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AUSTIN — Tesla welcomed throngs of electric car lovers to Texas on Thursday for a huge party dubbed a "cyber rodeo" to inaugurate a manufacturing plant the size of 100 soccer fields.

Online buzz has swelled ever since Tesla's founder and chief executive Elon Musk tweeted word of the event, with reports of perhaps as many as 15,000 guests taking part in the official plant opening in the state capital Austin.

Photos and videos began flooding Twitter after the doors of the cavernous factory opened to guests late in the afternoon with the plant decked out in a distinctive nightclub look.

Visitors mingled under red and blue lights while production machinery and Tesla models were displayed like museum artwork. Outside, cars were parked in the pattern of the Texas flag.

"I think Tesla is going to bring another level of sizzle and high tech into our community," Austin resident Karin Richmond said at the event.

Bulldozers were still at work near the so-called "gigafactory", which signs indicated was constructed with more steel than New York City's famed Empire State Building.

Farewell Silicon Valley 

The move to a US state known for conservative Republican politics is seen by some as Musk stepping away from the liberal Silicon Valley culture in which he made his fortune.

The South African-born serial entrepreneur is now ranked the world's richest man. He founded Tesla in Silicon Valley in 2003, but shifted its headquarters to Texas late last year.

Musk has clashed with California regulators, particularly when health precautions mandated at the height of the pandemic closed Tesla's Fremont plant.

California is also investigating whether discrimination took place at Tesla's plant there.

It remains to be seen how Musk will navigate conservative policies in Texas, such as the state's restrictive new abortion law and limits on seeking health services for transgender children.

Part of the Texas allure is a lack of corporate or personal income taxes. Tesla received more than $60 million in tax breaks to build the factory, which is expected to employ 10,000 people over time.

"I completely understand them moving from California, with all the taxes and everything," said 25-year-old attendee Dirk Sanford, proprietor of a local shop.

While Musk has spoken of a desire for a shift away from climate-wrecking fossil fuels, Texas is known for oil rigs and gas-guzzling cars and trucks.

"I think he is having a bit of an identity crisis and forgotten who his customer is, and it is going to come back to bite him," tech analyst Rob Enderle said of Musk.

"He is drifting to the right; what he doesn't seem to remember is that most of the people who buy electric cars are the liberals."

Cybertruck 

Giga Texas, as the plant is also called, has been in operation since late last year. It is the fifth and largest gigafactory cranking out battery packs and vehicles for Tesla.

Since starting with a car plant in Silicon Valley, Tesla has gone global with mega-factories in Berlin and Shanghai as well as in US states New York and Nevada.

The Austin plant will produce Model 3 and Y cars and eventually a Cybertruck pickup and a semi for hauling cargo trailers set to go into production next year, according to Edmunds analyst Jessica Caldwell.

Pickup trucks are a hot item in the United States, and having a winning electric model is seen as key in the market.

Electric truck maker Rivian has already started deliveries.

"Rivian right now is the must-have truck," analyst Enderle said.

"The fact that Rivian was able to get a truck out faster than Tesla was points to a problem with Tesla."

Tesla demand is outstripping supply to the point that some Model Y and 3 cars are being delivered months late in parts of the world, according to Wedbush analyst Dan Ives.

"The solution is mainly in Austin and Berlin," Ives said.

Gigafactory Berlin officially opened last month.

Tesla wants to ramp up production by some 50 per cent annually, and should easily top that goal this year, Musk said recently.

He has delivered more than a million vehicles during the past 12 months despite production constraints caused by a global chip shortage plaguing many industries.

WASHINGTON — The International Monetary Fund (IMF) announced on Thursday that after months of negotiations it reached a staff-level agreement to provide Lebanon with $3 billion in aid to help it emerge from a severe economic crisis.

The country has been battered by triple digit inflation, soaring poverty rates, and the collapse of its currency since a 2020 debt default, and officials in Beirut applauded the announcement as it will open the door to additional financial support. 

The deal is "a visa stamp for donor countries to begin co-operating with Lebanon and to put Lebanon back on the global finance map", Prime Minister Najib Mikati told reporters after the IMF announcement.

Ernesto Ramirez Rigo, who led the IMF mission to Lebanon, said that once approved by the global crisis lender's board, the 46-month financing program will "support the authorities' reform strategy to restore growth and financial sustainability".

However, approval is contingent on "timely implementation of all prior actions and confirmation of international partners' financial support", he said in a statement.

Rigo blamed "many years of unsustainable macroeconomic policies" for the crisis that came to a head in 2020 when Lebanon defaulted on its sovereign debt for the first time in its history.

The Lebanese pound has lost about 90 per cent of its value on the black market and four out of five Lebanese now live below the poverty line, according to the United Nations.

The situation has been exacerbated by soaring inflation, the COVID-19 pandemic and the war in Ukraine, as well as the August 2020 port of Beirut explosion.

"Lebanon is facing an unprecedented crisis, which has led to a dramatic economic contraction and a large increase in poverty, unemployment, and emigration," Rigo said, who stressed that the programme will support increased social spending.

'In Lebanon's best interest' 

The aid would be released under the global lender's Extended Fund Facility but only after the parliament in Beirut approves a 2022 budget and a new bank secrecy law to fight corruption.

It also will require cabinet approval of a debt restructuring plan, with "sufficient creditor participation to restore debt sustainability and close financing gaps", Rigo said.

Officials "expressed their strong commitment to carry out this reform program and sustain decisive implementation during the upcoming parliamentary and Presidential electionsx", Rigo said.

Mikati agreed that "these reforms are in Lebanon's best interest", and said they will be fully implemented.

In a joint statement with President Michel Aoun, he said the IMF deal will help "to revive Lebanon and put it on the path of recovery and solutions".

HONG KONG — Asian equity markets fell on Thursday after minutes from the Federal Reserve's latest policy meeting indicated it is preparing to "aggressively" wind back its monetary policy, while oil prices pared another big drop.

The eagerly awaited summary dealt another blow to traders, who have grown increasingly concerned that officials will not be able to rein in 40-year-high inflation while also preventing the world's top economy from tipping into recession.

According to the minutes, several policymakers were in favour of lifting interest rates half a per centage point while they also talked about offloading their bond holdings at a rate of $95 million per month — a process known as quantitative tightening.

The Fed's balance sheet runs to about $9 trillion. 

News that such measures were being considered comes after several members of the policy board made hawkish comments about lifting rates. The next meeting takes place May 3-4.

The prospect of borrowing costs rising at a quicker pace and to a higher level over the coming months has added to a wave of uncertainty across trading floors caused by the war in Ukraine.

While data at the moment points to a healthy economy, commentators warn of possible hard times ahead.

"This job of orchestrating a soft landing [for the economy] is going to be difficult," Tracie McMillion, at Wells Fargo Investment Institute, told Bloomberg Television.

"We've only seen quantitative tightening once before and it was to a lesser degree than it will be this time, and it ended shortly after it started."

Wall Street tumbled for the second day in a row, with the Nasdaq again losing more than 2 per cent, as tech firms are more susceptible to higher rates.

"The minutes... show that Fed officials are becoming increasingly alarmed at how inflationary pressures are increasing and are determined to send a message to markets that they will act decisively to keep it in check," said CMC markets analyst Michael Hewson.

Investors are now awaiting the release of minutes from the European Central Bank's most recent meeting, looking for signs that officials there are preparing to change from their more dovish approach to policy.

Asia broadly followed New York down, with Tokyo, Sydney, Seoul, Taipei, Singapore, Mumbai, Wellington, Bangkok and Manila all in the red.

Hong Kong and Shanghai were also sharply lower, having given up early gains fuelled by hopes that China will ease monetary policy as its giant economy struggles under the weight of lockdowns in various parts of the country.

Authorities will step in to use tools at an "appropriate time", according to the readout of a State Council meeting chaired by Premier Li Keqiang, adding they would also look at other ways to increase consumption. 

London fell in the morning but Paris and Frankfurt rose.

On oil markets, both main contracts enjoyed gains a day after tanking more than 5 per cent on concerns about demand caused by a possible economic slowdown.

The commodity had also been hit by an announcement from the International Energy Agency that it will release tens of millions of barrels to offset those lost through sanctions on Russia, and owing to China's COVID lockdowns.

"With the IEA release and the US [reserves] releases now priced in, Asia has walked in and bought the dips in both contracts," said OANDA's Jeffrey Halley.

"That is consistent with the usual behaviour of buyers from the energy-hungry region, with plenty of Asian interest to buy on any and all pullbacks."

LONDON — Global equities sank on Wednesday on bets the Federal Reserve will act more aggressively to bring inflation under control, while oil prices rebounded.

Asian and European bourses retreated after heavy falls on Wall Street on Tuesday.

The euro hit a one-month dollar low before minutes from the Fed's latest policy meeting was due to start on Wednesday.

London stocks slid also as UK businesses and individuals saw a major tax hike kick in, worsening Britain's cost-of-living crisis as domestic energy bills rocket.

Minutes from the Fed's March meeting will be pored over for insights into the thinking of US central bankers, in light of the Ukraine war and recent data suggesting the world's top economy remains resilient.

'Significant headwinds' 

"Investor confidence might have improved from the low point in early March when the Ukraine war was unfolding," said AJ Bell investment director Russ Mould. 

"However, there remain significant headwinds for equities and the latest trouble spot is what the Federal Reserve might do to curb inflation."

Investors are fretting also over how quickly officials will withdraw their vast pandemic-era financial support.

After last month's 0.25-percentage-point hike in US interest rates, the focus is now on its plans for May's meeting, with expectations growing that the Fed will announce a 0.50-point lift followed by several more before the end of the year.

Fed Governor Lael Brainard, who is considered a dove, on Tuesday spooked traders by saying bringing US inflation down from 40-year highs was of "paramount importance" and that the bank was "prepared to take stronger action" if warranted.

Brainard also said bank policymakers were ready to start reducing its vast bond holdings, which have helped keep borrowing costs down.

"Brainard's hawkish comments rocked the markets," said Swissquote analyst Ipek Ozkardeskaya.

"In this tense environment, investors will be closely watching the Fed minutes today. There would be no surprise if the Fed hinted a 50-basis-point hike [for] the next meeting," she noted.

All three main indices on Wall Street ended on Tuesday in the red, with the Nasdaq off more than 2 per cent owing to tech firms being more susceptible to higher rates.

Oil rebounds 

Oil prices rebounded on Wednesday, after European Council chief Charles Michel told the European Parliament that it must impose oil and gas sanctions on Russia "sooner or later".

Crude futures had slid the previous day on the European Union's decision not to include Russian oil in a fresh round of sanctions.

Adding to downward pressure on crude is a strong dollar, thanks to the prospect of a series of US interest rate hikes.

Oil is priced in dollars, making it more expensive for clients using other currencies.

ATHENS — Thousands of Greeks demonstrated in Athens against soaring prices on Wednesday as a general strike shut down public services.

Some 10,000 marched in the capital, with more protests held in other major cities, police said.

Ferry and train services were halted, though airports were unaffected by the walkout.

"Compared to the cost of living, salaries are paltry," said one of the demonstrators, 32-year-old teacher Yannis Bitzoulis.

"Society is on its knees," he said.

Countries across Europe are facing rising inflation as energy prices have jumped since Russia invaded Ukraine on February 24, with the growing cost of living also sparking strikes and protests in fellow EU nation Spain.

Greeks have been hit by rising electricity and heating bills as well as housing costs.

Prices rose 6.2 per cent in January compared with a year earlier — a record for Greece since it adopted the European Union's single currency in 2001. It bumped up to 7.2 per cent in February.

"Everything is more expensive, we can no longer cope," said Evangelia, who works for a social collective and declined to give her surname.

The country's biggest civil service and private sector unions, which called the industrial action on Wednesday, are demanding a raise in the minimum wage — currently at under 780 euros a month — that is among the lowest in the eurozone.

The Communist-affiliated Pame union on Wednesday said that the minimum wage had been slashed by 22 per cent in 2012, at the height of Greece' near-decade debt crisis.

Facing a drop in popularity ahead of 2023 elections, Prime Minister Kyriakos Mitsotakis last month announced a 1.1 billion-euro ($1.2 billion) benefits package to help poor households weather rising prices.

TOLYATTI, Russia — For generations the Russian city of Tolyatti has been synonymous with leading car manufacturer Avtovaz, maker of one of the country's best-known brands, the Lada automobile.

But with the West piling sanctions on Russia over its military action in Ukraine, Tolyatti and the workers of Avtovaz are bracing for tough times.

Gathered in a small apartment in the city's Avtozavodsky district, a residential area surrounding the sprawling factory, several workers from the "Yedinstvo" (Unity) trade union said they were worried about their future.

"It's a factory town. Everyone here works either for the factory or for the police," said Alexander Kalinin, 45, a freight elevator operator at Avtovaz for 15 years.

Founded in the 1960s for the Soviet Union to meet the growing demand for affordable cars, the Avtovaz factory's flagship Lada vehicles became widely known for their simplicity and durability.

The factory was set up in the town of Stavropol about 780 kilometres southeast of Moscow, which was renamed Tolyatti after Italian Communist politician Palmiro Togliatti.

The plant survived the economic crisis that followed the 1991 collapse of the Soviet Union and was eventually taken over by French auto group Renault.

"For Tolyatti, the factory is everything. The whole city was built around it," said 33-year-old Irina Myalkina, a worker in the spare parts warehouse for 11 years.

"When I started, I was full of enthusiasm, I hoped for a good income. I still hope," Myalkina added with a sad smile.

'People are nervous' 

Most of the factory's assembly lines stopped running after Moscow moved troops into Ukraine on February 24 and sanctions meant it could no longer receive components from aboard.

Workers are on paid leave, with two-thirds of their usual wage, which for Myalkina means receiving 13,000 rubles (about $140) instead of her usual 20,000 rubles ($215).

Prices for food and other basic goods are soaring, in Tolyatti as elsewhere in Russia.

"People are nervous," Myalkina said.

After completing its acquisition of Avtovaz, Renault funnelled billions of euros into the Soviet-era factory, but also carried out huge staff cuts, leaving fewer than 40,000 workers out of 70,000.

"There were many problems with the departure of employees, but nevertheless there was a clear positive trend," said Andrei Yakovlev, head of the Institute for Industrial and Market Studies at Moscow's Higher School of Economics.

"A major Russian car manufacturer was being born." 

Now its future is very much in doubt, with Renault, under intense pressure to boycott Russia, considering whether to withdraw from Avtovaz.

No one from the company would agree to talk and it even refused to give access to the Lada Museum in Tolyatti during a recent visit.

When AFP was filming near the factory, Avtovaz security called police, who questioned and released the journalists after several hours.

The factory's employees have been forced to take their three weeks of summer vacation in April, while Renault considers its options.

Second jobs 

Many employees have already been forced to take up second jobs, like Leonid Emchanov, 31, a mechanic now moonlighting as a security guard to feed his family. 

"I am the only one in the family who works. I have two children, my wife... is on maternity leave. I have to work two jobs, but even this is not enough," he said.

If Avtovaz is unable to survive this crisis, its demise would mark the end of an industrial era for Russia, and for its many Lada enthusiasts.

In an underground garage in Tolyatti, two men in vintage overalls were busy at work on an '80s Lada Niva, a legendary four-wheel drive vehicle, that was shining with a fresh coat of red paint. 

"Since childhood, my whole life has been linked to the factory," said one of the mechanics, Sergei Diogrik.

"All our relatives in Tolyatti worked at the factory and I myself worked there. I had no choice, everything is related to the company," he added. 

The 43-year-old founded and runs the Lada History Club, bringing together fans of the Soviet car from all over the world. 

"It was a powerful producer. The record in the early 1980s was 720,000 cars per year," he said, compared to nearly 300,000 cars produced in 2021.

"It was fashionable to come here. Now the fashion is for young people to go to Moscow or somewhere else," Diogrik added.

He said he is trying to remain hopeful, pointing out that the factory and its workers already survived the economic hardships of the 1990s.

"A Russian person who survived the 90s, especially in Tolyatti, will cope now, everything will be fine."