AFP

1.5 tonnes of elephant ivory seized in southeast DR Congo

Authorities in southeastern DR Congo have seized one and a half tonnes of elephant ivory, legal and environmental officials said, in one of the largest hauls in Africa in years.

Officers discovered the smuggled tusks aboard trucks in the city of Lubumbashi on Saturday, according to a legal official who declined to be named due involvement in an ongoing investigation into the affair. 

Police arrested five people but two fled after questioning, the official said. He added that the haul amounted to 1.5 tonnes.

Both the origin and intended final destination of the ivory remain unclear. 

Sabin Mande, a lawyer for a coalition of environmental groups, told AFP that he had seen 18 bags of seized ivory in the state prosecutor’s office in Lubumbashi on Wednesday. 

The contraband represents 80 to 100 slaughtered elephants, he said. 

The seizure marks one of the largest in Africa in years. In 2013, Kenyan officials made several seizures including one of four tonnes. Togolese authorities likewise seized four tonnes of ivory over the course of one week in 2014.

In 2019, Vietnamese officials discovered over nine tonnes of elephant ivory in a shipment carrying timber from the Republic of Congo, also known as Congo-Brazzaville, in the largest recent haul worldwide.  

China and Southeast Asia are major markets for African ivory, which is mainly used for purported cures in traditional medicine. 

Russia seeking to wrest seized nuclear plant from Ukraine

Russia has hinted it is seeking to cut off Ukraine from Europe’s largest nuclear plant unless Kyiv pays Moscow for electricity.

The Zaporizhzhia plant was captured by Russian troops following President Vladimir Putin’s special military operation in Ukraine launched on February 24.

“If the energy system of Ukraine is ready to receive and pay, then (the plant) will work for Ukraine. If not, then ( the plant) will work for Russia,” Russian Deputy Prime Minister Marat Khusnullin said during a trip to the region on Wednesday, Russian news agencies reported. 

His remarks came after Russian officials indicated that Moscow intends to remain in territories it controls in southern Ukraine, such as the Kherson region and large parts of Zaporizhzhia. 

“We have a lot of experience of working with nuclear power plants, we have companies in Russia that have this experience,” Khusnullin said.

He said there was “no doubt” the Zaporizhzhia plant will remain operational.

Ukraine’s nuclear agency Energoatom said Thursday that the plant continued to feed the national power grid. 

Russians “do not have the technical capacity to supply energy from the Zaporizhzhia nuclear power plant to Russia or Crimea,” Energoatom spokesman Leonid Oliynyk told AFP. 

“This requires cost and time…. And in a month or two we will have everything under Ukrainian control again,” he added. 

– ‘Future lies with Russia’ –

Oliynyk said Russia did not have the ability to cut off electricity supplies to Ukraine, as “Ukraine controls all the relevant equipment”.

In 2021, before the outbreak of conflict, the plant accounted for one fifth of Ukraine’s annual electricity production and almost half the electricity generated in the country’s nuclear power plants.

Russian soldiers in early March took control of the plant in the city of Enerhodar, separated by the Dnipro river from the regional capital Zaporizhzhia which is still under Kyiv’s control. 

Clashes erupted in the plant in the first days of the conflict, raising fears of a possible nuclear disaster in a country where a nuclear reactor exploded at the Chernobyl plant in 1986. 

Khusnullin further hinted that Russia was there to stay.

“I consider that the future of this region is to work within the friendly Russian family. That’s why I came here, to help with integration as much as possible,” he said.

Russian officials and Moscow-appointed authorities said last week that the Ukrainian region of Kherson — which provides a land bride to the annexed Crimean peninsula — will likely become part of Russia. 

While launching the Ukraine campaign, Putin had assured that Russia does not seek to occupy Ukrainian territories. 

North Korea 'ready for nuclear test' with Biden due in Seoul

North Korea is poised to conduct a nuclear test, Seoul said Thursday, as the United States warned it could come as President Joe Biden visits South Korea this week.

The visits to Seoul, followed by Tokyo, are being touted as proof that Washington is seeking to cement its years-long pivot to Asia, where rising Chinese commercial and military power is undercutting decades of US dominance.

However, Biden’s first trip as president to the region looks set to be overshadowed by an increasingly belligerent North Korea.

Despite a spiralling Covid outbreak, Pyongyang’s “preparations for a nuclear test have been completed and they are only looking for the right time”, South Korean lawmaker Ha Tae-keung said after being briefed by Seoul’s spy agency.

US intelligence says there is a “genuine possibility” that North Korea’s Kim Jong Un could stage this “provocation” after Biden arrives in Seoul late Friday, his administration said.

This could mean “further missile tests, long-range missile tests or a nuclear test, or frankly both” around the time of Biden’s trip, National Security Advisor Jake Sullivan said.

Satellite imagery indicates North Korea is preparing to conduct what would be its seventh nuclear test — which would cap a record-breaking blitz of launches this year, including intercontinental ballistic missiles.

“North Korea will want to attract global attention by conducting a nuclear test during President Biden’s visit,” Cheong Seong-chang of the Center for North Korea Studies at the Sejong Institute told AFP.

– Military adjustments –

Biden, who will visit some of the nearly 30,000 US troops stationed in South Korea, is ready to make “adjustments” to the US military posture in the region, and Seoul’s hawkish new President Yoon Suk-yeol is eager for stronger ties.

Both Biden and Yoon have said they’re open for talks with Pyongyang but they expect to see real progress on denuclearisation — which analysts say is anathema to Kim and will stall talks.

“Biden judges that the North Korean issue can’t be resolved through impromptu meetings between the leaders as Trump did,” said Woo Jung-yeop, a researcher at the Sejong Institute.

North Korea will be watching the outcome of the Yoon-Biden meeting Saturday very closely, said Yang Moo-jin, a professor at the University of North Korean Studies.

“Depending on the result, North Korea will decide on whether it will speed up or slow down its ICBM and nuclear tests,” Yang said.

Sullivan said the security situation regarding North Korea was being “closely” coordinated with South Korea and Japan and that he had also spoken about the issue with his Chinese counterpart on Wednesday.

It is likely that Kim is still debating what to do, in particular due to this US pressure on Beijing — Kim’s sole major ally — to help rein in Pyongyang’s nuclear and ICBM tests, the Sejong Institute’s Cheong said.

Kim is also well aware of the gridlock at the UN Security Council after Russia’s invasion of Ukraine — so it is “highly likely” a nuke or ICBM test will come during Biden’s Asia tour, Cheong added.

Moscow would likely block any attempt at the UN to impose further sanctions on Pyongyang over a weapons test.

– Strategic neglect? –

After Seoul, Biden heads to Japan on Sunday for talks with Tokyo’s top leaders, before joining a Quad summit — a grouping of Australia, India, Japan, and the United States.

Sullivan said Biden is bound for Asia with “the wind at our back” after successful US leadership in the Western response to President Vladimir Putin’s now almost three-month-long invasion of Ukraine.

The high military, diplomatic and economic cost imposed on Russia is seen in Washington as a cautionary tale for China, given its stated ambitions to gain control over democratic-ruled Taiwan, even if that means going to war.

But the fact he arrives in Asia under the shadow of a possible North Korean nuclear test is partly due to his “strategic neglect” of the region since he took office, said Park Won-gon, a professor at Ewha University.

Talks between Washington and Pyongyang have been stalled for years, after an extraordinary show of diplomacy between then US president Donald Trump and Kim — brokered by Yoon’s predecessor Moon Jae-in — ultimately ended in failure.

Trump held three headline-grabbing meetings with Kim and claimed that the two were “in love”, but analysts say little to no progress was made in dismantling the North’s nuclear programmes.

At a vast military parade in Pyongyang recently, Kim said he was strengthening his nuclear arsenal “at the fastest possible speed”.

“In terms of denuclearisation and US-North Korea ties, we have returned to a situation where it’s difficult to find any progress,” Park said.

“There is no way to really stop North Korea now.”

Climate fight rages in rich Australian suburbs

In a land struck by ferocious bushfires and floods, Australian voters frustrated by climate inaction are flocking to a band of right-leaning green-minded independents, threatening to flip a string of conservative strongholds from blue to “teal”.

More than 20 candidates — highly qualified, well financed and mostly women — are barnstorming some of Australia’s wealthiest suburbs ahead of Saturday’s election, aiming to snatch parliamentary seats held by ruling conservatives for generations.

Polls indicate these “teal” independents — somewhere between conservative blue and environmental green on the political spectrum — could not just win seats, but hold the balance of power in a hung parliament.

Among the districts up for grabs are those previously held by four conservative Liberal Party prime ministers and the district of current Treasurer Josh Frydenberg, who is seen as a possible future party leader and prime minister.

More than 17 million voters are registered for the May 21 polls, which will choose all 151 seats in the lower chamber and 40 of the 76 seats in the Senate.

The independents are sticking a dagger into the conservatives’ exposed flank on the climate and other major concerns such as corruption and the treatment of women in government.

Australia’s 2019-2020 “Black Summer” bushfires and subsequent east coast floods highlighted the deadly and catastrophic consequences of climate change.

But Morrison’s Liberal-National coalition backs coal mining and burning into the distant future, and has resisted calls to cut carbon emissions from 2005 levels faster than its current commitment of up to 28 percent by 2030. 

The government has also failed to deliver a promised federal anti-corruption watchdog.

Analysts say the climate is a national concern but is more likely to sway votes in leafy suburban seats where people feel no threat from a cut to mining jobs.

Some conservative voters feel they have been “left in the wilderness” by the Liberal Party’s drift to the right, said Zoe Daniel, a former ABC journalist turned independent who is now a front-runner in the polls in the wealthy Melbourne seat of Goldstein.

– ‘Powerful influences’ –

A YouGov poll published May 11 put Daniel slightly ahead of the incumbent Liberal Party member for Goldstein, Tim Wilson.

The “umbrella issue” for voters is integrity, Daniel told AFP, not just the need for a federal anti-corruption watchdog but also transparency in spending taxpayers’ money and political donations.

That spills over into other issues such as the climate, said Daniel, who supports a 60-percent cut in carbon emissions by 2030, far more than the government or opposition Labor Party.

“I think the penny has started to drop for people that there are powerful influences in the background and that’s why our climate policy looks the way it does,” she said.

It is no secret that the Liberal Party has close links to the mining industry, said Paul Williams, associate professor at Griffith University. “And the mining industry is Australia’s most powerful lobby group.”

Labor, which relies on support from unions including those representing mine workers, has proposed a 43-percent cut in carbon pollution by 2030.

Monique Ryan, another independent favouring climate action and clean politics, led treasurer Frydenberg in the Melbourne seat of Kooyong, the survey indicated.

Once a safe Liberal Party seat, Kooyong is also the former constituency of Australia’s longest-serving prime minister, the late Robert Menzies.

– Close fight –

Allegra Spender, another “teal” independent candidate in Wentworth — a rich beachside Sydney suburb that includes Bondi Beach — is also in a close fight, surveys indicate, with moderate Liberal Party member Dave Sharma.

Spender, like Ryan and Daniel, is among 22 independents who have secured campaign financing from Climate 200, a fund set up by activist-philanthropist Simon Holmes a Court.

In the case of a hung parliament, just a few independents could wield some influence on national policy.

Independent candidates have already helped to elevate issues such as the climate and integrity, said Daniel.

“Independents have changed the national conversation because they are able to raise hard issues that won’t necessarily be popular.”

Google's Russian subsidiary to file for bankruptcy

The Russian subsidiary of US tech giant Google said Thursday it will file for bankruptcy after authorities seized its bank account following a series of spats with Moscow.

Google has been under increasing pressure in Russia for several months and even more so after the start of President Vladimir Putin’s military campaign in Ukraine at the end of February. 

“Google Russia has published a notice of its intention to file for bankruptcy,” a spokesperson for the company told AFP.

“The Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,” the company said.  

It however said it will continue to provide free services “such as Search, YouTube, Gmail, Maps, Android and Play” to customers in Russia.

In late April, a Russian court fined Google 11 million rubles ($135,000 at the time) for ignoring the state regulator’s orders to remove contentious YouTube videos about the Kremlin’s military operation in Ukraine.

The tech giant also infuriated Russian officials by blocking the lower house of parliament’s official media channel and deleting the YouTube channels of many pro-Kremlin media. 

As part of efforts to control the information available to a domestic audience, Russian courts have already banned Facebook and Instagram, calling them “extremist” organisations, as well as Twitter.

Google's Russian subsidiary to file for bankruptcy

The Russian subsidiary of US tech giant Google said Thursday it will file for bankruptcy after authorities seized its bank account following a series of spats with Moscow.

Google has been under increasing pressure in Russia for several months and even more so after the start of President Vladimir Putin’s military campaign in Ukraine at the end of February. 

“Google Russia has published a notice of its intention to file for bankruptcy,” a spokesperson for the company told AFP.

“The Russian authorities’ seizure of Google Russia’s bank account has made it untenable for our Russia office to function, including employing and paying Russia-based employees, paying suppliers and vendors, and meeting other financial obligations,” the company said.  

It however said it will continue to provide free services “such as Search, YouTube, Gmail, Maps, Android and Play” to customers in Russia.

In late April, a Russian court fined Google 11 million rubles ($135,000 at the time) for ignoring the state regulator’s orders to remove contentious YouTube videos about the Kremlin’s military operation in Ukraine.

The tech giant also infuriated Russian officials by blocking the lower house of parliament’s official media channel and deleting the YouTube channels of many pro-Kremlin media. 

As part of efforts to control the information available to a domestic audience, Russian courts have already banned Facebook and Instagram, calling them “extremist” organisations, as well as Twitter.

Ukraine steelworks defenders surrender but Kyiv vows 'unbreakable' spirit

Russia said Thursday that 1,730 Ukrainian soldiers had surrendered this week at the Azovstal steel plant in Mariupol, showing some emerging on crutches after an all-out battle that has become emblematic of the nearly three-month-old war.

The number included 80 who were wounded and taken to a hospital in Russia-controlled territory in eastern Ukraine, the defence ministry in Moscow said.

The ministry released a video appearing to show the surrendered soldiers hobbling out of the sprawling plant after it was besieged for weeks. Russian troops patted them down and inspected their bags as they exited.

The International Committee of the Red Cross said it had registered “hundreds of Ukrainian prisoners of war” from the plant in Mariupol, a port city levelled by Russian shelling.

But while Mariupol has fallen, Ukraine’s President Volodymyr Zelensky said the wider invasion was an “absolute failure” as he marked “Vyshyvanka Day”, an annual celebration of Ukrainian folk traditions.

Wearing an embroidered shirt instead of his usual military khaki top, Zelensky said on the Telegram social media platform that his people remained “strong, unbreakable, brave and free”.

Zelensky’s defiance, and his army’s dogged resistance, have earned the West’s admiration and a steady flow of military support. G7 finance ministers were meeting in Germany to thrash out more cash support.

G7 partners have to “assure Ukraine’s solvency within the next days, few weeks”, German Finance Minister Christian Lindner told the newspaper Die Welt.

But German Chancellor Olaf Scholz said there could be “no shortcuts” to membership of the European Union for Ukraine. Ukraine’s Foreign Minister Dmytro Kuleba condemned the “second-class treatment” of his country.

– Famine warning –

Russia’s actions are already redrawing the security map of Europe. 

US President Joe Biden was to host the leaders of Finland and Sweden later Thursday to discuss their bids to join NATO, after the Nordic neighbours decided to abandon decades of military non-alignment.

“I warmly welcome and strongly support the historic applications from Finland and Sweden for membership in NATO,” Biden said, offering US support against any “aggression” while their bids are considered.

Beyond Europe, the invasion also threatens to bring famine, UN Secretary-General Antonio Guterres said.

“Malnutrition, mass hunger and famine” could follow “in a crisis that could last for years,” Guterres warned, urging Russia to release grain exports from occupied Ukraine.

Russia and Ukraine produce 30 percent of the global wheat supply, and the war has also sent food prices surging around the world.

– ‘Time to run’ –

Despite their last-ditch resistance in places such as Mariupol, and the successful defence of Kyiv, Ukrainian forces are retreating in the east.

The losses often come after weeks of battles over towns and small cities that are pulverised by the time the Russians surround them in a slow-moving wave.

“I tell everyone that there is no reason to worry when the banging is from outgoing fire,” Volodymyr Netymenko said as he packed up his sister’s belongings before evacuating her from the burning village of Sydorove in eastern Ukraine.

“But when it is incoming, it is time to run. And things have been flying at us pretty hard for the past two or three days.”

In the Russian region of Kursk, one person died and others were injured in an attack on a village on the border with Ukraine, the local governor said.

– War crimes trials –

Ukraine’s first trial for war crimes began in a cramped Kyiv courtroom on Wednesday.

Vadim Shishimarin, a shaven-headed Russian sergeant from Irkutsk in Siberia, pleaded guilty to a war crime and faces a life sentence.

He admitted to shooting dead an unarmed 62-year-old man in Ukraine’s Sumy region four days into the invasion.

Russia’s government has no information on Shishimarin, Kremlin spokesman Peskov said, adding that many such cases reported by Ukraine are “simply fake or staged”.

A second war crimes trial was due to open in Ukraine Thursday.

The International Criminal Court is deploying its largest-ever field team to Ukraine, with 42 investigators, forensic experts and support staff to gather evidence of alleged war crimes.

Ukrainian civilians are bearing the brunt of incessant Russia mortar fire raining down on the eastern city of Severodonetsk.

Nella Kashkina sat in the basement next to an oil lamp and prayed.

“I do not know how long we can last,” the 65-year-old former city worker said.

“We have no medicine left and a lot of sick people — sick women — need medicine. There is simply no medicine left at all.”

burs-jit/spm

Flood-ravaged Australians feel forgotten as election looms

For Karey Patterson, the lingering memory of the February floods that devastated Australia’s east coast was wondering how long he could hold his daughter’s head above water as the torrent consumed their home.

“It was like a disaster movie, but I was in it,” he told AFP, standing in the still-gutted shell of his house in the town of Lismore.

In the aftermath of the floods, the worst the city had ever seen, there was a flurry of news coverage, visits from the prime minister and opposition leader, and promises of help.

Three months on, the floodwater has mostly receded and with it public attention.

On the eve of Saturday’s election, the fact that more than 1,500 citizens in one of the world’s richest nations are still in emergency accommodation barely gets a mention in the campaign.

Many others have slipped through the statistics, sleeping on friends’ couches, staying in caravans, or camping in their flood-wrecked homes.

“I think we have been forgotten,” said Bec Barker, who has been living with her husband in a small caravan in the backyard of the home they spent more than a decade renovating.

“I don’t think people realise that we don’t have houses to come back to, we don’t have furniture, we don’t have anything.”

Battling her insurer and ineligible for grants, Barker cannot picture herself living again in the home she thought she would grow old in.

While many flood victims feel forgotten, some also worry climate change’s low billing on the campaign trail will guarantee more Australians are hit by increasingly extreme droughts, fires and floods.

Barker wants to see better government preparedness before new disasters strike — so neighbours are not left to rescue one another in the dead of night.

“This can happen to anyone, really. I don’t live in a high flood zone area,” she said.

“It happened to us.”

– A town abandoned –

By night, Lismore’s once-bustling centre is now nearly pitch black as thousands of homes and businesses stand empty.

Daylight reveals a city where recovery has stalled.

Condemned houses swept from their foundations by the floodwaters wait to be demolished. Trees are still littered with plastic, chairs and family photos.

Locals line up for basic necessities from charities such as the one run by “The Koori Mail”, Australia’s national Indigenous newspaper.

Much of the nearby university, Southern Cross, has been given over to the recovery effort — three schools have moved in, as have displaced businesses, doctors and the local police.

For months, many locals have been “in limbo”, Lismore resident Rahima Jackson said, waiting for the council to decide about new flood regulations or a land swap deal allowing people to move to higher ground — which could take years.

“The community here is definitely angry because every response has been too slow,” she said.

As the February flood drowned Jackson’s house, something sparked a fire and she watched on from a neighbour’s window as it burned in the middle of an inland sea.

She has been hoping to buy a caravan to live in, behind her ruined home with its charred roof crumpled like a piece of paper.

For the community, she said, the stress is starting to take a toll: “I know most people have panic attacks at the sound of rain.”

So far, the state government has paid out less than a fifth of the 38,037 applications for grant assistance it received from individuals and businesses.

Like many people affected by the floods, Ron Maher, 77, has found himself ineligible for any government grants — because his pension, not his farm, has been his primary source of income.

“I’m not bitter about it. Disappointed is a better word than bitter,” he said.

Maher, who lost a third of his cattle as floodwaters swept through his rural property north of Lismore, told AFP he was worried for the town’s future.

“I don’t know whether I’m talking out of school here, but I’m a bit afraid that north and south Lismore will turn into a bit of a shantytown because they can’t afford to build,” he said.

Insurance is another stumbling block.

By 2030, half a million homes across Australia will be uninsurable, too vulnerable to floods, bushfires, tides or high winds, according to the Climate Council.

Many Lismore residents could not afford flood insurance, even before the latest disaster.

– ‘Our community underwater’ –

Marine scientist Hanabeth Luke has decided to run for office to help put things right.

She survived the 2002 Bali bombings in Indonesia, and became known as “the Angel of Bali” after being photographed carrying a young man from the wreckage of the Sari Club.

She said the floods were an “echo” of that tragedy, which killed her first love.

She is running as an independent on a climate-focused platform.

“This is our home. This is the place that we love. This is our community underwater,” she said.

“We’ve got to look at best evidence. We’ve got to trust what the science is telling us. And that is that we must act now on climate.”

Despite the 14-metre (46-foot) surge, Karey Patterson, his eight-year-old daughter and two sons survived.

He eventually managed to smash a hole through the hardwood ceiling with a barbell before the water got to the roof.

A friend paddled a kayak through surging floodwaters for hours to deliver each of them to safety.

For now, Patterson sleeps on his friend’s sofa, unsure about what comes next. One thing he is sure of is that, for sanity’s sake, he cannot return. 

“I’m not coming back to live in this house.”

Asian, European markets drop after Wall St battering

Markets in Europe and Asia posted losses Thursday, after Wall Street suffered one of its worst batterings in two years.

Downcast earnings reports from retailers had exacerbated worries about consumer resilience and corporate profitability Wednesday, sparking a rough day’s trade.

Hong Kong slumped 2.5 percent, while Tokyo closed down by 1.89 percent.

Among the biggest losers in Hong Kong were Chinese tech giants after Tencent reported lacklustre profits, fuelling wider concerns for a grim earnings season as China’s economic outlook worsens.

Tencent plunged more than eight percent in early trading before paring losses slightly, a day after it posted its slowest revenue gain since going public in 2004.

Alibaba dropped more than six percent, while Baidu and Xiaomi were also down.

Elsewhere in the region, Australia posted its lowest jobless rate in 48 years, in a potential boost to Prime Minister Scott Morrison two days ahead of a tightly contested federal election.

The unemployment rate dipped to 3.9 percent, the official statistics body said, the lowest rate since 1974.

But stocks in Sydney were still down, as were those in Singapore, Seoul and Taipei.

Jakarta and Shanghai eked out small gains.

Europe’s main stock markets opened lower too. London’s benchmark FTSE 100 index fell 0.8 percent, while Frankfurt lost 1.5 percent and Paris shed 1.4 percent.

– Retailer woes –

“Sentiment… is highly negative as traders and investors are largely concerned about an economic downturn and soaring inflation,” said AvaTrade analyst Naeem Aslam.

Stephen Innes at SPI Asset Management called Wednesday’s losses “the most significant daily decline since June 2020”.

“The weakness came as Target’s quarterly earnings added fuel to the recession risk narrative,” he added.

Target, the North American-focused big-box retailer, plunged around 25 percent after earnings missed expectations despite higher sales.

The company pointed to the hit from higher operating costs in results that echoed those of bigger rival Walmart.

The retailers said profits were under pressure and some consumers were avoiding discretionary purchases as prices for food, gasoline and other household staples rise.

All three major US indices dove Wednesday, with the Dow sinking 3.6 percent and the Nasdaq plunging 4.7 percent.

“The big falls in shares of these retails… highlights the damage inflation is inflicting on the sector’s profit margins,” said Fawad Razaqzada at City Index.

“What’s more, consumers are getting squeezed as well and if they now start to cut back on spending then retailers could suffer even further.”

In some of his most hawkish remarks to date, Federal Reserve Chair Jerome Powell said Tuesday that the US central bank would raise interest rates until there is “clear and convincing” evidence that inflation is in retreat. 

“We’ve had investors for the most part who’ve lived through three or four decades of declining interest rates, rising multiples for equities and strong earnings for the most part,” Christopher Smart, chief global strategist at Barings LLC, told Bloomberg Television.

“Now you’re entering a very new phase where we’re not really quite sure where inflation is going to level off.”

— Bloomberg News contributed to this report —

– Key figures at around 0820 GMT –

Hong Kong – Hang Seng Index: DOWN 2.54 percent at 20,120.60 (close)

Shanghai – Composite: UP 0.36 percent at 3,096.96 (close)

Tokyo – Nikkei 225: DOWN 1.89 percent at 26,402.84 (close)

London – FTSE 100: DOWN 0.8 percent at 7,376.16

Brent North Sea crude: UP 0.58 percent at $109.74 per barrel

West Texas Intermediate: UP 0.05 percent at $109.65 per barrel

Euro/dollar: UP at $1.0485 from $1.0479

Pound/dollar: UP at $1.2382 from $1.2346

Euro/pound: DOWN at 84.68 pence from 84.88 pence

Dollar/yen: DOWN at 128.00 yen from 128.58

New York – Dow: DOWN 3.6 percent at 31,490.07 (close)

Brothers keep Swiss mountains in high spirits

Depopulation threatens the future of Switzerland’s picturesque mountain villages, but three brothers are trying to keep theirs alive by capturing its essence in a bottle.

In the one-road hamlet of Souboz, nearly 900 metres (2,950 feet) up in the Jura mountains, the nature-loving Gyger brothers distill whatever they forage, such as gentian roots and juniper, in a bid to sustain the local economy.

Switzerland is trying to stave off the slow-motion extinction of its remote communities as young people move to the cities for jobs and opportunities.

Thanks to a grant from the Swiss Mountain Aid foundation, the Gygers were able transform their grandfather’s old home into the Gagygnole distillery, turning professional a couple of years ago.

The name comes from eldest brother Gaetan’s nickname Gagy, and gnole — French slang for a drop of the hard stuff.

On the ground floor of an old farmhouse, the scent of coriander and juniper berries hangs in the air, while warmth emanates from the 2.5-metre-high copper still in which Gaetan distills gin over a wood fire.

“This production site has been in our lives since we were very young. We really have roots anchored in our village,” he told AFP.

An agronomist by training, Gaetan, now 30, had studied in Geneva.

“We didn’t want to set up in the city,” he said, despite the bigger potential client base.

– Mountains in Swiss DNA –

The brothers’ choice is a rare one in Switzerland.

The mountains cover 70 percent of the country, but three-quarters of the population lives on the plain between the Juras in the north and the Alps in the south and east.

Geneva, Lausanne, Bern and Zurich all lie in the area of relatively flat terrain between the two mountain ranges.

The mountain villages are emptying, their grocery stores are closing and, as in Souboz, the schools are shutting, too, as the population gradually shifts ever more towards the lower-lying towns and cities.

The population of Souboz has dropped from 135 in 2012 to 85 last year.

Faced with the slow-motion exodus, some villages are trying everything they can to reverse the tide, including financial incentives to attract newcomers, such as offering empty houses for a symbolic sum of one Swiss franc.

And Swiss Mountain Aid provides funding to hundreds of entrepreneurs, such as the Gyger brothers, to bring jobs and business to the hills.

The mountains are “part of our genes, our DNA”, but “if we want to keep the mountains alive, there must be people”, said the foundation’s chairman Willy Gehriger.

“We act like the spark,” he explained.

Established in 1943 to help lift mountain dwellers out of poverty, the privately-funded foundation mainly supported farmers initially — but broadened its scope around a dozen years ago.

Now it helps small businesses, installs Wi-Fi, pays for computer courses and funds the transformation of dilapidated listed buildings into tourist accommodation.

Gehriger said the agricultural sector alone was no longer enough to keep the mountains thriving.

– Message in a bottle –

Dressed in baseball caps and t-shirts and armed with an iPad, the Gygers are far from the stocky, rustic, grumpy stereotype of mountain men.

They are on a mission to repopulate Souboz and revive the economy in the local Juras.

“We’re aware of doing something good for Souboz. Our mountain regions have enormous potential. They’re really something that we Swiss should be proud of,” said middle brother Luca, 27.

Their gamble has paid off as the family business has a handful of employees and occasionally takes on local artisans and farmers to help bottle up the brothers’ original gin, whisky and vodka recipes.

Last year, they produced 18,000 bottles of spirits.

Gagygnole’s eaux de vie are sold in 200 shops around Switzerland and one of their concoctions was voted the best gin in the country last year — while the brothers’ gin fondue is also a hit.

The Gygers think it is still too early to consider exporting.

“We always refused because it was difficult in terms of logistics, but why not… as long as it goes with our philosophy,” said 26-year-old Tim.

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