World

US stocks rebound after disappointing inflation data

Wall Street stocks finished a topsy-turvy session with strong gains Thursday following disappointing inflation data, while the pound rallied and the yen hit a new multi-decade low.

US consumer prices rose 0.4 percent in September compared to August, twice the 0.2 percent projected by analysts, even as the annual increase in the consumer price index slowed slightly to 8.2 percent from 8.3 percent.

The data are the latest sign inflation is becoming more ingrained in the US economy, despite numerous Federal Reserve actions to counter the trend.

US stocks initially plummeted on the report, which exacerbated recession worries on the increased odds of more aggressive Fed interest rate increases.

But equities soon reversed course, working their way back into positive territory by late morning and rising from there.

The broad-based S&P 500 ended 2.6 percent higher, joined in positive territory by bourses in Paris and Frankfurt that had earlier closed up at least one percent.

The early action after the inflation report was “knee-jerk” selling, said Briefing.com analyst Patrick O’Hare, adding that the inflation data — while disappointing — was not shocking given other recent economic reports.

The initial reversal was due to technical trading factors. When stocks refused to drop below a key trading level, they did a 180-degree turn and pushed higher.

“Maybe now there’s a bottom in place for the time being,” O’Hare said.

Also on Thursday, the British pound soared against the dollar and other currencies amid media speculation the government may cut back on its fiscal stimulus plans and increase corporate taxes in its latest policy U-turn.

The IMF reiterated its criticism of the new British government’s policies, with Chief Kristalina Georgieva calling for “coherent and consistent” measures.

Throughout this week’s meetings of finance chiefs in Washington, the IMF has stressed that the priority was for central banks to control inflation with monetary policy tightening and for governments to keep their budgets tight.

“Our message to everybody, not just to the UK, to everybody at this time: fiscal policy should not undermine monetary policy,” Georgieva said.

The Japanese yen on Thursday also hit its lowest level against the dollar since 1990 after the US inflation data, a reflection of the gulf between the US and Japanese central banks in monetary policy.

“The Bank of Japan continues to keep monetary policy easy because inflation and wages remain relatively low” in Japan, said Carol Kong, an economist and currency strategist at Commonwealth Bank of Australia.

– Key figures around 2100 GMT –

New York – Dow: UP 2.8 percent at 30,038.72 (close)

New York – S&P 500: UP 2.6 percent at 3,669.91 (close)

New York – Nasdaq: UP 2.2 percent at 10.649.15 (close)

London – FTSE 100: UP 0.4 percent at 6,850.27 (close) 

Frankfurt – DAX: UP 1.5 percent at 12,355.58 (close)

Paris – CAC 40: UP 1.0 percent at 5,879.19 (close)

EURO STOXX 50: UP 0.9 percent at 3,362.40 (close)

Tokyo – Nikkei 225: DOWN 0.6 percent at 26,237.42 (close)

Hong Kong – Hang Seng Index: DOWN 1.9 percent at 16,389.11 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,016.36 (close)

Pound/dollar: UP at $1.1333 from $1.1100 Wednesday

Dollar/yen: UP at 147.22 yen from 146.91 yen

Euro/dollar: UP at $0.9780 from $0.9703

Euro/pound: DOWN at 86.28 pence from 87.41 pence

Brent North Sea crude: UP 2.3 percent at $94.57 per barrel

West Texas Intermediate: UP 2.1 percent at $89.11 per barrel

burs-jmb/des

G20 struggles for harmony again, as US-Saudi spat emerges

The G20 closed talks in Washington on Thursday without issuing a joint communique, as a growing US-Saudi feud created new tensions in a group already divided over Russia’s invasion of Ukraine.

Finance ministers and central bankers from the Group of 20 major economies met during the IMF and World Bank annual meetings that have focused on the war, soaring inflation and the climate crisis.

But the G20 failed to issue a joint communique at the end of its meeting, as in its last two gatherings. Russian officials participated via video link, according to a source familiar with the talks.

Despite the lack of consensus, officials said the G20 remains a useful forum, with heads of state and government due to meet next month in Bali, Indonesia.

“All member countries underlined that it is very important to continue to preserve this G20 as the premier economic forum for cooperation,” Indonesian Finance Minister Sri Mulyani Indrawati, whose country chairs the G20 this year, said at a news conference.

She acknowledged that the group faces “many challenges” and “differences in view”, with “escalating geopolitical conflicts, a war in Ukraine which exacerbated and worsened the economic situation.”

German Finance Minister Christian Lindner said before the meeting that it was “better to have a forum to speak in than none.”

“Even if there are different opinions — including those that you don’t share, some even that you don’t understand — it’s still a good forum for a conversation,” Lindner told reporters.

“We could do a communique that doesn’t mention the war in Ukraine, but we don’t want a communique that sweeps things under the rug,” the source familiar with the discussions told AFP.

– Saudi-US spat –

Washington and Riyadh have locked horns over a decision by the OPEC+ group of oil exporters, led by Saudi Arabia and Russia, to sharply cut production — a move that could send energy prices soaring higher.

The source close to the G20 discussions said Western nations explained at the meeting that they were “disappointed” and that the cuts went against Saudi interests “because the risk for them is that they cause a recession.”

“It’s hard to understand,” the source said.

President Joe Biden threatened “consequences” for Saudi Arabia in a CNN interview on Wednesday.

In a rare statement on Thursday, the Saudi foreign ministry denied that the decision was “politically motivated against the United States” and expressed its “total rejection of these statements that are not based on facts.”

But US National Security Council spokesman John Kirby responded that Riyadh knew the cut “would increase Russian revenues and blunt the effectiveness of sanctions. That is the wrong direction.”

– Oil price cap –

The OPEC+ cut comes as the Group of Seven wealth democracies is seeking to impose a price cap on Russia’s crude exports, a move aimed at stripping the country of a major source of funding for its war machine.

But gaining broad global approval for a price cap may prove to be a major challenge.

While Western nations have imposed unprecedented sanctions on Russia, other countries have maintained economic ties with Moscow, with India and China stepping up their purchases of Russian oil.

Despite the lack of a joint communique, Indrawati said the G20 made progress on a number of issues, including sustainable finance and efforts to impose a global minimum tax on major corporations.

Tensions within the G20 come as leaders are due to meet in Bali next month — a summit that could see Biden share the same venue as Russian President Vladimir Putin and another rival, Chinese leader Xi Jinping.

The lack of consensus within the group also comes ahead of the United Nations’ COP27 climate summit in Egypt in November.

G20 struggles for harmony again, as US-Saudi spat emerges

The G20 closed talks in Washington on Thursday without issuing a joint communique, as a growing US-Saudi feud created new tensions in a group already divided over Russia’s invasion of Ukraine.

Finance ministers and central bankers from the Group of 20 major economies met during the IMF and World Bank annual meetings that have focused on the war, soaring inflation and the climate crisis.

But the G20 failed to issue a joint communique at the end of its meeting, as in its last two gatherings. Russian officials participated via video link, according to a source familiar with the talks.

Despite the lack of consensus, officials said the G20 remains a useful forum, with heads of state and government due to meet next month in Bali, Indonesia.

“All member countries underlined that it is very important to continue to preserve this G20 as the premier economic forum for cooperation,” Indonesian Finance Minister Sri Mulyani Indrawati, whose country chairs the G20 this year, said at a news conference.

She acknowledged that the group faces “many challenges” and “differences in view”, with “escalating geopolitical conflicts, a war in Ukraine which exacerbated and worsened the economic situation.”

German Finance Minister Christian Lindner said before the meeting that it was “better to have a forum to speak in than none.”

“Even if there are different opinions — including those that you don’t share, some even that you don’t understand — it’s still a good forum for a conversation,” Lindner told reporters.

“We could do a communique that doesn’t mention the war in Ukraine, but we don’t want a communique that sweeps things under the rug,” the source familiar with the discussions told AFP.

– Saudi-US spat –

Washington and Riyadh have locked horns over a decision by the OPEC+ group of oil exporters, led by Saudi Arabia and Russia, to sharply cut production — a move that could send energy prices soaring higher.

The source close to the G20 discussions said Western nations explained at the meeting that they were “disappointed” and that the cuts went against Saudi interests “because the risk for them is that they cause a recession.”

“It’s hard to understand,” the source said.

President Joe Biden threatened “consequences” for Saudi Arabia in a CNN interview on Wednesday.

In a rare statement on Thursday, the Saudi foreign ministry denied that the decision was “politically motivated against the United States” and expressed its “total rejection of these statements that are not based on facts.”

But US National Security Council spokesman John Kirby responded that Riyadh knew the cut “would increase Russian revenues and blunt the effectiveness of sanctions. That is the wrong direction.”

– Oil price cap –

The OPEC+ cut comes as the Group of Seven wealth democracies is seeking to impose a price cap on Russia’s crude exports, a move aimed at stripping the country of a major source of funding for its war machine.

But gaining broad global approval for a price cap may prove to be a major challenge.

While Western nations have imposed unprecedented sanctions on Russia, other countries have maintained economic ties with Moscow, with India and China stepping up their purchases of Russian oil.

Despite the lack of a joint communique, Indrawati said the G20 made progress on a number of issues, including sustainable finance and efforts to impose a global minimum tax on major corporations.

Tensions within the G20 come as leaders are due to meet in Bali next month — a summit that could see Biden share the same venue as Russian President Vladimir Putin and another rival, Chinese leader Xi Jinping.

The lack of consensus within the group also comes ahead of the United Nations’ COP27 climate summit in Egypt in November.

Russia to help people leave annexed region as Kyiv advances

Russia agreed Thursday to help residents leave a region it “annexed” in a sign of success for Ukraine’s counter-offensive, as the EU warned Moscow’s army would be “annihilated” if the Kremlin uses nuclear weapons.

Moscow’s decision to assist people in leaving Kherson came a day after Kyiv said it had retaken five settlements in the southern region.

“The government took the decision to organise assistance for the departure of residents of the (Kherson) region,” Russian Deputy Prime Minister Marat Khusnullin said.

The Moscow-appointed head of the area had appealed for intervention.

Vladimir Saldo suggested residents “leave to other regions to protect themselves from missile strikes”.

Those departing would go to Crimea, a Ukrainian peninsula Moscow annexed in 2014, and southern Russian regions.

Kyiv, which announced its counter-offensive in the south in August, said it has already recaptured over 400 square kilometres (155 miles) in the Kherson region in under a week.

Kherson, which lies near Crimea, was the first major Ukrainian city to fall to Russian forces after the February 24 invasion.

– Nuclear threat –

In Brussels, European Union foreign policy chief Josep Borrell sent a strong message to the Kremlin after President Vladimir Putin’s veiled threats of resorting to nuclear weapons to stem growing battlefield losses.

“Putin is saying he is not bluffing. Well, he cannot afford bluffing,” Borrell said.

“Any nuclear attack against Ukraine will create an answer, not a nuclear answer, but such a powerful answer from the military side that the Russian Army will be annihilated.”

The NATO alliance has stopped short of threatening to use its nuclear arsenal to respond as non-member Ukraine is not covered by its mutual self-defence clause.

In Kazakhstan, President Recep Tayyip Erdogan defended Turkey’s booming trade ties with Moscow during an in-person meeting with Putin on the sidelines of a regional summit.

But Erdogan did not deliver an offer to mediate negotiations between Moscow and Kyiv — expected by the Kremlin — and comments between the leaders made no mention of Ukraine, focusing instead on economic ties.

Putin proposed to create a “gas hub” in Turkey as Russia’s supplies to Europe have been disrupted by Ukraine-related sanctions — an idea that France’s presidency said made “no sense”.

NATO member Turkey has sought to retain dialogue with its Western allies as well as Moscow, and has not joined sanctions on Russia over its invasion of Ukraine.

Ukrainian President Volodymyr Zelensky meanwhile told the Parliamentary Assembly of the Council of Europe on Thursday that “legal mechanisms” are needed to punish Russian war crimes.

“We must continue our dialogue in order to hold Russia as the aggressor state and each of the Russian murderers and torturers to account for all crimes in this war,” he said via video link.

– Rebels push to Bakhmut –

On the battlefield, Russian-backed separatist forces in the eastern Donetsk region of Ukraine said they had captured two villages near the industrial city of Bakhmut, posting small gains against Kyiv’s counter-offensive.

The villages lie just south of Bakhmut, a wine-making and salt-mining city that used to be populated by some 70,000 people and which Russian forces have been pummelling for weeks.

The reported gains came after Ukrainian troops had for weeks been clawing back large swathes of territory in the south and east of Ukraine — including Donetsk — controlled by Russian forces for months.

The Ukrainian military in an update said that it had repelled attacks near several frontline villages.

The governor of the Belgorod region also said that Ukrainian shelling hit housing in the southern Russian city and blew up a munitions depot in the border area.

– Boy pulled from rubble –

AFP reporters in Yampil just outside the recently recaptured Ukrainian town of Lyman on Thursday heard heavy exchanges of artillery fire to the southeast.

A Ukrainian soldier returning from the frontline said positions in Torske village were under fire from Russian guns guided by spotter drones.

Also in the south, the town of Mykolaiv was again rocked by Russian bombardments.

The head of the city Oleksandr Sienkevych said on social media a five-storey residential building was hit, with two upper floors destroyed.

“An 11-year-old boy was recovered from under the rubble and another seven people may still be there,” he said, adding a security guard was killed at a sea rescue station.

Mexico says lives saved as US pledges more action on gun smuggling

The United States promised Thursday to do more to combat arms smuggling with Mexico, which said that early efforts have succeeded in denting the country’s long dire homicide rate.

Top officials from the neighboring nations met in Washington after also sealing a deal that would keep in Mexico most of the Venezuelan migrants seeking to enter the United States, an arrangement that drew criticism from some usual allies of President Joe Biden.

Mexican Foreign Secretary Marcelo Ebrard said the two nations worked together to seize 32,000 weapons this year and credited the effort with a 9.2 percent drop in homicides inside his country.

“These are not just statistics. We’re talking about saving lives,” Ebrard said.

“There is still a ways to go; this doesn’t mean everything is solved. But the most important indicator is that for the first time in the past few years we have seen a reduction not just in homicides but kidnappings, robberies and vehicle theft.”

The cooperation is part of a so-called Bicentennial Framework sealed a year ago to mark two centuries of diplomatic relations.

US Homeland Security Secretary Alejandro Mayorkas said the two countries would set up a new task force to see “what more we can do to counter this problem.”

“We will be unrelenting in our attack of it,” he told a news conference.

Mexico has long pointed the finger at the United States and its lax gun laws for the flow of weapons to its cartels, which in turn are often funded by selling drugs to US consumers.

Mexico on Monday filed its latest lawsuit in a US court, seeking action against an Arizona gun seller accused of working with smugglers.

Mindful of political sensitivities in the United States, where the rival Republican Party champions the right to bear arms, Mayorkas stressed that the two countries were working only against transnational smuggling and not on domestic gun policy.

– Curbing Venezuelan migration –

The Biden administration took office pledging a more humane approach to migrants than under former president Donald Trump, who had promised a wall on the Mexican border.

But in a policy mirroring Trump’s efforts to block Central Americans fleeing poverty and violence, the Biden administration announced Wednesday that Venezuelans who try to walk or swim into the United States would be sent to Mexico and not admitted.

Nearly six million Venezuelans have fled years of economic implosion under leftist leader Nicolas Maduro. Some 2.4 million are in neighboring Colombia but a rising number have tried to enter the United States.

The Biden administration said it would also let some 24,000 Venezuelans enter lawfully if they have support in the United States and pass vetting, in line with procedures for Ukrainians fleeing Russia’s invasion.

Senator Bob Menendez, a member of Biden’s Democratic Party who heads the Senate Foreign Relations Committee, praised the legal pathway but said it was “inexcusable” to send more of the Venezuelan migrants to Mexico.

The decision “adds salt to an open wound while further eroding our asylum system that President Biden promised to restore,” Menendez said in a statement.

Daniel Berlin of the International Rescue Committee said that restrictive policies “only fuel the further exploitation of those in desperate need of safety.”

Mayorkas insisted that the new policy would discourage Venezuelans from taking “desperate and dangerous” measures including through human smugglers.

Instead they will be encouraged to “take the humane, safe and orderly pathway to a better life,” he said.

US and Saudi Arabia clash in public over oil cut, Russia

The United States and Saudi Arabia traded bitter barbs Thursday over last week’s OPEC+ oil output cut, with Washington accusing Riyadh of knowingly boosting Russian interests.

The Saudi-led OPEC+ cartel — which includes Russia — angered Washington by cutting production by two million barrels a day from November, adding further pressure on soaring crude prices.

Saudi Arabia issued a rare press release on Thursday expressing “total rejection” of accusations it was “taking sides” as President Vladimir Putin’s war in Ukraine rages on.

But White House spokesman John Kirby quickly fired back, saying that Riyadh knew the cut “would increase Russian revenues and blunt the effectiveness of sanctions.”

The United States has vowed to re-evaluate ties with the oil-rich kingdom since the cut, which was seen as a diplomatic slap in the face for President Joe Biden.

Despite vowing to make the kingdom an international “pariah” following the murder of journalist Jamal Khashoggi, Biden traveled to Saudi Arabia in July and met with Crown Prince Mohammed bin Salman — with the two greeting each other with a high-profile fist bump.

The OPEC supply cut decision was “moral and military support because it allows (Putin) to continue to fund his war-making machine,” Kirby said, in unusually strong remarks.

It “certainly gave… Mr. Putin a sense of comfort.”

Other OPEC+ nations “felt coerced to support Riyadh’s direction,” Kirby added, accusing Saudi Arabia of “twisting arms to get what they wanted.”

The oil cut comes at a sensitive moment for Biden as the Democratic Party faces tricky midterm elections in November with rising consumer prices, especially at the gas pump, a key concern for voters.

Asked about Riyadh’s move, Biden told reporters in Los Angeles: “We’re about to talk to them.”

– Oil funds Russian war –

In its press release, Saudi Arabia insisted that decisions by OPEC+ were taken “purely on economic considerations.”

And it suggested that Biden’s administration had asked the cartel to delay any cuts until after Americans go to the polls on November 8.

Biden has promised “consequences” for Saudi Arabia, but given no further details.

Russia relies on high oil prices to fund its floundering invasion of Ukraine, and some US lawmakers have called for Washington to halt all cooperation with Riyadh.

“We wanted to know that when the chips were down, when there was a global crisis, that the Saudis would choose us,” said Senator Bob Menendez this week. “Well, they didn’t. They chose Russia.”

Kirby said Thursday that “the Saudi foreign ministry can try to spin or deflect, but the facts are simple. The world is rallying behind Ukraine in combatting Russian aggression.”

The partnership between the United States and Saudi Arabia was sealed after World War II, providing the kingdom with military protection in exchange for American access to oil.

Fraught with crises, the relationship was revived by Biden’s predecessor Donald Trump, whose single term saw Riyadh accounting for a quarter of US arms exports, according to the Stockholm International Peace Research Institute.

Continuing the rapprochement, the United States announced in August that Saudi Arabia would buy 300 Patriot MIM-104E missile systems, which can be used to bring down long-range incoming ballistic and cruise missiles, as well as attacking aircraft.

Saudi Arabia, which backs the Yemeni government, has faced rocket threats from Yemen’s Huthi rebels, who have been supplied with Iranian equipment and technology.

French strikes spread as Macron's opponents push for 'confrontation'

French railway workers and civil servants voted Thursday to join striking oil refinery staff with a walkout next week, raising fears that anger over the rising cost of living could spiral into a series of blockages.

Railway staff and civil servants represented by the hard-left CGT union, the biggest in the public sector, will stop work next Tuesday, with several labour groups calling for a national day of stoppages.

The famously militant CGT said it was pushing for higher wages for railway workers but also wanted to protest government efforts to break a strike by refinery workers that has caused nationwide fuel shortages.

“Railway workers want to press again for salary improvements and denounce the repression and attack against the right to strike,” said a union statement.

The government has resorted to emergency powers to compel some striking refinery workers to return to their jobs to release fuel stocks stuck inside blockaded facilities.

Six out of seven refineries have been affected by strikes that are now in their third week, causing huge tailbacks outside petrol stations and growing frustration among motorists.

“The time for a confrontation (with the government) has arrived,” left-wing opposition parliamentarian Clementine Autain from the France Unbowed party told France 2 television on Thursday.

A leading Greens lawmaker, Sandrine Rousseau, said Wednesday she hoped the refinery standoff would be “the spark that begins a general strike”.

Not all unions have joined the call for strikes next Tuesday, however, with the country’s biggest, the CFDT, opting out.  

Left-wing political parties are to hold a protest rally against the policies of President Emmanuel Macron and the rising cost of living on Sunday.

– Sympathy and anger –

Until Tuesday, the government had been reluctant to inflame the pay dispute at French energy group TotalEnergies and US giant Esso-ExxonMobil whose refineries are affected.

TotalEnergies made a net profit of $5.7 billion in the April-June period and is distributing billions to shareholders, sparking some sympathy for employees pushing for higher wages. 

But with 30 percent of French service stations with little or no fuel, particularly those in the Paris region and the north, the government has begun requisitioning some fuel depot workers, forcing them to return to work or risk prosecution.

After an ExxonMobil depot Wednesday, a TotalEnergies site in northern France was requisitioned Thursday, with the first laden fuel tankers protected by police seen leaving during the afternoon.

Prime Minister Elisabeth Borne’s office said the emergency measures were justified because of a “real economic threat” for northern France, which relies heavily on agriculture, fishing and industry.

But the unions have reacted furiously to the government intervention.

“What we are seeing here is the Macronian dictatorship,” CGT official Benjamin Tange told AFP. The current industrial action, he said, arose out of “the anger of several months, several years and a rupture of social dialogue”.

Striking workers at an Esso-ExxonMobil refinery in Fos-sur-Mer, outside Marseille in the south, voted Thursday to lift their blockade after reaching a pay deal with management.

That leaves five out of seven of France’s refineries still affected by industrial action.

TotalEnergies announced it would hold talks with trade union representatives for the first time since the start of the strikes, raising hopes of a breakthrough.

The group has proposed a six percent raise for next year, below the CGT’s demand for an immediate 10 percent hike, retroactive to January 1.

The company has come under increasing pressure from the government to reach an agreement.

Finance Minister Bruno Le Maire told RTL radio that given its huge profits this year, it had “the capacity… and therefore an obligation” to raise workers’ pay.

Netflix to debut subscription with ads

Netflix on Thursday said a subscription option subsidized by ads will debut in November across a dozen countries as the streaming service strives to jumpstart stalled growth.

Netflix reported a loss of 970,000 subscribers in the second quarter along with stagnant profits, and its share price is down 63 percent from this time last year despite rising slightly on the ad-tier news.

The new “Basic with Ads” subscriptions will be priced at $6.99 in the United States — three dollars less than a no-ads basic option, Netflix chief operating officer Greg Peters said in a briefing.

“The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry,” Peters said.

“Now streaming has surpassed both broadcast and cable for total TV time in the United States.”

The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.

Video ads will be from 15 seconds to 30 seconds long.

“We are looking at a very light ad load with no more than four to five minutes of ads per hour, and including some very tight frequency caps so that members don’t see the same ad repeatedly,” Peters said.

After having shunned advertising since it started its streaming service, Netflix acquiesced as competition in the market intensifies and as consumers recoil from soaring inflation.

With the launch of cheaper, ad-supported subscriptions, Netflix and Disney+ are expected to bite into the revenue of traditional television channels.

Netflix rival Disney+ is expected to launch its own ad-subsidized subscription soon.

“These launches are going to create the biggest premium advertising space in more than a generation,” said analytics company Samba TV senior vice president Dallas Lawrence.

“It’s going to be a major moment for advertisers.”

– Avoiding politics –

Netflix has sold nearly all the ad space for the new tier launch, president of worldwide advertising Jeremi Gorman said during the briefing.

Advertisers will be able to target audiences based on factors such as the country they live in as well as show genres or hit shows to be part of “zeitgeist moments” on the platform, executives said.

Netflix will not take political ads, nor will it accept marketing promoting smoking, guns, fireworks “or anything that feels like a get-rich-quick scheme,” Gorman added.

Advertisers will have options to avoid shows with sex, nudity or graphic violence, and Netflix is partnering with Neilson and ad-traffic verification companies to provide data regarding how well messages are reaching audiences, executives said.

“The new Netflix ad-supported tier will help the streamer to staunch the bleeding of its subscriber totals, but it will pull most users from the company’s existing user base instead of expanding the pool of Netflix viewers,” said Insider Intelligence forecasting analyst Peter Newman.

Peters acknowledged the potential for Netflix subscribers to switch to the lower-priced offering, but said the company expects that to be offset by ad revenue plus an overall increase in the number of subscribers.

“We’re not trying to steer people to one plan or the other. We really want to take a pro-consumer approach and let them land on the right plan for them,” Peters said.

“We think that the revenue model will be fine as a result.”

Netflix is continuing to invest in shows it believes will attract, and keep, subscribers.

Peters noted hits such as “Stranger Things” and “Extraordinary Attorney Woo” and pending releases of keenly anticipated films such as “Glass Onion: A Knives Out Mystery.”

Zelensky seeks legal mechanism to punish all Russian 'murderers'

Ukrainian President Volodymyr Zelensky on Thursday stressed the need to punish all Russian “murderers and torturers” and appealed for more air defence systems to fight Moscow’s renewed offensive.

Zelensky told the Parliamentary Assembly of the Council of Europe (PACE) that bringing the offenders to book was necessary to ensure lasting peace on the continent.

“We must continue our dialogue in order to hold Russia as the aggressor state and each of the Russian murderers and torturers to account for all crimes in this war, for every manifestation of terror,” he said via video link.

“When these legal mechanisms are established and operational, it will be one of the most powerful guarantees of long-term peace”.

The Ukrainian leader had made a similar appeal at the end of September at the United Nations.

The International Criminal Court based in The Hague opened its own probe into the war in Ukraine shortly after Russia invaded in February, but has said it is keen for Ukraine to bring suspects to justice where possible.

The ICC prosecutor on Thursday said Ukraine could extradite Russian war crimes suspects to the Hague-based court even though Moscow is not a member. 

Zelensky also reproached PACE saying it had turned a blind eye when Russia annexed Ukraine’s Crimean peninsula in 2014.

“In fact, there was an attempt to write off everything that Russia did against Ukraine and European values, starting in 2014. Write off under the guise of stories that it was necessary to maintain dialogue with Russia at all possible levels,” he said.

Zelensky called for Europe to isolate Russia diplomatically as he made a renewed pitch  for “modern anti-aircraft and anti-missile defence systems” to “protect our sky from the terror of Russia”. 

“If this is done, it will be a fundamental step to end the entire war in the near future,” he said.

“Europe can take the lead in the efforts to compensate for the damage caused by this war,” he said. 

“We have to create an appropriate compensation mechanism – and we suggest the way to create it. The corresponding project has already been prepared by Ukraine. I urge you to support it — both in Europe and at the level of the UN General Assembly”.

Braving rockets, Iraq MPs elect president who names PM after year of deadlock

Despite a rocket attack on Baghdad’s Green Zone, Iraqi lawmakers Thursday elected a new president who swiftly named a prime minister in hopes of ending a year of political gridlock and violence in the war-scarred nation.

Abdul Latif Rashid, a 78-year-old Iraqi Kurd, was elected as head of state, replacing Barham Saleh, by the assembly in the capital’s heavily fortified Green Zone government and diplomatic district.

Rashid won more than 160 votes against 99 for the incumbent Saleh, an assembly official said.

The new president swiftly named Shiite politician Mohammed Shia al-Sudani as prime minister-designate, tasking him with reconciling feuding Shiite factions and forming a government a whole year after Iraq last went to the polls.

The 52-year-old Sudani, who has the backing of influential pro-Iran factions, vowed to form a government “as quickly as possible”, but faces the daunting task of winning over their rivals, the millions of diehard supporters of fiery cleric Moqtada Sadr.

When Sudani was first proposed in July, the move sparked mass protests by Sadr’s followers, who breached the Green Zone and stormed parliament.

He now has 30 days to form a new government capable of commanding a majority in parliament.

Western governments swiftly welcomed the move to end Iraq’s political standoff.

The French embassy congratulated Sudani on his nomination and called for the “formation of a government that will do all in its power to answer the legitimate demands of all Iraqi people and especially its youth.”

A reminder of Iraq’s troubles came earlier in the day as lawmakers headed into parliament, when a barrage of nine Katyusha-style rockets rained down on the area, the security forces said.

At least 10 people were wounded, including six members of the security forces or bodyguards of lawmakers, as well as four civilians in a nearby district, a security official told AFP.

US ambassador Alina Romanowski condemned the attack “in the strongest terms” on Twitter and warned that “the people of Iraq must resolve their political differences & grievances solely thru peaceful means. 

“Attacks like these undermine democracy & trap Iraq in a perpetual cycle of violence.”

– ‘Crisis breeds instability’ –

The democratic institutions built in oil-rich Iraq since the 2003 US-led invasion that toppled dictator Saddam Hussein remain fragile, and neighbouring Iran wields major influence.

For just over a year now, Iraq has had only a caretaker government to tackle an array of pressing problems, including unemployment, decaying infrastructure, corruption and the impacts of climate change.

The United Nations mission in Iraq warned this week that “the protracted crisis is breeding further instability” and that the divisive politics are “generating bitter public disillusion”.

Lawmakers had made three previous attempts to elect a new head of state, in February and March, but failed to even reach the required two-thirds threshold for a quorum.

Under Iraq’s post-Saddam power-sharing system, meant to avoid more sectarian conflict, the president by convention is Kurdish, the prime minister a Shiite Arab and the parliament speaker a Sunni Arab.

The presidency has usually been held by the Patriotic Union of Kurdistan (PUK) of Rashid and Saleh. This year the rival Kurdistan Democratic Party (KDP) had demanded the presidency but ultimately abandoned the bid.

Rashid, a hydraulic engineer versed in environmental issues, is seen as a compromise candidate for the polarised country.

Iraq’s rival Shiite political factions, the most powerful players, have been bitterly vying for influence.

Sadr has pushed for parliament to be dissolved to clear the way for fresh elections, while the rival Coordination Framework, to which the prime minister-designate belongs, insisted that a new government be formed first.

The standoff has seen both sides set up protest camps in the Green Zone this year. 

Tensions boiled over on August 29 when more than 30 Sadr supporters were killed in battles with Iran-backed factions and the army.

Political analyst Ali al-Baidar said he could not rule out an escalation between the opposing sides but said he thought it more likely that a backroom deal had been done under which the Sadrists will receive additional cabinet posts in return for their tacit approval of Sudani’s nomination.

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