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WASHINGTON — Kristalina Georgieva was secured in her job at the helm of the International Monetary Fund (IMF) on Monday, after the Washington-based crisis lender's board reaffirmed its confidence in the Bulgarian economist. 

Georgieva's role at the institution was called into question after the September 16 publication of the findings of an investigation carried out at the request of the ethics committee of the World Bank, where Georgieva had previously held a senior role.

The investigation by law firm WilmerHale concluded that Georgieva had manipulated data in favour of China while at the global body, which she has denied.

Drawn out uncertainty over whether Georgieva would keep her job ended on Monday when the IMF board said it "reaffirms its full confidence in the Managing Director's leadership and ability to continue to effectively carry out her duties".

"The executive board considered that the information presented in the course of its review did not conclusively demonstrate that the managing director played an improper role regarding the Doing Business 2018 Report when she was CEO of the World Bank," its statement read.

The board added it would "meet to consider possible additional steps to ensure the strength of institutional safeguards".

WilmerHale's controversial findings centre on the drafting of the 2018 and 2020 editions of the World Bank report that ranks countries according to their ease of doing business.

The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital.

'Difficult episode' 

Uncertainty over Georgieva's future threatened to overshadow the IMF and World Bank fall meetings that kicked off Monday, with Georgieva due to speak during a roundtable and give a press conference on Wednesday.

The storm at the top of the fund could pull focus from topics nominally at the top of the agenda, such as threats to global economic growth and helping countries bounce back from the COVID-19 pandemic.

Georgieva welcomed the IMF board's statement, reiterating that the allegations were "unfounded".

"This has obviously been a difficult episode for me personally," said the 68-year-old, who took the helm of the IMF in October 2019 after Christine Lagarde departed to lead the European Central Bank.

"I want to express my unyielding support for the independence and integrity of institutions such as the World Bank and IMF; and my respect for all those committed to protecting the values on which these organisations are founded," she said in a statement.

The investigation has deeply divided the 24 members of the IMF's executive board. 

While France, Britain and other European countries expressed their support for Georgieva, the United States has been more reluctant to keep her in post. 

It was only at the end of nearly four weeks of discussions that Washington agreed to retain Georgieva.

'Legitimate issues' 

In a separate Monday statement, the US Treasury said Secretary Janet Yellen spoke with Georgieva "to discuss the serious issues raised by the investigation", emphasising that "the report raised legitimate issues and concerns".

Yellen said her "priority is to preserve the integrity and credibility of the World Bank and the IMF". 

She said the Treasury agreed with some IMF board members that "absent further direct evidence with regard to the role of the managing director there is not a basis for a change in IMF leadership".

But she added that the Treasury would "monitor follow-up closely, evaluate any new facts or findings, and that the WilmerHale report does underscore the need for shareholders to be vigilant in defending the integrity of both the Bank and the Fund."

Georgieva was the only candidate to lead the IMF after Lagarde's departure, which traditionally is led by a European.

The institution had to change its bylaws to approve her appointment because she was over the age limit of 65 years old.

Until then, she had spent most of her career at the World Bank, becoming its chief executive in 2017.

Georgieva is a native of Sofia, where she taught economics for 26 years and built up environmental experience with a focus on agriculture and sustainable development.

Her main priorities at the IMF have been fighting inequality and climate change, as well as better integration of women into the economy.

DOHA — Qatar, the world's biggest liquefied natural gas exporter, said on Monday it was not pleased with current global prices which have surged to record peaks. 

"I am unhappy about gas prices being high," Energy Minister Saad Al Kaabi told a press conference. 

High prices, he said, "are negative for the customer, and the customers being satisfied is the most important thing to me". 

Kaabi added: "If the customer is unhappy, he's not going to buy." 

Low energy prices during the COVID-19 pandemic were expected to wipe out Qatar's budget surplus and lead to a deficit for 2021, the government had forecast in December.

Gas prices have since soared while oil has struck multiyear highs, fuelling global fears over spiking inflation and rocketing domestic energy bills.

Kaabi said Qatar's production was "maxed out" at 77 million tonnes per year. 

"We have never 'less than' maxed out... we've not gone down, we've not gone up," he said. 

"We're just consistent. We're producing what we can."

European and UK gas prices surged last week to record peaks, energised by fears of runaway demand in the approaching northern hemisphere winter.

Europe's reference Dutch TTF gas price hit 162.12 euros per megawatt hour and UK prices leapt to 407.82 pence per therm on October 6, before easing.

Gas demand is also heightened in Asia, particularly from China, a major customer for Qatar. 

In 2019, the same year Qatar walked out of the Organisation of the Petroleum Exporting Countries (OPEC) oil cartel, the Gulf emirate said it aimed to increase its liquefied natural gas output to 126 million tonnes by 2027, based on a rise in its proven reserves. 

That was at the height of a diplomatic rift and economic blockade — settled early this year — of Doha by its neighbours. 

At the press conference where he announced a name change for state-owned Qatar Petroleum to QatarEnergy, Kaabi reiterated that Qatar has no plans to return to OPEC.

"It [oil] is not our main business. That's why we opted to get out. Some people made it political," he said. 

"We see, going forward, we're always going to be more of a gas company and country... it doesn't fit our strategy."

Gas has helped fuel Qatar's rise to become one of the world's richest countries, transforming one of the smallest Arab states and helping it to successfully bid for the 2022 football World Cup finals.

BERLIN — With a big wheel, music and an appearance by CEO Elon Musk, Tesla pulled out all the stops on Saturday to win over opponents of the electric carmaker's controversial new "gigafactory" near Berlin.

Thousands of people were brought in by special shuttle buses, with long queues forming at the Gruenheide site of the US electric vehicle maker's first European factory.

"I wanted to take a look. Tesla's a great, very innovative car manufacturer," said 25-year-old local resident Dominic, an engineer.

Construction at the plant had begun under an exceptional procedure granted by authorities two years ago, but opposition from locals over environmental concerns has held up final approval.

Demonstrators were already on the scene on Saturday morning, with a few people bearing signs like "Stop Tesla" and "water and forest aren't for private profit" gathered around 100 metres from the site.

"It's unbelievable that you can build a factory like this without permission," said 69-year-old local activist Gurdrun Luebeck.

Musk appeared at the "Giga-Fest" in the afternoon, and had to battle problems with the teleprompter to deliver a few sentences in German before continuing in English, stressing the company's green credentials.

"What this factory is about is to bring high volumes of affordable electric cars... to accelerate the transition to sustainable energy," he said to applause.

"We are ready to start production in a few months, basically November or December, and hopefully deliver our first cars in December," he added.

Environmental concerns 

Despite the local resistance, construction has been completed in double-quick time, replacing a swathe of pine forest with an enormous concrete-paved expanse accessed via "Tesla Road".

The company has laid on a big wheel, electronic music and vegetarian food trucks — an event conceived in the image of Berlin, Europe's party capital.

Tesla began construction at the site in Gruenheide in 2019 after receiving preliminary approval under a special procedure. 

But local authorities are still in the process of evaluating the environmental impact of the factory, despite the construction being all but finished.

The special treatment afforded to the company has angered some residents, who are concerned about the impact the plant could have on the water supply and biodiversity.

Supported by NGOs, opponents have sent letters, held protests and gone to court to try and stop the project.

Last year, work at the Tesla site was temporarily stopped after NGOs requested an injunction to protect the nearby natural habitat of endangered species of lizards and snakes while they were in their winter slumber.

A residents' consultation, part of the approval process, is due to close on October 14.

Until the survey is completed, final approval cannot be given and production at the factory will not be allowed to begin.

Even then, the state environment ministry in Brandenburg, where the plant is located, told AFP "no date has been fixed" for this authorisation. 

Economies of scale 

About 500,000 cars a year should roll off the line at the factory just outside Berlin, Tesla's first production location in Europe.

Not all the attendees at Saturday's party were convinced the region can take it.

"I'm sort of critical. There's not enough roads, not enough space for a factory like this here," said 35-year-old Marlen Winkler.

On the same 300 hectare plot, Musk also plans to build "the world's biggest battery factory".

The site will equally boast the "world's largest die-casting machine", said Ferdinand Dudenhoeffer, director of the Centre for Automotive Research in Germany. 

In the event that the factory is not approved, the carmaker will be compelled to dismantle the entire works at its own cost.

Such a turn of events is, however, "unlikely", said Dudenhoeffer, since the project has considerable "political support".

"Every political party is in favour," the car expert explained, while noting that changes to the factory facade could be requested by authorities, delaying the beginning of production further.

First planned for July 2021, the start has already been pushed back to the end of this year as a result of the company's administrative troubles. 

Tesla was "irritated" by these setbacks, as it wrote in an open letter in March, in which the company called for a "reform" of Germany's planning procedures. 

Despite the country's reputation for efficiency, major infrastructure projects are often slowed down by excess bureaucracy.

Berlin's new international airport opened in October 2020, eight years later than first planned, while the construction of a new train station in Stuttgart is not yet finished, having begun in 2010.

SEOUL — South Korean tech giant Samsung Electronics defied the global supply chain challenges to forecast a near-30 per cent jump in third-quarter operating profits on Friday.

The smartphone maker said it expected its operating profits to reach around 15.8 trillion won ($13.3 billion) in a regulatory filing, up 27.9 per cent year-on-year.

The company is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th largest economy.

The conglomerate's overall turnover is equivalent to a fifth of the country's gross domestic product.

Samsung Electronics estimated sales for the July-September period at 73 trillion won, up 9 per cent year-on-year — a record for any quarter, a spokeswoman said.

The coronavirus has wreaked havoc on the world economy, with lockdowns and travel bans imposed around the globe for many months.

But the pandemic — which has killed around 4.8 million people worldwide — has also seen several tech companies boom.

Coronavirus-driven working from home has boosted demand for devices powered by Samsung's chips, as well as home appliances such as televisions and washing machines.

Now supply chain problems are hitting economic activity around the world, with companies facing shortages of key commodities, components and shipping capacity.

But weakness in the South Korean won against the US dollar has boosted the chip maker's profit margins, particularly in its smartphone business, according to analysts.

The currency effect has offset troubles caused by "disruptions in smartphone shipments", which were triggered by parts shortages and coronavirus lockdowns in Vietnam and India, where Samsung has production lines, Hana Financial Group said in a report.

But forward prospects are looking less rosy, analysts say, with demand for DRAM memory chips — a key Samsung product — expected to fall in the fourth quarter as manufacturers struggle with supplies, pushing down prices.

"With the coronavirus spreading again in South East Asia and an ongoing electricity shortage issue in China, a disruption in any of the production lines can disrupt the whole production process," said Park Sung-soon, an analyst at Cape Investment & Securities. 

"With parts running short, demands for memory chips will decrease as well because companies can't produce set products," he said.

The operating profits estimate was in line with analyst forecasts according to Bloomberg News.

Samsung Electronics shares closed down 0.1 per cent.

Samsung's latest earnings estimate came after Lee Jae-yong, its vice-chairman and the de-facto leader of the wider Samsung group, walked out of prison in August. 

Lee was released on parole after completing just over half of his two and a half year sentence in the latest example of South Korea using economic grounds to free business leaders imprisoned for corruption or tax evasion.

He was jailed for bribery, embezzlement and other offences in connection with the corruption scandal that brought down ex-South Korean president Park Geun-hye.

His return to management has eased concerns over decision-making at Samsung.

But his August release is not the end of his legal travails: he remains on trial on separate accusations of manipulating a takeover to smooth his succession at the top of the Samsung group — the same controversy over which he was said to have sought help from Park.

NEW YORK — Global stock markets mostly fell on Friday following weaker-than-expected US jobs data as oil prices continued to rise, adding to inflation worries.

The much-anticipated Labour Department report showed the United States added only 194,000 jobs last month, less than half the number expected by analysts due to declining public sector staffing and lackluster hiring in bars and restaurants.

On the positive side, the unemployment rate ticked down more than expected to 4.8 per cent, and the last two months' jobs gains were revised upwards.

"It actually wasn't as bad as it appeared," JJ Kinahan of TD Ameritrade said of the monthly report, adding that the decline in hiring in schools skewed the overall figure.

Wall Street indices ended with modest losses for the day following a choppy session, but with weekly gains.

Analysts broadly expect the Federal Reserve (Fed) to stick with a plan to soon taper stimulus. That sets the stage for more choppiness in the weeks ahead, Kinahan said.

"I think we're going to continue to have more elevated volatility and volatile sessions because you're seeing the market pressures on interest rates in anticipation of the Fed at some point talking about when they are going to exactly start tapering," he said.

Next week sees the unofficial kick-off of third-quarter earnings season, with reports from JPMorgan Chase, Goldman Sachs and other banks. Analysts worry that higher costs due to supply chain snarls and shortages of key raw materials will cut into corporate profits.

In Europe, stock prices in Frankfurt and Paris ended the day in negative territory. Only the FTSE in London closed the week on a stronger footing. 

"A bit of a flat end to an otherwise eventful week that has seen investors whipsaw between panic and optimism," said OANDA analyst Craig Erlam, adding that investors are "blissfully ignoring" risks such as higher energy prices "heading into crisis season". 

Oil prices resumed their upward trajectory on rising demand expectations and concerns over tight supplies.

Asian stock markets earlier closed their week out higher after a global rally Thursday as US lawmakers voted to avert a catastrophic debt default.

HONG KONG — Asian markets rallied on Thursday as investors breathed a sigh of relief that the United States looked set to avert a catastrophic debt default after Republicans offered a deal to raise the country's borrowing limit.

Joe Biden and Xi Jinping's decision to hold a virtual meeting also provided a much-needed boost to trading floors that have been starved of good news in recent weeks as they battle a string of problems including surging inflation, an expected taper of monetary policy and a growing energy crisis.

With just days to go before the United States runs out of cash, top Senate Republican Mitch McConnell proposed a truce, meaning Democrats can vote to hike the debt ceiling and allowing the government to pay its bills until December.

Democrats indicated their support for the move, which would mean avoiding missing US repayment obligations, which many experts and top officials including Biden and Treasury Secretary Janet Yellen had warned would tip the economy into recession and cause another financial crisis.

"We're going to pay our debts, we have two months to figure out where we go from here," Democratic Senate budget chairman Bernie Sanders said.

The offer removed an increasingly dark cloud from over markets and sent Wall Street's three main indexes jumping out of a slumber to close Wednesday in positive territory.

Asia picked up the baton on Thursday, with Hong Kong up more than two percent, while Tokyo, Singapore, Seoul and Taipei all put on more than one percent. Sydney and Manila were also in the green.

However, observers pointed out that the deal is only a reprieve and lines up a similar standoff in two months.

White House spokeswoman Jen Psaki urged Republicans not to "kick the can down the road".

News that Biden and Xi would hold direct talks by the year's end -- albeit online -- added some optimism, raising hopes for a thawing of an increasingly frosty relationship between the superpowers. 

Caution remains  

That followed a six-hour meeting between US National Security Adviser Jake Sullivan and China's top diplomat, Yang Jiechi, in Zurich.

Concerns about an energy crunch were also eased very slightly Wednesday after the US Energy Secretary Jennifer Granholm suggested unlocking some of the country's vast crude reserves to keep a lid on prices, which this week hit seven high highs.

The cost of a barrel of oil has roared higher as the global economy reopens from Covid-19 lockdowns, while the approaching northern hemisphere winter has led to the price of natural gas to double from last month, forcing suppliers to seek out crude as a cheaper alternative.

OPEC's decision not to open the taps further has added to the problems.

The run-up in the energy market has ramped up fears that inflation -- already surging owing to the global recovery and supply bottlenecks - will continue to spike higher, forcing central banks to wind in their ultra-loose monetary policies earlier than envisaged to prevent prices running out of control.

All eyes are on the Federal Reserve, which has signalled it will begin tapering its bond-buying programme before the end of the year, bringing an end to the easy money that has helped drive the global equity and economic rebound.

A forecast-beating private jobs report Wednesday lifted expectations for a key government report at the end of the week. A strong reading on Friday will all but guarantee the tightening cycle will begin next month, analysts said.

Still, analysts remained cautious in light of recent hefty losses across world markets in recent weeks.

"We have several things that we are watching right now -- certainly the debt ceiling is one of them and that's been contributing to the recent volatility," Tracie McMillion, at Wells Fargo Investment Institute, told Bloomberg Television.

"But we look for these five per cent corrections to add money to the equity markets.

BRUSSELS - European commissioner Thierry Breton said on Wednesday that revelations by Facebook whistleblower Frances Haugen reinforced the EU's plan to regulate digital platforms.

After speaking to the US data scientist, who testified to US lawmakers on Tuesday, EU internal market boss Breton told reporters that it was "really urgent to legislate and not to weaken" Brussels' plans.

Last December, Breton proposed two draft laws known as DSA and DMA, which aim at stopping abuses by digital giants.

The bills are under discussion between the European Parliament and the Council of the bloc's 27 member states.

His conversation with Haugen had pushed him "not to weaken the proposals, despite lobbying to reduce obligations" imposed on platforms, Breton said.

He said he heard out her allegations against Facebook before going over the plans for European regulation with her.

"I got her perspective, especially on questions of transparency, data and algorithms," he said.

Haugen told Congress on Tuesday that it should strengthen regulation of Facebook, which she accuses of aiming to constantly ramp up teens' use of its services, which also include WhatsApp and Instagram.

She also said that Facebook removed filters set up to sift out disinformation after the US election campaign, aiming to boost visits to its platforms.

Some users went on to plan the demonstration preceding the January 6 invasion of Washington's Capitol building via Facebook properties.

If her claims prove true, such things "cannot be allowed to happen in Europe," Breton said, insisting that the Commission's plans would do the trick.

He added that Brussels was also weighing regulations on targeted advertising in response to calls from lawmakers.

While outside the remit of DSA and DMA, "it's a topic we're thinking about" for an upcoming bill, Breton said.

Haugen plans to travel to Brussels in early November where she could be heard by the European Parliament, he added.