US Business

French consumer prices rose at their fastest pace since 1985 in October, official data showed Friday, driven by rising energy, food and manufactured goods prices.

Year-on-year price growth hit 6.2 percent this month, statistics authority Insee said based on preliminary data, a new increase in inflation after it slowed in August and September.

Food especially grew more expensive, at almost 12 percent, in a blow to the least well-off households who spend a larger share of their monthly budget at supermarkets.

Meanwhile energy prices added almost 20 percent, despite government interventions to limit bills for consumers that have kept overall inflation below levels seen in EU neighbours.

Russia’s war on Ukraine and the throttling of gas supplies to Europe has triggered an energy crisis on the continent — at the same moment when many of France’s vital nuclear power plants are offline for maintenance.

French inflation reached 7.1 percent year-on-year when measured using the Harmonised Index of Consumer Prices (HICP) yardstick preferred by the European Central Bank.

The Frankfurt-based ECB on Thursday announced a fresh bumper interest rate hike of 0.75 percent as it strives to bring price growth across the 19-nation eurozone under control.

“We will have further rate increases in the future,” central bank chief Christine Lagarde said. “There is still ground to cover.”

Insee will publish its final October inflation reading in mid-November.

Elon Musk took control of Twitter and fired its top executives late Thursday in a deal that puts one of the leading platforms for global discourse in the hands of the world’s richest man.

Following the takeover, Musk tweeted that the “the bird is freed,” referencing the company’s iconic avian logo.

He wasted no time sacking chief executive Parag Agrawal, as well as the company’s chief financial officer and its head of safety, the Washington Post and CNBC reported citing unnamed sources.

Agrawal previously went to court to hold the Tesla chief to the terms of a deal he had tried to escape.

The takeover came hours before the court-appointed deadline for Musk to seal his on-again, off-again deal to purchase the social media network.

Musk tweeted earlier in the day that he was buying Twitter “because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner.”

Twitter did not immediately reply to a request for comment on the departure of its top executives, but the platform’s co-founder Biz Stone thanked the trio — Agrawal, Ned Segal and Vijaya Gadde — for their “collective contribution to Twitter.”

“Massive talents, all, and beautiful humans each.”

– ‘Chief Twit’ –

The closure of the deal marks the culmination of a long and drawn out back-and-forth between the billionaire and the social network.

Musk tried to step back from the Twitter deal soon after his unsolicited offer was accepted in April, and said in July he was canceling the contract because he was misled by Twitter over the number of fake “bot” accounts — allegations rejected by the company.

Twitter, in turn, sought to prove Musk was contriving excuses to walk away simply because he changed his mind.

After Musk sought to terminate the sale, Twitter filed a lawsuit to hold Musk to the agreement.

With a trial looming, the unpredictable billionaire capitulated and revived his takeover plan.

Musk signaled the deal was on track this week by changing his Twitter profile to “Chief Twit” and posting a video of himself walking into the company’s California headquarters carrying a sink.

“Let that sink in!” he quipped.

He even shared a picture of himself socializing at a coffee bar at Twitter headquarters earlier in the day Thursday.

Musk said during a recent Tesla earnings call that he was “excited” about the Twitter deal even though he and investors are “overpaying.”

– Twitter free-for-all? –

Some employees who would prefer not to work for Musk have already left, said a worker who asked to remain anonymous in order to speak more freely.

“But a portion of people, including me, are willing to give him the benefit of the doubt for now,” the employee said.

The idea of Musk running Twitter has alarmed activists who fear a surge in harassment and misinformation, with Musk himself known for trolling other Twitter users.

But Musk said he realizes Twitter “cannot become a free-for-all hellscape where anything can be said with no consequences.”

Musk has vowed to dial content moderation back to a bare minimum, and is expected to clear the way for former US president Donald Trump to return to the platform.

The then-president was blocked due to concerns he would ignite more violence like the deadly attack on the Capitol in Washington to overturn his election loss.

Far-right users were quick to rejoice on the network, posting comments such as “masks don’t work” and other taunts, under the belief that moderation rules will now be relaxed.

“Free speech will always prevail,” tweeted Republican Senator Marsha Blackburn of Tennessee, prompting replies including “says the party that bans books.”

Japan is expected Friday to announce a huge stimulus package to cushion the economy from the impact of a weak yen and inflation, though the central bank refused to budge from the ultra-loose policy that has hammered the currency.

Ahead of cabinet approval for the relief measures, Prime Minister Fumio Kishida said the government would “seek swift approval” of an extra budget worth 29.1 trillion yen (around $200 billion).

Prices are rising in Japan at their fastest rate in eight years, although the three-percent inflation rate remains well below the sky-high levels seen in the United States and elsewhere.

The yen has also lost more than a fifth of its value against the dollar this year, prompting authorities to intervene to prop up the currency.

The spending package is expected to include measures to encourage wage growth and support households with energy bills, which have spiked since Russia’s invasion of Ukraine.

Local media including the Nikkei business daily said total fiscal spending on the measures could be as high as 39 trillion yen, a figure that could rise to 71.6 trillion yen when private-sector investments that ministers hope will also be made are taken into account.

Japan — which has one of the world’s highest debt-to-GDP ratios — has already injected hundreds of billions of dollars into its economy over the past two years to support recovery from the Covid-19 pandemic.

But this year the yen has been driven sharply lower by the widening gap between the monetary policies of the US and Japanese central banks, with the BoJ keeping rates ultra low to encourage sustainable growth, while the Federal Reserve is ramping them up.

On Friday, following a two-day policy meeting, the Bank of Japan said it would continue to keep its easy policy, defying growing pressure to tweak its strategy as the yen declines.

Ahead of the BoJ meeting, UBS economists Masamichi Adachi and Go Kurihara said that a mix of continued easing by the bank and the government’s stimulus measures would be “optimal”.

That is because Japan’s inflation is not demand-driven, but largely down to soaring energy costs, they explained in a commentary.

“An alternative mix, especially with tightening monetary policy to counter (the yen’s) depreciation and higher (consumer price) inflation under the current circumstances, would have a worse outcome for the economy, especially with market turmoil not only in Japan, but also in other markets,” the pair said.

This view was echoed by Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

“It’s understandable that the government is announcing new stimulus now, because Japan’s economy faces weak demand due to price rises,” he told AFP.

This is “in contrast to the United States, where demand is strong, with the Fed trying to cool down inflation”, he said.

“It’s impossible that Japan would hike rates to curb inflation, for this reason,” Shinke explained.

Doctors, nurses and other health care professionals can apply to have their YouTube channels certified, the video sharing platform said Thursday, in a push to limit misinformation on the site.

The change will allow viewers to more easily access videos containing “high-quality health information,” YouTube said.

“This is a big step towards helping people more easily find and connect with content that comes from the extraordinary community of healthcare professionals on YouTube,” it added.

In addition to doctors and nurses, mental health professionals and healthcare information providers may also apply for the YouTube verification that allows their videos to be spotted easily by users.

“This new step will allow us to expand to include high quality information from a wider group of healthcare channels,” the company said.

Some 90 percent of Americans use social media to search for health information, according to the National Academy of Medicine.

YouTube faced criticism last year for hosting videos that criticized Covid-19 vaccines or contradicted health guidance from the World Health Organization or the Centers for Disease Control and Prevention.

In response, in September 2021, it banned misleading and inaccurate content about vaccines. 

It also launched a limited program that allowed videos by public health departments, hospitals and governments, among other entities, to have labels letting users know they are authoritative.

It is that program that is now being broadened.

To access the program, healthcare professionals must offer proof of their professional licenses, follow best practices for sharing science-based health information and have a channel in good standing on YouTube, the company said.

YouTube, headquartered in San Bruno, California, has a reach of some two billion monthly active users.

Elon Musk took control of Twitter and fired its top executives late Thursday in a deal that puts one of the leading platforms for global discourse in the hands of the world’s richest man.

Musk sacked chief executive Parag Agrawal, as well as the company’s chief financial officer and its head of safety, the Washington Post and CNBC reported citing unnamed sources.

Agrawal previously went to court to hold the Tesla chief to the terms of a takeover deal he had tried to escape.

The reports came hours before the court-appointed deadline for Musk to seal his on-again, off-again deal to purchase the social media network.

Musk tweeted earlier in the day that he was buying Twitter “because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner.”

Twitter did not immediately reply to a request for comment on the departure of its top executives, but the platform’s co-founder Biz Stone thanked the trio — Agrawal, Ned Segal and Vijaya Gadde — for their “collective contribution to Twitter.”

“Massive talents, all, and beautiful humans each.”

– ‘Chief Twit’ –

The closure of the deal marks the culmination of a long and drawn out back-and-forth between the billionaire and the social network.

Musk tried to step back from the Twitter deal soon after his unsolicited offer was accepted in April, and said in July he was canceling the contract because he was misled by Twitter over the number of fake “bot” accounts — allegations rejected by the company.

Twitter, in turn, sought to prove Musk was contriving excuses to walk away simply because he changed his mind.

After Musk sought to terminate the sale, Twitter filed a lawsuit to hold Musk to the agreement.

With a trial looming, the unpredictable billionaire capitulated and revived his takeover plan.

Musk signaled the deal was on track this week by changing his Twitter profile to “Chief Twit” and posting a video of himself walking into the company’s California headquarters carrying a sink.

“Let that sink in!” he quipped.

He even shared a picture of himself socializing at a coffee bar at Twitter headquarters earlier in the day Thursday.

Musk said during a recent Tesla earnings call that he was “excited” about the Twitter deal even though he and investors are “overpaying.”

– Twitter free-for-all? –

Some employees who would prefer not to work for Musk have already left, said a worker who asked to remain anonymous in order to speak more freely.

“But a portion of people, including me, are willing to give him the benefit of the doubt for now,” the employee said.

The idea of Musk running Twitter has alarmed activists who fear a surge in harassment and misinformation, with Musk himself known for trolling other Twitter users.

But Musk said he realizes Twitter “cannot become a free-for-all hellscape where anything can be said with no consequences.”

Musk has vowed to dial content moderation back to a bare minimum, and is expected to clear the way for former US president Donald Trump to return to the platform.

The then-president was blocked due to concerns he would ignite more violence like the deadly attack on the Capitol in Washington to overturn his election loss.

Far-right users were quick to rejoice on the network, posting comments such as “masks don’t work” and other taunts, under the belief that moderation rules will now be relaxed.

“Free speech will always prevail,” tweeted Republican Senator Marsha Blackburn of Tennessee, prompting replies including “says the party that bans books.”

The Bank of Japan stuck to its ultra-loose monetary policies Friday, even as the yen comes under pressure from aggressive tightening by the US Federal Reserve and other central banks.

The stark contrast between Japanese and US monetary policy has caused the yen to plummet to 32-year lows against the dollar, prompting the government to intervene to prop up the currency.

In a statement after a two-day policy meeting, the BoJ said it would keep measures aimed at boosting the world’s third-largest economy, including its benchmark rate of minus 0.1 percent.

But it also raised its inflation forecast for fiscal 2022-23 to 2.9 percent, from 2.3 percent in July, driven by higher energy and food prices.

“The rate of increase is then expected to decelerate toward the middle of fiscal 2023,” as the impact of these price increases wanes, its statement said.

Bank of Japan policymakers have refused to move away from their ultra-loose stance, designed to encourage sustained price rises.

Meanwhile, the Fed and central banks in other major economies have embarked on a series of hawkish interest rate hikes in an effort to fight decades-high inflation.

This contrast has caused the yen to plummet dramatically from around 115 against the dollar before Russia’s invasion of Ukraine in February to around 146 on Friday morning.

The Japanese government spent nearly $20 billion in September in an effort to curb the yen’s slide, and further expensive interventions have reportedly taken place in recent days.

“The Bank of Japan policy meeting is a do-or-die moment for the Japanese yen,” Edward Moya, senior market analyst of Oanda, said in a note this week.

“If Japan wants to defend the yen, they might need to continue to intervene in the forex market,” or artificially influence rates through buying or selling government bonds, he added.

Japan is also on Friday expected to announce an economic stimulus package that local media said could be worth $200 billion to cushion the impact of inflation and a weak yen.

Most markets fell Friday as a weakening economy and disappointing earnings from tech giants offset signs that central banks could begin slowing their interest rate hike campaign.

After being battered for most of the year by worries that borrowing costs will continue to rise to fight inflation, traders were cheered by a report last week indicating the US Federal Reserve could take its foot off the gas soon.

That was followed by comments from policymakers hinting as much, while a string of data suggesting the world’s top economy was feeling the impact of higher rates also gave the bank room to manoeuvre.

Meanwhile, a below-expectation increase by the Bank of Canada this week and the signs the European Central Bank could take a less hawkish turn helped fuel speculation of a softer outlook for rates, helping push government bond yields down around the world.

Focus is now on the Fed’s next policy decision on Wednesday.

While it is widely tipped to announce another bumper hike, traders will be poring over the post-meeting statement for clues about its plans for December and 2023, with hopes it will indicate a slower pace.

Data showing the US economy grew more than expected was tempered by underlying figures showing, among other things, consumer spending — the key driver of growth — remained fragile.

“The notion ‘bad news is good news’ is increasingly driving price action as Fed hikes expectations are lowered in the face of weaker data,” said SPI Asset Management’s Stephen Innes.

“Bank of Canada’s surprise 50 basis point hike on Wednesday, coupled with a less hawkish forward guidance from the ECB… added to the idea that peak tightening globally has passed.”

However, Wall Street ended on a mixed note, with the Nasdaq losing more than one percent after forecast-missing earnings this week from some of the world’s biggest firms including Apple, Amazon, Facebook parent Meta and Google parent Alphabet.

“A lot went wrong for big-tech… Apple’s holiday outlook underwhelmed, inflation pain is more noticeable, and unfavourable exchange rates will hurt future sales,” said OANDA’s Edward Moya.

“The key theme across this round of mega-cap results is that an earnings slump is here as inflation cripples an already weak consumer.”

The losses filtered through to Asia where tech was again in the firing line.

They were felt particularly in Hong Kong, where the Hang Seng Index shed more than one percent — at the end of a bruising week hit by worries that Xi Jinping’s tightened grip on power in China could see more crackdowns on the sector.

There were also losses in Tokyo as investors await a fresh stimulus package local media said could be worth as much as $200 billion as the government tries to kickstart the economy and cushion the country from inflation and the weaker yen.

The yen was slightly lower against the dollar Friday, though it has bounced since hitting a fresh 32-year low last week.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.4 percent at 27,248.20 (break)

Hong Kong – Hang Seng Index: DOWN 1.1 percent at 15,256.83

Shanghai – Composite: DOWN 0.9 percent at 2,956.74

Euro/dollar: UP at $0.9989 from $0.9965 on Thursday

Pound/dollar: UP at $1.1582 from $1.1567 

Dollar/yen: UP at 146.49 yen from 146.27 yen

Euro/pound: UP at 86.25 pence from 86.11 pence

West Texas Intermediate: DOWN 0.8 percent at $88.41 per barrel

Brent North Sea crude: DOWN 0.6 percent at $96.36 per barrel

New York – Dow: UP 0.6 percent at 32,033.28 (close)

London – FTSE 100: UP 0.3 percent at 7,073.69 (close)