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PARIS — Electric cars — key to reducing emissions and meeting climate change goals — have boosted their market share in Europe, data showed on Friday, as the region prepares to abandon petrol and diesel.

Battery electric vehicles more than doubled their share of new car sales in Europe in the second quarter, according to the European Automobile Manufacturers' Association (ACEA) which groups together major car firms.

All-electric vehicles accounted for 7.5 per cent of new car sales in Europe in the three months from April through June, against 3.5 per cent during that period last year.

In absolute terms, sales of battery electric vehicles more than tripled across Europe to reach 210,298 cars.

The ACEA said there were substantial gains in the region's top four markets, led by sales more than quadrupling in Spain and Germany.

The publication of the data comes a week after the European Commission unveiled plans for what amounts to an effective ban on sales of new petrol and diesel vehicles from 2035.

It believes such a move is necessary for Europe to meet its goal of becoming carbon neutral by mid-century and meet its goals under the 2015 Paris accord that aims to limit the global rise in temperatures.

The ACEA also found sales jumped of different types of hybrid vehicles, which are seen by some as a transitional technology as they can reduce emissions from standard petrol or diesel vehicles. 

"Plug-in hybrid electric vehicles had an even more impressive second quarter of 2021, with registrations jumping by 255.8 per cent to 235,730 units," said the ACEA. That took their market share to 8.4 per cent.

Slump in petrol cars 

Sales of hybrids which cannot be recharged from power mains also more than tripled to 541,162 vehicles, remaining the largest category of alternatively-powered cars with a 19.3 per cent market share. 

Meanwhile, registrations of new petrol and diesel vehicles increased given the low number of vehicles sold in the second quarter last year, when many European countries had severe restrictions on businesses due to the pandemic.

But in terms of market share, which shows the relative weight of the current choices being made by consumers, both petrol and diesel saw huge drops.

Diesel saw its market share plunge to 20.4 per cent from 29.4 per cent. 

Petrol, which still claimed a majority of sales in the second quarter of last year with a 51.9 per cent of market share, saw a bigger slump to 41.8 per cent.

The data also comes as a growing number of automakers are unveiling their plans to shift to all-electric vehicles as policymakers indicate the days of internal combustion engines are numbered.

Daimler was the latest, announcing on Thursday that from 2025 it would introduce only electric new car platforms as it prepares to be ready to make a complete shift by 2030.

WASHINGTON — Against expectations, US retail sales rose in June, the Commerce Department said on Friday, with shoppers stepping up purchases at department stores and electronics outlets as pandemic business restrictions ease.

Sales rose 0.6 per cent last month to $621.3 billion, beating forecasts for a decline after they fell by a downwardly revised 1.7 per cent in May, the data said.

Sales jumped the most at department stores, electronics and appliance retailers and clothing outlets, as well as at gas stations, likely a consequence of rising oil prices and an increase in domestic travel.

Motor vehicle and parts dealers, however, saw a two per cent fall in sales amid soaring used car prices and a shortage of semiconductors that's forced some manufacturers to idle assembly lines.

"Core" retail sales excluding gas stations and the auto sector rose 1.1 percent.

"To see core sales rising so strongly in June is a positive sign that consumers feel confident and are still cash-rich, in aggregate," said Ian Shepherdson of Pantheon Macroeconomics.

Government stimulus payments combined with an easing of Covid-19 business restrictions has pushed retail sales higher in recent months, though the growth has been uneven.

Gas stations saw sales rise 2.5 per cent, electronics and appliance stores 3.3 per cent and general merchandise stores climbed 1.9 per cent -- within which department stores grew 5.9 per cent.

Food service and drinking places -- comprising the bars and restaurants that were hardest hit by business restrictions meant to stop Covid-19 -- saw sales increase 2.3 per cent last month.

On top of the decline in auto sales, furniture and home furnishing stores saw a decline of 3.6 per cent, building materials and gardening equipment outlets lost 1.6 per cent and sporting goods and hobby retailers lost 1.7 per cent.

Gregory Daco of Oxford Economics called the overall increase "modest" and said it reflected shifts in consumer preferences during the summer months.

"The great spending rotation saw households cut back on furniture, autos, sporting equipment and building material -- categories that outperformed during the pandemic -- while spending more freely at restaurants and bars, gas stations and electronic stores," he said.

Shepherdson said it remains to be seen how Americans will chose to spend the massive $2.3 trillion in savings they have accumulated during the pandemic, thanks in part to the stimulus measures, and whether it will keep retail sales moving higher.

"In the absence of any prior experience remotely like the current situation, this is impossible to forecast with confidence. But we continue to think its implausible to argue that people will choose to hold all the cash and rely solely on regular income to finance all their spending," he said.

LONDON — As the global auto sector accelerates production of electric cars, one British company is hoping to cash in from mining lithium needed to make rechargeable batteries that power the vehicles.

It is five years since former investment banker Jeremy Wrathall launched Cornish Lithium, a company operating in Cornwall, southwest England, which recently hosted the G-7 summit.

And while it may be another four years until it begins commercial production of the metal, Wrathall is optimistic that his punt will pay dividends.

"In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand and I started to think about lithium," he told AFP in an interview.

"A friend of mine mentioned lithium being identified in Cornwall and I just wondered if that was a sort of an unrecognised thing in the UK."

In fact lithium was discovered in Cornwall in 1864, while the area is known for its historic copper and tin mining, which dates back 4,000 years and ended at the turn of the century.

"Of course I would like to revive mining in Cornwall but this a commercial project," insisted Wrathall.

"It's not a mission that drives me to the point to be emotional or romantic."

 'Encouraging results' 

Cornish Lithium is at a testing stage to see if the metal can be produced commercially."Initial results are encouraging. I'm excited about it," Wrathall said, whose company has revived a former mine situated away from the area's picturesque villages and beaches.

The mining firm is looking to extract enough lithium from hot water underground to meet at least a "significant proportion" of UK demand, while at the same time respecting the environment

It is mulling the capture of heat from underground to generate clean power, or geothermal energy, which can be used to extract the lithium.

Wrathall explained that Cornwall benefitted from having very clean water.

"It has a lot of lithium and very little of anything else," he explained.

"When you're looking for needles in a haystack you want as little hay as possible and more needle and that's what we've got."


Long journey 

The project has been far from easy, from securing drilling rights from landowners to finding the technology to bring water containing the lithium to the surface.

And the company is facing competition from British Lithium, which is looking to extract the metal from Cornwall's granite.

British demand for lithium is set to reach 75,000 tonnes by 2035, five years ahead of a UK ban on the sale of high-polluting diesel and petrol vehicles.

Lithium is mined mostly in Australia and South America, while China controls the supply chain.

While automakers insist on the environmental benefits of electric vehicles, the bulk of current lithium extraction relies on power from polluting fossil fuels.

In Europe, projects are ongoing for cleaner extraction of the metal in France and Germany.

"It's vitally important that we do get this technology otherwise Europe has got no lithium supply," Wrathall insisted.

It comes as car giants Nissan and Renault recently announced plans for huge plants in England and France to make electric batteries.

The European Commission meanwhile wants to end the sale of new petrol and diesel cars by 2035, under a massive plan to fight climate change unveiled last week.

"Europe from a strategic point of view should be looking at securing its own supply of lithium," said Alex Keynes at Brussels-based lobby group Transport & Environment.

"Our view is that medium-to-long term the majority of materials including lithium should come from efficient and clean recycling," he said.

VIENNA — The world's leading oil producers agreed on Sunday to continue to modestly boost output from August reaching a compromise after the United Arab Emirates blocked a deal earlier this month.

An OPEC+ meeting decided to raise output by 400,000 barrels per day (bpd) each month from August to help fuel a global economic recovery as the pandemic eases, the group's Vienna-based secretariat said in a media statement.

The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April next year to the end of 2022.

Earlier in July, negotiations of OPEC+ members on easing production cuts became deadlocked due to a row between the world's largest oil exporter Saudi Arabia and neighbour the United Arab Emirates.

Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand.

The aim is to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic.

 'Consensus building' 

In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust", leading to a stalemate.

But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less.

Saudi Energy Minister Prince Abdulaziz Bin Salman, who chairs the OPEC group, declined to say how the new quotas were decided and beneficiaries chosen, saying it had been part of "consensus building".

Russian Deputy Prime Minister Alexander Novak told public television channel Rossia 24 that the meeting confirmed "our desire to be constructive and to find a consensus".

"The pandemic is not yet overcome, but we are seeing that thanks to vaccination all over the world, demand for our production is recovering as is the use of cars and air planes," he said.

"It is therefore very important for us to fulfil our responsibilities and allow a recovery of the world economy."


'Flurry of talks' 

Observers had expected a deal. 

"A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&P Global Platts, which specialises in coverage of the energy industry, ahead of the meeting, which lasted just about one hour.

Oil prices — which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains.

OPEC+ then decided to withdraw 9.7 million bpd from the market and to gradually restore supplies by the end of April 2022 -- a deadline that has now been extended.

Benchmark oil prices rebounded as a result and have reached two-and-a-half-year highs. The main international oil contracts have been trading around $75 per barrel.

Economic rivalry was at the heart of the feud between OPEC members as the Gulf states try to cash in on their vast oil reserves as they face the beginning of the end of the oil era.

Disagreements between Saudi Arabia and UAE -- once inseparable allies -- are usually resolved behind palace walls and rarely spill into the open.

Ministers from OPEC+ countries have gathered frequently since the spread of the new coronavirus to assess the market with the next meeting scheduled for September 1, according to Sunday's statement.

MILAN — Tough talks between Italy and the European Commission on a plan to replace struggling Alitalia have laid the groundwork for a new, streamlined flag carrier, the economy ministry said on Thursday.

Italia Trasporto Aereo (ITA) "will be fully operational" as of October 15, after Rome reached a "constructive and balanced solution" with Brussels, it said in a statement.

The new airline had initially been expected to launch in August, during the peak tourism season, but talks with the Commission dragged on even after a preliminary deal was reached in May. 

The Commission, charged with policing state aid in the EU, is examining 1.3 billion euros ($1.5 billion) in state funds provided to Alitalia in 2017 and 2019.

On Thursday, the Commission said only that it had taken note of the Italian announcement and reiterated that it had "reached a common understanding on the key parameters to ensure economic discontinuity between ITA and Alitalia.

"The Commission remains in close contact with the Italian authorities to ensure that the launch of ITA as a new and viable market player is in line with EU state aid rules," a statement added.

The Commission has already insisted that the new airline mark a rupture with Alitalia, and not only by changing the name.

It noted that "legal investigations into past state aid to Alitalia continue".

But the Italian ministry said that the accord reached with Brussels will "guarantee the discontinuity necessary to comply with European regulations", and open the way for a planned capital hike for ITA.

It did not provide any figures, but a government source said that the first stage of recapitalisation would be on the order of 700 million euros. 

ITA is to have a fleet half the size of Alitalia to begin with, and its ground operations and maintenance service would be spun off and airport slots ceded.

But the new airline could still be a majority shareholder alongside other investors in the company that takes over the ground operations, and hold a minority stake in the future maintenance group.

As for coveted airport slots that allow airlines to take off and land at a given destination, ITA would retain 85 per cent of those held by Alitalia at Milan's Linate airport, and 43 per cent of those at Rome Fiumicino, according to the draft industrial plan.

Job losses 

"The foundation has been laid for a new, solid national carrier that is sustainable and independent, able to operate without interruption and with solid perspectives for growth and development," the ministry statement said.

The agreement with the Commission is expected to result in job losses, however.

More than 11,000 people work for Alitalia, including crew, maintenance and ground staff.

"It's unacceptable," a joint statement released by the Cgil, Cisl, Uiltrasporti and Ugl unions said.

They denounced "the carving up" of Alitalia, and described the plan as "weak" with "no prospects for the development of long-haul services".

Economic Development Minister Giancarlo Giorgetti said ITA would hire around 2,800 people in 2021 and another 5,750 in 2022.

Alitalia, whose fragile financial condition worsened during the coronavirus pandemic, had already been placed under state administration in 2017.

Italy failed to find an outside investor willing to take it over.

LONDON — British luxury fashion house Burberry, famed for its handbags and trenchcoats, revealed on Friday that sales have returned to pre-pandemic levels as young customers embraced the brand.

Sales rose by one per cent in the group's first quarter or three months to late June, compared with the equivalent period in 2019 before the pandemic erupted, Burberry said in a statement.

First-quarter sales surged by 90 per cent to £479 million ($663 million, 561 million euros), from the same time in 2020 when COVID lockdowns shut stores.

Burberry enjoyed a strong performance in the Americas and Asia-Pacific regions, helping to offset deflated sales in Europe as tourists stayed away.

"We have made an excellent start to the new fiscal year," said Chief Executive Marco Gobbetti, who recently announced plans to depart the group.

"Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand," he added in the statement.

Investors however gave the earnings update a thumbs down.

Burberry shares lost four per cent to £19.87 in late morning deals on London's FTSE 100 index, which was up by around half-a-per cent overall.

"Burberry has bolted out of the blocks in its new financial year, rising to pre-pandemic sales levels virtually across the board," said Interactive Investor analyst Richard Hunter.

"The virtual disappearance of tourism is having a lingering effect on continental Europe in particular, however, where sales remain down by 38 per cent compared to pre-pandemic."

Gobbetti steps down at the end of 2021 after nearly five years as Burberry's CEO, and is to run the Italian fashion house Salvatore Ferragamo.

No successor has been announced, so far.

NEWYORK — Global stocks mostly fell on Friday as worries about rising COVID-19 cases and their effect on global growth weighed on sentiment, pushing Wall Street into the red for the week.

After data showed an unexpected rise in US retail sales, Wall Street pushed higher at the open. But markets soon tumbled into the red and losses grew as the day progressed.

 Analysts pointed to profit taking as a factor in Friday's session and throughout the week following records earlier in the month. 

Investors are "continuing to trim winning positions" as they await more clarity on the course of the economy, said Briefing.com analyst Patrick O'Hare.

The broad-based S&P 500 ended down 0.8 per cent at 4,327.16, taking its weekly losses to around 1 per cent.

The highly-contagious Delta variant has led to surging infection rates in many parts of the world, leading authorities to reimpose certain restrictions.

"COVID-19 concerns still linger and the economic outlook is not as bright as it was just a few weeks ago," said market analyst Edward Moya at trading platform Oanda.

Major European bourses retreated, along with Tokyo, which closed one per cent lower as investors worried over rising COVID-19 infections and the Bank of Japan trimmed its economic growth forecast for the current fiscal year.

Hong Kong's leading index was flat as late profit-taking wiped out earlier gains ahead of a US warning about doing business in the territory.

In a long-awaited advisory that has already been denounced by China, the United States warned its business community of "growing risks" of operating in Hong Kong due to China's clampdown.

The advisory acknowledged that Hong Kong, a former British colony handed back to China in 1997, "retains many economic distinctions" from the mainland, including stronger protections of intellectual property.

But Washington pointed to a declining climate under a national security law enacted last year, including the arrest of one US citizen — John Clancey, a prominent human rights lawyer.

Shanghai closed 0.7 per cent lower while Seoul, Taipei, Kuala Lumpur and Bangkok also retreated. Wellington was flat while Sydney, Singapore, and Jakarta ticked higher.

WASHINGTON — General Motors on Wednesday warned owners of its Chevrolet Bolt to park the electric vehicle outside and not leave them plugged in overnight after two of the cars caught fire.

The incidents involved vehicles that had been fixed following a November recall of nearly 51,000 Bolts in the United States due to a fire risk, the automaker said.

"Out of an abundance of caution, we are asking owners of 2017-2019 Chevrolet Bolt EVs who were part of the recall population to park their vehicles outdoors immediately after charging and not leave their vehicles charging overnight while we investigate these incidents," GM said in a statement.

"At GM, safety is our highest priority, and we are moving as quickly as we can to investigate this issue."

According to news reports, one of the recent fires occurred in Vermont and another in New Jersey.

The National Highway Traffic Safety Administration opened an investigation in October into the fire hazard involving the high-voltage battery pack underneath the rear seat of the Bolt, after confirming five incidents where cars ignited even when turned off.

The agency at the time told owners that "the safest place to park them is outside and away from homes."