AFP

Global stocks fell Monday as protests across China in opposition to the government’s hardline zero-Covid policy fueled uncertainty about the world’s number-two economy.

Hundreds of people took to the streets in China at the weekend, in a wave of demonstrations not seen since pro-democracy rallies in 1989 were crushed.

China-linked stocks took the brunt of selling in Asia, with Hong Kong’s Hang Seng Index closing down more than one percent and Shanghai off 0.8 percent. 

Paris, London and Frankfurt all ended in the red Monday while Wall Street also began a heavy week of economic data releases deeply in negative territory.

After last week’s advance, all three major US indices lost at least 1.5 percent.

“Sentiment has turned sour as unrest across China grows,” said SPI Asset Management’s Stephen Innes.

“Risk of the situation escalating from here and short-term volatility remains high.”

A deadly fire in the Xinjiang region Thursday served as the catalyst for the public anger in China, with many blaming virus lockdowns for hampering rescue efforts.

People have taken to the streets in Beijing, Shanghai, Guangzhou and Chengdu, with many calling for an end to lockdowns after an easing of some measures had fueled hopes of a lighter pandemic approach.

Some demonstrators were even demanding the resignation of President Xi Jinping, who recently secured an unprecedented third term as the country’s leader.

The tightened containment measures were introduced as China battled record-high Covid infections.

Beijing’s zero-Covid policy means the threat of more growth-choking lockdowns, City Index analyst Fawad Razaqzada said in a note.

“This is going to hold back the yuan and Chinese stocks, and potentially risk assets outside of China,” added Razaqzada.

The prospect of a hit to demand in the world’s biggest crude importer also hammered oil prices early in the day. But the commodity later rebounded following a rumor that oil exporters could trim production.

– Eyes on Fed boss –

The weakness “isn’t just about China. The reports out of China have also become a good excuse to take some money off the table following a big run by the market,” Briefing.com analyst Patrick O’Hare said in a note.

The selling has taken a bit out of recent gains across markets, sparked by hopes of a slowdown in the Federal Reserve’s interest rate hikes, with US inflation finally showing signs of softening.

However, some observers said the protests might provide long-term benefits as they could force President Xi to shift away from his strict, economically damaging measures sooner.

Investors are also looking ahead to the release of US jobs data at the end of the week, which could provide clues about the Fed’s next moves, while watching for speeches by central bank boss Jerome Powell and other key policymakers.

– Key figures around 2130 GMT –

New York – Dow: DOWN 1.5 percent at 33,849.46 (close)

New York – S&P 500: DOW 1.5 percent at  3,963.94 (close)

New York – Nasdaq: DOWN 1.6 percent at 11,049.50 (close)

London – FTSE 100: DOWN 0.2 percent at 7,474.02 (close)

Frankfurt – DAX: DOWN 1.1 percent at 14,383.36 (close)

Paris – CAC 40: DOWN 0.7 percent at 6,665.20 (close)

EURO STOXX 50: DOWN 0.7 percent at 3,935.51 (close)

Tokyo – Nikkei 225: DOWN 0.4 percent at 28,162.83 (close)

Hong Kong – Hang Seng Index: DOWN 1.6 percent at 17,297.94 (close)

Shanghai – Composite: DOWN 0.8 percent at 3,078.55 (close)

Euro/dollar: DOWN at $1.0347 from $1.0395 on Friday

Dollar/yen: DOWN at 138.87 yen from 139.19 yen

Pound/dollar: DOWN at $1.1952 from $1.2092

Euro/pound: UP at 86.50 pence from 85.96 pence

West Texas Intermediate: UP 1.3 percent at $77.24 per barrel

Brent North Sea crude: DOWN 0.5 percent at $83.19 per barrel

A British start-up founded by two ex-students from France and Spain, crafting biodegradable packaging from marine plants, is aiming to seal royal approval this week when Prince William unveils his latest Earthshot prizes.

Notpla — whose mantra is “we make packaging disappear” — is competing with 14 other firms for five prestigious awards, to be dished out by the prince and a star-studded cast at a ceremony in US city Boston on Friday.

In its second year, the initiative to reward innovative efforts to combat climate change will then be broadcast on UK and US television on Sunday and Monday, respectively, as well as online.

The five winners will each receive a £1 million ($1.2 million) grant. 

The co-creator of Notpla, which rather than using environmentally damaging plastics makes various naturally degrading — and even edible — packaging from seaweed and other marine plants, says they have already felt the competition’s benefits.

“Just being there is a massive boost to our visibility,” French co-founder Pierre Paslier, 35, told AFP.

“So that’s already a huge asset to be part of the finalists and I think that if we win, it’s just going to be that on a much larger scale.”

Together with fellow former Royal College of Art student and co-founder Rodrigo Garcia Gonzalez, 38, the duo began their eco-business adventure in a small London kitchen. 

They were intent on finding natural alternatives to petrochemicals-based packaging, sampling a variety of materials from tapioca seeds to other starches. 

– Seaweed ‘family’ –

“Eventually, we found seaweed,” explained Paslier, a former packaging engineer at French cosmetics giant L’Oreal who created Notpla with Gonzalez in 2014. 

“Now we have a flexible film, we make seaweed paper, we have rigid materials. So it’s really the beginning of a family of seaweed-based technologies that hopefully can help us stop using so much plastic.”

He said their early kitchen exploits had eventually led to the secretly-formulated “Ooho” creation.

An edible bubble membrane made from seaweed — holding water, sports drinks or other flavoured liquids including cocktails and sauces — it is marketed as a replacement for single-use plastic cups, bottles and sachets. 

Tasting like a gelatinous candy, it can be consumed whole — like a cherry tomato — or from a larger sachet, making it ideal at sporting events and festivals.

It has been widely used at marathons across the UK, including the 2019 London run.

Viral online interest has helped attract the attention of investors, with Notpla expanding rapidly to boast more than 60 employees and finding itself on the verge of manufacturing its products on an industrial scale.

Production of “Ooho” takes place at the firm’s offices in a large warehouse, a stone’s throw from the Queen Elizabeth Olympic Park in east London. 

Notpla’s growing young team also has laboratories there as it continues to develop new algae-based products.

– ‘Very renewable’ –

Among the more recent results: a naturally biodegradable coating protecting takeaway food boxes from grease and liquids. 

The company now supplies industry giant Just Eat in Britain and five other European countries. 

It also provided the packaging for all the food sold during the final of the women’s European football championships at London’s Wembley Stadium in July. 

Another of its new innovations is a transparent package for dry goods, such as pasta. 

Paslier noted that although his products may currently cost more than plastic alternatives, the latter’s sales price fails to account for “the impact on societal ecosystems, health for humans or for marine life”.

“This is basically going to be paid for [by] the next generations and that doesn’t come into the price of plastic that you buy on the market today,” he added.

“So what we want is to be the most affordable, sustainable packaging solution that takes into account its whole lifetime costs.”

Paslier believes seaweed can become the most affordable packaging option, in large part due to its fast growth rate which can top one metre (3.3 feet) a day in the lab.

“It’s a very, very renewable resource,” he added, noting it doesn’t require any fresh water or fertilisers.

Its emergence is undoubtedly timely.

A recent OECD report found, at the current rate, worldwide plastic waste will triple by 2060 to one billion tonnes per year, much of which will pollute the oceans and threaten many species. 

Britain on Monday unveiled an energy-saving campaign to encourage lower consumption this winter — a policy U-turn — and increased financial help for home insulation.

Prime Minister Rishi Sunak’s Conservative government announced the publicity blitz just two months after his short-lived predecessor, Liz Truss, ruled out such a move and ran into immediate criticism from opposition politicians and the green lobby.

The government is already partially subsidising rocketing electricity and gas bills after prices soared following the invasion of Ukraine by key fossil fuel producer Russia.

The publicity drive, costing £18 million ($22 million), will “demonstrate how consumers can make significant savings”, the Department for Business, Energy and Industrial Strategy said.

Advice will include measures such as lowering the temperature on boiler water heating systems, turning down radiators in unoccupied rooms and installing draught proofing on windows and doors.

“Our new public information campaign will also give people the tools they need to reduce their energy use while keeping warm this winter,” added Business and Energy Secretary Grant Shapps.

The government pledged another £1.0 billion in funds to help with home insulation. That will be on top of its existing £6.6-billion insulation help scheme.

The main opposition Labour party however criticised Monday’s news as a “reheated announcement with no new resources” that was “far too little, too late”.

Greenpeace UK energy campaigner Georgia Whitaker also warned the funding was not nearly enough.

“This is a drop in the ocean compared to what people actually need to stay warm and well this winter and in the winters to come,” Whitaker said.

Seven million households in Britain are currently in fuel poverty and unable to adequately heat their homes, according to the green pressure group.

Greenpeace also estimates that 19 million homes in England and Wales are poorly insulated.

Truss’s administration had insisted it would not give instructions on saving energy because she wanted to avoid accusations of running a “nanny state”.

Energy regulator Ofgem, however, has urged consumers to curb their energy usage as the colder northern hemisphere winter approaches, amid lingering fears of possible blackouts.

Trains across Austria ground to a halt Monday as rail workers went on a 24-hour strike to demand higher pay.

Usually bustling train stations were left deserted with about a million travellers left stranded. 

“The railway union vida is on strike today from 00:00 to 24:00. For this reason, no trains can run all day throughout Austria and across borders,” rail operator OeBB wrote on its website.

Vida said that negotiations to increase the salary of 50,000 railway workers had failed, accusing employers of “mocking” employees with a “bogus offer”.

Vida wants salaries to increase by 400 euros ($415) — instead of the 208 euros offered — to cushion the effects of surging inflation, which stood at 11 percent year on year in October.

Night train workers earn from 1,356 euros net per month, according to the union.

Strikes are rare in Austria. 

Wage increases are usually set by collective bargaining between the Austrian Economic Chambers and unions representing different branches.

In rail transport, the last strike lasting several days dates back to 2003.