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WASHINGTON — The World Bank adopted a new Climate Change Action Plan that will boost financing aimed at reducing emissions to align its policies with the Paris climate agreement, the bank said on Friday.

"Our collective responses to climate change, poverty and inequality are defining choices of our age," World Bank President David Malpass said in a statement announcing the decision.

"To deliver on our twin goals of reducing poverty and boosting shared prosperity, it is critical that the World Bank Group helps countries fully integrate climate and development."

The development lending organisation's plan will ensure that 35 per cent of overall World Bank financing over the next five years will have climate "co-benefits", including 50 per cent of financing through its lending and international development bodies going to support adaptation and resilience.

That is an increase from an average of just 26 per cent with climate benefits from 2016 through 2020.

The bank also pledged to align new operations with the objectives of the Paris Agreement by July 2023.

The move comes in the wake of US President Joe Biden's announcement to rejoin the Paris Climate Agreement, reversing the decision of his predecessor Donald Trump to withdraw from the pact.

The United States is the world's second-biggest carbon emitter after China and the biggest shareholder of the World Bank.

The bank also will develop new metrics to measure greenhouse gas emissions, assist countries in developing national climate strategies, and support a "just transition" out of coal production that includes job-training skills for workers in the sector.

The plan aims to make the World Bank's operations "climate compatible", said Stephane Hallegatte, lead economist for the World Bank's climate group.

"It's really important because what we don't want is to use 35 per cent of our resources on climate and to have the rest of actions completely disconnected and not even looking into the questions," Hallegatte said.

"The goal has been to mainstream completely the climate questions into development and that's what the Paris Accord alignment means."

BEIRUT — Officials from Beirut and Baghdad signed a preliminary agreement on Friday that would see Lebanon trade its medical expertise for Iraqi fuel supplies, Lebanese state media reported.

Lebanon's state-run electricity company faces dire cash shortages as the country grapples with its worst economic crisis since the 1975-1990 civil war.

Oil-rich Iraq, which has seen COVID-19 cases soar in recent weeks, suffers from a chronic lack of drugs and medical care, and decades of war and poor investment have left its hospitals in bad shape.

Caretaker Health Minister Hamad Hassan and his Iraqi counterpart Hassan Al Tamimi signed "a framework agreement... that includes [the supply of] oil in exchange for medical and hospital services," Lebanon's National News Agency said.

Under the accord, inked in Beirut, Lebanon would receive 500,000 tonnes of Iraqi oil annually, or a sixth of its needs, said caretaker Lebanese energy minister Raymond Ghajar.

Hassan said the agreement included cooperation in training and hospital administration, with Lebanese experts and specialised teams to be involved in managing new facilities in Iraq.

Lebanon was once dubbed "the hospital of the Arab world", with advanced private facilities and doctors trained in Europe and the United States. 

But hundreds of medics are now fleeing the country's political and economic crises and even basic medication has gone out of stock.

Power cuts have been common in the country for decades, but Ghajar warned in March that Lebanon would plunge into "total darkness" by the end of the month if no money was secured to buy fuel for power stations.

Lebanon's parliament this week approved $200 million in emergency funding to keep the lights on.

WASHINGTON — New applications for jobless benefits in the US jumped last week, reversing most of the improvement in the prior week when the total dipped below 700,000 for the first time since the pandemic shuttered the US economy.

First-time claims spiked 61,000 to 719,000 in the week ended March 27, from 658,000 a week earlier, the Labour Department reported on Thursday.

The result contradicted recent upbeat reports of job gains as businesses reopen and vaccination efforts accelerate, and confounded economists' predictions of a modest decline in the total.

The weekly data show more than 237,000 people sought benefits under the special pandemic aid programme for freelance and gig workers.

The report was released the day after President Joe Biden unveiled a $2 trillion infrastructure plan he said will create millions of new jobs and help the US economy recovery from the scaring inflicted by Covid-19.

Treasury Secretary Janet Yellen said Thursday the plan "begins to fix the structural problems that have plagued our economy for the past four decades," and will make the US economy "far more competitive on the world stage."

The Labour Department figures show 18.2 million people continued to receive some form of unemployment aid through the week ended March 13, the vast majority through temporary pandemic benefits.

"This is a bit disappointing, given the sharp drop in Google searches for 'file for unemployment' last week," said Ian Shepherdson of Pantheon Macroeconomics. 

However, taking the past two weeks together "it's clear that the trend in claims is falling. We expect a sustained sharp decline in the second quarter as the economy reopens," he said in an analysis.

Despite the spike in jobless claims, economists are expecting a blowout in employment gains and a drop in the unemployment rate for March in the all-important monthly report due out Friday.

TOKYO — Japanese bank Mizuho may have lost around $90 million in the Archegos stocks sale saga that has hit financial institutions worldwide, the Nikkei newspaper reported on Thursday.

The report, which did not identify sources, came after the Financial Times said Mizuho was investigating possible exposure to the sell-off.

A fire sale late last month by Archegos Capital Management, which looks after the fortune of businessman Bill Hwang, has left global banks from Japan's Nomura to Switzerland's Credit Suisse counting losses.

Among the companies sold were top Chinese names such as Baidu Inc, Tencent Music Entertainment Group and Vipshop Holdings — all under pressure at home as Beijing reins in the tech sector — plus US giants such as ViacomCBS and Discovery.

Mizuho's reported losses are far smaller than those incurred by some institutions, with Nomura warning of up to $2 billion in exposure.

Mizuho declined to confirm or deny the report, with an official saying "we don't comment on individual deals".

AMMAN — Huawei’s financial results for 2020, revealed on Wednesday, reflected the company’s capability to compete in a complex global environment and overcome challenges, emerging as a result of the COVID-19 pandemic.

The company, which revealed its results during a virtual press conference, said its performance was largely in line with business expectations, despite having to go through a phase of slower growth. 

Huawei ensured business continuity and timely delivery for all customers, despite the challenges resulting from the COVID-19 pandemic, the company said during the press conference. 

Its sales revenue stood at around $136.7 billion, up 3.8 per cent year-on-year while its net profit totalled $9.9 billion, up 3.2 per cent year-on-year, according to the company.

Throughout lockdowns incurred due to COVID-19, Huawei carrier division continued to ensure stable operations of over 1,500 networks in more than 170 countries and regions, supporting telework, online learning, and online shopping.

Working with operators around the world, it has contributed to the development of more than 3,000 5G innovation ventures in more than 20 sectors, including coal mining, steel processing, ports, and manufacturing, it said during the press conference.

Huawei's enterprise business has been working diligently over the last year to develop creative scenario-based solutions for various industries.

It offered technological capabilities and solutions that were crucial to the fight against the new COVID virus during the pandemic. HUAWEI CLOUD-based AI-assisted diagnostic solution was one of the ways it helped hospitals all over the world to reduce strain on their medical infrastructure.

Moreover, the company partnered with different business entities to launch cloud-based online learning platforms for over 50 million students in primary and secondary school.

Huawei's consumer business stepped forward with its “Seamless AI Life strategy” to provide consumers with an “intelligent” experience across all devices and scenarios, focusing on smart office, fitness & health, smart home, easy travel, and entertainment, according to the company’s press conference. 

The number of Huawei smartphone users exceeded 730 million. Research and Innovation employed 53.4 per cent of Huawei's workforce in 2020. Over 700 cities and 253 Fortune Global 500 companies chose Huawei as their partner for digital transformation.

"Over the past year we've held strong in the face of adversity, We've kept innovating to create value for our customers, to help fight the pandemic, and to support both economic recovery and social progress around the world. We also took this opportunity to further enhance our operations, leading to a performance that was largely in line with forecast.”said Ken Hu, Huawei's rotating chairman.

Huawei has been operating in the Middle East for more than 20 years. 

HONG KONG — The dollar broke through the 110 yen barrier on Tuesday for the first time in a year as optimism about the global economic outlook and rising US bond yields see investors turn away from the safe haven Japanese unit.

The greenback hit 110.18 yen in afternoon trade as investors grow increasingly confident that world growth will pick up pace this year thanks to huge stimulus spending, particularly by the United States, with predictions it could go as high as 115 yen.

With the US government pressing ahead with a massive spending spree to kickstart the world's top economy, there is a growing expectation that inflation will rocket over the coming months.

That has led to a rise in Treasury yields to one-year highs owing to bets that the Federal Reserve will have to lift interest rates earlier than its estimated 2024 timeline.

The yen is considered a go-to currency in times of turmoil and uncertainty and the unit strengthened against the dollar over the past 12 months owing to ongoing concern about the impact of the pandemic.

But the rollout of vaccines and passage of Donald Trump's near-$1 trillion stimulus at the end of last year, followed by Joe Biden's $1.9 trillion package soon after, have raised expectations for a strong recovery.

The dollar is up almost 6 per cent from its recent low seen at the start of January.

"The dollar-yen trend is backed by the rise in Treasury yields as the market focuses on the extent of the potential US economic recovery," said Masahiro Ichikawa, at Sumitomo Mitsui DS Asset Management.

"The dollar could rise to as high as 115 yen by the end of the year, depending on the pace of the recovery."

LONDON — World oil prices eased on Monday as traffic resumed on the Suez Canal after a massive container ship blocking the waterway was freed.

The Suez Canal Authority said the Ever Given was back afloat and traffic resuming in one of the most important routes for global trade and crude shipments that had been shut for almost a week.

Crude prices had tumbled earlier after the ship was partially freed, but rebounded quickly afterwards when salvage experts said the hardest work was ahead.

But only hours later they managed to free the ship completely, and oil prices fell back.

Traders also mulled Thursday's meeting of oil producers of the Organisation of the Petroleum Exporting Countries cartel.

'Ripple effects' 

Despite the resumption of traffic, analysts say that it will take time for container transport to resume to normal.

"The market will soon realise that... even if Ever Given leaves the canal within days, some leftover downstream ripple effects should be expected," warned Rystad Energy analyst Louise Dickson.

"Oil loadings, as well as some oil demand could be affected as manufacturers may have to close or pause production as they wait for delayed goods to arrive at plants."

The Suez Canal Authority said the waterway would be open 24 hours per day and the backlog of hundreds of vessels could be cleared in around three and a half days.

Elsewhere, Asian and European stock markets were mixed on Monday as traders mulled coronavirus turmoil and set aside another record-breaking pre-weekend lead from Wall Street.

London traded flat, while Paris and Frankfurt both rose 0.3 per cent despite the continent's stuttering inoculation drive and rising infections.

New York's three main indices opened lower on Monday after having finished Friday on a strong note, with the Dow and S&P 500 ending at all-time highs.

A below forecast reading on US prices on Friday eased fears that inflationary pressures could force central banks to wind back their ultra-loose monetary policies and hike interest rates.

The week ahead will provide plenty for traders to get their teeth into including the release of key US jobs data for March and figures on manufacturing activity around the world.

By Julie Jammot
Agence France-Presse

BIRMINGHAM, United States — Poor and conservative, the state of Alabama seemed like the perfect place for companies to do business without having to deal with labour unions.

That is, until a handful of Amazon employees stood up to the world's richest person and demanded representation at the bargaining table.

It comes to a head this week: Monday is the deadline for employees at an Amazon warehouse in Alabama to vote on establishing the first union on US soil at the massive tech company.

The case is being closely watched because it could pave the way for further unionisation in the United States at one of the world's most powerful companies.

Bernie Sanders, the independent senator and progressive darling, said here Friday during a visit to endorse the unionisation drive that he was very encouraged by it.

"This is historically a very anti-union state. That's why I am incredibly moved and impressed by courage of these workers," Sanders said on Friday outside the regional headquarters of the Retail, Wholesale and Department Store Union.

It would represent the 5,800 workers at the Amazon warehouse in nearby Bessemer if the employees vote to unionise.

The rapper Killer Mike, who also paid a visit to support the Amazon workers, noted that the Reverend Martin Luther King held his first civil rights rallies not in Atlanta, the city he is most associated with, but in Birmingham, the capital of Alabama.

"This is very much a tradition of Alabamians, to be organising on behalf of the larger population," the rapper said.

The RWDSU union took part in civil rights marches along with King in the 1960s and with John Lewis, another icon of that movement, in Selma, Alabama.

In the 1920s and 30s, Alabama did see strong bursts of pro-union sentiment, mainly in steel factories around Bessemer, said historian Michael Innis-Jimenez.

But otherwise "the reputation of Alabama being anti-union is pretty well deserved," said Innis-Jimenez of the University of Alabama.

"We have the only Mercedes plant in the world that is not unionised and that's in Tuscaloosa," he added.

In Alabama, management can fire a worker without even having to give a reason, he said.

Historically, industries in the northeast moved to the south because labour here is cheaper and workers were easier to fire and less likely to unionise, he said.

Amazon opened the Bessemer facility a year ago for the same reason it set up others around the country: To meet red hot demand for Amazon's online retail services.

But Amazon never expected 3,000 workers at the plant to sign an agreement in principle with the RWDSU to form a union.

Two factors set this case apart from, say, the non-union Mercedes plant: A union with roots here, one which took part in the civil rights movement, and workers who are mainly African American.

One of them, Darryl Richardson contacted the union late last year. He was sick of living in fear of being fired for nothing, of work breaks that were too short, of a frenetic pace on the job and what he called an overall lack of respect for workers.

"I know what the union can bring," said 51-year-old Richardson, who has four kids. He has worked doggedly to convince colleagues to vote for the union in the interest of job security and other benefits.

Make history 

Richardson said he used to work for a company that was a Mercedes subcontractor and went from making $12.50 to $23.50 an hour in the space of a few years. "And that's the union," he said.

Amazon pays the Bessemer workers at least $15 an hour, which is double the minimum wage in Alabama. At the start of the pandemic it also paid its people an extra $2 an hour in hazard pay but withdrew this perk three months later.

That decision was among the factors that triggered the pro-union movement at the warehouse, said Joshua Brewer, president of the local branch of the union, as was the feeling that the workers were not properly protected against the coronavirus.

"Generally when you have a company like Amazon, that was coming to Bessemer to bring this new advanced facility with all these great jobs, you don't really see that kind of problem. But within four months, workers had had enough," said Brewer. 

In response to employee complaints carried in the press, Amazon touted what it called the high rates of pay at the warehouse and perks such as health insurance from day one of employment.

These kinds of arguments worked well with younger workers who are less familiar with the world of labour unions. But the mood that has taken root at Bessemer is now galvanising Amazon workers elsewhere in the US, the union and local elected officials say.

"This movement couldn't happen anywhere else than here, where people died in the streets for the right to vote," said Christopher England, chairman of the Alabama Democratic Party.

"No better place in the world to hold Jeff Bezos accountable than Alabama," said England. "We're going to make history again."

PARIS — The total cost of the Suez Canal accident is clearly hard to calculate, and analysts say much will depend on how long it takes to sort out.

The Taiwan-owned, Panama-flagged MV Ever Given, a 400 metre long and 59 metre wide container ship, has been lodged sideways across the waterway since Tuesday.

At present, more than 200 ships are stuck, with several billion dollars worth of goods on board.

'Could not have come at a worse time' 

The coronavirus pandemic has already brought unprecedented pressure to bear on global supply chains, so the grounding of a giant container ship "could not have come at a worse time for one of the world's busiest manmade waterways", noted Jonathan Owens, a logistics specialist at the University of Salford Business School.

The total value of goods that are now blocked or will have to be shipped along an alternative route varies according to how it is estimated.

Owens says the equivalent of $3 billion worth of merchandise normally passes through the canal each day.

Lloyd's List, a British maritime shipping publication, says daily traffic in both directions is worth around $9.6 billion.

Given the large number of companies affected directly and indirectly, it is impossible at this point to quantify the value of merchandise being held up, according to Moody's analyst Daniel Harlid.

Just because something is delayed does not mean it has been lost, notes Jai Sharma, a maritime transport lawyer at Clyde and Co.

The final impact on companies, and possible chain reactions still to come, cannot be calculated now and will depend in part on the level of stocks in hand, he says.

Plan B for crude 

While the blockage has been cited as a factor in higher oil prices, that sector could in fact be affected less than others, because only around 1.74 million barrels of crude pass each day through the canal.

Eighty per cent of Middle Eastern oil headed for Europe, which not a lot to begin with, is pumped through the Sumed pipeline from the Red Sea to the Mediterranean near Alexandria, says Paola Rodriguez Masiu at Rystad Energy.

The pipeline currently has capacity to spare, she notes.

Slow boat to Rotterdam? 

Transporters can now either wait for the 200,000 tonne ship to float free, which could take days or weeks, or sail around the southern tip of Africa.

Shipping giants Maersk and Hapaq-Lloyd are seriously considering the second option.

That is likely to cost several hundred thousand dollars in extra fuel, raising shipping costs by 15-20 per cent according to Plamen Matzkoff, an analyst at VesselsValue.

Lawyer's are lining up 

In addition, up to 90 per cent of shipments are not insured against delays, Lloyd's List points out.

It quoted sector specialists as saying that lawyers would likely be kept busy arguing who should pay the bill.

As for easing the ship from its new berth, the cost could run to several million dollars, Sharma estimates, especially if containers have to be unloaded from it first.

But transporters' insurance policies are often underwritten by several companies, Moody's analyst Soichiro Makimoto says, so that tab at least is likely to be shared by insurers and reinsurers.