LONDON (Reuters) – British investors on Wednesday fully priced in a 0.25 percentage point increase in Bank of England interest rates at its March meeting, after the U.S. Federal Reserve signalled that it could push its rates higher.

A day earlier, the overnight index swap market had shown a roughly 90% chance that the BoE would raise rates on March 23 to 4.25% from 4%, and a small chance of a pause – based on calculations by Refinitiv.

Instead, investors now see a roughly 5% chance of a bigger 0.50 percentage point hike on March 23.

The re-pricing follows Fed Chair Jerome Powell’s comment overnight that the United States may need to raise interest rates more than expected in response to recent strong data. The dollar surged against the pound after Powell’s remarks.

The yield on the interest rate-sensitive 0.625% 2025 British government bond – which became the benchmark two-year gilt at the start of the month – rose to its highest level since Oct. 21.

(Reporting by Andy Bruce; editing by Barbara Lewis)

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SHANGHAI/BEIJING (Reuters) -China’s passenger vehicle sales fell 20% in the first two months of this year, industry data showed on Wednesday, underscoring weak demand in the world’s biggest auto market even as some car manufacturers offer reduced prices to revive demand.

Sales in February, 1.42 million units, were 10.4% higher than a year earlier, a low base period when a week-long Lunar New Year holiday reduced business activity, the China Passenger Car Association (CPCA) said.

This year, Lunar New Year holiday fell in January.

Sales of new energy vehicles (NEVs), which include pure battery electric cars and plug-in hybrids, grew faster than the overall market, up 61% in February on a year earlier. Last year the central government extended a tax exemption on such products, while local authorities rolled out incentives to encourage purchases.

NEVs accounted for more than 30% of new car sales.

Domestic electric vehicle (EV) makers have also followed Tesla into what analysts are calling a price war in China at a time when battery costs have started falling.

As a result, EVs have taken market share from best-selling cars with internal combustion engines.

BYD Co Ltd was China’s best-selling passenger car brand in February, outselling the Volkswagen brand for the second time in four months, according to retail sales data from China Merchants Bank International.

The Chinese EV giant started offering its Qin plug-in hybrid sedan at prices starting at 99,800 yuan in February, lower than Volkswagen’s Lavida and Nissan’s Sylphy, which consume more fuel than the Qin.

Tesla accounted for 11.5% of China’s battery electric car sales in February, little changed from 11.3% a year before, indicating a waning effect of price cuts it implemented in early January. Its product line is generally older than those of its competitors.

The U.S. automaker exported 40,479 China-made vehicles in February and aims to increase exports and expand into new markets to digest output from its Shanghai factory.

(Reporting by Zhang Yan, Brenda Goh and Beijing newsroom; Editing by Bernadette Baum and Bradley Perrett)

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BERLIN (Reuters) -Germany auto parts maker Continental predicted rising sales would boost margins this year, as it moves beyond supply chain disruption and Russian asset impairments that in 2022 contributed to a fall in net income of nearly half.

Announcing results on Wednesday, CEO Nikolai Setzer also said the company was selling its operations in Russia including its factory in Kaluga.

“The war is the reason for our controlled withdrawal from Russia. This means the sale of our activities, including our factory in Kaluga. We are in advanced stages of the sales process,” Setzer said.

Last year’s performance was undermined by asset impairments of 87 million euros ($91.70 million) from its Russia operations, as well as negative special effects of around 1 billion euros due largely to high interest rates.

Continental’s share price rose 6.1% in early trade.

“2022 was particularly challenging for us… The war against Ukraine drove up the prices for raw materials, semi-finished products, energy and logistics,” Setzer said.

Continental suspended production at its Kaluga plant in Russia after Moscow began its invasion of Ukraine in February last year. It also stopped imports and exports from the country, but said in April it had temporarily resumed operations to protect local workers from criminal charges, without elaborating.

The company forecast a 5.5-6.5% margin for this year on higher consolidated sales of 42-45 billion euros, up from 39.4 billion last year. In January, it had reported preliminary results, saying its 2022 margin was at the lower end of its outlook at 5%.

It incurred 3.3 billion euros in extra costs in 2022 and expected an extra 1.7 billion this year from the increased cost of materials, energy, logistics, wages and salaries.

Net income fell to 67 million euros from 1.4 billion last year.

The auto market globally saw some recovery last year from the impact of the pandemic and economic weakness. Global car production rose 7% and Continental’s order intake from the automotive sector gained 26%.

On Wednesday the company predicted a rise in global auto production of 2%-4% in 2023, in line with a forecast in January by Germany’s autos association. Car production is still lower than before the pandemic.

($1 = 0.9488 euros)

(Reporting by Victoria Waldersee; editing by Barbara Lewis and Jason Neely)

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SHANGHAI (Reuters) -Ford Motor said on Wednesday it was offering a discount of 40,000 yuan ($5,700) on its Mustang Mach-E electric SUVs in China until the end of April.

Mustang Mach-E cars were now available in China at prices starting at 209,900 yuan in China after the discount, a company representative at Ford China said.

The U.S. automaker had already slashed Mach-E prices by as much as $5,900 in its home market following rival Tesla’s price cuts for the best-selling Model Y crossover.

Ford said in November it was accelerating Mustang Mach-E production and targeting a global annual output rate of 270,000 by the end of 2023, including its China production. It builds the Mach-E in Mexico and China.

Ford sold 39,458 Mach-Es in the U.S. last year, 45% more than in 2021.

However, Mach-E sales last year in China, the world’s largest auto market, were minimal – just 7,782 units. Tesla sold 455,091 Model Ys in China in the same year, according to data from China Association of Automobile Manufacturers (CAAM).

($1 = 6.9636 yuan)

(Reporting by Zhang Yan and Brenda Goh; Editing by Tom Hogue and Bradley Perrett)

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By Josh Ye and Julie Zhu

HONG KONG (Reuters) – China has announced plans for a national data bureau, describing it as part of an effort to coordinate data resources in the country and to achieve a vision of “digital China” conceived by President Xi Jinping.

Its formation, which is part of a sweeping government reshuffle, is set to be voted by on China’s legislature on Friday.

Here’s what we know, and don’t know about the new bureau:

WHAT IS THE BUREAU IS BEING SET UP TO SUPPORT?

Xi’s vision for a “digital China” aims to see the country populated by smart, internet-connected cities and data treated alongside labour and capital as a key factor to drive the economy and help China compete more effectively globally.

While not as well known internationally as his other initiatives such as the Belt and Road, the topic of a digital economy has repeatedly come up during meetings of Chinese leaders over the past decade. Some local media reports say Xi first mentioned the term in 2012.

Since 2014, several cities including Shenzhen and Shanghai have launched data exchanges that allow information sets from coal trading volumes to company credit ratings to be traded.

Such efforts, however, have been considered fragmented and talk of a more unified approach has emerged in recent months.

In December, China’s top leadership published an outline of how China should develop basic data systems and utilize the country’s data resources. Last week, they unveiled a new plan that aims for the country to lead digital development globally by 2035. 

“In retrospect, recent developments were clearly building toward the inauguration of this new agency,” analysts at Trivium China said in a note on Tuesday.

WHAT MAY THE BUREAU BE RESPONSIBLE FOR?

The plan submitted to parliament was scant on detail, saying the bureau would be responsible for “coordinating the integration, sharing, development and application of data resource” and promoting the construction of smart cities.

One person familiar with China’s regulatory thinking said the new bureau will create rules for data property rights, circulation, pricing and trading, an effort that could benefit data-rich companies, at least financially, such as the big internet giants. 

Citic Securities analysts said in a note on Tuesday they believed the bureau’s formation meant that “China will accelerate the development of the data factor market within the country.”

Areas to watch include big data infrastructure, data processing, the digitization of government data as well as data encryption, they added.

WILL THE BUREAU HAVE REGULATORY POWER?

Analysts say no, upon first read. The bureau will be run by the state planner, the National Development and Reform Commission (NDRC), rather than the country’s internet watchdog, the Cyberspace Administration of China.

“The new agency seems to be more on the ‘data productivity’ side, to make and develop data as a strategic strength for China,” said Michael Tan, a Shanghai-based partner of law firm Taylor Wessing. “That also explains why CAC remains and this new agency belongs to NDRC.”

The CAC has in the past six years rolled out new cybersecurity, data and privacy laws that govern how organizations should handle and transfer data domestically and abroad.

ARE OTHER COUNTRIES DOING ANYTHING SIMILAR?

Last year, the World Economic Forum said that India, Colombia and Japan were exploring similar data exchange concepts but not much detail has been available.

Europe has raised the issue of where data is hosted and processed as a matter both of sovereignty and security and in 2020 launched cloud computing platform Gaia-X as an alternative to U.S. cloud computing providers.

(Reporting by Josh Ye and Julie Zhu in Hong Kong; Additional reporting by Josh Horwitz in Shanghai; Editing by Brenda Goh and Christian Schmollinger)

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By Laurie Chen

BEIJING (Reuters) – China has unveiled plans for a sweeping central government reorganisation at its annual parliament session, including the formation of a financial regulatory body and national data bureau and a revamp of its science and technology ministry.

Here are the main changes and what they mean.

WHAT DOES THE RESTRUCTURING INVOLVE?

A new national financial regulatory administration will replace the existing banking watchdog and bring supervision of the industry, apart from the securities sector, into a body directly under the State Council, or cabinet. The securities regulator will also be overseen directly by the State Council.

“Financial regulators are upgraded in this sense,” Citi analysts wrote. “Regulatory loopholes under multiple regulators may be closed further with the establishment of the new organ.”

The reform is intended to further consolidate financial regulation under one government body instead of across different institutions.

The science and technology ministry will be restructured to channel more resources to achieving breakthroughs, with the goal of moving faster towards self-reliance, according to a State Council plan submitted to parliament.

The ministry reform aims to “accelerate the realisation of high-level scientific and technological self-reliance” in response to “the severe situation of international scientific and technological competition as well as external containment and suppression”, the cabinet said.

The restructured ministry will be overseen by a newly created Communist Party body, the Central Science and Technology Commission, strengthening party oversight of science and technology policy.

A new national data bureau will be responsible for coordinating the sharing and development of data resources, as well as planning the digital economy and promoting initiatives. It will be overseen by the National Development and Reform Commission, or state planner.

The official headcount of central government organs will also be slashed by 5% to divert excess personnel towards “key areas and important work”, the State Council said.

WHY NOW?

The plan for the reform of party and state bodies was approved at last October’s Communist Party congress, although few details were released until this week, with the publicly announced reforms mostly limited to government bodies.

The National People’s Congress (NPC), the top legislature, is expected to adopt the reforms on Friday.

President Xi Jinping said during a meeting of the party’s Central Committee last week that reforms would be “intensive” and “wide-ranging”.

The reforms will also “strengthen the centralised and unified leadership of the Party Central Committee as the pivot” and “improve the coordinating institutions for the Party Central Committee’s decision-making on and deliberation of state affairs”, according to a summary of the meeting.

WHAT IS THE SIGNIFICANCE?

The restructuring is the biggest since 2018, when a shakeup affected more than 1.8 million staff at dozens of government entities, state media reported. As part of those reforms, the National Supervisory Commission was formed to oversee anti-corruption work.

The new reforms reflect China’s most pressing priorities: scientific and technological self-reliance and innovation in the face of mounting rivalry with the United States that threatens to curb China’s domestic chip development; reining in large corporate and financial institutions under a single regulatory authority to reduce systemic risks; and strengthened data governance.

“Regulatory policies will be clearer, more unified and coordinated” under the new financial regulator, said a senior researcher at a state-owned bank on condition of anonymity.

The central bank’s regulatory duties will focus on monetary policy, “macro regulation and policy implementation, not day-to-day micro regulation”.

The creation of the data bureau reflects growing anxieties that unchecked data collection by private firms and cross-border data transfer could pose national security risks.

Since taking power in 2012, Xi has established several new central party committees overseeing multiple ministries, which report directly to him.

Analysts say this has gradually changed the governance structure within the party-state system to reflect more centralised, top-down policymaking with more power concentrated in Xi’s hands.

WHAT HAPPENS NEXT?

Analysts expect the party reforms to be revealed soon after the NPC concludes its meetings on Monday.

“The broad trend we are expecting is the party’s continued cannibalisation of the State Council apparatus. Which means party organs’ restructuring will carry greater weight than State Council’s,” said Wen-Ti Sung, a political scientist at the Australian National University.

A top-level party financial watchdog, the Central Financial Work Commission, is likely to be resurrected after the NPC, sources earlier told Reuters. It will be headed by a member of the elite seven-member Politburo Standing Committee, the sources said.

(Reporting by Laurie Chen and Kevin Yao; Additional reporting by Ryan Woo and Eduardo Baptista; Editing by Robert Birsel)

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BERLIN (Reuters) -German industrial production rose significantly more than expected in January, increasing by 3.5% on the previous month, the federal statistical office said on Wednesday.

In a Reuters poll, analysts had pointed to an increase of 1.4% for the month.

The positive development “was driven in particular by strong growth in the manufacturing of electronic equipment … and chemicals,” the statistics office said.

In contrast, motor vehicle and motor vehicle parts manufacturing, as well as pharmaceutical products manufacturing, had shown a strong negative trend.

January’s rise should be seen in the context of the marked decline in production in December, down 2.4% following an upward revision, the economy ministry said commenting on the data. In the more meaningful two-month comparison, there was a decline of 0.6%.

Still, the ministry described the trend as “cautiously optimistic” citing surveys showing improved business outlook and declining supply chain bottlenecks.

“Combined with the still well-filled order books, the economic downturn at the beginning of the year should be mild,” it added.

Also on Wednesday, the statistical office said that German retail sales had fallen unexpectedly in January by 0.3% in real terms compared to the previous month.

Analysts polled by Reuters had forecast a 2.0% rise in

price-adjusted terms.

The office offers more detailed data on its website.

(Reporting by Friederike HeineEditing by Paul Carrel, Matthias Williams and Tomasz Janowski)

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By Ben Tavener and David Chkhikvishvili

TBILISI (Reuters) -Police in the ex-Soviet state of Georgia used tear gas and stun grenades early on Wednesday to break up a protest outside Parliament against a draft law on “foreign agents”.

Reuters witnesses in the capital, Tbilisi, saw police with riot shields making arrests along Rustaveli Avenue, the main thoroughfare running through the centre of the city.

Hours earlier police had clashed with demonstrators, some of whom threw petrol bombs and stones. The crowd then gathered outside parliament, where some people pulled aside light metal barriers intended to keep the public away from the building.

In a statement, the interior ministry said people on both sides had been injured in what it called an extremely violent protest. Police would react to violations of the law, it added.

The ministry said 66 people had been detained over the hours-long clashes.

The protests erupted after legislators gave initial backing to the law, which critics say represents an authoritarian shift and could hurt the country’s bid to join the European Union.

Speaking in Berlin earlier on Tuesday, Georgian Prime Minister Giorgi Garibashvili reaffirmed his support for the law, saying the proposed provisions on foreign agents met “European and global standards”.

But European Union foreign policy chief Josep Borrell said the draft law was a “very bad development” for the country and could seriously affect its ties with the EU.

Thousands of people, some waving EU and Ukrainian flags, stood outside Parliament and listened as speakers denounced the law, which would require any organisations receiving more than 20% of their funding from abroad to register as “foreign agents” or face substantial fines.

Critics say it is reminiscent of a 2012 law in Russia that has since been used to crack down on dissent.

President Salome Zourabichvili, who has said she will veto the law it if crosses her desk, said she was on the side of the protesters.

“You represent a free Georgia, a Georgia which sees its future in the West, and won’t let anyone to take this future away,” she said in an address recorded in the United States, where she is on an official visit.

Late on Tuesday night protesters angrily remonstrated with police armed with riot shields who then used tear gas and water cannon. At least three petrol bombs, as well as stones, were thrown at police.

Some shouted “No to the Russian law” and “You are Russian” at politicians inside the legislature.

Russia is viewed as an enemy by many Georgians, after Moscow backed separatists in the breakaway Georgian regions of Abkhazia and South Ossetia in the 1990s.

State Department spokesman Ned Price said the United States was deeply concerned and troubled about a law that “would strike at some of the very rights that are central to the aspirations of the people of Georgia”.

Georgia’s opposition parties called for fresh protests on Wednesday, which is a public holiday in Georgia to mark International Women’s Day, with crowds expected to gather outside the parliament from 3 p.m. (1100 GMT).

(Reporting by David Chkhikvishvili, Ben Tavener, Felix Light and Jake Cordell in Tbilisi; Writing by David Ljunggren and Jake Cordell; Editing by Grant McCool and Bradley Perrett)

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VATICAN CITY (Reuters) – March 13 marks the 10th anniversary of the election of Pope Francis as head of the nearly 1.38-billion-member Roman Catholic Church. The former Cardinal Jorge Mario Bergoglio of Argentina was elected as the 266th pope and the first from Latin America.

Here are some statistics about his papacy.

CARDINALS

Francis has named 111 cardinals, the red-hatted “princes of the Church” who are his closest aides at the Vatican and who lead dioceses around the world.

Currently, 123 cardinals are aged under 80 and thus eligible under Church law to enter a conclave to elect a pope after Francis dies or retires. Known as cardinal electors, Francis has appointed 81 of them. The other electors were appointed by his predecessors.

FOREIGN TRIPS

Francis has visited 60 states, clocking up almost 410,000 km (255,000 miles).

He has visited Brazil, Jordan, the Palestinian Territories, Israel, South Korea, Albania, France, Turkey, Sri Lanka, the Philippines, Bosnia-Herzegovina, Ecuador, Bolivia, Paraguay, Cuba, the United States, Kenya, Uganda, Central African Republic, Mexico, Greece, Armenia, Poland, Georgia, Azerbaijan, Sweden, Egypt, Portugal, Colombia, Myanmar, Bangladesh, Chile, Peru, Switzerland, Ireland, Lithuania, Latvia, Estonia, Panama, United Arab Emirates, Morocco, Bulgaria, North Macedonia, Romania, Mozambique, Madagascar, Mauritius, Thailand, Japan, Iraq, Hungary, Slovakia, Cyprus, Greece, Malta, Canada, Kazakhstan, Bahrain, Democratic Republic of Congo and South Sudan.

He has made more than 35 trips in Italy, starting with the island of Lampedusa, a landing point for Europe-bound migrants, in July 2013. It was his first foray outside Rome.

He has left the Vatican nearly 150 times for visits and events inside Rome, his diocese.

SAINTS

Francis has created about 900 new saints, including his predecessors John XXIII, John Paul II and Paul IV, as well as Mother Teresa of Calcutta and Salvadoran Archbishop Oscar Romero, who was killed in 1980.

The figure is imprecise as it includes the Martyrs of Otranto, residents of a southern Italian city slain by Ottoman troops in 1480. The Vatican says they numbered about 800.

ENCYCLICALS

An encyclical is the most important form of papal document.

Francis has written three, starting in 2013 with “Lumen Fidei” (Light of Faith) on the importance of Christian faith, partly written by Pope Benedict.

In 2015, he released “Laudato Si” (Praised Be), which called for urgent action on climate change, while 2020’s Fratelli Tutti (Brothers All) tackled the issue of solidarity among people in the post-pandemic world.

(Reporting by Alvise Armellini; Editing by Philip Pullella and Janet Lawrence)

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VATICAN CITY (Reuters) – Below are some memorable quotes from Pope Francis, who marks the 10th anniversary of his election as pontiff on March 13. The quotes are arranged according to subjects that have cropped up during his papacy, in chronological order within each theme.

ENVIRONMENT

“The Earth, our home, is beginning to look more and more like an immense pile of filth … The pace of consumption, waste and environmental change has so stretched the planet’s capacity that our contemporary lifestyle, unsustainable as it is, can only precipitate catastrophes.” From his first papal encyclical, a letter to the church, which was dedicated to the environment and published on June 18, 2015.

“A selfish and boundless thirst for power and material prosperity leads both to the misuse of available natural resources and to the exclusion of the weak and disadvantaged,” comments to the United Nations in September 2015

“The ecological crisis and the large-scale destruction of biodiversity can threaten the very existence of the human species.” Also to the United Nations in September 2015.

“God gave us a bountiful garden, but we have turned it into a polluted wasteland of debris, desolation and filth … Climate change is also contributing to the heart-rending refugee crisis. The world’s poor, though least responsible for climate change, are most vulnerable and already suffering its impact,” Sept. 1, 2016, World Day of Prayer for the Care of Creation.

WAR

“War is madness,” the pope said on Sept. 13, 2014, referring to violence seen around the globe.

“Hostility, extremism and violence are not born of a religious heart: they are betrayals of religion,” he said during a visit to Ur, Iraq in March 2021.

“Today, however, we reaffirm our conviction that fraternity is more durable than fratricide, that hope is more powerful than hatred, that peace more powerful than war,” he said during a visit to Mosul, Iraq in March 2021.

“In Ukraine, rivers of blood and tears are flowing. This is not just a military operation but a war which sows death, destruction and misery,” he said his weekly address on March 6, 2022, referring to the Russian invasion of Ukraine that began on Feb. 24, 2022.

“Once more humanity is threatened by a perverse abuse of power and partisan interests which condemns defenceless people to suffer every form of brutal violence,” he said on March 18, 2022.

“It is also true that the Russians thought it would all be over in a week. But they miscalculated. They encountered a brave people, a people who are struggling to survive and who have a history of struggle,” he told a Jesuit journal in June 2022.

“Every day, I carry in my heart dear and martyred Ukraine, which continues to be flagellated by barbarous attacks,” he said in June 2022.

“Generally, the cruellest are perhaps those who are of Russia but are not of the Russian tradition, such as the Chechens, the Buryati and so on. Certainly, the one who invades is the Russian state. This is very clear,” he told a Jesuit magazine in November 2022.

“(The war in Ukraine) is an enormous suffering, enormous. A defeat for humanity,” he said on Dec. 8, 2022.

IMMIGRATION

“We must not be taken aback by their numbers, but rather view them as persons, seeing their faces and listening to their stories,” he told the U.S. Congress in September 2015.

“It is violence to build walls and barriers to stop those who look for a place of peace,” he said in a letter to a Church association in Albania in September 2015.

“It’s hypocrisy to call yourself a Christian and chase away a refugee or someone seeking help, someone who is hungry or thirsty, toss out someone who is in need of my help,” he told a meeting of German faithful at the Vatican in October 2016.

ECONOMY AND CAPITALISM

“The grave financial and economic crises of the present time … have pushed man to seek satisfaction, happiness and security in consumption and earnings out of all proportion to the principles of a sound economy.” Dec. 12, 2013 in a message for World Peace Day.

“Unrestrained (economic) liberalism only makes the strong stronger and the weak weaker and excludes the most excluded,” he told La Repubblica newspaper in October 2013.

“How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points?” from his Apostolic Exhortation in November 2013.

“It is increasingly intolerable that financial markets are shaping the destiny of people rather than serving their needs, or that the few derive immense wealth from financial speculation while the many are deeply burdened by the consequences,” he told a seminar on ethical investing in the Vatican in June 2014.

LGBTQ+ RIGHTS

“If a person is gay and seeks God and has good will, who am I to judge him?” – July 29, 2013, speaking to journalists on plane returning from Brazil.

“Homosexual people have a right to be in a family. They are children of God and have a right to a family. Nobody should be thrown out or be made miserable over it,” he said in a documentary released in October 2020, calling for same-sex couples to be protected by civil union laws.

Asked what he considered the most important thing for LGBT people to know about God, the pope replied in a letter dated May 2022: “God is Father and he does not disown any of his children. And ‘the style’ of God is ‘closeness, mercy, and tenderness'”.

WOMEN

“I believe that it would be … (less conflictual) in the Curia if there were more women. Some people have said it would lead to more gossiping but I don’t think so,” he told Reuters in June 2018, referring to the central administration of the Roman Catholic Church.

However, he ruled out women becoming priests. “Pope John Paul II was clear and closed the door and I’m not going to go back on that,” he said.

“The struggle for women’s rights is a continuing struggle. We have to continue struggling for this because women are a gift. God did not create man and then give him a lapdog to play with. He created both equal, man and woman. .. A society that is not capable of (allowing women to have greater roles) does not move forward,” he told reporters in November 2022.

“I have noticed that every time a woman is given a position (of responsibility) in the Vatican, things improve,” he added.

ABORTION, CONTRACEPTION

“Is it legitimate, is it right, to eliminate a human life to resolve a problem? It’s a human life — that’s science. The moral question is whether it is right to take a human life to solve a problem. Indeed, is it right to hire a hit man to solve a problem?” he told Reuters in July 2022.

“Some think, excuse me if I use the word, that in order to be good Catholics, we have to be like rabbits, but no,” he said during a flight home from the Philippines on Jan. 19 2015, adding the Church promoted “responsible parenthood”.

CLERGY SEX ABUSE

“I feel compelled to personally take on all the evil that some priests – quite a few in number, (although) obviously not compared to the number of all priests – to personally ask for forgiveness for the damage they have done for having sexually abused children,” he said in unscripted comments originally in Spanish, to the International Catholic Child Bureau on April 11, 2014.

“Sexual abuse is such an ugly crime … because a priest who does this betrays the body of the Lord. It is like a satanic Mass,” Francis said on May 27, 2014, on a plane returning from a trip to the Middle East.

“Before God and his people I express my sorrow for the sins and grave crimes of clerical sexual abuse committed against you. And I humbly ask forgiveness.” A July 7, 2014 homily at the Vatican, addressing to six victims of abuse.

“We have to fight against every single case … As a priest, I have to help people grow and save them. If I abuse, I kill them. This is terrible. Zero tolerance,” he told Reuters in July 2022.

ON CLERICS AND THE CHURCH

“Oh, how I would like a poor Church, and for the poor,” he said in March 2013.

“I prefer a Church which is bruised, hurting and dirty because it has been out on the streets, rather than a Church which is unhealthy from being confined and from clinging to its own security,” he said in a November 2013 document, setting out his papacy.

“Men and women of the Church who are careerists, social climbers, who use the people, the Church, brothers and sisters – those they should serve – as a springboard for their own ambitions and personal interest do great damage to the Church.” he told a gathering of superiors general of orders of nuns from around the world on May 8, 2013.

“The hypocrisy of those consecrated men and women who profess vows of poverty, yet live like the rich, wounds the souls of the faithful and harms the church.” In South Korea, Aug. 16, 2014.

“The Curia needs to change, to improve … a Curia that does not criticize itself, that does not bring itself up to date, that does not try to improve, is a sick body,” he said in December 2014, denouncing those who “let themselves be corrupted by ambition and vainglory.”

“Reforming Rome is like cleaning the Sphinx of Egypt with a toothbrush,” he said in December 2017.

MAFIA

Francis branded Italy’s largest organised crime group, the ‘Ndrangheta, “the adoration of evil and the contempt of the common good” in impromptu comments at a mass in Sibari, southern Italy on June 21, 2014.

“Those who in their lives follow this path of evil, as Mafiosi do, are not in communion with God. They are excommunicated,” he said on the same occasion.

CHINA

“… the Chinese deserve the Nobel Prize for patience, because they are good people, they know how to wait, time is theirs and they have centuries of culture. They are a wise people, very wise. I respect China very much,” he told Reuters an interview in June 2018.

“Diplomacy is the art of the possible and of doing things to make the possible become a reality,” he told Reuters in July, 2022, discussing the Vatican’s secret and contested 2018 agreement with China.

“I am always ready to go to China,” in Kazakhstan, September 2022.

DRUGS

“Drug addiction is an evil, and with evil there can be no yielding or compromise,” he told a drug enforcement conference in Rome on June 20, 2014.

CELEBRITY

On a plane returning from South Korea on Aug. 18, 2014, Francis said he learned how to handle his global fame by thinking of his “sins and mistakes” and mortality.

He added: “This will last a short time, two or three years, and then we go to the house of the father,” before making a chopping gesture and a whistling sound.

“To depict the pope as a sort of superman, a sort of star, seems offensive to me. The pope is a man who laughs, cries, sleeps tranquilly and has friends like everyone else, a normal person.” – March 5, 2014 in interview with Italian newspaper.

SCIENCE

“The ‘Big Bang’ that today is considered to be the origin of the world, does not contradict the creative intervention of God, on the contrary it requires it. Evolution in nature is not in contrast with the notion of (divine) creation because evolution requires the creation of the beings that evolve,” he told the Pontifical Academy of Sciences in October 2014.

“When we read in Genesis the account of creation (we are) in danger of imagining that God was a magician, complete with a magic wand that can do all things. But he is not.”

(Reporting by Crispian Balmer; Editing by Frances Kerry)

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By Praveen Menon and Lewis Jackson

SYDNEY (Reuters) -GQG Partners would likely expand its investment in the Adani group, the fund firm’s founder Rajiv Jain said on Wednesday, a week after its $1.9 billion infusion into the embattled Indian conglomerate.

“Chances are we’ll probably buy more because we typically initiate a position and then depending on how things go and how the earnings come through we tend to get it to full size because we’re not at full size at this point,” Jain said on a call with journalists in Sydney.

GQG Partners, co-founded by Jain in 2016, bought shares worth $1.87 billion in four Adani group companies, marking the first major investment in the Indian conglomerate since a short-seller’s critical report in January sparked a stock rout.

Jain, based in Florida, flew to Australia this week for talks with investors, which include some of Australia’s largest pension funds. Last week, pension fund investor Cbus Super, with A$71 billion ($46.82 billion) under management, told Reuters they had queried GQG about the Adani purchase.

A GQG spokesperson said Jain’s trip had been planned for some time and the discussions included topics other than Adani.

“The response actually has been, frankly, more positive than I would have anticipated because they feel that’s how we differentiate ourselves,” Jain said, when asked how the clients have responded to the Adani deal.

“We do our deep dive, and we don’t follow the herd,” he said.

Jain said he has not had a conversation with the Adani group since the transaction because “there is nothing to talk about”.

“We feel that we got an incredible opportunity to initiate positions and over time, the size will increase and most likely will increase depending on the price and how they deliver…,” he said.

ESG TARGETS

New York-based short-seller Hindenburg Research accused the Adani group in a Jan. 24 report of stock manipulation and improper use of offshore tax havens that it said obscured the extent of Adani family stock ownership in group firms. The group has denied the charges.

The allegations resulted in seven of the Indian group’s listed firms losing about $130 billion in market value, and the group also shelved a $2.5 billion share sale.

Adani has major coal assets, which could affect the environmental, social and governance (ESG) targets of superannuation and other Australian investors.

Jain said he agrees on the long-term energy transition but fossil fuel cannot be shut off now.

“It’s a more convenient issue rather than a substantive issue. A lot of people simply do box checking exercise. We feel that you need to make the transition, but the transition has to be based on some realistic aspects,” he said.

($1 = 1.5163 Australian dollars)

($1 = 82.1300 Indian rupees)

(Reporting by Praveen Menon and Lewis Jackson; Editing by Muralikumar Anantharaman)

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Gov. Phil Murphy gets a failing grade on his state school aid proposal, say Sen. Jim Holzapfel and Assemblymen Greg McGuckin and John Catalano. Once again, Brick and Toms River school districts find themselves facing massive aid cuts while the governor increases aid to North Jersey districts and uses funds to support woke initiatives like no fee public defenders.

Gov. Phil Murphy gets a failing grade on his state school aid proposal, say Sen. Jim Holzapfel and Assemblymen Greg McGuckin and John Catalano. (Wikipedia)

“Under Governor Murphy’s proposal, total funding to schools in District 10 would decline by nearly 20%,” Holzapfel said. “That’s unconscionable when we are not only facing a school staffing shortage, but trying to give our students some sense of normalcy coming out of Murphy’s masking and lockdown orders. Adding insult to injury, Murphy seems to have plenty of money in the budget for wealthy school districts in North Jersey and his woke, soft on crime initiatives like eliminating all public defender fees.”

Under Murphy’s school aid budget, many school districts in North Jersey will receive significant increases in funding, especially Edison, which will get the 4th highest increase in aid across the state—from $47 million to $73 million—a 54% jump.

Conversely, the largest cuts in state school aid include $14 million to Toms River Regional (-32%), $2.5 million to Brick (-15%), and $215,000 to Seaside Heights (-32%). Smaller cuts will impact schools in Lavalette (-3.5%) and Point Pleasant Beach (-0.6%).

Total state funding to schools in the 10th Legislative District would decline by nearly 19%.

“The problem is Murphy’s funding formula, it’s a slap in the face to every resident in Ocean County,” added McGuckin. “How can a town with a median income of $85,000 lose $14 million while a town like Edison, with a median income of $111,000, receive a $26 million increase? Gov. Murphy is building a $10 billion budget surplus and putting $1 billion into schools in other parts of the state. There’s absolutely no reason why he can’t properly fund schools in Ocean County.”

Murphy also announced he wants to eliminate public defender fees in the state and increase pay for attorneys acting as public defenders—a move that could cost $4 million.

“How do you cut state aid to Toms River by 32% and Brick by 15% while at the same time increasing funding for public defenders?” Catalano asked. “These proposed policies will cost New Jersey millions of dollars—millions that could be used to help struggling school districts—instead of criminals. The governor needs to get his priorities in order. He must work with the legislature to ensure all schools have more-than-adequate funding.”

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Senators Encourage Schools, Businesses, and Local Governments to Participate

Senator Kristin Corrado and Senator Jean Stanfield are teaming up for a “Socks for Soldiers” collection drive throughout the month of March.

Sen. Kristin Corrado and Sen. Jean Stanfield are teaming up for a ‘Socks for Soldiers’ collection drive throughout the month of March. (SenateNJ.com)

“New socks are always in high demand by our troops who serve both at home and abroad,” said Corrado (R-40). “For those in the field, access to clean socks is a necessity to stay healthy. Our sock drive is a wonderful opportunity to acknowledge the sacrifices of our volunteer heroes and show they have support from back home in New Jersey.”

Corrado and Stanfield (R-8) are collecting sock donations at their district offices throughout the month of March. This is the second year they are hosting the drive together.

Corrado first collected “Socks for Soldiers” during her tenure as Passaic County Clerk, and the campaign has collected thousands of pairs of socks each year.

“New socks are one of the items most often requested by our military men and women serving around the world,” said Stanfield (R-8). “Military members don’t always have access to laundry facilities, and clean socks can be tough to come by. We want our soldiers to be healthy and effective, and this is a great way to help keep them on their toes. For a young man or woman serving far from home, access to new socks can be a difference-maker.”

Donations can be delivered to Senator Corrado’s office at 999 Riverview Dr., Suite 350 in Totowa or to Senator Stanfield’s office at Elmwood Business Park, Suite B-101 in Evesham.

The senators are also urging schools, businesses, and local governments support the effort by posting collection boxes with a “Socks for Soldiers” sign.

Questions about Socks for Soldiers? Please contact:

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His favorite song is bohemian rhapsody… of course 🎹

Special thanks to Goose & Ashton! Follow along on TikTok: https://thedo.do/ashbi681, Instagram: https://thedo.do/Ashbi681 & TikTok: https://thedo.do/daily_life_of_goose.

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You won’t recognize these babies at 8 weeks old ❤️

Keep up with Alexis on TikTok: https://thedo.do/wildlifealexis & Instagram: https://thedo.do/Wildlifealexis

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Watch this rescued baby boar grow up and choose a yellow lab as her dad ❤️

Keep up with Yezhu & Biu Biu on Instagram: http://thedo.do/dora2go and Youtube: http://thedo.do/Dora2go

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BEIJING/TAIPEI (Reuters) -China said on Wednesday it was “seriously concerned” by Taiwan President Tsai Ing-wen’s “transit” plans and had asked Washington for clarification, amid reports she will meet U.S. House Speaker Kevin McCarthy in the United States.

McCarthy plans to meet Tsai in the United States in coming weeks, two sources told Reuters on Monday. That could be instead of the Republican Speaker’s anticipated but sensitive trip to the democratically governed island claimed by China.

McCarthy on Tuesday confirmed plans to meet Tsai in the United States this year and stressed this did not preclude a later visit to Taiwan, Bloomberg news agency reported.

Taiwanese presidents, including Tsai, have a record of travelling through the U.S. en route to other countries, usually for a day or two, though the U.S. government has generally avoided meeting senior Taiwanese officials in Washington.

Taiwan’s presidential office, in a brief statement responding to what it said were media enquiries about Tsai’s overseas visits, said “transit arrangements” had been in place for many years, though it did not directly mention the United States.

“At present, various departments are communicating and preparing for relevant plans, and the planning of the related itinerary will be explained in a timely manner after the plan is finalised,” it added, without elaborating.

Speaking in Beijing, Chinese Foreign Ministry spokesperson Mao Ning said they were “seriously concerned about the news”.

“We have lodged solemn representations with the U.S. side and asked them to clarify,” she added.

China is firmly opposed to any form of official exchanges between the United States and Taiwan, she said, adding: “No one should underestimate the strong determination of the Chinese government and people to safeguard national sovereignty and territorial integrity.”

“The real threat to peace and stability in the Taiwan Strait is the separatist forces of Taiwan independence,” Mao said.

China has rebuffed calls for talks from Tsai since she took office in 2016, believing her to be a separatist.

China has never ruled out using force to bring Taiwan under its control. Taiwan’s government says the People’s Republic of China has never ruled the island and so has no right to claim it, and that only its 23 million people can decide their future.

Taiwan is a constant source of friction between Beijing and Washington. China’s foreign minister said on Tuesday Taiwan was the “first red line” that must not be crossed in Sino-U.S. relations.

China staged military exercises around Taiwan in August following a visit to Taipei by then-U.S. House Speaker Nancy Pelosi.

The United States has no formal diplomatic relations with Taiwan but is bound by law to provide the island with the means to defend itself.

(Reporting by Liz Lee and Ben Blanchard; Additional reporting by Yimou Lee in Taipei; Editing by Muralikumar Anantharaman, Robert Birsel & Shri Navaratnam)

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By Krishn Kaushik and Kirsty Needham

NEW DELHI/SYDNEY (Reuters) – Australia’s Prime Minister Anthony Albanese arrives in India on Wednesday seeking to strengthen the new momentum in ties between the two countries through deeper trade, investment and defence relations.

The three-day visit by Albanese, the first by an Australian prime minister since 2017, comes days ahead of a visit by Japanese PM Fumio Kishida, another member of the so-called Quad grouping that seeks to counter China’s growing domination in the Indo-Pacific region.

Quad includes the United States and India besides Australia and Japan. Australia is due to host a Quad leaders summit in Sydney later this year.

“​India and Australia share warm and friendly relations based on common values and democratic principles. The Strategic Partnership between the two countries was elevated to a Comprehensive Strategic Partnership in June 2020,” the Indian foreign ministry said in a statement ahead of the visit.

“Prime Minister Albanese’s visit is expected to provide further momentum to the Comprehensive Strategic Partnership.”

Speaking in Sydney on Tuesday, Albanese said Australia wanted “greater diversity in who we trade with – and greater variety in what we trade, meaning our economy is more resilient and more secure”.

The two countries signed last year a free trade agreement called the Economic Cooperation and Trade Agreement (ECTA), the first signed by India with a developed country in a decade.

It has resulted in the immediate reduction of duty to zero on 96% of Indian exports to Australia in value and zero duty on 85% of Australia’s exports to India.

However, a much larger Comprehensive Economic Cooperation Agreement has been stuck in negotiations for over a decade. Discussions began in 2011 but were suspended in 2016 as the talks were gridlocked.

The negotiations resumed in 2021 but a deal has yet proved to be elusive. Australian Minister for Trade and Tourism Don Farrell is a part of Albanese’s delegation and the visit is expected to provide an opportunity to hasten the ambitious deal.

Bilateral trade was $27.5 billion in 2021 and India says it has the potential to nearly double to $50 billion in five years under the ECTA.

CRICKET, DEFENCE

Albanese begins his visit in the western city of Ahmedabad in Prime Minister Narendra Modi’s home state of Gujarat, where the two leaders will do some cricket diplomacy by watching the opening of the fourth and final cricket test match between the two countries at a stadium named after Modi.

He then flies to Mumbai where he will become the first foreign leader to be taken on board India’s indigenously produced aircraft carrier INS Vikrant on Thursday. The aircraft carrier was commissioned into the Indian Navy in September.

The Albanese-Modi talks in New Delhi on Friday will be the first meeting of the annual summit announced by the two countries last year.

Trade, investment, defence, education and supply chains of critical minerals are important aspects of the relationship between the two countries, former Indian high commissioner to Australia, Navdeep Suri, said.

The business delegation traveling with Albanese will participate in an Australia-India CEO Forum, which Suri said was encouraging.

“It is not just about a free-trade agreement, but also about investment. Australian companies have been, I believe, shy of investing in India. The same holds true for Australian superannuation funds,” he said.

Suri said the relationship was also critical in the context of Quad.

Last week, Quad foreign ministers met in Delhi and, without naming China, denounced the increased tensions in the South and East China seas, and the militarisation of the disputed territories in the area.

The four Quad navies are scheduled to come together in August for the annual Malabar naval wargaming exercise, to be hosted by Australia for the first time.

“The Quad is now emerging as a pretty significant voice to counter the threat that we perceive,” Suri said. “If we are to reduce our dependence and the world’s dependence on China…then working together becomes important.”

(Reporting by Krishn Kaushik in NEW DELHI and Kirsty Needham in SYDNEY; Editing by Y.P Rajesh and Sharon Singleton)

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By David Shepardson

WASHINGTON (Reuters) -The White House backed legislation introduced on Tuesday by a dozen senators to give the administration new powers to ban Chinese-owned video app TikTok and other foreign-based technologies if they pose national security threats.

The endorsement boosts efforts by a number of lawmakers to ban the popular app, which is owned by Chinese company ByteDance and used by more than 100 million Americans.

The bill would give the Commerce Department the ability impose restrictions up to and including banning TikTok and other technologies that pose national security risks, said Democratic Senator Mark Warner, who chairs the Intelligence Committee. It would also apply to foreign technologies from China, Russia, North Korea, Iran, Venezuela and Cuba, he said.

TikTok criticized the measure, saying in a statement that any “U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide.”

The bill would require Commerce Secretary Gina Raimondo to identify and address foreign threats to information and communications technology products and services. Raimondo’s office declined to comment.

TikTok has come under increasing fire over fears that user data could end up in the hands of the Chinese government, undermining Western security interests.

The senators introducing the legislation, led by Warner and Republican John Thune, also includes Democrats Tammy Baldwin, Joe Manchin, Michael Bennet, Kirsten Gillibrand and Martin Heinrich along with Republicans Deb Fischer, Jerry Moran, Dan Sullivan, Susan Collins and Mitt Romney.

Warner said it was important the government do more to make clear what it believes are the national security risks from TikTok. “It’s going to be incumbent on the government to show its cards in terms of how this is a threat,” Warner said.

White House national security adviser Jake Sullivan praised the bipartisan bill, saying it “would strengthen our ability to address discrete risks posed by individual transactions, and systemic risks posed by certain classes of transactions involving countries of concern in sensitive technology sectors.”

“We look forward to continue working with both Democrats and Republicans on this bill, and urge Congress to act quickly to send it to the President’s desk,” he said in a statement.

Raimondo, in a separate statement, said she “welcomes this legislative framework for addressing these threats and protecting Americans’ safety and national security” and vowed to work with senators “to advance this legislation through Congress.”

TikTok Chief Executive Shou Zi Chew is due to appear before Congress on March 23.

Senator Marco Rubio told Fox News on Tuesday that Warner’s bill doesn’t go far enough, saying that it “takes steps” in the direction of barring TikTok in the United States.

“We should pass a bill that bans TikTok,” Rubio said. “I have the only bipartisan, bicameral bill that actually does that.”

The House Foreign Affairs Committee last week voted along party lines on a bill sponsored by Republican Representative Michael McCaul to give Biden the power to ban TikTok after President Donald Trump was stymied by courts in 2020 in his efforts to ban TikTok and Chinese messaging app WeChat.

Democrats opposed McCaul’s bill, saying it was rushed and required due diligence through debate and consultation with experts. Some major bills aimed at China such as a chips funding bill took 18 months to win approval. McCaul said he thinks the full House could vote on his bill this month.

The U.S. government’s Committee on Foreign Investment in the United States (CFIUS), a powerful national security body, in 2020 unanimously recommended ByteDance divest TikTok because of fears that user data could be passed on to China’s government.

TikTok and CFIUS have been negotiating for more than two years on data security requirements. TikTok said it has spent more than $1.5 billion on rigorous data security efforts and rejects spying allegations.

“The swiftest and most thorough way to address any national security concerns about TikTok is for CFIUS to adopt the proposed agreement that we worked with them on for nearly two years,” TikTok said Tuesday.

(Reporting by David Shepardson; Editing by Mark Porter, Anna Driver and Leslie Adler)

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(Reuters) – Florida Governor Ron DeSantis has called on U.S. President Joe Biden to allow Novak Djokovic to compete at this month’s Miami Open despite the world number one being unvaccinated for COVID-19.

Djokovic, one of the most high-profile athletes unvaccinated against the virus, applied to the U.S. government last month for special permission to play at ATP Masters events Indian Wells, which begins on Wednesday, and the March 19-April 2 Miami Open.

The Serbian, 35, formally withdrew from Indian Wells on Sunday. Florida Senator Rick Scott said that U.S. officials had denied Djokovic’s request.

“This denial is unfair, unscientific and unacceptable,” DeSantis wrote in a letter to Biden on Tuesday.

“I urge you to reconsider. It’s time to put pandemic politics aside and give the American people what they want – let him play.”

Republican DeSantis signed a law in November 2021 banning schools, businesses and government entities from requiring vaccination against COVID-19, drawing condemnation from health experts and Democratic leaders.

The U.S. currently bars unvaccinated foreigners from entry into the country, a policy that is expected to be lifted when the government ends its COVID-19 emergency declarations on May 11.

Djokovic, who missed last year’s Australian Open after being deported from that country due to his vaccination status, has said he would skip Grand Slams rather than have a COVID shot.

He won his record-tying 22nd Grand Slam at the Australian Open in January. He has not played at Indian Wells or the Miami Open – which together comprise the “Sunshine Double” – since 2019.

Last week, Scott and fellow Republican Senator Marco Rubio of Florida also wrote to Biden urging him to grant the waiver request.

Indian Wells tournament director Tommy Haas, the United States Tennis Association and the U.S. Open were among those also hoping Djokovic would be allowed to enter.

“The only thing keeping Mr Djokovic from participating in this tournament is your administration’s continued enforcement of a misguided, unscientific, and out-of-date COVID-19 vaccination requirement for foreign guests,” DeSantis said.

(Reporting by Hritika Sharma in Bengaluru; Editing by Kim Coghill)

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(Reuters) – Intelligence reviewed by U.S. officials indicates that a pro-Ukrainian group was behind last year’s attacks on the Nord Stream natural gas pipelines, but there was no evidence of the Kyiv government’s involvement, the New York Times reported.

FIGHTING

* Russia’s Wagner group of mercenaries has taken full control of the eastern part of town of Bakhmut, Wagner founder Yevgeny Prigozhin said on Wednesday.

* Russian forces made more than 30 unsuccessful attacks over the past day near Orikhovo-Vasylivka alone, 20 km (12 miles) northwest of Bakhmut, the General Staff of the Ukraine’s Armed Forces said in a statement on Wednesday.

* Russian losses in Bakhmut are between five and eight times greater than Ukraine’s, military expert Pavlo Narozhniy told Ukrainian NV Radio.

* Russian Defence Minister Sergei Shoigu said the seizure of Bakhmut would allow Moscow’s forces to mount further offensive operations deeper inside Ukraine. Kyiv has vowed to keep defending the town.

Reuters could not independently verify battlefield reports.

INSIDE RUSSIA

* A Russian opposition activist who used social media to condemn Moscow’s war in Ukraine received an eight-and-a-half year jail sentence on Tuesday after a Moscow court found him guilty of spreading false information about the army.

ECONOMY/DIPLOMACY

* U.S.-led international sanctions on Russia have begun to erode the dollar’s decades-old dominance of international oil trade as most deals with India – Russia’s top outlet for seaborne crude – have been settled in other currencies.

* Media reports on the Nord Stream pipelines attacks are a coordinated effort to divert attention and the Kremlin is perplexed how U.S. officials can assume anything about the attacks without investigation, the Kremlin said.

* U.S. President Joe Biden on Tuesday spoke with French President Emmanuel Macron and discussed Russia’s invasion and challenges posed by China, the White House said.

* Responding to Chinese foreign minister’s remark that the Ukraine crisis seemed to be driven by an “invisible hand”, Kremlin spokesman Dmitry Peskov said “this is not an invisible hand, this is the hand of the United States of America.”

* President Vladimir Putin issued special thanks to female military personnel, saying their courage amazes even the “most hardened fighters”, in a message to mark International Women’s Day on March 8, a public holiday in the country.

* Ukraine has broadened a request for controversial cluster bombs from the United States to include a weapon that it wants to cannibalize to drop the anti-armourbomblets it contains on Russian forces from drones, according to two U.S. lawmakers.

STORIES ABOUT THE FIRST ANNIVERSARY SINCE THE WAR BEGAN

* TIMELINE – Major developments since Russia’s invasion

* Ukraine’s Zelenskiy has defied Putin against the odds

* Putin, secure in power, has set the stage for long war

* A year on, Ukraine and its government have not just survived. They’ve fought back

* Toughened by war’s scars, Kyiv presses on

* Graphics of a year of war and the financial markets

* Russian economy holds up but road back to prosperity may be long

* Moscow’s decades-old gas ties with Europe lie in ruins

* Top brands pull out of Russia, but goods easy to find

* Can U.S. support for Ukraine last?

* External backers pour billions into Ukraine

* How has China stood by ‘no limits’ partner Russia?

* Life and death in Mariupol – a survivor’s tale of war

* Family mourns Bucha victim who became symbol of war

(Compiled by Reuters editors)

(Compiled by Reuters editors)

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TAIPEI (Reuters) – Alphabet Inc.’s Google said on Wednesday it will launch a T$300 million ($9.8 million) fund over the next three years to help boost the Taiwanese media’s continuing operations and digital competitiveness.

Google has come under pressure in some countries to negotiate commercial deals and pay news publishers for their content, though not in Taiwan.Google said it will pay local publishers through what it calls a “Taiwan News Digital Co-prosperity Fund” to strengthen their digital publishing capability.

The fund will help Taiwan local media “hone digital skills, gain expertise and support the sustainable development of Taiwan’s news industry”, the company said. “Even while Google faces many challenges in the overall international environment, Taiwan remains a crucial global stronghold,” Tina Lin, managing director of sales and operations at Google Taiwan, told reporters in Taipei. Google said Taiwan’s media industry has been facing major competitive challenges in adapting to the digital age, pointing out that advertising revenues for traditional media outlets have dropped 70% from 2003 to 2020. The initiative marks the latest effort by the internet giant to develop mechanisms to support and compensate regional news providers whose content appears on Google, as it faces the prospect that governments may impose regulations to require such mechanisms.

An Australian law giving the government power to compel Google and rival Meta Platforms to negotiate content supply deals with media outlets has largely worked, according to an Australian government report in late 2022.

(Reporting by Faith Hung; Editing by Ben Blanchard and Sonia Cheema)

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By Tetsushi Kajimoto and Leika Kihara

TOKYO (Reuters) – Japan’s big companies are expected to deliver the largest pay rise in 26 years in next week’s “shunto” wage negotiations, offering policymakers hope the country might finally emerge from its deflationary doldrums.

But the expected average salary hike of around 3% will likely include just a 1% increase in base pay, casting doubt on whether Japan can achieve the kind of sustained wage gains the central bank sees as key to stably hitting its 2% inflation target.

The outcome of “shunto” wage talks with unions, many of which conclude on March 15, will be crucial to how soon the Bank of Japan (BOJ) could end its bond yield control policy under incoming governor Kazuo Ueda.

It will also test Prime Minister Fumio Kishida’s flagship “new capitalism” policy that aims to more widely distribute wealth among households by prodding firms to hike pay.

The government is preparing to hold a meeting with business and union executives on March 15, the first to be held in about eight years, its top spokesperson said on Wednesday in a sign of the focus Kishida is putting on achieving wage hikes.

Hopes are running high that Japan, which has seen wages stagnate for nearly three decades, will finally see change as companies face pressure to beat a labour crunch and compensate employees for inflation running well above the BOJ’s target.

World’s largest car maker Toyota accepted a union demand for the biggest base salary growth in 20 years, while gaming giant Nintendo plans to lift base pay by 10%.

Big firms will offer on average pay rises of 2.85% for the financial year beginning in April, which would be the fastest pace of increase since 1997, a survey by the Japan Economic Research Center (JERC) showed in January.

The gain will comprise a 1.08% rise in base pay and a 1.78% increase in additional salary based on seniority, it said.

Such hikes would meet Kishida’s calls for companies to offer annual wage hikes of 3%, but miss an ambitious goal of a 5% pay increase demanded by Japan’s labour umbrella Rengo.

Some analysts doubt whether smaller firms can follow suit, as stubbornly high raw material costs erode their margin.

More than 70% of small firms have no plan to raise wages, according to a January poll by the Jonan Shinkin Bank and the Tokyo Shimbun newspaper.

There is also uncertainty on whether companies will keep hiking wages as much next year and beyond.

After hitting a nearly 42-year high of 4.3% in January, core consumer inflation in Japan’s capital Tokyo – a leading indicator of nationwide trends – slowed to 3.3% in February.

The BOJ expects core consumer inflation to slow back below its 2% target towards the year-end, which will take some pressure off firms to keep hiking pay next year.

“Certainly, wages are expected to swing upward considerably in this year’s spring wage talks, but this will be very transitory,” said former BOJ board member Takahide Kiuchi, who is now executive economist at Nomura Research Institute.

“A virtuous cycle between wages and prices is unlikely,” he said of the chance Japan can achieve a combination of rising prices and higher wages – a condition the BOJ sees crucial in heading for an exit from its ultra-loose policy.

Markets are rife with speculation the BOJ will end its unpopular bond yield control policy soon after Ueda – chosen by Kishida to become next BOJ chief – takes the helm in April.

Uncertainty over the sustainability of wage hikes could prod the BOJ to go slow in dialing back stimulus, some analysts say.

Speaking in parliament, Ueda said he was mindful of the demerits of prolonged easing. But he added the recent cost-push inflation must shift to one backed by solid wage growth for the central bank to end ultra-low interest rates.

“The average pace of wage gains consistent with 2% inflation would be around 3%. If wage gains stably exceed 3%, the BOJ may need to overhaul its monetary framework,” said Hisashi Yamada, senior economist at Japan Research Institute.

“But there’s a chance this year’s wage hike could prove temporary. The BOJ will probably wait until next year in doing anything radical, such as ending its bond yield control policy.”

(Reporting by Tetsushi Kajimoto and Leika Kihara; Editing by Sam Holmes)

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By Stefania Spezzati and Elisa Martinuzzi

LONDON (Reuters) – At the grandiose Fontainebleau Miami Beach hotel, Credit Suisse hosted its top clients in October amid growing doubts it was still in the securities trading game after a series of high-profile blunders.

From BlackRock to CBOE Global Markets, investors and trading firms were treated to fireside chats with guests such as former U.S. President George W. Bush, networking by the lavish hotel’s beachside pools, and fine dining. But it wasn’t long before the mood turned sour, according to an executive at the three-day conference.

As the sun rose in Florida on day two, back in London, the Swiss bank’s managers were unveiling their latest restructuring plans – and the global securities trading business being showcased in Miami was in the crosshairs.

Scarred by a $5.5 billion hit from the unravelling of U.S. investment firm Archegos in 2021, a retreat from the hedge fund business and unprecedented client outflows, Credit Suisse said it needed billions in capital and planned to spin off the bulk of its investment bank, sending its shares into a tailspin.

At the Fontainebleau hotel, Credit Suisse bankers were puzzled by the announcements, and concerned about their jobs being on the line, said the executive, who declined to be named.

In subsequent weeks, some of those bankers were let go while others, such as Doug Crofton, then head of global equities for the United States, left to join rivals.

And a spectacular downfall for what was once a key revenue generator for Switzerland’s second-biggest bank ensued, as some clients and investors pulled back, said two people with knowledge of the matter who declined to be named.

Since then, Credit Suisse has struggled to convince investors its overhaul will put the bank on firmer footing – and how it will reorganise securities trading is a big piece of the puzzle.

“No business is viable when its revenues vanish and expenses continue,” said Peter Hahn, emeritus professor of banking and finance at The London Institute of Banking & Finance. “Cost-cutting and efficiency can improve the profitability of a leading or even marginal business, but not a failing business.”

In response to questions from Reuters for this article, a spokesperson for Credit Suisse in London said: “We never comment on rumours or speculation.”

OTHER OPTIONS?

In a sign of investor angst, Harris Associates, one of Credit Suisse’s biggest shareholders in recent years, said this week it had sold its stake. Its chief investment officer, David Herro, told the Financial Times that he lost patience with the bank’s strategy to stem persistent losses and a client exodus.

Under the overhaul unveiled by Chief Executive Ulrich Koerner in October, trading would in future serve the needs of the bank’s wealth clients – its main focus – and also work with CS First Boston (CSFB), its newly created investment bank.

Trading, which accounted for 26% of the bank’s revenue in recent years, would make up about 15% of sales in its new, streamlined form at the revamped Credit Suisse by 2025, it said.

Credit Suisse latest results showed, however, that revenue from buying and selling stocks and bonds slumped by 88% in the last three months of 2022 from a year earlier.

The decline in equities trading was particularly brutal. In the three months through December, revenue plummeted 95% to 18 million Swiss francs ($19 million).

Koerner told analysts in February that some of the losses at the investment bank were related to “intentional de-risking”, without elaborating.

The bank has set up a non-core unit where it will park some unwanted activities to wind down or sell, but it remains unclear which assets or portfolios will be moved.

(Graphic: Credit Suisse goes off piste, https://www.reuters.com/graphics/CREDITSUISSEGP-OUTLOOK/klvygdbrgvg/chart.png)

But keeping the equities business in its streamlined form has not been the only option the bank has considered, according to one of the people with knowledge of the matter and a third source, who declined to be named.

As Credit Suisse worked on its turnaround plan last autumn, executives informally considered selling some parts of the equity business though the option was not formally reviewed by the board, the two people said.

The option wasn’t pursued partly because managers thought it would be difficult to find buyers, they said.

The complexity of extricating the technology platforms that allow equity trading and then integrating them at another bank was another factor in Credit Suisse’s decision to hold off, the people said.

Credit Suisse declined to comment.

Now, the fourth-quarter slump will make it harder to convince investors the bank should stick with the business, said Hahn at The London Institute of Banking & Finance.

By comparison, revenue from equities trading at five major Wall Street banks only fell 10% on average in the same period.

‘A ROCK AND A HARD PLACE’

Even after Credit Suisse stopped financing hedge funds following the Archegos implosion in March 2021, the equities business remained a key part of its investment bank revenue.

Credit Suisse profits in equities by making a cut on large volumes of shares it trades on behalf of clients, and by structuring derivatives, or complex financial products, which are often sold to more sophisticated wealthy customers.

The plunge in fourth-quarter revenue included a sharp decline in derivatives, according to the two of the people with knowledge of the matter, as customers shunned Credit Suisse after its credit rating deteriorated.

In November, S&P Global Ratings downgraded the bank’s long-term rating to one step above junk, following revisions on some ratings from other credit agencies.

The downgrades damaged the bank’s ability to lure clients who instead looked for what they considered to be safer and more attractive alternatives, three equities traders who structure derivatives at rival lenders said.

The equities market is dominated by big U.S. banks such as JPMorgan Chase, Morgan Stanley and Goldman Sachs with the means to invest consistently in the business and new technology.One option Credit Suisse is considering is to move its equities research to CSFB, Reuters reported.

CSFB aims to become a “super boutique” with as much as $3.5 billion in revenue by advising on deals including initial public offerings. CSFB would benefit from working with Credit Suisse’s equities bankers to find buyers for shares.

Slimming down the equities business would draw a further line under Credit Suisse’s investment bank ambitions.

“There are key question marks around the importance of the equities business given it requires huge scale to make it economically viable,” said Thomas Hallett, an analyst at Keefe, Bruyette & Woods.  

“The group is stuck between a rock and a hard place.”

($1 = 0.9409 Swiss francs)

(Additional reporting by Oliver Hirt, Noele Illien and Sumeet Chatterjee; Editing by David Clarke)

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By Rod Nickel and Pavel Polityuk

KYIV (Reuters) – Facing fields full of mines and short of cash, many Ukrainian farmers are likely to sow a smaller area this spring than they did following Russia’s invasion, in what could be a further blow to global food supplies after disruptions last year.

Ukraine is a major supplier of wheat and corn to world markets and production and exports slumped last year due to the war, sending prices for key commodities sharply higher before stabilising.

With farmers hurting from soaring costs including fertiliser, Ukraine’s export capacity severely limited because of Russia’s occupation of some areas and unexploded ordnance near former frontlines, supply could be squeezed further.

The farmers, who began planting the country’s spring crop last week, also earn less than before as buyers factor in the war’s higher logistic costs and risks, giving them little incentive to maximize output. Ukraine can ship from just three Black Sea ports running at half capacity under an international shipping deal.

“Almost all crops are making a loss at the moment,” said Dmitry Skornyakov, CEO of HarvEast, a large agricultural producer.

Agricultural companies, which plant most of Ukraine’s fields, are short 40 billion hryvnia ($1.08 billion) to carry out spring work, the Agrarian Council said. The country’s spring-planted crops mostly include corn, oilseeds and vegetables.

Denys Marchuk, deputy chair of the Ukrainian Agrarian Council, the biggest farmer organization, expects plantings of corn, a fertilizer-intensive crop, to plummet 20% from last year, which itself saw a 27% decrease in harvested area.

Overall, the government expects spring plantings to fall only 5% from last year, underlining a more sanguine official assessment of potential losses.

The smaller spring crop would come as Ukraine’s harvest of wheat grown over winter is expected to fall sharply, although not enough to spur export curbs.

“Of course it’s not paradise. The situation is still challenging,” Ukraine’s first deputy farm minister, Taras Vysotskiy, told Reuters.

Farmers are likely to prioritize cheaper-to-grow sunflower, said Mike Lee, director of Green Square Agro Consulting. Grains have traditionally dominated Ukraine’s fields, but lower-cost and higher-priced oilseeds are gaining popularity during war.  

Ukraine was the world’s fourth-largest corn exporter before Russia’s full-scale invasion in 2022 and the biggest sunflower oil exporter.

Farmers in top exporter United States plan to boost corn plantings, possibly cushioning the blow of lower Ukrainian production.

Ukrainians will also likely plant less potato, a Ukrainian diet staple, due to poor profit potential, said Mykola Hordiichuk, managing director of Agrico Ukraine, a farming operation. That may result in a shortage of retail-quality potatoes, increasing prices for Ukrainian consumers later in the year, he added.

One optimistic sign: Ukraine agricultural scientists said soil moisture reserves looked ample, helpful for germinating crops.

DANGER IN FIELDS

Mines are a growing occupational hazard. On Monday, two farm workers died in separate mine explosions working fields in the southern Kherson and Mykolaiv regions, authorities said.

Vasyl Shtendera, 49, who farms in a Kherson area recaptured by Ukraine last year, doubts he will plant crops this spring.

His fields are mined, some equipment was destroyed and fertilizer is too expensive, he said.

“I have no moral right to send workers to fields as it is dangerous for life,” he said, adding that there is no demining work happening there.

Companies lacking demining certification are charging farmers up to $3,000 per hectare to clear fields, Ukrainian media reported on Tuesday.

Some Ukrainian officials estimate that all land in areas of hostility is mined, totalling some 10 million hectares (24.7 million acres) or nearly one-third of arable land. Vysotskiy, however estimated that the mined arable area may be just 2.5 million hectares, with only 500,000 hectares that will be impossible to use this spring.

The ministry is aiming to clear up to 800,000 hectares of farmland in time for planting, Vysotskiy said.

Michael Tirre, Europe program manager for the U.S. State Department’s Office of Weapons Removal, which funds Ukrainian demining, said he is seeing impatient farmers trying to clear their own mines, something that gives him “goosebumps”.

“It is a sad reality because there just aren’t enough demining teams to go around.”

Farmer Oleksandr Klepach has cleared dozens of shells around his Mykolaiv region farm himself, taking advice from demining experts and Internet videos.

Coming up with a money-making plan is equally challenging. Fertiliser and transportation costs have doubled, but he intends to sow sunflower and peas on land that turned to weeds during occupation.

“I think it will be problematic to make a profit,” he said.

($1 = 36.9070 hryvnias)

(Reporting by Rod Nickel and Pavel Polityuk in Kyiv; Editing by Mike Collett-White and Emelia Sithole-Matarise)

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