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BERLIN — Germany's competition authority said on Tuesday it had opened an inquiry into online retail giant Amazon over potential "anti-competitive practices", using a new law giving regulators more power to rein in big tech companies.

Federal Cartel Office head Andreas Mundt said his office is examining whether Amazon has "an almost unchallengeable position of economic power" and whether it "operates across various markets".

If so, it could be deemed of "paramount significance", said Mundt, adding that the regulator could "take early action against and prohibit possible anti-competitive practices by Amazon".

"This could apply to Amazon with its online marketplaces and many other, above all digital offers," he added.

In a statement to AFP, an Amazon spokesperson said the company "cannot comment on ongoing proceedings and will fully cooperate with the FCO".

Under the amendment to Germany's competition law passed in January, the watchdog said it now has more power to "intervene earlier and more effectively" against big tech companies, rather than simply punishing them for abuses of their dominant market position.

The German reform coincided with new EU draft legislation unveiled in December aimed at curbing the power of the internet behemoths that could shake up the way Silicon Valley can operate in the 27-nation bloc.

The push to tighten legislation comes as big tech companies are facing increasing scrutiny around the globe, including in the United States, where Google and Facebook are facing antitrust suits. 

The Amazon probe is only the second time that Germany's Federal Cartel Office has made use of its new powers, after first employing them to widen the scope of an investigation into Facebook over its integration of virtual reality headsets.

The watchdog already has two traditional abuse control proceedings open against Amazon.

One involves the company's use of algorithms to influence the pricing of third-party sellers on Amazon Marketplace, while another is probing the extent to which Amazon and major producers such as Apple exclude third parties from selling brand products.

Legal battles 

Amazon says it employs 23,000 people in Germany and has invested 28 billion euros ($34.2 billion) in the country since 2010.

"We continue to focus on innovating for both our customers and the businesses in Germany that sell in our store," a company spokesperson noted.

Yet amid fears that its monopoly of online retail is strangling smaller businesses and pushing bricks-and-mortar stores to extinction, the company has faced a raft of legal challenges in recent years.

In February, a German court ruled that Amazon must list the country or place of origin of fruit and vegetables it sells online, in a landmark victory for consumer rights groups.

Yet, the retail giant has also scored crucial legal victories of its own, most notably in a battle with the EU over tax. 

Last week, an EU court annulled an order from the bloc's powerful antitrust authority that Luxembourg recoup 250 million euros ($295 million) in back taxes.

Germany and France have also joined calls from the United States to impose a global minimum corporate tax of 21 per cent, a move which targets huge multinationals like Amazon and Google.

Critics have repeatedly warned that many of the world's biggest companies use tax havens or used loopholes little to no tax, far less than some individuals. 

"People are fed up with big companies for not paying their fair share of taxes," French Finance Minister Bruno Le Maire told Die Zeit weekly in April.

LONDON — Fears about inflation and rising infections in several countries dimmed the mood on global markets on Monday and drove the dollar down, although there was good news on trade as Brussels and Washington called a truce on metals tariffs.

The Dow Jones Industrial Average was close to flat and the tech-heavy Nasdaq fell 0.76 per cent at open, while European markets mostly fell in afternoon trading.

"US stocks are edging lower following mixed Chinese economic data, concerns that Taiwan and Singapore success in fighting COVID is in jeopardy, and after the Empire State manufacturing survey solidified the inflationary theme that is running wild on Wall Street," Oanda analyst Edward Moya commented.

Chinese retail sales fell short of expectations, cooling hopes that consumption there would help power a global post-coronavirus recovery, while mounting price pressures in the US are raising fears the Federal Reserve (Fed) could call time on its easy-money policy.

The Fed has said it will ride out volatility in inflation data caused by comparisons with the early months of the pandemic last year.

But National Australia Bank's Rodrigo Catril warned of "rising concerns that inflation is becoming unanchored, with a decline in consumer sentiment a reflection of the negative impact inflation is having on disposable income".

Focus this week is on the release of minutes from the Fed's latest policy meeting at the end of last month, which will be pored over for an idea about members' views on inflation in light of surging commodity prices, supply bottlenecks and economic reopenings.

In trade, the US and EU called a truce on Trump-era tariff battles over steel and aluminium, announcing "discussions to address global steel and aluminium excess capacity" that will see Brussels temporarily suspend a plan to increase tariffs on high-profile American goods.

Musk hits bitcoin 

Also on the plus side, "optimism of robust economic and earnings growth this year persists as COVID-19 restrictions ease amid ramped-up vaccine rollouts on both sides of the pond", Charles Schwab analysts wrote.

In company news, AT&T said it plans to merge its WarnerMedia division with Discovery, creating a new standalone media giant to compete with rivals like Netflix and Disney+.

Meanwhile, trading in Hong Kong's largest pro-democracy media group was suspended on Monday, days after authorities froze the assets of its jailed owner Jimmy Lai under a new national security law.

Next Digital Limited — which publishes the Apple Daily newspaper — said it would halt trading "pending the release of an announcement" about Lai's frozen assets, in a statement to the city's stock exchange.

Elsewhere, bitcoin fell to $42,185 briefly, its lowest since February, after Elon Musk on Sunday appeared to suggest his Tesla carmaker may sell — or already had sold — its holdings in the cryptocurrency.

The unit later pared the losses to sit at $44,811.

Tesla had already hammered the digital currency last week when it said it will halt bitcoin transactions because of environmental concerns.

TOKYO — Investment giant Softbank Group on Wednesday reported the best ever annual net profit for a Japanese company, reaping the rewards of tech share rallies to recover from last year's record loss.

The telecoms firm turned investment behemoth has poured money into some of Silicon Valley's biggest names and hottest new ventures from AI to biotech through its $100 billion Vision Fund.

People moving their lives online during pandemic lockdowns boosted the tech sector and helped the firm score a net profit of 4.99 trillion yen ($45.8 billion) for the year to March, SoftBank said.

The yearly figure tops Japan's previous record held by Toyota and places SoftBank among the world's most profitable companies.

But the firm warned that virus uncertainties meant there was "no guarantee that the current positive impact will be sustained", while analysts said a recent rout in tech shares could spell trouble for the firm.

In 2019-20, SoftBank reported a net loss of 961.6 billion yen — its worst ever — as the start of the pandemic compounded woes caused by its investment in troubled office-sharing start-up WeWork.

But it quickly returned to profit as the impact of COVID-19 lockdowns worked largely in its favour.

As people flocked to shop online, South Korean e-commerce giant Coupang, backed by SoftBank, raised more than $4 billion in its initial public offering (IPO) in March.

The value of the Vision Fund's stake in US food delivery app DoorDash also rose massively following its December IPO.

SoftBank founder Masayoshi Son took a typically defensive tone over the huge annual profit, saying it did not mean investors were "throwing their arms up in the air and giving all the praise".

"We must continue to make profit consistently to prove that all this is not out of luck... in the future, the stock market will go up and down," he said.

Son admitted he harboured "regrets" over several past decisions.

"There were investment failures. There was WeWork. There was Greensill. There was Katerra. There were many investing mistakes," he said.

"But what I regret more is that there were wonderful companies and I missed them. If I were playing baseball, it was like missed strikeouts."

Soaring tech shares on Wall Street led to consolidated gains of 7.53 trillion yen on its investments, particularly Vision Fund shares, Softbank said.

Masahiko Ishino, an analyst at Tokai Tokyo Research Institute, said the conglomerate should make hay while the sun shines.

"I don't know if 'it's time to harvest' is the correct phrase — but it's true that now is a good time to see results after the company's investments three or four years ago," he said ahead of the earnings report.

"A big factor behind [SoftBank's strong results] is the soaring US and global markets. It's a powerful driver, as many of the companies SoftBank has invested in are listed in the United States," he explained.

Kirk Boodry, an analyst at Redex Holdings, said a rout in tech shares seen in recent days could threaten SoftBank's plans to list more portfolio companies.

"For Softbank Group, tech weakness hits on multiple levels," he said, noting that Vision Fund public investments were down nearly $3 billion in the past two days.

SoftBank has invested heavily in ride-hailing platforms worldwide in recent years, from California-based Uber to Didi Chuxing in China, Singapore's Grab and India's Ola.

In January, SoftBank announced the sale of $2 billion worth of stocks in Uber following a surge in the US ride-hailing giant's value, though it still remains the firm's main shareholder.

Last month the Japanese group said it will buy a 40 per cent stake in Norwegian robotics company AutoStore, which develops warehouse automation technology, in a deal worth $2.8 billion.

By Ali Bekhtaoui
Agence France-Presse

NEW YORK — Cryptocurrency fans have counted Tesla boss Elon Musk as among their champions, but this week he rocked their world by questioning the future of the digital assets and singlling out carbon emissions from bitcoin mining for particular criticism.

"Energy usage trend over past few months is insane," Musk tweeted on Thursday, sharing a chart from the Cambridge Bitcoin Electricity Consumption Index (CBECI), his latest missive in a salvo that's caused bitcoin's price to drop.

Obtaining Bitcoin is an energy intensive endeavor, and the chart showed the evolution of its power usage, rising constantly from 2016 and accelerating sharply in 2020 on an annualized basis to hit its current level of 149 terawatt-hours (TWh), an all-time high.

That's compared to Google's entire energy usage of 12.2TWh, and the approximately 200TWh used by all data centres in the world except those that mine Bitcoin, according to George Kamiya, an analyst at the International Energy Agency (IEA).

"If Bitcoin was a country, it would use around the same amount of electricity a year to mine as Switzerland does in total," Deutsche Bank analysts said in a note.

Indeed, the IEA predicts the situation could worsen: If miners used the most energy intensive equipment, their consumption could rise to 500TWh.

Citing its energy consumption particularly by miners who use coal, Musk on Wednesday said Tesla would no longer accept Bitcoin as a means of payment for its electric cars.

The announcement sent the cyrptocurrency's value down 15 per cent to a two-and-a-half month low, a reversal from late March, when Tesla announced it would accept the digital currency as payment after announcing a $1.5 billion investment in bitcoin.

Big reward 

The promise of a juicy reward has fueled the rise in giant data centres dedicated to bitcoin, which reached a $1 trillion market capitalisation earlier this year, before falling back.

The cryptocurrency is earned by participants in the network called "miners", who solve deliberately complicated equations using brute force processing power under the so-called "proof of work" protocol.

"Proof of work" was one of the founding principles of the best-known cryptocurrency, created in 2008 by an anonymous person or group that wanted a decentralised digital currency.

The system is designed so that around every 10 minutes, the network awards some Bitcoin to those who have successfully cracked the puzzle. 

But as the price of bitcoin has risen, interest in obtaining it has followed, along with electricity consumption.

Last month, scientific journal Nature published a study saying that emissions from mining in China, which powers nearly 80 per cent of the global cryptocurrency trade, could compromise the country's climate goals.

That country relies on a particularly polluting type of coal, lignite, to power some of its mining.

Bloomberg predicts that it will take until 2060 before China can meet its cryptocurrency industry's needs through renewable energy.

'Wake-up call' 

One way to reduce energy consumption would be to move away from the processor-intensive "proof of work" model, similar to changes being considered for the Ethereum cryptocurrency.

But it is hard to imagine Bitcoin making such a change, which could make its network less secure and de-centralised.

"Tesla's move might serve as a wake-up call to businesses and consumers using Bitcoin, who hadn't hitherto considered its carbon footprint," said Laith Khalaf, a financial analyst at AJ Bell.

"This highlights that the long-term adoption of cryptocurrencies by businesses, consumers and investors is still highly uncertain."

BEIRUT — Lebanon's central bank on Sunday announced a "conditional" plan that would allow depositors, hit by strangling financial restrictions, to access part of their foreign currency savings stuck in Lebanese banks.

Lebanon is in the grips of its worst economic crisis since the 1975-1990 civil war, and more than half of the population is now in poverty.

The Lebanese pound, officially pegged to the dollar at 1,507 since 1997, has lost more than 85 per cent of its value against the greenback on the black market.

Since Autumn 2019, banks have largely prevented ordinary depositors from accessing their dollar savings or transferring them abroad, forcing them to resort to the black market to obtain foreign currency.

Holders of dollar accounts have only been able to access their money by exchanging it into the local currency at a rate of 3,900 to the greenback.

The dollar is currently trading for more than 12,500 pounds on the black market.

The central bank said on Sunday it was negotiating "a mechanism [with Lebanese lenders]under which the banks would begin to gradually give [clients] access to their deposits... in all currencies".

The institution is mulling a plan that would involve banks "paying [savers] sums of up to $25,000 in US dollars or any [other] foreign currency along with its equivalent in Lebanese pounds", the statement added.

It did not specify the exchange rate for amounts converted to the local currency.

The central bank said the plan would "begin from June 30" and be spread out over an unspecified period of time, but would be applied "on condition of obtaining legal cover".

A central bank source told AFP that this meant "the adoption by parliament of a law on capital controls".

Draft legislation on capital controls has long remained a dead letter.

Lebanon's government stepped down after a massive blast at Beirut's port in August last year, but deeply divided politicians have been unable to form a new Cabinet.

Two associations said this week they had filed a legal complaint against central bank governor Riad Salameh, whom they accuse of fraudulently amassing a large fortune in Europe.

FRANKFURT — German carmaker Volkswagen (VW) reported a jump in first quarter profits on Thursday but warned that a global shortage of semiconductors that has hurt production would have a "more significant impact" in the coming months.

The auto giant reported net profits of 3.4 billion euros ($4 billion), up from 517 million euros over the January-March period in 2020 when the first wave of the pandemic closed showrooms and factories.

Revenues for the 12-brand group, which includes the Audi, Porsche and Skoda marques, climbed 13 per cent to 62.4 billion euros, it said in a statement.

The hike was driven by a rebound in car sales especially in China, the world's largest auto market, and robust global demand for high-profit luxury models, VW said.

The automaker also highlighted the growing popularity of more environmentally friendly vehicles, with sales of its electric and hybrid cars more than doubling to 133,000 units.

Overall, the group delivered 2.4 million vehicles in the first quarter of the year.

"We started the year with great momentum," said CEO Herbert Diess.

"Our e-offensive continues to gain momentum and we are making good progress with the transformation. There is still much more we can achieve in the remainder of the year."

Chief Finance Officer Arno Antlitz said VW had "managed the effects of COVID-19 and the semiconductor shortages responsibly" over the first quarter.

Like other carmakers, VW has been grappling with a supply crunch of semiconductors as the pandemic boosts demand for crucial microchips also needed for consumer electronics.

The chip shortage has forced VW to trim auto production at some plants and put thousands of workers on shorter hours, delaying car deliveries.

"The shortage of semiconductors throughout the industry is expected to have a more significant impact in the second quarter than before," said Antlitz. 

"Nevertheless, we are confident regarding business development in the full year," he added.

The group lifted its full-year outlook, saying it now expected an operating return on sales of between 5.5 and 7 per cent, compared with an earlier target of 5-6.5 per cent. 

VW had already said in February that it expected group revenue in 2021 to be "significantly higher" than last year, while car deliveries would also be "significantly up" on 2020.

The VW group sold more than 9.2 million vehicles last year. 

Japanese rival Toyota sold 9.5 million vehicles in 2020, taking VW's crown as the world's top-selling carmaker for the first time since 2015.

LONDON — Copper and iron ore prices hit record highs on Friday as demand for the key commodities surges on the back of a powerful recovery in the global economy.

At the same time, stock markets and the dollar traded mixed ahead of a keenly awaited US jobs report.

With major economies led by the United States and China reopening after last year's shutdowns, industries are ramping up production, pushing the cost of materials ever higher as traders also worry about a lack of supply caused by the pandemic.

Copper, a major indicator of the state of the global economy owing to its use in a multitude of products, broke to an all-time high above $10,300 per tonne on Friday, and with the global recovery expected to continue for some time, analysts say the price can continue north.

"It's hard to foresee copper prices turning around amid the current bullish atmosphere," Ji Xianfei, at Guotai Junan Futures Co., said.

Commerzbank AG analyst Daniel Briesemann said "long-term prospects for metals prices... point to higher prices".

He added: "The decarbonisation trends in many countries — which include switching to electric vehicles and expanding wind and solar power — are likely to generate additional demand for metals."

Iron ore also broke to new levels above $200 as commodities prices across the board advance, with lumber, tin, bacon and sugar all sharply higher.

"The global economic recovery is lifting steel demand with China's steelmakers keeping elevated levels of output, despite production curbs aimed at reducing carbon emissions and reining in supply," said National Australia Bank's Rodrigo Catril.

However, that has fanned fears about a spike in inflation around the world that many warn could force central banks to wind back their ultra-loose monetary policies that have helped fire a global markets rally for more than a year.

Top bankers led by the Federal Reserve (Fed) have repeatedly pledged to maintain their accommodative measures for the foreseeable future, though many believe their hand could be forced by a period of excessively high inflation. 

US jobs in focus 

Eyes are now on the release of US jobs figures later in the day, which will be the latest indicator of the state of the world's top economy.

They come a day after a forecast-beating reading on unemployment benefits that showed claims fell to their lowest since the coronavirus struck last year, and two days on from news that 742,000 new jobs were created in the private sector in April.

"With jobless claims hitting a pandemic-era low, anticipation for the full jobs picture... mounts," said Mike Loewengart, of E*Trade Financial.

The reading "is another proof point that we're one step closer to full economic recovery. As we see some serious momentum building on the jobs front, all eyes will be on how this plays into action taken by the Fed".

WASHINGTON — The International Monetary Fund (IMF) stands "ready" to offer Tunisia an aid package to deal with the current financial crisis, a fund official said on Thursday.

However, there is "no timeline" for finalising an agreement, spokesman for the IMF Gerry Rice told reporters.

The Washington-based crisis lender's staff met with Tunisian officials in the past few days, and the ongoing technical discussions are focused on understanding "their plans for that economic reform programme", he said.

Rice did not provide details on the size of the loan programme under discussion, but said, "we stand ready to support Tunisia and the Tunisian people to cope with the impact of the crisis, and move forward to an inclusive job-rich recovery and restore sustainable finances."

Tunisia's economy has lurched from crisis to crisis since the country's 2011 revolution, most recently due to the coronavirus pandemic and lockdown measures.

It is the fourth time in a decade the heavily indebted country has turned to the IMF for help, and Tunis is reportedly seeking a three-year loan deal. 

According to Tunisian documents obtained by AFP, one of the key features of the government reform plan is to replace subsidies for staple goods with direct aid to families by 2024. 

Another potentially explosive element is a proposal to slash the public sector workforce, which has swelled due to hiring in the health sector aimed at fighting the pandemic. 

Tunis intends to limit public wages to around 15 per cent of gross domestic product (GDP) in 2022 compared to 17.4 per cent in 2020, the documents show.

The government also intends to restructure state-owned enterprises, most of which rack up heavy losses.

The small North African country’s foreign debt load has soared to 100 billion dinars (around 30 billion euros), equivalent to 100 per cent of gross domestic product, and Tunisia faces debt payments of 4.5 billion euros this year.

The IMF expects the country will see GDP growth of 3.8 per cent this year, after an unprecedented 8.9 per cent contraction in 2020.