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BRUSSELS — An EU-wide COVID certificate for easier travel came into force on Thursday, just in time for Europe's busy summer vacation period — but the highly infectious Delta variant is already threatening to curtail its use.

The EU document — essentially a QR code available on smartphones or on paper — shows whether the bearer is vaccinated with one of the European Union's approved jabs (from BioNTech/Pfizer, AstraZeneca, Moderna or Johnson & Johnson), or whether they have recovered from an infection or recently tested negative.

Under EU law, the certificate is meant to do away with the need for quarantines or further testing when travelling between the EU's 27 countries or four associated European nations (Iceland, Norway, Switzerland and Liechtenstein).

All EU member states were connected to the digital certificate system on Thursday except Ireland, which was hit by a cyberattack targeting its health service in May and plans to have it operational on July 19.

But a surge in the Delta variant, first detected in India and now quickly gaining ground elsewhere, could trigger an "emergency brake" provision suspending the certificate's acceptance.

Germany already has a ban on incoming travellers from Portugal, where the Delta variant has become dominant. Only its own citizens or residents are allowed in from Portugal, and they must quarantine for two weeks upon arrival. 

Berlin's decision has raised Brussels' ire, with EU Justice Commissioner Didier Reynders saying on Wednesday that "we should avoid travel bans" within the EU and stressing that Germany should have consulted with its partners first.

Germany's health minister, Jens Spahn, said on Thursday that the measure against Portugal could be lifted as the Delta variant becomes dominant in Germany — something he said would happen this month.

Britain's Delta problem 

The startling rise in Delta cases in former EU member Britain, with a rolling two-week infection rate more than seven times that of the bloc's, is generating deep concern on the continent.

This week, Portugal, Spain and Malta all abruptly increased restrictions for travellers from the UK, although the three said they would accept fully vaccinated Britons.

The World Health Organisation added to the unease by warning on Thursday that COVID case numbers in the European region — counting 53 countries including non-EU nations such as Britain and Russia — were up 10 per cent, ending two months of decline, because of a loosening of social restrictions and increased travel.

The darkening context could limit the effects of the EU certificate.

"There is no doubt that the tourist industry could do with a boost in time for the summer season," economic research consultancy Capital Economics said in a note.

But it forecast the EU certificate "will have very little impact on European tourism this year", observing that "most adults are not fully vaccinated and the Delta variant is making people and governments more cautious".

Airlines worry 

Airlines grouped together in an umbrella lobby group, A4E, have expressed worries that an "inconsistent approach" among EU countries in vetting the EU COVID certificate could create lengthy lines in airports with the potential to "create new health hazards".

They called for the certificates to be checked online before travellers even arrive at the airport.

There were scenes of problems at Brussels' airport early on Thursday as the first day of the school summer vacation in Belgium collided with the COVID checks.

"Everything is blocked," one employee said at a Brussels Airlines check-in desk, as a massive line of passengers was directed towards a waiting tent where social distancing was not observed.

"We will miss our flight," one couple with two children complained.

An employee responded: "That is COVID, that is the procedure. If you miss your flight, we get you another one."

Overall, EU governments are weighing the public desire for a much-needed summer break against a race between vaccination and the Delta variant.

AFP statistics collating official health data from across the EU show that 50.4 per cent of the bloc's population has now received at least one vaccine dose, compared with 66 per cent in Britain. 

So far, one person in three in the EU is considered completely vaccinated.

WASHINGTON — The International Monetary Fund (IMF) is bullish on the US economic recovery, predicting growth will hit 7 per cent this year — much stronger than previously forecast and "the fastest pace in a generation," the fund said in a report on Thursday.

The cheery analysis is a boon to President Joe Biden's administration and comes amid data showing an improving job market and on the eve of the all-important official employment report.

The International Monetary Fund's annual review of the US economy put growth at its fastest rate since 1984, and also boosted the 2022 gross domestic product (GDP) forecast to 4.9 per cent, 1.4 percentage points higher than the April estimate.

But while the IMF mostly cheered Biden's policies to support the economy, the report flagged "significant concern" over the fact he has not pulled back on tariffs on goods like steel and aluminum imposed by his predecessor.

The United States has seen a "remarkable recovery", the IMF said, helped by "unprecedented" support from government spending and the Federal Reserve's "highly effective" stimulus measures.

The report notes the potential for growth to be even higher than forecast, but the outlook assumes $4.3 trillion in spending over the next decade from Biden's proposed American Jobs Plan and American Families Plan.

Together those programmes would fuel a more than 5 per cent GDP increase for 2022-2024, the IMF estimated.

"Rather than just offering a short-term boost to demand that then fades away, the Jobs and Families Plans are expected to produce a lasting improvement in income and living standards for many years to come," IMF Managing Director Kristalina Georgieva told reporters.

However, if Congress fails to approve the legislation or sharply curtails the size, that would reduce the growth boost.

Asked about that, Georgieva noted the bipartisan agreement on the physical infrastructure parts of the proposal.

"Size is not everything. What matters more than sizes, what is the composition of the packages," she said.

The IMF report said there is "solid empirical evidence... of the societal payoffs" of programmes like those Biden has proposed, which include access to childcare to allow women to enter and remain in the workforce, and access to higher education and training to ensure younger workers have necessary skills for the jobs available.

A "permanent increase in taxes on corporate profits and on high income households is warranted" to pay for the proposals.

Significant concern

The Washington-based crisis lender reserved its harshest comments for Biden's trade policies, and said removing trade barriers would help support his worker-centric agenda.

"It is of significant concern ... that many of the trade distortions introduced over the past four years remain in place," the report said.

Biden has continued tariffs imposed by former president Donald Trump on imported steel and aluminum, washing machines, solar panels, "as well as a range of goods imported from China". 

The IMF also questioned the tougher requirements set by the Trump administration for US products in government procurement which remain in place.

"These policies should be reconsidered. Trade restrictions and tariff increases should be rolled back and 'Buy American' provisions should be tightly circumscribed," the report said.

Improving jobs market 

The IMF forecast, which downplayed inflation risks, was in line with the Congressional Budget Office and Federal Reserve officials, which see strong government spending and a surge of consumer demand supporting the recovery and hiring as businesses work to return to normal.

New applications for US unemployment benefits fell last week to the lowest since the pandemic lockdowns began, dropping to 364,000, the Labour Department reported Thursday.

After two months of tepid gains that fell short of expectations, the employment report for June due out Friday is expected to show a solid hiring to regain some of the 7.6 million jobs lost during the pandemic.

The consensus forecast is for an increase of 680,000 with the unemployment rate ticking down to 5.7 per cent, however, Oxford Economics sees a much higher increase while Ian Shepherdson of Pantheon Macroeconomics is expecting more than a million hires, which would be the most since August.

Biden is expected to comment on the report Friday, likely to focus on the recovery since he took office in January.

"The President's economic plan is working: Unemployment and COVID-19 are down; and jobs, economic growth, and consumer confidence are up," White House Press Secretary Jen Psaki said on Twitter.

SUNDERLAND, United Kingdom — Japanese auto giant Nissan on Thursday announced plans to build the UK's first car-battery "gigafactory", where it will build a new electric vehicle.

Prime Minister Boris Johnson hailed the post-Brexit investment totalling £1.0 billion ($1.4 billion, 1.2 billion euros), which is set to create 6,200 jobs, as "a major vote of confidence in the UK".

Nissan's Chinese battery supplier Envision AESC will invest £450 million to build the battery plant that will be run on renewable energy and power up to 100,000 Nissan electric vehicles per year.

The facility, which will be built next to Nissan's largest European factory in Sunderland, was hailed as key to the UK's transition away from fossil fuel vehicles.

The news comes just days after Nissan's French partner Renault unveiled plans for a Chinese-owned battery factory in France on Monday, as global carmakers race to meet booming demand for greener transport and governments target net zero carbon emissions by 2050.

Nissan is to spend up to £423 million on an all-electric vehicle, while Sunderland City Council will help to bring the total amount of investment up to £1.0 billion.

"This is a landmark day for Nissan, our partners, the UK and the automotive industry as a whole," Nissan's Chief Operating Officer Ashwani Gupta said at the unveiling of the EV36Zero project in Sunderland.

Nissan, which had warned that a no-deal Brexit would threaten its 35-year-old Sunderland factory, said the new investment represents 6,200 jobs at the Japanese group and its UK suppliers.

There will be 900 new Nissan jobs and 750 new Envision AESC jobs. 

 'Huge step' 

"This is a huge step forward in our ambition to put the UK at the front of the global electric vehicle race," said UK Business Secretary Kwasi Kwarteng.

"The cars made in this plant, using batteries made just down the road at the UK's first at scale gigafactory, will have a huge role to play as we transition away from petrol and diesel cars," he added.

Nissan established Britain's first electric vehicle and battery production at Sunderland in 2013 with its Leaf car. 

The company has more recently faced a series of trials, from weak demand during the pandemic to the fallout from the arrest of former boss Carlos Ghosn, now an international fugitive after jumping bail and fleeing Japan.

Nissan has meanwhile delayed the planned summer launch of its flagship new electric Ariya model to this winter over the global chip shortage plaguing automakers.

Announced in July 2020, the new 100-per cent electric model was initially supposed to go on sale in Japan from mid-2021, before arriving in Europe, North America and China by the end of the year.

In the UK, Lei Zhang, founder and chief executive officer of Envision Group, said Thursday that his company was building on its long-term partnership with Nissan "to make high performance, longer range batteries for electric vehicles affordable and accessible for millions more motorists".

He said growth in demand could bring future investment of up to £1.8 billion and 4,500 jobs by 2030.

SAN FRANCISCO — Amazon on Wednesday petitioned a key US regulatory agency to have its leader left out of any antitrust matters involving the company, arguing she is biased against the company.

The tech and e-commerce colossus contended that newly appointed Federal Trade Commission (FTC) chair Lina Khan's history of criticising Amazon's market clout makes it impossible for her to be fair when it comes to investigating the company.

The prominent advocate of breaking up Big Tech firms was sworn in as chair of the FTC agency in June, ramping up the potential for antitrust enforcement.

Khan has built a career on contending Amazon violates antitrust laws, indicating that the company would not get the kind of impartial scrutiny it is legally entitled to in FTC probes led by her, the company argued.

"Amazon should be scrutinised along with all large organisations," read a copy of the petition obtained by AFP.

"However, even large companies have the right to an impartial investigation."

The FTC did not immediately respond to a request for comment.

The petition came as the FTC was reportedly set to review Amazon's deal to buy the storied MGM studios for $8.45 billion, giving the US tech giant a vast content library to further its ambitions in streaming.

The acquisition would bolster Amazon Prime Video, which competes with Netflix and others in the fast-evolving market, with some 4,000 films - including the James Bond franchise -- and 17,000 television shows.

Amazon has experienced surging growth in online retail and cloud computing, while making a push into entertainment as more consumers turn to streaming media.

Khan authored a 2017 law journal article called "Amazon's Antitrust Paradox" which argued that the current framework for antitrust enforcement pegged to "consumer welfare" is ill-equipped to deal with "market power in the modern economy" of giants such as Amazon.

"Chair Khan has made numerous and highly detailed public pronouncements regarding Amazon," the petition argued.

"These statements convey to any reasonable observer the clear impression that she has already made up her mind about many material facts relevant to Amazon's antitrust culpability as well as about the ultimate issue of culpability itself."

The news comes with Big Tech facing an avalanche of litigation and political pressure from those who say the companies have too much power and should be broken up.

BEIJING — Chinese factory activity stabilised in June, data showed on Wednesday, but output was hit by supply shortages of key commodities and microchips as well as the coronavirus-induced closure of a key port that caused huge delivery delays.

The Purchasing Managers' Index (PMI), a key gauge of manufacturing activity in the world's second-largest economy, came in at 50.9 in June from May's 51.0, the National Bureau of Statistics said.

While the reading has been edging down for three straight months, it appears to be levelling out. It was also broadly in line with forecasts and continued to stay above the 50 point mark that separates growth from expansion.

China's economy is well on the recovery track after overcoming the impact of the virus early by imposing strict lockdowns and mass testing.

But production activities have been hit by "a tight supply of chips, coal and power, as well as equipment maintenance", said NBS senior statistician Zhao Qinghe.

"Factors such as chip shortages have adversely affected the development of the [automobile] industry," Zhao added, even as the new order index rose overall.

Iris Pang, ING's chief economist for Greater China, said: "The chip shortage is a longer term issue that will affect overall production activities... anything that uses electricity nowadays has a chip or more inside it."

Separately, Yantian port in the southern trade hub of Shenzhen stopped accepting new export containers for six days in May after a local infection cluster involving port workers — stifling trade at a key point of the stressed global shipping network.

Shipping giant Maersk warned last week that the backlog would take weeks to clear.

Capital Economics analysts said in a recent report that manufacturing PMIs were likely to have nudged down with demand starting to level off and "supply constraints likely worsened in part due to the closure of the Yantian port during the first three weeks of June".

China's non-manufacturing PMI fell as well to 53.5 this month, although it was still well above the mark separating growth from contraction.

Although the service industry maintained a trend of recovery, boosted by a mid-year shopping festival, business activities were hit by local outbreaks, Zhao from the NBS said.

WASHINGTON — The International Monetary Fund (IMF) on Tuesday approved a $2.5 billion loan for Sudan, and with the World Bank sealed a landmark deal that unlocks nearly $50 billion in debt relief for the impoverished African nation.

The announcement came after the IMF finalised an agreement with 101 donor countries allowing Sudan to clear roughly $1.4 billion in arrears to the Washington-based lender — the key hurdle to allow access to fresh aid.

"We congratulate the Sudanese government and people for their commendable hard work and progress toward this remarkable milestone," IMF chief Kristalina Georgieva and World Bank President David Malpass said in a joint statement.

Payment of the arrears is the "decision point" that allows access to debt relief under the Heavily-Indebted Poor Countries (HIPC) initiative which the officials said will cover $50 billion or about 90 per cent of the country's foreign debt.

Sudan will receive $1.4 billion immediately under the 39-month IMF loan programme.

'Historic' agreement 

Washington welcomed the announcement that Sudan is now eligible to receive debt relief from the international lending institutions.

"This is a historic moment for Sudan and its people," US Treasury Secretary Janet Yellen said in a statement. 

"These steps will unlock much-needed financing and will help build the foundation for poverty reduction, inclusive development, and economic growth."

Yellen also praised the efforts of Sudan's civilian government to stabilise the economy.

The new aid comes amid a rapprochement between the United States and Sudan following the ouster of strongman Omar Al Bashir, who was toppled amid street protests in April 2019 after three decades of rule marked by economic hardship, deep internal conflicts, and biting international sanctions that curtailed investment.

In the past two years, Prime Minister Abdalla Hamdok, a seasoned UN economist-turned-premier, has pushed to rebuild the crippled economy and end Sudan's international isolation.

Washington in December removed Sudan from its blacklist of state sponsors of terrorism, removing a major hurdle to foreign investment.

President Joe Biden has continued the thaw in relations since taking office in January, and his administration has taken a leading role in encouraging other governments to join in the effort to provide debt relief.

The US Treasury in March announced $1.15 billion in bridge financing to help clear Sudan's arrears at the World Bank, after Khartoum's civilian-backed government announced a series of reforms.

Treasury said the United States also committed to contribute up to $120 million in grant resources to fund IMF debt relief for Sudan under the first phase of HIPC.

Continued reform

Sudan is the last country to clear arrears with the IMF, which now faces no repayment arrears from its members for the first time since early 1974.

Georgieva praised the government's "strong policy commitment" that has shored up public finances "while channeling assistance to the most vulnerable". 

But she said "continued reform commitment will be critical to achieve the programme's objectives, as well as to reduce poverty and secure higher and more inclusive growth".

The government moved to a market-based exchange rate and removed fuel subsidies in its efforts to secure the deal with the crisis lenders.

In an interview with AFP last month, Hamdok said the widely unpopular moves were needed to secure debt relief and the government was calling on foreign investors to "explore the opportunities for investing in Sudan".

WASHINGTON — A US judge on Monday dismissed the blockbuster antitrust action against Facebook filed last year by federal and state regulators, helping lift the value of the social media giant above $1 trillion for the first time.

Judge James Boasberg of the US District Court of Washington, DC dismissed the cases filed in December by the Federal Trade Commission (FTC) and more than 40 states, which could have rolled back Facebook's acquisition of Instagram and the messaging platform WhatsApp.

The federal lawsuit "failed to plead enough facts to plausibly establish a necessary element... that Facebook has monopoly power in the market for personal social networking services", the judge said in a 53-page opinion, while allowing authorities the opportunity to refile the cash.

In lawsuits filed in December that were consolidated in federal court, US and state officials called for the divestment of Instagram and WhatsApp, arguing that Facebook had acted to "entrench and maintain its monopoly to deny consumers the benefits of competition".

"The judge issued a separate opinion dismissing the case by the states, saying attorneys general had waited too long to bring the case for the acquisition of Instagram in 2012 and WhatsApp in 2014."

The judge said the FTC complaint "says almost nothing concrete on the key question of how much power Facebook actually had... it is almost as if the agency expects the court to simply nod to the conventional wisdom that Facebook is a monopolist".

The federal agency based its case on a "vague" assertion that Facebook controlled more than 60 per cent of the social networking market, but the FTC "does not even allege what it is measuring".

Boasberg wrote that "the market at issue here is unusual in a number of ways, including that the products therein are not sold for a price... the court is thus unable to understand exactly what the agency's '60 per cent-plus' figure is even referring to, let alone able to infer the underlying facts that might substantiate it".

Still he ruled that "this defect could conceivably be overcome by re-pleading", allowing the federal agency the possibility of refiling the action.

Facebook shares surged after the decision, lifting the company's market valuation above $1 trillion for the first time.

'We compete fairly'

In a statement, the company said, "We are pleased that today's decisions recognise the defects in the government complaints filed against Facebook. We compete fairly every day to earn people's time and attention and will continue to deliver great products for the people and businesses that use our services."

The ruling comes a week after a US congressional panel advanced legislation that would lead to a sweeping overhaul of antitrust laws and give more power to regulators to break up large tech firms, specifically aiming at Facebook, Google, Amazon and Apple.

The actions come amid growing concerns on the power of major tech firms, which have increasingly dominated key economic sectors and have seen steady growth during the pandemic.

Critics of Facebook said the rulings highlight the need to revise antitrust laws for the internet age.

"This is a setback — not the end — in the FTC's fight against dominant Big Tech monopolies like Facebook," said Charlotte Slaiman of the consumer group Public Knowledge.

"The FTC should continue this important work, as the judge has indicated the agency can still file a new complaint if it can address these concerns. At the same time, Congress' ongoing work to pass new laws and rules to address the power of Big Tech, as well as broader antitrust reforms, is now especially important and urgent."

LAMBRES-LEZ-DOUAI, France — President Emmanuel Macron visited northern France on Monday to applaud plans for a Chinese-owned battery factory that will supply the automaker Renault as Europe steps up its shift toward electric vehicles.

The 2 billion-euro ($2.4 billion) project by China's Envision is being saluted as an example of Macron's efforts to encourage foreign firms to "Choose France" for investment, in particular in cutting-edge technologies.

"With this project, we're going to invest more than 200 million euros alongside the companies, investors and local governments," Macron told executives and local officials at the site.

"It's this united France, that knows how to work together... that will allow us to advance and win back our industry, win back our strength, and be both productive and fair," he said.

It will be the second so-called battery "gigafactory" in France, after the plant planned by rival automaker Stellantis and energy giant TotalEnergies.

Around 1,000 jobs will be created over the next three years by a project that aims to revive three Renault factories that have struggled for years.

The company hopes to build 500,000 vehicles annually at the sites by 2025.

"We see this as a win-win relationship between Renault, Envision and the French government," Envision's chief Lei Zhang said on Sunday.

"This wouldn't have been possible two years ago. It's the right time now thanks to the French recovery plan," he said.

Europe has been ramping up efforts to build gigafactories, with a report by Transport & Environment, a non-government organisation, showing there are some 40 projects so far.

Later on Monday, Macron, a former investment banker, was due to host his annual gathering of foreign executives at the Palace of Versailles, where 3.5 billion euros ($4.2 billion) of projects would be unveiled.

He will then attend Tuesday the inauguration of the Paris headquarters for the US bank JP Morgan, which will house its European market operations post-Brexit.

"France is organising and hosting the first major international business summit in 18 months," Trade Minister Franck Riester said.

“It's a sign of confidence from the participants in our country's future," he said.