbo, without an income.
"The guy who sells clams, the one who sells boiled eggs, the one who sells green mango with salt, the wafer seller, the ice cream seller... What's become of those people?" the 39-year-old asked.
Luis Baena gazed at the charred remains of his warehouse, which was destroyed during the quakes and then looted and burned in the chaotic aftermath.
The businessman filmed people making off with over six containers of lighting equipment the morning after the tremors, appealing for help on social media but to no avail.
Little now remains of his family business "Bilight," which once employed more than 60 other households in La Guaira.
"The efforts of so many families and so many people who depend on this place are at stake right now," Baena told AFP.
"It's tough," the 52-year-old said tearfully as he looked at the destroyed business he ran with his brother.

Getting 'back on track'

While any semblance of normal life has been shattered for some, it is tentatively resuming for others.
In Maiquetia -- La Guaira's economic hub where the port and airport are located -- businesses are opening their doors again.
Hairdresser Anabel Delgado waited for customers outside the salon where she works.
The 56-year-old believes she survived the horrific quakes for a reason.
"If God left us here, it is so we can offer comfort, carry on and keep fighting for those of us who remain," Delgado said.
She has not received many clients yet, but there are signs of recovery.
"This is something that takes time, getting back to normal," said shopkeeper Enio Fernandez, 49. "Everything is going to get back on track."
The quake zone's ability to get back on its feet depends on the success of the state in overseeing recovery.
"Reconstruction can become a driver of economic activity, but only if there are sufficient resources, institutions capable of carrying it out, and rules that generate confidence for investment," said Oliveros.
As rescue teams wind down efforts to salvage survivors from the rubble, and as residents leave the city -- due to dire economic prospects, trauma or both -- the streets appear more deserted than ever.
But Baena the businessman is convinced the people will "fight for La Guaira."
"Together we will make this a livable place," he said.
bc-pgf/cc/mlm

travel

Boeing unveils new 737 MAX production line as aviation giant charts comeback

BY JOHN BIERS

  • In addition, the agency must sign off on the company's production plans for Everett before commercial aircraft can be delivered. jmb/ksb
  • Boeing marked another step in a marathon comeback Friday when it celebrated expanded production of the 737 MAX, now an aircraft in heavy demand after earlier disasters tarnished the company's reputation.
  • In addition, the agency must sign off on the company's production plans for Everett before commercial aircraft can be delivered. jmb/ksb
Boeing marked another step in a marathon comeback Friday when it celebrated expanded production of the 737 MAX, now an aircraft in heavy demand after earlier disasters tarnished the company's reputation.
At a rousing ribbon-cutting ceremony attended by hundreds of Boeing employees, commercial airlines chief Stephanie Pope and Washington state elected officials characterized the new $1 billion "North Line" MAX production line investment in Everett, Washington as the appropriate next step for an industrial site that has been building Boeing's most storied aircraft for decades.
"This investment is a vote of confidence in our workforce, in American manufacturing, and the future of aerospace in the city of Everett," said Everett Mayor Cassie Franklin. "This factory has repeatedly shown the world what is possible."
Boeing has big plans for the North Line, envisioning a production cadence comparable to that in Renton, 35 miles to the south, which until this week was the exclusive home of MAX assembly.
But in keeping with Boeing's caution after two deadly MAX crashes, executives plan a gradual ramp-up in Everett for a jet that once defined the company's problems but is now at the center of its comeback.
"It's a rolling start," Jennifer Boland-Masterson, senior director for Boeing's North Line production said earlier this week on a media tour of the new production line.
"We're going to start off slower and then increase our rates," Boland-Masterson said, describing the work ahead on the site's first 737 MAX 10 fuselage that was just beginning to be assembled.
The Everett building was used to assemble the Boeing 787 Dreamliner before Boeing shifted the operation to South Carolina.
While triumphant music played at Friday's ceremony, the massive Convention Center-scaled space was largely empty earlier in the week, save for dormant cranes, a scattering of workers and the occasional hum of drilling. 
The Everett operation is based closely on the MAX assembly lines in Renton. Operations are spread out over 10 "flow days," including days when wings are added and the structure is outfitted with engines, seats and other components.
Boland-Masterson declined to offer a timetable for when the first North Line MAX aircraft would complete the process. Boeing is training 1,000 North Line staff, about half from Renton and the rest new recruits.
The operation -- located in Everett because of the lack of available land in Renton -- will be a central element in Boeing's goal to lift MAX output from the current 47 per month to 63 and possibly higher, in a ramp-up closely overseen by federal aviation regulators. 

Regulatory hurdles remain

The MAX has been a key element in a long period of Boeing stumbles. Those began with a pair of deadly crashes in 2018 and 2019 that together claimed 346 lives and prompted congressional hearings in which Boeing was slammed for degrading safety in the chase for profits, and for misleading Federal Aviation Administration (FAA) regulators during certification.
The company replaced its leadership in December 2019, but doubts about the MAX re-emerged in January 2024. 
Then, a window panel on an Alaska Airlines jet blew out midflight before an emergency landing that miraculously resulted in no fatalities. The incident plunged Boeing back into crisis, prompting another leadership shakeup.
Since then, CEO Kelly Ortberg has implemented process and quality control improvements and worked to restore credibility with airline customers and FAA regulators, who greenlighted MAX production increases from 38 to 42 and then from 42 to 47.
Ortberg told a Wall Street conference in late May that it would take "a few months of stabilization" at the 47 level in terms of readying the supply chain while monitoring key performance indications.
After a "low-rate initial production" at Everett, the "North Line will help enable the 737 MAX program to reach 52 airplanes a month," according to a Boeing handout.
But Boeing has key FAA hurdles to clear, including the certification of the 737 MAX 10. In addition, the agency must sign off on the company's production plans for Everett before commercial aircraft can be delivered.
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