Lakshmi Mittal, French govt strike deal over disputed Florange unit

December 1, 2012

Mittal

Paris, December 1: Steel giant ArcelorMittal and the French government have reached an agreement on the persisting deadlock over the company's plans to shut down two furnaces in Florange and the government's nationalisation plan of the site.

French Prime Minister Bernard Ayrault announced on Friday night that the government had shelved its nationalisation plan. In return, ArcelorMittal chief Lakshmi Mittal has promised to invest 180 million euros at the Florange site over the next five years and agreed to retain the 629 workers.

"Since its installation, this government has worked without respite so that the industrial site in Florange continues to survive and develop and to make sure that the workers are protected. The government had three aims - no layoffs, significant investment in the site and the maintenance of the furnaces of Florange to prepare for a future industrial project, ULCOS," Mr Ayrault said in Paris.


"ArcelorMittal have accepted the stated conditions. Tonight I can announce there will be no layoffs at Florange. The Mittal group has committed to investing at least 180 million euros in Florange over the next five years," he said.

ArcelorMittal wanted to shut down two furnaces of the site that were not profitable, triggering a huge controversy in France. France's Industrial Recovery Minister Arnaud Montebourg had threatened to nationalise the site until a new buyer was found. He also accused Mr Mittal of lying, saying he does not respect France and should therefore leave the country.

Mr Mittal gave in to the pressure that was building up before the Friday night deadline for closure. The French government wanted to find a buyer for the Florange site but said ArcelorMittal would have to give up the entire site, including the profitable part and not just the two furnaces they wanted to shut down.

Finally, a compromise was reached between ArcelorMittal and the French governement. This will be seen as a political triumph for President Francois Hollande, who had promised to save the workers' jobs. This is perhaps not a big loss for Mr Mittal, given that two thirds of his European business is based in France. Much of it is also profitable due to its proximity to the German auto industry.

"In France people tend to believe that the point of view of the state has to prevail against private interest. We are in a country where we have a statist culture. The other problem is that Mr Mittal made a lot of promises when he bought Arcelor. One of them was that he would make European management in charge of European interests and he didn't stick to his promise," said French economist Elie Cohen.

The workers at Florange, however, are not celebrating. They say they do not trust Mr Mittal's plan and are disappointed that there will be no nationalisation of the site. This despite assurances from Mr Mittal that 180 million euros will be invested and no jobs will be lost.

The sites ArcelorMittal have shutdown in Belgium and France so far were part of the group's strategy to tackle losses from over-capacity and low demand in the European steel industry. However, ArcelorMittal are likely to see this as an investment to boost its image in France.



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Agencies
June 12,2020

Kabul, Jun 12: A blast in a mosque during Friday prayers in the western part of capital Kabul has killed at least four people and wounded many more, Afghanistan's interior ministry said.

"Explosives placed inside the Sher Shah Suri Mosque exploded during Friday prayers," said a statement issued by the ministry, which added that the mosque's prayer leader Mofleh Frotan was among those killed.

Interior ministry spokesman Tariq Arian said police have cordoned off the area and helped move the wounded to ambulances and nearby hospitals.

No group immediately claimed responsibility for the attack but a mosque attack earlier this month was claimed by an ISIL (or ISIS) group affiliate, headquartered in eastern Afghanistan's Nangarhar province.

"Interestingly, every time you have the peace process gaining some momentum and pace, you have these kinds of attacks in the country," Habib Wardak, a national security analyst based in Kabul, told Al Jazeera.

"The Islamic State group claimed responsibility for the attack that happened last week on a mosque in Kabul, so despite the fact that you have these news and press conference from the government that they have eliminated ISIL, how can they conduct such sophisticated operations?"

Friday's blast had parallels to one earlier this month, when an explosion tore apart a famous Kabul mosque and led to the death of renowned Afghan cleric Maulvi Ayaz Niazi.

"In this attack, the imam seems to be the target, not the rest of the crowd. These are the imams who have supported the peace process with the Taliban movement," Wardak said.

"The other political aspect for these kinds of attacks is that there are peace spoilers trying to convey a message that peace with the Taliban will not eradicate violence in the country because you have ISIL."

Violence has spiked in recent weeks in Afghanistan with most of the attacks claimed by the ISIL affiliate.

The United States blamed the armed group for a horrific attack last month on a maternity hospital in the capital that killed 24 people, including two infants and several new mothers.

The ISIL affiliate also took responsibility for an attack on a bus carrying journalists in Kabul on May 30, killing two.

It also claimed credit for an attack on the funeral of a strongman loyal to the government last month that killed 35 people.

Meanwhile, the US is attempting to broker peace talks between the Afghan government and the Taliban to end 18 years of war.

Washington's peace envoy Zalmay Khalilzad was in the region earlier this week trying to resuscitate a US peace deal with the Taliban.

The peace deal signed in February calls for the withdrawal of the US and NATO troops from Afghanistan in return for a commitment by the Taliban to not launch attacks on the US or its allies.

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News Network
June 13,2020

Shanghai, Jun 13: Authorities in Beijing have temporarily shut a major wholesale agricultural market following a rise in locally transmitted novel coronavirus infections in China's capital city over the past two days.

The closure of the Xinfadi wholesale market at 3 a.m. local time on Saturday (1900 GMT on Friday), came after two men working at a meat research centre who had recently visited the market were reported on Friday as having been infected by the novel coronavirus. It was not immediately clear how the men had been infected.

Concern is growing of a second wave of the new virus, even in many countries that seemed to have curbed its spread. It was first reported at a seafood market in Wuhan, the capital of central China's Hubei province, in December.

Beijing authorities had earlier halted beef and mutton trading at the Xinfadi market, alongside closures at other wholesale markets around the city.

Reflecting concerns over the risk of further spread of the virus, major supermarkets in Beijing removed salmon from their shelves overnight after the virus causing COVID-19 was discovered on chopping boards used for imported salmon at the market, the state-owned Beijing Youth Daily reported.

Beijing authorities said more than 10,000 people at the market will take nucleic acid tests to detect coronavirus infections. The city government also said it had dropped plans to reopen schools on Monday for students in grades one through three because of the new cases.

Health authorities visited the home of a Reuters reporter in Beijing's Dongcheng district on Saturday to ask whether she had visited the Xinfadi market, which is 15 km (9 miles) away. They said the visit was part of patrols Dongcheng was conducting.

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China reported 11 new COVID-19 cases and seven asymptomatic cases for Friday, the national health authority said on Saturday. And all six locally transmitted cases were confirmed in Beijing.

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News Network
July 27,2020

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.

MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.

The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.

Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.

S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.

Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.

US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.

"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.

Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.

The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.

Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.

MORE STIMULUS

Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.

That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.

Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.

US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".

Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.

Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.

"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.

The dollar index dropped 0.3 percent to its lowest level in nearly two years.

The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.

Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.

Oil prices dipped on worries about the worsening Sino-US relations.

Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.

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