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Mordaunt enters Tory race as Johnson eyes comeback as PM

Britain’s divisive former leader Boris Johnson on Friday received heavyweight Conservative backing to stage a sensational comeback following the resignation of Prime Minister Liz Truss.

Cabinet member Penny Mordaunt became the first to formally declare her candidacy, after the UK’s ruling party was forced into its second leadership contest in weeks.

Mordaunt, who just missed out on making the final runoff after Johnson quit, said she was running for “a fresh start, a united party and leadership in the national interest”.

Truss announced on Thursday she was quitting after just 44 tempestuous days in office.

Polling company YouGov found that three in five voters now want an early general election, in line with demands from opposition parties, as Britons struggle with a worsening cost-of-living crisis.

Labour and other parties argue only an election can end the months of political chaos, sparked when Johnson was himself forced out in July after non-stop personal and political scandal.

In the resultant contest, Truss won the support of just over 80,000 Tory party members, defeating Rishi Sunak, who correctly warned that her right-wing programme of debt-fuelled tax cuts would crash the economy.

– ‘I’m up for it’ –

Now with a new vacancy suddenly opening up in 10 Downing Street, former finance minister Sunak has emerged as favourite in media straw polls of Conservative MPs. 

But Johnson was said to be cutting short a Caribbean holiday to take part in the accelerated contest, which will see Tory MPs hold a vote on Monday before a possible online ballot for the members next week.

James Duddridge, one of Johnson’s closest allies in parliament, said he had been in contact with his old boss via WhatsApp.

“He’s going to fly back. He said… ‘We are going to do this. I’m up for it’,” the MP said.

Business Secretary Jacob Rees-Mogg, an arch Johnson loyalist, became the first minister to publicly back him, tweeting: “Only Boris can win the next election.”

Cabinet colleague Simon Clarke also endorsed Johnson, who led the Tories to election triumph over Labour in 2019.

Defence Secretary Ben Wallace, a favourite of the Tory grassroots, told reporters he was not standing himself and said: “At the moment, I’m leaning towards Boris Johnson.”

But Wallace added that Johnson still had “some questions to answer” over the multiple scandals, which resulted in a yet-to-launch investigation in the House of Commons.

If found guilty of lying to the Commons over the “Partygate” scandal — lockdown-breaching revels held in Downing Street — Johnson could be suspended or even expelled from parliament.

As a result of such controversies, Johnson left Number 10 with dismal poll ratings, and other Tories were aghast at the prospect of his coming back.

Veteran backbencher Roger Gale warned that Johnson could face a wave of resignations from MPs refusing to serve under him as leader.

Jesse Norman, a minister in the Foreign Office, said choosing Johnson again would be “an absolutely catastrophic decision”.

Sunak obtained his own endorsements from, among others, Sajid Javid and Dominic Raab, both senior former cabinet members.

And Johnson’s ambiguous appeal was underlined by another YouGov poll that found 52 percent of voters opposed to his return.

– ‘Backstabber’ –

While Sunak and Johnson are yet to formally declare, the contest is widely expected to be a three-way race between them and Mordaunt, who is the cabinet minister in charge of the House of Commons. 

Contenders have until 2:00 pm (1300 GMT) on Monday to produce a minimum 100 nominations each from the 357 Conservatives in the Commons.

If necessary, MPs will then vote to leave two candidates standing, and hold another “indicative” vote to tell the party membership their preferred option.

If no single candidate emerges, the rank-and-file will then have their say in an online ballot and the result will be announced next Friday.

Political website Guido Fawkes, which is running a rolling spreadsheet of Tory MPs’ declared support, had Sunak on 88, Johnson on 65 and Mordaunt on 24 by Friday evening.

In Sunak’s constituency in Yorkshire, northern England, 58-year-old farmer Elaine Stones said the party made a mistake in electing Truss instead of him. 

“He’s honest, reliable and he should have been voted in last time,” she told AFP. 

But retiree Maureen Ward called Sunak a “backstabber” who helped to topple Johnson. 

“He wielded the knife and once you do that, you can’t be trusted,” she said.

Far-right Meloni named Italy's first woman PM

Far-right leader Giorgia Meloni was named Italian prime minister on Friday, becoming the first woman to head a government in Italy.

Her post-fascist Brothers of Italy party — Eurosceptic and anti-immigration — won the September 25 legislative polls but needed outside support to form a government.

Meloni’s appointment is an historic event for the eurozone’s third largest economy and for Brothers of Italy, which has never been in government.

Shortly after she was named, the 45-year-old from Rome named her ministers, who will be sworn in on Saturday in front of President Sergio Mattarella.

Her Brothers of Italy party won 26 percent of the vote last month, compared to eight and nine percent respectively for her allies Forza Italia and the far-right League.

Her list of 24 ministers, including six women, revealed a desire to reassure Italy’s partners. She named Giancarlo Giorgetti as economy minister, who served under the previous government of Mario Draghi.

Giorgetti, a former minister of economic development, is considered one of the more moderate, pro-Europe members of Matteo Salvini’s League.

Meloni also named ex-European Parliament president Antonio Tajani, of Forza Italia, as foreign minister and deputy prime minister.

Salvini will serve as deputy prime minister and minister of infrastructure and transport.

That appointment is likely to disappoint Salvini, who wanted Meloni to give him the role of interior minister, a position that went to a technocrat, Rome prefect Matteo Piantedosi.

– Unity concerns –

The consultations to cobble together a government had been overshadowed by disagreements with her two would-be coalition partners over Meloni’s ardent support for Ukraine since the Russian invasion. The leaders of Forza Italia and the League are both considered close to Moscow.

A recording was leaked during the week in which Italy’s former prime minister Silvio Berlusconi — who heads Forza Italia — talks about his warm ties with Moscow and appeared to blame the war in Ukraine on Ukrainian President Volodymyr Zelensky.

Her other coalition partner, Salvini, is a long-time fan of Russian President Vladimir Putin and has criticised Western sanctions on Russia.

Despite her Eurosceptic stance, Meloni has been firm about her support for Ukraine, in line with the rest of the European Union and the United States.

“I intend to lead a government with a clear and unequivocal foreign policy line,” she has said. “Italy is fully, and with its head held high, part of Europe and the Atlantic Alliance (NATO).”

“Anyone who does not agree with this cornerstone will not be able to be part of the government, even at the cost of not forming a government,” Meloni has warned.

Berlusconi, 86, has said his personal and political positions “do not deviate from that of the Italian government (and) the European Union” on Ukraine.

But the tensions add to concerns that Meloni’s coalition, held together by the need for a parliamentary majority, will struggle to maintain unity.

Berlusconi’s allies insist his comments in the recording, from a meeting with lawmakers earlier this week, were taken out of context.

The billionaire media mogul described a rekindling of relations with long-time friend Putin, who he said sent him 20 bottles of vodka and a “very sweet letter” for his birthday.

– Challenges ahead –

Meloni’s coalition wants to renegotiate Italy’s portion of the EU’s post-Covid recovery fund. 

It argues the almost 200 billion euros ($193 billion) it expects to receive should take into account the current energy crisis, exacerbated by Moscow’s invasion of Ukraine, which has hit the supplies of Russian gas to Europe.

But the funds are tied to a series of reforms only just begun by Draghi’s government, and analysts say Meloni has limited room for manoeuvre.

Meloni had campaigned on a platform of “God, country and family”, sparking fears of a regression on rights in the Catholic-majority country.

She has distanced herself from her party’s neo-fascist past — and her own, after praising dictator Benito Mussolini as a teenager — and likes to present herself as a straight-talking but unthreatening leader.

Inflation in Italy rose to 8.9 percent in September over the previous year, threatening to put the country in recession next year. 

The margin for manoeuvre is limited given that Italy’s colossal debt represents 150 percent of gross domestic product, the highest in the eurozone after Greece.

Draghi used his last day on the European stage on Friday to warn both his fellow leaders and Meloni that a united Europe should remain their “guiding star”.

Draghi said everyone looked at “the EU as a source of security, stability and peace”, adding: “We have to keep this in mind as a guiding star for the future, especially in troubled times like these.”

Trump had secret documents on Iran, China in Florida home: report

Documents seized from former president Donald Trump’s Florida home in August included highly sensitive intelligence on Iran and China that risked exposure of US spying methods, the Washington Post reported Friday.

Among the documents retrieved by Justice Department investigators included one that described Iran’s missile program, and another that “described highly sensitive intelligence work aimed at China,” the Post said, citing people familiar with the case.

Investigators seized some 11,000 documents in the raid to recover what the government says should be in the US archives but that Trump illegally took with him when he left the White House in January 2021.

Among those were just over 100 classified documents, some of them classified as top secret and normally kept tightly under seal with only a few people permitted to access them.

However, at Mar-a-Lago they were kept in places that included Trump’s personal office, with little security, according to the Justice Department.

The Justice Department justified the raid on grounds of national security, indicating that Trump was suspected of violating the Espionage Act, which forbids the retention and sharing of highly sensitive documents pertaining to national defense.

He was also suspected of obstruction, after his attorneys had told the department in June that there were no more government documents held at Mar-a-Lago.

But Trump has not been charged. After Trump sued, that court appointed an independent “special master” to review the documents to see which ones could be covered by his claims of privilege over them.

Many of the documents, which mixed government records with personal legal and financial documents of Trump as well as press clippings and keepsakes, will be returned to the former president.

In a filing on Thursday to the special master, the Justice Department said that among the official government records there were only 15 documents on which privilege is disputed by the two sides.

US budget deficit drops by half in 2022 on pandemic recovery

The US budget deficit fell by half in the past year to $1.4 trillion on the back of a pandemic recovery and as relief spending eased, the government said Friday.

Covid-related spending on things like unemployment insurance and other programs have declined following a recovery in the world’s biggest economy from the virus outbreak, with businesses returning to normal.

The drop in the budget deficit marks the “largest one-year decrease,” said the Treasury Department and White House budget office on Friday.

This was helped by higher individual and corporation tax collections, bolstered by employment growth, with tax revenues for the fiscal year ended September 30 surging a record $850 billion from 2021.

President Joe Biden hailed the big drop as evidence of a resurgent economy just three weeks ahead of November’s crucial midterm elections to decide control of Congress.

Hailing the “largest ever decline in the federal deficit,” Biden called the development “further proof that we’re rebuilding the economy.”

The development, he said, was part of “the good news on the economy” that he predicted would help Democrats climb back in the polls, which currently show Republicans poised for victory.

Treasury Secretary Janet Yellen, in a statement citing the American Rescue Plan stimulus package, said “today’s joint budget statement provides further evidence of our historic economic recovery.”

In a statement, officials also added that the US has “more than recovered all of the jobs lost during the pandemic”.

The economy added more than 10 million jobs since early 2021, while unemployment returned to its pre-pandemic level.

The figures for the latest fiscal year showed government outlays dipped $550 billion to $6.3 trillion, in part reflecting reductions in Covid-19 related spending.

But spending for categories such as student loans increased, the report added.

This was the first fall in outlays since 2013, Treasury officials told reporters.

– Loan forgiveness –

The overall drop in the deficit came after Biden announced plans to forgive part of the country’s massive student debt burden, a topic of controversy between Democrats and Republicans.

Republicans accuse Biden of wasting money on the measure, arguing that public funds could be used more effectively.

Loan modifications had a $430 billion impact in September, with a Treasury official acknowledging that loan forgiveness was one of the primary reasons for the increase.

But the department does not expect to see “similar large modifications” in the future unless there were further changes to policy moving forward.

In the latest fiscal year, federal borrowing rose by $2 trillion to $24.3 trillion, still close to the size of the world’s biggest economy, data showed.

With soaring inflation bringing a sharp rise in borrowing costs, interest on the public debt came in at $36.6 billion higher than estimated, the Treasury Department said.

The Federal Reserve has raised its benchmark lending rate several times this year to cool surging prices.

In a breakdown, the report on Friday also showed that individuals paid $2.6 trillion in taxes and those from corporations totaled $425 billion.

The Health and Human Services Department spent $1.6 trillion while the Defense Department spent $727 billion and foreign aid came up to an estimated $24.6 billion, the report said.

US, Russian defence ministers hold rare call as Ukraine advances

Russia’s defence minister held rare telephone talks with his US counterpart Friday after Kremlin proxy officials said they were turning Ukraine’s southern city of Kherson into a “fortress” as Kyiv’s forces advance.

Details of the conversation — including its duration — between Russia’s Sergei Shoigu and US Defense Secretary Lloyd Austin were scant from official read outs but both sides said the senior officials had discussed Ukraine.

“Topical issues of international security — including the situation in Ukraine — were discussed,” Moscow said, with Washington saying: “Secretary Austin emphasized the importance of maintaining lines of communication amid the ongoing war against Ukraine”.

It was only the second call between the ministers since Moscow invaded Ukraine on February 24 and during the first — in May — Austin had urged Moscow to implement an “immediate ceasefire” in Ukraine.

At the time, Russia’s invading force had been beaten back from the capital Kyiv but were making steady gains in the eastern Donbas and Kharkiv regions and had solidified a hold in the south.

Six months on however Ukraine’s forces are pushing back — particularly in the south.

Kyiv’s forces in recent weeks — aided by Western weapons — have been advancing along the west bank of the Dnieper river towards the region’s main city, also called Kherson.

Kherson was the first major city to fall to Moscow’s troops after the invasion began and retaking it would be a crucial prize in Ukraine’s counter-offensive.

Kyiv said Friday it had retaken a total of 88 towns and villages in the region since launching its offensive to retake Kherson in the late summer. 

On Friday, Moscow-installed authorities there accused Kyiv’s forces of carrying out a fatal attack on a bridge being used by civilians.

“Four people were killed,” pro-Moscow official Kirill Stremousov said on Telegram. “The city of Kherson, like a fortress, is preparing for its defence.”

Russian investigators said later two of the dead were journalists and 13 people had been injured.

A Ukrainian military spokeswoman Nataliya Gumenyuk earlier denied Kyiv’s forces were responsible, saying they do not target local populations.

Russian state-run media in recent days aired footage showing civilians with bags taking ferries across the river from Kherson.

– Risks of disasters –

Kyiv has branded the organised movement of Kherson residents to Russia and other Moscow-controlled regions as “deportations” of Ukrainian citizens.

Zelensky said late Thursday that Russian forces had mined the Kakhovka hydroelectric power plant with the intent of blowing it up.

Hundreds of thousands of people around the lower Dnieper river would be in danger of flash flooding if the dam was destroyed, Zelensky warned in a speech Thursday to European leaders.

On Friday, Prime Minister Denys Shmygal called for an international monitoring mission to deploy at the dam.

“International specialists need to arrive immediately at the station along with Ukrainian personnel,” Shmygal said during a government meeting. 

He also said cutting water supplies to the south could also impact the cooling systems of the Zaporizhzhia nuclear power plant, Europe’s largest.

The nuclear facility is a key concern of Russia’s eight-month invasion with both sides regularly accusing the other of shelling near it and endangering operations.

Ukraine’s push in the south comes after a sweeping counter-offensive in the northeast Kharkiv region that has badly impaired Russia’s supply routes and logistics corridors in the eastern Donbas region.

But Russian forces have continued shelling the region’s largest city, Kharkiv, and the presidency said Friday “industrial infrastructure” was hit in the city, wounding six.

The attack is the latest in a weeks-long barrage that has targeted infrastructure and particularly energy facilities.

Energy-saving measures were put in place across Ukraine after Russian missile and drone strikes destroyed what Zelensky said was more than 30 percent of the country’s power stations in a week.

– ‘We can hold out’ –

A 64-year-old Ukrainian, Vyacheslav, told AFP in Kyiv the nation would make do, despite the restrictions.

“There are books to read. There are battery-powered lights. I think we can hold out for a few hours. There are gas stoves so it will still be possible to cook,” he said, declining to give his full name.

Kyrylo, a 27-year-old shop salesman, said there had been a rush on power banks after Russian attacks began on the energy facilities in the capital.

“We don’t sell flashlights but regarding power banks, I can say that on the 10th, when the attack on Kyiv began, almost all available power banks were sold, and in general, the demand for power banks increased by 70 or 80 percent,” he added.

The Ukraine presidency said Friday Russian forces were shelling sections along the entire front line of Donbas and that two were killed in the Donetsk region.

Pro-Draghi League moderate named Italy economy minister

Giancarlo Giorgetti, named Italy’s new economy minister on Friday, is considered one of the more moderate, pro-Europe members of Matteo Salvini’s League party.

He was a loyal supporter of outgoing prime minister Mario Draghi, serving as his minister of economic development.

The 55-year-old has spent most of his political career in the League, but does not hesitate in disagreeing with Salvini — even if publicly, he denies any rift.

His political mentor was Umberto Bossi, who founded the party when it was the regionally focused Northern League.

“Umberto Bossi is a political master, he made me understand that politics is a game of chess, you have to calculate everything up to the last move,” he said in an interview in March 2018.

Like Giorgia Meloni, the Brothers of Italy leader named prime minister Friday, he cut his political teeth in the youth wing of the Italian Social Movement (MSI), formed by supporters of fascist dictator Benito Mussolini after World War II.

But he was not the first choice for the economy ministry, one of the most important in the new government in Rome.

Meloni had in her sights Fabio Panetta, a senior executive in the Bank of Italy, and Daniele Franco, Draghi’s finance minister, as she sought both continuity with the previous government and to reassure international investors.

“We aim to build an authoritative and top-level government,” Meloni said repeatedly.

Giorgetti will have much to do to reconcile the costly election promises of the League and the need to reduce Italy’s huge debt, in the context of soaring interest rates and fears of a looming recession.

A graduate in business economics from Bocconi university in Milan, he will have to look at the flagship measures of the right-wing coalition — a flat tax, tax amnesties, a shield on energy prices for households and businesses and lowering the retirement age.

“It would not be an enjoyable expense, but to pay for the harm done by the war” in Ukraine, he said.

In contrast to Salvini, Giorgetti is reserved and eschews the limelight, refusing to join social media. “I don’t put myself in the front row,” he said.

An avid supporter of English football club Southampton, he served under former premier Giuseppe Conte’s 2018-2019 government, notably as sports minister.

A practising Catholic and Americanophile, he was born on December 16, 1966 in Cazzago Brabbia, in northern Italy. His father was a fisherman and his mother was a textile worker.

From 1995 to 2004, he was mayor of the town of less than 800 inhabitants.

When his name came up, Ignazio La Russa, who co-founded Brothers of Italy with Meloni, said he could have been appointed to several roles.

“He could also be general of the armed forces. Giorgetti can do everything, he is my friend, there is no role that he cannot play,” said La Russa.

Chad's leader visits part of capital hit by violent protests

Chad’s military ruler Mahamat Idriss Deby on Friday visited a hospital and a protest-hit district of N’Djamena, his office said, after a day of unprecedented violence that left around 50 people dead in the capital and elsewhere.

Tensions eased on Friday after Chad’s ruling junta announced an overnight curfew on Thursday, following fatal clashes eariler in the day between police and demonstrators protesting against the military’s grip on power.

The violence came on the heels of a national forum organised by Deby that extended his military government’s grip on power beyond Thursday’s deadline.

Deby, a 38-year-old five-star general, has been in power since his father — longtime military president Idriss Deby Itno — was killed in an operation against rebels in April 2021. He took no journalists with him on his city tour on Friday.

Escorted by a dozen vehicles, Mahamat Deby visited the capital’s southern seventh district, where there were violent clashes on Thursday, according to photos posted on the presidential palace’s Facebook page.

Some photos showed him at the hospital bedside of people hurt in the clashes.

Prime Minister Saleh Kebzabo put the official toll from the violence at around 50 dead and more than 300 injured. He said most fatalities had occurred in N’Djamena and the cities of Moundou and Koumra.

Kebzabo also announced the suspension of “all public activity” by major opposition groups, including the Transformers party and civil society coalition Wakit Tamma.

In southern districts of the capital, where most of the clashes took place, there was relative calm on Friday morning, although debris from burnt tyres and the remains of makeshift street barricades littered the streets.

Law enforcement officers, some of them hooded, were seen sitting in vehicles to deter further protests.

– ‘Killing our people’ –

In the southern Chagoua district of the capital, women wearing high-viz jackets and carrying brooms and pickaxes cleaned the streets, while bus services gradually resumed. 

Local resident Suzanne Chamnone, 50, who lives next to the headquarters of Kebzabo’s party, the National Union for Development and Renewal (UNDR), said she saw people gathered outside the party building on Thursday.

“They threw stones and set fire to the premises,” she said. “I went home out of fear, with my children.” 

The violence came on the heels of a national forum organised by Deby that extended his stay in power.

Deby took over in April 2021 after his iron-fisted father, in power for three decades, was killed during an operation against rebels.

The younger Deby has since angered many at home and embarrassed backers abroad by staying in power beyond his initially promised deadline, which would have expired on Thursday.

“They’re firing on us. They are killing our people,” Succes Masra, whose Transformers party was among groups that had called the protest, said on Twitter on Thursday.

The United Nations said it “deplored the lethal use of force” and called for an investigation into reports of human rights violations.

The African Union and the European Union have also condemned the repression of the protests.

“This was a declaration of war against our party. A group of about 100 people came with tyres and petrol. We were in the minority,” argued UNDR activist Nestor Nahor, 40, who witnessed the looting at the party HQ. 

Access to the internet was disrupted in the south of the city on Friday.

Deby’s junta had originally declared it would restore civilian rule after 18 months in power and he initially promised not to take part in elections that would follow.

But as the 18-month deadline neared, the nationwide forum staged by Deby reset the clock. On October 1, it approved a new 24-month timeframe for holding elections.

It named Deby “transitional president” and declared he could be a candidate in the poll.

French FM says crucial not to worsen Putin 'isolation'

France’s foreign minister said Friday it was vital to keep lines of communication open with Russia, warning that President Vladimir Putin is trapped in a “strange vision” of the world.

President Emmanuel Macron has spoken to Putin since the February 24 invasion of Ukraine, drawing some criticism from Russia’s historic foes in eastern Europe, although the United States has also maintained lower-level contact including through talks between defense chiefs on Friday.

“We absolutely think it is crucial to keep a channel of communication with those making the decisions in Russia, including President Putin,” French Foreign Minister Catherine Colonna said on a visit to Washington.

“Putin is probably isolated in his very strange vision of the world and the way it could be run. Reinforcing this isolation of his would not be a good option,” she said at the Center for Strategic and International Studies.

“We need him to hear when we mention our analysis and our assessment of the mistakes he made and what he could do to move on in a different direction,” she said.

Macron held marathon talks with Putin as part of a failed Western effort to dissuade him from invading the neighboring country.

While US President Joe Biden has shunned contact with his Russian counterpart, Macron has spoken to Putin in recent months and succeeded in allowing a mission by the UN nuclear watchdog to travel to the Russian-occupied Zaporizhzhia nuclear power plant in Ukraine.

Colonna said she still hoped that the effort would lead to a demilitarized zone around the plant, the largest in Europe.

“This is too dangerous for the world to use as a zone of military confrontation,” she said.

Pound hit by UK political crisis

Global stocks wavered on Friday on renewed concerns about rising interest rates while the British pound slumped over the UK’s political drama.

European stocks were mixed while Wall Street went from red to green after the open as investors weighed fresh company earnings and rising bond yields.

“It’s not a good look right now in sovereign bond markets and that is making things look less pretty in global equity markets,” said Briefing.com analyst Patrick O’Hare.

Sterling slid beneath $1.12 after having bounced above $1.13 Thursday following the resignation of Prime Minister Liz Truss. 

The yield on the British government’s 30-year bond, or gilt, climbed back above four percent on Friday as the Conservatives’ race to replace Truss went into full swing, with her divisive predecessor Boris Johnson among the potential contenders.

The dollar also strengthened further against the yen as the US central bank is expected to pursue its aggressive rate hikes while its Japanese counterpart continues its dovish stance.

The dollar surged almost one percent to 151.53 yen, but later fell back to around 148 yen.

The yield on the 10-year US Treasury bill — the interest the government pays to borrow — has surged well past four percent.

Bond yields for governments in France and Germany also rose.

“There is still huge uncertainty over the economy, inflation and where interest rates will end up and none of that is conducive to a strong sustainable stock market recovery,” said Craig Erlam, senior market analyst at trading platform OANDA.

Analysts said investors were also tracking third-quarter earnings reports from American Express and Verizon Communications.

– ‘Bleak’ situation –

“The situation in the UK looks particularly bleak,” Erlam said.

“I’m not sure anyone is particularly confident that we’re suddenly going to see stability in government,” he said.

Truss resigned after 44 days in office, having triggered markets chaos over a tax-cutting budget due to have been funded by debt.

The pound was weighed down Friday additionally by official data showing that UK borrowing surged and retail sales slumped in September.

“This morning’s retail sales data highlighted the struggles facing consumers and businesses alike, with people spending 3.9 percent more for 6.9 percent less goods,” said Joshua Mahony, senior market analyst at online trading platform IG.

London’s FTSE 100 index managed a small gain nevertheless, but both Frankfurt and Paris ended the day lower.

US stocks were higher in late morning trading, although the Nasdaq spent much of the morning in the red as weak Snap results dragged down other tech shares.

Snap shares sank around 30 percent after reporting a $360 million quarterly loss in results that showed that online advertisers are tightening their budgets.

– Key figures around 1530 GMT –

Pound/dollar: DOWN at $1.1212 from $1.1235 on Thursday

Dollar/yen: UP at 148.07 yen from 150.15 yen

Euro/dollar: UP at $0.9806 from $0.9786

Euro/pound: UP at 87.44 pence from 87.11 pence

New York – Dow: UP 0.8 percent at 30,577.63 points

EURO STOXX 50: DOWN 0.5 percent at 3,476.63

London – FTSE 100: UP 0.4 percent at 6,969.73 (close)

Frankfurt – DAX: DOWN 0.3 percent at 12,730.90 (close)

Paris – CAC 40: DOWN 0.9 percent at 6,035.69 (close)

Tokyo – Nikkei 225: DOWN 0.4 percent at 26,890.58 (close)

Hong Kong – Hang Seng Index: DOWN 0.4 percent at 16,211.12 (close)

Shanghai – Composite: UP 0.1 percent at 3,038.93 (close)

Brent North Sea crude: UP 0.4 percent at $92.78 per barrel

West Texas Intermediate: UP 0.2 percent at $84.64 per barrel

burs/rl/cdw

India's Reliance reports mixed results as taxes hurt oil business

Indian conglomerate Reliance Industries reported mixed quarterly results on Friday, with weakness in its core oil-refining business hurting profits even as its retail and telecom arms posted strong earnings.

Reliance, which is owned by Asia’s second-richest man Mukesh Ambani, reported a net profit of 136.56 billion rupees ($1.65 billion) between July and September, 0.2 percent lower than the same period last year.

From the June quarter, net profit declined 24 percent from 179.55 billion rupees.

Revenues from operations increased 33.7 percent on-year to 2.33 trillion rupees, helped by strong contributions from Reliance’s newer consumer-facing businesses.

“I am pleased with the record performance of our consumer businesses which continue to scale new milestones every quarter,” chairman and managing director Ambani said in a statement.

But Reliance’s legacy oil-to-chemicals business was hit by “subdued demand” and “the introduction of special additional excise duties during the quarter”, he added.

On July 1, India imposed duties on the sale of petrol, diesel and aviation fuel by oil refiners such as Reliance, in addition to a “windfall tax” on the sale of domestic crude.

Additional excise duties cost Reliance 40.4 billion rupees in the quarter, the company said, with planned plant shutdowns further impacting refinery earnings.

Gross revenues from Reliance’s retail business jumped 42.9 percent on-year to an all-time high of 649.2 billion rupees.

A footfall surge, the waning impact of the pandemic and 795 new store openings in the quarter contributed to 36 percent higher profits for Reliance’s retail business compared with last year.

Telecom arm Reliance Jio saw gross revenues rise 22.8 percent on-year to 285 billion rupees, as it added 7.7 million net subscribers in the quarter.

In August, Ambani pledged $25 billion to launch 5G networks in India, aiming to strengthen his grip on one of the world’s fastest-growing smartphone markets.

Reliance’s multi-billion-dollar fortune has been powered by oil and petrochemicals businesses, but the company has diversified into new areas including telecom and retail in recent years.

The company’s shares closed 1.16 percent lower in Mumbai ahead of the earnings announcement on Friday.

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