US Business

Nintendo Q1 net profit jumps thanks to weak yen

Nintendo said Wednesday its first-quarter net profit jumped 28 percent on-year, mainly thanks to a weaker yen, but hardware and software sales declined because of a chip shortage and Covid-19 supply issues.

The yen has plummeted more than 10 percent against the dollar this year as sky-high US inflation fuels a widening monetary policy gap — a boon for Japanese companies like Nintendo who sell products overseas.

For the three months to June, the gaming giant posted a net profit of 118.9 billion yen ($893 million), citing the positive impact of “the depreciation of the yen”.

But the company left its annual forecast unchanged, warning that the global shortage of semiconductors and other logistical snarl-ups could hamper console production and distribution.

New game releases got off to a good start, including “Nintendo Switch Sports” and “Mario Strikers: Battle League”, it said, but sales were still no match for the previous year during the pandemic gaming boom.

“Due to the effects of supply shortages in semiconductors and other components among other factors, hardware sales were down 22.9 percent year-on-year, and software sales were down 8.6 percent year-on-year,” Nintendo added.

Soaring demand for indoor entertainment during virus lockdowns sent the company’s profits soaring to an annual record of 480 billion yen in 2020-21.

The firm nearly matched that figure in the last financial year, with its blockbuster Switch console continuing to perform well and strong software sales, especially for “Mario Party Superstars” and the latest Pokemon titles.

But Nintendo now has a more cautious outlook as life returns to normal, causing the gaming craze to slow, and expects to report a 340-billion yen net profit in 2022-23.

Hideki Yasuda, senior analyst at Toyo Securities, warned that the chip shortage and supply problems linked to Covid-19 lockdowns in China would continue to pose headaches for Nintendo.

“The company is feeling significant pressure on its supply chain,” he told AFP before the earnings release. “The Switch is sold out at stores. There is not enough supply.”

It will be “very difficult” for Nintendo to hit its annual production target for the console if the problems continue, Yasuda said, after Switch sales declined 20 percent on-year in 2021-22.

However, a recession in the United States or elsewhere is unlikely to pose a major problem, he said.

“Video gaming doesn’t feel the impact of recessions. When the economy is strong, people buy products. When the economy weakens, people spend more time playing games.”

Solar electric tricycles give Zimbabwean women a lift

For years, selling eggs was a joyless business for Danai Bvochora, as most of the money she made went to cover minibus fares to the market in a rural area of Zimbabwe.

That was until an earth-brown solar-powered electric tricycle changed her life.

“We used to carry loads on our heads before. The tricycle has lessened the burden,” said the 47-year-old from Domboshava, about 40 kilometres (25 miles) north of Zimbabwe’s capital, Harare.

She carefully loads eggs onto the tricycle’s trailer before embarking on a bumpy eight-kilometre journey to the market.

“We even use it to go to church and worship,” Bvochora said, explaining a single trip to buy chicken feed from a local business centre used to cost her $12.

But charging her new solar-powered vehicle sets her back only $2.50 every two weeks, and the mother of two is now making a profit.

Bvochora is among groups of women in Domboshava, a district renowned for its picturesque hills and giant boulders, who received a tricycle last year as part of a European Union-funded project to assist small-scale farmers.

Assembled by Harare-based social enterprise Mobility for Africa, the  three-wheelers were first introduced in Zimbabwe in 2019 to help women develop their businesses, said the company’s director Shantha Bloemen. 

Transport has historically been inadequate in sparsely populated rural areas of Zimbabwe, where women often have to walk long distances carrying heavy loads on their heads to trade products — which sometimes spoil on the way in the heat.

– Electric push –

Yet the idea of addressing that with electric three-wheelers raised a few eyebrows at first, said American-born Bloemen, who is a permanent resident in Zimbabwe and lived in the country in the 1990s when she worked for UNICEF. 

“It was very lonely when we started,” Bloemen said, explaining her team had to work hard to prove to funders that the idea was viable. 

“No one was talking about electric mobility in Africa let alone for rural women.” 

Three years later, the social enterprise is planning to more than triple its current fleet of 88 motorised vehicles by the end of 2022.

It operates three solar-powered stations, where drivers can come to swap their lithium battery for a fully charged one when running low on energy — and foots the bill when something breaks.

Zimbabwe has for more than two decades faced tough economic conditions, with rural areas particularly hard hit. The country’s economy is mainly driven by the informal sector, to which Domboshava women farmers such as these belong. 

While some of the three-wheelers — nicknamed “Hamba” or “go” in the local Ndebele language — were bought by the EU and then gifted to locals, others are rented out for $5 a day.

Phyllis Chifamba, a 37-year-old mother of four, uses her rented vehicle as a taxi.

Her clients include sick people going to a clinic, pregnant women going for medical checks, and villagers and farm dwellers going to do their shopping and other errands.

“I am able to provide food for my family and pay school fees for my children with the money I make from using the Hamba,” she said.

Mobility for Africa said it was planning to expand operations to other areas. 

“African women are the most entrepreneurial, most productive but no one takes them seriously,” said Bloemen. “If we solve the transport problems, rural economies will work. Small farmers will get more produce to the market.”

Beneficiary Frasia Gotosa said her small business has improved since she has been driving to the market as her vegetables no longer rot while waiting for the bus or pushing a wheelbarrow. 

“Now I get to the market while my produce is still fresh,” she said.

Legendary MLB Dodgers broadcaster Scully dead at 94

Legendary Major League Baseball broadcaster Vin Scully, “voice” of the Los Angeles Dodgers for 67 years, died Tuesday at age 94, the club announced.

Scully, who retired in 2016, began as the Dodgers broadcaster in 1950 when the club was Brooklyn-based and followed them to Los Angeles when they moved to Southern California in 1958.

“We have lost an icon,” said Dodgers president Stan Kasten. “Vin Scully was one of the greatest voices in all of sports.

“He was a giant of a man, not only as a broadcaster but as a humanitarian. He loved people. He loved life. He loved baseball and the Dodgers. And he loved his family. His voice will always be heard and etched in all of our minds forever.

“Vin will be truly missed.”

His stay with the Dodgers was the longest by any US sports broadcaster with a single club. He covered 25 World Series and 12 no-hitters with a descriptive style and smooth vocal tone that became a trademark, delighting generations of listeners.

Scully also handled broadcast duties at NFL games and PGA Tour events in the 1970s and 1980s for CBS Sports telecasts.

The press box at Dodger Stadium has been named for Scully since 2001 and a street in the club’s Florida pre-season training complex is named Vin Scully Way.

Kansas votes to maintain abortion rights in US test case

Abortion rights advocates celebrated Tuesday as the Midwestern US state of Kansas voted to maintain the right to the procedure, the first major poll on the flashpoint issue since the Supreme Court overturned nationwide access in June.

Kansans rejected an amendment that would have scrapped language in the state constitution guaranteeing the right to the procedure and could have paved the way for stricter regulations or a ban.

The vote was widely seen as a test case for abortion rights nationwide, as Republican-dominated legislatures rush to impose strict bans on the procedure following the Supreme Court’s decision to overturn Roe v. Wade.

Pro-abortion rights campaigners and supporters celebrated the win for their side of the hotly contested US debate.

“I’m just beside myself,” campaign volunteer Anne Melia told AFP.

When polls closed at 7:00 pm (0000 GMT), Kansas Secretary of State Scott Schwab said turnout was as high as 50 percent on this referendum, local media reported, a number usually expected for a general election.

Poll worker Marsha Barrett said some 250 voters had come to a station in the Kansas City suburb of Olathe by noon — the same number it might see all day in a presidential election. 

“This election is crazy,” Barrett told AFP. “People are determined to vote.”

President Joe Biden also hailed the result. “Tonight, Kansans used their voices to protect women’s right to choose and access reproductive health care,” he said on Twitter.

“It’s an important victory for Kansas, but also for every American who believes that women should be able to make their own health decisions without government interference.”

In a separate statement, he urged Congress to “listen to the will of the American people” and pass a bill codifying the right to abortion.

Other states including California and Kentucky are set to vote on the hot-button issue in November, at the same time as Congressional midterm elections in which both Republicans and Democrats hope to use it to mobilize their supporters nationwide.

– ‘Remarkable’ result –

In Kansas, the ballot centered on a 2019 ruling by the state’s supreme court that guarantees access to abortion. 

In response, the Republican-dominated state legislature introduced an amendment known as “Value Them Both” that would have scrapped the constitutional right — with the stated aim of handing regulation of the procedure back to lawmakers.

In the opposing camp, activists said the campaign was a barely masked bid to clear the way for an outright ban — one state legislator had already introduced a bill that would ban abortion without exceptions for rape, incest or the mother’s life. 

For Ashley All, spokeswoman for pro-abortion rights campaign Kansans for Constitutional Freedom, the result of Tuesday’s referendum was “remarkable.”

“Kansans understood that this amendment would mandate government control over private medical decisions,” she said. 

But voter Sylvia Brantley, 60, told AFP earlier in the day she voted in favor of the change because she believes “babies matter, too.”

She said she wanted to see more regulations, in the hope that “Kansas will not be a marketplace for killing babies.”

Activists complained that the phrasing of the ballot question was counterintuitive and potentially confusing: voting “Yes” to the amendment meant abortion rights would be curbed, while people who wished to keep those rights intact had to vote “No.” 

– All eyes on Kansas –

While abortion rights advocates in Kansas could breathe a sigh of relief in their own state, they still are looking nervously to neighboring Oklahoma and Missouri, which are among at least eight states to have passed near-total bans — the latter making no exceptions for rape or incest — while Midwestern Indiana adopted its own rigid ban on Saturday.

Kansas Governor Laura Kelly tweeted her support for the amendment’s rejection. 

“Kansans stood up for fundamental rights today,” the Democrat said. 

“We rejected divisive legislation that jeopardized our economic future & put women’s health care access at risk.”

One voter in the town of Prairie Village, who declined to give her name, said she struggled to decide which way to vote. 

“I’ve gone back and forth the whole time,” she told AFP, saying she ultimately chose to vote “no.”

“I feel like women should have a choice, but I also don’t want full-term babies aborted,” she said. 

The outcome in Kansas means that abortion will remain permitted up to 22 weeks of pregnancy.

Kansas leans heavily toward the Republican Party, which favors stricter abortion regulations, but a 2021 survey from Fort Hays State University found that fewer than 20 percent of Kansas respondents agreed that abortion should be illegal even in cases of rape or incest.

Kansas votes to maintain abortion rights in US test case

Abortion rights advocates celebrated Tuesday as the Midwestern US state of Kansas voted to maintain the right to the procedure, the first major poll on the flashpoint issue since the Supreme Court overturned nationwide access in June.

Kansans rejected an amendment that would have scrapped language in the state constitution guaranteeing the right to the procedure and could have paved the way for stricter regulations or a ban.

The vote was widely seen as a test case for abortion rights nationwide, as Republican-dominated legislatures rush to impose strict bans on the procedure following the Supreme Court’s decision to overturn Roe v. Wade.

Results showed that votes in favor of keeping abortion in the state constitution far surpassed the votes against. This reflects that fact that a majority of Americans support abortion access, multiple studies have shown.

When polls closed at 7:00 pm (0000 GMT), Kansas Secretary of State Scott Schwab said turnout was as high as 50 percent on this referendum, local media reported, a number usually expected for a general election.

Poll worker Marsha Barrett said some 250 voters had come to a station in the Kansas City suburb of Olathe by noon — the same number it might see all day in a presidential election. 

“This election is crazy,” Barrett told AFP. “People are determined to vote.”

Other states including California and Kentucky are set to vote on the hot-button issue in November, at the same time as Congressional midterm elections in which both Republicans and Democrats hope to use it to mobilize their supporters nationwide.

In Kansas, the ballot centered on a 2019 ruling by the state’s supreme court that guarantees access to abortion. 

In response, the Republican-dominated state legislature introduced an amendment known as “Value Them Both” that would have scrapped the constitutional right — with the stated aim of handing regulation of the procedure back to lawmakers.

In the opposing camp, activists said the campaign was a barely masked bid to clear the way for an outright ban — one state legislator had already introduced a bill that would ban abortion without exceptions for rape, incest or the mother’s life. 

For Ashley All, spokeswoman for pro-abortion rights campaign Kansans for Constitutional Freedom, the amendment would have dealt a blow to “personal autonomy.”

But voter Sylvia Brantley, 60, said she voted in favor of the change because she believes “babies matter, too.”

She said she wants to see more regulations, in the hope that “Kansas will not be a marketplace for killing babies.”

Activists complained that the phrasing of the ballot question was counterintuitive and potentially confusing: voting “Yes” to the amendment meant abortion rights would be curbed, while people who wished to keep those rights intact must vote “No.” 

– All eyes on Kansas –

While abortion rights advocates in Kansas could breathe a sigh of relief in their own state, they still are looking nervously to neighboring Oklahoma and Missouri, which are among at least eight states to have passed near-total bans — the latter making no exceptions for rape or incest — while Midwestern Indiana adopted its own rigid ban on Saturday.

Voter Chris Ehly, in Prairie Village, said he voted “no” because his daughter and wife “are very adamant about the decision.”

“I want to respect them,” he said. 

Another Prairie Village voter, who declined to give her name, said she struggled to decide which way to vote. 

“I’ve gone back and forth the whole time,” she told AFP, saying she ultimately chose to vote “no.”

“I feel like women should have a choice, but I also don’t want full-term babies aborted,” she said. 

The outcome in Kansas means that abortion will remain permitted up to 22 weeks of pregnancy.

Kansas leans heavily toward the Republican Party, which favors stricter abortion regulations, but a 2021 survey from Fort Hays State University found that fewer than 20 percent of Kansas respondents agreed that abortion should be illegal even in cases of rape or incest.

Comanche warriors take spotlight in 'Predator' prequel 'Prey'

Having battled mighty heroes across time and space, the invisible extraterrestrial hunters of the “Predator” films have a new — or rather, old — foe in an 18th-century female Comanche warrior.

Prequel film “Prey,” out Friday on Hulu in the United States, is perhaps the most unlikely direction yet for the “Predator” franchise, which first hit screens with Arnold Schwarzenegger’s 1987 action classic.

Since then, the bloodthirsty trophy-hunting creatures have slaughtered humans in Central American rainforests, Los Angeles and faraway planets, even battling the monsters of the “Alien” franchise in two crossover films.

The latest installment is set centuries earlier, landing its predator in 1719 North America, where it takes up the trail of Comanche hunters, French fur-trappers and buffalo.

Director Dan Trachtenberg told a packed preview screening at Comic-Con in San Diego last month he had been inspired to make the film because “Native American and Comanche specifically have often been relegated to playing the sidekick or the villain, and never the hero.”

During the 19th century, Comanches clashed with Europeans and other Native American peoples across the Southern Plains of the modern-day United States, earning a reputation for fearsome military prowess.

Hollywood has mostly portrayed them as brutal enemies, such as in John Ford’s classic Western “The Searchers.”

In the new film, Amber Midthunder plays the heroine Naru, a young woman who must battle sexism within her own tribe as well as the film’s villain.

Disney-owned 20th Century Studios’ decision “to get behind a movie like this that has not just a female action hero, but an Indigenous female action hero… that’s something that I don’t recall seeing, maybe possibly ever,” she said.

The film’s setting is “a real time in history for us, that is not that long ago, (when) I had ancestors walking around doing cool stuff, you know?”

While “Prey” was shot in English, French and Comanche, its Native American actors later re-recorded their lines so that the whole movie can be played in Comanche — a first for a major studio film, according to producer Jhane Myers, who is herself Comanche.

For Midthunder, “what I really honestly thought about every day I came to work, was not wanting to let down Comanche people first and foremost, but specifically Indigenous people.”

“And that if it did work, and we did pull it off, then how great that would be for us — to have something where we feel like we can look at a movie and feel represented and reflected in a way that you’re proud of,” she said.

“Because we don’t often get that.”

Most Asian markets rise but Taiwan fears keep confidence in check

Asian markets mostly rose Wednesday after the previous day’s reverse, with focus on House Speaker Nancy Pelosi’s visit to Taiwan, which has further strained already tense China-US ties and raised concerns about the long-term impact on the global outlook.

The highest profile trip to the island in 25 years by a US politician was met with condemnation from Beijing, which warned of serious economic and military consequences.

Taiwan said more than 20 Chinese military aircraft had flown into the island’s air defence identification zone — an area wider than its territorial airspace that overlaps with part of China’s air defence zone. The People’s Liberation Army was also due to conduct a series of drills.

Beijing views the self-ruled island as part of its territory to be seized by force if necessary.

No one expected it would spark a conflict, but the crisis sent shivers through trading floors that were already on edge over a range of issues including the Ukraine war, surging inflation, rising interest rates and slowing economic growth.

However, ahead of a meeting between Pelosi and Taiwan President Tsai Ing-wen most markets saw a recovery, with Hong Kong and Shanghai among the best gainers.

Tokyo, Singapore, Seoul, Wellington and Manila were also up, though Taipei, Sydney and Jakarta edged down.

The “short-term implication may be ‘sell the rumour, buy the news’ as the official response so far remains much more restrained versus what the market has feared,” Xiadong Bao, at Edmond de Rothschild Asset Management, said.

“But the mid/long-term implication can be more significant, which may be currently overlooked by the market. The official return of the US influence in Asia-Pacific will inevitably accelerate US-China decoupling.”

Analysts are also keen to find out what the White House’s response will be, particularly ahead of mid-term elections in November with anti-China rhetoric playing well with voters, but with President Joe Biden keen not to further harm economic ties.

SPI Asset Management’s Stephen Innes added that the US administration was probably not likely to cut Trump-era tariffs before then.

The positive start to the day in Asia followed a drop on Wall Street, where the Taiwan crisis was compounded by a series of hawkish comments from Federal Reserve officials indicating more big interest rate hikes could still be in the pipeline.

Stocks rallied last week and Treasury yields dropped after boss Jerome Powell hinted the bank could begin slowing down, but the latest remarks suggest a hoped-for dovish pivot might not be coming just yet as inflation remains stubbornly high.

The latest developments have raised concerns that the volatility on markets would likely continue for some time.

“It’s hard to see any meaningful upside in equities right now,” said Xi Qiao, of UBS Group. “The market is going to trade pretty mixed, stay choppy until we have a little bit more certainty,” she told Bloomberg News.

– Key figures at around 0230 GMT –

Tokyo – Nikkei 225: UP 0.5 percent at 27,740.97 (break)

Hong Kong – Hang Seng Index: UP 0.9 percent at 19,864.26

Shanghai – Composite: UP 0.6 percent at 3,204.47

Taipei – TAIEX: DOWN 0.1 percent at 14,732.65

Dollar/yen: UP at 133.54 yen from 133.10 yen Tuesday

Euro/dollar: UP at $1.0174 from $1.0168

Pound/dollar: UP at $1.2165 from $1.2163

Euro/pound: UP at 83.64 pence from 83.57 pence

West Texas Intermediate: UP 0.1 percent at $94.50 per barrel

Brent North Sea crude: FLAT at $100.54 per barrel

New York – Dow: DOWN 1.2 percent at 32,396.17 (close)

London – FTSE 100: DOWN 0.1 percent at 7,409.11 (close)

US Senate passes act to help veterans with health issues from toxic burn pits

US senators on Tuesday approved benefits for veterans exposed to toxic burn pits, which President Joe Biden, who believes his son Beau died of such exposure, has called a “decisive and bipartisan win.”

Open trash fires have been commonly used by the US military in conflicts after the September 11, 2001 attacks, and are lit to get rid of everything from plastic bottles to human waste and old tires — all incinerated with jet fuel.

But the fumes from these holes in the ground are suspected of causing a range of illnesses among soldiers, from chronic respiratory ailments to a variety of cancers.

Biden believes the pits are at the root of the brain cancer that claimed the life of his son Beau, who served in Iraq in 2008.

By 86 votes to 11, the Senate passed the PACT Act, which expands the window of eligibility for free medical care and ensures that, for certain respiratory illnesses and cancers, veterans will get disability benefits without having to prove they were made sick by exposure to the pits. 

The passage came just days after Republican senators had rejected the bill, triggering withering condemnation from veterans groups and activists, including the outspoken comedian Jon Stewart, who had championed the cause.

Biden welcomed the approval of the act, saying, “While we can never fully repay the enormous debt we owe to those who have worn the uniform, today, the United States Congress took important action to meet this sacred obligation.”

He said the new law would be “the biggest expansion of benefits for service-connected health issues in 30 years and the largest single bill ever to comprehensively address exposure to burn pits.”

– ‘Proper care’ for exposure –

Vice President Kamala Harris said that “too many of our veterans and their families have long waited for this day. With today’s passage of the PACT Act, our veterans will finally see an expansion of their health benefits and proper care for burn pit exposure. They deserve it.”

The Department of Veterans Affairs estimates that some 3.5 million US service members were exposed to toxic smoke in Afghanistan, Iraq or other conflict zones, and more than 200,000 veterans have registered on lists of people who came into contact with burn pits.

The Pentagon funded a $10 million study in 2018 that concluded there was “a potential cause and effect relationship between exposure to emissions from simulated burn pits and subsequent health outcomes.”

Until now, nearly 80 percent of veterans’ requests to have suspected burn pit ailments acknowledged by the government were rejected, according to the Iraq and Afghanistan Veterans of America (IAVA).

A poll by the organization found that 82 percent of those questioned said they were exposed to burn pits or other airborne toxic chemicals. 

Of these people, 90 percent said they are or may be suffering from symptoms linked to that exposure.

Apple TV+ counts its 'Luck' as fallen 'Toy Story' exec makes comeback

Like all good animated family movies, “Luck” has a thoroughly optimistic premise: that no matter how hopeless or dire your circumstances may seem, something good will eventually come of it.

Apple TV+ will be hoping the same is true for John Lasseter, the former Pixar guru who resigned under a cloud of #MeToo harassment claims, and later became head of the new Skydance Animation.

“Luck” is that studio’s first film, available to stream Friday, which follows 18-year-old girl Sam and a talking black cat called Bob on their adventures in the fantastical Land of Luck.

In this land of perfect fortune, all the world’s good and bad luck is produced by magical creatures including leprechauns, dragons, unicorns and goblins, who then funnel it down to Earth.

The movie features a voice cast of Simon Pegg, Whoopi Goldberg and Jane Fonda, along with Broadway star Eva Noblezada in the lead role of Sam, the world’s unluckiest girl.

The cast could have been even starrier, had Emma Thompson not very publicly withdrawn in 2019 over the hiring of Lasseter, publishing her resignation letter in the Los Angeles Times.

It was a decision that other cast members have mulled over, with Pegg telling AFP he “initially” had qualms before deciding to proceed.

“It’s a dangerous thing to just write people off immediately, I think, if there’s some accountability, if there’s some acknowledgement and acceptance,” he told AFP.

– ‘Complicated’ –

Lasseter, who transformed Pixar from a small Lucasfilm graphics department into the world’s most successful animation studio with hits including “Toy Story,” was accused of misconduct at the 2017 height of the #MeToo movement.

The powerful studio president apologized to “anyone who has ever been on the receiving end of an unwanted hug,” and for “falling short” in ensuring a culture of “trust and respect.” 

The following year, he resigned, acknowledging in an internal memo that he had made staff feel “disrespected or uncomfortable.”

Multiple sources alleged that Lasseter was a heavy drinker at company social events who would try to kiss women, place his hands on their thighs and hug them in meetings. 

In her letter, Thompson said the case of Lasseter was “complicated.”

Upon his hiring by Skydance, Thompson wrote that “any Skydance employees who don’t want to give him a second chance have to stay and be uncomfortable or lose their jobs.”

For Pegg, it was important that Lasseter had “admitted accountability for the things that had been aimed at him.”

“We’re all doomed if we are banished for stuff that we regret and apologize for, and mean that apology. That’s the most important thing.”

Goldberg had a more succinct take: “Everybody steps in it sometime,” she told AFP.

– ‘Real-world stakes’ –

In the film, Sam — an orphan who has reached adulthood without finding a permanent foster home — follows Bob the cat (Pegg) into the Land of Luck in order to find a lucky penny.

She hopes this magical coin can help her young friend Hazel find the “forever family” she never had.

Of course, getting her hands on it is anything but straightforward, taking Sam on a physical journey through the realm’s whirring Rube Goldberg machines and glittering waterfalls — and an emotional one.

“I really love that element. It’s a film which is the most outrageous environments and concepts but paired with genuine real-world stakes about friendship,” said Pegg.

“Sometimes what appears to be bad luck can end up being good luck. Not least for Sam, who apparently lives an entire life of bad luck, only to go on this adventure and find exactly what she’s looking for.”

For the filmmakers, the withdrawal of Thompson led to the hiring of Oscar-winner and social campaigner Jane Fonda, playing an elegant dragon who is the CEO of the luck-making operation. 

“When Jane joined the cast, I looked to her as being such a legendary activist and feminist,” said Pegg.

“I felt like she was a great person to take the lead from. And it was her involvement in the film that cemented my decision to do it.”

OPEC+ meeting to test Biden's Saudi oil entreaty

The OPEC+ group of major oil exporters meets Wednesday to discuss its output strategy after US President Joe Biden lobbied Saudi Arabia to boost production to tame energy-fuelled inflation.

The cartel led by Saudi Arabia and Russia has resisted US pressure to ramp up production significantly so far after Moscow’s invasion of Ukraine sent oil prices soaring.

After cutting production in 2020 in response to falling prices during the Covid pandemic, OPEC+ began to modestly raise production last year and has renewed the policy every month.

Its output is supposed to have returned to pre-Covid levels — but only on paper as members of the 23-nation group have struggled to meet their quotas.

Craig Erlam, analyst at OANDA trading platform, said the OPEC+ meeting will show whether “President Biden has any influence in the cartel at all”.

Biden made a controversial trip to Saudi Arabia in July in part to convince the kingdom to loosen the production taps to stabilise the market and curb rampant inflation.

The US president met with Crown Prince Mohammed bin Salman despite his promise to make the kingdom a “pariah” in the wake of the 2018 killing of journalist Jamal Khashoggi.

Biden said after his meetings with Saudi officials that he was “doing all I can” to increase the oil supply.

“Saudi Arabia and its allies will have to decide whether to heed Joe Biden’s request and raise production or show solidarity towards Russia by staying put,” said Tamas Varga, analyst at oil broker PVM.

Stephen Innes, managing partner at SPI Asset Management, said OPEC+ is “unlikely to announce a significant production increase given growing recession fears” and a drop in oil prices since early June.

– More cautious? –

After reaching close to $140 per barrel in early March, crude prices have slid further this week following weak economic data from China, the world’s biggest importer of oil.

The main contracts, Brent and WTI, are now trading below $100 per barrel.

“The noticeable price slide since yesterday (Monday) could make OPEC+ more cautious,” Commerzbank said in a note.

The German bank said news that Libyan production has returned to normal levels for the first time in nearly four months could also serve as an argument against a bigger expansion in output.

OPEC+ began to add around 400,000 barrels per day to the market last year, renewing the policy every month until June, when it upped production by almost 650,000 barrels per day.

Analysts say the group has now reversed cuts totalling 9.7 million barrels per day that had been agreed in 2020, though only in theory.

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