Business

PARIS — Shares in Stellantis, a multi-brand auto giant that includes Jeep, Fiat and Peugeot-Citroen, plunged in Paris Monday after chief executive Carlos Tavares abruptly resigned.

The French-Italian-American group's stock price was down more than 8 per cent at 11.48 euros ($12.07) in morning deals, the biggest drop among companies of the blue-chip CAC 40 index.

Stellantis's board had announced in October that Tavares, 66, would retire in 2026 when his contract runs out.

But the group said Sunday that its Portuguese chief executive was resigning "with immediate effect".

"In recent weeks different views have emerged which have resulted in the board and the CEO coming to today's decision," independent director Henri de Castries said in the statement, without giving details.

Stellantis said an interim executive committee led by chairman John Elkann would run the company until a new CEO is named in the first half of 2025.

Tavares, who headed Peugeot-Citroen, was made CEO of Stellantis when the French automaker merged with Fiat-Chrysler in 2021 to form the new group.

The company, whose 14 brands also include Maserati, Ram and Chrysler, has struggled in its key US market where dealerships have had a hard time selling vehicles deemed too expensive.

In late September, Tavares, who earned 36.5 million euros last year, abandoned his goal of double-digit margin, an indicator of profitability, for the group in 2024.

Stellantis downgraded its profit outlook for 2024 after its net income was cut in half in the first six months of the year.

NEW YORK — Intel announced Monday that CEO Pat Gelsinger has retired effective December 1, as the once dominant chip-making giant company struggles to catch up with rivals.

The company named CFO David Zinsner and newly appointed Intel Products CEO Michelle Johnston Holthaus as interim co-chief executives while it searches for a permanent successor.

Gelsinger, who began his career at Intel in 1979 and served as its first chief technology officer, returned to the company as CEO in 2021 during a critical period for the company.

Intel is one of Silicon Valley's most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung which dominate the made-to-order semiconductor business.

The company was also caught by surprise with the emergence of Nvidia, a graphics chip maker, as the world's preeminent AI chip maker.

Under Gelsinger's leadership, Intel invested heavily in semiconductor manufacturing and worked to revitalise its production capabilities, often by relying heavily on government subsidies.

US President Joe Biden's administration last month finalised a $7.9 billion award to Intel as part of his effort of bringing semiconductor production to US shores.

But in Europe, Intel last month said it was delaying its plans to build two mega chip-making factories in Germany and Poland as the company faces lower demand than anticipated.

Intel also said it would pull back on its projects in Malaysia.

"Leading Intel has been the honour of my lifetime," Gelsinger said in a statement, acknowledging the "challenging year" as the company adapted to market conditions.

Zinsner joined Intel in 2022 from Micron Technology, while Holthaus is a nearly 30-year Intel veteran who previously led the company's Client Computing Group.

"We know that we have much more work to do at the company and are committed to restoring investor confidence," Board chairman Frank Yeary said in the company's statement.

WASHINGTON — Elon Musk has again asked a US court to stop ChatGPT-maker OpenAI from converting into a for-profit enterprise, CNBC reported on Saturday.

Attorneys representing the billionaire and his AI startup, xAI, filed the injunction Friday, the financial news site reported.

The injunction also requests that OpenAI be stopped from allegedly barring its investors from funding competing companies.

The move is the latest development in a business feud between OpenAI and Musk, who co-founded the group in 2015 but has since left.

OpenAI has seen its profile skyrocket over recent years as it has become a star player in the growing field of artificial intelligence.

Musk has alleged that OpenAI bars its investors from making investments in rivals — which would put his own startup at a disadvantage in a sector where billions of dollars are at stake.

OpenAI was founded as a non-profit and has since switched to a "capped" for-profit enterprise.

It is currently seeking to become a for-profit public benefit corporation, which could attract more investment.

After leaving in 2018, Musk said he was uncomfortable with the profit-driven direction the company was taking under the stewardship of CEO Sam Altman.

He filed a lawsuit against the company in March, accusing it of breaking its original non-profit mission to make AI research available to all.

OpenAI argues that Musk's lawsuit, as well as his embrace of open source development for AI, is little more than a case of sour grapes after leaving the company.

GENEVA — Ngozi Okonjo-Iweala, who was reappointed Friday for a second term running the World Trade Organization, said she looked forward to working with Donald Trump, while insisting on the importance of rules-based global trading.

Okonjo-Iweala, the first woman and the first African to head the WTO, was the only candidate in the race, and had been all but assured a second four-year term.

The 70-year-old Nigerian was reappointed by consensus among the organisation's 166 members, who sped up the process in what observers suggested was a bid to avoid Trump blocking her candidacy after he returns to the White House on January 20.

"We have a full agenda to deliver for the people of this world... and for the planet," Okonjo-Iweala told reporters after her reappointment was announced.

"We fully intend to get to work immediately, no stopping."

Her current term ends in August 2025, but African countries called for the appointment process to be brought forward, officially to facilitate preparations for the WTO's next big ministerial conference, set to be held in Cameroon in 2026.

The unstated objective was to "accelerate the process, because they did not want Trump's team to come in and veto her as they did four years ago", said Keith Rockwell, a senior research fellow at the Hinrich Foundation and a former WTO spokesman.

The common practice of appointing directors-general by consensus made it possible in 2020 for Trump to block Okonjo-Iweala's appointment for months, forcing her to wait to take the reins until after President Joe Biden entered the White House in early 2021.

'Eager' to work with Trump

The overwhelming support for Okonjo-Iweala's second term came "not so much (because) everyone loves Ngozi", but rather due to concern that Trump "would slow things", a source close to the process told AFP.

Okonjo-Iweala herself said she found suggestions her re-appointment had been rushed due to the looming changing of the guard in Washington "a little odd".

"I look very much forward to working with President Trump... I am eager for it," she said.

For now at least, Washington is equally enthusiastic, with US Trade Representative Katherine Tai congratulating Okonjo-Iweala in a statement highlighting Washington's appreciation for "her work over the last nearly four years" and her "strong commitment to the work and future of the organisation".

But during Trump's first term, the WTO faced relentless attacks from his administration, which crippled the organisation's dispute settlement appeal system, and also threatened to pull the United States out of the organisation altogether.

Trump has already signalled he is preparing to launch all-out trade wars, threatening to unleash a flurry of tariffs on China, Canada and Mexico on his first day in office.

'Festival of tariffs'

Okonjo-Iweala said Friday that "until we get specifics" it was "a bit premature" to comment on Trump's promised trade actions.

"We should come into things with a very constructive and creative approach," she said.

She stressed though the need "to make sure that we don't have a situation in which we have any kind of trade disputes that are detrimental to the functioning of the world trade system".

That could be tricky, observers said.

"The festival of tariffs announced to date shows that (Trump) has no intention of following any rules," said Elvire Fabry, a researcher at the Institut Jacques Delors think-tank.

"The United States would not even need to withdraw from the WTO," she told AFP. "They are freeing themselves from the WTO rules."

In this context, the WTO chief will have "a firefighter role", she said.

It will be a question of "saving what can be saved, and making the case that there is no real alternative to the WTO rules", said another source close to the discussions on speeding up Okonjo-Iweala's reappointment.

"It will be a very difficult mandate, with little certainty about what will happen."

Since taking the WTO reins, Okonjo-Iweala has tried to breathe new life into the fragile organisation, pushing for fresh focus on areas like climate change and health.

But pressure is growing for WTO reform, in particular of the moribund appeals portion of its dispute settlement system, which collapsed during the first Trump presidency as Washington blocked the appointment of judges.

PARIS — French Prime Minister Michel Barnier on Thursday announced a major concession in a bid to end a standoff with the opposition over the budget, which has caused jitters on financial markets and risks bringing down his minority government.

In a U-turn, Barnier told the Le Figaro daily that a previously planned increase for an electricity tax would no longer be included in the budget.

"Almost everyone asked me to make a change," from among his own right-wing ranks and the left-wing and far-right opposition, Barnier said.

The far right under Marine Le Pen, which as a parliamentary bloc holds the key to the government's survival, welcomed the move but said more needed to be done and reiterated a warning it could topple Barnier.

Months of political tensions since Barnier was named prime minister in September, at the helm of a minority government appointed by President Emmanuel Macron in the wake of snap parliament elections, are coming to a head over the budget.

The opposition on all sides of the spectrum have denounced the budget, prompting Barnier to consider brandishing article 49.3 of the constitution, which allows a government to force through legislation without a vote in parliament.

It was widely expected that Barnier could employ this tactic in the National Assembly as soon as Monday, which would pass the legislation on the social security budget but also allow the opposition to call a vote of no confidence within days.

'Financial uncertainty'

Le Pen's far-right National Rally (RN) has warned it is ready to vote alongside the left-wing bloc in parliament to topple the government in such a vote.

RN party leader Jordan Bardella hailed Barnier's concession as a "victory" but said "other red lines remain" including on medicines, immigration, pensions and a moratorium on tax increases.

"The prime minister cannot remain deaf to them. He has a few days left," Bardella warned in a social media post.

Finance Minister Antoine Armand, speaking on BFM television, told the opposition that "just because we have nothing in common" does not mean "that we plunge the country into budgetary and financial uncertainty".

French bond yields on Wednesday surpassed those of Greece for first time, indicating that investors believe there are equal risks in lending to France as to Greece.

Further complicating the situation is the constitutional rule in France that there must be a one-year gap between legislative elections — meaning that Macron cannot call fresh elections until the summer to resolve what would be a major political crisis.

Some voices are even evoking the possibility that Macron, whose term ends in 2027, should resign to take responsibility for the chaos and break the deadlock.

The president has previously ruled out resigning.

No matter who might replace Barnier should his government fall, the prime minister "will not have a majority. The only solution would be for the president to resign," said Charles de Courson, an MP with the centrist Liot faction.

According to an Elabe poll for BFM, 63 per cent of French people believe Macron should resign if the government is toppled, with 53 per cent holding him responsible for the current political situation.

If Macron did stand down, France's maximum two consecutive terms rule means he could not be a candidate in a snap presidential election, though he could stand again in polls further down the line.

'Still have hope'

Widely seen since September as holding a sword of Damocles over Barnier, Le Pen is facing a decision over whether to bring down the government at a time when she faces being barred from politics in an embezzlement trial.

Charged along with other RN figures of misusing EU parliament funds, prosecutors have said she should receive a jail sentence and be banned from public office for five years, applicable even if she appeals. This would disqualify her from the 2027 presidential elections.

The verdict in her case is expected on March 31.

"I still have hope that we will be understood. See you in four months," Le Pen, who has denied the fraud charges, told reporters after the court adjourned on Wednesday.

Meanwhile she denied any suggestion that the apparent hardening of the RN's line on bringing down the government was linked to the risk she could be convicted and forced to bow out of politics.

"I will do what I have to do to defend the French. And this trial in no way comes into consideration," she said.

LA PAZ — Bolivia said Tuesday it had signed a $1 billion deal with China's CBC, a subsidiary of the world's largest lithium battery producer CATL, to build two lithium carbonate production plants in the country's southwest.

Bolivia's state-owned Bolivia Lithium Deposits (YLB) said the plants — one with an annual capacity of 10,000 tons of lithium carbonate and the other of 25,000 - would be situated in the vast Uyuni salt flats.

Lithium, nicknamed "white gold," is a key component in the production of batteries for electric vehicles and mobile phones.

Bolivia claims to have the world's largest lithium deposits.

President Luis Arce, who presided over Tuesday's signing ceremony, said it paved the way for Bolivia to become "a very important player in determining the international price of lithium."

The deal follows an earlier agreement reached last year between Russia's Uranium One Group and YLB to build a $970 million lithium extraction facility, also in Uyuni.

Both deals have yet to be approved by Bolivia's parliament.

Arce announced that negotiations were underway with China's Citic Guoan Group for a third contract.

"We hope to close that deal as soon as possible," he said.

WASHINGTON — US President-elect Donald Trump said Monday he intends to impose sweeping tariffs on goods from Mexico, Canada and China in response to illegal drug trade and immigration.

In a series of posts to his Truth Social account, Trump vowed to hit some of the United States' largest trading partners with sweeping tariffs on all goods entering the country.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 per cent tariff on ALL products coming into the United States, and its ridiculous Open Borders," he wrote.

In another post, Trump said he would also be slapping China with a 10 per cent tariff, "above any additional Tariffs," on all of its products entering the US in response to what he said was its failure to tackle fentanyl smuggling.

Tariffs are a key part of Trump's economic agenda, with the Republican president-elect vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail ahead of his November 5 victory.

Trump's first term in the White House was marked by an aggressive and protectionist trade agenda that also targeted China, Mexico and Canada, as well as Europe.

While in the White House, Trump launched an all-out trade war with China, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.

At the time he cited unfair trade practices, intellectual property theft, and the trade deficit as justifications.

China responded with retaliatory tariffs on American products, particularly affecting US farmers.

The US, Mexico and Canada are tied to a three-decade-old free trade agreement, now called the USMCA, that was renegotiated under Trump after he complained that the US businesses, especially automakers, were losing out.

"Mexico and Canada remain heavily dependent on the US market so their ability to walk away from President-elect Trump's threats remains limited," Wendy Cutler, vice president at the Asia Society Policy Institute, and former US trade official, told AFP.

"He would undoubtedly be challenged in US courts but that will take time to work through the legal process," she added.

By citing the fentanyl crisis and illegal immigration, Trump appeared to be using national security concerns as a means to break that deal, something that is allowed under the rules set by the World Trade Organization.

But most countries and the WTO treat national security exceptions as something to be used sparingly, not as a routine tool of trade policy.

Trump in 2018 cited national security justifications to impose tariffs on steel and aluminum imports that targeted close allies like Canada, Mexico, and the European Union.

This led to retaliatory measures from the trading partners.

'No cause of concern'

The EU ambassador to the United States on Friday said that Europe would be ready to respond in case of renewed frictions with the US over trade.

Shortly after Trump's victory, Mexican President Claudia Sheinbaum reassured her citizens that Trump's return was "no cause for concern" despite the virulent trade threats.

Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.

But those in Trump's inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.

Trump has said he will put his commerce secretary designate Howard Lutnick, a China hawk, in charge of trade policy.

Lutnick has expressed support for a tariff level of 60 per cent on Chinese goods alongside a 10 per cent tariff on all other imports.

FRANKFURT, Germany — German business confidence fell more than expected in November, a key survey showed Monday, amid political uncertainty following the collapse of the country's coalition government and Donald Trump's US election win.

The Ifo institute's confidence barometer, based on a survey of around 9,000 companies in Europe's struggling top economy, slipped 0.8 points to 85.7 points.

Analysts surveyed by financial data firm FactSet had forecast a more modest fall, to 86.0.

The survey comes as Germany heads for new polls in February following the collapse of Chancellor Olaf Scholz's coalition, and with businesses facing the threat of higher tariffs on exports to the key US market once Trump returns as president.

Philipp Scheuermeyer, economist at public lender KfW, said it was "no wonder" that the index had fallen.

"Donald Trump's election victory is likely to create new headwinds for the already hard-hit German export industry," he said.

"There is also the threat of a prolonged period until a new government is formed, during which German politics will hardly be able to react, let alone provide any stimulus."

The index had ticked up for the first time in months in October, in a rare piece of good news for the German economy, which has been battling a manufacturing slowdown and weak demand for a prolonged period.

November's fall was driven by a significant drop in businesses' assessment of the current economic environment while their expectations about the months ahead also fell, although less markedly.

Companies in the crucial manufacturing sector were more pessimistic about the months ahead although they viewed their current business situation as slightly better, it said.

The picture in both the service sector and construction industry worsened significantly, according to the survey.

In the area of trade the index ticked up, although Ifo president Clemens Fuest stressed that "sentiment among companies is still a long way off from being positive".

Germany was the only major advanced economy to shrink in 2023 and is on course to contract again this year.

Last week data showed the economy expanded just 0.1 per cent in the third quarter, and only narrowly dodged a recession.