World

Smart farming tech offers sprout of hope in Greece

Eyes glued to his mobile phone, farmer Sotiris Mournos pores over the latest microclimate and humidity data about his fields on the plain of Imathia in northern Greece.

The high-tech farming techniques he uses are making slow progress in Greece’s tradition-bound and struggling agricultural sector, but growers like him see them as key to their future. 

Mournos, 25, employs a Greek smart-farming app to boost production of his family’s cotton fields and fruit trees.

Using real-time data recorded by a weather station, he can analyse and correlate the impact of weather conditions on his 10-hectare (nearly 25-acre) cotton plantation.

“We’ve managed to reduce the use of fertiliser and irrigation… (and thereby to) increase the financial return” of the farm, said Mournos, who gave up studying computer science at university to devote himself to the family holding in the town of Platy. 

Measuring the humidity or the nitrogen level in the soil helps to curb the excessive use of fertilisers and saves water, he notes.

As in many other southern European countries, Greece’s agricultural sector is chronically short of water and smart farming could help deal with that problem.

– Boosting yields –

The sector has also lost a major share of its available labour in recent decades, as young people snub farm work for better-paid jobs in services such as tourism.

Agriculture now represents just five percent of Greece’s GDP, half what it was 20 years ago. 

The government has budgeted 230 million euros ($231 million) over the next three years to revive the country’s farming industry.

Most of that derives from the European Union’s Common Agricultural Policy innovation fund. 

“Most young people in my village prefer other jobs and have given up working in the fields,” Mournos told AFP. 

But he is making a go at farming, aiming to work smart by using the farming app for several years now.

It means he uses 40 percent less fertiliser on his cotton field and can avoid using two pesticide sprays — altogether saving 9,000 euros (about $9,000) — without affecting production rates. 

Analysts say the farming app is not widely used in Greece although interest is gradually picking up.

But persuading farmers who may be less technologically minded than Mournos to embrace it faces myriad challenges.

A key hurdle is the small size of Greek farms — less than 10 hectares on average — and the country’s largely mountainous terrain.

Greek farms are often family businesses or involve rented fields, making investment in tools and practices less appealing.

– Convincing farmers –

Meanwhile, an “endemic” lack of cooperation among farmers prevents them sharing costs, says Aikaterini Kasimati, an agricultural engineer at the University of Agronomy in Athens.

As a result, Greece lags far behind other European states in the use of smart farming, says Vassilis Protonotarios, marketing manager of Neuropublic, a company specialising in digital agriculture.

He said farmers could benefit from new technology without having to invest in expensive equipment or have “specialised digital skills”.

Then, there is the difficulty of convincing farmers to try something new.

Organic farmer Thodoris Arvanitis says his colleagues are not interested in new technologies because they don’t know enough about them and prefer long-used conventional methods. 

“Farmers won’t go after technology when they don’t have enough money for fuel,” he added, at his farm in the small town of Kiourka, some 30 kilometres (nearly 20 miles) north of Athens.

Attitudes may change in time as climate change puts additional pressure on farm costs, says Machi Symeonidou, an agronomist and creator of the agricultural IT startup Agroapps. 

The war in Ukraine and its impact on global food supplies also shows that it is increasingly necessary to produce food at a local level, said agricultural engineer Kasimati. 

“We see a constant degradation of fields and a fall in yield,” she said, adding that water was also becoming expensive.

“But as the technology becomes simpler and cheaper, these tools will see more use,” she added.

Macron accused of 'U-turn' over Maduro encounter

French President Emmanuel Macron faced accusations Tuesday of making a major foreign policy reversal after an apparently cordial encounter with his Venezuelan counterpart Nicolas Maduro on the sidelines of the COP27 climate summit in Egypt.

The one-and-a-half-minute handshake and chat on the sidelines of the summit in Sharm el-Sheikh on Monday may have been brief, but they were a stark contrast to previous comments by Macron, who in 2019 had described Maduro as “illegitimate.”

“I would be happy if we could talk to each other for longer to engage in useful bilateral work for the region,” Macron told Maduro, according to a video recording of the encounter.

Addressing Maduro as “president,” he added that “I will call you.”

France, the US and several European allies never recognised Maduro’s re-election to a second term in 2018 elections and instead recognised his rival Juan Guaido as acting president.

But Guaido’s influence has ebbed after Maduro clung onto power, and Western countries are also keenly aware of Venezuela’s status as a key OPEC oil producer at a time of global energy crisis.

In 2019, Macron had recognised Guaido as acting president, describing Maduro’s election as “illegitimate” and calling for “a restoration of democracy” in the country.

“Excellent handshake with the President of France Emmanuel Macron,” Maduro tweeted after the meeting. “The doors of Venezuela are open for the French people.”

“Macron’s Big U-turn on Maduro’s Venezuela,” commented France’s left-wing daily Liberation.

The leader of France’s ultra-left wing France Unbowed party (LFI) Jean-Luc Melenchon, a longtime admirer of Venezuela under Maduro and his predecessor Hugo Chavez, tweeted that the “need for oil makes people polite.” 

He said that Macron had “finally” recognised the election of Maduro.

The encounter also came as Macron prepares this week to host Colombia’s first left-wing President Gustavo Petro, who has renewed diplomatic relations with its neighbour Venezuela and wants to normalise ties after a three-year rupture.

Venezuela is also sending a senior official to attend the Paris Peace Forum, a major annual conference backed by Macron that starts on Friday.

During the discussion between the two presidents, Maduro said that “France should play a positive role” in Latin America.

The occasionally surreal exchange between the two men — where the presidents rigidly stare at each other — also saw Maduro declare that “we have very good friends in common” and ask Macron “when do you visit us?”

Asked if the encounter represented a change of policy by France, the French foreign ministry said all questions should be addressed to the Elysee.

Tax oil firms to pay for climate damage, island nations say

A group of small island nations joined calls on Tuesday for a windfall tax on oil companies to compensate developing countries for the damage caused by climate change-induced natural disasters.

Developing nations have pressed their case at the UN’s COP27 climate summit in Egypt for the creation of a “loss and damage” fund, arguing that rich nations are to blame for the biggest share of greenhouse gas emissions.

Oil companies have scored tens of billions of dollars in profits this year as crude prices have soared in the wake of Russia’s invasion of Ukraine.

“It is about time that these companies are made to pay a global COP carbon tax on these profits as a source of funding for loss and damage,” the prime minister of Antigua and Barbuda, Gaston Browne, told fellow leaders at the summit in the seaside resort of Sharm el-Sheikh.

“While they are profiting, the planet is burning,” said Browne, who was speaking on behalf of the 39-nation Alliance of Small Island States, many of whose very existence is threatened by rising sea levels and increasingly intense tropical storms.

Barbados Prime Minister Mia Mottley called Monday for a 10 percent tax on oil companies to fund loss and damage.

The contentious issue of loss and damage was added to the COP27 agenda after intense negotiations.

The United States and European Union have dragged their feet on the issue in the past, fearful of creating an open-ended reparations regime.

– ‘Fossil fuel non-proliferation’ –

Browne acknowledged that the adoption of the agenda was “just one step” in the process, which gives a two-year space to negotiate.

“We look forward to the establishment and officialisation of the fund by 2024,” he said.

Browne also said a group of four island nations had registered a commission with the UN to “explore the responsibility of states for injuries arising from their climate actions and breaches in the obligations”.

“As small countries this is a new dynamic pathway of justice where the polluter pays,” he said.

Browne said small island states “will fight unrelentingly this climate crisis, and this includes fighting in the international courts and under international law”.

Another island nation, Tuvalu, announced it was joining calls for a fossil fuel non-proliferation treaty, an initiative that seeks to stop new investments in coal, oil and gas globally and phase out production.

“The warming seas are starting to swallow our lands –- inch by inch,” Tuvalu’s Prime Minister Kausea Natano said in a statement.

“But the world’s addiction to oil, gas and coal can’t sink our dreams under the waves,” he said.

A Pacific neighbour, Vanuatu, was the first nation to join the treaty in September.

“Vanuatu and Tuvalu are the first countries to call for a new treaty as a companion to the Paris Agreement to align oil, gas and coal production with a global carbon budget,” said Tzeporah Berman, chair of the Fossil Fuel Non-Proliferation Treaty initiative.

“We will look back on this in history as the moment of reckoning, with overproduction that is locking in further emissions and holding us back from bending the curve,” Berman said.

New rescue ship lets off migrants in Italy as others wait

Nearly 90 migrants were allowed to disembark Tuesday from a charity ship in a southern Italian port even as hundreds of others aboard three other vessels awaited safe harbour.

The ship Rise Above, operated by German humanitarian group Mission Lifeline, docked early Tuesday in Reggio Calabria at the toe of Italy, the nonprofit said. 

“We were able to disembark all 89 survivors”, the charity said — all migrants rescued in the Mediterranean after setting off from North Africa on overcrowded boats bound for Europe.

But around 250 other migrants still languished aboard two other rescue ships about 100 kilometres away in Sicily, after being refused permission to leave by Italian authorities.

Italy’s new government, led by far-right leader Giorgia Meloni, has vowed to stop the tens of thousands of migrants who land on its shores every year.

At the weekend, some 500 migrants were allowed to come to shore at Sicily’s eastern port of Catania from the Geo Barents and Humanity 1 charity ships, but about half that number were refused.

They remain in a state of limbo, with rights groups challenging an Italian decree that permitted the Humanity 1 to dock only for the time it took to help emergency cases, calling it illegal.

As NGOs warned the remaining migrants were under severe psychological strain, two Syrians who on Monday jumped from the Geo Barents slept overnight at the dock.

“From the time they dove into the sea to protest the decision of the Italian authorities, they spent the entire night in the open on the pier refusing water and food this morning,” said Doctors Without Borders (MSF), operator of the Geo Barents. 

Members of the Red Cross performed a medical exam on the men Tuesday and one was subsequently taken away in an ambulance with a high fever, the group said. 

MSF’s chief of mission, Juan Matias Gil, said the worst for the migrants was the uncertainty, not knowing what will happen next. 

“No one can deal with this, at any level,” Gil said. “They can really feel it and their anxiety grows every day.”

– Exhaustion and worse –

Migrants allowed to disembark from the Rise Above on Tuesday were suffering from seasickness and exhaustion, Mission Lifeline said, while six people had been evacuated earlier after being deemed medical emergencies. 

Meanwhile, a fourth charity rescue ship, the Ocean Viking, remains off the coast of Sicily, waiting for permission to dock.

Some 234 migrants are aboard that vessel, run by European charity SOS Mediterranee under a Norwegian flag.

Ships chartered by non-government organisations regularly pick up migrants from overcrowded boats seeking to cross from North Africa to Europe.

However, their passengers accounted for only 14 percent of the more than 87,000 people who have landed in Italy so far this year, according to the interior ministry.

Italian Interior Minister Matteo Piantedosi said Monday the government is acting “with humanity but firmly based on our principles.”

Piantedosi said he was working at a national and European Union level to reduce the burden on Italy after years of complaints from Rome that the European Union was not doing enough.

Norway princess gives up royal duties for alternative medicine

Norway’s Princess Martha Louise on Tuesday relinquished her royal duties in order to focus on her alternative medicine business with her fiance, a self-proclaimed shaman.

The 51-year-old princess’ relationship with Durek Verrett, a popular Hollywood spiritual guru, caused waves in Norway after the African-American “sixth-generation shaman” suggested in his book “Spirit Hacking” that cancer was a choice.

He also sells a $222 medallion on his website dubbed a “Spirit Optimizer”, which he claims helped him overcome Covid-19.

A poll in September found 17 percent of Norwegians now have a lower opinion of the generally popular royal family, nearly all citing the princess and the shaman as the reason.

In a video posted to Instagram on Tuesday, the princess said she was stepping down “in order to bring calm to the Royal House”.

The palace said the princess was “relinquishing the role as royal patron… and will not be representing the royal house at the present time”.

However, “in accordance with the king’s wishes, the princess will keep her title”.

King Harald, speaking to the press later with Queen Sonja by his side, said he was “sorry” the princess would no longer represent the royal family.

“She’s very good at it,” he said.

– ‘Agreed to disagree’ –

Martha Louise, who claims to be able to speak with angels, lost her honorific “Her Royal Highness” title in 2002 when she chose to work as a clairvoyant.

In 2019, the divorced mother of three agreed not to use her title as princess in her commercial endeavours.

But since becoming engaged to Verrett in June, the couple’s belief in alternative therapies, often featured on their social media channels, has raised eyebrows in no-nonsense Norway.

Several groups of healthcare professionals had already dropped the princess as a patron because of her fiance’s penchant for alternative medicine. 

“He’s an imposter, a charlatan and a quack,” columnist and humourist Dagfinn Nordbo has said.

According to the agreement announced Tuesday, the couple will refrain from any association with the royal family in their social media channels, media productions and commercial activities.

“This is intended to draw a dividing line that more clearly separates commercial activity from the Royal House of Norway”, the palace said.

Speaking of Verrett, the king told reporters that following discussions between all parties, “both we and he have a greater understanding of what this is all about, and we’ve agreed to disagree”.

“We can live with our differences”, he added.

– ‘Spirituality important’ –

The royal family said it had “great confidence in the Norwegian health service and the Norwegian health authorities”, stressing the importance of “established medical knowledge and scientific research”.

Martha Louise said she was “aware of the importance of research-based knowledge”.

“I also believe, however, that there are components of a good life and sound physical and mental health that may not be so easy to sum up in a research report.”

She said “spirituality, intimacy with other people and animals, yoga and meditation” could be important supplements, as could “a warm hand, an acupuncture needle, a crystal”.

It was key “to distinguish between myself as a private person on the one hand and as a member of the royal family on the other”, she said.

She hoped her personal views would be treated as her own “without others having to answer for them”.

The king said he thought Verrett — whom he described as “a great guy and very funny” — also now had a better understanding of the role of the monarchy in Norway.

“Americans don’t understand the meaning of it. They don’t,” he said with a laugh.

The palace said that once the princess and Verrett were wed, her new husband would become a member of the royal family but would not hold a title or represent the monarchy.

French cardinal faces legal probe over child abuse: prosecutor

French prosecutors said Tuesday that they had opened an inquiry into child abuse by a cardinal after he confessed publicly to “reprehensible” acts with a 14-year-old girl in the 1980s.

Jean-Pierre Ricard, a retired bishop made a cardinal by Pope Francis in 2016, was named among 11 senior clergymen who face sexual abuse allegations in an announcement by the French Catholic Church on Monday. 

In a message read out at a conference of bishops, Ricard admitted that “35 years ago, when I was a priest, I behaved in a reprehensible way towards a girl of 14. There is no doubt that my behaviour caused serious and long-lasting consequences for that person.”

The most serious sexual offences in France such as rape usually have a statute of limitations of 30 years, but the period to bring charges can be extended if the victim was a minor at the time of the offence.

The maximum period for charges for sexual abuse of a minor is usually 20 years from the date at which the victim turns 18. 

“A preliminary enquiry has been started to verify the facts of this revelation,” prosecutor Dominique Laurens told AFP in the southern city of Marseille, where Ricard said the abuse took place. 

Judicial sources in Marseille said the bishop of Nice had alerted prosecutors on October 24, after Ricard told him that he had “kissed” a teenage girl.

The confession by the 78-year-old was received “like a shock” by fellow church leaders, the head of the Bishops’ Conference of France, Eric de Moulins-Beaufort, told reporters on Monday at a meeting in the southwestern town of Lourdes.

Ricard served as a bishop in Coutances, Montpellier and most recently in the western city of Bordeaux from 2001 to 2019, when he retired.

“It’s a good thing that he confessed and acknowledged it,” a 70-year-old parishioner in Bordeaux, Martine, told AFP when asked for reaction. 

She said it “was a shame that in the Catholic religion we don’t allow priests, archbishops and other people to get married.” 

– Other cases –

Another 10 bishops, either retired or still serving, face sexual abuse allegations, de Moulins-Beaufort said on Monday in the latest revelations of sexual abuse in the upper reaches of the French church.

French Catholics were rocked last year by the findings of an inquiry that confirmed widespread abuse of minors by priests, deacons and lay members of the Church dating from the 1950s.

It found that 216,000 minors had been abused by clergy over the past seven decades — a number that climbed to 330,000 when claims against lay members of the Church are included, such as teachers at Catholic schools.

That led French bishops to jointly kneel in repentance in November last year during a meeting in Lourdes, the spiritual home of French Catholics.

“It’s more than an earthquake,” Christine Pedotti, the head of the Temoignage Chretien magazine, told AFP. “How can we believe people who were on their knees in Lourdes a year ago?”

She said she feared another exodus of church members, which would deepen the steadily declining influence of the Catholic church in France.

Other senior French clergy have become embroiled in sexual abuse scandals that have undermined the Catholic church in countries from Ireland to Australia to the United States over the last decade. 

Retired French bishop Michel Santier was sanctioned by the Vatican last October for “spiritual abuse having led to voyeurism involving two adult men.”

Another French cardinal, Philippe Barbarin, was accused of covering up for a priest who had assaulted dozens of scouts between 1986 and 1991.

He was convicted in 2019 for not reporting the abuse, but had the guilty sentence overturned a year later. 

In 2020, he resigned from his role as a cardinal, a position which is usually held for life.

Ricard is expected to tender his resignation to the pope.

Biden agenda at stake — and Trump in the wings — as Americans vote

Americans headed to the polls on Tuesday in midterm elections in which Republicans are chasing a congressional majority that would paralyze President Joe Biden’s agenda and serve as a springboard for another White House run by Donald Trump.

Biden’s Democrats are facing a gargantuan struggle to hang on to Congress, after a race the president has cast as a “defining” moment for US democracy — while Trump’s Republicans campaigned hard on kitchen-table issues like inflation and crime.

“It’s Election Day, America,” the 79-year-old Biden tweeted as polling stations opened on the East Coast. “Make your voice heard today. Vote.”

At stake are all 435 seats in the House of Representatives, one-third of the Senate and a slew of state and local positions. Five states are holding referendums on abortion — California, Vermont, Kentucky, Montana and Michigan.

First results will begin trickling in after 7:00 pm (0000 GMT) but with razor-thin margins in some key congressional races a full picture may not be available for days or even weeks, setting the stage for likely acrimonious challenges.

The bitter political divide in the country was on the minds of many voters as they cast their ballots.

“I hope that we’ll get a better mix of candidates and that both sides can actually work together to solve our issues instead of fighting against one another,” said Sarah Hunt, a 41-year-old teacher as she cast her ballot in New York.

“There’s so much polarization and misinformation that I’d like to make sure that my voice is heard,” said Robin Girdhar, a 61-year-old doctor at a polling station in Pittsburgh, Pennsylvania.

Trump — who has all but announced he will seek the White House again in 2024 — grabbed the election eve spotlight to flag “a big announcement” on November 15, while Biden made a final appeal to Democrats to turn out en masse.

“The power’s in your hands,” Biden told a rally near the capital. “We know in our bones that our democracy is at risk and we know that this is your moment to defend it.”

Polls show Republicans in line to seize the House, which would allow them to snarl the rest of Biden’s first term in aggressive investigations and opposition to spending plans.

– ‘Giant red wave’ –

Returning to the White House Monday night, Biden told reporters he believed Democrats would hold on to the Senate but it would be “tough” to retain the House and his life in Washington may become “more difficult.”

If both the House and Senate flip, Biden would be left as little more than a lame duck and his legislative agenda would be frozen. 

That would raise questions over everything from climate crisis policies, which the president will be laying out at the COP27 conference in Egypt this week, to Ukraine, where Republicans are reluctant to maintain the current rate of US financial and military support.

An influx of far-right Trump backers in Congress would also accelerate the shift that has been taking place inside the Republican Party since the former real estate tycoon stunned the world by defeating Hillary Clinton for the presidency in 2016.

Despite facing criminal probes over taking top secret documents from the White House and trying to overturn the 2020 election, Trump has been using the midterms to cement his status as the de facto Republican leader and presumptive presidential nominee.

In a typically dark, rambling speech to supporters in Dayton, Ohio, the 76-year-old Trump said, “if you support the decline and fall of America, then you must, you absolutely must vote for the radical left, crazy people.”

“If you want to stop the destruction of our country, then tomorrow you must vote Republican in a giant red wave,” he said — before teasing his 2024 announcement.

Across the country voters called on their fellow citizens to cast their ballot in the midterms, which historically have low turnout.

“Vote, vote, vote,” Luke Osuagwu, a 24-year-old student, told AFP in Atlanta, Georgia.

“Abortion is probably the biggest issue for me,” said Alexandra Ashley, a 30-year-old lawyer as she cast her vote in Pittsburgh. “I want to make sure it’s available for everybody and safe.”

– 44 million early votes –

More than 44 million ballots were cast through early voting options, meaning the outcome had already begun to take shape before election day.

Senate races in Pennsylvania, Nevada, Arizona, Georgia, Wisconsin, New Hampshire and Ohio are expected to be close and any one of them could swing the balance of power in the chamber.

Trump has already claimed — baselessly — that swing state Pennsylvania “rigged” the midterms — reprising his playbook from the 2020 election which he falsely asserted was stolen by Biden.

Citing growing support for voter conspiracy theories among Trump and his Republicans, as well as their push to curb abortion access, Biden has warned that democracy and basic rights are at stake on Tuesday.

Republicans have countered that a vote for Democrats means more soaring inflation and rising violent crime, seeking to make the midterms a referendum on the president.

The outcome will likely determine whether Biden, who turns 80 this month and is the oldest president ever, will seek a second term in 2024 — or step aside.

S.Africa slams 'out of reach' climate aid for poorer nations

South Africa’s president, whose coal-dependent country is among the world’s top polluters, Tuesday criticised international funders for making it difficult for poorer nations to access aid to fight climate change.

Support from multilateral organisations “is out of reach of the majority of the world’s population due to lending policies that are risk-averse and carry onerous costs as well as conditionalities,” Cyril Ramaphosa told the UN COP27 climate summit.

Addressing the meeting in Egypt’s Sharm el-Sheikh, he said “funding institutions need to transform … the way in which they fund projects that will enable us to develop with regard to climate change”.

According to a UN-backed report released Tuesday, developing countries and emerging economies need investments well beyond $2 trillion annually by 2030 if the world is to stop the global warming juggernaut.

South Africa, one of the world’s top 12 polluters, last week revealed that it will require about $98 billion over the next five years to transition to net zero.

Last year, at the COP26 in Glasgow, Pretoria secured $8.5 billion in loans and grants from a group of rich countries towards its green transition — very little of which is grant funding.

“We found in the end that only 2.7 percent was grant money, other portions were concessional loans …offered by development funding institutions as well as normal commercial institutions,” Ramaphosa told a news conference after his address.

He called on rich nations to honour their commitments “because failing to honour these commitments breaks trust and confidence in the process”.

“More industrialised countries need to live up to the commitments they have made, knowing fully well that they have, through the development of their own economies, contributed a great deal more to the damage that many countries on our continent now labour under,” he told reporters.

The head of state assured the summit that South Africa, which generates about 80 percent of its electricity through coal, was on course to retire several of its ageing coal-fired power plants in the next eight years.

The World Bank last week granted South Africa $497 million to decommission one of its largest coal-fired power plants and promote renewable energy.

“Because South Africa already carries a fairly sizeable loan burden that it has to service … we require more grant funding” Ramaphosa said.

South Africa will require at least $500 billion dollars to achieve carbon neutrality by 2050, according to the bank.

burs-zam/sn/fz

Renault unveils sweeping overhaul for electric future

French automaker Renault unveiled a sweeping overhaul on Tuesday in a bid to attract investors as it expands its electric vehicle business amid an accelerating market.

Under the green revamp, Renault is to split its operations in two, with a new electric vehicle unit and a subsidiary for petrol, diesel and hybrid cars that will pair up with China’s Geely. 

The carmaker’s flagship division following the reorganisation will be Ampere, which aims to produce a million electric vehicles by 2031, the group said ahead of an investor day in Paris.

The new division will employ around 10,000 staff in France.

Renault is the latest automaker seeking to finance a shift towards electric.

The market for the greener vehicles is expected to grow rapidly in response to consumers’ worries about climate change, putting pressure on manufacturers to develop less polluting products.

The European Union last month agreed to phase out new CO2-emitting vehicles by 2035, a move set to turbo-charge the production of electric prototypes on the continent.

Renault follows the likes of US automaker Ford and Germany’s Volkswagen.

The latter launched its premium sports brand Porsche on the stock market in September to finance its investment in electric, connected and autonomous cars.

Ampere will produce the new Renault 5 and Renault 4 among other models in northern France and will target more than 30-percent growth annually over the next eight years and to break even by 2025.

Renault said it would list Ampere on the Euronext Paris stock exchange in the latter half of 2023 and invite investment but will retain “a strong majority”.

The group — in which the French state and carmaker Nissan each own 15 percent — has still to outline the part that its Japanese partner will play in the new electric division.

– Financing electric drive – 

For hybrid and internal-combustion vehicles, Renault plans to combine its technological, manufacturing and research and development activities with Chinese automaker Geely.

The 50-50 partnership with the Chinese group — owner of Volvo — will develop and produce engines, gear boxes and other components for hybrid and petrol and diesel vehicles.

Volvo Cars said separately it will cede its stake in its internal combustion engine partnership with Geely, which will be folded into the partnership with Renault that will be called “Horse”.

It will employ 19,000 people across Europe, China and South America, and have 17 factories and five research and development centres.

Turnover for the division is expected to grow by four percent by 2027, the group said.

“We are designing an agile and innovative organisation to manage the volatility and accelerated technological evolution of our time,” said Renault chief executive Luca de Meo.

The group aims to see an operating margin — a key profitability yardstick — of above eight percent in 2025.

Shares in Renault were down 2.6 percent in afternoon trading on the Paris stock exchange. 

The group’s financial targets are “more ambitious than expected” but “raise questions”, analyst Tom Narayan of RBC said.

The company suffered a historic loss in 2020 due to the Covid-19 pandemic and its recovery was destabilised by its withdrawal from Russia following Moscow’s invasion of Ukraine.

In late July, Renault said that its decision to quit the Russian market had pushed it deep into the red in the first half of 2022.

Two months earlier, it had sold its 100-percent stake in Renault Russia and its 68-percent stake in AVTOVAZ. 

But with its new revamp, Renault said it planned to resume paying shareholders a dividend next year for the first time since 2019. 

The value of traditional car manufacturers pales in comparison to new players on the market specialising in electric vehicles such as Elon Musk’s Tesla or Chinese firm BYD.

US giant Ford has taken similar steps, announcing the creation of the “Model E” electric subsidiary earlier this year.

Renault’s sales of traditional internal-combustion vehicles are falling. 

In the first nine months of 2022, hybrid and electric vehicles represented 38 percent of the brand’s registrations in Europe, a year-on-year increase of 12 percent.

The separation of Renault’s electric and conventional production has concerned trade unions after several waves of job cuts.

Global stocks move higher as US voters cast ballots

Global stock markets mostly moved higher on Tuesday as Americans headed to the polls in critical midterm elections.

The dollar clawed back some of its recent losses versus the euro, while Chinese demand expectations were keeping oil prices in check.

Europe’s main markets were showing modest gains some two hours from the close save for a tiny London dip. 

On Wall Street the Dow was up 0.4 percent shortly after the opening bell, while the broader S&P 500 and tech-heavy Nasdaq wobbled around before also moving higher.

“Those US midterm elections today might keep investors on the sidelines a bit before they make any major decisions,” noted Markets.com analyst Neil Wilson.

Polls opened Tuesday in crucial US elections that could decide the political future of both President Joe Biden and his predecessor Donald Trump — who has all but announced he will seek the White House again in 2024.

Biden’s Democrats are facing a gargantuan struggle to hang on to Congress, after a race the president has cast as a “defining” moment for US democracy — while Trump’s Republicans have campaigned hard on kitchen-table issues like inflation and crime.

Polls show Republicans are likely to win at least one house of Congress — and some see the prospect of further Washington gridlock as a scenario that lessens the risk of policy uncertainty.

“Consensus is that investors prefer political deadlock as it prevents any significant shifts in policy,” added Scope Markets analyst James Hughes.

“With that looking like a real possibility, the real market turbulence may appear later in the week.”

Politics aside, investors are also waiting on US inflation data due on Thursday for a pointer on the interest path ahead.

In Asia, the Hong Kong and Shanghai stock markets sank as speculation about a rollback of China’s strict zero-Covid policies fuelled market volatility, but Tokyo ended 1.3 percent ahead.

– Crypto crunch –

Elsewhere, in the world of crypto finance, the native token of the FTX crypto derivatives exchange platform slumped after the CEO of rival platform Binance said his firm was liquidating its holdings amid concerns about FTX’s finances.

Bitcoin was down 5.3 percent to $19,583, ending a relatively bullish October run. and FTX’s FTT token slumped 25.4 percent to 16.63 dollars, its lowest since early 2021.

The crypto industry is still licking its wounds since so-called stablecoin TerraUSD and a linked token, Luna, collapsed in May this year, knocking tens of billions of nominative value off the market.

“Given the current conditions and state of the crypto community, which is still under the horrors of Terra Luna, another shock of FTX’s exchange could draw some serious blood out of the crypto industry, and this means that Bitcoin price could actually revisit the price level of $10K, which will be complete chaos for the crypto market,” said Naeem Aslam. chief market analyst with Avatrade.

– Key figures around 1330 GMT –

New York – Dow: UP 0.4 percent at 32,956.33 points

London – FTSE 100: DOWN 0.1 percent at 7,304.89

Paris – CAC 40: UP 0.1 percent at 6,420.68

Frankfurt – DAX: UP 0.6 percent at 13,607.42

EURO STOXX 50: UP 0.5 percent at 3,725.97

Tokyo – Nikkei 225: UP 1.3 percent at 27,872.11 (close)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 16,557.31 (close)

Shanghai – Composite: DOWN 0.4 percent at 3,064.49 (close)

Pound/dollar: DOWN at $1.1454 from $1.1514 on Monday

Euro/dollar: DOWN at $1.0002 from $1.0020

Dollar/yen: DOWN at 146.35 from 146.93 yen

Euro/pound: UP at 87.33 pence from 87.03 pence

West Texas Intermediate: DOWN 0.3 percent at $91.47 per barrel

Brent North Sea crude: DOWN 0.1 percent at $97.86 per barrel

Close Bitnami banner
Bitnami