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BERLIN — German shoppers are increasingly finding empty shelves where their favourite Kellogg's cereal, Mars chocolate bar or rice brand used to be, as supermarkets square off against major food companies over price hikes.

"Dear customers: We are sorry to inform you that we can't currently offer all the products of our supplier Mars GmbH," reads a note in a sparsely stocked aisle at an Edeka supermarket in central Berlin.

With German inflation running at a record 10 per cent, supermarket giants are pushing back against what they see as unreasonable price increases by some of the world's best-known brands.

Food multinationals argue that their manufacturing costs have risen on the back of soaring energy and transport costs, in part because of the war in Ukraine.

But retailers in Europe's top economy say they are protecting customers' purchasing power at a difficult time, and that price hikes of up to 30 per cent in some cases are overblown. 

"Many international brands are trying to take advantage of inflation to charge excessive prices in order to increase their profits," an Edeka spokesman told AFP, calling Mars's price demands "unjustified".

Edeka and its rival Rewe, two of Germany's biggest supermarket chains, have stopped getting delivery of around 300 products from the Mars company, known for its Twix and Snickers bars, Ben's Original rice packets and Whiskas cat food.

They have also used the supermarket showdown to push their cheaper, own-brand products as alternatives.

Coca-Cola court battle 

Mars for its part blames the "volatile context" and "inflationary pressure".

Thomas Roeb, a retail expert at the Bonn-Rhein-Sieg University of Applied Sciences, said the battle of the brands was not new, and that items get pulled every year in spats between supermarkets and food companies.

"But this time it has gone a little less unnoticed, because Edeka and Rewe are affected at the same time," Roeb told AFP.

At the Edeka in Berlin the absence of pet food, a sector where Mars dominates, is particularly glaring.

In a nearby Rewe, the rice aisle is half empty.

The cereal section is looking bare, too, after Rewe failed to reach a compromise with US company Kellogg's — which according to German media was asking almost 30 per cent more for its popular breakfast food.

Similar price wars are raging with other brands.

In some stores, tea and coffee products by Jacobs Douwe Egberts are missing from shelves. 

Discounters Aldi and Lidl aren't stocking Danone, the world's largest yoghurt maker.

Edeka and Coca-Cola are fighting out their row in court, with the supermarket appealing a recent ruling saying the drinks giant was within its rights to stop deliveries over the dispute.

'Tastes the same' 

"Food, drinks and even hygiene products are missing," said Leana Kring, 24, outside a supermarket on Berlin's Karl-Marx-Allee boulevard.

The supermarket woes add more strain for German consumers, who are already bracing for a grim winter amid high inflation and a deepening energy crisis following Russia's cutoff of gas supplies. 

The German economy, usually a driver of European growth, is forecast to tip into recession next year.

A Rewe spokesman told AFP that supermarkets don't want to see shoppers "unnecessarily penalised" during "these difficult times".

But the retailers have also seized the opportunity to promote their store-brand products, which have grown in popularity as Germans try to watch their pennies.

"Astronomical prices from Mars? Then buy Netto," read a recent tongue-in-cheek Instagram post from discounter Netto, owned by the Edeka group.

At a Rewe store at Berlin's Friedrichstrasse station, the supermarket's own "Ja" (Yes) cereals have already replaced the colourful rows of Kellogg's boxes.

Own-brand sales accounted for 34.6 per cent of revenues in German supermarkets in the first quarter of 2022, according to GfK pollsters, up 1.2 percentage points on a year earlier.

"It's cheaper, and it tastes the same," said Mirjam Branz, a 30-year-old Berlin resident, upon leaving Rewe.

PARIS — Thousands of people took to the streets across France on Tuesday and commuters faced delays as unions staged a nationwide strike for higher salaries, as they remain in deadlock with the government over walkouts at oil depots that have sparked fuel shortages.

"It's a shame it had to come to blockades for something to happen," said Nadine, a 45-year-old employee in the metalworking industry who was among more than 1,000 demonstrators in Strasbourg, northeast France.

"But today if we don't block anything, no one listens," she said.

Among a crowd of some 1,800 marching in the southern city of Montpellier, Magali Mallet, a medical secretary, said she was there because many workers were "living on a knife's edge".

A transport walkout did not cause major disruptions nationwide, despite making commuters travelling into the capital from its suburbs late on Tuesday morning.

The broader strike comes after workers at several oil refineries and depots operated by energy giant TotalEnergies voted to extend walkouts.

Their industrial action has seriously disrupted fuel distribution across the country, particularly in northern and central France and the Paris region.

Motorists have scrambled to fill tanks as the fuel strike, which has lasted for nearly three weeks, has had a knock-on effect across all sectors of the economy.

Prime Minister Elisabeth Borne said that less than a quarter of petrol stations nationwide were experiencing shortages, down from 30 percent previously.

President Emmanuel Macron's government used requisitioning powers to force some strikers back to open fuel depots, a move that infuriated unions but has so far been upheld in the courts.

But his government is also pushing bosses to acknowledge salary demands, with Interior Minister Gerald Darmanin saying Tuesday that there was "a salary problem" in France, and urging employers "to increase pay when possible".

Workers have also been striking in the nuclear power sector, potentially hampering efforts to restart reactors down for maintenance or safety work.

At the northern Gravelines nuclear plant, 32-year-old technician Henia Abidi said she was not usually one to protest.

"But now since it's about inflation and our salaries, I really feel concerned. I won't give up," she said, adding that everything from food to fuel had become expensive.

Power grid operator RTE warned Tuesday that "any extension of the social movement" at the nuclear power stations would have "serious consequences" on electricity provision this winter.

Macron said last week only 30 out of 56 nuclear reactors were online, while the country hoped to have 45 working by January.

But French state energy provider EDF said Saturday it was postponing plans to bring five of the halted reactors back on stream.

The leftist CGT and FO unions called the nationwide strike Tuesday for higher salaries, and against government requisitions of oil installations.

The action is the unions' biggest challenge to Macron since he won a new presidential term in May.

The Liberation newspaper published a front-page caricature of Macron swept off his feet and clinging on to the edge of a giant megaphone blasting the message of angry protesters.

Tense autumn? 

Unions in other industries and in the public sector had also announced action to protest against the twin impact of soaring energy prices and overall inflation on the cost of living.

Beyond transport workers, unions had hoped to bring out staff in sectors such as the food industry and healthcare.

The education ministry said less than six per cent of its workers had walked out, though that rate reached 23 per cent for vocational schools.

Their action will kick off what could be a tense autumn and winter as Macron also seeks to implement his flagship domestic policy of raising the French retirement age.

The economic squeeze partly caused by Russia's invasion of Ukraine, along with the failure of Macron's party to secure an overall majority in June legislative polls, only adds to the magnitude of the task.

A poll by the Elabe group found that one in three French people would be prepared to take part in a strike or protest in the coming weeks to demand pay increases as inflation soars.

LONDON — The pound jumped more than 1 per cent against the dollar Monday as Britain's fourth finance minister in as many months sensationally ripped up a tax-cutting budget that had spooked markets.

Chancellor of the Exchequer Jeremy Hunt tore up the fiscal policy unveiled by the new government of Prime Minister Liz Truss last month.

She is battling to stay in power after dramatically sacking Hunt's predecessor Kwasi Kwarteng on Friday.

Truss and Kwarteng had announced tax cuts, funded by debt — causing the pound to hit a record low against the dollar and UK government bond yields to soar.

'Government can't control markets' 

"No government can control markets but every government can give certainty about the sustainability of public finances," Hunt said in a televised address that demolished the maligned budget.

However, the pound rallied and yields on UK government bonds, or gilts, slid on Monday's fiscal policy U-turns.

"The markets are responding positively to the new chancellor's plans to reverse almost all of the tax cuts announced by his predecessor," noted Victoria Scholar, head of investment at Interactive Investor. 

"Jeremy Hunt's focus on reassuring the markets and reinstating confidence appears to have worked so far with gilt yields trading lower and sterling pushing higher."

The Bank of England on Friday ended its emergency purchasing on UK government bonds triggered by unravelling markets in the wake of Kwarteng's September budget aimed at boosting Britain's recession-threatened economy.

Monday's reversals also lifted London's benchmark FTSE 100 shares index.

Frankfurt and Paris stocks were also sharply higher in afternoon trading.

China disappointment 

All three main indices on Wall Street snapped higher at the open of trading, having finished finished sharply lower Friday. 

The Dow rose 1.6 per cent, the S&P 500 climbed 2 per cent and the tech-heavy Nasdaq jumped 2.5 per cent.

"The three pillars of support for the rebound effort — lower interest rates, a weaker dollar, and strength in the mega-cap stocks — need to remain intact," said market analyst Patrick O'Hare at Briefing.com. 

"They are currently, so the stock market has something to build on."

The markets have been grappling with the latest strong US inflation reading, which ramped up bets that the Federal Reserve will hike borrowing costs by 75 basis points twice more before the end of the year. 

That, in turn, has stoked concerns the world's top economy will flip into a recession.

Traders are keeping tabs on looming earnings reports, with expectations that higher rates and prices will have eaten into companies' bottom lines.

Elsewhere, Asian equities started the week in mixed fashion.

There was a little disappointment among investors after Chinese President Xi Jinping at the weekend reasserted his commitment to the zero-COVID strategy of lockdowns that has hammered the economy this year.

Beijing has also delayed the release of anticipated economic growth figures — which analysts had expected to be some of its weakest quarterly growth figures since 2020, as the economy is hobbled by COVID-19 restrictions and a real estate crisis.

Eyes are also on Tokyo as the yen sits around a three-decade low against the dollar owing to US rate hike expectations and the Bank of Japan's refusal to tighten monetary policy, citing a need to support the economy.

The yen is approaching 150 to the dollar for the first time since 1990, but while officials have said they are keeping tabs on developments, they have yet to intervene in markets for a second time, having done so last month.

WASHINGTON — The International Monetary Fund (IMF) and the Tunisian government have reached a tentative agreement to unblock a $1.9 billion loan as the North African country faces grave economic and political challenges.

Under the four-year accord, the Tunisian government — hit by growing public protests at home amid shortages of food and fuel — has committed to undertake a "comprehensive economic reform programme" as it gets access to the money, according to an IMF statement Saturday.

Those reforms would include steps to extend taxation to the informal economy, to provide greater public-sector transparency and to phase out "wasteful price subsidies" while expanding social safety nets.

The agreement in principle, reached between IMF staff and Tunisian authorities meeting this week in Washington, still requires the approval of the fund's board, which is scheduled to discuss the matter in December.

Earlier Saturday, thousands of people poured into the streets of Tunis to protest the policies of President Kais Saied, who seized power last year in what critics say was a coup, and whom many blame for the country's economic crisis.

Pressures both from the deteriorating global economic environment and from high commodity prices "are weighing heavily on the Tunisian economy, adding to underlying structural weaknesses amid challenging socioeconomic conditions", IMF staff members Chris Geiregat and Brett Rayner said in a statement.

They headed the IMF team that met this week with Tunisian officials in Washington.

The resulting agreement "will support the authorities' economic reform programme to restore Tunisia's external and fiscal stability, enhance social protection and promote higher, greener, and inclusive growth", the statement said, while predicting a near-term slowdown in growth.

The release of funds should provide relief to the heavily indebted country, which is no longer able to borrow on international markets.

Tunisia's budget deficit, up sharply, is set to exceed 9 per cent of GDP this year. 

Year-on-year inflation meantime hit 9.1 per cent in September, while food and fuel prices have soared even more — up 13 per cent from the same 2021 period.

PARIS — French refinery and fuel depot workers at five sites owned by oil giant TotalEnergies vowed to continue striking on Saturday, compounding concern over petrol supply ahead of wider protests early next week.

Four of France's seven refineries and one fuel depot were out of action, after strikers rejected a pay offer from the hydrocarbon industry leader.

Operations had resumed earlier in the week at two other refineries run by Esso-ExxonMobil, however, after workers struck a bargain with management.

The blockages have caused queues outside petrol stations, and worry across all sectors of the economy, from mobile healthcare workers to farmers.

President Emmanuel Macron's government forced some strikers back to work this week to open fuel depots, a move that infuriated unions but has been upheld by courts.

The hard-left CGT union, which launched the industrial action three weeks ago, said on Saturday that workers at three TotalEnergies sites had decided to extend their strike.

"The action has been extended at three sites," said Eric Sellini, the CGT coordinator at the company.

Employees at the two others, including France's largest refinery near the north-western city of Le Havre, had already decided to prolong their action.

Left-wing opponents of Macron have called for anti-inflation marches on Sunday.

The CGT has called a strike for Tuesday that could disrupt public transport nationwide.

The union risks stoking resentment in a country where three-fourths of workers rely on personal vehicles for their jobs, with public support for the strike at just 37 per cent in a BVA poll released Friday.

The CGT is pushing for a 10 per cent pay rise for staff at TotalEnergies, retroactive for all of 2022.

It says the French group can more than afford it, citing TotalEnergies' net profit of $5.7 billion in the April-June period as energy prices soared with the war in Ukraine, and its payout of billions of euros in dividends to shareholders.

It walked out of talks with the French group in the night of Thursday to Friday, even as other unions representing a majority of workers accepted a deal for a lesser pay hike.

TotalEnergies on Saturday urged its workers to resume work, "in view of the signing of a majority deal on salaries" with two other unions.

Esso-ExxonMobil has said it would take two to three weeks to relaunch production at its refineries.

TUNIS — Tunis residents are facing a disruption in fuel deliveries that has sparked long queues at petrol stations, the latest economic hiccup as Tunisia faces a crunch in its public finances.

Authorities insist that fuel deliveries are adequate and have blamed motorists in the capital for sparking shortages by flocking to fill up. 

"The amount of fuel on the market is enough for the next 10 days, and another delivery is due on Monday," Salouen Smiri of the petrol sector told Tunisian media.

For months, Tunisia has faced shortages of subsidised goods such as flour and cooking oil, which are imported by the state and distributed at lower-than-market prices.

Experts have blamed the situation on the country's poor public finances and low credit rating, meaning suppliers demand to be paid in cash rather than on credit.

The government insists that fuel deliveries are proceeding as normal.

"It's true that there have been problems of deliveries by boat... but the product is available," said energy minister Neila Nouira Gongi.

"Before, suppliers used to give us a month or two to settle our bills, but that's not the case any more. Now, they won't unload their cargo until they've been paid."

While petrol stations across the capital have seen long queues since the weekend, other areas of Tunisia have remained largely normal.

Cash-strapped Tunisia is in talks with the International Monetary Fund (IMF) for a bailout loan of around $2 billion.

A long-running economic crisis has become more acute in recent months with commodity shortages and inflation at around nine percent.

The state's financial difficulties, exacerbated by the war in Ukraine, are a challenge to the popularity of President Kais Saied, who in July last year seized far-reaching powers.

FRANKFURT — Germany will sink into recession next year and inflation will soar, the government forecast on Wednesday, as Europe's top economy battles skyrocketing energy prices following Russia's gas shutdown.

The official predictions were the latest warning that Germany's economy, which was just getting back on its feet after the pandemic, is set to shrink in 2023 due to the fallout of Moscow's invasion of Ukraine. 

Unveiling the government's latest forecasts of 0.4 per cent economic contraction and seven per cent inflation for 2023, Economy Minister Robert Habeck painted a dark picture of a "serious energy crisis". 

It "threatens to become an economic and social crisis", he warned — but insisted that Russian President Vladimir Putin will "fail in this attempt to destabilise the basic economic and political order". 

Putin "will also fail on the battlefield in Ukraine", he added. 

Moscow's move to cut off gas supplies to Europe amid tensions over Ukraine has triggered an energy crisis across the continent, with consumers and businesses facing high prices as winter approaches.

Germany has been particularly hard hit, as 55 per cent of its gas supplies came from Moscow prior to the Ukraine conflict.

The soaring energy costs are expected to send inflation to 8 per cent in 2022 and 7 per cent in 2023, the government forecast.

Nevertheless, Germany's economy is still set to register growth of 1.4 per cent in 2022, according to the government forecasts, after having enjoyed a post-pandemic rebound earlier in the year.

But it will then shrink in 2023, with the economy ministry saying the "central reason" for the downgrade from forecasts earlier this year was "the halt to Russian gas supplies".

High energy prices are acting as "a brake on industrial production — above all in energy-intensive sectors". The economy will return to growth with expansion of 2.3 per cent in 2024, according to the forecasts. 

Energy price cap 

The government recently unveiled a 200 billion-euro ($194 billion) fund to shield consumers and businesses from surging prices, which includes a cap on energy costs.

Without the cap, consumer prices would be much higher in 2023, the forecasts said.

Forecasts by leading economic institutes late last month showed inflation coming in at 8.4 per cent for the year as a whole in 2022 — and climbing further to 8.8 per cent in 2023.

Warnings are mounting that global growth will slow further next year due to myriad crises, with the IMF this week downgrading its 2023 global GDP growth forecast.

It forecast that Germany, along with Italy, will become the first advanced economies to contract in the wake of Russia's invasion of Ukraine.

Signs are rapidly multiplying of Germany's escalating economic crisis. 

Last week, official figures showed that industrial production — the pillar of the German economy — produced 0.8 per cent less in August compared with the previous month, with energy-intensive industries badly impacted. 

Inflation meanwhile hit a 70-year high of 10 per cent in September. 

The European Central Bank has started aggressively tightening monetary policy to bring inflation under control, lifting rates a historic 75 basis points last month, but some are worried the move adds to recession risks.

Berlin has been scrambling to find alternative energy sources, accelerating the construction of infrastructure to import gas from further afield, and is preparing to keep two nuclear plants running longer than initially anticipated.

Despite the crisis, Habeck sought to strike a positive note about efforts to find new partners to supply energy.

"We are making very good progress in loosening the grip of Russian energy imports," he said. 

WASHINGTON — Central banks should "act resolutely to bring inflation back to target" after figures hit multi-decade highs, the International Monetary Fund (IMF) said Tuesday, pointing to an unusually challenging financial stability environment.

The comments by the Washington-based crisis lender in its latest Global Financial Stability Report come as its annual meetings start this week, fully in-person for the first time since 2019.

The meetings open in a challenging period for the global economy, as surging prices and rising interest rates threaten to reverberate around the globe while countries emerge from the coronavirus pandemic.

But to keep inflation pressures from becoming "entrenched", central banks should act firmly to bring down the figures, the IMF's report said on Tuesday.

This echoes earlier comments from the fund's chief Kristalina Georgieva, who said last week that it is too soon to pull back as the risk of not doing enough is bigger than that of doing too much.

Supply chain problems were already prevalent as demand surged after the pandemic slowdown, fueling inflation worldwide, and the strains worsened after Russia's invasion of Ukraine which sent food and energy prices surging.

Clear communication about policymakers' commitments will be crucial to "preserve credibility and avoid unwarranted market volatility", the International Monetary Fund said on Tuesday.

But it acknowledged that both advanced and emerging economies are facing heightened problems.

Global markets are showing strains as investors become more risk-averse during heightened economic and policy uncertainty, said IMF financial counsellor Tobias Adrian in a blog post.

He added that financial asset prices have fallen with tightening monetary policy, while the economic outlook has worsened and recession fears have risen.

In particular, the "faltering property sector in many countries raises concerns about risks that could broaden and spill over into banks and the macroeconomy," he cautioned.

China, for example, saw its property sector downturn deepen as home sales slumped during the COVID-19 outbreak and worsened developers' liquidity woes.

And real estate developer failures could in turn hit the banking sector, including some small banks, the IMF report noted.

Meanwhile, emerging markets face risks ranging from high borrowing costs and inflation, along with volatile commodity markets, the fund said.

BEIRUT — Lebanon on Monday launched an online platform to facilitate employment for its nationals in Qatar as the Gulf state prepares to stage the World Cup.

The move, just weeks before the World Cup kicks off on November 20, is aimed at helping to tackle spiralling unemployment in Lebanon as it suffers its worst ever financial crisis.

"The platform for employment in Qatar in 2022 is tied to the World Cup as well as other long-term jobs," Labour Minister Mustafa Bayram told a news conference.

He said it was part of his ministry's efforts to "tackle the problem of unemployment" in Lebanon. 

Bayram said the launch of the jobs platform came after talks with his Qatari counterpart on the sidelines of an Arab Labour Conference in Cairo last month.

He said Qatar was in a "rush" to employ a "large number of Lebanese".

"The World Cup is a priority for them... and it is important for us to help them in this," he said.

Lebanon's official unemployment rate jumped almost three-fold to reach 29.6 per cent at the start of the year, according to a joint survey by the government and the United Nations.

The new portal will allow Lebanese job seekers to register their skills, giving Qatar's private sector a pool of potential candidates to employ.

The government in Beirut will play no role in the hiring process, Bayram said, but it will facilitate passport renewals for selected candidates.

This pledge comes amid a shortage of travel documents that has forced the authorities to delay the issuance and renewal of official papers for months.

After years of corrupt practices and financial mismanagement, Lebanon's economy collapsed in 2019, stripping the national currency of 95 per cent of its value and sending poverty rates soaring.