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Iraq unveils $17 billion transport project linking Europe and Mideast

By - May 27,2023 - Last updated at May 27,2023

BAGHDAD — Iraq on Saturday presented an ambitious plan to turn itself into a regional transportation hub by developing its road and rail infrastructure, linking Europe with the Middle East.

Once completed, the $17 billion project known as the "Route of Development" would span the length of the country, stretching 1,200 kilometres from the northern border with Turkey to the Gulf in the south.

Prime Minister Mohamed Shia Al Sudani announced the project during a conference with transport ministry representatives from Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, Turkey and the United Arab Emirates.

"We see this project as a pillar of a sustainable non-oil economy, a link that serves Iraq's neighbours and the region, and a contribution to economic integration efforts," Sudani said.

While further discussions are required, any country that wishes "will be able to carry out part of the project", the Iraqi parliament's transport committee said, adding the project could be completed in "three to five years".

"The Route of Development will boost interdependence between the countries of the region," Turkey's ambassador to Baghdad Ali Riza Guney said, without elaborating on what role his country would play in the project.

War-ravaged and beset by rampant corruption, oil-rich Iraq suffers from dilapidated infrastructure.

Its roads, riddled with potholes and poorly maintained, are in terrible condition.

Those connecting Baghdad to the north cross areas where sporadic attacks are still carried out by remnants of the Islamic State group.

Sudani has prioritised the reconstruction of the country's road network, along with upgrading its failing electricity infrastructure.

 

Lack of 'fluidity' 

 

Developing the road and rail corridor would allow Iraq to capitalise on its geographical position, with the aim of making the country a transportation hub for goods and people moving between the Gulf, Turkey and Europe.

Work has already started to increase capacity at the commercial port of Al Faw, on the shores of the Gulf, where cargo is to be unloaded before it embarks on the new road and rail links.

The project also includes the construction of around 15 train stations along the route, including in the major cities of Basra, Baghdad and Mosul, and up to the Turkish border.

The Gulf, largely bordered by Iran and Saudi Arabia, is a major shipping zone, especially for the transportation of hydrocarbons extracted by countries of the region.

Zyad Al Hashemi, an Iraqi consultant on international transport, cast doubt on the plan to develop the country into a transportation hub, saying it lacks "fluidity".

"Customers prefer to transport their goods directly from Asia to Europe, without going through a loading and unloading process," that would see containers moved between ships and road or rail, he said.

Transport is a key sector in the global economy and Iraq's announcement is the latest in other planned international mega-projects, including China's "Belt and Road Initiative" announced in 2013 by its President Xi Jinping.

The planned works in that project would see 130 countries across Asia, Europe and Africa connected through land and sea infrastructure providing greater access to China.

 

OpenAI chief seeks to calm fears on job losses

By - May 27,2023 - Last updated at May 27,2023

OpenAI CEO Sam Altman addresses a speech during a meeting, at the Station F in Paris, on Friday (AFP photo)

PARIS — The boss of OpenAI, the firm behind the massively popular ChatGPT bot, said on Friday that his firm's technology would not destroy the job market as he sought to calm fears about the march of artificial intelligence (AI).

Sam Altman, on a global tour to charm national leaders and powerbrokers, said in Paris that AI would not — as some have warned — wipe out whole sectors of the workforce through automation.

"This idea that AI is going to progress to a point where humans don't have any work to do or don't have any purpose has never resonated with me," he said.

Asked about the media industry, where several outlets already use AI to generate stories, Altman said ChatGPT should instead be like giving a journalist 100 assistants to help them research and come up with ideas.

ChatGPT burst into the spotlight late last year, demonstrating an ability to generate essays, poems and conversations from the briefest of prompts.

Microsoft later laid out billions of dollars to support OpenAI and now uses the firm's technology in several of its products — sparking a race with Google, which has made a slew of similar announcements. 

Altman, a 38-year-old emerging star of Silicon Valley, has received rapturous welcomes from leaders everywhere from Lagos to London. 

Though earlier this week, he seemed to annoy the European Union by hinting that his firm could leave the bloc if they regulate too severely.

He insisted to a group of journalists on the sidelines of the Paris event that the headlines were not fair and he had no intention of leaving the bloc — rather, OpenAI was likely to open an office in Europe in the future.

 

'Exhausting' 

 

The success of ChatGPT — which has been used by politicians to write speeches and proved itself capable of passing tough exams — has thrust Altman into a global spotlight.

"Years from now, reflecting on this will feel very special... but it is also quite exhausting and I hope life calms down," he said.

OpenAI was formed in 2015 with investors including Altman and billionaire Twitter owner Elon Musk, who left the firm in 2018 and has repeatedly bashed it in recent months.

Musk, who has his own AI ambitions, said he came up with the name OpenAI, invested $100 million in it, was betrayed when the company turned itself from non-profit to profit-making in 2018, and has said Microsoft now effectively runs the company.

"I disagree with almost all of that, but I will try to avoid a food fight here," said Altman. "There's got to be more important things than whatever he's going on about." 

Instead, he wanted to focus on the mission of OpenAI, which he said was to "maximise the benefits" to society of AI and particularly Artificial General Intelligence (AGI) — the much-vaunted future where machines will master all sorts of tasks, not just one.

He conceded that definitions of AGI were "fuzzy" and there was no agreement, but said his definition was when machines could make major scientific breakthroughs.

"For me, if you can go figure out the fundamental theory of physics and answer it all, I'll call you AGI," he said.

A major criticism of his products is that the firm does not publish the sources it uses to train its models.

As well as copyright issues, critics argue that users should know who is responsible for answering their questions, and if those replies used material from offensive or racist webpages.

But Altman argued the bottom line was that critics wanted to know whether the models themselves were racist.

"How it does on a racial bias test is what matters there," he said, deflecting the idea that he should publish the sources. 

He said the latest model, GPT-4, was "surprisingly non-biased".

 

Solar investment outshines oil — IEA

By - May 26,2023 - Last updated at May 26,2023

PARIS — Investment in solar power is expected to overtake oil for the first time this year as clean energy spending outpaces that for fossil fuels, the IEA said in a report Thursday.

While that is a welcome development, the International Energy Agency warned that investment in fossil fuels is rising when it should be falling fast to achieve net zero emissions by 2050.

"Clean energy is moving fast — faster than many people realise," IEA Executive Director Fatih Birol said in a statement accompanying the release of the agency's latest report on energy investment.

"This is clear in the investment trends, where clean technologies are pulling away from fossil fuels," he added. 

Annual investment in clean energy is expected to have risen by 24 per cent from 2021 to more than $1.7 trillion in 2023, according to the IEA. The gain for fossil fuels was 15 per cent over the same period.

Investment in clean energy and fossil fuels was equal only five years ago. But a combination of factors, in particular high oil and gas prices and a worry about supplies, has seen spending on renewables surge ahead.

"One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time," Birol said.

The IEA expects investment in solar power, essentially photovoltaic panels, to hit $380 billion this year, while investment in oil exploration and extraction should come in at $370 billion.

 

Sun King 

 

"This crowns solar as a true energy superpower," said Dave Jones, head of data insights at the energy think tank Ember.

The low price of solar power generation will help propel decarbonisation efforts as electric car adoption gathers pace. 

But the rebound in oil and gas investment, which is expected to return to 2019 levels this year, puts the industry further away from the IEA's 2050 net zero trajectory.

The IEA says overall 2023 fossil fuel investment is expected to be more than double the amount the sector should be spending in 2030. For coal, it cold hit six times the amount.

The IEA also noted that clean energy investment was concentrated in advanced nations and China, while the biggest increases in fossil fuel investment are in Middle Eastern nations.

"The irony remains that some of the sunniest places in the world have the lowest levels of solar investment, and this is a problem that needs attention," said Jones.

The IEA also found that major energy companies, for the most part, are not putting considerable funds into the transition to green energy.

Just five per cent of their cash flow last year went to low-carbon and renewable energies or carbon capture projects, only about a quarter of the amount that was paid out overall to shareholders.

Nvidia shares leap as AI trend drives demand for chips

It expects revenue of $11b in current quarter

By - May 26,2023 - Last updated at May 26,2023

The Nvidia headquarters on Thursday in Santa Clara, California. The Dow fell early Thursday, on worries about US debt ceiling talks, but chip maker Nvidia surged more than 20 per cent, lifting its market value close to $1 trillion (AFP photo)

SAN FRANCISCO — Shares in US chip company Nvidia soared more than 25 per cent Wednesday after an earnings report showed the artificial intelligence trend is fueling demand for its sophisticated chips.

Net income for the fiscal quarter that closed at the end of April was $2.04 billion, up 26 per cent from $1.68 billion in the same period a year earlier, Nvidia reported.

More than half of Nvidia's revenue, some $4.28 billion, came from its data center business setting a new record high, according to the chip maker.

"The computer industry is going through two simultaneous transitions — accelerated computing and generative AI," Nvidia founder and chief Jensen Huang said in an earnings release.

"Our entire data centre family of products is in production; we are significantly increasing our supply to meet surging demand for them."

Nvidia specialises in graphics chips that have long been coveted by gamers but have become engines for the kind of complex computing processes involved in artificial intelligence.

"A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process," Huang said.

Gaming-related revenue was down at Nvidia compared to the same quarter a year ago, with the company faulting the overall macroeconomic slowdown.

Nvidia revenue in the recently ended fiscal quarter tallied $7.19 billion, down from the same period last year but up from the prior quarter, the Silicon Valley company reported.

Nvidia said it expected revenue of about $11 billion in the current quarter, which seemed to drive investor enthusiasm for its shares.

Nvidia stock price soared to $387 a share in after-market trading that followed release of the earnings figures.

Release of ChatGPT generative AI by startup OpenAI has triggered a race between Microsoft, Google and others to develop the technology that promises to transform society.

Apple to spend billions of dollars on US-made 5G tech

Apple is committed to invest $430b in US economy over 5 years

By - May 24,2023 - Last updated at May 24,2023

This file photo taken in centre Milan on May 30, 2019, shows the logo of American multinational company Apple (AFP file photo)

SAN FRANCISCO — Apple on Tuesday announced a multibillion-dollar collaboration with US tech firm Broadcom to make "cutting edge" components for wirelessly connecting to high-speed 5G telecom networks.

The iPhone maker did not specify exactly how many billions of dollars it would put into the Broadcom alliance, but said it is part of a commitment to invest in the US economy.

"We're thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing," Apple chief executive Tim Cook said in a statement.

"All of Apple's products depend on technology engineered and built here in the United States, and we'll continue to deepen our investments in the US economy because we have an unshakable belief in America's future."

The alliance will include designing and manufacturing sophisticated radio frequency components and other "cutting-edge wireless connectivity" parts in the United States, according to Apple.

"5G technology is shaping the future of next-generation consumer electronics — and Apple is spending tens of billions of dollars to develop this field in the United States," the company said.

Apple is on pace to meet a commitment it made in 2021 to invest $430 billion in the US economy over the course of five years, according to the Silicon Valley technology titan.

It said those investments include money put into data centers, capital projects and suppliers.

 

'Worst yet to come' for Europe energy shortages — Qatar minister

Qatar is developing North Field, raising its production to 126m tonnes annually by 2027

By - May 23,2023 - Last updated at May 23,2023

In this file photo, Saad Sherida Al Kaabi, Qatar's energy minister and CEO of QatarEnergy, gives a press conference in Doha, on November 29, 2022 (AFP photo)

DOHA — Qatar's energy minister warned on Tuesday the "worst is yet to come" for Europe's oil and gas shortages, saying a warm winter had prevented greater difficulties in recent months.

Saad Al Kaabi and his Saudi counterpart Prince Abdulaziz Bin Salman said a lack of investment in oil and gas, as the world tries to transition to cleaner fuels to prevent global warming, risked causing an energy crunch.

"The only thing that saved humanity and Europe this year was a warm winter, and the slowdown in the economy," Qatari Energy Minister Saad Al Kaabi told the Qatar Economic Forum.

"If the economy starts churning back up in [2024] and you have just a regular winter, I think the worst is yet to come."

After Russia's invasion of Ukraine sparked an energy supply crisis, Europe dodged serious problems this past winter largely because of milder-than-expected temperatures.

But Kaabi and Prince Abdulaziz of Saudi Arabia, the world's biggest oil exporter, both told the conference further problems were looming.

"If [European leaders have] a proper plan and sit down with producers, and oil and gas companies are not demonised, reality will kick in and we'll have a sensible solution," Kaabi said.

Qatar has announced a series of major gas supply deals and is engaged in developing North Field, which contains the world's biggest natural gas deposits, raising its production to 126 million tonnes per year by 2027.

Demand is so great that all the expanded production for the North Field East and North Field South could be tied up in long-term deals by the end of the year, Kaabi said.

"There is a potential that we will run out of all the gas from the NFE and NFS by the end of the year, as far as long-term contracts," he said. "That's obviously a very big demand."

Saudi Arabia's Prince Abdulaziz also said Europe was "rescued by a gift of God" last winter, and said global energy security was at risk from "kicking the can policies".

"Energy security is being shackled. We're running out of capacity, because countries are not investing both in oil and gas," he said, mocking the push for cleaner fuels including green hydrogen, which is produced using renewable energy.

"People go around talking about blue, green, purple, pink hydrogen, but in the final analysis, who is going to be the offtaker?" he said, referring to the proposed buyer.

"What would be the price of hydrogen? We're not talking oil, we're not talking gas. We're talking about the so-called cleanest, greenest fuel of the future. And yet, you don't have the offtakers."

Ryanair flies back to profit as sector recovers from COVID

Profit after taxation soared to $1.5b in 12 months

By - May 22,2023 - Last updated at May 22,2023

In this file photo taken on May 31, a Boeing 737 bearing the livery of Irish low-cost airline Ryanair taxies on the tarmac on its way to take off from Rome’s Fiumicino Airport (AFP file photo)

LONDON — Irish no-frills airline Ryanair rebounded back into bumper annual net profits, boosted by a "strong" post-COVID recovery despite spiking costs, it said Monday.

Ryanair became the latest European aviation giant to log a return to the black as travellers return to the skies after the pandemic and shrug off high inflation, mirroring British Airways owner IAG, Franco-Dutch group Air France-KLM and Germany's Lufthansa.

Profit after taxation soared to 1.4 billion euros ($1.5 billion) in the 12 months to the end of March, after a net loss of 355 million euros in its previous financial year, Dublin-based Ryanair said in a results statement.

It had narrowed losses in the prior 2021/2022 fiscal year, boosted by the lifting of coronavirus lockdowns.

"Over the last year we have seen a very strong post-COVID traffic recovery," said chief executive Michael O'Leary in video remarks published alongside the results.

"People have been locked up for two years and wanted to go back to travelling."

Revenues more than doubled to 10.8 billion euros on rising fares, as the group reported "strong market share gains" in Italy, Poland, Ireland, Spain and elsewhere in Europe.

Passenger traffic leapt 74 per cent to 168.6 million travellers, with fares 10 per cent above pre-COVID levels.

"Traffic is now running at 13-14 per cent ahead of our pre-COVID volumes, but profitability is still running slightly behind where we were pre-COVID," added O'Leary.

 

Higher costs

 

Ryanair said profits were also lifted by "advantageous" fuel hedges. Airlines bet against volatile oil prices by hedging, or taking a defensive position on futures markets.

Total operating costs, however, spiked 75 per cent to 9.2 billion euros, while the group also faced a net loss in the fourth quarter of 154 million euros.

Monday's results come two weeks after Ryanair ordered 300 Boeing 737 MAX jets worth over $40 billion for delivery from 2027, alongside a major recruitment drive which it hopes will drive massive expansion.

The company is targeting an 80 per cent jump in annual passenger traffic to 300 million travellers by 2034, compared with 2023.

It plans to recruit more than 10,000 new cabin-crew members, engineers and pilots, to help meet the goal.

Ryanair's key British rival EasyJet had reported last week that it slashed net losses in the first half of its financial year, or six months to March.

EasyJet, which logged three annual losses in a row due to the pandemic, has predicted a rebound to annual profit as holidaymakers shrug off Britain's cost-of-living crisis.

 

'Robust' summer demand 

 

"Demand for European summer leisure travel looks robust," said Olly Anibaba, analyst at research group Third Bridge. 

"Despite inflation weighing on consumer spending, European consumers are still opting for leisure travel over other forms of entertainment."

The sector is flying high after a tumultuous period sparked by the COVID pandemic, which erupted in early 2020 to ground flights, sparking massive job cuts and huge losses.

Anibaba cautioned that ultra-low air ticket prices may not return to the aviation industry, as it grapples with rising jet fuel prices and fallout from sky-high inflation.

"Ryanair and other airlines have signalled that the era of ultra-low fares might be coming to an end. They are preparing customers for potential price increases."

 

Arab Bank hosts MENA Financial Crime Compliance Group Gala Dinner, Plenary Meeting at Dead Sea

By - May 22,2023 - Last updated at May 22,2023

AMMAN — Arab Bank hosted the MENA Financial Crime Compliance Group (MENA FCCG) Gala Dinner and Plenary Meeting at the Dead Sea. 
 
The event brought together members of the MENA FCCG for a two-day gathering aimed at strengthening cooperation in the fight against financial crime. 
 
The event focused on the Anti-Money Laundering and Counter Terrorist Financing Unit (AML/CTF Unit), with Samya Abou Sharif, Director of the AML/CTF Unit, delivering the keynote speech.
 
During the Gala Dinner, Michael Matossian, Chief Compliance Officer of Arab Bank and Deputy Chair of MENA FCCG, emphasised the importance of maintaining momentum and delivering on the Group's mission to combat financial crime in the MENA region. 
 
He also highlighted three critical success factors that include embracing a culture of ethics and compliance, transitioning from the traditional three lines of defence to accountability and responsibility, and promoting enhanced public-private sector dialogue. 
 
Abou Sharif, in her keynote speech, addressed the compliance challenges faced by banks, including those related to MENA FATF mutual evaluations, and emphasised the value of enhanced collaboration.
 
At the Plenary Meeting, the group discussed progress on key initiatives, including the upcoming launch of the MENA FCCG-led Professional Certificate in collaboration with the American University of Beirut (AUB). 
 
The certificate aims to equip participants with technical expertise in detecting and preventing trade-based financial crime, thereby reducing financial crime in the region. 
 
The meeting also addressed other important topics, such as evolving sanctions against Russia and compliance challenges associated with business transformation and advanced technology.
 

UK announces new Russia sanctions, including diamond ban

Russia's diamond trade is estimated to be worth $4b-5b a year

By - May 21,2023 - Last updated at May 21,2023

In this photo taken on May 31, 2022, a diamond is kept under the microscope during examination at a factory in Surat, India (AFP photo)

HIROSHIMA — Britain unveiled new sanctions against Russia's minerals sector Friday, targeting imports of aluminium, diamonds, copper and nickel in a bid to choke Moscow's ability to fund the war in Ukraine.

Ahead of a G-7 summit in Hiroshima, Japan, London said it would introduce "a ban on Russian diamonds" and target more entities involved in "[Vladimir] Putin's military industrial complex".

Russia's diamond trade is estimated to be worth $4-5 billion a year, netting the Kremlin much-needed tax revenues.

The summit in Hiroshima is expected to bring a series of new sanctions on Russia, including US measures that will put 70 more Russian and foreign entities on a trade blacklist.

"There will be upwards of 300 new sanctions against individuals, entities, vessels and aircraft," a senior US administration official said.

The G-7 as a whole is expected to work to tighten existing sanctions, close loopholes, squeeze Moscow's access to the international financial system and commit to keeping Russian assets frozen until the end of the war in Ukraine. 

On Thursday, a European Union official said one potential target for discussion was Russia's multibillion-dollar diamond industry.

"We believe we need to limit exports from Russian trade in this sector," the official said.

EU member Belgium is among the largest wholesale buyers of Russian diamonds, along with India and the United Arab Emirates.

The United States is a major end-market for the finished product.

"As today's sanctions announcements demonstrate, the G-7 remains unified in the face of the threat from Russia and steadfast in our support for Ukraine," said Prime Minister Rishi Sunak.

Twitter says Microsoft broke its rules for developers

Microsoft stopped accessing Twitter data in April

By - May 20,2023 - Last updated at May 20,2023

This file photo taken on November 7, 2013 shows a banner with the Twitter logo at the New York Stock Exchange (AFP file phot8)

SAN FRANCISCO — Twitter on Thursday accused Microsoft of breaking the social network's rules for developers who access the platform's data, according to a copy of a letter seen by AFP.

"Microsoft may have been in violation of multiple provisions of the Agreement for an extended period of time," read the letter signed by Musk attorney Alex Spiro and sent to Microsoft Chief Executive Satya Nadella.

Microsoft stopped accessing Twitter data in April, opting not to pay fees Musk demanded developers pay for APIs (application programming interfaces) that engage with the platform, according to the letter.

Twitter called on Microsoft to identify all Twitter content that has been in its control during the past two years; how it is stored and what has been done with it, according to the letter sent to Nadella.

Microsoft confirmed receiving a letter from a law firm representing Twitter with some questions about its previous use of the free Twitter API.

"We will review these questions and respond appropriately," a Microsoft spokesperson said in response to an AFP inquiry.

"We look forward to continuing our long term partnership with the company."

Twitter said in the letter it is looking into whether Microsoft exceeded the "reasonable request volume" in what could constitute "abusive usage".

Twitter wants the information by June 7, the letter stated.

The demand comes as Elon Musk looks to generate revenue by getting developers to pay for Twitter platform access that had been free prior to the billionaire taking over.

Musk is also out to counter Microsoft and Google with his recently-established X.AI artificial intelligence corporation based in the US state of Nevada, according to business documents.

Musk last month fired off a Tweet accusing Microsoft of illegally using Twitter data to train artificial intelligence, writing "lawsuit time".

Big tech companies like Google, Meta and Microsoft have spent years working on AI systems — previously known as machine learning or big data — to help with translations, search and targeted advertising.

Microsoft is investing billions of dollars in ChatGPT creator OpenAI and has put its technology to work in its Bing Internet search service.

Since taking over Twitter in late October, Musk has repeatedly courted controversy, sacking most of its staff, readmitting far-right figures to the platform, suspending journalists and charging for previously free services.

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