CRYPTO CRIMINAL CAPITALI$M

Sam Bankman-Fried, the fallen wunderkind of cryptocurrency


By AFP
March 28, 2024

Samuel Bankman-Fried, founder and former CEO of FTX, faces a potential de facto life sentence after being found guilty of a massive fraud scheme 

- Copyright AFP SAUL LOEB
Thomas URBAIN

He was the face of cryptocurrency, and a young one at that — a media darling seemingly destined to unite the sector.

But the stunning rise of Sam Bankman-Fried and his FTX platform would be matched by an equally spectacular fall when it was revealed that billions of dollars of clients’ funds had been moved and spent without their consent.

After a jury in 2023 found him guilty of seven counts, a federal judge in New York sentenced Bankman-Fried on Thursday to 25 years for leading the fraudulent scheme.

Before it all came crashing down, the native Californian had amassed a fortune at one point estimated to be worth $26 billion. “Save for Mark Zuckerberg, no one in history has ever gotten so rich so young,” read a headline in Forbes, which put Bankman-Fried on its cover in October 2021.

In the span of a few months, the Massachusetts Institute of Technology graduate with a degree in physics had taken the startup he co-founded in 2019 and built it up into the world’s second largest crypto exchange platform.

He quickly became more than just a young entrepreneur, fashioning himself as an ambassador of crypto and making his first appearance in Congress in December 2021, testifying before lawmakers on the then-novel form of currency.

The public would come to know a seemingly oddball whiz kid with a mop of curly dark hair who, when not suited up for appearances on Capitol Hill, wore shorts and a T-shirt.

– Center of crypto world –

The son of two Stanford University professors, Bankman-Fried ventured outside the world of cryptocurrencies, making donations to US politicians and persuading celebrities like American football star Tom Brady or basketball player Stephen Curry to pitch FTX — endorsements for which they were richly rewarded.

The young man known as SBF would charm US lawmakers with his straight talk and vision of crypto’s future, including recommendations for an extensive regulatory regime — a position at odds with many in the sector.

He devised project after project, from a platform for people to make donations in cryptocurrency to Ukraine to a market for financial derivative products that stepped on the toes of Wall Street.

A vegan, Bankman-Fried said he believed in the concept of effective altruism — finding the best way to help other people, in particular by donating all or part of one’s wealth to charity rather than, say, volunteering at a soup kitchen.

When the cryptocurrency world lurched into crisis in the spring of 2022, Bankman-Fried billed himself as a savior, buying the troubled platform BlockFi, and shares in another company that was in trouble, Voyager.

“We take our duty seriously to protect the digital asset ecosystem and its customers,” he tweeted at the time, as some people were comparing him — barely 30 years old then — to the legendary investing guru Warren Buffett.

– Financial high wire –

But behind his reassurances, Bankman-Fried was walking a financial high wire, as revealed later in court documents and testimony.

Without their knowledge, Bankman-Fried’s team used the money of FTX customers to cover risky operations by an affiliated trading company called Alameda Research, as well as to buy posh real estate and to make political donations.

In November 2022, the crypto news outlet CoinDesk revealed that Alameda had converted a large part of its assets into FTT, a crypto token created by FTX. The news caused that currency to plummet.

Hours later Changpeng Zhao, the head of Binance, the world’s largest crypto exchange platform, announced it was selling all the FTT tokens it held, causing it to lose 90 percent of its value in a matter of days and taking the Bankman-Fried empire with it.

His fortune having vanished overnight, Bankman-Fried was extradited from the Bahamas, where FTX had its headquarters. In December 2022 he was indicted on charges of fraud and racketeering.

After five weeks of trial, the jury quickly reached a guilty verdict on all seven counts, which carry a potential maximum sentence of 110 years behind bars.

In closing arguments, the defense said their client had acted in “good faith” and was overtaken by circumstances and the financial ineptitude of close associates who testified against him to gain leniency from prosecutors.

Prosecutors portrayed the defendant as an extremely smart man consumed by greed who knew what he was doing when FTX funds were secretly funneled to his personal hedge fund.

According to prosecutors, at the time of the bankruptcy of FTX, just over $8 billion belonging to customers had vanished into bad investments at Alameda.

“Who had control? That’s the question. It was one person: the defendant,” the lead prosecutor concluded.

Russian veto ends monitoring of UN’s N.Korea sanctions

THANKS FOR THE ARMS

By AFP
March 28, 2024

The United Nations headquarters building in New York is seen on March 4, 2024 - Copyright AFP/File Daniel SLIM

Amélie BOTTOLLIER-DEPOIS

Russia on Thursday blocked the renewal of a panel of UN experts monitoring international sanctions on North Korea, weeks after the body said it was investigating reports of arms transfers between Moscow and Pyongyang.

The move was met with a flurry of criticism, including by Ukraine’s Foreign Minister Dmytro Kuleba, who took to social media to call the veto “a guilty plea” amid allegations that Pyongyang is aiding Moscow in its war against Kyiv.

The United States called the veto by Russia a “self-interested effort to bury the panel’s reporting on its own collusion” with North Korea.

“Russia’s actions today have cynically undermined international peace and security, all to advance the corrupt bargain that Moscow has struck with the DPRK,” State Department spokesman Matthew Miller said, referring to the North by its official name, the Democratic People’s Republic of Korea.

Moscow’s veto at the Security Council does not remove the sanctions on North Korea, but spells the end for the group monitoring their implementation — and myriad alleged violations.

The panel’s mandate expires at the end of April.

North Korea has been under mounting sanctions since 2006 put in place by the UN Security Council in response to its nuclear program.

Since 2019, Russia and China have tried to persuade the Security Council to ease the sanctions, which had no expiration date.

The council has long been divided on the issue, with China’s deputy ambassador Geng Shuang arguing Thursday that the sanctions “have exacerbated tensions and confrontation with a serious negative impact on the humanitarian situation.”

China abstained rather than joining Russia in the veto.

Russia’s UN envoy Vasily Nebenzia said that without an annual review guaranteed to assess and potentially modify the sanctions, the panel of experts was unjustified.

“The panel has continued to focus on trivial matters that are not commensurate with the problems facing the peninsula,” Nebenzia said.

“Russia has called for the council to adopt a decision to hold an open and honest review of the Council sanctions… on an annual basis.”

– Rising tests –

Additional Security Council sanctions were leveled on Pyongyang in 2016 and 2017, but the North’s sanctioned nuclear and weapons development have continued.

Last week, Pyongyang tested a solid-fuel engine for a “new-type intermediate-range hypersonic missile,” state media reported.

Recent cruise missile launches have prompted speculation that North Korea is testing those weapons before shipping them to Moscow for use in Ukraine.

In its latest report, issued at the beginning of March, the sanctions panel reported that North Korea “continued to flout” sanctions, including by launching ballistic missiles and breaching oil import limits.

It added that it is investigating reports of arms shipments from Pyongyang to Russia for use in Ukraine.

“This veto does not demonstrate any concern for North Korean people or for the efficacy of sanctions,” said Britain’s UN ambassador Barbara Woodward.

“It is about Russia, gaining the freedom to evade and breach sanctions in pursuit of weapons to be used against Ukraine.”

In a joint statement, 10 Security Council members, including Britain, France and the United States, defended the sanction monitors’ work.

“In the face of these repeated attempts to undermine international peace and security, the panel’s work is more important now than ever before,” it said.

All members of the Security Council other than Russia and China voted for the resolution.

Read more: https://www.digitaljournal.com/world/russian-veto-ends-monitoring-of-uns-n-korea-sanctions/article#ixzz8Vq3TAEKy

UPDATED

Lula, Macron find common ground, despite Ukraine shadow

By AFP
March 28, 2024

French President Emmanuel Macron wrapped up his three-day tour of the Latin American giant with a trip to the modernist capital Brasilia

 - Copyright POOL/AFP Ludovic MARIN

Valérie LEROUX

French President Emmanuel Macron and his Brazilian counterpart Luiz Inacio Lula da Silva on Thursday displayed their unity on major global issues, while skirting differences on the war in Ukraine.

Macron wrapped up his three-day tour of the Latin American giant with a solemn, but warm, trip to the presidential palace in the modernist capital Brasilia.

The French leader paid tribute to “the spirit of resistance” of Lula’s government for “restoring democracy” after a crowd of extreme-right supporters of former president Jair Bolsonaro stormed the seats of power in the city in January 2023.

Lula hailed a relationship between the two countries as one that created “a bridge between the global South and the developed world.”

While the two men firmly reset the frosty ties of the Bolsonaro years, they retain deep differences over the war in Ukraine, a subject which only briefly reared its head.

While France and the West support Kyiv wholeheartedly, Lula has in the past said that Ukraine and Russia share responsibility over the conflict and has refused to isolate Moscow.

– Putin at G20 meet? –

Responding to a question from a journalist, Macron said that Brazil, as the current chair of the G20, could invite Russia’s President Vladimir Putin to a summit in Rio de Janeiro in November if other members agreed.

“The meaning of this club is that there must be consensus with the 19 others. That will be a job for Brazilian diplomacy,” he said.

If such a meeting can be “useful, it must be done,” Macron said.

Lula responded only that “diversity” must be accepted in organizations like the G20.

Putin missed last year’s G20 summit in the Indian capital New Delhi, avoiding possible political opprobrium and any risk of criminal detention under an International Criminal Court (ICC) warrant.

In September 2023, Lula said there was “no way” that Putin would be arrested if he attended the Rio de Janeiro summit.

Shortly after, he backtracked and said that it would be up to the justice system to decide on Putin’s eventual arrest and not his government.

Lula’s only remarks on the conflict were that “the two stubborn” leaders will “have to get along,” referring to Putin and Ukraine’s President Volodymyr Zelensky.

– Unity on Venezuela –

However, he highlighted that Ukraine was not Brazil’s priority, and turned to a crisis in his own neighborhood, that he and Macron agreed upon: Venezuela.

Both leaders condemned the exclusion of the main opposition coalition’s chosen candidate, Corina Yoris, 80, from July 28 elections.

“We very firmly condemn the exclusion of a serious and credible candidate from this process,” Macron said.

Lula described the situation as “serious” and said there was “no legal or political explanation for banning an opponent from being a candidate.”

“I told Maduro that the most important thing to restore normality in Venezuela was to avoid any problems in the electoral process, that the elections be held in the most democratic way possible.”

From the protection of the Amazon to cooperation in the building of submarines and economic ties, the two leaders showed off the broad Franco-Brazilian partnership over the three-day visit.

Macron and Lula also brushed over tensions about the long-delayed EU-Mercosur free trade agreement, which Brazil has pushed for and France has blocked.

Macron blasted the deal as “a really bad agreement” and said it should be buried in favor of a new one that “is responsible from a development, climate and biodiversity point of view.”

Lula said he was “very calm” and noted only that Brazil “does not negotiate with France” but with the EU.

The two leaders’ close relationship was highlighted by a warm meeting in the Amazon, in which they were pictured beaming and clasping hands, to the delight of Brazilians who spawned a raft of memes comparing the images to a wedding album.

Macron and Lula’s ‘bromance’ sets social media fans alight

By AFP
March 28, 2024

Brazilian President Luiz Inacio Lula Da Silva (L) and French President Emmanuel Macron smile together at Combu Island, Brazil, on March 26, 2024 - Copyright AFP STR

Wedding photos or a diplomatic visit? The apparent “bromance” between French President Emmanuel Macron and his Brazilian counterpart Luiz Inacio Lula da Silva has set social media fans alight.

During his three-day visit to Brazil, 46-year-old Macron was pictured smiling and warmly embracing Lula, 78, during a trip to the Amazonian rainforest.

Many of the images have since circulated wildly among social media users in Brazil alongside montages and witty comments.

One picture showing the leaders raising their arms underneath a large tree has been edited to show them holding red balloons in the shape of a heart.

Another portrays the pair hand in hand, smiling as they look at the horizon while floating in a boat along the Amazon River.

“They are going to marry in the Amazon and have their honeymoon in Paris,” joked one user on X, while others said pictures from the trip could make up a wedding album.

Macron’s warm relations with Lula mark a departure from the frosty ties between the French leader and Brazil’s former right-wing president Jair Bolsonaro, who led the country from 2019 to 2022.

His trip, which will end Thursday in Brasilia when he meets Lula at the presidential palace, saw the two leaders announce a billion-dollar green investment plan for the Amazon.

France, the seventh-largest economy in the world, and Brazil, the ninth-largest, are considered key players in a geopolitical scene marked by rivalry between China and the United States.

Paris sees Brasilia as a bridge to large emerging economies whose voices Brazil is trying to amplify through its presidency of the G20, and membership of the BRICS+ group.

Macron quips about cuddly 'wedding' pics with Lula

Rio de Janeiro (AFP) – French President Emmanuel Macron joined social media users Thursday in their jokes that likened his cozy pictures with Brazilian President Lula to those from a wedding album.


Issued on: 29/03/2024 -

Brazil President Lula and French President Emmanuel Macron hold hands as they share a bilateral meeting while sailing at Guajara Bay off Belem, Brazil, on March 26, 2024 in this handout image from the Brazilian presidency © Ricardo STUCKERT / Brazilian Presidency/AFP

Images of the pair smiling and warmly embracing during Macron's three-day visit to Brazil circulated online this week alongside light-hearted captions and montages suggesting a loving relationship between the leaders.

"Some have compared the pictures of my visit to Brazil to those of a wedding," Macron wrote Thursday on X.

"I tell them it was one. France loves Brazil and Brazil loves France," he said.

Macron's tweet was accompanied by picture of himself and Lula smiling during the visit, overlaid on the background of a poster for the romantic 2016 film "La La Land."

Lula responded to Macron's tweet, which was also shared in Portuguese, with emojis of the Brazil and France flags alongside two small love hearts.

One picture shared on social media this week showed the leaders raising their arms underneath a large tree in the Brazilian jungle was edited to show them holding red balloons in the shape of a heart.
Brazilian President Luiz Inacio Lula Da Silva (L) and French President Emmanuel Macron smile together at Combu Island, Brazil, on March 26, 2024 © Ludovic MARIN / AFP

"They are going to marry in the Amazon and have their honeymoon in Paris," joked one user on X, while others said pictures from the trip could make up a wedding album.

Macron's trip to Brazil saw the two leaders announce a billion-dollar green investment plan for the Amazon.

Lula hailed the relationship between the two countries as one that created "a bridge between the global South and the developed world."

Macron's warm relations with Lula mark a departure from the frosty ties between the French leader and Brazil's former right-wing president Jair Bolsonaro, who led the country from 2019 to 2022.

© 2024 AFP

'Bromance' getaway: French President Emmanuel Macron wraps up 3-day Brazil visit

Issued on: 29/03/2024 - 

French President Emmanuel Macron and his Brazilian counterpart Luiz Inacio Lula da Silva on Thursday displayed their unity on major global issues, while skirting differences on the war in Ukraine. Macron wrapped up his three-day tour of the Latin American giant with a solemn, but warm, trip to the presidential palace in the modernist capital Brasilia. FRANCE 24's International Affairs Commentator Douglas Herbert tells us more.

04:05 Video by: Douglas HERBERT

WHAT IT WAS REALLY ALL ABOUT

Macron, Lula hail defense ties at submarine launch


By  AFP
March 27, 2024

Brazilian President Luiz Inacio Lula da Silva (L) and French President Emmanuel Macron arrive for the launching of the Tonelero submarine at the Itaguai naval base 

- Copyright POOL/AFP Jacques WITT

Valérie LEROUX

President Emmanuel Macron and counterpart Luiz Inacio Lula da Silva on Wednesday celebrated the launch of Brazil’s third French-designed submarine, which will help secure the country’s immense coastline, dubbed the “Blue Amazon.”

The two men highlighted the importance of their countries’ defense partnership during a time of major global unrest, at a ceremony at Brazil’s ultra-modern naval base in Itaguai near Rio de Janeiro.

It is here that Brazil built the Tonelero, the third of four planned conventional diesel attack submarines, with training, equipment, and technical assistance from France.

Under cloudy skies, the submarine was christened by First Lady Rosangela da Silva, nicknamed “Janja.”

France and Brazil’s defense ties “will allow two important countries, each on a continent, to prepare so that we can face this adversity, without worrying about any type of war, because we are defenders of peace,” said Lula.

Despite differences, notably on the Ukraine war, Macron said “the great peaceful powers of Brazil and France” had “the same vision of the world.”

Macron is on a whirlwind tour of Brazil, a major economic ally, which kicked off Tuesday with the launch of a plan to raise over a billion dollars in green investments to protect the Brazilian and Guyanese Amazon.

– Jungle bromance –

The visit, the first by a French president to Latin America’s economic giant in over a decade, is also a move to reset ties which had deteriorated significantly under former president Jair Bolsonaro.

A warm meeting between Macron and Lula in the Amazon, in which the two men were pictured beaming and clasping hands in the jungle, spawned a raft of internet memes about their bromance.

The cozy scenes — a far cry from the days Bolsonaro lobbed insults at Macron’s wife — continued Wednesday at the submarine launch.

With its 8,500 kilometers of coastline, Brazil is seeking to ensure the security of what it calls the “blue Amazon,” its immense exclusive economic zone through which more than 95 percent of its foreign trade passes and where it extracts 95 percent of its oil.

The construction of the submarines was outlined in a 2008 deal between Lula and former French president Nicolas Sarkozy, which also included the purchase of 50 Caracal helicopters.

The fourth submarine, the Angostura, will be launched in 2025.

– France skirts around nuclear sub –

Brazil is also planning to build its first nuclear-powered submarine, the Alvaro Alberto, a project that has suffered significant delays, mainly due to budget constraints.

The French naval defense manufacturer Naval Group is supporting the design and construction of the submarine, except for the nuclear boiler which is being designed by the Brazilians.

Brasilia is however trying to convince Paris to increase technology transfers to help it integrate the reactor into the submarine and sell it equipment linked to nuclear propulsion.

France has been reticent to transfer such technology due to the challenges of nuclear proliferation.

“If Brazil wants to have access to knowledge of nuclear technology, it is not to wage war. We want this knowledge to assure all countries that want peace that Brazil will be at their side,” said Lula.

Macron told Brazil “France will be at your side” during the development of the nuclear-powered submarines, without announcing specific assistance.

“I want us to open the chapter for new submarines… that we look nuclear propulsion in the face while being perfectly respectful of all non-proliferation commitments,” he said.

Later on Wednesday, Macron arrived in the economic capital Sao Paulo to promote his country to Brazilian investors.

France is the third largest investor in Brazil, with more than 40 billion euros in direct investments in the country.

“Brazil is not up to par in terms of investment in France when you see the size and expertise of Brazilian conglomerates,” said the Elysee presidential palace.

On Thursday Lula will welcome Macron to the Planalto presidential palace in the capital Brasilia.

Saudi Aramco CEO calls energy transition strategy a failure


By AFP
March 27, 2024

Saudi Aramco President & CEO Amin Nasser speaks during the CERAWeek oil summit in Houston, Texas - Copyright AFP Mark Felix

Pointing to the still paltry share of renewable energy in global supply, the head of Saudi Aramco described the current energy transition strategy as a misguided failure on Monday.

“In the real world, the current transition strategy is visibly failing on most fronts,” Saudi Aramco Chief Executive Amin Nasser said at the CERAWeek conference in Houston.

Fossil fuels accounted for 82 percent of global consumption last year, according to a report from consultancy KPMG cited by Nasser, who noted that the International Energy Agency has said oil demand could hit a record this year.

“This is hardly the future picture some have been painting,” Nasser said.

“All this strengthens the view that peak oil and gas is unlikely for some time to come, let alone 2030,” added Nasser, alluding to a medium-term target that has been seen as a potential phaseout date for crude.

Joining Nasser in speaking skeptically of an imminent energy revolution was ExxonMobil Chief Executive Darren Woods, who said “we’re not on the path” to reaching net zero emissions by 2050.

“One of the challenges here is that while society wants to see emissions reduced, nobody wants to pay for it,” Woods said.

Nasser called for policies more in tune with the “real world.”

While alternative energy can reduce emissions, “when the world does focus on reducing emission from hydrocarbons, it achieves much better results,” Nasser said.

Last year’s COP28 conference included a call for a transition away from fossil fuels.

But Nasser said the world should “abandon the fantasy of phasing out oil and gas and instead invest in them adequately reflecting realistic demand assumptions.”

UK greenhouse gas emissions fell 5.4% in 2023: data 👏


By AFP
March 28, 2024

UK net emissions fell largely due to reduced gas use - Copyright TT News Agency/AFP/File Hanna Brunlof WINDELL

UK greenhouse gas emissions fell by 5.4 percent in 2023, largely due to a reduction in the amount of gas used in power stations, according to official data published on Thursday.

Net emissions of all greenhouse gases were estimated to have been 384.2 million tonnes of carbon dioxide equivalent in 2023, compared to 406.2 million tonnes in 2022, the government’s provisional figures showed.

Carbon dioxide emissions decreased by 6.6 percent annually to 302.8 million tonnes, part of a 52.7-percent decrease in total greenhouse gas emissions since 1990.

The UK government said the figures showed that the country was halfway to reaching net-zero emissions.

“This latest drop in our emissions follows the UK’s achievement in becoming the first major economy to halve its polluting carbon emissions,” said Energy Security Secretary Claire Coutinho.

The UK government’s target is to reach net zero by 2050.

Gas use for electricity generation fell 21.1 percent in 2023, “primarily due to higher electricity imports from France, as well as UK electricity demand continuing to decline”, said the report.

The reduced demand is mainly due to “greater efficiency resulting from improvements in technology and a decline in the relative importance of energy-intensive industries”, it added.

High energy prices are also likely to have been a factor, with less fuel being used to heat buildings and by industry, said the report.

Nuclear and renewables accounted for 56.7 percent of fuel used for electricity generation in 2023, up from 22.2 percent in 1990.

Domestic transport remained the largest source of UK emissions, accounting for 29.1 percent in 2023, almost all of which are from carbon dioxide, the main source being the use of petrol and diesel in road vehicles.

However, the sector’s emissions decreased by 1.4 percent in 2023, the first fall since 2020 when travel was heavily restricted due to the Covid-19 pandemic.

Germany in January reported a 9.8 percent fall in carbon dioxide emissions in 2023 due to the sharp decline in coal consumption and crisis in its industrial sector.

And France last week said its domestic greenhouse gas emissions had fallen by 4.8 percent over the same period.

UK’s biggest water supplier plunges into deeper financial crisis

P3;PENSIONS FUND PRIVATIZATION

By AFP
March 28, 2024


City of London: — © AFP

Debt-plagued Thames Water has failed to raise a major cash injection from shareholders, it revealed Thursday, blaming industry regulations that made its rescue plan “uninvestable”.

Britain’s biggest water supplier said in a statement that £500 million ($630-million) of new equity would “not be provided by Thames Water’s shareholders” this month.

The cash represented most of a £750-million funding lifeline agreed with investors in July to stay afloat.

The company on Thursday said it was in talks with industry regulator Ofwat over a plan that is “affordable for customers, deliverable and financeable for Thames Water, as well as investible for equity investors”.

Britain’s domestic Press Association news agency said Ofwat had refused to bow to Thames Water’s demands for concessions, which it said included a 40-percent jump in water bills that would worsen the country’s cost-of-living crisis.

Thames Water is Britain’s biggest water supplier – Copyright AFP SAUL LOEB

Other concessions sought reportedly include an easing in capital spending requirements and leniency over regulatory penalties.

– ‘Pursue all options’ –

“Safeguards are in place to ensure that services to customers are protected regardless of issues faced by shareholders of Thames Water,” said an Ofwat spokesperson.

“Today’s update… means the company must now pursue all options to seek further equity for the business to turn around the performance of the company for customers.”

Thames Water, which supplies more than 15 million homes and businesses in London and elsewhere in southern England, is saddled with debts of almost £15 billion that have placed it at risk of nationalisation.

“We prepare for a range of scenarios across our regulated industries — including water — as any responsible government would,” said a statement Thursday from the Conservative administration led by Prime Minister Rishi Sunak.

Steve Reed, environment spokesman for the main opposition Labour party, said “the government and regulators must do everything in their power to stabilise the company and ensure new investment comes through to fix the broken sewage system without taxpayers being left to foot the bill.”

Labour, widely tipped to win a UK general election this year according to several polls, “will strengthen the regulator’s powers and make financial stability a priority to prevent this situation from happening again” should it win power, Reed added in a statement.

Thames Water has faced fierce criticism over missing targets to reduce leaks and slash sewage discharges into rivers, despite major infrastructure investment.

Environmentalists have increasingly voiced outrage at the rise in pollution on the UK’s beaches and waterways, and have pointed the finger at privatised water companies.

Elsewhere on Thursday, researchers revealed that high levels of E.coli, a bacteria found in human waste, had been found in London’s River Thames.

The river will Saturday host the Oxford and Cambridge Boat Race — an annual event featuring competing rowing crews from England’s two oldest universities.

THAMES WATER SHAREHOLDERS INCLUDE OMERS; 

ONTARIO MUNICIPAL EMPLOYEES RETIREMENT SYSTEM

Is China leading the way with renewable energy targets?


By Dr. Tim Sandle
March 28, 2024


Innovations in solar energy. Image by Tim Sandle (Barbican, London).

Data relating to the use of renewable energy indicating some positive findings in terms of environmental protection. Power capacity additions reached a new benchmark of 473 gigawatts in 2023.

However, there is a less positive side to these data in that many countries are cut off from the benefits of energy transitions.

The information comes from the report Renewable Capacity Statistics 2024 which was released by the International Renewable Energy Agency (IRENA). IRENA provides advice and support to governments on renewable energy policy, capacity building, and technology transfer.

The report shows that renewables accounted for 86 percent of capacity additions; however, this growth is unevenly distributed across the world, indicating a trend far from the tripling renewable power target by 2030.

The 473 GW of renewables expansion was led by Asia with a 69 percent share (326 GW). This growth was largely driven by China, whose capacity increased by 63 percent, reaching 297.6 GW. For China, solar and wind’s increasing competitiveness against coal and gas power generation became the key driver of renewable power development.

Growth was also seen in the European Union, driven by an enhanced policy focus and heightened energy security concerns stemming from the Russian-Ukraine war. Other regions that saw significant expansion were the Middle East at 16.6 percent increase and Oceania at 9.4 percent increase. Overall, the G7 countries as a group increased by 7.6 percent, adding 69.4 GW last year.

This reflects the gap between the other regions, indicating that the vast majority of developing countries are falling behind.

For example, while Africa has seen some growth, this pales in comparison with other continents showing an increase of 4.6 percent, reaching a total capacity of 62 GW.

IRENA Director-General, Francesco La Camera says, in a statement sent to Digital Journal: “This extraordinary surge in renewable generation capacity shows that renewables are the only technology available to rapidly scale up the energy transition aligned with the goals of the Paris Agreement. Nevertheless, the data also serves as a telltale sign that progress is not moving fast enough to add the required 7.2 TW of renewable power within the next seven years, in accordance with IRENA’s World Energy Transitions Outlook 1.5°C Scenario.”

He adds: “Policy interventions and a global course-correction are urgently needed to effectively overcome structural barriers and create local value in emerging market and developing economies, many of which are still left behind in this progress. The patterns of concentration in both geography and technology threaten to intensify the decarbonisation divide and pose a significant risk to achieving the tripling target.”

China’s competitive car market at heart of global EV revolution

By AFP
March 28, 2024

Xiaomi is the latest Chinese firm to enter a highly competitive EV market 

- Copyright AFP STR

China is the biggest electric vehicle market in the world, a battle royale featuring both established carmakers as well as upstarts such as Xiaomi, which launched its first EV on Thursday.

EV makers from China have made inroads into markets from Europe to Southeast Asia and Tesla’s Elon Musk described them in January as “the most competitive car companies in the world”.

How big is the Chinese EV market?

China’s market for EVs dwarfs the rest of the world.

Of all new EVs sold globally in December last year, 69 percent were in China, according to the research firm Rystad Energy.

And of its forecast of 17.5 million EV sales this year, Rystad expects China to account for 11.5 million, or 65 percent.

The explosive rise of these EV firms has also fuelled China’s challenge to traditional auto powerhouses — it overtook Japan as the world’s biggest car exporter last year.

Which Chinese EV company is the biggest?

Founded as a battery company, BYD — known as “Biyadi” in Chinese or by the English slogan “Build Your Dreams” — has become China’s undisputed EV champion and Tesla’s biggest challenger.

It said last year it had become the first company to produce five million all-electric and hybrid vehicles, crowning itself the world’s top maker of “new energy” vehicles.

And, in the last quarter of 2023, it surpassed Tesla as the world’s leading EV seller.

BYD also enjoys cost advantages because of its strong capabilities across the EV supply chain, especially power storage.

Many foreign auto giants, including Tesla and BMW, rely on BYD for batteries.

Who are the other players?

There are a staggering 129 EV brands in China, but just 20 have managed to achieve a domestic market share of one percent or more, according to data compiled by Bloomberg.

The data showed BYD at almost 33 percent, with Tesla in second place with more than eight percent.

In third place with 5.8 percent of the market is Wuling, which makes China’s best-selling EV to date — a tiny two-door car named Hongguang Mini.

The rest of the pack includes Volvo Cars-parent Geely and electric SUV maker Li Auto, as well as the relatively newer XPeng and NIO.

And the offerings for Chinese customers are just as varied — from buses and entry-level and mid-range city cars to luxury sedans and roadsters.

China’s tech giants also want a slice of the multi-billion-dollar EV pie.

Huawei, under heavy US sanctions over alleged links to Chinese security agencies, has in recent years developed EVs with production partners, with heavy use of its technology.

Search giant Baidu is also working on an EV project, with a focus on autonomous driving.

And Xiaomi, the world’s third-biggest smartphone maker, entered the fray on Thursday.

Is this sustainable?

The glut of models from companies that have spent heavily for years has led to what has been widely described as an EV price war, with firms including BYD and Tesla offering significant discounts.

Analysts have said the process of consolidation in China’s EV market will continue as some companies go out of business, look to merge with others or seek buyers for their technology and assets.

Further, while heavy state support promoted the industry’s growth for years, purchase subsidies have been phased out.

However, industry experts point to China’s industrial and manufacturing prowess, as well as the country’s dominance of key EV supply chains including minerals as factors that will aid its auto sector.

How have traditional auto powers reacted?

The stunning rise of China’s EV industry has sparked worries in Brussels and Washington, especially over the subsidies Chinese auto firms receive from the government.

European Union chief Ursula von der Leyen announced in September an investigation into Chinese subsidies for electric cars, vowing to defend European industry from unfair competition.

And while Chinese EV makers have not made inroads into the United States, President Joe Biden’s administration has taken aim at auto parts from China.

Beijing filed a complaint this week at the World Trade Organization, arguing that new US auto policies discriminated against Chinese companies, state media reported.

Aside from car makers, China’s CATL dominates the global EV battery markets and supplies heavyweights including Tesla, Volkswagen and Toyota.

Musk warned of the challenge posed by Chinese automakers.

“Frankly, I think if there are not trade barriers established, they will pretty much demolish most other car companies in the world,” he said during a Tesla earnings call in January.

“They are extremely good.”

China’s Xiaomi to enter cut-throat EV market for the first time

SMARTPHONE ON WHEELS


By AFP

March 28, 2024

A Xiaomi SU7 electric car is displayed at a Xiaomi store in Beijing on March 26, 2024. - Copyright TT News Agency/AFP/File Hanna Brunlof WINDELL

Chinese consumer tech giant Xiaomi will launch its first-ever EV at a press conference in Beijing Thursday, injecting itself into a fiercely competitive sector in the world’s largest car market.

China’s EV sector has grown rapidly in recent years — propelled by purchasing subsidies that were discontinued in late 2022 — and dozens of domestic automakers are engaged in a stiff price war to get ahead in a crowded market.

Xiaomi is known around the world for affordable smartphones and sleek home appliances, and CEO Lei Jun says he is now putting his “reputation on the line” with the SU7 EV, and challenging Chinese car giant BYD and Elon Musk’s Tesla.

Sleek, sporty, and available in blue bay, olive green or elegant grey, the SU7 even includes “sound simulation”, Lei says, “to recreate the thrill of driving a sports car”.

Lei has not divulged the price, but has promised it will be “the best-looking, best-driving and smartest car” costing under 500,000 yuan ($69,200).

Analysts have said they expect it to come in at half that price.

“If my guess is correct, the 200,000 to 250,000 yuan range, that actually is the most competitive segment in the China EV space at the moment,” Johnson Wan, an analyst at Jefferies Financial Group Inc, told Bloomberg.

China is now the world’s largest producer of greenhouse gases, but officials plan for domestic car sales to be made up mainly of electric and hybrid models by 2035.

The launch of the SU7 comes just days after BYD, the world’s top seller of EVs, posted record annual profits as it pushes a rapid expansion overseas into countries in Southeast Asia, as well as further afield in Latin America and Europe.

In a note attached to the earnings report, BYD CEO Wang Chuanfu acknowledged the year had not been all smooth sailing.

“At the beginning of the year, the recovery of automobile consumption was relatively lagging behind, affected by the switch in promotional policies and market price fluctuations,” he wrote.

XPeng — one of BYD’s top competitors in China — last week reported a net loss of 10.4 billion yuan ($1.4 billion) in 2023.

Hyundai to invest more than $50 bn in South Korea in major EV push


By AFP
March 27, 2024

South Korea's Hyundai is one of the world's biggest automakers

 - Copyright AFP/File 

Yasuyoshi CHIBA

Hyundai on Wednesday revealed plans to invest more than $50 billion in South Korea by 2026, with a huge chunk dedicated to boosting the development and production of electric vehicles.

Along with its affiliate Kia, Hyundai is the world’s third-largest automaker by sales, but the South Korean giant lags in the EV sector behind Elon Musk’s Tesla and Chinese firm BYD.

Hyundai is keen to break into the global EV top three, saying last year that it was aiming to boost electric car production to more than 3.6 million units by 2030.

With the 68 trillion won ($50.5 billion) investment announced Wednesday, Hyundai Motor Group said it wants to “secure future growth engines in an uncertain business environment through constant change and innovation”.

“The automotive sector, including future mobility projects, accounts for… 63 percent of the Group’s total investment,” it added.

Under the plan, Hyundai will create 80,000 jobs in South Korea and build three new EV factories, with the aim of increasing annual EV production in the country to 1.51 million units by 2030.

The group’s EV strategy also includes investments in infrastructure, software, battery technology and autonomous driving.

A Greenpeace report in November said Hyundai’s growing sales of gas-guzzling sport utility vehicles had offset any climate gains from its transition to EVs.

It noted that Hyundai-Kia had posted SUV sales increases of more than 150 percent over the past decade.

SUVs emit approximately 12 percent more carbon dioxide than sedans, the environmental group said, urging Hyundai to reduce SUV sales.

When asked about the report, Hyundai said it was expanding its fleet of “fully electric SUV vehicles”, including Kia’s EV6 and EV9.

‘Operation Beethoven’: Dutch 2.5bn-euro charm offensive to keep ASML

By AFP
March 28, 2024

ASML is the "Messi" of Dutch companies, says the economy minister 

- Copyright AFP STR
Richard CARTER

The Dutch government on Thursday unveiled a plan worth 2.5 billion euros to retain global firms like chip giant ASML amid fears of a far-right clampdown on immigration.

The plan, dubbed “Operation Beethoven”, mainly aims to prevent ASML, which constructs machines to make semi-conductor chips, from moving abroad to attract talented workers.

The funding, equivalent to $2.7 billion, will come from the government but also the region around Eindhoven, in eastern Netherlands, where ASML is based.

“This is one of the most important companies in the Netherlands, a global player,” said Economy Minister Micky Adriaansens, according to local news agency ANP.

“ASML is our Messi and such a star player brings a whole team along with them,” she added.

ASML has raised concerns that reducing immigration including skilled workers to the Netherlands — as promised by far-right leader Geert Wilders, who won November elections — would force it to look elsewhere.

“If we cannot get the people here, we’ll get the people somewhere else. It’s very simple,” said chief executive Peter Wennink in January when ASML published its annual report.

“We are a company, we are a global company. We will go where we need to go to make sure the company can grow and service our customers,” he added.

“If the Netherlands shuts down, because we cannot get immigrants or foreign students, fine. You have to accept the consequences.”

The money announced Thursday will go towards investments in talent development, making it more attractive to live and work in the area, but also addressing concerns about electricity grid shortages.

“With these measures, the government assumes that ASML will make further investments in the Netherlands and retain the location of its statutory, tax and actual registered office in the Netherlands,” the government said.

“If investment plans change, these forecasts and the required commitment will be adjusted,” warned the Dutch government.

– ‘Significant source of talent’ –

Wilders has since indicated he will not seek to become prime minister but his PVV Freedom Party and others negotiating a coalition have all vowed to bring down immigration.

Another policy worrying multinationals based in The Netherlands is the phasing out of a lucrative tax break for talented expats.

Many politicians also want to crimp the number of foreigners at Dutch universities, which attract many talented students with high-quality English-language courses.

“That is a very significant source of talent that we need to drive innovation,” said Wennink.

ASML employs 42,000 worldwide, more than half of whom are based at the firm’s huge complex in Veldhoven, in the east of the country, with a significant proportion coming from abroad.

The “Brainport” region, which hosts ASML but also tech firms such as Philips, is considered to be the “Silicon Valley” of the Netherlands.

The Netherlands has traditionally been seen as a good place to do business, with a liberal economy and well-educated, English-speaking workforce.

But a report in February by the VNO-NCW business association suggested that climate was deteriorating.

Almost half (44 percent) of entrepreneurs surveyed group do not find the Netherlands an attractive country to do business in and almost 20 percent are considering leaving, the VNO-NCW said.

A year ago these percentages were 28 percent and 13 percent respectively.

The biggest concern voiced by entrepreneurs is a lack of political stability after the stunning election win of Wilders and his PVV party.

The PVV is currently negotiating a programme with three other parties but the process will take several more months and is not guaranteed to result in a stable government.

The Dutch business community has been shaken by recent departures of corporate behemoths such as consumer goods firm Unilever and energy giant Shell.

There are hopes that Unilever will list its ice cream division on the Amsterdam stock market, after spinning it off from the core business.

AI, skills and jobs: How will the future workforce change?


By Dr. Tim Sandle
March 27, 2024

Germany had a surprise jump in factory orders in February 

- Copyright AFP/File Daniel LEAL

Will it be the case, in the near future, that workers who lack AI skills will behind to those workers who are at ease with the technology? This certainly may be the case in certain sectors and job roles.

Most concerningly for the more vulnerable, there is a risk in leaving behind non-graduates, older workers, and individuals in lower socio-economic brackets in terms of acquiring the necessary AI job skills.

A recent article in the Wall Street Journal infers that some workers might be falling out of the job market altogether. For those impacted, the case may be similar to the situation when computers became commonplace at work or when the Internet was widely adopted. Hence, just like with the technological revolution, it is time for workers to adapt.

This message is reiterated by Sara Gutierrez, SHL’s chief science officer. Gutierrez anticipates this trend to continue as AI skills continue to spearhead innovation and drive efficiency, as she explains to Digital Journal.

According to Gutierrez: “This trend underscores the growing demand for professionals with expertise in AI, whose skills are proving resilient to market fluctuations. The rise of AI applications, catalysed by the release of ChatGPT and other large language models (LLMs) in late 2022, has sparked increased interest in the field.”

In terms of predictions, Gutierrez argues: “As more companies embrace and invest in AI capabilities for their products and services, we anticipate this investment to be mirrored in their hiring strategies, with a heightened emphasis on recruiting talent with AI skills to spearhead innovation and drive efficiency within their organizations.”

The outcome will be an organisational shift, as Gutierrez identifies: “This marks a notable shift in focus and resource allocation, within the tech sector, towards artificial intelligence.”

Looking at the Wall Street Journal findings, Gutierrez observes: “According to the survey, AI-related roles command higher compensation compared to non-AI positions highlighting the high demand for skilled AI professionals and the competitive nature of the job market in this field. ”

The key, self-question Gutierrez ponders, is with hiring for skills. Here Gutierrez recommends: “By focusing on skills, employers are better equipped to identify candidates with the specific competencies required for the job, fostering a more agile and responsive workforce.”

Interpreting this, Gutierrez determines: “This agility becomes extremely important in the face of expanding labour shortages and skill gaps within the global workforce. We’ve seen the private sector increasingly embrace skills-based hiring and there is a growing momentum that suggests more organizations will follow suit.”