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Privacy lawsuit over Chrome 'Sync' feature gets new life

By - Aug 21,2024 - Last updated at Aug 21,2024

A large Google logo is seen at Google's Bay View campus in Mountain View, California on August 13, 2024 (AFP photo)

SAN FRANCISCO — A federal appeals court on Tuesday breathed new life into a lawsuit by Chrome users who say Google gathered data even though they did not "Sync" to their accounts.

A panel of judges in California ruled that a lower court was wrong to toss the case on the grounds that Chrome users had agreed to Google's privacy policy, and that the lawsuit should head for trial.

"We disagree with this ruling and are confident the facts of the case are on our side," Google spokesperson Jose Castaneda said in response to an AFP inquiry.

"Chrome Sync helps people use Chrome seamlessly across their different devices and has clear privacy controls."

Google launched Sync in 2009 with the aim of letting Chrome users access bookmarks, passwords, tabs and more across devices by linking to a Google account, the internet giant said in a blog post.

The appellate ruling said the district court should have looked at the privacy policy consent defense from the perspective of a typical Chrome user, instead of "attributing to that user the skill of an experienced business lawyer or someone who is able to easily ferret through a labyrinth of legal jargon to understand what he or she is consenting to."

"A determination of what a 'reasonable' user would have understood must take into account the level of sophistication attributable to the general public, which uses Google's services," the appellate court judges in California wrote.

The class action lawsuit filed by Chrome users accuses Google of violating their privacy and breaking the law by collecting data about them, even through they were "unsynced."

The suit represents people who browsed the web using Chrome without Sync from July 26, 2016 to the present, according to court documents.

The appeals court also pointed out that Google did not deny collecting the users' data; instead, the company only said the users had agreed to the company's privacy policy.

Markets diverge ahead of Powell speech

By - Aug 20,2024 - Last updated at Aug 20,2024

Traders work on the floor of the New York Stock Exchange during morning trading on Tuesday in New York City (AFP photo)

PARIS — Stock markets were mixed on Tuesday as investors treaded water ahead of a key speech by US Federal Reserve chief Jerome Powell that could provide more hints of an interest rate cut.

Gold broke to a fresh record above $2,520, a third successive day of new peaks, on Fed rate cut bets that would make the yellow metal more attractive to investors.

With recent data indicating that US inflation is slowing and labour market softening, there is widespread expectation the central bank will finally start next month to unwind its long-running tight monetary policy.

In New York, the Dow was slightly down in opening deals, while the wider S&P 500 and the tech-heavy Nasdaq were barely higher.

In Europe, the main indexes were marginally lower, leaving them well up from the beginning of last week.

US shares rose strongly last week as economic data soothed fears of a recession, while still leaving the door open to interest rate cuts.

"Participants [are] once again embracing the soft landing scenario and the prospect of an imminent rate cut by the Federal Reserve. That consideration is effectively the best of both worlds," said Patrick O'Hare, an analyst at Briefing.com.

Earnings from US stores Target, Lowe's and TJX are also due this week, providing more insight into consumer confidence after reassuring retail sales figures last week.

But the main focus is Powell's remarks on Friday to the annual symposium of global central bankers at Jackson Hole, Wyoming, where he could give signals about the Fed's plans for borrowing costs.

Bets have surged that officials will cut rates by 25 basis points next month, with some even flagging 50 points, followed by two more before the end of the year.

Powell raised hopes for a move at the bank's most recent meeting when he said it could come "as soon as" September, having previously said the Fed did not need to wait for inflation to fall to its two-per cent target before reducing rates.

San Francisco Fed chief Mary Daly told the Financial Times she had "more confidence" inflation is being tamed following recent data.

Her Minneapolis Fed colleague Neel Kashkari said in the Wall Street Journal that the prospect of a weaker labour market made talk of a reduction appropriate.

Earlier in the day, Tokyo rallied 1.8 per cent, clawing back all Monday's losses, while Sydney, Seoul, Singapore, Taipei, Manila, Mumbai, Bangkok and Jakarta were also up.

However, Hong Kong and Shanghai retreated after recent advances, while Wellington also fell.

In company news, Tesla shares were up 1.3 per cent after the European Union said it would spare its China-produced cars the full brunt of anti-dumping tariffs it plans to impose on other Chinese EV imports.

Tokyo-listed 7-Eleven owner Seven&i Holdings dropped more than 10 per cent  a day after surging almost 23 per cent  on news it had received a takeover bid from Canadian retail giant Alimentation Couche-Tard, the operator of Circle K.

The deal, which could be worth as much as $38.6 billion, would mark one of the biggest foreign acquisitions of a Japanese firm.

The dollar continued to slip against the euro, yen and pound on expectations that the interest rate differential in favour of the greenback would narrow.

Crude prices steadied after plunging Monday over growing hopes for a Gaza ceasefire as US Secretary of State Antony Blinken continues talks with regional leaders.

Markets split as traders prepare for Powell speech

By - Aug 19,2024 - Last updated at Aug 19,2024

PARIS — Stock markets diverged on Monday following last week's strong performance, as traders await a meeting of central bankers that could give fresh signals about the US interest-rate outlook.

Positive data last week eased concerns about the health of the US economy after markets were hammered earlier this month due to recession fears and a Japanese interest-rate hike.

Traders are now turning their attention to the annual symposium of central bank chiefs later this week in Jackson Hole, Wyoming.

The highlight will be Friday's speech by Federal Reserve Chairman Jerome Powell, with investors hoping that he will flag an interest rate cut when Fed policymakers meet next month.

"Investors and analysts alike will be paying close attention to any signals from Fed officials about the future direction of US interest rates," said Luca Santos, currency analyst at ACY Securities.

"There's growing speculation that... Powell might hint at the possibility of starting rate cuts as early as September. But the size of the cut is still up in the air."

Santos said a "modest" cut of 0.25 percentage points seems likely while a larger 0.50-point reduction "would need stronger evidence of a weakening US job market".

All three main indexes on Wall Street rose on Friday, leaving them back near the record highs touched before their August 5 rout as investors grow confident the US economy will avoid recession as the Fed cuts rates.

Asian and European markets wavered after a positive start to Monday.

Hong Kong, Shanghai, Singapore, Sydney, Mumbai, Taipei, Manila and Bangkok rose, although Tokyo, Seoul, Jakarta and Wellington dipped.

Paris and Frankfurt were up around midday while London was slightly in the red.

Bets on a series of Fed rate cuts weighed on the dollar, with the yen among the big gainers as traders assess the chances of another Bank of Japan hike at its next meeting.

Gold held above $2,500 after breaking the barrier for the first time on Friday, fuelled by expectations for Fed cuts that will make the precious metal more attractive to investors.

And oil prices were down again after last week's losses, on the back of demand worries as China's economy struggles to recover.

Investors are also keeping tabs on talks to mediate a ceasefire between Israel and Hamas in Gaza amid fears of a wider war in the crude-rich Middle East.

Major oil producer Iran has threatened to retaliate against Israel for last month's killing of Hamas political leader Ismail Haniyeh in Tehran, which has been widely blamed on Israel.

US Secretary of State Antony Blinken met prime minister Benjamin Netanyahu and other Israeli leaders on Monday to try to unblock the process for an end to hostilities.

Accounting giant PwC fined £15m over LCF audit

By - Aug 19,2024 - Last updated at Aug 19,2024

LONDON — Accountancy firm PwC has been fined by the UK's Financial Conduct Authority for failing to report suspicions of fraud during an audit of the LCF fund, in the watchdog's first ever fine against an auditor.

The 2019 collapse of London Capital & Finance (LCF) — which sold high-yield bonds that turned out to be high-risk — was one of the biggest City scandals in recent years.

The markets watchdog handed PwC a £15 million ($19 million) fine after it signed off an audit of the group in 2016, and did not report suspicions around the group's financial conduct. 

PwC faced "significant issues" during the "very complex" audit, the watchdog said, with LCF giving the auditors "inaccurate and misleading information".

According to the FCA, this "led PwC to suspect that LCF might be involved in fraudulent activity".

But while PwC suspected fraud, the firm did not report this to the FCA as quickly as possible — which is required under UK regulations — and signed off on the audit.

"Auditors have a central role to play in keeping our markets clean," said Therese Chambers, joint executive director of enforcement and market oversight.

Libya central bank resumes operations after abducted official's release

By - Aug 19,2024 - Last updated at Aug 19,2024

A photo taken during a tour with the Libyan coastguard shows the Central Bank of Libya in the capital, Tripoli (AFP photo)

TRIPOLI — Libya's central bank said on Monday it was resuming its operations following the release of a bank official who had been abducted earlier.

The Central Bank of Libya announced in a statement that it was "resuming operations" after the release of Musab Msallem, its head of information technology, "and his safe return".

Msallem was abducted from his house Sunday morning by an "unidentified group", the bank had said, adding it would "suspend all operations" until his release.

The bank had also called for an "end to these practices" and blamed "unlawful parties" that "threaten the safety of its employees and the continuity of the banking sector's work".

Msallem's abduction came a week after the central bank's headquarters in Tripoli was besieged by armed men, before they dispersed, according to reports.

Local media said they did so in an attempt to force the resignation of the bank's governor, Seddik Al Kabir.

In office since 2012, Kabir has faced criticism — including from figures close to Prime Minister Abdulhamid Dbeibah — over the management of Libya's oil resources and the state budget.

During a meeting last week in Tunisia with US Ambassador to Libya Richard Norland, Kabir said there were "growing threats to the security" of the bank and its employees.

Norland later said in a post on X that attempts to oust Kabir were "unacceptable" and warned that replacing him "by force can result in Libya losing access to international financial markets".

Norland said the confrontation in Tripoli "highlights the ongoing risks posed by the political stalemate in Libya".

Home to 6.8 million people, Libya has struggled to recover from years of conflict after the 2011 NATO-backed uprising that overthrew Muammar Qadhafi.

It remains divided between a UN-recognised government based in the capital Tripoli and led by Dbeibah and a rival administration in the east, backed by military strongman Khalifa Haftar.

Although relative calm has returned in recent years, clashes still periodically break out between Libya's myriad armed groups.

Msallem's abduction came as rising tensions between rival factions have stirred fears of a broader escalation in recent weeks.

US stocks open lower at end of positive week

By - Aug 19,2024 - Last updated at Aug 19,2024

Traders work the floor of the New York Stock Exchange on Friday (AFP photo)

NEW YORK — US stocks edged lower in early trading Friday, as traders looked to lock in gains at the end of a positive week for major Wall Street indices. 

Around 10 minutes into trading, the Dow Jones Industrial Average was down 0.1 per cent at 40,518.87, and the S&P was 0.1 per cent lower at 5,536.08. 

The Nasdaq slipped 0.2 per cent to 17,566.08. 

However, all three major Wall Street indices are on track to end the week in the green at the end of a week in which fresh economic data pointed to a continued slowdown in annual inflation, low levels of jobless claims, and resilient retail sales. 

"The stock market had another good day on Thursday, drawing some motivation from the pleasing initial jobless claims and retail sales data, which seemed to silence the hard-landing worries," Briefing.com's Patrick O'Hare wrote in a blog post before markets opened on Friday. 

He added that "it shouldn't come as much of a surprise to hear that the equity futures market is experiencing a little bit of indigestion this morning". 

Among individual stocks, packaging company Amcor was trading down more than six per cent after it reported earnings results. 

And shares of US semiconductor equipment maker Applied Materials fell more than four per cent after it forecast revenues slightly above Wall Street expectations. 

Epic launches own app store, Fortnite back for iPhones in Europe

By - Aug 17,2024 - Last updated at Aug 17,2024

This photo taken on June 24, 2024 shows vintage video game collector "Proudro" posing for a photo at his home in Kasumigaura, Ibaraki prefecture (AFP Photo)

PARIS — Fortnite-creator Epic Games launched its own app store Friday that allows users to bypass the stores run by Apple and Google after waging a years-long battle to directly offer its games to smartphone users.

The Epic Games Store is available to users of Android phones worldwide and for iPhone and iPad users in Europe.

The launch of the store comes after Epic waged legal battles and lobbied regulators to loosen the grip of Apple and Google on the sale of apps for phones running their operating systems.

"We're very happy to be on the verge of launching our games on iOS and Android, enabled by Europe's new DMA law," Epic's chief executive Tim Sweeney told journalists from the company's office in Sweden.

The EU's new law, known as the Digital Markets Act (DMA), has forced Apple to make the opening to app developers in Europe but the US firm is not doing so elsewhere.

"The DMA required us to enable new capabilities for developers in the EU, and we have worked to make them as easy as possible for users while also trying to protect their privacy and security," Apple said Friday.

The EU's internal market commissioner Thierry Breton posted on X that "Yes, gamers, Europe means more #FREEDOM & choice!"

Fortnite is also making a return to iPhones and iPads after having been banned in 2020 for seeking to circumvent Apple's payment systems.

Epic in 2020 launched a case aimed at breaking Apple's grip on the App Store, accusing the iPhone maker of operating a monopoly in its shop for digital services.

But it lost its challenge to Apple taking a cut of as much as 30 per cent on all financial transactions in its app shop in a US federal court. In January the US Supreme Court declined to hear the case, effectively ending the legal saga.

Apple has justified the fees as helping ensure dangerous apps are weeded out and the operating system is secure.

'Friction'

Epic is the first major video game publisher to open its own app store for Android and Apple devices.

In order to attract app developers to its store Epic is offering them better revenue-sharing terms than Apple or Google.

But Epic said Apple wasn't making it easy, with a long and untransparent procedure to install their app store and disadvantageous conditions for developers to cooperate with them.

When announcing last week that it would comply with the new EU regulations Apple said it would implement a new fee structure for developers who send customers out of an app for offers and content.

Epic has set a goal of 100 million installs of its app store on Android and iOS devices by the end of the year.

"The only thing standing in our way is going to be the friction that Apple and Google put in front of us, and it's pretty significant," said Steve Allison, head of the Epic Games Store.

In addition to Fortnite, Rocket League Sideswipe is also available on the store, as is Fall Guys, which is making its first appearance on mobile.

"This is just the beginning of a long effort to bring our games back to all these platforms worldwide, and the fight's not over until Fortnite is back on iOS everywhere and free of Apple's taxes," said Sweeney.

Key moments in Boeing's difficult history with 737 MAX

By - Aug 15,2024 - Last updated at Aug 15,2024

NEW YORK — Boeing's quality control practices will be placed under a microscope this week at a two-day National Transportation Safety Board hearing investigating a January Alaska Airlines flight on a 737 MAX.

Representatives of Boeing, supplier Spirit AeroSystems and the Federal Aviation Administration are among the witnesses commenting on the near-catastrophic incident, which follows other problems at Boeing since the MAX was introduced more than a decade ago.

2011

August 30: Boeing presents the 737 MAX, its latest version of the top-selling single-aisle jet.

2017

March 8: US regulators with the Federal Aviation Administration certify the 737 MAX 8, which in takes its first commercial flight weeks later.

2018

October 29: A 737 MAX 8 operated by Lion Air crashes shortly after liftoff, killing all 189 people on board.

2019

March 10: A 737 MAX 8 operated by Ethiopian Airlines crashes about six minutes after liftoff, killing all 157 people on board.

March 11: Chinese regulators are the first to ground the 737 MAX, a move soon followed by other aviation authorities, including the FAA.

March 14: Boeing suspends deliveries of the 737 MAX.

April 4: Boeing acknowledges that flaws with a software programme called the Maneuvering Characteristics Augmentation System played a role in the crashes.

December 16: Boeing announces the suspension of 737 MAX production in January.

December 23: Boeing announces the ouster of CEO Dennis Muilenburg, who was criticized for his handling of the crisis.

2020 January 13: David Calhoun, a longtime Boeing board member, takes over as CEO of Boeing.

February 18: Boeing vows to tighten controls after finding potentially dangerous debris in fuel tanks of undelivered 737 MAX aircraft.

May 27: Boeing resumes production at low volumes of the 737 MAX.

September: Boeing says that recently discovered manufacturing problems with the 787 Dreamliner will impact deliveries. Deliveries on the jets end up being slowed or entirely halted for about two years.

November 18: The FAA clears the 737 MAX to resume service.

2021

January 7: Department of Justice (DOJ) announces a deferred prosecution agreement with Boeing in which the planemaker agrees to pay $2.5 billion in fines and restitution, and to upgrade its compliance and quality control efforts. The agreement is designed to expire in three years if Boeing meets the conditions.

January 27: European officials authorise the 737 MAX to resume service. Chinese officials do not clear the jets back into service until January 2023.

June 18: The first ever flight of the 737 MAX 10, the biggest model of the jet. The aircraft, along with the 737 MAX 7 — the smallest version in the family — have yet to be certified.

2022

April 27: Boeing pushes back the timeframe for its giant 777X, which was originally meant to go into service in 2020. The current plan is for the jet to enter service in 2025.

2023

April 14: Boeing operations are hit after supplier Spirit AeroSystems notifies that it identified "a non-standard manufacturing process" on two fittings on the fuselage of four 737 models.

December 22: China accepts its first new Boeing jet since 2019, a 787 Dreamliner. Deliveries of the 737 MAX resume in January.

December 28: Boeing urges airlines to undertake inspections after an international operator discovered a bolt with a missing nut while performing routine maintenance.

2024

January 5: A 737 MAX 9 operated by Alaska Airlines makes an emergency landing after a fuselage panel blows out mid-flight, plunging Boeing back into crisis mode.

February 26: An audit released by an FAA advisory panel offers 53 recommendations to improve Boeing's safety culture, characterizing staff as confused and distrustful of changes.

February 28: An FAA audit gives Boeing 90 days to devise a plan to significantly upgrade its quality control processes.

March 25: Boeing announces that Calhoun will step down at the end of 2024 as the company embarks on a CEO search. The aviation giant also replaces its head of commercial planes, as well as its chairman of the board.

April 17: A Senate panel hears from a Boeing whistleblower and other critics who accuse the company of punishing or sidelining criticism and downplaying problems.

May 14: The DOJ concludes that Boeing flouted its obligations under the 2021 DPA, opening up the company to possible prosecution.

May 30: Boeing submits a comprehensive plan to the FAA for upgrading safety.

July 7: Boeing and the DOJ announce an agreement that includes a guilty plea by the company to a fraud charge connected to the MAX certification.

July 31: Boeing announces that former Rockwell Collins head Robert "Kelly" Ortberg will become the CEO to begin August 8.

Stocks climb as retail sales data dispels US growth worries

By - Aug 15,2024 - Last updated at Aug 15,2024

People walk through the financial district by the New York Stock Exchange (NYSE) on Wednesday, in New York City (AFP photo)

LONDON — Stock markets mostly rose on Thursday, with strong retail sales data dispelling worries about the strength of the US economy.

Retail sales in the United States soared past analyst expectations in July, climbing by 1 per cent, data showed.

A weaker than expected labour market report recently sparked market turmoil as it raised fears that the world's biggest economy was in worse health than anticipated.

"Today's news has been like turning on the light in a dark bedroom to discover that there are no scary monsters under the bed after all," said Briefing.com analyst Patrick O'Hare.

Wall Street's main stock indices opened sharply higher and the dollar rose more than one percent against the yen after the retail sales data was released.

Concerns that the US Federal Reserve had waited too long to begin cutting interest rates have seen speculation rise that it could cut even deeper than a quarter point reduction at its next meeting in September.

But economist Michael Pearce of Oxford Economics said the retail sales data "signal continued resilience" and would keep the Federal Reserve on a path of gradual rate cuts "because fears about the health of the economy that could justify a larger cut appear unfounded".

Wednesday's consumer price index data — the smallest 12-month increase since March 2021 at 2.9 per cent — solidified expectations that the Fed would cut in September.

 

Shares in retail giant Walmart rose 7.2 per cent after it reported a rise in revenues and raised its outlook for the year.

Given its vast size and presence across the United States, Walmart's earnings are closely scrutinized for signs of the broader health of US consumers.

London's FTSE 100 stocks index rose 1 per cent amid rising expectations that the Bank of England will cut interest rates further after the nation's economic output slowed slightly in the second quarter.

Britain's economy grew 0.6 per cent in the April-June period, down from 0.7 per cent in the first three months of the year, official data showed on Thursday.

Paris and Frankfurt stocks were also solidly higher in afternoon trading.

Asia's main indices rallied, taking their cue from Wall Street gains on Wednesday's slowing inflation data.

Markets were also digesting positive growth figures from Japan — with the world's fourth-largest economy reporting a better-than-expected GDP rise of 0.8 per cent for the second quarter.

Shares in Alibaba rose 1.6 per cent in New York trading despite the Chinese e-commerce giant reporting a 29 per cent fall in quarterly profit to $3.3 as it battles sluggish consumption during an economic slowdown.

Alibaba runs some of China's most popular e-commerce apps and its performance is widely considered an indicator of broader economic trends.

Data out of China showed the country's industrial production slowing and unemployment rising in July.

 

Stock markets mostly rise as US wholesale inflation slows

By - Aug 14,2024 - Last updated at Aug 14,2024

LONDON — Global stocks mostly rose on Tuesday as attention turned to economic data and its impact on interest rates.

The week's main focus is expected to be US consumer inflation figures on Wednesday, but investors got reassuring wholesale price data on Tuesday.

The producer price index (PPI) rose by 0.1 per cent in July, down slightly from a 0.2 rise in June, the US Labor Department said in a statement.

This was slightly cooler than the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.

Core PPI that excludes volatile food and energy prices was flat. 

On an annual basis, PPI came in at 2.2 percent, down sharply from a revised 2.7 per cent rise a month earlier.

"The key takeaway from the report is the disinflation trend in total and core PPI, as that is moving in a necessary direction to drive a rate cut by the Fed," said Briefing.com analyst Patrick O'Hare.

While the mood on trading floors has calmed since last week's volatility, investors remained cagey before US consumer price figures that could influence the Federal Reserve's monetary policy decision-making.

Observers warned that the inflation readings could cause big market moves in either direction, with a weaker-than-expected print adding to worries about the world's biggest economy, while a strong reading could dent rate-cut bets.

"One of the major risks is the timing and magnitude of the Fed's rate cuts," said ACY Securities' Luca Santos.

"If the Fed delays easing monetary policy, the US economy could risk entering a deeper slowdown, leading to a potential recession.

"Conversely, if the Fed cuts rates too aggressively, it might reignite inflationary pressures or create financial market instability. Balancing these risks will be crucial for maintaining economic stability," Santos added.

Tokyo surged in Asian trading, with traders catching up with Monday's gains elsewhere after a long holiday weekend in Japan. 

London gave up early gains won after data showed Britain's unemployment rate had unexpectedly dropped in the second quarter and wage growth slowed to the lowest level in nearly two years.

But it picked up after the US wholesale inflation data, as did Frankfurt.

German investor confidence worsened more than expected in August, a survey showed Tuesday, as a hoped-for recovery in Europe's largest but struggling economy remains out of reach.

The ZEW institute's closely-watched economic expectations index fell to 19.2 points, a steep drop of 22.6 points from a month earlier.

Shares in Starbucks jumped 19 per cent at the start of trading after the coffee shop chain announced that Chipotle chief executive Brian Niccol would take over as chairman and CEO next month.

The leadership shifts come as Starbucks pushes to turn around its business, while contending with broad-based sales declines in its most recent financial results.

Chipotle shares slumped 9.5 per cent.

Crude futures dropped but remained well up over the week owing also to an escalation of tensions in the Middle East.

The White House warned that a "significant set of attacks" by Iran and its allies against Israel was possible as soon as this week after top leaders of Hizbollah and Hamas were assassinated in late July.

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