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Apple hit again with US ban in watch patent feud

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

This illustration photo shows an Apple Watch 9 displaying the blood-oxygen level detection settings, in Los Angeles on December 26, 2023 (AFP photo)

WASHINGTON — A federal appeals court on Wednesday ordered Apple to halt US sales of its latest smartwatch models as part of a patent feud with health company Masimo. 

The ban on certain Apple smartwatch models will come into effect Thursday as the iPhone juggernaut is ordered to await the outcome of its appeal. 

Masimo, based in southern California, filed a complaint to the US International Trade Commission (ITC) which decided in October to halt imports of the Apple Watch models over a patented technology for detecting blood-oxygen levels. 

A court temporarily lifted the ban last month. 

Apple manufactures the vast majority of its products overseas, predominantly in China, giving the ITC jurisdiction over the patent feud. 

According to reports, Apple is planning to remove the technology for now from the smartwatches in question — the Series 9 and Ultra 2 — in a solution that Masimo has welcomed. 

Masimo contends it invented the technology and that Apple poached key employees to win access to the know-how. 

But the iPhone maker contends that the ITC finding was in error and should be reversed, and appealed the decision in the federal appeals court. 

The wait for that decision could reportedly last a year or more. 

Masimo Chief Executive Joe Kiani called the decision to allow the ban to be implemented a "victory" for the US patent system that shows even powerful companies such as Apple must respect intellectual property rights. 

Apple did not immediately reply to a query from AFP. 

WTO head 'less optimistic' for world trade due to Red Sea strikes

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

World Trade Organisation (WTO) Director-General Ngozi Okonjo-Iweala attends a session at the World Economic Forum (WEF) meeting in Davos on Wednesday (AFP photo)

DAVOS, Switzerland — The World Trade Organisation's (WTO) chief Ngozi Okonjo-Iweala on Wednesday said she was "less optimistic" about world trade in 2024, pointing to tensions in the Red Sea.

The head of the international trade body said weaker global economic growth, "worsening geopolitical tensions, the new disruptions we see in the Red Sea, on the Suez Canal, the Panama Canal" meant "we are less optimistic".

She was speaking to journalists at the World Economic Forum (WEF) in the Swiss resort of Davos where political and economic elites are meeting to discuss global challenges. 

Before the Hamas sudden  attack on Israel in October and the subsequent outbreak of war in Gaza, the WTO had predicted trade would grow by 0.8 per cent in 2023 and projected growth of 3.3 per cent this year.

But Okonjo-Iweala warned the figure for 2024 would now be lower in future forecasts.

"We think there are a lot of downside risks to the forecasts we had made last year of 3.3 per cent of growth of merchandise volumes this year. So we expect weaker performance," she said.

"We will be revising estimates for this year, but they won't be ready for another month or so," Okonjo-Iweala added.

A spate of attacks by Yemeni rebels on Red Sea shipping has disrupted the vital trade route while the worst drought in decades to hit the Panama Canal has forced authorities to slow transits. 

Yemen's Houthi rebels say their strikes are in solidarity with Palestinians in Gaza. 

The attacks have, however, also caused shipping companies to avoid the Suez Canal. 

UK unemployment steadies, as wage growth drops — data

By - Jan 16,2024 - Last updated at Jan 16,2024

LONDON — UK unemployment steadied and wages growth retreated in the three months to the end of November, according to official data on Tuesday that eased concerns over inflation.

The unemployment rate came in at 4.2 per cent, unchanged from the three months to the end of October, the Office for National Statistics (ONS) said in a statement.

Annual average wages excluding bonuses jumped 6.6 per cent in three months to the end of November but this was down on the 7.3-per cent reading in the three months to the end of October, the ONS added.

"While annual pay growth remains high in cash terms, we continue to see signs that wage pressures might be easing overall," said Liz McKeown, ONS director of economic statistics.

"However, with inflation still falling more quickly, earnings continued to grow in real terms."

All eyes will now be on official UK inflation data due on Wednesday, which is expected to reveal a further easing in the rate of price increases. 

The annual rate currently stands at 3.9 per cent, still far above the Bank of England's 2-per cent target.

"The marked slowdown in pay growth will ease the Bank of England's (BoE) concerns of a potential wage-price spiral, which could lead to faster falls in inflation," noted Yael Selfin, chief economist at KPMG UK.

Markets are waiting to see when major central banks, notably the US Federal Reserve, European Central Bank and BoE, will start to cut interest rates as inflation continues to cool.

McKeown added that while UK job vacancies fell again, mainly owing to cuts in retail positions, "the overall number... remains above its pre-pandemic level".

Job vacancies dropped by 49,000 in the final quarter of last year to 934,000 — the 18th three-month period in a row that openings had fallen and the longest decline on record.

China economy grew around 5.2% in 2023 — Premier

By - Jan 16,2024 - Last updated at Jan 16,2024

A press photographer works next to the logo of the World Economic Forum (WEF) at the opening of their annual meeting in Davos on Monday (AFP photo)

DAVOS — Chinese Premier Li Qiang said on Tuesday the country's economy was expected to have grown by around 5.2 per cent in 2023, as he addressed an annual meeting of global elites in Davos.

The figure would represent an improvement on the 3 per cent recorded in 2022, when tight zero-COVID curbs hammered business activity.

But it would still mean the lowest growth since 1990, excluding the years of the pandemic.

"The Chinese economy generally rebounded and improved last year," Li said in a speech at the World Economic Forum.

"Our GDP growth is expected to be around 5.2 per cent, higher than the target of around 5 per cent that we set at the beginning of last year," Li said.

Despite lifting health restrictions, the world's number two economy is still weighed down by a lack of business confidence and sluggish consumption.

A debt crisis in the crucial property sector and soaring youth unemployment have added to the malaise.

"No matter how the world situation changes, China will adhere to its basic national policy of opening up to the outside world," Li said. 

He added that "the door to opening up will only get wider and wider".

"Choosing the Chinese market is not a risk but an opportunity," he told the audience.

Passenger traffic at Spain's airports hits record high in 2023

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

Tourists arrive at the Palma airport to leave the island of Mallorca, on August 17, 2020 (AFP photo)

MADRID — Passenger traffic at Spain's airports hit a record high in 2023, official figures showed on Monday, the latest sign the key tourism sector has rebounded strongly from the pandemic.

A total of 283.2 million people travelled through the country's airports last year, a 16.2 per cent increase over 2022, state-run airport operator Aena said in a statement.

The figure was 2.9 per cent higher than in 2019 — the last full year before global travel restrictions imposed to tackle the COVID-19 pandemic grounded the tourism sector. 

"These record figures in air transport are fundamental for the economic and social development of Spain. We should all congratulate ourselves for these results," Aena's chief executive officer, Maurici Lucena, said in the statement.

Madrid airport was Spain's busiest with 60 million passengers, followed by Barcelona, Palma de Mallorca in the Balearic Islands and Malaga on the southern coast.

Spain is the world's second-most visited country after France and tourism is crucial for the domestic economy, making up nearly 12 per cent of gross domestic product.

International travel restrictions related to the COVID-19 pandemic brought Spain's vital tourism sector to its knees in 2020.

The industry began a gradual recovery in 2021, pausing briefly when the rapid spread of the new Omicron variant led to a temporary new round of travel restrictions.

While passenger traffic at Spain's airports in 2022 was up from the previous year, it still remained below pre-pandemic levels.

Syrian farmers abandon the land for steadier jobs

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

JAABAR AL-SAGHIR, Syria — After years of war, drought and economic crisis, Omar Abdel-Fattah was forced to rent out his farmland in northeast Syria, preferring a more stable job to provide for his family.

"It breaks my heart to see someone else working my land," said Abdel-Fattah, 50, who grew wheat, cotton and vegetables in Jaabar Al Saghir, in Syria's Raqa province, for three decades.

He said he had to abandon agriculture to make ends meet and provide an education for his eight children because he can "no longer keep up with the costs of farming", including irrigation.

Agriculture was once a pillar of northeast Syria's economy.

The region was the country's breadbasket before 2011, when the government repressed peaceful protests, triggering a conflict that has killed more than 500,000 people and displaced millions.

Now the effects of climate change — particularly rising temperatures and drought — along with spiralling costs are dealing a heavy blow to agricultural production and the families that depend on it to survive.

Abdel-Fattah found a job at a water pumping station run by the area's semi-autonomous Kurdish administration.

It pays around $70 a month, so he also runs a small shop on the side selling hardware and other items to get by.

Some of his relatives have also rented out their land, while others have left Syria because of the dire financial situation there, Abdel-Fattah said.

He urged the Kurdish administration and international agricultural organisations to provide "support and loans" for farmers in the area.

"This is the only solution to save agriculture, help farmers and encourage them to return to their fields again," he said.

 

Farming a 'loss'

 

Across vast swathes of Raqa province, empty farmland sits beside cultivated fields where farmers and workers harvest crops, including potatoes and corn.

Syria has endured more than 12 years of civil war, and Raqqa was the centre of the Daesh group's brutal "caliphate" in Syria until their ouster from the city in 2017.

In the town of Qahtaniyah, Jassem Al Rashed, 55, said agriculture was his only income for 30 years but now it has become a "loss".

His children initially helped him on the land, but now he looks after the crops alone.

"Two of my children work in the livestock trade, and two others left for Europe, while three others joined the traffic police and security forces," he said.

"Farming is no longer right for them, after the recent years of drought," he added.

In November, the World Weather Attribution group said that human-caused climate change had raised temperatures, making drought about 25 times more likely in Syria and neighbouring Iraq.

Suhair Zakkout is the spokesperson in Damascus for the International Committee of the Red Cross.

She has previously told AFP that "Syria's agricultural production has fallen by approximately 50 per cent over the last 10 years" because of war and climate change.

In the far northeastern corner of the country, former farmer Faruk Mohammed, 40, gazed at his uncultivated land at Tal Hamis in Hasakeh province.

Now a teacher employed by the Kurdish administration, he said he had changed job "to earn a living — nothing more, nothing less".

 

'Dangerous factors' 

 

He too expressed the hope that local authorities would help farmers and work to "save what's left of the agricultural land".

"Years of drought have hurt farmers, as well as the rise in fuel prices," he said.

More than a decade of war has shattered Syria's economy, and long daily blackouts mean people have to rely on generators for power amid regular fuel shortages.

Farmers told AFP they struggled to pay for seeds and fertiliser, with some turning to solar panels to help power water pumps.

Leila Sarukhan, an official with the Kurdish administration, acknowledged that factors including drought and rising costs had led to a decline in agriculture.

"Climate change is impacting rainfall, while desertification expands in northeast Syria," she told AFP, adding: "These are dangerous factors for farming."

Back in Raqqa province, farmer Adnan Ibrahim said his children had left agriculture behind and joined the Kurdish security services instead "to earn a steady salary". 

He pointed to farming equipment sitting idle near the house, and lamented the impact of climate change as well as rising prices.

But the 56-year-old also said the ever-present spectre of conflict influenced his children's decision.

"We are afraid of cultivating our land," he said.

"War could break out at any time and warplanes could bomb our lands. So having a steady job is better."

US banks report mixed results, see consumers as still fairly healthy

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

A Chase Bank branch stands in lower Manhattan Friday in New York City (AFP photo)

NEW YORK — Large US banks reported mixed results last week, dented by exceptional costs connected to job cuts and to replenishing a federal fund tapped during last year's crisis involving midsized lenders.

But while consumer credit quality has diminished somewhat, executives continued to describe relatively resilient US economic conditions.

"The consumer credit narrative broadly is that the consumer is fine," said JPMorgan Chase Chief Financial Officer Jeremy Barnum, who characterised an uptick in charge offs for bad loans as reflecting a "normalisation" of the credit market, rather than a "deterioration."

Barnum's boss, Chief Executive Jamie Dimon, said the US economy "continued to be resilient", while noting in an earnings press release that the bank remains "cautious" in light of wars in Ukraine and Gaza, and the risk that inflation will turn out to be "stickier" than expected.

JPMorgan, the biggest US lender by assets, reported a drop in fourth-quarter profits from the year-ago period, due to costs of $2.9 billion for a Federal Deposit Insurance Corporation (FDIC) special assessment after the failures of Silicon Valley Bank and Signature Bank.

Bank of America, Citigroup and Wells Fargo all paid assessments of around $2 billion for the FDIC fund.

But JPMorgan's profits still topped analyst estimates. Overall, its profits were $9.3 billion, down 15 per cent from the year-ago period, while revenues rose 12 per cent to $38.6 billion.

Operating profits were boosted by higher net interest income following several Federal Reserve rate increases that enabled JPMorgan to charge more for loans.

"When thinking about consumer credit... what really matters is the strength of the labour market," Barnum told reporters on a conference call. "And obviously the labour market remains quite strong."

JPMorgan's increase in net interest income was not matched at other leading banks, which reported decreases in that area to the shifting balance of deposits and loans.

Overall, Bank of America reported profits of $3.1 billion, down 56 per cent, reflecting lower net interest income, as well as the hit from the FDIC special assessment.

Wells Fargo reported profits of $3.5 billion, up nine per cent, the only one of the four banks to see an increase compared with the 2022 period.

Besides the FDIC fee, Wells' results included a $1 billion hit for severance costs due to job cuts.

As with JPMorgan and Bank of America, Wells Fargo saw an increase in charge offs compared with the prior quarter.

But Chief Executive Charlie Scharf characterised credit quality as a "modest deterioration" that is "consistent with our expectations".

Citi in the red 

 

Citigroup was the only one of the large banks to report a fourth-quarter loss, of $1.9 billion compared with profits of $2.5 billion in the 2022 period. Revenues fell three per cent to $17.4 billion.

The results were weighed down by costs including $780 million for severance and other expenses connected to a reorganisation.

The bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam and other markets.

Once the restructure is completed, "we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders", Citi Chief Executive Jane Fraser said.

Overall, Citi plans to trim 20,000 jobs over the medium term.

The move will put headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022 — while also reflecting the expected spinoff of Citi's Mexico subsidiary, Banamex.

Shares of JPMorgan rose 1.2 per cent, while Citi fell 0.5 per cent. Bank of America dropped 1.9 per cent and Wells Fargo lost 1.8 per cent.

2023 inflation tops 211% in economic crisis-torn Argentina

By - Jan 13,2024 - Last updated at Jan 13,2024

BUENOS AIRES — Argentina's annual inflation surged beyond 200 per cent in 2023, the statistics agency said last week, as the country grapples with an economic crisis new President Javier Milei has vowed to address by slashing state spending.

Monthly inflation in December stood at 25.5 per cent, said the INDEC agency, while the annual figure over 12 months was 211.4 per cent.

Milei took office in December after winning a resounding election victory on a wave of fury over the country's decades of economic crises marked by debt, rampant money printing, inflation and fiscal deficit.

Shortly after the self-described "anarcho-capitalist" took office, his administration devalued Argentina's peso by more than 50 per cent and announced huge cuts in generous state subsidies of fuel and transport.

His government has also done away with a program to control the prices of some goods, introduced by the previous government to try and ease the impact of inflation.

The International Monetary Fund (IMF) — to which Argentina owes $44 billion — welcomed these measures.

Milei has warned the country is on the brink of hyperinflation, and said economic "shock" treatment was the only solution.

Poverty levels in Latin America's third-biggest economy are at 40 per cent.

 

Milk money

 

The INDEC said food and non-alcoholic drink prices rose more than 251 per cent year-on-year, the single-biggest contributor to the annual inflation rate. 

In the month to December, the increase in this sector was 29.7 per cent, with meat, bread and cereal prices the main contributors, it said.

Health care costs rose year-on-year by more than 227 per cent and transport 187 per cent.

Economist Hernan Letcher said the main driver of December inflation was "the exchange rate" of the peso to the US dollar, alluding to the devaluation of the currency.

The official rate was 835 pesos to the dollar Thursday, or 1,120 pesos on the parallel exchange market.

"Usually, when there is a devaluation... there is a direct effect on prices. And wages tend to update later. That is why there is a loss of purchasing power," said Letcher, director of the Center for Argentina Political Economy (Cepa).

At markets on the outskirts of Buenos Aires, resignation reigned.

"We can't even drink milk given the price of a liter," said Maria Ester Espindola, a 65-year-old retiree.

Argentines remain haunted by hyperinflation of up to 3,000 per cent in 1989-1990 and a dramatic economic implosion in 2001.

Ana Albornoz, a 53-year-old nanny, likened her shopping these days to a treasure hunt.

"Before, I went to one supermarket, now I go to several places to compare" prices, she told AFP.

 

Tesla's German factory suspends production over Red Sea delays

By - Jan 13,2024 - Last updated at Jan 13,2024

An electric vehicle of the model Y is pictured during the start of the production at Tesla's 'Gigafactory' on March 22, 2022 in Gruenheide, southeast of Berlin (AFP photo)

BERLIN — Electric car manufacturer Tesla has announced it is suspending most production at its factory in Germany for two weeks, citing a shortage of parts due to shipping delays caused by Houthi attacks in the Red Sea.

The suspension was disclosed just hours before the United States and Britain announced recently they had carried out air strikes against the Iran-backed rebels over their repeated threats to vessels in the key waterway.

The Red Sea attacks had led to delays that created a "gap in the supply chains", resulting in production at the facility southeast of Berlin being suspended "with the exception of a few sectors", Tesla said in a statement sent to AFP.

"From February 12, production will resume in full," it added.

Meanwhile, Volvo said Friday that its factory in the Belgian city of Gand would close for three days next week due to a lack of transmissions due to deliveries being delayed by a change in shipping routes.

The factory produces the XC40 SUV as well as the electric C40 model.

Since the start of the Hamas-Israel war, the Iran-backed Houthis have stepped up attacks on commercial and military vessels in the Red Sea in what they say is solidarity with Palestinians in Gaza.

As a result, some shipping firms have opted to avoid the waterway, the gateway to the Suez Canal, forcing them to take much longer routes between Europe and Asia.

Early Friday morning, heavy US and British air strikes targeted an airbase, airports and a military camp in rebel-held Yemen, the Houthi's Al Masirah TV station said, with AFP correspondents and witnesses also reporting hearing bombardments.

US President Joe Biden called the strikes a "defensive action" after the Red Sea attacks and said he "will not hesitate" to order further military action if needed.

The Tesla factory outside Berlin opened in 2022 and employs around 11,500 people, turning out about 250,000 vehicles a year, according to the company, which plans to expand the facility to double production.

US consumer inflation jumps more than expected to 3.4%

By - Jan 12,2024 - Last updated at Jan 12,2024

A customer shops for frozen food at a grocery store on December 12, 2023 in San Anselmo, California (AFP photo)

WASHINGTON — Consumer inflation in the United States rose more than anticipated in December, government data showed on Thursday, although underlying pressures still appear to be ebbing.

The Department of Labour's consumer price index (CPI), a key measure of inflation, was up 3.4 per cent from a year ago and higher than November's figure.

However, a "core" metric that strips out volatile food and energy prices cooled to 3.9 per cent in the last month of 2023.

While analysts do not expect Federal Reserve officials to base their rate-setting off of one month's data, accelerating inflation could add pressure to the central bank.

Policymakers rapidly lifted interest rates beginning in early 2022 and have held them at a high level, seeking to ease demand and sustainably lower inflation.

The aim is to ease demand by making it more appealing to save rather than spend.

Despite the CPI uptick in December, inflation has come down significantly from the 9.1 per cent peak in June 2022, while consumer spending and the jobs market remained resilient.

This has fuelled hopes of a so-called "soft landing" for the world's biggest economy, where inflation cools without a damaging recession.

From November to December, CPI rose 0.3 per cent, up from the prior month as well.

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