fraud

Huge Vietnam fraud case raises questions over banking system

BY ALICE PHILIPSON AND TRAN THI MINH HA

  • Even so, he said the revelations from the case meant Vietnam "will have to take exceptional steps to audit the banking system effectively".
  • A multi-billion-dollar fraud scandal involving one of Vietnam's most prominent tycoons exposed systemic weaknesses in the country's banking sector, say analysts who warn other such cases could yet emerge. 
  • Even so, he said the revelations from the case meant Vietnam "will have to take exceptional steps to audit the banking system effectively".
A multi-billion-dollar fraud scandal involving one of Vietnam's most prominent tycoons exposed systemic weaknesses in the country's banking sector, say analysts who warn other such cases could yet emerge. 
Judges on Tuesday upheld the death sentence of property developer Truong My Lan, who was convicted this year of embezzling vast sums from the Saigon Commercial Bank (SCB), which she controlled, having borrowed from tens of thousands of small investors.
Corruption is extensive in Vietnam, which ranked 83rd out of 180 in Transparency International's most recent Corruption Perception Index.
But the monumental scale of Lan's crime was unprecedented, with the $27 billion in losses prosecutors said she caused equivalent to Bosnia's entire annual gross domestic product.
Banking experts fear other damaging allegations are lurking in hidden recesses of the financial sector of the fast-growing economy, which is seen as a favoured destination for foreign investors looking for an alternative to China.
"SCB is not a single problem, it is an illness of the whole economy," banking expert Bui Kien Thanh told AFP.
The Vietnamese financial system was "characterised by a lack of tight state management", he said.
"Similar issues are rampant in society, so (Vietnam) needs to study and fix the problem before others arise."
Experts say a key systemic weakness is in the regulation of the corporate bond market, where companies borrow money from investors.

Contemplating suicide

In most developed markets, bonds are issued through independently regulated brokers on the basis of a full prospectus, graded by ratings agencies, and traded on stock exchanges.
But SCB, through its branches, misleadingly sold its bonds directly to retail customers, with staff trained for weeks on how to falsely reassure them their money was secure and the investment carried little risk.
Tens of thousands of people invested their savings in the bonds and lost everything when the bank collapsed and had to be bailed out by authorities, some of them contemplating suicide.
Most Vietnamese company debt is not rated for creditworthiness at all, with local ratings agency FiinRatings saying there were no corporate bonds with credit ratings in the country in the years before Lan's arrest.
That compared with an average of around 50 percent across the 10-member Association of South East Asian Nations (ASEAN).
According to state media, a judge at Lan's original trial asked police to look into the role played by staff at three of the world's biggest accounting firms that audited SCB's books -- Ernst & Young, Deloitte and KPMG.
None of the three responded to requests for comment by AFP.
At every level of the Vietnamese financial sector -- from employees on the ground to regulatory authorities -- there is a lack of training on financial markets, the risks involved and regulatory obligations, Thanh said.
On paper, Lan owned just five percent of shares in SCB, but at her trial, the court concluded that she effectively controlled more than 90 percent through family, friends and staff who were asked to hold stocks on her behalf. 

'Can of worms'

She then used her position to direct SCB management staff to withdraw money from the bank, over time transporting the equivalent of $4.4 billion in cash in trucks to her home and the offices of her Van Thinh Phat property firm.
"They don't question the paperwork... they just say, how are we going to do it? How fast can we do it?" said Khuong Huu Loc, an economist based in the United States. 
"The whole system is a game based on collusion," he added. "The problem is, it gets so bad, (but) people let her continue on because you don't want to open the can of worms."
That comes on top of the corruption that is deeply embedded in the system -- one former chief inspector at the State Bank of Vietnam (SBV) was found guilty of accepting a $5 million bribe to overlook financial problems at SCB.
Since the scandal emerged, Vietnam has stepped up an anti-corruption drive.
But Carl Thayer, an emeritus professor at The University of New South Wales, warned foreign investors were concerned anti-graft efforts had "led to a chilling effect on the state bureaucracy and a slowing of procedures", with officials fearing taking any decision could lead to their motives being questioned.
Even so, he said the revelations from the case meant Vietnam "will have to take exceptional steps to audit the banking system effectively".
Even if there was nothing on the gargantuan scale of SCB waiting to be found, Loc said that "there could be a smaller version out there".
"The question is how many?"
tmh-aph/slb/dan/cwl

pollution

Vietnam pushes electric motorbikes as pollution becomes 'unbearable'

BY TRAN THI MINH HA

  • Trung has long hated riding in Hanoi, rated among the world's top 10 polluted capital cities in 2023 by air quality technology firm IQAir. 
  • In Vietnam's heavily polluted capital Hanoi, teenage taxi driver Phung Khac Trung rides his electric motorbike through streets jammed with two-wheelers belching toxic fumes.
  • Trung has long hated riding in Hanoi, rated among the world's top 10 polluted capital cities in 2023 by air quality technology firm IQAir. 
In Vietnam's heavily polluted capital Hanoi, teenage taxi driver Phung Khac Trung rides his electric motorbike through streets jammed with two-wheelers belching toxic fumes.
Trung, 19, is one of a growing number of Generation-Z workers driving an e-bike trend in the communist nation where 77 million -- largely petrol -- motorbikes rule the roads.
A cheap set of electric wheels can now be had for as little as $500, but issues include wasting hours at charging stations and people finding it hard to give up their habits.
Trung has long hated riding in Hanoi, rated among the world's top 10 polluted capital cities in 2023 by air quality technology firm IQAir. 
The air "is unbearable for motorbike riders", said Trung, who is working as a motorbike taxi driver before applying to university.
"When stopping at T-junctions... my only wish is to run the red light. The smell of petrol is so bad," he told AFP after a morning rush-hour shift in air labelled "unhealthy" by IQAir. 
More than two thirds of the poisonous smog that blankets Hanoi for much of the year is caused by petrol vehicles, city authorities said last year. The World Bank puts the figure at 30 percent. 
Vietnam officials have ordered that a quarter of two-wheelers across the country must be electric by 2030 to help battle the air crisis.
In 2023 just nine percent of two wheelers sold were electric, according to the International Energy Agency -- although only in China was the share higher.

Hard to give up

Low running costs and cheap prices are pulling in students, who account for 80 percent of electric two-wheeler users in Vietnam, transport analyst Truong Thi My Thanh said.
But for older drivers, it is harder to give up what they know.
Fruit vendor Tran Thi Hoa, 43, has been driving a petrol motorbike for more than two decades and has no intention of switching. 
"The gasoline motorbike is so convenient. It takes me just a few minutes to fuel up," she said.
"I know e-bikes are good for the environment and can help me save on petrol, but I am too used to what I have," Hoa told AFP from behind her facemask.
Although most electric two-wheelers can easily be charged at home, fears over battery safety cause many to instead use one of the 150,000 EV power points installed by Nasdaq-listed VinFast across the country.
After a fire last year in Hanoi that killed 56 people, several apartment buildings temporarily restricted EV charging -- before police later ruled out battery charging as a possible cause.
But some remain fearful, while others living in crowded apartment shares have no space to power up.
Trung, whose VinFast scooter has a 200-kilometre (124-mile) range, spends up to three hours a day drinking tea and scrolling on his phone while he waits for his battery to charge -- time he could be picking up fares.
But home-grown start-up Selex, which makes e-bikes and battery packs, has pioneered a quick-fix -- stations where riders can instantly swap a depleted battery for a new one. 

'Swapping is critical'

Bowen Wang, senior sustainable transport specialist at the World Bank, told a news conference this month, that it was delivery and taxi firms, as well as rural drivers, who could really benefit.
They "typically drive much longer distances than urban users", he said. "That's where the swapping is critical."
Selex, which is now backed by the Asian Development Bank, has partnerships with delivery giants Lazada Logistics and DHL Express, who use e-bikes for some of their shipments. 
Vingroup -- helmed by Vietnam's richest man -- runs a taxi company with a fleet of thousands of e-bikes, mostly in major cities.
Selex founder Nguyen Phuoc Huu Nguyen, who left his job on a top-secret defence ministry research project to set up the company, urged the government to help drive momentum through incentives. 
He suggested that a vehicle registration fee waiver for EVs would help "end-users see the benefits of buying an e-bike".
"We all understand that EVs are good for the environment. But it needs investment."
Transport analyst Thanh emphasises that Hanoi must also embrace public transport alongside EVs if it wants to free up gridlocked streets. 
But if a shift to electric cannot fully solve Hanoi's issues, the growth in ownership "is a beacon of hope", Thanh told AFP.
bur/aph/dan

Global Edition

Seoul stocks sink amid S. Korea drama as Asian markets struggle

  • The Kospi index shed as much as 2.3 percent at the open as traders fretted over the impact of the events overnight, when Yoon declared South Korea's first martial law in more than four decades, catching its global allies off guard.
  • South Korean stocks sank more than two percent Wednesday while the won rebounded from earlier losses after President Yoon Suk Yeol dramatically declared martial law overnight before reversing the decision hours later.
  • The Kospi index shed as much as 2.3 percent at the open as traders fretted over the impact of the events overnight, when Yoon declared South Korea's first martial law in more than four decades, catching its global allies off guard.
South Korean stocks sank more than two percent Wednesday while the won rebounded from earlier losses after President Yoon Suk Yeol dramatically declared martial law overnight before reversing the decision hours later.
The shock announcement sent shivers through the trading floor in Seoul and fuelled a political crisis in Asia's third-biggest economy, with the already unpopular Yoon facing a possible impeachment.
Investors are now keeping a close eye on developments in the country, with analysts pointing out that the upheaval comes as authorities steeled for the second presidency of Donald Trump, who has vowed to reignite his hardball trade policy.
The Kospi index shed as much as 2.3 percent at the open as traders fretted over the impact of the events overnight, when Yoon declared South Korea's first martial law in more than four decades, catching its global allies off guard.
He said the decision was made "to safeguard a liberal South Korea from the threats posed by North Korea's communist forces and to eliminate anti-state elements plundering people's freedom and happiness".
However, he backed down hours later when lawmakers voted to oppose the declaration, while thousands of protesters took to the streets and the nation's largest umbrella labour union called an "indefinite general strike" until Yoon resigned.
The won tumbled more than three percent to a two-year low of 1,444 per dollar after the declaration, then bounced back to around 1,415 following the U-turn.
The South Korean finance ministry looked to provide stability, saying it would deploy "unlimited liquidity" into the country's financial markets if necessary.
Michael Wan at MUFG warned that the country could face turmoil.
"While the worst negative economic impact to South Korea including on tourism and domestic activity, may have been averted in the near-term, political uncertainty could still remain," he said in a commentary. 
"From a macro perspective, South Korea was already one of the more vulnerable countries to the impact of Trump's proposed tariffs, and this recent development could raise some further risk premium on the currency at least until we get clarity on political stability."
The losses in Seoul came as most other markets in Asia struggled, with Tokyo, Hong Kong, Sydney and Wellington down. Singapore, Taipei and Manila rose.
Wall Street had provided a healthy lead, with the S&P 500 and Nasdaq hitting fresh records as investors try to assess the chances of the Federal Reserve slashing interest rates again this month.
Meanwhile, Germany's DAX ended above 20,000 for the first time.
Even Paris eked out gains despite the brewing political crisis in France, where opposition lawmakers vowed to topple the three-month-old minority government of Prime Minister Michel Barnier in a no-confidence vote owing to a budget standoff.
The euro remained wedged around a 14-month low of $1.0500 on concerns about the outlook for the eurozone's number two economy.
Oil prices were barely moved after surging around 2.5 percent Tuesday on reports that major producers at the OPEC+ grouping were close to a deal to extend output limits.

Key figures around 0230 GMT

Seoul - Kospi Index: DOWN 2.0 percent at 2,450.89
Tokyo - Nikkei 225: DOWN 0.4 percent at 39,077.04 (break)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 19,687.75
Shanghai - Composite: DOWN 0.2 percent at 3,372.50
Euro/dollar: DOWN at $1.0504 from $1.0511 on Tuesday
Pound/dollar: DOWN at $1.2668 from $1.2673
Dollar/yen: UP at 149.91 yen from 149.53 yen 
Euro/pound: DOWN at 82.92 from 82.94 pence
West Texas Intermediate: FLAT at $69.96 per barrel
Brent North Sea Crude: FLAT at $73.64 per barrel
New York - Dow: DOWN 0.2 percent at 44,705.53 (close)
London - FTSE 100: UP 0.6 percent at 8,359.41 (close)
dan/cwl

Global Edition

Global stocks end mostly up with DAX crossing 20,000 for 1st time

  • Germany's blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil.
  • Global stocks mostly rose Tuesday, with US and German indices posting records, as markets weighed Chinese stimulus hopes, political tensions in France and the US interest-rate outlook.
  • Germany's blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil.
Global stocks mostly rose Tuesday, with US and German indices posting records, as markets weighed Chinese stimulus hopes, political tensions in France and the US interest-rate outlook.
Germany's blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil. In New York, both the S&P 500 and Nasdaq narrowly rose to finish at records, while the Dow pulled back.
Oil prices jumped more than two percent following reports that crude exporters were near an agreement to extend production limits.
A closely-watched labor market report showed an increase in US job openings in October, but also a decline in new job postings during the month, a less upbeat sign.
Samuel Tombs, chief US economist at Pantheon Macroeconomics, said the data overall provides "good grounds" for the Federal Reserve to lower interest rates again this month.
Still, the choppiness of Tuesday's trading session in New York points to reticence among US investors following a series of post-election records that many pundits believe have left stocks overvalued.
"There wasn't a lot of conviction behind the upside moves," said Briefing.com. "The overall vibe in the market was more negative."
Stocks in Paris edged higher even as France headed into a new political crisis as opposition lawmakers vowed to topple the minority government of Prime Minister Michel Barnier in a no-confidence vote after just three months in office.
Germany's DAX, meanwhile, scored a fresh milestone, defying multiple headwinds battering Europe's biggest economy.
The German economy, hit hard by a manufacturing slowdown and weak demand for its exports, has struggled in 2024. Yet the DAX has advanced in large part because companies in the index do heavy business abroad. 
In addition, the euro's recent weakness has boosted Germany's export-oriented companies, while easing interest rates both in the eurozone and the United States have also helped sentiment.
Investors greeted a Bloomberg report that China's top leaders, including President Xi Jinping, would hold a two-day economic work conference next week to outline their targets and stimulus plans for next year.
The report followed manufacturing activity data on Monday that suggested China's economic struggles may be coming to an end, but investors are looking for Beijing to step up support for the economy.
The news helped push Hong Kong and Shanghai stock markets higher despite Washington announcing new export restrictions taking aim at Beijing's ability to make advanced semiconductors.
The moves step up existing US efforts to tighten curbs on exports of state-of-the-art AI chips to China.
Beijing hit back by saying it would restrict exports to the United States of some key components in making semiconductors.
Oil prices jumped ahead of a meeting Thursday of members of the OPEC oil cartel and its allies
"The forecast is that they will announce an extension until the end of the first quarter of 2025, and this should help put a floor under prices," said Trade Nation analyst David Morrison.

Key figures around 2130 GMT

New York - Dow: DOWN 0.2 percent at 44,705.53 (close)
New York - S&P 500: UP 0.1 percent at 6,049.88 (close)
New York - Nasdaq Composite: UP 0.4 percent at 19,480.91 (close)
London - FTSE 100: UP 0.6 percent at 8,359.41 (close)
Paris - CAC 40: UP 0.3 percent at 7,255.42 (close)
Frankfurt - DAX: UP 0.4 percent at 20,016.75 (close)
Tokyo - Nikkei 225: UP 1.9 percent at 39,248.86 (close)
Hong Kong - Hang Seng Index: UP 1.0 percent at 19,746.32 (close)
Shanghai - Composite: UP 0.4 percent at 3,378.81 (close)
Euro/dollar: UP at $1.0511 from $1.0498 on Monday
Pound/dollar: UP at $1.2673 from $1.2655
Dollar/yen: DOWN at 149.53 yen from 149.60 yen 
Euro/pound: DOWN at 82.94 from 82.95 pence
Brent North Sea Crude: UP 2.5 percent at $73.62 per barrel
West Texas Intermediate: UP 2.7 percent at $69.94 per barrel
burs-jmb/dw

court

Partner of ex-Abercrombie & Fitch CEO pleads not guilty to sex trafficking

  • Jacobson also pleaded not guilty to the same charges as the other defendants and was released on half a million dollars bond in October. bur-nr/dw/md
  • The partner of the ex-CEO of the Abercrombie and Fitch clothing line pleaded not guilty Tuesday in US federal court to charges of sex trafficking and interstate prostitution and was released on $10 million bond.
  • Jacobson also pleaded not guilty to the same charges as the other defendants and was released on half a million dollars bond in October. bur-nr/dw/md
The partner of the ex-CEO of the Abercrombie and Fitch clothing line pleaded not guilty Tuesday in US federal court to charges of sex trafficking and interstate prostitution and was released on $10 million bond.
Briton Matthew Smith, the ex-CEO Mike Jeffries and their fixer James Jacobson allegedly used a "casting couch" ploy to groom aspiring male models to attend sex parties at which victims were plied with alcohol and drugs.
After his arrest in October in Florida with Jeffries, Smith was held in custody in New York. Smith appeared in court Tuesday in Central Islip on Long Island, to the east of New York City.
Smith pleaded not guilty and was released on a $10 million bond put up by Jeffries and his family, said a statement from the US attorney's office for the eastern district of New York.
An AFP photographer saw Smith leave the courthouse with what appeared to be a large electronic surveillance bracelet attached to his ankle.
Another hearing is scheduled for December 10 for Smith, Jeffries and Jacobson.
Jeffries, 80, was released on a $10 million bond in late October.
Jeffries, who served as CEO of Abercrombie and Fitch from 1992 to 2014, is accused of creating and maintaining a ring that recruited young men to have sex with him and Smith.
Prosecutors allege that between December 2008 and March 2015 Jeffries, Smith and Jacobson used a combination of "force, fraud and coercion" to traffic men in a sprawling prostitution enterprise.
Charging documents detail 15 anonymous victims, but prosecutors suggest the scale was probably much larger and have appealed for witnesses and victims to come forward.
Prosecutors say young men were taken to the New York home of Jeffries and Smith and to hotels in Britain, France, Italy, Morocco to have sex with them.
Jeffries faces the prospect of life in prison if convicted.
Jacobson also pleaded not guilty to the same charges as the other defendants and was released on half a million dollars bond in October.
bur-nr/dw/md

AI

Amazon launches AI models to challenge rivals

  • Even if Google, Microsoft and OpenAI have taken the lead on AI, AWS remains the market leader in cloud computing, which is needed to power artificial intelligence tools and products.
  • Amazon on Tuesday unveiled a suite of artificial intelligence models in its boldest move yet to compete with tech giant rivals in the fast-growing generative AI sector.
  • Even if Google, Microsoft and OpenAI have taken the lead on AI, AWS remains the market leader in cloud computing, which is needed to power artificial intelligence tools and products.
Amazon on Tuesday unveiled a suite of artificial intelligence models in its boldest move yet to compete with tech giant rivals in the fast-growing generative AI sector.
The launch of its own line of foundation models marks Amazon's latest push to strengthen its position against forerunners Microsoft, Google, Meta and OpenAI, the creator of ChatGPT.
Until now, Amazon's AI offerings through its AWS cloud service had largely been limited to providing access to models from other companies, including Anthropic, an AI startup it backs.
Even if Google, Microsoft and OpenAI have taken the lead on AI, AWS remains the market leader in cloud computing, which is needed to power artificial intelligence tools and products.
"Inside Amazon, we have about 1,000 Gen AI applications in motion, and we've had a bird's-eye view of what application builders are still grappling with," said senior vice president Rohit Prasad, who is leading the company's AI efforts.
"Our new Amazon Nova models are intended to help with these challenges," he added.
The Amazon Nova family includes six AI models handling tasks from text creation to video generation. 
The company says the models are at least 75 percent cheaper than comparable offerings available on AWS servers and faster than similar models.
The initial lineup includes Nova Micro for fast text processing, Nova Lite for basic multimedia tasks, and Nova Premiere, set for an early 2025 release, for complex reasoning. 
Supporting 200 languages, the models can be customized using customers' proprietary data – a feature Amazon hopes will attract enterprises developing specialized AI applications.
Two dedicated models target creative content: Nova Canvas for image generation and Nova Reel for video creation. 
Amazon emphasized built-in safety measures for the new offerings, which will be available through AWS's Bedrock service, with usage guidelines detailing specific use cases and limitations.
arp/sst

justice

Bolivian ex-president, who fled to US, sentenced to six years prison

  • The Supreme Court on Monday night found him guilty of "anti-economic conduct" and "breach of duty" over the awarding of around 100 contracts for oil exploration and commercialization when he was president.
  • A Bolivian court has sentenced ex-president Gonzalo Sanchez de Lozada in absentia to six years and three months in prison for handing out dozens of oil contracts without parliamentary approval, the justice ministry said Tuesday.
  • The Supreme Court on Monday night found him guilty of "anti-economic conduct" and "breach of duty" over the awarding of around 100 contracts for oil exploration and commercialization when he was president.
A Bolivian court has sentenced ex-president Gonzalo Sanchez de Lozada in absentia to six years and three months in prison for handing out dozens of oil contracts without parliamentary approval, the justice ministry said Tuesday.
Sanchez de Lozada, 94, served as president from 1993 to 1997 and 2002 to 2003 before resigning and fleeing to the United States in 2003 after deadly protests over his plans to export natural gas.
The Supreme Court on Monday night found him guilty of "anti-economic conduct" and "breach of duty" over the awarding of around 100 contracts for oil exploration and commercialization when he was president.
In its ruling in the two-decade-old case, the court found that the contracts violated the constitutional and legal regulations in force at the time.
Former hydrocarbons ministers Jorge Berindoague and Carlos Alberto Contreras and former deputy hydrocarbons minister Carlos Alberto Lopez each received five-year prison sentences.
Justice Minister Cesar Siles hailed the "historic, unprecedented conviction" of Sanchez de Lozada.
He called it a victory for the victims of the so-called 2003 "Gas War" between Sanchez de Lozada's government and the mostly Indigenous Bolivians who protested the president's plans to export gas to the United States through Chilean ports. 
The proposal caused anger because the terms were seen as unfavorable to Bolivia and because Chile had cut Bolivia's access to the sea in an 1879 war.
Sanchez de Lozada, a free-market champion, fled Bolivia in October 2003 after a brutal crackdown on the demonstrations in La Paz and neighboring city of El Alto in which at least 60 people were killed and 400 injured.
Siles said the government would seek his extradition from the US.
gta/db/cb/nro

trade

China curbs exports of key chipmaking components to US

BY ISABEL KUA AND OLIVER HOTHAM

  • Washington announced Monday restrictions on sales to 140 companies including Chinese chip firms Piotech and SiCarrier, expanding efforts to curb exports of state-of-the-art chips to China.
  • Beijing said Tuesday it would restrict exports to the United States of some key components in making semiconductors, after Washington announced curbs targeting China's ability to make advanced chips.
  • Washington announced Monday restrictions on sales to 140 companies including Chinese chip firms Piotech and SiCarrier, expanding efforts to curb exports of state-of-the-art chips to China.
Beijing said Tuesday it would restrict exports to the United States of some key components in making semiconductors, after Washington announced curbs targeting China's ability to make advanced chips.
Among the materials banned from export are metals gallium, antimony and germanium, Beijing's commerce ministry said in a statement that cited "national security" concerns.
Exports of graphite, another key component, will also be subject to "stricter reviews of end-users and end-uses", the ministry said.
"To safeguard national security interests and fulfil international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States," Beijing said.
"Any organisation or individual in any country or region violating the relevant regulations will be held accountable according to the law," it added.
Washington announced Monday restrictions on sales to 140 companies including Chinese chip firms Piotech and SiCarrier, expanding efforts to curb exports of state-of-the-art chips to China. These can be used in advanced weapons systems and artificial intelligence.
The new US rules also include controls on two dozen types of chip-making equipment and three kinds of software tools for developing or producing semiconductors.
Beijing swiftly vowed to defend its interests.

'Weaponised' trade

On Tuesday, China added that the United States had "politicised and weaponised economic, trade and technological issues" as it unveiled its own export curbs.
The moves also restrict the exports of "dual-use items to United States military users or for military purposes", Beijing said.
China accounts for 94 percent of the world's production of gallium -- used in integrated circuits, LEDs and photovoltaic panels -- according to a report by the European Union published this year.
For germanium, essential for fibre optics and infrared, China makes up 83 percent of production.
Beijing last year already tightened restrictions on exporters of the metals, requiring them to provide information on the final recipient and give details about their end use.
But Tuesday's rules now ban them outright.
It also previously restricted exports of certain types of graphite -- key to making batteries for electric vehicles.
"The move is clearly a retaliatory strike at the US," Dylan Loh, an assistant professor at Singapore's Nanyang Technological University, told AFP.
"It drives home an important point which is that China is not completely passive (and) there are some cards it can play and hit the US with as well with regards to chips," Loh added.  
These "back and forth curbs" could create supply chain disruption, as well as inflationary pressures, should they affect trade for third parties, said Chong Ja Ian, an associate professor of political science from the National University of Singapore. 
While the metals play critical roles in high-tech industries, they are upstream in the supply chain, meaning the immediate impact on production "is limited", Brady Wang, associate director at technology market research firm Counterpoint, told AFP.
"As the US-China trade tensions have persisted for some time, many intermediary manufacturers in the supply chain have been stockpiling these materials," Wang added. 

'Be cautious'

Multiple Chinese trade associations released similarly worded statements Tuesday urging members to seek local alternatives to US chips.
The Internet Society of China called on companies to "be cautious when procuring US chips, seek to expand cooperation with chip companies in other countries and regions, and actively use chips produced and manufactured in China by domestic and foreign enterprises".
The China Association of Automobile Manufacturers accused Washington of having "arbitrarily amended the control rules, seriously affecting the stable supply of US chip products".
"The Chinese auto industry's trust and confidence in the procurement of US chip products is being shaken, and US auto chip products are no longer reliable and safe," the association said.
The US's Semiconductor Industry Association president John Neuffer said such claims over reliability and safety "are simply inaccurate".
He added that the group is evaluating the impact of latest controls by Washington and Beijing, urging "both governments to avoid further escalation".
isk-oho-bys/bfm

diplomacy

Biden announces $1 bn for Africa during maiden trip

BY AURéLIA END

  • "I'm announcing over $1 billion of new humanitarian support for Africans displaced from homes by historic droughts," Biden said. 
  • President Joe Biden on Tuesday announced more than $1 billion in humanitarian assistance to Africa during a visit to Angola, where the United States is showcasing a major infrastructure project aimed at countering China's investments on the continent. 
  • "I'm announcing over $1 billion of new humanitarian support for Africans displaced from homes by historic droughts," Biden said. 
President Joe Biden on Tuesday announced more than $1 billion in humanitarian assistance to Africa during a visit to Angola, where the United States is showcasing a major infrastructure project aimed at countering China's investments on the continent. 
Biden, the first US president to visit the former Portuguese colony, met with his Angolan counterpart Joao Lourenco earlier in the day and was scheduled to visit the port of Lobito on Wednesday for an infrastructure summit. 
Speaking at the National Slavery Museum on the outskirts of the capital Luanda, Biden -- who hands over to Donald Trump on January 20 -- said the United States was "all in on Africa" and pledged financial support. 
"I'm announcing over $1 billion of new humanitarian support for Africans displaced from homes by historic droughts," Biden said. 
The assistance will "address food insecurity and other urgent needs of refugees, internally displaced persons, and affected communities in 31 African countries, according to a statement from the US Agency for International Development.
Southern Africa is currently facing the worst drought ever recorded across the region.
Biden also spoke about slavery being "our nation's original sin, one that haunted America", as he was delivering remarks outside the museum that exhibits items used in the transatlantic trade of slaves from Africa to the Americas which spanned three centuries.
Angola was by the 19th century the largest source of slaves for the Americas, according to the Office of the Historian, a US State Department-affiliated website. 
As he left the stage, Biden told reporters he was "just getting briefed" on South Korea where the president has declared martial law. 

Future runs 'through Africa'

The trip, Biden's first to Sub-Saharan Africa since taking office, signalled a "turning point" in the bilateral relationship with Angola, the Angolan president said.
The 70-year-old leader elected in 2017 said he wanted to increase economic and security cooperation with the United States.
Biden, whose administration has invested in a massive railway project aimed at transporting critical minerals from inland countries to Angola's Atlantic port of Lobito for export, said "the future runs through Angola, through Africa."
The two presidents also discussed Russia and concerns that weapons may "end up" in Africa, according to a senior administration official.
The 82-year-old did not respond to reporters' questions about his pardon announced Sunday of his son Hunter, convicted in criminal cases related to tax evasion and the purchase of a firearm.
On Wednesday, he is to travel to Lobito, about 500 kilometres (310 miles) south of Luanda, for a summit on infrastructure investment also attended by leaders from Angola, the Democratic Republic of Congo (DRC), Tanzania and Zambia.
The port is at the heart of the Lobito Corridor project that has received loans from the United States, the European Union and others to rehabilitate a railway connecting mineral-rich DRC and Zambia with Lobito.
It is "a real game changer for US engagement in Africa", said Kirby. 
"It's our fervent hope that as the new team comes in and takes a look at this... that they see how it will help drive a more secure, more prosperous, more economically stable continent."

Chinese 'alternative'

The Lobito project is a piece in the geopolitical battle between the United States and its allies, and China, which owns mines in the DRC and Zambia among an array of investments in the region.
A senior US official said ahead of Biden's trip that African governments are seeking an alternative to Chinese investment, especially when it results in "living under crushing debt for generations to come". 
Angola owes China $17 billion, about 40 percent of the nation's total debt.
Human rights organisations have urged Biden to raise Angola's rights record during his trip.
Amnesty International said last month that Angolan police had killed at least 17 protesters between November 2020 and June 2023. It asked Biden to demand that Angola release "five government critics arbitrarily detained for more than a year".
"Biden should stand with the Angolan people and seek a public commitment by Angola's president to investigate rights violations by the security forces and appropriately hold those responsible to account," Human Rights Watch said.
aue/br-lhd/ju

holiday

Retailers point to solid US sales over holiday weekend

  • A total of 126 million people shopped in-store in 2024 compared with the 124.3 million who shopped online; the reverse was true in 2023.
  • US consumers turned out in force in stores and online over the Thanksgiving weekend, a key stretch in the holiday shopping season, a leading retailer group said Tuesday.
  • A total of 126 million people shopped in-store in 2024 compared with the 124.3 million who shopped online; the reverse was true in 2023.
US consumers turned out in force in stores and online over the Thanksgiving weekend, a key stretch in the holiday shopping season, a leading retailer group said Tuesday.
A total of 197 million shoppers, about 59 percent of the US population, made purchases during a five-day stretch that includes Black Friday and Cyber Monday, according to figures from the National Retail Federation.
That number is a bit below the record 2023 level of 200.4 million, but the second highest ever, reflecting the renewed desire to get out and about after the pandemic years, said NRF President Matthew Shay.
A total of 126 million people shopped in-store in 2024 compared with the 124.3 million who shopped online; the reverse was true in 2023.
Shay said consumers are "more thoughtful and deliberate" about purchases after a painful stretch of inflation. But pricing dynamics have improved from a few years ago, with workers' wages rising more quickly than inflation.
"Consumers are overall in a good place," according to Shay.
The NRF has warned that tariffs discussed by President-elect Donald Trump could cost Americans $78 billion in annual spending power. 
Shay said consumers have not so far adjusted their spending behavior in anticipation of tariffs but that the concern could impact sales as the season progresses. 
"Consumers are aware of the impact of tariffs and highly sensitive to the impact of pricing," he said.
The NRF has projected holiday spending growth of between 2.5 and 3.5 percent in the 2024 season compared with the year-ago period, to as much as $989 billion over the two-month period.
Other consumer data about the holiday period has also pointed to good sales. Adobe Analytics estimated sales on Cyber Monday at $13.3 billion, up 7.3 percent from the year-ago level and above Adobe's projection.
Over the same five-day stretch, sales were $41.1 billion, up 8.2 percent.
jmb/md

economy

Defying headwinds, German stocks hit milestone

BY SAM REEVES

  • The index, which groups the 40 largest publicly-traded companies on the Frankfurt Stock Exchange, hit the milestone early in the session and closed the day up 0.4 percent at 20,016 points.
  • Germany's blue-chip DAX stock index jumped above 20,000 points for the first time Tuesday following gains on US and Asian markets, defying multiple headwinds battering Europe's biggest economy.
  • The index, which groups the 40 largest publicly-traded companies on the Frankfurt Stock Exchange, hit the milestone early in the session and closed the day up 0.4 percent at 20,016 points.
Germany's blue-chip DAX stock index jumped above 20,000 points for the first time Tuesday following gains on US and Asian markets, defying multiple headwinds battering Europe's biggest economy.
The index, which groups the 40 largest publicly-traded companies on the Frankfurt Stock Exchange, hit the milestone early in the session and closed the day up 0.4 percent at 20,016 points.
The German economy, hit hard by a manufacturing slowdown and weak demand for its exports, has struggled in 2024 and is on course to contract for a second straight year.
Adding to the challenges are heightened political uncertainty as the country heads for new elections in February following the collapse of Chancellor Olaf Scholz's ruling coalition, and the threat of new US tariffs under President-elect Donald Trump.
But the DAX has nevertheless surged ahead, rising more than 19 percent since the start of the year.
"Neither a government on standby, nor recession concerns could dampen sentiment," said DZ Bank in a note.
This was in large part because the companies on the DAX "generate a large share of their sales abroad," it said. "While a weak domestic economy may not be desirable, global developments are the most important factor for share prices."
In addition, the euro's recent weakness has boosted Germany's export-oriented companies, while easing interest rates both in the eurozone and the United States have also helped sentiment.
Key German firms with big overseas footprints include Deutsche Telekom, whose US subsidiary T-Mobile operates the largest 5G network in the United States, insurer Allianz and software giant SAP.
German markets have thus benefitted from the same forces that have seen Wall Street stocks hit fresh records since Trump's election win, with investors cheering his promised tax cuts and deregulation.

Economic recovery hopes

German stocks have also been lifted by hopes that Beijing will unveil fresh stimulus to kickstart the world's number two economy -- which would support Germany's crucial exporters, for whom China is a key market.
In addition, markets are betting that the German economy will start recovering in 2025 after a torrid two years marked by surging energy prices following Russia's invasion of Ukraine and post-pandemic supply chain woes.
Investors are "looking at least nine to 12 months ahead", said independent stock market analyst Andreas Lipkow.
Some stocks on the DAX have performed strongly due to specific factors. 
Weapons manufacturer Rheinmetall is up 120 percent since the start of the year, boosted by strong demand for its defence products as countries rush to re-arm following the outbreak of the Ukraine war. 
Siemens Energy has risen more than 320 percent as it rebounded strongly after receiving a state-backed bailout last year to resolve a crisis in its wind power unit. 
It is a different story for the country's auto titans -- Volkswagen, BMW and Mercedes-Benz -- whose shares are down between 15 and 30 percent since January as they battle high costs, weak demand and fierce competition in China.
A key challenge for next year could come if Trump imposes hefty tariffs on all imports to the United States, with the German central bank warning such a move could knock one percent off the country's growth.
But at home, investors are hopeful the resolution of ongoing political problems will have a positive effect, said Jochen Stanzl, chief market analyst for Germany with CMC Markets. 
"There is hope that new elections in Germany will produce a government that will stimulate growth," he said. 
sr-kas/fz/gv

banking

Cash crunch pushes Libyans to bank cards despite hurdles

BY ISLAM ALATRASH

  • Economist Khaled al-Delfaq, 42, said that while the shortages have pushed many to shift to using cards, there needs to be an accompanying shift in awareness, and work needs to be done to "make these services more accessible".
  • In Libya, a shortage of cash in the banking system has pushed many to turn to cards for payments after more than a decade of war and instability has hammered the country's financial system.
  • Economist Khaled al-Delfaq, 42, said that while the shortages have pushed many to shift to using cards, there needs to be an accompanying shift in awareness, and work needs to be done to "make these services more accessible".
In Libya, a shortage of cash in the banking system has pushed many to turn to cards for payments after more than a decade of war and instability has hammered the country's financial system.
Across most Libyan cities, withdrawing money is akin to an obstacle course in which hundreds wait, often for hours, outside heavily guarded banks for a turn to take out cash. 
But the money all too often runs out early due to short supply.
Mistrust in that system means money is rarely reinjected back into banks, with Libyans preferring instead to keep cash on hand.
And while cashless culture has yet to take root, "the younger generations are easily adopting it", said Abdullah al-Gatet, an employee at a bank in Misrata, the country's third largest city.
Withdrawals at bank counters are capped at 1,000 dinars ($206) each time.
This, along with the cash shortage, means civil servants who make up the bulk of Libya's working population often receive their salaries late.
There is a growing awareness among Libyans of "the importance of electronic solutions to facilitate daily transactions, especially in times of liquidity crisis", said 30-year-old Gatet, "even if the infrastructure is still insufficient".

Shift in awareness

Libya has been wracked by instability and conflict since the 2011 NATO-backed uprising that overthrew and killed longtime dictator Moamer Kadhafi.
It is currently divided between a United Nations-recognised government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar.
In Misrata, a major port city and commercial hub about 200 kilometres (120 miles) from Tripoli, the population of 400,000 are increasingly signing up to receive bank cards.
But the shift towards cash-free transactions is not without stumbling blocks.
There are few ATM machines and many vendors do not accept card payments as they are not equipped with payment terminals. 
Economist Khaled al-Delfaq, 42, said that while the shortages have pushed many to shift to using cards, there needs to be an accompanying shift in awareness, and work needs to be done to "make these services more accessible".
But in the seeming absence of other options, many have already been converted.
Among those are Mohamed al-Soussi, who was shopping for his family at a supermarket in Misrata.
"Transactions are more simple with the card. I don't need to carry large wads of cash with me anymore," he said.
- Divided central bank - 
Libya's political upheaval has also precipitated another strange side-effect -- multiple prints of 50-dinar banknotes.
Libya's institutions have since 2014 been caught between the two camps vying for power in the oil-rich country, and its central bank is no exception.
Until last year, it had been split in two, with an internationally recognised headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.
In 2012, new 50-dinar bills, the largest available denomination, were put into circulation to make life easier for consumers who often make cash payments in the thousands.
But last April, the central bank announced the withdrawal of those notes from circulation due to the proliferation of counterfeits.
"The situation became even more complicated with businesses refusing the 50-dinar bills," said Moussab al-Haddar, a 45-year-old teacher who was visiting his bank branch to request a card.
The central bank had initially set a deadline for the end of August for the notes to go out of circulation, before extending it to the end of the year.
In a bid to address the current crisis, the bank injected 15 billion dinars into the system in late October, while urging banks to facilitate the issuing of cards to clients.
str-rb/fka/jsa/it/ser

UN

US 'disappointed' after plastic pollution talks collapse: White House

  • "A small group of countries and producers stood in the way of progress to protect their profits and perpetuate an inadequate status quo," it said.
  • The US government said Tuesday it was "disappointed" after nations negotiating a global treaty to curb plastic waste failed to reach a deal, blaming a "small group" of countries and producers for blocking progress.
  • "A small group of countries and producers stood in the way of progress to protect their profits and perpetuate an inadequate status quo," it said.
The US government said Tuesday it was "disappointed" after nations negotiating a global treaty to curb plastic waste failed to reach a deal, blaming a "small group" of countries and producers for blocking progress.
Delegates from nearly 200 nations debated for a week in South Korea on how to stop millions of tonnes of plastic waste from entering the environment each year.
The talks were meant to end with the world's first accord on cutting plastic pollution after nearly two years of discussions, but concluded without an agreement -- except to extend talks.
"The United States is disappointed in the lack of a legally binding international agreement fit to meet the moment on addressing plastic pollution," National Security Council spokesman Sean Savett said in a statement on Tuesday.
"A small group of countries and producers stood in the way of progress to protect their profits and perpetuate an inadequate status quo," it said.
Plastic pollution is so ubiquitous that microplastics have been found on the highest mountain peak, in the deepest ocean trench and scattered throughout almost every part of the human body.
Delegations seeking an ambitious treaty earlier warned that a handful of countries was steadfastly blocking progress.
A draft text released Sunday afternoon after multiple delays included a wide range of options, reflecting ongoing disagreement.
The talks' chair Luis Vayas Valdivieso said late Sunday that more time was needed for negotiations.
Countries including oil-producing nations like Russia and Saudi Arabia have pushed back against curbs on production of plastics.
Iran said there was a "huge gap" between parties, while Russia warned that agreeing on a treaty was "being hampered by ambitions on the part of certain parties that are too high."
Divisions between nations are so deep that they have not yet agreed on how any decision will be adopted -- by consensus or majority vote.
Environmental groups have warned that another round of talks could be similarly hamstrung if ambitious countries were not willing to push for a vote.
The world's top two plastic producers -- China and the United States -- have stayed relatively quiet about their positions in public.
dhw/sco

banking

Vietnam court upholds death sentence for property tycoon

  • The court said Tuesday that if she returns three quarters of the stolen assets, her sentence could be reduced to life imprisonment.
  • A Vietnamese court upheld the death penalty Tuesday for a property tycoon in a multibillion-dollar fraud case -- but said her life could still be spared if she paid back three quarters of the assets she embezzled.
  • The court said Tuesday that if she returns three quarters of the stolen assets, her sentence could be reduced to life imprisonment.
A Vietnamese court upheld the death penalty Tuesday for a property tycoon in a multibillion-dollar fraud case -- but said her life could still be spared if she paid back three quarters of the assets she embezzled.
Property developer Truong My Lan, 68, was convicted this year of swindling money from Saigon Commercial Bank (SCB) -- which prosecutors said she controlled -- and sentenced to death for fraud totalling $27 billion.
She appealed the verdict in a month-long trial, but on Tuesday the court in Ho Chi Minh City determined that there was "no basis" to reduce her sentence.
However, there is still a chance for Lan to escape the death penalty.
The court said Tuesday that if she returns three quarters of the stolen assets, her sentence could be reduced to life imprisonment.
Her husband Eric Chu Nap Kee, a Hong Kong billionaire, had his sentence reduced from nine years in prison to seven.
Tens of thousands of people who invested their savings in SCB lost money, shocking the communist nation and prompting rare protests from the victims.
Lan, who founded real estate development group Van Thinh Phat, earlier told the court that "the quickest way" to repay the stolen funds would be "to liquidate SCB, and sell our assets to repay SBV (State Bank of Vietnam) and the people".
"I feel pained due to the waste of national resources," Lan said last week, adding she felt "very embarrassed to be charged with this crime".
Her defence team had argued that she already paid back the money needed to be eligible for a sentence reduction. 
Lan has turned over more than 600 family properties to the court, it acknowledged -- but it was unclear how much money they were worth.
Lan's lawyer told AFP on Tuesday that in any case, it would likely be years before Lan faces execution, which is carried out by lethal injection in Vietnam.
- Harbour, luxury homes - 
Lan owned just five percent of shares in SCB on paper, but at her trial, the court concluded that she effectively controlled more than 90 percent through family, friends and staff. 
In April, a former chief inspector of the State Bank was given life in prison for accepting a five-million-dollar bribe to overlook financial problems at SCB. The court upheld the sentence on Tuesday.
The bank said in April that it pumped funds into SCB to stabilise it, without revealing how much.
Among the assets that Lan and Van Thinh Phat own are a shopping mall, a harbour and luxurious housing complexes in business hub Ho Chi Minh City.
During her first trial in April, Lan was found guilty of embezzling $12.5 billion, but prosecutors said the total damages caused by the scam amounted to $27 billion -- equivalent to around six percent of the country's 2023 GDP.
Lan and dozens of defendants, including senior central bank officials, were arrested as part of a national corruption crackdown dubbed the "burning furnace" that has swept up numerous officials and members of Vietnam's business elite.
Aside from Lan, a total of 47 other defendants requested reduced sentences at the appeal.
Last month, Lan was convicted of money laundering and jailed for life in a separate case.
bur-aph/sco

trade

China lifts final bans on Australian red meat as trade row nears end

  • China lifted suspensions on eight Australian slaughterhouses in May this year but kept barriers in place for two facilities. 
  • China has fully lifted suspensions on Australian red meat, Canberra said Tuesday, dismantling one of the final barriers in a four-year trade war that hammered US$13 billion of exports.
  • China lifted suspensions on eight Australian slaughterhouses in May this year but kept barriers in place for two facilities. 
China has fully lifted suspensions on Australian red meat, Canberra said Tuesday, dismantling one of the final barriers in a four-year trade war that hammered US$13 billion of exports.
A slew of Australia's most lucrative export commodities were effectively banned from China starting in 2020, as relations between the two nations started to fray.
But China has been gradually unwinding these barriers as Australia steps up efforts to mend ties on the diplomatic front. 
Red meat and lobster were the last two commodities subject to some form of barrier or export ban. 
Australian Prime Minister Anthony Albanese said Tuesday that China had paved the way for "full resumption of red meat exports".
Meanwhile, full lobster trade is expected to resume by the end of the year.
"We are close to the point where China's trade impediments -- which impacted Aus$20 billion (US$13 billion) worth of Australian exports -- have all been removed," trade minister Don Farrell said Tuesday.
Over the past two years, Beijing has dropped tariffs on Australian barley and wine, halted an import ban on timber and resumed shipments of coal.
China lifted suspensions on eight Australian slaughterhouses in May this year but kept barriers in place for two facilities. 

'Great outcome'

Those final two beef-processing plants were now able to resume exports to China.
China is Australia's second-most lucrative beef export market, behind the United States.
Australian Meat Industry Council spokesman Tim Ryan said it was a "great outcome". 
"After four years of hard work on behalf of red meat exporters, this is a fantastic and very welcome result," he said.
Lobster exports are the last major Australian commodity awaiting the full resumption of trade with China.
Beijing had agreed to a "timetable to resume full lobster trade by the end of this year", Albanese said in October.
The sanctions are expected to be lifted in time for Lunar New Year next year when delicacies such as rock lobster are in hot demand.
Australia's relationship with China began unravelling in 2018 when Canberra excluded telecommunications giant Huawei from its 5G network on security grounds and later passed laws on foreign interference. 
Then in 2020, Australia called for an international investigation into the origins of Covid-19 -- an action China saw as politically motivated.
Australia has spent much of the past two years trying to insulate the vital trade relationship with China -- its biggest trade partner -- from geopolitical headwinds.
Australia is part of a loose US-led alliance that has aggressively pushed back against China's bid for primacy in the Pacific region.
Tuesday's announcement comes as Beijing eyes deepening trade rifts with Europe and the United States. 
Brussels and Washington have slapped punitive tariffs on China's electric vehicle exports, semiconductors, solar panels and a range of other goods. 
lec-sft/sco

commodities

Trump says will 'block' Nippon Steel from taking over US Steel

  • Days after the US election last month, Nippon Steel said it expected to close its takeover of the company before the end of the year, while US President Joe Biden was still in office.
  • US President-elect Donald Trump on Monday said he would "block" a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9 billion including debts.
  • Days after the US election last month, Nippon Steel said it expected to close its takeover of the company before the end of the year, while US President Joe Biden was still in office.
US President-elect Donald Trump on Monday said he would "block" a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9 billion including debts.
"I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan," Trump wrote on his Truth Social platform. 
"Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening."
Embattled US Steel has argued that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.
Nippon Steel said after Trump's comments that it was "determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency, and US national security."
"We will invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at US Steel can manufacture the most advanced steel products for American customers," the Japanese firm said in a statement.
Days after the US election last month, Nippon Steel said it expected to close its takeover of the company before the end of the year, while US President Joe Biden was still in office.
Biden, too, has opposed the deal, saying it was "vital" for US Steel "to remain an American steel company that is domestically owned and operated."
The deal is being reviewed by a body helmed by Treasury Secretary Janet Yellen that audits foreign takeovers of US firms, called the Committee on Foreign Investment in the United States (CFIUS).
In September, Biden's administration extended their review, pushing a conclusion on the politically sensitive deal until after the November 5 presidential election.
A Nippon Steel earnings presentation on November 7 maintained that "the transaction is expected to close in... calendar year 2024" pending a US national security review.
"Unless the situation changes dramatically, I believe the conclusion will come by the end of the year," during Biden's time in office, vice chairman Takahiro Mori told reporters.
Trump will be inaugurated on January 20.

Protectionist policies

On the campaign trail, he vowed to install protectionist economic policies to help support US businesses, including threats to restart a trade war with the world's second largest economy, China.
While running for the White House, he specifically promised to block Nippon's takeover of US Steel, which is based in the key political battleground state of Pennsylvania.
Trump's vice presidential pick J.D. Vance also led congressional opposition to the takeover in the US Senate, where the deal has been criticized by both Republicans and Democrats.
Analysts had suggested Trump's position could soften after the election was over, but Monday's statement indicated that was not the case.
Major Japanese and American business groups have urged Yellen not to succumb to political pressure when reviewing the proposed acquisition.
The steelworkers union has fought the deal, and criticized a September arbitrators' ruling that Nippon had proven it could assume US Steel's labor contract obligations.
In September, however, some US Steel workers rallied in support of the deal, arguing it would help keep plants open.
bur-aha-stu/dhw

trade

Trump vows to defend US dollar hegemony, but is it under threat?

BY THOMAS URBAIN

  • The system has evolved since that time and several countries have stopped indexing their currencies to the dollar, but without challenging its status as the global reserve currency.
  • US President-elect Donald Trump has threatened retaliation against governments that challenge the US dollar, vowing "100 percent tariffs" on countries that undercut the US currency.
  • The system has evolved since that time and several countries have stopped indexing their currencies to the dollar, but without challenging its status as the global reserve currency.
US President-elect Donald Trump has threatened retaliation against governments that challenge the US dollar, vowing "100 percent tariffs" on countries that undercut the US currency.
The Republican vowed the action on states that "create a new BRICS Currency" or otherwise "replace the mighty US dollar," according to a post on Truth Social on Monday.
BRICS refers to a grouping that includes Brazil, Russia, India, China and South Africa, and has expanded in recent years to include Iran, Egypt, Ethiopia and the United Arab Emirates.
Trump's statement, however, comes at a time when the greenback's hegemony does not appear to be facing an immediate threat, having been the world's reserve currency for decades.

Is the dollar's influence diminishing?

The US dollar currently comprises 58 percent of foreign exchange reserves held worldwide, according to the International Monetary Fund (IMF), down from 67 percent in 2000.
But the greenback accounts for 74 percent of export invoices in the Asia-Pacific region, which is the most active in terms of international trade, the IMF says.
The dollar has maintained its unique position globally since the 1944 Bretton Woods accords, the international agreement that established the IMF and required signatories to peg their currencies to the US currency.
The system has evolved since that time and several countries have stopped indexing their currencies to the dollar, but without challenging its status as the global reserve currency.
The United States' massive role in monetary policy also reflects the country's position as the world's largest consumer of goods and services and the source of more than $8 trillion in government debt held by foreign investors.
The dominance of the US currency has not been affected by the huge scale of its debt, nor by the shakiness of its financial system during the 2008 global financial crisis.
"The US dollar remains as dominant as ever as a global funding currency, a payment currency for international transactions, and a reserve currency," said Eswar Prasad, a professor of international trade policy at Cornell University in New York state.
"Without the dollar as the dominant international currency, the multilateral trading system would effectively cease to exist –- making the global economy much less efficient," said Benn Steil, a senior fellow at the US-based Council on Foreign Relations.

Is the dollar being threatened?

Trump's comments came on the heels of a BRICS summit in October in Kazan, Russia, where members discussed boosting non-dollar transactions and strengthening local currencies.
"The BRICS today might be where Europe was in the 1970s and that's optimistic in terms of integrating," said Adam Button, chief currency analyst at ForexLive.
Recent years have seen an uptick in transactions involving local currencies, especially between China and Russia, in light of international sanctions on Moscow following its invasion of Ukraine in 2022.
There has not, however, been an official effort to employ a currency throughout the group, or at forming an official monetary union.
"I don't know if there (are) any of those countries (that) would give up monetary sovereignty," Button said. "So it's a wholly fringe idea, and I'm not even sure why Trump decided to validate it."
While China and India are by far the world's two most populous states, their currencies are not widely used outside of their borders.
Trump's broadside did not mention the euro, which plays a key role in facilitating commerce within the eurozone but has not been envisioned as having global aspirations.

Will Trump's comments impact the dollar?

The influence of the dollar means many countries can see their fortunes affected by the fluctuations of the US currency.
When the dollar is strong -- such as currently -- other countries face pressure to raise their interest rates to counter the risk of capital flight.
"The US has wielded the dollar's dominance as a weapon against its rivals through financial sanctions and even freezing of dollar reserves," Prasad said.
Jonathan Kirshner, a political scientist at Boston College who has written extensively on currencies and international relations, sees Trump's comments as largely "irrelevant for real-world international politics."
"Despite Trump's bluster, you can't force people to use the dollar -- an international currency thrives because people *want* to hold it -- and thus such coercion will only backfire," he said in an email to AFP.
tu-jmb/aha/dhw

banking

Vietnam property tycoon on death row awaits appeal verdict

  • In her official handwritten appeal of more than five pages seen by AFP, Lan said the death sentence was "too severe and harsh", asking the court to consider a more "lenient and humane approach".
  • A Vietnamese property tycoon sentenced to death in a multi-billion-dollar fraud case arrived in court Tuesday, as she awaits the verdict of her appeal in one of the biggest corruption prosecutions in history. 
  • In her official handwritten appeal of more than five pages seen by AFP, Lan said the death sentence was "too severe and harsh", asking the court to consider a more "lenient and humane approach".
A Vietnamese property tycoon sentenced to death in a multi-billion-dollar fraud case arrived in court Tuesday, as she awaits the verdict of her appeal in one of the biggest corruption prosecutions in history. 
Property developer Truong My Lan, 68, was convicted earlier this year of embezzling money from Saigon Commercial Bank (SCB) -- which prosecutors said she controlled -- and condemned to die for fraud totalling $27 billion.
In her official handwritten appeal of more than five pages seen by AFP, Lan said the death sentence was "too severe and harsh", asking the court to consider a more "lenient and humane approach".
On Tuesday, Lan sat in the front row of the courtroom, waiting to hear if her life would be spared. Next to her was her husband, who is appealing a nine-year sentence for violating banking regulations.
The month-long appeal was attended by more 100 lawyers, according to state media. 
Tens of thousands of people who invested their savings in SCB lost money, shocking the communist nation and prompting rare protests from the victims.  
According to Vietnamese law, Lan could escape the death penalty if she proactively returns three-quarters of the embezzled assets and is judged to have cooperated sufficiently with authorities.
But prosecutors have argued she has not met the conditions, and emphasised her crime's consequences were "huge and without precedent".
Lan, who founded real estate development group Van Thinh Phat, told the court in Ho Chi Minh City "the quickest way" to repay the stolen funds would be "to liquidate SCB, and sell our assets to repay SBV (State Bank of Vietnam) and the people".
"I feel pained due to the waste of national resources," Lan said last week, adding she felt "very embarrassed to be charged with this crime". 
Lan owned just five percent of shares in SCB on paper, but at her trial, the court concluded that she effectively controlled more than 90 percent through family, friends and staff. 
The State Bank said in April that it pumped funds into SCB to stabilise it, without revealing how much.
Among the assets that Lan and Van Thinh Phat own are a shopping mall, a harbour and luxurious housing complexes in business hub Ho Chi Minh City.
During her first trial in April, Lan was found guilty of embezzling $12.5 billion, but prosecutors said the total damages caused by the scam amounted to $27 billion -- equivalent to around six percent of the country's 2023 GDP.
Lan and dozens of defendants, including senior central bank officials were arrested as part of a national corruption crackdown dubbed the "burning furnace" that has swept up numerous officials and members of Vietnam's business elite.
A total of 47 other defendants have requested reduced sentences at the appeal.
Last month, Lan was convicted of money laundering and jailed for life in a separate case.
tmh/aph/cwl

women

Chinese plus-size influencer spreads body positivity through fashion

BY JING XUAN TENG

  • - Body scrutiny - Aside from Yao, other influencers in China have found an audience eager for their posts about self-acceptance and photos of themselves enjoying clothing and food, despite the pressure to diet.
  • Surrounded by racks of colourful dresses and blazers in China's manufacturing hub of Guangzhou, plus-size clothing brand owner and influencer Amanda Yao is on a mission to promote body positivity.
  • - Body scrutiny - Aside from Yao, other influencers in China have found an audience eager for their posts about self-acceptance and photos of themselves enjoying clothing and food, despite the pressure to diet.
Surrounded by racks of colourful dresses and blazers in China's manufacturing hub of Guangzhou, plus-size clothing brand owner and influencer Amanda Yao is on a mission to promote body positivity.
She is part of a small but growing number of women in China challenging restrictive beauty standards, including thinness, pale skin and childlike features.
Online, a frequently circulated saying claims that "there are no good women over 50 kilograms (110 pounds)", while recent social media challenges have women squeezing into children's clothes or showing off the coins they can stack on their collarbones.
Yao makes fashionable, high-end clothing for plus-size women, offering a vibrant contrast to the poorly cut offerings normally available in "slimming" dark colours.
"I want my customers to have clothes that express who they are inside, rather than soulless pieces that exist only to make them look thinner," the 35-year-old told AFP.
When it comes to clothing, most Chinese retailers focus on smaller sizes and "think that larger people don't need fashion and don't need beautiful clothes", Yao said. 
"But we have work, we have families, we have respectable lives, and we also need some fancy clothes sometimes."
To promote her online store, Yao posts pictures of her outfits on the Instagram-like Xiaohongshu app, often sporting leggings and tight-fitting workout tops she wears to climb the hills near her office.
"Reject body anxiety," Yao, who openly talks about weighing 100 kilograms, wrote in one post to her more than 15,000 followers. 
"So what if I wear a strappy top and have big arms?"

Embracing colour

Yao began selling plus-size clothing four years ago after returning to China from the United Kingdom, where she had worked for several years.
"I found it especially hard to buy clothing here," she told AFP.
Items ordered online often failed to match sellers' photos, and Yao grew sick of "very ugly clothes".
In her Guangzhou office and showroom this month, Yao showed off a Chinese-style pink silk jacket from her brand Yue Design, while modelling a bright green cardigan and skirt set.
"I never post photos of myself wearing black online," Yao said.
By avoiding the colour traditionally recommended for larger women, she has also encouraged some of her customers to embrace brighter, more cheerful designs.
While clothing options for plus-size shoppers remain limited, some Chinese brands have taken steps to be more inclusive in recent years.
Lingerie brand Neiwai and loungewear company An Action A Day have featured larger models in their ads, though most of their items only cater to women up to 70 kilograms.

Body scrutiny

Aside from Yao, other influencers in China have found an audience eager for their posts about self-acceptance and photos of themselves enjoying clothing and food, despite the pressure to diet.
On Xiaohongshu, the hashtag "reject body anxiety" appears in nearly 200,000 posts. 
But this is still a marked deviation from most body image content on Chinese social media.
One recent popular format involves someone posting a photo of themselves and asking viewers for makeover tips.
These posts often draw extreme scrutiny from commenters, who pick on people for flaws as specific as having a square jaw rather than the "ideal" pointed chin.
With constant exposure to idealised body types, people "start to conflate the meaning of their own worth with what they look like," Stephanie Ng, who runs Hong Kong-based mental health organisation Body Banter, told AFP.
That has dangerous consequences, including extreme dieting and eating disorders, Ng said. 
There is little official data on eating disorders in China, but the prominent Shanghai Mental Health Center reported an increase from eight such patients in 2002 to 3,000 in 2021, according to state broadcaster CGTN.
Even though Yao has built a loyal following, her posts can also attract cruel comments.
"Daring to post an ugly photo showing your ring-shaped torso fat doesn't equal confidence," one commenter wrote under one of Yao's workout posts.
She told AFP that the criticism has only made her more determined.
"I want to help women who are feeling self-hatred to look at themselves in a new way," she said.
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court

Musk's $55.8 bn Tesla pay deal again rejected by US judge

  • In a court filing, Chancellor Kathaleen McCormick of Delaware's Court of Chancery ruled that Tesla's attempt to ratify Musk's compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.
  • A US judge on Monday upheld her decision to reject Elon Musk's massive $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote.
  • In a court filing, Chancellor Kathaleen McCormick of Delaware's Court of Chancery ruled that Tesla's attempt to ratify Musk's compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.
A US judge on Monday upheld her decision to reject Elon Musk's massive $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote.
In a court filing, Chancellor Kathaleen McCormick of Delaware's Court of Chancery ruled that Tesla's attempt to ratify Musk's compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.
McCormick found multiple flaws in Tesla's ratification attempt, including "material misstatements" in documents provided to shareholders about the effect of their vote.
"The motion to revise is denied," McCormick wrote.
"The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law," she added.
In a statement on Musk's X social media platform, Tesla said it would appeal the verdict.
"Shareholders should control company votes, not judges," said Musk, in a separate post.
The court also awarded $345 million in attorney fees, significantly less than the $5.6 billion requested by the lawyers of plaintiff Richard Tornetta, a Tesla shareholder.
While acknowledging their calculation method was technically sound under Delaware law, which bases fees on the percentage of benefit achieved, McCormick ruled that such a large award would constitute an excessive windfall.
Shareholders originally backed the Musk compensation plan in March 2018 that was specifically designed to reward the 53-year-old founder for Tesla's significant growth. 
But in a lawsuit, Tornetta accused the defendants of failing in their duties when they authorized the pay plan and alleged that Musk dictated his terms to directors, who were not sufficiently independent from their star CEO.
He also accused Musk of "unjustified enrichment" and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.
During a trial in 2022, Musk countered that investors in Tesla were some of the "most sophisticated in the world" and able to keep tabs on his management.
He said Tesla had been the laughingstock of the auto industry, and it was only the massive success of the company's Model 3 that turned things around.
Musk insisted that he played no role in coming up with the package nor discussed his deal with the board members, some of them close friends, who ultimately signed off on it.
The Delaware Court of Chancery has been a pillar of US capitalism for more than a century and is the jurisdiction where roughly two-thirds of American Fortune 500 companies are registered.
Musk on Monday reposted other users' X posts calling for companies to leave Delaware.
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