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FRANKFURT, Germany — Eurozone interest rate setters should proceed "gradually and cautiously" in loosening monetary policy as there are still challenges in tackling inflation despite recent progress, an ECB board member cautioned recently.

After the European Central Bank's historic campaign of interest rate hikes, eurozone inflation has been slowly coming down to the central bank's two-per cent target.

Data this week showed inflation dropping to 1.9 per cent in both Germany and France in August— the first time it has fallen below two per cent in both countries since 2021 — boosting expectations the ECB might cut rates again in September.

ECB board member Isabel Schnabel welcomed signs that consumer prices were cooling but cautioned that headline inflation "understates the challenges monetary policy is still facing".

In a speech in the Estonian capital Tallinn, she pointed in particular to "persistent price pressures in the services sector".

"Policy should proceed gradually and cautiously," she said.

"The pace of policy easing cannot be mechanical. It needs to rest on data and analysis."

The central bank for the 20 nations that use the euro currently expects inflation to fall back to the two-per cent target at the end of 2025, she said.

Surging energy prices after Russia's invasion of Ukraine sent eurozone inflation soaring past 10 per cent in late 2022, prompting the ECB to launch its tightening cycle.

The first cut after the hiking cycle came in June. The bank held off from a second cut in July but expectations are growing for a cut next month.

Full eurozone inflation figures for August are due later Friday.

TUNIS — Libya's central bank governor Seddik Al Kabir said he fled the country following "threats" from armed groups, amid tensions between rival administrations over the bank's management, The Financial Times reported recently.

"The head of the Libyan central bank who controls billions of dollars in oil revenue said he and other senior bank staff had been forced to flee the country to 'protect our lives' from potential attacks by armed militia," the British newspaper reported.

In a phone interview with the newspaper Kabir, whose location was not specified, said militias have been "threatening and terrifying bank staff" in attempts to push him out of office.

Tensions have been rising since early August when a group of men — some of whom were armed — laid siege to the bank demanding the removal of Kabir.

On August 18, the bank announced it was suspending all operations following the abduction of its information technology chief. He was eventually released.

Days later an eastern-based administration in divided Libya said that an "outlaw group" close to UN-recognised government based in Tripoli had forcibly taken over the central bank.

As a result the administration based in the eastern city of Benghazi said it was suspending operations across oil fields and terminals in areas under its jurisdiction.

The locations affected constitute around 90 per cent of the country's oil fields and terminals.

The oil blockade has led daily production volumes to dwindle to around 600,000 barrels per day, almost by half, Libya's Thursday by the National Oil Company said on Thursday.

Kabir has faced criticism from people close to Dbeibah over the central bank's management of oil resources and the state budget.

Libya is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Moamer Kadhafi.

It remains divided between the UN-recognised government in the capital Tripoli led by Prime Minister Abdulhamid Dbeibah, and the rival administration in the east backed by military strongman Khalifa Haftar.

Kabir told The Financial Times that a commission set up by the authorities in Tripoli had seized control over the bank, and he blamed Dbeibah for this "illegal" action.

On Thursday, the bank, now under Tripoli-appointee interim governor Abdel Fattah Ghaffar, said its "main network has returned to work normally".

It said operations had "stopped as a result bank's previous management had blocked and disrupted banking systems".

Earlier this week, Ghaffar said the interim management "reassured the International Monetary Fund and the World Bank of our commitment to respect national and international legislation".

On Friday the European Union called for a "negotiated solution" and the resumption of oil production, echoing similar calls by the United States and the United Nations.

PARIS — Asian stock markets wavered but Europe advanced on Thursday, with Frankfurt hitting a new record, as investors digested earnings results by US chip titan Nvidia.

Investors had been keenly awaiting the release from Nvidia, which has become a bellwether for the tech sector owing to its huge role in the development of AI chips.

The firm, whose market capitalisation now exceeds $3 trillion, has accounted for a third of the broad-based S&P 500 index's gains this year.

The company reported after US markets closed on Wednesday that its sales more than doubled to $30 billion in the second quarter, but at a slower pace than in previous quarters.

Its profits also doubled, to $16.5 billion, but Nvidia's shares slipped in after-hours trading as traders had hoped for even better results from one of the world's most valuable companies.

"The AI juggernaut delivered some stellar figures, but let's be real - it didn't exactly knock socks off," said independent analyst Stephen Innes.

"Investors have become spoiled, expecting Nvidia not just to meet but obliterate expectations," he said.

Nvidia shares fell by as much as eight percent in after-hours trading, but they pared back losses and were down around 3 per cent ahead of Wall Street's opening bell on Thursday.

Asian equities were divided, with Tokyo closing flat, Hong Kong rising and Shanghai falling.

In Europe, the Frankfurt DAX reached an intra-day record of 18,912.47 points. It eased a bit but was still up 0.6 per cent at 18,891.77 points around lunchtime.

London gained 0.3 per cent and Paris added 0.7 per cent.

Swissquote Bank analyst Ipek Ozkardeskaya said traders were turning their attention back to interest rates and slowing inflation.

"It means that investors give more importance to the rate cut story than to Nvidia earnings," she told AFP, noting that Wall Street stock futures were up ahead of the opening bell.

US Federal Reserve chief Jerome Powell gave markets a boost last week when he declared that the central bank was ready to finally cut borrowing costs, which sit at a 23-year high.

Investors will pore over a raft of data in the coming days for an idea of how big the rate cut might be when the Fed meets on September 17-18.

A second estimate of US second-quarter economic growth and weekly jobless claims are due later Thursday, followed by the Fed's favoured gauge of inflation on Friday and key jobs data next week.

In Europe, official data showed inflation fell in Spain for the third consecutive month in August and in several major German states.

The European Central Bank, which cut rates in June for the first time since 2019, will also decide next month whether to reduce them again.

In Asia, tech shares were among the worst performers in the wake of Nividia's results, with chipmakers taking a hit.

SK Hynix fell more than five percent in Seoul, where Samsung was also down more than three per cent. The wider Seoul stock market finished in the red.

Taipei-listed TSMC, a key producer of semiconductors, sank more than two per cent and Taiwan's stock exchange fell.

BEIJING — Leading Chinese automaker BYD posted on Wednesday a 24.4 per cent rise in net profit for the first half of 2024, boosted by continuing strong demand for electric cars in its home and overseas markets.

The company posted a net profit of $1.91 billion in the January-June period, up from $1.54 billion in the same period last year, according to results published at the Hong Kong Stock Exchange where BYD is listed.

The firm said sales during the period stood at $42.3 billion, up 15.8 per cent year-on-year.

The Shenzhen-based company , which adopts the English slogan "Build Your Dreams" , is the most prominent EV manufacturer in China, the world's largest automotive market.

Leaders in Beijing are aiming for car sales to be mainly made up of electric and hybrid models by 2035.

In July, such vehicles accounted for more than half of all domestic sales, passing the threshold for the first time, according to the Chinese Association of Automobile Manufacturers.

Generous government subsidies initially helped sales take off, but the policies were phased out in late 2022 and the market now appears to be reaching maturity.

Local EV firms have since been locked in a cut-throat price war as they fight to remain competitive, weighing on their profitability.

BYD has "effectively dealt with challenges brought by intensified industrial competition", it said in the filing. 

Overseas challenges

BYD and other Chinese EV giants have accelerated overseas expansion in recent years, despite concerns in Western countries that local markets will become flooded with imports at prices they view as artificially low.

The European Union has alleged that Beijing's automotive subsidies have given Chinese firms an unfair leg up in foreign markets, distorting competition and harming the competitiveness of European automakers.

Earlier this month, Brussels released a draft plan to impose tariffs of up to 36.3 per cent on Chinese EVs — a measure that will become permanent in October unless a deal is reached with Beijing.

The United States said in May that it would significantly raise customs duties on Chinese EVs to 100 per cent.

Canada also announced a 100 per cent tariff on Monday, accusing China of "not playing by the same rules as other countries" in areas such as environmental and labour standards.

BYD has nonetheless been ramping up globalisation efforts, with plans to open factories in Hungary and Turkey.

Originally specialising in the design and production of batteries, BYD diversified into the automotive industry in 2003.

PARIS — European stock markets mostly rose, Asian equities diverged and oil prices eased on Tuesday as investors focus on the prospect of a long-awaited US interest rate cut and Middle East tensions.

Traders have been more cautious this week after US Federal Reserve Chairman Jerome Powell sent markets soaring on Friday when he signalled that a rate cut was coming as inflation is cooling.

Powell was followed on Monday by the head of the San Francisco Fed, Mary Daly, who said it was "hard to imagine" not cutting next month.

Investors will pore over a clutch of US indicators later this week for clues about the size of the promised rate reduction, which the Fed is expected to deliver at its next meeting on September 17-18.

US second-quarter economic growth figures are due on Thursday, followed by the Fed's preferred gauge of inflation on Friday and jobs data next week.

Traders are also eagerly awaiting the latest earnings results from chip titan Nvidia, which will be released Wednesday and could provide more clues about demand for the hardware powering the AI boom.

While European stocks were mostly higher on Tuesday, "direction could be lacking ahead of Nvidia results later in the week", Jane Foley, head of foreign exchange strategy at Rabobank London, told AFP.

She said the markets are also seeking "more clarity from US economic data about the amount that the Fed may be prepared to ease in September and in the coming months".

London's FTSE 100, which closed for a bank holiday on Monday, and Frankfurt's DAX were up while the Paris CAC 40 was flat.

In Asia, Hong Kong rose despite losses in the tech sector that came after Temu owner PDD posted disappointing revenue figures and warned on the outlook for future growth.

The e-commerce firm's shares, which are listed in New York, tanked a record 28.5 per cent, wiping tens of billions off its market capitalisation.

In Hong Kong, rivals Alibaba and JD.com both sank around four per cent.

Tokyo and Mumbai rose but Shanghai, Seoul, Sydney and Taipei slipped.

Middle East fears 

Investors are also tracking tensions in the Middle East after Sunday's exchange of fire between Iran-backed Lebanese militant group Hizbollah and Israel raised fears of a broader conflict.

Crude prices eased slightly but held most of Monday's gains of at least three per cent, with Brent, the international benchmark, sitting above $80 per barrel.

Traders were also jolted by news that the eastern-based administration in oil-rich Libya will close fields under its control and suspend production and exports "until further notice". 

"A mix of geopolitical tensions, volatile oil prices, and mixed economic data has created a complex and uncertain backdrop for global financial markets," said Luca Santos, currency analyst at ACY Securities.

"While the initial response has been one of caution, the evolving nature of these risks means that market conditions could change quickly," Santos said.

KUWAIT CITY — Kuwait's state oil giant on Monday announced a 15-year deal for the supply of natural gas from Qatar, without disclosing the cost of the agreement.

QatarEnergy will supply 3 million tonnes of liquefied natural gas (LNG) a year under the deal, the Kuwait Petroleum Corporation (KPC) said in a statement. 

"This second long-term agreement with QatarEnergy within a short period of time confirms our longstanding collaboration," KPC chief executive Sheikh Nawaf Saud Al Sabah said.

Kuwait struck a similar deal with the state-owned Qatari energy firm in 2020.

Sheikh Nawaf added that the deal would "provide a cleaner source of energy", in line with Kuwait's long-term strategy for energy transition.

Since mid-June, oil-rich Kuwait has imposed power rationing in several residential and industrial areas to cope with rising electricity consumption during the summer heat.

Under the new deal, LNG deliveries to Kuwait's Al Zour refinery are scheduled to begin in 2025, KPC said.

"This is a new long-term partnership... that constitutes a central element in supporting Kuwait's sustainability goals particularly in the electricity generation sector," Qatar Energy Minister Saad Al Kaabi, who is also the chief executive of QatarEnergy, said. 

Qatar is one of the world's top liquefied natural gas producers alongside the United States, Australia and Russia.

In February, Qatar announced plans to expand its output from its North Field project, saying it will boost capacity to 142 million tonnes per year before 2030.