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BRUSSELS — Chinese Premier Li Keqiang and European Union institution leaders met in Brussels on Tuesday for an annual EU-China summit that the EU has seized on to pressure Beijing over trade and investment.

After years of offering free access to its markets, the EU is losing patience with the slow pace of Beijing's own market liberalisation. It is also growing concerned over state-led Chinese companies' dominance of some EU markets and acquisitions of strategic industries.

European Commission President Jean-Claude Juncker said the summit "would not be simple". 

"We will explain that in Europe we are insisting that European firms in China should enjoy the same rights as Chinese firms in Europe," he said in a speech before the meeting.

Li arrived in a black Mercedes bearing two Chinese flags before going into the European Council building with Juncker and Council chief Donald Tusk.

The EU's newly assertive stance has made it difficult to agree a final summit declaration, a staple of such high-level gatherings, which this year the EU sees as way of setting down in writing Chinese promises to open up to European investors.

EU and Chinese negotiators agreed a tentative draft statement on Tuesday morning, four EU diplomats said. But any final communique needs to be signed off by Li, Juncker and Tusk.

Diplomats said a new draft included fresh commitments by Beijing to speed up talks on a decade-long effort to reach an investment pact, as well as text on industrial subsidies and opening China's market more broadly to European companies.

Like the United States, many EU countries want to crack down on industrial subsidies and forced technology transfers, although they prefer dialogue to the trade war Washington has triggered. A new Commission plan described China as a "systemic rival" for the first time last month.

"The old narrative is absolutely obsolete," Commission Vice President Jyrki Katainen told Reuters.

Top trading partners 

One diplomat said an EU leaders' summit in March had helped to forge a more unified European position that was paying off: there was a greater awareness of China's policy of pushing free trade only when it suited its interests.

The EU is China's top trading partner and China is the second-biggest market for EU exports after the United States. The Chinese deny trying to dominate strategic European industries and has repeatedly said it wants a "win-win" relationship of mutual benefit. 

But Beijing is struggling to ease worries about President Xi Jinping's signature Belt and Road Initiative as it readies for a major summit later this month.

Tusk and Juncker are expected to raise concerns about Xi's initiative, namely that the vast infrastructure plan is unsustainable, damaging to the environment, creates financial dependency and is mainly about projecting Chinese power abroad. 

"China aims to have a feel-good summit, whereas we aim to have a meaningful summit, with a meaningful outcome," Peter Berz, acting Asia director at the Commission's trade section, told the European Parliament last week.

China points to a new foreign investment law due to take effect at the start of 2020. It includes provisions to ban forced technology transfers and ensure foreign companies have access to public tenders.

EU officials say the law lacks detail, and question how effective it will really be in protecting foreign firms.

Li wrote in a German newspaper on Monday that China wanted to work with the EU on issues including trade, and denied Beijing was trying to split the bloc by investing in eastern European states.

RIYADH — Saudi Arabia’s energy minister said on Monday it was premature to say whether a consensus existed among members of the Organisation of the Petroleum exporting Countries (OPEC) and its allies to extend oil supply cuts, but a meeting next month would be key.

A joint OPEC and non-OPEC ministerial committee known as the JMMC is due to convene in May. Saudi Arabia and Russia are members of the panel, which includes other major oil producers that took part in a global supply-cutting agreement last year, such as Iraq, the United Arab Emirates, Kuwait, Nigeria and Kazakhstan.

"JMMC will be a key decision point because we will certainly by then know where the consensus view is and, more importantly, before we ask for consensus, we will know where the fundamentals are pointing," the Saudi minister, Khalid Al-Falih, said.

"I think May is going to be key," he added.

Oil inventories remain higher than average but the market is on its way towards rebalancing, Falih added. 

"I don't think we will need [to do more] ... the market is on its way towards balance. We have done a lot more than others," he said, referring to the possibility of Saudi Arabia cutting output further below its target under the global deal. 

"We are getting to a stage where inventories are starting to stabilise and come down but still significantly above what I would consider a normal level."

Russia, which is cutting oil output in tandem with OPEC, also said production cuts would stay in place at least until June, when Washington's next steps on reducing Iranian and Venezuelan oil exports become clearer.

The United States has been increasing its own oil exports steeply, while US President Donald Trump has been pressing the OPEC cartel to lower the price of the commodity by boosting production.

US policies targeting Iran and Venezuela have introduced a new level of uncertainty for OPEC as the producer group struggles to predict global supply and demand. Washington is also advancing a bill, known as NOPEC, that could expose OPEC members to US antitrust lawsuits.

The NOPEC move prompted Saudi Arabia to threaten to sell its oil in currencies other than the dollar if Washington passes the bill, three sources familiar with Saudi energy policy told Reuters last week. 

However, Falih told reporters at an oil event in Riyadh that there was no change to the kingdom's long-standing policy of trading oil in US dollars.

"Absolutely not. There is no change whatsoever to our long-standing policy," Falih said when asked to comment on the possibility that Saudi Arabia could ditch the dollar.

The United Arab Emirates' energy minister, Suhail bin Mohammed Al-Mazroui, also said on Monday that the use of the dollar as the main oil-trading currency could not be changed overnight.

CAIRO — Egypt is on track to end subsidies on most fuels by June 15 as part of a reform programme led by the International Monetary Fund (IMF), the Washington-based body said on Saturday.

The economy of the Arab world’s most populous country has suffered from political instability and security threats since the 2011 uprising.

Cairo secured a $12 billion, three-year loan package from the IMF in 2016.

Egyptian authorities “remain committed” to ending subsidies granted to limit prices at the pump, the IMF said in a new report.

The prices of liquefied petroleum gas (LPG) and fuels used in bakeries and for electricity generation would not be affected, it added.

Bread is a staple in Egypt and a price hike could spark further discontent in the face of continued economic woes.

The IMF said cutting the subsidies is “critical to encourage more efficient energy use” and to “create fiscal space for high-priority spending on health and education”.

In February, the IMF approved the next $2 billion loan payment to Cairo, citing “substantial progress” made by Egyptian authorities on reforms, which have boosted growth and cut unemployment.

But IMF chief Christine Lagarde at the time also urged Egypt “to press ahead with structural reforms that facilitate private sector-led growth and job creation”.

The latest installment brought the total paid to Egypt to about $10 billion since the loan deal was signed in November 2016.

AMMAN — For the 10th time since the World Economic Forum (WEF) has been held at the Dead Sea, Royal Jordanian(RJ) is named the official carrier for participants in WEF on the Middle East and North Africa, which commenced its activities on Saturday, according to an RJ statement. 

More than 1,000 leaders from government, business and civil society come together at the forum to address challenges facing the region.

The selection, once again, of RJ as an official carrier is further testament to the national carrier’s reputation as a quality-service airline that offers a wide route of network and extends facilities to a large number of participants, and an added seal of approval from the forum organizers, the statement said.

The partnership between the WEF and RJ enables participants to enjoy several benefits and services, in addition to the facilities extended at Queen Alia International Airport. 

Part of the services involves assistance from trained RJ staff members during the days of the meeting, manning sales and reservation offices at the forum, in addition to a check-in counter that is available for the participants.

President/CEO Stefan Pichler, who attended the forum, said: “RJ is pleased to maintain its partnership with the WEF organisers and to make participating delegates' travel to Jordan on board RJ’s aircraft a seamless experience. The national carrier of Jordan endeavors to build bridges of cooperation and trust with different sectors in the country, and to sponsor important events, particularly those that encourage tourism”.

NEW YORK — Curbing corruption could generate about $1 trillion in tax revenues annually across the world, according to research from the International Monetary Fund (IMF).

In addition to increasing government revenue, fighting corruption can also reduce waste and even help to lift test scores among public school students, the IMF said. It also improves overall public trust in the government.

"Less corruption means lower revenue leakage and less waste in expenditures, and higher quality of public education and infrastructure," said the report.

The pattern of lower corruption perception and higher revenues is maintained across developed, emerging and low-income countries, the data showed.

"Among advanced economies, a country in the top 25 per cent in terms of control of corruption collects 4.5 per cent of GDP more in revenues, on average, than a country in the lowest 25 per cent. The gap in revenue collection is 2.75 per cent of GDP among emerging market economies and 4 per cent of GDP among low-income countries," said the report.

Transparency, strong press are key 

Previous studies showed that extractive industries like mining and oil drilling are hotbeds for corruption, as are procurement and the administration of state-owned enterprises. The fund focuses on transparency and oversight as key elements in curbing corruption in these areas, with a strong, free press as catalyst.

"We expected transparency would go together with good fiscal outcomes, but what surprised us is that the effect of transparency is much stronger in countries that have a free press or a [strong] civil society," said Paolo Mauro, deputy director in the IMF's Fiscal Affairs Department.

"And when you have those two together the effect is even stronger."

Mauro and Paulo Medas, a deputy division chief in the same IMF department, co-authored the study, a chapter of the fund's Fiscal Monitor, which is being published in parts this week ahead of the IMF's spring meetings scheduled next week in Washington.

Among other recommendations to curb corruption, the fund calls for the professionalisation of civil service, including merit-based hiring, as well as the need for simple tax rules and business codes to avoid the temptation of bribes to navigate them.

The report recommended technology that can fight corruption. For instance, it said, taking procurement on line is seen as a rapid and inexpensive part of the anti-corruption puzzle.

So-called e-procurement "is a relatively cheap initiative that can open competition, so you can have bidders from any place in the country or the world and it makes it very cheap and transparent for companies to bid," said Medas.

Chile and South Korea are cited as examples in the effectiveness of e-procurement, while Rwanda and Georgia show some of the highest increases in revenue collection relative to GDP. 

Emerging countries' dependence on extraction of raw materials for economic development gives them an added incentive to curb corruption and makes success even more important.

"You want to invest in very good institutions, extremely high levels of transparency and very intrusive external oversight," said Medas.

The trillion in added tax revenues comes on top of a previous study that stated that corruption in the public sector costs between $1.5 trillion and $2 trillion annually in bribes alone.

LONDON — Australia's dollar and the Chinese yuan gained on Wednesday on hopes for an agreement between Beijing and Washington to end their trade conflict.

Reports of progress in trade talks between the United States and China, as well as reassuring factory activity data from both countries, has supported markets in recent days and sent Asian stocks to seven-month highs.

For currency markets, that meant a rebound in the Aussie, long seen as a proxy for China given Australia's export industries, and China's yuan. 

The Aussie rose 0.7 per cent to $0.7119, recovering most of the losses it suffered on Tuesday after a central bank meeting. The New Zealand dollar also firmed.

The yuan rose 0.2 per cent in offshore markets to 6.7115, with analysts citing both improved optimism about momentum in the Chinese economy and the trade negotiations with the United States.

"The conclusion is that the trade talks this week is crucial — either a deal can be done, or the negotiation will be extended again to June at least," Commerzbank analysts said in a note. 

Sterling adding to its overnight gains after Prime Minister Theresa May announced talks with the opposition Labour party in a bid to break the Brexit deadlock that may lead to a softer departure deal with the EU.

The euro rose 0.3 per cent as the dollar pulled back from its recent highs, touching $1.1240 as the European session got underway. The single currency had fallen below $1.12 on Tuesday, nearing a 21-month low, as worries over the relative weakness in the euro zone economy sent investors into dollars.

The greenback dropped against its rivals, with its index down 0.3 per cent to 97.053 after climbing to a 3-1/2-week peak of 95.517 the previous day.

Central banks have turned more dovish this year as they look to avert an economic slowdown, led by the Federal Reserve.

JP Morgan Asset Management's currency chief investment officer Roger Hallam said that if the European Central Bank decided to reduce interest rates further, "such an outcome would likely push EURUSD below $1.10."

Against the yen, however, the dollar rose 0.2 per cent as the rally in risk assets undermined demand for a currency that investors typically buy when they want safety.

The Japanese currency dropped to 111.525 yen per dollar.

With risk appetite recovering, the Swiss franc also fell, putting it at 1.1201 francs per euro. It had strengthened below 1.12 earlier in the week.

CAIRO/DUBAI — With steaming plates of rice and freshly sliced apples on the side, a group of Cairo-based food scientists work in their lab to decide whether the foreign grains will suit Egyptian palates.

The scientists cook and taste samples of rice on offer at state tenders before they are accepted. The process, which began late last year, has so far eliminated Indian origin rice and approved of Chinese and Vietnamese offers.

Egypt has spent $46.8 million on Chinese rice in two tenders since November. A third is ongoing.

Egyptians are major rice consumers and take pride in the quality of their local crop. But after planting less local rice in 2018 to conserve water, Egypt tapped the international market in November, requesting samples for a cooking test. 

Rice is a heavily discounted staple on Egypt's subsidy programme, under which the state purchases foodstuffs that are offered to subsidy card holders, currently around 60 million people. 

The scientists' role is to ensure that the rice bought by the state is suited to familiar cooking methods and tastes. 

"Here, as a unit, we are all [academic] doctors as well as mothers in our homes," said Nahed Lotfy, director of the test kitchen. "We are all trained judges who have completed training courses."

Samples are anonymised, said Nasra Ahmed, one of the taste testers. "We get a sample on which we have almost no information at all," she said. "Everything arrives with a code." 

Researchers inspect grains for water absorption, colour and smell. After cooking, the rice is presented to the tasters.

"We evaluate the product based on colour, taste, aroma, flavour, as well as general response," Lotfy said.

Researchers cannot wear perfume or smoke cigarettes. Sliced apples and water act as palate cleansers.

Pushing up costs 

Traders say the taste test drives up costs by forcing them to keep their offers open indefinitely while it takes place. They say the testing process is unique to Egypt.

"It is something that doesn't happen globally," Mostafa Al Naggari, a major Egyptian rice exporter and importer, told Reuters. "In other countries, the cooking instructions are simply written on the packet." 

On the private market, importers have contracted to bring in 150,000 tonnes of Indian rice from October until end April, with no complaints from Egyptian consumers.

Naggari, who buys Indian rice to supply Egypt's private market, said he was not clear why Indian samples had failed the test.

"These are the rules of the tender and we will respect it, but I am happy selling rice on the private market." 

But Nomani Nomani, an adviser to the supply minister, said the cooking tests were necessary to avoid the rice piling up in subsidy stores like it did three years ago when Egyptians refused to buy it. 

"Of course, if an Indian rice sample that suits Egyptian taste is presented, we will accept it, but the cooking test is necessary to make sure the rice we are importing suits consumers," he told Reuters.

NEW YORK — Oil climbed more than 1 per cent with US crude futures hitting a 2019 high on Monday after tight supply and positive signs for the global economy drove both benchmarks' largest first-quarter gains in nearly a decade. 

US West Texas Intermediate (WTI) futures were up 85 cents, or 1.4 per cent, at $60.99 by 10:30 am ET (14:30 GMT), after reaching their highest in more than four months at $61.15. WTI gained 32 per cent in the first quarter.

Brent crude for June delivery was up 93 cents, or 1.4 per cent, at $68.51 after rising by more than a dollar in earlier trading and gained 27 per cent in the January-March period.

Production cuts from the Organisation of the Petroleum Exporting Countries (OPEC) helped push supply to a four-year low in March, a Reuters survey found, as top exporter Saudi Arabia over-delivered on the group's supply-cutting pact while Venezuelan output fell further due to US sanctions and power outages.

The energy complex is off to a strong start with help from favourable Chinese data and associated weakening in the US dollar, Jim Ritterbusch, president of Ritterbusch and Associates, said.

"This bull market in energy that has entered its fourth month in duration appears capable of continuing," he said.

US construction spending increased for a third straight month in February, offering some good news on the economy following a string of weak reports.

The US data followed positive Chinese factory gauges and signs of progress in Sino-US trade talks have boosted sentiment, helping to buoy regional stock markets.

The United States and China said they made progress in trade talks that concluded on Friday in Beijing, with Washington saying the negotiations were "candid and constructive" as the world's two largest economies try to resolve their trade war. 

China's State Council said on Sunday that the country would continue to suspend additional tariffs on US vehicles and auto parts after April 1, in a goodwill gesture following a US decision to delay tariff hikes on Chinese imports.

Analysts have turned cautiously optimistic on the oil market, a monthly Reuters poll showed on Friday, lifting their forecast for the average Brent price in 2019 for the first time in five months to $67.12.

Hedge funds and money managers raised bullish wagers on US crude to the highest in more than five months, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Brent crude speculators also raised net long positions by 13,429 contracts to 322,035 in the week to March 26, data from the Intercontinental Exchange showed. That was the highest level since late October.

On the supply front, booming American production has steadied, with the US government reporting on Friday that domestic output in the world's top crude producer edged lower in January to 11.9 million barrels per day. 

US energy companies last week reduced the number of oil rigs operating to the lowest level in nearly a year, cutting the most rigs during one quarter in three years, energy services firm Baker Hughes said. 

Meanwhile, oil prices are being propped up by US sanctions on Iran and Venezuela along with voluntary supply cuts by the OPEC and other major producers.

Output from OPEC countries fell by 280,000 barrels per day (bpd) from February to 30.4 million bpd, according to a Reuters survey, its lowest monthly rate since 2015.

Washington has instructed oil trading houses and refiners to further cut dealings with Venezuela or face sanctions themselves, sources told Reuters, and has urged Malaysia and Singapore to be vigilant for illicit Iranian crude in its waterways. 

BEIJING — China's State Council said on Sunday that the country would continue to suspend additional tariffs on US vehicles and auto parts after April 1, in a goodwill gesture following a US decision to delay tariff hikes on Chinese imports. 

In December, China said it would suspend additional 25 per cent tariffs on US-made vehicles and auto parts for three months, following a truce in a trade war between the world's two largest economies.

The State Council, or Cabinet, said Sunday's move was aimed at "continuing to create a good atmosphere for the ongoing trade negotiations between both sides". 

"It is a positive reaction to the US decision to delay tariff hikes and a concrete action adopted [by the Chinese side] to promote bilateral trade negotiations," the State Council said.

"We hope the US can work together with China, accelerate negotiations and make concrete efforts towards the goal of terminating trade tensions."

The government also said it would announce separately when the suspension would end.

US President Donald Trump said on Friday that trade talks with China were going very well, but cautioned that he would not accept anything less than a "great deal" after top US and Chinese trade officials wrapped up two days of negotiations in Beijing.

US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer were in the Chinese capital for the first face-to-face meetings between the two sides since Trump delayed a scheduled March 2 increase in tariffs on $200 billion worth of Chinese goods.

The talks are set to resume next week in Washington with a Chinese delegation led by Vice Premier Liu He.

LOS ANGELES/NEW YORK — Lyft Inc’s. shares rose as much as 23 per cent in their market debut on Friday, amid strong investor demand for the ride-hailing service that bodes well for larger rival Uber Technologies Inc.

Lyft’s IPO, which is the year’s biggest thus far, sets the stage for other Silicon Valley unicorns seeking to debut in the stock market this year, including Pinterest Inc., Postmates Inc. and Slack Technologies Inc.

The success of the IPO came despite Lyft’s steep losses, criticism of its dual-class share structure, and some concerns over its strategy for autonomous driving and new laws aimed at increasing driver pay.

Public market investors, keen on Lyft’s revenue growth and after enduring a long stretch with few IPOs from highly valued tech companies, piled into the offering.

“There’s money that wants to be invested into tech. This is a new area and people are definitely interested in exploring it,” said Catherine McCarthy, an Allianz research analyst. 

On Thursday, Lyft priced 32.5 million shares, slightly more than it was offering originally, at $72, the top of its already elevated $70-$72 per share target range, raising $2.34 billion in its initial public offering.

The stock opened at $87.24 but later pared gains to close up 8.7 per cent at $78.29, giving Lyft a market capitalisation of around $22.2 billion.

Lyft’s offering ended up 20 times oversubscribed, similar to other high-profile IPOs, with more than 500 orders from institutional investors such as mutual funds, according to people familiar with the matter.

Despite the optimism, there are also mounting concerns that these tech IPOs may be coming at the peak of the market, when the benchmark S&P 500 Index has risen more than 200 per cent since 2008.

Loss-making unicorns 

Lyft’s 2018 loss widened to $911 million from $688 million in 2017, despite revenue doubling in 2018 to $2.16 billion. The company has not laid out a timeline for when it will turn a profit. 

As a result, the IPOs of Lyft and other loss-making unicorns present a predicament for investors sitting on the fence — they do not want to miss out on popular companies with fast growth, but must weigh the risks of businesses with unproven economics.

“Every portfolio manager is going to have to make a decision in the next 12 to 18 months about these new IPOs. It’s a growing part of the market,” said JMP Securities President Mark Lehmann.

Uber, which is also loss-making, would be valued at about $128 billion at its IPO if awarded the same multiple as Lyft. Uber is planning to launch its IPO in April, sources have said.

Some of the companies’ losses come from subsidising rides, a tactic to attract riders with discounts. 

“With Uber and Lyft becoming public companies, shareholders will expect them to rationalise prices on rides towards sustainable levels,” said Paul Hudson, founding partner at Glade Brook Capital Partners.

Lyft, as of December, had 39 per cent market share in the United States, up from 35 per cent early last year. 

Its success in battling better-funded Uber for market share surprised even its own investors. 

“Nobody knew they [Lyft] would catch up to this level,” said Navin Chaddha, a venture capitalist with Silicon Valley firm Mayfield, which invested in Lyft in 2011.

From its earliest days, Uber aggressively outraised Lyft by billions of dollars, employing tactics such as prohibiting prospective investors who reviewed Uber’s financial data from investing in the smaller competitor. 

Just five years ago, some investors were convinced that Lyft would fail, and board members discussed finding a replacement for CEO Logan Green.

Lyft Chairman Sean Aggarwal said on Friday the company will continue to prioritise North American growth over international expansion after completing its IPO. Uber is in more than 70 countries, although it has consolidated certain overseas markets, while Lyft has stuck to the United States and Canada.

“Sticking with that playbook of owning this market [North America] and expanding in this market is how we get to deliver to our public shareholders and the long-term expectations that we set,” Aggarwal said on the sidelines of Lyft’s IPO celebration on Friday.

Lyft has explored expanding its service to Australia and Mexico, sources previously told Reuters.

Aggarwal also said the company’s co-founders, CEO Green and President John Zimmer, worked in recent weeks to make investors comfortable with Lyft’s dual-class share structure, which has faced criticism from some investors and corporate governance advocates.

Although it is common among highly valued tech companies, public market investors still balk at this structure, which gives founders more votes per share and outsized control of the company, long after it is startup-sized. Lyft’s structure will give the founders and certain other shareholders 20 votes per share.

Celebration at an auto dealership 

Instead of celebrating the first day of trading at the Nasdaq in New York, Lyft opted to mark the occasion at a defunct auto dealership in downtown Los Angeles.

Lyft’s staff, with family and friends, and Los Angeles Mayor Eric Garcetti gathered before dawn for the kick-off. The building, unmarked on the outside, gave away nothing about the celebration tucked away in the bowels of the old facility, which had been outfitted with pink confetti and Lyft-branded scooters.

Lyft recently bought the facility to turn it into a driver services center, the first of several it plans to open across the United States in the coming months, where drivers can obtain services like help with taxes or charging electric vehicles.

Garcetti said in his remarks that the old warehouse symbolises “a transformation of our economy”.

He pointed out that CEO Green is a native of Los Angeles, adding that “some good did come out of Los Angeles traffic”.