Business

BRUSSELS — Amazon has offered a settlement against EU charges that the online giant undermined rivals by misusing the sensitive information of independent sellers to benefit its own retail business, the EU said on Thursday.

The offer by Amazon is a ‘huge’ step by the US-based company that has denied for years accusations by rivals and regulators that it unfairly uses the troves of data parked on its platform to benefit its own products and services.

In its offer, the US tech giant commits to stop using non-public data such as sales performance and revenue that are "relating to or derived from the activities of independent sellers on its marketplace," an EU statement said.

Amazon also made an offer to end a second EU investigation on whether its hugely popular Prime service unfairly pushes buyers towards sellers using Amazon's logistics service.

This probe also looked into the Buy Box in which a user can swiftly make a purchase, skipping through the inconvenience of several screens and choices.

The company said it would display an alternative offer in the Buy Box feature if there is a substantial difference in price or delivery from the first one.

Amazon said while "we... disagree with several conclusions the European Commission made, we have engaged constructively with the Commission to address their concerns".

This will "preserve our ability to serve European customers and the more than 185,000 European small and medium-sized businesses selling through our stores".

'Win-win' 

The EU said it was asking rivals for feedback on Amazon's concessions by September 9 and, if approved, they would remain in place for five years under close monitoring by Brussels.

Many of these accusations towards Amazon are being answered separately in the EU's landmark Digital Markets Act (DMA), a major EU legislation set to come into force next year.

The DMA imposes a long list of do's and don'ts on tech giant gatekeepers, including how they handle the sensitive data of competitors who use their platforms.

Alfonso Lamadrid, a competition lawyer at Garrigues in Brussels said the settlement offer was "a win-win" for both the Commission and Amazon.

On the one hand, it kept the commission from potentially fighting a long battle in court, and "at the same time the commitments essentially anticipate what Amazon would have needed to do to comply with the upcoming DMA", he said.

Amazon had previously settled a case with the EU commission over e-books and still faces scrutiny with national regulators in Germany, as well as non-EU Britain.

The commission said the settlement would not apply in Italy, where Amazon paid a huge fine and changed its business practices over similar concerns.

BALI, Indonesia — A two-day meeting of finance ministers from the Group of 20 major economies ended on Saturday in Indonesia without a joint communique after Russia's war in Ukraine divided the global forum.

During talks on the Indonesian resort island Bali, the finance chiefs looked for solutions to food and energy crises, while accusing Russian technocrats of exacerbating the problems.

US Treasury Secretary Janet Yellen, Australian Treasurer Jim Chalmers and Canadian Finance Minister Chrystia Freeland on Friday blamed the invasion of Ukraine for sending a shockwave through the global economy.

In place of a formal communique would be a 14-paragraph statement issued by Indonesia, the G-20 chair's Finance Minister Sri Mulyani Indrawati said in closing remarks.

She said there was consensus on most of the document but two paragraphs would focus on members' differences regarding the war's impacts and how to respond.

"I think this is the best result," she said.

At the beginning of the second day of talks, Indonesian central bank governor Perry Warjiyo called on ministers and global finance leaders to concentrate on recovery in a world economy reeling from the COVID-19 pandemic.

The meeting took place after the International Monetary Fund (IMF) slashed its global growth forecast, with another downgrade expected this month as US inflation stokes fears of a recession.

But the talks have been overshadowed by the Ukraine war after it roiled global markets, caused rising food prices and added to breakneck inflation.

The Kremlin calls the war a "special military operation" and blames retaliatory Western sanctions for blocking food shipments and rising energy prices.

Russian Finance Minister Anton Siluanov and Ukrainian Finance Minister Serhiy Marchenko participated virtually in the meeting.

Russian Deputy Finance Minister Timur Maksimov attended the talks in person a week after Foreign Minister Sergei Lavrov walked out of a G-20 meeting over Western criticism of the invasion.

Maksimov was in the room as Western officials expressed their condemnation, according to a source present. Marchenko called for "more severe targeted sanctions" against Moscow.

Observers said the failure to agree on a joint communique would hinder coordinated efforts to solve rising inflation and food shortages.

"The lack of a G-20 finance ministers' communique means it will be more difficult for the G-20 to forge a consensus on vital issues in the fall," said Eric LeCompte, executive director of Jubilee USA Network, an NGO that lobbies for developing nation debt relief.

"Internal divisions hinder the G-20's ability to act decisively and leaves the world in uncharted waters."

Yellen held bilateral meetings with counterparts from Indonesia, Saudi Arabia, South Africa, Australia, Singapore and Turkey, the Treasury said, lobbying their support for a price cap on Russian oil to cut off Putin's war chest.

In response to the food crisis, the IMF, World Bank, World Food Programme, Food and Agriculture Organisation and the World Trade Organisation also called for action in four areas.

"Support the vulnerable, facilitate trade, boost food production and invest in climate-resilient agriculture," IMF chief Kristalina Georgieva tweeted late Friday, summarising the call to action.

Members also discussed sustainable finance, cryptocurrencies and international taxation on Saturday.

Mulyani said "progress" was made on international tax rule changes that will set a global minimum corporate tax rate of 15 per cent by 2024.

KESWICK, United Kingdom — Job vacancies seem to come ten-a-penny in Keswick, a tourist town in England's picturesque Lake District, as the hospitality sector cries out for staff — shortages which are a direct result, critics say, of the coronavirus pandemic and of Brexit.

"Two live-in chef positions available. Excellent rates of pay," reads one advert in a restaurant window.

"Hiring. No experience needed," says another in a fish-and-chip shop.

Britain's ruling Conservative party claims to have engineered a "jobs miracle" since coming to power in 2010, with the national unemployment rate currently standing at 3.8 per cent, the lowest level in almost 50 years. 

That is, in fact, better than the International Labour Organisation's definition of "full employment" — a jobless rate of five per cent.

But for Tony Wilson, director of the Institute for Employment Studies, while the current situation in Britain may be "the best context in 20 years for workers", it is not good for the economy as a whole.

The shortage of workers may be "leading to pay growth and some improvements in employment terms, but it doesn't help the economy at all", he said.

If companies are unable to fulfil their potential then profits and overall growth take a hit, he argued.

Low growth 

Indeed, Britain is set to have the lowest economic growth of any Group of Seven country, projections show.

Back in Keswick, Alison Lamont, the 60-year-old co-owner of the Relish cafe, does not have a minute to spare as she juggles serving with taking payments.

Since COVID lockdowns were lifted, the small eatery has switched to takeaway services only. 

There is simply no "time for clearing the tables", says Lamont.

Despite attempts to recruit via social media or simply by word-of-mouth, she cannot find the extra staff needed to run the cafe properly.

Young people "all want to be influencers or work from home", Lamont complains. 

"The main impact on family life is that we don't get weekends together and no time away, we have to work and work and work," she tells AFP, as her husband, who prepares the food upstairs, runs down to bring a sandwich.

Lamont, welcoming each customer like an old friend, says she bought the cafe with her husband around a year before COVID struck.

She struggles to sleep some nights and sees no end to the current situation.

"You can only do this for so long," Lamont says. 

No luck

Further up the street, the restaurant at George Hotel was forced to shut for three-and-a-half months this year because it had no chef, costing the business £30,000 ($35,000) a week, a situation that is seen again and again across the UK. 

The owner of a London beauty salon told AFP she had even resorted to using a headhunter, typically used for recruiting senior management positions, to find a beautician — with no luck so far.

In other sectors, airlines such as British Airways and EasyJet are struggling to rehire the staff they laid off in their thousands at the start of the pandemic. 

The result: Mass flight cancellations and a situation that is only set to become worse during the upcoming summer holiday season.

The reasons for Britain's current labour market woes are widely blamed on the country's decision to quit the European Union and on the economic fallout from the coronavirus pandemic. 

"Since the economy reopened... the demand for workers is much higher than the job seekers, especially in low-paid, low-skill sectors" such as cleaning, construction, distribution and warehousing, said Jack Kennedy, UK economist at recruitment group Indeed.

The fallout from COVID has caused almost half-a-million UK workers to leave the labour market, the expert said.

While employment rates in both France and Germany are currently "higher than before the pandemic", in the UK and US "it is still below pre-pandemic levels", said Wilson at IES.

No Brits 

Seasonal farm jobs — which outgoing Prime Minister Boris Johnson claimed would be filled by Britons following Brexit — remain vacant.

"I don't think it has ever been so difficult," says Derek Wilkinson, managing director of vegetable grower Sandfields Farms in central England.

Prior to Brexit, Britain's agricultural and construction sectors had relied heavily on workers from central and eastern Europe, many of whom have since returned home.

Wilkinson, 55, points out that seasonal labourers must now apply for a special visa, which can take seven weeks to come through. 

According to Indeed economist Kennedy, there is a total shortfall of around 200,000-300,000 European workers, including many Ukrainians who have stayed home to fight in the war against Russia.

With other eastern Europeans going back to home countries that have recently become more prosperous — and Britons themselves showing little inclination to take on such back-breaking work — many employers are having to look further afield for seasonal staff, from the Philippines, South Africa and Uzbekistan.

Wilkinson said that with a shortfall of 120 staff in May, Sandfields Farms would have to let 40,000 kilos of asparagus and 750,000 bunches of spring onions go to waste.

Coupled with Britain's cost-of-living crisis, that means his annual profits this year will be halved.

In order to woo workers, companies are having to offer better pay and conditions.

Wilkinson has renovated 400 mobile homes for seasonal workers, and a restaurant owner in Keswick has purchased a building to house their staff.

Gary Marx, owner of Keswick's George Hotel, has awarded pay rises far above the rate of inflation.

New perks 

Other firms are offering different kinds of perks. 

Accountancy giant PricewaterhouseCoopers, for example, allows employees to finish work early on Fridays. But some smaller companies are offering massage and aromatherapy treatments to staff, while dozens of other firms are trialling four-day weeks.

All this comes at a time when many Britons are rethinking their careers completely.

With many workers on precarious contracts, one million people switched jobs in the last quarter, seeking better pay and a better life.

Before becoming pregnant, Lorna Roberts, 26, worked in hospitality. But with the arrival of her baby and the stresses of restaurant work, she moved to retail.

"It started to become more difficult after lockdown," says Roberts, who now sells outdoor gear for Alpkit in Keswick. 

"A lot of people were rude, we were short-staffed constantly," she says, describing how former colleagues suffered panic attacks and breakdowns.

Her new, less stressful job also fits in better with her interest in nature. And Roberts says her hourly wage has also increased. 

"I saw an ad outside and I just thought to pop in and ask," she says, highlighting the ease with which people are able to switch jobs in the current climate.

NEW YORK — Citigroup reported better-than-expected results on Friday, following a strong performance in trading, as executives described US consumption as healthy despite rising inflation.

The US bank, like its peers, also suffered a drop in second-quarter profits compared with the year-ago period, boosted by the return of funds set aside early in the pandemic in case of loan defaults.

But unlike JPMorgan Chase and others, Citigroup still topped analyst expectations, in part due to higher profits in lending after Federal Reserve interest rate hikes. 

Chief Financial Officer Mark Mason told reporters that Citi's credit card business also had a "very, very strong performance", indicating consumers remain on solid footing for now.

"There's a lot of liquidity that still remains with consumers," he said on a media conference call. "Obviously that is allowing for a bit more flexibility than they otherwise would have."

But the continued spending is "hard to square" with data showing eroding consumer sentiment due to inflation, Mason acknowledged.

Citi reported profits of $4.5 billion, down 27 per cent from the year-ago period on revenues of $19.6 billion, up 11 per cent.

Citi had a net build of credit reserves of $375 million in case of bad loans.

Mason said the company "feels appropriately reserved" in case of a downturn, but saw no "signs of immediate credit loss concerns".

Elevated volatility in financial markets lifted revenues tied to trading in equities, commodities and other financial markets, offsetting a drop in merger and acquisition activity.

As with JPMorgan, Citigroup is suspending its share buybacks in light of new US stress test requirements to hold more capital in case of a downturn.

Mason said the decision also reflected uncertainty about the macroeconomy.

"We're worried about the prospect of a recession," he said. "We're worried about rate increases to kind of stabilise things as we manage through this environment and the uncertainty that comes with that."

Wells Fargo also reported a drop in second-quarter profits.

Earnings at the California-based bank were $3.1 billion, down 48 per cent from the year-ago level on a 16 per cent drop in revenues to $17 billion.

But investors were cheered by Wells' forecast of a 20 per cent jump in 2022 net interest income from last year's level in light of Fed interest rate hikes.

Citigroup shares soared 9.7 per cent to $48.40 in morning trading, while Wells Fargo jumped 6.6 per cent to $41.28.

SAN FRANCISCO — Netflix will work with Microsoft to launch a cheaper subscription plan that includes advertisements, the firms said on Wednesday, as the streaming giant fights to attract customers.

Netflix opted to develop the lower-cost offering after a disappointing first quarter in which it lost subscribers for the first time in a decade, and after years of resistance against the very idea of running ads. 

The ad-supported subscription will be in addition to the three options already available, the cheapest being $10 per month in the United States.

Microsoft will be responsible for designing and managing the platform for advertisers who want to serve ads to Netflix users. 

"It's very early days and we have much to work through," Greg Peters, Netflix's chief operating officer, said in a statement. 

Microsoft added that advertisers "will have access to the Netflix audience and premium connected TV inventory".

Adding advertising means Netflix will expose itself to some thorny issues, including debates around consumers' personal data being harvested on a massive scale to target them with more lucrative, personalised pitches. 

Analysts were not surprised by Netflix's choice in Microsoft because it offers fewer conflicts of interest for Netflix than some other companies.

"Unlike the top three ad sellers in Google, Meta, and Amazon, Microsoft hasn't pushed competing streaming products," wrote analyst Ross Benes.

After years of amassing subscribers, Netflix lost 200,000 customers worldwide in the first quarter compared to the end of 2021, which sent its share plunging. 

The streaming giant reacted by announcing the arrival of advertising on the service, with the aim to finance the investments necessary to maintain its position as leader in the industry that it launched. 

Netflix indicated it would get tougher on sharing logins and passwords, which allow many people not to pay to access the platform's content. 

HONG KONG — Asian stocks were mixed on Wednesday as traders struggled to recover some of the losses suffered at the start of the week, while oil bounced from a rout, though recession alarms continue to ring loud.

The euro clawed its way back slightly after hitting parity with the dollar for the first time in two decades, though it remains under pressure from growing concerns about an energy crisis across the eurozone and the European Central Bank (ECB) slower pace of monetary tightening.

Traders are also awaiting the release of a series of key indicators this week, including the all-important consumer price index, with expectations for another increase to a fresh 41-year high.

Another big spike in prices will reinforce the Federal Reserve's (Fed) determination to lift interest rates 75 basis points for a second successive month in July, adding to concerns that officials could go too far and tip the economy into recession.

Still, Lauren Goodwin of New York Life Investments said policymakers were unlikely to shift from their hawkish tilt for now.

"This is widely expected to be a really strong print," she told Bloomberg Television.

"Even if it is not, I don't think that changes the Fed's perspective in a couple of weeks. We won't have enough evidence that inflation is convincingly turning over."

In a further sign of the pressure being felt around the world from surging prices, the New Zealand and South Korean central banks each lifted rates 0.5 percentage points Wednesday, the first such increase by Seoul since 1999. 

After losses on Wall Street, Asian equities were mixed. Shanghai edged up after data showed a forecast-beating jump in Chinese exports, while there were also gains in Tokyo, Sydney, Seoul, Wellington and Taipei.

However, Hong Kong was unable to hold earlier gains, while Singapore, Manila and Jakarta and Mumbai were in the red.

London fell despite data showing the UK economy unexpectedly saw growth last month. Paris and Frankfurt also fell. 

Europe gas crisis 

Stephen Innes at SPI Asset Management said equities could continue to struggle owing to a perfect storm of crises engulfing trading floors.

"Typically, equity markets can deal with one risk relatively well," he said in a note. "But the current setup of sticky inflation, rapid Fed tightening, 

growth/recession risks and excessive rates volatility, to name a few, have at times left investors defenceless. 

"And with the market coalescing to a bearish consensus, stocks are having trouble sustaining a meaningful rally."

Both main crude contracts rose but were and nowhere near recovering the more than seven per cent drops suffered Tuesday, hit by bets on a drop in demand and fears of more COVID-19 lockdowns in Shanghai.

The commodity has lost a large chunk of the gains seen after Vladimir Putin's invasion of Ukraine, despite bans on imports from Russia, with some analysts saying consumers were simply choosing not to buy fuel because of the high price.

Data from the American Petroleum Institute showed US stockpiles rose 4.76 million barrels last week, Bloomberg News reported citing people familiar with the figures, indicating demand slacking off even during the key summer driving season.

Joe Biden's visit to Saudi Arabia on Friday will be followed intently as he tries to persuade the crude giant to pump more to help reduce prices.

On currency markets, the euro held just above $1 a day after hitting parity on Tuesday for the first time since late 2002, with a worsening energy crisis fanning expectations that the eurozone will plunge into recession.

With Russian energy giant Gazprom starting 10 days of maintenance on Monday on its Nord Stream 1 pipeline, the bloc — and particularly gas-reliant Germany — is waiting nervously to see if the taps are turned back on.

"A prolonged cut to the gas supply would halt a lot of economic activity, sending [Germany] deep into recession," said Tapas Strickland at National Australia Bank.

He said July 21 — when the gas should be switched back on — will be a crucial date.

"That date also happens to be the day of the next ECB meeting," he added. "Either of these events are key risk events. Russia playing gas politics by not switching on the gas supply would likely see the euro lurch much lower."